Genie Energy, Ltd. (NYSE: GNE), a leading retail energy and
renewable energy solutions provider, today announced results for
the second quarter of 2024.
Michael Stein, chief executive officer of Genie
Energy, commented:
"Our solid second quarter results reflect the
investments in meter and RCE growth we made in the first half of
last year, combined with a stable, normalized retail energy
environment. We also delivered a solid performance at Genie
Renewables, where Diversegy and our operational solar farms helped
drive 7% revenue growth and over 700 basis points of gross margin
expansion.
"Our strong performance over the first half of
2024 puts us on track to achieve our full year guidance of $40 to
$50 million in consolidated Adjusted EBITDA. In the second quarter,
we also improved our ability to fund growth and capital return
initiatives by increasing our net cash, cash equivalents and
marketable securities by nearly $16 million, even while in
investing in our business, paying out our quarterly dividend and
repurchasing $2.6 million of our common stock."
Second Quarter 2024
Highlights(Unless otherwise noted, 2Q24 results are
compared to 2Q23, and results of Genie Retail Energy
International (GREI) are included in discontinued operations
for all periods.)
|
● |
Revenue decreased 3.0% to $90.7 million from $93.5 million; |
|
|
|
|
● |
Gross profit decreased 12.8% to $33.3 million from $38.2 million.
Gross margin decreased to 36.8% from the
stronger-than-usual 40.9% attained last year; |
|
|
|
|
● |
Income from operations decreased to $10.6 million from
$15.0 million; |
|
|
|
|
● |
Adjusted EBITDA1 decreased to $12.0 million from $15.8
million; |
|
|
|
|
● |
Net income attributable to Genie common stockholders and income per
diluted share EPS attributable to Genie common stockholders of $9.6
million and $0.36 compared to $15.0 million and $0.57,
respectively; |
|
|
|
|
● |
Non-GAAP net income1 and non-GAAP EPS1 attributable to Genie
common stockholders of $10.1 million and $0.37 compared to $15.0
million and $0.57, respectively; |
|
|
|
|
● |
Cash and cash equivalents, short and long-term restricted cash, and
marketable equity securities increased to $178.3 million
at June 30, 2024, from $162.4 million at March 31, 2024; |
|
|
|
|
● |
Genie repurchased approximately 169,000 shares of its Class B
Common stock for $2.6 million during 2Q24; |
|
|
|
|
● |
Genie will pay a $0.075 per share quarterly dividend to Class
A and Class B common stockholders on August 22, 2024, with a record
date of August 14, 2024. |
1 |
Adjusted EBITDA, Non-GAAP net income (loss) attributable to Genie
Energy Ltd. common stockholders, and Non-GAAP EPS for all periods
presented are non-GAAP measures intended to provide useful
information that supplements the core operating results in
accordance with GAAP for Genie Energy or the relevant segment.
Please refer to the Reconciliation of Non-GAAP Financial Measures
at the end of this release for an explanation of these non-GAAP
metrics, as well as reconciliations to its most directly comparable
GAAP measures. |
Select Financial Metrics
(in
millions except for EPS)* |
|
2Q24 |
|
|
2Q23 |
|
|
Change |
|
Total
Revenue |
|
$ |
90.7 |
|
|
|
$ |
93.5 |
|
|
|
(3.0 |
) |
% |
Genie Retail Energy |
|
$ |
86.7 |
|
|
|
$ |
89.7 |
|
|
|
(3.4 |
) |
% |
Electricity |
|
$ |
78.3 |
|
|
|
$ |
80.2 |
|
|
|
(2.4 |
) |
% |
Natural Gas |
|
$ |
8.4 |
|
|
|
$ |
9.0 |
|
|
|
(6.2 |
) |
% |
Others |
|
$ |
0.0 |
|
|
|
$ |
0.6 |
|
|
|
(99.4 |
) |
% |
Genie Renewables |
|
$ |
4.0 |
|
|
|
$ |
3.7 |
|
|
|
6.6 |
|
% |
Gross
Margin |
