NEWARK, N.J., May 6, 2021 /PRNewswire/ -- Genie Energy Ltd.
(NYSE: GNE, GNEPRA) reported record revenue of $135.3 million and a loss per diluted share of
$0.09 for the first quarter
2021.
CONSOLIDATED HIGHLIGHTS
(Throughout this release, 1Q21 results are compared to 1Q20
results unless otherwise noted)
- Global RCEs served increased by 49,000 or 12.1% year over to
year to 450,000. Global meters served increased by 40,000 or 7.6%
year over to year to 572,000.
- Consolidated revenue increased 30.1% to $135.3 million from $104.1
million driven by increased per meter consumption in
domestic markets and by the consolidation of Orbit Energy during
4Q20.
- Genie Retail Energy (GRE), Genie's domestic retail energy
supply business, generated income from operations of $1.2 million compared to $13.0 million in 1Q20. The 1Q21 results reflect a
negative impact of approximately $13.0
million attributable to the impact of a severe winter storm
and resultant spike in wholesale electricity rates in Texas.
- Genie Renewables, formerly Genie Energy Services, generated
income from operations of $0.6
million compared to $0.3
million in 1Q20 reflecting Genie's ongoing diversification
to higher margin solar solutions.
- Consolidated loss from operations was $6.6 million compared to income from operations
of $9.2 million in 1Q20. Consolidated
Adjusted EBITDA* was negative $4.5
million compared to positive Adjusted EBITDA* of
$10.3 million.
- The net loss attributable to Genie Energy common stockholders
was $2.4 million compared to net
income of $5.5 million in 1Q20.
- Genie purchased 146,720 shares of its Class B common stock at
$5.76 per share in a private
transaction following the quarter close.
COMMENTS OF MICHAEL STEIN, CEO
"As we discussed when we reported last quarter's earnings, the
first quarter was impacted by unusually severe weather events that
led to massive spikes in wholesale electricity prices in
Texas and Japan. The winter
storms in Texas and Japan had an aggregate negative impact on
income from operations of approximately $15.5 million. In Texas, where the negative impact of the storm
this quarter was approximately $13.0
million, our industry has borne a disproportionate share of
the financial burden. We remain hopeful that prospective
legislation, regulatory changes and/or litigation will provide
material relief.
"Genie Energy achieved record first quarter revenue. Our
meter and RCE counts continued to climb, and absent the
Texas storm's impact, our domestic
business would likely have achieved record income from operations
and Adjusted EBITDA*. Additionally, Genie Renewables,
formerly Genie Energy Services, continued to expand into higher
margin solar solutions offerings and delivered its highest level of
income from operations to date.
"After overcoming the challenges of the first quarter, we are
well positioned for strong cash generation and continued growth as
we look ahead to the balance of the year and beyond. Across
our business, the best is yet to come."
CONSOLIDATED RESULTS
Genie Energy
Consolidated Results
$ in millions,
except EPS
|
1Q21
|
4Q20
|
1Q20
|
|
1Q21-1Q20
Change
(%/$)
|
Revenue
|
$135.3
|
$102.9
|
$104.1
|
|
+30.1%
|
Gross
profit
|
$17.5
|
$22.0
|
$28.9
|
|
(39.4)%
|
Gross margin
percentage
|
13.0%
|
21.4%
|
27.8%
|
|
(1,480) BP
|
SG&A
expense
|
$24.1
|
$22.7
|
$19.5
|
|
+23.6%
|
Stock-based compensation included in SG&A
|
$0.6
|
$(0.2)
|
$0.5
|
|
+$0.1
|
Depreciation and amortization
|
$1.3
|
$1.3
|
$0.8
|
|
+$0.5
|
Bad debt
expense
|
$1.1
|
$1.5
|
$0.6
|
|
+$0.5
|
Impairment of
assets
|
-
|
$0.4
|
$0.2
|
|
$(0.2)
|
(Loss) income from
operations
|
$(6.6)
|
$(1.1)
|
$9.2
|
|
$(15.8)
|
Adjusted
EBITDA*
|
$(4.5)
|
$0.7
|
$10.3
|
|
$(14.9)
|
Equity in the net
loss in equity method investees**
|
$0.1
|
$0.3
|
$(0.4)
|
|
+$0.5
|
Provision for income
taxes
|
$(0.5)
|
$(2.8)
|
$(2.6)
|
|
+$2.1
|
Net (loss) income
attributable to Genie Energy common stockholders
|
$(2.4)
|
$(1.7)
|
$5.5
|
|
$(7.9)
|
(Loss) earnings per
diluted share attributable to Genie Energy common
stockholders
|
$(0.09)
|
$(0.06)
|
$0.20
|
|
$(0.29)
|
Net cash used in
operating activities
|
$(10.0)
|
$(0.9)
|
$(2.7)
|
|
$(7.2)
|
|
* Adjusted
EBITDA for all periods presented is a non-GAAP measure intended to
provide useful information that supplements the core operating
results in accordance with GAAP of Genie Energy or the relevant
segment. Please refer to the 'Reconciliation of Non-GAAP
Financial Measures' at the end of this release for an explanation
of Adjusted EBITDA as well as for reconciliations to its most
directly comparable GAAP measures.
|
|
** 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.
|
CUSTOMER BASE
Genie Energy's global RCE and meter base increased
year-over-year and sequentially driven by GRE International's
investment in customer acquisition, by customer acquisition
programs focused on higher consumption per meter markets in the
U.S. and by higher average per meter residential consumption driven
by the COVID-induced shift to work from home. Genie Energy's global
RCE and meter totals, including operations in the U.S.,
Finland, Sweden, the U.K. and Japan for all periods presented, are provided
in the chart below.
Global RCEs and
Meters (in thousands)
|
March 31,
2021
|
December 31,
2020
|
September 30,
2020
|
June 30,
2020
|
March 31,
2020
|
Electricity
RCEs
|
373
|
366
|
364
|
346
|
325
|
Natural gas
RCEs
|
77
|
75
|
78
|
75
|
76
|
Total
RCEs
|
450
|
440
|
442
|
421
|
401
|
|
|
|
|
|
|
Electricity
meters
|
460
|
454
|
445
|
429
|
421
|
Natural gas
meters
|
112
|
111
|
113
|
107
|
111
|
Total
meters
|
572
|
565
|
558
|
536
|
532
|
SEGMENT RESULTS
Genie Retail Energy (GRE)
GRE's financial results are summarized in the chart below:
GRE
$ in
millions
|
1Q21
|
4Q20
|
1Q20
|
|
1Q21-1Q20
Change
(%/$)
|
Total
revenue
|
$90.7
|
$69.9
|
$79.1
|
|
+14.6%
|
Electricity revenue
|
$73.4
|
$60.5
|
$63.1
|
|
+16.4%
|
Natural
gas revenue
|
$17.3
|
$9.4
|
$16.1
|
|
+7.5%
|
Gross
profit
|
$15.0
|
$17.9
|
$27.6
|
|
(45.8)%
|
Gross margin
percentage
|
16.5%
|
25.5%
|
34.9%
|
|
(1,840) BP
|
SG&A
expense
|
$13.8
|
$12.6
|
$14.6
|
|
(5.6)%
|
Depreciation and amortization
|
$0.1
|
$0.1
|
$0.1
|
|
NC
|
Bad debt
expense
|
$0.4
|
$0.5
|
$0.5
|
|
$(0.2)
|
Income from
operations
|
$1.2
|
$5.3
|
$13.0
|
|
$(11.8)
|
Adjusted
EBITDA*
|
$1.5
|
$5.4
|
$13.3
|
|
$(11.8)
|
GRE – KPIs and take-aways:
- Results in the quarter were materially impacted by Winter Storm Uri which led to spikes in the
Texas grid's wholesale electricity
prices in February 2021. The Company
estimates that the storm and associated regulatory surcharges had a
net negative impact on income from operations of approximately
$13.0 million compared to normalized
operating conditions. Genie Energy had estimated that the impact
would be $12.8 million when it
reported fourth quarter 2020 results.
- GRE's customer base at March 31,
2021 increased to 347,000 RCEs from 330,000 RCEs a year
earlier. Meters served decreased to 373,000 from 384,000. The
changes resulted from Genie's focus on meter acquisition
opportunities in geographies with higher average consumption per
meter and from higher per meter consumption in the past year due to
COVID-related factors.
