Via Renewables, Inc. Q2 FY2023 earnings call

Keith Maxwell:

• Second quarter adjusted EBITDA was $12 million, down from prior year's $13.3 million.
• Increased RCEs organically for the second quarter in a row, reduced debt, and increased liquidity.
• Added 39,000 RCEs in 2023 Q2 vs 16,000 in 2022 Q2.
• Average quarterly attrition remained at 3.1% year-over-year.
• Focus in second half on customer growth in organic and mass market channels, potential inorganic acquisition; work towards strengthening balance sheet by paying down debt, conserving cash, investing in future growth.

Mike Barajas:

• Adjusted EBITDA was $12 million vs prior year's $13.3 million (including $4.4 million add-back).
• Retail gross margin was $30.7 million vs $23.7 million last year, due to higher unit margins in retail electricity and natural gas segments.
• Retail electricity gross margin $23 million vs $16.7 million last year; retail natural gas gross margin $7.6 million vs $7 million last year.
• G&A expenses $16.7 million vs $13.6 million last year, primarily due to increased sales, marketing, and legal expenses.
• Total RCEs 346,000 vs 368,000 in 2022 Q2.
• Attrition 3.1% flat year-over-year, due to lower attrition on commercial book and higher attrition on mass market book.
• Net income $19.1 million or $1.67 per fully diluted share vs $12.5 million or $0.92 per fully diluted share last year, mainly due to mark-to-market gain on hedges ($15.9 million vs $3.7 million last year).
• Income tax expense increased to $5.2 million in 2023 Q2 from $2.7 million in 2022. Paid quarterly cash dividend on Series A preferred stock on July 17 and declared $0.75922 per share dividend on preferred stock to be paid on October 16.

In the second quarter, retail gross margin was $30.7 million. Retail electricity segment gross margin was $23 million (compared to $16.7 million in the second quarter of last year), due to higher unit margins partially offset by lower volumes. Retail natural gas segment gross margin was $7.6 million (compared to $7 million in the second quarter of last year), due to slightly higher unit margins and volumes. Total RCEs were 346,000 compared to 368,000 for the second quarter of 2022. Adjusted EBITDA was $12 million, a $1.3 million decrease from the prior year's $13.3 million (which included a $4.4 million add-back related to Winter Storm Uri).

Keith Maxwell:

• Continue to focus on customer growth in organic and mass market channels.
• Explore potential inorganic acquisition.
• Work towards strengthening balance sheet by paying down debt, conserving cash, and investing in future growth to provide long-term shareholder value.