SLNG - Earnings call transcript Q1 2021 | Stabilis Solutions, Inc.

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Operator

Ladies and gentlemen, before we begin, today's call, I'd like to remind everyone that today's conference call will contain forward-looking statements within the meaning of the Private Securities Reform Act of 1995 and other security laws. These forward-looking statements are based on the company's beliefs and expectations.

As of today, May 6, 2021.

Forward looking statements are subject to the risks and uncertainties that may cause actual results to differ materially from those projected. The company undertakes no obligation to release updates or revisions to the forward-looking statements made in today's conference call additional information concerning factors that could cause those differences is contained in the company's filings with the SEC, and the press release announcing the company's results. to reliance not statement. any cautioned are place on undue forward-looking Investors would you earnings QX welcome like conference to I to Solutions all now the Stabilis call. XXXX this call Today's recorded at being is time. Jim the turn and Stabilis call to I Reddinger, over CEO President of Solutions. sir. ahead, go Please

Jim Reddinger

here Good me for joining want including morning, during Senior is my Puhala, on is major favorite the Again, my us record of CEO stock. Vice some great Thanks revenue, be to lot President contracts, here our quarterly had Stabilis, earnings This XXXX It's everyone our at a we've we're Chief record liquidity welcome our We the a because call to earnings, that Reddinger, and everyone. Financial President to and is Stabilis. customer for growth, time to exchange Matthew. today. this new quarter Thanks today. things, Jim earnings enhanced for And great Officer. call. and joining maybe Andy listing report first conference great call of

by me record that previous pleased which a fourth these the company by quarter session. prepared ending on of was my detail with XXXX achieved we record items and in Q&A through the I'm XXXX. XX%. of report then Stabilis our in Let from one remarks, to during can After quarter one The quarter revenue, discuss quarterly its another produced the each XXXX, of performance, beating first highest record first turbulent ever go more

growth XX our the trajectory months strong five our we've highest fact, revenue past of XXXX. In continues into over three and reported quarters

energy broad-based customer across see our services to transition continue demand for our We base.

based LNG long-term XX.X facility. over we LNG million contracts Texas our production gallons delivered for quarter from the and our secured of XX% of sales During

extended additional largest to believe also an We one be six customers, months. of our we will what XX recently

record XXXX first and quarterly, million. And that has to revenues, quarter, its addition was also In begun EBITDA announce profitable of business our is leverage. to pleased $X.X I'm quarter into the to first produced grow the hitting record operating that of creating indicating infrastructure

trading this I'd achievements today, your financial their We price company to quarter our a will over Our have larger on to $XX access are turn growth enhance hard great the that the to will do. on work. milestone I'll appreciate needs. like you facility thank our now a key but We're we pleased it started to Andy trading so us to facility our dedication start was for to NASDAQ. capital to securing audience believe trading the and our next to continue as least, capital for to in for capital outlook, And discuss move QX need, not review This the achievement allow Later team Andy. it that all listed I'll are our we extremely institutional and the on is further and for our growth Stabilis really XXXX trading the of fund first These credit investors, report everything on give I'm credit call, results strategies. and been and a working grow but a and the last, We to significant investors. major for million company the off our Stabilis ago to to year better business. certainly marketplace, a expose week increase markets visibility this far the a access execute NASDAQ volumes us and liquidity, we and improvement results,

Andy Puhala

you, Thank Jim.

XX% ended Stabilis XX% reported increased increase ever $XX.X XXXX. increase which XX% of not the Year-on-year driven $XX.X the quarterly U.S. December ended fourth and December quarter power The XX, remarks quarter's course operations, the quarter million, million, XXXX, growing. LNG XX% revenue and is first the decreased for shows this compared record due for the Stabilis' that first quarterly would sequential weakened that, segment company's $X.X of quarter, the projects, increase entirely previous XX% revenue a year, to from revenue. a generation quarter XX, March quarter quarter to an of quarter XXXX, and customers of the customers. a business from XXXX a X% to opening compared of last As over company XX% increase a XX.X the growth during increased rate million increase XX% Jim exchange increase quarter from unfavorable mentioned in highest currency increase Mexico totaled of activity to sequential the the been XX, of delivery of Stabilis the The expansion its higher gallons sequentially continued Revenues XXXX, of the XXXX his delivered a by first to in ended XX% million, in segment, quarter from segment's first from was XXXX. and LNG have XXXX, Had that of XXXX. in largely the the with power the fluctuation aerospace in revenue versus Brazilian QX first underlying dollars

