Genie Energy Announces Second Quarter 2023 Results

Record second quarter Revenue and Income from Operations

Strong customer growth at Genie Retail Energy

Increases 2023 Adjusted EBITDA¹ guidance to $47 million to $55 million (versus prior guidance of $40 million to $50 million)

NEWARK, N.J., Aug. 7, 2023 /PRNewswire/ -- Genie Energy, Ltd. (NYSE: GNE), a leading retail energy and renewable energy solutions provider, today announced results for the second quarter ended June 30, 2023.

Michael Stein, chief executive officer of Genie Energy, commented: "We achieved another quarter of strong financial results while significantly expanding our retail customer base and building out our solar generation pipeline. By quarter's end, we increased our cash position to over $115 million even after redeeming the final $7.4 million of our outstanding preferred stock."

"Genie Retail Energy took advantage of the relative stability of wholesale energy markets in the second quarter. Revenue, Income from Operations and Adjusted EBITDA reached the highest levels of any second quarter in our history, while our best-in-class marketing programs delivered 45% and 36% year-over-year increases in RCEs and meters, respectively.

"Genie Renewables continued adding new projects to its solar development pipeline, crossing the 100-megawatt (MW) threshold while building its platform to drive and support additional expansion."

Second Quarter 2023 Highlights
(Versus 2Q22 unless otherwise noted. Excludes discontinued operations of Genie Retail Energy International (GREI) for all periods unless otherwise noted.)

• Revenue increased 39.6% to $93.5 million from $66.9 million;
• Gross profit increased 28.1% to $38.2 million; gross margin decreased to 40.9% from 44.6%;
• Income from operations increased 27.7% to $15.0 million;
• Adjusted EBITDA¹ increased 29.5% to $15.8 million;
• Net income from continuing operations attributable to GNE common stockholders increased to $11.8 million from $6.8 million and diluted income per share (EPS) from continuing operations increased to $0.45 from $0.26;
• Net income attributable to GNE common stockholders decreased to $15.0 million from $33.9 million and diluted EPS decreased to $0.57 from $1.30;
  • Net income and EPS attributable to GNE common stockholders included a gain from discontinued operations of $3.2 million, or $0.12, compared to a gain of $27.1 million or $1.04;
• Cash, restricted cash and marketable equity securities increased to $115.1 million at June 30, 2023, from $113.7 million at March 31, 2023;
• Genie Energy will pay a $0.075 quarterly dividend to Class A and B common stockholders on or about August 21, 2023, with a record date of August 14, 2023;
• Genie Energy redeemed the remaining $7.4 million of its preferred stock.

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 Measure at the end of this release for an explanation of Adjusted EBITDA, as well as reconciliations to its most directly comparable GAAP measure.

Segment Highlights
Genie Retail Energy (GRE)
GRE income from operations increased 27.8% to $18.4 million, while Adjusted EBITDA increased 27.5% to $18.8 million. The increases were driven by increased customer counts reflecting strong customer acquisitions during the first half of the year.

Meters and RCEs served increased year-over-year by 101,000 and 118,000 to 381,000 and 380,000, respectively, as of June 30, 2023. Average monthly churn decreased to 4.3% sequentially from 4.4% in the first quarter of 2023.

Genie Renewables (GREW)
GREW increased second quarter revenue year-over-year, driven mainly by services provided to third parties, including its consultative energy services for large commercial customers.

Genie Solar added five new projects representing 30MW to its pipeline during the quarter. As of the end of the quarter, Genie Solar had a pipeline of potential projects totaling 108MW in development.

Balance Sheet and Cash Flow Highlights
As of June 30, 2023, Genie Energy reported cash, restricted cash and marketable equity securities of $115.1 million, an increase from $113.7 million at March 31, 2023.

Total assets as of June 30, 2023 were $286.0 million. Liabilities totaled $90.0 million, and working capital (current assets less current liabilities) totaled $156.0 million. Non-current liabilities were $2.8 million.

Net cash provided by operating activities was $3.0 million compared to $7.7 million a year ago.

Strategic Update and Commentary
Stein added, "At the beginning of the year, we announced a 2023 goal to continue delivering strong financial results while aggressively moving into growth mode at GRE once market volatility subsided. Our year-to-date results demonstrate the wisdom of this strategy. As we look to the second half of the year, we are positioned to continue delivering strong Adjusted EBITDA while adding profitable customers for GRE. As a result, we are increasing our Adjusted EBITDA guidance for the year to $47 million to $55 million from $40 million to $50 million.

"At GREW, we have one community solar farm already under construction and a second achieved notice to proceed (NTP) status in July. In addition, during the year, we expect to achieve key development milestones on several other projects and expand the number of potential projects and aggregate MW in our pipeline. Our expanding solar generation portfolio sets GREW up for improving financial performance over the next several years as more projects become operational."

Earnings Announcement and Supplemental Information
At 8:30 AM Eastern this morning, 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: 382001.

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 passcode: 48785. The replay will remain available through Tuesday, August 22, 2023. In addition, a recording of the call will be available for playback on the "Investors" section of the Genie Energy website.

About Genie Energy Ltd.
Genie Energy Ltd., (NYSE: GNE) is a retail energy and renewable energy solutions provider. 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 Renewables division is a vertically-integrated provider of commercial, community, and utility-scale solar energy 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.