CORRECTING and REPLACING Vertex Energy Announces Fourth Quarter and Full Year 2023 Financial Results
-
First bullet point under “FOURTH QUARTER 2023 HIGHLIGHTS” should read: Reported net loss attributable to the Company of
($63.9) million , or ($0.68 ) per fully-diluted share (instead of “Reported net loss attributable to the Company of($63.9) million , or ($0.84 ) per fully-diluted share”). -
First sentence of the first paragraph under “FOURTH QUARTER 2023 HIGHLIGHTS” should read: Vertex reported fourth quarter 2023 net loss attributable to the Company of
($63.9) million , or ($0.68 ) per fully-diluted share, versus net income attributable to the Company of$44.4 million , or$0.56 per fully-diluted share for the fourth quarter of 2022 (instead of “Vertex reported fourth quarter 2023 net loss attributable to the Company of ($63.9 ) million, or ($0.84 ) per fully-diluted share, versus net income attributable to the Company of$44.4 million , or$0.07 per fully-diluted share for the fourth quarter of 2022”).
The updated release reads:
The Company will host a conference call to discuss fourth quarter 2023 results today, at
FOURTH QUARTER 2023 HIGHLIGHTS
-
Reported net loss attributable to the Company of
($63.9) million , or ($0.68 ) per fully-diluted share. -
Reported Adjusted EBITDA of
($35.1) million (see “Non-GAAP Financial Measures and Key Performance Indicators”, below). -
Continued safe operation of the Company’s
Mobile, Alabama refinery (the “Mobile Refinery”) with fourth quarter 2023 conventional throughput of 67,083 barrels per day (bpd), in line with prior guidance. - Renewable diesel (“RD”) throughput of 3,926 bpd, reflecting Phase One capacity utilization of 49.1%.
-
Total cash and cash equivalents of
$80.6 million , including restricted cash of$3.6 million and$50 million in additional term loan proceeds received during the quarter endedDecember 31, 2023 .
FULL-YEAR 2023 HIGHLIGHTS
-
Reported net loss attributable to the Company of
($71.5) million for the full year 2023, versus net loss attributable to the Company of($4.8) million in 2022. -
Reported Adjusted EBITDA of
$17.1 million for the full-year versus Adjusted EBITDA of$161.0 million for the full year 2022 (see “Non-GAAP Financial Measures and Key Performance Indicators”, below). - Conventional throughput volumes of 73,734 barrels per day (bpd) for 2023 (98.3% utilization).
-
Completion of Phase I of Renewable Diesel conversion project with the launch of Renewables business and
Marine Fuels and Logistics business inMobile, Alabama .
Vertex reported fourth quarter 2023 net loss attributable to the Company of
For the full-year 2023, the Company reported a net loss attributable to the Company of
Schedules reconciling the Company’s generally accepted accounting principles in
MANAGEMENT COMMENTARY
Mr.
Conventional Fuels Refining
Total conventional throughput at the
The Mobile Refinery’s conventional operations generated a gross profit of
Total conventional throughput at the
The Mobile Refinery’s conventional operations generated a gross profit of
Renewable Diesel Facility
Total renewable throughput at the Mobile Renewable Diesel facility was 3,926 bpd in the fourth quarter of 2023. Total production of renewable diesel was 3,786 bpd reflecting a product yield of 96.4%.
The Mobile Renewable Diesel facility operations generated a gross loss of
Feedstock Supply Strategy Advanced. During the fourth quarter, Vertex continued to advance its alternative feedstock supply strategy. The Company had recently completed the required temporary filings for low carbon fuel standard (“LCFS”) credits at the default carbon intensity (“CI”) score. As previously communicated, the Company expected that the initial default level LCFS credits would be applied to all volumes of renewable diesel produced during the third and fourth quarter of 2023 and to contribute to financial results in the fourth quarter. As anticipated, during the fourth quarter of 2023, Vertex received an initial LCFS payment calculated using the temporary default CI score, resulting in a net payment of
During the fourth quarter, the Company successfully completed runs to support filing for proprietary carbon intensity scores of LCFS pathways for Tallow. In addition to the testing completed for Soy, distiller’s corn oil (“DCO”) and Canola completed during the third quarter of 2023, the Company has now successfully completed the filings for each of these four feedstocks allowing Vertex to receive the increased credit value available with their lower carbon intensity production as compared to the default temporary values for all future renewable diesel production values.
Fourth Quarter and Full Year 2023 Mobile Refinery Results Summary ($/millions unless otherwise noted)
|
1Q23 |
2Q23 |
3Q23 |
4Q23 |
FY2023 |
|
|
|
|
|
|
Total Throughput (bpd) |
71,328 |
76,330 |
80,171 |
67,083 |
73,734 |
Total Throughput (MMbbl) |
6.42 |
6.95 |
7.38 |
6.17 |
26.91 |
Conventional Facility Capacity Utilization1 |
95.1% |
101.8% |
106.9% |
89.4% |
98.3% |
|
|
|
|
|
|
Direct Opex Per Barrel ($/bbl) |
|
|
|
|
|
Fuel Gross Margin ($/MM) |
|
|
|
|
|
Fuel Gross Margin Per Barrel ($/bbl) |
|
|
|
|
|
|
|
|
|
|
|
Production Yield |
|
|
|
|
|
Gasoline (bpd) |
15,723 |
17,812 |
19,211 |
17,826 |
17,653 |
% Production |
22.7% |
23.2% |
24.0% |
25.9% |
23.9% |
ULSD (bpd) |
14,720 |
15,618 |
16,479 |
14,510 |
15,334 |
% Production |
21.2% |
20.3% |
20.6% |
21.1% |
20.8% |
Jet (bpd) |
12,789 |
13,570 |
15,823 |
12,937 |
13,786 |
% Production |
18.4% |
17.7% |
19.8% |
18.8% |
18.7% |
Total Finished Fuel Products |
43,232 |
47,000 |
51,513 |
45,273 |
46,773 |
% Production |
62.3% |
61.2% |
64.4% |
65.9% |
63.4% |
Other2 |
26,119 |
29,828 |
28,495 |
23,457 |
26,972 |
% Production |
37.7% |
38.8% |
35.6% |
34.1% |
36.6% |
Total Production (bpd) |
69,351 |
76,828 |
80,008 |
68,730 |
73,745 |
Total Production (MMbbl) |
6.24 |
6.99 |
7.36 |
6.32 |
26.92 |
|
1Q23 |
2Q23 |
3Q23 |
4Q23 |
FY2023 |
|
|
|
|
|
|
Total Renewable Throughput (bpd) |
- |
2,490 |
5,397 |
3,926 |
3,943 |
Total Renewable Throughput (MMbbl) |
- |
0.23 |
0.50 |
0.36 |
1.08 |
Renewable Diesel Facility Capacity Utilization3 |
- |
31.1% |
67.5% |
49.1% |
49.3% |
|
|
|
|
|
|
Direct Opex Per Barrel ($/bbl) |
- |
|
|
|
|
Renewable Fuel Gross Margin |
- |
( |
|
|
|
Renewable Fuel Gross Margin Per Barrel ($/bbl) |
- |
( |
|
|
|
Renewable Diesel Production (bpd) |
- |
2,208 |
5,276 |
3,786 |
3,762 |
Renewable Diesel Production (MMbbl) |
- |
0.20 |
0.49 |
0.35 |
1.03 |
Renewable Diesel Production Yield (%) |
- |
88.7% |
97.8% |
96.4% |
95.4% |
|
|
|
|
|
|
1.) Assumes 75,000 barrels per day of conventional operational capacity |
|||||
2.) Other includes naphtha, intermediates, and LPG |
|||||
3.) Assumes 8,000 barrels per day of renewable fuels operational capacity |
Balance Sheet and Liquidity Update
As of
As previously announced on
Vertex management continuously monitors current market conditions to assess expected cash generation and liquidity needs against its available cash position, using the forward crack spreads in the market.
