NEWARK, N.J., March 12, 2020 /PRNewswire/ -- Genie Energy Ltd.
(NYSE: GNE, GNEPRA) reported fourth quarter 2019 break even net
income on revenue of $82.0 million
and full year 2019 net income of $0.10 per share on revenue of $315.3 million.
HIGHLIGHTS
(Throughout this release, 4Q19 results
are compared to 4Q18 results and full year 2019 results are
compared to full year 2018 unless otherwise noted)
- Global RCEs served increased 45.5% during 2019 to 374 thousand
at December 31, 2019. Global meters
served increased 53.9% to 497 thousand during the year.
- Consolidated revenue increased 30.6% in 4Q19 to $82.0 million from $62.8
million. Full year revenue increased 12.5% to
$315.3 million from $280.3 million.
- Results from Orbit Energy, Genie's retail energy provider JV in
the UK, are not consolidated. Orbit Energy revenue was
$30.8 million in 2019 and
$2.5 million in 2018. Genie pro forma
consolidated revenue inclusive of Orbit was $346.1 million in 2019 and $282.8 million in 2018.*
- Consolidated income from operations increased to $2.3 million in 4Q19 from a loss from operations
of $0.5 million. Full year 2019
income from operations was $9.8
million compared to $12.0
million.
- Consolidated Adjusted EBITDA* increased to $0.8 million in 4Q19 from $(0.6) million. Full year 2019 Adjusted EBITDA
was $10.1 million compared to
$17.9 million.
- At Genie Retail Energy (GRE), income from operations increased
to $8.2 million in 4Q19 from
$3.4 million. Full year 2019 income
from operations was $27.2 million
compared to $29.0 million.
- During the fourth quarter, Genie repurchased 261,722 shares of
Class B common stock bringing the full year 2019 purchases to
731,869 shares, approximately 2.7% of all common shares
outstanding, for $5.6 million.
- Through stock repurchases and dividends paid on both its common
and preferred stock, Genie returned $15.2
million to investors in 2019.
- Genie's Board of Directors has declared a fourth quarter 2019
dividend of $0.075 per share.
COMMENTS OF MICHAEL STEIN, CEO
"Genie Energy capped a
productive 2019 with strong fourth quarter operational and
financial results. We grew our international retail energy business
in each of our three international markets – the U.K Japan, and Finland – and expect to launch an additional
Scandinavian market in 2020. Our domestic retail energy
business expanded into the Texas
market and generated $8.5 million in
Adjusted EBITDA in the fourth quarter and $28.3 million in the full year.
"Our financial and operational results and positive outlook
allowed us to continue our stock repurchase program in the fourth
quarter. For the full year, we bought back 2.7% of our common
stock for $5.6 million, while
returning $9.6 million in dividends
to our common and preferred shareholders.
"Looking ahead, we will continue our strategic focus on growth
and profitability within our retail energy supply business –growing
our customer base organically in our current markets, and prudently
expanding into new territories and markets in 2020."
CONSOLIDATED
RESULTS
|
$ in millions,
except EPS
|
4Q19
|
3Q19
|
4Q18
|
|
2019
|
2018
|
Revenue
|
$82.0
|
$85.7
|
$62.8
|
|
$315.3
|
$280.3
|
Gross
profit
|
$22.0
|
$26.4
|
$14.7
|
|
$82.9
|
$76.5
|
Gross margin
percentage
|
26.8%
|
30.7%
|
23.5%
|
|
26.3%
|
27.3%
|
SG&A
expense
|
$19.2
|
$19.4
|
$15.2
|
|
$72.5
|
$61.5
|
Stock-based compensation included in SG&A
|
-
|
$0.3
|
$0.8
|
|
$1.1
|
$4.5
|
Depreciation and amortization
|
$0.8
|
$0.9
|
$0.4
|
|
$3.6
|
$2.1
|
Impairment of
assets
|
$0.4
|
-
|
-
|
|
$0.4
|
$2.7
|
Income (loss) from
operations
|
$2.3
|
$6.9
|
$(0.5)
|
|
$9.8
|
$12.0
|
Adjusted
EBITDA*
|
$0.8
|
$8.0
|
$(0.6)
|
|
$10.1
|
$17.9
|
Equity in the net
loss in equity method investees**
|
$(2.7)
|
$(0.2)
|
$(1.3)
|
|
$(4.8)
|
$(3.4)
|
(Provision for)
benefit from income taxes
|
$(1.5)
|
$(1.9)
|
$14.1
|
|
$4.6
|
$12.4
|
Net income
attributable to Genie Energy common stockholders
|
-
|
$4.9
|
$12.3
|
|
$2.7
|
$21.3
|
Earnings per diluted
share attributable to Genie Energy common stockholders
|
-
|
$0.18
|
$0.47
|
|
$0.10
|
$0.83
|
Net cash provided by
(used in) operating activities
|
$0.2
|
$12.1
|
$(0.9)
|
|
$15.8
|
$19.4
|
* Pro forma
results and Adjusted EBITDA for all periods presented are non-GAAP
measures 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 pro forma results and Adjusted EBITDA as well as to
reconciliations to the respective most directly comparable GAAP
measures.
** Genie Energy
accounts for its investments in Orbit Energy, its joint venture
operating in the U.K., and Atid, a drilling contractor based in
Israel in which it holds a minority stake, under the equity method
of accounting. Under this method, Genie Energy records its share in
the net income or loss of the venture. Therefore, revenue
generated, and expenses incurred are not reflected in Genie
Energy's consolidated revenue and expenses, but Orbit Energy's
customers are included in metrics regarding our customer
base.
|
GLOBAL
METERS AND RCEs
Genie Energy's global
customer base increased sequentially and year-over-year driven by
investment in customer acquisition domestically and in overseas
markets. Genie Energy's global RCE and meter totals are
provided in the chart below.
|
Global RCEs and
Meters (in thousands)*
|
December 31,
2019
|
September 30,
2019
|
June 30,
2019
|
March 31,
2019
|
December 31,
2018
|
Electricity
RCEs
|
297
|
309
|
291
|
272
|
197
|
Natural gas
RCEs
|
77
|
75
|
66
|
61
|
60
|
Total
RCEs
|
374
|
384
|
357
|
333
|
257
|
|
|
|
|
|
|
Electricity
meters
|
390
|
392
|
361
|
322
|
249
|
Natural gas
meters
|
107
|
100
|
87
|
77
|
74
|
Total
meters
|
497
|
492
|
448
|
399
|
323
|
*Includes RCEs and
meters acquired and served by Genie Energy's domestic and
international retail energy provider businesses including
operations in Finland and Japan and at Genie's joint venture in the
U.K. (although U.K. operations are not included in our consolidated
results of operations).
|
SEGMENT
RESULTS
Genie Retail
Energy (GRE)
GRE's financial
results are summarized in the chart below:
|
Genie Retail
Energy
$ in
millions
|
4Q19
|
3Q19
|
4Q18
|
|
2019
|
2018
|
Total
revenue
|
$74.0
|
$81.7
|
$58.8
|
|
$286.6
|
$274.4
|
Electricity revenue
|
$61.2
|
$78.5
|
$46.7
|
|
$246.7
|
$227.9
|
Natural
gas revenue
|
$12.9
|
$3.2
|
$12.1
|
|
$39.9
|
$46.6
|
Gross
profit
|
$22.0
|
$25.7
|
$14.5
|
|
$80.6
|
$75.4
|
Gross margin
percentage
|
29.7%
|
31.5%
|
24.7%
|
|
28.1%
|
27.4%
|
SG&A
expense
|
$13.8
|
$14.8
|
$11.2
|
|
$53.4
|
$46.4
|
Depreciation and amortization
|
$0.2
|
$0.2
|
$0.2
|
|
$0.7
|
$1.5
|
Income from
operations
|
$8.2
|
$10.9
|
$3.4
|
|
$27.2
|
$29.0
|
Adjusted
EBITDA*
|
$8.5
|
$11.2
|
$3.8
|
|
$28.3
|
$31.1
|
GRE – KPIs and Take-Aways:
- Customers served at December 31st
totaled 309 thousand RCEs and 370 thousand meters. The RCE
and meter counts increased from 253 thousand RCEs and 315 thousand
meters at December 31, 2108, and
decreased from 329 thousand RCEs and 389 thousand meters at
September 30, 2019. The year over
year increases reflect sustained investment in new customer
acquisitions during the year. The fourth quarter decreases
compared to the prior quarter largely reflects seasonal factors
that typically inhibit customer acquisition during the fourth
quarter.
- Gross meters added during 4Q19 totaled 56,000 compared to
76,000 in 3Q19 and 45,000 in 4Q18. Gross meter acquisitions in 2019
increased to 308,000 from 197,000 in 2018 including the impact of a
municipal aggregation deal which added approximately 35,000
meters.
- Average monthly churn was 6.1% - a decrease from 7.1% in 4Q18
and an increase from 5.3% in 3Q19. For the full year 2019, average
monthly churn decreased to 5.3% from 6.5% in 2018;
- Electricity revenue in 4Q19 increased to $61.2 million from $46.7
million in the year ago period reflecting the increase in
meters and RCEs served as well as increases in consumption per
meter and revenue per kilowatt hour sold. Full year 2019
electricity revenue increased to $246.7
million from $227.9 million
driven primarily by higher meter counts and increased consumption
per meter.
- SG&A expense in 4Q19 increased to $13.8 million from $11.2
million. Full year 2019 SG&A expense increased to
$53.4 million from $46.4 million. The quarterly and annual
increases resulted primarily from increased investment in new
customer acquisitions and, to a lesser extent, the reversal of an
accrual related to legal expenses in the fourth quarter of
2018.
