Reports record third-quarter gross profit, net income and Adjusted EBITDA1

Acquired site rights to build up to 64MW (megawatts) of solar projects

NEWARK, N.J., Nov. 7, 2022 /PRNewswire/ -- Genie Energy, Ltd. (NYSE: GNE, GNEPRA), a leading retail energy and renewable energy solutions provider, today announced results for its third quarter ended September 30, 2022.

Genie Energy, Ltd. is a leading retail energy and renewable energy solutions provider.

"We reported record third quarter profit metrics driven by strength in Genie Retail Energy (GRE), our domestic retail energy business," said Michael Stein, chief executive officer. "GRE continued to outperform in a volatile energy price environment. We were well-positioned with our customer book and hedges heading into the quarter and were able to drive a 54% gross margin and generate nearly $28 million in Adjusted EBITDA. Genie Renewables (GREW) also made excellent progress in our solar business, acquiring site rights to 64MW of solar projects and advancing them through their permitting processes.

"Given the challenging environment in the European energy market, we determined that the risk was beyond our acceptable tolerances. As a result, we exited our remaining international retail operations and no longer serve customers in Scandanavia.* Finally, building on our strong domestic operational performance, we returned $3.2 million in capital to shareholders via redemption of preferred stock and payments of our regular quarterly common and preferred stock dividends."

* Genie Retail Energy International (GREI) results are classified as discontinued operations in the third quarter of 2022 and for all prior periods presented.

Third Quarter 2022 Highlights (versus 3Q21 unless otherwise noted; excludes GREI for all periods)

  • Revenue decreased 7.3% to $81.3 million from $87.7 million;
  • Gross profit increased 24.7% to $43.1 million from $34.6 million, and gross margin increased to 53.1% from 39.5%, driven by strength at GRE;
  • Income from operations increased 34.8% to $23.5 million from $17.5 million;
  • Adjusted EBITDA1 increased 35.2% to $24.5 million from $18.1 million;
  • GRE generated income from continuing operations and Adjusted EBITDA of $27.4 million and $27.7 million, compared to $19.7 million and $20.0 million, respectively;
  • Net income from continuing operations attributable to GNE common stockholders increased to $18.3 million, and diluted income per share (EPS) increased to $0.70, compared to a loss of $2.7 million and net loss per share of $0.10, respectively;
  • Cash, restricted cash and marketable equity securities increased to $87.7 million at September 30, 2022, from $67.2 million at June 30, 2022;
  • Declared a $0.075 quarterly dividend for class A and B common stockholders;
  • Redeemed $1 million of preferred stock.

 

Select Financial Metrics: 2022 versus 2021 as of 9/30/22*

 (in $M except for EPS)

3Q22

3Q21

Change

YTD 2022

YTD 2021

Change

Total Revenue

$81.3

$87.7

(7.3 %)

$234.2

$254.1

(7.8 %)

Genie Retail - US (GRE)

$79.9

$86.3

(7.4 %)

$227.0

$244.0

(7.0 %)

Electricity

$73.8

$82.8

(10.9 %)

$186.2

$218.1

(14.6 %)

Natural Gas

$6.2

$3.5

75.0 %

$40.8

$25.9

57.5 %

Genie Renewables

$1.4

$0.9

2.2 %

$7.2

$6.2

16.5 %

Gross Margin

53.1 %

39.5 %

1360bps

51.3 %

26.7 %

2455bps

Genie Retail - US (GRE)

54.1 %

39.6 %

1453bps

27.6 %

24.7 %

394bps

Genie Renewables

(6.3 %)

34.0 %

(4029)bps

17.5 %

40.4 %

(2298)bps

Income (Loss) from Operations

$23.5

$17.5

34.8 %

$62.3

$18.3

240.7 %

Operating Margin

29.0 %

19.9 %

903bps

26.6 %

(5.1 %)

3168bps

Net Income (Loss) Attributable to Discontinued Operations

($1.5)

($10.9)

(86.6 %)

$25.9

($17.0)

nm

Net Income (Loss) Attributable to GNE Common Stockholders

$18.3

($2.7)

nm

$69.7

($0.0)

nm

Diluted Earnings (Loss) Per Share

$0.70

($0.10)

nm

$2.65

($0.00)

nm

Adjusted EBITDA1

$24.5

$18.1

35.2 %

$64.7

$20.4

nm

Cash Flow from Continuing Operating Activities

$22.5

$0.3

nm

$44.9

($0.9)

nm

nm = not measurable/meaningful







*Numbers may not add due to rounding







** GREI operations have been classified as a discontinued operation and its results excluded from current and historical results