- Gross meters added during 1Q21 totaled 62,000 compared to
69,000 in 1Q20 and 58,000 in 4Q20. The year over year decrease
largely reflected the impact of COVID-related public health
restrictions compared to the year ago quarter. The sequential
increase was enabled by the relaxation of those restrictions in
some jurisdictions and by the closing of an aggregation deal in
1Q21.
- Average monthly churn increased to 4.9% from 4.7% in 1Q20 but
decreased from 5.3% in 4Q20. Churn in the 4th quarter of
2020 was impacted by the expiration of an aggregation deal.
- Electricity revenue increased to $73.4
million from $63.1 million in
1Q20 driven by higher average per meter consumption partly offset
by lower revenue per kilowatt hour sold.
- Income from operations decreased to $1.2
million from $13.0 million and
Adjusted EBITDA* decreased to $1.5
million from $13.3 million in
1Q20.
- Excluding the direct impact of the Texas weather event, but without adjustments
for other market conditions, GRE's Adjusted EBITDA* would have been
approximately $14.5 million, a record
quarter for the business.
Genie Retail Energy International (GRE International)
Genie began to consolidate Orbit's results in its financial
reporting under the GRE International segment effective
October 8, 2020 following our
purchase of the outstanding interest in the venture. 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.
GRE
International
$ in
millions
|
1Q21
|
4Q20
|
1Q20
|
|
1Q21-1Q20
Change
(%/$)
|
Total
revenue
|
$42.2
|
$31.8
|
$7.0
|
|
+506.7%
|
Electricity revenue
|
$30.3
|
$23.4
|
$6.9
|
|
+339.1%
|
Natural
gas revenue
|
$11.8
|
$8.3
|
-
|
|
+$11.8
|
Gross profit
(loss)
|
$1.4
|
$4.4
|
$(0.3)
|
|
+$1.7
|
Gross margin
percentage
|
3.4%
|
14.0%
|
(4.1)%
|
|
+760 BP
|
SG&A
expense
|
$8.1
|
$7.4
|
$2.2
|
|
+$5.9
|
Depreciation & amortization
|
$1.2
|
$1.1
|
$0.5
|
|
+$0.7
|
Bad
debt
|
$0.7
|
$1.0
|
$0.1
|
|
+$0.6
|
Loss from
operations
|
$(6.7)
|
$(2.9)
|
$(2.5)
|
|
$(4.1)
|
Adjusted
EBITDA*
|
$(5.4)
|
$(1.8)
|
$(2.0)
|
|
$(3.4)
|
GRE International – KPIs and take-aways:
- GRE International's customer base at March 31, 2021 increased to 103,000 RCEs from
72,000 RCEs and to 199,000 meters from 148,000 meters a year
earlier led by growth in Scandinavia and the U.K.
- Revenue increased to $42.2
million compared to $7.0
million in 1Q20 primarily reflecting the consolidation of
Orbit Energy during 4Q20 as well as the significant growth of GRE
International's customer base. On a pro forma basis***,
inclusive of Orbit Energy's revenue, GRE International's revenue
was $26.6 million in 1Q20.
- Loss from operations increased to $6.7
million from $2.5 million in
1Q20 primarily impacted by a severe weather induced spike in
wholesale electricity rates which increased Genie Japan's supply
cost by approximately $2.5 million.
On a pro forma basis***, inclusive of Orbit Energy's loss from
operations, GRE International's loss from operations was
$5.5 million in 1Q20.
*** Pro forma results for 1Q20 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 Renewables
Genie Renewables (formerly Genie Energy Services) comprises
Genie Solar, a provider of
end-to-end customized solar solutions primarily for commercial
customers, Diversegy, a commercial energy consulting business,
CityCom Solar, a provider of community solar energy solutions and
Genie's interest in Prism Solar, a supplier of solar panels and
solutions.
- Revenue decreased to $2.5 million
from $18.0 million in 1Q20. 1Q20
results were dominated by high revenue, low margin Prism Solar
panel deliveries.
- Gross margin increased to 44.9% compared to 8.9% in 1Q20. The
increase reflects ongoing diversification to higher margin solar
solutions.
- Income from operations increased to $0.6
million compared to $0.3
million in 1Q20.
Corporate
- Corporate loss from operations was $1.7
million compared to a loss of $1.6
million in 1Q20.