- Income from operations in 4Q19 increased to $8.2 million from $3.4
million driven by increased electricity consumption and a
decrease in the commodity cost of electricity. Full year
income from operations decreased to $27.1
million from $29.0 million as
the increase in gross profit generated primarily by higher per
meter electricity consumption was more than offset by increased
customer acquisition expense.
Genie Retail
Energy International (GRE International)
Genie Energy
accounts for its investments in Orbit Energy, its joint venture
operating in the U.K., under the equity method of accounting.
Revenue generated, and expenses incurred are not reflected in
segment revenue and operating expenses. RCE and meter counts do,
however, include Orbit Energy customers.
|
Genie Retail
Energy International
$ in
millions
|
4Q19
|
3Q19
|
4Q18
|
|
2019
|
2018
|
Total
revenue
|
$5.8
|
$3.0
|
$-
|
|
$16.6
|
$--
|
Gross
profit
|
$(0.3)
|
$0.4
|
$(0.1)
|
|
$0.3
|
$(0.1)
|
Gross margin
percentage
|
(5.0)%
|
13.0%
|
-
|
|
2.0%
|
--
|
SG&A
expense
|
$2.9
|
$2.0
|
$0.7
|
|
$8.5
|
$1.1
|
Loss from
operations
|
$(3.2)
|
$(1.6)
|
$(0.7)
|
|
$(8.1)
|
$(1.2)
|
Adjusted
EBITDA*
|
$(5.6)
|
$(1.0)
|
$(1.7)
|
|
$(10.7)
|
$(4.2)
|
Equity in the net
loss in Orbit Energy
|
$2.5
|
-
|
$1.0
|
|
$4.4
|
$3.0
|
- Customers served at December 31st
increased to 65,000 RCEs and 127,000 meters compared to 55,000 RCEs
and 103,000 meters at September 30th
and 4,000 RCEs and 8,000 meters at December
31, 2018.
- GRE International's revenue increased to $5.8 million compared to nil in 4Q18 reflecting
the impact of the Lumo Energia acquisition in 1Q19 and initial
revenue contribution from Genie Japan. Full year 2019 revenue
was $16.6 million compared to nil a
year earlier.
- On a pro forma basis*, inclusive of Orbit Energy revenue, GRE
International's revenue increased to $47.4
million in 2019 from $2.5
million in 2018.
- In 4Q19, equity in the net loss of Orbit Energy increased to
$2.5 million from $1.0 million, primarily reflecting the timing of
capital contributions to Orbit Energy. For the full year, GRE's
equity in the loss increased to $4.4
million from $3.0 million as
Orbit Energy accelerated its meter acquisition program.
- Loss from operations increased to $3.2
million in 4Q19 from $0.7
million reflecting the timing of capital contributions noted
above, the impact from the acquisition of Lumo Energia and launch
of Genie Japan earlier in the year. The full year 2019 loss from
operations increased to $8.1 million
from a loss from operations of $1.2
million. The increases reflect the acquisition of Lumo
Energia, launch of Genie Japan and expansion of their respective
customer acquisition programs during 2019.
- On a pro forma basis*, inclusive of Orbit Energy's loss from
operations of, GRE International's loss from operations was
$17.4 million in 2019 compared to
$5.7 million in 2018.
Genie Energy Services (GES)
- GES comprises Diversegy, a commercial energy consulting
business, Genie's interest in Prism Solar, a supplier of solar
panels and solutions, and Genie Solar Energy.
- Revenue in 4Q19 decreased to $2.1
million from $4.0 million due
to the timing of orders and deliveries within the Prism Solar
business. Full year 2019 revenue increased to $12.1 million from $5.7
million reflecting the acquisition of Prism Solar in
4Q18;
- GES' loss from operations in 4Q19 increased to $1.2 million from $0.6
million. The loss from operations for the full year
2019 increased to $2.9 million from
$1.0 million in 2018.
Genie Oil and Gas (GOGAS)
- Operations at Genie Energy's Afek oil and gas exploration
subsidiary remain suspended pending final testing on an existing
well, which is expected to take place in the first half of
2020;
- GOGAS' loss from operations in 4Q19 was $0.4 million compared to a loss of $1.1 million. The full year 2019 loss from
operations totaled $1.3 million
compared to $7.0 million in 2018. The
quarterly and full year decreases reflect the suspension of Afek's
exploration program.
Corporate
- Corporate loss from operations decreased to $1.3 million in 4Q19 from $1.7 million in 4Q18. The full year 2019
loss from operations decreased to $5.4
million from $8.3
million. The corporate spend dropped on a decline in
stock-based compensation, which decreased to $0.1 million dollars in 4Q19 from $0.6 million in the year ago quarter. For
the full year 2019, stock-based compensation decreased to
$0.6 million from $4.0 million.
BALANCE SHEET AND CASH FLOW HIGHLIGHTS
At
December 31, 2019, Genie Energy had
$156.2 million in total assets,
including $38.6 million in cash, cash
equivalents and restricted cash. Liabilities totaled
$75.3 million and working capital
(current assets less current liabilities) totaled $40.8 million.
