Genie Energy Ltd. Reports First Quarter 2020 Results

NEWARK, N.J., May 7, 2020 /PRNewswire/ -- Genie Energy Ltd. (NYSE: GNE, GNEPRA) reported first quarter 2020 net income of $0.20 per diluted share on revenue of $104.1 million

Genie Energy is a leading provider of electricity and natural gas to homes and small businesses in the Eastern U.S. Genie also operates an E&P company with an active exploratory program in Northern Israel.

HIGHLIGHTS
(Throughout this release, 1Q20 results are compared to 1Q19 results unless otherwise noted)

  • Global RCEs served increased by 68,000 (20.4%) year over to year to 401,000.  
  • Global meters served increased by 133,000 (33.4%) year over to year to 532,000.
  • Genie generated the highest levels of quarterly revenue and gross profit in the company's history.
  • Consolidated revenue increased 20.1% to $104.1 million from $86.6 million driven by customer base growth.
  • Consolidated income from operations decreased to $9.2 million from $9.8 million in 1Q19, while Adjusted EBITDA* decreased to $10.3 million from $10.4 million
  • At Genie Retail Energy (GRE), our domestic REP business, income from operations decreased to $13.0 million from $13.5 million and Adjusted EBITDA* decreased to $13.3 from $13.8 million.
  • Genie's Board of Directors has approved an increase in the quarterly dividend per share of common stock to $0.085 from $0.075, an increase of 13%. The indicated annual dividend rate is now $0.34

COMMENTS OF MICHAEL STEIN, CEO
First, I want to acknowledge and thank our colleagues and employees.  I've been absolutely blown away by the hard work, efficiency and effectiveness of the Genie staff who are excelling every day despite all the distractions and stresses of working from home.  Thank you so much.  And all of us at Genie salute the first responders, nurses, doctors and law enforcement professionals who are doing amazing work caring for those who are ill.  Our thoughts and prayers go out to those who are suffering and their families.

"Genie Energy achieved very strong first quarter results.  Robust growth in our global customer base and strong margins helped us attain record levels of revenue and gross profit.  Our global customer base surpassed the 400,000-RCE and 500,000-meter milestones, powered by expansion in both our domestic and overseas markets. 

"Looking ahead, we anticipate that COVID-19 will have a mixed impact on our business operations and financial results. In the short run, with our predominantly residential book, we expect a positive impact from increased per-meter electricity consumption as our customers spend more time at home.  In addition, meter acquisition expense and customer churn are decreasing as the result of the industry-wide suspension of door-to- door meter acquisition.  On the other hand, restrictions on in-person sales and marketing will likely slow customer acquisition for the duration of the pandemic and may result in net meter attrition.

"We are working hard to calibrate our operations to address the challenges of the pandemic and have achieved success in the early stages.  Our outlook remains positive.  With our diversified markets, liquid balance sheet and very low level of long-term debt, we are positioned to build on the first quarter's terrific momentum.  In light of the resilience of our business and these underlying strengths, Genie's Board of Directors has increased our quarterly dividend 13% to $0.085 per share."

CONSOLIDATED RESULTS

$ in millions, except EPS

1Q20

4Q19

1Q19


1Q20-1Q19

Change (%/$)

Revenue

$104.1

$82.0

$86.6


+20.1%

Gross profit

$28.9

$22.0

$25.6


+13.0%

Gross margin percentage

27.8%

26.8%

29.5%


(170) BP

SG&A expense

$19.5

$19.3

$15.8


+23.8%

   Stock-based compensation included in SG&A

$0.5

-

$0.4


+7.8%

   Depreciation and amortization

$0.8

$0.8

$0.9


(9.3)%

Impairment of assets

$0.2

$0.4

-


+$0.2

Income from operations 

$9.2

$2.3

$9.8


(6.3)%

Adjusted EBITDA*

$10.3

$0.8

$10.4


(0.6)%

Equity in the net loss in equity method investees**

$(0.4)

$(2.7)

$(0.8)


+$0.4

Provision for income taxes

$(2.6)

$(1.5)

$(2.9)


+$0.3

Net income attributable to Genie Energy common stockholders

$5.5

-

$5.7


$(0.2)

Earnings per diluted share attributable to Genie Energy common stockholders

$0.20

-

$0.21


$(0.01)

Net cash (used in) provided by operating activities

$(2.7)

$0.2

$7.0


$(9.7)


* 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. 


