NEWARK, N.J., March 11, 2021 /PRNewswire/ -- Genie Energy
Ltd. (NYSE: GNE, GNEPRA) reported fourth quarter 2020 loss of
$0.06 per diluted share on revenue of
$102.9 million, and full year 2020
earnings of $0.44 per diluted share
on revenue of $379.3
million.
4Q20 AND FULL YEAR 2020 FINANCIAL AND OPERATIONAL
HIGHLIGHTS
(Throughout this release, 4Q20 results are
compared to 4Q19 results and FY 2020 results are compared to FY
2019 results unless otherwise noted)
- 4Q20 consolidated revenue increased 25.5% to $102.9 million. Full year 2020 consolidated
revenue increased 20.3% to a company record of $379.3 million.
- 4Q20 consolidated loss from operations was $1.1 million compared to income from operations
of $2.3 million in 4Q19. 4Q20
consolidated Adjusted EBITDA1 decreased to $693 thousand from $815
thousand.
- Full year 2020 consolidated income from operations increased to
$19.3 million from $9.8 million. Full year 2020 consolidated
Adjusted EBITDA1 increased to $24.0 million (the highest level in Genie
Energy's history) from $10.1
million.
- 4Q20 diluted loss per share of $0.06 compared to breakeven. Full year 2020
diluted EPS increased to $0.44 from
$0.10.
- In December 2020, Genie's Afek
subsidiary ceased exploratory operations after finding no light oil
resources suitable for commercial development.
- Genie Energy has suspended its common stock dividend
COMMENTS OF MICHAEL STEIN, CEO
"We capped an
outstanding year with solid fourth quarter results. Our
domestic business again performed well despite the mixed impacts of
COVID-19. For the full year 2020, consolidated gross profit
increased 18% to $98 million and EPS
climbed to $0.44 from $0.10 in 2019. Our domestic retail supply
business delivered over $37 million
in adjusted EBITDA, a record performance.
"In light of the losses incurred from the unprecedented storm
that hit Texas in mid-February, we
are working to de-risk our business and narrow our strategic
focus. We expect to grow our cash-generating core business in
the U.S., including our solar business, maximize near term cash
flows, strengthen our balance sheet, and adapt our risk profile in
light of the lessons learned. Pursuant to this approach, we
will undertake a strategic evaluation of our international
investment businesses. As part of the effort to rebuild our cash
position, we have suspended our dividend."
"During the fourth quarter, we concluded our oil and gas
exploration program after finding no light oil in our last well
tests. Though disappointing, the result allows us to focus
more tightly on our retail energy supply business.
UPDATE ON TEXAS WINTER STORM
IMPACT
A series of severe winter storms (collectively,
Winter Storm Uri) struck the Midwest
in mid-February after the fourth quarter close. The storm
triggered unprecedented increases in electricity demand in
combination with significant reductions in supply within the
Electric Reliability Council of Texas ("ERCOT") service area. Wholesale
electricity prices reached or exceeded maximum allowed clearing
prices for sustained periods and rolling blackouts impacted
millions of residential and commercial customers across the
State.
Because complete data on supply and related costs is not
available, Genie Energy is not yet able to fully quantify the
financial impact of the storm. Invoices received to date as
well as other costs incurred in connection with the disruptive
period currently place the first quarter loss in Texas at approximately $12.8 million. The company plans to provide
an update when it has received all relevant price and volume
settlement data.
CHANGES TO REPORTING
Genie is
modifying its reporting into three business segments: GRE, GRE
International, and GES. Genie also reports corporate overhead.
Following the completion of exploratory activities at
GOGAS, GOGAS's results will be reported as part of the
company's corporate overhead.
To reflect Genie's purchase of the outstanding interest in its
Orbit Energy joint venture operating in the United Kingdom from its former joint venture
partner, Genie began to consolidate Orbit's results in its
financial reporting under the GRE International segment effective
October 8, 2020. Prior to that
date, Genie accounted for its investments in Orbit under the equity
method of accounting. Revenue generated, and expenses incurred,
were not reflected in segment revenue and operating expenses.
CONSOLIDATED RESULTS
$ in millions,
except EPS
|
4Q20
|
3Q20
|
4Q19
|
|
4Q20-4Q19
Change
(%/$)
|
|
2020
|
2019
|
|
2020-2019
Change
(%/$)
|
Revenue
|
$102.9
|
$96.3
|
$82.0
|
|
+25.5%
|
|
$379.3
|
$276.5
|
|
+20.3%
|
Gross
profit
|
$22.0
|
$27.3
|
$22.0
|
|
nc
|
|
$97.7
|
$83.0
|
|
+17.8%
|
Gross margin
percentage
|
21.4%
|
28.4%
|
26.8%
|
|
(540) BP
|
|
25.8%
|
26.3%
|
|
(50) BP
|
SG&A
expense
|
$22.7
|
$18.8
|
$19.2
|
|
+17.7%
|
|
$77.0
|
$72.7
|
|
+5.9%
|
Stock-based compensation
included
in SG&A
|
$(0.2)
|
$0.4
|
$-
|
|
$(0.2)
|
|
$1.1
|
$1.1
|
|
nc
|
Depreciation and
amortization
|
$1.3
|
$0.7
|
$0.8
|
|
+$0.5
|
|
$3.5
|
$3.6
|
|
$(0.1)
|
Bad debt
expense
|
$1.5
|
$1.0
|
$0.2
|
|
+$1.3
|
|
$3.7
|
$0.7
|
|
+$2.6
|
Impairment of
assets
|
$0.4
|
-
|
$0.4
|
|
nc
|
|
$1.4
|
$0.4
|
|
+$1.0
|
Loss (Income) from
operations
|
$(1.1)
|
$8.5
|
$2.3
|
|
$(3.3)
|
|
$19.3
|
$9.8
|
|
+$9.5
|
Adjusted
EBITDA1
|
$0.7
|
$9.5
|
$0.8
|
|
$(0.1)
|
|
$24.0
|
$10.1
|
|
+$13.9
|
Equity in the net
loss in equity method investees2
|
$0.3
|
$(0.1)
|
$(2.7)
|
|
+$3.0
|
|
$(1.4)
|
$(4.8)
|
|
+$3.4
|
Provision for income
taxes
|
$(2.8)
|
$(2.4)
|
$(1.5)
|
|
+$0.7
|
|
$(8.3)
|
$(5.6)
|
|
$(0.8)
|
Net (loss) income
attributable to Genie Energy common stockholders
|
$(1.7)
|
$6.4
|
-
|
|
$(1.7)
|
|
$13.2
|
$13.4
|
|
$(0.2)
|
(Loss) earnings per
diluted share attributable to Genie Energy common
stockholders
|
$(0.06)
|
$0.24
|
-
|
|
$(0.06)
|
|
$0.44
|
$0.10
|
|
+$0.34
|
Net cash (used in)
provided by operating activities
|
$(0.9)
|
$10.4
|
$0.2
|
|
$(1.1)
|
|
$23.1
|
$15.8
|
|
+$7.3
|
GLOBAL METERS AND RCEs
Genie Energy's global customer
base increased year-over-year driven by GRE International's
investment in customer acquisition. Genie Energy's global RCE
and meter totals are provided in the chart below.
Global RCEs and
Meters
(in thousands)2
|
December 31,
2020
|
September 30,
2020
|
June 30,
2020
|
March 31,
2020
|
December 31,
2019
|
Electricity
RCEs
|
366
|
364
|
346
|
325
|
297
|
Natural gas
RCEs
|
75
|
78
|
75
|
76
|
77
|
Total
RCEs
|
440
|
442
|
421
|
401
|
374
|
|
|
|
|
|
|
Electricity
meters
|
454
|
445
|
429
|
421
|
390
|
Natural gas
meters
|
111
|
113
|
107
|
111
|
107
|
Total
meters
|
565
|
558
|
536
|
532
|
497
|
SEGMENT RESULTS
Genie Retail
Energy
$ in
millions
|
4Q20
|
3Q20
|
4Q19
|
|
4Q20-4Q19
Change
(%/$)
|
|
2020
|
2019
|
|
2020-2019
Change
(%/$)
|
Total
revenue
|
$70.2
|
$89.5
|
$74.0
|
|
(5.2)%
|
|
$305.3
|
$286.6
|
|
+6.5%
|
Electricity revenue
|
$60.6
|
$86.2
|
$61.2
|
|
(1.1)%
|
|
$270.9
|
$246.7
|
|
+9.8%
|
Natural
gas revenue
|
$9.4
|
$2.7
|
$12.9
|
|
(27.1)%
|
|
$33.6
|
$39.9
|
|
(15.9)%
|
Gross
profit
|
$17.7
|
$25.9
|
$22.0
|
|
(19.7)%
|
|
$88.3
|
$80.6
|
|
+9.5%
|
Gross margin
percentage
|
25.2%
|
29.0%
|
29.7%
|
|
(450 BP)
|
|
28.9%
|
28.1%
|
|
+80 BP
|
SG&A
expense
|
$12.6
|
$13.6
|
$13.8
|
|
(8.6)%
|
|
$51.9
|
$53.4
|
|
(3.0)%
|
Depreciation & amortization
|
$0.1
|
$0.1
|
$0.2
|
|
(32.4)%
|
|
$0.5
|
$0.7
|
|
$(0.2)
|
Bad
debt
|
$0.5
|
$0.9
|
$0.2
|
|
+$0.3
|
|
$2.6
|
$0.6
|
|
+$2.0
|
Income from
operations
|
$5.1
|
$12.3
|
$8.2
|
|
$(3.1)
|
|
$36.4
|
$27.2
|
|
+$9.2
|
Adjusted
EBITDA1
|
$5.2
|
$12.6
|
$8.5
|
|
$(3.3)
|
|
$37.3
|
$28.3
|
|
+$9.0
|
GRE - KPIs and Take-Aways:
- RCEs served at December 31, 2020
increased 9% to 337,000 from 309,000 a year earlier and decreased
4% from 350,000 at September 30,
2020.
