Reports record third-quarter gross profit, net
income and Adjusted EBITDA1
Acquired site rights to build up to 64MW
(megawatts) of solar projects
NEWARK,
N.J., Nov. 7, 2022 /PRNewswire/ -- Genie Energy,
Ltd. (NYSE: GNE, GNEPRA), a leading retail energy and renewable
energy solutions provider, today announced results for its third
quarter ended September 30, 2022.
"We reported record third quarter profit metrics driven by
strength in Genie Retail Energy (GRE), our domestic retail energy
business," said Michael Stein, chief
executive officer. "GRE continued to outperform in a volatile
energy price environment. We were well-positioned with our customer
book and hedges heading into the quarter and were able to drive a
54% gross margin and generate nearly $28
million in Adjusted EBITDA. Genie Renewables (GREW) also
made excellent progress in our solar business, acquiring site
rights to 64MW of solar projects and advancing them through their
permitting processes.
"Given the challenging environment in the European energy
market, we determined that the risk was beyond our acceptable
tolerances. As a result, we exited our remaining international
retail operations and no longer serve customers in Scandanavia.*
Finally, building on our strong domestic operational performance,
we returned $3.2 million in capital
to shareholders via redemption of preferred stock and payments of
our regular quarterly common and preferred stock dividends."
* Genie Retail Energy International (GREI) results are
classified as discontinued operations in the third quarter of 2022
and for all prior periods presented.
Third Quarter
2022 Highlights (versus 3Q21 unless otherwise noted;
excludes GREI for all periods)
- Revenue decreased 7.3% to $81.3
million from $87.7
million;
- Gross profit increased 24.7% to $43.1
million from $34.6 million,
and gross margin increased to 53.1% from 39.5%, driven by strength
at GRE;
- Income from operations increased 34.8% to $23.5 million from $17.5
million;
- Adjusted EBITDA1 increased 35.2% to $24.5 million from $18.1
million;
- GRE generated income from continuing operations and Adjusted
EBITDA of $27.4 million and
$27.7 million, compared to
$19.7 million and $20.0 million, respectively;
- Net income from continuing operations attributable to GNE
common stockholders increased to $18.3
million, and diluted income per share (EPS) increased to
$0.70, compared to a loss of
$2.7 million and net loss per share
of $0.10, respectively;
- Cash, restricted cash and marketable equity securities
increased to $87.7 million at
September 30, 2022, from $67.2 million at June 30,
2022;
- Declared a $0.075 quarterly
dividend for class A and B common stockholders;
- Redeemed $1 million of preferred
stock.
Select Financial
Metrics: 2022 versus 2021 as of 9/30/22*
|
(in $M except
for EPS)
|
3Q22
|
3Q21
|
Change
|
YTD
2022
|
YTD
2021
|
Change
|
Total
Revenue
|
$81.3
|
$87.7
|
(7.3 %)
|
$234.2
|
$254.1
|
(7.8 %)
|
Genie Retail - US
(GRE)
|
$79.9
|
$86.3
|
(7.4 %)
|
$227.0
|
$244.0
|
(7.0 %)
|
Electricity
|
$73.8
|
$82.8
|
(10.9 %)
|
$186.2
|
$218.1
|
(14.6 %)
|
Natural
Gas
|
$6.2
|
$3.5
|
75.0 %
|
$40.8
|
$25.9
|
57.5 %
|
Genie
Renewables
|
$1.4
|
$0.9
|
2.2 %
|
$7.2
|
$6.2
|
16.5 %
|
Gross
Margin
|
53.1 %
|
39.5 %
|
1360bps
|
51.3 %
|
26.7 %
|
2455bps
|
Genie Retail - US
(GRE)
|
54.1 %
|
39.6 %
|
1453bps
|
27.6 %
|
24.7 %
|
394bps
|
Genie
Renewables
|
(6.3 %)
|
34.0 %
|
(4029)bps
|
17.5 %
|
40.4 %
|
(2298)bps
|
Income (Loss) from
Operations
|
$23.5
|
$17.5
|
34.8 %
|
$62.3
|
$18.3
|
240.7 %
|
Operating
Margin
|
29.0 %
|
19.9 %
|
903bps
|
26.6 %
|
(5.1 %)
|
3168bps
|
Net Income (Loss)
