Stabilis Solutions (SLNG) Q1 2025 Earnings Call May 08, 2025 09:00 AM ET Company Participants Andy Puhala - SVP, CFO & SecretaryCasey Crenshaw - Executive Chairman, Interim President & CEOMarty W. Malloy - Director of Research Conference Call Participants Tate Sullivan - Senior Research Analyst Operator Welcome to the Stabilis Solutions First Quarter twenty twenty five Earnings Conference Call. At this time, all participants have been placed in a listen only mode and the floor will be opened for your questi ...

Stabilis Solutions (SLNG) Q1 2025 Earnings Call May 08, 2025 09:00 AM ET Speaker0 Welcome to the Stabilis Solutions First Quarter twenty twenty five Earnings Conference Call. At this time, all participants have been placed in a listen only mode and the floor will be opened for your questions following the presentation. It is now my pleasure to turn today's call over to Andy Chief Financial Officer. Sir, you may begin. Speaker1 Good morning, and welcome to Stabilis Solutions first quarter twenty twenty five ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the transition period from to Commission file number. 001-40364 STABILIS SOLUTIONS, INC. (Exact name of registrant as specified in its charter) Florida 59-3410234 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 11750 Katy Freeway, Suite 900, Houston, TX 77079 (Address of principal executive offices, including zip code) (832) 456-6500 (Registrant's teleph ...

Exhibit 99.1 STABILIS SOLUTIONS ANNOUNCES FIRST QUARTER 2025 RESULTS Houston, May 7, 2025 — Stabilis Solutions, Inc., ("Stabilis" or the "Company") (Nasdaq: SLNG), a leading provider of clean fueling, production, storage, and last mile delivery solutions for many of the world's most recognized, high-performance brands, today announced financial results for the first quarter ended March 31, 2025. FIRST QUARTER 2025 HIGHLIGHTS MANAGEMENT COMMENTARY "During the first quarter, our team continued to make progres ...

Financial Data and Key Metrics Changes - Revenue during Q4 2024 decreased by 4% compared to Q4 2023, primarily due to lower oil and gas customer activity, partially offset by a 35% increase in aerospace revenues, a 23% increase in power generation revenues, and over 500% growth in marine bunkering revenues [18][19] - Q4 net income was $2.1 million or $0.11 per diluted share, compared to $1.4 million or $0.08 per diluted share in Q4 2023 [19] - Full year revenues were $73.3 million, an increase of 0.2% compared to 2023, with adjusted EBITDA rising to $11.8 million from $6.8 million in 2023 [20][21] Business Line Data and Key Metrics Changes - Approximately 49% of Q4 revenues were derived from aerospace and marine customers, compared to 14% in Q4 2023 [19] - The company generated over 8 million additional gallons delivered to customers in 2024, despite lower natural gas commodity prices impacting revenue [20] Market Data and Key Metrics Changes - The company focused on high-potential markets including marine, aerospace, and distributed power solutions, with significant capital expenditures directed towards growth investments in these areas [15][22] Company Strategy and Development Direction - The company is committed to operational efficiency and disciplined capital management while prioritizing growth in select markets [14][15] - Investments in infrastructure along the U.S. Gulf Coast are aimed at scaling to serve both new and existing customers [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's capabilities and relationships to scale the business, despite acknowledging that growth may not be linear [14] - The company is working on multiple paths to deploy new liquefaction capacities and is focused on securing contracts in marine, aerospace, and distributed power markets [28][29] Other Important Information - The company had total cash and equivalents of $9 million and $4.3 million of availability under credit facilities as of December 31, 2024 [23] - Total debt outstanding was $9.3 million, resulting in a net debt to trailing twelve-month adjusted EBITDA of just 0.03 times [23] Q&A Session Summary Question: Timetable for the relocation of liquefaction train - Management confirmed the relocation of the liquefaction train to the Gulf Coast and is working on financing and customer contracts for deployment in marine and aerospace markets [26][28] Question: G&A line decrease in Q4 - Management noted that the decrease was due to adjustments in bonus accruals and lower professional services, with expectations for a similar run rate going forward [30][33] Question: Change in drilling gallons for 2024 - Management attributed the decrease to operational efficiency, timing of contracts, and a slower uptake in aerospace and oil and gas markets [35][37] Question: Costs and timing for the new train - Estimated costs to finish construction on the new train range from $20 million to $25 million, with a completion timeline of 9 to 12 months depending on location [48][50] Question: Marine bunkering business and customer base - Management highlighted the growth potential in the marine bunkering space, with various types of ships adopting LNG and the company working to be a primary supplier [51][55] Question: Data centers and distributed power - Management clarified that data centers fall under the distributed power category, which is a key growth area for the company, and they are actively working on projects in this space [62][66]