- Meters served at December 31,
2020 was unchanged from a year earlier at 370,000 and
decreased 1% from 375,000 at September 30,
2020.
- Gross meters added during 4Q20 totaled 58,000 compared to
56,000 in 4Q19 and 44,000 in 3Q20. For the full year 2020, gross
meters added totaled 212,000 compared to 308,000 added in
2019.
- Average monthly customer churn was 5.3% in 4Q20 compared to
6.1% in 4Q19 and 3.7% in 3Q20. For the full year 2020, average
monthly customer churn decreased to 4.4% from 5.3% in 2019, driven
by reduced competitive activity due to COVID-19 during 2020.
- Electricity revenue decreased slightly in 4Q20 reflecting lower
revenue per kilowatt hour. For the full year 2020, a significant
increase in consumption per meter as a result of the move toward
work-from-home was only partially offset by lower revenue per
kilowatt hour.
- The year over year decreases in income from operations and
Adjusted EBITDA1 were driven by reduced gross profit per
kilowatt hour partially offset by decreased customer acquisition
expense as a result of COVID-19 related restrictions on in-person
customer acquisition activities.
Genie Retail Energy International (GRE
International)
To reflect Genie's purchase of the
outstanding interest in its Orbit Energy joint venture operating in
the United Kingdom from its former
joint venture partner, Genie began to consolidate Orbit's results
in its financial reporting under the GRE International segment
effective October 8, 2020.
Prior to that date, Genie accounted for its investments in Orbit
under the equity method of accounting. Revenue generated, and
expenses incurred, were not reflected in segment revenue and
operating expenses. However, Orbit Energy's customers are included
in counts of Genie Energy's and GRE International's customer bases
for all periods presented.
Genie Retail
International2
$ in
millions
|
4Q20
|
3Q20
|
4Q19
|
|
4Q20-4Q19
Change
(%/$)
|
|
2020
|
2019
|
|
2020-2019
Change
(%/$)
|
Total
revenue
|
$31.8
|
$5.8
|
$5.8
|
|
+$26.0
|
|
$49.6
|
$16.6
|
|
+$33.1
|
Electricity revenue
|
$23.4
|
$5.6
|
$5.8
|
|
+$17.6
|
|
$40.7
|
$16.4
|
|
+$24.3
|
Natural
gas revenue
|
$8.3
|
-
|
-
|
|
+$8.3
|
|
$8.3
|
-
|
|
+$8.3
|
Gross
profit
|
$4.4
|
$1.1
|
$(0.3)
|
|
+$4.7
|
|
$7.2
|
$0.3
|
|
+$6.8
|
Gross margin
percentage
|
14.0%
|
18.7%
|
(5.0)%
|
|
+1890 BP
|
|
14.4%
|
2.0%
|
|
+1200 BP
|
SG&A
expense
|
$7.4
|
$2.7
|
$2.9
|
|
+4.5
|
|
$14.8
|
$8.5
|
|
+$6.3
|
Depreciation & amortization
|
$1.1
|
$0.5
|
$0.4
|
|
+$0.8
|
|
$2.7
|
$1.8
|
|
+$0.8
|
Bad
debt
|
$1.0
|
$0.1
|
-
|
|
+$1.0
|
|
$1.1
|
-
|
|
+$1.1
|
Loss from
operations
|
$(2.9)
|
$(1.6)
|
$(3.2)
|
|
+$0.3
|
|
$(7.6)
|
$(8.1)
|
|
+$0.5
|
Adjusted
EBITDA1
|
$(1.8)
|
$(1.0)
|
$(5.6)
|
|
+$3.8
|
|
$(6.3)
|
$(10.7)
|
|
+$4.4
|
GRE International – KPIs and Take-Aways:
- RCE's served at December 31, 2020
increased 58% to 103,000 from 65,000 a year earlier and increased
12% from 92,000 at September 30, 2020
led by expansion in the U.K. and Scandinavian markets.