As of the current year-end, the Company believes it has adequate financial flexibility to meet its needs based on the total liquidity position. Furthermore, the Company is currently going through a strategic evaluation process with
Commodity Price Risk Management
During the fourth quarter, Vertex’s commodity price risk management team entered into hedge positions covering approximately 38% of planned diesel production and distillate production for the first quarter of 2024 as discussed below:
Asset |
Contract |
Contract |
Price |
|
Hedged |
Approximate % |
Type |
Details |
Period |
($/bbl) |
Prod'n (Bbl) |
Volumes (bbl) |
Hedged1 |
Fixed Price Swap |
ULSD/LLS Swap |
January |
|
762,600 |
100,000 |
13.1% |
Fixed Price Swap |
ULSD/LLS Swap |
February |
|
713,400 |
375,000 |
52.6% |
Fixed Price Swap |
ULSD/LLS Swap |
March |
|
762,600 |
375,000 |
49.2% |
Total |
|
2,238,600 |
850,000 |
38.0% |
||
1.) % hedged assumes mid-point of operating guidance of 61.5 Mbbld and mid-point of distillate production yield of 40% |
Management Outlook
All guidance presented below is current as of the time of this release and is subject to change. All prior financial guidance should no longer be relied upon.
|
1Q 2024 |
||
Operational: |
Low |
High |
|
Mobile Refinery Conventional Throughput Volume (Mbpd) |
60.0 |
63.0 |
|
Capacity Utilization |
80% |
84% |
|
Production Yield Profile: |
|||
Percentage Finished Products1 |
64% |
68% |
|
Intermediate & Other Products2 |
36% |
32% |
|
|
|||
|
1Q 2024 |
||
Operational: |
Low |
High |
|
Mobile Refinery Renewable Throughput Volume (Mbpd) |
3.0 |
5.0 |
|
Capacity Utilization |
38% |
63% |
|
Production Yield |
96% |
98% |
|
Yield Loss |
4% |
2% |
|
Consolidated |
1Q 2024 |
||
Operational: |
Low |
|
High |
Mobile Refinery Total Throughput Volume (Mbpd) |
63.0 |
|
68.0 |
Capacity Utilization |
76% |
|
82% |
|
|
|
|
Financial Guidance: |
|
|
|
Direct Operating Expense ($/bbl) |
|
|
|
Capital Expenditures ($/MM) |
|
|
|
|
|
|
|
1.) Finished products include gasoline, ULSD, and Jet A |
|||
2.) Intermediate & Other products include Vacuum Gas Oil (VGO), Liquified Petroleum Gases (LPGs), and Vacuum Tower Bottoms (VTBs) |
CONFERENCE CALL AND WEBCAST DETAILS
A conference call will be held today,
To participate in the live teleconference:
Domestic: (888) 350-3870
International: (646) 960-0308
Conference ID: 8960754
To listen to a replay of the teleconference, which will be available through
Domestic Replay: (800) 770-2030
Access Code: 8960754
ABOUT
FORWARD-LOOKING STATEMENTS
Certain of the matters discussed in this communication which are not statements of historical fact constitute forward-looking statements within the meaning of the securities laws, including the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. Words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “would,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. The important factors that may cause actual results and outcomes to differ materially from those contained in such forward-looking statements include, without limitation, the Company’s projected Outlook for the first quarter of 2024, as discussed above; statements concerning: the Company’s engagement of
Other important factors that may cause actual results and outcomes to differ materially from those contained in the forward-looking statements included in this communication are described in the Company’s publicly filed reports, including, but not limited to, the Company’s Annual Report on Form 10-K for the year ended
PROJECTIONS
The financial projections (the “Projections”) included herein were prepared by Vertex in good faith using assumptions believed to be reasonable. A significant number of assumptions about the operations of the business of Vertex were based, in part, on economic, competitive, and general business conditions prevailing at the time the Projections were developed. Any future changes in these conditions, may materially impact the ability of Vertex to achieve the financial results set forth in the Projections. The Projections are based on numerous assumptions, including realization of the operating strategy of Vertex; industry performance; no material adverse changes in applicable legislation or regulations, or the administration thereof, or generally accepted accounting principles; general business and economic conditions; competition; retention of key management and other key employees; absence of material contingent or unliquidated litigation, indemnity, or other claims; minimal changes in current pricing; static material and equipment pricing; no significant increases in interest rates or inflation; and other matters, many of which will be beyond the control of Vertex, and some or all of which may not materialize. The Projections also assume the continued uptime of the Company’s facilities at historical levels and the successful funding of, timely completion of, and successful outcome of, planned capital projects. Additionally, to the extent that the assumptions inherent in the Projections are based upon future business decisions and objectives, they are subject to change. Although the Projections are presented with numerical specificity and are based on reasonable expectations developed by Vertex’s management, the assumptions and estimates underlying the Projections are subject to significant business, economic, and competitive uncertainties and contingencies, many of which will be beyond the control of Vertex. Accordingly, the Projections are only estimates and are necessarily speculative in nature. It is expected that some or all of the assumptions in the Projections will not be realized and that actual results will vary from the Projections. Such variations may be material and may increase over time. In light of the foregoing, readers are cautioned not to place undue reliance on the Projections. The projected financial information contained herein should not be regarded as a representation or warranty by Vertex, its management, advisors, or any other person that the Projections can or will be achieved. Vertex cautions that the Projections are speculative in nature and based upon subjective decisions and assumptions. As a result, the Projections should not be relied on as necessarily predictive of actual future events.
NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE INDICATORS
In addition to our results calculated under generally accepted accounting principles in
Each of the Non-
For more information on these non-GAAP financial measures and KPIs, please see the sections titled “Unaudited Reconciliation of Gross Profit (Loss) From Continued and Discontinued Operations to Adjusted Gross Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of Throughput and Operating Expenses Per Barrel of Throughput”, “Unaudited Reconciliation of Adjusted EBITDA to Net loss from Continued and Discontinued Operations”, and “Unaudited Reconciliation of Long-Term Debt to Net Long-Term Debt and Net Leverage”, at the end of this release.
|
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(unaudited in thousands, except number of shares and par value) |
||||||||
(UNAUDITED) |
||||||||
|
|
|||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents |
$ |
76,967 |
|
$ |
141,258 |
|
||
Restricted cash |
|
3,606 |
|
|
4,929 |
|
||
Accounts receivable, net |
