SLNG - Earnings call 2 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 securities laws. These forward-looking statements are based on the company's beliefs and expectations as of today, August 5, 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 press releases announcing the company's results. to undue not forward-looking on cautioned statement. are place reliance any any Investors like all welcome Solutions would to I now you Earnings Call. QX Conference to XXXX Stabilis the Today's being call recorded. is over of Stabilis like turn I'd time, Solutions. Reddinger, this CEO the At call and President to to Jim ahead, sir. go Please

James Reddinger

our quarter Chief session. this of is some in then and you, and Stabilis. our lot to Vice financial me the the call best Again, And quarter. today, Puhala, Q&A quarter, here the everyone. Reddinger, a we'll including in our the initiatives President and discuss follow review joining I us Thanks joining the Officer. Thank second jump Jim of number growth for President Andy report Senior great of morning, of today. will and exciting a After good We're shape results, is Financial highlights and with took and CEO up on a that of ever Andy things

I'm representing that Stabilis of to its ever the of quarter record the its continued pleased quarter. company to from from performance quarter. million, increase achieved second of year another yet second for The produce $XX.X highest report the strong a first second this year-over-year revenue momentum in XXX% quarter has the

either This revenue, for or overall out have the of fourth comparable set was the quarter the a past X record we quarter. that

the fuel as through provides delivered LNG the our set across in a demonstrates with reliable they day navigate transition. also of increased second customers performance We record and in the million our are energy quarter LNG This the cleaner, business LNG we customers record sectors. gallons from LNG every seeing delivered their with a alternatives cost-effective lot quarter. for XX.X gallons in a interest

at fuel fueling LNG of more use the opportunities a next ship owners meet provides period marine to and the sources operators of the rate year targets. emissions tremendous Several of And XX% some us. as that per and use a example over a their ahead of grow the X-year great industry more industry marine growth LNG as project

the bunkering significant growth Stabilis years. a we driver market marine to such, coming the As expect over for be

hydrogen the that addition discussed is activities building to services us marine to marine previous West network bunkering will bunkering Coast. bunkering Gulf Coast and calls, throughout we on hubs on allow LNG the a have of LNG marine provide In the that Stabilis

with second week, On Understanding bunkering provide market May develop the known LNG MOU a and Galveston X, marine we Christi Wharves, bunkering we announced LNG announced Memorandum marine this as also Corpus just And an to the of of Port services. with of services to X fueling Port Galveston, LNG giving network Gulf locations, fleet locations Coast. -- and we today. equipment to on LNG At LNG supply use major vessels marine our the these cryogenic existing us the bunkering Stabilis shorter

currently our several with XXXX. are to major customers fueling marine discussions LNG plan in in completed first We LNG events and have

bunkering As port partners and solutions install custom-built ports across to such and in the partners these events frequency, marine plan fueling bunkering our industry various we our LNG work increase and to barges as size country. with

Port in river to from the is Coast in strategically addition our completed second Rouge. located acquisition marine Allen recently region largest the of in Stabilis market, which is In support also production of LNG customers. we across the LNG significant Gulf right facility made the industrial will bunkering the facility its Allen, and progress Baton some Port The Louisiana,

George West the XX% approximately and increases of per for between supports facility the Port currently production our marine organic day, XX,XXX better gallons a offshore and diversification vessel our total to in growth. bunkering for runway Allen addition, It largest fleet which by LNG-powered supply has also facility The and the capacity provides our Gulf serve In flexibility provides capacity production Port further Coast. Allen customers. production us facility LNG

We acquired This LNG to EBITDA And pipeline production the for would facility. increased annual at to believe be leverage per access XXXX, of to $X on and and the incremental advantage we our when and Port and both a $X.X production site state-of-the-art provide opportunities strategic business other site. capacity new build -- to due plant allow to to production is accretive that future available it the is facility acquisition layout and opportunities a cost LNG value gallon the expected significantly compelling. continue will cost be was take opportunities operating have of expand us opportunities we further, there The between million million less are that will us than Allen acquisition across and in that is project fit incremental us revenues. expansion these

effort. our and like business and for a team with to I'd with it work. growth I'll hard starts and team acknowledge continued Overall, opportunities. on our listed quarter, growth. we at ends To first, a course, Andy? our capital Later And began And also thank our significantly, and of tremendous will and performance Stabilis this second credit key business a their turn by and But in team we growth on as complete my improving I'll outstanding growth call, were that key like our off we secured the also discuss we're financial review Andy only of And both. base working always, provide dedication to of the to NASDAQ but tremendous trading outlook. April. great a start in by blessed $XX markets not results. Every great facility Stabilis, feel over review in to we're the fund everyone on to year, million investing

