NEWARK, N.J., March 10, 2022 /PRNewswire/ -- Genie Energy, Ltd.
(NYSE: GNE, GNEPRA), a leading retail energy provider in
deregulated markets in the United
States and Scandinavia and a provider of renewable energy
solutions in the U.S., today announced results for its fourth
quarter and full-year ended December 31,
2021.
"Genie finished the year on a high note, reporting strong
numbers across our three segments," said Michael Stein, chief executive officer. "We were
well-positioned from a risk management perspective heading into the
Winter months in our U.S. retail business (GRE), which allowed us
to focus on higher-margin customers as lower margin aggregation
deals expired. This rotation drove a 900-basis point expansion in
gross margin in the segment year over year.
"Our strong position in Scandinavia (GREI) led to 63% revenue
growth and 51% gross margin growth for the year. During the second
half of the year, this market began to consolidate as higher energy
prices decreased the number of market participants. We took
advantage of these conditions with a small acquisition in the
fourth quarter and will continue to put our balance sheet to work
should additional opportunities arise.
"I was also encouraged by key trends in our renewables business.
Gross profit increased 26%, and gross margin was up nearly 400%, as
we transitioned from revenue generated by panel sales to service
revenue. In 2022, we expect revenue and gross profit to accelerate
as projects we signed or began in 2021 are completed in 2022.
"Finally, we finished with the strongest balance sheet we've had
in recent years. The balance sheet, combined with our strong
operating performance, gave us the confidence to reinstate our
quarterly dividend, yielding approximately 5% at the time of the
announcement. Overall, the fourth quarter and full-year 2021 were
successful for Genie, and I'm very optimistic about our financial
and operational outlook for 2022," concluded Stein.
Fourth Quarter 2021 Highlights (versus 4Q20 unless otherwise noted)
- Revenue increased 5.3% to $84.7 million;
- Gross profit increased 53.0% to $29.6 million, and gross margin increased to 34.9% from 24.0%;
- Income from operations increased to $10.7 million from $1.3
million; operating
margin increased to 12.7% from 1.6%;
-
Adjusted EBITDA1 increased to $12.5
million from $2.5 million;
- GRE generated income from operations and Adjusted EBITDA of
$8.7 million and $8.8 million, compared to $5.3 million and $5.4
million, respectively;
- Net income attributable to GNE common stockholders was
$29.2 million, and diluted income per
share (EPS) was $1.12 compared
to a net loss of ($1.7) million and
diluted loss per share of ($0.06).
Full-Year 2021 Highlights (versus 2020 unless otherwise noted)
- Revenue increased 1.9% to $363.7 million;
- Gross profit increased 10.3% to $104.9 million, and gross margin increased to 28.8% from 26.6%;
- Income from operations increased 51.3% to $33.1 million from $21.9
million; operating
margin decreased to 9.1% from 6.1%;
-
Adjusted EBITDA increased to $37.7 million;
- GRE generated income from operations and Adjusted EBITDA of
$34.7 million and $36.0 million, compared to $36.5 million and $37.4 million,
respectively;
- Net income attributable to GNE common stockholders of
$30.8 million, and diluted EPS of
$1.17 (including $0.28 per share related to the Company's exit
from the U.K. market) compared to net income of $11.7 million and
diluted EPS of $0.44;
- Re-purchased 622,932
shares of GNE common stock for $3.8 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
reconciliations to its most directly comparable GAAP
measure.