** Genie Energy accounts for its investments in Orbit Energy, its joint venture operating in the U.K., and Atid, a drilling contractor based in Israel in which it holds a minority stake, under the equity method of accounting. Under this method, Genie Energy records its share in the net income or loss of the venture. Therefore, revenue generated and expenses incurred are not reflected in Genie Energy's consolidated revenue and expenses.  However, Orbit Energy's customers are included in metrics regarding our global customer base.

 

GLOBAL METERS AND RCEs

Genie Energy's global customer base increased sequentially and year-over-year driven by investment in customer acquisition in domestic and overseas markets.  Genie Energy's global RCE and meter totals are provided in the chart below.

Global RCEs and Meters
(in thousands)
***

March 31,
2020

December 31,
2019

September 30,
2019

June 30,
2019

March 31,
2019

Electricity RCEs

325

297

309

291

272

Natural gas RCEs

76

77

75

66

61

Total RCEs

401

374

384

357

333







Electricity meters

421

390

392

361

322

Natural gas meters

111

107

100

87

77

Total meters

532

497

492

448

399


*** Includes RCEs and meters acquired and served by Genie Energy's domestic and international retail energy provider businesses including operations in Finland and Japan and at Genie's joint venture in the U.K. (although U.K. operations are not included in our consolidated results of operations).

 

SEGMENT RESULTS

Genie Retail Energy (GRE)

GRE's financial results are summarized in the chart below:

Genie Retail Energy

$ in millions

1Q20

4Q19

1Q19


1Q20-1Q19

Change (%/$)

Total revenue

$79.1

$74.0

$76.5


+3.4%

   Electricity revenue

$63.1

$61.2

$57.8


+9.1%

   Natural gas revenue

$16.1

$12.9

$18.7


(14.1)%

Gross profit

$27.6

$22.0

$24.7


+11.9%

Gross margin percentage

34.9%

29.7%

32.3%


+260 BP

SG&A expense

$14.6

$13.8

$11.2


+30.5%

   Depreciation and amortization

$0.1

$0.2

$0.2


$(0.1)

Income from operations

$13.0

$8.2

$13.5


$(0.5)

Adjusted EBITDA*

$13.3

$8.5

$13.8


$(0.5)

GRE – KPIs and Take-Aways: 

  • Customers served at March 31, 2020 increased to 330,000 RCEs from 300,000 RCEs a year earlier. Meters served increased to 384,000 from 344,000. The robust increases reflect sustained investment in new customer acquisitions.
  • Gross meters added during 1Q20 totaled 69,000 compared to 85,000 in 1Q19 (including approximately 34,000 meters added through a municipal aggregation deal) and 56,000 in 4Q19. COVID-19 related public health restrictions did not significantly slow meter acquisition during 1Q20 but are expected to impact 2Q20 meter acquisition.
  • Average monthly churn decreased to 4.7% from 5.3% in 1Q19 and 6.1% in 4Q19.
  • Electricity revenue increased to $63.1 million from $57.8 million in 1Q19. The increase was driven by the growth of GRE's customer base partially offset by lower revenue per kWh sold.
  • Natural gas revenue decreased to $16.1 million from $18.7 million in 1Q19. The decrease was driven by lower consumption per customer and lower revenue per therm sold partially offset by an increase in customers served.
  • Income from operations decreased to $13.0 million from $13.5 million and Adjusted EBITDA decreased to $13.3 from $13.8 million as increased gross profit was offset by increased investment in customer acquisition and marketing.

Genie Retail Energy International (GRE International)

Genie Energy accounts for its investments in Orbit Energy, its joint venture operating in the U.K., under the equity method of accounting. Revenue generated, and expenses incurred, are not reflected in segment revenue and operating expenses. RCE and meter counts do, however, include Orbit Energy customers.

