Stabilis Solutions(SLNG)

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Stabilis Solutions Announces Award of Long-Term Marine Bunkering Agreement To Anchor Its Gulf Coast Expansion
Accessnewswire· 2025-10-09 12:00
HOUSTON, TEXAS / ACCESS Newswire / October 9, 2025 / Stabilis Solutions, Inc., ("Stabilis" or the "Company") (Nasdaq:SLNG), a leading provider of clean energy production, storage, and delivery solutions, today announced that it has entered into a 10-year agreement with a leading investment-grade global marine operator to supply Liquefied Natural Gas ("LNG") for their marine bunkering operations at the Port of Galveston. The long-term agreement marks the Company's first marine bunkering contract for liquefac ...
Stabilis Solutions(SLNG) - 2025 Q2 - Earnings Call Transcript
2025-08-07 14:00
Financial Data and Key Metrics Changes - Revenue during the second quarter decreased by 7% compared to 2024, primarily due to the completion of a large contract with an industrial customer last year [10][11] - Adjusted EBITDA was $1,500,000, down from $2,100,000 in the same quarter last year, with an adjusted EBITDA margin of 8.6%, down from 11.3% [11] - Cash generated from operations was $4,500,000, resulting in a record liquidity position of $16,100,000 at quarter end, consisting of $12,200,000 in cash and approximately $4,000,000 available under credit facilities [12] Business Line Data and Key Metrics Changes - Revenue in the marine, aerospace, and power generation sectors increased by a combined 15% year over year, driven by an 83% increase in aerospace revenues [6][11] - Aerospace revenues more than doubled in the first half of the year compared to the same period in 2024 [7] - Power generation market revenues increased by 10% during the quarter [11] Market Data and Key Metrics Changes - The company is seeing increased interest in LNG as a bridge and backup fueling solution to meet rising electric demand from data centers and other energy-intensive infrastructure [7] - The projected long-term growth in electricity demand is creating a broad range of use cases for LNG solutions [8] Company Strategy and Development Direction - The strategic vision is to build Stabilis into the leading provider of last mile LNG solutions, focusing on becoming the partner of choice for key end markets [8] - The company is actively working on securing long-term customer commitments to support capacity expansion [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in marine, aerospace, and power generation sectors, with ongoing commercial discussions progressing well [6][8] - The company is focused on finalizing new contract awards and expects to update investors in the coming months [10] Other Important Information - The company ended the quarter with a net cash position and no net debt, providing strong balance sheet flexibility for strategic capital deployment [12] - Capital expenditures during the quarter were $600,000, with expectations for acceleration in capital commitments as new customer agreements are finalized [12] Q&A Session Summary Question: Inquiry about contractual agreements and potential project financing - Management confirmed that they are working on multiple contracts across marine, aerospace, and power generation sectors, with varying durations from six months to multiple years [14][15] - The contracts are expected to support capital expenditures and project financing for new liquefaction capacity [15] Question: Timing of additional liquefaction capacity - Management indicated that the quickest new capacity could be deployed at the George West facility, with ongoing work on the Gulf Coast liquefier [19][20] Question: Key variables for finalizing marine sector contracts - Management clarified that long-term contracts are essential to underpin project financing for new facilities, which will produce LNG needed for those contracts [22][23] Question: Types of customers in marine contracts - Management stated that discussions are ongoing with multiple end markets in the marine space, primarily focusing on the cruise sector [24] Question: Company’s market positioning and outreach - Management expressed eagerness to communicate the company's growth story and emphasized the importance of securing contracts to generate excitement in the marketplace [32][33]
Stabilis (SLNG) Q2 Revenue Falls 7%
The Motley Fool· 2025-08-07 04:30
