Stabilis Solutions Announces Record Fourth Quarter 2021 Revenues
Stabilis Solutions, Inc. (NASDAQ:SLNG) reported strong financial results for the fourth quarter and full year ending December 31, 2021. Fourth-quarter revenues reached a record $23.7 million, up 21% from Q3 2021 and 73% from Q4 2020, driven by increased LNG deliveries and rising natural gas prices. Full-year revenues totaled $77.2 million, an 86% increase compared to 2020. However, the company recorded a net loss of $7.8 million for 2021. Management is optimistic about future growth, citing new commercial strategies and expansion into promising sectors.
- Record fourth-quarter revenues of $23.7 million, a 21% increase from Q3 2021.
- Q4 revenues from LNG segment increased 73% from Q4 2020.
- Full year 2021 revenues totaled $77.2 million, an 86% increase from 2020.
- Achieved positive cash flows from operations of $4.9 million in 2021.
- Net loss of $7.8 million for the full year 2021, compared to a loss of $6.8 million in 2020.
- Adjusted EBITDA decreased to $0.9 million in Q4 2021, down from $1.4 million in Q3 2021.
HOUSTON, TX / ACCESSWIRE / March 9, 2022 / Stabilis Solutions, Inc., ("Stabilis" or the "Company") (NASDAQ:SLNG), an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions primarily using liquefied natural gas ("LNG") to multiple end markets across North America, today reported its financial results for its fourth quarter and full year ended December 31, 2021.
Fourth Quarter Results
For the fourth quarter ended December 31, 2021, Stabilis reported record revenues of
Revenues from Stabilis' LNG segment totaled
Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") was
Net loss for the quarter was (
Full Year Results
Full year 2021 revenues totaled
Adjusted EBITDA was
The Company generated positive cash flows from operations of
"While I am pleased that we significantly grew our revenues during the year, inflationary pressures negatively impacted margins, particularly during the second half of 2021." commented Westy Ballard, President and CEO. "Beginning in the fourth quarter, we launched several significant commercial and cost rationalization strategies that I feel will deliver favorable results as we progress through 2022. In addition, we worked diligently to lay the groundwork for the expansion into exciting sectors that have enormous potential to drive scalable and long-term value for our stakeholders."
Conference Call
Management will host a conference call on Thursday, March 10, 2022 at 10:00 a.m. eastern time (9:00 a.m. central). Individuals in the United States and Canada who wish to participate in the conference call can access the live webcast at https://www.webcaster4.com/Webcast/Page/2256/44641 or dial +1 877-545-0523; passcode 232054. International callers should dial +1 973-528-0016; passcode 232054. A replay of the call will be available until April 10, 2022. Individuals in the United States and Canada who wish to listen to the replay should dial +1 877-481-4010; passcode 44641. International callers should dial +1 919-882-2331; passcode 44641. A replay of the call will also be available in the investor center on the Stabilis website (www.stabilis-solutions.com).
About Stabilis Solutions
Stabilis Solutions, Inc. is an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions primarily using liquefied natural gas ("LNG") to multiple end markets across North America. To learn more, visit www.stabilis-solutions.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27a of the Securities Act of 1933, as amended, and Section 21e of the Securities Exchange Act of 1934, as amended. Any actual results may differ from expectations, estimates and projections presented or implied and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "can," "believes," "feels," "anticipates," "expects," "could," "will," "plan," "may," "should," "predicts," "potential" and similar expressions are intended to identify such forward-looking statements.
Such forward-looking statements relate to future events or future performance, but reflect our current beliefs, based on information currently available. Most of these factors are outside our control and are difficult to predict. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. Factors that may cause such differences include, among other things: the future performance of Stabilis, future demand for and price of LNG, availability and price of natural gas, unexpected costs, and general economic conditions.
The foregoing list of factors is not exclusive. Additional information concerning these and other risk factors is contained in the Risk Factors in Item 1A of our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2021 which is available on the SEC's website at www.sec.gov or on the Investors section of our website at www.stabilis-solutions.com. All subsequent written and oral forward-looking statements concerning Stabilis, or other matters attributable to Stabilis, or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made.