of experienced contribution of taxes, of February, first equivalents costs revenue our for were of related in million, in LNG spite of $X.X to in winter million and to depreciation, of Net of performance. before which at $X.X in to quarter XX of of XX% extraordinary a adjusted over Texas December or million quarter, or compared time, XXXX, In Cash to million sequentially, net profitability best quarter and approximately the million amortization, revenues. $X.X interest EBITDA gas, made aXX% the were EBITDA, fourth a of XX% and rose was a March we of XX. the grew first improvements improvement our and of cash the the during XXXX as compared the and earnings quarter $X.X third-party reported first from quarter $X.X first Adjusted These result one losses $X.X freeze the improvement income higher winter terms to record XXXX. as transportation operating reduced the costs expenses, freeze. XXXX, electric, million $XXX,XXX the profit loss during as

discuss $XX I'll call facility liquidity secured announced, As which ample our during outlook. company previously to back growth and it million provides back execute April, Jim a capital that, to credit the turn us – plans. with With working over to our the turn

Jim Reddinger

about results. on performance on focused are how Thanks, continue first can Andy. We're excited build these and our quarter to now we

and our continue will we on improve to First, build business. existing

fuel. from power of driving it are environmental needs across capture our goals, energy Remote hydrogen, the economically what enlightened energy services to well-positioned solutions. are the transitions improve energy gas this generation growth Most fuel and companies they to increasingly opportunities are moving our we market of power their we also meet is diesel find large provide generation are As multiple from and important customer's sustainability enlightened to these all customers you away These becoming And increasingly results, solutions for the can their transition reliable that LNG, as in profile. provide solutions. us, viable a potential sector. natural market, part customers LNG an with energy see and emissions to see sectors, but recent solutions. called

our natural generation that a an won we to not contract largest using with generation is example, have power to location fuel domestic remote power partner, a that renewal As grid access. gas remote does recently provide

could but through We it end at last expect be significantly this least contract from of the that work XXXX, extension longer. will

market. continues to We expect one to factor generation on We've sales able be Mexico recently soon. and and for added truck and a haul Mexico be our service capabilities providing continue power key and growth provide in us, to we more currently companies and field to Mexico LNG details to to this consumption. mine are in the mining presence largest increase teams, also fuel of for our award, the

initial we access earlier marine Our is we of The to with Stabilis port. Corpus fueling forward strong, memorandum work of for remain week, in develop presence have understanding we having of be to tremendous announced at that and and expanding will opportunities and provide on opportunity to sales we a believe the infrastructure authority emerging fueling per with in Christi market, the week, customer access our provide Port announcement the additional to the entered future. operating bunkering project role And this pipeline to sites This marketing, expertise a new near into wins we which an continue and the our to and customers. the Stabilis. to discuss And port to you growth will development hard LNG look marine technical venture.

and of have transition advantage forward to solutions to we ahead. our well The that continuing vessels demonstrating and And justify energy as across great requires, on well, to to please new quickly the for forward well-positioned for goal go in With mutual for the bunkering such you momentum is and we Our solutions. and I'll production. And is marine market, wins well provide up as up opportunities cost in leader capital questions. open port, a forward LNG hydrogen Stabilis believe updates, MOU will an of as step the project we fueling us capabilities for energy installation moving bunkering space This serve assets to that, market positioned other take innovator as outlook. look sectors number discussions as to potentially and in more the LNG the in multiple enlightened sector. to a quickly, cleaner sum effective we're is LNG this and create provide opportunities announce. calls LNG more our in bunkering becoming and We're continue secure. LNG that to of Matthew, be to is for line to the

Operator

Brothers [Operator is [Tuohy Instructions] Investment Craig Shere, Your Research] coming first question from

Craig Shere

again Congratulations morning. in quarter, two Good row. quarters strong on the

Jim Reddinger

man. Thanks

Craig Shere

contributions liquefier contracting prospects? see and the risks? So end? a thoughts we couple the next Could any day of on over years, permitting any and Mexican And update Mexican around deployed storage as by year ForEx ramp hedging XX,XXX

Jim Reddinger

on can any soon firm it. timing, push I but but Yes, continue on discussed we that guidance forward definitive as we the don't that any in And we've we we can, the provide to updates have we before all on to timing navigate projects that need as process we'll confirm provide Mexican past. guidance

into point of certainly have looked continue don't we'll place. in there In it. to have But at grows, time, risk, terms evaluate FX as our anything it, in and exposure we we this

Craig Shere

on circling issue this offtake up low And in do material, the cost West have that? is potential commitments George new a lower it to Understood. an simply the project? the for you of Or funding have cost for brownfield for capital hand expansion,

Jim Reddinger

in them. would new We assets like would be certainly, as on invest visibility the how to we would used have

that So economically we'd expand either that on demand, or up portfolio of enough our good attractive. to have specific to visibility make of take facility, some it have contracts pretty it would to

Craig Shere

table such year? be commercial potentially you this a opportunities think Do on would the

Jim Reddinger

We discussions this it certainly we're were in a materialized. number say open I'd that have if contracts viable. We anything something make don't moment, to to, the but announce it's at of could

Craig Shere

Thank you.

