Fourth Quarter Operating Income Increased 167%
Year-Over-Year
Record Full-Year Operating Income of
$77.8 million, Adjusted
EBITDA1 of $83.2 million and EPS of $3.26
NEWARK,
N.J., March 13, 2023 /PRNewswire/ -- Genie
Energy, Ltd. (NYSE: GNE, GNEPRA), a leading retail energy and
renewable energy solutions provider, today announced results for
its fourth quarter and year ended December
31, 2022.
"We completed a record year for gross margin, profits and
Adjusted EBITDA on a high note," said Michael Stein, chief executive officer.
"Genie Retail Energy (GRE) capped off a very strong year with
robust fourth quarter increases in revenue, gross margin, operating
income and Adjusted EBITDA compared to a year ago. We strategically
curtailed customer acquisition during a volatile wholesale pricing
period allowing us to generate strong financial results. Now that
volatility has diminished, we are positioned to return to customer
growth. GRE's strong performance this year again demonstrated our
ability to manage this business profitably through a wide range of
market conditions.
"At Genie Renewables (GREW), we generated strong revenue growth
while pursuing our vertically-integrated solar development
strategy. We were also excited to receive notice to proceed (NTP)
for our first company-owned community solar project and complete a
Coordinated Electric Standard Interconnection Review (CESIR) for a
second project – a key milestone on the path to NTP.
"Finally, we continued to pay our quarterly dividends while
taking steps to simplify our capital structure by redeeming
$8.4 million of preferred stock
during the quarter."
Fourth Quarter
2022 Highlights (versus 4Q21 unless otherwise noted;
excludes discontinued operations of Genie Retail Energy
International (GREI) for all periods)
- Revenue increased 17.6% to $81.4
million from $69.2
million;
- Gross profit increased 46.3% to $34.7
million from $23.7 million,
and gross margin increased to 42.7% from 34.3%, driven by strength
at GRE;
- Operating income increased 166.5% to $15.5 million from $5.8
million;
- Adjusted EBITDA increased 151.2% to $18.4 million from $7.3
million;
- GRE generated operating income and Adjusted EBITDA of
$20.6 million and $20.9 million, compared to $8.3 million and $8.8
million, respectively;
- Net income attributable to GNE common stockholders was
$16.2 million and diluted income per
share (EPS) $0.61;
- Paid a $0.075 quarterly dividend
for class A and B common stockholders on March 1, 2023;
- Redeemed $8.4 million of
preferred stock.
Full Year
2022 Highlights (versus 2021 unless otherwise noted;
excludes discontinued operations of GREI for all periods)
- Revenue decreased 2.4% to $315.5
million from $323.3
million;
- Gross profit increased 68.9% to $154.8
million from $91.6 million,
and gross margin increased to 49.1% from 28.3%;
- Operating income increased to $77.8
million from $24.1
million;
- Adjusted EBITDA increased to $83.2
million from $27.8
million;
- GRE generated operating income and Adjusted EBITDA of
$92.6 million and $93.8 million, compared to $34.7 million and $36.0
million, respectively;
- Net income attributable to GNE common stockholders was
$85.9 million and diluted income per
share (EPS) $3.26;
- Repurchased 639,393 shares of GNE Common Stock and redeemed
$11.4 million of preferred
stock;
- Acquired site rights to 64 MWs of potential solar
generation.
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: 2022 versus 2021 as of 12/31/22*
|
(in $M except
for EPS)
|
4Q22
|
4Q21
|
Change
|
2022
|
2021
|
Change
|
Total
Revenue
|
$81.4
|
$69.2
|
17.6 %
|
$315.5
|
$323.3
|
-2.4 %
|
Genie Retail
(GRE)
|
$77.0
|
$67.9
|
13.5 %
|
$304.0
|
$311.8
|
-2.5 %
|
Electricity
|
$55.6
|
$54.9
|
1.3 %
|
$241.8
|
$273.0
|
-11.4 %
|
Natural
Gas
|
$21.4
|
$12.9
|
65.4 %
|
$62.1
|
$38.8
|
60.1 %
|
Genie Renewables
(GREW)
|
$4.4
|
$1.3
|
227.2 %
|
$11.6
|
$7.5
|
54.1 %
|
Gross
Margin
|
42.7 %
|
34.3 %
|
836bps
|
49.1 %
|
28.3 %
|
2071bps
|
Genie Retail
|
44.4 %
|
34.5 %
|
983bps
|
50.3 %
|
29.1 %
|
2118bps
|
Genie
Renewables
|
1.2 %
|
21.5 %
|
(2025)bps
|
15.6 %
|
37.1 %
|
(2150)bps
|
Income from
Operations
|
$15.5
|
$5.8
|
166.5 %
|
$77.8
|
$24.1
|
222.8 %
|
Operating
Margin
|
19.0 %
|
8.4 %
|
1063bps
|
24.6 %
|
(5.1 %)
|
2974bps
|
Net Income
Attributable to GNE Common Stockholders
|
$16.2
|
$27.6
|
-41.3 %
|
$85.9
|
$27.5
|
211.8 %
|
Diluted Earnings Per
Share
|
$0.61
|
$1.06
|
-42.3 %
|
$3.26
|
$1.05
|
211.2 %
|
Adjusted
EBITDA
|
$18.5
|
$7.3
|
151.1 %
|
$83.2
|
$27.8
|
199.3 %
|
Cash Flow Provided
by (Used in) Continuing Operating Activities
|
$21.3
|
$24.6
|
-13.5 %
|
$66.0
|
$23.7
|
178.3 %
|
*Numbers may not add
due to rounding
|
|
|
|
|
|
|
Segment Highlights
Genie Retail Energy
(GRE)
GRE delivered record fourth quarter gross profit,
income from operations, and Adjusted EBITDA, highlighted by strong
margins in its retail book. As in prior quarters during 2022, GRE
moderated customer acquisition efforts to maximize the value of its
portfolio.
Sequentially, RCEs and meters served increased by 11,000 and
5,000 to 262,000 and 275,000, respectively, as of December
31, 2022. Average monthly churn increased to 5.5% sequentially
from 4.7% in the third quarter of 2022.
Select GRE Business
Metrics: 2022 versus 2021 as of 12/31/2022*
|
|
|
|
|
RCEs and Meters in
1000s
|
4Q22
|
4Q21
|
Change
|
Residential Customer
Equivalents (RCEs)
|
262
|
260
|
0.80 %
|
Electricity
|
181
|
189
|
-4.20 %
|
Natural
Gas
|
81
|
71
|
14.10 %
|
Meters
|
275
|
285
|
-3.50 %
|
Electricity
|
196
|
210
|
-6.70 %
|
Natural
Gas
|
79
|
45
|
75.60 %
|
Gross
Adds
|
47
|
33
|
42.40 %
|
Churn**
|
5.5 %
|
6.2 %
|
(70)bps
|
*Numbers may not add
due to rounding
|
|
|
|
** Excludes expiration
of low margin aggregation deals
|
|
|
|
Genie Renewables (GREW)
GREW's revenue increased
significantly in the fourth quarter as it continued building solar
projects and providing consultative energy services for large
commercial customers. However, margins trended lower year over year
primarily due to the timing of certain payments, which are usually
included in the cost of goods sold and recognized before
revenue.
GREW also made progress towards constructing its first owned and
operated projects during the fourth quarter.
Balance Sheet and Cash Flow Highlights (for the year
ended December 31, 2022)
Genie Energy reported $277.6 million
in total assets. Liabilities totaled $104.0
million, and working capital (current assets less current
liabilities) totaled $128.5 million.
Non-current liabilities were $4.8
million.
Net cash provided by operating activities was $80.7 million compared to $68.4 million a year ago.
Strategic Update and Commentary
Stein commented, "In
our retail business, we currently see opportunities for retail
customer acquisitions with attractive paybacks, and we expect to
build our RCE and customer counts during the first
quarter.
"Our solar strategy continues to progress, both in terms of
acquiring site rights to new projects and moving existing projects
toward operations. We currently expect to complete construction on
a few projects in 2023 while beginning construction and/or reaching
milestones preceding construction on several others. We
have a large pipeline of projects in negotiations, in due
diligence, and under review, and we are optimistic that we will
continue to increase both our number of projects and aggregate
MWs."
Trended Financial
Information:*
|
(in $M except
for EPS, RCEs and Meters)**
|
1Q21
|
2Q21
|
3Q21
|
4Q21
|
1Q22
|
2Q22
|
3Q22
|
4Q22
|
|
2020
|
2021
|
2022
|
Total
Revenue
|
$96.3
|
$70.1
|
$87.7
|
$69.2
|
$85.9
|
$66.9
|
$81.3
|
$81.4
|
|
$338.4
|
$323.3
|
$315.5
|
Genie Retail
(GRE)
|
$90.7
|
$67.0
|
$86.3
|
$67.9
|
$83.9
|
$63.2
|
$79.9
|
$77.0
|
|
$304.4
|
$311.8
|
$304.0
|
Electricity
|
$73.4
|
$61.9
|
$82.8
|
$54.9
|
$59.4
|
$53.1
|
$73.8
|
$55.6
|
|
$270.9
|
$273.0
|
$241.8
|
Natural
Gas
|
$17.3
|
$5.1
|
$3.5
|
$12.9
|
$24.5
|
$10.1
|
$6.2
|
$21.4
|
|
$33.6
|
$38.8
|
$62.1
|
Genie Renewables
(GREW)
|
$2.5
|
$2.3
|
$1.3
|
$1.3
|
$2.0
|
$3.8
|
$1.4
|
$4.4
|
|
$25.2
|
$7.5
|
$11.6
|
Gross
Margin
|
14.4 %
|
27.8 %
|
39.5 %
|
34.3 %
|
54.8 %
|
44.5 %
|
53.1 %
|
42.7 %
|
|
27.0 %
|
28.3 %
|
49.1 %
|
Genie Retail
|
16.5 %
|
27.4 %
|
39.6 %
|
34.5 %
|
55.5 %
|
45.9 %
|
54.1 %
|
44.4 %
|
|
29.0 %
|
29.1 %
|
50.3 %
|
Genie
Renewables
|
44.9 %
|
39.4 %
|
34.0 %
|
21.5 %
|
25.7 %
|
21.6 %
|
-6.3 %
|
12.4 %
|
|
8.8 %
|
37.1 %
|
15.6 %
|
Income (loss) from
Operations
|
($3.2)
|
$4.0
|
$17.5
|
$5.8
|
$27.0
|
$11.8
|
$23.5
|
$15.5
|
|
$23.1
|
$24.1
|
$77.8
|
Operating
Margin
|
-3.3 %
|
5.7 %
|
19.9 %
|
8.4 %
|
31.4 %
|
17.6 %
|
29.0 %
|
19.0 %
|
|
6.8 %
|
7.5 %
|
24.6 %
|
Net (Loss) Income
Attributable to GNE Common Stockholders
|
($2.4)
|
$5.0
|
($2.7)
|
$27.6
|
$17.5
|
$33.9
|
$18.3
|
$16.2
|
|
$11.7
|
$27.5
|
$85.9
|
Diluted (Loss)
Earnings Per Share
|
($0.09)
|
$0.19
|
($0.10)
|
$1.06
|
$0.67
|
$1.30
|
$0.70
|
$0.61
|
|
$0.44
|
$1.05
|
$3.26
|
Adjusted
EBITDA
|
($2.4)
|
$4.7
|
$18.1
|
$7.3
|
$28.0
|
$12.2
|
$24.5
|
$18.5
|
|
$26.6
|
$27.8
|
$83.2
|
GRE Retail
Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
RCEs
|
347
|
330
|
336
|
260
|
260
|
263
|
251
|
262
|
|
337
|
260
|
262
|
Electricity
|
291
|
272
|
276
|
189
|
182
|
185
|
185
|
181
|
|
284
|
189
|
181
|
Natural
Gas
|
