Via Renewables(US:VIA)2024-08-01 16:40Revenue and Sales Performance - For the three months ended June 30, 2024, approximately 82% of retail revenues were derived from electricity sales, while 18% came from natural gas sales [150]. - Total revenues for Q2 2024 were approximately $86.7 million, a decrease of about $4.7 million, or 5%, from $91.4 million in Q2 2023 [177]. - Retail revenues for the first half of 2024 totaled $201.3 million, down from $227.7 million in the first half of 2023, a decline of approximately 11.6% [177]. - Total revenues for the six months ended June 30, 2024 were approximately $200.8 million, a decrease of approximately $22.5 million, or 10%, from $223.3 million for the same period in 2023 [184]. - Total revenues for the Retail Electricity Segment for the three months ended June 30, 2024 were approximately $71.1 million, a decrease of approximately $3.7 million, or 5%, from $74.8 million for the same period in 2023 [191]. - Total revenues for the Retail Natural Gas Segment for the three months ended June 30, 2024 were approximately $15.8 million, a decrease of approximately $2.1 million, or 12%, from $17.9 million for the same period in 2023 [194]. - Total revenues for the Retail Natural Gas Segment decreased by approximately $17.3 million, or 25%, to approximately $52.9 million for the six months ended June 30, 2024, compared to $70.2 million for the same period in 2023 [201]. Customer Metrics - The company added approximately 31,400 residential customer equivalents (RCEs) during the three months ended June 30, 2024, primarily through organic sales channels [158]. - The total number of RCEs remained stable at 338, with a slight decrease of 1% in retail electricity RCEs and a 2% increase in retail natural gas RCEs compared to the previous quarter [154]. - Average monthly customer attrition for the three months ended June 30, 2024, was 3.4%, slightly higher than 3.1% in the same period of 2023 [161]. - Average monthly RCE attrition was 3.4% in Q2 2024, compared to 3.1% in Q2 2023, indicating an increase in customer churn [177]. Financial Performance - Adjusted EBITDA for the three months ended June 30, 2024, was $12.363 million, compared to $12.013 million for the same period in 2023 [165]. - Adjusted EBITDA for Q2 2024 was $12.4 million, compared to $12.0 million in Q2 2023, reflecting an increase of approximately 2.9% [177]. - Net income for Q2 2024 was $15.7 million, down from $19.1 million in Q2 2023, a decrease of approximately 17.5% [177]. - Operating income for Q2 2024 was $20.6 million, a decrease from $26.8 million in Q2 2023, reflecting a decline of approximately 23.1% [177]. - The company reported a net cash provided by operating activities of $11.2 million for Q2 2024, down from $21.6 million in Q2 2023, a decrease of approximately 48.2% [171]. - Cash flows provided by operating activities decreased by $6.4 million to $28.3 million for the six months ended June 30, 2024, compared to $34.7 million for the same period in 2023 [208]. Expenses and Costs - Customer acquisition costs increased to $2.6 million in Q2 2024 from $1.5 million in Q2 2023, marking a rise of approximately 73.5% [177]. - Total operating expenses for Q2 2024 were $66.1 million, an increase from $64.6 million in Q2 2023, representing a rise of approximately 2.3% [177]. - Retail cost of revenues for the six months ended June 30, 2024 was approximately $112.0 million, a decrease of approximately $51.4 million, or 31%, from $163.4 million for the same period in 2023 [184]. - General and administrative expense for the six months ended June 30, 2024 was approximately $38.2 million, an increase of approximately $4.3 million, or 13%, compared to $33.9 million for the same period in 2023 [186]. - Customer acquisition cost for the six months ended June 30, 2024 was approximately $5.0 million, an increase of approximately $1.8 million, or 52%, from $3.3 million for the same period in 2023 [187]. Margins - Retail gross margin for the three months ended June 30, 2024, was $33.387 million, an increase from $30.726 million in the same period of 2023 [165]. - Retail Gross Margin for Q2 2024 was $33.4 million, an increase from $30.7 million in Q2 2023, representing a growth of approximately 8.6% [177]. - Retail gross margin for the Retail Electricity Segment for the three months ended June 30, 2024 was approximately $25.3 million, an increase of approximately $2.3 million, or 10%, from $23.0 million for the same period in 2023 [192]. - Retail gross margin for the Retail Natural Gas Segment for the three months ended June 30, 2024 was approximately $8.0 million, an increase of approximately $0.4 million, or 5%, from $7.6 million for the same period in 2023 [195]. - Retail gross margin for the Retail Natural Gas Segment decreased by approximately $3.3 million, or 12%, to approximately $24.2 million for the six months ended June 30, 2024, compared to $27.5 million for the same period in 2023 [202]. Debt and Liquidity - The first amendment to the senior credit facility increased borrowing capacity to $205.0 million and extended the maturity date to June 30, 2027 [152]. - Total liquidity as of June 30, 2024, was $154.2 million, consisting of cash and cash equivalents of $53.6 million, Senior Credit Facility availability of $75.7 million, and Subordinated Debt Facility availability of $25.0 million [207]. - The current variable interest rate on the Senior Credit Facility was 8.59% as of June 30, 2024 [210]. - At June 30, 2024, $93.0 million of variable rate indebtedness was outstanding under the Senior Credit Facility [228]. - A 1.0% increase in interest rates would result in an additional annual interest expense of approximately $0.9 million based on average variable rate indebtedness for Q2 2024 [228]. - A 1.0% increase in interest rates would lead to an additional $0.2 million in dividends for the quarter based on Series A Preferred Stock outstanding [228]. Dividends and Stock - The company paid $5.4 million in dividends to holders of the Series A Preferred Stock for the six months ended June 30, 2024 [211]. - The company declared a dividend of $0.75881 per share for the Series A Preferred Stock for the second quarter of 2024, to be paid on October 15, 2024 [213]. - The Board of Directors declared a quarterly cash dividend of $0.75881 per share for Series A Preferred Stock, totaling $2.7 million for Q2 2024 [228]. Credit Risk and Derivatives - Approximately 60% of retail revenues for the six months ended June 30, 2024, were derived from territories where credit risk was with local regulated utility companies [222]. - Bad debt expense for Q2 2024 was 2.1% of non-POR market retail revenues, down from 2.4% in Q2 2023 [226]. - For the first half of 2024, bad debt expense was 1.4% of non-POR market retail revenues, compared to 2.1% in the same period of 2023 [226]. - As of June 30, 2024, total exposure to wholesale counterparty credit risk was $1.6 million, with $1.1 million at non-investment grade counterparties or unsecured [227]. - The net gain on non-trading derivative instruments was $21.8 million for the six months ended June 30, 2024, compared to a net loss of $(6.5) million for the same period in 2023 [220].