GRE International

$ in millions

1Q20

4Q19

1Q19


1Q20-1Q19

Change (%/$)

Total revenue

$7.0

$5.8

$4.8


+43.6%

Gross (loss) profit

$(0.3)

$(0.3)

-


$(0.3)

Gross profit percentage

(4.0)%

(5.0)%

-


(400) BP

SG&A expense

$2.2

$2.9

$1.7


+29.4%

Loss from operations

$(2.5)

$(3.2)

$(1.7)


$(0.8)

Adjusted EBITDA*

$(2.0)

$(5.6)

$(2.3)


+$0.3

Equity in the net loss in Orbit Energy**

-

$(2.5)

$(1.1)


+$1.1

GRE International – KPIs and Take-Aways: 

  • Customers served at March 31, 2020 increased to 72,000 RCEs from 33,000 RCEs and to 148,000 meters from 55,000 meters a year earlier led by growth of Orbit Energy's customer base in the U.K.
  • GRE International's revenue increased to $7.0 million compared to $4.8 million in 1Q19 primarily driven by the growth in Lumo Energia's customer base.
  • Loss from operations increased to $2.5 million from $1.7 million in 1Q19 reflecting increased investment in new meter acquisitions and the impact of the decline in global power markets on certain hedge positions.
  • Equity in the net loss of Orbit Energy was nil compared to a net loss of $1.1 million in 1Q19 reflecting the timing of capital contributions to Orbit Energy.
  • On a pro forma basis****, inclusive of Orbit Energy's revenue, GRE International's revenue increased to $26.6 million in 1Q20 from $8.8 million in 1Q19.
  • On a pro forma basis****, inclusive of Orbit Energy's loss from operations, GRE International's loss from operations was $4.8 million in 1Q20 compared to $3.4 million in 1Q19.

**** Pro forma results for all periods presented are non-GAAP measures intended to provide useful information that supplement the core operating results in accordance with GAAP of the relevant segment.  Please refer to the 'Reconciliation of Non-GAAP Financial Measures' at the end of this release for an explanation of the pro forma results as well as for reconciliations to their most directly comparable GAAP measures. 

Genie Energy Services (GES)

GES comprises Diversegy, a commercial energy consulting business, Genie's interest in Prism Solar, a supplier of solar panels and solutions, and Genie Solar Energy.

  • Revenue increased to $18.0 million from $5.3 million reflecting Prism Solar's delivery of a large number of orders. Genie Energy is currently exploring options to reduce overhead at Prism Solar due to changes in market conditions.
  • Income from operations was $0.3 million compared to a loss from operations of $0.2 million in 1Q19.

Genie Oil and Gas (GOGAS)

Genie Energy accounts for its minority interest in Atid, a drilling company based in Israel, under the equity method of accounting. Atid's revenue generated, and expenses incurred, are not reflected in segment revenue and operating expenses.

  • Operations at GOGAS' Afek oil and gas exploration subsidiary remain suspended pending final testing on an existing well, which is expected to take place as early as the first half of 2020. 
  • GOGAS' loss from operations was $0.2 million in both 1Q20 and 1Q19.

Corporate

  • Corporate loss from operations decreased to $1.4 million from $1.5 million in 1Q19.  The losses include the impact of corporate stock-based compensation which increased to $0.3 million from $0.2 million in 1Q19.

BALANCE SHEET AND CASH FLOW HIGHLIGHTS
At March 31, 2020, Genie Energy had $157.2 million in total assets, including $36.4 million in cash, cash equivalents and restricted cash.  Liabilities totaled $72.0 million and working capital (current assets less current liabilities) totaled $51.1 million an increase of $10.3 million from December 31, 2019. 

Cash used in operating activities in 1Q20 was $2.7 million compared to cash provided by operating activities of $7.0 million in 1Q19.  Operating cash flow in the quarter was negatively impacted by the deliveries of solar panels at Prism Solar (with cash payment having been made in 2019) and the posting of cash collateral in support of certain hedge positions at GRE.

DIVIDEND ON GENIE ENERGY COMMON STOCK
Genie's Board of Directors has declared a first quarter dividend of $0.085, a $0.01 increase from prior quarters, with a record date of May 19, 2020.  The dividend will be paid on or about May 29, 2020.  The distribution will be treated as an ordinary dividend for income tax purposes.

GENIE ENERGY EARNINGS CONFERENCE CALL
This earnings press release is available for download in the "Investors" section of the Genie Energy website (https://genie.com/investors/investor-relations/) and has been filed on a current report (Form 8-K) with the SEC.  

At 2:00 PM Eastern time today, May 7, 2020, 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 1-888-348-6472 (toll-free from the US) or 1-412-902-4240 (international) and request the Genie Energy conference call.

