GNE - Earnings call 2 2023 | Genie Energy Ltd.

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Operator

Good morning, and welcome to Genie Energy's Second Quarter 2023 Earnings Call. [Operator Instructions] Please note, this event is being recorded.

I will now turn the call over to Brian Siegel of Hayden IR.

Brian Siegel

Thank you, operator. With me today are Michael Stein, Genie Energy's CEO; and Avi Goldin, Genie Energy's CFO, who will discuss operational and financial results.

differ during are call, uncertainties subject cause results made specific general that statements statements. actual nature, those in to to forward-looking this whether conference or may Any from materially risks and These risks not those periodically in discussed filed but reports we the limited that to, the with uncertainties and include, are SEC. from no have factors make materially may update the that made that to obligation cause those or update results forward-looking any to assumes forecast. or Genie statements we actual may that we to differ

During management measure. results. information operating that remarks, EBITDA measure makes their investors EBITDA, reference core useful a Management of to non-GAAP to provides its and our adjusted both management believes that supplement adjusted

reconciliation measures, of comparable presented. adjusted its release, nearest net all operations to consolidated consolidated is Our the earnings genie.com a which EBITDA GAAP and on periods for posted income income from IR includes page,

for through In earnings segment's income addition, segments in reconciled operations adjusted periods for EBITDA release respective their are all presented. the applicable from

I conference will Officer. Chief over Stein, Genie's now to Executive Michael turn the

Michael Stein

and welcome other listening and stakeholders to investors our Brian, today. you, Thank

built project quarter, very financial quarter expanding During quarter second retail from results, advancing record income customers, operations. momentum, our numbers of on add delivering we our new energy positive the and within levels of projects continuing pipeline second and to solar first significant including strong revenue and

to by relatively XXX,XXX remained meter new pace. In meters quarter, quarter. gross XX% increased the prices than the this we during added commodity XX% quarter's By and the customers. acquire more stable end, pushed in to year-ago by environment, GRE, to again we RCEs XXX,XXX. At adds double XX,XXX favorable had

ever more RCEs before history. the are in We serving company's than now

our marketing year our reflected the rate increase and meter in prior churn revenue spend Meanwhile, dropped ago in base. sales and quarters. Financially, is in X.X% to X.X% in our growing from and the both acquisitions increased

periods. customer We usually churn accelerates higher during are particularly pleased with acquisition this since

retention for to customer a from with reflects done. quarter. out well The significant impact job current passing work team, each them more making a which shout decrease our great is big A

minimizing we customer We on focus quarters. base will continue churn build to further even in our our upcoming as

Renewables, Genie the We number XX, control gained XXX XX projects, total company-owned totaling with quarter. pipeline to continue of on or potential generation. power to At GREW, megawatts, in bringing build second aggregate another our projects site projects of out five we an megawatts of roughly pipeline the

our to closed, New solar in first In in in megawatt York. April, proceed project, solar notice Perry, farm one, And community a a on a we York. achieved second on we community quarter X.XX Lansing, the New after broke project This community ground solar July, project.

are half expect and them, making we these and to anticipate projects creation. strong potential Looking of ownership and the second within ahead, of on value attractive of most, progress our we maximize and in sheet great of to retaining leverage in our relatively are shareholder capital all if economics the pipeline cost gain low not site balance more projects The year. control development

to and of EBITDA million $XX million million year-to-date increasing we we performance positive adjusted As our at range strong result a outlook, the forecast consolidated $XX year. to the million our $XX XXXX guidance the from of start are range to $XX the

$XX represents EBITDA, million normalized Our was from our to upwardly which also pre-XXXX range. increase $XX revised powerful million guidance a the in

a profitably reflected analytics significantly and in our operating operational those results. our strive in our success conditions line domestic enhance domestic reflects base, markets performance our bottom We operate and focus our is and transition continually our wide proven to exclusively our on market R&Ds operational excellence. capabilities, markets, customer across our in larger of range ability to in improvement retail The to our

base half of last With higher year, targeted second in investment in created year wholesale at continued levels rates the costs cost-effectively legacy includes this adds albeit rate This second of meter energy to also base pursuing half in guidance the certain than the cost incoming opportunities retail utilities. lower in year, first are remaining than Our should enable at organic a year. strategy of we the half. acquisitions of by our new lower expand growth customer meter the us

GREW, while to farm pipeline. the second and Looking to target and half expand advance the New our York our begin the project, complete to on construction of Perry, incrementally for year continuing we of construction of project are Lansing

our significant quarter, we up, businesses. second customer wrap forward deliver results taking significantly base our to increasing retail and continue renewables in operational while steps strong in the To and financial emerging

also to stock preferred stockholders to ongoing common quarterly remaining by redeeming our capital fulfill commitment and the our return dividend. We continued our stock paying to

this the you, team and Thank all, of strong was to quarter, In that the and I another make work. good efforts want very colleagues Genie my it possible. acknowledge up keep

discussion our of Now financial I'll call his over for results. QX to turn the Avi

