Via Renewables(US:VIA)2023-11-02 13:59Company Operations - As of September 30, 2023, the company operated in 103 utility service territories across 20 states and the District of Columbia[154]. - For the three months ended September 30, 2023, approximately 89% of retail revenues were derived from electricity sales, while 11% came from natural gas sales[157]. Customer Metrics - The total number of Residential Customer Equivalents (RCEs) decreased by 3% from 346,000 in June 2023 to 337,000 in September 2023[158]. - Customer attrition for the three months ended September 30, 2023, was 3.1%, down from 4.0% in the same period of 2022[169]. - The company added approximately 24,000 RCEs through organic sales channels during the three months ended September 30, 2023[164]. - Average monthly RCE attrition for Q3 2023 was 3.1%, down from 4.0% in Q3 2022, showing improved customer retention[195]. Financial Performance - Adjusted EBITDA for the three months ended September 30, 2023, was $12.756 million, compared to $15.063 million for the same period in 2022[177]. - Total revenues for Q3 2023 were approximately $110.2 million, a decrease of approximately $8.7 million, or 7%, from $118.9 million in Q3 2022[197]. - Net income for Q3 2023 was $14,659, compared to a net loss of $4,868 in Q3 2022, representing a significant turnaround[187]. - Adjusted EBITDA for Q3 2023 was $12,756, down from $15,063 in Q3 2022, reflecting a decrease of approximately 8.7%[187]. - Total revenues for the nine months ended September 30, 2023 were approximately $333.5 million, a decrease of approximately $9.6 million, or 3%, from $343.1 million for the same period in 2022[203]. Revenue and Margin Analysis - Retail Gross Margin for the three months ended September 30, 2023, was $31.888 million, slightly up from $30.456 million in 2022[177]. - Retail Gross Margin for Q3 2023 was $31,888, an increase from $30,456 in Q3 2022, indicating improved operational performance[192]. - Retail Electricity Segment total revenues for the three months ended September 30, 2023 were approximately $97.8 million, a decrease of approximately $7.2 million, or 7%, from $105.0 million for the same period in 2022[210]. - Retail cost of revenues for the Retail Electricity Segment for the three months ended September 30, 2023 was approximately $64.6 million, a decrease of approximately $28.2 million, or 30%, from $92.8 million for the same period in 2022[211]. - Retail gross margin for the Retail Electricity Segment for the three months ended September 30, 2023 was approximately $26.0 million, a decrease of approximately $2.5 million, or 9%, from $28.5 million for the same period in 2022[212]. - Retail Natural Gas Segment total revenues for the nine months ended September 30, 2023 were approximately $82.1 million, an increase of approximately $13.8 million, or 20%, from $68.3 million for the same period in 2022[223]. - Retail gross margin for the Retail Natural Gas Segment for the nine months ended September 30, 2023 was approximately $32.7 million, an increase of approximately $12.2 million, or 60%, from $20.5 million for the same period in 2022[225]. Expenses and Cash Flow - Total operating expenses for Q3 2023 were $90,001, a decrease from $121,784 in Q3 2022, reflecting cost management efforts[195]. - The company reported a retail cost of revenues of $71,050 for Q3 2023, down from $102,212 in Q3 2022, contributing to improved margins[195]. - Net cash provided by operating activities for the nine months ended September 30, 2023, was $40,857, compared to $21,211 for the same period in 2022, indicating improved cash flow[188]. - General and administrative expense for the nine months ended September 30, 2023 was approximately $51.1 million, an increase of approximately $6.3 million, or 14%, from $44.8 million for the same period in 2022[205]. - Depreciation and amortization expense for the nine months ended September 30, 2023 was approximately $7.1 million, a decrease of approximately $6.3 million, or 47%, from $13.4 million for the same period in 2022[206]. Dividend and Financing - The company temporarily suspended the quarterly cash dividend on Class A common stock to enhance financial flexibility and manage market volatility[155]. - The company declared a dividend of $0.76459 per share for the Series A Preferred Stock for Q3 2023, with total estimated dividends for the full year 2023 amounting to $10.4 million[249][248]. - The company suspended the quarterly cash dividend on Class A common stock in April 2023, with future dividends dependent on operational performance and financial conditions[250]. - The Senior Credit Facility allows the company to borrow up to $195 million, with $134 million outstanding as of September 30, 2023[238]. - The company had zero outstanding borrowings under the Subordinated Debt Facility as of September 30, 2023, with availability to borrow up to $25 million[242]. Risk and Market Conditions - The company is actively managing the impact of gross profit compression due to market volatility on financial covenant compliance, which may affect its ability to pay dividends[240]. - Approximately 54% of retail revenues for the three months ended September 30, 2023, were derived from territories where credit risk was with local regulated utility companies[261]. - The bad debt expense for the three months ended September 30, 2023, was 1.3% of non-POR market retail revenues, compared to 1.8% for the same period in 2022[264]. - The company had $105.0 million of variable rate indebtedness outstanding under the Senior Credit Facility as of September 30, 2023, with a 1.0% increase in interest rates potentially resulting in an additional annual interest expense of approximately $1.1 million[267]. Derivative Instruments - The company experienced a net gain of $8.2 million on non-trading derivative instruments for the three months ended September 30, 2023, compared to a loss of $15.5 million for the same period in 2022[258]. - As of September 30, 2023, the Gas Non-Trading Fixed Price Open Position was a short position of 105,135 MMBtu, with a 10% increase in market prices potentially increasing the fair market value by $0.1 million[260]. - The Electricity Non-Trading Fixed Price Open Position was a short position of 305,058 MWhs, with a 10% increase in forward market prices potentially decreasing the fair market value by $1.8 million[260].