0001214782-13-000145.txt : 20130321 0001214782-13-000145.hdr.sgml : 20130321 20130321075922 ACCESSION NUMBER: 0001214782-13-000145 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20130321 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130321 DATE AS OF CHANGE: 20130321 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Vertex Energy Inc. CENTRAL INDEX KEY: 0000890447 STANDARD INDUSTRIAL CLASSIFICATION: REFUSE SYSTEMS [4953] IRS NUMBER: 943439569 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11476 FILM NUMBER: 13706406 BUSINESS ADDRESS: STREET 1: 1331 GEMINI STREET STREET 2: SUITE 250 CITY: HOUSTON STATE: TX ZIP: 77058 BUSINESS PHONE: 866-660-8156 MAIL ADDRESS: STREET 1: 1331 GEMINI STREET STREET 2: SUITE 250 CITY: HOUSTON STATE: TX ZIP: 77058 FORMER COMPANY: FORMER CONFORMED NAME: WORLD WASTE TECHNOLOGIES INC DATE OF NAME CHANGE: 20040830 FORMER COMPANY: FORMER CONFORMED NAME: VOICE POWERED TECHNOLOGY INTERNATIONAL INC DATE OF NAME CHANGE: 19940831 8-K 1 vertex8k032113.htm VERTEX ENERGY, INC. FORM 8-K FOR MARCH 21, 2013 vertex8k032113.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: March 21, 2013
Date of Earliest Event Reported: March 21, 2013

VERTEX ENERGY, INC.
(Exact name of registrant as specified in its charter)

Nevada
000-53619
94-3439569
(State or other jurisdiction
of incorporation)
(Commission File
Number)
(I.R.S. Employer
Identification No.)

1331 Gemini Street
Suite 250
Houston, Texas 77058
(Address of principal executive offices)(Zip Code)

Registrant's telephone number, including area code: (866) 660-8156

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[__]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[__]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[__]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[__]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On March 21, 2013, Vertex Energy, Inc. (“Vertex”) issued a press release and will hold a conference call regarding its financial results for the fiscal year ended December 31, 2012.  A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.

The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 
 
 
Item 9.01 Financial Statements And Exhibits.

Exhibit No.
Description
   
99.1*
Press Release of Vertex Energy, Inc., dated March 21, 2013
   

* Furnished herewith.


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, hereunto duly authorized.
 
 
VERTEX ENERGY, INC.
   
Date: March 21, 2013
By: /s/ Benjamin P. Cowart
 
Benjamin P. Cowart
 
Chief Executive Officer
 
 
 
 
 
 
 
 
 
 
2
 

 
EXHIBIT INDEX
   
Exhibit No.
Description
   
99.1*
Press Release of Vertex Energy, Inc., dated March 21, 2013
   

* Furnished herewith.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3
 
 
 
 
 

 EX-99.1 2 ex99-1.htm PRESS RELEASE ex99-1.htm
Exhibit 99.1
 
 
 

 
Vertex Energy Reports a 23% Increase in Revenue for Fiscal 2012 Compared to 2011
 
Gross Profit Increases 21% on a 22% Increase in Output Volume for the Year
 
 
—Conference Call Today at 10:00 A.M. EDT—
 
 
HOUSTON--(BUSINESS WIRE)--Vertex Energy, Inc. (NASDAQ:VTNR), an environmental services company that recycles industrial waste streams and off-specification commercial chemical products, today announced its financial results for the full year ended December 31, 2012.
 
Financial highlights for the year include:
 
 
·
Revenue increased 23% to $134.6 million for the year ended 2012 compared with $109.7 million in 2011;
 
 
·
Gross profit increased to $9.79 million, a 21% increase over the $8.07 million reported in 2011; and
 
 
·
Company-wide product volume sales increased 22% over 2011.
 
Benjamin P. Cowart, Chief Executive Officer of Vertex Energy said, “2012 was a positive year for us in terms of revenue, gross profit and volume growth.  Additionally, the acquisition we completed in the third quarter of 2012 has us well positioned as a vertically integrated player in our industry and we believe will allow us to improve our margins materially going forward.”
 
“We are optimistic regarding our business as we move into 2013 based not only on the acquisition, but also because of our efforts in expanding the capacity of TCEP.” Mr. Cowart added, “We are in the midst of some improvements at our facility in Baytown, Texas that we believe will not only increase our throughput, but will also improve our end product quality and reduce our operating expenses.  As our experience with TCEP has grown, we are now more aggressively evaluating locations for future TCEP facilities in various parts of the U.S.”
 