Attributable to Discontinued Operations
|
($1.5)
|
($10.9)
|
(86.6 %)
|
$25.9
|
($17.0)
|
nm
|
Net Income (Loss)
Attributable to GNE Common Stockholders
|
$18.3
|
($2.7)
|
nm
|
$69.7
|
($0.0)
|
nm
|
Diluted Earnings
(Loss) Per Share
|
$0.70
|
($0.10)
|
nm
|
$2.65
|
($0.00)
|
nm
|
Adjusted
EBITDA1
|
$24.5
|
$18.1
|
35.2 %
|
$64.7
|
$20.4
|
nm
|
Cash Flow from
Continuing Operating Activities
|
$22.5
|
$0.3
|
nm
|
$44.9
|
($0.9)
|
nm
|
nm = not
measurable/meaningful
|
|
|
|
|
|
|
*Numbers may not add
due to rounding
|
|
|
|
|
|
|
** GREI operations have
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
September 30)**
|
Units in
1000s
|
3Q22
|
3Q21
|
Change
|
|
Retail Performance
Metrics:
|
|
|
|
|
Genie Retail - US
(GRE)
|
251
|
336
|
(25.3 %)
|
|
Electricity
|
174
|
276
|
(37.0 %)
|
|
Natural
Gas
|
77
|
60
|
28.1 %
|
|
Meters in
1000s units
|
|
|
|
|
Genie Retail - US
(GRE)
|
271
|
361
|
(25.0 %)
|
|
Electricity
|
193
|
289
|
(33.0 %)
|
|
Natural
Gas
|
77
|
72
|
7.3 %
|
|
Gross
Adds
|
34
|
47
|
(27.7 %)
|
|
Churn***
|
4.7 %
|
4.0 %
|
70bps
|
|
** GREI operations have
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 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
Genie Retail Energy (GRE)
GRE delivered record third quarter 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 customer acquisition to
maximize the value of its portfolio, given the ongoing market
volatility.
Sequentially, RCEs and meters served decreased by 11,000 and
9,000 to 251,000 and 271,000, respectively, as of September
30, 2022. Average monthly churn increased to 4.7% from 4.0% in
the year-ago quarter and from 4.4% in the second quarter of
2022.
Genie Renewables (GREW)
Genie Solar Energy continued building solar projects for large
commercial customers and is on track to continue recognizing
additional revenue from its growing backlog of projects.
As previously disclosed, GREW is also building a portfolio of
company-owned and/or controlled solar generation fields. In that
regard, the Company achieved site control on multiple projects
totaling 64MW of generation capacity.
Balance Sheet and Cash Flow Highlights
On September 30, 2022, Genie
Energy reported $259.9 million in
total assets. Liabilities totaled $97.7
million, and working capital (current assets less current
liabilities) totaled $128.5 million.
Non-current liabilities were $11.7
million.
For the quarter ended September 30,
2022, net cash provided by operating activities was
$25.6 million compared to
$6.0 million a year ago.
Strategic Update and Commentary on the Balance of
2022
GRE will continue monitoring the U.S. 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 its customer book.
On October 12, 2022, Genie
announced that, on November 15, 2022,
it would redeem 986,400 shares of its Preferred Stock for an
aggregate cost of approximately $8.3
million. After this redemption, Genie Energy will have
983,358 shares of Preferred Stock outstanding with an aggregate
stated value of $8.4 million.
Stein commented, "We expect energy prices to remain volatile as
we head into the Winter months, but we continue to be
well-positioned from a risk management position and will return to
customer acquisition mode on a market-by-market basis when the
risk/reward balance is favorable. Additionally, we expect to
receive all approvals necessary to begin construction on our first
wholly-owned and operated solar generation project this quarter.
Finally, we continue to redeem our preferred stock to enhance our
flexibility to invest future cash-flows in value creation
initiatives, including pursuing additional growth opportunities in
our renewables business."