56
|
58
|
60
|
71
|
78
|
77
|
77
|
81
|
|
53
|
71
|
81
|
Meters
|
373
|
361
|
361
|
285
|
286
|
280
|
280
|
275
|
|
368
|
285
|
275
|
Electricity
|
308
|
292
|
289
|
210
|
209
|
203
|
203
|
196
|
|
303
|
210
|
196
|
Natural
Gas
|
65
|
69
|
72
|
75
|
77
|
77
|
77
|
79
|
|
65
|
75
|
79
|
Gross
Adds
|
62
|
35
|
46
|
33
|
44
|
34
|
34
|
47
|
|
212
|
177
|
159
|
Churn***
|
4.9 %
|
3.8 %
|
4.0 %
|
6.2 %
|
4.5 %
|
4.4 %
|
4.4 %
|
5.5 %
|
|
4.4 %
|
4.5 %
|
4.8 %
|
|
*Numbers may not add
due to rounding
|
** Certain 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 U.S.) or 1-973-528-0011 (international) and
provide the following participant access code: 139380.
Approximately three hours after the call, a call replay will be
accessible by dialing 1-877-481-4010 (toll-free from the U.S.) or
1-919-882-2331 (international) and providing the replay passcode:
47769. The replay will remain available through March 27, 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
|
|
|
|
December
31
|
|
(in thousands,
except per share amounts)
|
|
2022
|
|
|
2021
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
98,571
|
|
|
$
|
93,568
|
|
Restricted
cash—short-term
|
|
|
6,007
|
|
|
|
6,657
|
|
Marketable equity
securities
|
|
|
490
|
|
|
|
1,336
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $4,826 and
$6,139 at December 31, 2022 and 2021, respectively
|
|
|
55,134
|
|
|
|
41,309
|
|
Inventory
|
|
|
15,714
|
|
|
|
17,720
|
|
Prepaid
expenses
|
|
|
6,822
|
|
|
|
4,164
|
|
Other current
assets
|
|
|
6,207
|
|
|
|
2,354
|
|
Other current assets of
discontinued operations
|
|
|
38,688
|
|
|
|
33,237
|
|
TOTAL CURRENT
ASSETS
|
|
|
227,633
|
|
|
|
200,345
|
|
Property and equipment,
net
|
|
|
891
|
|
|
|
297
|
|
Goodwill
|
|
|
9,998
|
|
|
|
9,998
|
|
Other intangibles,
net
|
|
|
3,133
|
|
|
|
3,530
|
|
Deferred income tax
assets, net
|
|
|
5,799
|
|
|
|
5,203
|
|
Other assets
|
|
|
13,856
|
|
|
|
8,920
|
|
Non-current assets of
discontinued operations
|
|
|
16,305
|
|
|
|
1,172
|
|
TOTAL
ASSETS
|
|
$
|
277,615
|
|
|
$
|
229,465
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
25,313
|
|
|
$
|
14,541
|
|
Accrued expenses
|
|
|
35,659
|
|
|
|
38,005
|
|
Income taxes
payable
|
|
|
22,576
|
|
|
|
9,512
|
|
Due to IDT
Corporation
|
|
|
165
|
|
|
|
532
|
|
Other current
liabilities
|
|
|
4,549
|
|
|
|
1,732
|
|
Current liabilities of
discontinued operations
|
|
|
10,936
|
|
|
|
51,970
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
99,198
|
|
|
|
116,292
|
|
Other
liabilities
|
|
|
4,087
|
|
|
|
1,946
|
|
Non-current liabilities
of discontinued operations
|
|
|
686
|
|
|
|
438
|
|
TOTAL
LIABILITIES
|
|
|
103,971
|
|
|
|
118,676
|
|
Commitments and
contingencies (Note 15 and Note 16)
|
|
|
|
|
|
|
|
|
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
983 shares issued and outstanding at December 31, 2022 and
2021
|
|
|
8,359
|
|
|
|
19,743
|
|
Class A common stock,
$0.01 par value; authorized shares – 35,000; 1,574 shares issued
and outstanding at December 31, 2022 and 2021
|
|
|
16
|
|
|
|
16
|
|
Class B common stock,
$0.01 par value; authorized shares – 200,000; 27,126 and 26,620
shares issued and 24,421 and 24,615 shares outstanding at December
31, 2022 and 2021, respectively
|
|
|
271
|
|
|
|
266
|
|
Additional paid-in
capital
|
|
|
146,546
|
|
|
|
143,249
|
|
Treasury stock, at
cost, consisting of 2,705 and 2,005 shares of Class B common at
December 31, 2022 and 2021, respectively
|
|
|
(19,010)
|
|
|
|
(14,034)
|
|
Accumulated other
comprehensive income
|
|
|
1,926
|
|
|
|
3,160
|
|
Retained earnings
(accumulated deficit)
|
|
|
49,010
|
|
|
|
(29,115)
|
|
Total Genie Energy Ltd.
stockholders' equity
|
|
|
187,118
|
|
|
|
123,285
|
|
Noncontrolling
interests
|
|
|
(13,474)
|
|
|
|
(12,496)
|
|
TOTAL
EQUITY
|
|
|
173,644
|
|
|
|
110,789
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
277,615
|
|
|
$
|
229,465
|
|
GENIE ENERGY
LTD.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Year ended December
31,
|
|
(in thousands,
except per share data)
|
|
2022
|
|
|
2021
|
|
REVENUES:
|
|
|
|
|
|
|
Electricity
|
|
$
|
241,828
|
|
|
$
|
276,941
|
|
Natural gas
|
|
|
62,144
|
|
|
|
38,812
|
|
Other
|
|
|
11,567
|
|
|
|
7,516
|
|
Total revenues
|
|
|
315,539
|
|
|
|
323,269
|
|
Cost of revenues
|
|
|
160,757
|
|
|
|
231,631
|
|
GROSS PROFIT
|
|
|
154,782
|
|
|
|
91,638
|
|
OPERATING EXPENSES
AND LOSSES:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative (i)
|
|
|
74,962
|
|
|
|
67,549
|
|
Impairment of
assets
|
|
|
2,066
|
|
|
|
—
|
|
Income from operations
|
|
|
77,754
|
|
|
|
24,089
|
|
Interest income
|
|
|
835
|
|
|
|
34
|
|
Interest
expense
|
|
|
(129)
|
|
|
|
(427)
|
|
Unrealized loss on
marketable equity securities and other investments
|
|
|
(417)
|
|
|
|
(4,970)
|
|
Gain on sale of
subsidiary
|
|
|
—
|
|
|
|
4,226
|
|
Other (loss) income,
net
|
|
|
(520)
|
|
|
|
707
|
|
Income before income
taxes
|
|
|
77,523
|
|
|
|
23,659
|
|
Provision for income
taxes
|
|
|
(21,037)
|
|
|
|
(7,522)
|
|
NET INCOME FROM
CONTINUING OPERATIONS
|
|
|
56,486
|
|
|
|
16,137
|
|
Income from
discontinued operations, net of tax
|
|
|
30,445
|
|
|
|
11,705
|
|
NET
INCOME
|
|
|
86,931
|
|
|
|
27,842
|
|
Net loss attributable
to noncontrolling interests, net
|
|
|
874
|
|
|
|
1,372
|
|
NET INCOME
ATTRIBUTABLE TO GENIE ENERGY LTD.
|
|
|
87,805
|
|
|
|
29,214
|
|
Dividends on preferred
stock
|
|
|
(1,939)
|
|
|
|
(1,678)
|
|
NET INCOME
ATTRIBUTABLE TO GENIE ENERGY LTD. COMMON
STOCKHOLDERS
|
|
$
|
85,866
|
|
|
$
|
27,536
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to
Genie Energy Ltd. common stockholders
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
59,956
|
|
|
$
|
16,341
|
|
Income
from discontinued operations
|
|
|
25,910
|
|
|
|
11,195
|
|
Net income attributable
to Genie Energy Ltd.
|
|
$
|
85,866
|
|
|
$
|
27,536
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributed to Genie Energy Ltd. common stockholders
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
2.34
|
|
|
$
|
0.63
|
|
Income from
discontinued operations
|
|
|
1.01
|
|
|
|
0.43
|
|
Net income
attributable to Genie Energy Ltd. common stockholders
|
|
$
|
3.35
|
|
|
$
|
1.06
|
|
Diluted
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
2.28
|
|
|
$
|
0.62
|
|
Income from
discontinued operations
|
|
|
0.98
|
|
|
|
0.43
|
|
Net income
attributable to Genie Energy Ltd. common stockholders
|
|
$
|
3.26
|
|
|
$
|
1.05
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares used in the calculation of earnings per share
|
|
|
|
|
|
|
|
|
Basic
|
|
|
25,629
|
|
|
|
25,879
|
|
Diluted
|
|
|
26,366
|
|
|
|
26,316
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
common share
|
|
$
|
0.30
|
|
|
$
|
—
|
|
(i) Stock-based
compensation included in selling, general and administrative
expenses
|
|
$
|
2,968
|
|
|
$
|
2,930
|
|
GENIE ENERGY
LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
Year ended December
31,
|
(in
thousands)
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
Net income
|
|
$
|
86,931
|
|
|
$
|
27,842
|
Net income from
discontinued operations, net of tax
|
|
|
30,445
|
|
|
|
11,705
|
Net income from
continuing operations
|
|
|
56,486
|
|
|
|
16,137
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
385
|
|
|
|
436
|
Deferred income taxes
|
|
|
(595)
|
|
|
|
(104)
|
Provision for doubtful
accounts receivable
|
|
|
2,515
|
|
|
|
1,709
|
Impairment of
assets
|
|
|
2,066
|
|
|
|
—
|
Stock-based
compensation
|
|
|
2,968
|
|
|
|
2,821
|
Equity in the net
income of equity method investees
|
|
|
17
|
|
|
|
(438)
|
Unrealized loss (gain)
on marketable equity securities and investments
|
|
|
417
|
|
|
|
4,970
|
Gain on sale of
subsidiary
|
|
|
—
|
|
|
|
(4,226)
|
Change in assets and
liabilities, net of effect of acquisition:
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
(16,339)
|
|
|
|
(416)
|
Inventory
|
|
|
2,005
|
|
|
|
(790)
|
Prepaid expenses
|
|
|
(2,658)
|
|
|
|
(420)
|
Other current assets
and other assets
|
|
|
(5,595)
|
|
|
|
(682)
|
Trade accounts payable,
accrued expenses and other current liabilities
|
|
|
11,635
|
|
|
|
(3,457)
|
Due to IDT Corporation
|
|
|
(367)
|
|
|
|
275
|
Income taxes payable
|
|
|
13,064
|
|
|
|
7,900
|
Net cash provided by
operating activities of continuing operations
|
|
|
66,004
|
|
|
|
23,715
|
Net cash provided by
discontinued operations
|
|
|
14,680
|
|
|
|
44,667
|
Net cash provided by
operating activities
