Genie Energy Announces Second Quarter 2024 Results
Genie Energy (NYSE: GNE) reported Q2 2024 results with revenue decreasing 3.0% to $90.7 million and net income attributable to common stockholders of $9.6 million ($0.36 per diluted share). Adjusted EBITDA decreased to $12.0 million from $15.8 million in Q2 2023. The company's cash position improved, with cash, restricted cash, and marketable securities increasing to $178.3 million.
Genie Retail Energy (GRE) saw a 3.4% revenue decrease to $86.7 million, while Genie Renewables (GREW) experienced 6.6% revenue growth to $4.0 million. The company reaffirmed its full-year 2024 guidance of $40-$50 million in consolidated Adjusted EBITDA. Genie also announced a quarterly dividend of $0.075 per share and repurchased approximately 169,000 shares for $2.6 million during Q2.
Genie Energy (NYSE: GNE) ha riportato i risultati del secondo trimestre del 2024, evidenziando un calo del fatturato del 3,0%, scendendo a 90,7 milioni di dollari, e un utile netto attribuibile agli azionisti ordinari di 9,6 milioni di dollari (0,36 dollari per azione diluita). EBITDA rettificato è diminuito a 12,0 milioni di dollari rispetto ai 15,8 milioni del secondo trimestre del 2023. La posizione di liquidità dell'azienda è migliorata, con liquidità, liquidità vincolata e titoli facilmente liquidabili che sono aumentati a 178,3 milioni di dollari.
Genie Retail Energy (GRE) ha registrato un calo del fatturato del 3,4%, scendendo a 86,7 milioni di dollari, mentre Genie Renewables (GREW) ha mostrato una crescita del 6,6% del fatturato, raggiungendo 4,0 milioni di dollari. L'azienda ha confermato le previsioni per l'intero anno 2024, con un EBITDA rettificato consolidato previsto tra 40 e 50 milioni di dollari. Genie ha inoltre annunciato un dividendo trimestrale di 0,075 dollari per azione e ha riacquistato circa 169.000 azioni per un valore di 2,6 milioni di dollari durante il secondo trimestre.
Genie Energy (NYSE: GNE) reportó los resultados del segundo trimestre de 2024, con un descenso del 3.0% en los ingresos, alcanzando $90.7 millones, y una ganancia neta atribuible a los accionistas ordinarios de $9.6 millones ($0.36 por acción diluida). El EBITDA ajustado disminuyó a $12.0 millones desde $15.8 millones en el segundo trimestre de 2023. La situación de liquidez de la empresa mejoró, con efectivo, efectivo restringido y valores negociables aumentando a $178.3 millones.
Genie Retail Energy (GRE) vio una disminución del 3.4% en ingresos, alcanzando $86.7 millones, mientras que Genie Renewables (GREW) experimentó un crecimiento del 6.6% en ingresos, alcanzando $4.0 millones. La empresa reafirmó su pronóstico para todo el año 2024 de un EBITDA ajustado consolidado de $40 a $50 millones. Genie también anunció un dividendo trimestral de $0.075 por acción y recompró aproximadamente 169,000 acciones por $2.6 millones durante el segundo trimestre.
제니 에너지(이 뉴욕 증권 거래소: GNE)는 2024년 2분기 실적을 보고하며 수익이 3.0% 감소한 9,070만 달러를 기록했으며, 보통주 주주에게 귀속된 순이익은 960만 달러(희석 주당 0.36달러)로 나타났습니다. 조정 EBITDA는 2023년 2분기 1,580만 달러에서 1,200만 달러로 감소했습니다. 회사의 현금 위치는 개선되어 현금, 제한된 현금 및 유가증권이 1억 7,830만 달러로 증가했습니다.
제니 리테일 에너지(GRE)는 수익이 3.4% 감소하여 8,670만 달러를 기록한 반면, 제니 재생 에너지(GREW)는 수익이 6.6% 증가하여 400만 달러에 달했습니다. 이 회사는 2024년 전체 연도에 대한 조정 EBITDA consolidado 전망을 4천만에서 5천만 달러로 재확인했습니다. 제니는 또한 주당 0.075달러의 분기 배당금을 발표하고, 2분기 동안 약 16만 9천 주를 260만 달러에 재구매했습니다.
Genie Energy (NYSE: GNE) a rapporté les résultats du deuxième trimestre 2024, avec une baisse de 3,0 % du chiffre d'affaires à 90,7 millions de dollars et un bénéfice net attribuable aux actionnaires ordinaires de 9,6 millions de dollars (0,36 dollar par action diluée). EBITDA ajusté a diminué à 12,0 millions de dollars contre 15,8 millions de dollars au deuxième trimestre 2023. La position de liquidité de l'entreprise s'est améliorée, avec des liquidités, des liquidités restreintes et des titres négociables atteignant 178,3 millions de dollars.
