Vertex Energy Reports a 20% Increase in Gross Profit for First Quarter 2013 Compared to First Quarter 2012

  Vertex Energy Reports a 20% Increase in Gross Profit for First Quarter 2013
  Compared to First Quarter 2012

  10% Increase in Output Volume and 9% Per Barrel Margin Improvement for the
                                   Quarter

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

Business Wire

HOUSTON -- May 7, 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 quarter ended March
31, 2013.

Financial highlights for the year include:

  *Gross profit increased 20% from the first quarter of 2012 to $3.47 million
    for the quarter ended March 31, 2013;
  *Company-wide product volume sales increased 10% over Q1 2012;
  *Overall per barrel margin increased by 9% relative to the first quarter of
    last year.

Benjamin P. Cowart, Chief Executive Officer of Vertex Energy said, “We are now
seeing the benefits of our recent acquisition in the form of improved margins.
Our Black Oil Division experienced a 60% increase in gross profit versus the
same quarter a year ago, while our TCEP business experienced an 80%
improvement in gross profit relative to Q1 2012. Additionally, we are showing
improvements in reducing our SG&A expenses quarter over quarter as we were
able to reduce that expense line by 10.2% relative to the fourth quarter of
2012.”

“We are optimistic regarding our business as we move further into 2013 as we
have recently implemented a material process change at TCEP that we believe
will improve both operating efficiency and product quality,” Mr. Cowart added.
“We anticipate the results of this important upgrade at TCEP to become evident
in the third quarter and beyond.”

Mr. Cowart continued, “In addition to increasing the performance of TCEP, we
are continuing to evaluate acquisition possibilities that are both accretive
to the company and allow us to secure greater volumes of feedstock at reduced
prices.” Mr. Cowart concluded, “Our continued development of used oil to fuel
opportunities will be another area of growth for the company in 2013.”

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 May 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 #: 413045.

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

(UNAUDITED)

                                              March 31,       December 31,
                                               2013             2012
ASSETS
                                                                    
Current assets
Cash and cash equivalents                      $   1,316,831    $   807,940
Accounts receivable, net                           7,383,050        7,160,780
Inventory                                          5,907,992        5,870,121
Prepaid expenses                                 519,198        492,467
Total current assets                             15,127,071     14,331,308
                                                                    
Noncurrent assets
Fixed assets, net                                  11,279,296       11,617,368
Intangible assets, net                             15,680,721       15,934,724
Goodwill                                           3,515,977        3,515,977
Deferred federal income taxes                    3,735,000      3,703,000
Total noncurrent assets                          34,210,994     34,771,069
                                                                    
TOTAL ASSETS                                   $  49,338,065   $  49,102,377
                                                                    
LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                    
Current liabilities
Accounts payable and accrued expenses          $   10,641,158   $   8,869,234
Current portion of long-term debt                1,722,400      1,749,329
Total current liabilities                        12,363,558     10,618,563
                                                                    
Long-term liabilities
Long-term debt                                     5,834,651        6,281,457
Contingent consideration                           4,744,850        4,711,000
Line of credit                                     4,500,000        6,750,000
Deferred federal income tax                      363,000        341,000
Total liabilities                                27,806,059     28,702,020
                                                                    
Commitments and contingencies
                                                                    
STOCKHOLDERS’ EQUITY
                                                                    
Preferred stock, $0.001 par value per share:
50,000,000 shares authorized
Series B Preferred stock, $0.001 par value,
2,000,000 authorized
Series A Convertible Preferred stock, $0.001                        
par value, 5,000,000 authorized and
1,428,923 and 1,512,891 issued and                 1,429            
outstanding at March 31, 2013 and December
31, 2012, respectively                                              1,513
Common stock, $0.001 par value per share;
750,000,000 shares authorized; 17,176,001                          
and 16,965,464 issued and outstanding at
March 31, 2013 and December 31, 2012,              17,176           16,965
respectively
Additional paid-in capital                         10,767,272       10,719,345
Retained earnings                                10,746,129     9,662,534
Total stockholders’ equity                       21,532,006     20,400,357
                                                                    
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY     $  49,338,065   $  49,102,377
                                                                    

                                                               
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2013 AND 2012

(UNAUDITED)
                                                           
                                                                             
                                                                             
                                                                             
                                           March 31,          March 31,

                                           2013               2012
                                                                             
Revenues                                   $   33,254,801     $   34,827,939
                                                                             
Cost of revenues                             29,785,043      31,942,875 
                                                                             
Gross profit                                   3,469,758          2,885,064
                                                                             
Selling, general and administrative            2,221,492          1,194,747
expenses
Acquisition related expenses                 36,592          -          
                                                                             
Total selling, general and                   2,258,084       1,194,747  
administrative expenses
                                                                             
Income from operations                       1,211,674       1,690,317  
                                                                             
Other income (expense)
Other income                                   25,289             -
Other expense                                  (40,726    )       -
Interest expense                             (106,140   )     (44        )
Total other income (expense)                 (121,577   )     (44        )
                                                                             
Income before income taxes                     1,090,097          1,690,273
                                                                             
Income tax expense                           (6,502     )     (116,000   )
                                                                             
Net income                                 $  1,083,595     $  1,574,273  
                                                                             
                                                                             
Earnings per common share
Basic                                      $  0.06          $  0.17       
Diluted                                    $  0.05          $  0.10       
                                                                             
Shares used in computing earnings per
common share
Basic                                        17,079,242      9,434,094  
Diluted                                      20,139,182      15,473,017 
                                                                             

                                                              
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2013 AND 2012
(UNAUDITED)
                                                                             
                                             Three Months Ended
                                             March 31,         March 31,

                                             2013              2012
                                                                             
                                                                             
Cash flows from operating activities
Net income                                   $   1,083,595     $   1,574,273
Adjustments to reconcile net income to
cash provided by operating activities
Stock-based compensation expense                 48,054            44,441
Depreciation and amortization                    532,718           40,913
Deferred federal income tax                      (10,000    )      98,000
Changes in assets and liabilities
Accounts receivable                              (222,270   )      (565,497  )
Accounts receivable- related parties             -                 798
Inventory                                        (37,871    )      (549,934  )
Prepaid expenses                                 (26,731    )      27,775
Accounts payable                                 1,771,924         1,926,954
Accounts payable-related parties                 -                 606,588
Deposits                                       -              444,383   
Net cash provided by operating activities      3,139,419      3,648,694 
                                                                             
Cash flows from investing activities
Purchase of intangible assets                    -                 (59,519   )
Acquisition, net                                 (34,122    )      -
Refund of asset acquisition                      675,558           -
Purchase of fixed assets                       (548,229   )    (2,091    )
Net cash provided by (used in) investing       93,207         (61,610   )
activities
                                                                             
Cash flows from financing activities
Line of credit payments, net                     (2,250,000 )
Payments on note payable                         (473,735   )
Proceeds from exercise of common stock         -              34,187    
warrants
Net cash provided by financing activities      (2,723,735 )    34,187    
                                                                             
Net increase in cash and cash equivalents        508,891           3,621,271
                                                                             
Cash and cash equivalents at beginning of      807,940        675,188   
the period
                                                                             
Cash and cash equivalents at end of period   $  1,316,831    $  4,296,459 
                                                                             
SUPPLEMENTAL INFORMATION
Cash paid for interest during the period     $  76,706       $  44        
Cash paid for income taxes during the        $  -            $  10,000    
period
                                                                             
NON-CASH TRANSACTIONS
Conversion of Series A Preferred Stock       $  84           $  34        
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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