|
|
|
80,684
|
|
|
|
68,382
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(1,019)
|
|
|
|
(126)
|
Investment in notes receivable with related party
|
|
|
(1,505)
|
|
|
|
—
|
Purchases
of short-term equity investments
|
|
|
(2,729)
|
|
|
|
(750)
|
Purchase
of marketable equity security and investment
|
|
|
—
|
|
|
|
(1,000)
|
Proceeds
from the sale of subsidiary, net of cash disposed
|
|
|
—
|
|
|
|
4,550
|
Repayment
of notes receivables
|
|
|
19
|
|
|
|
13
|
Net cash (used in)
provided by investing activities of continuing
operations
|
|
|
(5,234)
|
|
|
|
2,687
|
Net cash used in
investing activities of discontinued operations
|
|
|
(44,088)
|
|
|
|
—
|
Net cash (used in)
provided by investing activities
|
|
|
(49,322)
|
|
|
|
2,687
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(9,158)
|
|
|
|
(1,480)
|
Purchases
of Class B common stock
|
|
|
(4,414)
|
|
|
|
(3,847)
|
Repurchases of Class B common stock from employees
|
|
|
(567)
|
|
|
|
(348)
|
Redemption of preferred stock
|
|
|
(11,384)
|
|
|
|
—
|
Net cash used in
financing activities of continuing operations
|
|
|
(25,523)
|
|
|
|
(5,675)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
|
17
|
|
|
|
(30)
|
Net increase in cash,
cash equivalents and restricted cash
|
|
|
5,856
|
|
|
|
65,364
|
Cash, cash equivalents
and restricted cash (including discontinued operations) at
beginning of year
|
|
|
100,225
|
|
|
|
36,785
|
Cash, cash
equivalents and restricted cash (including discontinued operations)
at end of year
|
|
|
106,081
|
|
|
|
102,149
|
Less: Cash of
discontinued operations at end of year
|
|
|
(1,503)
|
|
|
|
(1,924)
|
Cash and cash
equivalents and restricted cash (excluding discontinued operations)
at end of year
|
|
$
|
104,578
|
|
|
$
|
100,225
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
Cash payments made for
interest
|
|
$
|
123
|
|
|
$
|
433
|
Cash payments made for
income taxes
|
|
$
|
8,570
|
|
|
$
|
49
|
Reconciliation of Non-GAAP Financial Measure for the Fourth
Quarter and Full-Year 2022
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
|
|
2020
|
2021
|
2022
|
Income (loss) from
Operations
|
($3.2)
|
$4.0
|
$17.5
|
$5.8
|
$27.0
|
$11.8
|
$23.5
|
$15.5
|
|
$23.1
|
$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
|
|
$1.1
|
$0.4
|
$0.4
|
Non-Cash
Compensation
|
$0.6
|
$0.5
|
$0.5
|
$1.2
|
$0.8
|
$0.7
|
$0.7
|
$0.7
|
|
$1.0
|
$2.8
|
$3.0
|
Impairment
|
$0.0
|
$0.0
|
($0.0)
|
$0.0
|
$0.0
|
$0.0
|
$0.0
|
$2.1
|
|
$1.4
|
$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
|
|
$0.0
|
$0.4
|
($0.0)
|
Adjusted
EBITDA
|
($2.4)
|
$4.7
|
$18.1
|
$7.3
|
$28.0
|
$12.2
|
$24.5
|
$18.5
|
|
$26.6
|
$27.8
|
$83.2
|
Non-GAAP
Reconciliation - GRE
|
|
(in
millions)
|
4Q22
|
4Q21
|
2022
|
2021
|
Income (loss) from
Operations
|
$20.6
|
$8.3
|
$92.6
|
$34.7
|
Add
back
|
|
|
|
|
Depreciation and
Amortization
|
$0.1
|
$0.1
|
$0.3
|
$0.4
|
Stock-based
Compensation
|
$0.2
|
$0.4
|
$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
|
$20.9
|
$8.8
|
$93.8
|
$36.0
|
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SOURCE Genie Energy Ltd.