Vertex Energy Reports a 23% Increase in Revenue for Fiscal 2012 Compared to 2011

  Vertex Energy Reports a 23% Increase in Revenue for Fiscal 2012 Compared to
  2011

  Gross Profit Increases 21% on a 22% Increase in Output Volume for the Year

                  —Conference Call Today at 10:00 A.M. EDT—

Business Wire

HOUSTON -- March 21, 2013

Vertex Energy, Inc. (NASDAQ:VTNR), an environmental services company that
recycles industrial waste streams and off-specification commercial chemical
products, today announced its financial results for the full year ended
December 31, 2012.

Financial highlights for the year include:

  *Revenue increased 23% to $134.6 million for the year ended 2012 compared
    with $109.7 million in 2011;
  *Gross profit increased to $9.79 million, a 21% increase over the $8.07
    million reported in 2011; and
  *Company-wide product volume sales increased 22% over 2011.

Benjamin P. Cowart, Chief Executive Officer of Vertex Energy said, “2012 was a
positive year for us in terms of revenue, gross profit and volume growth.
Additionally, the acquisition we completed in the third quarter of 2012 has us
well positioned as a vertically integrated player in our industry and we
believe will allow us to improve our margins materially going forward.”

“We are optimistic regarding our business as we move into 2013 based not only
on the acquisition, but also because of our efforts in expanding the capacity
of TCEP.” Mr. Cowart added, “We are in the midst of some improvements at our
facility in Baytown, Texas that we believe will not only increase our
throughput, but will also improve our end product quality and reduce our
operating expenses. As our experience with TCEP has grown, we are now more
aggressively evaluating locations for future TCEP facilities in various parts
of the U.S.”

Mr. Cowart continued, “In addition to increasing the role of TCEP through
expansion and potentially additional locations, we are continuing to evaluate
acquisition possibilities that are accretive to the company and also offer the
opportunity to secure incremental feedstock at attractive prices.” Mr. Cowart
concluded, “We are hopeful that our continued growth and recent listing on
NASDAQ will raise the profile of Vertex Energy in 2013 and beyond.”

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 webcast
will also be available at: www.vertexenergy.com.

A digital replay will be available by telephone approximately two hours after
the completion of the call until March 31, 2013, and may be accessed by
dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers,
and using the Conference ID #: 410715.

ABOUT VERTEX ENERGY, INC.

Vertex Energy, Inc. (NASDAQ:VTNR), is a leading environmental services company
that recycles industrial waste streams and off-specification commercial
chemical products. Its primary focus is recycling used motor oil and other
petroleum by-product streams. Vertex Energy purchases these streams from an
established network of local and regional collectors and generators. The
company also manages the transport, storage and delivery of the aggregated
feedstock and product streams to end users, and manages the re-refining of a
portion of its aggregated petroleum streams in order to sell them as
higher-value end products. Vertex Energy sells its aggregated petroleum
streams as feedstock to other re-refineries and fuel blenders or as
replacement fuel for use in industrial burners. The re-refining of used motor
oil that Vertex Energy manages takes place at the company’s facility, which
uses a proprietary Thermal Chemical Extraction Process ("TCEP") technology.
Based in Houston, Texas, Vertex Energy also has 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 Energy'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 Energy, 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 Energy
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 Energy's future
results. The forward-looking statements included in this press release are
made only as of the date hereof. Vertex Energy cannot guarantee future
results, levels of activity, performance or achievements. Accordingly, you
should not place undue reliance on these forward-looking statements. Finally,
Vertex Energy 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 Energy.


VERTEX ENERGY, INC.
CONSOLIDATED BALANCE SHEETS

                                               December       December
                                                 31,              31,
                                                 2012             2011
                                                                  
ASSETS
                                                                  
Current assets
Cash and cash equivalents                        $ 807,940        $ 675,188
Accounts receivable, net                           7,160,780        5,436,006
Accounts receivable- related party                 -                2,459
Inventory                                          5,870,121        6,408,780
Prepaid expenses                                  492,467         151,821
Total current assets                              14,331,308      12,674,254
                                                                    
Noncurrent assets
Licensing agreement, net                           -                1,929,549
Fixed assets, net                                  11,617,368       124,168
Intangible assets, net                             15,934,724       -
Goodwill                                           3,515,977        -
Deferred tax assets                               3,703,000       2,006,000
Total noncurrent assets                           34,771,069      4,059,717
                                                                    
TOTAL ASSETS                                     $ 49,102,377     $ 16,733,971
                                                                    
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                    
Current liabilities
Accounts payable and accrued expenses            $ 8,869,234      $ 6,464,193
Accounts payable-related party                     -                620,724
Deposits                                           -                235,557
Current portion of long-term debt                 1,749,329       -
Total current liabilities                         10,618,563      7,320,474
                                                                    
