HOUSTON--(BUSINESS WIRE)--Vertex Energy, Inc. (NASDAQ: VTNR) (“Vertex” or the “Company”), a leading specialty refiner and marketer of high-quality refined products, today announced its financial results for the second quarter ended June 30, 2023.
The Company will host a conference call to discuss second quarter 2023 results today at 8:30 A.M. Eastern Time, details are included at the end of this release.
SECOND QUARTER 2023 HIGHLIGHTS
- Reported net loss attributable to common shareholders of $(81.4) million, or $(1.03) per basic share
- Reported Adjusted EBITDA of $(34.2) million
- Continued safe operation of the Company’s Mobile, Alabama refinery (the “Mobile Refinery”) with second quarter 2023 conventional throughput of 76,330 barrels per day (bpd), above prior guidance
- Renewable diesel (RD) facility repair and start-up successfully completed with targeted Phase I throughput capacity of 8,000 bpd demonstrated during the quarter
- Lower conventional refining margins driven by weakness in market prices for refined fuels and additional costs incurred during RD repair and start-up procedure
- Total cash and cash equivalents of $52.1 million including restricted cash of $3.6 million as of June 30, 2023
Vertex reported second quarter 2023 net loss attributable to common shareholders of $(81.4) million, or $(1.03) per basic share, versus a net loss attributable to common shareholders of $(67.0) million, or $(0.99) per basic share for the second quarter of 2022. Adjusted EBITDA (see “Non-GAAP Financial Measures”, below) was $(34.2) million for the second quarter 2023, compared to Adjusted EBITDA of $71.3 million in the prior-year period. Financial results for the second quarter of 2023 include a non-cash, one-time interest expense in the amount of $63.0 million related to the recent privately negotiated exchange of approximately $79.9 million of Vertex’s Senior Secured 6.25% Convertible Notes Due 2027, which closed on June 12, 2023. Schedules reconciling the Company’s generally accepted accounting principles in the United States (“GAAP”) and non-GAAP financial results, including Adjusted EBITDA are included later in this release (see also “Non-GAAP Financial Measures”, below).
MANAGEMENT COMMENTARY
“During the second quarter, we made considerable progress in developing our broader strategic vision of creating a vertically integrated renewable fuels company,” stated Benjamin P. Cowart, President and CEO of Vertex, who continued, “While short-term profitability on the conventional fuels refining business was negatively impacted by a combination of deterioration in market conditions and the added expense associated with the start-up of our renewable diesel facility, we successfully achieved several important strategic milestones through establishing RD production, accelerating our feedstock strategy, and improving balance sheet efficiency, which we believe will help drive greater long-term shareholder value for the company.”
SEGMENT PERFORMANCE
MOBILE REFINERY OPERATIONS
The Mobile Refinery operations generated a gross profit (loss) of ($6.4) million and $52.7 million of fuel gross margin (a non-GAAP measure) or $7.34 per barrel during the second quarter 2023, versus generating a gross profit of $65.5 million, and fuel gross margin (a non-GAAP measure) of $103.8 million, or $16.17 per barrel of fuel gross margin in the first quarter of 2023. Adjusting for the impact of $3.66 of Renewable Identification Number (RIN) expense per barrel, RIN adjusted fuel gross margin at the Mobile Refinery was $27.3 million, or $3.68 per barrel for the second quarter of 2023, versus $87.7 million, or $13.66 per barrel of RIN adjusted fuel gross margin in the first quarter of 2023. On an adjusted fuel gross margin per barrel basis, including the impact of renewable diesel production, the Mobile Refinery captured 31% of the Gulf Coast 2-1-1 crack spread. Adjusting for the partial production period of renewable diesel and limited revenue contribution during the quarter, the Mobile Refinery generated a conventional only fuel gross margin per barrel of 34%.
The decline in adjusted fuel gross margin per barrel and resulting deterioration in reported capture rate of the benchmark Gulf Coast 2-1-1 crack spread was attributed to a decline in margins for refined products, compounded by approximately $20 million of one-time expenses incurred as a result of the repair and resumed start-up procedures of the Company’s renewable diesel facility during the quarter. The benchmark Gulf Coast 2-1-1 crack spread decreased from $31.59 per barrel in the first quarter of 2023 to $23.60 in the second quarter, while pricing for refined products outside of the benchmark crack spread, such as Jet fuel, which experienced significant pressure during the second quarter of 2023.
Financial results for the Mobile Refinery reported for the second quarter of 2023 reflect the combined contribution of conventional fuels refining operations, as well as the operation of the Company’s renewable diesel facility which began production on May 27th. The partial production period and limited revenue recorded from the renewable diesel facility, compounded by the additional expenses incurred for the repair of feedstock pumping systems, as well as typical one-time start-up expenses, had a disproportionate negative impact on overall refining profitability during the quarter and we believe this does not reflect the state of operating profitability for the facility longer-term.
Total throughput at the Mobile Refinery was 78,820 bpd in the second quarter of 2023, including 76,330 bpd of conventional and 2,490 bpd of renewable throughput, respectively. Total production of finished high-value, light products, such as gasoline, diesel and jet fuel, represented approximately 61% of the total production in the second quarter of 2023, vs. 62% in the first quarter 2023, as anticipated. Changes in the Company’s product yield profile have led to a higher percentage of products not accounted for in the benchmark Gulf Coast 2-1-1 crack spread. Consequently, this has caused the reported capture rate of the benchmark crack spread to vary significantly.
Third Quarter 2023 Mobile Refinery Financial and Operating Results ($/millions unless otherwise noted)
SEGMENT PERFORMANCE
1Q23 |
2Q23 |
2023 YTD |
%Q/Q |
||
Total Throughput (bpd)1 |
71,328 |
78,820 |
75,095 |
11% |
|
Total Production (MMbbl)1 |
6.24 |
7.19 |
13.43 |
15% |
|
Conventional Facility Capacity Utilization2 |
95.1% |
101.8% |
98.5% |
|
|
|
|
|
|
|
|
Total Operating Expense |
$26.5 |
$30.4 |
$55.1 |
15% |
|
|
|
|
|
|
|
Operating Expenses Per Barrel ($/bbl) |
$3.84 |
$4.23 |
$4.05 |
10% |
|
|
|
|
|
|
|
Fuel gross margin |
$103.8 |
$52.7 |
$156.5 |
-49% |
|
|
|
|
|
|
|
RIN expense3 |
$16.1 |
$25.4 |
$41.5 |
58% |
|
|
|
|
|
|
|
RIN Adjusted Fuel Gross Margin |
$87.7 |
$27.3 |
$115.0 |
-69% |
|
|
|
|
|
|
|
Fuel Gross Margin Per Barrel ($/bbl) |
$16.17 |
$7.34 |
$11.51 |
-55% |
|
|
|
|
|
|
|
RIN expense Per Barrel ($/bbl) |
$2.51 |
$3.66 |
$3.05 |
46% |
|
|
|
|
|
|
|
RIN Adjusted Fuel Gross Margin Per Barrel of Throughput |
$13.66 |
$3.68 |
$8.46 |
-73% |
|
|
|
|
|
|
|
Gulf Coast 2-1-1 Crack Spread |
$31.59 |
$23.60 |
$27.59 |
-25% |
|
Capture Rate5 |
53.0% |
33.9% |
39.4% |
-36% |
|
Adjusted Capture Rate |
43.2% |
15.6% |
30.7% |
-64% |
|
|
|
|
|
|
|
Production Yield |
|
|
|
|
|
Gasoline (bpd) |
15,723 |
17,812 |
16,774 |
13% |
|
% Production |
22.7% |
23.2% |
22.6% |
|
|
ULSD (bpd) |
14,720 |
15,618 |
15,171 |
6% |
|
% Production |
21.2% |
20.3% |
20.4% |
|
|
Jet (bpd) |
12,789 |
13,570 |
13,182 |
6% |
|
% Production |
18.4% |
17.7% |
17.8% |
|
|
Other4 |
26,119 |
29,828 |
27,983 |
14% |
|
% Production |
37.7% |
37.7% |
37.7% |
|
|
Renewable diesel |
0 |
2,208 |
1,110 |
0% |
|
% Production |
0.0% |
2.8% |
1.5% |
|
|
Total Production (bpd) |
69,351 |
79,036 |
74,220 |
14% |
|
Total Production (MMbbl) |
6.24 |
7.19 |
13.43 |
15% |
|
|
|
|
|
||
1.) Includes soybean oil throughput of 2,490 bpd and 1.252 MMbbl for 2Q23 and YTD, respectively |
|||||
2.) Assumes 75,000 barrels per day of conventional operational capacity |
|||||
3.) RIN: Renewable identification number |
|||||
4.) Other includes naphtha, intermediates, and LPG |
|||||
5.) Capture rate reflects conventional fuels gross margin only |
|||||
Renewable Diesel Facility
Renewable diesel production facility successfully started following system repairs. Vertex’s previously disclosed failure in the renewable diesel feedstock pumping system was successfully repaired on-time, with facility start-up procedures successfully completed on May 27th. During the quarter, production volumes of renewable diesel were steadily increased to expected Phase 1 target capacity of approximately 8,000 barrels per day.
