NEWARK, N.J., Nov. 4, 2021 /PRNewswire/ -- Genie Energy,
Ltd. (NYSE: GNE, GNEPRA), a leading retail energy provider in
deregulated markets in the U.S. and select markets in Europe, and a provider of renewables solutions
in the U.S., today announced results for its third quarter ended
September 30, 2021.
"Genie Energy performed exceptionally well this quarter,
generating record gross margin, gross profit and Adjusted EBITDA,"
said Michael Stein, chief executive
officer. "Our performance was highlighted by strong results
from both our U.S. and Scandinavian energy supply businesses.
Genie Renewables continued to experience robust customer
demand, and we anticipate significant growth in the coming
quarters.
"In our international business, as we previously announced, we
are withdrawing from the U.K. market as a result of the impact of
structural market limitations in the current high-cost
environment. Although we have set aside plans for the
spin-off, looking ahead, we expect no new material negative cash
impact as a result of the exit. In fact, retiring from that
market obviates the need to invest additional growth capital."
Third Quarter 2021 Highlights (3Q21 results versus 3Q20
unless otherwise noted)
- Revenue increased 17.5% to $113.2
million;
- Gross profit increased 55.1% to $42.4
million and gross margin increased to 37.4% from 28.4%;
- Income from operations decreased to $6.9
million from $8.5 million;
operating margin decreased to 6.1% from 8.8%. Income from
operations included a loss from operations of $16.4 million in the UK (primarily expenses
related to the Company's withdrawal from that market) compared to a
loss from operations of $4.2 million
from the U.K. a year ago;
- Adjusted EBITDA increased 58.5% to $15.0
million compared to $9.5
million;
- GRE generated record income from operations and Adjusted EBITDA
of $19.7 million and $20.0 million, respectively, compared to
$12.2 million and $12.5 million;
- Net loss attributable to GNE common stockholders was
($2.7) million and diluted loss per
share was ($0.10), including a
$(0.26) per share writedown of assets
related to the Company's exit from the U.K. market. In the year-ago
quarter, net income was $6.4 million
and diluted earnings per share (EPS) was $0.24; and,
- Re-purchased 230,000 shares of GNE common stock for
$1.4 million.
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.
Select Financial
Metrics: Q3 2021 compared to Q3 2020
|
(in $M
except for EPS)
|
3Q21
|
3Q20
|
Change
|
Consolidated
Revenue
|
$113.2
|
$96.3
|
17.5%
|
Genie Retail - US
(GRE)
|
$86.3
|
$88.9
|
(2.9)%
|
Electricity
|
$82.8
|
$86.2
|
(3.9)%
|
Natural
Gas
|
$3.5
|
$2.7
|
29.1%
|
Genie Retail -
International (GREI)
|
$25.5
|
$5.8
|
337.5%
|
Electricity
|
$21.0
|
$5.6
|
275.3%
|
Natural
Gas
|
$4.1
|
$0.0
|
nm
|
Genie
Renewables
|
$1.3
|
$1.6
|
(14.9)%
|
Gross
Margin
|
37.4%
|
28.4%
|
910bp
|
Genie Retail - US
(GRE)
|
39.6%
|
29.0%
|
1060bp
|
Genie Retail -
International (GREI)
|
30.5%
|
18.7%
|
1180bp
|
Genie
Renewables
|
34.0%
|
27.1%
|
690bp
|
Income from
Operations
|
$6.9
|
$8.5
|
(19.0)%
|
Operating
Margin
|
6.1%
|
8.8%
|
(270)bp
|
Net (Loss) Income
Attributable to Genie Energy Ltd. Common
Stockholders
|
$(2.7)
|
$6.4
|
213.7%
|
Diluted (Loss)
Earnings Per Share
|
$(0.10)
|
$0.24
|
$(0.34)
|
Adjusted
EBITDA
|
$15.0
|
$9.5
|
34.9%
|
Cash Flow from
Operating Activities
|
$6.0
|
$10.4
|
(42.7)%
|
Select Business
Metrics: 2021 versus 2020 as of 9/30/21
|
Units in
1000s
|
3Q21
|
3Q20
|
Change
|
Retail Performance
Metrics:
|
|
|
|
Retail Customer
Equivalents (RCE)
|
434
|
441
|
(1.5)%
|
Genie Retail - US
(GRE)
|
336
|
350
|
(3.9)%
|
Electricity
|
276
|
294
|
(5.9)%
|
Natural
Gas
|
60
|
56
|
6.6%
|
Genie Retail -
International (GREI)