Avi Goldin

on thanks for the morning. us everyone Michael, you, to call Thank and joining this

remarks primarily quarter remove remarks, months of second today Throughout XXXX from the are consideration XXXX our seasonal for characteristic X business. energy I'll compare XX, my on the retail My to financial results XXXX. to of June our focus factors the quarter that ended second

electricity our first second by in build investment in our as the reflected months and impacted peak year's very the underlying of out second again consumption, quarter. falls fundamentals financial The quarter levels retail quarter continued quarter the gas businesses' cooling and peak low to platform. it meter strong results typically Renewables and seasonally between third months heating is per Genie's

of the quarter were although slightly EBITDA, from operations in GRE, Margins second adjusted profit, the powered first standards, achieved year's for the second last record At this strong by customer exceptional we gross of quarter year. half base historical revenue, by below quarter. our rapid growth income and

our well. dividends even shareholders strong Genie position, other our performed sheet our a this continue solar At businesses for and of make our quarter we redemption in generation operating balance continue shares as preferred stock. pipeline, we the to outstanding perspective, development value progress Renewables, of return the renewables stock further financial quarterly to to From while enabled our results common to fortify us through

results in Now at more look the let's detail. quarter's

Second quarter $XX increased to sales, XX% to XX% retail by by million $XX At business. revenue strong our which GRE, $XX revenue increased million. by XX% electricity to consolidated million, second on increased quarter driven

hour increased by comparable Kilowatt in average electric sold XX% on a served. percentage meters increase

per decrease Our average decreased million sales on sold. kilowatt up to in revenue an hour X%. $X Gas edged sold X% XX% therm

strong to renewables quarter basis XXX decreased while increased Our $XX Diversegy. from by growth profit gross Gross $XX the to margin consolidated on million, million, second $X.X in million was at a revenue impacted XX%. basis points XX%

profit increased but SG&A $XX lower million. decreased position. the above $XX SG&A was as year ago quarter, sold was acquisitions well by million, margin profit XX% kilowatt XX% significant hour levels. sold to Gross to points XXX quarter. million. ago to ago to historical basis gross the increased hour XX% At the per XX%, year meter reflecting quarter gross GRE increased GRE, year by XX%, Consolidated to Compared compared increased strong gross increase a unusually to $XX impacted margin XX% an in kilowatt

ago the compared million. SG&A quarter Our $X.X unchanged at year to was

to and million. electricity EBITDA adjusted in million. XX% income to quarter GRE's more to the million XX% XX% customer increased increased acquisition. GRE, $XX.X of on profit increased XX% GRE's $XX.X operations At from EBITDA Consolidated offset increased than spending second income increased The from base. gross in expanded meter from $XX.X the million increase operations adjusted Consolidated $XX the strength to

negative $XXX,XXX negative Renewables' loss and Genie adjusted million from and $X.X earlier. operations of a loss compared to $X.X operations $XXX,XXX were year of and adjusted from EBITDA a million, respectively, EBITDA

increased SG&A as solar up As projects ramp come was the our projects reflect first community to spending results generating case year as online. next the begin early projects. in are revenue our solar last investment quarter, expected we These

caused to income income $X.XX gain entirely to our ago ago operations, to million Diluted business. any of international attributable stockholders continuing discontinued earnings quarter. from million $XX.X income operations, net in EPS quarter of increased was a was lower $X.XX compared on significant by Genie's XXXX European in Retail earlier. net the diluted impact the second common from which year $X.XX $XX as of per year our a share onetime $X.XX compared attributable Genie on to The from year included net common operations EPS the quarter Genie stockholders decline to exclude at of

Turning million, working At $XXX.X securities the June was sheet. capital balance marketable and now XX, million noncurrent totaled to equity cash, liabilities and restricted $X.X $XXX cash million. just totaled

and the strong the up, from wrap that company in Michael performance quarter, his record covered operational To remarks. to by continues in operations driven strong performance, achieving the deliver revenue income

not on the return paying the stock, our preferred continue common only to of We but to our value completing stock. shareholders, redemption dividend

us book to our and Our robust growth year. strong the in of first position position the results, retail for competitive guidance energy our our market customer half raise the

Q&A. Now you to operator, back for

Operator

from investor. coming a Your Nahita is Instructions] [Operator [ Fruta first ], question private

Unknown Attendee

and it's question the in Really Congrats. seeing? raising across now running just are up those amazing And can kind you're is, estimates meters estimates. A/Cs And considering where great situation I'm what quarter country conservative right bills first nonstop? I'm comment the just Very assume and how wondering heat I growth significantly that wave of are that quarter. in So the electrical be impressive. the ongoing on My will you wondering X. you're if

Michael Stein

No Yes, that Thanks We going that by confident very to for hit stick the to summer. warm throughput guidance. question about strong it. it. We're during wishes. is very, the feel going we're

Unknown Attendee

then you in all? of by And usage Texas? how so it going in that significantly, terms electricity is up the wholesale guys affected especially the when work does costs at Are

Michael Stein

summer, day hasn't It's been few seen a hours the -- a we've and Texas, there. here sustained definitely days Yes. it a of spikes a a but more price throughout sustained few period. for

have Winter we like Storm it's We So don't saw concerns. nothing what Uri. during those

rather. has storage the lot that pretty was to far we've that we tame, large gas a with do the probably had fact rest weather relative to have excess costs hot As as been across the stayed That the country. expected experiencing natural that country, the or of a

in we're good shape So though.

Unknown Attendee

have question. Great. show money And that that's yet? sheet any on more on by back you that on or got the whether you cash up the balance not quick held would update U.K. really I'm clear the one just where Do administrators?

Michael Stein

would balance sheet. I'll let Avi up talk to on where it show the

do back through the way making courts its We administration resolution but yet, this definitely haven't is money that we the gotten process, year. and expect and

Avi Goldin

Avi. is this ], Nahita [

as show that's would up assets well. current number. Other And balance elements of in in part of operations discontinued that the that on So sheet. there

Operator

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

may You disconnect. now

Genie Energy (GNE) 7 Aug 232023 Q2 Earnings call transcript