NEWARK, N.J., Aug. 6, 2020 /PRNewswire/ -- Genie Energy
Ltd. (NYSE: GNE, GNEPRA) reported second quarter 2020 earnings of
$0.06 per basic and diluted share on
revenue of $76.1 million.
HIGHLIGHTS
(Throughout this release, 2Q20 results are compared to 2Q19
results unless otherwise noted)
- Global RCEs served increased by 64,000 (18%) year over year and
20,000 (5%) sequentially to 421,000. Global meters served increased
by 88,000 (20%) year over year and 4,000 (1%) sequentially to
536,000.
- At Genie Retail Energy (GRE), Genie's US retail energy provider
business, per-meter electricity consumption increased 26%.
- Consolidated revenue increased 24.7% to $76.1 million from $61.0
million driven by increased electricity consumption.
- Consolidated income from operations improved to $2.7 million compared to a loss from operations
of $9.3 million. Consolidated
Adjusted EBITDA1 increased to $3.5 million from negative Adjusted
EBITDA1 of $9.1
million.
- GRE's income from operations improved to $6.0 million compared to a loss from operations
of $5.4 million, and Adjusted
EBITDA1 increased to $6.2
million from negative Adjusted EBITDA1 of
$5.1 million.
- Basic and diluted EPS improved to $0.06 from a loss per basic and diluted share of
$0.29.
- During the second quarter, Genie repurchased 200,873 shares of
its Class B common stock for $1.5
million.
COMMENTS OF MICHAEL STEIN, CEO
"Genie Energy delivered strong financial and operational
results, much improved from the difficult year ago quarter. We
again expanded our global customer base led by growth in our
overseas markets, and reported the highest level of Adjusted
EBITDA1 for any second quarter in our history.
"Given our continued favorable outlook and strong cash
generation in recent quarters and after increasing our quarterly
dividend last quarter, we resumed repurchasing shares in the second
quarter.
"The Genie team again did an outstanding job growing our
business and significantly enhancing our bottom-line results
despite the challenges of the COVID-19-impacted environment while
working from home. A big 'Thank you!' to them."
CONSOLIDATED RESULTS
$ in millions,
except EPS
|
2Q20
|
1Q20
|
2Q19
|
|
2Q20-2Q19
Change
(%/$)
|
Revenue
|
$76.1
|
$104.1
|
$61.0
|
|
+24.7%
|
Gross
profit
|
$19.5
|
$28.9
|
$9.0
|
|
+117.1%
|
Gross margin
percentage
|
25.6%
|
27.8%
|
14.7%
|
|
+1090 BP
|
SG&A
expense
|
$16.0
|
$19.5
|
$18.3
|
|
+1.3%
|
Stock-based compensation included in SG&A
|
$0.4
|
$0.5
|
$0.3
|
|
+$0.1
|
Depreciation and amortization
|
$0.7
|
$0.8
|
$0.9
|
|
$(0.2)
|
Bad debt
expense
|
$0.6
|
$0.6
|
$0.3
|
|
+$0.3
|
Impairment of
assets
|
$0.8
|
$0.2
|
-
|
|
+$0.8
|
Income from
operations
|
$2.7
|
$9.2
|
$(9.3)
|
|
+12.0
|
Adjusted
EBITDA1
|
$3.5
|
$10.3
|
$(9.1)
|
|
+$12.6
|
Equity in the net
loss in equity method investees2
|
$(1.2)
|
$(0.4)
|
$(1.1)
|
|
$(0.1)
|
(Provision for)
benefit from income taxes
|
$(0.6)
|
$(2.6)
|
$1.7
|
|
$(2.3)
|
Net income
attributable to Genie Energy common stockholders
|
$1.6
|
$5.5
|
$(7.8)
|
|
+$9.4
|
Earnings per diluted
share attributable to Genie Energy common stockholders
|
$0.06
|
$0.20
|
$(0.29)
|
|
+$0.35
|
Net cash provided by
(used in) operating activities
|
$16.4
|
$(2.7)
|
$(3.1)
|
|
+$19.5
|
GLOBAL METERS AND RCEs
Genie Energy's global customer base increased year-over-year and
sequentially driven by investment in customer acquisition in
overseas and domestic markets. The pace of growth in the
second quarter was slowed by COVID-19 related sales restrictions in
key markets. Genie Energy's global RCE and meter totals are
provided in the chart below.
Global RCEs
and
Meters (in thousands)3
|
June 30,
2020
|
March 31,
2020
|
December 31,
2019
|
September 30,
2019
|
June 30,
2019
|
Electricity
RCEs
|
346
|
325
|
297
|
309
|
291
|
Natural gas
RCEs
|
75
|
76
|
77
|
75
|
66
|
Total
RCEs
|
421
|
401
|
374
|
384
|
357
|
|
|
|
|
|
|
Electricity
meters
|
429
|
421
|
390
|
392
|
361
|
Natural gas
meters
|
107
|
111
|
107
|
100
|
87
|
Total
meters
|
536
|
532
|
497
|
492
|
448
|
SEGMENT RESULTS
Genie Retail Energy (GRE)
Genie Retail
Energy
$ in
millions
|
2Q20
|
1Q20
|
2Q19
|
|
2Q20-2Q19
Change
(%/$)
|
Total
revenue
|
$66.5
|
$79.1
|
$54.4
|
|
+22.1%
|
Electricity revenue
|
$61.1
|
$63.1
|
$49.2
|
|
+24.0%
|
Natural
gas revenue
|
$5.4
|
$16.1
|
$5.2
|
|
+3.9%
|
Gross
profit
|
$17.1
|
$27.6
|
$8.2
|
|
+106.8%
|
Gross margin
percentage
|
25.7%
|
34.9%
|
15.1%
|
|
+1060 BP
|
SG&A
expense
|
$11.1
|
$14.6
|
$13.7
|
|
(18.8)%
|
Depreciation and amortization
|
$0.1
|
$0.1
|
$0.2
|
|
$(0.1)
|
Income from
operations
|
$6.0
|
$13.0
|
$(5.4)
|
|
+$11.4
|
Adjusted
EBITDA1
|
$6.2
|
$13.3
|
$(5.1)
|
|
+$11.3
|
GRE - KPIs and Take-Aways:
- RCEs served at June 30, 2020
increased to 343,000 from 318,000 a year earlier and from 330,000
at March 31, 2020. The year over year
and sequential increases reflect a sustained focus on the
acquisition of higher consumption meters, increased residential
electricity consumption due to warmer weather in 2Q20 compared to
2Q19 and COVID-19 "stay-at-home" orders.
- Meters served at June 30, 2020
decreased to 374,000 from 379,000 a year earlier and from 384,000
at March 31, 2020. The decreases
reflect a slower pace of gross meter additions, partially offset by
a reduction in monthly customer churn.
- Gross meters added during 2Q20 totaled 40,000 compared to
91,000 in 2Q19 and 69,000 in 1Q20. COVID-19-related public health
restrictions reduced sales activity through certain channels in
2Q20.
- Average monthly customer churn decreased to 3.9% from 4.4% in
2Q19 and 4.7% in 1Q20, reflecting decreased sales activity by
competitors as a result of COVID-19-related restrictions.
- The year over year increase in electricity revenue was driven
by a 26% increase in consumption per meter and, to a lesser extent,
the growth of GRE's electricity customer base, which more than
offset a decrease in revenue per kilowatt-hour sold.
- The year over year increases in income from operations and
Adjusted EBITDA1 were driven by increased electricity
consumption and improved gross margin, augmented by a decrease in
customer acquisition expense.
Genie Retail Energy International (GRE
International)
GRE
International
$ in
millions
|
2Q20
|
1Q20
|
2Q19
|
|
2Q20-2Q19
Change
(%/$)
|
Total
revenue
|
$5.0
|
$7.0
|
$2.9
|
|
+75.5%
|
Gross profit
(loss)
|
$1.9
|
$(0.3)
|
$0.2
|
|
+$1.7
|
Gross margin
percentage
|
38.0%
|
(4.0)%
|
8.4%
|
|
+2960 BP
|
SG&A
expense
|
$2.5
|
$2.2
|
$1.8
|
|
+$0.7
|
Loss from
operations
|
$(0.6)
|
$(2.5)
|
$(1.6)
|
|
+$1.0
|
Adjusted
EBITDA1
|
$(1.6)
|
$(2.0)
|
$(1.9)
|
|
+$0.3
|
Equity in the net
loss in Orbit Energy4
|
$(1.5)
|
-
|
$(0.9)
|
|
$(0.6)
|
GRE International – KPIs and Take-Aways:
- RCE's served3 at June 30,
2020 increased to 79,000 from 39,000 a year earlier and from
72,000 at March 31, 2020 led by
growth of Orbit Energy's customer base in the U.K.
- Meters served3 at June 30,
2020 increased to 161,000 from 69,000 a year earlier and
from 148,000 at March 31, 2020.
- On a pro forma basis5, inclusive of Orbit Energy's
revenue, GRE International's revenue increased to $19.9 million in 2Q20 from $7.7 million in 2Q19.
- Loss from operations decreased year over year reflecting
increases in revenue and gross margin, specifically within our Lumo
Energia operations in Finland.
- On a pro forma basis5, inclusive of Orbit Energy's
loss from operations, GRE International's loss from operations
decreased to $2.4 million in 2Q20
from $3.9 million in 2Q19.
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.
- GES' revenue increased to $4.6
million from $3.7 million
reflecting increased revenue at Genie Solar Energy.
- GES' loss from operations was $1.1
million compared to a loss from operations of $0.7 million in 2Q19. The increase was
attributable to a write-down of Prism Solar assets.
Genie Oil and Gas (GOGAS)
- Operations at GOGAS' Afek oil and gas exploration subsidiary
remain suspended pending final testing on an existing well.
- GOGAS' loss from operations6 decreased to
$0.2 million from $0.4 million in 2Q19.
Corporate
- Corporate loss from operations was $1.2
million in both 2Q20 and 2Q19. The losses include the
impact of corporate stock-based compensation which increased to
$0.2 million from $0.1 million in 2Q19.
BALANCE SHEET AND CASH FLOW HIGHLIGHTS
At June 30, 2020, Genie Energy had
$142.4 million in total assets,
including $41.8 million in cash, cash
equivalents and restricted cash. Liabilities totaled
$59.8 million and working capital
(current assets less current liabilities) totaled $49.1 million.
Cash provided by operating activities in 2Q20 was $16.4 million compared to cash used in operating
activities of $3.1 million in
2Q19.
DIVIDEND ON GENIE ENERGY COMMON STOCK
Genie's Board of Directors has declared a second quarter
dividend of $0.085 with a record date
of August 18, 2020. The
dividend will be paid on or about August
26, 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,
August 6, 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 1-888-224-3760
(toll-free from the US) or 1-303-223-4373 (international) and
request the Genie Energy conference call.
Approximately three hours after the call, a call replay will be
accessible by dialing 1-844-512-2921 (toll-free from the US) or
1-412-317-6671 (international) and providing the replay PIN:
21967026. The replay will remain available through August 13, 2020. 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.
FOOTNOTES:
1 Adjusted EBITDA for all periods
presented is a non-GAAP measure. The 'Reconciliation of
Non-GAAP Financial Measures' at the end of this release provides an
explanation of Adjusted EBITDA and reconciliations to its most
directly comparable GAAP measures.
2Genie 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. However, Orbit Energy's customers are included in
metrics regarding our global customer base.
3Includes RCEs and meters acquired and
served by Genie Energy's domestic and international retail energy
provider businesses including operations in Scandinavia 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).
4Genie 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.
5Pro forma results for all periods
presented are non-GAAP measures intended to provide useful
information that supplement the core operating results in
accordance with GAAP of the relevant segment. Please refer to
the 'Reconciliation of Non-GAAP Financial Measures' at the end of
this release for an explanation of the pro forma results as well as
for reconciliations to their most directly comparable GAAP
measures.
6Genie Energy accounts for its minority
interest in Atid, a drilling company based in Israel, under the equity method of accounting.
Atid's revenue generated, and expenses incurred, are not reflected
in segment revenue and operating expenses.
GENIE ENERGY
LTD.
CONSOLIDATED
BALANCE SHEETS
(in thousands, except
per share amounts)
|
|
|
|
June 30,
2020
|
|
|
December 31,
2019
|
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
33,390
|
|
|
$
|
31,242
|
|
Restricted
cash—short-term
|
|
|
7,876
|
|
|
|
6,792
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $3,552 and
$2,631 at June 30, 2020 and December 31, 2019,
respectively
|
|
|
41,761
|
|
|
|
49,822
|
|
Inventory
|
|
|
14,702
|
|
|
|
16,632
|
|
Prepaid
expenses
|
|
|
4,331
|
|
|
|
6,318
|
|
Other current
assets
|
|
|
4,753
|
|
|
|
2,133
|
|
Total current
assets
|
|
|
106,813
|
|
|
|
112,939
|
|
Property and
equipment, net
|
|
|
435
|
|
|
|
3,607
|
|
Goodwill
|
|
|
12,137
|
|
|
|
12,135
|
|
Other intangibles,
net
|
|
|
5,440
|
|
|
|
6,837
|
|
Investment in equity
method investees
|
|
|
624
|
|
|
|
675
|
|
Restricted
cash—long-term
|
|
|
493
|
|
|
|
520
|
|
Deferred income tax
assets, net
|
|
|
9,617
|
|
|
|
12,154
|
|
Other
assets
|
|
|
6,862
|
|
|
|
7,377
|
|
Total
assets
|
|
$
|
142,421
|
|
|
$
|
156,244
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Loan
payable
|
|
$
|
1,392
|
|
|
$
|
921
|
|
Trade accounts
payable
|
|
|
21,578
|
|
|
|
24,387
|
|
Accrued
expenses
|
|
|
28,652
|
|
|
|
26,116
|
|
Contract
liability
|
|
|
834
|
|
|
|
13,426
|
|
Income taxes
payable
|
|
|
2,206
|
|
|
|
1,591
|
|
Due to IDT
Corporation, net
|
|
|
95
|
|
|
|
381
|
|
Short-term revolving
line of credit
|
|
|
—
|
|
|
|
2,514
|
|
Other current
liabilities
|
|
|
2,961
|
|
|
|
2,820
|
|
Total current
liabilities
|
|
|
57,718
|
|
|
|
72,156
|
|
Long-term notes
payable
|
|
|
—
|
|
|
|
777
|
|
Other
liabilities
|
|
|
2,101
|
|
|
|
2,381
|
|
Total
liabilities
|
|
|
59,819
|
|
|
|
75,314
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Genie Energy Ltd.
stockholders' equity:
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.01 par value; authorized shares—10,000:
|
|
|
|
|
|
|
|
|
Series 2012-A,
designated shares—8,750; at liquidation preference, consisting of
2,322 shares issued and outstanding at June 30, 2020 and December
31, 2019
|
|
|
19,743
|
|
|
|
19,743
|
|
Class A common
stock, $0.01 par value; authorized shares—35,000; 1,574 shares
issued and outstanding at June 30, 2020 and December 31,
2019
|
|
|
16
|
|
|
|
16
|
|
Class B common stock,
$0.01 par value; authorized shares—200,000; 25,805 and 25,785
shares issued and 24,562 and 24,755 shares outstanding at June 30,
2020 and December 31, 2019, respectively
|
|
|
258
|
|
|
|
258
|
|
Additional paid-in
capital
|
|
|
140,470
|
|
|
|
139,615
|
|
Treasury stock, at
cost, consisting of 1,243 and 1,030 shares of Class B
common stock at June 30, 2020 and December 31, 2019
|
|
|
(9,221)
|
|
|
|
(7,675)
|
|
Accumulated other
comprehensive income
|
|
|
2,553
|
|
|
|
2,519
|
|
Accumulated
deficit
|
|
|
(56,831)
|
|
|
|
(59,671)
|
|
Total Genie Energy
Ltd. stockholders' equity
|
|
|
96,988
|
|
|
|
94,805
|
|
Noncontrolling interests
|
|
|
(14,386)
|
|
|
|
(13,875)
|
|
Total
equity
|
|
|
82,602
|
|
|
|
80,930
|
|
Total liabilities and
equity
|
|
$
|
142,421
|
|
|
$
|
156,244
|
|
GENIE ENERGY
LTD.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2020
|
|
|
2019
|
|
2020
|
|
|
2019
|
|
|
(in thousands,
except per share data)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Electricity
|
$
|
65,906
|
|
|
$
|
52,055
|
|
$
|
135,877
|
|
|
$
|
114,669
|
|
Natural
gas
|
|
5,396
|
|
|
|
5,194
|
|
|
21,467
|
|
|
|
23,900
|
|
Other
|
|
4,773
|
|
|
|
3,760
|
|
|
22,782
|
|
|
|
9,057
|
|
Total
revenues
|
|
76,075
|
|
|
|
61,009
|
|
|
180,126
|
|
|
|
147,626
|
|
Cost of
revenues
|
|
56,588
|
|
|
|
52,031
|
|
|
131,734
|
|
|
|
113,057
|
|
Gross
profit
|
|
19,487
|
|
|
|
8,978
|
|
|
48,392
|
|
|
|
34,569
|
|
Operating expenses
and losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative (i)
|
|
15,956
|
|
|
|
18,254
|
|
|
35,456
|
|
|
|
34,011
|
|
Impairment of
assets
|
|
801
|
|
|
|
—
|
|
|
993
|
|
|
|
—
|
|
Income from
operations
|
|
2,730
|
|
|
|
(9,276)
|
|
|
11,943
|
|
|
|
558
|
|
Interest
income
|
|
20
|
|
|
|
189
|
|
|
143
|
|
|
|
281
|
|
Interest
expense
|
|
(58)
|
|
|
|
(178)
|
|
|
(175)
|
|
|
|
(319)
|
|
Equity in the net
loss in equity method investees, net
|
|
(1,173)
|
|
|
|
(1,071)
|
|
|
(1,552)
|
|
|
|
(1,868)
|
|
Other (expenses)
income, net
|
|
(52)
|
|
|
|
157
|
|
|
98
|
|
|
|
232
|
|
Income (loss) before
income taxes
|
|
1,467
|
|
|
|
(10,179)
|
|
|
10,457
|
|
|
|
(1,116)
|
|
(Provision for)
benefit from income taxes
|
|
(587)
|
|
|
|
1,678
|
|
|
(3,156)
|
|
|
|
(1,225)
|
|
Net income
(loss)
|
|
880
|
|
|
|
(8,501)
|
|
|
7,301
|
|
|
|
(2,341)
|
|
Net (loss)
attributable to noncontrolling interests
|
|
(1,083)
|
|
|
|
(1,035)
|
|
|
(494)
|
|
|
|
(944)
|
|
Net income (loss)
attributable to Genie Energy Ltd.
|
|
1,963
|
|
|
|
(7,466)
|
|
|
7,795
|
|
|
|
(1,397)
|
|
Dividends on
preferred stock
|
|
(370)
|
|
|
|
(370)
|
|
|
(740)
|
|
|
|
(740)
|
|
Net income (loss)
attributable to Genie Energy Ltd. common stockholders
|
$
|
1,593
|
|
|
$
|
(7,836)
|
|
$
|
7,055
|
|
|
$
|
(2,137)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to Genie Energy Ltd. common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.06
|
|
|
$
|
(0.29)
|
|
$
|
0.27
|
|
|
$
|
(0.08)
|
|
Diluted
|
$
|
0.06
|
|
|
$
|
(0.29)
|
|
$
|
0.26
|
|
|
$
|
(0.08)
|
|
Weighted-average
number of shares used in calculation of earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
26,087
|
|
|
|
26,595
|
|
|
26,098
|
|
|
|
26,614
|
|
Diluted
|
|
26,853
|
|
|
|
26,595
|
|
|
26,804
|
|
|
|
26,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
0.085
|
|
|
$
|
0.075
|
|
$
|
0.160
|
|
|
$
|
0.150
|
|
(i) Stock-based
compensation included in selling, general and administrative
expenses
|
$
|
401
|
|
|
$
|
323
|
|
$
|
884
|
|
|
$
|
772
|
|
GENIE ENERGY
LTD.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
Six Months
Ended
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
(in
thousands)
|
|
Operating
activities
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
7,301
|
|
|
$
|
(2,341)
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,548
|
|
|
|
1,855
|
|
Impairment of
assets
|
|
|
993
|
|
|
|
—
|
|
Deferred income
taxes
|
|
|
2,537
|
|
|
|
777
|
|
Provision for doubtful
accounts receivable
|
|
|
1,215
|
|
|
|
314
|
|
Loss on sale of assets
held for sale
|
|
|
78
|
|
|
|
—
|
|
Stock-based
compensation
|
|
|
884
|
|
|
|
772
|
|
Equity in the net loss
in equity method investees
|
|
|
1,552
|
|
|
|
1,868
|
|
Gain on
deconsolidation of subsidiaries
|
|
|
(98)
|
|
|
|
—
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
6,847
|
|
|
|
2,917
|
|
Inventory
|
|
|
1,930
|
|
|
|
(961)
|
|
Prepaid
expenses
|
|
|
2,016
|
|
|
|
(2,069)
|
|
Other current assets
and other assets
|
|
|
223
|
|
|
|
(698)
|
|
Trade accounts
payable, accrued expenses and other current liabilities
|
|
|
(1,006)
|
|
|
|
2,348
|
|
Contract
liability
|
|
|
(12,707)
|
|
|
|
(357)
|
|
Due to IDT
Corporation
|
|
|
(286)
|
|
|
|
(42)
|
|
Income taxes
payable
|
|
|
615
|
|
|
|
(511)
|
|
Net cash provided by
operating activities
|
|
|
13,642
|
|
|
|
3,872
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(99)
|
|
|
|
(329)
|
|
Proceeds from disposal
of assets held for sale
|
|
|
5
|
|
|
|
—
|
|
Payment for
acquisition of intangible
|
|
|
(298)
|
|
|
|
—
|
|
Investments in equity
method investee
|
|
|
(1,502)
|
|
|
|
—
|
|
Payments for business
acquisition, net of cash acquired
|
|
|
—
|
|
|
|
(1,852)
|
|
Investments in notes
receivables
|
|
|
—
|
|
|
|
(177)
|
|
Repayment of notes
receivable
|
|
|
12
|
|
|
|
282
|
|
Net cash used in
investing activities
|
|
|
(1,882)
|
|
|
|
(2,076)
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(4,955)
|
|
|
|
(4,809)
|
|
Repayment of
short-term debt—Lumo
|
|
|
—
|
|
|
|
(2,260)
|
|
Proceeds from
revolving line of credit
|
|
|
1,000
|
|
|
|
—
|
|
Repayment of revolving
line of credit
|
|
|
(3,514)
|
|
|
|
—
|
|
Proceeds from
loan
|
|
|
1,395
|
|
|
|
—
|
|
Repayment of notes
payable
|
|
|
(930)
|
|
|
|
—
|
|
Exercise of stock
options
|
|
|
—
|
|
|
|
965
|
|
Purchases of Class B
common stock
|
|
|
(1,546)
|
|
|
|
—
|
|
Repayment of notes
payable
|
|
|
(17)
|
|
|
|
(28)
|
|
Net cash used in
financing activities
|
|
|
(8,566)
|
|
|
|
(6,132)
|
|
Effect of exchange
rate changes on cash, cash equivalents, and restricted
cash
|
|
|
12
|
|
|
|
12
|
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
|
|
3,205
|
|
|
|
(4,324)
|
|
Cash, cash
equivalents, and restricted cash at beginning of period
|
|
|
38,554
|
|
|
|
44,197
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
|
$
|
41,759
|
|
|
$
|
39,873
|
|
Reconciliation of Non-GAAP Financial Measures
for the Second Quarter 2020
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 second quarter 2020, 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 second quarter 2020 and
second quarter 2019 to supplement the following results: 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
measures. Pro forma revenue for the Genie Retail Energy
International segment is reconciled to the segment's revenue, and
Genie Retail Energy International's pro forma 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.
Reconciliation of pro forma GRE International revenue and loss
from operations
|
|
|
|
|
|
|
|
|
Genie Retail
Energy International (GREI) Segment Results
|
|
|
|
|
|
(results in
millions)
|
|
2Q20
|
|
2Q19
|
|
|
|
|
|
|
|
|
|
|
GREI segment
revenue
|
|
$
5.0
|
|
$
2.9
|
|
|
plus
|
Orbit Energy
revenue
|
|
$
14.9
|
|
$
4.8
|
|
|
Pro forma GREI
segment revenue
|
|
$
19.9
|
|
$
7.7
|
|
|
|
|
|
|
|
|
|
|
GREI segment loss
from operations
|
|
$
(0.6)
|
|
$
(1.6)
|
|
|
plus
|
Orbit Energy loss
from operations
|
|
$
(1.8)
|
|
$
(2.3)
|
|
|
Pro forma GREI
segment loss from operations
|
|
$
(2.4)
|
|
$
(3.9)
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA
|
|
Total
|
|
GRE
|
|
GES
|
|
GREI
|
|
GOGAS
|
|
CORP
|
Three months ended
June 30, 2020 (2Q20)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Genie Energy Limited
|
$
1,963
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
(1,083)
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
880
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
587
|
|
|
|
|
|
|
|
|
|
|
Other expenses,
net
|
52
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
58
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
(20)
|
|
|
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
1,173
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
$
2,730
|
|
$
5,957
|
|
$ (1,113)
|
|
$
(607)
|
|
$
(172)
|
|
$ (1,335)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
401
|
|
175
|
|
|
|
14
|
|
|
|
213
|
|
Depreciation and
amortization
|
722
|
|
118
|
|
95
|
|
495
|
|
14
|
|
|
|
Impairment
|
801
|
|
|
|
801
|
|
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
1,173
|
|
|
|
|
|
1,502
|
|
(224)
|
|
(105)
|
Adjusted
EBITDA
|
$
3,481
|
|
$
6,250
|
|
$
(217)
|
|
$ (1,600)
|
|
$
66
|
|
$ (1,017)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
GRE
|
|
GES
|
|
GREI
|
|
GOGAS
|
|
CORP
|
Three months ended
March 31, 2020 (1Q20)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Genie Energy Limited
|
$
5,832
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
589
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
6,421
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
2,569
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
(150)
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
123
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
(128)
|
|
|
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
379
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$
9,214
|
|
$ 13,017
|
|
$
342
|
|
$ (2,520)
|
|
$
(224)
|
|
$ (1,403)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
483
|
|
156
|
|
|
|
37
|
|
|
|
291
|
|
Depreciation and
amortization
|
826
|
|
112
|
|
208
|
|
490
|
|
15
|
|
|
|
Impairment
|
192
|
|
|
|
192
|
|
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
379
|
|
|
|
|
|
|
|
260
|
|
119
|
Adjusted
EBITDA
|
$
10,336
|
|
$ 13,285
|
|
$
742
|
|
$ (1,993)
|
|
$
(469)
|
|
$ (1,231)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
GRE
|
|
GES
|
|
GREI
|
|
GOGAS
|
|
CORP
|
Three months ended
June 30, 2019 (2Q19)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Genie Energy Limited
|
$
(7,466)
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
(1,035)
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
(8,501)
|
|
|
|
|
|
|
|
|
|
|
Benefit from income
taxes
|
(1,678)
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
(157)
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
178
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
(189)
|
|
|
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
1,071
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
operations
|
$
(9,276)
|
|
$ (5,418)
|
|
$
(682)
|
|
$ (1,607)
|
|
$
(381)
|
|
$ (1,188)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
323
|
|
108
|
|
|
|
94
|
|
|
|
122
|
|
Depreciation and
amortization
|
926
|
|
186
|
|
244
|
|
481
|
|
14
|
|
|
|
Impairment
|
|
|
|
|
|
|
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
1,071
|
|
|
|
|
|
867
|
|
204
|
|
|
Adjusted
EBITDA
|
$
(9,098)
|
|
$ (5,124)
|
|
$
(438)
|
|
$ (1,899)
|
|
$
(571)
|
|
$ (1,066)
|
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SOURCE Genie Energy Ltd.