Core Viewpoint - Genie Energy Ltd. has successfully closed a $7.4 million fixed-rate term loan to finance a portfolio of solar generation assets, enhancing its solar generation strategy and financial performance [1][2][3]. Group 1: Financing Details - The loan, secured through National Cooperative Bank (NCB), is designated for a solar array portfolio with a total capacity of 10MW [2]. - The solar arrays were acquired through Genie’s Sunlight Energy subsidiary and are supplying power to educational facilities in three Midwestern states via fixed-price solar power purchase agreements (PPAs) [2]. Group 2: Company Strategy and Performance - CEO Michael Stein expressed satisfaction with the financing, noting that the solar assets have met revenue and profitability expectations since acquisition [3]. - The financing is expected to improve the return on equity for the solar arrays and is a crucial part of Genie Energy's solar generation strategy within its Genie Renewables division [3]. - As of September 30, 2024, Genie Renewables has a development pipeline of 96 MW, which includes two utility-scale projects under construction and 17 projects in various pre-construction stages [3]. Group 3: Company Overview - Genie Energy Ltd. is a prominent provider of retail energy and renewable energy solutions, supplying electricity and natural gas to residential and small business customers in the U.S. [5]. - The Genie Renewables division includes Genie Solar, which offers community and utility-scale solar energy solutions, and Diversegy, an energy procurement advisor [5].

Group 1 - Genie Energy (NYSE: GNE) shares have experienced a modest gain since the previous article where a Buy rating was assigned [1] - Q3 results appear weak compared to the prior year, but management has effectively executed on their guidance [1] - The focus is on identifying asymmetric investment opportunities in undercovered companies, particularly in technology, software, electronics, and energy transition sectors [1]

Revenue Performance - Genie Retail Energy's revenues represented approximately 94.5% and 94.6% of consolidated revenues for the three and nine months ended September 30, 2024, respectively, compared to 96.2% for both periods in 2023[179]. - Total revenues for Q3 2024 were $105,800,000, down 12.1% from $120,313,000 in Q3 2023[193]. - Genie Renewables' revenues increased by 29.2% in Q3 2024, reaching $6.117 million, compared to $4.736 million in Q3 2023[217]. Customer Metrics - Customer A represented 16.0% of consolidated net trade receivables as of September 30, 2024, down from 21.4% at December 31, 2023[185]. - Customer A accounted for 20.9% of revenues for the three months ended September 30, 2024, compared to 24.1% for the same period in 2023[186]. - The number of electricity customers served increased to 311,000 as of September 30, 2024, up from 304,000 a year earlier[199]. - Total meters served increased to 399,000 as of September 30, 2024, reflecting a significant aggregation deal initiated in September 2024[201]. Profitability and Margins - Gross profit for Q3 2024 was $35,772,000, a decrease of 12.4% from $40,829,000 in Q3 2023[193]. - Gross margin percentage for electricity decreased to 33.4% in Q3 2024 from 34.1% in Q3 2023, while natural gas gross margin increased to 40.7% from 33.3%[207]. - Total gross margin percentage for the company decreased slightly to 33.8% in Q3 2024 from 33.9% in Q3 2023[207]. Costs and Expenses - Cost of revenues for Q3 2024 was $70,028,000, down 11.9% from $79,484,000 in Q3 2023[205]. - Selling, general and administrative expenses increased by 10.1% in Q3 2024 compared to Q3 2023, primarily due to higher marketing and customer acquisition costs[211]. - The average unit cost of electricity increased by 2.0% in the three months ended September 30, 2024, compared to the same period in 2023, due to higher wholesale prices[207]. Cash Flow and Capital Expenditures - Cash flows from operating activities for the three months ended September 30, 2024, were $49,174,000, compared to $32,561,000 in the same period in 2023[238]. - Capital expenditures increased to $4,000,000 for the nine months ended September 30, 2024, compared to $0.9 million in the same period in 2023, primarily for solar project construction[247]. - The company expects total capital expenditures for the twelve months ending December 31, 2024, to be between $6.0 million and $10.0 million, mainly related to solar projects[247]. Net Income and Losses - Net income attributable to Genie Energy Ltd. for the three months ended September 30, 2024, was $10,199,000, down 29.5% from $14,459,000 in the same period in 2023[229]. - The net loss from discontinued operations of Lumo Finland and Lumo Sweden was minimal at $0.3 million for the three months ended September 30, 2024, and $0.4 million for the nine months ended September 30, 2024[171]. - The net loss from discontinued operations for the three months ended September 30, 2024, was primarily related to foreign exchange differences in Lumo Sweden[236]. Shareholder Activities - Dividends paid to stockholders for Class A and Class B common stock totaled $6.2 million in the nine months ended September 30, 2024, compared to $3.9 million in the same period of 2023, reflecting a 59.0% increase[258]. - The company repurchased 492,032 shares of Class B common stock for an aggregate amount of $0.0 million in the nine months ended September 30, 2024, with 4.2 million shares remaining available for repurchase[261]. - The company redeemed 748,064 shares of Preferred Stock for an aggregate amount of $6.5 million on June 16, 2023, with no shares of Preferred Stock outstanding thereafter[264]. Risk Management - The company has adopted a hedging policy to mitigate the volatility of electricity and natural gas prices, primarily through put and call options and swaps[270]. - Losses from derivative instruments amounted to $6.2 million and $20.1 million in the three and nine months ended September 30, 2024, respectively, compared to losses of $4.5 million and $21.6 million in the same periods of 2023[270].

