Record Gross Profit of $45.5 million and Gross Margin of 46.2%
Record Net Income Attributable to Common
Stockholders of $17.5 million,
diluted EPS of $0.67 and Adjusted
EBITDA1 of $25.7
million
NEWARK,
N.J., May 9, 2022 /PRNewswire/ -- Genie Energy,
Ltd. (NYSE: GNE, GNEPRA), a leading retail and renewable energy
solutions provider, today announced results for its first quarter
ended March 31, 2022.
"Genie had an amazing start to the year with record quarterly
results across numerous key profitability metrics," said
Michael Stein, chief executive
officer. "Genie Retail Energy, or GRE, our U.S. retail business,
was the main driver behind this outstanding quarter, generating
over $30 million in Adjusted EBITDA.
Overall, the first quarter's results underscored the flexibility of
our business model, and our ability to leverage our market
expertise and execution capabilities to generate strong
performance, including robust cash flows, and significant value for
Genie Energy shareholders."
First Quarter
2022 Highlights (versus 1Q21 unless otherwise
noted)
- Revenue decreased 8.3% to $98.5
million;
- Gross profit increased 259.9% to $45.5
million, and gross margin increased to 46.2% from
11.8%;
- Income (loss) from operations increased to $24.4 million from ($5.5)
million; operating margin increased to 24.8% from
(5.1%);
- Adjusted EBITDA1 increased to $25.7 million from ($4.4)
million;
- GRE generated income from operations and Adjusted EBITDA of
$30.2 million and $30.5 million, compared to $1.2 million and $1.5
million, respectively;
- Net income attributable to GNE common stockholders increased to
$17.5 million, and diluted income per
share (EPS) increased to $0.67,
compared to a net loss of ($2.4)
million and diluted loss per share of ($0.09);
- Declared a $0.075 quarterly
dividend for class A and B common stockholders.
Select Financial
Metrics: 2022 versus 2021 as of 3/31/22*
|
|
(in $M except
for EPS)
|
1Q22
|
1Q21
|
Change
|
|
Total
Revenue
|
$98.5
|
$107.5
|
-8.3%
|
|
Genie Retail - US
(GRE)
|
$83.9
|
$90.7
|
-7.5%
|
|
Electricity
|
$59.4
|
$73.4
|
-19.1%
|
|
Natural Gas
|
$24.5
|
$17.3
|
41.8%
|
|
Genie Retail -
International (GREI)**
|
$12.6
|
$14.3
|
-12.1%
|
|
Electricity
|
$12.4
|
$14.2
|
-12.8%
|
|
Other
|
$0.2
|
$0.1
|
80.1%
|
|
Genie
Renewables
|
$2.0
|
$2.5
|
-17.9%
|
|
Gross
Margin
|
46.2%
|
11.8%
|
3445bps
|
|
Genie Retail - US (GRE)
|
55.5%
|
16.5%
|
3903bps
|
|
Genie Retail - International (GREI)
|
-12.4%
|
-23.9%
|
1150bps
|
|
Genie Renewables
|
25.7%
|
44.9%
|
-1924bps
|
|
Income (Loss) from
Operations
|
$24.4
|
($5.5)
|
nm
|
|
Operating Margin
|
24.8%
|
-5.1%
|
2988bps
|
|
Net Income (Loss)
Attributable to Discontinued Operations
|
$0.0
|
($1.1)
|
nm
|
|
Net Income (Loss)
Attributable to GNE Common Stockholders
|
$17.5
|
($2.4)
|
nm
|
|
Diluted Earnings
(Loss) Per Share
|
$0.67
|
($0.09)
|
nm
|
|
Adjusted
EBITDA1
|
$25.7
|
($4.4)
|
nm
|
|
Cash Flow from
Continuing Operating Activities
|
$18.3
|
($10.0)
|
nm
|
|
nm = not
measurable/meaningful
|
|
|
|
|
*Numbers may not add
due to rounding
|
|
|
|
|
** Orbit UK has been
classified as a discontinued operation and its results excluded
from current and historical results
|
|
Select Business
Metrics: 2022 versus 2021 (quarters ended on March
31)**
|
|
Units in
1000s
|
1Q22
|
1Q21
|
Change
|
|
Retail Performance
Metrics:
|
|
|
|
|
Retail Customer
Equivalents (RCE)
|
298
|
400
|
-25.4%
|
|
Genie Retail - US (GRE)
|
260
|
347
|
-25.1%
|
|
Electricity
|
182
|
291
|
-37.3%
|
|
Natural Gas
|
78
|
56
|
38.7%
|
|
Genie Retail - International (GREI)
|
38
|
53
|
-27.6%
|
|
Electricity
|
38
|
53
|
-27.6%
|
|
Natural Gas
|
0
|
0
|
nm
|
|
Meters in
1000s units
|