|
|
36.8 |
|
% |
|
|
40.9 |
% |
|
|
(412 |
) |
bps |
Genie Retail Energy |
|
|
37.2 |
|
% |
|
|
41.8 |
% |
|
|
(455 |
) |
bps |
Genie Renewables |
|
|
26.8 |
|
% |
|
|
19.6 |
% |
|
|
721 |
|
bps |
Income from
Operations |
|
$ |
10.6 |
|
|
|
$ |
15.0 |
|
|
|
(29.7 |
) |
% |
Operating Margin |
|
|
11.6 |
|
% |
|
|
16.1 |
% |
|
|
(444 |
) |
bps |
Net Income from
Continuing Operations |
|
$ |
9.5 |
|
|
|
$ |
12.2 |
|
|
|
(21.9 |
) |
% |
(Loss) Income
Attributable to Discontinued Operations, Net of Tax |
|
$ |
(0.1 |
) |
|
|
$ |
3.2 |
|
|
|
(104.6 |
) |
% |
Net Income
Attributable to Genie Common Stockholders |
|
$ |
9.6 |
|
|
|
$ |
15.0 |
|
|
|
(35.8 |
) |
% |
Diluted Earnings Per
Share |
|
$ |
0.36 |
|
|
|
$ |
0.57 |
|
|
|
(0.21 |
) |
$ |
Non-GAAP Net Income
Attributable to Genie Common Stockholders |
|
$ |
10.1 |
|
|
|
$ |
15.0 |
|
|
|
(32.7 |
) |
% |
Non-GAAP Diluted
Earnings Per Share |
|
$ |
0.37 |
|
|
|
$ |
0.57 |
|
|
|
(0.20 |
) |
$ |
Adjusted
EBITDA |
|
$ |
12.0 |
|
|
|
$ |
15.8 |
|
|
|
(24.0 |
) |
% |
Cash Flow from
Continuing Operating Activities |
|
$ |
17.6 |
|
|
|
$ |
3.0 |
|
|
|
486.9 |
|
% |
|
* |
Numbers may not add due to rounding |
Segment Highlights
Genie Retail Energy (GRE)
GRE's second quarter revenue decreased 3.4%
to $86.7 million from $89.7 million last year. Income from
operations decreased 20.7% to $14.6 million from $18.4 million, and
Adjusted EBITDA decreased 20.7% to $14.9 million from $18.8 million
driven by a reduction in gross margins on electricity sales from
the exceptionally high levels attained in the year ago
quarter. Aggregate electricity units sold remained relatively
consistent versus last year, as an increase in consumption per
meter substantially offset a decrease in electricity meters
served.
GRE Select Performance
Metrics
(RCEs and Meters in thousands)* |
|
|
1Q23 |
|
|
2Q23 |
|
|
3Q23 |
|
|
|
4Q23 |
|
|
|
1Q24 |
|
|
|
2Q24 |
|
|
2022 |
|
|
|
2023 |
|
RCEs |
|
|
|
352 |
|
|
|
380 |
|
|
|
375 |
|
|
|
350 |
|
|
|
348 |
|
|
|
345 |
|
|
|
262 |
|
|
|
350 |
|
Electricity |
|
|
|
276 |
|
|
|
304 |
|
|
|
298 |
|
|
|
272 |
|
|
|
267 |
|
|
|
266 |
|
|
|
181 |
|
|
|
272 |
|
Natural Gas |
|
|
|
77 |
|
|
|
76 |
|
|
|
77 |
|
|
|
78 |
|
|
|
81 |
|
|
|
78 |
|
|
|
81 |
|
|
|
78 |
|
Meters |
|
|
|
349 |
|
|
|
381 |
|
|
|
385 |
|
|
|
361 |
|
|
|
365 |
|
|
|
362 |
|
|
|
276 |
|
|
|
361 |
|
Electricity |
|
|
|
271 |
|
|
|
302 |
|
|
|
304 |
|
|
|
279 |
|
|
|
281 |
|
|
|
278 |
|
|
|
197 |
|
|
|
279 |
|
Natural Gas |
|
|
|
78 |
|
|
|
80 |
|
|
|
81 |
|
|
|
82 |
|
|
|
83 |
|
|
|
84 |
|
|
|
79 |
|
|
|
82 |
|
Gross Adds |
|
|
|
129 |
|
|
|
75 |
|
|
|
60 |
|
|
|
52 |
|
|
|
70 |
|
|
|
53 |
|
|
|
123 |
|
|
|
52 |
|
Churn** |
|
|
|
4.4 |
% |
|
|
4.3 |
% |
|
|
4.4 |
% |
|
|
5.4 |
% |
|
|
5.5 |
% |
|
|
4.6 |
% |
|
|
4.8 |
% |
|
|
5.4 |
% |
|
* |
Numbers may not add due to rounding |
|
** |
Excludes the impacts of aggregation deal expirations |
Genie Renewables (GREW)
GREW's second quarter revenue
increased 6.6% to $4.0 million from $3.7 million last year,
driven by 53.3% growth at Diversegy, and a $0.4 million
contribution from Genie Solar's operating portfolio.
At June 30, 2024, Genie Solar's operating
portfolio and development pipeline comprised:
Pipeline |
|
Total |
|
Operational |
|
Site Control |
|
Permitting |
|
Construction |
MW |
|
85 |
|
10 |
|
55 |
|
10 |
|
10 |
Project Count |
|
14 |
|
1 |
|
9 |
|
2 |
|
2 |
Balance Sheet and Cash Flow Highlights
As of June 30, 2024, Genie reported cash and
cash equivalents, short and long-term restricted cash, and
marketable equity securities of $178.3 million.
