Nevada
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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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[__]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[__]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[__]
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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.
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Description
|
|
99.1*
|
Press Release of Vertex Energy, Inc., dated November 6, 2013
|
VERTEX ENERGY, INC.
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|
Date: November 5, 2013
|
By: /s/ Chris Carlson
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Chris Carlson
|
|
Chief Financial Officer
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Exhibit No.
|
Description
|
|
99.1*
|
Press Release of Vertex Energy, Inc., dated November 6, 2013
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·
|
Gross profit increased by approximately 53% relative to the same quarter last year to $4.88 million;
|
·
|
Revenue increased by 29% relative to the third quarter of last year to $46.8 million;
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·
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Overall volumes of product sold increased by 19% for the third quarter of 2013 versus the third quarter of 2012;
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·
|
Our overall per barrel margin increased by 29% relative to the same quarter a year ago;
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·
|
Income before income taxes improved by 486% for the quarter; and
|
·
|
Net income improved by 11% relative to the third quarter of last year to $2.33 million.
|
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
531,226
|
$
|
807,940
|
||||
Accounts receivable, net
|
7,955,601
|
7,160,780
|
||||||
Inventory
|
8,208,121
|
5,870,121
|
||||||
Prepaid expenses
|
571,392
|
492,467
|
||||||
Total current assets
|
17,266,340
|
14,331,308
|
||||||
Noncurrent assets
|
||||||||
Fixed assets, net
|
11,963,374
|
11,617,368
|
||||||
Intangible assets, net
|
15,036,770
|
15,934,724
|
||||||
Goodwill
|
3,515,977
|
3,515,977
|
||||||
Deferred federal income taxes
|
3,863,000
|
3,703,000
|
||||||
Total noncurrent assets
|
34,379,121
|
34,771,069
|
||||||
TOTAL ASSETS
|
$
|
51,645,461
|
$
|
49,102,377
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities
|
||||||||
Accounts payable and accrued expenses
|
$
|
12,385,290
|
$
|
8,869,234
|
||||
Line of credit
|
3,500,000
|
-
|
||||||
Current portion of long-term debt
|
1,700,000
|
1,749,329
|
||||||
Total current liabilities
|
17,585,290
|
10,618,563
|
||||||
Long-term liabilities
|
||||||||
Long-term debt
|
4,958,333
|
6,281,457
|
||||||
Contingent consideration
|
2,861,000
|
4,711,000
|
||||||
Line of credit
|
-
|
6,750,000
|
||||||
Deferred federal income tax
|
357,000
|
341,000
|
||||||
Total liabilities
|
25,761,623
|
28,702,020
|
||||||
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 1,323,837 and 1,512,891 issued
and outstanding at September 30, 2013 and December 31,
2012, respectively
|
1,324
|
1,513
|
||||||
Common stock, $0.001 par value per share;
|
||||||||
750,000,000 shares authorized; 17,804,724 and 16,965,464
issued and outstanding at September 30, 2013 and
December 31, 2012, respectively
|
17,805
|
16,965
|
||||||
Additional paid-in capital
|
10,897,515
|
10,719,345
|
||||||
Retained earnings
|
14,967,194
|
9,662,534
|
||||||
Total stockholders’ equity
|
25,883,838
|
20,400,357
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
51,645,461
|
$
|
49,102,377
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Revenues
|
$
|
46,830,647
|
$
|
36,195,570
|
$
|
115,196,850
|
$
|
102,316,702
|
||||||||
Cost of revenues
|
41,945,879
|
33,011,934
|
104,287,660
|
