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OFFON

GENIE ENERGY LTD.

(GNE)
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Genie Energy Announces Third Quarter 2021 Results - Form 8-K

11/04/2021 | 06:55am EST

Genie Energy Announces Third Quarter 2021 Results

Record consolidated gross margin, gross profit and Adjusted EBITDA1

Genie Retail Energy (GRE) achieved record operating profitability

Planned orderly withdrawal from U.K. retail market underway

Newark, NJ - November 4, 2021: Genie Energy, Ltd. (NYSE: GNE, GNEPRA), a leading retail energy provider in deregulated markets in the U.S. and select markets in Europe, and a provider of renewables solutions in the U.S., today announced results for its third quarter ended September 30, 2021.

"Genie Energy performed exceptionally well this quarter, generating record gross margin, gross profit and Adjusted EBITDA," said Michael Stein, chief executive officer. "Our performance was highlighted by strong results from both our U.S. and Scandinavian energy supply businesses. Genie Renewables continued to experience robust customer demand, and we anticipate significant growth in the coming quarters.

"In our international business, as we previously announced, we are withdrawing from the U.K. market as a result of the impact of structural market limitations in the current high-cost environment. Although we have set aside plans for the spin-off, looking ahead, we expect no new material negative cash impact as a result of the exit. In fact, retiring from that market obviates the need to invest additional growth capital."

Third Quarter 2021 Highlights (3Q21 results versus 3Q20 unless otherwise noted)

Revenue increased 17.5% to $113.2 million;
Gross profit increased 55.1% to $42.4 million and gross margin increased to 37.4% from 28.4%;
Income from operations decreased to $6.9 million from $8.5 million; operating margin decreased to 6.1% from 8.8%. Income from operations included a loss from operations of $16.4 million in the UK (primarily expenses related to the Company's withdrawal from that market) compared to a loss from operations of $4.2 million from the U.K. a year ago;
Adjusted EBITDA increased 58.5% to $15.0 million compared to $9.5 million;
GRE generated record income from operations and Adjusted EBITDA of $19.7 million and $20.0 million, respectively, compared to $12.2 million and $12.5 million;
Net loss attributable to GNE common stockholders was ($2.7) million and diluted loss per share was ($0.10), including a $(0.26) per share writedown of assets related to the Company's exit from the U.K. market. In the year-ago quarter, net income was $6.4 million and diluted earnings per share (EPS) was $0.24; and,
Re-purchased 230,000 shares of GNE common stock for $1.4 million.
1 Adjusted EBITDA for all periods presented is a non-GAAP measure intended to provide useful information that supplements the core operating results in accordance with GAAP of Genie Energy or the relevant segment. Please refer to the Reconciliation of Non-GAAP Financial Measures at the end of this release for an explanation of Adjusted EBITDA, as well as for reconciliations to its most directly comparable GAAP measures.
Select Financial Metrics: Q3 2021 compared to Q3 2020
(in $M except for EPS) 3Q21 3Q20 Change
Consolidated Revenue $ 113.2 $ 96.3 17.5 %
Genie Retail - US (GRE) $ 86.3 $ 88.9 (2.9 )%
Electricity $ 82.8 $ 86.2 (3.9 )%
Natural Gas $ 3.5 $ 2.7 29.1 %
Genie Retail - International (GREI) $ 25.5 $ 5.8 337.5 %
Electricity $ 21.0 $ 5.6 275.3 %
Natural Gas $ 4.1 $ 0.0 nm
Genie Renewables $ 1.3 $ 1.6 (14.9 )%
Gross Margin 37.4 % 28.4 % 910 bp
Genie Retail - US (GRE) 39.6 % 29.0 % 1060 bp
Genie Retail - International (GREI) 30.5 % 18.7 % 1180 bp
Genie Renewables 34.0 % 27.1 % 690 bp
Income from Operations $ 6.9 $ 8.5 (19.0 )%
Operating Margin 6.1 % 8.8 % (270 )bp
Net (Loss) Income Attributable to Genie Energy Ltd. Common Stockholders $ (2.7 ) $ 6.4 213.7 %
Diluted (Loss) Earnings Per Share $ (0.10 ) $ 0.24 $ (0.34 )
Adjusted EBITDA $ 15.0 $ 9.5 34.9 %
Cash Flow from Operating Activities $ 6.0 $ 10.4 (42.7 )%
Select Business Metrics: 2021 versus 2020 as of 9/30/21
Units in 1000s 3Q21 3Q20 Change
Retail Performance Metrics:
Retail Customer Equivalents (RCE) 434 441 (1.5 )%
Genie Retail - US (GRE) 336 350 (3.9 )%
Electricity 276 294 (5.9 )%
Natural Gas 60 56 6.6 %
Genie Retail - International (GREI) 98 91 7.5 %
Electricity 73 69 6.1 %
Natural Gas 24 22 12.1 %
Meters 554 558 (0.7 )%
Genie Retail - US (GRE) 361 375 (3.8 )%
Electricity 289 309 (6.4 )%
Natural Gas 72 67 8.0 %
Genie Retail - International (GREI) 193 182 5.9 %
Electricity 138 136 1.1 %
Natural Gas 55 46 20.0 %
GRE Average Monthly Churn - Meters
Gross Sales 46 44 4.5 %
Churn 4.0 % 3.7 % 30 bps

