Sequential quarterly meter and RCE growth of 27% and 34%, respectively

NEWARK, N.J., May 8, 2023 /PRNewswire/ -- Genie Energy, Ltd. (NYSE: GNE, GNEPRA), a leading retail energy and renewable energy solutions provider, today announced results for its first quarter ended March 31, 2023.

Genie Energy, Ltd. is a leading retail energy and renewable energy solutions provider.

Michael Stein, chief executive officer of Genie Energy, commented: "We had a very strong first quarter delivering excellent bottom line results and efficiently expanding our retail customer portfolio.  While our results in the year ago quarter were exceptional, this quarter was among the strongest in our history highlighted by the robust growth in our customer book.

"Genie Retail Energy (GRE) was well-positioned to benefit from the reduction in energy market price volatility this quarter and, in combination with our vigorous and cost-efficient marketing activities, achieved significant year-over-year RCE growth of 36%.  

"Genie Renewables (GREW) continued to invest in promising growth opportunities during the quarter, adding new projects to its development pipeline while building out its platform to drive and support additional expansion. In April, we broke ground on our first community solar generation project, which we expect to complete this year."

First Quarter 2023 Highlights 
(versus 1Q22 unless otherwise noted; excludes discontinued operations of Genie Retail Energy International (GREI) for all periods)

  • Revenue increased 22.5% to $105.3 million from $85.9 million;
  • Gross profit decreased 29.3% to $33.3 million from $47.1 million, and gross margin decreased to 31.6% from 54.8%;
  • Income from operations decreased 58.2% to $11.3 million from $27.0 million;
  • Adjusted EBITDA1 decreased 55.6% to $12.4 million from $28.0 million;
  • GRE income from operations and Adjusted EBITDA decreased to $16.4 million and $16.8 million from $30.2 million and $30.5 million, respectively;
  • Net income attributable to GNE common stockholders and diluted income per share (EPS) decreased to $14.3 million and $0.54 from $17.5 million and $0.67, respectively;
  • Cash, restricted cash and marketable equity securities increased to $113.7 million at March 31, 2023, from $105.1 million at December 31, 2022;
  • Genie Energy will pay a $0.075 quarterly dividend to class A and B common stockholders on May 30, 2023 with a record date of May 19th;
  • Redeemed $1.0 million of preferred stock.

1 Adjusted EBITDA for all periods presented is a non-GAAP measure intended to provide useful information that supplements the core operating results in accordance with GAAP of Genie Energy or the relevant segment. Please refer to the Reconciliation of Non-GAAP Financial Measure at the end of this release for an explanation of Adjusted EBITDA, as well as reconciliations to its most directly comparable GAAP measure.

 

Select Financial Metrics: Three Months Ended March 31, 2023 versus 2022*

 (in $M except for EPS)

1Q23

1Q22

Change

Total Revenue

$105.3

$85.9

22.5 %

Genie Retail

$101.4

$83.9

20.9 %

   Electricity

$74.5

$59.4

25.4 %

   Natural Gas

$26.9

$24.5

9.9 %

Genie Renewables

$3.9

$2.0

89.2 %

Gross Margin

31.6 %

54.8 %

(2321)bps

Genie Retail

32.1 %

55.5 %

(2345)bps

Genie Renewables

19.3 %

25.7 %

(634)bps

Income from Operations

$11.3

$27.0

(58.2) %

Operating Margin

10.7 %

31.4 %

(2067)bps

Net Income from Continuing Operations

$11.3

$18.7

(39.3) %

Income (Loss) Attributable to Discontinued Operations, net of tax

$3.1

($1.9)

($5.0)

Net Income Attributable to GNE Common Stockholders

$14.3

$17.5

(18.5) %

Diluted Earnings Per Share

$0.54

$0.67

(20.0) %

Adjusted EBITDA1

$12.4

$28.0

(55.6) %

Cash Flow Provided by Continuing Operating Activities

$1.5

$18.2

(91.6) %





nm = not measurable/meaningful




*Numbers may not add due to rounding




** GREI operations have been classified as a discontinued operation and its results excluded from current and historical results


 

Segment Highlights
Genie Retail Energy (GRE)
GRE accelerated customer acquisition during the quarter as market volatility subsided and customers were highly receptive to targeted marketing initiatives.

Sequentially, meters and RCEs served increased by 87,000 and 77,000 to 349,000 and 352,000, respectively, as of March 31, 2023. Average monthly churn decreased to 4.4% sequentially from 5.5% in the fourth quarter of 2022.

 

             Genie Retail (GRE) Select Performance Metrics: 2023 versus 2022  as of 3/31/2023**



RCEs and Meters in 1000s

1Q23

4Q22

1Q22

Sequential
Change

YoY

 Change







Total RCEs

353

262

260

34.5 %

35.6 %

   Electricity

276

181

182

52.4 %

51.3 %

   Natural Gas

77

81

78

-5.4 %

-1.4 %







Total Meters

349

275

286

26.9 %

22.0 %

   Electricity

271

196

209

37.7 %

29.5 %

   Natural Gas

78

79

77

-1.7 %

1.3 %







Gross Adds

129

47

44

174.4 %

192.2 %

Churn***

4.4 %

5.5 %

4.5 %

(100)bps

(10)bps







**    GREI operations have been classified as a discontinued operation and its results excluded from current and historical results

***  Excludes expiration of low margin aggregation deals











 

Genie Renewables (GREW)
Genie Solar Energy's revenue increased in the first quarter, driven mainly by services provided to third parties, including its consultative energy services for large commercial customers.

As of the end of the quarter, Genie Solar had an operating project pipeline of 78MW across the three phases of project development.

 

Pipeline

Total

Site Control

Permitting

Construction

MW

78

49

25

4

Project Count

10

5

4

1

 

Balance Sheet and Cash Flow Highlights
As of March 31, 2023, Genie Energy reported $293.0 million in total assets. Liabilities totaled $107.4 million, and working capital (current assets less current liabilities) totaled $142.4 million. Non-current liabilities were $2.6 million.

Net cash provided by operating activities was $11.2 million compared to $18.3 million a year ago.

Strategic Update and Commentary
Stein added, "We continue to see attractive opportunities to add to our retail customer base entering the second quarter and expect to generate solid meter growth.  Our plan has been to aggressively move into growth mode once market volatility subsided, and these initial results are very encouraging.

"At Genie Solar, we expect to complete construction on a few operating projects in 2023 while achieving key pre-construction milestones on several others. In addition, we have a large pipeline of projects in negotiation, in due diligence and under review, and expect to increase both the number of projects and aggregate MW in the pipeline throughout the balance of this year."

 

Trended Financial Information:*

 (Dollars in millions except for EPS)VMeters and RCEs in 1000s**

1Q22

2Q22

3Q22

4Q22

1Q23

2021

2022

Total Revenue

$85.9

$66.9

$81.3

$81.4

$105.3

$323.3

$315.5

Genie Retail

$83.9

$63.2

$79.9

$77.0

$101.4

$311.8

$304.0

   Electricity

$59.4

$53.1

$73.8

$55.6

$74.5

$273.0

$241.8

   Natural Gas

$24.5

$10.1

$6.2

$21.4

$26.9

$38.8

$62.1

Genie Renewables

$2.0

$3.8

$1.4

$4.4

$3.9

$7.5

$11.6

Gross Margin

54.8 %

44.5 %

53.1 %

42.7 %

31.6 %

28.3 %

49.1 %

Genie Retail

55.5 %

45.9 %

54.1 %

44.4 %

32.1 %

29.1 %

50.3 %

Genie Renewables

25.7 %

21.6 %

-6.3 %

12.4 %

19.3 %

37.1 %

15.6 %

Income from Operations

$27.0

$11.8

$23.5

$15.5

$11.3

$24.1

$11.6

Operating Margin

31.4 %

17.6 %

29.0 %

19.0 %

6.8 %

7.5 %

3.7 %

Net (Loss) Income Attributable to Discontinued Operations

($1.9)

$29.3

($1.5)

$4.5

$3.1

$11.7

$30.4

Net Income Attributable to GNE Common Stockholders

$17.5

$33.9

$18.3

$16.2

$14.3

$27.5

$85.9

Diluted Earnings Per Share

$0.67

$1.30

$0.70

$0.61

$0.54

$1.05

$3.28

Adjusted EBITDA

$28.0

$12.2

$24.5

$18.5

$12.4

$27.8

$83.2

GRE Retail Performance Metrics








RCEs

260

263

251

262

353

260

262

Electricity

182

185

174

181

276

189

181

Natural Gas

78

77

77

81

77

71

81

Meters

286

280

270

275

349

285

275

Electricity

209

203

193

196

271

210

197

Natural Gas

77

77

77

79

78

75

79

Gross Meter Additions

44

34

34

47

129

177

159

Churn***

4.5 %

4.4 %

4.4 %

5.5 %

4.4 %

4.5 %

4.8 %









nm = not measurable/meaningful

*Numbers may not add due to rounding








** GREI operations have been classified as a discontinued operation and its results excluded from current and historical results

*** Excludes expiration of low margin aggregation deals

 

Earnings Announcement and Supplemental Information
At 8:30 AM Eastern today, Genie's management will host a conference call to discuss financial and operational results, business outlook, and strategy. The call will begin with management's remarks, followed by Q&A with investors.