              Select Business Metrics: 2022 versus 2021 (as of quarters ended on September 30)**

Units in 1000s

3Q22

3Q21

Change


Retail Performance Metrics:





Genie Retail - US (GRE)

251

336

(25.3 %)


Electricity

174

276

(37.0 %)


Natural Gas

77

60

28.1 %


Meters in 1000s units





Genie Retail - US (GRE)

271

361

(25.0 %)


Electricity

193

289

(33.0 %)


Natural Gas

77

72

7.3 %


Gross Adds

34

47

(27.7 %)


Churn***

4.7 %

4.0 %

70bps


** GREI operations have been classified as a discontinued operation and its results excluded from current and historical results



*** Excludes expiration of low margin aggregation deals







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 Measure at the end of this release for an explanation of Adjusted EBITDA, as well as reconciliations to its most directly comparable GAAP measure.

Segment Highlights

Genie Retail Energy (GRE)

GRE delivered record third quarter gross profit, income from operations, and Adjusted EBITDA, highlighted by strong margins in its retail book. Electric per meter consumption declined moderately versus the year-ago quarter but remained solidly above pre-COVID levels. As in prior quarters, GRE moderated customer acquisition to maximize the value of its portfolio, given the ongoing market volatility. 

Sequentially, RCEs and meters served decreased by 11,000 and 9,000 to 251,000 and 271,000, respectively, as of September 30, 2022. Average monthly churn increased to 4.7% from 4.0% in the year-ago quarter and from 4.4% in the second quarter of 2022.

Genie Renewables (GREW)

Genie Solar Energy continued building solar projects for large commercial customers and is on track to continue recognizing additional revenue from its growing backlog of projects.

As previously disclosed, GREW is also building a portfolio of company-owned and/or controlled solar generation fields. In that regard, the Company achieved site control on multiple projects totaling 64MW of generation capacity.

Balance Sheet and Cash Flow Highlights

On September 30, 2022, Genie Energy reported $259.9 million in total assets. Liabilities totaled $97.7 million, and working capital (current assets less current liabilities) totaled $128.5 million. Non-current liabilities were $11.7 million.

For the quarter ended September 30, 2022, net cash provided by operating activities was $25.6 million compared to $6.0 million a year ago.

Strategic Update and Commentary on the Balance of 2022

GRE will continue monitoring the U.S. retail energy markets for customer acquisition opportunities. As volatility either moderates or becomes more palatable to customers, GRE expects to recalibrate its customer acquisition and retention programs to generate growth in its customer book.

On October 12, 2022, Genie announced that, on November 15, 2022, it would redeem 986,400 shares of its Preferred Stock for an aggregate cost of approximately $8.3 million. After this redemption, Genie Energy will have 983,358 shares of Preferred Stock outstanding with an aggregate stated value of $8.4 million.

Stein commented, "We expect energy prices to remain volatile as we head into the Winter months, but we continue to be well-positioned from a risk management position and will return to customer acquisition mode on a market-by-market basis when the risk/reward balance is favorable. Additionally, we expect to receive all approvals necessary to begin construction on our first wholly-owned and operated solar generation project this quarter. Finally, we continue to redeem our preferred stock to enhance our flexibility to invest future cash-flows in value creation initiatives, including pursuing additional growth opportunities in our renewables business."

Trended Financial Information:*

 (in $M except for EPS, RCE and Meters)**

1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22


2019

2020

2021

YTD 2022

Total Revenue

$96.3

$70.1

$87.7

$69.2

$85.9

$66.9

$81.3


$315.3

$338.4

$323.3

$234.2

Genie Retail - US (GRE)

$90.7

$67.0

$86.3

$67.9

$83.9

$63.2

$79.9


$286.6

$304.4

$311.8

$244.0

Electricity

$73.4

$61.9

$82.8

$54.9

$59.4

$53.1

$73.8


$246.7

$270.9

$273.0

$186.2

Natural Gas

$17.3

$5.1

$3.5

$12.9

$24.5

$10.1

$6.2


$39.9

$33.6

$38.8

$40.8

Genie Renewables

$2.5

$2.3

$1.3

$1.3

$2.0

$3.8

$1.4


$12.1

$25.2

$7.5

$7.2

Gross Margin

14.4 %

27.8 %

39.5 %

34.3 %

54.8 %

44.5 %

53.1 %


26.3 %

27.0 %

28.3 %

51.3 %

Genie Retail - US (GRE)

