Via Renewables, Inc. (VIA) Bundle
A Brief History of Via Renewables, Inc.
Via Renewables, Inc. (VIA) is a publicly traded company specializing in retail energy services, primarily focusing on electricity and natural gas supply. Established to capitalize on the deregulated energy markets in the United States, Via Renewables has grown through both organic customer acquisition and strategic acquisitions of customer portfolios.
Financial Performance Overview
As of September 30, 2024, Via Renewables reported total revenues of approximately $294.5 million for the nine months ended, which represents a decrease of approximately $39.0 million, or 12%, compared to $333.5 million during the same period in 2023. This decline was largely attributed to lower electricity and gas unit revenues resulting from decreased market rates.
| Period | Total Revenues ($ in millions) | Change (%) |
|---|---|---|
| 9 Months Ended September 30, 2024 | 294.5 | -12% |
| 9 Months Ended September 30, 2023 | 333.5 | N/A |
Segment Performance
Via Renewables' operations are primarily divided into two segments: Retail Electricity and Retail Natural Gas. For the nine months ended September 30, 2024, the Retail Electricity Segment generated approximately $231.1 million in revenues, while the Retail Natural Gas Segment contributed around $64.5 million. Both segments experienced revenue declines due to lower prices and volumes sold.
| Segment | Revenues ($ in millions) | Change (%) |
|---|---|---|
| Retail Electricity | 231.1 | -10% |
| Retail Natural Gas | 64.5 | -21% |
Operating Expenses
The total retail cost of revenues for the nine months ended September 30, 2024 was approximately $180.6 million, a decrease of 23% compared to $234.4 million for the same period in the previous year. This reduction was primarily due to lower electricity and gas costs in a declining commodity price environment.
| Period | Total Cost of Revenues ($ in millions) | Change (%) |
|---|---|---|
| 9 Months Ended September 30, 2024 | 180.6 | -23% |
| 9 Months Ended September 30, 2023 | 234.4 | N/A |
Profitability Metrics
For the nine months ended September 30, 2024, the gross margin was approximately $113.9 million, reflecting a decline from $99.1 million in the same period of the previous year. The adjusted EBITDA for this period was approximately $37.8 million, down from $43.6 million.
| Period | Gross Margin ($ in millions) | Adjusted EBITDA ($ in millions) |
|---|---|---|
| 9 Months Ended September 30, 2024 | 113.9 | 37.8 |
| 9 Months Ended September 30, 2023 | 99.1 | 43.6 |
Liquidity Position
As of September 30, 2024, Via Renewables reported cash and cash equivalents of approximately $66.6 million, with total liquidity available amounting to $175.5 million. This liquidity is supported by a Senior Credit Facility availability of approximately $83.9 million.
| Liquidity Item | Amount ($ in thousands) |
|---|---|
| Cash and Cash Equivalents | 66,572 |
| Senior Credit Facility Availability | 83,935 |
| Total Liquidity | 175,507 |
Customer Acquisition and Growth
In April 2024, Via Renewables entered into an agreement to acquire approximately 12,556 residential customer equivalents (RCEs) for a cash price of up to $2.3 million. By September 30, 2024, approximately 10,700 RCEs had been successfully transferred.
Recent Developments
On October 16, 2024, the company declared a quarterly cash dividend of $0.71847 per share to preferred stockholders, scheduled for payment on January 15, 2025.
A Who Owns Via Renewables, Inc. (VIA)
Ownership Structure
As of 2024, Via Renewables, Inc. (VIA) is primarily owned by Mr. Maxwell and his affiliates. Following the merger on June 13, 2024, Mr. Maxwell acquired all issued and outstanding shares of Class A and Class B common stock. The Class A common stock ceased trading on NASDAQ after this date.
Share Distribution
The ownership of Via Renewables can be summarized in the following table:
| Share Class | Shares Outstanding | Ownership Percentage |
|---|---|---|
| Class A Common Stock | 3,323,329 | 45.38% |
| Class B Common Stock | 4,000,000 | 54.62% |
Financial Overview
Via Renewables has shown significant financial activity in the first nine months of 2024, which is relevant for understanding its ownership context:
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Revenues | $294,526 |
| Net Income | $36,414 |
| Total Assets | $298,420 |
| Cash and Cash Equivalents | $66,572 |
| Dividends Paid to Preferred Stockholders | $8,130 |
Non-controlling Interests
The non-controlling interest in Spark HoldCo, LLC is held by affiliates of Mr. Maxwell. As of September 30, 2024, the ownership interests were:
| Entity | Ownership Percentage |
|---|---|
| Via Renewables | 45.38% |
| Affiliated Owners | 54.62% |
Recent Developments
In April 2024, Via Renewables entered into an agreement to acquire approximately 12,556 residential customer equivalents for a cash price of up to $2.3 million, indicating ongoing strategic growth initiatives.
