Via Renewables, Inc. Q4 FY2022 earnings call

Keith Maxwell's Remarks - 1. 2022 Initiatives: 2022 started with intensified organic sales efforts, spending approximately $4.5 million more on customer acquisitions than the prior year to grow the customer base and added ~67,000 RCEs through organic channels. 2. Acquisitions: Announced an agreement to acquire 18,700 RCEs in the Florida gas market despite compressed industry margins from rapidly rising commodities. 3. Credit Agreement: A new credit agreement provided opportunities to grow the business and pursue M&A in a volatile energy market. ### Mike Barajas' Remarks - 1. Quarterly Financials: Fourth quarter adjusted EBITDA increased due to retail gross margin, though offset partially by higher G&A expenses. 2. Full Year Financials: Full year adjusted EBITDA decreased due to lower gross margin, higher G&A expenses, and increased customer acquisition spend. 3. G&A Details: G&A in 2022 was ~$61.9 million, up from $44.3 million in 2021, driven by higher employee costs and bad debt expense. 4. Balance Sheet: Ended 2022 with net debt of $86.3 million and total liquidity of $76.9 million, with dividends paid in late 2022 and early 2023.

In the fourth quarter of 2022, Via Renewables achieved adjusted EBITDA of $12.6 million, compared to $11.6 million in the prior year's fourth quarter. Retail gross margin for the quarter was $31.9 million, up from $25.2 million in the same period last year. For the full year 2022, adjusted EBITDA ended at $51.8 million, down from $80.7 million in 2021. Full year retail gross margin was $114.8 million, compared to $132.5 million in 2021. The company spent $5.9 million on customer acquisition costs in 2022, versus $1.4 million in the prior year. At year-end 2022, Via Renewables had 331,000 RCEs, down from 408,000 at the end of 2021, due to rising attrition and proactive nonrenewal of less profitable C&I customers. Revenue contribution details: The decrease in adjusted EBITDA in 2022 was primarily attributed to lower gross margin, increased G&A expenses, and higher customer acquisition spend.

- 2023 Outlook: The outlook for 2023 is optimistic as the company is in a position to offer more competitive prices now that utilities have raised rates across the industry. ### - Customer Attraction: Via Renewables is attracting customers at a faster pace than in years. ### - Sustainability Commitment: The company continues its commitment towards a more sustainable future.

- Forward-Looking Statements: The discussion may contain forward-looking statements based on assumptions that may not materialize, and actual results may differ materially. ### - SEC Filings: Investors are urged to review the safe harbor statement in the earnings release and risk factors in SEC filings.

Q: A: Q: A: