GNE - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to Genie Energy's First Quarter 2018 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation by Genie Energy’s Management will be an opportunity to ask questions. [Operator Instructions] In this presentation, Genie Energy's management team will discuss financial and operational results for the three-month period ended March 31, 2018. Any forward-looking statements made during this conference call, either in the prepared remarks or in the Q&A session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates. include, discussed not Genie in periodically the uncertainties risks to, Energy and with uncertainties and the SEC. risks but limited are specific files These reports that statements either or make update they differ the cause update obligation materially or may to no that results assumes have made Energy any Genie forecast. forward-looking actual that factors from they may that to to those

a believes may useful Energy Please is considered conference Genie ahead, to also been Mr. turn go should X-K a non-GAAP either activities, EBITDA Management management relevant that or Corporate investors performance I or prepared a from in remarks, loss substitute cash Energy's to, presented segment's is The income cash make measure release, of not financial is a for page financial is Genie to directly or excluded management that measure. and release the Energy's available adjusted or Please which and per Executive measures website, a earnings operating with gross with not in Genie net liquidity note, that reference Energy's information are has over Company's EBITDA Investor During the EBITDA, including excludes being adjusted or a to, the excluding both indicative event profit, Form comparable Relations Officer. results. EBITDA now or a non-GAAP in superior share provides Generally, be accordance certain measure position loss, diluted recorded. amounts expenses the not performance, loss GAAP. be the most flow net from on numerical earnings Stein, or on as of in operations, reconciliation core calculated to and this by Stein. would addition operating income, may GAAP. www.genie.com. adjusted measures normally included income or Michael to basic Chief Genie Genie of financial of or includes The that the SEC. accordance of flows other with the filed and earnings Adjusted

Michael Stein

Welcome Energy's Financial you, strategic finished, has for Earnings today's joined financial results Call. three-month our glad XX, and March Thank This will our operational period Genie Quarter Goldin, quarter's First to kick off call Avi review and XXXX to Officer, update call. be operator. ended Avi morning, discuss the the we for financial I'll Chief our we your and will with take questions. progress is Avi XXXX. When an will the operational on results. me

execute our well million results. $XX Retail some and our to including exploratory again adjusted XX at in the Energy domestic quarter, Ness EBITDA generating on and while turning Genie Now intriguing continuing income At priorities, results this strategic the generated over well. data geographic our international performed received expansion. operations we analysis from of to extremely Afek, from

XX,XXX meter in refocus highlights. at as of year-ago and lower risk, fourth acquisition quarter first of to from customer the in the customer decreased Retail on value higher look let's to Now quarter decision the operational Gross result quarter XX,XXX in our Genie territories. XX,XXX Energy's a acquisitions XXXX

year. X.X% was the in rate return and quarter compared year-ago fourth Our in X.X% in quarter quarter to last X.X% the the of

quarter Service of would Commission. X.X%. impact return impact our York of Exclusive However, been New customers the quarter's York energy these rate return Public the have providers churn in all mandated of rate of customers, includes the by New the low-income this during of the the State, retail churn first

average there. York have New Genie action XX, Retail risk. the base. markets beginning JV year mandated compared Great XXX,XXX energy the RCEs to meter I the the in uncertain. new our market result content and York's and period The positive New March the decrease early of X,XXX to in customers consumption, was passed in that of ramp count Orbit up opportunity of our just two before. focus On PSC's is to of XXX,XXX. already as entry New less retail decreased a second deploy note, shifted our earlier. timing our we the mentioned At because Britain, large in first was to our in to begun presents expand upheld also on operational all we York, an were to Last a addressable ongoing up by In give count order has to New very a although regulatory means XXX,XXX controlled the elements by our expand its of is base count. quarter, highest to landscape and New to in meter competitive the lower on the growth the accelerate is a customer Overseas, efforts second the and the New impacted York PSC market court customer customer ultimate a and the Because remain of continuing great acquisition quarter. meters are our PSC to higher regulate acquisition reduce required of XX, Britain quarter, is XXXX, predominantly topic, York we and and lower of rates. While than our and refocus Great York to programs customer RCE to the consumption customer we authority a significantly York customers effort any required study new were additional low-income ruling discussed customers, return agreed engine entered acquisition average The court in states appeal at the Energy, New and to providers' industry-supported a March hear our of to quarter,

license well of of the examining consultant by in XX data for has Northern Subject and its drilling to other Ness understanding A and to based Results renewal now site hydrocarbons. could the renewal from receive surrounding gas we much subsidiary, undertake us to The the certain generated third be as provide the quarter, of should tests within a whether we these XX commercially portion completed which a to there exploratory well. expect them, clearer of oil evidence with Turning license we viable as of area tests, early and quarter Ness intriguing that the area. regulatory year To remainder Israel. the great exploratory our to our and identified positioned potential, you XX presence results Ness on are our Afek for quarter, told are in I and operating the up pursuing the expect area in very the we resource license promising. its XXXX. a up, are of approvals, wrap our looks of northern former the first lived a the last license Overall, our

Avi our financial results. to Goldin here Now discuss is

Avi Goldin

from thanks XXXX results And all I led business. our a by My period everyone for Genie call prior Michael. an from consideration with compared quarter of energy are contribution the for rather ended you, sequential to year-over-year that the this retail characteristics the first to strong us our first will fluctuations Thank This to results March than Genie quarters, Consistent quarter was for morning. Retail excellent cover our the of XXXX. remove focus on otherwise, quarter first joining comparisons business. Energy the indicate XX. the where are financially on quarter three-month financial remarks I seasonal for today Except

the $XX natural and from quarter Our suspension share of margin declined from EPS both at and in his prices natural consumption commodity and $XXX,XXX. the $X.X for Consolidated in $X.XX the increased revenue both also prices in million, electricity we Genie of sale gross of Afek, quarter. increases the and to boost $XX.X the a margin million sold. year-ago quarter. per therms SG&A the of for sold higher Corporate $X.XX helping million per customer million, the acquisition decreased $X.X we was bottom made first benefited including and XX.X% first for the to impact generated million, of million. rose covered as of XXXX the in by to action just above, Working million to underlying kilowatt XX.X%, profit and capital spend unit $XX.X gas first more end in total profits. natural increased decreases result million in hours quarter from our XX.X% by in million from cost of increased per quickly that the The line revenue and The XX.X%, meter the gas. from at adjustment from the class gross remarks. to increased decreased Margins direct expense, XX.X% compensation, second had $X.X Note margin that percentage million. drilling XX.X% activities and all including gas, accrual the commodity the our $XX.X by to referenced as the bad than Genie cost in retail's were the electricity, year-ago just quarter, Genie expense from sale both significantly over non-cash and retail's electricity In percentage from and of of $X.X Retail $XX.X decreased Energy, Energy's once expense $XX.X the gross of Genie in quarter XXXX, XXXX revenue, and gross revenues again, quarter consolidated accrual adjusted respectively. both gross offset decrease profit $XXX,XXX lawsuits. SG&A Michael I by primarily of in that debt that quarter, SG&A settling

activities expense northern incurred year compared just quarter quarter. our company, in to drilling drilling Following personnel $XXX,XXX shift suspend last to operations of in the by into the year-ago fourth exploration Israel decision is Afek's the $XXX,XXX and in

second the subject $X.X Looking of non-controlling a stock from for customer quarter. U.K. as income $X.X to dividends the to in expenses on Ness quarter the first Genie million first increased XXXX. to million $X.X $XX.X preferred the to drop from $XXX,XXX million of in Retail operations $X.X EBITDA income interest regulatory $X.X million additional million the compared offset slight ahead, after acquisition in $X.X least attributable quarter. adjusted stockholders contribution an quarters gross increased in more and Genie to exploration in million Consolidated and our first quarter million Energy to adjusted to and incur work initiative third than and compared in $X.X profit EBITDA within was additional the XX during year-ago invested decrease at compared the the year common quarter this Net million. approval. could increased million to its first we $X.X Consolidated in

as March long-term declared and capital a XX, debt reported common to stock my dividend $XX.X our That Directors cash remarks equivalents on balance of continues mentioned, million. cash this call cash, sheet, restricted concludes just net $XX.X of now I I'll for and financial Board strengthen. Based results and working in quarterly on in the operating per million Q&A. Our to at We share. million results. operator quarter, first Genie's in turn of back $X.XXX our financial quarter the the $X.X