|
36,164 |
|
|
34,548 |
|
||
Inventory |
|
182,120 |
|
|
135,473 |
|
||
Prepaid expenses and other current assets |
|
53,174 |
|
|
36,660 |
|
||
Assets held for sale |
|
— |
|
|
20,560 |
|
||
Total current assets |
|
352,031 |
|
|
373,428 |
|
||
Fixed assets, net |
|
326,111 |
|
|
201,749 |
|
||
Finance lease right-of-use assets, net |
|
64,499 |
|
|
44,081 |
|
||
Operating lease right-of-use assets, net |
|
96,394 |
|
|
53,557 |
|
||
Intangible assets, net |
|
11,541 |
|
|
11,827 |
|
||
Deferred tax assets |
|
— |
|
|
2,498 |
|
||
Other assets |
|
4,048 |
|
|
2,245 |
|
||
Total non-current assets |
|
502,593 |
|
|
315,957 |
|
||
TOTAL ASSETS |
$ |
854,624 |
|
$ |
689,385 |
|
||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable |
$ |
75,004 |
|
$ |
20,997 |
|
||
Accrued expenses and other current liabilities |
|
73,636 |
|
|
81,953 |
|
||
Finance lease-current |
|
2,435 |
|
|
1,363 |
|
||
Operating lease-current |
|
20,296 |
|
|
3,713 |
|
||
Current portion of long-term debt |
|
16,362 |
|
|
13,911 |
|
||
Obligations under inventory financing agreements, net |
|
141,093 |
|
|
117,939 |
|
||
Liabilities held for sale, current |
|
— |
|
|
3,424 |
|
||
Total current liabilities |
|
328,826 |
|
|
243,300 |
|
||
Long-term debt, net |
|
170,701 |
|
|
170,010 |
|
||
Finance lease-non-current |
|
66,206 |
|
|
45,164 |
|
||
Operating lease-non-current |
|
74,444 |
|
|
49,844 |
|
||
Deferred tax liabilities |
|
2,776 |
|
|
— |
|
||
Derivative warrant liability |
|
9,907 |
|
|
14,270 |
|
||
Other liabilities |
|
1,377 |
|
|
1,377 |
|
||
Total liabilities |
|
654,237 |
|
|
523,965 |
|
||
EQUITY | ||||||||
50,000,000 of total Preferred shares authorized: | ||||||||
Common stock, |
|
94 |
|
|
76 |
|
||
Additional paid-in capital |
|
383,632 |
|
|
279,552 |
|
||
Accumulated deficit |
|
(187,379 |
) |
|
(115,893 |
) |
||
|
|
196,347 |
|
|
163,735 |
|
||
Non-controlling interest |
|
4,040 |
|
|
1,685 |
|
||
Total equity |
|
200,387 |
|
|
165,420 |
|
||
TOTAL LIABILITIES AND EQUITY |
$ |
854,624 |
|
$ |
689,385 |
|
||
|
||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||
FOR THE YEARS ENDED |
||||||||||||
(in thousands, except per share amounts) |
||||||||||||
(UNAUDITED) |
||||||||||||
2023 |
2022 |
2021 |
||||||||||
Revenues |
$ |
3,177,187 |
|
$ |
2,791,715 |
|
$ |
207,760 |
|
|||
Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
3,005,996 |
|
|
2,598,276 |
|
|
178,786 |
|
|||
Depreciation and amortization attributable to costs of revenues |
|
27,018 |
|
|
13,429 |
|
|
4,043 |
|
|||
Gross profit |
|
144,173 |
|
|
180,010 |
|
|
24,931 |
|
|||
Operating expenses: | ||||||||||||
Selling, general and administrative expenses |
|
168,640 |
|
|
127,782 |
|
|
30,606 |
|
|||
Loss on assets impairment |
|
— |
|
|
— |
|
|
2,124 |
|
|||
Depreciation and amortization attributable to operating expenses |
|
4,146 |
|
|
3,673 |
|
|
1,681 |
|
|||
Total operating expenses |
|
172,786 |
|
|
131,455 |
|
|
34,411 |
|
|||
Income (loss) from operations |
|
(28,613 |
) |
|
48,555 |
|
|
(9,480 |
) |
|||
Other income (expense): | ||||||||||||
Other income (expense) |
|
633 |
|
|
(306 |
) |
|
4,158 |
|
|||
Gain (loss) on change in value of derivative warrant liability |
|
7,992 |
|
|
7,821 |
|
|
(15,685 |
) |
|||
Interest expense |
|
(119,567 |
) |
|
(79,911 |
) |
|
(3,832 |
) |
|||
Total other expense |
|
(110,942 |
) |
|
(72,396 |
) |
|
(15,359 |
) |
|||
Loss from continuing operations before income tax |
|
(139,555 |
) |
|
(23,841 |
) |
|
(24,839 |
) |
|||
Income tax benefit |
|
13,385 |
|
|
7,171 |
|
|
— |
|
|||
Loss from continuing operations |
|
(126,170 |
) |
|
(16,670 |
) |
|
(24,839 |
) |
|||
Income from discontinued operations, net of tax (see operation report of discontinued operation below) |
|
54,197 |
|
|
18,667 |
|
|
17,178 |
|
|||
Net income (loss) |
|
(71,973 |
) |
|
1,997 |
|
|
(7,661 |
) |
|||
Net income (loss) attributable to non-controlling interest and redeemable non-controlling interest from continuing operations |
|
(487 |
) |
|
(63 |
) |
|
207 |
|
|||
Net income attributable to non-controlling interest and redeemable non-controlling interest from discontinued operations |
|
— |
|
|
6,882 |
|
|
10,496 |
|
|||
Net loss attributable to |
|
(71,486 |
) |
|
(4,822 |
) |
|
(18,364 |
) |
|||
Accretion of redeemable noncontrolling interest to redemption value |
|
— |
|
|
(428 |
) |
|
(1,992 |
) |
|||
Accretion of discount on Series B and B-1 Preferred Stock |
|
— |
|
|
— |
|
|
(507 |
) |
|||
Dividends on Series B and B-1 Preferred Stock |
|
— |
|
|
— |
|
|
258 |
|
|||
Net loss attributable to stockholders from continuing operations |
|
(125,683 |
) |
|
(17,035 |
) |
|
(27,287 |
) |
|||
Net income attributable to stockholders from discontinued operations, net of tax |
|
54,197 |
|
|
11,785 |
|
|
6,682 |
|
|||
Net loss attributable to common stockholders |
$ |
(71,486 |
) |
$ |
(5,250 |
) |
$ |
(20,605 |
) |
|||
Basic income (loss) per common share | ||||||||||||
Continuing operations |
$ |
(1.47 |
) |
$ |
(0.24 |
) |
$ |
(0.48 |
) |
|||
Discontinued operations, net of tax |
|
0.63 |
|
|
0.17 |
|
|
0.12 |
|
|||
Basic loss per common share |
$ |
(0.84 |
) |
$ |
(0.07 |
) |
$ |
(0.36 |
) |
|||
Diluted income (loss) per common share | ||||||||||||
Continuing operations |
$ |
(1.47 |
) |
$ |
(0.24 |
) |
$ |
(0.48 |
) |
|||
Discontinued operations, net of tax |
|
0.63 |
|
|
0.17 |
|
|
0.12 |
|
|||
Diluted loss per common share |
$ |
(0.84 |
) |
$ |
(0.07 |
) |
$ |
(0.36 |
) |
|||
Shares used in computing income (loss) per share | ||||||||||||
Basic |
|
85,596 |
|
|
70,686 |
|
|
56,303 |
|
|||
Diluted |
|
85,596 |
|
|
70,686 |
|
|
56,303 |
|
|||
|
|||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY |
|||||||||||||||||||||||||||
FOR THE YEARS ENDING |
|||||||||||||||||||||||||||
(in thousands except par value) |
|||||||||||||||||||||||||||
(UNAUDITED) |
|||||||||||||||||||||||||||
Common Stock |
Series A Preferred |
Additional Paid-in Capital |
Accumulated Deficit |
Non- controlling Interest |
Total Stockholders' Equity |
||||||||||||||||||||||
Shares |
|
Shares |
|
||||||||||||||||||||||||
Balance on |
45,555 |
$ |
46 |
420 |
|
$ |
— |
$ |
94,570 |
|
$ |
(90,009 |
) |
$ |
1,318 |
|
$ |
5,925 |
|
||||||||
Dividends on Series B and B1 Preferred Stock |
— |
|
— |
— |
|
|
— |
|
— |
|
|
(372 |
) |
|
— |
|
|
(372 |
) |
||||||||
Accretion of discount on Series B and B1 Preferred Stock |
— |
|
— |
— |
|
|
— |
|
— |
|
|
(507 |
) |
|
— |
|
|
(507 |
) |
||||||||
Conversion of B1 Preferred Stock to common |
7,722 |
|
7 |
— |
|
|
— |
|
12,038 |
|
|
— |
|
|
— |
|
|
12,045 |
|
||||||||
Share based compensation expense |
— |
|
— |
— |
|
|
— |
|
863 |
|
|
— |
|
|
— |
|
|
863 |
|
||||||||
Exercise of options |
1,800 |
|
2 |
— |
|
|
— |
|
2,188 |
|
|
— |
|
|
— |
|
|
2,190 |
|
||||||||
Exercise of B1 warrants |
3,093 |
|
3 |
— |
|
|
— |
|
16,402 |
|
|
— |
|
|
— |
|
|
16,405 |
|
||||||||
Conversion of Series A Preferred stock to common stock |
34 |
|
— |
(34 |
) |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
Conversion of Series B Preferred Stock to common stock |
5,084 |
|
5 |
— |
|
|
— |
|
12,559 |
|
|
630 |
|
|
— |
|
|
13,194 |
|
||||||||
Distribution to noncontrolling |
— |
|
— |
— |
|
|
— |
|
— |
|
|
— |
|
|
(169 |
) |
|
(169 |
) |
||||||||
Adjustment of redeemable noncontrolling interest to redemption value |
— |
|
— |