Feedstock Supply Strategy Advanced. Recent operation and testing of the renewable diesel facility demonstrated stable operations at designed rates with yields at or better than targets. The shorter than anticipated break in period of the renewable diesel facility, combined with deteriorating economics of refined, bleached, deodorized (“RBD”) soybean oil feedstock during the quarter drove an acceleration of the Company’s deployment of its longer-term feedstock optimization strategy. The Company recently introduced Distillers Corn Oil or “DCO” into its feedstock blend last week and has advanced a combination of eight different feedstock blends through its feedstock approval process over the last six weeks.
Balance Sheet and Liquidity Update
As of June 30, 2023, Vertex had total debt outstanding of $327.4 million, including lease obligations of $162.1 million. The Company had total cash and equivalents of $52.1 million including $3.6 million of restricted cash on the balance sheet as of June 30, 2023, for a net debt position of $275.3 million. The ratio of net debt to trailing twelve month Adjusted EBITDA was 3.6 times as of June 30, 2023.
On June 12, 2023, the Company successfully executed the exchange of approximately $79.9 million principal amount of its 6.25% Senior Secured Convertible due 2027 into 17.2 million shares of common stock. The Company currently has $15.2 million of remaining principal outstanding in its 6.25% Senior Secured Convertible notes.
Management Outlook
All guidance presented below is current as of the time of this release and is subject to change. All prior financial guidance should no longer be relied upon.
Third Quarter 2023 Financial and Operating Outlook:
|
3Q 2023 |
||
Operational: |
Low |
High |
|
Mobile Refinery Conventional Throughput Volume (Mbpd) |
74.0 |
77.0 |
|
Capacity Utilization |
99% |
103% |
|
Production Yield Profile |
|
|
|
Finished Products1 |
59% |
63% |
|
Intermediate & Other Products2 |
41% |
37% |
|
|
|
||
Financial Guidance: |
|
|
|
|
|
||
Direct Operating Expense ($/bbl) |
$3.60 |
$3.80 |
|
Capital Expenditures ($/MM) |
$20 |
$25 |
|
|
|
||
1.) Finished products include gasoline, ULSD, and Jet A |
|||
2.) Intermediate & Other products include VGO, LPGs, VTB |
|||
CONFERENCE CALL AND WEBCAST DETAILS
A conference call will be held today, August 9, 2023 at 8:30 A.M. Eastern Time to review the Company’s financial results, discuss recent events and conduct a question-and-answer session. An audio webcast of the conference call and accompanying presentation materials will also be available in the “Events and Presentation” section of Vertex’s website at www.vertexenergy.com. To listen to a live broadcast, visit the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.
To participate in the live teleconference:
Domestic: 1-877-407-0784
International: 1-201-689-8560
To listen to a replay of the teleconference, which will be available through August 15, 2023, either go to the Events and Presentation section of Vertex's website at www.vertexenergy.com, or call the number below:
Domestic Replay: 1-844-512-2921
International: 1-412-317-6671
Access ID: 13739964
ABOUT VERTEX ENERGY
Vertex Energy is a leading energy transition company that specializes in producing both renewable and conventional fuels. Our innovative solutions are designed to enhance the performance of our customers and partners while also prioritizing sustainability, safety, and operational excellence. With a commitment to providing superior products and services, Vertex Energy is dedicated to shaping the future of the energy industry.
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 third quarter of 2023, as discussed above; the need for additional capital in the future, including, but not limited to, in order to complete future capital projects and satisfy liabilities, the Company’s ability to raise such capital in the future, and the terms of such funding; the timing of planned capital projects at the Company’s refinery located in Mobile, Alabama (the “Mobile Refinery”) and the outcome of such projects; the future production of the Mobile Refinery, including but not limited to renewable diesel production; estimated and actual production and costs associated with the renewable diesel capital project; estimated revenues over the course of the agreement with Idemitsu; anticipated and unforeseen events which could reduce future production at the Mobile Refinery or delay planned and future capital projects; changes in commodity and credits values; certain early termination rights associated with third party agreements and conditions precedent to such agreements; certain mandatory redemption provisions of the outstanding senior convertible notes, the conversion rights associated therewith, and dilution caused by conversions and/or the exchanges of convertible notes; the Company’s ability to comply with required covenants under outstanding senior notes and a term loan and pay amounts due under such senior notes and term loan, including interest and other amounts due thereunder; the ability of the Company to retain and hire key personnel; the level of competition in the Company’s industry and its ability to compete; the Company’s ability to respond to changes in its industry; the loss of key personnel or failure to attract, integrate and retain additional personnel; the Company’s ability to protect intellectual property and not infringe on others’ intellectual property; the Company’s ability to scale its business; the Company’s ability to maintain supplier relationships and obtain adequate supplies of feedstocks; the Company’s ability to obtain and retain customers; the Company’s ability to produce products at competitive rates; the Company’s ability to execute its business strategy in a very competitive environment; trends in, and the market for, the price of oil and gas and alternative energy sources; the impact of inflation on margins and costs; the volatile nature of the prices for oil and gas caused by supply and demand, including volatility caused by the ongoing Ukraine/Russia conflict, increased interest rates, recessions and increased inflation; the Company’s ability to maintain relationships with partners; the outcome of pending and potential future litigation, judgments and settlements; rules and regulations making the Company’s operations more costly or restrictive; volatility in the market price of compliance credits (primarily Renewable Identification Numbers (RINs) needed to comply with the Renewable Fuel Standard (“RFS”)) under renewable and low-carbon fuel programs and emission credits needed under other environmental emissions programs, the requirement for the Company to purchase RINs in the secondary market to the extent it does not generate sufficient RINs internally, liabilities associated therewith and the timing, funding and costs of such required purchases, if any; changes in environmental and other laws and regulations and risks associated with such laws and regulations; economic downturns both in the United States and globally, increases in inflation and interest rates, increased costs of borrowing associated therewith and potential declines in the availability of such funding; risk of increased regulation of the Company’s operations and products; disruptions in the infrastructure that the Company and its partners rely on; interruptions at the Company’s facilities; unexpected and expected changes in the Company’s anticipated capital expenditures resulting from unforeseen and expected required maintenance, repairs, or upgrades; the Company’s ability to acquire and construct new facilities; the Company’s ability to effectively manage growth; decreases in global demand for, and the price of, oil, due to inflation, recessions or other reasons, including declines in economic activity or global conflicts; expected and unexpected downtime at the Company’s facilities; the Company’s level of indebtedness, which could affect its ability to fulfill its obligations, impede the implementation of its strategy, and expose the Company’s interest rate risk; dependence on third party transportation services and pipelines; risks related to obtaining required crude oil supplies, and the costs of such supplies; counterparty credit and performance risk; unanticipated problems at, or downtime effecting, the Company’s facilities and those operated by third parties; risks relating to the Company’s hedging activities or lack of hedging activities; and risks relating to planned and future divestitures, asset sales, joint ventures and acquisitions.