Long-term liabilities
Long-term debt                                     6,281,457        -
Contingent consideration                           4,711,000        -
Line of credit                                     6,750,000        -
Deferred tax liabilities                          341,000         76,000
Total liabilities                                 28,702,020      7,396,474
                                                                    
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
1,512,891 and 4,426,639 issued and                 1,513            4,427
outstanding at December 31, 2012 and
December 31, 2011, respectively
Common stock, $0.001 par value per share;
750,000,000 shares authorized; 16,965,464
and 9,414,926 issued and outstanding at            16,965           9,415
December 31, 2012 and December 31, 2011,
respectively
Additional paid-in capital                         10,719,345       3,319,388
Retained earnings                                 9,662,534       6,004,267
Total stockholders’ equity                        20,400,357      9,337,497
                                                                    
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY       $ 49,102,377     $ 16,733,971
                                                                    

VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
DECEMBER 31, 2012 AND 2011
                                                          
                                                                             
                                           2012                2011
                                                                             
Revenues                                   $ 134,573,243       $ 109,722,279
Revenues-related parties                    -                  17,978
                                             134,573,243         109,740,257
                                                                             
Cost of revenues                            124,788,116        101,666,187
                                                                             
Gross profit                                 9,785,127           8,074,070
                                                                             
Selling, general and administrative          6,137,301           4,099,682
expenses
Acquisition related expenses                1,256,576          -
                                                                             
Total selling, general and                  7,393,877          4,099,682
administrative expenses
                                                                             
Income from operations                      2,391,250          3,974,388
                                                                             
Other income (expense)
Other income                                 1,740               -
Interest expense                            (135,364    )      (62,686     )
Total other income (expense)                (133,624    )      (62,686     )
                                                                             
Income before income taxes                   2,257,626           3,911,702
                                                                             
Income tax benefit                          1,400,641          1,841,813
                                                                             
Net income                                 $ 3,658,267         $ 5,753,515
                                                                             
                                                                             
Earnings per common share
Basic                                      $ 0.30              $ 0.65
Diluted                                    $ 0.25              $ 0.39
                                                                             
Shares used in computing earnings per
share
Basic                                       12,138,229         8,884,681
Diluted                                     14,866,134         14,775,339
                                                                             

VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2012 AND 2011
                                          
                                             2012             2011
                                                                             
                                                                             
Cash flows operating activities
Net income                                   $ 3,658,267        $ 5,753,515
Adjustments to reconcile net income to
cash provided by (used in) operating
activities
Stock based compensation expense               178,968            138,859
Depreciation and amortization                  711,555            161,048
Deferred federal income tax                    (1,432,000 )       (1,930,000 )
Changes in assets and liabilities
Accounts receivable                            128,184            (3,953,496 )
Accounts receivable- related parties           2,459              (2,459     )
Inventory                                      551,438            (2,506,999 )
Prepaid expenses and other current             (247,337   )       (51,336    )
assets
Accounts payable and accrued expenses          304,861            1,870,994
Accounts payable-related parties               (620,724   )       213,451
Other deposits                                (235,557   )      235,557
Net cash provided by (used in) operating      3,000,114         (70,866    )
activities
                                                                             
Cash flows from investing activities
Purchase of intangible assets                  (209,061   )       (241,454   )
Acquisition, net                               (1,804,389 )       -
Purchase of fixed assets                      (1,134,575 )      (63,055    )
Net cash used in investing activities         (3,148,025 )      (304,509   )
                                                                             
Cash flows from financing activities
Line of credit proceeds, net                   750,000            -
Proceeds from exercise of common stock         112,625            306,250
warrants
Borrowing from (payments to) note             (581,962   )      -
payable
Net cash provided by financing                280,663           306,250
activities
                                                                             
Net change in cash and cash equivalents        132,752            (69,125    )
                                                                             
Cash and cash equivalents at beginning        675,188           744,313
of the period
                                                                             
Cash and cash equivalents at end of          $ 807,940          $ 675,188
period
                                                                             
SUPPLEMENTAL INFORMATION
Cash paid for interest during the period     $ 128,838          $ 80,756
Cash paid for income taxes during the        $ 23,359           $ 107,000
period
                                                                             
NON-CASH TRANSACTIONS
Conversion of Series A Preferred Stock       $ 2,914            $ 249
into common stock
Conversion of Series B Preferred Stock       $ -                $ 600,000
into common stock
                                                                             

Contact:

Porter, LeVay & Rose, Inc.
Marlon Nurse, D.M., 212-564-4700
VP – Investor Relations
or
Vertex Energy
Matthew Lieb, 310-230-5450
COO
 
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