Mr. Cowart continued, “In addition to increasing the role of TCEP through expansion and potentially additional locations, we are continuing to evaluate acquisition possibilities that are accretive to the company and also offer the opportunity to secure incremental feedstock at attractive prices.”   Mr. Cowart concluded, “We are hopeful that our continued growth and recent listing on NASDAQ will raise the profile of Vertex Energy in 2013 and beyond.”
 
CONFERENCE CALL
 
As previously announced, management of Vertex Energy will host a conference call today at 10:00 a.m. EDT. Those who wish to participate in the conference call may telephone 877-407-4019 from the U.S. International callers may telephone 201-689-8337, approximately 15 minutes before the call. A webcast will also be available at: www.vertexenergy.com.
 
A digital replay will be available by telephone approximately two hours after the completion of the call until March 31, 2013, and may be accessed by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers, and using the Conference ID #: 410715.
 
 
1
 
ABOUT VERTEX ENERGY, INC.
 
Vertex Energy, Inc. (NASDAQ:VTNR), is a leading environmental services company that recycles industrial waste streams and off-specification commercial chemical products. Its primary focus is recycling used motor oil and other petroleum by-product streams. Vertex Energy purchases these streams from an established network of local and regional collectors and generators. The company also manages the transport, storage and delivery of the aggregated feedstock and product streams to end users, and manages the re-refining of a portion of its aggregated petroleum streams in order to sell them as higher-value end products. Vertex Energy sells its aggregated petroleum streams as feedstock to other re-refineries and fuel blenders or as replacement fuel for use in industrial burners. The re-refining of used motor oil that Vertex Energy manages takes place at the company’s facility, which uses a proprietary Thermal Chemical Extraction Process ("TCEP") technology. Based in Houston, Texas, Vertex Energy also has offices in Georgia and California. More information on the company can be found at www.vertexenergy.com.
 
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," "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 also takes no obligation to update or correct information prepared by third parties that are not paid for by Vertex Energy.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2
 

VERTEX ENERGY, INC.
  
CONSOLIDATED BALANCE SHEETS
  
   
   
December 31,
    
December 31,
  
   
2012
    
2011
  
             
ASSETS
            
             
Current assets
            
  Cash and cash equivalents
  
$
807,940
    
$
675,188
  
  Accounts receivable, net
    
7,160,780
      
5,436,006
  
  Accounts receivable- related party
    
-
      
2,459
  
  Inventory
    
5,870,121
      
6,408,780
  
  Prepaid expenses
    
492,467
      
151,821
  
      Total current assets
    
14,331,308
      
12,674,254
  
                 
Noncurrent assets
                
  Licensing agreement, net
    
-
      
1,929,549
  
  Fixed assets, net
    
11,617,368
      
124,168
  
  Intangible assets, net
    
15,934,724
      
-
  
  Goodwill
    
3,515,977
      
-
  
  Deferred tax assets
    
3,703,000
      
2,006,000
  
      Total noncurrent assets
    
34,771,069
      
4,059,717
  
                 
TOTAL ASSETS
  
$
49,102,377
    
$
16,733,971
  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
                 
 Current liabilities
                
   Accounts payable and accrued expenses
  
$
8,869,234
    
$
6,464,193
  
   Accounts payable-related party
    
-
      
620,724
  
   Deposits
    
-
      
235,557
  
   Current portion of long-term debt
    
1,749,329
      
-
  
        Total current liabilities
    
10,618,563
      
7,320,474
  
                 
Long-term liabilities
                
Long-term debt
    
6,281,457
      
-
  
    Contingent consideration
    
4,711,000
      
-
  
    Line of credit
    
6,750,000
      
-
  
    Deferred tax liabilities
    
341,000
      
76,000
  
        Total liabilities
    
28,702,020
      
7,396,474
  
                 
Commitments and contingencies
                
                 
STOCKHOLDERS’ EQUITY
                
                 
Preferred stock, $0.001 par value per share:
                
50,000,000 shares authorized
                
Series A Convertible Preferred stock, $0.001 par value,
    5,000,000 authorized and 1,512,891 and 4,426,639  issued
    and outstanding at December 31, 2012 and  December 31,
    2011, respectively
    
     1,513
      
        4,427
  
Common stock, $0.001 par value per share;
                
   750,000,000 shares authorized; 16,965,464 and 9,414,926
   issued and outstanding at December 31, 2012 and
   December 31, 2011, respectively
    
  16,965
      
  9,415
  
Additional paid-in capital
    
10,719,345
      
3,319,388
  
Retained earnings
    
9,662,534
      
6,004,267
  
      Total stockholders’ equity
    
20,400,357
      
9,337,497
  
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  
$
49,102,377
    
$
16,733,971
  
 
 
 
3
 
 
VERTEX ENERGY, INC.
  
