Nevada
|
001-11476
|
94-3439569
|
(State or other jurisdiction
of incorporation)
|
(Commission File
Number)
|
(I.R.S. Employer
Identification No.)
|
[__]
|
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))
|
Exhibit No.
|
Description
|
|
99.1*
|
Press Release of Vertex Energy, Inc., dated May 18, 2015
|
VERTEX ENERGY, INC.
|
|
Date: May 18, 2015
|
By: /s/ Chris Carlson
|
Chris Carlson
|
|
Chief Financial Officer
|
Exhibit No.
|
Description
|
|
99.1*
|
Press Release of Vertex Energy, Inc., dated May 18, 2015
|
![]() Vertex Energy, Inc.
|
Investor Relations Contact
Marlon Nursem DM
Senior VP - Investor Relations
212-564-4700
|
|
·
|
Revenue for the 2015 first quarter versus the 2014 first quarter was down 20% to $37.7 million with a net loss of $0.60 per share
|
|
·
|
Adjusted EBITDA totaling a loss of $5.9 million
|
|
·
|
Overall volumes of product sold, which illustrates our reach into the market, increased 32% for the first quarter of 2015 versus the first quarter of 2014
|
|
·
|
Our street collections increased 67% year over year
|
|
·
|
The Company signed a new lease at the re-refinery plant located in Churchill County, Nevada
|
Reconciliation of net income (loss) to Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)*
|
For the Three Months Ended
|
||||||||
March 31, 2015
|
March 31, 2014
|
|||||||
Net income (loss)
|
$ | (16,966,455 | ) | $ | 862,165 | |||
Add (deduct):
|
||||||||
Interest Expense
|
1,531,180 | 75,811 | ||||||
Depreciation and amortization
|
1,556,982 | 732,677 | ||||||
Income tax expense
|
5,306,000 | - | ||||||
Provision for doubtful accounts
|
2,650,000 | - | ||||||
Subtotal
|
11,044,162 | 808,488 | ||||||
EBITDA*
|
$ | (5,922,293 | ) | $ | 1,670,653 |
|
·
|
EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments;
|
|
·
|
EBITDA does not reflect changes in, or cash requirements for, working capital needs;
|
|
·
|
EBITDA does 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 non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and
|
|
·
|
Other companies in this industry may calculate EBITDA differently than Vertex does, limiting its usefulness as a comparative measure.
|
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
||||||||
March 31,
2015
|
December 31,
2014
|
|||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
3,680,841
|
$
|
6,017,076
|
||||
Accounts receivable, net
|
10,855,044
|
9,936,948
|
||||||
Current portion of notes receivable
|
1,000,000
|
3,150,000
|
||||||
Inventory
|
11,525,259
|
12,620,616
|
||||||
Prepaid expenses
|
1,109,618
|
1,245,307
|
||||||
Costs in excess of billings
|
—
|
779,285
|
||||||
Total current assets
|
28,170,762
|
33,749,232
|
||||||
Noncurrent assets
|
||||||||
Fixed assets, at cost
|
60,157,402
|
59,919,721
|
||||||
Less accumulated depreciation
|
(4,754,911
|
)
|
(3,758,373
|
)
|
||||
Net fixed assets
|
55,402,491
|
56,161,348
|
||||||
Notes receivable
|
8,308,000
|
8,308,000
|
||||||
Intangible assets, net
|
18,077,020
|
18,512,960
|
||||||
Goodwill
|
4,922,353
|
4,922,353
|
||||||
Deferred financing cost. net
|
2,067,384
|
2,191,888
|
||||||
Deferred federal income tax
|
—
|
9,495,000
|
||||||
Other assets
|
481,450
|
481,450
|
||||||
Total noncurrent assets
|
89,258,698
|
100,072,999
|
||||||
TOTAL ASSETS
|
$
|
117,429,460
|
$
|
133,822,231
|
||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Accounts payable and accrued expenses
|
$
|
22,645,753
|
$
|
21,984,136
|
||||
Capital leases
|
450,871
|
492,755
|
||||||
Current portion of long-term debt
|
39,860,931
|
40,136,584
|
||||||
Derivative liability
|
577,440
|
—
|
||||||
Revolving note
|
1,437,500
|
—
|
||||||
Deferred revenue
|
2,910,940
|
463,210
|
||||||
Total current liabilities
|
67,883,435
|
63,076,685
|
||||||
Long-term liabilities
|
||||||||
Long-term debt
|
1,735,294
|
1,867,574
|
||||||
Contingent consideration
|
6,069,000
|
6,069,000
|
||||||
Deferred federal income tax
|
—
|
4,189,000
|
||||||
Total liabilities
|
75,687,729
|
75,202,259
|
||||||
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 authorized and 612,943 and 630,419 issued
|
||||||||
and outstanding at March 31, 2015 and December 31,
|
||||||||
2014, respectively
|
613
|
630
|
||||||
Common stock, $0.001 par value per share;
|
||||||||
750,000,000 shares authorized; 28,125,581 and 28,108,105
|
||||||||
issued and outstanding at March 31, 2015 and
|
||||||||
December 31, 2014, respectively
|
28,126
|
28,109
|
||||||
