Nevada
|
001-11476
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94-3439569
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(State or other jurisdiction
of incorporation)
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(Commission File
Number)
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(I.R.S. Employer
Identification No.)
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[__]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[__]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[__]
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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))
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Exhibit No.
|
Description
|
|
99.1*
|
Press Release of Vertex Energy, Inc., dated April 1, 2015
|
VERTEX ENERGY, INC.
|
|
Date: March 31, 2015
|
By: /s/ Chris Carlson
|
Chris Carlson
|
|
Chief Financial Officer
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Exhibit No.
|
Description
|
|
99.1*
|
Press Release of Vertex Energy, Inc., dated April 1, 2015
|
|
·
|
Revenue for the fourth quarter of 2014 vs fourth quarter of 2013 was up 34% to $62.5 million
|
|
·
|
Overall volumes of product sold, an important metric for our business because it illustrates our reach into the market, increased 82% for the fourth quarter of 2014 versus 2013
|
|
·
|
Revenue for 2014 vs 2013 was up 60% to $259 million compared to $162 million in 2013
|
|
·
|
Overall volumes of product sold rose 65% for 2014
|
|
·
|
Pay-for-oil on the street collection level was down 75% year over year and by 90% from January 2014 to January 2015
|
|
·
|
Pay-for-oil to third-parties declined 50% year over year
|
CONSOLIDATED BALANCE SHEETS
|
||||||||
December 31, 2014
|
December 31, 2013
|
|||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
6,017,076
|
$
|
2,678,628
|
||||
Accounts receivable, net
|
9,936,948
|
11,714,813
|
||||||
Accounts receivable, net - related party (Note 10)
|
3,150,000
|
—
|
||||||
Inventory
|
12,620,616
|
8,540,459
|
||||||
Prepaid expenses
|
1,245,307
|
1,161,721
|
||||||
Costs in excess of billings on uncompleted contracts
|
779,285
|
—
|
||||||
Total current assets
|
33,749,232
|
24,095,621
|
||||||
Non-current assets
|
||||||||
Fixed assets
|
59,919,721
|
16,444,346
|
||||||
Less accumulated depreciation
|
(3,758,373
|
)
|
(1,353,170
|
)
|
||||
Net fixed assets
|
56,161,348
|
15,091,176
|
||||||
Notes receivable - related party (Note 11)
|
8,308,000
|
—
|
||||||
Intangible assets, net
|
18,512,960
|
15,098,545
|
||||||
Goodwill
|
4,922,353
|
4,502,743
|
||||||
Deferred financing cost, net
|
2,191,888
|
74,271
|
||||||
Deferred tax assets
|
9,495,000
|
5,684,000
|
||||||
Other assets
|
481,450
|
—
|
||||||
Total non-current assets
|
100,072,999
|
40,450,735
|
||||||
TOTAL ASSETS
|
$
|
133,822,231
|
$
|
64,546,356
|
||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Accounts payable and accrued expenses
|
$
|
21,984,136
|
$
|
14,096,185
|
||||
Capital leases
|
492,755
|
—
|
||||||
Current portion of long-term debt
|
40,136,584
|
1,956,847
|
||||||
Deferred revenue
|
463,210
|
—
|
||||||
Total current liabilities
|
63,076,685
|
16,053,032
|
||||||
