HOUSTON, TX / ACCESSWIRE / March 4, 2020 / Vertex Energy, Inc. (NASDAQ:VTNR, "Vertex" or the "Company"), a leading specialty refiner and marketer of high-quality hydrocarbon products, today announced financial results for the fourth quarter and full-year 2019.
4Q19 FINANCIAL HIGHLIGHTS
- Total direct collections +19.1% year-over-year (y/y)
- Total revenue of $42.6 million (+$0.8 million y/y)
- Total net income of $1.4 million (+$1.6 million y/y)
- Total adjusted EBITDA of $3.9 million (+$5.5 million y/y)
FULL-YEAR 2019 HIGHLIGHTS
- Total direct collections +20.6% y/y
- Completed Tensile Capital Joint-Venture
- Completed Bunker One Strategic Partnership
For the three months ended December 31, 2019, the Company reported net income available to common shareholders of $1.4 million, or $0.04 per diluted share, versus a net loss of ($0.2) million, or ($0.01) per basic share, in the fourth quarter of 2018. Vertex reported Adjusted EBITDA of $3.9 million in the fourth quarter of 2019, versus ($1.6) million in the prior-year period. For the full-year 2019, the Company reported a net loss available to common shareholders of ($11.4) million, or ($0.28) per basic share, versus a net loss of ($8.0) million, or ($0.23) per basic share, in 2018. Vertex reported Adjusted EBITDA of $7.4 million for the full-year 2019, versus $7.3 million in the prior-year period. A schedule reconciling the Company's GAAP and non-GAAP financial results (including Adjusted EBITDA) is included later in this release.
Fourth quarter results benefited from a combination of increased sales volumes and elevated product margins, resulting in improved profitability in the period. In advance of the January 1, 2020 low-sulfur marine fuel mandate set forth by the International Maritime Organization, the spread between high-sulfur fuel oil and corresponding middle distillate values widened materially. In response to improved market conditions, the Company's Marrero, Louisiana refinery operated near peak capacity during the fourth quarter of 2019, capitalizing on favorable refining economics evident in the market. During the fourth quarter of 2019, Marrero sold near-record volumes of middle distillate to the Company's long-term distribution partner, Bunker One USA. At the Company's Ohio-based Heartland refinery, increased sales volumes of high-purity base oils also contributed to the year-over-year improvement in fourth quarter results.
Direct collections of used motor oil (UMO) increased 19.1% in the fourth quarter of 2019, when compared to the prior-year's period. UMO collections represented approximately 44.5% of overall feedstock processed at the Company's refineries in the fourth quarter of 2019, versus 36.5% in the fourth quarter of 2018, with the remaining feedstock being sourced from third-party UMO suppliers.
MANAGEMENT COMMENTARY
"Fourth quarter results exceeded our guidance range, given strong performances at both our Marrero and Heartland refineries," stated Benjamin P. Cowart, President and CEO of Vertex, who continued, "In expectation of improved product spreads leading up to the January 1, 2020 IMO transition, we operated our Marrero refinery at capacity, while building inventories of middle distillates. This strategy served us well in the fourth quarter, positioning us to sell increased volumes at elevated margins. Improved refining economics at Marrero, together with increased sales of high-purity base oils at Heartland, resulted in a return to profitable growth in the period.
"During 2019, we entered into two major strategic partnerships that we believe will position us to achieve material growth in profitability over a multi-year horizon. Our recently announced relationship with Bunker One USA, which provides for a long-term supply-offtake agreement and a net profit-sharing arrangement, represents the single most significant opportunity for growth in 2020. This relationship, together with our previously disclosed joint-venture with Tensile Capital, which positions us to become a leading producer and marketer of high-purity base oils at the Heartland refinery, are both transformational opportunities that we feel position us to create significant value for shareholders, over time.
"During the first quarter 2020, product spreads narrowed from near-record fourth quarter levels, as global trade slowed in reaction to concerns around a novel coronavirus strain. Importantly, we have hedges in place to protect some of our product margins, which we expect will serve to offset part of the recent volatility evident in the market. Even as refining margins are expected to revert back toward long-term averages, contributions from the Bunker One agreement, together with strong demand for high-purity base oils, support our positive outlook for the full-year 2020," continued Cowart.
CONFERENCE CALL AND WEBCAST
A conference call will be held today at 9:00 A.M. ET to review the Company's financial results, discuss recent events and conduct a question-and-answer session.