Total assets as of June 30, 2024 were $322.8
million. Liabilities totaled $133.2 million, and working capital
(current assets less current liabilities) totaled $132.7
million.
Cash provided by operating activities increased
to $17.6 million in 2Q24 from $3.0 million in 2Q23.
Trended Financial
Information*
(in millions except for EPS)** |
|
|
1Q23 |
|
|
2Q23 |
|
|
3Q23 |
|
|
|
4Q23 |
|
|
|
1Q24 |
|
|
|
2Q24 |
|
|
2022 |
|
|
|
2023 |
|
Total Revenue |
|
|
$ |
105.3 |
|
|
$ |
93.5 |
|
|
$ |
125.0 |
|
|
$ |
104.9 |
|
|
$ |
119.7 |
|
|
$ |
90.7 |
|
|
$ |
316.2 |
|
|
$ |
428.7 |
|
Genie Retail Energy |
|
|
$ |
101.4 |
|
|
$ |
89.7 |
|
|
$ |
120.3 |
|
|
$ |
98.4 |
|
|
$ |
112.5 |
|
|
$ |
86.7 |
|
|
$ |
304.6 |
|
|
$ |
409.9 |
|
Electricity |
|
|
$ |
74.5 |
|
|
$ |
80.2 |
|
|
$ |
114.0 |
|
|
$ |
82.1 |
|
|
$ |
89.4 |
|
|
$ |
78.3 |
|
|
$ |
241.8 |
|
|
$ |
350.8 |
|
Natural Gas |
|
|
$ |
26.9 |
|
|
$ |
9.0 |
|
|
$ |
5.0 |
|
|
$ |
15.1 |
|
|
$ |
22.4 |
|
|
$ |
8.4 |
|
|
$ |
62.1 |
|
|
$ |
56.0 |
|
Others |
|
|
$ |
0.0 |
|
|
$ |
0.6 |
|
|
$ |
1.3 |
|
|
$ |
1.2 |
|
|
$ |
0.7 |
|
|
$ |
0.0 |
|
|
$ |
0.7 |
|
|
$ |
3.1 |
|
Genie Renewables |
|
|
$ |
3.9 |
|
|
$ |
3.7 |
|
|
$ |
4.7 |
|
|
$ |
6.5 |
|
|
$ |
7.2 |
|
|
$ |
4.0 |
|
|
$ |
11.6 |
|
|
$ |
18.8 |
|
Gross Margin |
|
|
|
31.6 |
% |
|
|
40.9 |
% |
|
|
32.9 |
% |
|
|
32.1 |
% |
|
|
28.2 |
% |
|
|
36.8 |
% |
|
|
49.2 |
% |
|
|
34.1 |
% |
Genie Retail Energy |
|
|
|
32.1 |
% |
|
|
41.8 |
% |
|
|
33.9 |
% |
|
|
33.0 |
% |
|
|
28.6 |
% |
|
|
37.2 |
% |
|
|
50.4 |
% |
|
|
35.0 |
% |
Genie Renewables |
|
|
|
19.3 |
% |
|
|
19.6 |
% |
|
|
5.3 |
% |
|
|
17.2 |
% |
|
|
22.0 |
% |
|
|
26.8 |
% |
|
|
15.6 |
% |
|
|
15.1 |
% |
Income (Loss) from Operations |
|
|
$ |
11.3 |
|
|
$ |
15.0 |
|
|
$ |
17.9 |
|
|
$ |
(34.2 |
) |
|
$ |
9.8 |
|
|
$ |
10.6 |
|
|
$ |
78.4 |
|
|
$ |
10.0 |
|
Operating Margin |
|
|
|
10.7 |
% |
|
|
16.1 |
% |
|
|
14.3 |
% |
|
|
(32.6 |
)% |
|
|
8.2 |
% |
|
|
11.6 |
% |
|
|
24.8 |
% |
|
|
2.3 |
% |
Net Income (Loss) Attributable to Genie Common
Stockholders |
|
|
$ |
14.3 |
|
|
$ |
15.0 |
|
|
$ |
14.5 |
|
|
$ |
(24.5 |
) |
|
$ |
8.1 |
|
|
$ |
9.6 |
|
|
$ |
85.9 |
|
|
$ |
19.2 |
|
Diluted Earnings (Loss) Per Share |
|
|
$ |
0.54 |
|
|
$ |
0.57 |
|
|
$ |
0.53 |
|
|
$ |
(0.90 |
) |
|
$ |
0.30 |
|
|
$ |
0.36 |
|
|
$ |
3.26 |
|
|
$ |
0.74 |
|
Adjusted EBITDA |
|
|
$ |
12.4 |
|
|
$ |
15.8 |
|
|
$ |
18.5 |
|
|
$ |
11.4 |
|
|
$ |
11.7 |
|
|
$ |
12.0 |
|
|
$ |
83.2 |
|
|
$ |
58.2 |
|
* |
Some
Genie Retail Energy International (GREI) operations have been
classified as a discontinued operation and their results excluded
from current and historical results |
** |
Numbers
may not add due to rounding |
2024 Commentary
Stein continued: “Our solid performance in the
first half of 2024 puts us on track to achieve our new,
consolidated Adjusted EBITDA baseline of $40 - $50 million
annually, representing a meaningful increase from the $25 - $30
million range we were targeting just a few years ago.
