NEWARK, N.J., Aug. 5, 2021 /PRNewswire/ -- Genie
Energy, Ltd. (NYSE: GNE, GNEPRA), a leading retail energy provider
in deregulated markets in the U.S. and Europe and a provider of renewables solutions
in the U.S., today announced results for its second quarter – the
three months ended June 30, 2021.
"We generated very strong net income and global customer base
expansion in the second quarter driven by organic meter growth in
our international operations as they moved towards profitability,"
said Michael Stein, Chief Executive
Officer. "In the U.S., we were encouraged by the durability of the
elevated consumption levels we've experienced in recent quarters
and by several states moving to re-open for door-to-door marketing,
an important sales channel for meter acquisition."
Second Quarter 2021 Highlights
- Revenue of $97.7 million versus
$76.1 million in the year-ago
quarter;
- Gross profit and gross margin of $23.8
million and 24.3%, respectively, versus $19.5 million and 25.6%, respectively, in the
year-ago quarter;
- Income from operations and operating margin of $1.4 million and 1.4%, respectively, versus
$2.7 million and 3.6%, respectively,
in the year-ago quarter;
- Net income attributable to GNE common stockholders and earnings
per share (EPS) of $5.0 million and
$0.19 per diluted share versus
$1.6 million and $0.06, respectively, in the year-ago
quarter. Net income in the second quarter included a gain on
the sale of the operations in Japan.
- Adjusted EBITDA1 of $3.1
million versus $3.5 million in
the year-ago quarter;
- Re-purchased 393,000 shares of GNE common stock.
Select Financial
Metrics: Q2 2021 compared to Q2 2020*
|
(in $M
except for EPS)
|
Q221
|
Q220
|
Change
|
Total
Revenue
|
$97.7
|
$76.1
|
28.4%
|
Genie Retail - US
(GRE)
|
$67.0
|
$66.5
|
0.8%
|
Electricity
|
$61.9
|
$61.1
|
1.3%
|
Natural
Gas
|
$5.1
|
$5.4
|
(5.8)%
|
Genie Retail -
International (GREI)
|
$28.4
|
$5.0
|
463.5%
|
Electricity
|
$21.4
|
$4.8
|
343.4%
|
Natural
Gas
|
$6.7
|
$0.0
|
nm
|
Genie
Renewables
|
$2.3
|
$4.6
|
(48.7)%
|
Gross
Margin
|
24.3%
|
25.6%
|
(130bp)
|
Genie Retail - US
(GRE)
|
27.4%
|
25.7%
|
170bp
|
Genie Retail -
International (GREI)
|
15.9%
|
38.0%
|
(2210bp)
|
Genie
Renewables
|
39.4%
|
11.4%
|
2800bp
|
Income from
Operations
|
$1.4
|
$2.7
|
(50.3)%
|
Operating
Margin
|
1.4%
|
3.6%
|
-370bp
|
Net Income
Attributable to Genie Energy Ltd. Common
Stockholders
|
$5.0
|
$1.6
|
213.7%
|
Diluted Earnings
Per Share
|
$0.19
|
$0.06
|
$0.13
|
Adjusted
EBITDA1
|
$3.1
|
$3.5
|
(11.5)%
|
Cash Flow from
Operating Activities
|
$4.1
|
$16.4
|
(75.0)%
|
nm = not
measurable/meaningful
|
|
|
|
*Numbers may not add
due to rounding
|
|
|
|
Select Business
Metrics: 2021 versus 2020 as of 6/30/21
|
Units in
1000s
|
Q221
|
Q220
|
Change
|
Retail Performance
Metrics:
|
|
|
|
Retail Customer
Equivalents (RCE)
|
436
|
418
|
4.3%
|
Genie Retail - US
(GRE)
|
330
|
343
|
(3.8)%
|
Electricity
|
272
|
288
|
(5.6)%
|
Natural
Gas
|
58
|
55
|
5.5%
|
Genie Retail -
International (GREI)
|
106
|
76
|
39.5%
|
Electricity
|
82
|
55
|
49.1%
|
Natural
Gas
|
24
|
21
|
14.3%
|
Meters in
1000s units
|
554
|
522
|
6.1%
|
Genie Retail - US
(GRE)
|
361
|
374
|
(3.5)%
|
Electricity
|
292
|
311
|
(6.1)%
|
Natural
Gas
|
69
|
64
|
7.8%
|
Genie Retail -
International (GREI)
|
193
|
147
|
31.3%
|
Electricity
|
141
|
105
|
34.3%
|
Natural
Gas
|
52
|
43
|
20.9%
|
GRE Average
Monthly Churn - Meters
|
|
|
|
Gross
Sales
|
35
|
40
|
(12.5)%
|
Churn
|
3.8%
|
3.9%
|
10bps
|
Genie Retail Energy (GRE) delivered solid results for the
quarter, driven by continued strong overall consumption within its
residential electric meter base. While gross meter
acquisitions have not yet returned to pre-COVID levels, churn
remained below pre-COVID levels due to remaining restrictions on
door-to-door marketing across the industry that lead to fewer
customers switching suppliers.