Exhibit 99.1 STABILIS SOLUTIONS ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 RESULTS "Operating cash flow more than doubled on a year-over-year basis in 2024, driven by improved utilization of our Texas LNG liquefaction facility, and revenue growth within our aerospace and marine markets," stated Andy Puhala, Chief Financial Officer. "At year-end, we had $13.3 million in cash and availability under our credit agreements and remain well capitalized to support the business entering 2025 and we are actively eng ...

Revenue Performance - Total revenues for the year ended December 31, 2024, increased by $0.2 million, or 0.2%, compared to the prior year, totaling $73.293 million[187]. - LNG Product revenue decreased by $1.166 million, or 2.0%, to $57.351 million, despite an increase of 8.165 million gallons delivered[187]. - Rental revenue increased by $1.063 million, or 17.1%, to $7.273 million, and service revenue increased by $0.550 million, or 8.0%, to $7.436 million[187]. - Total revenues for 2024 increased to $73,293,000, a slight increase of 0.25% compared to $73,114,000 in 2023[267]. - The United States accounted for $69,007,000 of total revenues in 2024, an increase of 5.8% from $65,487,000 in 2023[319]. - Customer 1 contributed $24,599,000, representing 33.6% of total revenues in 2024, a significant increase from only 0.5% in 2023[323]. Operating Expenses and Income - Operating expenses decreased by $4.019 million, or 5.4%, totaling $69.907 million, with costs of revenues decreasing by $2.850 million, or 5.2%[187]. - Net income for the year was $4.599 million, a significant increase of 3579.2% compared to $125 thousand in the prior year[187]. - Operating expenses decreased to $69,907,000 in 2024, down 5.5% from $73,926,000 in 2023[267]. - Net income for 2024 was $4,599,000, a significant increase from $125,000 in 2023, representing a growth of 3,678%[268]. Cash Flow and Liquidity - Net cash provided by operating activities increased to $13.7 million in 2024 from $6.7 million in 2023, a rise of approximately 104%[207]. - Cash used in investing activities decreased to $8.1 million in 2024 from $8.9 million in 2023, reflecting a reduction of about 9%[209]. - Total cash and cash equivalents at the end of 2024 were $8.9 million, up from $5.4 million at the beginning of the year, marking a net increase of $3.6 million[206]. - The company maintains a revolving credit facility with a maximum amount of $10 million, expiring in June 2026, to support liquidity needs[179]. - The company had $9.3 million in outstanding debt as of December 31, 2024, with $2.4 million due in 2025[204]. - The company has total availability under the Revolving Credit Facility and the AmeriState Secured Term Loan Facility of $4.3 million as of December 31, 2024[204]. Investments and Assets - The company acquired liquefaction assets for $6.0 million, including a 100,000 LNG gallon per day liquefaction train[180]. - Total assets increased to $85,584,000 in 2024, up 5.3% from $81,299,000 in 2023[265]. - Stockholders' equity improved to $67,008,000 in 2024, a rise of 8.5% from $61,812,000 in 2023[265]. - The company’s investment in foreign joint ventures was $11,659,000 in 2024, down from $12,009,000 in 2023, reflecting a decrease of 2.9%[265]. Revenue Recognition and Accounting Policies - LNG Product revenues are recognized upon delivery to the customer, with contracts typically lasting from 1 to 24 months[229]. - Rental revenues are generated from cryogenic equipment rentals, recognized upon completion of the rental period, based on day or monthly rates[230]. - Service revenues come from engineering and field support services, recognized as events are completed or work is done, independent of LNG delivery[231]. - The Company recognizes revenue from contracts with customers disaggregated into LNG Product, rental, service, and other categories[228]. - Revenue from the sale of LNG is recognized when the customer obtains control of the asset, primarily considering legal title transfer and physical delivery[297]. Debt and Interest Obligations - The company expects total interest payment obligations of approximately $0.5 million for the year ending December 31, 2025[215]. - Total interest expense decreased from $509,000 in 2023 to $300,000 in 2024, reflecting lower interest on secured term notes and related party loans[348]. Tax and Compliance - Income tax expense for the year ended December 31, 2024, totaled $485,000, compared to $244,000 for 2023, reflecting a significant increase[360]. - The company had no uncertain tax positions requiring recognition as of December 31, 2024, and 2023[300]. Other Financial Metrics - The company recorded bad debt expense of $0.1 million for the year ended December 31, 2024, compared to $0.0 million for 2023, indicating a slight increase in credit losses[287]. - The Company has a cumulative translation adjustment of $0.6 million recorded as Accumulated Other Comprehensive Income (Loss) due to foreign currency translation[249]. - The fair value of the Company's fixed and variable rate debt was estimated to approximate the carrying value of $8.6 million at December 31, 2024[306]. - The fair value of natural gas derivatives at the end of 2024 was $207,000, compared to none in 2023[324].