A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of Vertex's website at www.vertexenergy.com. To listen to a live broadcast, go to 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 Live: 844-369-8770
To listen to a replay of the teleconference, which will be available through April 4, 2020:
Domestic Replay: 877-481-4010
Conference ID: 33255
ABOUT VERTEX ENERGY
Houston-based Vertex Energy, Inc. (NASDAQ: VTNR) is a specialty refiner of alternative feedstocks and marketer of high-purity petroleum products. Vertex is one of the largest processors of used motor oil in the U.S., with operations located in Houston and Port Arthur (TX), Marrero (LA) and Heartland (OH). Vertex also co-owns a facility, Myrtle Grove, located on a 41-acre industrial complex along the Gulf Coast in Belle Chasse, LA, with existing hydro-processing and plant infrastructure assets, that include nine million gallons of storage. The Company has built a reputation as a key supplier of Group II+ and Group III base oils to the lubricant manufacturing industry throughout North America.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements, including information about management's view of Vertex Energy'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," "hopes," "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 Energy, 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 Energy 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 Energy's future results. The forward-looking statements included in this press release are made only as of the date hereof. Vertex Energy cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Vertex Energy 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 Energy.
CONTACT
Noel Ryan, IRC
720.778.2415
[email protected]
Reconciliation of Net Loss attributable to Vertex Energy, Inc., to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA*
|
|
For the Three Months Ended | For the Twelve Months | ||||||||||||||
|
|
||||||||||||||||
|
|
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||
|
Net income (loss)
|
||||||||||||||||
|
attributable to Vertex Energy, Inc.
|
$ | 1,434,202 | $ | (201,333 | ) | $ | (5,048,579 | ) | $ | (2,217,767 | ) | |||||
|
Add (deduct):
|
||||||||||||||||
|
Interest Income
|
(126 | ) | - | (2,697 | ) | (659 | ) | |||||||||
|
Interest Expense
|
747,291 | 833,084 | 3,070,071 | 3,281,855 | ||||||||||||
|
Depreciation and amortization
|
1,846,604 | 1,756,996 | 7,180,089 | 6,991,010 | ||||||||||||
|
EBITDA
|
4,027,971 | 2,388,747 | 5,198,884 | 8,054,439 | ||||||||||||
|
|
||||||||||||||||
|
Add (deduct):
|
||||||||||||||||
|
Loss (gain) on change in value of derivative warrant liability
|
819,239 | (2,888,687 | ) | 487,524 | (763,716 | ) | ||||||||||
|
Unrealized (gain) loss on derivative instruments
|
(1,134,723 | ) | (1,297,475 | ) | 1,071,792 | (695,992 | ) | |||||||||
|
Stock-based compensation
|
169,350 | 165,057 | 642,841 | 659,836 | ||||||||||||
|
Adjusted EBITDA *
|
$ | 3,881,837 | $ | (1,632,358) | $ | 7,401,039 | $ | 7,254,567 | ||||||||
* EBITDA and Adjusted EBITDA are non-GAAP financial measures. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance.
EBITDA represents net income before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before stock-based compensation expense and gain (loss) on change in value of derivative warrant liability and unrealized gains and losses on derivative instruments for hedging activities. EBITDA and Adjusted EBITDA are presented because we believe they provide additional useful information to investors due to the various noncash items during the period. EBITDA and Adjusted EBITDA 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:
- EBITDA and Adjusted EBITDA do not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments;
- EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs;
- EBITDA and Adjusted EBITDA 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, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements; and
- Other companies in this industry may calculate EBITDA and Adjusted EBITDA differently than Vertex Energy does, limiting its usefulness as a comparative measure.
VERTEX ENERGY, INC.