Genie Retail Energy International's (GREI) strong revenue growth
was driven by a combination of organic meter growth and the full
consolidation of results related to the purchase of the
non-controlled interest in Orbit Energy in October 2020, which previously had not been
consolidated. This strong growth came despite the revenue impact
from the sale of the Company's Japanese operations early in the
second quarter of 2021.
Genie Renewables (formerly Genie Energy Services) reported
increased gross margin as the segment shifted to
higher-margin solar projects. Revenue decreased due to the
fulfillment of a large order in the prior year's quarter.
1 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.
Trended Financial
Information:*
|
(in $M
except for EPS, RCE and Meters)
|
Q120
|
Q220
|
Q320
|
Q420
|
Q121
|
Q221
|
|
2019
|
2020
|
YTD
2021
|
Total
Revenue
|
$104.1
|
$76.1
|
$96.3
|
$102.9
|
$135.3
|
$97.7
|
|
$315.3
|
$379.3
|
$233.0
|
Genie Retail - US
(GRE)
|
$79.1
|
$66.5
|
$88.9
|
$69.9
|
$90.7
|
$67.0
|
|
$286.6
|
$305.3
|
$157.6
|
Electricity
|
$63.1
|
$61.1
|
$86.2
|
$60.5
|
$73.4
|
$61.9
|
|
$246.7
|
$271.7
|
$135.3
|
Natural
Gas
|
$16.1
|
$5.4
|
$2.7
|
$9.4
|
$17.3
|
$5.1
|
|
$39.9
|
$33.6
|
$22.4
|
Genie Retail -
International (GREI)
|
$6.7
|
$5.0
|
$5.8
|
$31.8
|
$42.2
|
$28.4
|
|
$16.6
|
$49.6
|
$70.6
|
Electricity
|
$6.9
|
$4.8
|
$5.6
|
$23.4
|
$30.3
|
$21.4
|
|
$16.4
|
$40.7
|
$51.7
|
Natural
Gas
|
$0.0
|
$0.0
|
$0.0
|
$8.3
|
$11.8
|
$6.7
|
|
$0.0
|
$8.3
|
$18.5
|
Genie
Renewables
|
$18.0
|
$4.6
|
$1.6
|
$1.1
|
$2.5
|
$2.3
|
|
$12.1
|
$24.4
|
$4.8
|
Gross
Margin
|
27.8%
|
25.6%
|
28.3%
|
21.4%
|
12.9%
|
24.3%
|
|
26.3%
|
25.8%
|
17.7%
|
Genie Retail - US
(GRE)
|
43.7%
|
25.7%
|
29.0%
|
25.6%
|
16.5%
|
27.4%
|
|
28.1%
|
28.9%
|
20.2%
|
Genie Retail -
International (GREI)
|
-4.5%
|
38.0%
|
19.0%
|
13.8%
|
3.3%
|
15.9%
|
|
1.8%
|
14.5%
|
8.5%
|
Genie
Renewables
|
8.9%
|
11.4%
|
27.1%
|
-29.0%
|
44.9%
|
39.4%
|
|
15.7%
|
9.4%
|
42.2%
|
Income (loss) from
Operations
|
$9.2
|
$2.7
|
$8.5
|
($1.1)
|
($6.6)
|
$1.4
|
|
$9.8
|
$19.3
|
($5.2)
|
Operating
Margin
|
8.8%
|
3.6%
|
8.8%
|
-1.1%
|
-4.9%
|
1.4%
|
|
3.1%
|
5.1%
|
-2.2%
|
Net income
attributable to Genie Energy Ltd. common
stockholders
|
$5.5
|
$1.6
|
$6.4
|
($1.7)
|
($2.4)
|
$5.0
|
|
$2.7
|
$11.7
|
$2.6
|
Diluted Earnings
(Loss) Per Share
|
$0.20
|
$0.06
|
$0.24
|
($0.06)
|
($0.09)
|
$0.19
|
|
$0.10
|
$0.44
|
$0.10
|
Cash Flow from
Operating Activities
|
($2.7)
|
$16.3
|
$10.4
|
($0.9)
|
($10.0)
|
$4.1
|
|
$15.8
|
$23.1
|
($5.9)
|
Retail Performance
Metrics:
|
|
|
|
|
|
|
|
|
|
|
Retail Customer
Equivalents (RCE) in 1000s
|
398
|
418
|
437
|
435
|
446
|
436
|
|
nm
|
nm
|
nm
|
Genie Retail - US
(GRE)
|
330
|
343
|
350
|
337
|
347
|
330
|
|
nm
|
nm
|
nm
|
Electricity
|
272
|
288
|
294
|
284
|
291
|
272
|
|
nm
|
nm
|
nm
|
Natural
Gas
|
58
|
55
|
56
|
53
|
56
|
58
|
|
nm
|
nm
|
nm
|
Genie Retail -
International (GREI)
|
69
|
76
|
87
|
98
|
98
|
106
|
|
nm
|
nm
|
nm
|
Electricity
|
50
|
55
|
66
|
76
|
77
|
82
|
|
nm
|
nm
|
nm
|
Natural
Gas
|
19
|
21
|
22
|
21
|
21
|
24
|
|
nm
|
nm
|
nm
|
Meters in 1000s
units
|
520
|
522
|
543
|
547
|
555
|
554
|
|
nm
|
nm
|
nm
|
Genie Retail - US
(GRE)
|
384
|
374
|
375
|
368
|
373
|
361
|
|
nm
|
nm
|
nm
|
Electricity
|
313
|
311
|
309
|
303
|
308
|
292
|
|
nm
|
nm
|
nm
|
Natural
Gas
|
71
|
64
|
67
|
65
|
65
|
69
|
|
nm
|
nm
|
nm
|
Genie Retail -
International (GREI)
|
136
|
147
|
167
|
179
|
182
|
193
|
|
nm
|
nm
|
nm
|
Electricity
|
96
|
105
|
121
|
132
|
135
|
141
|
|
nm
|
nm
|
nm
|
Natural
Gas
|
40
|
43
|
46
|
47
|
47
|
52
|
|
nm
|
nm
|
nm
|
Average Monthly
Churn - Meters
|
|
|
|
|
|
|
|
|
|
|
Genie Retail - US
(GRE)
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
69
|
40
|
44
|
59
|
60
|
35
|
|
308
|
212
|
95
|
Churn
|
4.3%
|
3.9%
|
3.7%
|
5.3%
|
4.9%
|
3.8%
|
|
5.3%
|
4.4%
|
4.3%
|
nm = not
measurable/meaningful
|
|
|
|
|
|
|
|
|
|
|
*Numbers may not add
due to rounding
|
|
|
|
|
|
|
|
|
|
|
Strategic Update
Genie is conducting a strategic review of its businesses in part
to address the different investment profiles of its U.S. and
European businesses and to enhance shareholder value across its
operations. As one element of this review, the Company is
contemplating opportunities to separate GREI from GRE and Genie
Renewables through a spin-off of GREI into a separate,
publicly-traded entity. If a transaction is consummated, Genie
believes that shareholders could benefit from the potential
spin-off of GREI with adequate capital and a dedicated management
team empowered to gain scale and accelerate growth in its current
and prospective European markets. The remaining US operations, GRE
and Genie Renewables would then be positioned to accelerate their
respective growth plans. Management will provide additional details
on its strategic review during today's earnings conference
call.