Approximately three hours after the call, a call replay will be accessible by dialing 1-844-512-2921 (toll-free from the US) or 1-412-317-6671 (international) and providing the replay PIN: 10143670. The replay will remain available through May 14, 2020.  A recording of the call - in MP3 format - will also be available for playback on the "Investors" section of the Genie Energy website.

Investors can sign up through the Genie Energy website to have earnings releases and other press releases e-mailed directly to them. 

ABOUT GENIE ENERGY LTD.
Genie Energy Ltd. (NYSE: GNE, GNEPRA), is a global provider of energy services.  The Genie Retail Energy division supplies electricity, including electricity from renewable resources, and natural gas to residential and small business customers in the United States. The Genie Retail Energy International division supplies customers in Europe and Asia.  The Genie Energy Services division includes Diversegy, a commercial and industrial brokerage and consultative services company, and Genie Solar Energy and Prism Solar, which design, supply and install commercial solar 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)




March 31,
2020



December 31,
2019




(Unaudited)



(Note 1)


Assets







Current assets:







Cash and cash equivalents


$

29,710



$

31,242


Restricted cash—short-term



6,185




6,792


Trade accounts receivable, net of allowance for doubtful accounts of $3,134 and $2,631 at March 31, 2020 and December 31, 2019, respectively



45,494




49,822


Inventory



18,061




16,632


Prepaid expenses



7,674




6,318


Other current assets



13,699




2,133


Total current assets



120,823




112,939


Property and equipment, net



443




3,607


Goodwill



12,102




12,135


Other intangibles, net



6,327




6,837


Investment in equity method investees



293




675


Restricted cash—long-term



493




520


Deferred income tax assets, net



9,801




12,154


Other assets



6,894




7,377


Total assets


$

157,176



$

156,244


Liabilities and equity









Current liabilities:









Loan payable


$

925



$

921


Trade accounts payable



24,243




24,387


Accrued expenses



28,936




26,116


Contract liability



3,893




13,426


Income taxes payable



1,796




1,591


Due to IDT Corporation, net



137




381


Short-term revolving line of credit



3,518




2,514


Other current liabilities



6,281




2,820


Total current liabilities



69,729




72,156


Long-term notes payable






777


Other liabilities



2,238




2,381


Total liabilities



71,967




75,314


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 March 31, 2020 and December 31, 2019



19,743




19,743


Class A common stock, $0.01 par value; authorized shares—35,000; 1,574 shares issued and outstanding at March 31, 2020 and December 31, 2019



16




16


Class B common stock, $0.01 par value; authorized shares—200,000; 25,805 and 25,785 shares issued and 24,763 and 24,755 shares outstanding at March 31, 2020 and December 31, 2019, respectively



258




258


Additional paid-in capital



140,069




139,615


Treasury stock, at cost, consisting of 1,042 and 1,030 shares of Class B common stock at March 31, 2020 and December 31, 2019



(7,763)




(7,675)


Accumulated other comprehensive income



2,230




2,519


Accumulated deficit



(56,184)




(59,671)


Total Genie Energy Ltd. stockholders' equity



98,369




94,805


Noncontrolling interests



(13,160)




(13,875)


Total equity



85,209




80,930


Total liabilities and equity


$

157,176



$

156,244


 

GENIE ENERGY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)





Three Months Ended
March 31,





2020




2019



(in thousands, except per share data)


Revenues:









Electricity


$

69,972



$

62,614


Natural gas



16,070




18,706


Other



18,009




5,297


Total revenues



104,051




86,617


Cost of revenues



75,146




61,026


Gross profit



28,905




25,591


Operating expenses and losses:









Selling, general and administrative (i)



19,499




15,757


Impairment of property and equipment



192





Income from operations



9,214




9,834


Interest income



128




93


Interest expense



(123)




(140)


Equity in the net loss in equity method investees, net



(379)




(797)


Other income, net



150




73


Income before income taxes



8,990




9,063


Provision for income taxes



(2,569)




(2,903)


Net income



6,421




6,160


Net income attributable to noncontrolling interests



589




91


Net income attributable to Genie Energy Ltd.



