Via Renewables(VIA) - 2024 Q3 - Quarterly Report

Company Operations - As of September 30, 2024, the company operated in 103 utility service territories across 20 states and the District of Columbia[173]. - The company added approximately 22,900 residential customer equivalents (RCEs) during the three months ended September 30, 2024, primarily through organic sales channels[186]. - The total number of RCEs decreased by 3% from June 30, 2024, to September 30, 2024, with attrition of 40 RCEs[180]. Revenue and Financial Performance - For the three months ended September 30, 2024, approximately 88% of retail revenues were derived from electricity sales, while 12% came from natural gas sales[174][175]. - Total revenues for Q3 2024 were approximately $93.8 million, a decrease of approximately $16.4 million, or 15%, from $110.2 million in Q3 2023[208]. - Adjusted EBITDA for Q3 2024 was $10.3 million, down from $12.8 million in Q3 2023, representing a decrease of approximately 19%[208]. - Net income for Q3 2024 was $1.7 million, compared to $14.7 million in Q3 2023, reflecting a decline of approximately 88%[208]. - Total revenues for the nine months ended September 30, 2024 were approximately $294.5 million, a decrease of approximately $39.0 million, or 12%, from approximately $333.5 million for the same period in 2023[216]. Margins and Expenses - Retail gross margin for the three months ended September 30, 2024, was $30.0 million, down from $31.9 million in the prior year[195]. - Customer acquisition costs increased to $2.1 million in Q3 2024 from $1.7 million in Q3 2023, marking an increase of approximately 25%[208]. - General and administrative expense for the nine months ended September 30, 2024 was approximately $55.9 million, an increase of approximately $4.8 million, or 9%, compared to $51.1 million for the same period in 2023[218]. Cash Flow and Investments - Net cash provided by operating activities for Q3 2024 was $20.1 million, significantly up from $6.2 million in Q3 2023[202]. - The company reported a net cash used in investing activities of $2.2 million for Q3 2024, compared to $0.4 million in Q3 2023[202]. - Cash flows provided by operating activities increased by $7.6 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to changes in working capital[245]. Credit and Risk Management - The company has experienced an increase in credit loss expense, which was 1.4% for the three months ended September 30, 2024, compared to 1.3% in the prior year[190]. - Approximately 60% of retail revenues for the nine months ended September 30, 2024, were derived from territories where credit risk was with local regulated utility companies[264]. - Company is exposed to credit risk related to payment for services rendered during the transition period with local regulated utilities[266]. - Economic conditions may increase customer delinquencies, impacting bad debt expense[267]. - Company manages customer credit risk through formal credit reviews and credit score screenings[267]. Segment Performance - Total revenues for the Retail Electricity Segment for the three months ended September 30, 2024 were approximately $82.6 million, a decrease of approximately $15.2 million, or 16%, from approximately $97.8 million for the same period in 2023[223]. - Retail gross margin for the Retail Electricity Segment for the three months ended September 30, 2024 was approximately $24.6 million, a decrease of approximately $1.4 million, or 5%, from approximately $26.0 million for the same period in 2023[225]. - Total revenues for the Retail Natural Gas Segment for the three months ended September 30, 2024 were approximately $11.6 million, a decrease of approximately $0.3 million, or 2%, from approximately $11.9 million for the same period in 2023[228]. - Retail gross margin for the Retail Natural Gas Segment for the three months ended September 30, 2024 was approximately $5.5 million, an increase of approximately $0.3 million, or 6%, from approximately $5.2 million for the same period in 2023[230]. Debt and Interest Rates - The current variable interest rate on the Senior Credit Facility was 8.09% as of September 30, 2024[248]. - As of September 30, 2024, $89.0 million of variable rate indebtedness was outstanding under the Senior Credit Facility[270]. - 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[270]. - 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[271]. Dividends - The Board of Directors declared a quarterly cash dividend of $0.71847 per share for Series A Preferred Stock, totaling $2.7 million for Q3 2024[271].