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 December 31, 2022, and the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, and future Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. These reports are available at www.sec.gov. The Company cautions that the foregoing list of important factors is not complete. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on behalf of the Company are expressly qualified in their entirety by the cautionary statements referenced above. 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 takes no obligation to update or correct information prepared by third parties that are not paid for by Vertex. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
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
In addition to our results calculated under generally accepted accounting principles in the United States (“GAAP”), in this news release we also present Adjusted EBITDA, Adjusted Gross Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of Throughput, Operating Expenses Per Barrel of Throughput, RIN Adjusted Fuel Gross Margin, RIN Adjusted Fuel Gross Margin Per Barrel of Throughput, Net Long-Term Debt and Ratio of Net Long-Term Debt (collectively, the “Non-GAAP Financial Measures”) The Non-GAAP Financial Measures are “non-GAAP financial measures” presented as supplemental measures of the Company’s performance. They are not presented in accordance with GAAP. EBITDA represents net income before interest, taxes, depreciation and amortization, for continued and discontinued operations. Adjusted EBITDA represents net income (loss) from operations plus unrealized gain or losses on hedging activities, Renewable Fuel Standard (RFS) costs (mainly related to Renewable Identification Numbers (RINs), and inventory adjustments, depreciation and amortization, acquisition costs, gain on change in value of derivative warrant liability, environmental clean-up, stock-based compensation, (gain) loss on sale of assets, interest expense, and certain other unusual or non-recurring charges included in selling, general, and administrative expenses. Adjusted Gross Margin is defined as gross profit (loss) plus unrealized gain or losses on hedging activities and inventory valuation adjustments. Fuel Gross Margin is defined as Adjusted Gross Margin, plus production costs, operating expenses and depreciation attributable to cost of revenues and other non-fuel items included in costs of revenues including realized and unrealized gain or losses on hedging activities, RFS costs (mainly related to RINs), inventory valuation adjustments, fuel financing costs and other revenues and cost of sales items. Fuel Gross Margin Per Barrel of Throughput is calculated as fuel gross margin divided by total throughput barrels for the period presented. Operating Expenses Per Barrel of Throughput is defined as total operating expenses divided by total barrels of throughput. RIN Adjusted Fuel Gross Margin is defined as [Fuel Gross Margin minus RIN expense divided by total barrels of throughput. RIN Adjusted Fuel Gross Margin Per Barrel of Throughput is calculated as RIN Adjusted Fuel Gross Margin divided by total throughput barrels for the period presented. Net Long-Term Debt is long-term debt and lease obligations, adjusted for unamortized discount and deferred financing costs, insurance premiums financed, less cash and cash equivalents and restricted cash. Ratio of Net Long-Term Debt is defined as Long-Term Debt divided by Adjusted EBITDA.
The Non-GAAP Financial Measures are presented because we believe they provide additional useful information to investors due to the various noncash items during the period. We believe that the Non-GAAP Financial Measures are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We use the Non-GAAP Financial Measures as supplements to GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, to allocate resources and to compare our performance relative to our peers. Additionally, these measures, when used in conjunction with related GAAP financial measures, provide investors with an additional financial analytical framework which management uses, in addition to historical operating results, as the basis for financial, operational and planning decisions and present measurements that third parties have indicated are useful in assessing the Company and its results of operations. The Non-GAAP Financial Measures are unaudited, and have limitations as analytical tools, and you should not consider them in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are: the Non-GAAP Financial Measures do not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments; the Non-GAAP Financial Measures do not reflect changes in, or cash requirements for, capital expenditures or working capital needs; the Non-GAAP Financial Measures do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debt or cash income tax payments; although depreciation and amortization are noncash charges, the assets being depreciated and amortized will often have to be replaced in the future, the Non-GAAP Financial Measures do not reflect any cash requirements for such replacements; Adjusted EBITDA, Adjusted Gross Margin, Fuel Gross Margin and RIN Adjusted Fuel Gross Margin represent only a portion of our total operating results; and other companies in this industry may calculate the Non-GAAP Financial Measures differently than we do, limiting their usefulness as a comparative measure. The Company’s presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. We compensate for these limitations by providing a reconciliation of each of these non-GAAP measures to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure. For more information on these non-GAAP financial measures, 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, Operating Expenses Per Barrel of Throughput, RIN Adjusted Fuel Gross Margin and RIN Adjusted Fuel Gross Margin 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 Ratio of Net Debt”, at the end of this release.
VERTEX ENERGY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except number of shares and par value)
(UNAUDITED)
|
June 30,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
48,532 |
|
|
$ |
141,258 |
|
Restricted cash |
|
3,603 |
|
|
|
4,929 |
|
Accounts receivable, net |
|
50,995 |
|
|
|
34,548 |
|
Inventory |
|
215,672 |
|
|
|
135,473 |
|
Prepaid expenses and other current assets |
|
52,929 |
|
|
|
36,660 |
|
Assets held for sale, current |
|
— |
|
|
|
20,560 |
|
Total current assets |
|
371,731 |
|
|
|
373,428 |
|
|
|
|
|
||||
Fixed assets, net |
|
298,112 |
|
|
|
201,749 |
|
Finance lease right-of-use assets |
|
66,301 |
|
|
|
44,081 |
|
Operating lease right-of use assets |
|
92,502 |
|
|
|
53,557 |
|
Intangible assets, net |
|
12,241 |
|
|
|
