Stabilis Solutions Reports Record Revenues and Reaffirms Growth Emphasis
Stabilis Solutions (NASDAQ:SLNG) reported record revenues of $19.7 million for Q3 2021, reflecting an increase of 118% year-over-year and 23% from Q2 2021. The LNG segment contributed $17.8 million, while power delivery generated $1.9 million. Despite revenue growth, the company recorded a net loss of $4.6 million and an EBITDA loss of $2.0 million, impacted by $3.0 million in special items. Stabilis aims to continue expanding its customer base and enhancing its product offerings under CEO West Ballard's leadership.
- Record revenues of $19.7 million, up 118% year-over-year.
- LNG segment revenue increased to $17.8 million, a $10.1 million rise.
- Delivered 15 million gallons of LNG, up 6.8 million gallons from last year.
- Adjusted EBITDA improved to $1.4 million from $0.4 million year-over-year.
- Net loss of $4.6 million compared to a loss of $2.1 million last year.
- EBITDA loss of $2.0 million, worsening from $0.4 million EBITDA profit last year.
- Special items totaling $3.0 million related to executive transition and lease termination.
HOUSTON, TX / ACCESSWIRE / November 10, 2021 / Stabilis Solutions, Inc., ("Stabilis" or "the Company") (NASDAQ:SLNG), a leading provider of energy transition services including liquefied natural gas ("LNG") and hydrogen fueling solutions, today reported its financial results for its third quarter ended September 30, 2021.
For the third quarter of 2021, the Company reported record revenues of
Revenues from Stabilis' LNG segment were
Earnings before interest, taxes, depreciation and amortization ("EBITDA"), a non-GAAP measure, was a loss of
Net loss for the quarter was
Net cash provided by operating activities was
Westy Ballard, President and CEO, commented, "Our third quarter results highlight our team's continued success at expanding our customer and revenue base and steadily growing the top line. As the recently appointed CEO, I want to reaffirm to our shareholders, employees, and other constituents that Stabilis is committed to optimizing and expanding our core business as well as actively pursuing a variety of exciting growth drivers intended to expand our portfolio of products and solutions into the future.
Conference Call:
Management will host a conference call on Thursday, November 11, 2021 at 10:00 a.m. eastern time (9:00 a.m. central).
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About Stabilis
Stabilis Solutions, Inc. is an energy transition company that provides clean energy solutions to our customers. Our solutions include production, storage, and distribution of small-scale liquefied natural gas ("LNG") to multiple end markets in 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," "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 the parties' current beliefs, based on information currently available. Most of these factors are outside the parties' 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
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except share and per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2020 | 2021 | |||||||||||||
| Revenue | ||||||||||||||||
LNG product | $ | 14,420 | $ | 6,594 | $ | 37,927 | $ | 18,609 | ||||||||
Rental, service and other | 3,359 | 1,073 | 10,364 | 5,613 | ||||||||||||
Power delivery | 1,925 | 1,352 | 5,129 | 3,638 | ||||||||||||
Total revenues | 19,704 | 9,019 | 53,420 | 27,860 | ||||||||||||
Operating expenses: | ||||||||||||||||
Costs of LNG product | 11,988 | 5,044 | 30,154 | 13,692 | ||||||||||||
Costs of rental, service and other | 1,917 | 808 | 5,649 | 3,381 | ||||||||||||
Costs of power delivery | 1,542 | 996 | 3,994 | 3,131 | ||||||||||||
Selling, general and administrative expenses | 6,155 | 2,338 | 13,195 | 7,892 | ||||||||||||
Gain from disposal of fixed assets | - | - | (24 | ) | (11 | ) | ||||||||||
Depreciation expense | 2,324 | 2,266 | 6,767 | 6,802 | ||||||||||||
Impairment of right-of-use lease asset | 376 | - | 376 | - | ||||||||||||
Total operating expenses | 24,302 | 11,452 | 60,111 | 34,887 | ||||||||||||
Loss from operations before equity income | (4,598 | ) | (2,433 | ) | (6,691 | ) | (7,027 | ) | ||||||||
Net equity income from foreign joint ventures' operations: | ||||||||||||||||
Income from equity investments in foreign joint ventures | 308 | 642 | 1,267 | 1,529 | ||||||||||||
Foreign joint ventures' operations related expenses | (62 | ) | (69 | ) | (192 | ) | (182 | ) | ||||||||
Net equity income from foreign joint ventures' operations | 246 | 573 | 1,075 | 1,347 | ||||||||||||
