Genie Energy Announces Third Quarter 2024 Results
Genie Energy (NYSE: GNE) reported Q3 2024 results with revenue decreasing 10.5% to $111.9 million and net income falling to $10.2 million ($0.38 per share) from $14.5 million ($0.53 per share) year-over-year. The company added 36,000 net new meters during the quarter, while maintaining strong electricity and gas margins. Cash and equivalents increased to $191.7 million. The company expects to achieve the high end of its full-year Adjusted EBITDA guidance of $40-50 million. Genie Renewables showed improved performance with 29.2% revenue growth, while the retail energy segment saw a 12.1% revenue decline due to milder weather and increased customer acquisition costs.
Genie Energy (NYSE: GNE) ha riportato risultati per il terzo trimestre del 2024 con un fatturato in diminuzione del 10,5% a 111,9 milioni di dollari e un reddito netto sceso a 10,2 milioni di dollari (0,38 dollari per azione) rispetto ai 14,5 milioni di dollari (0,53 dollari per azione) dell'anno precedente. L'azienda ha aggiunto 36.000 nuovi contatori netti durante il trimestre, mantenendo margini solidi sia per l'elettricità che per il gas. Disponibilità liquide e equivalenti sono aumentate a 191,7 milioni di dollari. L'azienda prevede di raggiungere l'estremità alta della sua guida di EBITDA rettificato per l'intero anno, compresa tra 40 e 50 milioni di dollari. Genie Renewables ha mostrato un miglioramento delle performance con una crescita dei ricavi del 29,2%, mentre il segmento energetico al dettaglio ha registrato una diminuzione del 12,1% dei ricavi a causa di un clima più mite e dei costi di acquisizione dei clienti aumentati.
Genie Energy (NYSE: GNE) informó los resultados del tercer trimestre de 2024, con ingresos disminuyendo un 10.5% a 111.9 millones de dólares y una caída en el ingreso neto a 10.2 millones de dólares (0.38 dólares por acción) desde 14.5 millones de dólares (0.53 dólares por acción) en comparación con el año anterior. La compañía agregó 36,000 nuevos medidores netos durante el trimestre, manteniendo márgenes sólidos tanto en electricidad como en gas. Efectivo y equivalentes aumentaron a 191.7 millones de dólares. La empresa espera alcanzar el extremo alto de su guía de EBITDA ajustado para el año completo de 40 a 50 millones de dólares. Genie Renewables mostró un rendimiento mejorado con un crecimiento de ingresos del 29.2%, mientras que el segmento de energía minorista experimentó una disminución de ingresos del 12.1% debido al clima más templado y al aumento en los costos de adquisición de clientes.
제니 에너지 (NYSE: GNE)는 2024년 3분기 결과를 보고했으며, 매출이 10.5% 감소하여 1억 1,190만 달러에 이를 것이며, 순이익은 1,020만 달러(주당 0.38 달러)로 작년의 1,450만 달러(주당 0.53 달러)에서 하락했습니다. 회사는 분기 동안 36,000개의 새로운 계량기를 추가했으며, 전기 및 가스 마진을 안정적으로 유지하고 있습니다. 현금 및 현금성 자산은 1억 9,170만 달러로 증가했습니다. 회사는 연간 조정 EBITDA 가이던스의 상단 목표인 4천만에서 5천만 달러를 달성할 것으로 예상하고 있습니다. 제니 재생 가능 에너지는 29.2%의 매출 성장을 보였고, 소매 에너지 부문은 온화한 날씨와 고객 유치 비용 증가로 인해 12.1%의 매출 감소를 경험했습니다.
Genie Energy (NYSE: GNE) a annoncé ses résultats pour le 3ème trimestre 2024, avec des revenus en baisse de 10,5 % à 111,9 millions de dollars et un revenu net tombé à 10,2 millions de dollars (0,38 dollar par action) contre 14,5 millions de dollars (0,53 dollar par action) l'année précédente. La société a ajouté 36 000 nouveaux compteurs nets au cours du trimestre, tout en maintenant des marges solides sur l'électricité et le gaz. Trésorerie et équivalents ont augmenté pour atteindre 191,7 millions de dollars. La société s'attend à atteindre le haut de sa guidance EBITDA ajustée pour l'année entière, qui se situe entre 40 et 50 millions de dollars. Genie Renewables a montré une performance améliorée avec une croissance des revenus de 29,2 %, tandis que le segment de l'énergie de détail a connu une baisse des revenus de 12,1 % en raison d'un climat plus doux et d'une augmentation des coûts d'acquisition des clients.
