Via Renewables(VIA) - 2024 Q1 - Quarterly Report

Revenue Breakdown - For the three months ended March 31, 2024, approximately 68% of retail revenues were derived from electricity sales, while 32% came from natural gas sales, compared to 61% and 39% respectively in the same period of 2023[149]. - For the three months ended March 31, 2024, total revenues were approximately $114.1 million, a decrease of approximately $17.8 million, or 13%, from $131.9 million in the same period of 2023[187]. - Retail Natural Gas Segment total revenues for Q1 2024 were approximately $37.1 million, a decrease of 29% from $52.3 million in Q1 2023, primarily due to lower natural gas prices and a smaller customer base[199]. Customer Metrics - The company added approximately 41,000 residential customer equivalents (RCEs) during the three months ended March 31, 2024, resulting in a total of 338,000 RCEs, reflecting a 1% increase[160]. - The average monthly customer attrition rate for the three months ended March 31, 2024, was 3.9%, consistent with the prior year[165]. - The average monthly RCE attrition rate remained stable at 3.9% for both the three months ended March 31, 2024 and 2023[185]. Financial Performance - The company reported Adjusted EBITDA of $15.068 million for the three months ended March 31, 2024, down from $18.811 million in the same period of 2023[172]. - Adjusted EBITDA for the three months ended March 31, 2024 was $15.1 million, a decrease of approximately $3.7 million, or 20%, from $18.8 million in the same period of 2023[185]. - Net income for the three months ended March 31, 2024 was $19.1 million, compared to a net loss of $6.8 million in the same period of 2023[185]. Margins and Costs - The retail gross margin for the three months ended March 31, 2024, was $35.745 million, compared to $40.330 million for the same period in 2023[172]. - Retail gross margin for the three months ended March 31, 2024 was approximately $35.7 million, a decrease of approximately $4.6 million, or 11%, from $40.3 million in the same period of 2023[182]. - Customer acquisition costs increased to approximately $2.4 million for the three months ended March 31, 2024, an increase of approximately $0.6 million, or 33%, from $1.8 million in the same period of 2023[192]. - Retail cost of revenues for the three months ended March 31, 2024 was approximately $69.0 million, a decrease of approximately $48.4 million, or 41%, from $117.4 million in the same period of 2023[189]. Credit and Risk Management - The company experienced a credit loss expense of 0.8% for the three months ended March 31, 2024, down from 1.9% in the same period of 2023[166]. - Approximately 60% of retail revenues for the three months ended March 31, 2024, were derived from territories where credit risk was with local regulated utility companies, compared to 55% for the same period in 2023[235]. - The weighted average discount paid to local regulated utilities for customer credit risk protection was 1.2% for the three months ended March 31, 2024, up from 1.0% in 2023[235]. - Bad debt expense for the three months ended March 31, 2024, was 0.8% of non-POR market retail revenues, down from 1.9% in the same period of 2023[238]. Liquidity and Financing - Total cash used in financing activities for the three months ended March 31, 2024 was approximately $8.8 million, compared to $2.9 million in the same period of 2023[180]. - Total liquidity as of March 31, 2024, was $128.0 million, consisting of $50.4 million in cash and cash equivalents and $77.6 million available under credit facilities[206]. - The Senior Credit Facility allows borrowing up to $195.0 million, with $113.8 million outstanding as of March 31, 2024, including $22.8 million in letters of credit[212]. Derivative Instruments and Market Positions - The net gain on non-trading derivative instruments was $10.9 million in Q1 2024, compared to a loss of $22.6 million in Q1 2023, indicating improved risk management and market conditions[233]. - As of March 31, 2024, the Gas Non-Trading Fixed Price Open Position was a short position of 462,951 MMBtu, with a 10% increase in market prices resulting in less than $0.1 million increase in fair market value[234]. - The Electricity Non-Trading Fixed Price Open Position was a short position of 338,777 MWhs, with a 10% increase in forward market prices leading to a decrease in fair market value by $1.7 million[234]. Dividends - The company paid $2.7 million in dividends to Series A Preferred Stockholders in Q1 2024, with future dividends dependent on financial performance and compliance with credit facility covenants[219][223]. - The Series A Preferred Stock dividends were declared at an annual rate based on Three-Month CME Term SOFR plus a tenor spread, with a quarterly cash dividend of $0.76051 per share for Q1 2024 totaling $2.7 million[242]. - A 1.0% increase in interest rates would have resulted in additional dividends of less than $0.2 million for the Series A Preferred Stock for the quarter[242].