- Meters served at December 31,
2020 increased 53% to 195,000 from 127,000 a year earlier
and increased 7% from 182,000 at September
30, 2020.
- On a pro forma basis3, inclusive of Orbit Energy's
revenue, GRE International's 4Q20 revenue increased to $33.6 million from $22.2
million in 4Q19. Full year 2020 pro forma3
revenue increased to $101.1 million
from $47.4 million in 2019.
- On a pro forma basis3, inclusive of Orbit Energy's
loss from operations, GRE International's 4Q20 loss from operations
decreased to $3.1 million from
$6.4 million in 4Q19. Full year
2020 pro forma3 loss from operations decreased to
$17.4 million from $19.5 million in 2019.
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, a provider of custom solar energy solutions
to commercial customers.
- GES' 4Q20 revenue of $0.9 million
decreased from $2.1 million. Full
year 2020 revenue increased to $24.4
million from $12.1 million
primarily reflecting revenue from solar installation revenues for a
large client recognized in the first half of 2020.
- GES' 4Q20 loss from operations was $1.0
million compared to a loss from operations of $1.2 million in 4Q19. The full year 2020 loss
from operations was $2.5 million
compared to $2.9 million in
2019.
Corporate
During 4Q20, Genie Oil and Gas
completed its oil and gas exploration program. As a result,
GOGAS is no longer reported as a separate segment. Results
from activities formerly reported through the GOGAS segment are
reported within Corporate for all periods presented.
- Corporate overhead in 4Q20 was $2.3
million compared to $1.5
million in 4Q19. Full year 2020 corporate overhead was
$7.0 million compared to $6.3 million in 2019.
BALANCE SHEET AND CASH FLOW HIGHLIGHTS
At
December 31, 2020, Genie Energy had
$187.3 million in total assets.
Cash, cash equivalents, restricted cash marketable securities
and short-term investments totaled $48.3
million at December 31, 2020
compared to $49.2 million at
September 30, 2020. Liabilities
totaled $101.3 million and working
capital (current assets less current liabilities) totaled
$36.3 million compared to
$54.9 million at September 30, 2020. The reduction in
working capital substantially reflects the consolidation of Orbit
Energy in the fourth quarter including prepayments made by its
customers.
Cash used in operating activities in 4Q20 was $0.9 million compared to cash provided by
operating activities of $0.2 million
in 4Q19. Full year 2020 cash provided by operating activities
increased to $23.1 million from
$15.8 million in 2019.
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 today, Genie
Energy's management will host a conference call to discuss
financial and operational results, business outlook and
strategy. The call will begin with management's remarks
followed by Q&A with investors.
To participate in the conference call, dial 1-888-348-6472
(toll-free from the US) or 1-412-902-4240 (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:
10151934. The replay will remain available through March 18, 2021. 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 formerly accounted for its
investments in Orbit Energy, its joint venture operating in the
U.K., under the equity method of accounting prior to Genie's
purchase of the joint venture's outstanding interest. Under
the equity method, Genie Energy recorded its share in the net
income or loss of the venture. Therefore, revenue generated and
expenses incurred were not reflected in Genie Energy's consolidated
revenue and expenses. Orbit Energy's customers were included in
metrics regarding its global customer base for all periods
presented. To reflect Genie's purchase of the
outstanding interest in Orbit Energy, Genie began to consolidate
Orbit's results in its financial reporting under the Genie Retail
Energy International (GRE International) segment effective
October 8, 2020.
3Pro 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.
GENIE ENERGY
LTD.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
December
31
|
|
(in thousands,
except per share amounts)
|
|
2020
|
|
|
2019
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
36,913
|
|
|
$
|
31,242
|
|
Restricted
cash—short-term
|
|
|
6,271
|
|
|
|
6,792
|
|
Marketable equity
securities
|
|
|
5,089
|
|
|
|
—
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $8,793 and
$2,631 at December 31, 2020 and 2019, respectively
|
|
|
60,778
|
|
|
|
49,822
|
|
Inventory
|
|
|
16,930
|
|
|
|
16,632
|
|
Prepaid
expenses
|
|
|
4,633
|
|
|
|
6,318
|
|
Other current
assets
|
|
|
3,206
|
|
|
|
2,133
|
|
TOTAL CURRENT
ASSETS
|
|
|
133,820
|
|
|
|
112,939
|
|
Property and
equipment, net
|
|
|
259
|
|
|
|
3,607
|
|
Goodwill
|
|
|
25,929
|
|
|
|
12,135
|
|
Other intangibles,
net
|
|
|
11,645
|
|
|
|
6,837
|
|
Investment in equity
method investees
|
|
|
747
|
|
|
|
675
|
|
Restricted
cash—long-term
|
|
|
—
|
|
|
|
520
|
|
Deferred income tax
assets, net
|
|
|
4,882
|
|
|
|
12,154
|
|
Other
assets
|
|
|
10,057
|
|
|
|
7,377
|
|
TOTAL
ASSETS
|
|
$
|
187,339
|
|
|
$
|
156,244
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Loans
payable
|
|
$
|
1,453
|
|
|
$
|
921
|
|
Trade accounts
payable
|
|
|
43,005
|
|
|
|
24,387
|
|
Accrued
expenses
|
|
|
42,762
|
|
|
|
26,116
|
|
Contract
liability
|
|
|
5,609
|
|
|
|
13,426
|
|
Income taxes
payable
|
|
|
1,893
|
|
|
|
1,591
|
|
Due to IDT
Corporation
|
|
|
257
|
|
|
|
381
|
|
Short-term revolving
line of credit
|
|
|
—
|
|
|
|
2,514
|
|
Other current
liabilities
|
|
|
2,494
|
|
|
|
2,820
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
97,473
|
|
|
|
72,156
|
|
Long-term notes
payable
|
|
|
—
|
|
|
|
777
|
|
Other
liabilities
|
|
|
3,787
|
|
|
|
2,381
|
|
TOTAL
LIABILITIES
|
|
|
101,260
|
|
|
|
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 December 31, 2020 and
2019
|
|
|
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, 2020 and 2019
|
|
|
16
|
|
|
|
16
|
|
Class B common stock,
$0.01 par value; authorized shares – 200,000; 25,966 and 25,785
shares issued and 24,646 and 24,755 shares outstanding at December
31, 2020 and 2019, respectively
|
|
|
260
|
|
|
|
258
|
|
Additional paid-in
capital
|
|
|
140,746
|
|
|
|
139,615
|
|
Treasury stock, at
cost, consisting of 1,320 and 1,030 shares of Class B common at
December 31, 2020 and 2019, respectively
|
|
|
(9,839)
|
|
|
|
(7,675)
|
|
Accumulated other
comprehensive income
|
|
|
3,827
|
|
|
|
2,519
|
|
Accumulated
deficit
|
|
|
(56,658)
|
|
|
|
(59,671)
|
|
Total Genie Energy
Ltd. stockholders' equity
|
|
|
98,095
|
|
|
|
94,805
|
|
Noncontrolling
interests:
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
|
(12,016)
|
|
|
|
(13,875)
|
|
TOTAL
EQUITY
|
|
|
86,079
|
|
|
|
80,930
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
187,339
|
|
|
$
|
156,244
|
|
GENIE ENERGY
LTD.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
Year ended
December 31,
|
(in thousands,
except per share data)
|
|
2020
|
|
|
2019
|
|
REVENUES:
|
|
|
|
|
|
|
Electricity
|
|
$
|
311,578
|
|
|
$
|
263,091
|
|
Natural gas
|
|
|
41,881
|
|
|
|
39,926
|
|
Other
|
|
|
25,853
|
|
|
|
12,274
|
|
Total revenues
|
|
|
379,312
|
|
|
|
315,291
|
|
Cost of revenues
|
|
|
281,627
|
|
|
|
232,392
|
|
GROSS PROFIT
|
|
|
97,685
|
|
|
|
82,899
|
|
OPERATING EXPENSES
AND LOSSES:
|
|
|
|
|
|
|
|
|
Selling,
general and administrative (i)
|
|
|
76,951
|
|
|
|
72,674
|
|
Impairment of
assets
|
|
|
1,397
|
|
|
|
400
|
|
Income from
operations
|
|
|
19,337
|
|
|
|
9,825
|
|
Interest
income
|
|
|
190
|
|
|
|
448
|
|
Interest
expense
|
|
|
(328)
|
|
|
|
(530)
|
|
Equity in the
net loss in equity method investees
|
|
|
(1,443)
|
|
|
|
(4,830)
|
|
Gain on
acquisition of a subsidiary
|
|
|
5,473
|
|
|
|
—
|
|
Other income,
net
|
|
|
639
|
|
|
|
1,066
|
|
Income before income
taxes
|
|
|
23,868
|
|
|
|
5,979
|
|
Provision for
income taxes
|
|
|
(8,314)
|
|
|
|
(4,600)
|
|
NET
INCOME
|
|
|
15,554
|
|
|
|
1,379
|
|
Net (income)
loss attributable to noncontrolling interests
|
|
|
(2,399)
|
|
|
|
2,796
|
|
NET INCOME
ATTRIBUTABLE TO GENIE ENERGY LTD.