11,827 |
|
Deferred taxes assets |
|
10,975 |
|
|
|
2,498 |
|
Other assets |
|
3,338 |
|
|
|
2,245 |
|
TOTAL ASSETS |
$ |
855,200 |
|
|
$ |
689,385 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
41,373 |
|
|
$ |
20,997 |
|
Accrued expenses |
|
87,642 |
|
|
|
81,711 |
|
Finance lease liability-current |
|
2,320 |
|
|
|
1,363 |
|
Operating lease liability-current |
|
25,588 |
|
|
|
9,012 |
|
Current portion of long-term debt, net |
|
18,245 |
|
|
|
13,911 |
|
Obligations under inventory financing agreements, net |
|
162,096 |
|
|
|
117,939 |
|
Derivative commodity liability |
|
3,357 |
|
|
|
242 |
|
Liabilities held for sale, current |
|
— |
|
|
|
3,424 |
|
Total current liabilities |
|
340,621 |
|
|
|
248,599 |
|
|
|
|
|
||||
Long-term debt, net |
|
123,653 |
|
|
|
170,010 |
|
Finance lease liability-long-term |
|
67,290 |
|
|
|
45,164 |
|
Operating lease liability-long-term |
|
66,914 |
|
|
|
44,545 |
|
Deferred tax liabilities |
|
— |
|
|
|
— |
|
Derivative warrant liability |
|
13,855 |
|
|
|
14,270 |
|
Other liabilities |
|
1,377 |
|
|
|
1,377 |
|
Total liabilities |
|
613,710 |
|
|
|
523,965 |
|
|
|
|
|
||||
COMMITMENTS AND CONTINGENCIES (Note 4) |
|
— |
|
|
|
— |
|
|
|
|
|
||||
STOCKHOLDERS' EQUITY |
|
|
|
||||
|
|
|
|
||||
Common stock, $0.001 par value per share; 750,000,000 shares authorized; 93,236,563 and 75,668,826 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively. |
|
93 |
|
|
|
76 |
|
Additional paid-in capital |
|
381,776 |
|
|
|
279,552 |
|
Accumulated deficit |
|
(143,431 |
) |
|
|
(115,893 |
) |
Total Vertex Energy, Inc. stockholders' equity |
|
238,438 |
|
|
|
163,735 |
|
Non-controlling interest |
|
3,052 |
|
|
|
1,685 |
|
Total equity |
|
241,490 |
|
|
|
165,420 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
855,200 |
|
|
$ |
689,385 |
|
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(UNAUDITED)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
|
$ |
734,893 |
|
|
$ |
1,029,369 |
|
|
$ |
1,426,035 |
|
|
$ |
1,103,906 |
|
Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
|
729,649 |
|
|
|
1,007,143 |
|
|
|
1,349,001 |
|
|
|
1,068,133 |
|
Depreciation and amortization attributable to costs of revenues |
|
|
6,630 |
|
|
|
4,063 |
|
|
|
10,967 |
|
|
|
5,090 |
|
Gross profit (loss) |
|
|
(1,386 |
) |
|
|
18,163 |
|
|
|
66,067 |
|
|
|
30,683 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses (exclusive of depreciation and amortization shown separately below) |
|
|
42,636 |
|
|
|
40,748 |
|
|
|
84,578 |
|
|
|
52,897 |
|
Depreciation and amortization attributable to operating expenses |
|
|
1,028 |
|
|
|
1,127 |
|
|
|
2,044 |
|
|
|
1,536 |
|
Total operating expenses |
|
|
43,664 |
|
|
|
41,875 |
|
|
|
86,622 |
|
|
|
54,433 |
|
Loss from operations |
|
|
(45,050 |
) |
|
|
(23,712 |
) |
|
|
(20,555 |
) |
|
|
(23,750 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
||||||||
Other income (loss) |
|
|
(496 |
) |
|
|
171 |
|
|
|
1,156 |
|
|
|
643 |
|
Gain (loss) on change in value of derivative warrant liability |
|
|
9,600 |
|
|
|
(945 |
) |
|
|
415 |
|
|
|
(4,524 |
) |
Interest expense |
|
|
(77,536 |
) |
|
|
(47,712 |
) |
|
|
(90,013 |
) |
|
|
(51,933 |
) |
Total other expense |
|
|
(68,432 |
) |
|
|
(48,486 |
) |
|
|
(88,442 |
) |
|
|
(55,814 |
) |
Loss from continuing operations before income tax |
|
|
(113,482 |
) |
|
|
(72,198 |
) |
|
|
(108,997 |
) |
|
|
(79,564 |
) |
Income tax benefit (expense) |
|
|
28,688 |
|
|
|
— |
|
|
|
27,676 |
|
|
|
— |
|
Loss from continuing operations |
|
|
(84,794 |
) |
|
|
(72,198 |
) |
|
|
(81,321 |
) |
|
|
(79,564 |
) |
Income from discontinued operations, net of tax (see note 23) |
|
|
3,340 |
|
|
|
8,416 |
|
|
|
53,680 |
|
|
|
14,973 |
|
Net loss |
|
|
(81,454 |
) |
|
|
(63,782 |
) |
|
|
(27,641 |
) |
|
|
(64,591 |
) |
Net income (loss) attributable to non-controlling interest and redeemable non-controlling interest from continuing operations |
|
|
(53 |
) |
|
|
137 |
|
|
|
(103 |
) |
|
|
64 |
|
Net income attributable to non-controlling interest and redeemable non-controlling interest from discontinued operations |
|
|
— |
|
|
|
3,050 |
|
|
|
— |
|
|
|
6,862 |
|
Net loss attributable to Vertex Energy, Inc. |
|
|
(81,401 |
) |
|
|
(66,969 |
) |
|
|
(27,538 |
) |
|
|
(71,517 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Accretion of redeemable noncontrolling interest to redemption value from continued operations |
|
|
— |
|
|
|
(7 |
) |
|
|
— |
|
|
|
(428 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net loss attributable to common stockholders from continuing operations |
|
|
(84,741 |
) |
|
|
(72,342 |
) |
|
|
(81,218 |
) |
|
|
(80,056 |
) |
Net income attributable to common stockholders from discontinued operations, net of tax |
|
|
3,340 |
|
|
|
5,366 |
|
|
|
53,680 |
|
|
|
8,111 |
|
Net loss attributable to common shareholders |
|
$ |
(81,401 |
) |
|
$ |
(66,976 |
) |
|
$ |
(27,538 |
) |
|
$ |
(71,945 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Basic loss per common share |
|
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
$ |
(1.07 |
) |
|
$ |
(1.07 |
) |
|
$ |
(1.05 |
) |
|
$ |
(1.22 |
) |
Discontinued operations, net of tax |
|
|
0.04 |
|
|
|
0.08 |
|
|
|
0.69 |
|
|
|
0.12 |
|
Basic loss per common share |
|
$ |
(1.03 |
) |
|
$ |
(0.99 |
) |
|
$ |
(0.36 |
) |
|
$ |
(1.10 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Shares used in computing earnings per share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
79,519 |
|
|
|
67,923 |
|
|
|
77,615 |
|
|
|
65,660 |
|
Diluted |
|
|
79,519 |
|
|
|
67,923 |
|
|
|
77,615 |
|
|
|
65,660 |
|
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands, except par value)
(UNAUDITED)
Six Months Ended June 30, 2023 |
||||||||||||||||||||||||
|
Common Stock |
|
Series A Preferred |
|
|
|
|
|
|
|
|
|||||||||||||
|
Shares |
|
$0.001 Par |
|
Shares |
|
$0.001 Par |
|
Additional Paid-In Capital |
|
Retained Earnings |
|
Non-controlling Interest |
|
Total Equity |
|||||||||
Balance on January 1, 2023 |
75,669 |
|
$ |
76 |
|
— |
|
$ |
— |
|
$ |
279,552 |
|
$ |
(115,893 |
) |
|
$ |
1,685 |
|
|
$ |
165,420 |
|
Exercise of options |
166 |
|
|
— |
|
— |
|
|
— |
|
|
209 |
|
|
— |
|
|
|
— |
|
|
|
209 |
|
Stock based compensation expense |
— |
|
|
— |
|
— |
|
|
— |
|
|
365 |
|
|
— |
|
|
|
— |
|
|
|
365 |
|
Non-controlling shareholder contribution |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
980 |
|
|
|
980 |
|
Net income (loss) |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
53,863 |
|
|
|
(50 |
) |
|
|
53,813 |
|
Balance on March 31, 2023 |
75,835 |
|
|
76 |
|
— |
|
|
— |
|
|
280,126 |
|
|
(62,030 |
) |
|
|
2,615 |
|
|
|
220,787 |
|
Exercise of options |
195 |
|
|
— |
|
— |
|
|
— |
|
|
169 |
|
|
— |
|
|
|
— |
|
|
|
169 |
|
Stock based compensation expense |
— |
|
|
— |
|
— |
|
|
— |
|
|
368 |
|
|