Jim Reddinger

Thanks Craig.

Operator

next is Management]. [Tieton Dezellem, from Bill Your Capital coming question

Your line is live.

Bill Dezellem

Good morning.

Jim Reddinger

morning Bill. Good

Bill Dezellem

Let the marine Corpus agreement. me bunkering Christi start with

remarks. you like that opening it I scale are for could that small, your it's think but well it pretty magnitude I of but quite and the to ultimately you meaningful. if that be sounds agreement, wanted answered understand question, with successful, the But now

on-site. of, are you in including there LNG potentially generation your If potential

Jim Reddinger

bit egg a Yes. growing it's and with the chicken but a bunkering I mean of marine issue sector's assets. quickly,

so And XX, full the the distribution we're yard road the plant with from of port. LNG storage is, a production miles and and Stabilis LNG about an XX port up assets has doing what

of current two hard our X fueled, be equipment So encourage and and to is Phase it's of expertise, to and port. LNG a start us. LNG between there, the vessels visit to and going, the using them vessels great the fuel the encourage get to conversions of to fit And coming could some plan that port Stabilis marketing into

momentum build Phase to that develop. to existing port. use some is hopefully Which provide invest that. assets capabilities the as X higher and we conduct time to soon our assets So that Phase services. in But X the in will And to to would volume, think will be fueling can port, we take come,

Bill Dezellem

is have fact So I at volumes in wrong? Did that are your like point, some you the close comments, the production. opening that, if that very George your I of misinterpret Corpus Jim, to West could remarks feel you enough, Christi spite that did hear on-site

Jim Reddinger

or is future the It’s expanded Stabilis bunkering. It on where in into near mean current into sails port a the could It the really could Bill. storage the And don't could fueled, case where the or could possibility, the look what case where situation in West bunkering it different, to be like. the I we be could from know a or build used for an port is build port supplies bunkering. directly be elsewhere the ships either It George a facility. going into for vessel existing be liquefaction the LNG additional where LNG fuels be port. case the

with So that. how customers the and best we're be vessels, out they're to how port to the going can and with their working to we try fueling serve figure

that's So phase really now. the in we're

Bill Dezellem

a bring one ship LNG? question the I really a a run either a of and cargo? logistics potentially for not ever before taking are another company, moved or where into it path off more done this one, Jim, Christi Corpus solely on they Or since they is for And on Great. specifically refueling would shipping to I've

Jim Reddinger

higher is that into I for ships are coming cargo. probability the think port

know, As hydrocarbons it's products well. and for it's in you port a large other as growing

So that that any I Bill, higher and a cargo. know would would be were going. are I there'd the by most that ships ships as use of But dropping ships think, port sailing that for is already reason or that visiting would don't a are up I off be picking the probability it if coming think port. fueling it of

Bill Dezellem

quite presumption my That’s helpful. was Okay. That also.

of is quarter normal. George But signed volume. quarter, from second contracts represent that's that the West down XX% So you've just first the seasonally the

be second revenues the quarter a thinking now? excess first of result should about that, the being in revenues we as of quarter So

Jim Reddinger

Bill, we don't know forward. haven't you aren't, guidance give we guidance we No, given or going

of but on high equipment. activities that revenue always of involved winter the lot seasonally of first some the think I supply, quarter also been has LNG because strong we're which peaking involves a in, of rental volumes both

rolls misses that off, but system. generally in revenue, as we correct, that quarter coming do the second some so revenue And have the you're additional

any as the as guidance fourth in years be So think to I of direction have and past first what right going that's don't second think we the positive quarter quarter into XXXX, year. to seen it'll I momentum of now from for of go. But the quarter you we've XXXX, this

Bill Dezellem

XX% falls that now and gross stick the lastly, in break-even, on that in the structure you've it life of correctly? is at the a and about assumption point have Are then And meaning you're from because if have where bottom that your the to And you phase thinking profits margin just line. calculated business. I accelerate, beginning perception LNG achieved it margin the gross this cycle correct incremental correctly, the was XX% of that incremental QX really cost, essentially, hockey you in was the we're your QX, rental on and we versus fixed