Andrew Puhala

Jim. Thank you,

of ever As Jim mentioned from $XX.X increase year-over-year XXXX, million, $XX.X first quarter the expected but from a the million remarks, in ended of revenues his the Stabilis XXX% decrease quarter for the second second second an quarter XX, highest XXXX. opening reported its quarter substantial in June of sequentially

being with normally strongest of quarter seasonal Northeast. the peaking year quarters our activity, As the one first in to the the due primarily business winter of a reminder, is

generation economic the increased increased company's gas-related with was including and projects, customers. Our largely activity and power of oil in activity, growth by aerospace operations Mexico and expansion year-on-year driven continued growth

Stabilis $XX.X increase QX second the to LNG of business million from $XX.X segment from earlier. our but an mentioned Revenues due record quarter, of of million the this our totaled XXXX quarter million $X.X below seasonality I

of in last increase to XXXX $X.X XX.X million than Our our to new company increased to Sequentially, and as segment XXX% during from the a achieved X%. was Revenues previous of a higher delivered quarter, record gallons Delivery QX result the QX of XX% LNG approximately a second year. compared the this of quarter Power of record Delivery projects. segment compared Power X% million customers our to year up

year. company loan $X.X its Adjusted an The that $X.X to anticipated the in compared qualified million increasing full investments approximately the later amortization, EBITDA during meet stages in of taxes, protection forgiveness is the $X.X result. loan early EBITDA received adjusted program XXXX. in of after of pandemic. SG&A to during payroll activity before sales The was or quarter. the was expenses company a removal loss forgiveness $X.X million have its of the was QX of and both EBITDA, million for Earnings million marketing making teams as and increased the depreciation levels logistics and field and and Operating interest, service quarter in of

available -- discuss to $X.X end the the for The with compared XXXX outlook. million its that, $X $X.X Bank. back a facility in were I'll Jim to loss year million $X.X Net and to equivalents $X.X million turn over quarter. first to also XX at ago compared AmeriState quarter under has loss June of second the million the as million With Cash of $X of our cash call the credit of quarter. company was as million

James Reddinger

Andy. Thanks,

has The think I today's driving LNG several is been including growth. call our theme in tremendous revenues the quarters, of record record growth last gallons delivered. business over the and base

We strong sectors multiple for in post demand and LNG as grow. business expect our to continue base beyond results XXXX across in to continues industry to

new the we for project products. for continue and to lay step to the addition the growth foundations up in base the business related change this business, opens -- the markets in as energy transition In growth LNG though,

large several on attacking I port demand projecting high-growth As LNG and for and are marine organizations With X aggressively the segment. growth this earlier, with marine international both customer market over relationships. very fuel and LNG the bullish next discussed XX% we're in we compound annual years, market

to customer We and by our to the sell will that shareholders for production Port and relationships acquisition that will into us, and up ship from leadership bunkering our possibilities price ability facility profitable highly into Allen our location We're we excited long-term LNG large support more be will our that LNG on based accretive that the entry bunkering believe immediately. believe the many investments. fuel translate deal shorter opens market

acquisition additional exist, opportunities and that them be we Furthermore, believe we'll they available. as become accretive reviewing

Finally, continue natural progress on our make we gas distributed business. Mexican to

in have Overall, we growth soon. gas CNG key natural discuss Mexico Stabilis. projects, several and to Mexican compressed development a or business projects and including exciting We pipeline, LNG both market those the hope remains for

excited The also their to business we up as the line service but energy second on and make our to our updating technical about questions. quarters. to the across provide and growing teams. opportunities you how adding we quarter and our to U.S. markets businesses, build call meet business. line in coverage the now These energy and what forward We're the increasing these top adding on reliable I'll investments coming which environmental progress solutions and to are open are solutions, continue growth see sustainability are needs viable and front all to look critical in the LNG focused engineering field transition solutions. these development our We in targeted the over continue results And us. goals, can sales Mexico to we driving enlightened all on existing that marine and on of responding with that, performance many find We our our of Moderator? and improve such economically and investments throughout personnel, are for sectors customers energy

Operator

[Operator from first Instructions] Dezellem. question is Your coming Bill

William Dezellem

of questions for you. couple A

it Allen and release of will announcement the press to all, actual Port stated in is facility, referring needed to XXXX. Or revenue? to First is What's the the convert driver running in marine bunkering a up be which already? that increase really an significant

James Reddinger

demand mean, across million I compound LNG world. the to to rate I the the seeing go million annual bunkering expected X demand, about X about there's next tons now, earlier several years. annum it's remarks, the of Bill, Right said XX% Like and growing. over for growth we're in per

infrastructure. LNG there. the the in And happening is Asia. growth the of and Europe building both out and bunkering so that now growth in There are is available hubs And in services U.S. terms

the the with Gulf partnering in doing Port of steps it's right bunkering along and services our is of to that Corpus vessels Wharves And attracting provide in readily which now So isn't availability already LNG to Christi field Galveston the that, available. market. Coast,

in about with multiple third or year. to dialogue in Asia, fourth events So might have to along quarter early the fuel had past plan the those Gulf where we're Europe Coast in and this as the markets having other now happen they customers having fueling as of

much a if these of that thousand service fuel. prior can you operators Coast a available, able coast the gallons calls, on -- And as -- So to and an is hundred be are vessel, event. it's anywhere coming now million couple events, on from the to X.X from to type the the Gulf depending the remember as plan fueling shipowners to

to So and those to events see we expect they're here start soon. major happen events,