— |
|
|
— |
|
— |
|
|
(1,992 |
) |
|
— |
|
|
(1,992 |
) |
||||||||
Contribution from noncontrolling interest |
— |
|
— |
— |
|
|
— |
|
— |
|
|
— |
|
|
(11 |
) |
|
(11 |
) |
||||||||
Net income (loss) |
— |
|
— |
— |
|
|
— |
|
— |
|
|
(18,364 |
) |
|
10,703 |
|
|
(7,661 |
) |
||||||||
Less: amount attributable to redeemable non-controlling interest |
— |
|
— |
— |
|
|
— |
|
— |
|
|
— |
|
|
(9,844 |
) |
|
(9,844 |
) |
||||||||
Balance on |
63,288 |
|
63 |
386 |
|
|
— |
|
138,620 |
|
|
(110,614 |
) |
|
1,997 |
|
|
30,066 |
|
||||||||
Conversion of Series A Preferred stock to common stock |
386 |
|
1 |
(386 |
) |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
||||||||
Conversion of Convertible Senior Notes to common (net of tax) |
10,165 |
|
10 |
— |
|
|
— |
|
59,812 |
|
|
— |
|
|
— |
|
|
59,822 |
|
||||||||
Reclass of derivative liabilities |
— |
|
— |
— |
|
|
— |
|
78,789 |
|
|
— |
|
|
— |
|
|
78,789 |
|
||||||||
Share based compensation expense |
— |
|
— |
— |
|
|
— |
|
1,574 |
|
|
— |
|
|
— |
|
|
1,574 |
|
||||||||
Exercise of warrants |
1,209 |
|
1 |
— |
|
|
— |
|
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
||||||||
Exercise of options |
622 |
|
1 |
— |
|
|
— |
|
729 |
|
|
— |
|
|
— |
|
|
730 |
|
||||||||
Adjustment of redeemable non controlling interest |
— |
|
— |
— |
|
|
— |
|
29 |
|
|
(29 |
) |
|
— |
|
|
— |
|
||||||||
Distribution to noncontrolling |
— |
|
— |
— |
|
|
— |
|
— |
|
|
— |
|
|
(380 |
) |
|
(380 |
) |
||||||||
Adjustment of redeemable noncontrolling interest to redemption value |
— |
|
— |
— |
|
|
— |
|
— |
|
|
(428 |
) |
|
— |
|
|
(428 |
) |
||||||||
Redemption of noncontrolling interest |
— |
|
— |
— |
|
|
— |
|
— |
|
|
— |
|
|
41 |
|
|
41 |
|
||||||||
Net income (loss) |
— |
|
— |
— |
|
|
— |
|
— |
|
|
(4,822 |
) |
|
6,819 |
|
|
1,997 |
|
||||||||
Less: amount attributable to redeemable non-controlling interest |
— |
|
— |
— |
|
|
— |
|
— |
|
|
— |
|
|
(6,792 |
) |
|
(6,792 |
) |
||||||||
Balance on |
75,670 |
|
76 |
— |
|
|
— |
|
279,552 |
|
|
(115,893 |
) |
|
1,685 |
|
|
165,420 |
|
||||||||
Issuance of restricted stock |
113 |
|
— |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
Exercise of options |
526 |
|
1 |
— |
|
|
— |
|
682 |
|
|
— |
|
|
— |
|
|
683 |
|
||||||||
Share based compensation expense |
— |
|
— |
— |
|
|
— |
|
2,285 |
|
|
— |
|
|
— |
|
|
2,285 |
|
||||||||
Conversion of Convertible Senior Note, net |
17,206 |
|
17 |
— |
|
|
— |
|
101,113 |
|
|
— |
|
|
— |
|
|
101,130 |
|
||||||||
Contribution from noncontrolling shareholder |
— |
|
— |
— |
|
|
— |
|
— |
|
|
— |
|
|
2,842 |
|
|
2,842 |
|
||||||||
Net loss |
— |
|
— |
— |
|
|
— |
|
— |
|
|
(71,486 |
) |
|
(487 |
) |
|
(71,973 |
) |
||||||||
Balance on |
93,515 |
$ |
94 |
— |
|
$ |
— |
$ |
383,632 |
|
$ |
(187,379 |
) |
$ |
4,040 |
|
$ |
200,387 |
|
||||||||
|
||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||
FOR THE YEARS ENDING |
||||||||||||
(UNAUDITED) |
||||||||||||
2023 |
2022 |
2021 |
||||||||||
Cash flows from operating activities | ||||||||||||
Net income (loss) |
$ |
(71,973 |
) |
$ |
1,997 |
|
$ |
(7,661 |
) |
|||
Net income from discontinued operations, net of tax |
|
54,197 |
|
|
18,667 |
|
|
17,178 |
|
|||
Net loss from continuing operations |
|
(126,170 |
) |
|
(16,670 |
) |
|
(24,839 |
) |
|||
Adjustments to reconcile net income (loss) from continuing operations to cash used in operating activities: | ||||||||||||
Stock-based compensation expense |
|
2,285 |
|
|
1,574 |
|
|
862 |
|
|||
Depreciation and amortization |
|
31,165 |
|
|
17,102 |
|
|
5,724 |
|
|||
(Reduction in) Provision for bad debt |
|
(224 |
) |
|
242 |
|
|
826 |
|
|||
Loss (gain) on commodity derivative contracts |
|
(2,858 |
) |
|
87,978 |
|
|
2,258 |
|
|||
Provision for environment clean up |
|
— |
|
|
1,428 |
|
|
— |
|
|||
Gain on forgiveness of debt |
|
— |
|
|
— |
|
|
(4,222 |
) |
|||
Net cash settlement on commodity derivatives |
|
6,575 |
|
|
(92,556 |
) |
|
(2,436 |
) |
|||
Loss on sale of assets |
|
(1 |
) |
|
220 |
|
|
64 |
|
|||
Loss on assets impairment |
|
— |
|
|
— |
|
|
2,124 |
|
|||
Amortization of debt discount and deferred costs |
|
78,779 |
|
|
49,251 |
|
|
1,231 |
|
|||
Deferred income tax benefit |
|
(13,385 |
) |
|
(7,171 |
) |
|
— |
|
|||
Loss (gain) on change in value of derivative warrant liability |
|
(7,992 |
) |
|
(7,821 |
) |
|
15,685 |
|
|||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||||||
Accounts receivable |
|
(3,075 |
) |
|
(27,183 |
) |
|
(821 |
) |
|||
Inventory |
|
(45,231 |
) |
|
2,586 |
|
|
(3,997 |
) |
|||
Prepaid expenses |
|
(21,027 |
) |
|
(26,724 |
) |
|
(1,615 |
) |
|||
Accounts payable |
|
53,593 |
|
|
10,850 |
|
|
1,054 |
|
|||
Accrued expenses |
|
(9,855 |
) |
|
77,647 |
|
|
2,551 |
|
|||
Other assets |
|
(1,061 |
) |
|
56 |
|
|
(48 |
) |
|||
Net cash (used in) provided by operating activities from continuing operations |
|
(58,482 |
) |
|
70,809 |
|
|
(5,599 |
) |
|||
Cash flows from investing activities | ||||||||||||
Deposit for refinery purchase and related costs |
|
— |
|
|
— |
|
|
(13,663 |
) |
|||
Internally developed or purchased software |
|
(3,223 |
) |
|
(149 |
) |
|
— |
|
|||
Proceeds from sale of discontinued operation |
|
92,034 |
|
|
— |
|
|
— |
|
|||
Redemption of noncontrolling entity |
|
— |
|
|
556 |
|
|
— |
|
|||
Proceeds from the sale of assets |
|
7 |
|
|
395 |
|
|
75 |
|
|||
Acquisition of business, net of cash |
|
(7,775 |
) |
|
(227,525 |
) |
|
2 |
|
|||
Purchase of fixed assets |
|
(140,313 |
) |
|
(75,512 |
) |
|
(2,331 |
) |
|||
Net cash used in investing activities from continuing operations |
|
(59,270 |
) |
|
(302,235 |
) |
|
(15,917 |
) |
|||
Cash flows from financing activities | ||||||||||||
Line of credit payments, net |
|
— |
|
|
— |
|
|
(133 |
) |
|||
Proceeds received from exercise of options and warrants |
|
683 |
|
|
730 |
|
|
6,921 |
|
|||
Net borrowings on inventory financing agreements |
|
22,154 |
|
|
117,189 |
|
|
— |
|
|||
Contribution received from noncontrolling interest |
|
2,842 |
|
|
— |
|
|
2 |
|
|||
Distribution to non-controlling interest |
|
— |
|
|
(380 |
) |
|
(169 |
) |
|||
Redemption of redeemable noncontrolling interest |
|
— |
|
|
(50,666 |
) |
|
— |
|
|||
Payments on finance leases |
|
(2,045 |
) |
|
(819 |
) |
|
(844 |
) |
|||
Proceeds from issuance of notes payable |
|
68,236 |
|
|
173,256 |
|
|
143,831 |
|
|||
Payments made on notes payable |
|
(39,582 |
) |
|
(18,948 |
) |
|
(15,836 |
) |
|||
Net cash provided by financing activities from continuing operations |
|
52,288 |
|
|
220,362 |
|
|
133,772 |
|
|||
Discontinued operations: | ||||||||||||
Net cash (used in) provided by operating activities |
|
(150 |
) |
|
25,287 |
|
|
15,349 |
|
|||
Net cash used in investing activities |
|
— |
|
|
(4,663 |
) |
|
(1,973 |
) |
|||
Net cash provided by (used in) discontinued operations |
|
(150 |
) |
|
20,624 |
|
|
13,376 |
|
|||
Net change in cash and cash equivalents and restricted cash |
|
(65,614 |
) |
|
9,560 |
|
|
125,632 |
|
|||
Cash and cash equivalents and restricted cash at beginning of the year |
|
146,187 |
|
|
136,627 |
|
|
10,995 |
|
|||
Cash and cash equivalents and restricted cash at end of year |
$ |
80,573 |
|
$ |
146,187 |
|
$ |
136,627 |
|
|||
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the same amounts shown in the consolidated statements of cash flows (in thousands).
