VIA RENEWABLES(VIASP) - 2025 Q1 - Quarterly Report

Company Operations - As of March 31, 2025, the company operated in 104 utility service territories across 20 states and the District of Columbia [158]. - The total number of residential customer equivalents (RCEs) increased by 5% from 388,000 on December 31, 2024, to 407,000 on March 31, 2025 [163]. - The company added approximately 43,700 RCEs during the three months ended March 31, 2025, primarily through organic sales channels [167]. Revenue and Sales - For the three months ended March 31, 2025, approximately 56% of retail revenues were derived from electricity sales, while 44% came from natural gas sales [162]. - 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 increased to $46.5 million for the three months ended March 31, 2025, from $35.7 million in 2024 [179]. Financial Performance - Adjusted EBITDA for the three months ended March 31, 2025, was $27.7 million, compared to $15.1 million for the same period in 2024 [179]. - Adjusted EBITDA for the three months ended March 31, 2025, was $27.7 million, an increase of approximately $12.6 million, or 84%, from $15.1 million for the same period in 2024 [194]. - 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]. Customer Metrics - Customer attrition for the three months ended March 31, 2025, was 4.3%, up from 3.9% in the same period of 2024 [172]. - 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]. Cash Flow and Liquidity - 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]. - 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]. - 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]. Expenses - The company experienced a net asset optimization loss of $2.2 million for the three months ended March 31, 2025 [178]. - 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]. Dividends and Stock - The company paid $2.4 million in dividends to holders of the Series A Preferred Stock for the three months ended March 31, 2025, with an accrued amount of $2.3 million [226]. - The company declared a dividend of $0.69348 per share for the Series A Preferred Stock for Q1 2025, to be paid on July 15, 2025 [228]. - The Board of Directors declared a quarterly cash dividend of $0.69348 per share for the Series A Preferred Stock, totaling $2.3 million for the first quarter of 2025 [245]. Credit and Debt - As of March 31, 2025, the company had $101.0 million of variable rate indebtedness outstanding under the Senior Credit Facility [244]. - A 1.0% increase in interest rates would result in 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 lead to additional dividends of $0.2 million for the quarter based on the Series A Preferred Stock outstanding [245]. Risk and Exposure - 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, approximately $8.4 million of the company's total exposure of $11.2 million was with non-investment grade counterparties or unsecured [242]. - As of March 31, 2025, the company had a short position of 610,330 MMBtu in Gas Non-Trading Fixed Price Open Position, with a potential $0.2 million impact on fair market value from a 10% change in market prices [237].