Via Renewables(VIA) - 2023 Q4 - Annual Results

Financial Performance - For the fourth quarter of 2023, Via Renewables reported a Net Loss of $(0.9) million, a significant improvement from a Net Loss of $(27.5) million in Q4 2022, primarily due to a $31.7 million reduction in mark-to-market losses on hedges[3][4] - Adjusted EBITDA for Q4 2023 was $13.3 million, up from $12.6 million in Q4 2022, driven by increased Retail Gross Margin despite higher customer acquisition and G&A expenses[4][10] - Full year 2023 Net Income reached $26.1 million, compared to $11.2 million in 2022, attributed to a $21.8 million increase in Retail Gross Margin and a $13.1 million reduction in mark-to-market losses[7][10] - For the full year 2023, Via Renewables reported Adjusted EBITDA of $56.9 million, an increase from $51.8 million in 2022, reflecting strong performance in Retail Gross Margin[8][10] - Gross Profit for the full year 2023 was $124.4 million, compared to $103.4 million in 2022, primarily due to gains in mark-to-market value of hedges[9][10] - Operating income increased significantly to $46.472 million in 2023, compared to $24.761 million in 2022, marking an increase of 87.5%[27] - Net income attributable to Via Renewables, Inc. stockholders rose to $14.975 million in 2023, up from $7.578 million in 2022, representing an increase of 97.5%[27] - Adjusted EBITDA for the year ended December 31, 2023, was $56,855 million, an increase from $51,793 million in 2022[48] - Net income for the quarter was $26,105 million, compared to $11,203 million in the same quarter of 2022[48] Revenue and Margins - Total revenues for the year ended December 31, 2023, were $435.192 million, a decrease of 5.7% from $460.493 million in 2022[27] - Retail revenues decreased to $439.360 million in 2023 from $462.815 million in 2022, reflecting a decline of 5.1%[27] - Retail Gross Margin for the full year 2023 was $136.7 million, up from $114.8 million in 2022, driven by higher unit margins despite lower volumes due to mild weather[11][10] - Retail gross margin for the electricity segment was $87,566 million, representing a gross margin per MWh of $43.59, up from $34.00 in the previous year[1] - Retail natural gas segment revenues increased to $110,894 million, with a gross margin of $47,489 million, reflecting a gross margin per MMBtu of $4.22, compared to $2.77 in the prior year[1] - Retail gross margin from the Retail Electricity Segment for 2023 was $87.566 million, up from $82.749 million in 2022, a rise of about 5.5%[52] - Retail gross margin from the Retail Natural Gas Segment increased to $47.489 million in 2023, compared to $32.066 million in 2022, marking a significant increase of approximately 48.2%[52] Cash and Liquidity - Total liquidity as of December 31, 2023, was $116.0 million, consisting of cash and cash equivalents of $42.6 million and available credit facilities[12][10] - Cash and cash equivalents at the end of 2023 were $42.595 million, an increase from $35.351 million at the end of 2022[29] - The company reported a net cash provided by operating activities of $49.315 million in 2023, compared to $16.207 million in 2022, an increase of 204.5%[29] - Cash flows provided by operating activities for the year were $49,315 million, significantly higher than $16,207 million in 2022[48] Dividends and Shareholder Returns - A dividend of $0.75960 per share was declared for the fourth quarter of 2023, payable on April 15, 2024[13] - The company paid dividends of $10.268 million on preferred stock in 2023, compared to $7.628 million in 2022, an increase of 34.1%[29] Assets and Liabilities - Total assets decreased to $303.834 million as of December 31, 2023, down from $330.950 million in 2022, a decline of 8.2%[26] - Total liabilities decreased to $177.050 million in 2023, down from $214.901 million in 2022, a reduction of 17.6%[26] Strategic Focus and Future Plans - The company plans to focus on organic growth and is open to potential tuck-in acquisitions in 2024[14] Non-Recurring Events - The impact of winter storm Uri resulted in a net pre-tax financial loss of $64.9 million, which was considered non-recurring[36] - The company noted a non-recurring event related to winter storm Uri, which had a financial impact in 2022 but was not applicable in 2023[52]