347
|
447
|
-22.3%
|
|
Genie Retail - US (GRE)
|
286
|
373
|
-23.3%
|
|
Electricity
|
209
|
308
|
-32.0%
|
|
Natural Gas
|
78
|
65
|
20.0%
|
|
Genie Retail - International (GREI)
|
61
|
74
|
-17.4%
|
|
Electricity
|
61
|
74
|
-17.4%
|
|
Natural Gas
|
0
|
0
|
nm
|
|
GRE Average Monthly
Churn - Meters
|
|
|
|
|
Gross Sales
|
44
|
62
|
-29.0%
|
|
Churn***
|
4.5%
|
4.9%
|
-400bps
|
|
** Orbit UK has been
classified as a discontinued operation and its results excluded
from current and historical results
|
|
*** Excludes expiration
of low margin aggregation deals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Adjusted EBITDA
for all periods presented is a non-GAAP
measure intended to provide useful
information that supplements the core operating
results in accordance with GAAP of 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 Adjusted EBITDA,
as well as
reconciliations to its most directly comparable GAAP measure.
Segment Highlights
GRE
GRE delivered record levels of gross profit, income from
operations and Adjusted EBITDA for the quarter highlighted by
strong margins in its retail book. The strong performance was
driven, in part, by the decision to allow certain less profitable
meters to attrite in advance of the winter volatility and optimize
the forward book accordingly. Electric per meter consumption
declined moderately versus the year ago quarter but remained
solidly above pre-COVID levels.
Sequentially, meters increased by 1k to 286k and RCEs
were flat at 260k as of March
31, 2022. Average monthly churn decreased to 4.5% from 4.9% in
the year ago quarter and 6.2% in the fourth quarter of 2021
(excluding the impact of expired aggregation deals).
GREI
Volatility in energy prices resulted in mark-to-market losses
for GREI, in contrast to the gains recognized during the fourth
quarter of 2021. During the first quarter, GREI moderated customer
acquisition activity to focus on gross profit and margin expansion.
Exclusive of the impact of mark-to-market valuations, GREI
generated an operating profit.
Genie Renewables
Genie Renewables' revenue was impacted by seasonality and
projects that were in process but not completed. In addition to
working through its existing signed contracts, the solar business
signed three new deals during the quarter that will positively
impact results going forward.
Balance Sheet and Cash Flow Highlights
On March 31, 2022, Genie Energy
reported $220.2 million in total
assets, including $95.3 million in
cash, restricted cash and marketable equity securities. Liabilities
totaled $93.9 million, and working
capital (current assets less current liabilities) totaled
$96.0 million. Non-current
liabilities were $2.9 million.
During the quarter ended March 31,
2022, net cash provided by operating activities was
$18.3 million compared to net cash
used in operating activities of $10.0
million a year ago.
Commentary on Balance of 2022
"The second quarter is typically a period of seasonally lower
consumption in the U.S.," said Stein. "However, we expect to again
deliver relatively strong results across our retail businesses as
we continue to focus on customer portfolio management and margin
preservation until we return to a less volatile commodity price
environment. Once market conditions normalize, our strong cash
flows, cash position and debt-free balance sheet leaves us
well-positioned to invest in growth opportunities. For Genie
Renewables, we expect our solar business to continue to close
pipeline deals and make installations under current contracts.
Overall, we remain confident that Genie Renewables will continue to
expand, and we expect it to report $15-20 million in revenue for 2022.