Core Viewpoint - Genie Energy Ltd. (GNE) is facing a mixed landscape in its third-quarter 2024 earnings, with challenges in the energy sector but advancements in its renewables segment, positioning the company for growth in retail and utility-scale markets [1] Q3 Results - Earnings per share for Q3 2024 were 38 cents, a decrease of 28.3% from 53 cents in the prior-year quarter [2] - Total quarterly revenues were $111.9 million, down 10.5% from $125 million in the year-ago quarter, impacted by reduced electricity consumption and increased customer acquisition costs [2] Segmental Performances - Genie Retail Energy (GRE) saw a 12.1% year-over-year revenue decrease to $105.8 million from $120.3 million, attributed to lower electricity consumption and higher customer acquisition costs [3] - Operating income in GRE dropped 31.6% to $15 million from $22 million in the prior-year quarter, with adjusted EBITDA falling 30.7% to $15.5 million from $22.3 million [4] Genie Renewables (GREW) - The renewables segment experienced revenue growth of 29.2% to $6.1 million from $4.7 million, driven by Diversegy's nearly doubled revenues and a shift towards utility-scale solar projects [5] - Operating loss in GREW narrowed from $2.1 million to $0.2 million, reflecting improved cost management [6] Profitability Metrics - Gross profit for the quarter was $37.9 million, down 7.7% from $41.1 million, but gross margin improved to 33.9% from 32.9% due to better margins in the renewables segment [7] - Operating income fell 34.7% to $11.7 million from $17.9 million, with adjusted EBITDA decreasing 26.7% to $13.6 million from $18.5 million [8] Cost Analysis - Cost of revenues decreased to $74 million from $84 million, aligning with reduced electricity consumption [9] - Selling, general and administrative (SG&A) costs rose to $25.2 million from $23.2 million, reflecting increased customer acquisition costs [9] Cash & Debt - Cash and cash equivalents totaled $191.7 million as of September 30, 2024, up from $178.3 million as of June 30, 2024 [11] - Total liabilities were $141.4 million, with cash provided by operating activities reaching $22.9 million, an 18.4% decline from $28 million in Q3 2023 [12] Management Guidance - The company reaffirmed its 2024 adjusted EBITDA guidance of $40-$50 million, expecting to align with the higher end of this range due to robust operational results [13] Other Developments - Genie repurchased approximately 123,000 shares of Class B Common stock for $2 million and maintained a quarterly dividend of 7.5 cents per share [14] - GRE's customer acquisition increased the meter count by 36,000, although higher acquisition costs and decreased electricity use impacted revenues and profitability [15]