Genie Energy (NYSE: GNE) berichtete über die Ergebnisse für das 3. Quartal 2024, wobei die Einnahmen um 10,5 % auf 111,9 Millionen US-Dollar zurückgingen und der Nettogewinn auf 10,2 Millionen US-Dollar (0,38 US-Dollar pro Aktie) im Vergleich zu 14,5 Millionen US-Dollar (0,53 US-Dollar pro Aktie) im Vorjahr fiel. Das Unternehmen fügte im Quartal 36.000 Nettoneu-Zähler hinzu und bewahrte dabei starke Margen für Strom und Gas. Bargeld und Äquivalente stiegen auf 191,7 Millionen US-Dollar. Das Unternehmen erwartet, das obere Ende seiner Prognose für das angepasste EBITDA für das gesamte Jahr von 40 bis 50 Millionen US-Dollar zu erreichen. Genie Renewables zeigte eine verbesserte Leistung mit einem Umsatzwachstum von 29,2 %, während der Einzelhandelsenergiesektor aufgrund milderer Wetterbedingungen und gestiegener Kundenakquisitionskosten einen Umsatzrückgang von 12,1 % verzeichnete.
- Added 36,000 net new meters in Q3
- Cash position increased to $191.7 million from $178.3 million QoQ
- Renewables segment revenue grew 29.2% YoY
- Gross margin improved to 33.9% from 32.9%
- On track to hit high end of $40-50M Adjusted EBITDA guidance
- Revenue decreased 10.5% YoY to $111.9 million
- Net income declined 29.5% YoY to $10.2 million
- Operating income fell 34.7% YoY to $11.7 million
- Adjusted EBITDA decreased 26.7% YoY to $13.6 million
- Cash flow from operations declined 18.4% YoY to $22.9 million
Insights
The Q3 results show mixed performance with some concerning trends. Revenue declined
- Strong cash position of
$191.7 million , up from$178.3 million in Q2 - Healthy gross margins at
33.9% , improving 100 basis points YoY - Addition of 36,000 net new meters through organic growth and aggregation
- Renewables segment showing promising growth with
29.2% revenue increase
The company's strategic shift in the renewables business and expansion into California's gas market demonstrate forward-thinking management. While near-term profitability has declined, the company maintains strong fundamentals and is executing well on its growth initiatives.
The operational metrics reveal important sector dynamics. The decrease in per-meter electricity consumption, despite customer base growth, signals potential market challenges. Key developments include:
- Pipeline expansion in utility-scale solar with 72MW under site control
- Strategic pivot from C&I to utility-scale projects in solar division
- Geographic diversification through California market entry
- Improved performance in energy advisory business
The company's ability to maintain robust electricity and gas margins despite market pressures is noteworthy. The renewables transformation, particularly in solar development, positions GNE well for long-term growth in the evolving energy landscape.
Newark, NJ, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Genie Energy, Ltd. (NYSE: GNE), a leading retail energy and renewable energy solutions provider, today announced results for the third quarter of 2024.
Michael Stein, chief executive officer of Genie Energy, commented:
"Our third quarter featured strong operational and financial results consistent with our performance in recent quarters. We are on track to deliver the high end of our full year Adjusted EBITDA guidance of
"At GRE, our retail energy business, we added 36,000 net new meters during the quarter driven by organic sales activity and a large aggregation deal. Electricity and gas margins remained robust, while slightly milder summer weather contributed to a reduction in per-meter electricity consumption. The decrease in per-meter consumption in combination with increased sales costs drove comparative, year-over-year decreases in revenue and profitability. Looking ahead, we have begun the process of entering the California gas market as we continue to diversify our geographic footprint, and see generally favorable meter acquisition and operating environments across our retail markets.