CONSOLIDATED BALANCE SHEETS
|
|
December 31, 2019 | December 31, 2018 | ||||||
|
ASSETS
|
||||||||
|
Current assets
|
||||||||
|
Cash and cash equivalents
|
$ | 4,099,655 | $ | 1,249,831 | ||||
|
Restricted cash
|
100,170 | 1,600,000 | ||||||
|
Accounts receivable, net
|
12,138,078 | 9,027,990 | ||||||
|
Federal income tax receivable
|
68,606 | 137,212 | ||||||
|
Inventory
|
6,547,479 | 8,091,397 | ||||||
|
Derivative commodity asset
|
- | 695,941 | ||||||
|
Prepaid expenses and other current assets
|
4,452,920 | 2,740,541 | ||||||
|
Total current assets
|
27,406,908 | 23,542,912 | ||||||
|
|
||||||||
|
|
||||||||
|
Fixed assets, at cost
|
69,469,548 | 66,762,388 | ||||||
|
Less accumulated depreciation
|
(24,708,151 | ) | (19,874,896 | ) | ||||
|
Fixed assets, net
|
44,761,397 | 46,887,492 | ||||||
|
Finance lease right-of-use assets
|
851,570 | 397,515 | ||||||
|
Operating lease right-of-use assets
|
35,586,885 | - | ||||||
|
Intangible assets, net
|
11,243,800 | 12,578,519 | ||||||
|
Deferred income taxes
|
68,605 | 137,211 | ||||||
|
Other assets
|
840,754 | 616,759 | ||||||
|
TOTAL ASSETS
|
$ | 120,759,919 | $ | 84,160,408 | ||||
|
|
||||||||
|
LIABILITIES, TEMPORARY EQUITY AND EQUITY
|
||||||||
|
Current liabilities
|
||||||||
|
Accounts payable
|
$ | 7,620,098 | $ | 8,791,529 | ||||
|
Accrued expenses
|
5,016,132 | 2,535,347 | ||||||
|
Dividends payable
|
389,176 | 403,002 | ||||||
|
Finance lease-current
|
217,164 | 95,857 | ||||||
|
Operating lease-current
|
5,885,304 | - | ||||||
|
Current portion of long-term debt, net of unamortized finance costs
|
2,017,345 | 1,325,240 | ||||||
|
Revolving note
|
3,276,230 | 3,844,636 | ||||||
|
Derivative commodity liability
|
375,850 | - | ||||||
|
Total current liabilities
|
24,797,299 | 16,995,611 | ||||||
|
|
||||||||
|
Long-term debt, net of unamortized finance costs
|
12,433,000 | 14,402,179 | ||||||
|
Finance lease-long-term
|
610,450 | 276,355 | ||||||
|
Operating lease-long-term
|
29,701,581 | - | ||||||
|
Contingent consideration
|
- | 15,564 | ||||||
|
Derivative warrant liability
|
1,969,216 | 1,481,692 | ||||||
|
Total liabilities
|
69,511,546 | 33,171,401 | ||||||
|
|
||||||||
|
COMMITMENTS AND CONTINGENCIES (Note 4)
|
- | - | ||||||
|
|
||||||||
|
TEMPORARY EQUITY
|
||||||||
|
Series B Preferred Stock, $0.001 par value per share;
10,000,000 shares authorized, 3,826,055 and 3,604,827 shares issued and outstanding at December 31, 2019 and 2018, respectively with liquidation preference of $11,860,771 and $11,174,964 at December 31, 2019 and 2018, respectively. |
11,006,406 | 8,900,208 | ||||||
|
|
||||||||
|
Series B1 Preferred Stock, $0.001 par value per share;
17,000,000 shares authorized, 9,028,085 and 10,057,597 shares issued and outstanding at December 31, 2019 and 2018, respectively with liquidation preference of $14,083,813 and $15,689,851 at December 31, 2019 and 2018, respectively. |
12,743,047 | 13,279,755 | ||||||
|
|
||||||||
|
Redeemable non-controlling interest
|
4,396,894 | - | ||||||
|
Total Temporary Equity
|
28,146,347 | 22,179,963 | ||||||
|
EQUITY
|
||||||||
|
Series A Convertible Preferred stock, $0.001 par value;
5,000,000 shares authorized and 419,859 and 419,859 shares issued and outstanding at December 31, 2019 and 2018, respectively, with a liquidation preference of $625,590 and $625,590 at December 31, 2019 and December 31, 2018, respectively. |
420 | 420 | ||||||
|
|
||||||||
|
Series C Convertible Preferred stock, $0.001 par value per share;
44,000 shares designated; zero and zero issued and outstanding at December 31, 2019 and 2018, respectively with a liquidation preference of zero and zero at December 31, 2019 and December 31, 2018, respectively. |
