Reports record second-quarter gross profit,
net income and Adjusted EBITDA1
Repurchased 639,000 shares of Class B Common
Stock and $2 million of Preferred
Stock
Announced formation of Sunlight Energy
Investments to invest in commercial, community and utility-scale
solar projects
NEWARK,
N.J., Aug. 8, 2022 /PRNewswire/ -- Genie Energy,
Ltd. (NYSE: GNE, GNEPRA), a leading retail energy and renewable
energy solutions provider, today announced results for its second
quarter ended June 30, 2022.
"The drivers of our record first quarter results carried over
into the second quarter, leading to very strong profitability
metrics despite the second quarter's traditional weakness in the
US," said Michael Stein, chief
executive officer. "Overall, given the continued market
uncertainty, we employed a conservative customer acquisition and
retention strategy in our US and international retail operations,
allowing us to deliver strong profitability. Our international
results were impacted by a mark-to-market increase in the value of
our hedge book. Finally, we complemented our strong operational
performance by returning $8.8 million
in capital to shareholders via repurchases of common and preferred
stock and payments of our regular quarterly common and preferred
stock dividends."
Second Quarter
2022 Highlights (versus 2Q21 unless otherwise
noted)
- Revenue decreased 1.8% to $75.0
million;
- Gross profit increased 218.2% to $67.5
million, and gross margin increased to 89.9% from 27.8%, due
in large part to gains related to the international forward hedge
book;
- Income from operations increased to $48.5 million from 4.5 million;
- Adjusted EBITDA1 increased to $49.1 million from $5.5
million;
- GRE generated income from operations and Adjusted EBITDA of
$14.4 million and $14.7 million, compared to $5.5 million and $5.8
million, respectively;
- Net income attributable to GNE common stockholders increased to
$33.9 million, and diluted income per
share (EPS) increased to $1.30,
compared to a $5.0 million and
$0.19, respectively;
- Declared a $0.075 quarterly
dividend for class A and B common stockholders;
- Repurchased 639,000 shares of Class B common stock and redeemed
$2 million of preferred stock.
|
|
|
|
|
|
|
|
|
|
|
|
Select Financial
Metrics: 2022 versus 2021 as of 6/30/22*
|
|
|
|
|
|
|
|
(in $M except
for EPS)
|
2Q22
|
2Q21
|
Change
|
YTD
2022
|
YTD
2021
|
Change
|
|
|
|
|
Total
Revenue
|
$75.0
|
$76.4
|
(1.8 %)
|
$173.6
|
$183.9
|
(5.6 %)
|
|
|
|
|
Genie Retail - US
(GRE)
|
$63.2
|
$67.0
|
(5.7 %)
|
$147.0
|
$157.6
|
(6.7 %)
|
|
|
|
|
Electricity
|
$53.1
|
$61.9
|
(14.3 %)
|
$112.4
|
$135.3
|
(16.9 %)
|
|
|
|
|
Natural
Gas
|
$10.1
|
$5.1
|
98.7 %
|
$34.6
|
$22.4
|
54.7 %
|
|
|
|
|
Genie Retail -
International (GREI)**
|
$8.1
|
$7.1
|
14.6 %
|
$20.7
|
$21.4
|
(3.3 %)
|
|
|
|
|
Electricity
|
$7.8
|
$6.8
|
14.5 %
|
$20.2
|
$21.0
|
(4.0 %)
|
|
|
|
|
Other
|
$0.3
|
$0.3
|
16.8 %
|
$0.5
|
$0.4
|
35.1 %
|
|
|
|
|
Genie
Renewables
|
$3.8
|
$2.3
|
61.2 %
|
$5.8
|
$4.8
|
20.5 %
|
|
|
|
|
Gross
Margin
|