To participate in the conference call, dial 1-888-506-0062 (toll-free from the US) or 1-973-528-0011 (international) and provide the following participant access code: 643101.

 Approximately three hours after the call, a call replay will be accessible by dialing 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and providing the replay passcode: 48305. The replay will remain available through May 22, 2023.  A recording of the call also will be available for playback on the "Investors" section of the Genie Energy website.

About Genie Energy Ltd.
Genie Energy Ltd., (NYSE: GNE, GNEPRA) is a retail energy and renewable energy solutions provider. The Genie Retail Energy division supplies electricity, including electricity from renewable resources, and natural gas to residential and small business customers in the United States. The Genie Renewables division is a vertically-integrated provider of commercial, community, and utility-scale solar energy solutions. For more information, visit Genie.com.

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

 

GENIE ENERGY LTD.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)

 



March 31,
2023



December 31,
2022



(Unaudited)



(Audited)


Assets






Current assets:






Cash and cash equivalents

$

105,220



$

98,571


Restricted cash—short-term


3,791




6,007


Marketable equity securities


4,663




490


Trade accounts receivable, net of allowance for doubtful accounts of $5,383 and $4,826 at March 31, 2023 and December 31, 2022, respectively


65,203




55,134


Inventory


19,345




15,714


Prepaid expenses


7,855




6,822


Other current assets


5,363




6,207


Current assets of discontinued operations


35,750




38,688


Total current assets


247,190




227,633


Property and equipment, net


964




891


Goodwill


9,998




9,998


Other intangibles, net


3,033




3,133


Deferred income tax assets, net


5,799




5,799


Other assets


13,506




13,856


Noncurrent assets of discontinued operations


12,520




16,305


Total assets

$

293,010



$

277,615


Liabilities and equity








Current liabilities:








Trade accounts payable


19,894




25,313


Accrued expenses


38,568




35,659


Income taxes payable


27,580




22,576


Due to IDT Corporation, net


98




165


Other current liabilities


7,580




4,549


Current liabilities of discontinued operations


11,076




10,936


Total current liabilities


104,796




99,198


Other liabilities


1,894




4,087


Noncurrent liabilities of discontinued operations


686




686


Total liabilities 


107,376




103,971


Commitments and contingencies 






Equity:








Genie Energy Ltd. stockholders' equity:








Preferred stock, $0.01 par value; authorized shares—10,000:








Series 2012-A, designated shares—8,750; at liquidation preference, consisting of 866 and 983 shares issued and outstanding at March 31, 2023 and December 31, 2022


7,359




8,359


Class A common stock, $0.01 par value; authorized shares—35,000; 1,574 shares issued and outstanding at March 31, 2023 and December 31, 2022


16




16


Class B common stock, $0.01 par value; authorized shares—200,000; 27,159 and 27,126 shares issued and 24,439 and 24,421 shares outstanding at March 31, 2023 and December 31, 2022, respectively


271




271


Additional paid-in capital


147,445




146,546


Treasury stock, at cost, consisting of 2,720 and 2,705 shares of Class B common stock at March 31, 2023 and December 31, 2022


(19,175)




(19,010)


Accumulated other comprehensive income 


1,895




1,926


Retained earnings


61,333




49,010


Total Genie Energy Ltd. stockholders' equity


199,144




187,118


Noncontrolling interests


(13,510)




(13,474)


Total equity


185,634




173,644


Total liabilities and equity

$

293,010



$

277,615


 

GENIE ENERGY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 



Three Months Ended
March 31,





2023




2022





(in thousands, except per share data)

Revenues:









Electricity

$

74,487



$

59,380



Natural gas


26,925




24,504



Other


3,864




2,042



Total revenues


105,276




85,926



Cost of revenues


71,990




38,819



Gross profit


33,286




47,107



Operating expenses:









Selling, general and administrative (i)


22,011




20,145



Income from operations


11,275




26,962



Interest income


974




17



Interest expense


(19)




(50)



Loss on marketable equity securities and investments


(71)




(652)



Other income (loss), net


3,246




(498)



Income before income taxes


15,405




25,779



Provision for income taxes


(4,068)




(7,112)



Net income from continuing operations


11,337




18,667



   Income (loss) from discontinued operations, net of taxes


3,055




(1,932)



Net income


14,392




16,735



Net loss attributable to noncontrolling interests, net


(39)




(1,154)



Net income attributable to Genie Energy Ltd.


