On November 2, 2023, Via Renewables Inc (VIA, Financial), an independent retail energy services company, released its financial results for the third quarter ended September 30, 2023. The company reported a net income of $14.7 million, a significant improvement from the net loss of $(4.9) million in the same quarter of the previous year. The increase was largely due to an increase in the mark-to-market on VIA's hedges, partially offset by increases in income tax, G&A, and interest expense.
Financial Highlights
VIA reported an adjusted EBITDA of $12.8 million for Q3 2023, down from $15.1 million in Q3 2022. The decrease was primarily due to a decrease in the company's Retail Electricity Segment Gross Margin and an increase in G&A expense due to higher sales and marketing expenses and broker fees.
The company also reported a gross profit of $39.2 million, a significant increase from the $16.6 million reported in Q3 2022. This increase was largely due to an increase in the mark-to-market of VIA's hedges. The company's retail gross margin also increased to $31.9 million from $30.5 million in Q3 2022.
Financial Position
As of September 30, 2023, VIA's total liquidity stood at $98.8 million. This included $45.1 million in cash and cash equivalents, $28.7 million in Senior Credit Facility Availability, and $25 million in Subordinated Debt Facility Availability.
Dividend and Business Outlook
On October 18, 2023, VIA declared a dividend of $0.76459 per share for the Series A Preferred Stock for Q3 2023. However, the company had previously suspended the quarterly cash dividend on the common stock to enhance its financial flexibility and improve its ability to manage market volatility.
Looking ahead, Keith Maxwell, VIA's President and CEO, stated that the company will continue to strategically invest in customer growth through its organic and inorganic sales channels. He also noted that the company's ability to adapt to changing market dynamics and meet the preferences of a broader range of consumers will be enhanced by the diversity of its product offerings and customer base.
About Via Renewables Inc
Via Renewables Inc is an independent retail energy services company that provides residential and commercial customers in competitive markets across the United States with an alternative choice for natural gas and electricity. The company currently operates in 103 utility service territories across 20 states and the District of Columbia.
Explore the complete 8-K earnings release (here) from Via Renewables Inc for further details.