Core Insights - Stabilis Solutions reported Q2 2025 results with both revenue and net income falling short of expectations, posting a GAAP EPS of ($0.03) against a consensus of $0.01 and revenue of $17.3 million, missing the estimate of $17.84 million by approximately 3.0% [1][2] Financial Performance - Revenue for Q2 2025 was $17.3 million, a decrease of 7.0% from $18.6 million in Q2 2024 [2] - Adjusted EBITDA declined to $1.5 million from $2.1 million, representing a 28.6% decrease [2][7] - Cash flow from operations was $4.5 million, down 10.4% from $5.0 million in the previous year [2] Business Overview and Strategy - Stabilis Solutions focuses on LNG production, storage, transportation, and fueling services primarily in North America, targeting industries such as marine shipping, aerospace, and distributed power generation [3] - The company aims to grow in high-growth markets like marine bunkering, leveraging LNG as a cleaner alternative to conventional fuels [4] Market Dynamics - The revenue mix shifted significantly, with marine, aerospace, and power generation accounting for nearly 77% of total revenue, up from 62% in Q2 2024 [5] - The company signed a two-year bunkering contract for approximately 22 million gallons per year, indicating potential future revenue growth in marine [6] Profitability Challenges - Despite increased commercial activity, profitability metrics declined, with net income turning negative at a loss of $0.6 million compared to a profit in the prior-year quarter [7] - The decline in profitability was attributed to the absence of large-scale projects and a reduction in selling, general, and administrative expenses [7] Financial Health - The balance sheet remained solid with cash and equivalents at $12.2 million and an additional $3.9 million in available credit facilities as of June 30, 2025 [8] - Capital expenditures for the first half of 2025 were $1.2 million, focused on growth projects and operational upgrades [8] Future Outlook - Management did not provide specific quantitative guidance for the remainder of the year but expressed confidence in long-term growth opportunities in marine, aerospace, and power generation sectors [10] - The company emphasized the importance of converting potential deals into signed contracts as a key uncertainty affecting future results [10]
Stabilis Solutions(SLNG) - 2025 Q2 - Quarterly Report
2025-08-06 21:30
[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) This section presents the unaudited condensed consolidated financial statements and related disclosures for Stabilis Solutions, Inc. and its subsidiaries [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Stabilis Solutions, Inc. and its subsidiaries, including the balance sheets, statements of operations, comprehensive income (loss), stockholders' equity, and cash flows, along with detailed notes providing context on business operations, accounting policies, and specific financial line items [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :------------------ | | Total Assets | $83,244 | $85,584 | | Total Liabilities | $17,762 | $18,576 | | Total Stockholders' Equity | $65,482 | $67,008 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance over specific periods, presenting revenues, expenses, and net income or loss Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $17,309 | $18,598 | $34,647 | $38,368 | | Net Income (Loss) | $(613) | $27 | $(2,211) | $1,496 | | Basic and Diluted EPS | $(0.03) | $0.00 | $(0.12) | $0.08 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section details the company's total comprehensive income or loss, including net income and other comprehensive income items Condensed Consolidated Statements of Comprehensive Income (Loss) Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income (Loss) | $(613) | $27 | $(2,211) | $1,496 | | Foreign currency translation adjustment, net of tax | $184 | $52 | $255 | $(414) | | Total Comprehensive Income (Loss) | $(429) | $79 | $(1,956) | $1,082 | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section tracks changes in the company's equity over time, reflecting net income, dividends, and other equity transactions Condensed Consolidated Statements of Stockholders' Equity Highlights (in thousands) | Metric | December 31, 2024 | June 30, 2025 | | :-------------------------- | :---------------- | :-------------- | | Total Stockholders' Equity | $67,008 | $65,482 | | Accumulated Deficit | $(35,647) | $(37,858) | | Net Loss (Six Months Ended June 30, 2025) | N/A | $(2,211) | | Stock-based compensation (Six Months Ended June 30, 2025) | N/A | $447 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities over a period Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $5,540 | $8,967 | | Net cash used in investing activities | $(911) | $(1,970) | | Net cash used in financing activities | $(1,410) | $(884) | | Net increase in cash and cash equivalents | $3,233 | $6,109 | | Cash and cash equivalents, end of period | $12,220 | $11,483 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements - The Company operates as an energy transition company providing turnkey clean energy solutions using liquefied natural gas (LNG) to multiple end markets[23](index=23&type=chunk) - The Company holds a **40% interest** in BOMAY Electric Industries, Inc., a Chinese joint venture, which builds power and control systems for the energy industry in China and is accounted for under the equity method[25](index=25&type=chunk) - Management makes estimates and assumptions in preparing the financial statements, including the fair value of equity-based awards, natural gas derivatives, and carrying amount of contingencies[28](index=28&type=chunk) [Note 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION](index=10&type=section&id=Note%201.%20DESCRIPTION%20OF%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) This note describes the company's core business, its operational structure, and the accounting principles underlying the financial statements - Stabilis Solutions, Inc. is an energy transition company providing turnkey clean energy production, storage, transportation, and fueling solutions using LNG to diverse end markets[23](index=23&type=chunk)[24](index=24&type=chunk) - The Company's **40% owned** Chinese joint venture, BOMAY Electric Industries, Inc., builds power and control systems for the energy industry in China[25](index=25&type=chunk) - The Company has determined it has a single operating and reporting segment, with the CEO as the Chief Operating Decision Maker[29](index=29&type=chunk) - The Company does not expect the adoption of ASU 2024-03 (effective January 1, 2027) and ASU 2023-09 (effective January 1, 2025) to have a significant impact on its consolidated financial statements[32](index=32&type=chunk)[33](index=33&type=chunk) [Note 2. REVENUE RECOGNITION](index=12&type=section&id=Note%202.%20REVENUE%20RECOGNITION) This note details the company's policies for recognizing revenue from various sources, including LNG product sales, rentals, and services - Revenues are recognized when promised goods or services are delivered and are disaggregated into LNG Product, rental, service, and other categories[35](index=35&type=chunk) Revenue Disaggregated by Source (in thousands) | Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | LNG Product | $14,628 | $14,626 | $28,574 | $30,039 | | Rental | $1,296 | $1,682 | $2,846 | $3,855 | | Service | $1,169 | $1,693 | $2,874 | $3,617 | | Other | $216 | $597 | $353 | $857 | | **Total Revenues** | **$17,309** | **$18,598** | **$34,647** | **$38,368** | Revenue Disaggregated by Geographic Location (in thousands) | Location | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------- | :----------------------------- | :----------------------------- | | United States | $32,958 | $35,880 | | Mexico | $1,689 | $2,488 | | **Total Revenues** | **$34,647** | **$38,368** | [Note 3. PREPAID EXPENSES AND OTHER CURRENT ASSETS](index=14&type=section&id=Note%203.%20PREPAID%20EXPENSES%20AND%20OTHER%20CURRENT%20ASSETS) This note provides a breakdown of the company's prepaid expenses and other current assets, including insurance, supplier expenses, and other receivables Prepaid Expenses and Other Current Assets (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :------------------ | | Prepaid insurance | $294 | $1,044 | | Prepaid supplier expenses | $289 | $167 | | Other receivables | $217 | $204 | | Natural gas derivatives at fair value, current | $0 | $207 | | Deposits | $99 | $129 | | Other | $140 | $151 | | **Total prepaid expenses and other current assets** | **$1,039** | **$1,902** | [Note 4. PROPERTY, PLANT AND EQUIPMENT](index=14&type=section&id=Note%204.%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) This note details the company's property, plant, and equipment, including cost, accumulated depreciation, and depreciation expense Property, Plant and Equipment (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :------------------ | | Cost | $118,596 | $117,246 | | Less: accumulated depreciation | $(69,048) | $(65,518) | | **Property, plant and equipment, net** | **$49,548** | **$51,728** | - Depreciation expense totaled **$3.7 million** for the six months ended June 30, 2025, an increase from **$3.6 million** in the prior year period[46](index=46&type=chunk) [Note 5. INVESTMENT IN FOREIGN JOINT VENTURE](index=15&type=section&id=Note%205.