Loss from operations | (4,352 | ) | (1,860 | ) | (5,616 | ) | (5,680 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (130 | ) | (2 | ) | (224 | ) | (28 | ) | ||||||||
Interest expense, net - related parties | (120 | ) | (199 | ) | (441 | ) | (681 | ) | ||||||||
Other income (loss) | 70 | (31 | ) | 1,183 | (6 | ) | ||||||||||
Total other income (expense) | (180 | ) | (232 | ) | 518 | (715 | ) | |||||||||
Loss before income tax expense | (4,532 | ) | (2,092 | ) | (5,098 | ) | (6,395 | ) | ||||||||
Income tax expense | 93 | 41 | 356 | 251 | ||||||||||||
Net loss | $ | (4,625 | ) | $ | (2,133 | ) | $ | (5,454 | ) | $ | (6,646 | ) | ||||
Common Stock Data: | ||||||||||||||||
Net loss per common share: | ||||||||||||||||
Basic and diluted | $ | (0.26 | ) | $ | (0.13 | ) | $ | (0.32 | ) | $ | (0.39 | ) | ||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic and diluted | 17,578,653 | 16,896,626 | 17,202,631 | 16,867,939 | ||||||||||||
EBITDA | $ | (1,958 | ) | $ | 375 | $ | 2,334 | $ | 1,116 | |||||||
Adjusted EBITDA | 1,403 | 375 | 4,609 | 1,116 | ||||||||||||
Revenues by Segment
(Unaudited, in thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | ||||||||||||||||
LNG | $ | 17,779 | $ | 7,667 | $ | 48,291 | $ | 24,222 | ||||||||
Power Delivery | 1,925 | 1,352 | 5,129 | 3,638 | ||||||||||||
Total Revenue | $ | 19,704 | $ | 9,019 | $ | 53,420 | $ | 27,860 | ||||||||
Gallons Delivered
(Unaudited, in thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Gallons Delivered | ||||||||||||||||
George West and Port Allen | 8,215 | 4,370 | 21,325 | 14,266 | ||||||||||||
3rd Party | 6,835 | 3,904 | 20,810 | 10,551 | ||||||||||||
Total Gallons Delivered | 15,050 | 8,274 | 42,135 | 24,817 | ||||||||||||
Stabilis Solutions, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except share and per share data)
| September 30, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
| Current assets: | ||||||||
Cash and cash equivalents | $ | 2,938 | $ | 1,814 | ||||
Accounts receivable, net | 7,328 | 5,620 | ||||||
Inventories, net | 424 | 226 | ||||||
Prepaid expenses and other current assets | 4,298 | 3,111 | ||||||
Due from related parties | - | 42 | ||||||
Total current assets | 14,988 | 10,813 | ||||||
Property, plant and equipment, net | 55,858 | 52,038 | ||||||
Right-of-use assets | 128 | 786 | ||||||
Goodwill | 4,453 | 4,453 | ||||||
Investments in foreign joint ventures | 11,923 | 11,897 | ||||||
Other noncurrent assets | 319 | 326 | ||||||
Total assets | $ | 87,669 | $ | 80,313 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Current portion of notes payable | $ | 1,379 | $ | 1,112 | ||||
Current portion of notes payable - related parties | 2,580 | 3,351 | ||||||
Current portion of finance lease obligation | 16 | - | ||||||
Current portion of finance lease obligation - related parties | - | 648 | ||||||
Current portion of operating lease obligations | 206 | 362 | ||||||
Accrued liabilities | 7,432 | 4,361 | ||||||
Accounts payable | 5,163 | 4,395 | ||||||
Total current liabilities | 16,776 | 14,229 | ||||||
Long-term notes payable, net of current portion | 6,772 | 682 | ||||||
Long-term notes payable, net of current portion - related parties | 919 | 2,726 | ||||||
Long-term portion of finance lease obligations | 68 | - | ||||||
Long-term portion of operating lease obligations | 314 | 490 | ||||||
Other noncurrent liabilities | 98 | 156 | ||||||
Total liabilities | 24,947 | 18,283 | ||||||
Commitments and contingencies | ||||||||
Stockholders' Equity: | ||||||||
Stockholders' equity: | ||||||||
Common stock; | 18 | 17 | ||||||
Additional paid-in capital | 97,373 | 91,278 | ||||||
Accumulated other comprehensive income | 172 | 122 | ||||||
Accumulated deficit | (34,841 | ) | (29,387 | ) | ||||
Total stockholders' equity | 62,722 | 62,030 | ||||||
Total liabilities and stockholders' equity | $ | 87,669 | $ | 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Net loss | $ | (4,625 | ) | $ | (2,133 | ) | $ | (5,454 | ) | $ | (6,646 | ) | ||||
Depreciation | 2,324 | 2,266 | 6,767 | 6,802 | ||||||||||||
Net Interest Expense | 250 | 201 | 665 | 709 | ||||||||||||
Income Tax Expense | 93 | 41 | 356 | 251 | ||||||||||||
EBITDA | (1,958 | ) | 375 | 2,334 | 1,116 | |||||||||||
Special Items* | 3,361 | - | 2,275 | - | ||||||||||||
Adjusted EBITDA | $ | 1,403 | $ | 375 | $ | 4,609 | $ | 1,116 | ||||||||
*Special items in Q3 of 2021 consist of add backs for executive officer's immediate vesting of restricted stock of
Investor Contact:
Andrew Puhala
Chief Financial Officer
832-456-6500
ir@stabilis-solutions.com
SOURCE: Stabilis Energy
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