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.

The Black Oil Division generated revenue for the quarter ended September 30, 2010 of $6.61 million compared to $5.87 million during the same period in 2009, an increase of over 13%. Gross profit in this division was $810,805 during the third quarter of 2010, compared with $947,546 in the year-ago third quarter.

“The third quarter showed improved performance relative to last year in several areas. We were also able to implement some key improvements to our TCEP operations that we believe will improve the financial performance of that aspect of our business in the fourth quarter of this year and beyond,” concluded Mr. Cowart.

CONFERENCE CALL

As previously announced, Management of Vertex Energy will host a conference call today 10:00 a.m. EST. Those who wish to participate in the conference call may telephone 877-407-4019 from the U.S.; international callers may telephone 201-689-8337, approximately 15 minutes before the call. A digital replay will be available by telephone approximately two hours after the call’s completion for two weeks, and may be accessed by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers, Acct# 380; Replay ID# 360089.

ABOUT VERTEX ENERGY, INC.

Vertex Energy, Inc. (OTCBB:VTNR) is a leader in the aggregation, recycling and processing of distressed hydrocarbon streams thereby reducing the United States’ reliance on foreign crude oil. Vertex’s focus, as a participant in the alternative energy and environmentally friendly investment sectors, is on creating increased value in the products it manages and produces through a variety of strategies and technologies that facilitate the re-refining of used oil and off specification commercial chemical products into higher value commodities. By creating higher value products from distressed hydrocarbon streams, the Company is positioned to produce both financial and environmental benefits. Vertex is based in Houston, Texas with offices in Georgia and California. More information on the Company can be found at www.vertexenergy.com.

This press release may contain forward-looking statements, including information about management’s view of Vertex’s future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the “Act”). In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act, and are subject to the safe harbor created by the Act. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of Vertex, its divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are included from time to time in documents Vertex files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on Vertex’s future results. The forward-looking statements included in this press release are made only as of the date hereof. Vertex cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Vertex undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by Vertex.
 
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
(UNAUDITED)
   
Three Months Ended

September 30,
Nine Months Ended

September 30,
  2010       2009   2010       2009  
 
Revenues $ 13,288,600 $ 12,035,430 $ 42,428,741 $ 25,010,184
Revenues – related parties   1,828     -   5,578     147,871  
13,290,428 12,035,430 42,434,319 25,158,055
 
Cost of revenues   12,471,821     10,342,956   39,679,178     23,384,453  
 
Gross profit   818,607     1,692,474   2,755,141     1,773,602  
 

Selling, general and administrative expenses (exclusive of merger related expenses)

667,339

982,916

2,118,708

2,143,222
 

 

 

 

 
Merger related expenses   -     -   -     249,397  

Total selling, general andadministrative expenses
  667,339    

982,916
  2,118,708    

2,392,619
 
 

Income (loss) fromoperations
  151,268     709,558   636,433     (619,017 )
 
Other income (expense)
Other income 89,333 - 219,333 -
Income tax expense (5,500 ) (5,500 )
Interest expense   (26,521 )   -   (89,119 )   -  
Total other income (expense)   57,312     -   124,714     -  
 

Provision for (benefit from)income taxes
  -    

-
 

-
    -  
 
Net income (loss) $ 208,580   $ 709,558 $ 761,147   $ (619,017 )
 
Earnings per common share
Basic $ 0.03 $ 0.09 $ 0.09 $ (0.09 )
Diluted $ 0.02 $ 0.05 $ 0.06 $ (0.09 )
 

Shares used in computingearnings per share
Basic 8,315,309 8,252,391 8,276,184 7,184,261
Diluted 13,581,067 13,736,445 13,540,455

 
7,184,261
 
 
VERTEX ENERGY, INC.
CONSOLIDATED BALANCE SHEETS
 
  September 30,   December 31,
  2010     2009  
 
ASSETS (unaudited)
 
Current assets
Cash and cash equivalents $ 1,018,627 $ 514,136
Accounts receivable, net 2,588,555 2,188,423
Inventory 2,420,339 2,978,883
Prepaid expenses   86,288     115,541  
Total current assets   6,113,809     5,796,983  
 
Noncurrent assets
Licensing agreement, net 1,840,017 1,675,197
Fixed assets, net   72,260     75,807  
Total noncurrent assets   1,912,277     1,751,004  
 
TOTAL ASSETS $ 8,026,086   $ 7,547,987  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Current liabilities
Accounts payable $ 3,835,569 $ 5,052,558
Accounts payable-related party 567,571 527,731
Line of credit 1,000,000 -
Due to related party   -     841,855  
Total current liabilities   5,403,140     6,422,144  
 
Long-term liabilities

Mandatorily redeemable preferred stock, Series B, $.001 par value, 2,000,000 shares authorized, 600,000 and 0 issued and outstanding as of September 30, 2010 and December 31, 2009, respectively (includes $150,000 to a related party)
  600,000     -  
Total liabilities   6,003,140     6,422,144  
 
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 4,700,273 and 4,755,666 issued

  and outstanding at September 30, 2010 and December 31,

  2009 respectively

 

 

4,700

 

 

4,756
Common stock, $0.001 par value per share;

  750,000,000 shares authorized; 8,329,978 and 8,254,256

  issued and outstanding at September 30, 2010 and

  December 31, 2009 respectively

 

8,330

 

8,254
Additional paid-in capital 2,226,443 2,090,507
Accumulated deficit   (216,527 )   (977,674 )
Total stockholders’ equity   2,022,946     1,125,843  
 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 8,026,086   $ 7,547,987  
 

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