"In our solar portfolio, we expect to continue
to build out our two New York community solar projects for the rest
of the year. We have also advanced two projects, comprising 10MW of
potential production, to the permitting stage and are identifying
new opportunities to expand our pipeline. Also within GREW, we
expect that Diversegy will report another year of strong
double-digit growth."
Earnings Announcement and Supplemental
Information
At 8:30 AM Eastern this morning, Genie Energy’s
management will host a conference call to discuss the Company's
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
1-877-545-0523 (toll-free from the US) or 1-973-528-0016
(international) and provide the following participant access code:
312566.
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: 50905. The replay will remain available through Tuesday,
August 20, 2024. In addition, a recording of the call will be
available for playback on the “Investors” section of the Genie
Energy website.
About Genie Energy Ltd.
Genie Energy Ltd., (NYSE: GNE) is a leading
retail energy and renewable energy solutions provider. The Genie
Retail Energy division (GRE) supplies electricity, including
electricity from renewable resources, and natural gas to
residential and small business customers in the United States. The
Genie Renewables division (GREW) is a vertically-integrated
provider of 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.
Contact
Brian Siegel IRC, MBASenior Managing DirectorHayden IR(346)
396-8696brian@haydenir.com
GENIE ENERGY
LTD.CONSOLIDATED BALANCE
SHEETS(in thousands, except per share
amounts)
|
|
June 30,2024 |
|
|
December 31,2023 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
122,342 |
|
|
|
$ |
107,609 |
|
Restricted cash—short-term |
|
|
9,178 |
|
|
|
|
10,442 |
|
Marketable equity securities |
|
|
344 |
|
|
|
|
396 |
|
Trade accounts receivable, net of allowance for doubtful accounts
of $7,349 and $6,574 at June 30, 2024 and December 31, 2023,
respectively |
|
|
54,228 |
|
|
|
|
61,909 |
|
Inventory |
|
|
5,637 |
|
|
|
|
14,598 |
|
Prepaid expenses |
|
|
11,743 |
|
|
|
|
16,222 |
|
Other current assets |
|
|
5,576 |
|
|
|
|
5,475 |
|
Current assets of discontinued operations |
|
|
7,080 |
|
|
|
|
13,182 |
|
Total current assets |
|
|
216,128 |
|
|
|
|
229,833 |
|
Restricted cash—long-term |
|
|
46,400 |
|
|
|
|
44,945 |
|
Property and equipment, net |
|
|
20,234 |
|
|
|
|
15,192 |
|
Goodwill |
|
|
12,658 |
|
|
|
|
9,998 |
|
Other intangibles, net |
|
|
2,551 |
|
|
|
|
2,735 |
|
Deferred income tax assets, net |
|
|
5,209 |
|
|
|
|
5,200 |
|
Other assets |
|
|
15,308 |
|
|
|
|
15,247 |
|
Noncurrent assets of discontinued operations |
|
|
4,295 |
|
|
|
|
7,405 |
|
Total assets |
|
$ |
322,783 |
|
|
|
$ |
330,555 |
|
Liabilities and equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Trade accounts payable |
|
|
26,585 |
|
|
|
|
27,881 |
|
Accrued expenses |
|
|
36,288 |
|
|
|
|
49,389 |
|
Income taxes payable |
|
|
9,062 |
|
|
|
|
6,699 |
|
Due to IDT Corporation, net |
|
|
150 |
|
|
|
|
145 |
|
Other current liabilities |
|
|
6,505 |
|
|
|
|
9,280 |
|
Current liabilities of discontinued operations |
|
|
4,790 |
|
|
|
|
4,858 |
|
Total current liabilities |
|
|
83,380 |
|
|
|
|
98,252 |
|
Noncurrent captive insurance liability |
|
|
46,400 |
|
|
|
|
44,945 |
|
Other liabilities |
|
|
2,771 |
|
|
|
|
2,212 |
|
Noncurrent liabilities of discontinued operations |
|
|
678 |
|
|
|
|
638 |
|
Total liabilities |
|
|
133,229 |
|
|
|
|
146,047 |
|
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 0 shares issued and outstanding at June
30, 2024 and December 31, 2023 |
|
|
— |
|
|
|
|
— |
|
Class A common stock, $0.01 par value; authorized shares