— |
|
|
|
— |
|
|
|
368 |
|
Senior Note Converted |
17,207 |
|
|
17 |
|
— |
|
|
— |
|
|
101,113 |
|
|
— |
|
|
|
— |
|
|
|
101,130 |
|
Non-controlling shareholder contribution |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
490 |
|
|
|
490 |
|
Net loss |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
(81,401 |
) |
|
|
(53 |
) |
|
|
(81,454 |
) |
Balance on June 30, 2023 |
93,237 |
|
$ |
93 |
|
— |
|
$ |
— |
|
$ |
381,776 |
|
$ |
(143,431 |
) |
|
$ |
3,052 |
|
|
$ |
241,490 |
|
Six Months Ended June 30, 2022 |
||||||||||||||||||||||||||
|
Common Stock |
|
Series A Preferred |
|
|
|
|
|
|
|
|
|||||||||||||||
|
Shares |
|
$0.001 Par |
|
Shares |
|
$0.001 Par |
|
Additional Paid-In Capital |
|
Retained Earnings |
|
Non-controlling Interest |
|
Total Equity |
|||||||||||
Balance on January 1, 2022 |
63,288 |
|
$ |
63 |
|
386 |
|
|
$ |
— |
|
$ |
138,620 |
|
|
$ |
(110,614 |
) |
|
$ |
1,997 |
|
|
$ |
30,066 |
|
Exercise of options |
60 |
|
|
— |
|
— |
|
|
|
— |
|
|
76 |
|
|
|
— |
|
|
|
— |
|
|
|
76 |
|
Exercise of warrants |
1,113 |
|
|
1 |
|
— |
|
|
|
— |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock based compensation expense |
— |
|
|
— |
|
— |
|
|
|
— |
|
|
250 |
|
|
|
— |
|
|
|
— |
|
|
|
250 |
|
Conversion of Series A Preferred stock to common |
5 |
|
|
— |
|
(5 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Equity component of the convertible note issuance, net |
— |
|
|
— |
|
— |
|
|
|
— |
|
|
78,789 |
|
|
|
— |
|
|
|
— |
|
|
|
78,789 |
|
Accretion of redeemable non-controlling interest to redemption value |
— |
|
|
— |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(422 |
) |
|
|
— |
|
|
|
(422 |
) |
Net income (loss) |
— |
|
|
— |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(4,547 |
) |
|
|
3,739 |
|
|
|
(808 |
) |
Less: amount attributable to redeemable non-controlling interest |
— |
|
|
— |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(3,769 |
) |
|
|
(3,769 |
) |
Balance on March 31, 2022 |
64,466 |
|
|
64 |
|
381 |
|
|
|
— |
|
|
217,734 |
|
|
|
(115,583 |
) |
|
|
1,967 |
|
|
|
104,182 |
|
Exercise of options to common |
498 |
|
|
1 |
|
— |
|
|
|
— |
|
|
553 |
|
|
|
— |
|
|
|
— |
|
|
|
554 |
|
Exercise of options to common- unissued |
— |
|
|
— |
|
— |
|
|
|
— |
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
Distribution to non-controlling shareholder |
— |
|
|
— |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(380 |
) |
|
|
(380 |
) |
Adjustment of redeemable non-controlling interest |
— |
|
|
— |
|
— |
|
|
|
— |
|
|
29 |
|
|
|
(29 |
) |
|
|
— |
|
|
|
— |
|
Conversion of Convertible Senior Notes to common |
10,164 |
|
|
10 |
|
— |
|
|
|
— |
|
|
59,812 |
|
|
|
— |
|
|
|
— |
|
|
|
59,822 |
|
Share based compensation expense |
— |
|
|
— |
|
— |
|
|
|
— |
|
|
324 |
|
|
|
— |
|
|
|
— |
|
|
|
324 |
|
Conversion of Series A Preferred stock to common |
381 |
|
|
1 |
|
(381 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Accretion of redeemable non-controlling interest to redemption value |
— |
|
|
— |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
|
|
(6 |
) |
Net income (loss) |
— |
|
|
— |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(66,970 |
) |
|
|
3,188 |
|
|
|
(63,782 |
) |
Less: amount attributable to redeemable non-controlling interest |
— |
|
|
— |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(3,023 |
) |
|
|
(3,023 |
) |
Balance on June 30, 2022 |
75,509 |
|
$ |
76 |
|
— |
|
|
$ |
— |
|
$ |
278,455 |
|
|
$ |
(182,588 |
) |
|
$ |
1,752 |
|
|
$ |
97,695 |
|
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
(UNAUDITED) |
Six Months Ended June 30, |
||||||
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(27,641 |
) |
|
$ |
(64,591 |
) |
Income from discontinued operations, net of tax |
|
53,680 |
|
|
|
14,973 |
|
Loss from continuing operations |
|
(81,321 |
) |
|
|
(79,564 |
) |
Adjustments to reconcile net loss from continuing operations to cash used in operating activities |
|
|
|
||||
Stock based compensation expense |
|
733 |
|
|
|
574 |
|
Depreciation and amortization |
|
13,011 |
|
|
|
6,626 |
|
Deferred income tax benefit |
|
(27,676 |
) |
|
|
— |
|
Gain on sale of assets |
|
(2 |
) |
|
|
(83 |
) |
Provision for environment clean up |
|
— |
|
|
|
1,429 |
|
Increase in allowance for bad debt |
|
93 |
|
|
|
432 |
|
(Decrease) increase in fair value of derivative warrant liability |
|
(415 |
) |
|
|
4,524 |
|
Loss on commodity derivative contracts |
|
2,123 |
|
|
|
98,274 |
|
Net cash settlements on commodity derivatives |
|
1,269 |
|
|
|
(70,951 |
) |
Amortization of debt discount and deferred costs |
|
70,948 |
|
|
|
40,001 |
|
Changes in operating assets and liabilities |
|
|
|
||||
Accounts receivable and other receivables |
|
(18,589 |
) |
|
|
(89,207 |
) |
Inventory |
|
(80,199 |
) |
|
|
(65,679 |
) |
Prepaid expenses and other current assets |
|
(16,546 |
) |
|
|
(18,613 |
) |
Accounts payable |
|
20,376 |
|
|
|
44,561 |
|
Accrued expenses |
|
5,932 |
|
|
|
27,171 |
|
Other assets |
|
(1,090 |
) |
|
|
29 |
|
Net cash used in operating activities from continuing operations |
|
(111,353 |
) |
|
|
(100,476 |
) |
Cash flows from investing activities |
|
|
|
||||
Purchase of intangible assets |
|
(2,500 |
) |
|
|
(106 |
) |
Investment in Mobile Refinery assets |
|
— |
|
|
|
(227,525 |
) |
Purchase of fixed assets |
|
(105,344 |
) |
|
|
(2,150 |
) |
Proceeds from sale of discontinued operation |
|
92,034 |
|
|
|
— |
|
Proceeds from sale of fixed assets |
|
5 |
|
|
|
157 |
|
Net cash used in investing activities from continuing operations |
|
(15,805 |
) |
|
|
(229,624 |
) |
Cash flows from financing activities |
|
|
|
||||
Payments on finance leases |
|
(908 |
) |
|
|
(402 |
) |
Proceeds from exercise of options and warrants to common stock |
|
378 |
|
|
|
633 |
|
Distributions to noncontrolling interest |
|
— |
|
|
|
(380 |
) |
Contributions received from noncontrolling interest |
|
1,470 |
|
|
|
— |
|
Net change on inventory financing agreements |
|
43,657 |
|
|
|
172,607 |
|
Redemption of noncontrolling interest |
|
— |
|
|
|
(50,666 |
) |
Proceeds from note payable |
|
13,081 |
|
|
|
165,718 |
|
Payments on note payable |
|
(24,422 |
) |
|
|
(7,716 |
) |
Net cash provided by financing activities from continuing operations |
|
33,256 |
|
|
|
279,794 |
|
|
|
|
|
||||
Discontinued operations: |
|
|
|
||||
Net cash provided by (used in) operating activities |
|
(150 |
) |
|
|
12,476 |
|
Net cash used in investing activities |
|
— |
|
|
|
(783 |
) |
Net cash provided by (used in) discontinued operations |
|
(150 |
) |
|
|
11,693 |
|
|
|
|
|
||||
Net decrease in cash, cash equivalents and restricted cash |
|
(94,052 |
) |
|
|
(38,613 |
) |
Cash, cash equivalents, and restricted cash at beginning of the period |
|
146,187 |
|
|
|
136,627 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