"We have been strategically repositioning GREW, our renewables business, for stronger top line growth and improved operating margins. That effort began to pay off this quarter. Diversegy, our energy advisory and brokerage business, nearly doubled revenue year over year and turned Adjusted EBITDA1 positive.
“At Genie Solar, we are tightening our focus on the utility scale solar generation market and moving away from commercial and industrial generation projects. This shift enabled us to lock in strong gross profits, which increased exponentially compared to the year ago quarter, while significantly reducing SG&A expense. We also further expanded Genie Solar’s development pipeline, gaining site control for an additional six projects while moving another to the permitting stage. All in, GREW delivered outstanding third quarter results."
Third Quarter 2024 Highlights
(Unless otherwise noted, 3Q24 results are compared to 3Q23, and results of Genie Retail Energy International (GREI) are included in discontinued operations for all periods.)
- Revenue decreased
10.5% to$111.9 million from$125.0 million ; - Gross profit decreased
7.7% to$37.9 million from$41.1 million . Gross margin increased to33.9% from32.9% ; - Income from operations decreased to
$11.7 million from$17.9 million ; - Adjusted EBITDA1 decreased to
$13.6 million from$18.5 million ; - Net income attributable to Genie common stockholders and income per diluted share EPS attributable to Genie common stockholders of
$10.2 million and$0.38 compared to$14.5 million and$0.53 , respectively; - Non-GAAP net income1 and non-GAAP EPS1 attributable to Genie common stockholders of
$10.9 million and$0.41 compared to$14.5 million and$0.53 , respectively; - Cash and cash equivalents, short and long-term restricted cash, and marketable equity securities increased to
$191.7 million at September 30, 2024, from$178.3 million at June 30, 2024; - Genie repurchased approximately 123,000 shares of its Class B Common stock for
$2.0 million during 3Q24; - Genie will pay a
$0.07 5 per share quarterly dividend to Class A and Class B common stockholders on November 20, 2024, with a record date of November 12, 2024.
1Adjusted 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)* | 3Q24 | 3Q23 | Change | ||||||||||||
| Total revenue | $ | 111.9 | $ | 125.0 | (10.5 | ) | % | ||||||||
| Genie Retail Energy | $ | 105.8 | $ | 120.3 | (12.1 | ) | % | ||||||||
| Electricity | $ | 100.7 | $ | 114.0 | (11.7 | ) | % | ||||||||
| Natural gas | $ | 5.1 | $ | 5.0 | 1.3 | % | |||||||||
| Others | $ | 0.1 | $ | 1.3 | (96.1 | ) | % | ||||||||
| Genie Renewables | $ | 6.1 | $ | 4.7 | 29.2 | % | |||||||||
| Gross margin | 33.9 | % | 32.9 | % | 100 | bps | |||||||||
| Genie Retail Energy | 33.8 | % | 33.9 | % | (10 | ) | bps | ||||||||
| Genie Renewables | 34.9 | % | 5.3 | % | 2,960 | bps | |||||||||
| Income from operations | $ | 11.7 | $ | 17.9 | (34.7 | ) | % | ||||||||
| Operating margin | 10.4 | % | 14.3 | % | (390 | ) | bps | ||||||||
| Net income from continuing operations | $ | 10.3 | $ | 14.5 | (29.3 | ) | % | ||||||||
| (Loss) income attributable to discontinued operations, net of tax | $ | (0.0 | ) | $ | (0.3 | ) | (91.8 | ) | % | ||||||
| Net income attributable to Genie common stockholders | $ | 10.2 | $ | 14.5 | (29.5 | ) | % | ||||||||
| Diluted earnings per share | $ | 0.38 | $ | 0.53 | $ | (0.15 | ) | ||||||||