Additional paid-in capital
|
46,683,686
|
46,595,472
|
||||||
Retained earnings (accumulated deficit)
|
(4,970,694
|
)
|
11,995,761
|
|||||
Total Equity
|
$
|
41,741,731
|
$
|
58,619,972
|
||||
TOTAL LIABILITIES AND EQUITY
|
$
|
117,429,460
|
$
|
133,822,231
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||
THREE MONTHS ENDED MARCH 31, 2015 AND 2014
|
||||||||
(UNAUDITED)
|
||||||||
Three Months Ended
March 31,
|
||||||||
2015
|
2014
|
|||||||
Revenues
|
$
|
37,684,339
|
$
|
47,349,658
|
||||
Cost of revenues
|
37,605,869
|
42,205,170
|
||||||
Gross profit
|
78,470
|
5,144,488
|
||||||
Operating expenses:
|
||||||||
Selling, general and administrative expenses
(exclusive of acquisition related expenses)
|
7,329,597
|
3,587,489
|
||||||
Acquisition related expenses
|
157,678
|
600,412
|
||||||
Total operating expenses
|
7,487,275
|
4,187,901
|
||||||
Income (loss) from operations
|
(7,408,805
|
)
|
956,587
|
|||||
Other income (expense):
|
||||||||
Provision for doubtful accounts
|
(2,650,000
|
)
|
—
|
|||||
Other income
|
8
|
370
|
||||||
Other expense
|
(70,478
|
)
|
—
|
|||||
Interest expense
|
(1,531,180
|
)
|
(75,811
|
)
|
||||
Total other income (expense)
|
(4,251,650
|
)
|
(75,441
|
)
|
||||
Income (loss) before income tax
|
(11,660,455
|
)
|
881,146
|
|||||
Income tax benefit (expense)
|
(5,306,000
|
)
|
—
|
|||||
Net income (loss)
|
$
|
(16,966,455
|
)
|
$
|
881,146
|
|||
Net loss attributable to non-controlling interest
|
$
|
—
|
$
|
(18,981
|
)
|
|||
Net income (loss) attributable to Vertex Energy, Inc.
|
$
|
(16,966,455
|
)
|
$
|
862,165
|
|||
Earnings (loss) per common share
|
||||||||
Basic
|
$
|
(0.60
|
)
|
$
|
0.04
|
|||
Diluted
|
$
|
(0.60
|
)
|
$
|
0.04
|
|||
Shares used in computing earnings per share
|
||||||||
Basic
|
28,118,396
|
21,232,949
|
||||||
Diluted
|
28,118,396
|
23,738,018
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
THREE MONTHS ENDED MARCH, 2015 AND 2014
|
||||||||
(UNAUDITED)
|
||||||||
Three Months Ended
|
||||||||
March 31,
2015
|
March 31,
2014
|
|||||||
Cash flows from operating activities
|
||||||||
Net income (loss)
|
$
|
(16,966,455
|
)
|
$
|
881,146
|
|||
Adjustments to reconcile net income to cash
provided by operating activities
|
||||||||
Stock based compensation expense
|
88,214
|
51,224
|
||||||
Depreciation and amortization
|
1,556,982
|
732,677
|
||||||
Payment-in-kind interest
|
577,440
|
—
|
||||||
Gain on acquisition
|
—
|
—
|
||||||
Loss on asset sale
|
70,478
|
—
|
||||||
Deferred federal income tax
|
5,306,000
|
—
|
||||||
Changes in operating assets and liabilities
|
||||||||
Accounts receivable
|
(418,097
|
)
|
297,587
|
|||||
Allowance for doubtful accounts
|
2,650,000
|
—
|
||||||
Inventory
|
1,095,357
|
986,095
|
||||||
Prepaid expenses
|
(364,309
|
)
|
(728,644
|
)
|
||||
Costs in excess of billings
|
779,285
|
—
|
||||||
Accounts payable
|
661,617
|
1,192,312
|
||||||
Deferred revenue
|
2,447,730
|
—
|
||||||
Net cash provided by (used in) operating activities
|
(2,515,758
|
)
|
3,412,397
|
|||||
Cash flows from investing activities
|
||||||||
Purchase of fixed assets
|
(312,659
|
)
|
(780,616
|
)
|
||||
Proceeds from asset sales
|
4,500
|
—
|
||||||
Net cash used in investing activities
|
(308,159
|
)
|
(780,616
|
)
|
||||
Cash flows from financing activities
|
||||||||
Proceeds from sale of stock
|
—
|
(3,500
|
)
|
|||||
Proceeds from note payable
|
—
|
351,921
|
||||||
Proceeds from revolving note
|
1,437,500
|
—
|
||||||
Origination of note payable
|
(449,818
|
)
|
(666,386
|
)
|
||||
Notes receivable
|
(500,000
|
)
|
—
|
|||||
Proceeds from exercise of common stock options and warrants
|
—
|
24,000
|
||||||
Net cash provided by (used in) financing activities
|
487,682
|
(293,965
|
)
|
|||||
Net change in cash and cash equivalents
|
(2,336,235
|
)
|
2,337,816
|
|||||
Cash and cash equivalents at beginning of the period
|
6,017,076
|
2,678,628
|
||||||
Cash and cash equivalents at end of period
|
$
|
3,680,841
|
$
|
5,016,444
|
||||
SUPPLEMENTAL INFORMATION
|
||||||||
Cash paid for interest
|
$
|
953,115
|
$
|
75,811
|
||||
NON-CASH INVESTING AND FINANCING TRANSACTIONS
|
||||||||
Conversion of Series A Preferred Stock into common stock
|
$
|
17
|
$
|
40
|
||||
Note payable for acquisition of E-Source interest
|
$
|
—
|
$
|
854,050
|
||||
Additional paid in capital for acquisition of E-Source interest
|
$
|
—
|
$
|
231,260
|
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