CONSOLIDATED STATEMENTS OF OPERATIONS
  
DECEMBER 31, 2012 AND 2011
  
             
             
   
2012
    
2011
  
             
  Revenues
  
$
134,573,243
    
$
109,722,279
  
  Revenues-related parties
    
-
      
17,978
  
     
134,573,243
      
109,740,257
  
                 
  Cost of revenues
    
124,788,116
      
101,666,187
  
                 
  Gross profit
    
9,785,127
      
8,074,070
  
                 
  Selling, general and administrative expenses
    
6,137,301
      
4,099,682
  
  Acquisition related expenses
    
1,256,576
      
-
  
                 
   Total selling, general and administrative expenses
    
7,393,877
      
4,099,682
  
                 
 Income from operations
    
2,391,250
      
3,974,388
  
                 
 Other income (expense)
                
     Other income
    
1,740
      
-
  
     Interest expense
    
(135,364
)
    
(62,686
)
Total other income (expense)
    
(133,624
)
    
(62,686
)
                 
Income before income taxes
    
2,257,626
      
3,911,702
  
                 
Income tax benefit
    
1,400,641
      
1,841,813
  
                 
  Net income
  
$
3,658,267
    
$
5,753,515
  
                 
                 
  Earnings per common share
                
        Basic
  
$
0.30
    
$
0.65
  
        Diluted
  
$
0.25
    
$
0.39
  
                 
  Shares used in computing earnings per share
                
         Basic
    
12,138,229
      
8,884,681
  
         Diluted
    
14,866,134
      
14,775,339
  
 
 
4
 

 
VERTEX ENERGY, INC.
  
CONSOLIDATED STATEMENTS OF CASH FLOWS
  
YEARS ENDED DECEMBER 31, 2012 AND 2011
  
       
   
 
2012
    
2011
  
 
             
             
Cash flows operating activities
            
  Net income
  
$
3,658,267
    
$
5,753,515
  
  Adjustments to reconcile net income to cash
                
 provided by (used in) operating activities
                
         Stock based compensation expense
    
178,968
      
138,859
  
         Depreciation and amortization
    
711,555
      
161,048
  
         Deferred federal income tax
    
(1,432,000
)
    
(1,930,000
)
     Changes in assets and liabilities
                
       Accounts receivable
    
128,184
      
(3,953,496
)
       Accounts receivable- related parties
    
2,459
      
(2,459
)
       Inventory
    
551,438
      
(2,506,999
)
       Prepaid expenses and other current assets
    
(247,337
)
    
(51,336
)
       Accounts payable and accrued expenses
    
304,861
      
1,870,994
  
       Accounts payable-related parties
    
(620,724
)
    
213,451
  
       Other deposits
    
(235,557
)
    
235,557
  
  Net cash provided by (used in) operating activities
    
3,000,114
      
(70,866
)
                 
Cash flows from investing activities
                
   Purchase of intangible assets
    
(209,061
)
    
(241,454
)
   Acquisition, net
    
(1,804,389
)
    
-
  
   Purchase of fixed assets
    
(1,134,575
)
    
(63,055
)
   Net cash used in investing activities
    
(3,148,025
)
    
(304,509
)
                 
Cash flows from financing activities
                
  Line of credit proceeds, net
    
750,000
      
-
  
  Proceeds from exercise of common stock warrants
    
112,625
      
306,250
  
  Borrowing from (payments to) note payable
    
(581,962
)
    
-
  
  Net cash provided by financing activities
    
280,663
      
306,250
  
                 
Net change in cash and cash equivalents
    
132,752
      
(69,125
)
                 
Cash and cash equivalents at beginning of the period
    
675,188
      
744,313
  
                 
Cash and cash equivalents at end of period
  
$
807,940
    
$
675,188
  
                 
SUPPLEMENTAL INFORMATION
                
   Cash paid for interest during the period
  
$
128,838
    
$
80,756
  
   Cash paid for income taxes during the period
  
$
23,359
    
$
107,000
  
                 
NON-CASH TRANSACTIONS
                
   Conversion of Series A Preferred Stock into common stock
  
$
2,914
    
$
249
  
   Conversion of Series B Preferred Stock into common stock
  
$
-
    
$
600,000
  
 

 
5
 
 
Contacts
 
Porter, LeVay & Rose, Inc.
Marlon Nurse, D.M., 212-564-4700
VP – Investor Relations
or
Vertex Energy
Matthew Lieb, 310-230-5450
COO 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6