Yahoo Finance Via Renewables Inc (VIA) (Q1 2024) Earnings Call Transcript Highlights: A Turnaround with ...
Release Date: May 02, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Via Renewables Inc (NASDAQ:VIA) reported a significant increase in net income to $19.1 million, compared to a net loss of $6.8 million in the first quarter of the previous year.
The company successfully grew its customer base to 338,000 RCEs, up from 335,000 at the end of the previous year.
Via Renewables Inc (NASDAQ:VIA) entered into an agreement to acquire approximately 12,500 RCEs, which is expected to be accretive to the bottom line starting from the second quarter.
The company reported a mark-to-market gain of $11.2 million this quarter, a substantial improvement from a mark-to-market loss of $22.6 million in the same quarter last year.
Via Renewables Inc (NASDAQ:VIA) maintained a stable attrition rate at 3.9%, with lower attrition in the mass market book offsetting an uptick in commercial attrition.
Negative Points
Adjusted EBITDA decreased to $15.1 million from $18.8 million in the first quarter of the previous year due to lower unit margins and mild weather affecting gas volumes.
Retail gross margin declined to $35.7 million from $40.3 million year-over-year, impacted by lower unit margins in both electricity and natural gas segments.
The retail electricity segment saw a decrease in gross margin to $18.9 million from $20.5 million in the previous year's first quarter.
In the retail natural gas segment, gross margin decreased to $16.2 million from $19.9 million in the first quarter of the previous year, due to lower unit margins and volumes.
General and Administrative (G&A) expenses slightly increased to $17.3 million, primarily due to higher sales and marketing expenses and legal fees.
Q & A Highlights
Q: Can you provide a summary of Via Renewables' financial results for the first quarter? A: (W. Keith Maxwell, CEO) In the first quarter, we reported an adjusted EBITDA of $15.1 million, a decrease from the previous year's $18.8 million, primarily due to lower unit margins and mild weather impacting gas volumes.
Q: How has the customer base changed this quarter? A: (W. Keith Maxwell, CEO) We grew our customer book to 338,000 RCEs from 335,000 at the start of the year and increased the percentage of our customer base in POR markets, which reduces our credit risk and bad debt exposure.
Q: What are the company's plans for acquisitions? A: (W. Keith Maxwell, CEO) We've entered into an agreement to acquire approximately 12,500 RCEs in our existing markets, marking our first customer acquisition since the end of 2022. This acquisition is expected to be accretive to our bottom line starting in the second quarter.
Q: Could you detail the performance of the retail electricity and natural gas segments? A: (Mike Barajas, CFO) In the retail electricity segment, the gross margin was $18.9 million, down from $20.5 million last year. In the retail natural gas segment, the gross margin was $16.2 million, down from $19.9 million, both declines due to lower unit margins and volumes.
Q: What was the net income for the quarter, and what were the major factors affecting it? A: (Mike Barajas, CFO) The net income for the quarter was $19.1 million, a significant improvement from a net loss of $6.8 million in the first quarter of 2023. This increase was mainly due to a mark-to-market gain on our hedges and reductions in net asset optimization, depreciation, and interest expenses.
Q: Are there any updates on dividends? A: (Mike Barajas, CFO) On April 15, we paid the quarterly cash dividends on our Series A preferred stock. Additionally, on April 17, we declared a dividend of $0.76051 per share on our preferred stock, payable on July 15.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