|
||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||
FOR THE YEARS ENDING |
||||||||||
(UNAUDITED) |
||||||||||
(Continued) |
||||||||||
2023 |
2022 |
2021 |
||||||||
Cash and cash equivalents |
$ |
76,967 |
$ |
141,258 |
$ |
36,130 |
|
|||
Restricted cash |
|
3,606 |
|
4,929 |
|
100,497 |
|
|||
Cash and cash equivalents and restricted cash as shown in the consolidated statements of cash flows |
$ |
80,573 |
$ |
146,187 |
$ |
136,627 |
|
|||
SUPPLEMENTAL INFORMATION | ||||||||||
Cash paid for interest |
$ |
47,430 |
$ |
33,901 |
$ |
2,273 |
|
|||
Cash paid for income taxes |
|
— |
|
— |
|
— |
|
|||
NON-CASH INVESTING AND FINANCING TRANSACTIONS | ||||||||||
Conversion of Series B and B1 Preferred Stock into common stock |
$ |
— |
$ |
— |
$ |
24,610 |
|
|||
Dividends on Series B and B-1 Preferred Stock |
$ |
— |
$ |
— |
$ |
(258 |
) |
|||
Accretion of discount on Series B and B-1 Preferred Stock |
$ |
— |
$ |
— |
$ |
507 |
|
|||
Accretion of redeemable noncontrolling interest to redemption value |
$ |
— |
$ |
428 |
$ |
1,992 |
|
|||
Equipment acquired under finance leases |
$ |
24,159 |
$ |
46,351 |
$ |
552 |
|
|||
Equipment acquired under operating leases |
$ |
55,114 |
$ |
20,452 |
$ |
89 |
|
|||
Reclass derivative liabilities |
$ |
— |
$ |
78,789 |
$ |
— |
|
|||
Conversion of Convertible Senior note |
$ |
79,948 |
$ |
59,822 |
$ |
— |
|
|||
Unaudited segment information for the three and twelve months ended
YEAR ENDED |
||||||||||||||||
Refining and Marketing |
Black Oil & Recovery |
Corporate and Eliminations |
Total |
|||||||||||||
Revenues: | ||||||||||||||||
Refined products |
$ |
3,007,937 |
|
$ |
121,122 |
|
$ |
(13,039 |
) |
$ |
3,116,020 |
|
||||
Re-refined products |
|
17,997 |
|
|
15,959 |
|
|
— |
|
|
33,956 |
|
||||
Services |
|
20,057 |
|
|
7,154 |
|
|
— |
|
|
27,211 |
|
||||
Total revenues |
|
3,045,991 |
|
|
144,235 |
|
|
(13,039 |
) |
|
3,177,187 |
|
||||
Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
2,894,617 |
|
|
124,731 |
|
|
(13,352 |
) |
|
3,005,996 |
|
||||
Depreciation and amortization attributable to costs of revenues |
|
22,118 |
|
|
4,900 |
|
|
— |
|
|
27,018 |
|
||||
Gross profit |
|
129,256 |
|
|
14,604 |
|
|
313 |
|
|
144,173 |
|
||||
Selling, general and administrative expenses |
|
118,165 |
|
|
19,788 |
|
|
30,687 |
|
|
168,640 |
|
||||
Depreciation and amortization attributable to operating expenses |
|
3,311 |
|
|
164 |
|
|
671 |
|
|
4,146 |
|
||||
Income (loss) from operations |
|
7,780 |
|
|
(5,348 |
) |
|
(31,045 |
) |
|
(28,613 |
) |
||||
Other income (expenses) | ||||||||||||||||
Other income (expense) |
|
— |
|
|
600 |
|
|
33 |
|
|
633 |
|
||||
Gain on change in derivative liability |
|
— |
|
|
— |
|
|
7,992 |
|
|
7,992 |
|
||||
Interest expense |
|
(18,092 |
) |
|
(188 |
) |
|
(101,287 |
) |
|
(119,567 |
) |
||||
Total other income (expense) |
|
(18,092 |
) |
|
412 |
|
|
(93,262 |
) |
|
(110,942 |
) |
||||
Income (loss) before income tax |
$ |
(10,312 |
) |
$ |
(4,936 |
) |
$ |
(124,307 |
) |
$ |
(139,555 |
) |
||||
Total capital expenditures |
$ |
122,827 |
|
$ |
17,486 |
|
$ |
— |
|
$ |
140,313 |
|
||||
YEAR ENDED |
||||||||||||||||
Refining and Marketing |
Black Oil & Recovery |
Corporate and Eliminations |
Total |
|||||||||||||
Revenues: | ||||||||||||||||
Refined products |
$ |
2,370,240 |
|
$ |
163,095 |
|
$ |
— |
|
$ |
2,533,335 |
|
||||
Re-refined products |
|
229,793 |
|
|
19,105 |
|
|
— |
|
|
248,898 |
|
||||
Services |
|
6,611 |
|
|
2,871 |
|
|
— |
|
|
9,482 |
|
||||
Total revenues |
|
2,606,644 |
|
|
185,071 |
|
|
— |
|
|
2,791,715 |
|
||||
Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
2,453,809 |
|
|
144,467 |
|
|
— |
|
|
2,598,276 |
|
||||
Depreciation and amortization attributable to costs of revenues |
|
9,605 |
|
|
3,824 |
|
|
— |
|
|
13,429 |
|
||||
Gross profit |
|
143,230 |
|
|
36,780 |
|
|
— |
|
|
180,010 |
|
||||
Selling, general and administrative expenses |
|
83,001 |
|
|
17,241 |
|
|
27,540 |
|
|
127,782 |
|
||||
Depreciation and amortization attributable to operating expenses |
|
2,593 |
|
|
180 |
|
|
900 |
|
|
3,673 |
|
||||
Income (loss) from operations |
|
57,636 |
|
|
19,359 |
|
|
(28,440 |
) |
|
48,555 |
|
||||
Other income (expenses) | ||||||||||||||||
Other income (expense) |
|
18 |
|
|
(104 |
) |
|
(220 |
) |
|
(306 |
) |
||||
Gain on change in derivative liability |
|
— |
|
|
— |
|
|
7,821 |
|
|
7,821 |
|
||||
Interest expense |
|
(10,414 |
) |
|
(50 |
) |
|
(69,447 |
) |
|
(79,911 |
) |
||||
Total other income (expense) |
|
(10,396 |
) |
|
(154 |
) |
|
(61,846 |
) |
|
(72,396 |
) |
||||
Income (loss) before income tax |
$ |
47,240 |
|
$ |
19,205 |
|
$ |
(90,286 |
) |
$ |
(23,841 |
) |
||||
Total capital expenditures |
$ |
72,588 |
|
$ |
2,924 |
|
$ |
— |
|
$ |
75,512 |
|
||||
YEAR ENDED |
||||||||||||||||
Refining and Marketing |
Black Oil & Recovery |
Corporate and Eliminations |
Total |
|||||||||||||
Revenues: | ||||||||||||||||
Refined products |
$ |
78,191 |
|
$ |
85,253 |
|
$ |
— |
|
$ |
163,444 |
|
||||
Re-refined products |
|
15,039 |
|
|
25,611 |
|
|
— |
|
|
40,650 |
|
||||
Services |
|
— |
|
|
3,666 |
|
|
— |
|
|
3,666 |
|
||||
Total revenues |
|
93,230 |
|
|
114,530 |
|
|
— |
|
|
207,760 |
|
||||
Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
89,570 |
|
|
89,216 |
|
|
— |
|
|
178,786 |
|
||||
Depreciation and amortization attributable to costs of revenues |
|
509 |
|
|
3,534 |
|
|
— |
|
|
4,043 |
|
||||
Gross profit |
|
3,151 |
|
|
21,780 |
|
|
— |
|
|
24,931 |
|
||||
Selling, general and administrative expenses |
|
3,277 |
|
|
14,444 |
|
|
12,885 |
|
|
30,606 |
|
||||
Loss on Assets Impairment |
|
— |
|
|
2,124 |
|
|
— |
|
|
2,124 |
|
||||
Depreciation and amortization attributable to operating expenses |
|
434 |
|
|
234 |
|
|
1,013 |
|
|
1,681 |
|
||||
Income (loss) from operations |
|
(560 |