|
|
|
13,155
|
|
|
|
4,175
|
|
Dividends on
preferred stock
|
|
|
(1,481)
|
|
|
|
(1,481)
|
|
NET INCOME
ATTRIBUTABLE TO GENIE ENERGY LTD. COMMON STOCKHOLDERS
|
|
$
|
11,674
|
|
|
$
|
2,694
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributed to Genie Energy Ltd. common stockholder
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.45
|
|
|
$
|
0.10
|
|
Diluted
|
|
$
|
0.44
|
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares used in the calculation of earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
|
26,109
|
|
|
|
26,607
|
|
Diluted
|
|
|
26,813
|
|
|
|
27,464
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.33
|
|
|
$
|
0.30
|
|
(i) Stock-based
compensation included in selling, general and administrative
expenses
|
|
$
|
1,134
|
|
|
$
|
1,102
|
|
GENIE ENERGY
LTD.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
Year ended
December 31,
|
(in
thousands)
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
Net income
|
|
$
|
15,554
|
|
|
$
|
1,379
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
3,548
|
|
|
|
3,627
|
|
Deferred
income taxes
|
|
|
7,272
|
|
|
|
3,471
|
|
Provision for doubtful accounts receivable
|
|
|
3,734
|
|
|
|
658
|
|
Impairment of assets
|
|
|
1,397
|
|
|
|
400
|
|
Stock-based compensation
|
|
|
1,134
|
|
|
|
1,102
|
|
Equity
in the net loss of equity method investees
|
|
|
1,443
|
|
|
|
4,830
|
|
Loss on
sale disposal of assets, net
|
|
|
262
|
|
|
|
—
|
|
Gain on
consolidation of subsidiary
|
|
|
(5,473)
|
|
|
|
—
|
|
Unrealized gain on marketable equity securities and
investment
|
|
|
(348)
|
|
|
|
—
|
|
Gain on
deconsolidation of subsidiaries
|
|
|
(98)
|
|
|
|
—
|
|
Change in assets and
liabilities, net of effect of acquisition:
|
|
|
|
|
|
|
|
|
Trade
accounts receivable
|
|
|
(6,681)
|
|
|
|
(12,041)
|
|
Inventory
|
|
|
(298)
|
|
|
|
(6,739)
|
|
Prepaid
expenses
|
|
|
1,714
|
|
|
|
(124)
|
|
Other
current assets and other assets
|
|
|
(3,208)
|
|
|
|
1,137
|
|
Trade
accounts payable, accrued expenses and other
current liabilities
|
|
|
15,950
|
|
|
|
5,506
|
|
Contract
liability
|
|
|
(12,185)
|
|
|
|
12,271
|
|
Due to
IDT Corporation
|
|
|
(124)
|
|
|
|
147
|
|
Income
taxes payable
|
|
|
302
|
|
|
|
128
|
|
Net cash provided by
operating activities
|
|
|
23,119
|
|
|
|
15,752
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(167)
|
|
|
|
(404)
|
|
Investments in notes receivable
|
|
|
—
|
|
|
|
(214)
|
|
Proceeds from sale of assets
|
|
|
2,672
|
|
|
|
—
|
|
Purchase of marketable equity security and investment
|
|
|
(5,000)
|
|
|
|
—
|
|
Cash
acquired from acquisition of Shoreditch, net of cash
payment
|
|
|
958
|
|
|
|
—
|
|
Payment
for acquisition of Lumo Energia, net of cash
acquired
|
|
|
—
|
|
|
|
(2,044)
|
|
Repayment of notes receivable
|
|
|
12
|
|
|
|
124
|
|
Investments in equity method investees
|
|
|
(1,502)
|
|
|
|
(3,235)
|
|
Net cash used in
investing activities
|
|
|
(3,027)
|
|
|
|
(5,773)
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
(10,142)
|
|
|
|
(9,595)
|
|
Purchases of Class B common stock
|
|
|
(1,704)
|
|
|
|
(5,584)
|
|
Repayment of short-term debt—Lumo Energia
|
|
|
—
|
|
|
|
(2,260)
|
|
Repayment of notes payable
|
|
|
(867)
|
|
|
|
(45)
|
|
Proceeds from exercise of stock options
|
|
|
28
|
|
|
|
1,407
|
|
Proceeds from revolving line of credit
|
|
|
1,000
|
|
|
|
—
|
|
Repayment of revolving line of credit
|
|
|
(3,514)
|
|
|
|
—
|
|
Proceeds from loan
|
|
|
1,395
|
|
|
|
921
|
|
Repayment of loan payable
|
|
|
(930)
|
|
|
|
—
|
|
Repurchases of Class B common stock from employees
|
|
|
(460)
|
|
|
|
(467)
|
|
Net cash used in
financing activities
|
|
|
(15,194)
|
|
|
|
(15,623)
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
|
|
(268)
|
|
|
|
1
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
|
|
4,630
|
|
|
|
(5,643)
|
|
Cash, cash
equivalents and restricted cash at beginning of year
|
|
|
38,554
|
|
|
|
44,197
|
|
Cash, cash
equivalents and restricted cash at end of year
|
|
$
|
43,184
|
|
|
$
|
38,554
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
|
Cash payments made
for interest
|
|
$
|
333
|
|
|
$
|
529
|
|
Cash payments made
for income taxes
|
|
$
|
741
|
|
|
$
|
702
|
|
Reconciliation of Non-GAAP Financial Measures
for the Fourth Quarter and Full Year 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 fourth quarter and full
year 2020, as well as for comparable periods, pro forma revenue and
income (loss) from operations for its Genie Retail Energy
International (GRE International) segment and, for on a
consolidated basis and for all segments, 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 measures 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 (loss) from operations are
not reflected in Genie Energy's consolidated revenue and expenses
(although 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 third quarter 2020 and third 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.