Trended Financial
Information:*
|
(in $M except
for EPS, RCE and Meters)**
|
1Q21
|
2Q21
|
3Q21
|
4Q21
|
1Q22
|
2Q22
|
3Q22
|
|
2019
|
2020
|
2021
|
YTD
2022
|
Total
Revenue
|
$96.3
|
$70.1
|
$87.7
|
$69.2
|
$85.9
|
$66.9
|
$81.3
|
|
$315.3
|
$338.4
|
$323.3
|
$234.2
|
Genie Retail - US
(GRE)
|
$90.7
|
$67.0
|
$86.3
|
$67.9
|
$83.9
|
$63.2
|
$79.9
|
|
$286.6
|
$304.4
|
$311.8
|
$244.0
|
Electricity
|
$73.4
|
$61.9
|
$82.8
|
$54.9
|
$59.4
|
$53.1
|
$73.8
|
|
$246.7
|
$270.9
|
$273.0
|
$186.2
|
Natural
Gas
|
$17.3
|
$5.1
|
$3.5
|
$12.9
|
$24.5
|
$10.1
|
$6.2
|
|
$39.9
|
$33.6
|
$38.8
|
$40.8
|
Genie
Renewables
|
$2.5
|
$2.3
|
$1.3
|
$1.3
|
$2.0
|
$3.8
|
$1.4
|
|
$12.1
|
$25.2
|
$7.5
|
$7.2
|
Gross
Margin
|
14.4 %
|
27.8 %
|
39.5 %
|
34.3 %
|
54.8 %
|
44.5 %
|
53.1 %
|
|
26.3 %
|
27.0 %
|
28.3 %
|
51.3 %
|
Genie Retail - US
(GRE)
|
16.5 %
|
16.5 %
|
16.5 %
|
16.5 %
|
16.5 %
|
16.5 %
|
16.5 %
|
|
28.1 %
|
29.0 %
|
29.1 %
|
52.3 %
|
Genie
Renewables
|
44.9 %
|
39.4 %
|
34.0 %
|
21.5 %
|
25.7 %
|
21.6 %
|
-6.3 %
|
|
15.7 %
|
8.8 %
|
37.1 %
|
17.5 %
|
Income (loss) from
Operations
|
($3.2)
|
$4.0
|
$17.5
|
$5.8
|
$27.0
|
$11.8
|
$23.5
|
|
$9.8
|
$23.1
|
$24.1
|
$62.3
|
Operating
Margin
|
-3.3 %
|
5.7 %
|
19.9 %
|
8.4 %
|
31.4 %
|
17.6 %
|
29.0 %
|
|
3.1 %
|
6.8 %
|
7.5 %
|
26.6 %
|
Net Income (Loss)
Attributable to Discontinued Operations
|
($3.4)
|
($2.7)
|
($10.9)
|
$28.7
|
($1.9)
|
$29.3
|
($1.5)
|
|
$9.8
|
($0.5)
|
$11.7
|
$25.9
|
Net Income (Loss)
Attributable to GNE Common Stockholders
|
($2.4)
|
$5.0
|
($2.7)
|
$27.6
|
$17.5
|
$33.9
|
$18.3
|
|
$9.8
|
$11.7
|
$27.5
|
$69.7
|
Diluted Earnings
(Loss) Per Share
|
($0.09)
|
$0.19
|
($0.10)
|
$1.06
|
$0.67
|
$1.30
|
$0.70
|
|
$0.10
|
$0.44
|
$1.06
|
$2.65
|
Adjusted
EBITDA
|
($2.4)
|
$4.7
|
$18.1
|
$7.3
|
$28.0
|
$12.2
|
$24.5
|
|
$10.1
|
$26.6
|
$27.8
|
$64.7
|
GRE Retail
Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
RCEs
|
347
|
330
|
336
|
260
|
260
|
263
|
251
|
|
307
|
337
|
260
|
nm
|
Electricity
|
291
|
272
|
276
|
189
|
182
|
185
|
174
|
|
246
|
284
|
189
|
nm
|
Natural
Gas
|
56
|
58
|
60
|
71
|
78
|
77
|
77
|
|
61
|
53
|
71
|
nm
|
Meters
|
373
|
361
|
361
|
285
|
286
|
280
|
271
|
|
369
|
368
|
285
|
nm
|
Electricity
|
308
|
292
|
289
|
210
|
209
|
203
|
193
|
|
296
|
303
|
210
|
nm
|
Natural
Gas
|
65
|
69
|
72
|
75
|
77
|
77
|
77
|
|
73
|
65
|
75
|
nm
|
Gross
Adds
|
62
|
35
|
46
|
33
|
44
|
34
|
33
|
|
308
|
212
|
177
|
112
|
Churn***
|
4.9 %
|
3.8 %
|
4.0 %
|
6.2 %
|
4.5 %
|
4.4 %
|
4.7 %
|
|
5.3 %
|
4.4 %
|
4.5 %
|
4.5 %
|
nm = not
measurable/meaningful
|
*Numbers may not add
due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
** GREI operations have
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 November 14, 2022. The dividend will be paid on
or about November 21, 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'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 U.S.) or 1-973-528-0011 (international) and
provide the following participant access code: 643413.