Select Financial
Metrics: 2021 versus 2020 as of 12/31/21*
|
(in $M
except for EPS)
|
Q421
|
Q420
|
Change
|
2021
|
2020
|
Change
|
Total
Revenue
|
$84.7
|
$80.5
|
5.3%
|
$363.7
|
$356.9
|
1.9%
|
Genie Retail - US
(GRE)
|
$67.9
|
$69.9
|
-2.9%
|
$311.8
|
$304.4
|
2.4%
|
Electricity
|
$54.9
|
$60.5
|
-9.3%
|
$273.0
|
$270.9
|
0.8%
|
Natural
Gas
|
$12.9
|
$9.4
|
38.0%
|
$38.8
|
$33.6
|
15.6%
|
Genie Retail -
International (GREI)**
|
$15.5
|
$9.4
|
64.3%
|
$44.4
|
$27.3
|
62.8%
|
Electricity
|
$15.2
|
$9.3
|
63.7%
|
$43.3
|
$26.6
|
62.6%
|
Other
|
$0.3
|
$0.1
|
103.8%
|
$1.1
|
$0.6
|
69.9%
|
Genie
Renewables
|
$1.3
|
$1.1
|
19.3%
|
$7.5
|
$25.2
|
-70.2%
|
Gross
Margin
|
34.9%
|
24.0%
|
1089bps
|
28.8%
|
26.6%
|
220bps
|
Genie Retail - US
(GRE)
|
34.5%
|
25.5%
|
900bps
|
29.1%
|
29.0%
|
14bps
|
Genie Retail -
International (GREI)
|
37.8%
|
19.2%
|
1855bps
|
25.2%
|
16.6%
|
862bps
|
Genie
Renewables
|
21.5%
|
-29.0%
|
5047bps
|
37.1%
|
8.8%
|
2829bps
|
Income from
Operations
|
$10.7
|
$1.3
|
731.5%
|
$33.1
|
$21.9
|
51.3%
|
Operating
Margin
|
12.7%
|
1.6%
|
1107bps
|
9.1%
|
6.1%
|
297bps
|
Net income
attributable to Discontinued Operations
|
$26.3
|
$2.0
|
nm
|
$5.5
|
$0.8
|
636.3%
|
Net income (loss)
attributable to GNE common stockholders
|
$29.2
|
($1.7)
|
nm
|
$29.1
|
$11.7
|
149.3%
|
Diluted Earnings
(Loss) Per Share
|
$1.12
|
($0.06)
|
nm
|
$1.11
|
$0.44
|
154.0%
|
Adjusted
EBITDA1
|
$12.5
|
$2.5
|
401.7%
|
$37.7
|
$27.4
|
37.6%
|
Cash Flow from
Continuing Operating Activities***
|
$21.0
|
$1.2
|
nm
|
$21.3
|
$25.1
|
-14.8%
|
nm = not
measurable/meaningful
|
|
|
|
|
|
|
*Numbers may not add
due to rounding
|
|
|
|
|
|
|
** Orbit UK has been
classified as a discontinued operation, and its results excluded
from current and historical results
*** Net cash provided
by operating activities
|
|
|
Select Business
Metrics: 2021 versus 2020 as of 12/31/21**
|
Units in
1000s
|
Q421
|
Q420
|
Change
|
Retail Performance
Metrics:
|
|
|
|
Retail Customer
Equivalents (RCE)
|
301
|
389
|
(22.6%)
|
Genie Retail - US
(GRE)***
|
260
|
337
|
(22.8%)
|
Electricity
|
189
|
284
|
(33.4%)
|
Natural
Gas
|
71
|
53
|
33.5%
|
Genie Retail -
International (GREI)
|
40
|
51
|
(21.5%)
|
Electricity
|
40
|
51
|
(21.5%)
|
Natural
Gas
|
---
|
---
|
|
Meters in
1000s units
|
352
|
441
|
(20.1%)
|
Genie Retail - US
(GRE)
|
285
|
368
|
(22.5%)
|
Electricity
|
210
|
303
|
(30.6%)
|
Natural
Gas
|
75
|
65
|
15.9%
|
Genie Retail -
International (GREI)
|
67
|
73
|
(8.2%)
|
Electricity
|
67
|
73
|
(8.2%)
|
Natural
Gas
|
---
|
---
|
---
|
GRE Average
Monthly Churn - Meters***
|
|
|
|
Gross
Sales
|
33
|
59
|
(44.1%)
|
Churn
|
6.2%
|
5.3%
|
90bps
|
** Orbit UK has been
classified as a discontinued operation and its results excluded
from current and historical results
|
*** Excludes impact
from the expiration aggregation deals
|
|
|
|
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 electricity and
natural gas prices rose sharply. Operationally, GRE served
260k RCEs on December 31, 2021,
a drop from the prior quarter-end as an aggregation deal did not
renew, and the Company allowed certain less profitable meters to
attrit in advance of the winter. While decreasing slightly compared
to the year-ago quarter, per meter consumption remained well above
pre-COVID levels. In addition, at 6.2% (excluding the impact from
the expired aggregation deal), monthly churn was higher than usual
due to the strategic decision not to renew certain customers.
Looking ahead into 2022, the Company expects to increase its
investment in new customer acquisition.