"Finally, in addition to continuing to pay our quarterly
dividend, we recently initiated the process to redeem $2 million of our preferred stock during the
second quarter," concluded Stein.
Trended Financial
Information:*
|
(in $M except
for EPS, RCE and Meters)
|
Q121
|
Q221
|
Q321
|
Q421
|
1Q22
|
Total
Revenue
|
$107.5
|
$76.4
|
$95.1
|
$84.7
|
$98.5
|
Genie Retail - US
(GRE)
|
$90.7
|
$67.0
|
$86.3
|
$67.9
|
$83.9
|
Electricity
|
$73.4
|
$61.9
|
$82.8
|
$54.9
|
$59.4
|
Natural
Gas
|
$17.3
|
$5.1
|
$3.5
|
$12.9
|
$24.5
|
Genie Retail -
International (GREI)**
|
$14.3
|
$7.1
|
$7.5
|
$15.5
|
$12.6
|
Electricity
|
$14.2
|
$6.8
|
$7.1
|
$15.2
|
$12.4
|
Other
|
$0.1
|
$0.3
|
$0.4
|
$0.3
|
$0.2
|
Genie
Renewables
|
$2.5
|
$2.3
|
$1.3
|
$1.3
|
$2.0
|
Gross
Margin
|
11.8%
|
27.8%
|
43.5%
|
34.9%
|
46.2%
|
Genie Retail - US
(GRE)
|
16.5%
|
27.4%
|
39.6%
|
34.5%
|
55.5%
|
Genie Retail -
International (GREI)
|
-23.9%
|
27.9%
|
91.0%
|
37.8%
|
-12.4%
|
Genie
Renewables
|
44.9%
|
39.4%
|
34.0%
|
21.5%
|
25.7%
|
Income (loss) from
Operations
|
($5.5)
|
$4.5
|
$23.3
|
$10.7
|
$24.4
|
Operating
Margin
|
-5.1%
|
5.9%
|
24.5%
|
12.7%
|
24.8%
|
Net Income (Loss)
Attributable to Discontinued Operations
|
($1.1)
|
($3.2)
|
($16.4)
|
$26.3
|
---
|
Net Income (Loss)
Attributable to GNE Common Stockholders
|
($2.4)
|
$5.0
|
($2.7)
|
$29.2
|
$17.5
|
Diluted Earnings
(Loss) Per Share
|
($0.09)
|
$0.19
|
($0.11)
|
$1.12
|
$0.67
|
Adjusted
EBITDA
|
($4.4)
|
$5.5
|
$24.2
|
$12.5
|
$25.7
|
Retail Performance
Metrics:
|
|
|
|
|
|
Retail Customer
Equivalents (RCE) in
1000s
|
400
|
384
|
383
|
301
|
298
|
Genie Retail - US
(GRE)
|
347
|
330
|
336
|
260
|
260
|
Electricity
|
291
|
272
|
276
|
189
|
182
|
Natural
Gas
|
56
|
58
|
60
|
71
|
78
|
Genie Retail -
International (GREI)
|
53
|
55
|
46
|
40
|
38
|
Electricity
|
53
|
55
|
46
|
40
|
38
|
Natural
Gas
|
0
|
0
|
0
|
0
|
0
|
Meters in 1000s units
|
447
|
434
|
428
|
352
|
347
|
Genie Retail - US
(GRE)
|
373
|
361
|
361
|
285
|
286
|
Electricity
|
308
|
292
|
289
|
210
|
209
|
Natural
Gas
|
65
|
69
|
72
|
75
|
78
|
Genie Retail -
International (GREI)
|
74
|
74
|
67
|
67
|
61
|
Electricity
|
74
|
74
|
67
|
67
|
61
|
Natural
Gas
|
0
|
0
|
0
|
0
|
0
|
GRE Average Monthly
Churn - Meters
|
|
|
|
|
|
Gross
Sales
|
62
|
35
|
46
|
33
|
44
|
Churn***
|
4.9%
|
3.8%
|
4.0%
|
6.2%
|
4.5%
|
nm = not
measurable/meaningful
|
|
|
|
|
|
*Numbers may not add
due to rounding
|
|
|
|
|
|
** Orbit UK has been
classified as a discontinued operation and its results excluded
from current and historical results
|
*** Excludes expiration
of low margin aggregation deals
|
|
|
|
|
|
|
|
|
|
|
|
Dividend on Genie Energy Common Stock
Genie Energy's Board of Directors has declared a dividend of
$0.075 per share of Class A and Class
B common stock with a record date of May 20,
2022. The dividend will be paid on or about May 31, 2022. The distribution will be treated as
an ordinary dividend for income tax purposes.