Cash used in operating activities in 4Q19 decreased to
$0.2 million compared to cash used in
operating activities of $0.9 million
in 4Q18. For the full year 2019, cash provided by operating
activities was $15.8 million compared
to $19.4 million in 2018.
DIVIDEND ON GENIE ENERGY COMMON STOCK
Genie Energy's
Board of Directors has declared a 4Q19 dividend of $0.075 per share of Class A and Class B common
stock with a record date of March 24,
2020. The dividend will be paid on or about April 3, 2020. The distribution will be
treated as an ordinary dividend for income tax purposes.
GENIE ENERGY EARNINGS CONFERENCE CALL
This earnings press release is available for download in the
"Investors" section of the Genie Energy website
(https://genie.com/investors/investor-relations/) and has been
filed on a current report (Form 8-K) with the SEC.
At 8:30 AM Eastern time today,
March 12, 2020, 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 toll-free
1-888-348-6472 (from the US) or 1-412-902-4240 (international) and
request the Genie Energy conference call.
The call replay will be available at 1-844-512-2921 (US
toll-free) or 1-412-317-6671 (international) through March 19, 2020. The replay PIN is
10138657. A recording of the call - in MP3 format - will also
be available for playback on the "Investors" section of the Genie
Energy website.
Investors can sign up through the Genie Energy website to have
earnings releases and other press releases e-mailed directly to
them.
ABOUT GENIE ENERGY LTD.
Genie Energy Ltd. (NYSE: GNE,
GNEPRA), is a global 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 Europe and
Asia. The Genie Energy Services division includes Diversegy, a
commercial and industrial brokerage and consultative services
company, and Genie Solar Energy and Prism Solar, which design,
supply and install commercial solar 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 SHEET (in thousands, except per
share amounts)
|
|
|
December
31
|
|
(in thousands,
except per share amounts)
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
31,242
|
|
|
$
|
41,601
|
|
Restricted
cash—short-term
|
|
|
6,792
|
|
|
|
1,653
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $2,631 and
$2,003 at December 31, 2019 and 2018, respectively
|
|
|
49,822
|
|
|
|
35,920
|
|
Inventory
|
|
|
16,632
|
|
|
|
9,893
|
|
Prepaid
expenses
|
|
|
6,318
|
|
|
|
6,167
|
|
Other current
assets
|
|
|
2,133
|
|
|
|
2,670
|
|
TOTAL CURRENT
ASSETS
|
|
|
112,939
|
|
|
|
97,904
|
|
Property and
equipment, net
|
|
|
3,607
|
|
|
|
4,301
|
|
Goodwill
|
|
|
12,135
|
|
|
|
11,082
|
|
Other intangibles,
net
|
|
|
6,837
|
|
|
|
6,321
|
|
Investment in equity
method investees
|
|
|
675
|
|
|
|
2,208
|
|
Restricted cash –
long-term
|
|
|
520
|
|
|
|
943
|
|
Deferred income tax
assets, net
|
|
|
12,154
|
|
|
|
15,625
|
|
Other
assets
|
|
|
7,377
|
|
|
|
8,480
|
|
TOTAL
ASSETS
|
|
$
|
156,244
|
|
|
$
|
146,864
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Loan
payable
|
|
$
|
921
|
|
|
$
|
—
|
|
Current portion of
notes payable
|
|
|
116
|
|
|
|
923
|
|
Trade accounts
payable
|
|
|
24,387
|
|
|
|
18,508
|
|
Accrued
expenses
|
|
|
26,116
|
|
|
|
25,242
|
|
Contract
liability
|
|
|
13,426
|
|
|
|
1,137
|
|
Income taxes
payable
|
|
|
1,591
|
|
|
|
1,463
|
|
Due to IDT
Corporation
|
|
|
381
|
|
|
|
234
|
|
Short-term revolving
line of credit
|
|
|
2,514
|
|
|
|
—
|
|
Other current
liabilities
|
|
|
2,704
|
|
|
|
3,279
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
72,156
|
|
|
|
50,786
|
|
Long-term notes
payable
|
|
|
777
|
|
|
|
—
|
|
Long -term revolving
line of credit
|
|
|
—
|
|
|
|
2,516
|
|
Other
liabilities
|
|
|
2,381
|
|
|
|
900
|
|
TOTAL
LIABILITIES
|
|
|
75,314
|
|
|
|
54,202
|
|
Commitments and
contingencies (Note 15 and Note 16)
|
|
|
|
|
|
|
|
|
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 December 31, 2019 and
2018
|
|
|
19,743
|
|
|
|
19,743
|
|
Class A common stock,
$0.01 par value; authorized shares – 35,000; 1,574 shares issued
and outstanding at December 31, 2019 and 2018
|
|
|
16
|
|
|
|
16
|
|
Class B common stock,
$0.01 par value; authorized shares – 200,000; 25,785 and 25,544
shares issued and 24,755 and 25,294 shares outstanding at December
31, 2019 and 2018, respectively
|
|
|
258
|
|
|
|
255
|
|
Additional paid-in
capital
|
|
|
139,615
|
|
|
|
136,629
|
|
Treasury stock, at
cost, consisting of 1,030 and 250 shares of Class B common at
December 31, 2019 and 2018, respectively
|
|
|
(7,675)
|
|
|
|
(1,624)
|
|
Accumulated other
comprehensive income
|
|
|
2,519
|
|
|
|
2,591
|
|
Accumulated deficit
|
|
|
(59,671)
|
|
|
|
(53,939)
|
|
Total Genie Energy
Ltd. stockholders' equity
|
|
|
94,805
|
|
|
|
103,671
|
|
Noncontrolling
interests:
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
|
(13,875)
|
|
|
|
(11,009)
|
|
TOTAL EQUITY
|
|
|
80,930
|
|
|
|
92,662
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
156,244
|
|
|
$
|
146,864
|
|
GENIE ENERGY
LTD.
CONSOLIDATED
STATEMENT OF OPERATIONS
|
|
|
Year ended
December 31,
|
(in thousands,
except per share data)
|
|
2019
|
|
|
2018
|
|
REVENUES:
|
|
|
|
|
|
|
Electricity
|
|
$
|
263,091
|
|
|
$
|
227,883
|
|
Natural gas
|
|
|
39,926
|
|
|
|
46,560
|
|
Other
|
|
|
12,274
|
|
|
|
5,866
|
|
Total revenues
|
|
|
315,291
|
|
|
|
280,309
|
|
Cost of revenues
|
|
|
232,392
|
|
|
|
203,762
|
|
GROSS PROFIT
|
|
|
82,899
|
|
|
|
76,547
|
|
OPERATING EXPENSES
AND LOSSES:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
72,467
|
|
|
|
61,544
|
|
Exploration
|
|
|
—
|
|
|
|
244
|
|
Research and
development expense
|
|
|
207
|
|
|
|
39
|
|
Impairment of
assets
|
|
|
400
|
|
|
|
2,742
|
|
Income from
operations
|
|
|
9,825
|
|
|
|
11,978
|
|
Interest income
|
|
|
448
|
|
|
|
557
|
|
Interest
expense
|
|
|
(530)
|
|
|
|
(401)
|
|
Equity in the net
loss in equity method investees
|
|
|
(4,830)
|
|
|
|
(3,430)
|
|
Gain
on extinguishment of liability
|
|
|
—
|
|
|
|
164
|
|
Other income, net
|
|
|
1,066
|
|
|
|
156
|
|
Income before income
taxes
|
|
|
5,979
|
|
|
|
9,024
|
|
(Provision for)
benefit from income taxes
|
|
|
(4,600)
|
|
|
|
12,376
|
|
NET INCOME
|
|
|
1,379
|
|
|
|
21,400
|
|
Net loss attributable
to noncontrolling interests
|
|
|
2,796
|
|
|
|
1,385
|
|
NET INCOME
ATTRIBUTABLE TO GENIE ENERGY LTD.
|
|
|
4,175
|
|
|
|
22,785
|
|
Dividends on
preferred stock
|
|
|
(1,481)
|
|
|
|
(1,481)
|
|
NET INCOME
ATTRIBUTABLE TO GENIE ENERGY LTD. COMMON STOCKHOLDERS
|
|
$
|
2,694
|
|
|
$
|
21,304
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributed to Genie Energy Ltd. common stockholder
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.10
|
|
|
$
|
0.85
|
|
Diluted
|
|
$
|
0.10
|
|
|
$
|
0.83
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares used in calculation of earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
|
26,607
|
|
|
|
25,154
|
|
Diluted
|
|
|
27,464
|
|
|
|
25,695
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.30
|
|
|
$
|
0.30
|
|
(i) Stock-based
compensation included in selling, general and administrative
expenses
|
|
$
|
1,102
|
|
|
$
|
4,523
|
|
GENIE ENERGY
LTD.
CONSOLIDATED
STATEMENT OF CASH FLOWS
|
|
|
Year ended
December 31,
|
(in
thousands)
|
|
2019
|
|
|
2018
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
Net
income
|
|
$
|
1,379
|
|
|
$
|
21,400
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
3,627
|
|
|
|
2,062
|
|
Deferred income taxes
|
|
|
3,471
|
|
|
|
(13,483)
|
|
Provision for
doubtful accounts receivable
|
|
|
658
|
|
|
|
904
|
|
Stock-based
compensation
|
|
|
1,102
|
|
|
|
4,523
|
|
Gain on sale disposal
of property and equipment
|
|
|
—
|
|
|
|
(18)
|
|
Gain on
extinguishment of liability
|
|
|
—
|
|
|
|
(164)
|
|
Impairment of
goodwill
|
|
|
400
|
|
|
|
—
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
2,742
|
|
Equity in the net
loss of equity method investees
|
|
|
4,830
|
|
|
|
3,430
|
|
Change in assets and
liabilities, net of effect of acquisition:
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
(12,041)
|
|
|
|
7,817
|
|
Inventory
|
|
|
(6,739)
|
|
|
|
(4,764)
|
|
Prepaid expenses
|
|
|
(124)
|
|
|
|
219
|
|
Other current assets
and other assets
|
|
|
1,137
|
|
|
|
2,726
|
|
Trade accounts
payable, accrued expenses and other current liabilities
|
|
|
5,506
|
|
|
|
(7,846)
|
|
Contract
liability
|
|
|
12,271
|
|
|
|
547
|
|
Due to IDT
Corporation
|
|
|
147
|
|
|
|
20
|
|
Income taxes payable
|
|
|
128
|
|
|
|
(741)
|
|
Net cash provided by
operating activities
|
|
|
15,752
|
|
|
|
19,374
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(404)
|
|
|
|
(584)
|
|
Investments in notes receivable
|
|
|
(214)
|
|
|
|
—
|
|
Proceeds from disposal of property
|
|
|
—
|
|
|
|
62
|
|
Payment
for acquisition of license in Japan
|
|
|
—
|
|
|
|
(745)
|
|
Cash
transferred to Atid 613
|
|
|
—
|
|
|
|
(209)
|
|
Payment
for acquisition, net of cash acquired
|
|
|
(2.044)
|
|
|
|
(250)
|
|
Repayment of notes receivable
|
|
|
124
|
|
|
|
94
|
|
Investments in equity method investees
|
|
|
(3,235)
|
|
|
|
(1,306)
|
|
Net cash used in
investing activities
|
|
|
(5,773)
|
|
|
|
(2,938)
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
(9,595)
|
|
|
|
(9,256)
|
|
Purchases of Class B common stock
|
|
|
(5,584)
|
|
|
|
—
|
|
Repayment of short-term debt—Lumo Energia
|
|
|
(2,260)
|
|
|
|
—
|
|
Repayment of notes payable
|
|
|
(45)
|
|
|
|
(10)
|
|
Proceeds from exercise of stock options
|
|
|
1,407
|
|
|
|
—
|
|
Proceeds from sales of Class B common stock and warrants
|
|
|
—
|
|
|
|
6,000
|
|
Proceeds from loan
|
|
|
921
|
|
|
|
—
|
|
Repurchases of Class B common stock from employees
|
|
|
(467)
|
|
|
|
(889)
|
|
Net cash used in
financing activities
|
|
|
(15,623)
|
|
|
|
(4,155)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
1
|
|
|
|
(11)
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
|
(5,643)
|
|
|
|
12,270
|
|
Cash and cash
equivalents at beginning of year
|
|
|
44,197
|
|
|
|
31,927
|
|
Cash and cash
equivalents at end of year
|
|
$
|
38,554
|
|
|
$
|
44,197
|
|
Reconciliation of Non-GAAP Financial Measures for the Fourth
Quarter and Full Years 2019 and 2018
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 also disclosed for the fourth quarter and full
years 2019 and 2018, as well as for comparable periods, pro forma results and Adjusted EBITDA, which
are non-GAAP measures. 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 pro forma results consist of the
corresponding GAAP metric with the addition of the corresponding
results for Orbit Energy, the company's joint venture operating in
the United Kingdom. GAAP results
for Orbit Energy are accounted for under the equity method of
accounting. Under this method, Genie Energy records its share in
the net income or loss of the venture. Therefore, revenue
generated, expenses incurred and income from operations are not
reflected in Genie Energy's consolidated revenue and expenses.
However, Orbit Energy's customers are included in metrics regarding
our customer base. Pro forma results are calculated by adding
the result for Orbit Energy to its corresponding GAAP result.
Pro forma results are provided for the full years 2019 and
2018 to supplement the following results: consolidated revenue;
revenue of the Genie Retail Energy International segment; and loss
from operations for the Genie Retail Energy International
segment.
Genie Energy's measure of Adjusted EBITDA consists of gross
profit less selling, general and administrative expense,
exploration expense and equity in the net loss of in equity method
investees, net, plus depreciation, amortization and stock-based
compensation (which are included in selling, general and
administrative expense). Another way of calculating Adjusted EBITDA
is to start with income from operations and add depreciation,
amortization, stock-based compensation and impairment of goodwill
and subtract equity in net loss in equity method investees,
net.
Management believes that Genie Energy's pro forma results and
Adjusted EBITDA provide useful information to both management and
investors by excluding certain expenses that may not be indicative
of Genie Energy's or the relevant segment's core operating results.
Management uses the pro forma results and Adjusted EBITDA, among
other measures, as relevant indicators of core operational
strengths in its financial and operational decision making. In
addition, management uses and Adjusted EBITDA to evaluate operating
performance in relation to Genie Energy's competitors. Disclosure
of this 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.
The pro forma results facilitates evaluation of the results of
all of the company's retail energy provider (REP) businesses as if
they were fully consolidated, which provides useful information
regarding the size, growth and financial performance of all of the
company's REP businesses, In contrast, GAAP results only include
the company's equity in the results of the operations of its U.K.
venture.
Management refers to pro forma results and Adjusted EBITDA, as
well as the GAAP measures revenue, gross profit, income (loss) from
operations and net income (loss), on a segment and/or consolidated
level to facilitate internal and external comparisons to the
segments' and 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. While Genie Energy's oil and gas exploration business
may be capital intensive, Genie Energy does not expect to incur
significant depreciation or depletion expense for the foreseeable
future. Genie Energy's operating results exclusive of depreciation
and amortization is therefore a useful indicator 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.
Pro forma revenue and pro forma income from operations as well
as 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 measurements of pro forma revenue, pro
forma income from operations and Adjusted EBITDA may not be
comparable to similarly titled measures reported by other
companies.
Following is the reconciliation of pro forma results and
Adjusted EBITDA to their most directly comparable GAAP
measure. Pro forma consolidated revenue is reconciled to
consolidated revenue, pro forma revenue for the Genie Retail Energy
International segment is reconciled to the segment's revenue, and
Genie Retail Energy International's loss from operations is
reconciled to the segment's loss from operation. Adjusted
EBITDA is reconciled to income from operations for Genie Energy's
reportable segments and net income for Genie Energy on a
consolidated basis.
Reconciliations of
Pro Forma Consolidated Revenue and Pro Forma Genie
Retail
Energy
International Segment Revenue and Loss from Operations to
Corresponding GAAP Results
|
|
|
|
|
|
Full Year
2019
|
Full Year
2018
|
|
|
|
(results in
millions)
|
|
|
|
|
Consolidated
Results
|
|
|
|
|
|
|
Consolidated
revenue
|
|
$
315.3
|
$
280.3
|
|
|
|
plus
|
Orbit Energy
revenue
|
|
$
30.8
|
$
2.5
|
|
|
|
Pro forma
consolidated revenue
|
|
$
346.1
|
$
282.8
|
|
|
|
|
|
|
|
|
|
|
Genie Retail
Energy International (GREI) Segment Results
|
|
|
|
|
GREI segment
revenue
|
|
$
16.6
|
-
|
|
|
|
plus
|
Orbit Energy
revenue
|
|
$
30.8
|
$
2.5
|
|
|
|
Pro forma GREI
segment revenue
|
|
$
47.4
|
$
2.5
|
|
|
|
|
|
|
|
|
|
|
|
GREI segment loss
from operations
|
|
$
(8.1)
|
$
(1.2)
|
|
|
|
plus
|
Orbit Energy loss
from operations
|
|
$
(9.2)
|
$
(4.5)
|
|
|
|
Pro forma GREI
segment loss from operations
|
|
$
(17.4)
|
$
(5.7)
|
|
|
|
|
|
|
|
|
|
Reconciliations of Adjusted EBITDA to GAAP Income from
Operations and GAAP Net Income
Three months ended
December 31, 2019 (4Q19)
|
Total
|
|
GRE
|
GES
|
GRE
International
|
GOGAS
|
Corporate
|
|
|
|
|
|
|
|
|
Net income
attributable to Genie Energy Limited
|
$ 324
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
1312
|
|
|
|
|
|
|
Net income
|
$ (988)
|
|
|
|
|
|
|
Provision for income
taxes
|
1,458
|
|
|
|
|
|
|
Other income,
net
|
(919)
|
|
|
|
|
|
|
Interest
expense
|
150
|
|
|
|
|
|
|
Interest
income
|
(102)
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
$ 2,724
|
|
|
|
|
|
|
Income from
operations
|
$ 2,323
|
|
$ 8,235
|
$ (1,183)
|
$ (3,222)
|
$ (200)
|
$ (1,307)
|
Add:
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
(4)
|
|
117
|
|
(226)
|
|
106
|
|
Depreciation and
amortization
|
821
|
|
175
|
244
|
387
|
15
|
|
|
Impairment
|
400
|
|
|
400
|
|
|
|
Subtract:
|
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
2724
|
|
|
|
2,501
|
213
|
10
|
Adjusted
EBITDA
|
$ 816
|
|
$ 8,527
|
$ (539)
|
$(5,562)
|
$(398)
|
$
(1,211)
|
Three months ended
September 30, 2019 (3Q19)