89.9 %
|
27.8 %
|
6,217bps
|
65.1 %
|
18.4 %
|
4,670bps
|
|
|
|
|
Genie Retail - US
(GRE)
|
45.9 %
|
27.4 %
|
1,857bps
|
51.4 %
|
21.1 %
|
3,029bps
|
|
|
|
|
Genie Retail -
International (GREI)
|
465.7 %
|
27.9 %
|
4,3780bps
|
174.4 %
|
-6.8 %
|
18,128bps
|
|
|
|
|
Genie
Renewables
|
21.6 %
|
39.4 %
|
(1,774)bps
|
23.0 %
|
42.2 %
|
(1,918)bps
|
|
|
|
|
Income (Loss) from
Operations
|
$48.5
|
$4.5
|
968.7 %
|
$72.9
|
($0.9)
|
nm
|
|
|
|
|
Operating
Margin
|
64.6 %
|
5.9 %
|
5867bps
|
42.0 %
|
-0.5 %
|
4251bps
|
|
|
|
|
Net Loss
Attributable to
Discontinued Operations
|
—
|
($3.2)
|
nm
|
—
|
($4.3)
|
nm
|
|
|
|
|
Net Income
Attributable to
GNE Common Stockholders
|
$33.9
|
$5.0
|
577.5 %
|
$51.4
|
$2.6
|
1845.2 %
|
|
|
|
|
Diluted Earnings Per
Share
|
$1.30
|
$0.19
|
584.2 %
|
$1.97
|
$0.10
|
1870.0 %
|
|
|
|
|
Adjusted
EBITDA1
|
$49.1
|
$5.5
|
798.2 %
|
$74.8
|
$1.1
|
6823.9 %
|
|
|
|
|
Cash Flow from (used
in)
Continuing Operating
Activities
|
$9.2
|
$3.7
|
149.2 %
|
$27.6
|
($2.0)
|
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 (as of quarters ended on June
30)**
|
Units in
1000s
|
2Q22
|
2Q21
|
Change
|
Retail Performance
Metrics:
|
|
|
|
Retail Customer
Equivalents (RCE)
|
303
|
384
|
(21.3 %)
|
Genie Retail - US
(GRE)
|
262
|
330
|
(20.4 %)
|
Electricity
|
185
|
272
|
(31.7 %)
|
Natural
Gas
|
77
|
58
|
32.2 %
|
Genie Retail -
International (GREI)
|
40
|
55
|
(26.7 %)
|
Electricity
|
40
|
55
|
(26.7 %)
|
Natural
Gas
|
---
|
---
|
nm
|
Meters in
1000s units
|
342
|
434
|
(21.4 %)
|
Genie Retail - US
(GRE)
|
280
|
361
|
(22.4 %)
|
Electricity
|
203
|
292
|
(30.3 %)
|
Natural
Gas
|
77
|
69
|
10.8 %
|
Genie Retail -
International (GREI)
|
62
|
74
|
(16.2 %)
|
Electricity
|
62
|
74
|
(16.2 %)
|
Natural
Gas
|
---
|
---
|
nm
|
GRE Average Monthly
Churn - Meters
|
|
|
|
Gross
Sales
|
34
|
35
|
(2.8 %)
|
Churn
|
4.4 %
|
3.8 %
|
66bps
|
** Orbit UK has been
classified as a discontinued operation and its results excluded
from current and historical
results
|
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 Measure 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
second quarter levels of gross profit, income from operations and
Adjusted EBITDA highlighted by strong margins in its retail book.
Electric per meter consumption declined moderately versus the
year-ago quarter but remained solidly above pre-COVID levels. As in
prior quarters, GRE moderated its customer acquisition efforts to
maximize the value of its portfolio given the ongoing market
volatility.
Sequentially, RCEs increased slightly to 263,000 while meters
served decreased by 6,000 to 280,000 as of June 30, 2022.
Average monthly churn increased to 4.4% from 3.8% in the year ago
quarter and decreased from 4.5% in the first quarter of 2022.
GRE will continue to monitor the retail energy markets for
customer acquisition opportunities. As volatility either
moderates or becomes more palatable to customers, GRE expects to
recalibrate its customer acquisition and retention programs to
generate growth in the customer book.
