Genie Energy (GNE) 8 May 232023 Q1 Earnings call transcript

Good morning and welcome to Genie Energy’s first quarter 2023 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation by Genie Energy’s management, there will be an opportunity to ask questions.

Please note this event is being recorded.

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

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

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

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

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

release respective segments applicable reconciled addition, EBITDA presented. adjusted all In for segments’ operations periods in to the for are from earnings the income

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

Genie Welcome first earnings quarter to Brian. Energy’s Thank you call.

banner in it by did remarkable managing while a XXXX renewals but with As those excellent our management acquisition nimble achieved know, be were was volatility. have risk It team of to at customer we us our who results. following a market job ability year, Those you financial came cost. been results an driven and

customer wholesale that markets, efforts; saw the during and base however, acquisition the to scaled due XXXX, our XXXX extraordinary we energy back Throughout customer volatility in shrink our of size as, of return first growth. we period, would In be when to we quarter the to XXXX, on elaborate. Allow that stated subsided, promise. we ready to me that repeatedly we delivered the volatility

just our XX,XXX, increased REP base quarter, increase and of In RCEs, by the business, With of one within to the the highest XX% meter base XX,XXX year. count its last to in domestic this able by compared company’s quarter. increase climb our decreased increase, XX% to GRE, we X,XXX quarter a SG&A grew first were the in the from over history; meanwhile, RCEs expense last year-ago customer year, RCE an

results excellent. were also Financial

line the last at the QX best QX extraordinary bottom GRE’s history. year’s next able performance, While results level to not of in deliver we were

solid second growth ahead, results to Looking we expect continue and the strong financial quarter. in

GRE third our party increased revenue reflecting to services GREW, increased renewables, customers. or

integrated to our note, EBITDA Additionally, on we Of NTP project. proceed, support broke to adjusted we of with or construction generation develop quarter, moved we’ve projects, and power negative our strategy solar resource segment. several our own which after end investment ground the to the led projects, to first and the for closer expanded vertically to on notice

current solar disclosing development projects. move which control moving quarterly We stages this cycle. win earnings different potential basis continue process. that at projects approximately development on community forward are In table we them gaining intend we also through and projects to on the new updating XX and of utility-scale across are We megawatts to a continue development more as the of quarter’s site XX our toward release, solar consists pipeline,

value about this it are the drive We to future. expect in and excited opportunity business significant

$XX million to adjusted are on we well outlook, range. $XX million our EBITDA above $XX XXXX range, in target our to generate $XX to the normalized million Transitioning consolidated million pre-XXXX to

our continue to In to we significantly base expect customer grow addition, organically.

arbitrage outstanding year, wholesale second with we to lower past incumbent opportunity levels the stabilized Looking the at relative see energy costs the quarter, continue versus an to utilities. to

We quarter. growth first lower in rate this continue we the than exploit customers, will saw a adding at by likely albeit to

full pipeline of expect to opportunities. construction we continuing year potential Looking projects large to for to the GREW, complete on a Genie-owned evaluate several while

GREW consulting we major become the in for national a spaces As a solar years energy generation of to come. player result, intend to in and

term first to summary, renewables In strong to fulfill our commitment our results in to deliver to to continue we several generate emerging and in we efforts finally, continue and steps return our businesses, capital the shareholders. have taken quarter forward in our long growth

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

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

XXXX. the results three quarter for My to are XX, that remarks, remarks the our results factors seasonal XXXX our cover compare of businesses. remove I of from first characteristic March to consideration retain my XXXX quarter ended months Throughout today the financial energy primarily will first

areas. is platform. retail Genie’s our reflected by includes per-meter it strong first renewables underlying to results year’s as and quarter financial first our fundamentals typically investment The elevated service the REP levels quarter businesses’ characterized our and heating out of consumption seasonally gas months in of electricity continued very most build peak

with that than of at margins GRE usual in generated markets, the by moderating we consumption. the volatility engine energy elevated reduce customer stronger Last year and to our global levels we acquisition disclosed