Earnings Announcement and Supplemental Information
Genie Energy will issue an earnings release over a wire service
and post it in the "Investors" section of the Genie Energy website
(https://genie.com/investors/investor-relations/) at 7:30 AM Eastern. The release also will
be filed in a current report (Form 8-K) with the
SEC.
At 8:30 AM Eastern, Genie Energy's
management will host a conference call to discuss 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:
423761.
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: 45250. The replay will remain available through
May 19, 2022. A recording
of the call also will be available for playback on the "Investors"
section of the Genie Energy website.
About Genie Energy Ltd.
Genie Energy Ltd. (NYSE: GNE, GNEPRA), is a provider of energy
services. The Genie Retail Energy division supplies electricity,
including electricity from renewable resources, and natural gas to
residential and small business customers in the United States. The Genie Retail Energy
International division supplies customers in selected markets in
Europe. Genie Renewables comprises
Genie Solar Energy, a provider of end-to-end customized solar
solutions primarily for commercial customers, Diversegy, a
commercial energy consulting business, CityCom Solar, a provider of
community solar energy solutions and Genie's interest in Prism
Solar, a supplier of solar panels and 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.
GENIE ENERGY
LTD. CONSOLIDATED BALANCE SHEETS (in thousands,
except per share amounts)
|
|
|
|
|
March 31,
2022
|
|
|
December 31,
2021
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
$
|
88,185
|
|
|
$
|
95,492
|
|
Restricted
cash—short-term
|
|
6,496
|
|
|
|
6,657
|
|
Marketable
equity securities
|
|
657
|
|
|
|
1,336
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $6,781 and
$6,365 at March 31, 2022 and December 31, 2021,
respectively
|
|
48,790
|
|
|
|
52,357
|
|
Inventory
|
|
18,865
|
|
|
|
17,720
|
|
Prepaid
expenses
|
|
6,638
|
|
|
|
4,994
|
|
Other
current assets
|
|
17,393
|
|
|
|
21,789
|
|
Total current assets
|
|
187,024
|
|
|
|
200,345
|
|
Property and equipment,
net
|
|
350
|
|
|
|
297
|
|
Goodwill
|
|
11,709
|
|
|
|
11,755
|
|
Other intangibles,
net
|
|
3,529
|
|
|
|
3,648
|
|
Deferred income tax
assets, net
|
|
5,204
|
|
|
|
4,259
|
|
Other assets
|
|
12,369
|
|
|
|
9,161
|
|
Total assets
|
$
|
220,185
|
|
|
$
|
229,465
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Trade
accounts payable
|
|
21,460
|
|
|
|
33,554
|
|
Accrued
expenses
|
|
42,272
|
|
|
|
39,523
|
|
Income
taxes payable
|
|
16,352
|
|
|
|
9,792
|
|
Due to IDT
Corporation, net
|
|
141
|
|
|
|
532
|
|
Other
current liabilities
|
|
1,848
|
|
|
|
2,125
|
|
Current
liabilities of discontinued operations
|
|
8,934