95,497,261
|
||||||||||||
Gross profit
|
4,884,768
|
3,183,636
|
10,909,190
|
6,819,441
|
||||||||||||
Reduction of contingent liability
|
-
|
-
|
(1,850,000
|
)
|
-
|
|||||||||||
Selling, general and administrative expenses
(exclusive of acquisition related expenses)
|
2,495,748
|
1,610,146
|
7,129,673
|
3,724,120
|
||||||||||||
Acquisition related expenses
|
-
|
1,154,612
|
-
|
1,154,612
|
||||||||||||
Total selling, general and
administrative expenses
|
2,495,748
|
2,764,758
|
7,129,673
|
4,878,732
|
||||||||||||
Income from operations
|
2,389,020
|
418,878
|
5,629,517
|
1,940,709
|
||||||||||||
Other income (expense)
|
||||||||||||||||
Other income
|
-
|
949
|
-
|
1,582
|
||||||||||||
Other expense
|
(3,949
|
)
|
-
|
(31,690
|
)
|
-
|
||||||||||
Interest expense
|
(95,488
|
)
|
(28,972
|
)
|
(314,627
|
)
|
(29,016
|
)
|
||||||||
Total other (expense)
|
(99,437
|
)
|
(28,023
|
)
|
(346,317
|
)
|
(27,434
|
)
|
||||||||
Income before income tax
|
2,289,583
|
390,855
|
5,283,200
|
1,913,275
|
||||||||||||
Income tax benefit
|
40,211
|
1,714,813
|
21,460
|
1,607,641
|
||||||||||||
Net income
|
$
|
2,329,794
|
$
|
2,105,668
|
$
|
5,304,660
|
$
|
3,520,916
|
||||||||
Earnings per common share
|
||||||||||||||||
Basic
|
$
|
0.13
|
$
|
0.17
|
$
|
0.30
|
$
|
0.35
|
||||||||
Diluted
|
$
|
0.12
|
$
|
0.13
|
$
|
0.27
|
$
|
0.25
|
||||||||
Shares used in computing earnings per share
|
||||||||||||||||
Basic
|
17,715,786
|
12,255,372
|
17,402,501
|
10,085,206
|
||||||||||||
Diluted
|
19,997,257
|
16,484,023
|
19,766,263
|
14,358,691
|
Nine Months Ended
|
||||||||
September 30,
2013
|
September 30,
2012
|
|||||||
Cash flows from operating activities
|
||||||||
Net income
|
$
|
5,304,660
|
$
|
3,520,916
|
||||
Adjustments to reconcile net income to cash
provided by operating activities
|
||||||||
Stock-based compensation expense
|
123,571
|
124,626
|
||||||
Depreciation and amortization
|
1,615,657
|
180,402
|
||||||
Deferred federal income tax
|
(144,000
|
)
|
(1,639,000
|
)
|
||||
Reduction of contingent liability
|
(1,850,000
|
)
|
-
|
|||||
Changes in operating assets and liabilities
|
||||||||
Accounts receivable
|
(794,821
|
)
|
(1,073,778
|
)
|
||||
Accounts receivable-other
|
-
|
(127,162
|
)
|
|||||
Accounts receivable- related parties
|
-
|
2,459
|
||||||
Inventory
|
(2,338,000
|
)
|
(85,658
|
)
|
||||
Prepaid expenses
|
(78,925
|
)
|
23,313
|
|||||
Accounts payable
|
3,516,056
|
1,005,932
|
||||||
Accounts payable-related parties
|
-
|
296,795
|
||||||
Deposits
|
-
|
(235,557
|
)
|
|||||
Net cash provided by operating activities
|
5,354,198
|
1,993,288
|
||||||
Cash flows from investing activities
|
||||||||
Purchase of intangible assets
|
-
|
(209,061
|
)
|
|||||
Acquisition, net
|
(67,972
|
)
|
(1,319,015
|
)
|
||||
Refund of asset acquisition
|
675,558
|
-
|
||||||
Purchase of fixed assets
|
(1,671,295
|
)
|
(77,232
|
)
|
||||
Net cash used in investing activities
|
(1,063,709
|
)
|
(1,605,308
|
)
|
||||
Cash flows from financing activities
|
||||||||
Line of credit payments, net
|
(3,250,000
|
)
|
-
|
|||||
Payments on note payable
|
(1,372,453
|
)
|
(3,777
|
)
|
||||
Proceeds from exercise of common stock warrants
|
55,250
|
91,625
|
||||||
Net cash provided by (used in) financing activities
|
(4,567,203
|
)
|
87,848
|
|||||
Net increase (decrease) in cash and cash equivalents
|
(276,714
|
)
|
475,828
|
|||||
Cash and cash equivalents at beginning of the period
|
807,940
|
675,188
|
||||||
Cash and cash equivalents at end of period
|
$
|
531,226
|
$
|
1,151,016
|
||||
SUPPLEMENTAL INFORMATION
|
||||||||
Cash paid for interest during the period
|
$
|
323,956
|
$
|
1,005
|
||||
Cash paid for income taxes during the period
|
$
|
122,001
|
$
|
6,187
|
||||
NON-CASH TRANSACTIONS
|
||||||||
Conversion of Series A Preferred Stock into common stock
|
$
|
189
|
$
|
78
|