Approximately three hours after the call, a call replay will be
accessible by dialing 1-877-481-4010 (toll-free from the U.S.) or
1-919-882-2331 (international) and providing the replay passcode:
46970. The replay will remain available through November 21, 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 retail energy and
renewable energy solutions provider. 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 Renewables division is a vertically-integrated provider
of commercial, community, and utility-scale solar energy 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)
|
|
|
September 30,
2022
|
|
|
December 31,
2021
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
81,705
|
|
|
$
|
93,568
|
|
Restricted
cash—short-term
|
|
5,555
|
|
|
|
6,657
|
|
Marketable equity
securities
|
|
471
|
|
|
|
1,336
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $4,448 and
$6,139 at September 30, 2022 and December 31, 2021,
respectively
|
|
43,524
|
|
|
|
41,309
|
|
Inventory
|
|
18,517
|
|
|
|
17,720
|
|
Prepaid
expenses
|
|
7,806
|
|
|
|
4,164
|
|
Other current
assets
|
|
8,156
|
|
|
|
2,354
|
|
Current assets of
discontinued operations
|
|
48,863
|
|
|
|
33,237
|
|
Total current
assets
|
|
214,597
|
|
|
|
200,345
|
|
Goodwill
|
|
9,998
|
|
|
|
9,998
|
|
Other intangibles,
net
|
|
3,232
|
|
|
|
3,530
|
|
Deferred income tax
assets, net
|
|
5,203
|
|
|
|
5,203
|
|
Other assets
|
|
12,975
|
|
|
|
9,217
|
|
Noncurrent assets of
discontinued operations
|
|
13,851
|
|
|
|
1,172
|
|
Total
assets
|
$
|
259,856
|
|
|
$
|
229,465
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
18,783
|
|
|
|
14,541
|
|
Accrued
expenses
|
|
41,803
|
|
|
|
38,005
|
|
Income taxes
payable
|
|
17,521
|
|
|
|
9,512
|
|
Due to IDT
Corporation, net
|
|
135
|
|
|
|
532
|
|
Other current
liabilities
|
|
2,150
|
|
|
|
1,732
|
|
Current liabilities of
discontinued operations
|
|
5,731
|
|
|
|
51,970
|
|
Total current
liabilities
|
|
86,123
|
|
|
|
116,292
|
|
Other
liabilities
|
|
2,159
|
|
|
|
1,946
|
|
Noncurrent liabilities
of discontinued operations
|
|
9,502
|
|
|
|
438
|
|
Total
liabilities
|
|
97,784
|
|
|
|
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
1,970 and 2,322 shares issued and outstanding at September 30,
2022 and December 31, 2021
|
|
16,743
|
|
|
|
19,743
|
|
Class A common
stock, $0.01 par value; authorized shares—35,000; 1,574 shares
issued and outstanding at September 30, 2022 and December 31,
2021
|
|
16
|
|
|
|
16
|
|
Class B common stock,
$0.01 par value; authorized shares—200,000; 27,003 and 26,620
shares issued and 24,313 and 24,615 shares outstanding at September
30, 2022 and December 31, 2021, respectively
|