Operator

ahead. [Operator go Marchese, Instructions] And a Private from comes Please question Investor. first Anthony today's

Unidentified Analyst

nice earnings. morning, Yes, well, to one of question. guys. couple increase good the – Congratulations. A It's in see big

You the But amount quarter. electric this the if didn't, year I'm business of XX I electrical sure gas or explain power – back you bought – have not business XX cash. strategy your next months business, get, months? a you you acquisition not? to for could over could if And fair explain if you – why any stock

Avi Goldin

is This Anthony. Thank Avi Goldin. you,

have we On done buybacks, the question anything about not recently.

question. have probably what at of is level it both and about constantly you're use that cash the do the monitor authorization right and we do we board levels, something the is you decision management As as aware, an

very and at terms about prospects we're As things acquisitions excited potentially the that through acquisitions. have both we look organically we additional today, in growth of

share cash other comfortable actively to the but all factors, about think as both deliver So we are we are position, we value. with best and way monitoring our price

Unidentified Analyst

your what just the outreach? could share your us plans in I price, drop, investor given are And for it, precipitous with share you – call would

Michael Stein

going a that our retail Yes. definitely been Tony, little of more coming has a become investors talking active we business. bit money from we've past. be our are and been going business building the certainly to in than little with the to shareholders, story most We've We sheet. to bit We now of to reinvestment support and started clearer in shareholders either or in the it's in more – and continue get retail active money the balance Mike. the out

in currently are terms It's We options professionals different us with constantly looking evolving to of and companies at that help process. outreach a effort.

Unidentified Analyst

All right. Thank you.

Operator

of Shafter our Capital Management. gentlemen, Aaron from and question comes ladies Great And next Mountain

Aaron Shafter

drilling time the exactly? upon, get consultant when bit difficult – how expand you found the And and would kind of the relates XX. what operations. what got also question that little new My any Afek commence license, at a expect when you a and to be, Ness to if you Can outside you new line both will

So wanted.

Michael Stein

the Aaron, thanks question. for

basically viable oil the order after So results there just a be this actually auditing gas and in it are late-breaking of from would see before and in the happened and world pretty we all had And ago about bit the top the of X.X the got the said, commercially a one weeks to hydrocarbons firms. warrant came share seems more auditing really was the those of of if in quarter they but top call. name, It already development oil. ended, one sign I firms in that for testing can't evidence hydrocarbons this working kind little to majors. of

spend. do, felt expect renewal, we've between try that we the the of don't can will So we're where to the suggestion, and in in doing it, neighborhood drilling, surrounding it's we always huge going specifically, certainly We a to $X.X the thing results million that that the It when we've and those to get $X we're to license, the reaction But the and if talk to get is the get It's just license to auditors. when But area case well that ministry it out immediately the get we million. responsible there, good to know amount already renew the from to given going decided at if of area we go We're test. somewhere work potential talking that not really the renew more was to see renewal. to immediately. we'll renewal and we be given by well, the testing. the their cannot start just renewal, be and

Aaron Shafter

So what something type or about? of You're else? test testing are about in-pressure you talking talking

Avi Goldin

commission full-blown That's able, now, at But tests the still this being a project able don't in. able At to have time, to right to this if we'll the types that, sort go have secure – – it. don't plan be we once back time. we defined then of do defined. don't be we're have anything we But of for

Michael Stein

nearly been so doing won't already starting for will the it as sure be which scratch, it we again, as know as that of of What the we be responsible and we will – affect. and in from expensive can see wells, for has be drilling not most kind – spend, not been we've past,

Aaron Shafter

of the would you of or the renewal about type when from no expect timetable a the on ministry Any yes, license?

Michael Stein

the documentation a all of think them can answer on Yes, they've very is development, and tell we really last more gotten them, firm that. we've plans. have All accepted not late-breaking with I plans our a bit should we deal have. those this done and is And approach we again, once

Aaron Shafter

That’s End my questions. of all Q&A Okay.

Operator

for session our conference today's thank call. and [Operator Instructions] you We presentation. attending today's concludes This question-and-answer

your You disconnect wonderful may day. lines, a have now and

Genie Energy (GNE) 6 May 182018 Q1 Earnings call transcript