Newark, NJ, Nov. 06, 2024 (GLOBE NEWSWIRE) —Genie Energy, Ltd. (NYSE: GNE), a leading retail energy and renewable energy solutions provider, today announced results for the third quarter of 2024.
Michael Stein, chief executive officer of Genie Energy, commented:
“Our third quarter featured strong operational and financial results consistent with our performance in recent quarters. We are on track to deliver the high end of our full year Adjusted EBITDA guidance of $40 to $50 million.
“At GRE, our retail energy business, we added 36,000 net new meters during the quarter driven by organic sales activity and a large aggregation deal. Electricity and gas margins remained robust, while slightly milder summer weather contributed to a reduction in per-meter electricity consumption. The decrease in per-meter consumption in combination with increased sales costs drove comparative, year-over-year decreases in revenue and profitability. Looking ahead, we have begun the process of entering the California gas market as we continue to diversify our geographic footprint, and see generally favorable meter acquisition and operating environments across our retail markets.
“We have been strategically repositioning GREW, our renewables business, for stronger top line growth and improved operating margins. That effort began to pay off this quarter. Diversegy, our energy advisory and brokerage business, nearly doubled revenue year over year and turned Adjusted EBITDA1 positive.
“At Genie Solar, we are tightening our focus on the utility scale solar generation market and moving away from commercial and industrial generation projects. This shift enabled us to lock in strong gross profits, which increased exponentially compared to the year ago quarter, while significantly reducing SG&A expense. We also further expanded Genie Solar’s development pipeline, gaining site control for an additional six projects while moving another to the permitting stage. All in, GREW delivered outstanding third quarter results.”
Third Quarter 2024 Highlights
(Unless otherwise noted, 3Q24 results are compared to 3Q23, and results of Genie Retail Energy International (GREI) are included in discontinued operations for all periods.)
- Revenue decreased 10.5% to $111.9 million from $125.0 million;
- Gross profit decreased 7.7% to $37.9 million from $41.1 million. Gross margin increased to 33.9% from 32.9%;
- Income from operations decreased to $11.7 million from $17.9 million;
- Adjusted EBITDA1 decreased to $13.6 million from $18.5 million;
- Net income attributable to Genie common stockholders and income per diluted share EPS attributable to Genie common stockholders of $10.2 million and $0.38 compared to $14.5 million and $0.53, respectively;
- Non-GAAP net income1 and non-GAAP EPS1 attributable to Genie common stockholders of $10.9 million and $0.41 compared to $14.5 million and $0.53, respectively;
- Cash and cash equivalents, short and long-term restricted cash, and marketable equity securities increased to $191.7 million at September 30, 2024, from $178.3 million at June 30, 2024;
- Genie repurchased approximately 123,000 shares of its Class B Common stock for $2.0 million during 3Q24;
- Genie will pay a $0.075 per share quarterly dividend to Class A and Class B common stockholders on November 20, 2024, with a record date of November 12, 2024.
1Adjusted EBITDA, Non-GAAP net income (loss) attributable to Genie Energy Ltd. common stockholders, and Non-GAAP EPS for all periods presented are non-GAAP measures intended to provide useful information that supplements the core operating results in accordance with GAAP for 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 these non-GAAP metrics, as well as reconciliations to its most directly comparable GAAP measures.
