Via Renewables(US:VIA)2025-05-01 21:13Financial Performance - For the three months ended March 31, 2025, the company reported Adjusted EBITDA of $27.7 million, a significant increase from $15.1 million in the same period of 2024, representing an 83.8% year-over-year growth [179]. - The company reported a net income of $18.5 million for the three months ended March 31, 2025, slightly down from $19.1 million in the same period of 2024 [186]. - Total revenues for the three months ended March 31, 2025, were approximately $142.3 million, an increase of approximately $28.2 million, or 25%, from approximately $114.1 million for the same period in 2024 [196]. - Retail gross margin for the three months ended March 31, 2025, was approximately $46.5 million, an increase of approximately $10.7 million, or 30%, from approximately $35.7 million for the same period in 2024 [191]. - Retail cost of revenues for the three months ended March 31, 2025, was approximately $95.4 million, an increase of approximately $26.4 million, or 38%, from approximately $69.0 million for the same period in 2024 [198]. - Net cash provided by operating activities for the three months ended March 31, 2025, was $24.95 million, compared to $17.1 million for the same period in 2024 [188]. Customer Metrics - The company experienced a total of 407,000 Residential Customer Equivalents (RCEs) as of March 31, 2025, reflecting a 5% increase from 388,000 RCEs at the end of 2024 [163]. - Customer attrition averaged 4.3% for the three months ended March 31, 2025, compared to 3.9% in the same period of 2024, primarily due to proactive non-renewals in Maryland [172]. - The company acquired approximately 16,800 RCEs for a cash purchase price of up to $1.8 million, with transfers expected to begin in the second quarter of 2025 [161]. - Average monthly RCE attrition for the three months ended March 31, 2025, was 4.3%, compared to 3.9% for the same period in 2024 [194]. Segment Performance - The Retail Electricity Segment accounted for approximately 56% of retail revenues for the three months ended March 31, 2025, down from 68% in the same period of 2024, while the Retail Natural Gas Segment increased to 44% from 32% [162]. - Retail gross margin for the Retail Electricity Segment for the three months ended March 31, 2025, was approximately $21.4 million, an increase of approximately $2.5 million, or 13%, from approximately $18.9 million for the same period in 2024 [206]. - Retail gross margin for the Retail Natural Gas Segment for the three months ended March 31, 2025, was approximately $25.0 million, an increase of approximately $8.8 million, or 54%, from approximately $16.2 million for the same period in 2024 [210]. Costs and Expenses - Customer acquisition costs for the three months ended March 31, 2025, were $1.5 million, down from $2.4 million in the same period of 2024 [186]. - Customer acquisition costs for the three months ended March 31, 2025, were approximately $1.5 million, a decrease of approximately $0.9 million, or 38%, from approximately $2.4 million for the same period in 2024 [201]. - Depreciation and amortization expense for the three months ended March 31, 2025, was approximately $5.0 million, an increase of approximately $3.0 million, or 150%, from approximately $2.0 million for the same period in 2024 [200]. Cash Flow and Liquidity - The company distributed $6.0 million in cash to the non-controlling interest holder on March 31, 2025 [159]. - As of March 31, 2025, total liquidity amounted to $156.6 million, consisting of $64.7 million in cash and cash equivalents, $66.9 million available under the Senior Credit Facility, and $25.0 million under the Subordinated Debt Facility [214][220]. - Net cash provided by operating activities for the three months ended March 31, 2025, increased by $7.9 million to $24.9 million compared to $17.1 million for the same period in 2024 [216]. - Cash flows used in investing activities rose by $13.5 million to $14.0 million for the three months ended March 31, 2025, primarily due to customer book acquisitions [217]. - Cash flows used in financing activities increased by $4.8 million to $13.6 million for the three months ended March 31, 2025, mainly due to a $6.0 million distribution to non-controlling interest [218]. Debt and Interest Rates - The company had a total commitment of $205.0 million under its Senior Credit Facility, with $136.7 million outstanding as of March 31, 2025 [220]. - The current variable interest rate on the Senior Credit Facility was 7.57% as of March 31, 2025 [223]. - A 1.0% increase in interest rates would lead to an additional annual interest expense of approximately $1.0 million based on the average variable rate indebtedness [244]. - A 1.0% increase in interest rates would result in additional dividends of $0.2 million for the quarter based on the Series A Preferred Stock outstanding [245]. Bad Debt and Credit Risk - Approximately 59% of retail revenues for the three months ended March 31, 2025, were derived from territories where credit risk was primarily with local regulated utility companies [238]. - The company's bad debt expense for the three months ended March 31, 2025, was 0.9% of non-POR market retail revenues, compared to 0.8% for the same period in 2024 [241]. - As of March 31, 2025, the company had approximately $8.4 million of total exposure with non-investment grade counterparties or unsecured [242]. - As of March 31, 2025, the company had $101.0 million of variable rate indebtedness outstanding under the Senior Credit Facility [244].