5,832




6,069


Dividends on preferred stock



(370)




(370)


Net income attributable to Genie Energy Ltd. common stockholders


$

5,462



$

5,699











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









Basic


$

0.21



$

0.21


Diluted


$

0.20



$

0.21


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









Basic



26,108




26,532


Diluted



26,749




27,240











Dividends declared per common share


$

0.075



$

0.075


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


$

483



$

448


 

GENIE ENERGY LTD. 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) 




Three Months Ended
March 31,




2020



2019




(in thousands)


Operating activities







Net income


$

6,421



$

6,160


Adjustments to reconcile net income to net cash provided by operating activities:









Depreciation and amortization



826




921


Impairment of property and equipment



192





Deferred income taxes



2,353




2,442


Provision for doubtful accounts receivable



608




72


Stock-based compensation



483




448


Equity in the net loss in equity method investees



379




797


Gain on deconsolidation of subsidiaries



(98)





Change in assets and liabilities:









Trade accounts receivable



3,719




(3,554)


Inventory



(1,429)




208


Prepaid expenses



(1,356)




1,320


Other current assets and other assets



(8,473)




(1,041)


Trade accounts payable, accrued expenses and other current liabilities



3,344




(859)


Contract liability



(9,648)




(256)


Due to IDT Corporation



(244)




(100)


Income taxes payable



206




460


Net cash (used in) provided by operating activities



(2,717)




7,018


Investing activities









Capital expenditures



(5)




(325)


Payments for business acquisition, net of cash acquired






(1,852)


Investments in notes receivables






(177)


Repayment of notes receivable






122


Net cash used in investing activities



(5)




(2,232)


Financing activities









Dividends paid



(370)




(2,377)


Repayment of short-term debt—Lumo






(2,260)


Proceeds from revolving line of credit



1,000





Exercise of stock options






172


Purchases of Class B common stock



(88)





Repayment of notes payable



(9)





Net cash provided by (used in) financing activities



533




(4,485)


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



23




(35)


Net (decrease) increase in cash, cash equivalents, and restricted cash



(2,166)




266


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



38,554




44,197


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


$

36,388



$

44,463


 

Reconciliation of Non-GAAP Financial Measures for the First Quarter 2020

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 also disclosed for the first quarter 2020, as well as for comparable periods, pro forma results and Adjusted EBITDA, which are non-GAAP measures. 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 pro forma results consist of the corresponding GAAP metric with the addition of the corresponding results for Orbit Energy, the company's joint venture operating in the United Kingdom. GAAP results for Orbit Energy are accounted for under the equity method of accounting. Under this method, Genie Energy records its share in the net income or loss of the venture. Therefore, revenue generated, expenses incurred and income from operations are not reflected in Genie Energy's consolidated revenue and expenses. However, Orbit Energy's customers are included in metrics regarding our customer base.  Pro forma results are calculated by adding the result for Orbit Energy to its corresponding GAAP result.  Pro forma results are provided for the first quarter 2020 and first quarter 2019 to supplement the following results: consolidated revenue; revenue of the Genie Retail Energy International segment; and loss from operations for the Genie Retail Energy International segment.

Genie Energy's measure of Adjusted EBITDA consists of gross profit less selling, general and administrative expense, exploration expense and equity in the net loss of in equity method investees, net, plus depreciation, amortization and stock-based compensation (which are included in selling, general and administrative expense). Another way of calculating Adjusted EBITDA is to start with income from operations and add depreciation, amortization, stock-based compensation and impairment of goodwill and subtract equity in net loss in equity method investees, net.

Management believes that Genie Energy's pro forma results and Adjusted EBITDA provide useful information to both management and investors by excluding certain expenses that may not be indicative of Genie Energy's or the relevant segment's core operating results. Management uses the pro forma results and Adjusted EBITDA, among other measures, as relevant indicators of core operational strengths in its financial and operational decision making. In addition, management uses and Adjusted EBITDA to evaluate operating performance in relation to Genie Energy's competitors. Disclosure of this 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.

The pro forma results facilitates evaluation of the results of all of the company's retail energy provider (REP) businesses as if they were fully consolidated, which provides useful information regarding the size, growth and financial performance of all of the company's REP businesses, In contrast, GAAP results only include the company's equity in the results of the operations of its U.K. venture.