Group 1 - SLANG Worldwide Inc. has filed for bankruptcy under Canada's Bankruptcy and Insolvency Act [1][4] - The company's common shares, which are currently halted, will be delisted from the CSE at market close on December 2, 2024 [2][4] - Further information can be found in the issuer's news release [3][5]

Financial Data and Key Metrics Changes - Third quarter net income was $1 million or $0.05 per diluted share on revenues of $17.6 million, representing a 15.1% increase compared to the prior year period driven by strong LNG demand and improved utilization of liquefaction facilities [28][29] - Adjusted EBITDA reached a record $2.6 million, increasing by $2.1 million year-over-year, with an adjusted EBITDA margin of 14.6%, up from 3.5% in the same quarter last year [29] - The company ended the third quarter with $15.6 million in available cash and liquidity, compared to $8.6 million in the previous year [9][30] Business Line Data and Key Metrics Changes - The revenue mix shifted significantly, with 68% of third quarter revenue coming from long-term contractual agreements, up from 43% in the previous year [8] - Revenues from marine and aerospace growth markets increased threefold year-over-year, now comprising approximately 40% of total revenues compared to 11% in the third quarter of last year [13] Market Data and Key Metrics Changes - The company is experiencing strong structural tailwinds in the commercial and industrial markets, with an anticipated increase in US power consumption by at least 55 gigawatts by 2030, of which data centers are expected to consume around 40% [20][22] - The company is positioned to address the growing demand for cleaner fuel sources in various markets, including marine vessels and data centers [10][12] Company Strategy and Development Direction - The company aims to stabilize and optimize its existing business while pursuing key growth initiatives to drive long-term shareholder value, focusing on cleaner fuel alternatives [7][10] - The strategic focus includes expanding into marine bunkering, data centers, and aerospace markets, leveraging existing capabilities to capture market share [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in marine and aerospace markets, noting the early stages of demand increase and the company's competitive advantages in these sectors [12][62] - The company is actively evaluating opportunities to expand its infrastructure and capabilities to meet the growing demand for LNG in various applications [18][22] Other Important Information - The company has invested $3.6 million in capital expenditures year-to-date, with expectations for total CapEx to be between $8 million and $10 million for the full year [31][32] - The company is exploring various sources of capital to support its growth initiatives, emphasizing partnerships with those familiar with the industry [32] Q&A Session Summary Question: Milestones for Gulf Coast marine bunkering operation - Management highlighted the importance of commercial activity and financing in determining milestones, with a potential timeline of 18 to 24 months from the decision to proceed to operational rollout [34][40] Question: Data center opportunity and offtake agreements - Management noted a significant increase in discussions with data centers, indicating potential for long-term contracts to bridge gaps in power supply and the possibility of expanding liquefaction capacity [41][46] Question: Production capacity and annual capacity - Management did not disclose gallons sold for competitive reasons but indicated a utilization rate close to 90% at George West and about 25,000 gallons a day for Port Allen, with an annual capacity of approximately 45 million gallons from their own production [53][54] Question: Sweet spot for data center solutions - Management acknowledged that many data centers are not on natural gas pipelines, creating opportunities for LNG solutions, especially for backup and peaking power generation [55][58] Question: Aerospace market development - Management confirmed that the aerospace market is developing as expected, with opportunities for long-term contracts emerging, and they are positioned as a market leader in supplying LNG for rocket launches [61][62]