%20INVESTMENT%20IN%20FOREIGN%20JOINT%20VENTURE) This note describes the company's equity investment in BOMAY Electric Industries, Inc., including its operational results and investment activity - The Company holds a **40% interest** in BOMAY Electric Industries, Inc., accounted for using the equity method[47](index=47&type=chunk)[48](index=48&type=chunk) BOMAY's Operational Results (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $29,488 | $22,062 | $51,198 | $39,301 | | Net income | $219 | $770 | $1,180 | $1,307 | Investment in BOMAY Activity (Six Months Ended June 30, 2025, in thousands) | Item | Amount | | :-------------------------------- | :----- | | Balance at December 31, 2024 | $11,659 | | Income from Equity Investment | $537 | | Less: dividend distributions | $(1,637) | | Foreign currency translation gain (loss) | $201 | | **Balance at June 30, 2025** | **$10,760** | - The Company does not believe an impairment of its investment in BOMAY is necessary for the period ending June 30, 2025[50](index=50&type=chunk) [Note 6. ACCRUED LIABILITIES](index=17&type=section&id=Note%206.%20ACCRUED%20LIABILITIES) This note provides a breakdown of the company's accrued liabilities, including compensation, taxes, and other accrued expenses Accrued Liabilities (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :------------------ | | Compensation and benefits | $2,902 | $2,408 | | Other taxes payable | $286 | $268 | | Other accrued liabilities | $268 | $890 | | **Total accrued liabilities** | **$3,456** | **$3,566** | - The Company recorded **$1.7 million** in separation-related expenses for the former President and CEO, Mr. Ballard, in the first quarter of 2025, with **$1.0 million** remaining unpaid as of June 30, 2025[52](index=52&type=chunk) [Note 7. DEBT](index=17&type=section&id=Note%207.%20DEBT) This note details the company's debt obligations, including secured term notes, other notes payable, and compliance with debt covenants Debt, Net of Debt Issuance Costs (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :------------------------------------------------- | :-------------- | :------------------ | | Secured term note, net of debt issuance costs | $7,502 | $7,975 | | Insurance and other notes payable | $129 | $883 | | **Total** | **$7,631** | **$8,858** | | Less: amounts due within one year | $(1,295) | $(2,010) | | **Total long-term debt** | **$6,336** | **$6,848** | - The **$10.0 million** Revolving Credit Facility maturity date was extended to June 9, 2028, with **$2.9 million** availability as of June 30, 2025, and no amounts drawn[55](index=55&type=chunk)[56](index=56&type=chunk) - The Company was in compliance with all its debt covenants related to the Revolving Credit Facility and the AmeriState Loan as of June 30, 2025[58](index=58&type=chunk)[61](index=61&type=chunk) [Note 8. RELATED PARTY TRANSACTIONS](index=19&type=section&id=Note%208.%20RELATED%20PARTY%20TRANSACTIONS) This note discloses transactions with related parties, including lease agreements and purchases from entities controlled by company executives - The Company entered into a lease agreement for office space from The Modern Group, controlled by the Executive Chairman, at a market rate of **$28 thousand** per month[64](index=64&type=chunk) Related Party Purchases and Lease Payments (in thousands) | Related Party | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | The Modern Group | $0.1 million | $37 | $0.1 million | $0.1 million | | Chart E&C | $13 | $0.1 million | $0.1 million | $0.3 million | [Note 9. COMMITMENTS AND CONTINGENCIES](index=20&type=section&id=Note%209.%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the company's environmental compliance, legal proceedings, and other commitments and contingencies - The Company is subject to federal, state, and local environmental laws and regulations, and believes its operations comply in all material respects[67](index=67&type=chunk) - Management believes the ultimate resolution of various legal actions, claims, and audits will not have a material adverse effect on the Company's financial position, results of operations, or liquidity[68](index=68&type=chunk) [Note 10. STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION](index=20&type=section&id=Note%2010.%20STOCKHOLDERS'%20EQUITY%20AND%20STOCK-BASED%20COMPENSATION) This note details changes in stockholders' equity and the accounting for stock-based compensation, including expense recognition and award grants Stock Compensation Expense (in thousands) | Period | 2025 | 2024 | | :------------------------------- | :--- | :--- | | Three Months Ended June 30 | $0.0 | $0.4 | | Six Months Ended June 30 | $0.4 | $0.8 | - The Company recognized **$0.4 million** in additional non-cash stock compensation expense due to accelerated vesting and amended option exercise terms for the former CEO's equity awards[73](index=73&type=chunk) - No stock-based awards were granted during the six months ended June 30, 2025[71](index=71&type=chunk) [Note 11. NET INCOME PER SHARE](index=22&type=section&id=Note%2011.%20NET%20INCOME%20PER%20SHARE) This note presents the calculation of basic and diluted net income per common share, including the impact of dilutive securities Net Income (Loss) Per Common Share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic and diluted per common share | $(0.03) | $0.00 | $(0.12) | $0.08 | - No dilutive securities were included in the calculation for the six months ended June 30, 2025, as all RSUs had vested and stock options had exercise prices exceeding the market price, making their inclusion anti-dilutive due to the net loss[75](index=75&type=chunk) [Note 12. SUPPLEMENTAL CASH FLOW INFORMATION](index=22&type=section&id=Note%2012.%20SUPPLEMENTAL%20CASH%20FLOW%20INFORMATION) This note provides additional details on cash flow activities, including interest and income taxes paid, and non-cash investing activities Supplemental Disclosure of Cash Flow Information (Six Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :------------------------------------------------- | :--- | :--- | | Interest paid | $285 | $309 | | Income taxes paid | $191 | $403 | | Acquisition of fixed assets included within accounts payable and accrued expenses | $675 | $486 | | ROU assets acquired under operating leases | $425 | $0 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of Stabilis Solutions' business as an energy transition company, detailing its LNG production, transportation, equipment rental, and engineering services. It analyzes the financial performance for the three and six months ended June 30, 2025, compared to the prior year, highlighting revenue declines, changes in operating expenses, and the company's liquidity position - Stabilis Solutions, Inc. is an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions using liquefied natural gas (LNG) to multiple end markets[80](index=80&type=chunk) - The Company generates revenue by selling and delivering LNG, renting cryogenic equipment, and providing engineering and field support services[81](index=81&type=chunk) - The Company received authorization from the DOE in Q3 2022 to export domestically produced LNG to all free trade and non-free trade countries, with initial exports to Europe by June 30, 2025[86](index=86&type=chunk) [Overview](index=23&type=section&id=Overview) This section provides a general description of Stabilis Solutions' business model, including its LNG solutions, liquefaction facilities, and equipment fleet - Stabilis Solutions provides LNG solutions to customers in diverse end markets, including aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power and utility markets[80](index=80&type=chunk) - The Company owns and operates two liquefiers in George West, Texas (**100,000 LNG gallons/day**) and Port Allen, Louisiana (**30,000 LNG gallons/day**), and also purchases LNG from third-party sources[82](index=82&type=chunk) - Stabilis operates one of the largest fleets of small-scale LNG equipment in North America, including transportation trailers, vaporizers, storage tanks, and mobile vehicle fuelers[84](index=84&type=chunk) - The Company initiated LNG exports to Europe under its DOE authorization by June 30, 2025[86](index=86&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, detailing changes in revenues, cost of revenues, and operating expenses over comparative periods Consolidated Operating Results (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :------------------------------------------ | :----- | :----- | :------- | :------- | | Total Revenues | $17,309 | $18,598 | $(1,289) | (6.9)% | | Cost of revenues | $12,724 | $13,550 | $(826) | (6.1)% | | Selling, general and administrative expenses | $3,131 | $3,331 | $(200) | (6.0)% | | Net income (loss) | $(613) | $27 | $(640) | n/a | Consolidated Operating Results (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :------------------------------------------ | :----- | :----- | :------- | :------- | | Total Revenues | $34,647 | $38,368 | $(3,721) | (9.7)% | | Cost of revenues | $25,512 | $27,064 | $(1,552) | (5.7)% | | Selling, general and administrative expenses | $8,064 | $6,787 | $1,277 | 18.8% | | Net income (loss) | $(2,211) | $1,496 | $(3,707) | n/a | - The increase in selling, general and administrative expenses for the six months ended June 30, 2025, was primarily due to **$2.1 million** in severance-related expenses for the former CEO[107](index=107&type=chunk) [Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=25&type=section&id=Three%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030,%202024) This section compares the company's financial performance