|
98
|
91
|
7.5%
|
Electricity
|
73
|
69
|
6.1%
|
Natural
Gas
|
24
|
22
|
12.1%
|
Meters
|
554
|
558
|
(0.7)%
|
Genie Retail - US
(GRE)
|
361
|
375
|
(3.8)%
|
Electricity
|
289
|
309
|
(6.4)%
|
Natural
Gas
|
72
|
67
|
8.0%
|
Genie Retail -
International (GREI)
|
193
|
182
|
5.9%
|
Electricity
|
138
|
136
|
1.1%
|
Natural
Gas
|
55
|
46
|
20.0%
|
GRE Average
Monthly Churn – Meters
|
|
|
|
Gross
Sales
|
46
|
44
|
4.5%
|
Churn
|
4.0%
|
3.7%
|
30bps
|
GRE delivered record levels of gross profit, income from
operations and Adjusted EBITDA for the quarter driven by strong
margins in the retail book and mark-to-market increases in the
value of its forward commodity positions after both electricity and
natural gas prices rose sharply. In addition, Genie recorded
a $1.9 million credit to the cost of
sales reflecting expected reimbursement from the State of Texas for charges imposed by ERCOT
during the severe winter storm in February
2021. Operationally, GRE served 336,000 RCEs at
September 30, 2021, a 2.0% increase sequentially and a 3.9%
decrease year over year. Per meter consumption, while
decreasing slightly compared to the year-ago quarter, remained
above pre-COVID levels. Monthly churn, at 4.0%, was below
typical pre-COVID levels while increasing from 3.7% in the year-ago
quarter and from 3.8% in the prior quarter.
GREI revenue growth was driven by the consolidation of Orbit
Energy (U.K.) results following our purchase of the non-controlled
interest in Orbit during October
2020, which previously had not been consolidated, and by
organic meter growth compared to the prior year. Orbit
Energy's loss from operations was $16.4
million for the quarter, including a $6.7 million ($0.26
cents per share) impairment of assets In Scandanavia, GREI
curtailed meter acquisition in a rising commodity price
environment, leading to increased profitability and a decrease in
meters served during the quarter.
Genie Renewables (formerly Genie Energy Services) reported a
higher gross margin and improved overall results as it shifted to
higher-margin solar projects.
Balance Sheet and Cash Flow Highlights
At September 30, 2021, Genie Energy reported
$193.2 million in total assets,
including $48.6 million in cash,
restricted cash and marketable equity securities. Liabilities
totaled $110.7 million and working
capital (current assets less current liabilities) totaled
$44.4 million. Non-current
liabilities were $3.0
million.
Cash provided by operating activities during the quarter ended
September 30, 2021 was $6.0 million compared to $10.4 million a year ago.
Strategic Update
Genie has suspended the planned
spin-off of its international operations in the U.K. and
Scandinavia following the deterioration of the U.K. energy market,
where a planned, orderly withdrawal from the market is underway.
Genie does not expect to incur additional material, cash charges as
a result.
Fourth Quarter Commentary
Heading into the winter
heating season, Genie is positioned to mitigate foreseeable
volatility in wholesale energy prices through its risk-management
program including hedging and forward commodity contract
positioning. As a result of commodity price increases, Genie
expects to generate robust margins from its retail supply
businesses. Moreover, the company expects to reduce supply
requirements by narrowing its customer acquisition program to
higher margin customers. This strategy optimizes margins
while dampening customer acquisition expense. When combined
with increasing profitability in Scandanavia, the elimination of
additional investment in the U.K. market and growth opportunities
for Genie Renewables, management believes the Company is well
positioned to deliver strong fourth quarter results.