Q2 2021 Commentary from Michael
Stein, CEO
"Genie delivered a very strong second quarter with robust top
and bottom-line results. As we look to the second half of the year,
we are focused on delivering strong cash flow and bottom-line
performance. We are encouraged by the improvement in the
marketing environment in the US and are confident that we can
return to our previous levels of meter growth once all sales
channels are fully re-opened. Internationally, following the
successful sale of our Japanese operations, we expect our remaining
business to continue to drive strong growth while demonstrating
improving profitability, which we believe makes GREI an attractive
investment on a stand-alone basis. We expect to have more clarity
on strategic direction as our plans are finalized."
Earnings Announcement and Supplemental Information
Genie's earnings release will be filed on Form 8-K and posted on
the Genie investor relations website (Genie Investor Relations
Page) at approximately 7:30 a.m.
Eastern on August 5, 2021. Management
will host an earnings conference call beginning at 8:30 a.m. Eastern. Management's
presentation of the results, outlook and strategy will be followed
by Q&A with investors.
To participate in the conference call, dial 1-877-545-0320
(toll-free from the US) or 1-973-528-0016 (international) and
request the Genie Energy conference call.
Approximately three hours after the call, a call replay will be
accessible by dialing 1-877-481-4010 (toll-free from the US) or
1-919-882-2331 (international) and providing the replay PIN: 42242.
The replay will remain available through August 19, 2021. A recording of the call
also will be available for playback on the "Investors" section of
the Genie Energy website.
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
commercials 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)
|
|
June 30,
2021
|
|
|
December 31,
2020
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
31,446
|
|
|
$
|
36,913
|
|
Restricted
cash—short-term
|
|
6,121
|
|
|
|
6,271
|
|
Marketable equity
securities
|
|
13,370
|
|
|
|
5,089
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $11,268 and
$8,793 at June 30, 2021 and December 31, 2020,
respectively
|
|
59,659
|
|
|
|
60,778
|
|
Inventory
|
|
15,653
|
|
|
|
16,930
|
|
Prepaid
expenses
|
|
5,385
|
|
|
|
4,633
|
|
Other current
assets
|
|
4,956
|
|
|
|
3,206
|
|
Total current
assets
|
|
136,590
|
|
|
|
133,820
|
|
Property and
equipment, net
|
|
269
|
|
|
|
259
|
|
Goodwill
|
|
26,041
|
|
|
|
25,929
|
|
Other intangibles,
net
|
|
9,177
|
|
|
|
11,645
|
|
Investment in joint
venture
|
|
936
|
|
|
|
—
|
|
Deferred income tax
assets, net
|
|
1,908
|
|
|
|
4,882
|
|
Other
assets
|
|
10,205
|
|
|
|
10,804
|
|
Total
assets
|
$
|
185,126
|
|
|
$
|
187,339
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Loan
payable
|
$
|
—
|
|
|
$
|
1,453
|
|
Trade accounts
payable
|
|
36,141
|
|
|
|
43,005
|
|
Accrued
expenses
|
|
49,104
|
|
|
|
42,762
|
|
Contract
liability
|
|
5,217
|
|
|
|
5,609
|
|
Income taxes
payable