|
270
|
|
|
|
266
|
|
Additional paid-in
capital
|
|
145,552
|
|
|
|
143,249
|
|
Treasury stock, at
cost, consisting of 2,690 and 2,005 shares of Class B common
stock at September 30, 2022 and December 31, 2021
|
|
(18,852)
|
|
|
|
(14,034)
|
|
Accumulated other
comprehensive (loss) income
|
|
(3,075)
|
|
|
|
3,160
|
|
Retained earnings
(accumulated deficit)
|
|
34,782
|
|
|
|
(29,115)
|
|
Total Genie Energy
Ltd. stockholders' equity
|
|
175,436
|
|
|
|
123,285
|
|
Noncontrolling interests
|
|
(13,364)
|
|
|
|
(12,496)
|
|
Total equity
|
|
162,072
|
|
|
|
110,789
|
|
Total liabilities and
equity
|
$
|
259,856
|
|
|
$
|
229,465
|
|
GENIE ENERGY
LTD. CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited)
|
|
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2022
|
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
(in thousands,
except per share data)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electricity
|
$
|
73,764
|
|
|
$
|
82,801
|
|
|
$
|
186,207
|
|
|
$
|
222,005
|
|
Natural gas
|
|
6,153
|
|
|
|
3,516
|
|
|
|
40,754
|
|
|
|
25,878
|
|
Other
|
|
1,368
|
|
|
|
1,338
|
|
|
|
7,189
|
|
|
|
6,177
|
|
Total
revenues
|
|
81,285
|
|
|
|
87,655
|
|
|
|
234,150
|
|
|
|
254,060
|
|
Cost of
revenues
|
|
38,142
|
|
|
|
53,049
|
|
|
|
114,082
|
|
|
|
186,152
|
|
Gross profit
|
|
43,143
|
|
|
|
34,606
|
|
|
|
120,068
|
|
|
|
67,908
|
|
Operating expenses and
losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative (i)
|
|
19,605
|
|
|
|
17,143
|
|
|
|
57,796
|
|
|
|
49,628
|
|
Income from
operations
|
|
23,538
|
|
|
|
17,463
|
|
|
|
62,272
|
|
|
|
18,280
|
|
Interest
income
|
|
194
|
|
|
|
8
|
|
|
|
259
|
|
|
|
28
|
|
Interest
expense
|
|
(33)
|
|
|
|
(99)
|
|
|
|
(135)
|
|
|
|
(311)
|
|
Unrealized gain (loss)
on marketable equity securities and investments
|
|
57
|
|
|
|
(5,312)
|
|
|
|
(742)
|
|
|
|
1,710
|
|
Gain on sale of
subsidiary
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,226
|
|
Other income (loss),
net
|
|
156
|
|
|
|
35
|
|
|
|
(712)
|
|
|
|
482
|
|
Income before income
taxes
|
|
23,912
|
|
|
|
12,095
|
|
|
|
60,942
|
|
|
|
24,415
|
|
Provision for income
taxes
|
|
(6,482)
|
|
|
|
(3,498)
|
|
|
|
(16,791)
|
|
|
|
(7,149)
|
|
Net income from
continuing operations
|
|
17,430
|
|
|
|
8,597
|
|
|
|
44,151
|
|
|
|
17,266
|
|
Loss
(income) from discontinued operations, net of taxes
|
|
(1,459)
|
|
|
|
(10,914)
|
|
|
|
25,929
|
|
|
|
(16,991)
|
|
Net income
(loss)
|
|
15,971
|
|
|
|
(2,317)
|
|
|
|
70,080
|
|
|
|
275
|
|
Net (loss) income
attributable to noncontrolling interests
|
|
(2,797)
|
|
|
|
(31)
|
|
|
|
(1,056)
|
|
|
|
(821)
|
|
Net income (loss)
attributable to Genie Energy Ltd.
