Stabilis Solutions, Inc., ("Stabilis") (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 first quarter ended March 31, 2021.

2021 Highlights

  • Achieved record revenue and LNG gallons delivered in the first quarter, surpassing the prior record by 28%
  • Net income and cash flow positive for the first quarter
  • Secured long-term sales contracts for up to 40% of its LNG production plant
  • Closed $10 million credit facility to fund working capital needs
  • Commenced trading on Nasdaq
  • Executed MOU with Port of Corpus Christi to develop LNG solutions

First Quarter Results 

For the first quarter ended March 31, 2021, Stabilis reported its highest ever quarterly revenue of $17.7 million, a 29% sequential increase from the quarter ended December 31, 2020 and a 28% increase from the first quarter of 2020, Stabilis’ previous record revenue quarter. The increase was largely driven by growth in remote power generation projects, continued expansion of the Company’s Mexico operations, and increased activity with aerospace customers.

"Stabilis is executing on its plan to deliver low cost and reliable energy transition fuels to its customers," said Jim Reddinger, President and Chief Executive Officer of Stabilis Solutions, Inc. "Our team’s outstanding performance has led us to new business opportunities in both LNG and hydrogen markets.  Looking into 2021 and beyond, we expect continued growth.”

Revenues from Stabilis' LNG segment totaled $16.1 million, a 33% sequential increase from the quarter ended December 31, 2020 and a 29% increase from the first quarter of 2020. The Company delivered 13.4 million gallons of LNG to customers during the quarter, a 29% sequential increase compared to the fourth quarter of 2020 and a 12% increase compared to the first quarter of 2020. Revenues from Stabilis’ power delivery segment decreased by 5% sequentially but increased 18% compared to the first quarter of 2020.

Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") improved to $2.7 million, or 15% of revenue during the first quarter, a 14% improvement over the fourth quarter of 2020 and a 78% improvement over the first quarter of 2020. There were no adjustments to EBITDA during the periods covered. Net income for the first quarter of 2021 rose to $0.2 million compared to net losses of ($0.1 million) in the fourth quarter of 2020 and ($1.1 million) during the first quarter of 2020.Cash and cash equivalents as of March 31, 2021 were $3.1 million as compared with $1.8 million, as of December 31, 2020.

As previously announced, the Company also secured a $10 million credit facility, commenced trading on the Nasdaq, and executed an MOU to develop marine bunkering solutions using LNG with the Port of Corpus Christi Authority.  In addition, the Company signed long-term customer contracts for up to 40% of the production at its LNG production plant.

Conference Call

Management will host a conference call on Thursday, May 6, 2021 at 10:00 a.m. eastern time (9:00 a.m. central).

Dial-in InformationUnited States & Canada: +1 877-545-0320; passcode 225377

International: +1 973-528-0016; passcode 225377Webcast: https://www.webcaster4.com/Webcast/Page/2256/40949

Replay InformationUnited States & Canada: +1 877-481-4010; passcode 40949

International:+1 919-882-2331; passcode 40949 A replay of the call will be available until May 13, 2021 on the Stabilis Investor Center (www.stabilis-solutions.com).

About Stabilis

Stabilis Solutions, Inc. is a vertically integrated energy transition company that provides clean energy solutions to our customers. Our solutions include small-scale liquefied natural gas (“LNG”) production, distribution and fueling services to multiple end markets in North America. Stabilis also provides hydrogen fueling services to its customers. Stabilis has safely delivered over 250 million gallons of LNG through more than 25,000 truck deliveries during its 16-year operating history in the LNG industry, which we believe makes us one of the largest and most experienced small-scale LNG providers in North America. Stabilis’ customers use LNG and hydrogen as fuel sources in a variety of applications in the industrial, energy, mining, utilities and pipelines, commercial, and high horsepower transportation markets. Stabilis’ customers use LNG and hydrogen as alternatives to traditional fuel sources, such as distillate fuel oil and propane, to lower fuel costs and reduce harmful environmental emissions. Stabilis’ customers also use LNG as a “virtual pipeline” solution when natural gas pipelines are not available or volumes are curtailed. 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 SubsidiariesCondensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data)