2

GRE delivered record levels of gross profit, income from operations and Adjusted EBITDA for the quarter driven by strong margins in the retail book and mark-to-market increases in the value of its forward commodity positions after both electricity and natural gas prices rose sharply. In addition, Genie recorded a $1.9 million credit to the cost of sales reflecting expected reimbursement from the State of Texas for charges imposed by ERCOT during the severe winter storm in February 2021. Operationally, GRE served 336,000 RCEs at September 30, 2021, a 2.0% increase sequentially and a 3.9% decrease year over year. Per meter consumption, while decreasing slightly compared to the year-ago quarter, remained above pre-COVID levels. Monthly churn, at 4.0%, was below typical pre-COVID levels while increasing from 3.7% in the year-ago quarter and from 3.8% in the prior quarter.

GREI revenue growth was driven by the consolidation of Orbit Energy (U.K.) results following our purchase of the non-controlled interest in Orbit during October 2020, which previously had not been consolidated, and by organic meter growth compared to the prior year. Orbit Energy's loss from operations was $16.4 million for the quarter, including a $6.7 million ($0.26 cents per share) impairment of assets In Scandanavia, GREI curtailed meter acquisition in a rising commodity price environment, leading to increased profitability and a decrease in meters served during the quarter.

Genie Renewables (formerly Genie Energy Services) reported a higher gross margin and improved overall results as it shifted to higher-margin solar projects.

Balance Sheet and Cash Flow Highlights

At September 30, 2021, Genie Energy reported $193.2 million in total assets, including $48.6 million in cash, restricted cash and marketable equity securities. Liabilities totaled $110.7 million and working capital (current assets less current liabilities) totaled $44.4 million. Non-current liabilities were $3.0 million.

Cash provided by operating activities during the quarter ended September 30, 2021 was $6.0 million compared to $10.4 million a year ago.

Strategic Update

Genie has suspended the planned spin-off of its international operations in the U.K. and Scandinavia following the deterioration of the U.K. energy market, where a planned, orderly withdrawal from the market is underway. Genie does not expect to incur additional material, cash charges as a result.

Fourth Quarter Commentary

Heading into the winter heating season, Genie is positioned to mitigate foreseeable volatility in wholesale energy prices through its risk-management program including hedging and forward commodity contract positioning. As a result of commodity price increases, Genie expects to generate robust margins from its retail supply businesses. Moreover, the company expects to reduce supply requirements by narrowing its customer acquisition program to higher margin customers. This strategy optimizes margins while dampening customer acquisition expense. When combined with increasing profitability in Scandanavia, the elimination of additional investment in the U.K. market and growth opportunities for Genie Renewables, management believes the Company is well positioned to deliver strong fourth quarter results.