Dividend Information
On October 16, 2024, a quarterly cash dividend of $0.71847 per share was declared for holders of Series A Preferred Stock, payable on January 15, 2025.
Via Renewables, Inc. (VIA) Mission Statement
Company Overview
Via Renewables, Inc. focuses on providing renewable energy solutions through retail electricity and natural gas services. The company aims to deliver sustainable energy options to its customers while maintaining operational efficiency and profitability.
Mission Statement
As of 2024, Via Renewables, Inc. articulates its mission as a commitment to being a leading provider of sustainable energy solutions, emphasizing customer satisfaction, environmental stewardship, and innovative energy services.
Financial Performance Overview
In the nine months ended September 30, 2024, Via Renewables reported total revenues of approximately $294.5 million, a decrease of $39 million or 12% compared to the same period in 2023. This decline was largely attributed to lower electricity and gas unit revenues as a result of decreased rates.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $93.8 million | $110.2 million | -15% |
| Retail Cost of Revenues | $68.6 million | $71.1 million | -4% |
| Gross Profit | $25.2 million | $39.2 million | -36% |
| Net Income | $1.655 million | $14.659 million | -89% |
| Adjusted EBITDA | $10.3 million | $12.8 million | -19% |
Operational Highlights
For the nine months ended September 30, 2024, the retail gross margin was approximately $99.1 million, down from $102.9 million in the same period the previous year. The decrease reflects challenges in maintaining margins amidst fluctuating energy prices.
Customer Acquisition and Retention
Via Renewables has reported an increase in customer acquisition costs, which rose to approximately $7.1 million for the nine months ended September 30, 2024, compared to $5.0 million during the same period in 2023. This increase was driven by heightened sales activities and competition in the retail energy market.
Liquidity Position
As of September 30, 2024, Via Renewables had cash and cash equivalents amounting to $66.6 million and total liquidity of $175.5 million, which includes availability under its Senior Credit Facility and Subordinated Debt Facility.
| Liquidity Metrics | Amount ($ in thousands) |
|---|---|
| Cash and Cash Equivalents | 66,572 |
| Senior Credit Facility Availability | 83,935 |
| Subordinated Debt Facility Availability | 25,000 |
| Total Liquidity | 175,507 |
Market Position and Strategy
Via Renewables remains committed to expanding its market presence through strategic acquisitions and enhancing customer engagement. The company aims to grow its residential and commercial customer base by providing competitive pricing and innovative energy solutions.
Conclusion
Via Renewables, Inc.'s mission statement reflects its dedication to sustainability and customer service in the retail energy sector. Despite facing revenue challenges, the company's strategic focus on operational efficiency and customer acquisition positions it for future growth.
How Via Renewables, Inc. (VIA) Works
Business Model
Via Renewables, Inc. operates primarily in the retail energy sector, providing electricity and natural gas to residential and commercial customers. The company’s business model focuses on acquiring and serving customers while managing energy price volatility through hedging strategies.
Financial Performance
For the nine months ended September 30, 2024, Via Renewables reported total revenues of approximately $294.5 million, a decrease of 12% from approximately $333.5 million for the same period in 2023. This decline was primarily attributed to lower electricity and gas unit revenues due to decreased rates.
| Metrics | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Total Revenues | $294.5 million | $333.5 million | -12% |
| Retail Cost of Revenues | $180.6 million | $234.4 million | -23% |
| Gross Profit | $113.9 million | $99.1 million | +15% |
| Net Income | $36.4 million | $27.0 million | +35% |
Revenue Segmentation
The company segments its revenues into Retail Electricity and Retail Natural Gas. For the nine months ended September 30, 2024, revenues from these segments were:
| Segment | 2024 Revenue | 2023 Revenue | Change |
|---|---|---|---|
| Retail Electricity | $231.1 million | $255.4 million | -10% |
| Retail Natural Gas | $64.5 million | $82.0 million | -21% |
Cost Structure
Via Renewables' total retail cost of revenues for the nine months ended September 30, 2024, was approximately $180.6 million, which reflects a significant decrease of approximately $53.8 million or 23% from the prior year. This reduction was primarily due to lower electricity and gas costs resulting from a lower commodity price environment.
Operating Expenses
General and administrative expenses for the nine months ended September 30, 2024, increased to approximately $55.9 million, up from $51.1 million in 2023, primarily due to increased legal and regulatory expenses.