- 35,000; 1,574 shares issued and outstanding at June 30,
2024 and December 31, 2023 |
|
|
16 |
|
|
|
|
16 |
|
Class B common stock, $0.01 par value; authorized shares
- 200,000; 28,906 and 28,764 shares issued and 25,438 and
25,820 shares outstanding at June 30, 2024 and December 31,
2023, respectively |
|
|
289 |
|
|
|
|
288 |
|
Additional paid-in capital |
|
|
158,007 |
|
|
|
|
156,101 |
|
Treasury stock, at cost, consisting of 3,468 and 2,944 shares
of Class B common stock at June 30, 2024 and December 31, 2023 |
|
|
(31,849 |
) |
|
|
|
(22,661 |
) |
Accumulated other comprehensive income |
|
|
1,836 |
|
|
|
|
3,299 |
|
Retained earnings |
|
|
73,779 |
|
|
|
|
60,196 |
|
Total Genie Energy Ltd. stockholders’ equity |
|
|
202,078 |
|
|
|
|
197,239 |
|
Noncontrolling interests |
|
|
(12,524 |
) |
|
|
|
(12,731 |
) |
Total equity |
|
|
189,554 |
|
|
|
|
184,508 |
|
Total liabilities and equity |
|
$ |
322,783 |
|
|
|
$ |
330,555 |
|
GENIE ENERGY
LTD.CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
|
|
(in thousands, except per share data) |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electricity |
|
$ |
78,301 |
|
|
|
$ |
80,199 |
|
|
$ |
167,697 |
|
|
|
$ |
154,686 |
|
Natural gas |
|
|
8,414 |
|
|
|
|
8,975 |
|
|
|
30,812 |
|
|
|
|
35,900 |
|
Other |
|
|
3,981 |
|
|
|
|
4,289 |
|
|
|
11,875 |
|
|
|
|
8,153 |
|
Total revenues |
|
|
90,696 |
|
|
|
|
93,463 |
|
|
|
210,384 |
|
|
|
|
198,739 |
|
Cost of revenues |
|
|
57,360 |
|
|
|
|
55,255 |
|
|
|
143,262 |
|
|
|
|
127,245 |
|
Gross profit |
|
|
33,336 |
|
|
|
|
38,208 |
|
|
|
67,122 |
|
|
|
|
71,494 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative (i) |
|
|
22,015 |
|
|
|
|
23,173 |
|
|
|
44,916 |
|
|
|
|
45,184 |
|
Provision for captive insurance liability |
|
|
640 |
|
|
|
|
— |
|
|
|
1,676 |
|
|
|
|
— |
|
Impairment of assets |
|
|
118 |
|
|
|
|
— |
|
|
|
118 |
|
|
|
|
— |
|
Income from operations |
|
|
10,563 |
|
|
|
|
15,035 |
|
|
|
20,412 |
|
|
|
|
26,310 |
|
Interest income |
|
|
1,362 |
|
|
|
|
1,008 |
|
|
|
2,702 |
|
|
|
|
1,982 |
|
Interest expense |
|
|
(331 |
) |
|
|
|
(30 |
) |
|
|
(363 |
) |
|
|
|
(49 |
) |
Gain on marketable equity securities and investments |
|
|
110 |
|
|
|
|
122 |
|
|
|
227 |
|
|
|
|
51 |
|
Other income, net |
|
|
1,262 |
|
|
|
|
(104 |
) |
|
|
1,342 |
|
|
|
|
3,142 |
|
Income before income
taxes |
|
|
12,966 |
|
|
|
|
16,031 |
|
|
|
24,320 |
|
|
|
|
31,436 |
|
Provision for income taxes |
|
|
(3,465 |
) |
|
|
|
(3,865 |
) |
|
|
(6,385 |
) |
|
|
|
(7,933 |
) |
Net income from continuing
operations |
|
|
9,501 |
|
|
|
|
12,166 |
|
|
|
17,935 |
|
|
|
|
23,503 |
|
(Loss) income from discontinued operations, net of taxes |
|
|
(145 |
) |
|
|
|
3,173 |
|
|
|
(410 |
) |
|
|
|
6,227 |
|
Net income |
|
|
9,356 |
|
|
|
|
15,339 |
|
|
|
17,525 |
|
|
|
|
29,730 |
|
Net (loss) income attributable to noncontrolling interests,
net |
|
|
(256 |
) |
|
|
|
183 |
|
|
|
(210 |
) |
|
|
|
144 |
|
Net income attributable to
Genie Energy Ltd. |
|
|
9,612 |
|
|
|
|
15,156 |
|
|
|
17,735 |
|
|
|
|
29,586 |
|
Dividends on preferred stock |
|
|
— |
|
|
|
|
(176 |
) |
|
|
— |
|
|
|
|
(333 |
) |
Net income attributable to
Genie Energy Ltd. common stockholders |
|
$ |
9,612 |
|
|
|
$ |
14,980 |
|
|
$ |
17,735 |
|
|
|
$ |
29,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to Genie Energy Ltd. common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
9,757 |
|
|
|
$ |
11,807 |
|
|
$ |
18,145 |
|
|
|
$ |
23,025 |
|
Discontinued operations |
|
|
(145 |
) |
|
|
|
3,173 |
|
|
|
(411 |
) |
|
|
|
6,228 |
|
Net income attributable to
Genie Energy Ltd. common stockholders |
|
$ |
9,612 |
|
|
|
$ |
14,980 |
|
|
$ |
17,734 |
|
|
|
$ |