GREI revenue and Adjusted EBITDA growth were driven by higher
consumption and mark to market prices in Scandinavia, which also
benefitted gross margin.
Genie Renewables, which was re-organized to focus on
higher-margin services projects, delivered a gross margin of 21.5%
versus (29%) in the fourth quarter of 2020.
Balance Sheet and Cash Flow Highlights
On December 31, 2021, Genie Energy reported
$229.0 million in total assets,
including $103.5 million in cash,
restricted cash and marketable equity securities. Liabilities
totaled $116.7 million, and working
capital (current assets less current liabilities) totaled
$86.1 million. Non-current
liabilities were $2.4 million.
Subsequent to the end of the fourth quarter, cash and current
liabilities were reduced by $21.5
million related to the exit from the U.K. market.
During the quarter ended December 31,
2021, cash provided by operating activities was $21.0 million compared to $1.2 million a year ago.
2022 Commentary
"For the first quarter to date, GRE
and GREI, which are predominantly electricity-based, have been
insulated against the volatility of energy prices due to our strong
risk management programs. We continue to monitor our commodity
positions vis-Ã -vis our customer portfolio in light of the current
geopolitical climate, but we believe these businesses remain
well-positioned.
"Beyond the first quarter, we currently plan to invest in sales
and marketing activities to drive customer growth in GRE and GREI.
Genie Renewables is positioned for robust growth during 2022 with
current solar project signed contracts that, if constructed and
completed, would triple our solar revenue from 2021. Overall, we
expect Genie Renewables to deliver $15-20 million of revenue in 2022 while we
continue to invest in opportunities that will drive medium to
long-term growth," concluded Stein.
Trended Financial
Information:*,**
|
(in $M
except for EPS, RCE and Meters)
|
Q120
|
Q220
|
Q320
|
Q420
|
Q121
|
Q221
|
Q321
|
Q421
|
|
2020
|
2021
|
Total
Revenue
|
$104.1
|
$76.1
|
$96.3
|
$80.5
|
$107.5
|
$76.4
|
$95.1
|
$84.7
|
|
$356.9
|
$363.7
|
Genie Retail - US
(GRE)
|
$79.1
|
$66.5
|
$88.9
|
$69.9
|
$90.7
|
$67.0
|
$86.3
|
$67.9
|
|
$304.4
|
$311.8
|
Electricity
|
$63.1
|
$61.1
|
$86.2
|
$60.5
|
$73.4
|
$91.9
|
$82.8
|
$54.9
|
|
$270.9
|
$273.0
|
Natural
Gas
|
$16.1
|
$5.4
|
$2.7
|
$9.4
|
$17.3
|
$5.1
|
$3.5
|
$12.9
|
|
$33.6
|
$38.8
|
Genie Retail -
International (GREI)**
|
$7.0
|
$5.0
|
$5.8
|
$9.4
|
$14.3
|
$7.1
|
$7.5
|
$15.5
|
|
$27.3
|
$44.4
|
Electricity
|
$6.9
|
$4.8
|
$5.6
|
$9.3
|
$14.2
|
$6.8
|
$7.1
|
$15.2
|
|
$26.6
|
$43.3
|
Other
|
$0.1
|
$0.2
|
$0.2
|
$0.1
|
$0.1
|
$0.3
|
$0.4
|
$0.3
|
|
$0.6
|
$1.1
|
Genie
Renewables
|
$18.0
|
$4.6
|
$1.6
|
$1.1
|
$2.5
|
$2.3
|
$1.3
|
$1.3
|
|
$25.2
|
$7.5
|
Gross
Margin
|
27.8%
|
25.6%
|
28.4%
|
24.0%
|
11.8%
|
27.8%
|
43.5%
|
34.9%
|
|
26.6%
|
28.8%
|
Genie Retail - US
(GRE)
|
34.9%
|
25.7%
|
29.0%
|
25.5%
|
16.5%
|
27.4%
|
39.6%
|
34.5%
|
|
29.0%
|
29.1%
|
Genie Retail -