- | - | ||||||
|
|
||||||||
|
Common stock, $0.001 par value per share;
750,000,000 shares authorized; 43,395,563 and 40,174,821 issued and outstanding at December 31, 2019 and 2018, respectively. |
43,396 | 40,175 | ||||||
|
Additional paid-in capital
|
81,527,351 | 75,131,122 | ||||||
|
Accumulated deficit
|
(59,246,514 | ) | (47,800,886 | ) | ||||
|
Total Vertex Energy, Inc. stockholders' equity
|
22,324,653 | 27,370,831 | ||||||
|
Non-controlling interest
|
777,373 | 1,438,213 | ||||||
|
Total Equity
|
23,102,026 | 28,809,044 | ||||||
|
TOTAL LIABILITIES, TEMPORARY EQUITY AND EQUITY
|
$ | 120,759,919 | $ | 84,160,408 | ||||
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2019 and 2018
|
|
2019 | 2018 | ||||||
|
Revenues
|
$ | 163,365,565 | $ | 180,720,661 | ||||
|
Cost of revenues (exclusive of depreciation and amortization shown separately below)
|
134,777,113 | 151,314,039 | ||||||
|
Gross profit
|
28,588,452 | 29,406,622 | ||||||
|
|
||||||||
|
Operating expenses:
|
||||||||
|
Selling, general and administrative expenses
|
24,182,407 | 21,927,264 | ||||||
|
Depreciation and amortization
|
7,180,089 | 6,991,010 | ||||||
|
Total operating expenses
|
31,362,496 | 28,918,274 | ||||||
|
Income (loss) from operations
|
(2,774,044 | ) | 488,348 | |||||
|
Other income (expense):
|
||||||||
|
Other income
|
920,197 | 659 | ||||||
|
Gain (loss) on sale of assets
|
(74,111 | ) | 45,553 | |||||
|
Gain (loss) on change in value of derivative warrant liability
|
(487,524 | ) | 763,716 | |||||
|
Interest expense
|
(3,070,071 | ) | (3,281,855 | ) | ||||
|
Total other expense
|
(2,711,509 | ) | (2,471,927 | ) | ||||
|
Loss before income taxes
|
(5,485,553 | ) | (1,983,579 | ) | ||||
|
Income tax benefit
|
- | - | ||||||
|
Net loss
|
(5,485,553 | ) | (1,983,579 | ) | ||||
|
Net income (loss) attributable to non-controlling interest and redeemable non-controlling interest
|
(436,974 | ) | 234,188 | |||||
|
Net loss attributable to Vertex Energy, Inc.
|
(5,048,579 | ) | (2,217,767 | ) | ||||
|
|
||||||||
|
Accretion of redeemable noncontrolling interest to redemption value
|
(2,279,371 | ) | - | |||||
|
Accretion of discount on series B and B-1 Preferred Stock
|
(2,489,722 | ) | (3,132,414 | ) | ||||
|
Dividends on series B and B-1 Preferred Stock
|
(1,627,956 | ) | (2,687,123 | ) | ||||
|
Net loss available to common stockholders
|
$ | (11,445,628 | ) | $ | (8,037,304 | ) | ||
|
|
||||||||
|
Loss per common share
|
||||||||
|
Basic
|
$ | (0.28 | ) | $ | (0.23 | ) | ||
|
Diluted
|
$ | (0.28 | ) | $ | (0.23 | ) | ||
|
Shares used in computing loss per share
|
||||||||
|
Basic
|
40,988,946 | 35,411,264 | ||||||
|
Diluted
|
40,988,946 | 35,411,264 | ||||||
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF EQUITY
FOR THE YEARS ENDING DECEMBER 31, 2019 AND 2018
|
|
Common Stock | Series A Preferred | Series C Preferred | |||||||||||||||||||||||||||||||||||||
|
|
Shares | $.001 Par | Shares | $.001 Par | Shares | $.001 Par | Additional Paid-in Capital | Retained Earnings | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||||||||
|
Balance on December 31, 2017
|
32,658,176 | $ | 32,658 | 453,567 | $ | 454 | 31,568 | $ | 32 | $ | 67,768,509 | $ | (39,816,300 | ) | $ | 399,005 | $ | 28,384,358 | ||||||||||||||||||||||
|
Correction of non-controlling interest
|
- | - | - | - | - | - | - | 52,718 | (52,718 | ) | - | |||||||||||||||||||||||||||||
|
Dividends and Series B and B1 Preferred Stock
|
166,630 | 167 | - | - | - | - | 313,097 | (2,687,123 | ) | - | (2,373,859 | ) | ||||||||||||||||||||||||||||