|
|
2,518
|
|
|
|
1,893
|
|
Due to IDT
Corporation, net
|
|
304
|
|
|
|
257
|
|
Other current
liabilities
|
|
2,011
|
|
|
|
2,494
|
|
Total current
liabilities
|
|
95,295
|
|
|
|
97,473
|
|
Other
liabilities
|
|
3,331
|
|
|
|
3,787
|
|
Total
liabilities
|
|
98,626
|
|
|
|
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 June 30, 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 June 30, 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 24,393 and 24,646 shares outstanding at June 30,
2021 and December 31, 2020, respectively
|
|
261
|
|
|
|
260
|
|
Additional paid-in
capital
|
|
142,056
|
|
|
|
140,746
|
|
Treasury stock, at
cost, consisting of 1,713 and 1,320 shares of Class B common stock
at June 30, 2021 and December 31, 2020, respectively
|
|
(12,274)
|
|
|
|
(9,839)
|
|
Accumulated other
comprehensive income
|
|
3,178
|
|
|
|
3,827
|
|
Accumulated
deficit
|
|
(54,017)
|
|
|
|
(56,658)
|
|
Total Genie Energy
Ltd. stockholders' equity
|
|
98,963
|
|
|
|
98,095
|
|
Noncontrolling interests
|
|
(12,463)
|
|
|
|
(12,016)
|
|
Total
equity
|
|
86,500
|
|
|
|
86,079
|
|
Total liabilities and
equity
|
$
|
185,126
|
|
|
$
|
187,339
|
|
GENIE ENERGY
LTD. CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
2021
|
|
|
2020
|
|
|
|
(in thousands,
except per share data)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Electricity
|
|
$
|
83,314
|
|
|
$
|
65,906
|
|
|
$
|
186,985
|
|
|
$
|
135,877
|
|
Natural
gas
|
|
|
11,776
|
|
|
|
5,396
|
|
|
|
40,848
|
|
|
|
21,467
|
|
Other
|
|
|
2,616
|
|
|
|
4,773
|
|
|
|
5,214
|
|
|
|
22,782
|
|
Total
revenues
|
|
|
97,706
|
|
|
|
76,075
|
|
|
|
233,047
|
|
|
|
180,126
|
|
Cost of
revenues
|
|
|
73,940
|
|
|
|
56,588
|
|
|
|
191,752
|
|
|
|
131,734
|
|
Gross
profit
|
|
|
23,766
|
|
|
|
19,487
|
|
|
|
41,295
|
|
|
|
48,392
|
|
Operating expenses
and losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative (i)
|
|
|
22,410
|
|
|
|
15,956
|
|
|
|
46,514
|
|
|
|
35,456
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
801
|
|
|
|
—
|
|
|
|
993
|
|
Income (loss) from
operations
|
|
|
1,356
|
|
|
|
2,730
|
|
|
|
(5,219)
|
|
|
|
11,943
|
|
Interest
income
|
|
|
10
|
|
|
|
20
|
|
|
|
20
|
|
|
|
143
|
|
Interest
expense
|
|
|
(103)
|
|
|
|
(58)
|
|
|
|
(212)
|
|
|
|
(175)
|
|
Equity in the net
income (loss) in equity method investees, net
|
|
|
53
|
|
|
|
(1,173)
|
|
|
|
164
|
|
|
|
(1,552)
|
|
Unrealized gain on
marketable equity securities and investments
|
|
|
2,915
|
|
|
|
—
|
|
|
|
7,022
|
|
|
|
—
|
|
Gain on sale of
subsidiary
|
|
|
4,226
|
|
|
|
—
|
|
|
|
4,226
|
|
|
|
—
|
|
Other (loss) income,
net
|
|
|
(14)
|
|
|
|
(52)
|
|
|
|
283
|
|
|
|
98
|
|
Income before income
taxes
|
|
|
8,443
|
|
|
|
1,467
|
|
|
|
6,284
|
|
|
|
10,457
|
|
Provision for income
taxes
|
|
|
(3,158)
|
|
|
|
(587)
|
|
|
|
(3,693)
|
|
|
|
(3,156)
|
|
Net income
|
|
|
5,285
|
|
|
|
880
|
|
|
|
2,591
|
|
|
|
7,301
|
|
Net loss attributable
to noncontrolling interests
|
|
|
(82)
|
|
|
|
(1,083)
|
|
|
|
(790)
|
|
|
|
(494)
|
|
Net income
attributable to Genie Energy Ltd.