Financial Data and Key Metrics Changes - The company generated $12 million in income from operations and $14 million in adjusted EBITDA for Q3 2024, with a total of $37 million in adjusted EBITDA for the first nine months of 2024, on track to meet the high end of annual guidance of $40 million to $50 million [5][15] - Consolidated revenue decreased by 10.5% to $111.9 million, driven by a 12.1% decline in GRE revenue to $105.8 million due to lower kilowatt hours sold [17] - Consolidated gross profit was $37.9 million, with a gross margin of 33.9%, reflecting a 100 basis point improvement year-over-year [20] Business Line Data and Key Metrics Changes - GRE added approximately 36,000 net new meters during the quarter, growing to 399,000 meters served, a 3.5% increase year-over-year [6][7] - GREW's revenue increased by 29.2% to $6.1 million, driven by Diversegy's growth and contributions from operational solar projects [19] - GRE's income from operations decreased by 31.6% to $15 million, while GREW narrowed its loss from operations to $243,000 [22] Market Data and Key Metrics Changes - The company serves electricity and/or natural gas to customers in 19 states plus Washington, D.C., with new market entry in California expected to enhance growth [8] - The competitive environment in Texas has improved post-Winter Storm Uri, providing opportunities for growth in the retail market [8] Company Strategy and Development Direction - The company is strategically repositioning GREW for stronger growth by focusing on utility-scale solar projects and building Diversegy, its energy procurement advisory business [10] - The company aims to achieve consistent top and bottom line growth through its strategic focus on utility-scale projects and operational efficiency [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in closing 2024 with good momentum and accelerating performance in 2025, driven by the team's dedication [14] - The company anticipates that positive trends in the competitive environment will support organic meter growth in the coming months [8] Other Important Information - The company repurchased approximately 123,000 shares for $2 million in Q3 2024, returning $18.5 million in total value to shareholders year-to-date [13][25] - A non-cash expense of $991,000 was recorded due to a loss reserved by the captive insurance subsidiary, impacting GAAP income but not adjusted EBITDA [24] Q&A Session Summary - There were no questions during the Q&A session, concluding the conference call [26]