14,431




17,889



Dividends on preferred stock


(157)




(370)



Net income attributable to Genie Energy Ltd. common stockholders

$

14,274



$

17,519












Amounts attributable to Genie Energy Ltd. common stockholders









    Continuing operations

$

11,218



$

19,294



    Discontinued operations


3,056




(1,775)



Net income attributable to Genie Energy Ltd. common stockholders

$

14,274



$

17,519












Earnings per share attributable to Genie Energy Ltd. common stockholders:









Basic:









    Continuing operations

$

0.44



$

0.75



    Discontinued operations


0.12




(0.07)



    Earnings per share attributable to Genie Energy Ltd. common stockholders

$

0.56



$

0.68



Diluted









    Continuing operations

$

0.42



$

0.74



    Discontinued operations


0.12




(0.07)



    Earnings per share attributable to Genie Energy Ltd. common stockholders

$

0.54



$

0.67












Weighted-average number of shares used in calculation of earnings per share:









Basic


25,326




25,764



Diluted


26,620




26,128












Dividends declared per common share

$

0.075



$

0.075



(i) Stock-based compensation included in selling, general and administrative expenses

$

899



$

840



 

GENIE ENERGY LTD. 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) 

 



Three Months Ended
March 31,




2023



2022




(in thousands)


Operating activities







Net income


$

14,392



$

16,735


   Net income (loss) from discontinued operations, net of tax



3,055




(1,932)


Net income from continuing operations



11,337




18,667


Adjustments to reconcile net income to net cash provided by (used in) operating activities:









Depreciation and amortization



96




96


Impairment of assets



19





Provision for doubtful accounts receivable



574




392


Unrealized loss on marketable equity securities and investment



71




652


Stock-based compensation



899




814


Equity in the net income in equity method investees



(195)




(125)


Change in assets and liabilities: 









Trade accounts receivable



(10,643)




(2,368)


Inventory



(3,631)




(1,145)


Prepaid expenses



(1,032)




(1,904)


Other current assets and other assets



1,138




(5,638)


Trade accounts payable, accrued expenses and other liabilities



(2,051)




2,589


Due to IDT Corporation, net



(66)




(391)


Income taxes payable



5,004




6,560


Net cash provided by operating activities of continuing operations



1,520




18,199


   Net cash provided by operating activities of discontinued operations



9,714




141


Net cash provided by operating activities



11,234




18,340


Investing activities









Capital expenditures



(98)




(59)


Proceeds from the sale of  marketable equity securities



343





Purchase of marketable equity securities and other investment



(4,559)




(200)


Proceeds from settlement of equity method investment



133





Investment in notes receivables with related party






(1,388)


Repayment of notes receivable



19




19


Net cash used in investing activities of continuing operations



(4,162)




(1,628)


   Net cash used in investing activities of discontinued operations






(21,832)


Net cash used in investing activities



(4,162)




(23,460)


Financing activities









Dividends paid



(2,108)




(2,304)


Repurchases of Class B common stock from employees



(165)




(71)


Redemption of preferred stock



(1,000)





Net cash used in financing activities



(3,273)




(2,375)


Effect of exchange rate changes on cash, cash equivalents, and restricted cash



(10)




27


Net increase (decrease) in cash, cash equivalents, and restricted cash



3,789




(7,468)


Cash, cash equivalents, and restricted cash (including discontinued operations) at beginning of period



106,080




102,149


Cash, cash equivalents and restricted cash (including discontinued operations) at end of the period



109,869




94,681


Less: Cash of discontinued operations at end of period



858




1,726


Cash, cash equivalents, and restricted cash (excluding discontinued operations) at end of period


$

109,011



$

92,955


 

Reconciliation of Non-GAAP Financial Measure for the First Quarter

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), Genie Energy disclosed Adjusted EBITDA on a consolidated basis and for GRE. Adjusted EBITDA is a non-GAAP measure.

Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

Genie's measure of consolidated Adjusted EBITDA starts with net income and adds back interest, taxes, depreciation, amortization, stock-based compensation and impairment of assets and subtracts out equity in the net loss of equity method investees, net. Genie's measure of segment-level Adjusted EBITDA starts with income (loss) from operations and adds back depreciation, amortization, and stock-based compensation and subtracts out impairment of assets and equity in the net loss of equity method investees, net.

Adjusted EBITDA should be considered in addition to, not as a substitute for, or superior to, revenue, gross profit, income from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, Genie's measurement of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Management believes that Genie's measure of Adjusted EBITDA provides useful information to both management and investors by excluding certain expenses that may not be indicative of Genie's or GRE's core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision-making.

Management also uses Adjusted EBITDA to evaluate operating performance in relation to Genie's competitors. Disclosure of this non-GAAP financial measure may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, Genie Energy has historically reported Adjusted EBITDA and believes it is commonly used by readers of financial information in assessing performance. Therefore, the inclusion of comparative numbers provides consistency in financial reporting at this time.

Management refers to Adjusted EBITDA as well as the GAAP measures revenue, gross profit, and income (loss) from operations, as well as net income (loss), on a consolidated level to facilitate internal and external comparisons to Genie's historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.

Although depreciation and amortization are considered operating costs under GAAP, they primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Genie's operating results exclusive of depreciation and amortization are therefore useful indicators of its current performance.

Stock-based compensation recognized by Genie Energy and other companies may not be comparable because of the various valuation methodologies, subjective assumptions and the variety of types of awards that are permitted under GAAP. Stock-based compensation is excluded from Genie's calculation of Adjusted EBITDA because management believes this allows investors to make more meaningful comparisons of the operating results of Genie's core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for Genie Energy for the foreseeable future and an important part of employees' compensation that impacts their performance.

Impairment of goodwill is a component of (loss) income from operations that is excluded from the calculation of Adjusted EBITDA. The impairment of goodwill is primarily dictated by events and circumstances outside the control of management that trigger an impairment analysis. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of Genie's continuing operations.

Following are the reconciliations of Adjusted EBITDA on a consolidated basis to its most directly comparable GAAP measure. Adjusted EBITDA is reconciled to net income for Genie Energy on a consolidated basis and for GRE.

 

Non-GAAP Reconciliation - Adjusted EBITDA


1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22

4Q22

1Q23


2021

2022

Income (loss) from Operations

($3.2)

$4.0

$17.5

$5.8

$27.0

$11.8

$23.5

$15.5

$11.3


$24.1

$77.8

Add back













Depreciation and Amortization

$0.1

$0.1

$0.1

$0.1

$0.1

$0.1

$0.1

$0.1

$0.1


$0.4

$0.4

Non-Cash Compensation

$0.6

$0.5

$0.5

$1.2

$0.8

$0.7

$0.7

$0.7

$0.8


$2.8

$3.0

Impairment

$0.0

$0.0

($0.0)

$0.0

$0.0

$0.0

$0.0

$2.1

$0.0


$0.0

$2.1

Equity in the Loss of AMSO/GEUK

$0.1

$0.1

$0.1

$0.2

$0.1

($0.4)

$0.2

$0.1

$0.2


$0.4

($0.0)

Adjusted EBITDA

($2.4)

$4.7

$18.1

$7.3

$28.0

$12.2

$24.5

$18.5

$12.4


$27.8

$83.2

 

Non-GAAP Reconciliation – GRE Adjusted EBITDA


(in millions)

1Q23

1Q22

2022

2021

Income (loss) from Operations

$16.4

$30.2

$92.6

$34.7

Add back





Depreciation and Amortization

$0.1

$0.1

$0.3

$0.4

Stock-based Compensation

$0.3

$0.2

$1.0

$0.9

Impairment

$0.0

$0.0

$0.0

$0.0

Equity in the income of equity method investee

$0.0

$0.0

$0.0

$0.0

Adjusted EBITDA

$16.8

$30.5

$93.8

$36.0

 

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SOURCE Genie Energy Ltd.

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Genie Energy (NYSE:GNE)
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Von Nov 2024 bis Dez 2024 Click Here for more Genie Energy Charts.
Genie Energy (NYSE:GNE)
Historical Stock Chart
Von Dez 2023 bis Dez 2024 Click Here for more Genie Energy Charts.