Genie Retail Energy (GRE) a enregistré une baisse de chiffre d'affaires de 3,4 %, à 86,7 millions de dollars, tandis que Genie Renewables (GREW) a connu une croissance de 6,6 % du chiffre d'affaires, atteignant 4,0 millions de dollars. L'entreprise a réaffirmé ses prévisions pour l'année 2024, avec un EBITDA consolidé ajusté prévu entre 40 et 50 millions de dollars. Genie a également annoncé un dividende trimestriel de 0,075 dollar par action et a racheté environ 169 000 actions pour 2,6 millions de dollars au cours du deuxième trimestre.
Genie Energy (NYSE: GNE) berichtete über die Ergebnisse des zweiten Quartals 2024, mit einem Umsatzrückgang von 3,0 % auf 90,7 Millionen Dollar und einem Nettoergebnis, das den Aktionären zuzurechnen ist, von 9,6 Millionen Dollar (0,36 Dollar pro verwässerter Aktie). Adjusted EBITDA sank auf 12,0 Millionen Dollar von 15,8 Millionen Dollar im zweiten Quartal 2023. Die Liquiditätslage des Unternehmens verbesserte sich, mit Bargeld, eingeschränktem Bargeld und handelbaren Wertpapieren, die auf 178,3 Millionen Dollar stiegen.
Genie Retail Energy (GRE) verzeichnete einen Umsatzrückgang von 3,4 % auf 86,7 Millionen Dollar, während Genie Renewables (GREW) ein Umsatzwachstum von 6,6 % auf 4,0 Millionen Dollar erlebte. Das Unternehmen bestätigte seine Prognose für das Gesamtjahr 2024 von 40 bis 50 Millionen Dollar im konsolidierten Adjusted EBITDA. Genie gab außerdem eine vierteljährliche Dividende von 0,075 Dollar pro Aktie bekannt und kaufte im zweiten Quartal etwa 169.000 Aktien für 2,6 Millionen Dollar zurück.
- Cash, restricted cash, and marketable securities increased to $178.3 million from $162.4 million in the previous quarter
- Genie Renewables segment revenue grew 6.6% year-over-year
- Company reaffirmed full-year 2024 Adjusted EBITDA guidance of $40-$50 million
- Quarterly dividend of $0.075 per share announced
- Share repurchase of $2.6 million executed in Q2
- Overall revenue decreased 3.0% year-over-year to $90.7 million
- Net income attributable to common stockholders decreased to $9.6 million from $15.0 million in Q2 2023
- Adjusted EBITDA decreased to $12.0 million from $15.8 million year-over-year
- Genie Retail Energy segment revenue declined 3.4% year-over-year
- Gross margin decreased to 36.8% from 40.9% in Q2 2023
Insights
Genie Energy's Q2 2024 results show a mixed performance. While revenue decreased
Positively, Genie Renewables segment showed promise with
Management's guidance of
Genie Energy's Q2 results reflect the evolving dynamics of the energy market. The slight decline in electricity and natural gas revenues suggests a stabilizing retail energy environment, contrasting with the volatility seen in previous years. This normalization could lead to more predictable earnings but may also limit upside potential.
The company's strategic pivot towards renewables is noteworthy. The Genie Renewables segment, despite its smaller size, shows promising growth with a
The consistent RCE (Residential Customer Equivalent) count around 345,000 suggests a mature retail energy business. To drive growth, Genie may need to expand into new markets or accelerate its renewable energy transition, balancing the stable cash flows from retail with the growth potential of renewables.
Genie Energy's Q2 2024 results present a stable financial picture with some growth catalysts. The company's ability to maintain profitability despite revenue decline showcases operational efficiency. The increase in cash and cash equivalents by nearly
The company's diversification strategy into renewables is promising. The Genie Renewables segment, although small, shows high growth potential and margin expansion. This could be a key differentiator in the long term as the energy sector transitions towards cleaner sources.
Investors should note the consistent shareholder returns through dividends and share repurchases. With a
Newark, NJ, Aug. 06, 2024 (GLOBE NEWSWIRE) -- 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
"Our strong performance over the first half of 2024 puts us on track to achieve our full year guidance of
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 | |
| ● | Gross profit decreased | |
| ● | Income from operations decreased to | |
| ● | Adjusted EBITDA1 decreased to | |
| ● | Net income attributable to Genie common stockholders and income per diluted share EPS attributable to Genie common stockholders of | |
| ● | Non-GAAP net income1 and non-GAAP EPS1 attributable to Genie common stockholders of | |
| ● | Cash and cash equivalents, short and long-term restricted cash, and marketable equity securities increased to | |
| ● | Genie repurchased approximately 169,000 shares of its Class B Common stock for | |
| ● | Genie will pay a |
| 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
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
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
Total assets as of June 30, 2024 were
Cash provided by operating activities increased to
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
"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, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
brian@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 | 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, | |||||||||
| 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, | 16 | 16 | |||||||
| Class B common stock, | 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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FAQ
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