International (GREI)
|
-4.1%
|
38.0%
|
18.7%
|
19.2%
|
-23.9%
|
27.9%
|
91.0%
|
37.8%
|
|
16.6%
|
25.2%
|
Genie
Renewables
|
8.9%
|
11.4%
|
29.1%
|
-29.0%
|
44.9%
|
39.4%
|
34.0%
|
21.5%
|
|
8.8%
|
37.1%
|
Income (loss) from
Operations
|
$9.2
|
$2.7
|
$8.6
|
$1.3
|
($5.5)
|
$4.5
|
$23.3
|
$10.7
|
|
$21.9
|
$33.1
|
Operating
Margin
|
8.9%
|
3.6%
|
9.0%
|
1.6%
|
-5.1%
|
5.9%
|
24.5%
|
12.7%
|
|
6.1%
|
9.1%
|
Net income (loss)
attributable to
Discontinued Operations
|
$0.0
|
($1.1)
|
($0.1)
|
$2.0
|
($1.1)
|
($3.2)
|
($16.4)
|
$26.3
|
|
$0.8
|
$5.5
|
Net income (loss)
attributable to GNE
common stockholders
|
$5.5
|
$1.6
|
$6.4
|
($1.7)
|
($2.4)
|
$5.0
|
($2.7)
|
$29.2
|
|
$11.7
|
$29.1
|
Diluted Earnings
(Loss) Per Share
|
$0.20
|
$0.06
|
$0.24
|
($0.06)
|
($0.09)
|
$0.19
|
($0.11)
|
$1.12
|
|
$0.44
|
$1.11
|
Adjusted
EBITDA
|
$10.3
|
$5.0
|
$9.6
|
$2.5
|
($4.4)
|
$5.5
|
$24.2
|
$12.5
|
|
$27.4
|
$37.7
|
Retail Performance
Metrics:
|
|
|
|
|
|
|
|
|
|
|
|
Retail Customer
Equivalents (RCE) in 1000s
|
360
|
375
|
391
|
389
|
400
|
384
|
383
|
301
|
|
nm
|
nm
|
Genie Retail - US
(GRE)
|
330
|
343
|
350
|
337
|
347
|
330
|
336
|
260
|
|
nm
|
nm
|
Electricity
|
272
|
288
|
294
|
284
|
291
|
272
|
276
|
189
|
|
nm
|
nm
|
Natural
Gas
|
58
|
55
|
56
|
53
|
56
|
58
|
60
|
71
|
|
nm
|
nm
|
Genie Retail -
International (GREI)
|
30
|
32
|
41
|
51
|
53
|
55
|
46
|
40
|
|
nm
|
nm
|
Electricity
|
30
|
32
|
41
|
51
|
53
|
55
|
46
|
40
|
|
nm
|
nm
|
Natural
Gas
|
---
|
---
|
---
|
---
|
---
|
---
|
---
|
---
|
|
nm
|
nm
|
Meters in 1000s
units
|
431
|
426
|
438
|
441
|
447
|
434
|
428
|
352
|
|
nm
|
nm
|
Genie Retail - US
(GRE)***
|
384
|
374
|
375
|
368
|
373
|
361
|
361
|
285
|
|
nm
|
nm
|
Electricity
|
313
|
311
|
309
|
303
|
308
|
292
|
289
|
210
|
|
nm
|
nm
|
Natural
Gas
|
71
|
64
|
67
|
65
|
65
|
69
|
72
|
75
|
|
nm
|
nm
|
Genie Retail -
International (GREI)
|
47
|
51
|
63
|
73
|
74
|
74
|
67
|
67
|
|
nm
|
nm
|
Electricity
|
47
|
51
|
63
|
73
|
74
|
74
|
67
|
67
|
|
nm
|
nm
|
Natural
Gas
|
---
|
---
|
---
|
---
|
---
|
---
|
---
|
---
|
|
nm
|
nm
|
GRE Average
Monthly Churn - Meters***
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
69
|
40
|
44
|
59
|
60
|
35
|
46
|
33
|
|
212
|
144
|
Churn
|
4.3%
|
3.9%
|
3.7%
|
5.3%
|
4.9%
|
3.8%
|
4.0%
|
6.2%
|
|
4.4%
|
4.5%
|
nm = not
measurable/meaningful
|
|
|
|
|
|
|
|
|
|
|
|
*Numbers may not add
due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
** Orbit UK has been
classified as a discontinued operation and its results excluded
from current and historical results
|
|
|
|
|
|
*** Excludes impact
from the expiration of aggregation deals
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Announcement and Supplemental
Information
Genie Energy will issue an earnings release over
a wire service and post it in the "Investors" section of the Genie
Energy website (https://genie.com/investors/investor-relations/) at
7:30 AM Eastern. The release also
will be filed in a current report (Form 8-K) with the SEC.