3

Trended Financial Information:*

(in $M except EPS, RCE and Meters) 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 2019 2020

YTD

2021

Total Revenue $ 104.1 $ 76.1 $ 96.3 $ 102.9 $ 135.3 $ 97.7 $ 113.2 $ 315.3 $ 379.3 $ 346.2
Genie Retail - US (GRE) $ 79.1 $ 66.5 $ 88.9 $ 69.9 $ 90.7 $ 67.0 $ 86.3 $ 286.6 $ 305.3 $ 244.0
Electricity $ 63.1 $ 61.1 $ 86.2 $ 60.5 $ 73.4 $ 61.9 $ 82.8 $ 246.7 $ 271.7 $ 218.1
Natural Gas $ 16.1 $ 5.4 $ 2.7 $ 9.4 $ 17.3 $ 5.1 $ 3.5 $ 39.9 $ 33.6 $ 25.9
Genie Retail - International (GREI) $ 6.7 $ 5.0 $ 5.8 $ 31.8 $ 42.2 $ 28.4 $ 25.5 $ 16.6 $ 49.6 $ 96.1
Electricity $ 6.9 $ 4.8 $ 5.6 $ 23.4 $ 30.3 $ 21.4 $ 21.0 $ 16.4 $ 40.7 $ 72.7
Natural Gas $ 0.0 $ 0.0 $ 0.0 $ 8.3 $ 11.8 $ 6.7 $ 4.1 $ 0.0 $ 8.3 $ 22.6
Genie Renewables $ 18.0 $ 4.6 $ 1.6 $ 1.1 $ 2.5 $ 2.3 $ 1.3 $ 12.1 $ 24.4 $ 6.2
Gross Margin 27.8 % 25.6 % 28.3 % 21.4 % 12.9 % 24.3 % 37.4 % 26.3 % 25.8 % 24.2 %
Genie Retail - US (GRE) 43.7 % 25.7 % 29.0 % 25.6 % 16.5 % 27.4 % 39.6 % 28.1 % 28.9 % 27.6 %
Genie Retail - International (GREI) -4.5 % 38.0 % 19.0 % 13.8 % 3.3 % 15.9 % 30.5 % 1.8 % 14.5 % 14.3 %
Genie Renewables 8.9 % 11.4 % 27.1 % -29.0 % 44.9 % 39.4 % 34.0 % 15.7 % 9.4 % 40.4 %
Income (loss) from Operations $ 9.2 $ 2.7 $ 8.5 $ (1.1 ) $ (6.6 ) $ 1.4 $ 6.9 $ 9.8 $ 19.3 $ 1.7
Operating Margin 8.8 % 3.6 % 8.8 % -1.1 % -4.9 % 1.4 % 6.1 % 3.1 % 5.1 % 0.5 %
Net income attributable to Genie Energy ltd. common stockholders $ 5.5 $ 1.6 $ 6.4 $ (1.7 ) $ (2.4 ) $ 5.0 $ (2.7 ) $ 2.7 $ 11.7 nm
Diluted Earnings (Loss) Per Share $ 0.20 $ 0.06 $ 0.24 $ (0.06 ) $ (0.09 ) $ 0.19 $ 0.10 $ 0.10 $ 0.44 $ 0.00
Adjusted EBITDA1 $ 10.3 $ 3.5 $ 9.5 $ 0.7 $ (4.5 ) $ 3.1 $ 15.0 $ 10.1 $ 24.0 $ 13.5
Retail Customer Equivalents (RCE)in 1000s 398 418 437 435 446 436 434 nm nm nm
Genie Retail - US (GRE) 330 343 350 337 347 330 336 nm nm nm
Electricity 272 288 294 284 291 272 276 nm nm nm
Natural Gas 58 55 56 53 56 58 60 nm nm nm
Genie Retail - International (GREI) 69 76 87 98 98 106 98 nm nm nm
Electricity 50 55 66 76 77 82 73 nm nm nm
Natural Gas 19 21 22 21 21 24 24 nm nm nm
Meters in 1000s units 520 522 543 547 555 554 554 nm nm nm
Genie Retail - US(GRE) 384 374 375 368 373 361 361 nm nm nm
Electricity 313 311 309 303 308 292 289 nm nm nm
Natural Gas 71 64 67 65 65 69 72 nm nm nm
Genie Retail - International (GREI) 136 147 167 179 182 193 193 nm nm nm
Electricity 96 105 121 132 135 141 138 nm nm nm
Natural Gas 40 43 46 47 47 52 55 nm nm nm
Average Monthly Churn - Meters
Genie Retail - US (GRE)
Gross Sales 69 40 44 59 60 35 46 308 212 144
Chum 4.3 % 3.9 % 3.7 % 5.3 % 4.9 % 3.8 % 4.0 % 5.3 % 4.4 % 4.2 %