for the three months ended June 30, 2025, against the same period in the prior year - Revenues decreased by **$1.3 million (7%)** due to decreased LNG gallons delivered (**$1.5 million** decrease) and lower rental, service, and other revenues (**$1.3 million** decrease), partially offset by increased revenues from higher natural gas prices (**$1.5 million** increase)[92](index=92&type=chunk) - Cost of revenues decreased by **$0.8 million (6%)**, primarily due to decreased LNG gallons delivered (**$1.0 million** decrease) and lower rental, service, and other costs (**$0.5 million** decrease), partially offset by higher natural gas pricing (**$1.5 million** increase)[92](index=92&type=chunk)[93](index=93&type=chunk) - Net equity income from foreign joint venture operations decreased by **$0.2 million (83.1%)** due to decreased net profits by the joint venture[98](index=98&type=chunk) [Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=28&type=section&id=Six%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030,%202024) This section compares the company's financial performance for the six months ended June 30, 2025, against the same period in the prior year - Revenues decreased by **$3.7 million (10%)** due to decreased LNG gallons delivered (**$3.6 million** decrease), lower rental, service, and other revenues (**$2.3 million** decrease), and unfavorable customer pricing mix/lower take-or-pay revenues (**$0.3 million** decrease), partially offset by increased revenues from higher natural gas prices (**$2.5 million** increase)[104](index=104&type=chunk) - Cost of revenues decreased by **$1.6 million (6%)**, primarily due to decreased LNG gallons delivered (**$2.4 million** decrease) and lower rental, service, and other costs (**$1.0 million** decrease), partially offset by higher natural gas pricing (**$2.5 million** increase)[104](index=104&type=chunk)[105](index=105&type=chunk) - Selling, general and administrative expenses increased by **$1.3 million (18.8%)**, with **$2.1 million** attributed to severance-related expenses for the former CEO, partially offset by lower other compensation expense[107](index=107&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its short-term and long-term financial obligations, including cash flows, debt, and capital requirements - The Company's principal sources of liquidity are cash from operations, cash on hand, and distributions from its BOMAY joint venture[113](index=113&type=chunk) - As of June 30, 2025, the Company had **$12.2 million** in cash and cash equivalents, **$8.4 million** in outstanding debt and lease obligations, and **$3.9 million** in total availability under its debt agreements[115](index=115&type=chunk) - The Revolving Credit Facility maturity date was extended to June 9, 2028, with **$2.9 million** availability at June 30, 2025, and no amounts drawn[114](index=114&type=chunk)[115](index=115&type=chunk) - Management believes current liquidity is sufficient for the next twelve months but continues to evaluate additional financing for future growth or expansion[116](index=116&type=chunk) [Cash Flows](index=31&type=section&id=Cash%20Flows) This section summarizes the cash generated from or used in operating, investing, and financing activities for comparative periods Cash Flows Summary (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | Change ($k) | | :-------------------------------- | :----- | :----- | :---------- | | Net cash provided by operating activities | $5,540 | $8,967 | $(3,427) | | Net cash used in investing activities | $(911) | $(1,970) | $1,059 | | Net cash used in financing activities | $(1,410) | $(884) | $(526) | [Future Cash Requirements](index=33&type=section&id=Future%20Cash%20Requirements) This section outlines the company's anticipated cash needs for operations, capital expenditures, debt, and potential strategic initiatives - Cash is required to fund operating expenses, working capital, capital expenditures, debt repayments, equipment maintenance, and potential mergers and acquisitions or market expansion[121](index=121&type=chunk) - Capital expenditures for the six months ended June 30, 2025, were **$1.1 million**, primarily for liquefaction assets, refurbishments, upgrades, and rolling stock[122](index=122&type=chunk) - The Company may pursue additional financing activities, such as refinancing existing debt, obtaining new debt, or debt/equity offerings, but there is no assurance of availability on acceptable terms[121](index=121&type=chunk) [Off-Balance Sheet Arrangements](index=33&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms the absence of material off-balance sheet arrangements that could significantly impact the