GREI
Energy price volatility in Europe resulted in mark-to-market gains in our
forward hedge book of $35.8 million.
After the quarter close, GREI took initial steps to optimize
its forward position. The company has sold its Swedish book
of approximately 6,000 meters and is evaluating additional actions
for the remaining customers.
Genie Renewables
Genie continued building solar
projects for large commercial customers and is on track to continue
recognizing additional revenue from its current backlog of
projects. The company made strides in the community solar and
utility scale solar space as well, and expects to share more about
these verticals in Q3. Q2 revenue strength came from the
segment's CityCom Solar business which markets community solar
energy solutions.
Balance Sheet and Cash Flow Highlights
On June 30, 2022, Genie Energy reported $239.2 million in total assets, including
$67.2 million in cash, restricted
cash and marketable equity securities. Liabilities totaled
$86.0 million, and working capital
(current assets less current liabilities) totaled $125.8 million. Non-current liabilities were
$10.7 million.
During the quarter ended June 30,
2022, net cash provided by operating activities was
$9.2 million compared to $4.1 million a year ago.
Strategic Update and Commentary on the Balance of
2022
Michael Stein commented,
"In light of the continued volatility in energy markets as well as
global economic and political uncertainty, we took steps to enhance
our position through the sale of our Swedish book of business to
another market participant. We are continuing to evaluate ways in
which to reduce our obligations in Europe and will provide further updates on our
third-quarter earnings call.
"We also recently announced a significant expansion of our solar
strategy, transforming Genie into a developer and financier of
commercial, community and utility-scale solar projects. To
facilitate equity financing, we formed Sunlight Energy Investments
with Genie as the general partner. Sunlight Energy will seek to
participate in projects originated by both Genie and by other solar
developers, and will bring in other investors to participate
alongside Genie.
"Looking ahead to the remainder of 2022, we anticipate that
energy price volatility will continue to impact our domestic retail
provider business in the near term. Until we return to a
normalized environment, we will focus on maximizing margins and
cash flow while moderating our investment in customer
acquisition."
Trended Financial
Information:*
|
|
|
(in $M except
for EPS, RCE and Meters)
|
1Q21
|
2Q21
|
3Q21
|
4Q21
|
1Q22
|
2Q22
|
|
2020
|
2021
|
YTD
2022
|
Total
Revenue
|
$107.5
|
$76.4
|
$95.1
|
$84.7
|
$98.5
|
$75.0
|
|
$356.9
|
$363.7
|
$173.6
|
Genie Retail - US
(GRE)
|
$90.7
|
$67.0
|
$86.3
|
$67.9
|
$83.9
|
$63.2
|
|
$304.4
|
$311.8
|
$147.0
|
Electricity
|
$73.4
|
$61.9
|
$82.8
|
$54.9
|
$59.4
|
$53.1
|
|
$270.9
|
$273.0
|
$112.4
|
Natural
Gas
|
$17.3
|
$5.1
|
$3.5
|
$12.9
|