Pro forma revenue and pro forma income (loss) from operations
are used specifically to evaluate the performance of its GRE
International division. Management also used Adjusted EBITDA
to evaluate operating performance in relation to Genie Energy's
competitors. Disclosure of these 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.
The pro forma results facilitate evaluation of the results of
GRE International as if the results of its U.K joint venture, Orbit
Energy, were fully consolidated, which provides useful information
regarding the size, growth and financial performance of GRE
International businesses in aggregate. 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 (loss) 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 (loss) from operations and Adjusted EBITDA may not be
comparable to similarly titled measures reported by other
companies.
Following are the reconciliations of GRE International's pro
forma results and Adjusted EBITDA to its most directly comparable
GAAP measure. Pro forma revenue for the GRE International
segment is reconciled to the segment's revenue, and GRE
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)
|
|
4Q20
|
|
4Q19
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREI segment
revenue
|
|
$
31.8
|
|
$
5.8
|
|
$
49.6
|
|
$
16.6
|
|
|
plus
|
Orbit Energy
revenue
|
|
$
1.8
|
|
$
16.3
|
|
$
51.4
|
|
$
30.8
|
|
|
Pro forma GREI
segment revenue
|
|
$
33.6
|
|
$
22.2
|
|
$
101.1
|
|
$
47.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREI segment loss
from operations
|
|
$
(2.9)
|
|
$
(3.2)
|
|
$
(7.6)
|
|
$
(8.1)
|
|
|
plus
|
Orbit Energy loss
from operations
|
|
$
(0.2)
|
|
$
(2.6)
|
|
$
(9.8)
|
|
$
(11.4)
|
|
|
Pro forma GREI
segment loss from operations
|
|
$
(3.1)
|
|
$
(6.4)
|
|
$
(17.4)
|
|
$
(19.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA
|
|
Total
|
|
GRE
|
GES
|
GREI
|
CORP
|
Three months ended
December 31, 2020 (4Q20)
|
|
|
|
|
|
|
Net loss attributable
to Genie Energy Limited
|
$
(1,369)
|
|
|
|
|
|
Net income
attributable to non-controlling interests
|
3,425
|
|
|
|
|
|
Net income
|
$
2,056
|
|
|
|
|
|
Provision for income
taxes
|
2,752
|
|
|
|
|
|
Gain on acquisition
of subsidiary
|
(5,473)
|
|
|
|
|
|
Other income,
net
|
(251)
|
|
|
|
|
|
Interest
income
|
(59)
|
|
|
|
|
|
Interest
Expense
|
139
|
|
|
|
|
|
Equity in the net
income of equity method investees
|
(255)
|
|
|
|
|
|
Income from
operations
|
$
(1,092)
|
|
$
5,100
|
$
(982)
|
$
(2,931)
|
$ (2,280)
|
Add:
|
|
|
|
|
|
|
|
Stock-based
compensation
|
(203)
|
|
(40)
|
-
|
42
|
(205)
|
|
Depreciation and
amortization
|
1,329
|
|
118
|
11
|
1,138
|
62
|
|
Impairment
|
404
|
|
-
|
404
|
-
|
-
|
Subtract:
|
|
|
|
|
|
|
|
Equity in the net
income of equity method investees
|
(255)
|
|
-
|
-
|
-
|
(255)
|
Adjusted
EBITDA
|
$
693
|
|
$
5,179
|
$
(566)
|
$
(1,751)
|
$ (2,168)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
GRE
|
GES
|
GREI
|
CORP
|
Three months ended
September 30, 2020 (3Q20)
|
|
|
|
|
|
|
Net income
attributable to Genie Energy Limited
|
$
6,728
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
(531)
|
|
|
|
|
|
Net income
|
$
6,197
|
|
|
|
|
|