|
|
|
5,367
|
|
|
|
1,963
|
|
|
|
3,381
|
|
|
|
7,795
|
|
Dividends on
preferred stock
|
|
|
(370)
|
|
|
|
(370)
|
|
|
|
(740)
|
|
|
|
(740)
|
|
Net income
attributable to Genie Energy Ltd. common stockholders
|
|
$
|
4,997
|
|
|
$
|
1,593
|
|
|
$
|
2,641
|
|
|
$
|
7,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Genie Energy Ltd. common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.19
|
|
|
$
|
0.06
|
|
|
$
|
0.10
|
|
|
$
|
0.27
|
|
Diluted
|
|
$
|
0.19
|
|
|
$
|
0.06
|
|
|
$
|
0.10
|
|
|
$
|
0.26
|
|
Weighted-average
number of shares used in calculation of earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
25,804
|
|
|
|
26,087
|
|
|
|
25,903
|
|
|
|
26,098
|
|
Diluted
|
|
|
26,227
|
|
|
|
26,853
|
|
|
|
26,446
|
|
|
|
26,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
—
|
|
|
$
|
0.085
|
|
|
$
|
—
|
|
|
$
|
0.160
|
|
(i) Stock-based
compensation included in selling, general and administrative
expenses
|
|
$
|
559
|
|
|
$
|
401
|
|
|
$
|
1,148
|
|
|
$
|
884
|
|
GENIE ENERGY
LTD. CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
|
|
|
Six Months
Ended
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
(in
thousands)
|
|
Operating
activities
|
|
|
|
|
|
|
Net income
|
|
$
|
2,591
|
|
|
$
|
7,301
|
|
Adjustments to
reconcile net income to net cash (used in) provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
2,446
|
|
|
|
1,548
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
993
|
|
Deferred income
taxes
|
|
|
2,974
|
|
|
|
2,537
|
|
Provision for doubtful
accounts receivable
|
|
|
2,539
|
|
|
|
1,215
|
|
Unrealized gain on
marketable equity securities and investment
|
|
|
(7,022)
|
|
|
|
—
|
|
Stock-based
compensation
|
|
|
1,148
|
|
|
|
884
|
|
Equity in the net
(income) loss in equity method investees
|
|
|
(164)
|
|
|
|
1,552
|
|
Gain on sale of
subsidiary
|
|
|
(4,226)
|
|
|
|
—
|
|
Loss on sale of assets
held for sale
|
|
|
—
|
|
|
|
78
|
|
Gain on
deconsolidation of subsidiaries
|
|
|
—
|
|
|
|
(98)
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
(3,157)
|
|
|
|
6,847
|
|
Inventory
|
|
|
1,277
|
|
|
|
1,930
|
|
Prepaid
expenses
|
|
|
(1,142)
|
|
|
|
2,016
|
|
Other current assets
and other assets
|
|
|
(2,865)
|
|
|
|
223
|
|
Trade accounts
payable, accrued expenses and other current liabilities
|
|
|
(609)
|
|
|
|
(1,006)
|
|
Contract
liability
|
|
|
(333)
|
|
|
|
(12,707)
|
|
Due to IDT
Corporation
|
|
|
47
|
|
|
|
(286)
|
|
Income taxes
payable
|
|
|
625
|
|
|
|
615
|
|
Net cash (used in)
provided by operating activities
|
|
|
(5,871)
|
|
|
|
13,642
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(80)
|
|
|
|
(99)
|
|
Proceeds from disposal
of assets held for sale
|
|
|
—
|
|
|
|
5
|
|
Proceeds from the sale
of a subsidiary, net of cash disposed
|
|
|
4,550
|
|
|
|
—
|
|
Purchase of marketable
equity securities
|
|
|
(1,000)
|
|
|
|
—
|
|
Investments in equity
method investee
|
|
|
—
|
|
|
|
(1,502)
|
|
Payment of acquisition
of intangible
|
|
|
—
|
|
|
|
(298)
|
|
Repayment of notes
receivable
|
|
|
13
|
|
|
|
12
|
|
Net cash provided by
(used in) investing activities
|
|
|
3,483
|
|
|
|
(1,882)
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(740)
|
|
|
|
(4,955)
|
|
Proceeds from
revolving line of credit
|
|
|
—
|
|
|
|
1,000
|
|
Repayment of revolving
line of credit
|
|
|
—
|
|
|
|
(3,514)
|
|
Proceeds from
loan
|
|
|
—
|
|
|
|
1,395
|
|
Repayment of
loan
|
|
|
—
|
|
|
|
(930)
|
|
Purchases of Class B
common stock
|
|
|
(2,435)
|
|
|
|
(1,546)
|
|
Repayment of notes
payable
|
|
|
—
|
|
|
|
(17)
|
|
Net cash used in
financing activities
|
|
|
(3,175)
|
|
|
|
(8,567)
|
|
Effect of exchange
rate changes on cash, cash equivalents, and restricted
cash
|
|
|
(54)
|
|
|
|
12
|
|
Net (decrease)
increase in cash, cash equivalents, and restricted cash
|
|
|
(5,617)
|
|
|
|
3,205
|
|
Cash, cash
equivalents, and restricted cash at beginning of period
|
|
|
43,184
|
|
|
|
38,554
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
|
$
|
37,567
|
|
|
$
|
41,759
|
|
Reconciliation of Non-GAAP Financial Measures for the Second
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 second quarter 2021, as well
as for the second quarter 2020, Adjusted EBITDA on a consolidated
basis. Adjusted EBITDA is a non-GAAP measure.