$24.5
|
$10.1
|
|
$33.6
|
$38.8
|
$34.6
|
Genie Retail -
International (GREI)**
|
$14.3
|
$7.1
|
$7.5
|
$15.5
|
$12.6
|
$8.1
|
|
$27.3
|
$44.4
|
$20.7
|
Electricity
|
$14.2
|
$6.8
|
$7.1
|
$15.2
|
$12.4
|
$7.8
|
|
$26.6
|
$43.3
|
$20.2
|
Other
|
$0.1
|
$0.3
|
$0.4
|
$0.3
|
$0.2
|
$0.3
|
|
$0.6
|
$1.1
|
$0.5
|
Genie
Renewables
|
$2.5
|
$2.3
|
$1.3
|
$1.3
|
$2.0
|
$3.8
|
|
$25.2
|
$7.5
|
$5.8
|
Gross
Margin
|
11.8 %
|
27.8 %
|
43.5 %
|
34.9 %
|
46.2 %
|
89.9 %
|
|
26.6 %
|
28.8 %
|
65.1 %
|
Genie Retail - US
(GRE)
|
16.5 %
|
27.4 %
|
39.6 %
|
34.5 %
|
55.5 %
|
45.9 %
|
|
29.0 %
|
29.1 %
|
51.4 %
|
Genie Retail -
International (GREI)
|
-23.9 %
|
27.9 %
|
91.0 %
|
37.8 %
|
-12.4 %
|
465.7 %
|
|
16.6 %
|
25.2 %
|
23.0 %
|
Genie
Renewables
|
44.9 %
|
39.4 %
|
34.0 %
|
21.5 %
|
25.7 %
|
21.6 %
|
|
8.8 %
|
37.1 %
|
37.1 %
|
Income (loss) from
Operations
|
($5.5)
|
$4.5
|
$23.3
|
$10.7
|
$24.4
|
$48.5
|
|
$21.9
|
$33.1
|
$72.9
|
Operating
Margin
|
(5.1 %)
|
5.9 %
|
24.5 %
|
12.7 %
|
24.8 %
|
64.6 %
|
|
6.1 %
|
9.1 %
|
42.0 %
|
Net Income (Loss)
Attributable to Discontinued
Operations
|
($1.1)
|
($3.2)
|
($16.4)
|
$26.3
|
---
|
—
|
|
$0.8
|
$5.5
|
—
|
Net Income (Loss)
Attributable to GNE Common
Stockholders
|
($2.4)
|
$5.0
|
($2.7)
|
$29.2
|
$17.5
|
$33.9
|
|
$11.7
|
$29.1
|
$51.4
|
Diluted Earnings
(Loss) Per Share
|
($0.09)
|
$0.19
|
($0.11)
|
$1.12
|
$0.67
|
$1.30
|
|
$0.44
|
$1.11
|
$1.97
|
Adjusted
EBITDA
|
($4.4)
|
$5.5
|
$24.2
|
$12.5
|
$25.7
|
$49.1
|
|
$27.4
|
$37.7
|
$74.8
|
Retail Performance
Metrics:
|
|
|
|
|
|
|
|
|
|
|
Retail Customer
Equivalents (RCE) in
1000s
|
400
|
384
|
383
|
301
|
298
|
303
|
|
389
|
301
|
303
|
Genie Retail - US
(GRE)
|
347
|
330
|
336
|
260
|
260
|
262
|
|
337
|
260
|
262
|
Electricity
|
291
|
272
|
276
|
189
|
182
|
185
|
|
284
|
189
|
185
|
Natural
Gas
|
56
|
58
|
60
|
71
|
78
|
77
|
|
53
|
71
|
77
|
Genie Retail -
International (GREI)
|
53
|
55
|
46
|
40
|
38
|
40
|
|
51
|
40
|
40
|
Electricity
|
53
|
55
|
46
|
40
|
38
|
40
|
|
51
|
40
|
40
|
Natural
Gas
|
---
|
---
|
---
|
---
|
---
|
---
|
|
---
|
---
|
---
|
Meters in 1000s units
|
447
|
434
|
428
|
352
|
347
|
342
|
|
441
|
352
|
342
|
Genie Retail - US
(GRE)
|
373
|
361
|
361
|
285
|
286
|
280
|
|
368
|
285
|
280
|
Electricity
|
308
|
292
|
289
|
210
|
209
|
203
|
|
303
|
210
|
203
|
Natural
Gas
|
65
|
69
|
72
|
75
|
78
|
77
|
|
65
|
75
|
77
|
Genie Retail -
International (GREI)
|
74
|
74
|
67
|
67
|
61
|
62
|
|
73
|
67
|
62
|
Electricity
|
74
|
74
|
67
|
67
|
61
|
62
|
|
73
|
67
|
62
|
Natural
Gas
|
---
|
---
|
---
|
---
|
---
|
---
|
|
---
|
---
|
---
|
GRE Meter
Data
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
62
|
35
|
47
|
33
|
44
|
34
|
|
212
|
177
|
79
|
Churn***
|
4.9 %
|
3.8 %
|
4.0 %
|
6.2 %
|
4.5 %
|
4.4 %
|
|
4.4 %
|
4.7 %
|
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 August 18,
2022. The dividend will be paid on or about August 26, 2022. The distribution will be treated
as an ordinary dividend for income tax purposes.
