Via Renewables (VIA) Q3 2024 earnings summary

Executive summary

• Report covers the quarter ended September 30, 2024, with operations in 103 utility territories across 20 states and D.C.

• Business consists of retail electricity and natural gas segments, with 88% of Q3 retail revenues from electricity and 12% from natural gas.

• Net income for Q3 2024 was $1.7M, down from $14.7M in Q3 2023; nine-month net income rose to $36.4M from $27.0M year-over-year.

• Completed a merger in June 2024, resulting in all Class A and B common stock owned by Mr. Maxwell and affiliates, and delisting of Class A shares from NASDAQ.

• Entered agreements in October 2024 to acquire up to 100,600 residential customer equivalents (RCEs) for $16.9M.

Financial highlights

• Q3 2024 total revenues were $93.8M, down 15% year-over-year, mainly due to lower electricity volumes and rates.

• Q3 2024 net income attributable to stockholders was $(0.6)M, or $(0.17) per share, compared to $4.8M ($1.49 per share) in Q3 2023.

• Retail gross margin for Q3 2024 was $30.0M, down from $31.9M in Q3 2023; nine-month retail gross margin was $99.1M, down from $102.9M.

• Adjusted EBITDA for Q3 2024 was $10.3M, compared to $12.8M in Q3 2023; nine-month Adjusted EBITDA was $37.8M, down from $43.6M.

• Cash provided by operating activities for the nine months was $48.5M, up from $40.9M in the prior year; cash and cash equivalents at September 30, 2024 were $66.6M.

Outlook and guidance

• Management expects continued focus on organic and acquisition-driven customer growth, with recent agreements to acquire over 100,000 RCEs.

• Future dividends on Series A Preferred Stock will depend on profitability, cash flow, and compliance with credit facility covenants.

• Maryland regulatory changes (SB1) introduce uncertainty in the retail energy market; company is working to minimize economic impacts.