|
|
|
|
30,766
|
|
Total current liabilities
|
|
91,007
|
|
|
|
116,292
|
|
Other
liabilities
|
|
2,886
|
|
|
|
2,384
|
|
Total liabilities
|
|
93,893
|
|
|
|
118,676
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
Genie
Energy Ltd. stockholders' equity:
|
|
|
|
|
|
|
|
Preferred
stock, $0.01 par value; authorized shares—10,000:
|
|
|
|
|
|
|
|
Series 2012-A,
designated shares—8,750; at liquidation preference, consisting of
2,322 shares issued and outstanding at March 31, 2022 and December
31, 2021
|
|
19,743
|
|
|
|
19,743
|
|
Class A common
stock, $0.01 par value; authorized shares—35,000; 1,574 shares
issued and outstanding at March 31, 2022 and December 31,
2021
|
|
16
|
|
|
|
16
|
|
Class B common stock,
$0.01 par value; authorized shares—200,000; 26,642 and 26,620
shares issued and 24,625 and 24,615 shares outstanding at March 31,
2022 and December 31, 2021, respectively
|
|
266
|
|
|
|
266
|
|
Additional
paid-in capital
|
|
144,089
|
|
|
|
143,249
|
|
Treasury stock, at
cost, consisting of 2,017 and 2,005 shares of Class B common
stock at March 31, 2022 and December 31, 2021
|
|
(14,105)
|
|
|
|
(14,034)
|
|
Accumulated other comprehensive income
|
|
3,499
|
|
|
|
3,160
|
|
Accumulated deficit
|
|
(13,530)
|
|
|
|
(29,115)
|
|
Total
Genie Energy Ltd. stockholders' equity
|
|
139,978
|
|
|
|
123,285
|
|
Noncontrolling interests
|
|
(13,686)
|
|
|
|
(12,496)
|
|
Total equity
|
|
126,292
|
|
|
|
110,789
|
|
Total liabilities and equity
|
$
|
220,185
|
|
|
$
|
229,465
|
|
GENIE ENERGY
LTD. CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2022
|
|
|
2021
|
|
|
(in thousands,
except per share data)
|
|
Revenues:
|
|
|
|
|
|
Electricity
|
$
|
71,784
|
|
|
$
|
87,613
|
|
Natural gas
|
|
24,504
|
|
|
|
17,280
|
|
Other
|
|
2,241
|
|
|
|
2,597
|
|
Total
revenues
|
|
98,529
|
|
|
|
107,490
|
|
Cost of
revenues
|
|
52,987
|
|
|
|
94,836
|
|
Gross profit
|
|
45,542
|
|
|
|
12,654
|
|
Operating expenses and
losses:
|
|
|
|
|
|
|
|
Selling, general and
administrative (i)
|
|
21,109
|
|
|
|
18,119
|
|
Income (loss) from
operations
|
|
24,433
|
|
|
|
(5,465)
|
|
Interest
income
|
|
17
|
|
|
|
84
|
|
Interest
expense
|
|
(50)
|
|
|
|
(182)
|
|
Unrealized (loss) gain
on marketable equity securities and investments
|
|
(652)
|
|
|
|
4,107
|
|
Other (loss) income,
net
|
|
(498)
|
|
|
|
407
|
|
Income (loss) before
income taxes
|
|
23,250
|
|
|
|
(1,049)
|
|
Provision for income
taxes
|
|
(6,514)
|
|
|
|
(535)
|
|
Net income (loss) from
continuing operations
|
|
16,736
|
|
|
|
(1,584)
|
|
Loss from
discontinued operations, net of taxes
|
|
—
|
|
|
|
(1,110)
|
|
Net income
(loss)
|
|
16,736
|
|
|
|
(2,694)
|
|
Net loss attributable
to noncontrolling interests
|
|
(1,153)
|
|
|
|
(708)
|
|
Net income (loss)
attributable to Genie Energy Ltd.