|
|
18,768
|
|
|
|
(2,286)
|
|
|
|
71,136
|
|
|
|
1,096
|
|
Dividends on preferred
stock
|
|
(454)
|
|
|
|
(370)
|
|
|
|
(1,448)
|
|
|
|
(1,111)
|
|
Net income (loss)
attributable to Genie Energy Ltd. common stockholders
|
$
|
18,314
|
|
|
$
|
(2,656)
|
|
|
$
|
69,688
|
|
|
$
|
(15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to
Genie Energy Ltd. common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
$
|
22,259
|
|
|
$
|
8,643
|
|
|
$
|
48,368
|
|
|
$
|
17,303
|
|
(Loss)
income from discontinued operations
|
|
(3,945)
|
|
|
|
(11,299)
|
|
|
|
21,320
|
|
|
|
(17,318)
|
|
Net income (loss)
attributable to Genie Energy Ltd. common stockholders
|
$
|
18,314
|
|
|
$
|
(2,656)
|
|
|
$
|
69,688
|
|
|
|
(15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Genie Energy Ltd. common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
$
|
0.88
|
|
|
$
|
0.34
|
|
|
$
|
1.89
|
|
|
$
|
0.67
|
|
(Loss)
income from discontinued operations
|
|
(0.15)
|
|
|
|
(0.44)
|
|
|
|
0.83
|
|
|
|
(0.67)
|
|
Net
income (loss) attributable to Genie Energy Ltd. common
stockholders
|
$
|
0.73
|
|
|
$
|
(0.10)
|
|
|
$
|
2.72
|
|
|
$
|
(0.00)
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
$
|
0.85
|
|
|
$
|
0.34
|
|
|
$
|
1.84
|
|
|
$
|
0.67
|
|
(Loss)
income from discontinued operations
|
|
(0.15)
|
|
|
|
(0.44)
|
|
|
|
0.81
|
|
|
|
(0.67)
|
|
Net
income (loss) attributable to Genie Energy Ltd. common
stockholders
|
$
|
0.70
|
|
|
$
|
(0.10)
|
|
|
$
|
2.65
|
|
|
$
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares used in calculation of earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
25,233
|
|
|
|
25,514
|
|
|
|
25,623
|
|
|
|
25,867
|
|
Diluted
|
|
26,205
|
|
|
|
25,514
|
|
|
|
26,261
|
|
|
|
25,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
common share
|
$
|
0.075
|
|
|
$
|
0.225
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(i) Stock-based
compensation included in selling, general and administrative
expenses
|
$
|
713
|
|
|
$
|
504
|
|
|
$
|
2,232
|
|
|
$
|
1,597
|
|
GENIE ENERGY
LTD. CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited)
|
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
(in
thousands)
|
|
Operating
activities
|
|
|
|
|
|
|
Net income
|
|
$
|
70,080
|
|
|
$
|
275
|
|
Net income
(loss) from discontinued operations, net of tax
|
|
|
25,929
|
|
|
|
(16,991)
|
|
Net income from
continuing operations
|
|
|
44,151
|
|
|
|
17,266
|
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
288
|
|
|
|
343
|
|
Deferred income
taxes
|
|
|
—
|
|
|
|
2,880
|
|
Provision for doubtful
accounts receivable
|
|
|
2,116
|
|
|
|
1,372
|
|
Unrealized loss (gain)
marketable equity securities and investment
|
|
|
742
|
|
|
|
(1,710)
|
|
Stock-based
compensation
|
|
|
2,232
|
|
|
|
1,597
|
|
Equity in the net loss
(income) in equity method investees
|
|
|
91
|
|
|
|
(215)
|
|
Gain on sale of
subsidiaries
|
|
|
—
|
|
|
|
(4,226)
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
(4,331)
|
|
|
|
(12,427)
|
|
Inventory
|
|
|
(797)
|
|
|
|
(6,718)
|
|
Prepaid
expenses
|
|
|
(3,641)
|
|
|
|
(1,713)
|
|
Other current assets
and other assets
|
|
|
(6,084)
|
|
|
|
(8,829)
|
|
Trade accounts
payable, accrued expenses and other current liabilities
|
|
|
2,570
|
|
|
|
7,337
|
|
Due to IDT
Corporation
|
|
|
(398)
|
|
|
|
(148)
|
|
Income taxes
payable
|
|
|
8,009
|
|
|
|
4,263
|
|
Net cash provided by
(used in) operating activities of continuing operations
|
|
|
44,948
|
|
|
|
(928)
|
|
Net cash
used in discontinued operations
|
|
|
8,150
|
|
|
|
1,014
|
|
Net cash provided by
operating activities
|
|
|
53,098
|
|
|
|
86
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(1,058)
|
|
|
|
(158)
|
|
Proceeds from the sale
of subsidiary, net of cash disposed