Select Financial Metrics
| (in millions except for EPS)* | 3Q24 | 3Q23 | Change | ||||||||||||
| Total revenue | $ | 111.9 | $ | 125.0 | (10.5 | ) | % | ||||||||
| Genie Retail Energy | $ | 105.8 | $ | 120.3 | (12.1 | ) | % | ||||||||
| Electricity | $ | 100.7 | $ | 114.0 | (11.7 | ) | % | ||||||||
| Natural gas | $ | 5.1 | $ | 5.0 | 1.3 | % | |||||||||
| Others | $ | 0.1 | $ | 1.3 | (96.1 | ) | % | ||||||||
| Genie Renewables | $ | 6.1 | $ | 4.7 | 29.2 | % | |||||||||
| Gross margin | 33.9 | % | 32.9 | % | 100 | bps | |||||||||
| Genie Retail Energy | 33.8 | % | 33.9 | % | (10 | ) | bps | ||||||||
| Genie Renewables | 34.9 | % | 5.3 | % | 2,960 | bps | |||||||||
| Income from operations | $ | 11.7 | $ | 17.9 | (34.7 | ) | % | ||||||||
| Operating margin | 10.4 | % | 14.3 | % | (390 | ) | bps | ||||||||
| Net income from continuing operations | $ | 10.3 | $ | 14.5 | (29.3 | ) | % | ||||||||
| (Loss) income attributable to discontinued operations, net of tax | $ | (0.0 | ) | $ | (0.3 | ) | (91.8 | ) | % | ||||||
| Net income attributable to Genie common stockholders | $ | 10.2 | $ | 14.5 | (29.5 | ) | % | ||||||||
| Diluted earnings per share | $ | 0.38 | $ | 0.53 | $ | (0.15 | ) | ||||||||
| Non-GAAP net income attributable to Genie common stockholders | $ | 10.9 | $ | 14.5 | (24.4 | ) | % | ||||||||
| Non-GAAP diluted earnings per share | $ | 0.41 | $ | 0.53 | $ | (0.12 | ) | ||||||||
| Adjusted EBITDA | $ | 13.6 | $ | 18.5 | (26.7 | ) | % | ||||||||
| Cash flow from continuing operating activities | $ | 22.9 | $ | 28.0 | (18.4 | ) | % | ||||||||
| * | Numbers may not add due to rounding |
Segment Highlights
Genie Retail Energy (GRE)
GRE’s third quarter revenue decreased 12.1% to $105.8 million from $120.3 million last year. Income from operations decreased 31.6% to $15.0 million from $22.0 million, and Adjusted EBITDA decreased 30.7% to $15.5 million from $22.3 million. The decreases reflected a lower level of per meter electricity consumption, driven by milder weather compared to 3Q23, and an increase in customer acquisition activity and expense, partially offset by a slight increase in revenue per kWh sold.
GRE Operational Metrics
| (RCEs and Meters in thousands)* | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | |||||||||||||||
| RCEs | 375 | 350 | 348 | 345 | 380 | |||||||||||||||
| Electricity | 298 | 272 | 267 | 266 | 302 | |||||||||||||||
| Natural gas | 77 | 78 | 81 | 78 | 79 | |||||||||||||||
| Meters | 385 | 361 | 365 | 362 | 399 | |||||||||||||||
| Electricity | 304 | 279 | 281 | 278 | 311 | |||||||||||||||
| Natural gas | 81 | 82 | 83 | 84 | 87 | |||||||||||||||
| Gross adds | 60 | 52 | 70 | 53 | 104 | |||||||||||||||
| Churn** | 4.4 | % | 5.4 | % | 5.5 | % | 4.6 | % | 5.6 | % | ||||||||||
| * | Numbers may not add due to rounding | |
| ** | Excludes the impacts of aggregation deal expirations |
Genie Renewables (GREW)
GREW’s third quarter revenue increased 29.2% to $6.1 million from $4.7 million last year, driven by results from Diversegy, which nearly doubled its revenue compared to 3Q23, completion of various Genie Solar commercial and industrial solar generation projects for third parties, and by revenue from the operational solar arrays that Genie Solar acquired late last year.
GREW’s loss from operations decreased to $0.2 million from $2.1 million in 3Q23, and Adjusted EBITDA loss decreased to $24 thousand from $2.0 million.
At September 30, 2024, Genie Solar’s operating portfolio and development pipeline comprised:
| Pipeline | Total | Operational | Site Control | Permitting | Construction | |||||
| MW | 106 | 10 | 72 | 15 | 10 | |||||
| Project count | 20 | 1 | 14 | 3 | 2 |
During the quarter, portfolio and pipeline net additions totaled 21 MW and 6 projects.
Balance Sheet and Cash Flow Highlights
As of September 30, 2024, Genie reported cash and cash equivalents, short and long-term restricted cash, and marketable equity securities of $191.7 million.
Total assets as of September 30, 2024 were $341.7 million. Liabilities totaled $141.4 million, and working capital (current assets less current liabilities) totaled $138.8 million.
Cash provided by operating activities decreased to $22.9 million in 3Q24 from $28.0 million in 3Q23.