this the commodity also spend, addition effective the supply size forward had reducing In of of customer our of and impact lowering us to our portion hedges customer our bucket. to enabled our a reduce but costs acquisition monetize

expense in cost we’d market Michael time and as We pursuing said when at this work adding conditions accomplished the channels. rebuild we successful aggressively base XX,XXX remarkably RCEs. increasing customer were, We first marketing to quarter, warranted, discussed, lower our the that acquisition by without

fortify our of stockholders financial and we to return further this balance quarter continued to results strong perspective, through value a position operating our stock us common stock. to as our dividends even enabled preferred sheet quarterly From redemption

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

increased first Average XX% revenue increased million XX% year by At to revenue by by increased kilowatt First sold $XX $XXX higher $XX businesses. million, from in markets. quarter the driven ago XX%, consolidated $XXX retail million quarter XX% quarter, sales increase to per our market GRE, electricity revenue by of our reflecting all across a virtually led in rates million. to electricity retail

Although the mild in X.X% therm quarter. XX% boost by meter reduction to increased $XX sold growth on consumption, year XX% sold. our a Gas XX% compared sales hours million contributed winter in ago per to overall per-meter kilowatt the helped to revenue increase electricity

gross at first solar basis renewables, our million, energy on XX% sales revenue $X from our in supplemented quarter business, quarter million and $X.X reflecting and Diversegy, gross the discussed by of million marketing decreased $XX $XX extraordinary profit XX%, a from $XX million quarter environment At to the first our I earlier. the to from decreased to million revenue of $XX million increased in from to year-ago decreased that consolidated increased compared margin growth nature first brokerage quarter’s community to the At XX% XXXX. primarily GRE, reflecting business

to X% million $XX.X SG&A At million. million decreased $XX.X to $XX Consolidated $XX million. GRE, from increased SG&A from

acquired channels. quarter was Although more growth cost than generated of lower this we XX,XXX much acquisition meters through year-ago period, that

continue per-meter increase. normalized expect further the head a to to our market more to stable we expense expect book build as that still and we our acquisition We into and in year

with the million, SG&A incurred by of Corporate wind operations, those the $X.X expenses now driven former residual to from international within primarily $X down impact corporate. operations in included increased of our million non-routine

platform a million, EBITDA reflects in million negative and EBITDA $XX respectively. Consolidated the year operations the $XXX,XXX consolidated respectively, first quarter to last period. from At $XX.X performance from to our year’s Genie and million, $XX ago million the decreased in negative million the from million, income from $XX.X was expand adjusted adjusted and records new quarter income our in which and $X.X capabilities. million first Genie operations the and $XXX,XXX decreased The and million outsized compared albeit negative Renewables change from below million EBITDA reflecting $XXX,XXX grow operations strong to reflects was operational of of we SG&A invested quarter were $XX.X result, adjusted as to $XX.X increase $XX.X $XX.X income XXXX. Retail, negative in book first and

$XX.X was of common the income the Genie’s one-time $X.XX within ago to common impacted discontinued operations million diluted $X.XX share, to Genie [indiscernible]. stockholders attributable quarter net million EPS quarter. positively to by Net and attributable compared Genie $XX.X in gains income in EPS net of was income stockholders and of year per

now on to cash, million restricted an from increase $XXX.X December our and million totaled million, $XXX.X March totaled sheet, XX of balance $XXX.X securities Turning last and liabilities cash just XX capital marketable million. at was equity $X.X non-current Working year.

the a first growth. strong kicked wrap by robust highlighted including performance quarter impressive up, customer margins To at financial and GRE, XXXX off with we

strengthening and our book continue our our We and return while leverage in expect value build common the strong retail renewables sheet stock. to holders to in pursue balance of both continuing sheet coming quarters and our further to retail other to growth businesses balance opportunities to our

for back to Operator, Now Q&A. you

Thank conference This concludes today’s our call. presentation. you and question for and answer session attending

may You now disconnect.