|
Total
|
|
GRE
|
GES
|
GRE
International
|
GOGAS
|
Corporate
|
|
|
|
|
|
|
|
|
Net income
attributable to Genie Energy Limited
|
$ 5,247
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
539
|
|
|
|
|
|
|
Net income
|
$ 4,708
|
|
|
|
|
|
|
Provision for income
taxes
|
1,916
|
|
|
|
|
|
|
Other income,
net
|
85
|
|
|
|
|
|
|
Interest
expense
|
161
|
|
|
|
|
|
|
Interest
income
|
(163)
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
$ 238
|
|
|
|
|
|
|
Income from
operations
|
$ 6,945
|
|
$ 10,856
|
$(798)
|
$ (1,560)
|
$ (283)
|
$(1,270)
|
Add:
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
335
|
|
116
|
|
94
|
|
125
|
|
Depreciation and
amortization
|
933
|
|
187
|
243
|
488
|
15
|
|
Subtract:
|
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
238
|
|
|
|
|
148
|
90
|
Adjusted
EBITDA
|
$ 7,975
|
|
$ 11,159
|
$ (555)
|
$ (978)
|
$ (416)
|
$ (1,235)
|
Three months ended
December 31, 2018 (4Q18)
|
Total
|
|
GRE
|
GES
|
GRE
International
|
GOGAS
|
Corporate
|
|
|
|
|
|
|
|
|
Net income
attributable to Genie Energy Limited
|
$ 12,632
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
264
|
|
|
|
|
|
|
Net income
|
$ 12,368
|
|
|
|
|
|
|
Provision for income
taxes
|
14,109
|
|
|
|
|
|
|
Other income,
net
|
32
|
|
|
|
|
|
|
Interest
expense
|
(140)
|
|
|
|
|
|
|
Interest
income
|
174
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
(1,348)
|
|
|
|
|
|
|
Income from
operations
|
$ (459)
|
|
$ 3,357
|
$ (637)
|
$ (729)
|
$ (778)
|
$ (1,671)
|
Add:
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
1,082
|
|
190
|
|
|
|
646
|
|
Depreciation and
amortization
|
462
|
|
244
|
157
|
1
|
14
|
|
|
Impairment
|
451
|
|
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
861
|
|
|
|
1002
|
346
|
|
Adjusted
EBITDA
|
$
675
|
|
$ 3,791
|
$ (480)
|
$
(1,730)
|
$
(1,110)
|
$ (1,025)
|
Twelve months
ended December 31, 2019
|
Total
|
|
GRE
|
GES
|
GRE
International
|
GOGAS
|
Corporate
|
|
|
|
|
|
|
|
|
Net income
attributable to Genie Energy Limited
|
$ 4,175
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
(2,796)
|
|
|
|
|
|
|
Net income
|
$ 1,379
|
|
|
|
|
|
|
Provision for income
taxes
|
4,600
|
|
|
|
|
|
|
Other income,
net
|
1,066
|
|
|
|
|
|
|
Interest
expense
|
629
|
|
|
|
|
|
|
Interest
income
|
(547)
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
4,830
|
|
|
|
|
|
|
Income (loss)
from operations
|
$ 11,957
|
|
$ 27,176
|
$ (2,895)
|
$ (8,133)
|
$ (1,028)
|
$ (5,296)
|
Add:
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
1102
|
|
456
|
|
56
|
|
590
|
|
Depreciation and
amortization
|
3589
|
|
703
|
1,008
|
1,819
|
57
|
1
|
|
Impairment of
goodwill
|
400
|
|
|
400
|
|
|
|
Subtract:
|
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
4830
|
|
|
|
4,440
|
291
|
100
|
Adjusted
EBITDA
|
$ 12,218
|
|
$ 28,335
|
$(1,487)
|
$ (10,698)
|
$ (1,262)
|
$ (4,805)
|
Twelve months
ended December 31, 2018
|
Total
|
|
GRE
|
GES
|
GRE
International
|
GOGAS
|
Corporate
|
|
|
|
|
|
|
|
|
Net income
attributable to Genie Energy Limited
|
$ 22,785
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
1,385
|
|
|
|
|
|
|
Net income
|
$ 21,400
|
|
|
|
|
|
|
Provision for income
taxes
|
12,376
|
|
|
|
|
|
|
Gain on
extinguishment of liability
|
164
|
|
|
|
|
|
|
Other expense,
net
|
156
|
|
|
|
|
|
|
Interest
expense
|
(401)
|
|
|
|
|
|
|
Interest
income
|
557
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
(3,430)
|
|
|
|
|
|
|
Income from
operations
|
$ 11,978
|
|
$ 28,989
|
$ (982)
|
$ (1,201)
|
$ (6,533)
|
$ (8,295)
|
Add:
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
4,523
|
|
563
|
|
|
|
3,960
|
|
Depreciation and
amortization
|
2,062
|
|
1,536
|
178
|
1
|
345
|
1
|
|
Impairment
|
2,742
|
|
|
|
|
2,742
|
|
Subtract:
|
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
3,430
|
|
|
|
2,990
|
440
|
|
Adjusted
EBITDA
|
$ 17,875
|
|
$ 31,088
|
$ (804)
|
$ (4,190)
|
$ (3,886)
|
$ (4,334)
|
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SOURCE Genie Energy Ltd.