HOUSTON--(BUSINESS WIRE)--Vertex Energy, Inc. (OTCBB:VTNR), a leader in the aggregation, re-refining and processing of distressed petroleum streams such as used oil, transmix, fuel oils and off-specification commercial chemical products, today announced its financial results for the third quarter ended September 30, 2011.
Benjamin P. Cowart, Chief Executive Officer of Vertex Energy said, “Our third quarter results for 2011 represent another improved quarter relative to 2010. We continue to expand our used oil aggregation footprint, our overall sales volume and our patent-pending Thermal-Chemical Extraction Process (“TCEP”) throughput rates compared to last year.”
Financial highlights for the third quarter and the first nine months of 2011 include:
- Consolidated revenue for the quarter increased 128% to $30.3 million compared to the third quarter 2010 revenue of $13.29;
- Consolidated revenue for the first nine months of 2011 was $78.4 million, an 85% increase over the first nine months of 2010;
- Quarterly gross profit increased 148% to $2.03 million relative to Q3 2010;
- Gross profit for the first nine months of the year increased 146% relative to the same period in 2010 to $6.77 million;
- Net income improved to $1.03 million for the quarter representing a 393% increase compared to the third quarter of 2010;
- Net income for the first nine months of 2011 improved to $3.64 million, which represents a 378% increase over the first nine months of 2010;
- Earnings per fully diluted share increased to $0.06, compared with $0.02 per fully diluted share in the third quarter of 2010;
- Earnings per fully diluted share for the first nine months of the year was $0.25 compared to $0.06 per fully diluted share in the first nine months of 2010;
- Overall quarterly sales volumes increased 36% compared to Q3 2010, while volumes for the first nine months of 2011 increased 21% relative to the same period last year.
Mr. Cowart continued, “The third quarter of this year, like the first and second quarters of 2011, illustrated the improvements we’ve made in virtually every area of our business compared to last year. As we continue to aggregate and process greater volumes of product we improve our ability to drive revenue as we strengthen our position within the used oil market.”
Mr. Cowart concluded, “The third quarter of 2011 represents our highest revenue quarter yet. TCEP, which has grown in its contribution to Vertex’s top line over time, continues to run effectively even while we are still implementing improvements to the process. For the remainder of 2011, we expect to continue to exploit our competitive advantage in the combination of used oil aggregation and TCEP operations, while also evaluating potential acquisitions that could enhance our overall competitive positioning within the industry.”
CONFERENCE CALL
As previously announced, Management of Vertex Energy will host a conference call today, Tuesday, November 1, at 11:00 a.m. EDT. Those who wish to participate in the conference call may telephone 877-407-4019 from the U.S.; international callers may telephone 201-689-8337, approximately 15 minutes before.
A digital replay will be available by telephone approximately two hours after the call’s completion, and may be accessed by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers, Acct # 380; Replay ID# 381472.
ABOUT VERTEX ENERGY, INC.
Vertex Energy, Inc. (OTCBB:VTNR) is a leader in the aggregation, re-refining and processing of distressed petroleum streams such as used oil, transmix, fuel oils and off-specification commercial chemical products thereby reducing the United States’ reliance on foreign crude oil. Vertex’s focus, as a participant in the alternative energy and environmentally friendly investment sectors, is on creating increased value in the products it manages and produces through a variety of strategies and technologies that facilitate the re-refining of used oil and off specification commercial chemical products into higher value commodities. By creating higher value products from distressed hydrocarbon streams, the Company is positioned to produce both financial and environmental benefits. Vertex is based in Houston, Texas with offices in Georgia and California. More information on the Company can be found at www.vertexenergy.com.
This press release may contain forward-looking statements, including information about management’s view of Vertex’s future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the “Act”). In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act, and are subject to the safe harbor created by the Act. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of Vertex, its divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are included from time to time in documents Vertex files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on Vertex’s future results. The forward-looking statements included in this press release are made only as of the date hereof. Vertex cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Vertex undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by Vertex.