Trended Financial
Information:*
|
(in $M
except for EPS, RCE and Meters)
|
1Q20
|
2Q20
|
3Q20
|
4Q20
|
1Q21
|
2Q21
|
3Q21
|
|
2019
|
2020
|
YTD
2021
|
Total
Revenue
|
$104.1
|
$76.1
|
$96.3
|
$102.9
|
$135.3
|
$97.7
|
$113.2
|
|
$315.3
|
$379.3
|
$346.2
|
Genie Retail - US
(GRE)
|
$79.1
|
$66.5
|
$88.9
|
$69.9
|
$90.7
|
$67.0
|
$86.3
|
|
$286.6
|
$305.3
|
$244.0
|
Electricity
|
$63.1
|
$61.1
|
$86.2
|
$60.5
|
$73.4
|
$61.9
|
$82.8
|
|
$246.7
|
$271.7
|
$218.1
|
Natural
Gas
|
$16.1
|
$5.4
|
$2.7
|
$9.4
|
$17.3
|
$5.1
|
$3.5
|
|
$39.9
|
$33.6
|
$25.9
|
Genie Retail -
International (GREI)
|
$6.7
|
$5.0
|
$5.8
|
$31.8
|
$42.2
|
$28.4
|
$25.5
|
|
$16.6
|
$49.6
|
$96.1
|
Electricity
|
$6.9
|
$4.8
|
$5.6
|
$23.4
|
$30.3
|
$21.4
|
$21.0
|
|
$16.4
|
$40.7
|
$72.7
|
Natural
Gas
|
$0.0
|
$0.0
|
$0.0
|
$8.3
|
$11.8
|
$6.7
|
$4.1
|
|
$0.0
|
$8.3
|
$22.6
|
Genie
Renewables
|
$18.0
|
$4.6
|
$1.6
|
$1.1
|
$2.5
|
$2.3
|
$1.3
|
|
$12.1
|
$24.4
|
$6.2
|
Gross
Margin
|
27.8%
|
25.6%
|
28.3%
|
21.4%
|
12.9%
|
24.3%
|
37.4%
|
|
26.3%
|
25.8%
|
24.2%
|
Genie Retail - US
(GRE)
|
43.7%
|
25.7%
|
29.0%
|
25.6%
|
16.5%
|
27.4%
|
39.6%
|
|
28.1%
|
28.9%
|
27.6%
|
Genie Retail -
International (GREI)
|
-4.5%
|
38.0%
|
19.0%
|
13.8%
|
3.3%
|
15.9%
|
30.5%
|
|
1.8%
|
14.5%
|
14.3%
|
Genie
Renewables
|
8.9%
|
11.4%
|
27.1%
|
-29.0%
|
44.9%
|
39.4%
|
34.0%
|
|
15.7%
|
9.4%
|
40.4%
|
Income (loss) from
Operations
|
$9.2
|
$2.7
|
$8.5
|
($1.1)
|
($6.6)
|
$1.4
|
$6.9
|
|
$9.8
|
$19.3
|
$1.7
|
Operating
Margin
|
8.8%
|
3.6%
|
8.8%
|
-1.1%
|
-4.9%
|
1.4%
|
6.1%
|
|
3.1%
|
5.1%
|
0.5%
|
Net income
attributable to Genie Energy Ltd. common
stockholders
|
$5.5
|
$1.6
|
$6.4
|
($1.7)
|
($2.4)
|
$5.0
|
($2.7)
|
|
$2.7
|
$11.7
|
nm
|
Diluted Earnings
(Loss) Per Share
|
$0.20
|
$0.06
|
$0.24
|
($0.06)
|
($0.09)
|
$0.19
|
$0.10
|
|
$0.10
|
$0.44
|
$0.00
|
Adjusted
EBITDA1
|
$10.3
|
$3.5
|
$9.5
|
$0.7
|
($4.5)
|
$3.1
|
$15.0
|
|
$10.1
|
$24.0
|
$13.5
|
Retail Customer
Equivalents (RCE) in 1000s
|
398
|
418
|
437
|
435
|
446
|
436
|
434
|
|
nm
|
nm
|
nm
|
Genie Retail - US
(GRE)
|
330
|
343
|
350
|
337
|
347
|
330
|
336
|
|
nm
|
nm
|
nm
|
Electricity
|
272
|
288
|
294
|
284
|
291
|
272
|
276
|
|
nm
|
nm
|
nm
|
Natural
Gas
|
58
|
55
|
56
|
53
|
56
|
58
|
60
|
|
nm
|
nm
|
nm
|
Genie Retail -
International (GREI)
|
69
|
76
|
87
|
98
|
98
|
106
|
98
|
|
nm
|
nm
|
nm
|
Electricity
|
50
|
55
|
66
|
76
|
77
|
82
|
73
|
|
nm
|
nm
|
nm
|
Natural
Gas
|
19
|
21
|
22
|
21
|
21
|
24
|
24
|
|
nm
|
nm
|
nm
|
Meters in 1000s
units
|
520
|
522
|
543
|
547
|
555
|
554
|
554
|
|
nm
|
nm
|
nm
|
Genie Retail - US
(GRE)
|
384
|
374
|
375
|
368
|
373
|
361
|
361
|
|
nm
|
nm
|
nm
|
Electricity
|
313
|
311
|
309
|
303
|
308
|
292
|
289
|
|
nm
|
nm
|
nm
|
Natural
Gas
|
71
|
64
|
67
|
65
|
65
|
69
|
72
|
|
nm
|
nm
|
nm
|
Genie Retail -
International (GREI)
|
136
|
147
|
167
|
179
|
182