nm = not measurable/meaningful

*Numbers may not add due to rounding

4

Earnings Announcement and Supplemental Information

Genie Energy has filed this release in a current report (Form 8-K) with the SEC and posted it on its website (https://genie.com/investors/investor-relations/).

At 8:30 AM Eastern today, Genie Energy's management will host a conference call to discuss financial and operational results, business outlook and strategy. The call will begin with management's remarks followed by Q&A with investors.

To participate in the conference call, dial 1-888-506-0062 (toll-free from the US) or 1-973-528-0011 (international) and provide the following participant access code: 536748.

Approximately three hours after the call, a call replay will be accessible by dialing 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and providing the replay PIN: 43494. The replay will remain available through November 18, 2021. A recording of the call also will be available for playback on the "Investors" section of the Genie Energy website.

About Genie Energy Ltd.

Genie Energy Ltd. (NYSE: GNE, GNEPRA), is a provider of energy services. The Genie Retail Energy division supplies electricity, including electricity from renewable resources, and natural gas to residential and small business customers in the United States. The Genie Retail Energy International division supplies customers in selected markets in Europe. Genie Renewables comprises Genie Solar Energy, a provider of end-to-end customized solar solutions primarily for commercial customers, Diversegy, a commercials energy consulting business, CityCom Solar, a provider of community solar energy solutions and Genie's interest in Prism Solar, a supplier of solar panels and solutions. For more information, visit Genie.com.

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings "Risk Factors" and

"Management's Discussion and Analysis of Financial Condition and Results of Operations"), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

Contact:

Brian Siegel IRC, MBA

Managing Director

Hayden IR

(346) 396-8696

brian@haydenir.com

5

GENIE ENERGY LTD.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

September 30,
2021
December 31,
2020
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $ 33,983 $ 36,913
Restricted cash-short-term 6,528 6,271
Marketable equity securities 8,048 5,089
Trade accounts receivable, net of allowance for doubtful accounts of $16,465 and $8,793 at September 30, 2021 and December 31, 2020, respectively 58,593 60,778
Inventory 23,648 16,930
Prepaid expenses 5,767 4,633
Other current assets 15,924 3,206
Total current assets 152,491 133,820
Property and equipment, net 281 259
Goodwill 25,627 25,929
Other intangibles, net 3,768 11,645
Deferred income tax assets, net 2,005 4,882
Other assets 9,448 10,804
Total assets $ 193,620 $ 187,339
Liabilities and equity
Current liabilities:
Loan payable $ - $ 1,453
Trade accounts payable 39,760 43,005
Accrued expenses 51,339 42,762
Contract liability 8,317 5,609
Income taxes payable 6,435 1,893
Due to IDT Corporation, net 109 257
Other current liabilities 2,132 2,494
Total current liabilities 108,092 97,473
Other current liabilities 2,965 3,787
Total liabilities 111,057 101,260
Commitments and contingencies - -
Equity:
Genie Energy Ltd. stockholders' equity:
Preferred stock, $0.01 par value; authorized shares-10,000:
Series 2012-A, designated shares-8,750; at liquidation preference, consisting of 2,322 shares issued and outstanding at September 30, 2021 and December 31, 2020 19,743 19,743
Class A common stock, $0.01 par value; authorized shares-3,500; 1,574 shares issued and outstanding at September 30, 2021 and December 31, 2020 16 16
Class B common stock, $0.01 par value; authorized shares-200,000; 26,582 and 25,966 shares issued and 24,600 and 24,646 shares outstanding at September 30, 2021 and December 31, 2020, respectively 266 260
Additional paid-in capital 141,787 140,746
Treasury stock, at cost, consisting of 1,982 and 1,320 shares of Class B common stock at September 30, 2021 and December 31, 2020, respectively (13,922 ) (9,839 )
Accumulated other comprehensive income 2,994 3,827
Accumulated deficit (56,673 ) (56,658 )
Total Genie Energy Ltd. stockholders' equity 94,211 98,095
Noncontrolling interests (11,648 ) (12,016 )
Total equity 82,563 86,079
Total liabilities and equity $ 193,620 $ 187,339

6

GENIE ENERGY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended
September 30,
Nine Months Ended
September 30,
2021 2020 2021 2020
(in thousands, except per share data)
Revenues:
Electricity $ 103,799 $ 91,793 $ 290,783 $ 227,671
Natural gas 7,609 2,724 48,458 24,190
Other 1,756 1,809 6,970 24,591
Total revenues 113,164 96,326 346,211 276,452
Cost of revenues 70,788 69,010 262,540 200,744
Gross profit 42,376 27,316 83,671 75,708
Operating expenses and losses:
Selling, general and administrative (i) 28,853 18,831 75,366 54,287
Impairment of assets 6,650 - 6,650 993
Income from operations 6,873 8,485 1,655 20,428
Interest income 8 21 28 164
Interest expense (99 ) (48 ) (311 ) (223 )
Equity in the net income (loss) in equity method investees, net 52 (146 ) 215 (1,698 )
Unrealized (loss) gain on marketable equity securities and investments (5,312 ) - 1,710 -
Gain on sale of subsidiary - - 4,226 -
Other (loss) income, net (17 ) 291 267 390
Income before income taxes 1,505 8,603 7,790 19,061
Provision for income taxes (3,822 ) (2,406 ) (7,515 ) (5,563 )
Net (loss) income (2,317 ) 6,197 275 13,498
Net loss attributable to noncontrolling interests (31 ) (531 ) (821 ) (1,026 )
Net (loss) income attributable to Genie Energy Ltd. (2,286 ) 6,728 1,096 14,524
Dividends on preferred stock (370 ) (370 ) (1,111 ) (1,111 )
Net (loss) income attributable to Genie Energy Ltd. common stockholders $ (2,656 ) $ 6,358 $ (15 ) $ 13,413
(Loss) Earnings per share attributable to Genie Energy Ltd. common stockholders:
Basic $ (0.10 ) $ 0.25 $ (0.00 ) $ 0.51
Diluted $ (0.10 ) $ 0.24 $ (0.00 ) $ 0.50
Weighted-average number of shares used in calculation of (loss) earnings per share:
Basic 25,514 25,928 25,867 26,107
Diluted 25,514 26,769 25,867 26,839
Dividends declared per common share $ - $ 0.085 $ - $ 0.245
(i) Stock-based compensation included in selling, general and administrative expenses $ 531 $ 447 $ 1,680 $ 1,331