) |
|
4,978 |
|
|
(13,898 |
) |
|
(9,480 |
) |
||||
Other income (expenses) | ||||||||||||||||
Other income (expense) |
|
— |
|
|
— |
|
|
4,158 |
|
|
4,158 |
|
||||
Loss on change in derivative liability |
|
— |
|
|
— |
|
|
(15,685 |
) |
|
(15,685 |
) |
||||
Interest expense |
|
— |
|
|
— |
|
|
(3,832 |
) |
|
(3,832 |
) |
||||
Total other income |
|
— |
|
|
— |
|
|
(15,359 |
) |
|
(15,359 |
) |
||||
Income (loss) before income tax |
$ |
(560 |
) |
$ |
4,978 |
|
$ |
(29,257 |
) |
$ |
(24,839 |
) |
||||
Total capital expenditures |
$ |
— |
|
$ |
2,331 |
|
$ |
— |
|
$ |
2,331 |
|
||||
The following summarized unaudited financial information has been segregated from continuing operations and reported as Discontinued Operations for the years ended
For The Year Ended |
|||||||||||
2023 |
2022 |
2021 |
|||||||||
Revenues |
$ |
7,366 |
|
$ |
85,495 |
|
$ |
58,248 |
|||
Cost of revenues (exclusive of depreciation shown separately below) |
|
4,589 |
|
|
51,815 |
|
|
32,467 |
|||
Depreciation and amortization attributable to costs of revenues |
|
124 |
|
|
1,566 |
|
|
1,566 |
|||
Gross profit |
|
2,653 |
|
|
32,114 |
|
|
24,215 |
|||
Operating expenses: | |||||||||||
Selling, general and administrative expenses |
|
632 |
|
|
8,501 |
|
|
6,727 |
|||
(exclusive of acquisition related expenses) | |||||||||||
Depreciation and amortization expense attributable to operating expenses |
|
21 |
|
|
251 |
|
|
251 |
|||
Total Operating expenses |
|
653 |
|
|
8,752 |
|
|
6,978 |
|||
Income from operations |
|
2,000 |
|
|
23,362 |
|
|
17,237 |
|||
Other income (expense) | |||||||||||
Interest expense |
|
- |
|
|
-39 |
|
|
-59 |
|||
Total other expense |
|
- |
|
|
-39 |
|
|
-59 |
|||
Income before income tax |
|
2,000 |
|
|
23,323 |
|
|
17,178 |
|||
Income tax expense |
|
(1,572 |
) |
|
(4,683 |
) |
|
— |
|||
Gain on sale of discontinued operations, net of tax of 1,711 |
|
53,769 |
|
|
27 |
|
|
— |
|||
Income from discontinued operations, net of tax |
$ |
54,197 |
|
$ |
18,667 |
|
$ |
17,178 |
|||
Unaudited Reconciliation of Gross Profit (Loss) From Continued and Discontinued Operations to Adjusted Gross Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of Throughput and Operating Expenses Per Barrel of Throughput.
Three Months Ended |
||||||||||||
In thousands |
Conventional |
Renewable |
Total |
|||||||||
Gross profit |
$ |
7,283 |
|
$ |
(17,557 |
) |
$ |
(10,273 |
) |
|||
Unrealized (gain) loss on hedging activities |
|
4,892 |
|
|
77 |
|
|
4,969 |
|
|||
Inventory valuation adjustments |
|
(3,400 |
) |
|
2,152 |
|
|
(1,248 |
) |
|||
Adjusted gross margin |
$ |
8,775 |
|
$ |
(15,328 |
) |
$ |
(6,553 |
) |
|||
Variable production costs attributable to cost of revenues |
|
19,770 |
|
|
19,497 |
|
|
39,267 |
|
|||
Depreciation and amortization attributable to cost of revenues |
|
2,492 |
|
|
3,997 |
|
|
6,489 |
|
|||
RINs |
|
6,662 |
|
|
- |
|
|
6,662 |
|
|||
Realized (gain) loss on hedging activities |
|
(3,751 |
) |
|
(3,587 |
) |
|
(7,338 |
) |
|||
Financing costs |
|
1,989 |
|
|
157 |
|
|
2,146 |
|
|||
Other revenues |
|
(6,361 |
) |
|
(361 |
) |
|
(6,722 |
) |
|||
Fuel gross margin |
$ |
29,576 |
|
$ |
4,375 |
|
$ |
33,951 |
|
|||
Throughput (bpd) |
|
67,083 |
|
|
3,926 |
|
|
71,009 |
|
|||
Fuel gross margin per barrel of throughput |
$ |
4.79 |
|
$ |
12.11 |
|
$ |
5.20 |
|
|||
Total OPEX |
$ |
15,162 |
|
$ |
9,868 |
|
$ |
25,030 |
|
|||
Operating expenses per barrel of throughput |
$ |
2.46 |
|
$ |
27.32 |
|
$ |
3.83 |
|
|||
Three Months Ended |
||||||||||||
In thousands |
Conventional |
Renewable |
Total |
|||||||||
Gross profit |
$ |
86,185 |
|
$ |
(8,515 |
) |
$ |
77,670 |
|
|||
Unrealized (gain) loss on hedging activities |
|
(4,620 |
) |
|
(3,622 |
) |
|
(8,242 |
) |
|||
Inventory valuation adjustments |
|
13,225 |
|
|
(3,851 |
) |
|
9,374 |
|
|||
Adjusted gross margin |
$ |
94,790 |
|
$ |
(15,988 |
) |
$ |
78,802 |
|
|||
Variable production costs attributable to cost of revenues |
|
26,847 |
|
|
12,958 |
|
|
39,805 |
|
|||
Depreciation and amortization attributable to cost of revenues |
|
2,982 |
|
|
3,320 |
|
|
6,302 |
|
|||
RINs |
|
7,058 |
|
|
- |
|
|
7,058 |
|
|||
Realized (gain) loss on hedging activities |
|
2,854 |
|
|
2,401 |
|
|
5,255 |
|
|||
Financing costs |
|
1,772 |
|
|
205 |
|
|
1,977 |
|
|||
Other revenues |
|
(6,804 |
) |
|
(524 |
) |
|
(7,328 |
) |
|||
Fuel gross margin |
$ |
129,499 |
|
$ |
2,372 |
|
$ |
131,871 |
|
|||
Throughput (bpd) |
|
80,171 |
|
|
5,397 |
|
|
85,568 |
|
|||
Fuel gross margin per barrel of throughput |
$ |
17.56 |
|
$ |
4.78 |
|
$ |
16.75 |
|
|||
Total OPEX |
$ |
17,720 |
|
$ |
11,445 |
|
$ |
29,165 |
|
|||
Operating expenses per barrel of throughput |
$ |
2.40 |
|
$ |
23.05 |
|
$ |
3.70 |
|
|||
Three Months Ended |
||||||||||||
In thousands |
Conventional |
Renewable |
Total |
|||||||||
Gross profit |
$ |
6,544 |
|
$ |
(13,006 |
) |
$ |
(6,462 |
) |
|||
Unrealized (gain) loss on hedging activities |
|
849 |
|
|
2,913 |
|
|
3,762 |
|
|||
Inventory valuation adjustments |
|
(4,246 |
) |
|
3,745 |
|
|
(501 |
) |
|||
Adjusted gross margin |
$ |
3,147 |
|
$ |
(6,348 |
) |
$ |
(3,201 |
) |
|||
Variable production costs attributable to cost of revenues |
|
28,686 |
|
|
77 |
|
|
28,763 |
|
|||
Depreciation and amortization attributable to cost of revenues |
|
3,351 |
|
|
2,018 |
|
|
5,369 |
|
|||
RINs |
|
25,410 |
|
|
- |
|
|
25,410 |
|
|||
Realized (gain) loss on hedging activities |
|
(1,150 |
) |
|
1,288 |
|
|
138 |
|
|||
Financing costs |
|
(87 |
) |
|
58 |
|
|
(29 |
) |
|||
Other revenues |
|
(3,610 |
) |
|
(190 |
) |
|
(3,800 |
) |
|||
Fuel gross margin |
$ |
55,747 |
|
$ |
(3,097 |
) |
$ |
52,650 |
|
|||
Throughput (bpd) |
|
76,330 |
|
|
2,490 |
|
|
78,820 |
|
|||
Fuel gross margin per barrel of throughput |
$ |
8.03 |
|
$ |
(13.66 |
) |
$ |
7.34 |
|
|||
Total OPEX |
$ |
23,299 |