29,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share
attributable to Genie Energy Ltd. common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.37 |
|
|
|
$ |
0.46 |
|
|
$ |
0.68 |
|
|
|
$ |
0.90 |
|
Discontinued operations |
|
|
(0.01 |
) |
|
|
|
0.12 |
|
|
|
(0.02 |
) |
|
|
|
0.24 |
|
Earnings per share attributable to Genie Energy Ltd. common
stockholders |
|
$ |
0.36 |
|
|
|
$ |
0.58 |
|
|
$ |
0.66 |
|
|
|
$ |
1.15 |
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.37 |
|
|
|
$ |
0.45 |
|
|
$ |
0.67 |
|
|
|
$ |
0.88 |
|
Discontinued operations |
|
|
(0.01 |
) |
|
|
|
0.12 |
|
|
|
(0.02 |
) |
|
|
|
0.24 |
|
Earnings per share attributable to Genie Energy Ltd. common
stockholders |
|
$ |
0.36 |
|
|
|
$ |
0.57 |
|
|
$ |
0.65 |
|
|
|
$ |
1.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of
shares used in calculation of earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
26,569 |
|
|
|
|
25,708 |
|
|
|
26,760 |
|
|
|
|
25,516 |
|
Diluted |
|
|
27,033 |
|
|
|
|
26,321 |
|
|
|
27,272 |
|
|
|
|
26,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common
share |
|
$ |
0.075 |
|
|
|
$ |
0.075 |
|
|
$ |
0.150 |
|
|
|
$ |
0.150 |
|
(i) Stock-based compensation
included in selling, general and administrative expenses |
|
$ |
458 |
|
|
|
$ |
756 |
|
|
$ |
1,207 |
|
|
|
$ |
1,605 |
|
GENIE ENERGY
LTD. CONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)
|
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(in thousands) |
|
Operating
activities |
|
|
|
|
|
|
Net income |
|
$ |
17,525 |
|
|
|
$ |
29,730 |
|
Net (loss) income from discontinued operations, net of tax |
|
|
(410 |
) |
|
|
|
6,227 |
|
Net income from continuing
operations |
|
|
17,935 |
|
|
|
|
23,503 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Provision for captive insurance liability |
|
|
1,676 |
|
|
|
|
— |
|
Depreciation and amortization |
|
|
415 |
|
|
|
|
191 |
|
Impairment of assets |
|
|
118 |
|
|
|
|
19 |
|
Provision for doubtful accounts receivable |
|
|
1,210 |
|
|
|
|
1,372 |
|
Inventory valuation allowance |
|
|
417 |
|
|
|
|
— |
|
Unrealized gain on marketable equity securities and investment and
others, net |
|
|
(443 |
) |
|
|
|
(162 |
) |
Stock-based compensation |
|
|
1,207 |
|
|
|
|
1,648 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
|
6,565 |
|
|
|
|
(4,468 |
) |
Inventory |
|
|
6,616 |
|
|
|
|
(2,472 |
) |
Prepaid expenses |
|
|
4,479 |
|
|
|
|
(1,971 |
) |
Other current assets and other assets |
|
|
1,919 |
|
|
|
|
941 |
|
Trade accounts payable, accrued expenses and other liabilities |
|
|
(18,156 |
) |
|
|
|
(2,430 |
) |
Due to IDT Corporation, net |
|
|
4 |
|
|
|
|
(21 |
) |
Income taxes payable |
|
|
2,362 |
|
|
|
|
(11,581 |
) |
Net cash provided by operating
activities of continuing operations |
|
|
26,324 |
|
|
|
|
4,569 |
|
Net cash provided by operating activities of discontinued
operations |
|
|
7,011 |
|
|
|
|
15,671 |
|
Net cash provided by operating activities |
|
|
33,335 |
|
|
|
|
20,240 |
|
Investing activities |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(1,562 |
) |
|
|
|
(561 |
) |
Purchase of solar system facility |
|
|
(1,344 |
) |
|
|
|
— |
|
Purchases of marketable equity securities and other investment |
|
|
(3,042 |
) |
|
|
|
(9,312 |
) |
Purchase of equity of subsidiary |
|
|
(1,200 |
) |
|
|
|
— |
|
Proceeds from the sale of marketable equity securities and other
investments |
|
|
— |
|
|
|
|
8,009 |
|
Proceeds from settlement of equity method investment |
|
|
— |
|
|
|
|
282 |
|
Repayment of notes receivable |
|
|
— |
|
|
|
|
19 |
|
Net cash used in investing activities |
|
|
(7,148 |
) |
|
|
|
(1,563 |
) |
Financing activities |
|
|
|
|
|
|
|
|
Dividends paid |
|
|
(4,152 |
) |
|
|
|
(4,763 |
) |