William Dezellem

you understanding line Jim, that would be thousand couple event, I prepared gas contacting correctly or into scheduled the pop This for correct? am automobile that when and delivering I some be hundred And you on? million fuel, of going that so gallons? to my needs sure station. sight Is that is they unlike X.X actually a just you're have

James Reddinger

market as it to from will Yes, freely you But early more develop available. days called more put a where on the anywhere gas a assets you event. weeks It's Ultimately, on a coming. of a line more but depends sight. when planned few service days little of that's have the more not model, circumstance, we it's some a to this it's of of visibility few it, here, and -- into the, station the operator development in it's as

William Dezellem

from please? Is in construction to you put remaining What's Christi? to of helpful. do activity be place? at so what prepared? a kind the that's walk need ships, That's get that physical And Corpus fueling actually needs project still through And we or here to infrastructure do us is to there how this be

James Reddinger

Sure, sure.

now whole got premise supply, our to our And put for need network got as of cryogenic the supply. are We've vessels including our is strategy happen investments to So on-port and supply. to provide develop to equipment, behind cryogenic larger a bunkering bunkering the LNG the strategy to fleet waiting a opposed own justify services LNG LNG of or to mobile the things we've going to eventually that is market to in work in-port those equipment.

And ports. the market, out front then in of investments offer that the with can back so solution we're trying in volumes get build, And to further today. we these individual the once up longer-term

and to bunkering there's equipment ships and processes, Guards approval Coast agencies. through do be and other to marshals and the an ports our go once process those immediately. we'll now, permitting up through process right almost mobile with get So from a able we to But roll to fire

William Dezellem

clear, the activity complete, will But goes on place I'm permitting is CapEx put time assets sure use infrastructure. more or you make increases, that's have assets. you'll and the permanent to once portable in mobile as So when your level and

James Reddinger

Yes. Exactly.

William Dezellem

model Coast, Mexico, the on I really it Gulf East That's suppose, the Coast And be a Coast that's presumably, frankly, helpful. matter? whether the for or, a on that repeatable, in port West or that's

James Reddinger

opportunities Yes. And in now. those looking at then we're places all

William Dezellem

Excellent. coming opposed ignorance to of really question, one from point And this additional a critical. as being is then and

in delivered slightly in than Your QX delivered gallons the were QX. gallons greater

seasonality I and were between Can into a positive. through congratulations, big revenues QX how But that So revenues QX talk $X.X that yet in interplay million it's sequentially. the the all gallons, how down you works? think

James Reddinger

Yes, yes, yes.

demand in pipelines to peaking pipelines and peak in in winter need LNG talked happens a past, their seasons. where So business the to our activities supplement cold the seasons, utilities winter as peak we've in about driven we've got seasonal have that they when the by at comes primarily

manpower in business winter the and those serve rental nice those And of to months needs. country so very we engaged Northeast, lot have equipment across we and a a where primarily the have peaking winter in

there's rental of we And those February, frame. get QX, to March and a so jobs when large down comes peaking that QX winter sort from in time rolled from labor that component equipment

winter that you're seeing component. that and that primarily revenue And so in gap is consisting equipment peaking of labor

William Dezellem

Great. am going one And more in. to then to question squeak try I

other progress new do mining be announcements you're You about -- making significant you have in many us whether large we've calls, project potential of customers. update today? wins for or towards the had past it that What or some

James Reddinger

that Well, listings with I thought the happened we did pretty well in quarter. the and all the things second

pretty on that about busy we I that the revenue. on X demand that a acquisition So a growth were see are just across projects relisting, on in talked to had X across forward. sectors happening going et of number projects quarter number consistent sectors, or this of that growing record I'd we pretty not we in in the we've the we a and the continue made say cetera. marine think second in And

we with a several I to the things come that the other soon. like to on more talk number soon mentioned on can. that we'll as be progressing back Mexico are And we able market of hope in about pipeline yes, We information projects, as in

Operator

for will Jim closing There you. no at I further in [Operator are no questions Thank to remarks. queue. the conference the Reddinger questions further the in back Instructions] hand are There now this queue time.

James Reddinger

look in Thanks forward everybody after third have getting the Thanks and good call to much. quarter. you much. another on we today, I appreciate the to we talking quarter

Stabilis Solutions (SLNG) 5 Aug 212021 Q2 Earnings call transcript