16.5 %

16.5 %

16.5 %

16.5 %

16.5 %

16.5 %

16.5 %


28.1 %

29.0 %

29.1 %

52.3 %

Genie Renewables

44.9 %

39.4 %

34.0 %

21.5 %

25.7 %

21.6 %

-6.3 %


15.7 %

8.8 %

37.1 %

17.5 %

Income (loss) from Operations

($3.2)

$4.0

$17.5

$5.8

$27.0

$11.8

$23.5


$9.8

$23.1

$24.1

$62.3

Operating Margin

-3.3 %

5.7 %

19.9 %

8.4 %

31.4 %

17.6 %

29.0 %


3.1 %

6.8 %

7.5 %

26.6 %

Net Income (Loss) Attributable to Discontinued Operations

($3.4)

($2.7)

($10.9)

$28.7

($1.9)

$29.3

($1.5)


$9.8

($0.5)

$11.7

$25.9

Net Income (Loss) Attributable to GNE Common Stockholders 

($2.4)

$5.0

($2.7)

$27.6

$17.5

$33.9

$18.3


$9.8

$11.7

$27.5

$69.7

Diluted Earnings (Loss) Per Share

($0.09)

$0.19

($0.10)

$1.06

$0.67

$1.30

$0.70


$0.10

$0.44

$1.06

$2.65

Adjusted EBITDA

($2.4)

$4.7

$18.1

$7.3

$28.0

$12.2

$24.5


$10.1

$26.6

$27.8

$64.7

GRE Retail Performance Metrics













RCEs

347

330

336

260

260

263

251


307

337

260

nm

Electricity

291

272

276

189

182

185

174


246

284

189

nm

Natural Gas

56

58

60

71

78

77

77


61

53

71

nm

Meters

373

361

361

285

286

280

271


369

368

285

nm

Electricity

308

292

289

210

209

203

193


296

303

210

nm

Natural Gas

65

69

72

75

77

77

77


73

65

75

nm

Gross Adds

62

35

46

33

44

34

33


308

212

177

112

Churn***

4.9 %

3.8 %

4.0 %

6.2 %

4.5 %

4.4 %

4.7 %


5.3 %

4.4 %

4.5 %

4.5 %

nm = not measurable/meaningful

*Numbers may not add due to rounding













** GREI operations have been classified as a discontinued operation and its results excluded from current and historical results

*** Excludes expiration of low margin aggregation deals

Dividend on Genie Energy Common Stock

Genie Energy's Board of Directors has declared a dividend of $0.075 per share of Class A and Class B common stock with a record date of November 14, 2022. The dividend will be paid on or about November 21, 2022. The distribution will be treated as an ordinary dividend for income tax purposes. 

Earnings Announcement and Supplemental Information

At 8:30 AM Eastern today, Genie'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 1-877-545-0523 (toll-free from the U.S.) or 1-973-528-0011 (international) and provide the following participant access code: 643413.

Approximately three hours after the call, a call replay will be accessible by dialing 1-877-481-4010 (toll-free from the U.S.) or 1-919-882-2331 (international) and providing the replay passcode: 46970. The replay will remain available through November 21, 2022. 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 retail energy and renewable energy solutions provider. 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 Renewables division is a vertically-integrated provider of commercial, community, and utility-scale solar energy 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, 2022



December 31,
2021



(Unaudited)



(Audited)


Assets






Current assets:






Cash and cash equivalents

$

81,705



$

93,568


Restricted cash—short-term


5,555




6,657


Marketable equity securities


471




1,336


Trade accounts receivable, net of allowance for doubtful accounts of $4,448 and $6,139 at September 30, 2022 and December 31, 2021, respectively


43,524




41,309


Inventory


18,517




17,720


Prepaid expenses


7,806




4,164


Other current assets


8,156




2,354


Current assets of discontinued operations


48,863




33,237


Total current assets


214,597




200,345


Goodwill


9,998




9,998


Other intangibles, net


3,232




3,530


Deferred income tax assets, net


5,203




5,203


Other assets


12,975




9,217


Noncurrent assets of discontinued operations


13,851




1,172


Total assets

$

259,856



$

229,465


Liabilities and equity








Current liabilities:








Trade accounts payable


18,783




14,541


Accrued expenses


41,803




38,005


Income taxes payable


17,521




9,512


Due to IDT Corporation, net


135




532


Other current liabilities


2,150




1,732


Current liabilities of discontinued operations


5,731




51,970


Total current liabilities


86,123




116,292


Other liabilities


2,159




1,946


Noncurrent liabilities of discontinued operations


9,502




438


Total liabilities 


97,784




118,676


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 1,970 and 2,322 shares issued and outstanding at September 30, 2022 and December 31, 2021


