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Vertex Energy, Inc. Increases Revenue by 50% in 2010 Compared to 2009, with Increases in Net Income and Gross Margin

^{Published on 2011-03-31 05:35:18 - Market Wire}
 

HOUSTON--([ BUSINESS WIRE ])--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.

"We made tremendous strides this year, as our Thermal Chemical Extraction Process (aTCEP"

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, aWe made tremendous strides this year, as our Thermal Chemical Extraction Process (aTCEPa) 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.a

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

Mr. Cowart added, aFor 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.a

aBoth 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,a concluded Mr. Cowart.

CONFERENCE CALL

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 calla™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.

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 Statesa™ reliance on foreign crude oil. Vertexa™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 managementa™s view of Vertexa™s future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the aActa). 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 Vertexa™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.