At 8:30 AM Eastern, 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 U.S.) or 1-973-528-0011 (international) and
provide the following participant access code: 712004.
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 PIN: 44740.
The replay will remain available through March 17, 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 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 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
|
|
|
December
31
|
|
(in thousands,
except per share amounts)
|
|
2021
|
|
|
2020
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
95,492
|
|
|
$
|
31,902
|
|
Restricted
cash—short-term
|
|
|
6,657
|
|
|
|
6,271
|
|
Marketable equity
securities
|
|
|
1,336
|
|
|
|
5,089
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $6,365 and
$4,819 at December 31, 2021 and 2020, respectively
|
|
|
52,357
|
|
|
|
48,370
|
|
Inventory
|
|
|
17,720
|
|
|
|
16,930
|
|
Prepaid
expenses
|
|
|
4,994
|
|
|
|
4,453
|
|
Other current
assets
|
|
|
21,789
|
|
|
|
3,166
|
|
Other current assets
of discontinued operations
|
|
|
—
|
|
|
|
17,639
|
|
TOTAL CURRENT
ASSETS
|
|
|
200,345
|
|
|
|
133,820
|
|
Property and
equipment, net
|
|
|
297
|
|
|
|
247
|
|
Goodwill
|
|
|
11,755
|
|
|
|
11,879
|
|
Other intangibles,
net
|
|
|
3,648
|
|
|
|
4,689
|
|
Deferred income tax
assets, net
|
|
|
3,804
|
|
|
|
5,099
|
|
Other
assets
|
|
|
9,162
|
|
|
|
7,480
|
|
Noncurrent assets of
discontinued operations
|
|
|
—
|
|
|
|
24,125
|
|
TOTAL
ASSETS
|
|
$
|
229,010
|
|
|
$
|
187,339
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Loans
payable
|
|
$
|
—
|
|
|
$
|
1,453
|
|
Trade accounts
payable
|
|
|
33,554
|
|
|
|
26,928
|
|
Accrued
expenses
|
|
|
39,523
|
|
|
|
35,015
|
|
Income taxes
payable
|
|
|
9,337
|
|
|
|
1,893
|
|
Due to IDT
Corporation
|
|
|
532
|
|
|
|
257
|
|
Other current
liabilities
|
|
|
2,125
|
|
|
|
2,891
|
|
Current liabilities
of discontinued operations
|
|
|
29,200
|
|
|
|
29,036
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
114,271
|
|
|
|
97,473
|
|
Other
liabilities
|
|
|
2,384
|
|
|
|
2,002
|
|
Noncurrent
liabilities of discontinued operations
|
|
|
—
|
|
|
|
1,785
|
|
TOTAL
LIABILITIES
|
|
|
116,655
|
|
|
|
101,260
|
|
Commitments and
contingencies (Note 15 and Note 16)
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
|
Genie Energy Ltd.
stockholders' equity:
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.01 par value; authorized shares – 10,000:
|
|
|
|
|
|
|
|
|
Series 2012-A,
designated shares – 8,750; at liquidation preference, consisting of
2,322 shares issued and outstanding at December 31, 2021 and
2020
|
|
|
19,743
|
|
|
|
19,743
|
|
Class A common stock,
$0.01 par value; authorized shares – 35,000; 1,574 shares issued
and outstanding at December 31, 2021 and 2020