| Non-GAAP net income attributable to Genie common stockholders | $ | 10.9 | $ | 14.5 | (24.4 | ) | % | ||||||||
| Non-GAAP diluted earnings per share | $ | 0.41 | $ | 0.53 | $ | (0.12 | ) | ||||||||
| Adjusted EBITDA | $ | 13.6 | $ | 18.5 | (26.7 | ) | % | ||||||||
| Cash flow from continuing operating activities | $ | 22.9 | $ | 28.0 | (18.4 | ) | % | ||||||||
| * | Numbers may not add due to rounding |
Segment Highlights
Genie Retail Energy (GRE)
GRE's third quarter revenue decreased
GRE Operational Metrics
| (RCEs and Meters in thousands)* | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | |||||||||||||||
| RCEs | 375 | 350 | 348 | 345 | 380 | |||||||||||||||
| Electricity | 298 | 272 | 267 | 266 | 302 | |||||||||||||||
| Natural gas | 77 | 78 | 81 | 78 | 79 | |||||||||||||||
| Meters | 385 | 361 | 365 | 362 | 399 | |||||||||||||||
| Electricity | 304 | 279 | 281 | 278 | 311 | |||||||||||||||
| Natural gas | 81 | 82 | 83 | 84 | 87 | |||||||||||||||
| Gross adds | 60 | 52 | 70 | 53 | 104 | |||||||||||||||
| Churn** | 4.4 | % | 5.4 | % | 5.5 | % | 4.6 | % | 5.6 | % | ||||||||||
| * | Numbers may not add due to rounding | |
| ** | Excludes the impacts of aggregation deal expirations |
Genie Renewables (GREW)
GREW's third quarter revenue increased
GREW's loss from operations decreased to
At September 30, 2024, Genie Solar's operating portfolio and development pipeline comprised:
| Pipeline | Total | Operational | Site Control | Permitting | Construction | |||||
| MW | 106 | 10 | 72 | 15 | 10 | |||||
| Project count | 20 | 1 | 14 | 3 | 2 |
During the quarter, portfolio and pipeline net additions totaled 21 MW and 6 projects.
Balance Sheet and Cash Flow Highlights
As of September 30, 2024, Genie reported cash and cash equivalents, short and long-term restricted cash, and marketable equity securities of
Total assets as of September 30, 2024 were
Cash provided by operating activities decreased to
Trended Financial Information*
| (in millions except EPS)** | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 2022 | 2023 | ||||||||||||||||||||||||||||
| Total Revenue | $ | 105.3 | $ | 93.5 | $ | 125.0 | $ | 104.9 | $ | 119.7 | $ | 90.7 | $ | 111.9 | $ | 316.3 | $ | 428.7 | |||||||||||||||||||
| Genie Retail Energy | $ | 101.4 | $ | 89.7 | $ | 120.3 | $ | 98.4 | $ | 112.5 | $ | 86.7 | $ | 105.8 | $ | 304.7 | $ | 409.9 | |||||||||||||||||||
| Electricity | $ | 74.5 | $ | 80.2 | $ | 114.0 | $ | 82.1 | $ | 89.4 | $ | 78.3 | $ | 100.7 | $ | 241.8 | $ | 350.8 | |||||||||||||||||||
| Natural gas | $ | 26.9 | $ | 9.0 | $ | 5.0 | $ | 15.1 | $ | 22.4 | $ | 8.4 | $ | 5.1 | $ | 62.1 | $ | 56.0 | |||||||||||||||||||
| Others | $ | 0.0 | $ | 0.6 | $ | 1.3 | $ | 1.2 | $ | 0.7 | $ | 0.0 | $ | 0.1 | $ | 0.7 | $ | 3.1 | |||||||||||||||||||
| Genie Renewables | $ | 3.9 | $ | 3.7 | $ | 4.7 | $ | 6.5 | $ | 7.2 | $ | 4.0 | $ | 6.1 | $ | 11.6 | $ | 18.8 | |||||||||||||||||||
| Gross Profit | 33.3 | 38.2 | 41.1 | 33.6 | 33.8 | 33.3 | 37.9 | 155.5 | 146.2 | ||||||||||||||||||||||||||||
| Genie Retail Energy | 32.5 | 37.5 | 40.8 | 32.5 | 32.2 | 32.3 | 35.8 | 153.7 | 143.4 | ||||||||||||||||||||||||||||
| Genie Renewables | 0.7 | 0.7 | 0.3 | 1.1 | 1.6 | 1.1 | 2.1 | 1.8 | 2.8 | ||||||||||||||||||||||||||||
| Gross Margin | 31.6 | % | 40.9 | % | 32.9 | % | 32.1 | % | 28.2 | % | 36.8 | % | 33.9 | % | 49.2 | % | 34.1 | % | |||||||||||||||||||