  Three Months EndedMarch 31,
  2021   2020
Revenue      
LNG product $ 11,695     $ 9,131  
Rental, service and other 4,425     3,397  
Power delivery 1,544     1,310  
Total revenues 17,664     13,838  
Operating expenses:      
Cost of LNG product 8,812     6,097  
Cost of rental, service and other 2,241     1,671  
Costs of power delivery 1,160     1,247  
Selling, general and administrative expenses 3,225     3,186  
Depreciation expense 2,225     2,270  
Total operating expenses 17,663     14,471  
Income (loss) from operations before equity income 1     (633 )
Net equity income (loss) from foreign joint ventures' operations:      
Income (loss) from equity investments in foreign joint ventures 421     (114 )
Foreign joint ventures' operations related expenses (67 )   (60 )
Net equity income (loss) from foreign joint ventures' operations 354     (174 )
Income (loss) from operations 355     (807 )
Other income (expense):      
Interest expense, net (17 )   (11 )
Interest expense, net - related parties (173 )   (240 )
Other income 90     38  
Gain from disposal of fixed assets     11  
Total other income (expense) (100 )   (202 )
Income (loss) before income tax expense 255     (1,009 )
Income tax expense 80     41  
Net income (loss) $ 175     $ (1,050 )
       
Common Stock Data:      
Net income (loss) per common share:      
Basic and diluted $ 0.01     $ (0.06 )
Weighted average number of common shares outstanding:      
Basic and diluted 16,896,626     16,819,681  
       
EBITDA $ 2,670     $ 1,512  
Adjusted EBITDA 2,670     1,512  
Revenues by Segment
(unaudited in thousands)
       
  Three Months EndedMarch 31,
  2021   2020
Revenue      
LNG $ 16,120     $ 12,528  
Power Delivery 1,544     1,310  
Total Revenue $ 17,664     $ 13,838  
Gallons Delivered
(unaudited in thousands)
       
  Three Months EndedMarch 31,
  2021   2020
Gallons Delivered      
George West 6,517     6,968  
3rd Party 6,891     4,979  
Total Gallons Delivered 13,408     11,947  

Stabilis Solutions, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited)(in thousands, except share and per share data)

  March 31, 2021   December 31, 2020
Assets      
Current assets:      
Cash and cash equivalents $ 3,062     $ 1,814  
Accounts receivable, net 6,327     5,620  
Inventories, net 158     226  
Prepaid expenses and other current assets 3,336     3,111  
Due from related parties 2     42  
Total current assets 12,885     10,813  
Property, plant and equipment:      
Cost 90,763     90,422  
Less accumulated depreciation (40,560 )   (38,384 )
Property, plant and equipment, net 50,203     52,038  
Right-of-use assets 678     786  
Goodwill 4,453     4,453  
Investments in foreign joint ventures 12,256     11,897  
Other noncurrent assets 320     326  
Total assets $ 80,795     $ 80,313  
Liabilities and Stockholders’ Equity      
Current liabilities:      
Current portion of long-term notes payable $ 641     $ 680  
Current portion of long-term notes payable - related parties 3,422     3,351  
Current portion of finance lease obligation 17      
Current portion of finance lease obligation - related parties     648  
Current portion of operating lease obligations 306     362  
Short-term notes payable 190     432  
Accrued liabilities 5,232     4,361  
Accounts payable 5,401     4,395  
Total current liabilities 15,209     14,229  
Long-term notes payable, net of current portion 667     682  
Long-term notes payable, net of current portion - related parties 2,093     2,726  
Finance lease obligations, net of current portion 75      
Long-term portion of operating lease obligations 436     490  
Deferred compensation 44     59  
Deferred income taxes 106     97  
Total liabilities 18,630     18,283  
Commitments and contingencies      
Stockholders’ Equity:      
Preferred Stock; $0.001 par value, 1,000,000 shares authorized, no shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively      
Stockholders’ equity:      
Common stock; $0.001 par value, 37,500,000 shares authorized, 16,896,626 and 16,896,626 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively 17     17  
Additional paid-in capital 91,440     91,278  
Accumulated other comprehensive income (loss) (80 )   122  
Accumulated deficit (29,212 )   (29,387 )
Total stockholders’ equity 62,165     62,030  
Total liabilities and stockholders’ equity $ 80,795     $ 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 EndedMarch 31,
  2021   2020
Net income (loss) $ 175     $ (1,050 )
Depreciation 2,225     2,270  
Net Interest Expense 190     251  
Income Tax Expense 80     41  
EBITDA 2,670     1,512  
Special Items      
Adjusted EBITDA $ 2,670     $ 1,512  

Investor Contact:Rich CockrellCG Capital877.889.1972slng@cg.capital

Andrew Puhala Chief Financial Officer832-456-6500ir@stabilis-solutions.com

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