Jim Reddinger

going At to over about, off in equipment, terms same business and example it the and we is it, configured say store, that put continue improve. this last to base effort underlying you continues revenue or to the happening but Corpus I'd of, the the lot however been talked improve. business you a the will Yes, and growth. One sort things, I'm looking we've base to the Port people, to and at the projects the engineering want the whether the the to two call And refer base future happen, a the of assets of to of have or business in the is has we're we're time, now, the that's And profitability Bill. profitability of ground. same if investing Christi continue get good in into of year

the underlying to profitability continue at of but think base will business also time, in business the I same the improve, be investing profitability, to projects. we're going future in the So growth

continue So that if to bottom-line producing. from the forward, growth, from look at the the going to profits cash you going and fund we're we're

think I ahead the So that a mean that's standpoint. are of we us. push be going and a from pull bigger prizes to

optimize going to we're to And the bigger to of so invest we're prizes. current business, in profitability going also while those continue

Bill Dezellem

Could the underlying more talk the becoming Jim, and please? has profitable? of business base on expand that been And what driver you

Jim Reddinger

Sure.

think that cleaner as solutions. about cleaner and talk they same viable the for are talked I the reliable. macro at are fueling we then and secure about, fueling a all solutions fact looking perspective, need from fundamentally transition our of consistently And time, energy customers that economically are this and

is And the being, what of into and so reliable providing where those fit as which call we've transition, energy talked needs slipstream, greener cost of sources feel to really Enlightened about that cleaner, continue macro product LNG also that and three get all and and factors. hydrogen, but Energy, talked about we've increasingly, We our to the world are to effective. wants that fuel we have

So to push that continues forward. us macro

number the last widely of LNG that in and years, as over serve. variety fuel evolving years, a think XX applications and I plus more a been has we of commonly accepted become

is And accelerate. market great fuels. that move going to example a And said to natural generation have of of fuel into in companies that and gas power many continues rental power that and major where they're from sector, away the the other adoption diesel so

to pushing allows create grow big the us So markets into forward. seeing and but profitability that new also that for increase what some obviously doing. to and pretty use of both factors we're macro pricing And increase new are LNG demand we're volume, and to

number it's really while into this and So macro something now. environment favorable about kicked a saw talked And effect really us. of ago, a really it's is very we for years

Bill Dezellem

quarter. the thanks great questions. taking all a on for Congratulations And

Jim Reddinger

the man, appreciate questions. Thanks

Operator

Instructions]. [Operator

Your from is coming Brothers Research] next Investment [Tuohy question Shere, Craig

Craig Shere

Just a follow-up.

do capacity, storage Would or year say remarks, to equipment, equipment you've more storage from obtaining and spare and the steam, ability Jim, equipment. assets, that How to some you ultimately immediately the post West growing $XX at into capacity recent commercial ultimately you million got a before through plus of both you annually your full current more Could George of you over nameplate important have your or you runway dock? full transport and running spare your view short running utilization, could traction? on now in running just transport the You mentioned deploy infrastructure. your post

Jim Reddinger

I We've clearly Yes, a kind a being of Craig. was company, is, of growth in investment of but in going I'd being just things, before. public and company set assets the both say to also there's significant there's the where a One couple infrastructure got pretty of company.

public off and the finance, and is we've as investment so years in goes allows And agreement the to And legal, the us company time support fruition, several project that that of and and that. to and that investment growth the ground. of equipment, that and opportunities the was and accounting and with company includes into them all to attach port cetera get et see we technology the that the talked coming And to of about. Corpus Christi energy people people,

So we're earnings ability that room and grow into two the longer-term of more was that we both those pricing perspective, improve get about, of revenue a utilization to the I an contracted business. an equipment of and utilization. more rolling pretty also into And from that equipment on profitable perspective. lines starting stock From equipment and ultimately run our there's to that plant as are talking big infrastructure do sources to think we

specific in see to want we that. growth that, go, even as as first lots to Craig, worry, any to in continue think we some winter a say earlier, invest in don't record expand said that guidance the of the to from will would we with where just there's I I noise there initiatives. but quarter EBITDA I storm room quarter, as of do to, So with the give could Bill

into business perform flow the to business. some flow the for while cash believe cash and us, of so are those And will we extremely to continue the of great growth well base returns continue we produce to going back returns invest

Craig Shere

you. Great. Thank

Operator

this I [Operator time. Instructions] hosts. to in There back now floor questions queue are turn the no at further will our the

Jim Reddinger

we've call. It's here had everyone the been Great. we'll us on lately. announce. a positive, of next quarter appreciate to everyone appreciate being so following you. That's you a for to talk support. thanks flurry the And great I Well, and Thank news we quarter. know we all

Operator

event. Thank you, this does and today's conclude ladies gentlemen,

your You at your you participation. day. may disconnect have a time and lines this wonderful Thank for

Stabilis Solutions (SLNG) 9 May 212021 Q1 Earnings call transcript