|
193
|
193
|
|
nm
|
nm
|
nm
|
Electricity
|
96
|
105
|
121
|
132
|
135
|
141
|
138
|
|
nm
|
nm
|
nm
|
Natural
Gas
|
40
|
43
|
46
|
47
|
47
|
52
|
55
|
|
nm
|
nm
|
nm
|
Average Monthly
Churn - Meters
|
|
|
|
|
|
|
|
|
|
|
|
Genie Retail - US
(GRE)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
69
|
40
|
44
|
59
|
60
|
35
|
46
|
|
308
|
212
|
144
|
Churn
|
4.3%
|
3.9%
|
3.7%
|
5.3%
|
4.9%
|
3.8%
|
4.0%
|
|
5.3%
|
4.4%
|
4.2%
|
nm = not
measurable/meaningful
|
|
|
|
|
|
|
|
|
|
|
|
*Numbers may not add
due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Announcement and Supplemental
Information
Genie Energy has filed this release in a current
report (Form 8-K) with the SEC and posted it on its website
(https://genie.com/investors/investor-relations/).
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 1-888-506-0062
(toll-free from the US) or 1-973-528-0011 (international) and
provide the following participant access code: 536748.
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: 43494.
The replay will remain available through November 18, 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 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 selected markets in Europe.
Genie Renewables 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)
|
|
|
September 30,
2021
|
|
|
December 31,
2020
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
33,983
|
|
|
$
|
36,913
|
|
Restricted
cash—short-term
|
|
6,528
|
|
|
|
6,271
|
|
Marketable equity
securities
|
|
8,048
|
|
|
|
5,089
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $16,465 and
$8,793 at
September 30, 2021 and December 31, 2020, respectively
|
|
58,593
|
|
|
|
60,778
|
|
Inventory
|
|
23,648
|
|
|
|
16,930
|
|
Prepaid
expenses
|
|
5,767
|
|
|
|
4,633
|
|
Other current
assets
|
|
15,924
|
|
|
|
3,206
|
|
Total current
assets
|
|
152,491
|
|
|
|
133,820
|
|
Property and
equipment, net
|
|
281
|
|
|
|
259
|
|
Goodwill
|
|
25,627
|
|
|
|
25,929
|
|
Other intangibles,
net
|
|
3,768
|
|
|
|
11,645
|
|
Deferred income tax
assets, net
|
|
2,005
|
|
|
|
4,882
|
|
Other
assets
|
|
9,448
|
|
|
|
10,804
|
|
Total
assets
|
$
|
193,620
|
|
|
$
|
187,339
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Loan
payable
|
$
|
—
|
|
|
$
|
1,453
|
|
Trade accounts
payable
|
|
39,760
|
|
|
|
43,005
|
|
Accrued
expenses
|
|
51,339
|
|
|
|
42,762
|
|
Contract
liability
|
|
8,317
|
|
|
|
5,609
|
|
Income taxes
payable
|
|
6,435
|
|
|
|
1,893
|
|
Due to IDT
Corporation, net
|
|
109
|
|
|
|
257
|
|
Other current
liabilities
|
|
2,132
|
|
|
|
2,494
|
|
Total current
liabilities
|
|
108,092
|
|
|
|
97,473
|
|
Other current
liabilities
|
|
2,965
|
|
|
|
3,787
|
|
Total
liabilities
|
|
111,057
|
|
|
|
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 September 30, 2021 and
December 31, 2020
|
|
19,743
|
|
|
|
19,743
|
|
Class A common