BALANCE SHEET AND CASH FLOW HIGHLIGHTS
At March 31, 2021, Genie Energy
had $191.3 million in total assets,
including $41.7 million in cash,
restricted cash and marketable equity securities. Liabilities
totaled $107.8 million and working
capital (current assets less current liabilities) totaled
$35.4 million. Non-current
liabilities were $3.5
million.
Cash used in operating activities in 1Q21 was $10.0 million compared to $2.7 million in 1Q20. The increase was
driven by the weather events in Texas and Japan.
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,
May 6, 2021, 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 1-800-945-8198
(toll-free from the US) or 1-212-231-2934 (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:
21993711. The replay will remain available through May 13, 2021. A recording of the call - in
MP3 format – also will 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
Renewables division comprises Genie Solar Energy, a provider of
end-to-end customized solar solutions primarily for commercial
customers, Diversegy, a commercial energy consulting business,
CityCom Solar, a provider of community solar energy solutions and
Genie's interest in Prism Solar, a supplier of solar panels and
solutions.. For more information, visit Genie.com.
In this press release, all statements that are not purely
about historical facts, including, but not limited to, those in
which we use the words "believe," "anticipate," "expect," "plan,"
"intend," "estimate, "target" and similar expressions, are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. While these
forward-looking statements represent our current judgment of what
may happen in the future, actual results may differ materially from
the results expressed or implied by these statements due to
numerous important factors, including, but not limited to, those
described in our most recent report on SEC Form 10-K (under the
headings "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations"), which may be
revised or supplemented in subsequent reports on SEC Forms 10-Q and
8-K. We are under no obligation, and expressly disclaim any
obligation, to update the forward-looking statements in this press
release, whether as a result of new information, future events or
otherwise.
GENIE ENERGY
LTD.
CONSOLIDATED
BALANCE SHEETS
(in thousands, except
per share amounts)
|
|
|
March 31,
2021
|
|
|
December 31,
2020
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
24,371
|
|
|
$
|
36,913
|
|
Restricted
cash—short-term
|
|
6,827
|
|
|
|
6,271
|
|
Marketable equity
securities
|
|
10,455
|
|
|
|
5,089
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $9,891 and
$8,793 at
March 31, 2021 and December 31, 2020, respectively
|
|
67,691
|
|
|
|
60,778
|
|
Inventory
|
|
19,020
|
|
|
|
16,930
|
|
Prepaid
expenses
|
|
5,707
|
|
|
|
4,633
|
|
Other current
assets
|
|
5,724
|
|
|
|
3,206
|
|
Total current
assets
|
|
139,795
|
|
|
|
133,820
|
|
Property and
equipment, net
|
|
226
|
|
|
|
259
|
|
Goodwill
|
|
25,977
|
|
|
|
25,929
|
|
Other intangibles,
net
|
|
10,059
|
|
|
|
11,645
|
|
Deferred income tax
assets, net
|
|
4,652
|
|
|
|
4,882
|
|
Other
assets
|
|
10,548
|
|
|
|
10,804
|
|
Total
assets
|
$
|
191,257
|
|
|
$
|
187,339
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Loan
payable
|
$
|
—
|
|
|
$
|
1,453
|
|
Trade accounts
payable
|
|
42,016
|
|
|
|
43,005
|
|
Accrued
expenses
|
|
50,654
|
|
|
|
42,762
|
|
Contract
liability
|
|
3,758
|
|
|
|
5,609
|
|
Income taxes
payable
|
|
2,103
|
|
|
|
1,893
|
|
Due to IDT
Corporation, net
|
|
188
|
|
|
|
257
|
|
Other current
liabilities
|
|
5,662
|
|
|
|
2,494
|
|
Total current
liabilities
|
|
104,381
|
|
|
|
97,473
|
|
Other
liabilities
|
|
3,452
|
|
|
|
3,787
|
|
Total
liabilities
|
|
107,833
|
|
|
|
101,260
|
|
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 March 31, 2021 and December 31,
2020
|
|
19,743
|
|
|
|
19,743
|
|
Class A common
stock, $0.01 par value; authorized shares—35,000; 1,574 shares
issued and
outstanding at March 31, 2021 and December 31, 2020
|
|
16
|
|
|
|
16
|
|
Class B common stock,
$0.01 par value; authorized shares—200,000; 26,106 and 25,966
shares
issued and 24,786 and 24,646 shares outstanding at March 31,
2021 and December 31, 2020, respectively
|
|
261
|
|
|
|
260
|
|
Additional paid-in
capital
|
|
141,496
|
|
|
|
140,746
|
|
Treasury stock, at
cost, consisting of 1,320 shares of Class B common stock at March
31, 2021
and December 31, 2020
|
|
(9,839)
|
|
|
|
(9,839)
|
|
Accumulated other
comprehensive income
|
|
3,255
|
|
|
|
3,827
|
|
Accumulated
deficit
|
|
(59,014)
|
|
|
|
(56,658)
|
|
Total Genie Energy
Ltd. stockholders' equity
|
|
95,918
|
|
|
|
98,095
|
|
Noncontrolling interests
|
|
(12,494)
|
|
|
|
(12,016)
|
|
Total
equity
|
|
83,424
|
|
|
|
86,079
|
|
Total liabilities and
equity
|
$
|
191,257
|
|
|
$
|
187,339
|
|
GENIE ENERGY
LTD.
CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
|
2021
|
|
|
2020
|
|
|
(in thousands,
except per
share data)
|
|
Revenues:
|
|
|
|
|
|
Electricity
|
$
|
103,671
|
|
|
$
|
69,972
|
|
Natural
gas
|
|
29,072
|
|
|
|
16,070
|
|
Other
|
|
2,598
|
|
|
|
18,009
|
|
Total
revenues
|
|
135,341
|
|
|
|
104,051
|
|
Cost of
revenues
|
|
117,812
|
|
|
|
75,146
|
|
Gross
profit
|
|
17,529
|
|
|
|
28,905
|
|
Operating expenses
and losses:
|
|
|
|
|
|
|
|
Selling, general and
administrative (i)
|
|
24,104
|
|
|
|
19,499
|
|
Impairment of
assets
|
|
—
|
|
|
|
192
|
|
(Loss) Income from
operations
|
|
(6,575)
|
|
|
|
9,214
|
|
Interest
income
|
|
84
|
|
|
|
128
|
|
Interest
expense
|
|
(182)
|
|
|
|
(123)
|
|
Equity in the net
income (loss) in equity method investees, net
|
|
110
|
|
|
|
(379)
|
|
Unrealized gain on
marketable equity securities and investments
|
|
4,107
|
|
|
|
—
|
|
Other income,
net
|
|
297
|
|
|
|
150
|
|
(Loss) Income before
income taxes
|
|
(2,159)
|
|
|
|
8,990
|
|
Provision for income
taxes
|
|
(535)
|
|
|
|
(2,569)
|
|
Net (loss)
income
|
|
(2,694)
|
|
|
|
6,421
|
|
Net (loss) income
attributable to noncontrolling interests
|
|
(708)
|
|
|
|
589
|
|
Net (loss) income
attributable to Genie Energy Ltd.
|
|
(1,986)
|
|
|
|
5,832
|
|
Dividends on
preferred stock
|
|
(370)
|
|
|
|
(370)
|
|
Net (loss) income
attributable to Genie Energy Ltd. common stockholders
|
$
|
(2,356)
|
|
|
$
|
5,462
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings per
share attributable to Genie Energy Ltd. common
stockholders:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.09)
|
|
|
$
|
0.21
|
|
Diluted
|
$
|
(0.09)
|
|
|
$
|
0.20
|
|
Weighted-average
number of shares used in calculation of (loss) earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
|
26,004
|
|
|
|
26,108
|
|
Diluted
|
|
26,004
|
|
|
|
26,749
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
—
|
|
|
$
|
0.075
|
|
(i) Stock-based
compensation included in selling, general and administrative
expenses
|
$
|
589
|
|
|
$
|
483
|
|
GENIE ENERGY
LTD.
