Vertex Energy, Inc. (OTCBB:VTNR), a leader in the aggregation, recycling and processing of distressed hydrocarbon streams, today announced its financial results for the fiscal quarter ended September 30, 2010.
“The third quarter results for 2010 represented our third consecutive quarter of positive net income,” said Benjamin P. Cowart, Vertex’s Chief Executive Officer. Mr. Cowart continued, “We increased our revenue for the quarter by more than 10% compared with the same period last year. The performance of both our Black Oil Division and our Refining & Marketing Division, exclusive of our Thermal-Chemical Extraction Process (“TCEP”) technology operations, showed marked improvement over the second quarter of this year. We made the strategic decision to not operate TCEP during the third quarter of this year in order to take advantage of the strong used oil market and the short-term opportunity to process recovered material from the Gulf Coast oil spill during this period. We continued to incur some of the fixed costs of our TCEP operation during the period, despite the fact that we were not operating the process, which had a negative impact on our Refining & Marketing Division’s overall performance.” Mr. Cowart added, “We were able to utilize this deliberately instituted down time to implement a number of critical process improvements that are demonstrating excellent early results that we believe bode well for our future performance.”
For the quarter ended September 30, 2010, consolidated revenue increased 10.4% to $13.29 million, compared with $12.04 million in the same period in 2009. Gross profit for the third quarter of 2010 was $818,607, compared with $1,692,474 in the same period in 2009. Net income for the third quarter was $208,580, or $0.03 per share, compared with $709,558, or $0.09 per share in the year-ago quarter.
The Refining & Marketing Division produced revenue of $6.68 million for the quarter ending September 30, 2010 versus $6.17 million of revenue during the same period in 2009, representing an increase of over 8%. Gross profit in the Refining & Marketing Division was $7,802 for the third quarter 2010, compared with $744,928 in the year-ago third quarter. The licensed TCEP technology, a business initiative within the Refining & Marketing Division since July of 2009, did not operate during the third quarter of 2010 due to market opportunities within the Black Oil Division for used motor oil feedstock and the near -term Gulf Coast oil spill clean up opportunity. The processing of the recovered material from the Gulf Coast required utilization of certain components of the TCEP process.