7

GENIE ENERGY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

Nine Months Ended
September 30,
2021 2020
(in thousands)
Operating activities
Net income $ 275 $ 13,498
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 3,326 2,219
Impairment of assets 6,650 993
Deferred income taxes 2,877 4,838
Provision for doubtful accounts receivable 8,018 2,209
Unrealized gain on marketable equity securities and investment (1,710 ) -
Stock-based compensation 1,680 1,331
Equity in the net (income) loss in equity method investees (215 ) 1,698
Gain on sale of subsidiary (4,226 ) -
Loss on sale of assets held for sale - 456
Gain on deconsolidation of subsidiaries - (98 )
Change in assets and liabilities:
Trade accounts receivable (7,570 ) 2,827
Inventory (6,718 ) 3,218
Prepaid expenses (1,524 ) 2,166
Other current assets and other assets (13,718 ) (633 )
Trade accounts payable, accrued expenses and other current liabilities 5,414 2,018
Contract liability 2,796 (12,393 )
Due to IDT Corporation (148 ) (266 )
Income taxes payable 4,542 (43 )
Net cash provided by operating activities 86 24,038
Investing activities
Capital expenditures (158 ) (125 )
Proceeds from disposal of assets held for sale - 48
Proceeds from the sale of a subsidiary, net of cash disposed 4,550 -
Purchase of marketable equity securities (1,000 ) -
Investments in equity method investee - (1,502 )
Purchase of short-term equity investments (750 ) -
Payment of acquisition of intangible - (298 )
Repayment of notes receivable 14 14
Net cash provided by (used in) investing activities 2,656 (1,863 )
Financing activities
Dividends paid (1,111 ) (7,543 )
Proceeds from revolving line of credit - 1,000
Repayment of revolving line of credit - (3,514 )
Proceeds from loan - 1,395
Repayment of loan - -
Purchases of Class B common stock (3,847 ) (1,634 )
Repayment of notes payable - (25 )
Proceeds from exercise of stock options - 18
Purchase of Class B common stock from employees upon vesting of restricted shares (236 ) (263 )
Repayment of loan payable - (930 )
Net cash used in financing activities (5,194 ) (11,496 )
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (221 ) (3 )
Net (decrease) increase in cash, cash equivalents, and restricted cash (2,673 ) 10,676
Cash, cash equivalents, and restricted cash at beginning of period 43,184 38,554
Cash, cash equivalents, and restricted cash at end of period $ 40,511 $ 49,230

8

Reconciliation of Non-GAAP Financial Measures for the Third Quarter 2021

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), Genie Energy disclosed for the third quarter 2021, as well as for the third quarter 2020, Adjusted EBITDA on a consolidated basis and for its Genie Retail Energy segment. Adjusted EBITDA is a non-GAAP measure.

Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

Genie Energy's measure of consolidated Adjusted EBITDA starts with net income and adds back interest, taxes, depreciation, amortization, stock-based compensation and impairment of assets and subtracts out equity in the net loss of equity method investees, net. Genie Energy's measure of segment level Adjusted EBITDA starts with income (loss) from operations, and adds back depreciation, amortization, stock-based compensation and subtracts out impairment of assets and equity in the net loss of equity method investees, net.

Adjusted EBITDA should be considered in addition to, not as a substitute for, or superior to, revenue, gross profit, income from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, Genie Energy's measurement of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Management believes that Genie Energy's measure of Adjusted EBITDA provides useful information to both management and investors by excluding certain expenses that may not be indicative of Genie Energy's core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision-making.

Management also uses Adjusted EBITDA to evaluate operating performance in relation to Genie Energy's competitors. Disclosure of this non-GAAP financial measure may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, Genie Energy has historically reported Adjusted EBITDA and believes it is commonly used by readers of financial information in assessing performance. Therefore, the inclusion of comparative numbers provides consistency in financial reporting at this time.

Management refers to Adjusted EBITDA as well as the GAAP measures revenue, gross profit, income (loss) from operations and net income (loss), on a consolidated level to facilitate internal and external comparisons to Genie Energy's historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.