Cash Flow Analysis
For the nine months ended September 30, 2024, Via Renewables reported net cash provided by operating activities of approximately $48.5 million, an increase from $40.9 million in 2023. The cash used in investing activities was approximately $2.9 million, and cash flows used in financing activities were approximately $21.0 million.
| Cash Flow Item | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $48.5 million | $40.9 million |
| Net Cash Used in Investing Activities | $(2.9 million) | $(1.1 million) |
| Net Cash Used in Financing Activities | $(21.0 million) | $(29.9 million) |
Liquidity Position
As of September 30, 2024, Via Renewables had cash and cash equivalents of approximately $66.6 million and total liquidity of approximately $175.5 million, which includes availability under its Senior Credit Facility. The Senior Credit Facility had an outstanding balance of approximately $89.0 million with an interest rate of 8.09%.
Customer Acquisition
Via Renewables focuses on acquiring new customers through both organic growth and strategic acquisitions. For the nine months ended September 30, 2024, customer acquisition costs totaled approximately $7.1 million, an increase from $5.0 million in the prior year.
Shareholder Returns
For the three months ended September 30, 2024, Via Renewables declared a dividend of $0.71847 per share to holders of the Series A Preferred Stock, with total dividends paid for the nine-month period amounting to approximately $8.2 million.
| Dividend Information | 2024 Total | 2023 Total |
|---|---|---|
| Dividends Paid (9 months) | $8.2 million | $7.9 million |
| Declared Dividend per Share | $0.71847 | $0.70825 |
How Via Renewables, Inc. (VIA) Makes Money
Revenue Streams
Via Renewables generates revenue primarily through the sale of retail electricity and natural gas to residential and commercial customers. The company recognizes revenue when the performance obligation is satisfied, meaning when the product is delivered to the customer.
Financial Performance Overview
For the nine months ended September 30, 2024, Via Renewables reported total revenues of approximately $294.5 million, a decrease of $39 million or 12% from $333.5 million in the same period of 2023. This decline was attributed to lower electricity and gas unit revenue due to decreased rates, partially offset by a reduction in net asset optimization expenses.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $294.5 million | $333.5 million |
| Retail Cost of Revenues | $180.6 million | $234.4 million |
| Gross Profit | $113.95 million | $99.07 million |
| Net Income | $36.4 million | $27.0 million |
| Adjusted EBITDA | $37.8 million | $43.6 million |
Retail Electricity Segment
The Retail Electricity Segment accounted for approximately $231.1 million in revenues for the nine months ended September 30, 2024, down 10% from $255.4 million in 2023. This decrease was primarily due to lower electricity prices, which contributed to a decline of $26.9 million in total revenues.
| Electricity Segment Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $231.1 million | $255.4 million |
| Retail Cost of Revenues | $149.6 million | $183.0 million |
| Retail Gross Margin | $68.8 million | $69.5 million |
Retail Natural Gas Segment
The Retail Natural Gas Segment generated revenues of approximately $64.5 million for the nine months ended September 30, 2024, representing a 21% decline from $82.0 million in 2023. This was primarily driven by lower natural gas prices and volumes sold.
| Natural Gas Segment Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $64.5 million | $82.0 million |
| Retail Cost of Revenues | $30.1 million | $50.7 million |
| Retail Gross Margin | $29.7 million | $32.7 million |
Cost Structure
The retail cost of revenues for the nine months ended September 30, 2024, was approximately $180.6 million, a decrease of $53.8 million or 23% from $234.4 million in 2023. This reduction was due to lower electricity and gas costs in a lower commodity price environment.
Customer Acquisition and Operational Expenses
Via Renewables incurred customer acquisition costs of approximately $7.1 million for the nine months ended September 30, 2024, an increase of 42% from $5.0 million in 2023. General and administrative expenses were approximately $55.9 million, up 9% from $51.1 million in 2023.
| Operational Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Customer Acquisition Costs | $7.1 million | $5.0 million |
| General and Administrative Expenses | $55.9 million | $51.1 million |
Liquidity and Capital Resources
As of September 30, 2024, Via Renewables had total assets of $1.78 billion, with total liabilities of approximately $1.87 billion. The company’s cash flow provided by operating activities for the nine months ended September 30, 2024, was approximately $48.5 million.
| Liquidity Metrics | As of September 30, 2024 |
|---|---|
| Total Assets | $1.78 billion |
| Total Liabilities | $1.87 billion |
| Cash Flow from Operating Activities | $48.5 million |
Market Presence
Via Renewables operates primarily in key markets including New England, the Mid-Atlantic, the Midwest, and the Southwest. The company serves both commercial and residential customers, with a significant portion of revenues derived from residential sales.
| Market Revenue Contributions | New England | Mid-Atlantic | Midwest | Southwest |
|---|---|---|---|---|
| Electricity Revenue | $70.7 million | $91.1 million | $22.5 million | $46.8 million |
| Natural Gas Revenue | $7.2 million | $24.7 million | $10.7 million | $21.9 million |
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Article updated on 8 Nov 2024
Resources:
- Via Renewables, Inc. (VIA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Via Renewables, Inc. (VIA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Via Renewables, Inc. (VIA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.