52,135 |
|
|
$ |
98,014 |
|
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(UNAUDITED)
(Continued)
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).
|
Six Months Ended |
||||
|
June 30,
|
|
June 30,
|
||
|
|
|
|
||
Cash and cash equivalents |
$ |
48,532 |
|
$ |
97,914 |
Restricted cash |
|
3,603 |
|
|
100 |
Cash and cash equivalents and restricted cash as shown in the consolidated statements of cash flows |
$ |
52,135 |
|
$ |
98,014 |
|
|
|
|
||
SUPPLEMENTAL INFORMATION |
|
|
|
||
Cash paid for interest |
$ |
24,755 |
|
$ |
51,950 |
Cash paid for taxes |
$ |
— |
|
$ |
— |
|
|
|
|
||
NON-CASH INVESTING AND FINANCING TRANSACTIONS |
|
|
|
||
Equity component of the convertible note issuance |
$ |
— |
|
$ |
78,789 |
ROU assets obtained from new finance lease obligation |
$ |
23,990 |
|
$ |
45,096 |
Exchange of Convertible Senior Notes to common stock |
$ |
79,948 |
|
$ |
59,822 |
ROU assets obtained from new operating lease obligation |
$ |
38,945 |
|
$ |
— |
Accretion of redeemable non-controlling interest to redemption value |
$ |
— |
|
$ |
428 |
Unaudited segment information for the three and six months ended June 30, 2023 and 2022 is as follows (in thousands):
Three Months Ended June 30, 2023 |
||||||||||||||||
|
|
Refining & Marketing |
|
Black Oil & Recovery |
|
Corporate and Eliminations |
|
Total |
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Refined products |
|
$ |
492,109 |
|
|
$ |
21,797 |
|
|
$ |
149 |
|
|
$ |
514,055 |
|
Re-refined products |
|
|
215,508 |
|
|
|
3,536 |
|
|
|
(2,560 |
) |
|
|
216,484 |
|
Services |
|
|
3,802 |
|
|
|
552 |
|
|
|
— |
|
|
|
4,354 |
|
Total revenues |
|
|
711,419 |
|
|
|
25,885 |
|
|
|
(2,411 |
) |
|
|
734,893 |
|
Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
|
710,958 |
|
|
|
23,263 |
|
|
|
(4,572 |
) |
|
|
729,649 |
|
Depreciation and amortization attributable to costs of revenues |
|
|
5,568 |
|
|
|
1,062 |
|
|
|
— |
|
|
|
6,630 |
|
Gross profit (loss) |
|
|
(5,107 |
) |
|
|
1,560 |
|
|
|
2,161 |
|
|
|
(1,386 |
) |
Selling, general and administrative expenses |
|
|
32,969 |
|
|
|
4,504 |
|
|
|
5,163 |
|
|
|
42,636 |
|
Depreciation and amortization attributable to operating expenses |
|
|
822 |
|
|
|
38 |
|
|
|
168 |
|
|
|
1,028 |
|
Loss from operations |
|
$ |
(38,898 |
) |
|
$ |
(2,982 |
) |
|
$ |
(3,170 |
) |
|
$ |
(45,050 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
$ |
27,762 |
|
|
$ |
2,827 |
|
|
$ |
— |
|
|
$ |
30,589 |
|
Three Months Ended June 30, 2022 |
|||||||||||||||
|
|
Refining & Marketing |
|
Black Oil & Recovery |
|
Corporate and Eliminations |
|
Total |
|||||||
Revenues: |
|
|
|
|
|
|
|
|
|||||||
Refined products |
|
$ |
719,607 |
|
|
$ |
56,520 |
|
$ |
— |
|
|
$ |
776,127 |
|
Re-refined products |
|
|
244,476 |
|
|
|
5,956 |
|
|
— |
|
|
|
250,432 |
|
Services |
|
|
2,307 |
|
|
|
503 |
|
|
— |
|
|
|
2,810 |
|
Total revenues |
|
|
966,390 |
|
|
|
62,979 |
|
|
— |
|
|
|
1,029,369 |
|
Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
|
959,684 |
|
|
|
47,459 |
|
|
— |
|
|
|
1,007,143 |
|
Depreciation and amortization attributable to costs of revenues |
|
|
3,105 |
|
|
|
958 |
|
|
— |
|
|
|
4,063 |
|
Gross profit |
|
|
3,601 |
|
|
|
14,562 |
|
|
— |
|
|
|
18,163 |
|
Selling, general and administrative expenses |
|
|
23,679 |
|
|
|
4,199 |
|
|
12,870 |
|
|
|
40,748 |
|
Depreciation and amortization attributable to operating expenses |
|
|
829 |
|
|
|
46 |
|
|
252 |
|
|
|
1,127 |
|
Income (loss) from operations |
|
$ |
(20,907 |
) |
|
$ |
10,317 |
|
$ |
(13,122 |
) |
|
$ |
(23,712 |
) |
|
|
|
|
|
|
|
|
|
|||||||
Capital expenditures |
|
$ |
1,568 |
|
|
$ |
194 |
|
$ |
— |
|
|
$ |
1,762 |
|
Six Months Ended June 30, 2023 |
|||||||||||||||
|
|
Refining & Marketing |
|
Black Oil & Recovery |
|
Corporate and Eliminations |
|
Total |
|||||||
Revenues: |
|
|
|
|
|
|
|
|
|||||||
Refined products |
|
$ |
964,661 |
|
$ |
51,220 |
|
|
$ |
(570 |
) |
|
$ |
1,015,311 |
|
Re-refined products |
|
|
400,352 |
|
|
7,947 |
|
|
|
(4,573 |
) |
|
|
403,726 |
|
Services |
|
|
5,734 |
|
|
1,264 |
|
|
|
— |
|
|
|
6,998 |
|
Total revenues |
|
|
1,370,747 |
|
|
60,431 |
|
|
|
(5,143 |
) |
|
|
1,426,035 |
|
Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
|
1,300,770 |
|
|
53,681 |
|
|
|
(5,450 |
) |
|
|
1,349,001 |
|
Depreciation and amortization attributable to costs of revenues |
|
|
8,862 |
|
|
2,105 |
|
|
|
— |
|
|
|
10,967 |
|
Gross profit |
|
|
61,115 |
|
|
4,645 |
|
|
|
307 |
|
|
|
66,067 |
|
Selling, general and administrative expenses |
|
|
59,455 |
|
|
9,303 |
|
|
|
15,820 |
|
|
|
84,578 |
|
Depreciation and amortization attributable to operating expenses |
|
|
1,630 |
|
|
76 |
|
|
|
338 |
|
|
|
2,044 |
|
Income (loss) from operations |
|
$ |
30 |
|
$ |
(4,734 |
) |
|
$ |
(15,851 |
) |
|
$ |
(20,555 |
) |
|
|
|
|
|
|
|
|
|
|||||||
Capital expenditures |
|
$ |
97,670 |
|
$ |
7,674 |
|
|
$ |
— |
|
|
$ |
105,344 |
|
Six Months Ended June 30, 2022 |
|||||||||||||||
|
|
Refining & Marketing |
|
Black Oil & Recovery |
|
Corporate and Eliminations |
|
Total |
|||||||
Revenues: |
|
|
|
|
|
|
|
|
|||||||
Refined products |
|
$ |
749,063 |
|
|
$ |
91,471 |
|
$ |
— |
|
|
$ |
840,534 |
|
Re-refined products |
|
|
249,739 |
|
|
|
10,272 |
|
|
— |
|
|
|
260,011 |
|
Services |
|
|
2,307 |
|
|
|
1,054 |
|
|
— |
|
|
|
3,361 |
|
Total revenues |
|
|
1,001,109 |
|
|
|
102,797 |
|
|
— |
|
|
|
1,103,906 |
|
Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
|
992,770 |
|
|
|
75,363 |
|
|
— |
|
|
|
1,068,133 |
|
Depreciation and amortization attributable to costs of revenues |
|
|
3,228 |
|
|
|
1,862 |
|
|
— |
|
|
|
5,090 |
|
Gross profit |
|
|
5,111 |
|
|
|
25,572 |
|
|
— |
|
|
|
30,683 |
|
Selling, general and administrative expenses |
|
|
24,804 |
|
|
|
8,322 |
|
|
19,771 |
|
|
|
52,897 |
|
Depreciation and amortization attributable to operating expenses |
|
|
934 |
|
|
|
104 |
|
|
498 |
|
|
|
1,536 |
|
Income (loss) from operations |
|
$ |
(20,627 |
) |
|
$ |
17,146 |
|
$ |
(20,269 |
) |
|
$ |
(23,750 |
) |
|
|
|
|
|
|
|
|
|
|||||||
Capital expenditures |
|
$ |
1,956 |
|
|
$ |
194 |
|
$ |
— |
|
|
$ |
2,150 |
|
The following summarized unaudited financial information has been segregated from continuing operations and reported as discontinued operations for the three and six months ended June 30, 2023, and 2022 (in thousands):
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
$ |
— |
|
$ |
23,832 |
|
|
$ |
7,366 |
|
|
$ |
42,759 |
|
Cost of revenues (exclusive of depreciation shown separately below) |
|
— |
|
|
12,735 |
|
|
|
4,589 |
|
|
|
22,918 |
|
Depreciation and amortization attributable to costs of revenues |
|
— |
|
|
391 |
|
|
|
124 |
|
|
|
782 |
|
Gross profit |
|
— |
|
|
10,706 |
|
|
|
2,653 |
|
|
|
19,059 |
|
Operating expenses: |
|
|
|
|
|
|
|
|||||||
