GNE - Earnings call 3 2023 | Genie Energy Ltd.

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Operator

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

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

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

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

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

Michael Stein

call. Thank third quarter you, earnings to Energy's Brian. Genie Welcome

first record early by continued in Our year. driven year mainly customer momentum GRE's the and the in the EBITDA, million since acquisition revenues half $XX retail quarterly from adjusted of with in investments QX into nearly

the Genie its process the Additionally, GREW expand in to pipeline with potential XX% from new up or quarter, year. projects, added forward moving X last continued of of XX,XXX we projects. At while in GRE, its gross Renewables construction meters of QX

essentially and XX% were customers the of half first respectively. meters year, sequentially year-over-year to therefore, in compared However, we less RCE adding XX%, aggressive were of the despite and and growth flat a

year was points last X.X%. at XX basis rate churn down Our from

the acquisition we X the New megawatts development York capitalize under continue the in quarter. projects comprising out first continuing At on projects X during GREW, aggressive we added we While as the were pipeline while pockets build customer of during not to construction. to X quarter, tower opportunities as half,

third $XX overall our guidance million previous as of $XX year-to-date we consolidated our to result about XXXX performance range million range the optimism to the million. increase and million into and a $XX As EBITDA our continued adjusted of business winter. This outlook, quarter strong to head strong $XX are increasing we reflects

Remember and to and to consolidated increase after continued domestic our are range operating from configures in a million, larger allowing million These operational transition $XX capabilities. and focus our of continuously our EBITDA investment analytical also results exclusively $XX these for higher these even enhancing pre-XXXX GREW. represent customer in expectations our reflect retail markets significant base, on our normalized

new customer the we retail For quarter, fourth continue acquisition. expect invest in to to

remaining opportunities expand at continue rate lower growth certain the we levels, pursue the the incumbent legacy enable our cost should of With lower costs albeit year. base This meter us at base to to strategy a wholesale effectively, targeted targeted in first of higher will organic energy cost half utilities. than growth created rates by

to in Looking toward solid our York phase making project. are the are construction solar New we York the Lansing and progress New for fourth repairing [ completing farm GREW, ] quarter for our

projects. opportunities will looking pipeline potential expand also course, we for our Of of continue to

position yet solar continuing create delivered operational pipeline. with long-term another we quarter up, strong financial results our while wrap value ourselves To to of and to medium incremental to

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

Avi Goldin

energy of XX, for XXXX third today I our compare primarily remarks, ended remove to us thanks remarks Thank third you, our of quarter September My seasonal and consideration call on morning. months Michael, XXXX business. characteristic XXXX. results focus the and everyone to my factors X to Throughout from the for results that joining this retail the on quarter financial are will

usage. is high consumption and levels electricity typically peak low meter this includes levels The of third gas cooling per which meter year's season per of by characterized quarter,

record by our from customer both solid revenue million, revenue by Renewables. revenue contributions $XXX mentioned, Michael strong and investments highlighted made increased $XXX the increased with $XX XX% this GRE quarterly GRE, quarterly results significant were Genie to or bottom driven XXXX million, million acquisition year. As in third we've XX% results. and quarter Consolidated to line At financial we

Sales and in XX% sold. Genie quarter. a served to a in $X.X kilowatt from growth meters the solar, per increase coupled in increase on electricity electric XX% ago XX% with increase increased million increased revenue Renewables CityCom. total year At consumption within from Diversegy XX% in A hour meter

in yielding Our gross strong quarter was at $XX third margin a the profit XX%. very consolidated million, of gross

margin the year gross Our gross ago ago profit declined in decreased $X X% while XX% quarter. the quarter, year from our from or million

XXXX important increased It's volatile the load decision in the of XXXX, to to in commodity company historical successfully has In and the prices. by our SG&A XX% impacted positively customer environment face to was added Consolidated levels note that margin $XX.X returned profitable margin million. meters. reduce has to

expense. acquisition million XX% At SG&A capabilities. million quarter. we to increased by increased Genie the driven $X.X to as million, in million $X.X SG&A Genie GRE, expand Solar's SG&A operational XX% $X.X to to Corporate increased continue from Renewables' customer decreased $XX.X

from a million decreased and operations was XX% was Adjusted $XX.X GRE compared million, their million, gross in ago income earlier. levels delivered year $XX.X a $XX.X from SG&A year operations was from reduction $XX reflecting million EBITDA in both respective $XX.X the increased million Consolidated compared million ago. year income $XX.X profit while EBITDA both to quarter, in to adjusted the expense.

an loss to $X.X the of operations in million. inventory. impacted $X.X Renewables million Renewables, by value from our Genie solar panel was from increased $XXX,XXX write-down At

million international of impact from Genie's income third million from common ago year to net $X.XX quarter. common EPS earlier. a of $X.XX in discontinued excludes $X.XX of on compared $XX.X Genie XXXX year decreased Genie to income was quarter attributable the diluted stockholders EPS in operations, $XX.X to quarter the on to net third Diluted from continuing stockholders of which operations, EPS any $X.XX our attributable

compared loss in a and businesses $XXX,XXX to in loss million of remaining exited this quarter. a our operations international from booked discontinued operations, year ago Scandinavia $X.X the In discontinued the quarter, we from

million. $XX.X the securities Genie totaled in to ] to up, during [ $X.X million and sequentially retail third restricted strengthen market volatility was just liabilities million. Wrapping by sheet in ago, Energy's balance year million capitalized we quarter. continued quarter achieve Working on noncurrent margins $XXX.X $XXX.X the Cash, the capital and increased unprecedented our a cash marketable exceptional to business.

customer more made positioned This results and under is we've solid XXXX quarter's for and build performance the well a base represent investments strong benefited significantly year GRE market from normalized our this to finish beyond. conditions.

scale pipeline At Genie to utility of solar while Renewables, we our advance projects continue

will put continuing business retail business in stockholders. our market we to flows to while significantly results our to our value our [Audio development in projects return investing while line accomplish the prudently Gap] With expand strong robust sheet, cash performances to unlevered solar and in bottom business to tour as that balance coming this permit accrete that years promising continue conditions and

operator, for Q&A. back Now to you

Operator

[Operator today's may you Instructions] Thank disconnect for this participation. you This conference, concludes at and your your lines time.

Genie Energy (GNE) 6 Nov 232023 Q3 Earnings call transcript