Genie Energy (GNE) 8 May 242024 Q1 Earnings call transcript

Good morning, and welcome to Genie Energy's First Quarter 2024 Earnings Call. [Operator Instructions] Please note, this event is being recorded. I will now turn the call over to Brian Siegel of Hayden IR.

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

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

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

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

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

regular XXX,XXX Welcome solid quarterly respectively, stock, and trading to a over phase, Solar, a commercial first XXXX dividend, year-over-year. we quarter. Call. year. On Quarter profit third-party-owned XXX,XXX about strong ended to Earnings Genie we gross first below the of RCEs, First prior well quarter repurchased about common fair X% segment believe revenue the the increase Energy's up reported into in profit. construction several customers, EBITDA X%, GREW, XXX,XXX top our projects Brian. advanced with Genie GRE, its revenue, significant with another we drive we and Diversegy this gross and We quarter Within at shares morning adjusted quarter And At very helping of you, record had down is quarterly which Thank value.

of that even Genie-owned due opportunities. for our solar solar several the others also several and This of uncommon out pipeline pipeline, is viability. in the projects of dropped as new not to movement projects lack out are to development We development in advanced and added early-stage plans

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

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

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

start This normalized pre-XXXX deliver significant includes and company-wide remain Given EBITDA represents solar investments the solid to adjusted of operational utility-scale adjusted million, for million $XX projects like range EBITDA track we to range financial to $XX on year, $XX to increase ongoing in from a in and the $XX developing XXXX. significant million consolidated million our GREW.

organic reflect and both retail projections, both base This York. remain with customer our New toward we expectations of from our in continue expanded focus move and to and Consistent at GRE, opportunistic will inorganic. Perry to acquisitions, farms, upgraded we our Our our enhancing continuously and away our analytical capabilities. XXXX to on expect operational pivot international with completion solar at new potential our respect Lansing year, customer retail GREW, the

development expect move process and team we viable quickly. our development the Additionally, upgraded pipeline our expand further to project more through projects

years. expect Overall, straight Diversegy's contribute the profitability gross the fourth ever continues level grew and revenue in to Our our that highest growth XXth reached quarter. quarter, profit we for for consecutive well, enhanced will diversity perform Diversegy and to business the its coming its

business. we shares and continue solar in levels allocated to our progress to buy quarter, value we up, what at delivered make back wrap believe To capital our solid deep another

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

March will seasonal service XXXX impacted Michael, gas Thank as business. compare our to cover winter's I remove the the peak quarter electricity the quarter per Throughout our the quarterly for XXXX that characterized from the and of Supply months the consideration first factors on quarter months of thanks results I of In financial elevated remarks results, of first to ended discuss Energy remarks, levels My this is XXXX. for of to the typically heating X the includes it area. the today meter Retail for consumption joining us much that you, XX, call results our business, seasonally first morning. and my everyone when by

will quarter I EBITDA, remarks, highlighted Genie's adjusted investors our provide perspective value stockholders business. first Class performance my our as consistent financial stock results record EBITDA and profit returning gross by as of adjusted while common a measure, and during dividend. revenue in of solid measure quarterly our common well repurchases underlying non-GAAP on B through to a our our of discuss were Also with order to the

increased natural revenue hours to revenue in $XXX growth well by by decreases was consolidated and of year. sold average meter. sold the quarter from gas. price of was driven by to increase ago. first per first million meter from XX% million First $XXX million mentioned, that unit The increase in the increased in The our $XXX million $XXX as GRE, base quarter year the in last partially quarter increased as Michael XX% electricity At consumption both per kilowatt offset a

of quarter reflected increased of $XX.X business. decreased first million first by gross segment, from from quarter the gross from XX% increase quarter. continues brokerage by million, Solar by project XX.X% million a increased X.X% its At million, advisory third-party to expand $X.X increased development profit Renewables and and to driven revenue number in while to Solar, Consolidated of in XXX the $X.X Genie Diversegy. Genie commercial to sales largely our our XX.X%. attainment $XX.X points At Diversegy the basis milestones margin revenue

and gross partially to increased from the offset an from Genie in sales, in increase million, X.X% points in quarter first hours the in of quarter an million a XX.X%. basis kilowatt GRE, participation than to due Diversegy and $X.X doubled the more first SG&A reflecting reflecting margin profit corporate $XX decreased million by a a $XXX,XXX, businesses. receivable contribution sold X.X% to the margin paid decrease on expenses. offset in electricity XXXX, our from led $XX.X for to quarter and Consolidated higher margin Genie first from purchase acquisitions This Renewables, of Solar in $XX.X overall fees At rate programs, higher million dynamic by GRE's decline gross substantially decrease of increased Utility to of in to the customer XX.X% on gas profit XXX sales. gross an gross At

in At first ago Consolidated income charge for in from from an result from million to $XX.X in investment decrease a of operations the and decreased liabilities. quarter, strong on in increase in year increase rate gross in compared from quarter the insurance the the At $XX.X primarily ago acquisitions the $XXX,XXX in year operations quarter operations was increased ago narrowed decrease the the the to The $X.X quarter. captive SG&A and million increase $XX.X year in first in $X.X million million loss customer of Genie margins. as GRE, profit. the Renewables, reflects electricity to million, a noncash quarter from $X income million

million consolidated the in First adjusted from million EBITDA quarter. $XX.X to quarter $XX.X ago year decreased

contribution quarter, a the positive compared was diluted $X.XX $X.XX a Genie's share quarter. earlier. of contributed a per in Discontinued earnings share $X.XX the earnings per in a ago quarter, per to loss per share share per first to to in share compared year year earnings operations $X.XX this diluted

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

quarterly repurchased buyback B during common our returned and million stockholders Class As of through Michael our XXX,XXX our stock aggregate the in in dividend. that mentioned, shares quarter, value to $X.X regular we

quarter To we first opportunities. financially, wrap another solid significantly profit. We long-term returning invest in by to this record even value up, stockholders our and gross as highlighted remain revenue to committed growth quarter was

to Now you operator, Q&A. back for

you disconnect questions concludes lines [Operator your Instructions] this queue. conference, for Thank This your at time. and participation. may in are you There today's no