Provision for income
taxes
|
2,406
|
|
|
|
|
|
Other income,
net
|
(291)
|
|
|
|
|
|
Interest
expense
|
48
|
|
|
|
|
|
Interest
income
|
(21)
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
146
|
|
|
|
|
|
Income from
operations
|
$
8,485
|
|
$
12,333
|
$
(719)
|
$
(1,574)
|
$ (1,555)
|
Add:
|
|
|
|
|
|
|
|
Stock-based
compensation
|
447
|
|
172
|
|
68
|
207
|
|
Depreciation and
amortization
|
670
|
|
117
|
11
|
527
|
15
|
|
Impairment
|
|
|
|
|
|
-
|
Subtract:
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
146
|
|
|
|
|
146
|
Adjusted
EBITDA
|
$
9,456
|
|
$
12,622
|
$
(708)
|
$
(979)
|
$ (1,479)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
GRE
|
GES
|
GREI
|
CORP
|
Three months ended
December 31, 2019 (4Q19)
|
|
|
|
|
|
|
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)
|
$ (1,507)
|
Add:
|
|
|
|
|
|
|
|
Stock-based
compensation
|
(4)
|
|
117
|
|
(226)
|
105
|
|
Depreciation and
amortization
|
821
|
|
175
|
244
|
387
|
15
|
|
Impairment
|
400
|
|
|
400
|
|
-
|
Subtract:
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
2724
|
|
|
|
2,501
|
223
|
Adjusted
EBITDA
|
$
816
|
|
$
8,527
|
$
(539)
|
$
(5,562)
|
$ (1,610)
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
GRE
|
GES
|
GREI
|
CORP
|
Twelve months
ended December 31, 2020 (YTD 2020)
|
|
|
|
|
|
|
Net income
attributable to Genie Energy Limited
|
$
13,155
|
|
|
|
|
|
Net income
attributable to non-controlling interests
|
2,399
|
|
|
|
|
|
Net income
|
$
15,554
|
|
|
|
|
|
Provision for income
taxes
|
8,315
|
|
|
|
|
|
Gain on acquisition
of a subsidiary
|
(5,473)
|
|
|
|
|
|
Other income,
net
|
(640)
|
|
|
|
|
|
Interest
income
|
(190)
|
|
|
|
|
|
Interest
expense
|
328
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
1,443
|
|
|
|
|
|
Income from
operations
|
$
19,337
|
|
$
36,408
|
$ (2,471)
|
$
(7,632)
|
$ (6,968)
|
Add:
|
|
|
|
|
|
|
|
Stock-based
compensation
|
1,129
|
|
463
|
-
|
161
|
505
|
|
Depreciation and
amortization
|
3,548
|
|
465
|
326
|
2,650
|
107
|
|
Impairment
|
1,397
|
|
-
|
1,397
|
-
|
-
|
Subtract:
|
|
|
|
|
|
|
|
Equity in the net
loss (income) of equity method investees
|
1,443
|
|
-
|
-
|
1,502
|
(59)
|
Adjusted
EBITDA
|
$
23,967
|
|
$
37,336
|
$
(748)
|
$
(6,323)
|
$ (6,297)
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
GRE
|
GES
|
GREI
|
CORP
|
Twelve months
ended December 31, 2019 (YTD 2019)
|
|
|
|
|
|
|
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
|
530
|
|
|
|
|
|
Interest
income
|
(448)
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
4,830
|
|
|
|
|
|
Income (loss)
from operations
|
$
9,825
|
|
$
27,176
|
$ (2,895)
|
$
(8,133)
|
$ (6,323)
|
Add:
|
|
|
|
|
|
|
|
Stock-based
compensation
|
1,102
|
|
456
|
|
56
|
590
|
|
Depreciation and
amortization
|
3,589
|
|
703
|
1,008
|
1,819
|
59
|
|
Impairment of
goodwill
|
400
|
|
|
400
|
|
|
Subtract:
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
4,830
|
|
|
|
4,440
|
390
|
Adjusted
EBITDA
|
$
10,086
|
|
$
28,335
|
$ (1,487)
|
$ (10,698)
|
$ (6,064)
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/genie-energy-ltd-reports-fourth-quarter-and-full-year-2020-results-301245278.html
SOURCE Genie Energy Ltd.