Although depreciation and amortization are considered operating costs under GAAP, they primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Genie Energy's operating results exclusive of depreciation and amortization are therefore useful indicators of its current performance.

Stock-based compensation recognized by Genie Energy and other companies may not be comparable because of the various valuation methodologies, subjective assumptions and the variety of types of awards that are permitted under GAAP. Stock-based compensation is excluded from Genie Energy's calculation of Adjusted EBITDA because management believes this allows investors to make more meaningful comparisons of the operating results of Genie Energy's core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for Genie Energy for the foreseeable future and an important part of employees' compensation that impacts their performance.

Impairment of goodwill is a component of (loss) income from operations that is excluded from the calculation of Adjusted EBITDA. The impairment of goodwill is primarily dictated by events and circumstances outside the control of management that trigger an impairment analysis. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of Genie Energy's continuing operations.

Following are the reconciliations of Adjusted EBITDA on a consolidated basis to its most directly comparable GAAP measure. Adjusted EBITDA is reconciled to net income for Genie Energy on a consolidated basis and for the Genie Retail Energy (GRE) segment.

9

Reconciliation of Adjusted EBITDA on a Consoliadated Basis and for Genie Retail Energy (GRE)

Consolidated GRE
Three months ended September 30, 2021 (Q3 2021)
Net loss attributable to Genie Energy LTD $ (2,286 )
Net loss attributable to non-controlling interests (31 )
Net loss $ (2,317 )
Provision for income taxes (3,822 )
Other loss, net (17 )
Unrealized loss on marketable equity securities and investments (5,312 )
Interest income 8
Interest expense (99 )
Equity in the net income of equity method investees 52
Income from operations $ 6,873 $ 19,715
Add:
Stock-based compensation 531 155
Depreciation and amortization 881 90
Subtract:
Equity in the net income of equity method investees (52 )
Impairment of assets (6,650 )
Adjusted EBITDA $ 14,987 $ 19,960
Consolidated GRE
Three months ended September 30, 2020 (Q3 2020)
Net income attributable to Genie Energy LTD $ 6,728
Net income attributable to non-controlling interests (531 )
Net income $ 6,197
Provision for income taxes (2,406 )
Other income, net 291
Interest income 21
Interest expense (48 )
Equity in the net loss of equity method investees (146 )
Income from operations $ 8,485 $ 12,228
Add:
Stock-based compensation 447 172
Depreciation and amortization 670 117
Subtract:
Equity in the net loss of equity method investees 146
Adjusted EBITDA $ 9,456 $ 12,517

# # #

10

Disclaimer

Genie Energy Ltd. published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 11:54:07 UTC.


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Financials (USD)
Sales 2020 379 M - -
Net income 2020 13,2 M - -
Net cash 2020 36,2 M - -
P/E ratio 2020 16,4x
Yield 2020 3,54%
Capitalization 131 M 131 M -
EV / Sales 2019 0,58x
EV / Sales 2020 0,40x
Nbr of Employees 202
Free-Float 76,0%
Chart GENIE ENERGY LTD.
Duration : Period :
Genie Energy Ltd. Technical Analysis Chart | MarketScreener
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Technical analysis trends GENIE ENERGY LTD.
Short TermMid-TermLong Term
TrendsBearishNeutralBearish
Income Statement Evolution
Managers and Directors
Michael Menachem Stein Chief Executive Officer
Avi Goldin CFO, Treasurer & Principal Accounting Officer
Howard S. Jonas Chairman
William Wesley Perry Lead Independent Director
Allan Sass Independent Outside Director
Sector and Competitors
1st jan.Capi. (M$)
GENIE ENERGY LTD.-10.23%131
NATIONAL GRID PLC2.02%53 164
SEMPRA1.24%42 766
ABU DHABI NATIONAL ENERGY COMPANY PJSC-3.79%38 876
ENGIE0.89%35 796
E.ON SE-2.00%35 141