Financial Performance - Third quarter 2024 revenue decreased 10.5% to $111.9 million from $125.0 million in Q3 2023[4] - Adjusted EBITDA decreased 26.7% to $13.6 million from $18.5 million year-over-year[4] - Genie Retail Energy's revenue decreased 12.1% to $105.8 million, with income from operations down 31.6% to $15.0 million[9] - Gross profit decreased 7.7% to $37.9 million, while gross margin increased to 33.9% from 32.9%[4] - Net income attributable to Genie common stockholders decreased 29.5% to $10.2 million, with diluted earnings per share at $0.38 compared to $0.53[4] - Total revenues for the three months ended September 30, 2024, were $111,917, a decrease of 10.5% compared to $125,049 in the same period of 2023[24] - Net income from continuing operations for the nine months ended September 30, 2024, was $28,189, down 26% from $38,005 in 2023[25] - Gross profit for the three months ended September 30, 2024, was $37,907, a decline of 7.1% from $41,082 in the same period of 2023[24] - Operating expenses increased to $25,160 for the three months ended September 30, 2024, compared to $23,196 in 2023, reflecting a rise of 8.5%[24] - The company reported a net income attributable to Genie Energy Ltd. common stockholders of $10,199 for the three months ended September 30, 2024, down from $14,459 in 2023, a decrease of 29.1%[24] - Non-GAAP net income attributable to common stockholders for Q3 2024 was $10.9 million, down from $14.5 million in Q3 2023, indicating a decrease of about 24.8%[43] - Diluted earnings per share for Q3 2024 were $0.38, compared to $0.53 in Q3 2023, representing a decline of approximately 28.3%[43] Cash and Assets - Cash and cash equivalents increased to $191.7 million at September 30, 2024, from $178.3 million at June 30, 2024[5] - Total assets increased to $341.681 million as of September 30, 2024, compared to $330.555 million at December 31, 2023, reflecting a growth of approximately 3.4%[21] - Current assets decreased slightly to $227.663 million from $229.833 million, a decline of about 0.5%[21] - Cash and cash equivalents rose to $136.295 million from $107.609 million, representing an increase of approximately 26.7%[21] - Total liabilities decreased to $141.395 million from $146.047 million, a reduction of about 3.6%[22] - Retained earnings increased significantly to $81.959 million from $60.196 million, marking a growth of approximately 36.2%[23] - Trade accounts receivable decreased to $50.335 million from $61.909 million, a decline of about 18.7%[21] - Accrued expenses decreased to $44.211 million from $49.389 million, a reduction of approximately 10.4%[22] - The company reported a decrease in inventory from $14.598 million to $8.513 million, a decline of about 41.8%[21] - The company has no current notes payable as of September 30, 2024, compared to previous liabilities[22] Strategic Developments - The company is entering the California gas market to diversify its geographic footprint[2] - Genie Solar expanded its development pipeline, gaining site control for six additional projects[3] Shareholder Actions - Genie repurchased approximately 123,000 shares of its Class B Common stock for $2.0 million during Q3 2024[5] - Dividends declared per common share remained steady at $0.075 for both the three months ended September 30, 2024, and 2023[24] Operational Insights - Adjusted EBITDA is disclosed as a non-GAAP financial measure, providing insights into the company's core operational strengths[26] - The company continues to exclude non-cash charges from Adjusted EBITDA to provide clearer insights into operational performance[39] - Management emphasizes the importance of non-GAAP measures for better comparability with competitors and historical performance[33] Miscellaneous - Captive insurance liability was $1.0 million in Q3 2024, compared to $0.0 million in Q3 2023, indicating a new expense category[43] - Stock-based compensation for Q3 2024 was $0.6 million, down from $0.8 million in Q2 2023, showing a reduction of 25%[40] - Impairment charges for Q3 2024 were $0.1 million, consistent with the previous quarter, indicating stable asset performance[40] - Income from operations for Q3 2024 was reported at $17.9 million, an increase from $15.0 million in Q2 2023[40] - The weighted average number of shares used in the calculation of diluted earnings per share decreased from 27.4 million in Q3 2023 to 26.9 million in Q3 2024[43] - The weighted-average number of diluted shares used in the calculation of earnings per share was 26,868 for the three months ended September 30, 2024, compared to 27,362 in 2023[24] - The company experienced a net increase in cash, cash equivalents, and restricted cash of $27,618 for the nine months ended September 30, 2024, compared to $41,397 in 2023[25] - Adjusted EBITDA for Q3 2024 was $18.5 million, compared to $15.8 million in Q2 2023, reflecting a growth of approximately 17.1%[40]

Newark, NJ, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Genie Energy, Ltd. (NYSE: GNE), a leading retail energy and renewable energy solutions provider, today announced results for the third quarter of 2024.  Michael Stein, chief executive officer of Genie Energy, commented:  "Our third quarter featured strong operational and financial results consistent with our performance in recent quarters. We are on track to deliver the high end of our full year Adjusted EBITDA guidance of $40 to $50 million.  "At GRE, our retai ...

Genie Energy Ltd. (GNE) reported a mixed performance for the second quarter of 2024, reflecting both challenges and strengths within its core operations. While the retail energy segment struggled with declining revenues and margins, the renewables segment showed promising growth and improved profitability. The company reported year-over-year declines in earnings per share and total revenues, reflecting the impacts of reduced electricity meter counts and the normalization of electricity sales margins. Howeve ...

Newark, NJ, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Genie Energy, Ltd. (NYSE: GNE), a leading retail energy and renewable energy solutions provider, today announced results for the second quarter of 2024. Michael Stein, chief executive officer of Genie Energy, commented: "Our solid second quarter results reflect the investments in meter and RCE growth we made in the first half of last year, combined with a stable, normalized retail energy environment. We also delivered a solid performance at Genie Renewables, whe ...

Genie Energy will issue an earnings release over a wire service and post it in the "Investors" section of the Genie Energy website (https://genie.com/investors/quarterly-earnings/) at 7:30 AM Eastern. The release also will be filed in a current report (Form 8-K) with the SEC. To participate in the conference call, dial 1-877-545-0523 (toll-free from the US) or 1-973-528-0016 (international) and provide the following participant access code: 312566. In this press release, all statements that are not purely a ...