Earnings Announcement and Supplemental Information
At
8:30 AM Eastern today, 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 1-888-506-0062
(toll-free from the US) or +1-973-528-0011 (international) and
provide the following participant access code: 955827.
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:
46224. The replay will remain available through August 22, 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)
|
|
|
June 30,
2022
|
|
|
December 31,
2021
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
61,093
|
|
|
$
|
95,492
|
|
Restricted
cash—short-term
|
|
5,658
|
|
|
|
6,657
|
|
Marketable equity
securities
|
|
490
|
|
|
|
1,336
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $4,480 and
$6,365
at June 30, 2022 and December 31, 2021, respectively
|
|
43,881
|
|
|
|
52,357
|
|
Inventory
|
|
16,043
|
|
|
|
17,720
|
|
Prepaid
expenses
|
|
6,843
|
|
|
|
4,994
|
|
Other current
assets
|
|
48,392
|
|
|
|
21,789
|
|
Current assets of
discontinued operations
|
|
18,680
|
|
|
|
—
|
|
Total current
assets
|
|
201,080
|
|
|
|
200,345
|
|
Property and equipment,
net
|
|
347
|
|
|
|
297
|
|
Goodwill
|
|
11,617
|
|
|
|
11,755
|
|
Other intangibles,
net
|
|
3,408
|
|
|
|
3,648
|
|
Deferred income tax
assets, net
|
|
4,581
|
|
|
|
4,259
|
|
Other assets
|
|
18,202
|
|
|
|
9,161
|
|
Total assets
|
$
|
239,235
|
|
|
$
|
229,465
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
26,188
|
|
|
|
33,554
|
|
Accrued
expenses
|
|
33,771
|
|
|
|
39,523
|
|
Income taxes
payable
|
|
10,903
|
|
|
|
9,792
|
|
Due to IDT Corporation,
net
|
|
148
|
|
|
|
532
|
|
Other current
liabilities
|
|
4,311
|
|
|
|
2,125
|
|
Current liabilities of
discontinued operations
|
|
—
|
|
|
|
30,766
|
|
Total current
liabilities
|
|
75,321
|
|
|
|
116,292
|
|
Other
liabilities
|
|
10,660
|
|
|
|
2,384
|
|
Total
liabilities
|
|
85,981
|
|
|
|
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
2,087 and 2,322 shares issued and outstanding at June 30, 2022
and December 31, 2021
|
|
17,743
|
|
|
|
19,743
|
|
Class A common
stock, $0.01 par value; authorized shares—35,000; 1,574 shares
issued
and outstanding at June 30, 2022 and December 31, 2021
|
|
16
|
|
|
|
16
|
|
Class B common stock,
$0.01 par value; authorized shares—200,000; 26,712 and 26,620
shares issued and 24,055 and 24,615 shares outstanding at June 30,
2022 and December
31, 2021, respectively
|
|
267
|
|
|
|
266
|
|
Additional paid-in
capital
|
|
144,818
|
|
|
|
143,249
|
|
Treasury stock, at
cost, consisting of 2,657 and 2,005 shares of Class B common
stock at
June 30, 2022 and December 31, 2021
|
|
(18,519)
|
|
|
|
(14,034)
|
|
Accumulated other
comprehensive income
|
|
1,123
|
|
|
|
3,160
|
|
Retained earnings
(accumulated deficit)
|
|
18,361
|
|
|
|
(29,115)
|
|
Total Genie Energy Ltd.
stockholders' equity
|
|
163,809
|
|
|
|
123,285
|
|
Noncontrolling interests
|
|
(10,555)
|
|
|
|
(12,496)
|
|
Total equity
|
|
153,254
|
|
|
|
110,789
|
|
Total liabilities and
equity
|
$
|
239,235
|
|
|
$
|
229,465
|
|
GENIE ENERGY
LTD.