| VERTEX ENERGY, INC. | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| September 30, | December 31, | |||||
| 2011 | 2010 | |||||
| (UNAUDITED) | ||||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 1,317,177 | $ | 744,313 | ||
| Accounts receivable, net | 5,493,475 | 1,482,510 | ||||
| Accounts receivable- related party | 10,967 | - | ||||
| Inventory | 8,766,030 | 3,901,781 | ||||
| Prepaid expenses | 111,866 | 100,485 | ||||
| Total current assets | 15,699,515 | 6,229,089 | ||||
| Noncurrent assets | ||||||
| Licensing agreement, net | 1,957,967 | 1,833,966 | ||||
| Fixed assets, net | 156,415 | 76,290 | ||||
| Total noncurrent assets | 2,114,382 | 1,910,256 | ||||
| TOTAL ASSETS | $ | 17,813,897 | $ | 8,139,345 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued expenses | $ | 7,465,838 | $ | 4,593,199 | ||
| Accounts payable-related party | 1,093,241 | 407,273 | ||||
| Deposits | 1,080,277 | - | ||||
| Line of Credit | 1,000,000 | - | ||||
| Total current liabilities | 10,639,356 | 5,000,472 | ||||
| Long-term liabilities | ||||||
| Mandatorily redeemable preferred stock, Series B, $.001 par value, 2,000,000 shares authorized, 0 and 600,000 issued and outstanding as of September 30, 2011 and December 31, 2010 (includes $150,000 to a related party) | - | 600,000 | ||||
| Total liabilities | 10,639,356 | 5,600,472 | ||||
| Commitments and contingencies | ||||||
| STOCKHOLDERS’ EQUITY | ||||||
| Preferred stock, $0.001 par value per share: | ||||||
| 50,000,000 shares authorized | ||||||
|
Series A Convertible Preferred stock, $0.001 par value, 5,000,000 authorized and 4,452,167 and 4,675,716 issued and outstanding at September 30, 2011 and December 31, 2010, respectively |
4,452 |
4,676 |
||||
|
Common stock, $0.001 par value per share; 750,000,000 shares authorized; 9,239,398 and 8,370,849 issued and outstanding at September 30, 2011 and December 31, 2010, respectively |
9,239 |
8,371 |
||||
| Additional paid-in capital | 3,275,037 | 2,275,074 | ||||
| Retained earnings | 3,885,813 | 250,752 | ||||
| Total stockholders’ equity | 7,174,541 | 2,538,873 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 17,813,897 | $ | 8,139,345 | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010 | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues | $ | 30,301,326 | $ | 13,288,600 | $ | 78,383,111 | $ | 42,428,741 | ||||||||
| Revenues – related parties | - | 1,828 | 17,978 | 5,578 | ||||||||||||
| 30,301,326 | 13,290,428 | 78,401,089 | 42,434,319 | |||||||||||||
| Cost of revenues | 28,268,785 | 12,471,821 | 71,632,067 | 39,679,178 | ||||||||||||
| Gross profit | 2,032,541 | 818,607 | 6,769,022 | 2,755,141 | ||||||||||||
|
Selling, general and administrative expenses |
997,723 |
667,339 |
3,030,461 |
2,118,708 |
||||||||||||
| Income from operations | 1,034,818 | 151,268 | 3,738,561 | 636,433 | ||||||||||||
| Other income (expense) | ||||||||||||||||
| Other income | - | 89,333 | - | 219,333 | ||||||||||||
| Interest expense | (3,593 | ) | (26,521 | ) | (57,811 | ) | (89,119 | ) | ||||||||
|
Total other income (expense) |
(3,593 | ) | 62,812 | (57,811 | ) | 130,214 | ||||||||||
| Income before income tax | 1,031,225 | 214,080 | 3,680,750 | 766,647 | ||||||||||||
| Income tax expense | (3,000 | ) | (5,500 | ) | (45,689 | ) | (5,500 | ) | ||||||||
| Net income | $ | 1,028,225 | $ | 208,580 | $ | 3,635,061 | $ | 761,147 | ||||||||
| Earnings per common share | ||||||||||||||||
| Basic | $ | 0.11 | $ | 0.03 | $ | 0.42 | $ | 0.09 | ||||||||
| Diluted | $ | 0.06 | $ | 0.02 | $ | 0.25 | $ | 0.06 | ||||||||
|
Shares used in computing earnings per share |
||||||||||||||||
| Basic | 9,187,227 | 8,315,309 | 8,722,642 | 8,276,184 | ||||||||||||
| Diluted | 15,851,393 | 13,581,067 | 14,503,882 |
|
13,540,455 | |||||||||||
| VERTEX ENERGY, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010 | ||||||||
| (UNAUDITED) | ||||||||
| Nine Months Ended | ||||||||
|
September 30, 2011 |
September 30, 2010 |
|||||||
| Cash flows operating activities | ||||||||
| Net income | $ | 3,635,061 | $ | 761,147 | ||||
|
Adjustments to reconcile net income to cash provided by (used in) operating activities |
||||||||
| Stock based compensation expense | 94,358 | 135,923 | ||||||
| Depreciation and amortization | 120,138 | 107,781 | ||||||
| Changes in assets and liabilities | ||||||||
| Accounts receivable | (4,010,965 | ) | (400,132 | ) | ||||
| Accounts receivable- related parties | (10,967 | ) | - | |||||
| Inventory | (4,864,249 | ) | 558,543 | |||||
| Prepaid expenses | (11,381 | ) | 29,253 | |||||
| Accounts payable | 2,872,639 | (1,216,988 | ) | |||||
| Accounts payable-related parties | 685,968 | 39,840 | ||||||
| Other deposits | 1,080,277 | - | ||||||
| Net cash provided by (used in) operating activities | (409,121 | ) | 15,367 | |||||
| Cash flows from investing activities | ||||||||
| Purchase of intangible assets | (232,214 | ) | (260,401 | ) | ||||
| Purchase of fixed assets | (92,051 | ) | (8,653 | ) | ||||
| Net cash used in investing activities | (324,265 | ) | (269,054 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from sale of Series B Preferred “B” stock | - | 600,000 | ||||||
| Proceeds from exercise of common stock warrants | 306,250 | 33 | ||||||
| Line of credit proceeds, net | 1,000,000 | 1,000,000 | ||||||
| Payments on due to related party balance | - | (841,855 | ) | |||||
| Net cash provided by financing activities | 1,306,250 | 758,178 | ||||||
| Net increase in cash and cash equivalents | 572,864 | 504,491 | ||||||
| Cash and cash equivalents at beginning of the period | 744,313 | 514,136 | ||||||
| Cash and cash equivalents at end of period | $ | 1,317,177 | $ | 1,018,627 | ||||
| SUPPLEMENTAL INFORMATION | ||||||||
| Cash paid for interest during the period | $ | 78,505 | $ | 70,719 | ||||
| Cash paid for income taxes during the period | $ | 56,000 | $ | 5,500 | ||||
| NON-CASH TRANSACTIONS | ||||||||
| Conversion of Series A Preferred Stock into common stock | $ | 224 | $ | 55 | ||||
|
Conversion of Series B Preferred Stock into common stock |
$ |
600,000 |
$ |
- |
||||