|
|
17,889
|
|
|
|
(1,986)
|
|
Dividends on preferred
stock
|
|
(370)
|
|
|
|
(370)
|
|
Net income (loss)
attributable to Genie Energy Ltd. common stockholders
|
$
|
17,519
|
|
|
$
|
(2,356)
|
|
|
|
|
|
|
|
|
|
Amounts attributable to
Genie Energy Ltd. common stockholders
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
$
|
17,519
|
|
|
$
|
(1,246)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
|
(1,110)
|
|
Net income (loss)
attributable to Genie Energy Ltd. common stockholders
|
$
|
17,519
|
|
|
|
(2,356)
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to Genie Energy Ltd. common
stockholders:
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
$
|
0.68
|
|
|
$
|
(0.05)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
|
(0.04)
|
|
Net
income (loss) attributable to Genie Energy Ltd. common
stockholders
|
$
|
0.68
|
|
|
$
|
(0.09)
|
|
Diluted
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
$
|
0.67
|
|
|
$
|
(0.05)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
|
(0.04)
|
|
Net
income (loss) attributable to Genie Energy Ltd. common
stockholders
|
$
|
0.67
|
|
|
$
|
(0.09)
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares used in calculation of earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
|
25,764
|
|
|
|
26,004
|
|
Diluted
|
|
26,128
|
|
|
|
26,004
|
|
|
|
|
|
|
|
|
|
Dividends declared per
common share
|
$
|
0.075
|
|
|
$
|
—
|
|
(i) Stock-based
compensation included in selling, general and administrative
expenses
|
$
|
840
|
|
|
$
|
589
|
|
GENIE ENERGY
LTD. CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited)
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
(in
thousands)
|
|
Operating
activities
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
16,736
|
|
|
$
|
(2,694)
|
|
Net loss
from discontinued operations, net of tax
|
|
|
—
|
|
|
|
(1,110)
|
|
Net income (loss) from
continuing operations
|
|
|
16,736
|
|
|
|
(1,584)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
284
|
|
|
|
380
|
|
Deferred
income taxes
|
|
|
(87)
|
|
|
|
228
|
|
Provision
for doubtful accounts receivable
|
|
|
398
|
|
|
|
430
|
|
Unrealized
loss (gain) marketable equity securities and investment
|
|
|
652
|
|
|
|
(4,107)
|
|
Stock-based compensation
|
|
|
840
|
|
|
|
589
|
|
Equity in
the net income in equity method investees
|
|
|
(125)
|
|
|
|
(110)
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Trade
accounts receivable
|
|
|
3,169
|
|
|
|
(5,201)
|
|
Inventory
|
|
|
(1,145)
|
|
|
|
(2,090)
|
|
Prepaid
expenses
|
|
|
(1,644)
|
|
|
|
(1,451)
|
|
Other
current assets and other assets
|
|
|
2,746
|
|
|
|
390
|
|
Trade
accounts payable, accrued expenses and other current
liabilities
|
|
|
(9,653)
|
|
|
|
7,618
|
|
Due to IDT
Corporation
|
|
|
(391)
|
|
|
|
(68)
|
|
Income
taxes payable
|
|
|
6,560
|
|
|
|
(768)
|
|
Net cash provided by
(used in) operating activities of continuing operations
|
|
|
18,340
|
|
|
|
(5,744)
|
|
Net cash
used in discontinued operations
|
|
|
—
|
|
|
|
(4,209)
|
|
Net cash provided by
(used in) operating activities
|
|
|
18,340
|
|
|
|
(9,953)
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(59)
|
|
|
|
(20)
|
|
Investment
in notes receivables with related party
|
|
|
(1,388)
|
|
|
|
—
|
|
Purchase
of marketable equity securities and other investment
|
|
|
(200)
|
|
|
|
(1,000)
|
|
Repayment
of notes receivable
|
|
|
19
|
|
|
|
13
|
|
Net cash used in
investing activities of continuing operations
|
|
|
(1,628)
|
|
|
|
(1,007)
|
|
Net cash
used in investing activities of discontinued operations
|
|
|
(21,832)
|
|
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(23,460)
|
|
|
|
(1,007)
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(2,304)
|
|
|
|
(370)
|
|
Repurchases of Class B common stock from employees
|
|
|
(71)
|
|
|
|
—
|
|
Net cash used in by
financing activities
|
|
|
(2,375)
|
|
|
|
(370)
|
|
Effect of exchange rate
changes on cash, cash equivalents, and restricted cash
|
|
|
27
|
|
|
|
(69)
|
|
Net decrease in cash,
cash equivalents, and restricted cash, including cash balances
classified as held for sale
|
|
|
(7,468)
|
|
|
|
(11,399)
|
|
Less: Cash balances
classified as held for sale
|
|
|
—
|
|
|
|
(587)
|
|
Net decrease in cash,
cash equivalents, and restricted cash
|
|
|
(7,468)
|
|
|
|
(11,986)
|
|
Cash, cash equivalents,
and restricted cash (including discontinued operations) at
beginning of period
|
|
|
102,149
|
|
|
|
43,184
|
|
Cash, cash
equivalents and restricted cash (including discontinued operations)
at end of the period
|
|
|
94,681
|
|
|
|
31,198
|
|
Less: Cash of
discontinued operations at end of period
|
|
|
—
|
|
|
|
`1,156
|
|
Cash, cash
equivalents, and restricted cash (excluding discontinued
operations) at end of period
|
|
$
|
94,681
|
|
|
$
|
30,042
|
|
Reconciliation of Non-GAAP Financial Measures for the First
Quarter 2022
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 its Genie Retail Energy segment. Adjusted EBITDA is a
non-GAAP measure.