Selling, general and administrative expenses (exclusive of depreciation shown separately below) |
|
— |
|
|
2,220 |
|
|
|
632 |
|
|
|
3,938 |
|
Depreciation and amortization expense attributable to operating expenses |
|
— |
|
|
62 |
|
|
|
21 |
|
|
|
125 |
|
Total operating expenses |
|
— |
|
|
2,282 |
|
|
|
653 |
|
|
|
4,063 |
|
Income from operations |
|
— |
|
|
8,424 |
|
|
|
2,000 |
|
|
|
14,996 |
|
Other income (expense) |
|
|
|
|
|
|
|
|||||||
Interest expense |
|
— |
|
|
(8 |
) |
|
|
— |
|
|
|
(23 |
) |
Total other expense |
|
— |
|
|
(8 |
) |
|
|
— |
|
|
|
(23 |
) |
Income before income tax |
|
— |
|
|
8,416 |
|
|
|
2,000 |
|
|
|
14,973 |
|
Income tax expense |
|
— |
|
|
— |
|
|
|
(528 |
) |
|
|
— |
|
Gain on sale of discontinued operations, net of $1,453 and $18,671 of tax for three and six months ended June 30, 2023 |
|
3,340 |
|
|
— |
|
|
|
52,208 |
|
|
|
— |
|
Income from discontinued operations, net of tax |
$ |
3,340 |
|
$ |
8,416 |
|
|
$ |
53,680 |
|
|
$ |
14,973 |
|
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, Operating Expenses Per Barrel of Throughput, RIN Adjusted Fuel Gross Margin and RIN Adjusted Fuel Gross Margin Per Barrel of Throughput
| Three Months Ended March 31, 2023 | |||
| In thousands | Mobile Refinery | ||
| Gross profit | $ |
65,470 |
|
| Unrealized (gain) loss on hedging activities | $ |
(570 |
) |
| Inventory valuation adjustments |
|
(1,532 |
) |
| Adjusted gross margin | $ |
63,368 |
|
| Variable production costs attributable to cost of revenues |
|
21,252 |
|
| Depreciation and amortization attributable to cost of revenues |
|
3,144 |
|
| RINs |
|
16,115 |
|
| Realized (gain) loss on hedging activities |
|
(439 |
) |
| Financing costs |
|
2,295 |
|
| Other revenues |
|
(1,933 |
) |
| Fuel gross margin | $ |
103,802 |
|
| Throughput (bpd) |
|
71,328 |
|
| Fuel gross margin per barrel of throughput | $ |
16.17 |
|
| Adjusted gross margin per barrel of throughput | $ |
9.87 |
|
| Total Opex | $ |
26,486 |
|
| Variable production costs per barrel of throughput | $ |
3.31 |
|
| Operating expenses per barrel of throughput | $ |
3.84 |
|
| RIN Adjusted Fuel Gross Margin | $ |
87,700 |
|
| RIN Adjusted Fuel Gross Margin per barrel of throughput | $ |
13.66 |
|
| Three Months Ended June 30, 2023 | |||
| In thousands | Mobile Refinery | ||
| Gross profit | $ |
(6,462 |
) |
| Unrealized (gain) loss on hedging activities | $ |
3,762 |
|
| Inventory valuation adjustments |
|
(501 |
) |
| Adjusted gross margin | $ |
(3,201 |
) |
| Variable production costs attributable to cost of revenues |
|
28,763 |
|
| Depreciation and amortization attributable to cost of revenues |
|
5,369 |
|
| RINs |
|
25,410 |
|
| Realized (gain) loss on hedging activities |
|
138 |
|
| Financing costs |
|
(29 |
) |
| Other revenues |
|
(3,800 |
) |
| Fuel gross margin | $ |
52,650 |
|
| Throughput (bpd) |
|
78,820 |
|
| Fuel gross margin per barrel of throughput | $ |
7.34 |
|
| Adjusted gross margin per barrel of throughput | $ |
(0.45 |
) |
| Total Opex | $ |
30.4 |
|
| Variable production costs per barrel of throughput | $ |
4.01 |
|
| Operating expenses per barrel of throughput | $ |
4.23 |
|
| RIN Adjusted Fuel Gross Margin | $ |
27.3 |
|
| RIN Adjusted Fuel Gross Margin per barrel of throughput | $ |
3.68 |
|
| Six Months Ended June 30, 2023 | |||
| In thousands | Mobile Refinery | ||
| Gross profit | $ |
59,008 |
|
| Unrealized (gain) loss on hedging activities | $ |
3,192 |
|
| Inventory valuation adjustments |
|
(2,033 |
) |
| Adjusted gross margin | $ |
60,167 |
|
| Variable production costs attributable to cost of revenues |
|
50,015 |
|
| Depreciation and amortization attributable to cost of revenues |
|
8,513 |
|
| RINs |
|
41,525 |
|
| Realized (gain) loss on hedging activities |
|
(301 |
) |
| Financing costs |
|
2,266 |
|
| Other revenues |
|
(5,733 |
) |
| Fuel gross margin | $ |
156,452 |
|
| Throughput (bpd) |
|
75,095 |
|
| Fuel gross margin per barrel of throughput | $ |
11.51 |
|
| Adjusted gross margin per barrel of throughput | $ |
4.43 |
|
| Total Opex | $ |
26,486 |
|
| Variable production costs per barrel of throughput | $ |
3.68 |
|
| Operating expenses per barrel of throughput | $ |
4.05 |
|
| RIN Adjusted Fuel Gross Margin | $ |
115,000 |
|
| RIN Adjusted Fuel Gross Margin per barrel of throughput | $ |
8.46 |
|
Unaudited Reconciliation of Adjusted EBITDA to Net loss from Continued and Discontinued Operations
| In thousands | Three Months Ended | Six Months Ended | Twelve Months Ended | |||||||||||||||
| June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||
| Net income (loss) | $ |
(81,454 |
) |
$ |
(63,781 |
) |
$ |
(27,641 |
) |
$ |
(64,590 |
) |
$ |
38,947 |
|
$ |
(59,260 |
) |
| Depreciation and amortization |
|
7,658 |
|
|
5,644 |
|
|
13,156 |
|
|
7,534 |
|
|
24,541 |
|
|
11,367 |
|
| Income tax expense (benefit) |
|
(27,236 |
) |
|
- |
|
|
(8,477 |
) |
|
- |
|
|
(10,966 |
) |
|
- |
|
| Interest expense |
|
77,536 |
|
|
47,719 |
|
|
90,013 |
|
|
51,954 |
|
|
118,008 |
|
|
55,351 |
|
| EBITDA | $ |
(23,496 |
) |
$ |
(10,418 |
) |
$ |
67,051 |
|
$ |
(5,102 |
) |
$ |
170,530 |
|
$ |
7,458 |
|
| Unrealized (gain) loss on hedging activities |
|
3,370 |
|
|
46,901 |
|
|
3,115 |
|
|
46,633 |
|
|
(43,664 |
) |
|
46,528 |
|
| Inventory valuation adjustments |
|
(501 |
) |
|
23,180 |
|
|
(2,033 |
) |
|
23,180 |
|
|
25,553 |
|
|
23,180 |
|
| Gain on change in value of derivative warrant liability |
|
(9,600 |
) |
|
945 |
|
|
(415 |
) |
|
4,524 |
|
|
(12,760 |
) |
|
(3,078 |
) |
| Stock-based compensation |
|
368 |
|
|
324.00 |
|
|
733.00 |
|
|
574 |
|
|
1,733 |
|
|
1,081 |
|
| (Gain) loss on sale of assets |
|
(4,291 |
) |
|
0 |
|
|
(72,032 |
) |
|
(415 |
) |
|
(71,109 |
) |
|
(625 |
) |
| Acquisition costs |
|
- |
|
|
9,078 |
|
|
4,308.00 |
|
|
13,638 |
|
|
7,197 |
|
|
17,203 |
|
| Enviromental clean-up |
|
- |
|
|
1,428 |
|
|
- |
|
|
1,428 |
|
|
- |
|
|
1,428 |
|
| Other |
|
- |
|
|
(147 |
) |
|
- |
|
|
(147 |
) |
|
(3 |
) |
|
2,106 |
|
| Adjusted EBITDA | $ |
(34,150 |
) |
$ |
71,291 |
|
$ |
727 |
|
$ |
84,313 |
|
$ |
77,477 |
|
$ |
95,281 |
|
| Three Months Ended June 30, 2023 | ||||||||||||||||||
| In thousands | Mobile Refinery | Legacy Refining & Marketing | Total Refining & Marketing | Black Oil and Recovery | Corporate | Consolidated | ||||||||||||
| Net income (loss) | $ |
(42,116 |
) |
$ |
(1,312 |
) |
$ |
(43,428 |
) |
$ |
(3,667 |
) |
$ |
(34,359 |
) |
$ |
(81,454 |
) |
| Depreciation and amortization |
|
6,119 |
|
|
272 |
|
|
6,391 |
|
|
1,100 |
|
|
167 |
|
|
7,658 |
|
| Income tax expense (benefit) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(27,236 |
) |
|
(27,236 |
) |
| Interest expense |
|
4,529 |
|
|
- |
|
|
4,529 |
|
|
28 |
|
|
72,979 |
|
|
77,536 |
|
| EBITDA | $ |
(31,468 |
) |
$ |
(1,040 |
) |
$ |
(32,508 |
) |
$ |
(2,539 |
) |