| Genie Retail Energy | 32.1 | % | 41.8 | % | 33.9 | % | 33.0 | % | 28.6 | % | 37.2 | % | 33.8 | % | 50.4 | % | 35.0 | % | |||||||||||||||||||
| Genie Renewables | 19.3 | % | 19.6 | % | 5.3 | % | 17.2 | % | 22.0 | % | 26.8 | % | 34.9 | % | 15.6 | % | 15.1 | % | |||||||||||||||||||
| Income (loss) from operations | $ | 11.3 | $ | 15.0 | $ | 17.9 | $ | (34.2 | ) | $ | 9.8 | $ | 10.6 | $ | 11.7 | $ | 78.5 | $ | 10.0 | ||||||||||||||||||
| Operating margin | 10.7 | % | 16.1 | % | 14.3 | % | (32.6 | )% | 8.2 | % | 11.6 | % | 10.4 | % | 24.8 | % | 2.3 | % | |||||||||||||||||||
| Net income (loss) attributable to Genie common stockholders | $ | 14.3 | $ | 15.0 | $ | 14.5 | $ | (24.5 | ) | $ | 8.1 | $ | 9.6 | $ | 10.2 | $ | 85.9 | $ | 19.2 | ||||||||||||||||||
| Diluted earnings (loss) per share | $ | 0.54 | $ | 0.57 | $ | 0.53 | $ | (0.90 | ) | $ | 0.30 | $ | 0.36 | $ | 0.38 | $ | 3.26 | $ | 0.74 | ||||||||||||||||||
| Adjusted EBITDA | $ | 12.4 | $ | 15.8 | $ | 18.5 | $ | 11.4 | $ | 11.7 | $ | 12.0 | $ | 13.6 | $ | 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 |
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: 644435.
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: 51441 . The replay will remain available through Wednesday, November 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's (GREW) holdings include Genie Solar, a vertically-integrated provider of community and utility-scale solar energy solutions, and Diversegy, an energy procurement advisor. 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
Avi Goldin
Chief Financial Officer
Genie Energy, Ltd.
agoldin@genie.com
GENIE ENERGY LTD.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
| September 30, 2024 | December 31, 2023 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents (including amounts related to variable interest entity of | $ | 136,295 | $ | 107,609 | ||||||
| Restricted cash—short-term (including amounts related to variable interest entity of | 7,686 | 10,442 | ||||||||
| Marketable equity securities | 420 | 396 | ||||||||
| Trade accounts receivable, net of allowance for doubtful accounts of | 50,335 | 61,909 | ||||||||
| Inventory | 8,513 | 14,598 | ||||||||
| Prepaid expenses (including amounts related to variable interest entity of | 11,408 | 16,222 | ||||||||
| Other current assets | 6,726 | 5,475 | ||||||||
| Current assets of discontinued operations | 6,280 | 13,182 | ||||||||
| Total current assets | 227,663 | 229,833 | ||||||||
| Restricted cash—long-term | 47,271 | 44,945 | ||||||||
| Property and equipment, net | 22,396 | 15,192 | ||||||||
| Goodwill | 12,690 | 9,998 | ||||||||
| Other intangibles, net | 2,459 | 2,735 | ||||||||
| Deferred income tax assets, net | 5,197 | 5,200 | ||||||||
| Other assets (including amounts related to variable interest entity of | 18,821 | 15,247 | ||||||||
| Noncurrent assets of discontinued operations | 5,184 | 7,405 | ||||||||
| Total assets | $ | 341,681 | $ | 330,555 | ||||||
| Liabilities and equity | ||||||||||
| Current liabilities: | ||||||||||
| Trade accounts payable | 23,679 | 27,881 | ||||||||
| Accrued expenses (including amounts related to variable interest entity of | 44,211 | 49,389 | ||||||||
| Income taxes payable | 12,988 | 6,699 | ||||||||
| Due to IDT Corporation, net | 116 | 145 | ||||||||
| Other current liabilities | 6,194 | 9,280 | ||||||||
| Current liabilities of discontinued operations | 1,637 | 4,858 | ||||||||