Repurchases of Class B common stock |
|
|
(5,897 |
) |
|
|
|
— |
|
Repurchases of Class B common stock from employees |
|
|
(1,508 |
) |
|
|
|
(1,475 |
) |
Repurchase of Class B common stock from Genie Foundation |
|
|
(768 |
) |
|
|
|
— |
|
Proceeds from the exercise of warrants |
|
|
— |
|
|
|
|
5,000 |
|
Redemption of preferred stock |
|
|
— |
|
|
|
|
(8,359 |
) |
Net cash used in financing activities |
|
|
(12,325 |
) |
|
|
|
(9,597 |
) |
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash |
|
|
(140 |
) |
|
|
|
(37 |
) |
Net increase in cash, cash equivalents, and restricted cash |
|
|
13,722 |
|
|
|
|
9,043 |
|
Cash, cash equivalents, and restricted cash (excluding cash held at
discontinued operations) at beginning of period |
|
|
165,479 |
|
|
|
|
106,080 |
|
Cash, cash equivalents and restricted cash (including cash
held at discontinued operations) at end of the period |
|
|
179,201 |
|
|
|
|
115,123 |
|
Less: Cash held at of
discontinued operations at end of period |
|
|
1,281 |
|
|
|
|
465 |
|
Cash, cash equivalents, and restricted cash (excluding cash
held at discontinued operations) at end of period |
|
$ |
177,920 |
|
|
|
$ |
114,658 |
|
Reconciliation of Non-GAAP Financial Measures for the
Second Quarter of 2024
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 and
disclosed Non-GAAP Net Income Attributable to Genie Energy Ltd.
Common Stockholders (Non-GAAP Net Income and Non-GAAP earnings per
share (Non-GAAP EPS). Adjusted EBITDA, Non-GAAP Net Income and
Non-GAAP EPS are non-GAAP financial measures.
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 income from operations and adds back depreciation,
amortization, and stock-based compensation and
deducts impairment of assets and equity in the net loss of
equity method investees, net.
Genie's measure of Non-GAAP Net Income starts
with net income attributable to Genie Energy Ltd. Common
Stockholders in accordance with GAAP and adds captive insurance
liability and the tax effect of this adjustment. These
additions are non-cash and/or non-routine items in the relevant
periods.
Adjusted EBITDA, Non-GAAP Net Income and
Non-GAAP EPS 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, Non-GAAP Net
Income and Non-GAAP EPS may not be comparable to similarly titled
measures reported by other companies.
Management believes that Genie’s measure of
Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS provide
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, non-GAAP
Net Income and Non-GAAP EPS, among other measures, as relevant
indicators of core operational strengths in its financial and
operational decision-making.
Management also uses Adjusted EBITDA, Non-GAAP
Net Income and Non-GAAP EPS to evaluate operating performance in
relation to Genie’s competitors. Disclosure of these non-GAAP
financial measures 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, Non-GAAP
Net Income and Non-GAAP EPS as well as the GAAP measures revenue,
gross profit, and income from operations, as well as net income, 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 assets is a component of income
(loss) from operations that is excluded from the calculation of
Adjusted EBITDA. The impairment of assets 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.
Captive insurance liability is
a non-cash charge incurred by Genie's insurance
operations. While there may be related charges in other
periods, the magnitude of these changes can fluctuate markedly and
do not reflect the performance of Genie's continuing operations.
Captive insurance losses are excluded from Genie's calculation
of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP
EPS 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.
