Vertex Energy, Inc. (OTCBB: VTNR), a leader in the aggregation, re-refining and processing of distressed petroleum streams such as used oil, transmix, fuel oils and off-specification commercial chemical products, today announced its financial results for the third quarter ended September 30, 2011.

Benjamin P. Cowart, Chief Executive Officer of Vertex Energy said, “Our third quarter results for 2011 represent another improved quarter relative to 2010. We continue to expand our used oil aggregation footprint, our overall sales volume and our patent-pending Thermal-Chemical Extraction Process (“TCEP”) throughput rates compared to last year.”

Financial highlights for the third quarter and the first nine months of 2011 include:
  • Consolidated revenue for the quarter increased 128% to $30.3 million compared to the third quarter 2010 revenue of $13.29;
  • Consolidated revenue for the first nine months of 2011 was $78.4 million, an 85% increase over the first nine months of 2010;
  • Quarterly gross profit increased 148% to $2.03 million relative to Q3 2010;
  • Gross profit for the first nine months of the year increased 146% relative to the same period in 2010 to $6.77 million;
  • Net income improved to $1.03 million for the quarter representing a 393% increase compared to the third quarter of 2010;
  • Net income for the first nine months of 2011 improved to $3.64 million, which represents a 378% increase over the first nine months of 2010;
  • Earnings per fully diluted share increased to $0.06, compared with $0.02 per fully diluted share in the third quarter of 2010;
  • Earnings per fully diluted share for the first nine months of the year was $0.25 compared to $0.06 per fully diluted share in the first nine months of 2010;
  • Overall quarterly sales volumes increased 36% compared to Q3 2010, while volumes for the first nine months of 2011 increased 21% relative to the same period last year.

Mr. Cowart continued, “The third quarter of this year, like the first and second quarters of 2011, illustrated the improvements we’ve made in virtually every area of our business compared to last year. As we continue to aggregate and process greater volumes of product we improve our ability to drive revenue as we strengthen our position within the used oil market.”

Mr. Cowart concluded, “The third quarter of 2011 represents our highest revenue quarter yet. TCEP, which has grown in its contribution to Vertex’s top line over time, continues to run effectively even while we are still implementing improvements to the process. For the remainder of 2011, we expect to continue to exploit our competitive advantage in the combination of used oil aggregation and TCEP operations, while also evaluating potential acquisitions that could enhance our overall competitive positioning within the industry.”

CONFERENCE CALL

As previously announced, Management of Vertex Energy will host a conference call today, Tuesday, November 1, at 11:00 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.

A digital replay will be available by telephone approximately two hours after the call’s completion, and may be accessed by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers, Acct # 380; Replay ID# 381472.

ABOUT VERTEX ENERGY, INC.

Vertex Energy, Inc. (OTCBB: VTNR) is a leader in the aggregation, re-refining and processing of distressed petroleum streams such as used oil, transmix, fuel oils and off-specification commercial chemical products 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.
VERTEX ENERGY, INC.
CONSOLIDATED BALANCE SHEETS
 
  September 30,   December 31,
  2011   2010
(UNAUDITED)
ASSETS
 
Current assets
Cash and cash equivalents $ 1,317,177 $ 744,313
Accounts receivable, net 5,493,475 1,482,510
Accounts receivable- related party 10,967 -
Inventory 8,766,030 3,901,781
Prepaid expenses   111,866   100,485
Total current assets   15,699,515   6,229,089
 
Noncurrent assets
Licensing agreement, net 1,957,967 1,833,966
Fixed assets, net   156,415   76,290
Total noncurrent assets   2,114,382   1,910,256
 
TOTAL ASSETS $ 17,813,897 $ 8,139,345
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Current liabilities
Accounts payable and accrued expenses $ 7,465,838 $ 4,593,199
Accounts payable-related party 1,093,241 407,273
Deposits 1,080,277 -
Line of Credit   1,000,000   -
Total current liabilities   10,639,356   5,000,472
 
Long-term liabilities
Mandatorily redeemable preferred stock, Series B, $.001 par value, 2,000,000 shares authorized, 0 and 600,000 issued and outstanding as of September 30, 2011 and December 31, 2010 (includes $150,000 to a related party)   -   600,000
Total liabilities   10,639,356   5,600,472
 