| Total current liabilities | 88,825 | 98,252 | ||||||||
| Noncurrent captive insurance liability | 47,271 | 44,945 | ||||||||
| Notes payable | 1,775 | — | ||||||||
| Other liabilities | 2,821 | 2,212 | ||||||||
| Noncurrent liabilities of discontinued operations | 703 | 638 | ||||||||
| Total liabilities | 141,395 | 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 September 30, 2024 and December 31, 2023 | — | — | ||||||||
| Class A common stock, | 16 | 16 | ||||||||
| Class B common stock, | 293 | 288 | ||||||||
| Additional paid-in capital | 158,570 | 156,101 | ||||||||
| Treasury stock, at cost, consisting of 3,659 and 2,944 shares of Class B common stock at September 30, 2024 and December 31, 2023 | (34,951 | ) | (22,661 | ) | ||||||
| Accumulated other comprehensive income | 5,212 | 3,299 | ||||||||
| Retained earnings | 81,959 | 60,196 | ||||||||
| Total Genie Energy Ltd. stockholders’ equity | 211,099 | 197,239 | ||||||||
| Noncontrolling interests: | ||||||||||
| Noncontrolling interests | (9,943 | ) | (12,731 | ) | ||||||
| Receivable from issuance of equity | (870 | ) | ||||||||
| Noncontrolling interests | (10,813 | ) | (12,731 | ) | ||||||
| Total equity | 200,286 | 184,508 | ||||||||
| Total liabilities and equity | $ | 341,681 | $ | 330,555 | ||||||
GENIE ENERGY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Electricity | $ | 100,694 | $ | 114,002 | $ | 268,390 | $ | 268,688 | ||||||||
| Natural gas | 5,055 | 4,990 | 35,867 | 40,890 | ||||||||||||
| Other | 6,168 | 6,057 | 18,043 | 14,209 | ||||||||||||
| Total revenues | 111,917 | 125,049 | 322,300 | 323,787 | ||||||||||||
| Cost of revenues | 74,010 | 83,967 | 217,271 | 211,211 | ||||||||||||
| Gross profit | 37,907 | 41,082 | 105,029 | 112,576 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative (i) | 25,160 | 23,196 | 70,076 | 68,380 | ||||||||||||
| Provision for captive insurance liability | 991 | — | 2,667 | — | ||||||||||||
| Impairment of assets | 80 | — | 199 | — | ||||||||||||
| Income from operations | 11,676 | 17,886 | 32,087 | 44,196 | ||||||||||||
| Interest income | 2,346 | 1,331 | 5,049 | 3,313 | ||||||||||||
| Interest expense | (22 | ) | (27 | ) | (385 | ) | (75 | ) | ||||||||
| Gain on marketable equity securities and investments | 122 | 334 | 349 | 385 | ||||||||||||
| Other income, net | 56 | (4 | ) | 1,398 | 3,137 | |||||||||||
| Income before income taxes | 14,178 | 19,520 | 38,498 | 50,956 | ||||||||||||
| Provision for income taxes | (3,924 | ) | (5,018 | ) | (10,309 | ) | (12,951 | ) | ||||||||
| Net income from continuing operations | 10,254 | 14,502 | 28,189 | 38,005 | ||||||||||||
| (Loss) income from discontinued operations, net of taxes | (25 | ) | (304 | ) | (435 | ) | 5,923 | |||||||||
| Net income | 10,229 | 14,198 | 27,754 | 43,928 | ||||||||||||
| Net income (loss) attributable to noncontrolling interests, net | 30 | (261 | ) | (179 | ) | (118 | ) | |||||||||
| Net income attributable to Genie Energy Ltd. | 10,199 | 14,459 | 27,933 | 44,046 | ||||||||||||
| Dividends on preferred stock | — | — | — | (333 | ) | |||||||||||
| Net income attributable to Genie Energy Ltd. common stockholders | $ | 10,199 | $ | 14,459 | $ | 27,933 | $ | 43,713 | ||||||||
| Net income (loss) attributable to Genie Energy Ltd. common stockholders | ||||||||||||||||
| Continuing operations | $ | 10,224 | $ | 14,763 | $ | 28,368 | $ | 37,789 | ||||||||