|
|
|
16
|
|
|
|
16
|
|
Class B common stock,
$0.01 par value; authorized shares – 200,000; 26,620 and 25,966
shares issued and 24,615 and 24,646 shares outstanding at December
31, 2021 and 2020, respectively
|
|
|
266
|
|
|
|
260
|
|
Additional paid-in
capital
|
|
|
143,249
|
|
|
|
140,746
|
|
Treasury stock, at
cost, consisting of 2,005 and 1,320 shares of Class B common at
December 31, 2021 and 2020, respectively
|
|
|
(14,034)
|
|
|
|
(9,839)
|
|
Accumulated other
comprehensive income
|
|
|
3,160
|
|
|
|
3,827
|
|
Accumulated
deficit
|
|
|
(27,549)
|
|
|
|
(56,658)
|
|
Total Genie Energy
Ltd. stockholders' equity
|
|
|
124,851
|
|
|
|
98,095
|
|
Noncontrolling
interests
|
|
|
(12,503)
|
|
|
|
(12,016)
|
|
TOTAL
EQUITY
|
|
|
112,355
|
|
|
|
86,079
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
229,010
|
|
|
$
|
187,339
|
|
GENIE ENERGY
LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
Year ended
December 31,
|
(in thousands,
except per share data)
|
|
2021
|
|
|
2020
|
|
REVENUES:
|
|
|
|
|
|
|
Electricity
|
|
$
|
316,320
|
|
|
$
|
297,516
|
|
Natural gas
|
|
|
38,812
|
|
|
|
33,561
|
|
Other
|
|
|
8,593
|
|
|
|
25,853
|
|
Total revenues
|
|
|
363,725
|
|
|
|
356,930
|
|
Cost of revenues
|
|
|
258,864
|
|
|
|
261,877
|
|
GROSS PROFIT
|
|
|
104,861
|
|
|
|
95,053
|
|
OPERATING EXPENSES
AND LOSSES:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative (i)
|
|
|
71,770
|
|
|
|
71,784
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
1,397
|
|
Income from
operations
|
|
|
33,091
|
|
|
|
21,872
|
|
Interest income
|
|
|
34
|
|
|
|
190
|
|
Interest
expense
|
|
|
(427)
|
|
|
|
(328)
|
|
Unrealized (loss)
gain on marketable equity securities and investments
|
|
|
(4,970)
|
|
|
|
348
|
|
Gain on sale of
subsidiary
|
|
|
4,226
|
|
|
|
—
|
|
Other income, net
|
|
|
707
|
|
|
|
351
|
|
Income before income
taxes
|
|
|
32,661
|
|
|
|
22,433
|
|
Provision for income
taxes
|
|
|
(8,789)
|
|
|
|
(7,631)
|
|
NET INCOME FROM
CONTINUING OPERATIONS
|
|
|
23,872
|
|
|
|
14,802
|
|
Income from
discontinued operations, net of tax
|
|
|
5,536
|
|
|
|
752
|
|
NET
INCOME
|
|
|
29,408
|
|
|
|
15,554
|
|
Net loss (income)
attributable to noncontrolling interests
|
|
|
1,372
|
|
|
|
(2,399)
|
|
NET INCOME
ATTRIBUTABLE TO GENIE ENERGY LTD.
|
|
|
30,780
|
|
|
|
13,155
|
|
Dividends on
preferred stock
|
|
|
(1,678)
|
|
|
|
(1,481)
|
|
NET INCOME
ATTRIBUTABLE TO GENIE ENERGY LTD. COMMON
STOCKHOLDERS
|
|
$
|
29,102
|
|
|
$
|
11,674
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Genie Energy Ltd. common stockholders
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
$
|
23,566
|
|
|
$
|
10,922
|
|
Income
from discontinued operations
|
|
|
5,536
|
|
|
|
752
|
|
Net income
attributable to Genie Energy Ltd.