CONSOLIDATED
STATEMENTS OF CASH
FLOWS (Unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
(in
thousands)
|
|
Operating
activities
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(2,694)
|
|
|
$
|
6,421
|
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,331
|
|
|
|
826
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
192
|
|
Deferred income
taxes
|
|
|
230
|
|
|
|
2,353
|
|
Provision for doubtful
accounts receivable
|
|
|
1,126
|
|
|
|
608
|
|
Unrealized gain
marketable equity securities and investment
|
|
|
(4,107)
|
|
|
|
—
|
|
Stock-based
compensation
|
|
|
589
|
|
|
|
483
|
|
Equity in the net
(income) loss in equity method investees
|
|
|
(110)
|
|
|
|
379
|
|
Gain on
deconsolidation of subsidiaries
|
|
|
—
|
|
|
|
(98)
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
(9,904)
|
|
|
|
3,719
|
|
Inventory
|
|
|
(2,090)
|
|
|
|
(1,429)
|
|
Prepaid
expenses
|
|
|
(1,380)
|
|
|
|
(1,356)
|
|
Other current assets
and other assets
|
|
|
888
|
|
|
|
(8,473)
|
|
Trade accounts
payable, accrued expenses and other current liabilities
|
|
|
7,885
|
|
|
|
3,344
|
|
Contract
liability
|
|
|
(1,859)
|
|
|
|
(9,648)
|
|
Due to IDT
Corporation
|
|
|
(68)
|
|
|
|
(244)
|
|
Income taxes
payable
|
|
|
210
|
|
|
|
206
|
|
Net cash used in
operating activities
|
|
|
(9,953)
|
|
|
|
(2,717)
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(20)
|
|
|
|
(5)
|
|
Purchase of marketable
equity securities
|
|
|
(1,000)
|
|
|
|
—
|
|
Repayment of notes
receivable
|
|
|
13
|
|
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(1,007)
|
|
|
|
(5)
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(370)
|
|
|
|
(370)
|
|
Proceeds from
revolving line of credit
|
|
|
—
|
|
|
|
1,000
|
|
Purchases of Class B
common stock
|
|
|
—
|
|
|
|
(88)
|
|
Repayment of notes
payable
|
|
|
—
|
|
|
|
(9)
|
|
Net cash (used in)
provided by used in financing activities
|
|
|
(370)
|
|
|
|
533
|
|
Effect of exchange
rate changes on cash, cash equivalents, and restricted
cash
|
|
|
(69)
|
|
|
|
23
|
|
Net increase in cash,
cash equivalents, and restricted cash, including cash balances
classified as held
for sale
|
|
|
(11,399)
|
|
|
|
(2,166)
|
|
Less: Cash balances
classified as held for sale
|
|
|
(587)
|
|
|
|
—
|
|
Net decrease in cash,
cash equivalents, and restricted cash
|
|
|
(11,986)
|
|
|
|
(2,166)
|
|
Cash, cash
equivalents, and restricted cash at beginning of period
|
|
|
43,184
|
|
|
|
38,554
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
|
$
|
31,198
|
|
|
$
|
36,388
|
|
Reconciliation of Non-GAAP Financial Measures
for the First Quarter 2021
In addition to disclosing financial results that are determined
in accordance with generally accepted accounting principles in
the United States of America
(GAAP), Genie Energy disclosed for the first quarter 2021, as well
as for comparable periods, Adjusted EBITDA on a consolidated basis
and for all segments. In addition, Genie Energy provided pro
forma revenue and income (loss) from operations for its Genie
Retail Energy International (GRE International) segment for the
first quarter of 2020. Adjusted EBITDA and pro forma
revenue and income (loss) from operations 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 subsidiary and former joint
venture operating in the United
Kingdom. GAAP results for Orbit Energy were accounted for
under the equity method of accounting prior to Genie Energy's
purchase of the outstanding interest in Orbit Energy on
October 8, 2020. Under this method,
Genie Energy recorded its share in the net income or loss of the
venture. Therefore, revenue generated, expenses incurred and income
(loss) from operations were not reflected in Genie Energy's
consolidated revenue and expenses (although Orbit Energy's
customers were and are included in metrics regarding our customer
base). Pro forma results were calculated by adding the result