Long-term liabilities
|
||||||||
Long-term debt
|
1,867,574
|
6,558,851
|
||||||
Contingent consideration
|
6,069,000
|
3,220,250
|
||||||
Deferred tax liabilities
|
4,189,000
|
378,000
|
||||||
Total liabilities
|
75,202,259
|
26,210,133
|
||||||
Commitments and contingencies
|
||||||||
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 shares authorized and 630,419 and 1,319,002 shares issued
|
||||||||
and outstanding at December 31, 2014 and 2013,
|
||||||||
respectively
|
630
|
1,319
|
||||||
Common stock, $0.001 par value per share;
|
||||||||
750,000,000 shares authorized; 28,108,105 and 21,205,609
|
||||||||
issued and outstanding at December 31, 2014 and
|
||||||||
December 31, 2013, respectively
|
28,109
|
21,206
|
||||||
Additional paid-in capital
|
46,595,472
|
19,579,732
|
||||||
Retained earnings
|
11,995,761
|
17,542,004
|
||||||
Total Vertex Energy, Inc. stockholders' equity
|
58,619,972
|
37,144,261
|
||||||
Non-controlling interest
|
—
|
1,191,962
|
||||||
Total equity
|
58,619,972
|
38,336,223
|
||||||
TOTAL LIABILITIES AND EQUITY
|
$
|
133,822,231
|
$
|
64,546,356
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Revenues
|
$
|
258,904,867
|
$
|
161,967,252
|
$
|
134,573,243
|
||||||
Cost of revenues
|
244,292,715
|
145,628,215
|
124,788,116
|
|||||||||
Gross profit
|
14,612,152
|
16,339,037
|
9,785,127
|
|||||||||
Reduction of contingent liability
|
(5,248,588
|
)
|
(2,238,750
|
)
|
—
|
|||||||
Selling, general and administrative expenses
|
26,073,782
|
11,472,842
|
6,137,301
|
|||||||||
Acquisition related expenses
|
3,813,668
|
53,742
|
1,256,576
|
|||||||||
Inventory impairment charge
|
467,911
|
—
|
—
|
|||||||||
Total selling, general and administrative expenses
|
25,106,773
|
9,287,834
|
7,393,877
|
|||||||||
Income (loss) from operations
|
(10,494,621
|
)
|
7,051,203
|
2,391,250
|
||||||||
Other income (expense)
|
||||||||||||
Other income
|
333,612
|
37,696
|
1,740
|
|||||||||
Gain on bargain purchase
|
6,948,686
|
—
|
—
|
|||||||||
Other expense
|
(10,866
|
)
|
(54,513
|
)
|
—
|
|||||||
Interest expense
|
(2,636,690
|
)
|
(422,954
|
)
|
(135,364
|
)
|
||||||
Total other income (expense)
|
4,634,742
|
(439,771
|
)
|
(133,624
|
)
|
|||||||
Income (loss) before income taxes
|
(5,859,879
|
)
|
6,611,432
|
2,257,626
|
||||||||
Income tax benefit (expense)
|
(11,763
|
)
|
1,700,000
|
1,400,641
|
||||||||
Net income (loss)
|
(5,871,642
|
)
|
8,311,432
|
3,658,267
|
||||||||
Net income (loss) attributable to non-controlling interest
|
325,399
|
(431,962
|
)
|
—
|
||||||||
Net income (loss) attributable to Vertex Energy, Inc.
|
$
|
(5,546,243
|
)
|
$
|
7,879,470
|
$
|
3,658,267
|
|||||
Earnings per common share
|
||||||||||||
Basic
|
$
|
(0.23
|
)
|
$
|
0.44
|
$
|
0.30
|
|||||
Diluted
|
$
|
(0.23
|
)
|
$
|
0.39
|
$
|
0.25
|
|||||
Shares used in computing earnings per share
|
||||||||||||
Basic
|
23,807,780
|
17,830,194
|
12,138,229
|
|||||||||
Diluted
|
23,807,780
|
20,182,829
|
14,866,134
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
|
||||||||||||
2014
|
2013
|
2012
|
||||||||||
Cash flows from operating activities
|
||||||||||||
Net income (loss)
|
$
|
(5,871,642
|
)
|
$
|
8,311,432
|