Consolidated
Statements of Operations
(Unaudited)
|
|
|
|
Three Months
Ended
June 30,
|
|
|
Six Months
Ended
June 30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
(in thousands,
except per share data)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electricity
|
$
|
60,832
|
|
|
$
|
68,681
|
|
|
$
|
132,616
|
|
|
$
|
156,294
|
|
Natural gas
|
|
10,098
|
|
|
|
5,082
|
|
|
|
34,601
|
|
|
|
22,362
|
|
Other
|
|
4,096
|
|
|
|
2,616
|
|
|
|
6,337
|
|
|
|
5,214
|
|
Total
revenues
|
|
75,026
|
|
|
|
76,379
|
|
|
|
173,554
|
|
|
|
183,870
|
|
Cost of
revenues
|
|
7,552
|
|
|
|
55,171
|
|
|
|
60,539
|
|
|
|
150,008
|
|
Gross profit
|
|
67,474
|
|
|
|
21,208
|
|
|
|
113,015
|
|
|
|
33,862
|
|
Operating expenses and
losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative (i)
|
|
18,998
|
|
|
|
16,672
|
|
|
|
40,107
|
|
|
|
34,790
|
|
Income (loss) from
operations
|
|
48,476
|
|
|
|
4,536
|
|
|
|
72,908
|
|
|
|
(928)
|
|
Interest
income
|
|
48
|
|
|
|
10
|
|
|
|
65
|
|
|
|
20
|
|
Interest
expense
|
|
(52)
|
|
|
|
(103)
|
|
|
|
(102)
|
|
|
|
(212)
|
|
Unrealized (loss) gain
on marketable equity securities and investments
|
|
(146)
|
|
|
|
2,915
|
|
|
|
(799)
|
|
|
|
7,022
|
|
Gain on sale of
subsidiary
|
|
—
|
|
|
|
4,226
|
|
|
|
—
|
|
|
|
4,226
|
|
Other (loss) income,
net
|
|
(372)
|
|
|
|
39
|
|
|
|
(869)
|
|
|
|
447
|
|
Income before income
taxes
|
|
47,954
|
|
|
|
11,623
|
|
|
|
71,203
|
|
|
|
10,575
|
|
Provision for income
taxes
|
|
(10,581)
|
|
|
|
(3,143)
|
|
|
|
(17,094)
|
|
|
|
(3,679)
|
|
Net income from
continuing operations
|
|
37,373
|
|
|
|
8,480
|
|
|
|
54,109
|
|
|
|
6,896
|
|
Loss from
discontinued operations, net of taxes
|
|
—
|
|
|
|
(3,195)
|
|
|
|
—
|
|
|
|
(4,305)
|
|
Net income
|
|
37,373
|
|
|
|
5,285
|
|
|
|
54,109
|
|
|
|
2,591
|
|
Net income (loss)
attributable to noncontrolling interests
|
|
2,894
|
|
|
|
(82)
|
|
|
|
1,741
|
|
|
|
(790)
|
|
Net income attributable
to Genie Energy Ltd.