Stabilis does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
Stabilis Solutions, Inc. and Subsidiaries
Selected Consolidated Operating Results
(Unaudited, in thousands, except share and per share data)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | ||||||||||||||||
LNG product | $ | 17,772 | $ | 8,730 | $ | 55,699 | $ | 27,339 | ||||||||
Rental, service and other | 3,108 | 3,338 | 13,472 | 8,951 | ||||||||||||
Power delivery | 2,865 | 1,622 | 7,994 | 5,260 | ||||||||||||
Total revenues | 23,745 | 13,690 | 77,165 | 41,550 | ||||||||||||
Operating expenses: | ||||||||||||||||
Costs of LNG product | 15,031 | 6,670 | 45,185 | 20,362 | ||||||||||||
Costs of rental, service and other | 2,509 | 1,849 | 8,158 | 5,230 | ||||||||||||
Costs of power delivery | 2,144 | 1,288 | 6,138 | 4,419 | ||||||||||||
Selling, general and administrative expenses | 4,125 | 2,872 | 17,320 | 10,764 | ||||||||||||
Gain from disposal of fixed assets | - | (272 | ) | (24 | ) | (283 | ) | |||||||||
Depreciation expense | 2,292 | 2,239 | 9,059 | 9,041 | ||||||||||||
Impairment of right-of-use lease asset | - | - | 376 | - | ||||||||||||
Total operating expenses | 26,101 | 14,646 | 86,212 | 49,533 | ||||||||||||
Loss from operations before equity income | (2,356 | ) | (956 | ) | (9,047 | ) | (7,983 | ) | ||||||||
Net equity income from foreign joint ventures' operations: | ||||||||||||||||
Income from equity investments in foreign joint ventures | 879 | 1,176 | 2,146 | 2,705 | ||||||||||||
Foreign joint ventures' operations related expenses | (171 | ) | (67 | ) | (363 | ) | (249 | ) | ||||||||
Net equity income from foreign joint ventures' operations | 708 | 1,109 | 1,783 | 2,456 | ||||||||||||
Loss from operations | (1,648 | ) | 153 | (7,264 | ) | (5,527 | ) | |||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (149 | ) | (17 | ) | (373 | ) | (45 | ) | ||||||||
Interest expense, net - related parties | (136 | ) | (190 | ) | (577 | ) | (871 | ) | ||||||||
Other income (expense) | 41 | (51 | ) | 1,224 | (57 | ) | ||||||||||
Total other income (expense) | (244 | ) | (258 | ) | 274 | (973 | ) | |||||||||
Loss before income tax expense | (1,892 | ) | (105 | ) | (6,990 | ) | (6,500 | ) | ||||||||
Income tax expense | 452 | 5 | 808 | 256 | ||||||||||||
Net loss | $ | (2,344 | ) | $ | (110 | ) | $ | (7,798 | ) | $ | (6,756 | ) | ||||
Net loss per common share: | ||||||||||||||||
Basic and diluted | $ | (0.13 | ) | $ | (0.01 | ) | $ | (0.45 | ) | $ | (0.40 | ) | ||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic and diluted | 18,191,268 | 16,896,626 | 17,504,190 | 16,875,150 | ||||||||||||
EBITDA | $ | 685 | $ | 2,341 | $ | 3,019 | $ | 3,457 | ||||||||
Adjusted EBITDA | $ | 935 | $ | 2,341 | $ | 5,544 | $ | 3,457 | ||||||||
| Revenues by Segment | ||||||||||||||||
| (unaudited, in thousands) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | ||||||||||||||||
LNG | $ | 20,880 | $ | 12,068 | $ | 69,171 | $ | 36,290 | ||||||||
Power delivery | 2,865 | 1,622 | 7,994 | 5,260 | ||||||||||||
Total Revenue | $ | 23,745 | $ | 13,690 | $ | 77,165 | $ | 41,550 | ||||||||
Stabilis Solutions, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited, in thousands, except share and per share data)
| December 31, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,060 | $ | 1,814 | ||||
Accounts receivable, net | 10,323 | 5,923 | ||||||
Inventories, net | 386 | 226 | ||||||
Prepaid expenses and other current assets | 2,764 | 2,808 | ||||||
Due from related parties | - | 42 | ||||||
Total current assets | 15,533 | 10,813 | ||||||
Property, plant and equipment: | ||||||||
Cost | 101,827 | 90,422 | ||||||
Less accumulated depreciation | (47,140 | ) | (38,384 | ) | ||||
Property, plant and equipment, net | 54,687 | 52,038 | ||||||
Goodwill | 4,453 | 4,453 | ||||||
Investments in foreign joint ventures | 12,325 | 11,897 | ||||||
Right-of-use assets and other noncurrent assets | 338 | 1,112 | ||||||