|
|
$
|
29,102
|
|
|
$
|
11,674
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributed to Genie Energy Ltd. common stockholders
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.91
|
|
|
$
|
0.42
|
|
Income from
discontinued operations
|
|
|
0.21
|
|
|
|
0.03
|
|
Net income
attributable to Genie Energy Ltd. common stockholders
|
|
$
|
1.12
|
|
|
$
|
0.45
|
|
Diluted
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
$
|
0.90
|
|
|
$
|
0.41
|
|
Income from
discontinued operations
|
|
|
0.21
|
|
|
|
0.03
|
|
Net income
attributable to Genie Energy Ltd. common stockholders
|
|
$
|
1.11
|
|
|
$
|
0.44
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares used in the calculation of earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
|
25,879
|
|
|
|
26,109
|
|
Diluted
|
|
|
26,316
|
|
|
|
26,813
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
—
|
|
|
$
|
0.33
|
|
(i) Stock-based
compensation included in selling, general and administrative
expenses
|
|
$
|
2,930
|
|
|
$
|
1,134
|
|
GENIE ENERGY
LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Year ended
December 31,
|
(in
thousands)
|
|
2021
|
|
|
2020
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
Net income
|
|
$
|
29,408
|
|
|
$
|
15,554
|
|
Net income from
discontinued operations, net of tax
|
|
|
5,536
|
|
|
|
752
|
|
Net income from
continuing operations
|
|
|
23,872
|
|
|
|
14,802
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,282
|
|
|
|
2,962
|
|
Deferred income taxes
|
|
|
1,296
|
|
|
|
7,055
|
|
Provision for
doubtful accounts receivable
|
|
|
1,750
|
|
|
|
2,844
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
1,397
|
|
Stock-based
compensation
|
|
|
2,930
|
|
|
|
1,134
|
|
Equity in the net
income of equity method investees
|
|
|
(438)
|
|
|
|
(59)
|
|
Loss on sale of
assets, net
|
|
|
—
|
|
|
|
262
|
|
Unrealized loss
(gain) on marketable equity securities and investment
|
|
|
4,970
|
|
|
|
(348)
|
|
Gain on sale of
subsidiary
|
|
|
(4,226)
|
|
|
|
—
|
|
Gain on
deconsolidation of subsidiaries
|
|
|
—
|
|
|
|
(98)
|
|
Change in assets and
liabilities, net of effect of acquisition:
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
(7,473)
|
|
|
|
(2,281)
|
|
Inventory
|
|
|
(790)
|
|
|
|
(298)
|
|
Prepaid expenses
|
|
|
(932)
|
|
|
|
1,894
|
|
Other current assets
and other assets
|
|
|
(20,358)
|
|
|
|
(4,011)
|
|
Trade accounts
payable, accrued expenses and other current liabilities
|
|
|
11,713
|
|
|
|
(405)
|
|
Due to IDT
Corporation
|
|
|
275
|
|
|
|
(124)
|
|
Income taxes payable
|
|
|
7,444
|
|
|
|
302
|
|
Net cash provided by
operating activities of continuing operations
|
|
|
21,315
|
|
|
|
25,028
|
|
Net cash provided by
(used in) discontinued operations
|
|
|
45,679
|
|
|
|
(1,909)
|
|
Net cash provided by
operating activities
|
|
|
66,994
|
|
|
|
23,119
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(126)
|
|
|
|
(167)
|
|
Purchase of marketable equity security and investment
|
|
|
(1,000)
|
|
|
|
(5,000)
|
|
Proceeds from the sale of subsidiary, net of cash
disposed
|
|
|
4,550
|
|
|
|
—
|
|
Purchase of short-term equity investments
|
|
|
(750)
|
|
|
|
—
|
|
Repayment of notes receivables
|
|
|
13
|
|
|
|
12
|
|
Proceeds from sale of assets
|
|
|
—
|
|
|
|
2,672
|
|
Net cash provided by
(used in) investing activities of continuing operations
|
|
|
2,687
|
|
|
|
(2,483)
|
|
Net cash used in
investing activities of discontinued operations
|
|
|
—
|
|
|
|
(544)
|
|
Net cash provided by
(used in) investing activities
|
|
|
2,687
|
|
|
|
(3,027)
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
(1,480)
|
|
|
|
(10,142)
|
|
Purchases of Class B common stock
|
|
|