stock, $0.01 par value; authorized shares—3,500; 1,574 shares
issued and outstanding at September 30, 2021 and December 31,
2020
|
|
16
|
|
|
|
16
|
|
Class B common stock,
$0.01 par value; authorized shares—200,000; 26,582 and 25,966
shares issued and 24,600 and 24,646 shares outstanding at September
30, 2021 and December 31, 2020, respectively
|
|
266
|
|
|
|
260
|
|
Additional paid-in
capital
|
|
141,787
|
|
|
|
140,746
|
|
Treasury stock, at
cost, consisting of 1,982 and 1,320 shares of Class B common stock
at September 30, 2021 and December 31, 2020,
respectively
|
|
(13,922)
|
|
|
|
(9,839)
|
|
Accumulated other
comprehensive income
|
|
2,994
|
|
|
|
3,827
|
|
Accumulated
deficit
|
|
(56,673)
|
|
|
|
(56,658)
|
|
Total Genie Energy
Ltd. stockholders' equity
|
|
94,211
|
|
|
|
98,095
|
|
Noncontrolling interests
|
|
(11,648)
|
|
|
|
(12,016)
|
|
Total
equity
|
|
82,563
|
|
|
|
86,079
|
|
Total liabilities and
equity
|
$
|
193,620
|
|
|
$
|
187,339
|
|
GENIE ENERGY
LTD.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
|
2021
|
|
|
2020
|
|
2021
|
|
|
2020
|
|
|
|
(in thousands,
except per share data)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Electricity
|
|
$
|
103,799
|
|
|
$
|
91,793
|
|
|
$
|
290,783
|
|
|
$
|
227,671
|
|
Natural
gas
|
|
|
7,609
|
|
|
|
2,724
|
|
|
|
48,458
|
|
|
|
24,190
|
|
Other
|
|
|
1,756
|
|
|
|
1,809
|
|
|
|
6,970
|
|
|
|
24,591
|
|
Total
revenues
|
|
|
113,164
|
|
|
|
96,326
|
|
|
|
346,211
|
|
|
|
276,452
|
|
Cost of
revenues
|
|
|
70,788
|
|
|
|
69,010
|
|
|
|
262,540
|
|
|
|
200,744
|
|
Gross
profit
|
|
|
42,376
|
|
|
|
27,316
|
|
|
|
83,671
|
|
|
|
75,708
|
|
Operating expenses
and losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative (i)
|
|
|
28,853
|
|
|
|
18,831
|
|
|
|
75,366
|
|
|
|
54,287
|
|
Impairment of
assets
|
|
|
6,650
|
|
|
|
—
|
|
|
|
6,650
|
|
|
|
993
|
|
Income from
operations
|
|
|
6,873
|
|
|
|
8,485
|
|
|
|
1,655
|
|
|
|
20,428
|
|
Interest
income
|
|
|
8
|
|
|
|
21
|
|
|
|
28
|
|
|
|
164
|
|
Interest
expense
|
|
|
(99)
|
|
|
|
(48)
|
|
|
|
(311)
|
|
|
|
(223)
|
|
Equity in the net
income (loss) in equity method investees, net
|
|
|
52
|
|
|
|
(146)
|
|
|
|
215
|
|
|
|
(1,698)
|
|
Unrealized (loss)
gain on marketable equity securities and investments
|
|
|
(5,312)
|
|
|
|
—
|
|
|
|
1,710
|
|
|
|
—
|
|
Gain on sale of
subsidiary
|
|
|
—
|
|
|
|
—
|
|
|
|
4,226
|
|
|
|
—
|
|
Other (loss) income,
net
|
|
|
(17)
|
|
|
|
291
|
|
|
|
267
|
|
|
|
390
|
|
Income before income
taxes
|
|
|
1,505
|
|
|
|
8,603
|
|
|
|
7,790
|
|
|
|
19,061
|
|
Provision for income
taxes
|
|
|
(3,822)
|
|
|
|
(2,406)
|
|
|
|
(7,515)
|
|
|
|
(5,563)
|
|
Net (loss)
income
|
|
|
(2,317)
|
|
|
|
6,197
|
|
|
|
275
|
|
|
|
13,498
|
|
Net loss attributable
to noncontrolling interests
|
|
|
(31)
|
|
|
|
(531)
|
|
|
|
(821)
|
|
|
|
(1,026)
|
|
Net (loss) income
attributable to Genie Energy Ltd.