|
Accretion of discount on Series B and B1 Preferred Stock
|
- | - | - | - | - | - | - | (1,960,013 | ) | - | (1,960,013 | ) | ||||||||||||||||||||||||||||
|
Conversion of Series B Preferred stock to common
|
32,149 | 33 | - | - | - | - | 99,629 | (36,700 | ) | - | 62,962 | |||||||||||||||||||||||||||||
|
Share based compensation expense, total
|
- | - | - | - | - | - | 659,836 | - | - | 659,836 | ||||||||||||||||||||||||||||||
|
Exercise of options to common
|
241 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
|
Conversion of Series A Preferred stock to common
|
33,708 | 34 | (33,708 | ) | (34 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||||||
|
Conversion of Series C Preferred Stock to common
|
3,156,800 | 3,157 | - | - | (31,568 | ) | (32 | ) | (3,125 | ) | - | - | - | |||||||||||||||||||||||||||
|
Conversion of Series B1 Preferred stock to common
|
3,977,117 | 3,976 | - | - | - | - | 6,200,326 | (1,135,701 | ) | - | 5,068,601 | |||||||||||||||||||||||||||||
|
Fixed assets contributed by noncontrolling interest
|
- | - | - | - | - | - | - | - | 857,738 | 857,738 | ||||||||||||||||||||||||||||||
|
Issue of common stock from Nickco contingent consideration
|
150,000 | 150 | - | - | - | - | 92,850 | - | - | 93,000 | ||||||||||||||||||||||||||||||
|
Net income (loss)
|
- | - | - | - | - | - | - | (2,217,767 | ) | 234,188 | (1,983,579 | ) | ||||||||||||||||||||||||||||
|
Balance on December 31, 2018
|
40,174,821 | 40,175 | 419,859 | 420 | - | - | 75,131,122 | (47,800,886 | ) | 1,438,213 | 28,809,044 | |||||||||||||||||||||||||||||
|
Dividends on Series B and B1 Preferred Stock
|
- | - | - | - | - | - | - | (1,627,956 | ) | - | (1,627,956 | ) | ||||||||||||||||||||||||||||
|
Accretion of discount on Series B and B1 Preferred Stock
|
- | - | - | - | - | - | - | (2,169,597 | ) | - | (2,169,597 | ) | ||||||||||||||||||||||||||||
|
Conversion of B1 Preferred Stock to common
|
1,642,317 | 1,642 | - | - | - | - | 2,560,373 | (320,125 | ) | - | 2,241,890 | |||||||||||||||||||||||||||||
|
Share based compensation expense, total
|
- | - | - | - | - | - | 642,840 | - | - | 642,840 | ||||||||||||||||||||||||||||||
|
Exercise of options to common
|
78,425 | 79 | - | - | - | - | 6,996 | - | - | 7,075 | ||||||||||||||||||||||||||||||
|
Distribution to noncontrolling
|
- | - | - | - | - | - | - | - | (285,534 | ) | (285,534 | ) | ||||||||||||||||||||||||||||
|
Adjustment of redeemable noncontrolling interest to redemption value
|
- | - | - | - | - | - | - | (2,217,703 | ) | - | (2,217,703 | ) | ||||||||||||||||||||||||||||
|
Adjustment of carrying amount of noncontrolling interest
|
- | - | - | - | - | - | 970,809 | - | - | 970,809 | ||||||||||||||||||||||||||||||
|
Issue of common stock and warrants
|
1,500,000 | 1,500 | - | - | - | - | 2,215,211 | - | - | 2,216,711 | ||||||||||||||||||||||||||||||
|
Net loss
|
- | - | - | - | - | - | - | (5,110,247 | ) | (375,306 | ) | (5,485,553 | ) | |||||||||||||||||||||||||||
|
Balance on December 31, 2019
|
43,395,563 | $ | 43,396 | 419,859 | $ | 420 | - | $ | - | $ | 81,527,351 | $ | (59,246,514 | ) | $ | 777,373 | $ | 23,102,026 | ||||||||||||||||||||||
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDING DECEMBER 31, 2019 AND 2018
|
|
2019 | 2018 | ||||||
|
Cash flows from operating activities
|
||||||||
|
Net loss
|
$ | (5,485,553 | ) | $ | (1,983,579 | ) | ||
|
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
|
||||||||
|
Stock-based compensation expense
|
642,840 | 659,836 | ||||||
|
Depreciation and amortization
|
7,180,089 | 6,991,010 | ||||||