|
|
34,479
|
|
|
|
5,367
|
|
|
|
52,368
|
|
|
|
3,381
|
|
Dividends on preferred
stock
|
|
(624)
|
|
|
|
(370)
|
|
|
|
(994)
|
|
|
|
(740)
|
|
Net income attributable
to Genie Energy Ltd. common stockholders
|
$
|
33,855
|
|
|
$
|
4,997
|
|
|
$
|
51,374
|
|
|
$
|
2,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to
Genie Energy Ltd. common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
$
|
33,896
|
|
|
$
|
8,192
|
|
|
$
|
51,374
|
|
|
$
|
6,946
|
|
Loss from
discontinued operations
|
|
—
|
|
|
|
(3,195)
|
|
|
|
—
|
|
|
|
(4,305)
|
|
Net income attributable
to Genie Energy Ltd. common stockholders
|
$
|
33,896
|
|
|
$
|
4,997
|
|
|
$
|
51,374
|
|
|
|
2,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Genie Energy Ltd. common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
$
|
1.33
|
|
|
$
|
0.31
|
|
|
$
|
2.01
|
|
|
$
|
0.27
|
|
Loss from
discontinued operations
|
|
—
|
|
|
|
(0.12)
|
|
|
|
—
|
|
|
|
(0.17)
|
|
Net
income attributable to Genie Energy Ltd. common
stockholders
|
$
|
1.33
|
|
|
$
|
0.19
|
|
|
$
|
2.01
|
|
|
$
|
0.10
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
$
|
1.30
|
|
|
$
|
0.31
|
|
|
$
|
1.97
|
|
|
$
|
0.26
|
|
Loss from
discontinued operations
|
|
—
|
|
|
|
(0.12)
|
|
|
|
—
|
|
|
|
(0.16)
|
|
Net
income attributable to Genie Energy Ltd. common
stockholders
|
$
|
1.30
|
|
|
$
|
0.19
|
|
|
$
|
1.97
|
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares used in calculation of earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
25,463
|
|
|
|
25,804
|
|
|
|
25,613
|
|
|
|
25,903
|
|
Diluted
|
|
26,070
|
|
|
|
26,227
|
|
|
|
26,088
|
|
|
|
26,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
common share
|
$
|
0.075
|
|
|
$
|
—
|
|
|
$
|
0.150
|
|
|
$
|
—
|
|
(i)Stock-based
compensation included in selling, general and administrative
expenses
|
$
|
730
|
|
|
$
|
559
|
|
|
$
|
1,570
|
|
|
$
|
1,148
|
|
GENIE ENERGY
LTD.
Consolidated
Statements of Cash Flows
(Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
(in
thousands)
|
|
Operating
activities
|
|
|
|
|
|
|
Net income
|
|
$
|
54,109
|
|
|
$
|
2,591
|
|
Net loss
from discontinued operations, net of tax
|
|
|
—
|
|
|
|
(4,305)
|
|
Net income from
continuing operations
|
|
|
54,109
|
|
|
|
6,896
|
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
532
|
|
|
|
696
|
|
Deferred income
taxes
|
|
|
7,019
|
|
|
|
2,972
|
|
Provision for doubtful
accounts receivable
|
|
|
1,301
|
|
|
|
1,092
|
|
Unrealized loss (gain)
marketable equity securities and investment
|
|
|
799
|
|
|
|
(7,022)
|
|
Stock-based
compensation
|
|
|
1,570
|
|
|
|
1,148
|
|
Equity in the net loss
(income) in equity method investees
|
|
|
249
|
|
|
|
(164)
|
|
Gain on sale of
subsidiaries
|
|
|
—
|
|
|
|
(4,226)
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
7,175
|
|
|
|
(621)
|
|
Inventory
|
|
|
1,677
|
|
|
|
1,277
|
|
Prepaid
expenses
|
|
|
(1,849)
|
|
|
|
(1,211)
|
|
Other current assets
and other assets
|
|
|
(34,212)
|
|
|
|
(3,387)
|
|
Trade accounts
payable, accrued expenses and other current liabilities
|
|
|
(11,546)
|
|
|
|
(170)
|
|
Due to IDT
Corporation
|
|
|
(384)
|
|
|
|
47
|
|
Income taxes