Management refers to pro forma results and Adjusted EBITDA, as well as the GAAP measures revenue, gross profit, income (loss) from operations and net income (loss), on a segment and/or consolidated level to facilitate internal and external comparisons to the segments' and 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. While Genie Energy's oil and gas exploration business may be capital intensive, Genie Energy does not expect to incur significant depreciation or depletion expense for the foreseeable future. Genie Energy's operating results exclusive of depreciation and amortization is therefore a useful indicator 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.

Pro forma revenue and pro forma income from operations as well as 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 measurements of pro forma revenue, pro forma income from operations and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Following is the reconciliation of pro forma results and Adjusted EBITDA to their most directly comparable GAAP measure.  Pro forma consolidated revenue is reconciled to consolidated revenue, pro forma revenue for the Genie Retail Energy International segment is reconciled to the segment's revenue, and Genie Retail Energy International's loss from operations is reconciled to the segment's loss from operation.  Adjusted EBITDA is reconciled to income from operations for Genie Energy's reportable segments and net income for Genie Energy on a consolidated basis.

Reconciliations of Pro Forma Genie Retail Energy International Segment Revenue and Loss from Operations to Corresponding GAAP Results










Genie Retail Energy  International (GREI) Segment Results






(results in millions)


1Q20


1Q19











GREI segment revenue


$         7.0


$         4.8



plus

Orbit Energy revenue


$       19.6


$         4.0



Pro forma GREI segment revenue


$       26.6


$         8.8











GREI segment loss from operations


$       (2.5)


$       (1.7)



plus

Orbit Energy loss from operations


$       (2.3)


$       (1.7)



Pro forma GREI segment loss from operations


$       (4.8)


$       (3.4)










 

 

Reconciliations of Consolidated Adjusted EBITDA to Net Income Attributable to Genie Energy Limited and of Adjusted EBITDA to Income from Operations for All Segments Reported


















Total


GRE


GES


GREI


GOGAS


CORP


Three months ended March 31, 2020 (1Q20)













Net income attributable to Genie Energy Limited

$   5,832












Net loss attributable to non-controlling interests

589












Net income

$   6,421












Provision for income taxes

2,569












Other income, net

(150)












Interest expense

123












Interest income

(128)












Equity in the net loss of equity method investees

379












Income from operations

$   9,214


$ 13,017


$       342


$ (2,520)


$    (224)


$ (1,403)


Add:














Stock-based compensation

483


156




37




291



Depreciation and amortization

826


112


208


490


15





Impairment 

192




192








Subtract:














Equity in the net loss of equity method investees

379








260


119


Adjusted EBITDA 

$ 10,336


$ 13,285


$       742


$ (1,997)


$    (469)


$ (1,231)
































Total


GRE


GES


GREI


GOGAS


CORP


Three months ended December 31, 2019 (4Q19)













Net income attributable to Genie Energy Limited

$       324












Net loss attributable to non-controlling interests

1,312












Net income

$    (988)












Provision for income taxes

1,458












Other income, net

(919)












Interest expense

150












Interest income

(102)












Equity in the net loss of equity method investees

2,724












Income from operations

$   2,323


$   8,235


$ (1,183)


$ (3,222)


$    (200)


$ (1,307)


Add:














Stock-based compensation

(4)


117




(226)




106



Depreciation and amortization

821


175


244


387


15





Impairment 

400




400








Subtract:














Equity in the net loss of equity method investees

2,724






2,501


213


10


Adjusted EBITDA

$       816


$   8,527


$    (539)


$ (5,562)


$    (398)


$ (1,211)
































Total


GRE


GES


GREI


GOGAS


CORP


Three months ended March 31, 2019 (1Q19)













Net income attributable to Genie Energy Limited

$   6,069












Net loss attributable to non-controlling interests

91












Net income

$   6,160












Provision for income taxes

2,903












Other income, net

(73)












Interest expense

140












Interest income

(93)












Equity in the net loss of equity method investees

797












Income from operations

$   9,834


$ 13,503


$    (232)


$ (1,744)


$    (163)


$ (1,531)


Add:














Stock-based compensation

448


116




94




238



Depreciation and amortization

910


156


277


463


14





Impairment 













Subtract:














Equity in the net loss of equity method investees

797






1,070


(274)




Adjusted EBITDA

$ 10,395


$ 13,775


$         45


$ (2,257)


$       125


$ (1,293)

 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/genie-energy-ltd-reports-first-quarter-2020-results-301054627.html

SOURCE Genie Energy Ltd.

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