| Discontinued operations | (25 | ) | (304 | ) | (435 | ) | 5,924 | |||||||||
| Net income attributable to Genie Energy Ltd. common stockholders | $ | 10,199 | $ | 14,459 | $ | 27,933 | $ | 43,713 | ||||||||
| Earnings (loss) per share attributable to Genie Energy Ltd. common stockholders: | ||||||||||||||||
| Basic: | ||||||||||||||||
| Continuing operations | $ | 0.38 | $ | 0.55 | $ | 1.06 | $ | 1.48 | ||||||||
| Discontinued operations | (0.00 | ) | (0.01 | ) | (0.02 | ) | 0.23 | |||||||||
| Earnings per share attributable to Genie Energy Ltd. common stockholders | $ | 0.38 | $ | 0.54 | $ | 1.04 | $ | 1.71 | ||||||||
| Diluted | ||||||||||||||||
| Continuing operations | $ | 0.38 | $ | 0.54 | $ | 1.04 | $ | 1.45 | ||||||||
| Discontinued operations | (0.00 | ) | (0.01 | ) | (0.01 | ) | 0.23 | |||||||||
| Earnings per share attributable to Genie Energy Ltd. common stockholders | $ | 0.38 | $ | 0.53 | $ | 1.03 | $ | 1.68 | ||||||||
| Weighted-average number of shares used in calculation of earnings per share: | ||||||||||||||||
| Basic | 26,526 | 26,615 | 26,771 | 25,541 | ||||||||||||
| Diluted | 26,868 | 27,362 | 27,161 | 26,056 | ||||||||||||
| Dividends declared per common share | $ | 0.075 | $ | 0.075 | $ | 0.225 | $ | 0.225 | ||||||||
| (i) Stock-based compensation included in selling, general and administrative expenses | $ | 567 | $ | 649 | $ | 1,774 | $ | 2,254 | ||||||||
GENIE ENERGY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| (in thousands) | ||||||||
| Operating activities | ||||||||
| Net income | $ | 27,754 | $ | 43,928 | ||||
| Net (loss) income from discontinued operations, net of tax | (435 | ) | 5,923 | |||||
| Net income from continuing operations | 28,189 | 38,005 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Provision for captive insurance liability | 2,667 | — | ||||||
| Depreciation and amortization | 646 | 286 | ||||||
| Impairment of assets | 198 | — | ||||||
| Provision for doubtful accounts receivable | 1,651 | 1,722 | ||||||
| Inventory valuation allowance | 417 | 829 | ||||||
| Unrealized gain on marketable equity securities and investment and others, net | (637 | ) | (386 | ) | ||||
| Stock-based compensation | 1,723 | 2,254 | ||||||
| Changes in assets and liabilities: | ||||||||
| Trade accounts receivable | 10,016 | (7,271 | ) | |||||
| Inventory | 4,593 | (6,114 | ) | |||||
| Prepaid expenses | 4,033 | (3,753 | ) | |||||
| Other current assets and other assets | 1,797 | 2,637 | ||||||
| Trade accounts payable, accrued expenses and other liabilities | (12,379 | ) | 10,963 | |||||
| Due to IDT Corporation, net | (29 | ) | (45 | ) | ||||
| Income taxes payable | 6,289 | (6,566 | ) | |||||
| Net cash provided by operating activities of continuing operations | 49,174 | 32,561 | ||||||
| Net cash provided by operating activities of discontinued operations | 8,570 | 19,461 | ||||||
| Net cash provided by operating activities | 57,744 | 52,022 | ||||||
| Investing activities | ||||||||
| Capital expenditures | (4,025 | ) | (878 | ) | ||||
| Purchase of solar system facility | (1,344 | ) | — | |||||
| Purchases of marketable equity securities and other investment | (4,042 | ) | (9,913 | ) | ||||
| Purchase of equity of subsidiary | (1,200 | ) | — | |||||
| Purchase of investment property, net of noncontrolling interest paid by Howard Jonas | (934 | ) | — | |||||
| Proceeds from the sale of marketable equity securities and other investments | — | 10,023 | ||||||