|
|
|
(2,286)
|
|
|
|
6,728
|
|
|
|
1,096
|
|
|
|
14,524
|
|
Dividends on
preferred stock
|
|
|
(370)
|
|
|
|
(370)
|
|
|
|
(1,111)
|
|
|
|
(1,111)
|
|
Net (loss) income
attributable to Genie Energy Ltd. common stockholders
|
|
$
|
(2,656)
|
|
|
$
|
6,358
|
|
|
$
|
(15)
|
|
|
$
|
13,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings per
share attributable to Genie Energy Ltd. common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.10)
|
|
|
$
|
0.25
|
|
|
$
|
(0.00)
|
|
|
$
|
0.51
|
|
Diluted
|
|
$
|
(0.10)
|
|
|
$
|
0.24
|
|
|
$
|
(0.00)
|
|
|
$
|
0.50
|
|
Weighted-average
number of shares used in calculation of (loss) earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
25,514
|
|
|
|
25,928
|
|
|
|
25,867
|
|
|
|
26,107
|
|
Diluted
|
|
|
25,514
|
|
|
|
26,769
|
|
|
|
25,867
|
|
|
|
26,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
—
|
|
|
$
|
0.085
|
|
|
$
|
—
|
|
|
$
|
0.245
|
|
(i) Stock-based
compensation included in selling, general and administrative
expenses
|
|
$
|
531
|
|
|
$
|
447
|
|
|
$
|
1,680
|
|
|
$
|
1,331
|
|
GENIE ENERGY
LTD.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
(in
thousands)
|
|
Operating
activities
|
|
|
|
|
|
|
Net income
|
|
$
|
275
|
|
|
$
|
13,498
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
3,326
|
|
|
|
2,219
|
|
Impairment of
assets
|
|
|
6,650
|
|
|
|
993
|
|
Deferred income
taxes
|
|
|
2,877
|
|
|
|
4,838
|
|
Provision for doubtful
accounts receivable
|
|
|
8,018
|
|
|
|
2,209
|
|
Unrealized gain on
marketable equity securities and investment
|
|
|
(1,710)
|
|
|
|
—
|
|
Stock-based
compensation
|
|
|
1,680
|
|
|
|
1,331
|
|
Equity in the net
(income) loss in equity method investees
|
|
|
(215)
|
|
|
|
1,698
|
|
Gain on sale of
subsidiary
|
|
|
(4,226)
|
|
|
|
—
|
|
Loss on sale of assets
held for sale
|
|
|
—
|
|
|
|
456
|
|
Gain on
deconsolidation of subsidiaries
|
|
|
—
|
|
|
|
(98)
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
(7,570)
|
|
|
|
2,827
|
|
Inventory
|
|
|
(6,718)
|
|
|
|
3,218
|
|
Prepaid
expenses
|
|
|
(1,524)
|
|
|
|
2,166
|
|
Other current assets
and other assets
|
|
|
(13,718)
|
|
|
|
(633)
|
|
Trade accounts
payable, accrued expenses and other current liabilities
|
|
|
5,414
|
|
|
|
2,018
|
|
Contract
liability
|
|
|
2,796
|
|
|
|
(12,393)
|
|
Due to IDT
Corporation
|
|
|
(148)
|
|
|
|
(266)
|
|
Income taxes
payable
|
|
|
4,542
|
|
|
|
(43)
|
|
Net cash provided by
operating activities
|
|
|
86
|
|
|
|
24,038
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(158)
|
|
|
|
(125)
|
|
Proceeds from disposal
of assets held for sale
|
|
|
—
|
|
|
|
48
|
|
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)
|
|
Purchase of short-term
equity investments
|
|
|
(750)
|
|
|
|
—
|
|
Payment of acquisition
of intangible
|
|
|
—
|
|
|
|
(298)
|
|
Repayment of notes
receivable
|
|
|
14
|
|
|
|
14
|
|
Net cash provided by
(used in) investing activities
|
|
|
2,656
|
|
|
|
(1,863)
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(1,111)
|
|
|
|
(7,543)
|
|
Proceeds from
revolving line of credit
|
|
|
—
|
|
|
|
1,000
|
|
Repayment of revolving
line of credit
|
|
|
—
|
|
|
|
(3,514)
|
|
Proceeds from
loan
|
|
|
—
|
|
|
|
1,395
|
|
Repayment of
loan
|
|
|
—
|
|
|
|
—
|
|
Purchases of Class B
common stock
|
|
|
(3,847)
|
|
|
|
(1,634)
|
|
Repayment of notes
payable
|
|
|
—
|
|
|
|
(25)
|
|
Proceeds from exercise
of stock options
|
|
|
—
|
|
|
|
18
|
|
Purchase of Class B