Trended Financial Information*
| (in millions except EPS)** | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 2022 | 2023 | ||||||||||||||||||||||||||||
| Total Revenue | $ | 105.3 | $ | 93.5 | $ | 125.0 | $ | 104.9 | $ | 119.7 | $ | 90.7 | $ | 111.9 | $ | 316.3 | $ | 428.7 | |||||||||||||||||||
| Genie Retail Energy | $ | 101.4 | $ | 89.7 | $ | 120.3 | $ | 98.4 | $ | 112.5 | $ | 86.7 | $ | 105.8 | $ | 304.7 | $ | 409.9 | |||||||||||||||||||
| Electricity | $ | 74.5 | $ | 80.2 | $ | 114.0 | $ | 82.1 | $ | 89.4 | $ | 78.3 | $ | 100.7 | $ | 241.8 | $ | 350.8 | |||||||||||||||||||
| Natural gas | $ | 26.9 | $ | 9.0 | $ | 5.0 | $ | 15.1 | $ | 22.4 | $ | 8.4 | $ | 5.1 | $ | 62.1 | $ | 56.0 | |||||||||||||||||||
| Others | $ | 0.0 | $ | 0.6 | $ | 1.3 | $ | 1.2 | $ | 0.7 | $ | 0.0 | $ | 0.1 | $ | 0.7 | $ | 3.1 | |||||||||||||||||||
| Genie Renewables | $ | 3.9 | $ | 3.7 | $ | 4.7 | $ | 6.5 | $ | 7.2 | $ | 4.0 | $ | 6.1 | $ | 11.6 | $ | 18.8 | |||||||||||||||||||
| Gross Profit | 33.3 | 38.2 | 41.1 | 33.6 | 33.8 | 33.3 | 37.9 | 155.5 | 146.2 | ||||||||||||||||||||||||||||
| Genie Retail Energy | 32.5 | 37.5 | 40.8 | 32.5 | 32.2 | 32.3 | 35.8 | 153.7 | 143.4 | ||||||||||||||||||||||||||||
| Genie Renewables | 0.7 | 0.7 | 0.3 | 1.1 | 1.6 | 1.1 | 2.1 | 1.8 | 2.8 | ||||||||||||||||||||||||||||
| Gross Margin | 31.6 | % | 40.9 | % | 32.9 | % | 32.1 | % | 28.2 | % | 36.8 | % | 33.9 | % | 49.2 | % | 34.1 | % | |||||||||||||||||||
| Genie Retail Energy | 32.1 | % | 41.8 | % | 33.9 | % | 33.0 | % | 28.6 | % | 37.2 | % | 33.8 | % | 50.4 | % | 35.0 | % | |||||||||||||||||||
| Genie Renewables | 19.3 | % | 19.6 | % | 5.3 | % | 17.2 | % | 22.0 | % | 26.8 | % | 34.9 | % | 15.6 | % | 15.1 | % | |||||||||||||||||||
| Income (loss) from operations | $ | 11.3 | $ | 15.0 | $ | 17.9 | $ | (34.2 | ) | $ | 9.8 | $ | 10.6 | $ | 11.7 | $ | 78.5 | $ | 10.0 | ||||||||||||||||||
| Operating margin | 10.7 | % | 16.1 | % | 14.3 | % | (32.6 | )% | 8.2 | % | 11.6 | % | 10.4 | % | 24.8 | % | 2.3 | % | |||||||||||||||||||
| Net income (loss) attributable to Genie common stockholders | $ | 14.3 | $ | 15.0 | $ | 14.5 | $ | (24.5 | ) | $ | 8.1 | $ | 9.6 | $ | 10.2 | $ | 85.9 | $ | 19.2 | ||||||||||||||||||
| Diluted earnings (loss) per share | $ | 0.54 | $ | 0.57 | $ | 0.53 | $ | (0.90 | ) | $ | 0.30 | $ | 0.36 | $ | 0.38 | $ | 3.26 | $ | 0.74 | ||||||||||||||||||
| Adjusted EBITDA | $ | 12.4 | $ | 15.8 | $ | 18.5 | $ | 11.4 | $ | 11.7 | $ | 12.0 | $ | 13.6 | $ | 83.2 | $ | 58.2 | |||||||||||||||||||
| * | Some Genie Retail Energy International (GREI) operations have been classified as a discontinued operation and their results excluded from current and historical results |
| ** | Numbers may not add due to rounding |
Earnings Announcement and Supplemental Information
At 8:30 AM Eastern this morning, Genie Energy’s management will host a conference call to discuss the Company’s 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 US) or 1-973-528-0016 (international) and provide the following participant access code: 644435.
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 passcode: 51441 . The replay will remain available through Wednesday, November 20, 2024. In addition, a recording of the call will be available for playback on the “Investors” section of the Genie Energy website.
About Genie Energy Ltd.
Genie Energy Ltd., (NYSE: GNE) is a leading retail energy and renewable energy solutions provider. The Genie Retail Energy division (GRE) supplies electricity, including electricity from renewable resources, and natural gas to residential and small business customers in the United States. The Genie Renewables division’s (GREW) holdings include Genie Solar, a vertically-integrated provider of community and utility-scale solar energy solutions, and Diversegy, an energy procurement advisor. For more information, visit Genie.com.