$ |
11,551 |
|
$ |
(23,496 |
) |
| Unrealized (gain) loss on hedging activities |
|
3,762 |
|
|
25 |
|
|
3,787 |
|
|
(417 |
) |
|
- |
|
|
3,370 |
|
| Inventory valuation adjustments |
|
(501 |
) |
|
- |
|
|
(501 |
) |
|
- |
|
|
- |
|
|
(501 |
) |
| Gain on change in value of derivative warrant liability |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(9,600 |
) |
|
(9,600 |
) |
| Stock-based compensation |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
368 |
|
|
368 |
|
| (Gain) loss on sale of assets |
|
- |
|
|
- |
|
|
- |
|
|
499 |
|
|
(4,790 |
) |
|
(4,291 |
) |
| Acquisition costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| Adjusted EBITDA | $ |
(28,207 |
) |
$ |
(1,015 |
) |
$ |
(29,222 |
) |
$ |
(2,457 |
) |
$ |
(2,471 |
) |
$ |
(34,150 |
) |
| Six Months Ended June 30, 2023 | ||||||||||||||||||
| In thousands | Mobile Refinery | Legacy Refining & Marketing | Total Refining & Marketing | Black Oil and Recovery | Corporate | Consolidated | ||||||||||||
| Net income (loss) | $ |
(5,939 |
) |
$ |
(2,437 |
) |
$ |
(8,376 |
) |
$ |
(1,663 |
) |
$ |
(17,602 |
) |
$ |
(27,641 |
) |
| Depreciation and amortization |
|
9,999 |
|
|
494 |
|
|
10,493 |
|
|
2,326 |
|
|
337 |
|
|
13,156 |
|
| Income tax expense (benefit) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(8,477 |
) |
|
(8,477 |
) |
| Interest expense |
|
8,405 |
|
|
- |
|
|
8,405 |
|
|
85 |
|
|
81,523 |
|
|
90,013 |
|
| EBITDA | $ |
12,465 |
|
$ |
(1,943 |
) |
$ |
10,522 |
|
$ |
748 |
|
$ |
55,781 |
|
$ |
67,051 |
|
| Unrealized (gain) loss on hedging activities |
|
3,192 |
|
|
(42 |
) |
|
3,150 |
|
|
(35 |
) |
|
- |
|
|
3,115 |
|
| Inventory valuation adjustments |
|
(2,033 |
) |
|
- |
|
|
(2,033 |
) |
|
- |
|
|
- |
|
|
(2,033 |
) |
| Gain on change in value of derivative warrant liability |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(415 |
) |
|
(415 |
) |
| Stock-based compensation |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
733 |
|
|
733 |
|
| (Gain) loss on sale of assets |
|
- |
|
|
- |
|
|
- |
|
|
(1,156 |
) |
|
(70,876 |
) |
|
(72,032 |
) |
| Acquisition costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
4,308 |
|
|
4,308 |
|
| Adjusted EBITDA | $ |
13,624 |
|
$ |
(1,985 |
) |
$ |
11,639 |
|
$ |
(443 |
) |
$ |
(10,469 |
) |
$ |
727 |
|
| Three Months Ended June 30, 2022 | ||||||||||||||||
| In thousands | Mobile Refinery | Legacy Refining & Marketing | Total Refining & Marketing | Black Oil and Recovery | Corporate | Consolidated | ||||||||||
| Net income (loss) | $ |
(23,961 |
) |
$ |
10 |
$ |
(23,951 |
) |
$ |
(39,830 |
) |
$ |
- |
$ |
(63,781 |
) |
| Depreciation and amortization |
|
3,722 |
|
|
23 |
|
3,745 |
|
|
1,899 |
|
|
- |
|
5,644 |
|
| Income tax expense (benefit) |
|
- |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
- |
|
| Interest expense |
|
3,250 |
|
|
- |
|
3,250 |
|
|
44,469 |
|
|
- |
|
47,719 |
|
| EBITDA | $ |
(16,989 |
) |
$ |
33 |
$ |
(16,956 |
) |
$ |
6,538 |
|
$ |
- |
$ |
(10,418 |
) |
| Unrealized (gain) loss on hedging activities |
|
46,901 |
|
|
- |
|
46,901 |
|
|
- |
|
|
- |
|
46,901 |
|
| Inventory valuation adjustments |
|
23,180 |
|
|
- |
|
23,180 |
|
|
- |
|
|
- |
|
23,180 |
|
| Gain on change in value of derivative warrant liability |
|
- |
|
|
- |
|
- |
|
|
945.00 |
|
|
- |
|
945 |
|
| Stock-based compensation |
|
- |
|
|
- |
|
- |
|
|
324.00 |
|
|
- |
|
324 |
|
| (Gain) loss on sale of assets |
|
- |
|
- |
|
|
- |
|
|
- |
|
- |
|
|||
| Acquisition costs |
|
9,078 |
|
|
- |
|
9,078 |
|
|
- |
|
|
- |
|
9,078 |
|
| Enviromental clean-up |
|
1,428 |
|
|
- |
|
1,428 |
|
|
- |
|
|
- |
|
1,428 |
|
| Other |
|
(19 |
) |
|
- |
|
(19 |
) |
|
(128.00 |
) |
|
- |
|
(147 |
) |
| Adjusted EBITDA | $ |
63,579 |
|
$ |
33 |
$ |
63,612 |
|
$ |
7,679 |
|
$ |
- |
$ |
71,291 |
|
| Six Months Ended June 30, 2022 | |||||||||||||||||
| In thousands | Mobile Refinery | Legacy Refining & Marketing | Total Refining & Marketing | Black Oil and Recovery | Corporate | Consolidated | |||||||||||
| Net income (loss) | $ |
(23,961 |
) |
$ |
290 |
$ |
(23,671 |
) |
$ |
(26,015 |
) |
$ |
(14,904 |
) |
$ |
(64,590 |
) |
| Depreciation and amortization |
|
3,722 |
|
|
251 |
|
3,973 |
|
|
3,315 |
|
|
246 |
|
|
7,534 |
|
| Income tax expense (benefit) |
|
- |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| Interest expense |
|
3,250 |
|
|
- |
|
3,250 |
|
|
44,469 |
|
|
4,235 |
|
|
51,954 |
|
| EBITDA | $ |
(16,989 |
) |
$ |
541 |
$ |
(16,448 |
) |
$ |
21,769 |
|
$ |
(10,423 |
) |
$ |
(5,102 |
) |
| Unrealized (gain) loss on hedging activities |
|
46,901 |
|
|
- |
|
46,901 |
|
|
(268.00 |
) |
|
- |
|
|
46,633 |
|
| Inventory valuation adjustments |
|
23,180 |
|
|
- |
|
23,180 |
|
|
- |
|
|
- |
|
|
23,180 |
|
| Gain on change in value of derivative warrant liability |
|
- |
|
|
- |
|
- |
|
|
945.00 |
|
|
3,579 |
|
|
4,524 |
|
| Stock-based compensation |
|
- |
|
|
- |
|
- |
|
|
324.00 |
|
|
250 |
|
|
574 |
|
| (Gain) loss on sale of assets |
|
- |
|
|
- |
|
- |
|
|
(415 |
) |
|
- |
|
|
(415 |
) |
| Acquisition costs |
|
9,078 |
|
|
- |
|
9,078 |
|
|
- |
|
|
4,560 |
|
|
13,638 |
|
| Enviromental clean-up |
|
1,428 |
|
|
- |
|
1,428 |
|
|
- |
|
|
- |
|
|
1,428 |
|
| Other |
|
(19 |
) |
|
- |
|
(19 |
) |
|
(128.00 |
) |
|
- |
|
|
(147 |
) |
| Adjusted EBITDA | $ |
63,579 |
|
$ |
541 |
$ |
64,120 |
|
$ |
22,227 |
|
$ |
(2,034 |
) |
$ |
84,313 |
|
Unaudited Reconciliation of Long-Term Debt to Net Long-Term Debt and Ratio of Net Debt
| In thousands | As of | ||||||||
| June 30, 2023 | June 30, 2022 | December 31, 2022 | |||||||
| Long-Term Debt: | |||||||||
| Senior Convertible Note | $ |
15,230 |
|
$ |
41,543 |
|
$ |
95,178 |
|
| Term Loan 2025 |
|
150,075 |
|
|
165,000 |
|
|
165,000 |
|
| Finance lease liability long-term |
|
67,290 |
|
|
44,640 |
|
|
45,164 |
|
| Finance lease liability short-term |
|
2,320 |
|
|
652 |
|
|
1,363 |
|
| Operating lease liability long-term |
|
66,914 |
|
|
3,816 |
|
|
44,545 |
|
| Operating lease liability short-term |
|
25,588 |
|
|
953 |
|
|
9,012 |
|
| Long-Term Debt and Lease Obligations | $ |
327,417 |
|
$ |
256,604 |
|
$ |
360,262 |
|
| Unamortized discount and deferred financing costs |
|
(33,402 |
) |
|
(37,035 |
) |
|
(81,918 |
) |
| Insurance premiums financed |
|
9,995 |
|
|
9,236 |
|
|
5,602 |
|
| Long-Term Debt and Lease Obligations per Balance Sheet | $ |
304,010 |
|
$ |
228,805 |
|
$ |
283,946 |
|
| Cash and Cash Equivalents |
|
(48,532 |
) |
|
(97,914 |
) |
|
(141,248 |
) |
| Restricted Cash |
|
(3,603 |
) |
|
(100 |
) |
|
(4,929 |
) |
| Total Cash and Cash Equivalents | $ |
(52,135 |
) |
$ |
(98,014 |
) |
$ |
(146,177 |
) |
| Net Long-Term Debt | $ |
275,282 |
|
$ |
158,590 |
|
$ |
214,085 |
|
| Adjusted EBITDA | $ |
77,477 |
|
$ |
95,280 |
|
$ |
161,000 |
|
| Ratio of Net Debt | 3.6x | 1.7x | 1.3x | ||||||