common stock from employees upon vesting of restricted
shares
|
|
|
(236)
|
|
|
|
(263)
|
|
Repayment of loan
payable
|
|
|
—
|
|
|
|
(930)
|
|
Net cash used in
financing activities
|
|
|
(5,194)
|
|
|
|
(11,496)
|
|
Effect of exchange
rate changes on cash, cash equivalents, and restricted
cash
|
|
|
(221)
|
|
|
|
(3)
|
|
Net (decrease)
increase in cash, cash equivalents, and restricted cash
|
|
|
(2,673)
|
|
|
|
10,676
|
|
Cash, cash
equivalents, and restricted cash at beginning of period
|
|
|
43,184
|
|
|
|
38,554
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
|
$
|
40,511
|
|
|
$
|
49,230
|
|
Reconciliation of Non-GAAP Financial Measures for the Third
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 third quarter 2021, as well
as for the third quarter 2020, Adjusted EBITDA on a consolidated
basis and for its Genie Retail Energy segment. 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 consolidated Adjusted EBITDA starts
with net income and adds back interest, taxes, depreciation,
amortization, stock-based compensation and impairment of assets and
subtracts out equity in the net loss of equity method investees,
net. Genie Energy's measure of segment level Adjusted EBITDA
starts with income (loss) from operations, and adds back
depreciation, amortization, stock-based compensation and subtracts
out impairment of assets and equity in the net loss of equity
method investees, net.
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.
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 to Adjusted EBITDA as well as the GAAP
measures revenue, gross profit, income (loss) from operations and
net income (loss), on a 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.
Following are the reconciliations of 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 and for the Genie Retail
Energy (GRE) segment.
Reconciliation of Adjusted EBITDA on a Consoliadated Basis
and for Genie Retail Energy (GRE)
|
|
Consolidated
|
GRE
|
Three months ended
September 30, 2021 (Q3 2021)
|
|
|
Net loss attributable
to Genie Energy LTD
|
$
(2,286)
|
|
Net loss attributable
to non-controlling interests
|
(31)
|
|
Net loss
|
$
(2,317)
|
|
Provision for income
taxes
|
(3,822)
|
|
Other loss,
net
|
(17)
|
|
Unrealized loss on
marketable equity securities and investments
|
(5,312)
|
|
Interest
income
|
8
|
|
Interest
expense
|
(99)
|
|
Equity in the net
income of equity method investees
|
52
|
|
Income from
operations
|
$
6,873
|
$
19,715
|
Add:
|
|
|
|
|
Stock-based
compensation
|
531
|
155
|
|
Depreciation and
amortization
|
881
|
90
|
Subtract:
|
|
|
|
Equity in the net
income of equity method investees
|
(52)
|
|
|
Impairment of
assets
|
(6,650)
|
|
Adjusted
EBITDA
|
$
14,987
|
$
19,960
|
|
|
Consolidated
|
GRE
|
Three months ended
September 30, 2020 (Q3 2020)
|
|
|
Net income
attributable to Genie Energy LTD
|
$
6,728
|
|
Net income
attributable to non-controlling interests
|
(531)
|
|
Net income
|
$
6,197
|
|
Provision for income
taxes
|
(2,406)
|
|
Other income,
net
|
291
|
|
Interest
income
|
21
|
|
Interest
expense
|
(48)
|
|
Equity in the net
loss of equity method investees
|
(146)
|
|
Income from
operations
|
$
8,485
|
$
12,228
|
Add:
|
|
|
|
|
Stock-based
compensation
|
447
|
172
|
|
Depreciation and
amortization
|
670
|
117
|
Subtract:
|
|
|
|
Equity in the net
loss of equity method
investees
|
146
|
|
Adjusted
EBITDA
|
$
9,456
|
$
12,517
|
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SOURCE Genie Energy Ltd.