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 4,452,167 and 4,675,716 issued and outstanding at September 30, 2011 and December 31, 2010, respectively

 

 

4,452

 

 

4,676

Common stock, $0.001 par value per share; 750,000,000 shares authorized; 9,239,398 and 8,370,849 issued and outstanding at September 30, 2011 and December 31, 2010, respectively

 

9,239

 

8,371
Additional paid-in capital 3,275,037 2,275,074
Retained earnings   3,885,813   250,752
Total stockholders’ equity   7,174,541   2,538,873
 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 17,813,897 $ 8,139,345
 
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(UNAUDITED)
   
Three Months Ended

September 30,
Nine Months Ended

September 30,
  2011       2010     2011       2010  
 
Revenues $ 30,301,326 $ 13,288,600 $ 78,383,111 $ 42,428,741
Revenues – related parties   -     1,828     17,978     5,578  
30,301,326 13,290,428 78,401,089 42,434,319
 
Cost of revenues   28,268,785     12,471,821     71,632,067     39,679,178  
 
Gross profit 2,032,541 818,607 6,769,022 2,755,141
 

Selling, general and administrative expenses
 

997,723
   

667,339
   

3,030,461
   

2,118,708
 
 
Income from operations 1,034,818 151,268 3,738,561 636,433
 
Other income (expense)
Other income - 89,333 - 219,333
Interest expense   (3,593 )   (26,521 )   (57,811 )   (89,119 )

Total other income (expense)
  (3,593 )   62,812     (57,811 )   130,214  
 
Income before income tax 1,031,225 214,080 3,680,750 766,647
 
Income tax expense   (3,000 )   (5,500 )   (45,689 )   (5,500 )
 
Net income $ 1,028,225   $ 208,580   $ 3,635,061   $ 761,147  
 
Earnings per common share
Basic $ 0.11 $ 0.03 $ 0.42 $ 0.09
Diluted $ 0.06 $ 0.02 $ 0.25 $ 0.06
 

Shares used in computing earnings per share
Basic 9,187,227 8,315,309 8,722,642 8,276,184
Diluted 15,851,393 13,581,067 14,503,882

 
13,540,455
 
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(UNAUDITED)
 
Nine Months Ended

September 30,

2011
 

September 30,

2010
 
 
Cash flows operating activities
Net income $ 3,635,061 $ 761,147

Adjustments to reconcile net income to cash provided by (used in) operating activities
Stock based compensation expense 94,358 135,923
Depreciation and amortization 120,138 107,781
Changes in assets and liabilities
Accounts receivable (4,010,965 ) (400,132 )
Accounts receivable- related parties (10,967 ) -
Inventory (4,864,249 ) 558,543
Prepaid expenses (11,381 ) 29,253
Accounts payable 2,872,639 (1,216,988 )
Accounts payable-related parties 685,968 39,840
Other deposits   1,080,277     -  
Net cash provided by (used in) operating activities   (409,121 )   15,367  
 
Cash flows from investing activities
Purchase of intangible assets (232,214 ) (260,401 )
Purchase of fixed assets   (92,051 )   (8,653 )
Net cash used in investing activities   (324,265 )   (269,054 )
 
Cash flows from financing activities
Proceeds from sale of Series B Preferred “B” stock - 600,000
Proceeds from exercise of common stock warrants 306,250 33
Line of credit proceeds, net 1,000,000 1,000,000
Payments on due to related party balance   -     (841,855 )
Net cash provided by financing activities   1,306,250     758,178  
 
Net increase in cash and cash equivalents 572,864 504,491
 
Cash and cash equivalents at beginning of the period   744,313     514,136  
 
Cash and cash equivalents at end of period $ 1,317,177   $ 1,018,627  
 
SUPPLEMENTAL INFORMATION
Cash paid for interest during the period $ 78,505   $ 70,719  
Cash paid for income taxes during the period $ 56,000   $ 5,500  
 
NON-CASH TRANSACTIONS
Conversion of Series A Preferred Stock into common stock $ 224   $ 55  

Conversion of Series B Preferred Stock into common stock

$

600,000
 

$

-
 

Copyright Business Wire 2010

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