for Orbit Energy to its corresponding GAAP result. Pro forma
results are provided for the first quarter 2020 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, had been fully consolidated in the first quarter of 2020,
which provides useful comparative information regarding the size,
growth and financial performance of GRE International businesses in
aggregate. In contrast, GAAP results for the first quarter of
2020 only included 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
|
1Q20
|
GREI segment
revenue
|
$
7.0
|
plus Orbit
revenue
|
$
19.6
|
Pro forma GREI
segment revenue
|
$
26.6
|
|
|
GREI segement loss
from operations
|
$
(2.5)
|
plus Orbit energy
loss from operations
|
$
(3.0)
|
Pro forma GREI
segment loss from operations
|
$
(5.5)
|
Reconciliation of Adjusted EBITDA
|
|
Total
|
|
GRE
|
|
Genie R
enewables
|
|
GREI
|
|
CORP
|
Three months ended
March 31, 2021 (1Q21)
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Genie Energy Limited
|
$
(1,986)
|
|
|
|
|
|
|
|
|
Net income
attributable to non-controlling interests
|
(708)
|
|
|
|
|
|
|
|
|
Net income
|
$
(2,694)
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
535
|
|
|
|
|
|
|
|
|
Unrealized gain on
marketable equity securities and investments
|
(4,107)
|
|
|
|
|
|
|
|
|
Other income,
net
|
(297)
|
|
|
|
|
|
|
|
|
Interest
income
|
(84)
|
|
|
|
|
|
|
|
|
Interest
Expense
|
182
|
|
|
|
|
|
|
|
|
Equity in the net
income of equity method investees
|
(110)
|
|
|
|
|
|
|
|
|
Income from
operations
|
$
(6,575)
|
|
$
1,204
|
|
$
559
|
|
$
(6,660)
|
|
$
(1,678)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
589
|
|
162
|
|
-
|
|
32
|
|
395
|
|
Depreciation and
amortization
|
1,331
|
|
118
|
|
12
|
|
1,202
|
|
0
|
|
Impairment
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Subtract:
|
|
|
|
|
|
|
|
|
|
|
Equity in the net
income of equity method investees
|
(110)
|
|
-
|
|
-
|
|
-
|
|
(110)
|
Adjusted
EBITDA
|
$
(4,544)
|
|
$
1,483
|
|
$
571
|
|
$
(5,427)
|
|
$
(1,172)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
GRE
|
|
Genie
Renewables
|
|
GREI
|
|
CORP
|
Three months ended
December 31, 2020 (4Q20)
|
|
|
|
|
|
|
|
|
|
Net income
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 a subsidiary
|
(5,473)
|
|
|
|
|
|
|
|
|
Other income,
net
|
(251)
|
|
|
|
|
|
|
|
|
Interest
income
|
(59)
|
|
|
|
|
|
|
|
|
Interest
expense
|
139
|
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
(255)
|
|
|
|
|
|
|
|
|
Income from
operations
|
$
(1,092)
|
|
$
5,306
|
|
$
(1,187)
|
|
$
(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
loss (income) of equity method investees
|
(255)
|
|
-
|
|
-
|
|
-
|
|
(255)
|
Adjusted
EBITDA
|
$
693
|
|
$
5,384
|
|
$
(772)
|
|
$
(1,751)
|
|
$
(2,168)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
GRE
|
|
Genie
Renewables
|
|
GREI
|
|
CORP
|
Three months ended
March 31, 2020 (1Q20)
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Genie Energy Limited
|
$
5,832
|
|
|
|
|
|
|
|
|
Net income
attributable to non-controlling interests
|
589
|
|
|
|
|
|
|
|
|
Net income
|
$
6,421
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
2,569
|
|
|
|
|
|
|
|
|
Other income,
net
|
(150)
|
|
|
|
|
|
|
|
|
Interest
income
|
123
|
|
|
|
|
|
|
|
|
Interest
expense
|
(128)
|
|
|
|
|
|
|
|
|
Equity in the net
loss of equity method investees
|
379
|
|
|
|
|
|
|
|
|
Income from
operations
|
$
9,214
|
|
$
13,017
|
|
$
342
|
|
$
(2,520)
|
|
$
(1,625)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
483
|
|
156
|
|
-
|
|
37
|
|
290
|
|
Depreciation and
amortization
|
826
|
|
112
|
|
208
|
|
490
|
|
16
|
|
Impairment
|
192
|
|
-
|
|
192
|
|
-
|
|
-
|
Subtract:
|
|
|
|
|
|
|
|
|
|
|
Equity in the net
loss (income) of equity method investees
|
379
|
|
-
|
|
-
|
|
-
|
|
379
|
Adjusted
EBITDA
|
$
10,336
|
|
$
13,285
|
|
$
742
|
|
$
(1,993)
|
|
$
(1,698)
|
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SOURCE Genie Energy Ltd.