16,743




19,743


Class A common stock, $0.01 par value; authorized shares—35,000; 1,574 shares issued and outstanding at September 30, 2022 and December 31, 2021


16




16


Class B common stock, $0.01 par value; authorized shares—200,000; 27,003 and 26,620 shares issued and 24,313 and 24,615 shares outstanding at September 30, 2022 and December 31, 2021, respectively


270




266


Additional paid-in capital


145,552




143,249


Treasury stock, at cost, consisting of 2,690 and 2,005 shares of Class B common stock at September 30, 2022 and December 31, 2021


(18,852)




(14,034)


Accumulated other comprehensive (loss) income 


(3,075)




3,160


Retained earnings (accumulated deficit)


34,782




(29,115)


Total Genie Energy Ltd. stockholders' equity


175,436




123,285


Noncontrolling interests


(13,364)




(12,496)


Total equity


162,072




110,789


Total liabilities and equity

$

259,856



$

229,465


 

GENIE ENERGY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)




Three Months Ended
September 30,



Nine Months Ended
September 30,




2022




2021



2022



2021




(in thousands, except per share data)


Revenues:














Electricity

$

73,764



$

82,801



$

186,207



$

222,005


Natural gas


6,153




3,516




40,754




25,878


Other


1,368




1,338




7,189




6,177


Total revenues


81,285




87,655




234,150




254,060


Cost of revenues


38,142




53,049




114,082




186,152


Gross profit


43,143




34,606




120,068




67,908


Operating expenses and losses:
















Selling, general and administrative (i)


19,605




17,143




57,796




49,628


Income from operations


23,538




17,463




62,272




18,280


Interest income


194




8




259




28


Interest expense


(33)




(99)




(135)




(311)


Unrealized gain (loss) on marketable equity securities and investments


57




(5,312)




(742)




1,710


Gain on sale of subsidiary


—




—




—




4,226


Other income (loss), net


156




35




(712)




482


Income before income taxes


23,912




12,095




60,942




24,415


Provision for income taxes


(6,482)




(3,498)




(16,791)




(7,149)


Net income from continuing operations


17,430




8,597




44,151




17,266


   Loss (income) from discontinued operations, net of taxes


(1,459)




(10,914)




25,929




(16,991)


Net income (loss)


15,971




(2,317)




70,080




275


Net (loss) income attributable to noncontrolling interests


(2,797)




(31)




(1,056)




(821)


Net income (loss) attributable to Genie Energy Ltd.


18,768




(2,286)




71,136




1,096


Dividends on preferred stock


(454)




(370)




(1,448)




(1,111)


Net income (loss) attributable to Genie Energy Ltd. common stockholders

$

18,314



$

(2,656)



$

69,688



$

(15)


















Amounts attributable to Genie Energy Ltd. common stockholders
















    Income from continuing operations

$

22,259



$

8,643



$

48,368



$

17,303


    (Loss) income from discontinued operations


(3,945)




(11,299)




21,320




(17,318)


Net income (loss) attributable to Genie Energy Ltd. common stockholders

$

18,314



$

(2,656)



$

69,688




(15)


















Earnings per share attributable to Genie Energy Ltd. common stockholders:
















Basic:
















    Income from continuing operations

$

0.88



$

0.34



$

1.89



$

0.67


    (Loss) income from discontinued operations


(0.15)




(0.44)




0.83




(0.67)


    Net income (loss) attributable to Genie Energy Ltd. common stockholders

$

0.73



$

(0.10)



$

2.72



$

(0.00)


Diluted
















    Income from continuing operations

$

0.85



$

0.34



$

1.84



$

0.67


    (Loss) income from discontinued operations


(0.15)




(0.44)




0.81




(0.67)


    Net income (loss) attributable to Genie Energy Ltd. common stockholders

$

0.70



$

(0.10)



$

2.65



$

0.00


















Weighted-average number of shares used in calculation of earnings per share:
















Basic


25,233




25,514




25,623




25,867


Diluted


26,205




25,514




26,261




25,867


















Dividends declared per common share

$

0.075



$

0.225



$

—



$

—


(i) Stock-based compensation included in selling, general and administrative expenses

$

713



$

504



$

2,232



$

1,597


 

GENIE ENERGY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) 




Nine Months Ended
September 30,




2022



2021




(in thousands)


Operating activities







Net income


$

70,080



$

275


   Net income (loss) from discontinued operations, net of tax



25,929




(16,991)


Net income from continuing operations



44,151




17,266


Adjustments to reconcile net income to net cash provided by (used in) operating activities:









Depreciation and amortization



288




343


Deferred income taxes



—




2,880


Provision for doubtful accounts receivable



2,116




1,372


Unrealized loss (gain) marketable equity securities and investment



742




(1,710)


Stock-based compensation



2,232




1,597


Equity in the net loss (income) in equity method investees



91




(215)


Gain on sale of subsidiaries  



—




(4,226)


Change in assets and liabilities: 









Trade accounts receivable



(4,331)




(12,427)


Inventory



(797)




(6,718)


Prepaid expenses



(3,641)




(1,713)


Other current assets and other assets



(6,084)




(8,829)


Trade accounts payable, accrued expenses and other current liabilities



2,570




7,337


Due to IDT Corporation



(398)




(148)


Income taxes payable



8,009




4,263


Net cash provided by (used in) operating activities of continuing operations



44,948




(928)


   Net cash used in discontinued operations



8,150




1,014


Net cash provided by operating activities



53,098




86


Investing activities









Capital expenditures



(1,058)




(158)


Proceeds from the sale of subsidiary, net of cash disposed



—




4,550


Investment in notes receivables with related party



(1,505)




—


Purchase of marketable equity securities and other investments



(1,300)




(1,750)


Repayment of notes receivable



19




14


Net cash (used in) provided by investing activities of continuing operations



(3,844)




2,656


   Net cash used in investing activities of discontinued operations



(43,941)




—


Net cash (used in) provided by investing activities



(47,785)




2,656


Financing activities









Dividends paid to Class A and Class B common stock stockholders



(1,104)




—


Dividends paid to preferred stock stockholders



(5,790)




(1,111)


Repurchases of Class B common stock from employees



(409)




(236)


Repurchase of Class B common stock



(4,414)




(3,847)


Redemption of preferred stock



(3,000)




—


Net cash used in by financing activities



(14,717)




(5,194)


Effect of exchange rate changes on cash, cash equivalents, and restricted cash



(15)




(221)


Net decrease in cash, cash equivalents, and restricted cash



(9,419)




(2,673)


Cash, cash equivalents, and restricted cash at beginning of period



102,149




43,184


Cash, cash equivalents and restricted cash (including discontinued operations) at end of the period



92,730




40,511


Less: Cash of discontinued operations at end of period



5,470




3,910


Cash, cash equivalents, and restricted cash (excluding discontinued operations) at end of period


$

87,260



$

36,601


Reconciliation of Non-GAAP Financial Measure for the Third Quarter 2022

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 Adjusted EBITDA on a consolidated basis and for GRE. 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'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's measure of segment-level Adjusted EBITDA starts with income (loss) from operations and adds back depreciation, amortization, and 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's measurement of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Management believes that Genie's measure of Adjusted EBITDA provides useful information to both management and investors by excluding certain expenses that may not be indicative of Genie's or GRE'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'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, and income (loss) from operations, as well as net income (loss), on a consolidated level to facilitate internal and external comparisons to Genie'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'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's calculation of Adjusted EBITDA because management believes this allows investors to make more meaningful comparisons of the operating results of Genie'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'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 GRE.

Non-GAAP Reconciliation - Consolidated Adjusted EBITDA



1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22


2020

2021

9 Mos
2022

Income (loss) from Operations

($3.2)

$4.0

$17.5

$5.8

$27.0

$11.8

$23.5


$23.1

$24.1

$62.3

Add back












Depreciation and Amortization

$0.1

$0.1

$0.1

$0.1

$0.1

$0.1

$0.1


$1.1

$0.4

$0.3

Non-Cash Compensation

$0.6

$0.5

$0.5

$1.2

$0.8

$0.7

$0.7


$1.0

$2.8

$2.2

Impairment

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0


$1.4

$0.0

$0.0

Equity in the Loss of AMSO/GEUK

$0.1

$0.1

$0.1

$0.2

$0.1

($0.4)

$0.2


$0.1

$0.4

($0.1)

Adjusted EBITDA

($2.4)

$4.7

$18.1

$7.3

$28.0

$12.2

$24.5


$26.6

$27.8

$64.7

 


Non-GAAP Reconciliation - GRE



(in millions)

1Q22

2Q22

3Q22



Income (loss) from Operations

$30.2

$14.4

$27.4



Add back






Depreciation and Amortization

$0.1

$0.1

$0.1



Stock-based Compensation

$0.2

$0.2

$0.2



Impairment

$0.0

$0.0

$0.0



Equity in the income of equity method investee

$0.0

$0.0

$0.0



Adjusted EBITDA

$30.5

$14.7

$27.7








 

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SOURCE Genie Energy Ltd.

Copyright 2022 PR Newswire

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