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 Energy's measure of consolidated Adjusted EBITDA starts
with net income and adds back interest, taxes, depreciation,
amortization, stock-based compensation and impairment of assets and
subtracts out equity in the net loss of equity method investees,
net. Genie Energy's measure of segment level Adjusted EBITDA starts
with income (loss) from operations, and adds back depreciation,
amortization, stock-based compensation and subtracts out impairment
of assets and equity in the net loss of equity method investees,
net.
Adjusted EBITDA 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 Energy's measurement of Adjusted EBITDA may not be
comparable to similarly titled measures reported by other
companies.
Management believes that Genie Energy's measure of Adjusted
EBITDA provides useful information to both management and investors
by excluding certain expenses that may not be indicative of Genie
Energy's or GRE's core operating results. Management uses Adjusted
EBITDA, among other measures, as a relevant indicator of core
operational strengths in its financial and operational
decision-making.
Management also uses Adjusted EBITDA to evaluate operating
performance in relation to Genie Energy's competitors. Disclosure
of this non-GAAP financial measure 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 as well as the GAAP
measures revenue, gross profit, and income (loss) from operations,
as well as net income (loss), on a consolidated level to facilitate
internal and external comparisons to Genie Energy'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 Energy'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 Energy's calculation of Adjusted EBITDA because
management believes this allows investors to make more meaningful
comparisons of the operating results of Genie Energy'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 goodwill is a component of (loss) income from
operations that is excluded from the calculation of Adjusted
EBITDA. The impairment of goodwill 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 Energy's
continuing operations.
Following are the reconciliations of Adjusted EBITDA on a
consolidated basis to its most directly comparable GAAP measure.
Adjusted EBITDA is reconciled to net income for Genie Energy on a
consolidated basis and for the Genie Retail Energy (GRE)
segment.
Non-GAAP Reconciliation – Adjusted
EBITDA
|
|
Q121
|
Q221
|
Q321
|
Q421
|
1Q22
|
|
2020
|
2021
|
Income (loss) from Operations
|
($5.5)
|
$4.5
|
$23.3
|
$10.7
|
$24.4
|
|
$21.9
|
$33.1
|
Add back
|
|
|
|
|
|
|
|
|
Depreciation and Amortization
|
$0.4
|
$0.3
|
$0.3
|
$0.3
|
$0.3
|
|
$3.0
|
$1.3
|
Non-Cash Compensation
|
$0.6
|
$0.6
|
$0.5
|
$1.3
|
$0.8
|
|
$1.1
|
$2.9
|
Impairment
|
$0.0
|
$0.0
|
$0.0
|
$0.0
|
$0.0
|
|
$1.4
|
$0.0
|
Equity in the Loss of AMSO/GEUK
|
$0.1
|
$0.1
|
$0.1
|
$0.2
|
$0.1
|
|
$0.1
|
$0.4
|
Adjusted EBITDA
|
($4.4)
|
$5.5
|
$24.2
|
$12.5
|
$25.7
|
|
$27.4
|
$37.7
|
Non-GAAP Reconciliation - GRE
|
(in millions)
|
Q122
|
Income (loss) from Operations
|
$30.2
|
Add back
|
|
Depreciation and
Amortization
|
$0.1
|
Stock-based
Compensation
|
$0.2
|
Impairment
|
$0.0
|
Equity in the income of
equity method investee
|
$0.0
|
Adjusted EBITDA
|
$30.5
|
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SOURCE Genie Energy Ltd.