payable
|
|
|
1,111
|
|
|
|
625
|
|
Net cash provided by
(used in) operating activities of continuing operations
|
|
|
27,551
|
|
|
|
(2,048)
|
|
Net cash
used in discontinued operations
|
|
|
—
|
|
|
|
(3,824)
|
|
Net cash provided by
(used in) operating activities
|
|
|
27,551
|
|
|
|
(5,872)
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(60)
|
|
|
|
(80)
|
|
Proceeds from the sale
of subsidiary, net of cash disposed
|
|
|
—
|
|
|
|
4,550
|
|
Investment in notes
receivables with related party
|
|
|
(1,388)
|
|
|
|
—
|
|
Purchase of marketable
equity securities and other investment
|
|
|
(800)
|
|
|
|
(1,000)
|
|
Repayment of notes
receivable
|
|
|
19
|
|
|
|
13
|
|
Net cash (used in)
provided by investing activities of continuing
operations
|
|
|
(2,229)
|
|
|
|
3,483
|
|
Net cash
used in investing activities of discontinued operations
|
|
|
(49,446)
|
|
|
|
—
|
|
Net cash (used in)
provided by investing activities
|
|
|
(51,675)
|
|
|
|
3,483
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(4,669)
|
|
|
|
(740)
|
|
Repurchases of Class B
common stock from employees
|
|
|
(71)
|
|
|
|
—
|
|
Repurchase of Class B
common stock
|
|
|
(4,414)
|
|
|
|
(2,435)
|
|
Redemption of
preferred stock
|
|
|
(2,000)
|
|
|
|
—
|
|
Net cash used in by
financing activities
|
|
|
(11,154)
|
|
|
|
(3,175)
|
|
Effect of exchange rate
changes on cash, cash equivalents, and restricted cash
|
|
|
(120)
|
|
|
|
(54)
|
|
Net decrease in cash,
cash equivalents, and restricted cash
|
|
|
(35,398)
|
|
|
|
(5,618)
|
|
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
|
|
|
66,751
|
|
|
|
37,566
|
|
Less: Cash of
discontinued operations at end of period
|
|
|
—
|
|
|
|
1,906
|
|
Cash, cash
equivalents, and restricted cash (excluding discontinued
operations) at end of period
|
|
$
|
66,751
|
|
|
$
|
35,660
|
|
Reconciliation of Non-GAAP Financial Measure for the Second
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 for Genie Energy Ltd.
|
|
|
Q121
|
Q221
|
Q321
|
Q421
|
1Q22
|
2Q22
|
|
2020
|
2021
|
YTD
22
|
Income (loss) from
Operations
|
($5.5)
|
$4.5
|
$23.3
|
$10.7
|
$24.4
|
$48.5
|
|
$21.9
|
$33.1
|
$72.9
|
Add
back
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
$0.4
|
$0.3
|
$0.3
|
$0.3
|
$0.3
|
$0.2
|
|
$3.0
|
$1.3
|
$0.5
|
Non-Cash
Compensation
|
$0.6
|
$0.6
|
$0.5
|
$1.3
|
$0.8
|
$0.7
|
|
$1.1
|
$2.9
|
$1.6
|
Impairment
|
$0.0
|
$0.0
|
$0.0
|
$0.0
|
$0.0
|
$0.0
|
|
$1.4
|
$0.0
|
$0.0
|
Equity in the Loss
of AMSO/GEUK
|
$0.1
|
$0.1
|
$0.1
|
$0.2
|
$0.1
|
($0.4)
|
|
$0.1
|
$0.4
|
($0.2)
|
Adjusted
EBITDA
|
($4.4)
|
$5.5
|
$24.2
|
$12.5
|
$25.7
|
$49.1
|
|
$27.4
|
$37.7
|
$74.8
|
Non-GAAP
Reconciliation
Adjusted EBITDA for
GRE
|
|
|
|
(in
millions)
|
Q122
|
Q222
|
|
YTD
22
|
Income (loss) from
Operations
|
$30.2
|
$14.4
|
|
$44.6
|
Add
back
|
|
|
|
|
Depreciation and
Amortization
|
$0.1
|
$0.1
|
|
$0.2
|
Stock-based
Compensation
|
$0.2
|
$0.2
|
|
$0.4
|
Impairment
|
$0.0
|
$0.0
|
|
$0.0
|
Equity in the income of
equity method investee
|
$0.0
|
$0.0
|
|
$0.0
|
Adjusted
EBITDA
|
$30.5
|
$14.7
|
|
$45.2
|
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SOURCE Genie Energy Ltd.