| Repayment of notes receivable | — | 19 | ||||||
| Net cash used in investing activities of continuing operations | (11,545 | ) | (749 | ) | ||||
| Net cash provided by investing activities of discontinued operations | — | 2,578 | ||||||
| Net cash (used in) provided by investing activities | (11,545 | ) | 1,829 | |||||
| Financing activities | ||||||||
| Dividends paid | (6,171 | ) | (6,818 | ) | ||||
| Repurchases of Class B common stock | (7,908 | ) | — | |||||
| Repurchases of Class B common stock from employees | (3,614 | ) | (2,338 | ) | ||||
| 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 | (18,461 | ) | (12,515 | ) | ||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (120 | ) | 61 | |||||
| Net increase in cash, cash equivalents, and restricted cash | 27,618 | 41,397 | ||||||
| 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 | 193,097 | 147,477 | ||||||
| Less: Cash held at of discontinued operations at end of period | 1,845 | 4,074 | ||||||
| Cash, cash equivalents, and restricted cash (excluding cash held at discontinued operations) at end of period | $ | 191,252 | $ | 143,403 | ||||
Reconciliation of Non-GAAP Financial Measures for the Third 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 | 3Q24 | 2022 | 2023 | |||||||||||||||||||||||||||
| Income (loss) from operations | $ | 11.3 | $ | 15.0 | $ | 17.9 | $ | (34.2 | ) | $ | 9.8 | $ | 10.6 | $ | 11.7 | $ | 78.5 | $ | 10.0 | |||||||||||||||||
| Add back | ||||||||||||||||||||||||||||||||||||
| Captive insurance liability | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 45.1 | $ | 1.0 | $ | 0.6 | $ | 1.0 | $ | 0.0 | $ | 45.1 | ||||||||||||||||||
| Depreciation and amortization | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | 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 | $ | 0.6 | $ | 2.9 | $ | 2.7 | ||||||||||||||||||
| Impairment | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.1 | $ | 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 | $ | 0.0 | $ | (0.1 | ) | |||||||||||||
| Adjusted EBITDA | $ | 12.4 | $ | 15.8 | $ | 18.5 | $ | 11.5 | $ | 11.7 | $ | 12.0 | $ | 13.6 | $ | 83.9 | $ | 58.2 | ||||||||||||||||||
Non-GAAP Reconciliation - GRE Adjusted EBITDA
| (in millions) | 3Q24 | 3Q23 | ||||||
| Income from operations | $ | 15.0 | $ | 22.0 | ||||
| Add back | ||||||||
| Depreciation and amortization | $ | 0.1 | $ | 0.1 | ||||
| Stock-based compensation | $ | 0.3 | $ | 0.2 | ||||
| Impairment | $ | 0.0 | $ | 0.0 | ||||
| Equity in the income of equity method investees | $ | 0.1 | $ | 0.0 | ||||
| Adjusted EBITDA | $ | 15.5 | $ | 22.3 | ||||
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) | 3Q24 | 3Q23 | ||||||
| Net income attributable to Genie Energy Ltd. common stockholders | $ | 10.2 | $ | 14.5 | ||||
| Add back | ||||||||
| Captive insurance liability | $ | 1.0 | $ | 0.0 | ||||
| Income tax effect of adjustment | $ | (0.3 | ) | 0.0 | ||||
| Non-GAAP net income attributable to Genie Energy Ltd. common stockholders | $ | 10.9 | $ | 14.5 | ||||
| Diluted earnings per share | $ | 0.38 | $ | 0.53 | ||||
| Total adjustments | $ | 0.03 | $ | 0.00 | ||||
| Non-GAAP diluted earnings per share | $ | 0.41 | $ | 0.53 | ||||
| Weighted average number of shares used in the calculation of diluted earnings per share | 26.9 | 27.4 | ||||||
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