Revenue Performance - Total revenues for the three months ended September 30, 2024, increased by $2.3 million, or 15%, to $17.6 million compared to $15.3 million in the prior year quarter[91]. - LNG Product revenue rose by $2.1 million, or 17.6%, driven by an increase in gallons delivered and customer pricing mix[91]. - Total revenues for the nine months ended September 30, 2024, increased by $0.9 million, or 2%, to $55.995 million compared to $55.065 million in the prior year[104]. - LNG product revenues decreased by $300 thousand, or 0.7%, to $44.295 million, while rental and service revenues increased by 17.9% and 11.7%, respectively[103]. Operating Expenses - Operating expenses increased by $1.6 million, or 9.9%, with cost of revenues accounting for $12.6 million, representing 72% of total revenue[91][93]. - Operating expenses decreased by $2.771 million, or 4.9%, to $54.246 million, primarily due to a $3.209 million decrease in the cost of revenues[103]. - Selling, general, and administrative expenses increased by $33,000, primarily due to higher compensation costs[97]. Net Income - Net income for the current quarter was $997,000, compared to a net loss of $207,000 in the prior year quarter, marking a significant turnaround[91]. - Net income for the nine months ended September 30, 2024, was $2.493 million, compared to a net loss of $1.297 million in the prior year[103]. Cash Flow and Capital Expenditures - Cash provided by operating activities totaled $11.522 million, an increase of $6.142 million compared to $5.380 million in the prior year[118]. - Capital expenditures for the nine months ended September 30, 2024, were $3.6 million, primarily for liquefaction assets and upgrades[122]. - Future capital expenditures will depend on business needs and availability of capital, with approximately $6 million in open purchase orders related to capital expenditures[122]. Financial Position - The company has $12.4 million in cash and cash equivalents and $9.8 million in outstanding debt as of September 30, 2024[116]. - The company has a three-year Revolving Credit Facility with a maximum amount of $10 million, with no amounts drawn as of September 30, 2024[115]. - The company filed a Shelf Registration Statement allowing it to issue up to $100 million in securities to raise capital for various needs[123]. - As of September 30, 2024, there were no off-balance sheet arrangements that could materially affect the company's financial position or results[125]. Joint Ventures and Other Income - Net equity income from foreign joint ventures increased by $232,000, or 81.7%, reflecting improved profitability in joint ventures[91][99]. - Interest income increased by 35% to $81,000, reflecting stable cash balances during the periods[91][99]. - The company recorded a loss of $13,000 from changes in unrealized gains/losses on natural gas derivatives, compared to a gain of $267,000 in the prior year quarter[96]. Regulatory Approvals and Operations - The company received DOE approval to export LNG to all free trade and non-free trade countries for up to 51.75 billion cubic feet per year, valid for 28 years[87]. - The company operates liquefiers with a total production capacity of 130,000 LNG gallons per day across Texas and Louisiana[83]. Accounting Policies - The financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that impact reported assets, liabilities, revenues, and expenses[126]. - There have been no significant changes in the company's critical accounting policies and estimates during the three and nine months ended September 30, 2024, compared to the previous annual report[126].