Vertex Energy Inc (VTNR) Reports Q3 2023 Earnings, Net Income Drops to $19.8 Million
Vertex Energy Inc (NASDAQ:VTNR) reports Q3 2023 net income of $19.8 million, down from $22.2 million in Q3 2022.
Adjusted EBITDA for Q3 2023 was $51.5 million, a significant increase from $1.6 million in the prior-year period.
Mobile Refinery's conventional operations generated a gross profit of $86.2 million in Q3 2023, up from $49.1 million in Q3 2022.
The company's total debt outstanding as of September 30, 2023, was $242.3 million, with total cash and equivalents of $79.3 million.
On November 7, 2023, Vertex Energy Inc (NASDAQ:VTNR), a leading specialty refiner and marketer of high-quality refined products, announced its financial results for the third quarter ended September 30, 2023.
Financial Performance and Challenges
For the third quarter of 2023, Vertex reported a net income attributable to common shareholders of $19.8 million, or $0.17 per fully-diluted share. This is a decrease from the net income of $22.2 million, or $0.15 per fully-diluted share, reported for the third quarter of 2022. The financial results for Q3 2023 include an inventory valuation adjustment charge of $9.4 million.
Financial Achievements
Despite the decrease in net income, Vertex saw a significant increase in its Adjusted EBITDA, which was $51.5 million for the third quarter of 2023, compared to Adjusted EBITDA of $1.6 million in the prior-year period.
Income Statement, Balance Sheet, and Cash Flow Statement Highlights
As of September 30, 2023, Vertex had total debt outstanding of $242.3 million, including $15.2 million in 6.25% Senior Convertible Notes, $148.0 million outstanding on the Companys Term Loan, finance lease obligations of $69.0 million, and $10.1 million in other obligations. The Company had total cash and equivalents of $79.3 million, including $3.6 million of restricted cash on the balance sheet as of September 30, 2023, for a net debt position of $163.0 million. The ratio of net debt to trailing twelve month Adjusted EBITDA was 1.3 times as of September 30, 2023.
Management Commentary
Mr. Benjamin P. Cowart, Vertexs Chief Executive Officer stated, During the third quarter, we demonstrated yet another quarter of safe, reliable operations at the Mobile Refinery, exceeding our operational expectations for the period. Favorable commodity prices which provided a tailwind to results during the third quarter, presented an opportunity for our risk management team to secure attractive pricing for approximately 27% of our gasoline production during the seasonally weak fourth quarter of the year.
Outlook
For the fourth quarter of 2023, Vertex expects the Mobile Refinery Conventional Throughput Volume to be between 68.0 and 71.0 Mbpd, with a capacity utilization of 91% to 95%. The Mobile Refinery Renewable Throughput Volume is expected to be between 4.0 and 6.0 Mbpd, with a capacity utilization of 50% to 75%.
Explore the complete 8-K earnings release (here) from Vertex Energy Inc for further details.
This article first appeared on GuruFocus.
