Vertex Energy (NASDAQ: VTNR) reported Q1 EPS of ($0.15), $0.09 worse than the analyst estimate of ($0.06). Revenue for the quarter came in at $39.3 million versus the consensus estimate of $41.95 million.

Management Commentary

“We experienced strong organic growth in direct UMO collections during the first quarter, a trend that continued into April,” stated Benjamin P. Cowart, President and CEO of Vertex. “Given the growing spread between direct and third-party supply, we remain focused on further expanding our collections network in new and existing markets. During the last three years we have increased our total collections by nearly 50%, positioning us as one of the leading UMO collections operations in the United States.”

“During April, our realized margin per gallon improved above levels evidenced in the first quarter, as UMO feedstock costs declined and prices for marine fuels and base oils increased,” continued Cowart. “Effective May 1, we enacted a 18% price increase on our base oil products, a move that we expect will support improved margin capture as we transition into the second half of the year.”

“On a trailing twelve-month basis, Adjusted EBITDA and free cash flow have improved materially from the prior-year period. Looking ahead, we remain focused on ensuring safe and reliable refining operations, while growing our direct UMO collections and optimizing production of low sulfur fuel oil at our Marrero refinery ahead of the IMO 2020 transition,” concluded Cowart.

For earnings history and earnings-related data on Vertex Energy (VTNR) click here.