DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

During the third quarter of 2021, the Company initiated and began executing a strategic plan to sell its used motors oils business (“UMO Business”). An investment banking advisory services firm was engaged and actively marketed this segment.

On February 1, 2023, the Company sold all of its equity interests in Vertex OH, which owned our Heartland refinery located in Columbus, Ohio (the “Heartland Refinery”) for $87.2 million net cash settlement. The sale also included all property and assets owned by Vertex OH, including inventory associated with the Heartland Refinery, and all real and leased property and permits owned by Vertex OH, and all used motor oil collection and recycling assets and operations owned by Vertex OH.

For the three months ended March 31, 2023, the Company presented the Heartland Operations as discontinued operations.

The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations for the three months ended March 31, 2023 (in thousands):

	Three Months Ended March 31,
		2023
Revenues		$	7,366
Cost of revenues (exclusive of depreciation shown separately below)		4,589
Depreciation and amortization attributable to costs of revenues		124
Gross profit		2,653
Operating expenses:
Selling, general and administrative expenses (exclusive of depreciation shown separately below)		632
Depreciation and amortization expense attributable to operating expenses		21
Total operating expenses		653
Income before income tax		2,000
Income tax expense		(528)
Gain on sale of discontinued operations, net of $17,218 of tax		48,868
Income from discontinued operations, net of tax		$	50,340