|
$ |
7,076 |
|
$ |
30,375 |
|
|||
Operating expenses per barrel of throughput |
$ |
3.35 |
|
$ |
31.23 |
|
$ |
4.23 |
|
|||
Three Months Ended |
||||||||||||
In thousands |
Conventional |
Renewable |
Total |
|||||||||
Gross profit |
$ |
65,470 |
|
$ |
- |
|
$ |
65,470 |
|
|||
Unrealized (gain) loss on hedging activities |
|
(570 |
) |
|
- |
|
|
(570 |
) |
|||
Inventory valuation adjustments |
|
(1,532 |
) |
|
- |
|
|
(1,532 |
) |
|||
Adjusted gross margin |
$ |
63,368 |
|
$ |
- |
|
$ |
63,368 |
|
|||
Variable production costs attributable to cost of revenues |
|
21,252 |
|
|
- |
|
|
21,252 |
|
|||
Depreciation and amortization attributable to cost of revenues |
|
3,144 |
|
|
- |
|
|
3,144 |
|
|||
RINs |
|
16,115 |
|
|
- |
|
|
16,115 |
|
|||
Realized loss on hedging activities |
|
(439 |
) |
|
- |
|
|
(439 |
) |
|||
Financing costs |
|
2,295 |
|
|
- |
|
|
2,295 |
|
|||
Other revenues |
|
(1,933 |
) |
|
- |
|
|
(1,933 |
) |
|||
Fuel gross margin |
$ |
103,802 |
|
$ |
- |
|
$ |
103,802 |
|
|||
Throughput (bpd) |
|
71,328 |
|
|
- |
|
|
71,328 |
|
|||
Fuel gross margin per barrel of throughput |
$ |
16.17 |
|
$ |
- |
|
$ |
16.17 |
|
|||
Total OPEX |
$ |
24,681 |
|
$ |
- |
|
$ |
24,681 |
|
|||
Operating expenses per barrel of throughput |
$ |
3.84 |
|
$ |
- |
|
$ |
3.84 |
|
Twelve Months Ended |
||||||||||||
In thousands |
Conventional |
Renewable |
Total |
|||||||||
Gross profit |
$ |
165,481 |
|
$ |
(39,078 |
) |
$ |
126,403 |
|
|||
Unrealized (gain) loss on hedging activities |
|
551 |
|
|
(632 |
) |
|
(81 |
) |
|||
Inventory valuation adjustments |
|
4,047 |
|
|
2,046 |
|
|
6,093 |
|
|||
Adjusted gross margin |
$ |
170,079 |
|
$ |
(37,664 |
) |
$ |
132,415 |
|
|||
Variable production costs attributable to cost of revenues |
|
96,555 |
|
|
32,532 |
|
|
129,087 |
|
|||
Depreciation and amortization attributable to cost of revenues |
|
11,969 |
|
|
9,335 |
|
|
21,304 |
|
|||
RINs |
|
55,245 |
|
|
- |
|
|
55,245 |
|
|||
Realized (gain) loss on hedging activities |
|
(2,486 |
) |
|
102 |
|
|
(2,384 |
) |
|||
Financing costs |
|
5,969 |
|
|
420 |
|
|
6,389 |
|
|||
Other revenues |
|
(18,708 |
) |
|
(1,075 |
) |
|
(19,783 |
) |
|||
Fuel gross margin |
$ |
318,623 |
|
$ |
3,650 |
|
$ |
322,273 |
|
|||
Throughput (bpd) |
|
73,734 |
|
|
3,943 |
|
|
77,677 |
|
|||
Fuel gross margin per barrel of throughput |
$ |
11.84 |
|
$ |
3.37 |
|
$ |
11.37 |
|
|||
Total OPEX |
$ |
80,862 |
|
$ |
28,389 |
|
$ |
109,251 |
|
|||
Operating expenses per barrel of throughput |
$ |
3.00 |
|
$ |
26.18 |
|
$ |
3.85 |
|
Unaudited Reconciliation of Adjusted EBITDA to Net loss from Continued and Discontinued Operations.
In thousands |
Three Months Ended |
Twelve Months Ended |
||||||||||||||
|
|
|
|
|||||||||||||
Net income (loss) |
$ |
(63,865 |
) |
$ |
44,418 |
|
$ |
(71,973 |
) |
$ |
1,997 |
|
||||
Depreciation and amortization |
|
9,225 |
|
|
5,761 |
|
|
31,310 |
|
|
18,919 |
|
||||
Income tax expense (benefit) |
|
1,543 |
|
|
(2,489 |
) |
|
5,297 |
|
|
(2,488 |
) |
||||
Interest expense |
|
16,029 |
|
|
14,956 |
|
|
119,566 |
|
|
79,950 |
|
||||
EBITDA |
$ |
(37,068 |
) |
$ |
62,646 |
|
$ |
84,200 |
|
$ |
98,378 |
|
||||
Unrealized (gain) loss on hedging activities |
|
4,981 |
|
|
978 |
|
|
(252 |
) |
|
(146 |
) |
||||
Inventory valuation adjustments |
|
(1,248 |
) |
|
9,614 |
|
|
6,093 |
|
|
50,766 |
|
||||
Gain on change in value of derivative warrant liability |
|
(2,956 |
) |
|
(33 |
) |
|
(7,992 |
) |
|
(7,821 |
) |
||||
Stock-based compensation |
|
783 |
|
|
622 |
|
|
2,285 |
|
|
1,574 |
|
||||
(Gain) loss on sale of assets |
|
3 |
|
|
- |
|
|
(70,878 |
) |
|
- |
|
||||
Acquisition costs |
|
- |
|
|
- |
|
|
4,308 |
|
|
16,527 |
|
||||
Environmental clean-up reserve |
|
- |
|
|
- |
|
|
- |
|
|
1,428 |
|
||||
Other |
|
388 |
|
|
1,339 |
|
|
(634 |
) |
|
280 |
|
||||
Adjusted EBITDA |
$ |
(35,117 |
) |
$ |
75,166 |
|
$ |
17,130 |
|
$ |
160,986 |
|
Three Months Ended December 31, 2023 |
||||||||||||||||||||||||||||
Mobile Refinery |
Legacy Refining & Marketing |
Total Refining & Marketing |
Black Oil and Recovery |
Corporate |
Consolidated |
|||||||||||||||||||||||
In thousands |
Conventional |
Renewable |
||||||||||||||||||||||||||
Net income (loss) |
$ |
(11,112 |
) |
$ |
(30,266 |
) |
$ |
(2,424 |
) |
$ |
(43,801 |
) |
$ |
(1,670 |
) |
$ |
(18,395 |
) |
$ |
(63,865 |
) |
|||||||
Depreciation and amortization |
|
3,252 |
|
|
4,017 |
|
|
313 |
|
|
7,582 |
|
|
1,476 |
|
|
167 |
|
|
9,225 |
|
|||||||
Income tax expense (benefit) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(517 |
) |
|
2,060 |
|
|
1,543 |
|
|||||||
Interest expense |
|
2,473 |
|
|
2,820 |
|
|
- |
|
|
5,293 |
|
|
62 |
|
|
10,675 |
|
|
16,029 |
|
|||||||
EBITDA |
$ |
(5,387 |
) |
$ |
(23,429 |
) |
$ |
(2,111 |
) |
$ |
(30,926 |
) |
$ |
(649 |
) |
$ |
(5,493 |
) |
$ |
(37,068 |
) |
|||||||
Unrealized (gain) loss on hedging activities |
|
4,892 |
|
|
77 |
|
|
(7 |
) |
|
4,962 |
|
|
19 |
|
|
- |
|
|
4,981 |
|
|||||||
Inventory valuation adjustments |
|
(3,400 |
) |
|
2,152 |
|
|
- |
|
|
(1,248 |
) |
|
- |
|
|
- |
|
|
(1,248 |
) |
|||||||
Gain on change in value of derivative warrant liability |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(2,956 |
) |
|
(2,956 |
) |
|||||||
Stock-based compensation |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
783 |
|
|
783 |
|
|||||||
(Gain) loss on sale of assets |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
3 |
|
|
3 |
|
|||||||
Other |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
389 |
|
|
(1 |
) |
|
388 |
|
|||||||
Adjusted EBITDA |
$ |
(3,895 |
) |
$ |
(21,200 |
) |
$ |
(2,118 |
) |
$ |
(27,212 |
) |
$ |
(241 |
) |
$ |
(7,664 |
) |
$ |
(35,117 |
) |
|||||||
Twelve Months Ended December 31, 2023 |
||||||||||||||||||||||||||||
Mobile Refinery |
Legacy Refining & Marketing |
Total Refining & Marketing |