$
|
3,658,267
|
|||||
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
|
||||||||||||
Stock-based compensation expense
|
332,266
|
175,152
|
178,968
|
|||||||||
Depreciation and amortization
|
4,277,843
|
2,320,735
|
711,555
|
|||||||||
Bargain purchase gain
|
(6,948,686
|
)
|
—
|
—
|
||||||||
Deferred federal income tax
|
—
|
(1,944,000
|
)
|
(1,432,000
|
)
|
|||||||
Inventory impairment charge
|
467,911
|
—
|
—
|
|||||||||
Reduction of contingent consideration
|
(5,248,588
|
)
|
(2,238,750
|
)
|
—
|
|||||||
Changes in operating assets and liabilities:
|
||||||||||||
Accounts receivable
|
714,698
|
(3,468,033
|
)
|
128,184
|
||||||||
Accounts receivable- related parties
|
—
|
—
|
2,459
|
|||||||||
Bad debt expense
|
2,013,167
|
—
|
—
|
|||||||||
Inventory
|
1,891,932
|
(2,670,338
|
)
|
551,438
|
||||||||
Prepaid expenses
|
(12,586
|
)
|
(571,254
|
)
|
(247,337
|
)
|
||||||
Costs in excess of billings
|
(779,285
|
)
|
—
|
—
|
||||||||
Accounts payable and accrued expenses
|
7,255,722
|
4,220,957
|
304,861
|
|||||||||
Deferred revenue
|
463,210
|
—
|
—
|
|||||||||
Accounts payable-related parties
|
—
|
—
|
(620,724
|
)
|
||||||||
Other deposits
|
(81,450
|
)
|
256,729
|
(235,557
|
)
|
|||||||
Net cash provided by (used in) operating activities
|
(1,525,488
|
)
|
4,392,630
|
3,000,114
|
||||||||
Cash flows from investing activities
|
||||||||||||
Bango note receivable
|
(3,150,000
|
)
|
—
|
—
|
||||||||
Refund of asset acquisition
|
—
|
675,558
|
—
|
|||||||||
Acquisition, net
|
(31,114,140
|
)
|
(539,325
|
)
|
(2,013,450
|
)
|
||||||
Purchase of fixed assets
|
(5,940,890
|
)
|
(2,603,369
|
)
|
(1,134,575
|
)
|
||||||
Net cash used in investing activities
|
(40,205,030
|
)
|
(2,467,136
|
)
|
(3,148,025
|
)
|
||||||
Cash flows from financing activities
|
||||||||||||
Line of credit (payments) proceeds, net
|
—
|
(6,750,000
|
)
|
750,000
|
||||||||
Proceeds from exercise of common stock options and warrants
|
370,337
|
60,936
|
112,625
|
|||||||||
Proceeds from primary stock offering
|
17,315,143
|
8,628,346
|
—
|
|||||||||
Payments on contingent consideration
|
(136,662
|
)
|
—
|
—
|
||||||||
Proceeds from notes payable
|
41,309,433
|
—
|
—
|
|||||||||
Payments made on notes payable
|
(11,337,128
|
)
|
(1,994,088
|
)
|
(581,962
|
)
|
||||||
Debt issuance cost
|
(2,452,157
|
)
|
—
|
—
|
||||||||
Net cash provided by (used in) financing activities
|
45,068,966
|
(54,806
|
)
|
280,663
|
||||||||
Net change in cash and cash equivalents
|
3,338,448
|
1,870,688
|
132,752
|
|||||||||
Cash and cash equivalents at beginning of the period
|
2,678,628
|
807,940
|
675,188
|
|||||||||
Cash and cash equivalents at end of period
|
$
|
6,017,076
|
$
|
2,678,628
|
$
|
807,940
|
||||||
SUPPLEMENTAL INFORMATION
|
||||||||||||
Cash paid for interest during the year
|
$
|
2,636,690
|
$
|
396,440
|
$
|
128,838
|
||||||
Cash paid for income taxes during the year
|
$
|
122,763
|
$
|
136,334
|
$
|
23,359
|
||||||
NON-CASH TRANSACTIONS
|
||||||||||||
Conversion of Series A Preferred Stock into common stock
|
$
|
689
|
$
|
194
|
$
|
2,914
|
||||||
Issued 2,701,601 shares of stock to purchase Heartland and Omega
|
$
|
9,004,000
|
$
|
—
|
$
|
—
|