GNE - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to Genie Energy's Second Quarter 2024 Earnings Call. [Operator Instructions] After today's presentation by Genie Energy's management, there will be an opportunity to ask questions. Please note, this event is being recorded. I will now turn the call over to Brian Siegel of Hayden Ir. Sir, you may begin.

Brian Siegel

operator. you, Thank are Goldin, today and Genie CEO; Energy's results. With Energy's Michael CFO, Avi Genie operational who and me Stein, will financial discuss Any those uncertainties that whether cause actual conference nature, during differ subject may forward-looking materially to specific from are and or in call, risks to results statements made statements. general this with those reports that the These uncertainties but include, in risks are filed discussed the periodically and not limited to, SEC. we

made forward-looking Genie actual make or assumes from have obligation forecast. that no factors results cause we materially may any to may statements the update differ update those or that we to that to

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

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

EBITDA presented. through periods their Stein, Executive In addition, income to release the turn conference all segment's for over Officer. for in reconciled adjusted Chief the operations Michael from will respective earnings now I Genie's are segments applicable

Michael Stein

approximately and believe Xx value. balance shares paying enterprise to Earnings Thank morning, equivalent of and dividend we below Genie adjusted regular Second common repurchasing you, increased Call. cash cash, a to We EBITDA, well continues a its XXX,XXX cash our stock, $XXX it while Energy's Brian. seasonally in restricted We being add value solid Quarter Welcome another million, despite of quarterly trading which fair about our XXXX reported this to line quarters slower quarter.

were recognized first were strong XX% XXX,XXX to quarter customers of rebuilding Solar, and very we relatively At first we our revenue but when base. full a year quarter the our with At quarter, yet aggressively with GRE, from we Remember had another growth. RCEs, operating ended we from Genie second down solar flat From customer Diversegy we a quarter potential ago the and to XXX,XXX but farms. movement several which while in increased projects, a that pipeline of and subtracted pipeline XX the out is of amount the our megawatts. for common the megawatts, perspective, phase on permitting same, remain number solar XX revenue in net projects opportunities. moving early-stage forward over the

continue our X studies also New state progress We we in construction the and the into have X [Indiscernible] stage. moved pass had make at are that now projects phase, York the permitting projects to in July, and

team also rapidly. through made that We investments we've existing capabilities optimize the and and are confident enhance moving operational pipeline to should the pipeline the projects while us our upgrade help our grow more

solar for Developing our driver from acquisitions takes to site company. years. project right construction through strategy be the development long-term the reminder, a a is As value into of intended and projects typically operations

are with robust that we come. to to projects the streams for will years pursuing provide we growing However, revenue expect recurring company ROI projections

new group. opportunistic with significant to of remain in to to million $XX retail our track include utility-scale million EBITDA operational to increase a acquisitions. expect solid we range million Consistent represents consolidated pre-XXXX we ongoing projects solar and the customer in $XX year, Given projections, financial the of EBITDA investments $XX deliver developing and adjusted This range XXXX remain at half our respect on to XXXX. normalized adjusted for $XX first potential from million with significant

third late GRE, in example, increase significant we the in new to deal. For customers we a at aggregation signed as quarter a expect see

our for gross expect enhanced diversity XXth and Overall, contribute the the expect it will we Diversity We to that perform to record quarter our delivered quarter. fifth continue well. diversity for to grew profit business consecutive straight revenue we in quarter, deep delivered solar up, make growth believe progress deployed back To to levels at to value and buy capital are continue profitability in another our shares we and the solid business. wrap years. what coming

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

Avi Goldin

business. and financial XXXX Thank call remarks, for My months remove remarks you, the XXXX. from this thanks Throughout June XXXX the second everyone the us to for today the quarter cover second supply margins for results the pace results within joining factors strong the to compare quarterly morning. XX, ended quarter on quarter Michael, will business. I the of consideration of X and my which our of with results to the retail were results, consistent they our the our did retail particularly that not of annual had seasonal in impact Overall, compare our favorably notwithstanding second XXXX, that energy with the strong guidance, uniquely

the this revenue seasonally The XX% for X% to GRE's to decrease shoulder reflecting period million. revenue, decreased GRE dipped million $XX.X sold. natural from for of a quarter driven generated was by per Electricity is kilowatt where Consolidated $XX.X sales hour as gas. revenue primarily X.X% decrease $XX.X X.X% a million, in revenue

Although ago electric kilowatt meter X% electricity lower hours level. climbed maintain per year, nearly consumption at last sold meter slightly were counts to than the year

million, of at is from compared year GRE's at $XX.X obtained by performance. for margin sales-related the $XX Consolidated million XX.X% portfolio strong, XX.X%. to GREW expansion Genie of XX.X%. partially reflecting SG&A Energy's gross in million of above gross of to gross spending the the historical operating which continued GRE, At X% profit X.X% quarter in At represented driven GRE. profit full decrease quarter the $X a was margin of from margin a decreased acquisition ago contribution the first for well was our million, of came million consolidated reduced solar a decreased Diversegy gross $XX.X $XX.X revenue margin in to our [Indiscernible].

$XX.X from income insurance Consolidated driven we didn't charge EBITDA, quarter, income GAAP year impact bottom and noncash our Also by loss decreases ago a expense by recorded gross respectively subsidiary. primarily The of our The a SG&A. partially adjusted offset in the million reflected was on $XX in in operations from decreases in but line. was this reduction and operations adjusted million $XXX,XXX EBITDA period. representing the and captive $XX.X from $XX million is profit, reserve by reduction million, the were

in EPS this quarterly at $X.XX the compared share $X.XX capabilities liability Diversegy ago benefit year expect to to GRE, income was compared earlier. operational continue ago operations item $X.X $X.XX operations and the million wind Solar. we to to contributed year quarter year a as for the operations. decrease of added We million employees At $X.XX per from quarter gross share key on in on the GE's $X.X change the At that potential second new the Discontinued income increased to from expand ensuring. $XX.X risks million captive from operations year EPS per decreased of million reflecting to profit. certain from down in in loss is quarter second the a diluted to $XX.X the share diluted in GREW, loss a Genie overseas this per diluted the

to At short-term long million, million. June equity now balance $XXX.X restricted $XXX.X capital equivalents, cash cash XX, sheet. and cash, working Turning was the marketable securities and totaled

approximately sheet, regular value To by even our return our this financially, and our to returned $XX.X dividend. value stock shares further strengthening repurchased we we've quarter. quarterly we stockholders in mentioned, to of wrap our common Michael another highlighted million is balance up, as aggregate B Year-to-date, of our to Class share solid continue As XXX,XXX through this shareholders. repurchases quarter

are well during cooling third peak and positioned of continue the the strong to flows the We generating quarter's cash remainder season year.

back you for Now Q&A. to operator,

Operator

this session. you our time, [Operator At disconnect you queue question-and-answer at participation. will this this you. today's questions conducting may As thank conclude we at be your Thank conference, This your no time. lines for we will and we have in the time, and Instructions]

Genie Energy (GNE) 6 Aug 242024 Q2 Earnings call transcript