Black Oil and Recovery |
Corporate |
Consolidated |
|||||||||||||||||||||||
In thousands |
Conventional |
Renewable |
||||||||||||||||||||||||||
Net income (loss) |
$ |
68,574 |
|
$ |
(72,537 |
) |
$ |
(6,349 |
) |
$ |
(10,312 |
) |
$ |
49,260 |
|
$ |
(110,922 |
) |
$ |
(71,973 |
) |
|||||||
Depreciation and amortization |
|
14,937 |
|
|
9,390 |
|
|
1,103 |
|
|
25,430 |
|
|
5,209 |
|
|
671 |
|
|
31,310 |
|
|||||||
Income tax expense (benefit) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
18,682 |
|
|
(13,385 |
) |
|
5,297 |
|
|||||||
Interest expense |
|
13,077 |
|
|
5,015 |
|
|
- |
|
|
18,092 |
|
|
188 |
|
|
101,287 |
|
|
119,566 |
|
|||||||
EBITDA |
$ |
96,588 |
|
$ |
(58,132 |
) |
$ |
(5,246 |
) |
$ |
33,210 |
|
$ |
73,339 |
|
$ |
(22,349 |
) |
$ |
84,200 |
|
|||||||
Unrealized (gain) loss on hedging activities |
|
551 |
|
|
(632 |
) |
|
(89 |
) |
|
(170 |
) |
|
(82 |
) |
|
- |
|
|
(252 |
) |
|||||||
Inventory valuation adjustments |
|
4,047 |
|
|
2,046 |
|
|
- |
|
|
6,093 |
|
|
- |
|
|
- |
|
|
6,093 |
|
|||||||
Gain on change in value of derivative warrant liability |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(7,992 |
) |
|
(7,992 |
) |
|||||||
Stock-based compensation |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
2,285 |
|
|
2,285 |
|
|||||||
(Gain) loss on sale of assets |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(70,884 |
) |
|
6 |
|
|
(70,878 |
) |
|||||||
Acquisition costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
4,308 |
|
|
4,308 |
|
|||||||
Other |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(595 |
) |
|
(39 |
) |
|
(634 |
) |
|||||||
Adjusted EBITDA |
$ |
101,186 |
|
$ |
(56,718 |
) |
$ |
(5,335 |
) |
$ |
39,133 |
|
$ |
1,778 |
|
$ |
(23,781 |
) |
$ |
17,130 |
|
Three Months Ended December 31, 2022 |
||||||||||||||||||||||
In thousands |
Mobile Refinery |
Legacy Refining & Marketing |
Total Refining & Marketing |
Black Oil |
Corporate |
Consolidated |
||||||||||||||||
Net income (loss) |
$ |
56,839 |
$ |
(1,860 |
) |
$ |
54,979 |
$ |
4,706 |
|
$ |
(15,267 |
) |
$ |
44,418 |
|
||||||
Depreciation and amortization |
|
3,857 |
|
- |
|
|
3,857 |
|
1,733 |
|
|
171 |
|
|
5,761 |
|
||||||
Income tax expense (benefit) |
|
- |
|
- |
|
|
- |
|
- |
|
|
(2,489 |
) |
|
(2,489 |
) |
||||||
Interest expense |
|
3,721 |
|
- |
|
|
3,721 |
|
25 |
|
|
11,210 |
|
|
14,956 |
|
||||||
EBITDA |
$ |
64,417 |
$ |
(1,860 |
) |
$ |
62,557 |
$ |
6,464 |
|
$ |
(6,375 |
) |
$ |
62,646 |
|
||||||
Unrealized (gain) loss on hedging activities |
|
165 |
|
138 |
|
|
303 |
|
675 |
|
|
- |
|
|
978 |
|
||||||
Inventory valuation adjustments |
|
14,011 |
|
- |
|
|
14,011 |
|
(4,397 |
) |
|
- |
|
|
9,614 |
|
||||||
Gain on change in value of derivative warrant liability |
|
- |
|
- |
|
|
- |
|
- |
|
|
(33 |
) |
|
(33 |
) |
||||||
Stock-based compensation |
|
- |
|
- |
|
|
- |
|
- |
|
|
622 |
|
|
622 |
|
||||||
Other |
|
- |
|
- |
|
|
- |
|
1,119 |
|
|
220 |
|
|
1,339 |
|
||||||
Adjusted EBITDA |
$ |
78,593 |
$ |
(1,722 |
) |
$ |
76,871 |
$ |
3,861 |
|
$ |
(5,566 |
) |
$ |
75,166 |
|
||||||
Twelve Months Ended December 31, 2022 |
||||||||||||||||||||||
In thousands |
Mobile Refinery |
Legacy Refining & Marketing |
Total Refining & Marketing |
Black Oil |
Corporate |
Consolidated |
||||||||||||||||
Net income (loss) |
$ |
51,247 |
$ |
(4,007 |
) |
$ |
47,240 |
$ |
18,968 |
|
$ |
(64,211 |
) |
$ |
1,997 |
|
||||||
Depreciation and amortization |
|
11,273 |
|
925 |
|
|
12,198 |
|
4,004 |
|
|
2,717 |
|
|
18,919 |
|
||||||
Income tax expense (benefit) |
|
- |
|
- |
|
|
- |
|
- |
|
|
(2,488 |
) |
|
(2,488 |
) |
||||||
Interest expense |
|
10,414 |
|
- |
|
|
10,414 |
|
67 |
|
|
69,469 |
|
|
79,950 |
|
||||||
EBITDA |
$ |
72,934 |
$ |
(3,082 |
) |
$ |
69,852 |
$ |
23,039 |
|
$ |
5,487 |
|
$ |
98,378 |
|
||||||
Unrealized (gain) loss on hedging activities |
|
90 |
|
69 |
|
|
159 |
|
(305 |
) |
|
- |
|
|
(146 |
) |
||||||
Inventory valuation adjustments |
|
37,764 |
|
- |
|
|
37,764 |
|
13,002 |
|
|
- |
|
|
50,766 |
|
||||||
Gain on change in value of derivative warrant liability |
|
- |
|
- |
|
|
- |
|
- |
|
|
(7,821 |
) |
|
(7,821 |
) |
||||||
Stock-based compensation |
|
- |
|
- |
|
|
- |
|
- |
|
|
1,574 |
|
|
1,574 |
|
||||||
Acquisition costs |
|
11,967 |
|
- |
|
|
11,967 |
|
4,560 |
|
|
- |
|
|
16,527 |
|
||||||
Environmental clean-up reserve |
|
1,428 |
|
- |
|
|
1,428 |
|
- |
|
|
- |
|
|
1,428 |
|
||||||
Other |
|
13,282 |
|
- |
|
|
13,282 |
|
(13,222 |
) |
|
220 |
|
|
280 |
|
||||||
Adjusted EBITDA |
$ |
137,465 |
$ |
(3,013 |
) |
$ |
134,452 |
$ |
27,074 |
|
$ |
(540 |
) |
$ |
160,986 |
|
Unaudited Reconciliation of Long-Term Debt to Net Long-Term Debt and Net Leverage.
In thousands |
As of |
|||||||
December 31, 2023 |
December 31, 2022 |
|||||||
Long-Term Debt: | ||||||||
Senior Convertible Note |
$ |
15,230 |
|
$ |
95,178 |
|
||
Term Loan 2025 |
|
195,950 |
|
|
165,000 |
|
||
Finance lease liability long-term |
|
66,206 |
|
|
45,164 |
|
||
Finance lease liability short-term |
|
2,435 |
|
|
1,363 |
|
||
Insurance premiums financed |
|
6,237 |
|
|
5,661 |
|
||
Long-Term Debt and Lease Obligations |
$ |
286,058 |
|
$ |
312,366 |
|
||
Unamortized discount and deferred financing costs |
|
(30,354 |
) |
|
(81,918 |
) |
||
Long-Term Debt and Lease Obligations per Balance Sheet |
$ |
255,704 |
|
$ |
230,448 |
|
||
Cash and Cash Equivalents |
|
(76,967 |
) |
|
(141,258 |
) |
||
Restricted Cash |
|
(3,606 |
) |
|
(4,929 |
) |
||
Total Cash and Cash Equivalents |
$ |
(80,573 |
) |
$ |
(146,187 |
) |
||
Net Long-Term Debt |
$ |
205,485 |
|
$ |
166,179 |
|
||
Adjusted EBITDA |
$ |
17,130 |
|
$ |
160,985 |
|
||
Net Leverage |
12.0x |
1.0x |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228792460/en/
IR@vertexenergy.com
203-682-8284
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