Vertex Energy, Inc. Increases Revenue By 50% In 2010 Compared To 2009, With Increases In Net Income And Gross Margin

Vertex Energy, Inc. (OTCBB:VTNR), a leader in the aggregation, recycling and processing of distressed hydrocarbon streams, today announced its financial results for the fourth quarter and full year ended December 31, 2010.

Financial highlights for the unaudited fourth quarter include:
  • Revenue increased 16% to $15.7 million for the fourth quarter 2010, compared with $13.5 million in the year-ago quarter
  • Gross profit increased 55% to $1.5 million compared with $956,000 in the year-ago quarter

Audited financial highlights for the year include:
  • Revenue increased 50% to $58.1 million for the year ended 2010 compared with $38.7 million in 2009
  • Gross profit increased to $4.2 million, a 55% increase over the $2.7 million reported in 2009
  • Net income improved to $1.2 million or $0.09 per fully diluted share, compared with a net loss of $609,000 or $0.08 per share in 2009
  • Volumes increased 17% over 2009
  • Margin per barrel increased by 32% compared with 2009

Benjamin P. Cowart, Chief Executive Officer of Vertex Energy said, “We made tremendous strides this year, as our Thermal Chemical Extraction Process (“TCEP”) technology played an increasingly important role in our success. Launched during the second half of 2009, TCEP became our key focus in 2010 as we concentrated on improving the throughput, reliability and end product quality. We began to benefit from these improvements during the second half of the year, as it was one of the contributing factors leading to our increased revenue, margin and net income for the year. We also strengthened our balance sheet, and entered into a new banking relationship with Bank of America that we expect will help support our corporate growth.”

“With continued expected increases in our Refining and Marketing Division, we expect the first quarter of 2011 to produce material improvements over last year’s first quarter, as well as sequential improvements over the fourth quarter of 2010 that we just reported,” Mr. Cowart said.

Mr. Cowart added, “For the remainder of 2011, we expect to continue to focus on making enhancements to the TCEP process, and utilizing this technology to capture additional margin from used motor oil. We also expect to continue to evaluate new ways to capitalize on our competitive advantage in aggregating distressed hydrocarbon feedstock streams, and will analyze other re-refining technologies that we believe could contribute to our business. Additionally, we will continue to review acquisitions that could enhance our business, either by increasing our ability to aggregate feedstock or improve our ability to upgrade various feedstock streams.”

“Both our fourth quarter results and our full year performance in 2010 highlight the improvements we have made in our business from a year ago. With no debt and cash being generated, we expect this trend to continue in 2011. We believe that these improvements, combined with increasing throughput and the existing positive market conditions, makes Vertex well-positioned for material improvements in the first quarter of 2011 and beyond,” concluded Mr. Cowart.


As previously announced, Management of Vertex Energy will host a conference call today at 10:00 a.m. EDT. 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# 369629.


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

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.
DECEMBER 31, 2010 AND 2009
2010   2009  
Current assets
Cash and cash equivalents $ 744,313 $ 514,136
Accounts receivable, net 1,482,510 2,188,423
Inventory 3,901,781 2,978,883
Prepaid expenses   100,485   115,541  
Total current assets   6,229,089   5,796,983  
Noncurrent assets
Licensing agreement, net 1,833,966 1,675,197
Fixed assets, net   76,290   75,807  
Total noncurrent assets   1,910,256   1,751,004  
TOTAL ASSETS $ 8,139,345 $ 7,547,987  
Current liabilities
Accounts payable and accrued expenses $ 4,593,199 $ 5,052,558
Accounts payable-related party 407,273 527,731
Due to related party   -   841,855  
Total current liabilities   5,000,472   6,422,144  
Long-term liabilities
Mandatorily redeemable preferred stock, Series B, $0.001 par value, 2,000,000 shares authorized, 600,000 and 0 issued and outstanding as of December 31, 2010 and December 31, 2009, respectively (includes $150,000 to a related party)   600,000   -  
Total liabilities   5,600,472   6,422,144  
Commitments and contingencies
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 4,675,716 and 4,755,666 issued and outstanding at December 31, 2010 and 2009 respectively








Common stock, $0.001 par value per share; 750,000,000 shares authorized; 8,370,849 and 8,254,256 issued and outstanding at December 31, 2010 and 2009 respectively




Additional paid-in capital 2,275,074 2,090,507
Retained earnings (deficit)   250,752   (977,674 )
Total stockholders’ equity   2,538,873   1,125,843  
DECEMBER 31, 2010 AND 2009
  2010     2009  
Revenues $ 58,135,407 $ 38,555,976
Revenues-related parties   5,578     147,871  
58,140,985 38,703,847
Cost of revenues   53,901,041     35,974,295  
Gross profit   4,239,944     2,729,552  
Selling, general and administrative expenses 3,093,307 3,089,539
Merger related expenses   -     249,397  
Total selling, general and administrative expenses   3,093,307     3,338,936  
Income (loss) from operations   1,146,637     (609,384 )
Other income (expense)
Other income 219,333 -
Interest expense   (116,747 )   -  
Total other income (expense)   102,586     -  
Income (loss) before income taxes 1,249,223 (609,384 )
Income tax expense   (20,797 )   -  
Net income (loss) $ 1,228,426   $ (609,384 )
Earnings per common share
Basic $ 0.15   $ (0.08 )
Diluted $ 0.09   $ (0.08 )
Shares used in computing earnings per share
Basic   8,294,436     7,453,958  
Diluted   14,128,864     7,453,958  


Cash flows operating activities
Net income (loss) $ 1,228,426 $ (609,384 )

Adjustments to reconcile net income (loss) to cash provided by operating activities
Stock based compensation expense 182,321 324,589
Depreciation and amortization 145,977 65,572
Changes in assets and liabilities
Accounts receivable, net 705,913 (1,954,704 )
Accounts receivable- related parties - 21,232
Due from partnership - 265,219
Inventory (922,898 ) (2,397,911 )
Prepaid expenses 15,056 (45,378 )
Accounts payable and accrued expenses (459,358 ) 5,713,388
Accounts payable – related parties   (120,459 )   (668,942 )
Net cash provided by operating activities   774,978     713,681  
Cash flows from investing activities
Purchase of intangible assets (288,015 ) (1,731,889 )
Purchase of fixed assets   (17,214 )   (84,114 )
Net cash used by investing activities   (305,229 )   (1,816,003 )
Cash flows from financing activities
Proceeds from sale of Preferred “B” shares 600,000 -
Proceeds from exercise of common stock warrants and options 2,283 264
Distributions to limited partners prior to merger - (51,391 )
Proceeds from recapitalization - 2,408,114
Payments on amounts due to related party balance   (841,855 )   (758,145 )
Net cash provided (used) by financing activities   (239,572 )   1,598,842  
Net increase in cash and cash equivalents 230,177 496,520
Cash and cash equivalents at beginning of the period   514,136     17,616  
Cash and cash equivalents at end of period $ 744,313   $ 514,136  
Cash paid for interest during the period $ 95,874   $ 89,682  
Cash paid for income taxes during the period $ 10,500   $ -  

Assumption of liability from related party in connection with recapitalization
$ -   $ 1,600,000  

Capital contributions by related party in connection with recapitalization
$ -   $ 594,898  

Copyright Business Wire 2010

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