Following are the reconciliations of Adjusted
EBITDA, Non-GAAP Net Income and Non-GAAP EPS on a consolidated
basis to its most directly comparable GAAP measure. Adjusted EBITDA
is reconciled to income from operations for Genie Energy on a
consolidated basis as well as for GRE.
Non-GAAP Reconciliation - Consolidated
Adjusted EBITDA
(in millions) |
|
1Q23 |
|
|
2Q23 |
|
|
3Q23 |
|
|
4Q23 |
|
|
1Q24 |
|
|
2Q24 |
|
|
2022 |
|
|
2023 |
|
Income (loss) from Operations |
|
$ |
11.3 |
|
|
$ |
15.0 |
|
|
$ |
17.9 |
|
|
$ |
(34.2 |
) |
|
|
$ |
9.8 |
|
|
$ |
10.6 |
|
|
$ |
78.4 |
|
|
$ |
10.0 |
|
Add back |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Captive insurance liability |
|
$ |
0.0 |
|
|
$ |
0.0 |
|
|
$ |
0.0 |
|
|
$ |
45.1 |
|
|
|
$ |
1.0 |
|
|
$ |
0.6 |
|
|
$ |
0.0 |
|
|
$ |
45.1 |
|
Depreciation and Amortization |
|
$ |
0.1 |
|
|
$ |
0.1 |
|
|
$ |
0.1 |
|
|
$ |
0.2 |
|
|
|
$ |
0.2 |
|
|
$ |
0.2 |
|
|
$ |
0.4 |
|
|
$ |
0.5 |
|
Non-Cash Compensation |
|
$ |
0.8 |
|
|
$ |
0.8 |
|
|
$ |
0.6 |
|
|
$ |
0.5 |
|
|
|
$ |
0.7 |
|
|
$ |
0.5 |
|
|
$ |
2.9 |
|
|
$ |
2.7 |
|
Impairment |
|
$ |
0.0 |
|
|
$ |
0.0 |
|
|
$ |
0.0 |
|
|
$ |
0.0 |
|
|
|
$ |
0.0 |
|
|
$ |
0.1 |
|
|
$ |
2.1 |
|
|
$ |
0.0 |
|
Equity in net loss (income) of equity method
investees |
|
$ |
0.2 |
|
|
$ |
(0.1 |
) |
|
$ |
(0.1 |
) |
|
$ |
(0.1 |
|
) |
|
$ |
(0.1 |
) |
|
$ |
0.0 |
|
|
$ |
0.0 |
|
|
$ |
(0.1 |
) |
Adjusted EBITDA |
|
$ |
12.4 |
|
|
$ |
15.8 |
|
|
$ |
18.5 |
|
|
$ |
11.5 |
|
|
|
$ |
11.7 |
|
|
$ |
12.0 |
|
|
$ |
83.8 |
|
|
$ |
58.2 |
|
Non-GAAP Reconciliation - GRE Adjusted
EBITDA
(in millions) |
|
2Q24 |
|
|
2Q23 |
|
Income from
Operations |
|
$ |
14.6 |
|
|
$ |
18.4 |
|
Add back |
|
|
|
|
|
|
|
|
Depreciation and
Amortization |
|
$ |
0.0 |
|
|
$ |
0.1 |
|
Stock-based Compensation |
|
$ |
0.3 |
|
|
$ |
0.3 |
|
Impairment |
|
$ |
0.0 |
|
|
$ |
0.0 |
|
Equity in the income of equity
method investee |
|
$ |
0.0 |
|
|
$ |
0.0 |
|
Adjusted
EBITDA |
|
$ |
14.9 |
|
|
$ |
18.8 |
|
Non-GAAP Reconciliation -
Consolidated Non-GAAP Net Income Attributable to Genie Energy
Ltd. Common Stockholders and Non-GAAP Diluted Income Per
Share
(in
millions except for EPS) |
|
2Q24 |
|
|
2Q23 |
|
Net income
attributable to Genie Energy Ltd. Common Stockholders |
|
$ |
9.6 |
|
|
|
$ |
15.0 |
|
Add back |
|
|
|
|
|
|
|
|
Captive insurance
liability |
|
$ |
0.6 |
|
|
|
$ |
0.0 |
|
Income tax effect of
adjustment |
|
$ |
(0.2 |
) |
|
|
|
0.0 |
|
Non-GAAP net income
attributable to Genie Energy Ltd. Common Stockholders |
|
$ |
10.1 |
|
|
|
$ |
15.0 |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
$ |
0.36 |
|
|
|
$ |
0.57 |
|
Total adjustments |
|
$ |
0.02 |
|
|
|
$ |
0.00 |
|
Non-GAAP diluted
earnings per share |
|
$ |
0.37 |
|
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in the calculation of diluted earnings per
share |
|
|
27.0 |
|
|
|
|
26.1 |
|
# # #
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