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 Adjusted EBITDA consists of gross
profit less selling, general and administrative expense, 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) and impairments of
goodwill. 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 measure of Adjusted
EBITDA provides useful information to both management and investors
by excluding certain expenses that may not be indicative of Genie
Energy's core operating results. Management uses Adjusted EBITDA,
among other measures, as a relevant indicator of core operational
strengths in its financial and operational decision making.
Management also uses Adjusted EBITDA to evaluate operating
performance in relation to Genie Energy's competitors. Disclosure
of this 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.
Management refers Adjusted EBITDA as well as the GAAP measures
revenue, gross profit, income (loss) from operations and net income
(loss), on consolidated level to facilitate internal and external
comparisons to 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. Genie Energy's operating
results exclusive of depreciation and amortization are therefore
useful indicators 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.
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 measurement of Adjusted EBITDA may not be
comparable to similarly titled measures reported by other
companies.
Following are the reconciliations Adjusted EBITDA on a
consolidated basis to its most directly comparable GAAP
measure. Adjusted EBITDA is reconciled to net income for
Genie Energy on a consolidated basis.
Reconciliation of
Adjusted EBITDA
|
|
|
Total
|
Three months ended
June 30, 2021 (Q2 2021)
|
|
Net income
attributable to Genie Energy Limited
|
$
5,367
|
Net loss attributable
to non-controlling interests
|
(82)
|
Net income
|
$
5,285
|
Provision for income
taxes
|
3,158
|
Other income,
net
|
14
|
Gain on sale of a
subsidiary
|
(4,226)
|
Unrealized gain on
marketable equity securities and investments
|
(2,915)
|
Interest
income
|
(10)
|
Interest
expense
|
103
|
Equity in the net
income of equity method investees
|
(53)
|
Income from
operations
|
$
1,356
|
Add:
|
|
|
|
Stock-based
compensation
|
559
|
|
Depreciation and
amortization
|
1,115
|
Subtract:
|
|
|
Equity in the net
income of equity method investees
|
(53)
|
Adjusted
EBITDA
|
$
3,083
|
|
|
Total
|
Three months ended
June 30, 2020 (Q2 2020)
|
|
Net income
attributable to Genie Energy Limited
|
$
1,963
|
Net income
attributable to non-controlling interests
|
(1,083)
|
Net income
|
$
880
|
Provision for income
taxes
|
587
|
Other income,
net
|
52
|
Interest
income
|
(20)
|
Interest
expense
|
58
|
Equity in the net
loss of equity method investees
|
1,173
|
Income from
operations
|
$
2,730
|
Add:
|
|
|
|
Stock-based
compensation
|
401
|
|
Depreciation and
amortization
|
723
|
|
Impairment
|
801
|
Subtract:
|
|
|
Equity in the net
loss (income) of equity method investees
|
1,173
|
Adjusted
EBITDA
|
$
3,482
|
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SOURCE Genie Energy Ltd.