|
|
|
—
|
|
|
|
4,550
|
|
Investment in notes
receivables with related party
|
|
|
(1,505)
|
|
|
|
—
|
|
Purchase of marketable
equity securities and other investments
|
|
|
(1,300)
|
|
|
|
(1,750)
|
|
Repayment of notes
receivable
|
|
|
19
|
|
|
|
14
|
|
Net cash (used in)
provided by investing activities of continuing
operations
|
|
|
(3,844)
|
|
|
|
2,656
|
|
Net cash
used in investing activities of discontinued operations
|
|
|
(43,941)
|
|
|
|
—
|
|
Net cash (used in)
provided by investing activities
|
|
|
(47,785)
|
|
|
|
2,656
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Dividends paid to
Class A and Class B common stock stockholders
|
|
|
(1,104)
|
|
|
|
—
|
|
Dividends paid to
preferred stock stockholders
|
|
|
(5,790)
|
|
|
|
(1,111)
|
|
Repurchases of Class B
common stock from employees
|
|
|
(409)
|
|
|
|
(236)
|
|
Repurchase of Class B
common stock
|
|
|
(4,414)
|
|
|
|
(3,847)
|
|
Redemption of
preferred stock
|
|
|
(3,000)
|
|
|
|
—
|
|
Net cash used in by
financing activities
|
|
|
(14,717)
|
|
|
|
(5,194)
|
|
Effect of exchange rate
changes on cash, cash equivalents, and restricted cash
|
|
|
(15)
|
|
|
|
(221)
|
|
Net decrease in cash,
cash equivalents, and restricted cash
|
|
|
(9,419)
|
|
|
|
(2,673)
|
|
Cash, cash equivalents,
and restricted cash at beginning of period
|
|
|
102,149
|
|
|
|
43,184
|
|
Cash, cash
equivalents and restricted cash (including discontinued operations)
at end of the period
|
|
|
92,730
|
|
|
|
40,511
|
|
Less: Cash of
discontinued operations at end of period
|
|
|
5,470
|
|
|
|
3,910
|
|
Cash, cash
equivalents, and restricted cash (excluding discontinued
operations) at end of period
|
|
$
|
87,260
|
|
|
$
|
36,601
|
|
Reconciliation of Non-GAAP Financial Measure for the Third
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 GRE. 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'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's
measure of segment-level Adjusted EBITDA starts with income (loss)
from operations and adds back depreciation, amortization, and
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's measurement of Adjusted EBITDA may not be
comparable to similarly titled measures reported by other
companies.
Management believes that Genie's measure of Adjusted EBITDA
provides 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,
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'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'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 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'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 GRE.
Non-GAAP
Reconciliation - Consolidated Adjusted EBITDA
|
|
|
1Q21
|
2Q21
|
3Q21
|
4Q21
|
1Q22
|
2Q22
|
3Q22
|
|
2020
|
2021
|
9 Mos
2022
|
Income (loss) from
Operations
|
($3.2)
|
$4.0
|
$17.5
|
$5.8
|
$27.0
|
$11.8
|
$23.5
|
|
$23.1
|
$24.1
|
$62.3
|
Add
back
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
$0.1
|
$0.1
|
$0.1
|
$0.1
|
$0.1
|
$0.1
|
$0.1
|
|
$1.1
|
$0.4
|
$0.3
|
Non-Cash
Compensation
|
$0.6
|
$0.5
|
$0.5
|
$1.2
|
$0.8
|
$0.7
|
$0.7
|
|
$1.0
|
$2.8
|
$2.2
|
Impairment
|
$0.0
|
$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)
|
$0.2
|
|
$0.1
|
$0.4
|
($0.1)
|
Adjusted
EBITDA
|
($2.4)
|
$4.7
|
$18.1
|
$7.3
|
$28.0
|
$12.2
|
$24.5
|
|
$26.6
|
$27.8
|
$64.7
|
|
Non-GAAP
Reconciliation - GRE
|
|
|
(in
millions)
|
1Q22
|
2Q22
|
3Q22
|
|
|
Income (loss) from
Operations
|
$30.2
|
$14.4
|
$27.4
|
|
|
Add
back
|
|
|
|
|
|
Depreciation and
Amortization
|
$0.1
|
$0.1
|
$0.1
|
|
|
Stock-based
Compensation
|
$0.2
|
$0.2
|
$0.2
|
|
|
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
|
$27.7
|
|
|
|
|
|
|
|
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SOURCE Genie Energy Ltd.