|
Reduction in allowance for bad debt
|
(320,013 | ) | (299,110 | ) | ||||
|
Gain on commodity derivative contracts
|
2,458,359 | (1,062,682 | ) | |||||
|
Net cash settlement on commodity derivatives
|
(2,841,052 | ) | 369,188 | |||||
|
Gain on sale of assets
|
74,111 | (45,553 | ) | |||||
|
Gain on disposition
|
- | (241,416 | ) | |||||
|
Amortization of debt discount and deferred costs
|
573,908 | 584,336 | ||||||
|
Deferred federal income tax
|
- | - | ||||||
|
Decrease in fair value of derivative liability
|
487,524 | (763,716 | ) | |||||
|
Reduction in contingent consideration
|
(15,564 | ) | (128,116 | ) | ||||
|
Impairment of goodwill
|
- | 176,349 | ||||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Accounts receivable
|
(2,652,864 | ) | 2,143,834 | |||||
|
Inventory
|
1,543,918 | (1,786,555 | ) | |||||
|
Prepaid expenses
|
(257,894 | ) | (597,146 | ) | ||||
|
Accounts payable
|
(1,171,433 | ) | 1,493,324 | |||||
|
Accrued expenses
|
2,480,786 | 42,625 | ||||||
|
Other assets
|
(223,995 | ) | (176,342 | ) | ||||
|
Net cash provided by operating activities
|
2,473,167 | 5,376,287 | ||||||
|
Cash flows from investing activities
|
||||||||
|
Internally developed software
|
(489,093 | ) | - | |||||
|
Proceeds from the sale of assets
|
232,020 | - | ||||||
|
Acquisitions
|
- | (269,826 | ) | |||||
|
Purchase of fixed assets
|
(3,369,367 | ) | (2,499,117 | ) | ||||
|
Net cash used in investing activities
|
(3,626,440 | ) | (2,768,943 | ) | ||||
|
Cash flows from financing activities
|
||||||||
|
Line of credit proceeds (payments), net
|
(568,406 | ) | (746,891 | ) | ||||
|
Proceeds received from issuance of common stock and warrants
|
2,216,711 | - | ||||||
|
Proceeds from exercise of stock options
|
7,075 | - | ||||||
|
Distribution VRM LA
|
(285,534 | ) | - | |||||
|
Contribution received from redeemable noncontrolling interest
|
3,150,000 | - | ||||||
|
Payments on finance leases
|
(165,598 | ) | (77,886 | ) | ||||
|
Proceeds from notes payable
|
2,809,139 | 4,024,964 | ||||||
|
Payments made on notes payable
|
(4,660,120 | ) | (4,063,487 | ) | ||||
|
Net cash provided by (used in) financing activities
|
2,503,267 | (863,300 | ) | |||||
|
Net change in cash and cash equivalents and restricted cash
|
1,349,994 | 1,744,044 | ||||||
|
Cash and cash equivalents and restricted cash at beginning of the year
|
2,849,831 | 1,105,787 | ||||||
|
Cash and cash equivalents and restricted cash at end of year
|
$ | 4,199,825 | $ | 2,849,831 | ||||
|
|
||||||||
|
SUPPLEMENTAL INFORMATION
|
||||||||
|
Cash paid for interest
|
$ | 2,505,852 | $ | 2,722,542 | ||||
|
Cash paid for income taxes
|
$ | - | $ | - | ||||
|
|
||||||||
|
NON-CASH INVESTING AND FINANCING TRANSACTIONS
|
||||||||
|
Conversion of Series A Preferred Stock into common stock
|
$ | - | $ | 34 | ||||
|
Conversion of Series B and B1 Preferred Stock into common stock
|
$ | 2,560,373 | $ | 6,613,052 | ||||
|
Dividends on Series B and B-1 Preferred Stock
|
$ | 1,627,956 | $ | 2,687,123 | ||||
|
Initial adjustment of carrying amount of redeemable noncontrolling interest
|
$ | 970,809 | $ | - | ||||
|
Accretion of discount on Series B and B-1 Preferred Stock
|
$ | 2,489,722 | $ | 3,132,414 | ||||
|
Accretion of redeemable noncontrolling interest to redemption value
|
$ | 2,279,371 | $ | - | ||||
|
Equipment acquired under capital leases
|
$ | 621,000 | $ | 450,098 | ||||
|
Contributed assets Vertex Recovery Management LA from non-controlling interest
|
$ | - | $ | 857,738 | ||||
|
Common restricted shares for Nickco acquisition
|
$ | - | $ | 93,000 | ||||
SOURCE: Vertex Energy, Inc.