(3,847)
|
|
|
|
(1,704)
|
|
Repurchases of Class B common stock from employees
|
|
|
(348)
|
|
|
|
(460)
|
|
Repayment of notes payable
|
|
|
—
|
|
|
|
(867)
|
|
Proceeds from exercise of stock options
|
|
|
—
|
|
|
|
28
|
|
Proceeds from revolving line of credit
|
|
|
—
|
|
|
|
1,000
|
|
Repayment of revolving line of credit
|
|
|
—
|
|
|
|
(3,514)
|
|
Proceeds from loan
|
|
|
—
|
|
|
|
1,395
|
|
Repayment of loan payable
|
|
|
—
|
|
|
|
(930)
|
|
Net cash used in
financing activities of continuing operations
|
|
|
(5,675)
|
|
|
|
(15,194)
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted cash
|
|
|
(30)
|
|
|
|
(268)
|
|
Net increase in cash,
cash equivalents and restricted cash
|
|
|
63,976
|
|
|
|
4,630
|
|
Cash, cash
equivalents and restricted cash (including discontinued operations)
at beginning of year
|
|
|
38,173
|
|
|
|
38,554
|
|
Cash, cash
equivalents and restricted cash (including discontinued operations)
at end of year
|
|
|
102,149
|
|
|
|
43,184
|
|
Less: Cash of
discontinued operations at end of year
|
|
|
—
|
|
|
|
(5,011)
|
|
Cash and cash
equivalents and restricted cash (excluding discontinued operations)
at end of year
|
|
$
|
102,149
|
|
|
$
|
38,173
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
|
Cash payments made
for interest
|
|
$
|
433
|
|
|
$
|
333
|
|
Cash payments made
for income taxes
|
|
$
|
49
|
|
|
$
|
741
|
|
Reconciliation of Non-GAAP Financial Measures for the Fourth
Quarter and Full Year 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 fourth quarter and full year 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
NON-GAAP
RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
$M)
|
Q120
|
Q220
|
Q320
|
Q420
|
Q121
|
Q221
|
Q321
|
Q421
|
|
2021
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Genie Energy Limited
|
$
5.8
|
$
2.0
|
$
6.7
|
$
(1.4)
|
$
(2.0)
|
$
5.4
|
$
(2.3)
|
$
29.7
|
|
$
30.8
|
$
13.2
|
|
|
|
|
Net income (los)s
attributable to non-controlling interests
|
0.6
|
(1.1)
|
(0.5)
|
3.4
|
(0.7)
|
(0.1)
|
(0.0)
|
(0.6)
|
|
(1.4)
|
2.4
|
|
|
|
|
Net income
(loss)
|
6.4
|
0.9
|
6.2
|
2.1
|
(2.7)
|
5.3
|
(2.3)
|
29.2
|
|
29.4
|
15.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
(0.0)
|
1.1
|
0.1
|
(2.0)
|
1.1
|
3.2
|
16.4
|
(26.3)
|
|
(5.5)
|
(0.8)
|
|
|
|
|
Provision for income
taxes
|
2.6
|
1.0
|
2.4
|
1.6
|
0.5
|
3.2
|
3.8
|
1.3
|
|
8.8
|
7.6
|
|
|
|
|
Other income,
net
|
0.2
|
(0.3)
|
(0.1)
|
(0.2)
|
(0.4)
|
(0.0)
|
(0.0)
|
(0.2)
|
|
(0.7)
|
(0.4)
|
|
|
|
|
Gain on sale of a
subsidiary
|
-
|
-
|
-
|
-
|
-
|
(4.2)
|
-
|
-
|
|
(4.2)
|
-
|
|
|
|
|
Unrealized gain
(loss) on marketable equity securities and investments
|
-
|
-
|
-
|
(0.3)
|
(4.1)
|
(2.9)
|
5.3
|
6.7
|
|
5.0
|
(0.3)
|
|
|
|
|
Interest
income
|
(0.1)
|
(0.0)
|
(0.0)
|
(0.0)
|
(0.0)
|
(0.0)
|
(0.0)
|
(0.0)
|
|
(0.0)
|
(0.2)
|
|
|
|
|
Interest
expense
|
0.1
|
0.1
|
0.0
|
0.1
|
0.1
|
0.1
|
0.1
|
0.1
|
|
0.4
|
0.3
|
|
|
|
|
Income (loss) from
operations
|
9.2
|
2.7
|
8.6
|
1.3
|
(5.5)
|
4.5
|
23.3
|
10.7
|
|
33.1
|
21.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
0.5
|
0.4
|
0.4
|
(0.2)
|
0.6
|
0.6
|
0.5
|
1.3
|
|
2.9
|
1.1
|
|
|
|
|
Depreciation and
amortization
|
0.8
|
0.7
|
0.7
|
0.7
|
0.4
|
0.3
|
0.3
|
0.3
|
|
1.3
|
3.0
|
|
|
|
|
Impairment
|
0.2
|
0.8
|
-
|
0.4
|
-
|
-
|
(0.0)
|
0.0
|
|
-
|
1.4
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in the net
income of equity method investees
|
0.4
|
(0.3)
|
0.1
|
(0.3)
|
(0.1)
|
(0.1)
|
(0.1)
|
(0.2)
|
|
(0.4)
|
(0.1)
|
|
|
|
|
Adjusted
EBITDA
|
$
10.3
|
$
5.0
|
$
9.6
|
$
2.5
|
$
(4.4)
|
$
5.5
|
$
24.2
|
$
12.5
|
|
$
37.7
|
$
27.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Genie Energy Ltd.