Total assets | $ | 87,336 | $ | 80,313 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 5,556 | $ | 4,395 | ||||
Accrued liabilities | 7,613 | 4,361 | ||||||
Current portion of long-term notes payable | 963 | 1,112 | ||||||
Current portion of long-term notes payable - related parties | 1,168 | 3,351 | ||||||
Current portion of finance lease obligation | 17 | - | ||||||
Current portion of finance lease obligation - related parties | - | 648 | ||||||
Current portion of operating lease obligations | 310 | 362 | ||||||
Total current liabilities | 15,627 | 14,229 | ||||||
Long-term notes payable, net of current portion | 7,753 | 682 | ||||||
Long-term notes payable, net of current portion - related parties | 2,435 | 2,726 | ||||||
Long-term portion of finance lease obligations | 64 | - | ||||||
Long-term portion of operating lease obligations | 329 | 490 | ||||||
Other noncurrent liabilities | 69 | 156 | ||||||
Total liabilities | 26,277 | 18,283 | ||||||
Commitments and contingencies | ||||||||
Stockholders' Equity: | ||||||||
Preferred Stock; | - | - | ||||||
Common stock; | 18 | 17 | ||||||
Additional paid-in capital | 97,875 | 91,278 | ||||||
Accumulated other comprehensive income | 351 | 122 | ||||||
Accumulated deficit | (37,185 | ) | (29,387 | ) | ||||
Total stockholders' equity | 61,059 | 62,030 | ||||||
Total liabilities and stockholders' equity | $ | 87,336 | $ | 80,313 | ||||
Non-GAAP Measures
Our management uses EBITDA and Adjusted EBITDA to assess the performance and operating results of our business. EBITDA is defined as Earnings before Interest (includes interest income and interest expense), Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA further adjusted for certain special items that occur during the reporting period, as noted below. We include EBITDA and adjusted EBITDA to provide investors with a supplemental measure of our operating performance. Neither EBITDA nor Adjusted EBITDA is a recognized term under generally accepted accounting principles in the U.S. ("GAAP"). Accordingly, they should not be used as an indicator of, or an alternative to, net income as a measure of operating performance. In addition, EBITDA and Adjusted EBITDA are not intended to be measures of free cash flow available for management's discretionary use, as they do not consider certain cash requirements, such as debt service requirements. Because the definition of EBITDA and Adjusted EBITDA may vary among companies and industries, it may not be comparable to other similarly titled measures used by other companies. The following table provides a reconciliation of net loss, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA (in thousands).
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Net Loss | $ | (2,344 | ) | $ | (110 | ) | $ | (7,798 | ) | $ | (6,756 | ) | ||||
Depreciation | 2,292 | 2,239 | 9,059 | 9,041 | ||||||||||||
Net interest expense | 285 | 207 | 950 | 916 | ||||||||||||
Income tax expense | 452 | 5 | 808 | 256 | ||||||||||||
EBITDA | 685 | 2,341 | 3,019 | 3,457 | ||||||||||||
Special items (1) | 250 | - | 2,525 | - | ||||||||||||
Adjusted EBITDA | $ | 935 | $ | 2,341 | $ | 5,544 | $ | 3,457 | ||||||||
(1) Special items in Q4 of 2021 consist of non-cash charges related to the write-off of engineering designs. Special items for the twelve months ended December 31, 2021 include the engineering designs, the add backs for executive officer's immediate vesting of restricted stock of
# # # # #
Investor Contact:
Andrew Puhala
Chief Financial Officer
832-456-6502
ir@stabilis-solutions.com
SOURCE: Stabilis Solutions, Inc.
View source version on accesswire.com:
https://www.accesswire.com/692269/Stabilis-Solutions-Announces-Record-Fourth-Quarter-2021-Revenues
FAQ
What were Stabilis Solutions' Q4 2021 revenues?
How much did Stabilis' revenues increase in 2021?
What was the net loss reported by Stabilis Solutions in 2021?
How did Stabilis Solutions' LNG segment perform in Q4 2021?
What future plans did Stabilis Solutions mention for 2022?