company's financial position - As of June 30, 2025, the Company had no transactions that met the definition of off-balance sheet arrangements that would have a current or future material effect on its financial position, operating results, liquidity, cash requirements, or capital resources[123](index=123&type=chunk) [Critical Accounting Policies and Estimates](index=33&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section discusses the significant accounting policies and estimates that require management's judgment and can materially affect financial reporting - The Company's financial statements are prepared in accordance with U.S. GAAP, requiring management to make estimates and assumptions that affect reported amounts[124](index=124&type=chunk) - There have been no significant changes in the Company's critical accounting policies and estimates during the three and six months ended June 30, 2025, from those disclosed in the 2024 Annual Report on Form 10-K[124](index=124&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a 'smaller reporting company,' Stabilis Solutions, Inc. is not required to provide quantitative and qualitative disclosures about market risk in this report - The Company is exempt from providing quantitative and qualitative disclosures about market risk as it qualifies as a 'smaller reporting company'[125](index=125&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the principal executive and financial officers, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025. There have been no material changes in internal control over financial reporting during the last fiscal quarter - The principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025[126](index=126&type=chunk) - There have been no changes in internal control over financial reporting that materially affected or are reasonably likely to materially affect internal control over financial reporting during the last fiscal quarter[127](index=127&type=chunk) [Part II. Other Information](index=34&type=section&id=Part%20II.%20Other%20Information) This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in various legal proceedings and claims in the normal course of business. Management believes that the ultimate resolution of these matters will not have a material effect on the Company's financial position or results of operations - The Company may become party to various legal actions that arise in the ordinary course of its business[129](index=129&type=chunk) - Management's opinion is that the ultimate resolution of these matters will not have a material effect on the Company's financial position or results of operations[129](index=129&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the 2024 Form 10-K, except for the addition of a new risk factor concerning the potential adverse effects of changes in U.S. trade policy, including tariffs, on the Company's business and results of operations - No material changes in risk factors from the Company's Annual Report on Form 10-K for the year ended December 31, 2024, except for one addition[130](index=130&type=chunk) - A new risk factor highlights that changes in U.S. trade policy, including tariffs, may have a material adverse effect on the Company's business and results of operations by potentially reducing demand for LNG or increasing operating costs[131](index=131&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fiscal quarter ended June 30, 2025 - None of the Company's officers or directors adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fiscal quarter ended June 30, 2025[132](index=132&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including organizational documents, registration rights agreements, and certifications from the principal executive and financial officers, along with XBRL-related documents - Exhibits include Amended and Restated Articles of Incorporation and Bylaws, Registration Rights Agreements, and Description of Securities[133](index=133&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer (Rule 13a-14(a) / 15d-14(a) and Section 1350) are filed[133](index=133&type=chunk) - Interactive XBRL Instance Document and Taxonomy Extension documents are included[133](index=133&type=chunk) [Signatures](index=36&type=section&id=Signatures) The report is officially signed by J. Casey Crenshaw, Interim President, Chief Executive Officer and Director, and Andrew L. Puhala, Chief Financial Officer, on behalf of Stabilis Solutions, Inc. on August 6, 2025 - The report was signed by J. Casey Crenshaw, Interim President, Chief Executive Officer and Director (Principal Executive Officer)[136](index=136&type=chunk) - The report was signed by Andrew L. Puhala, Chief Financial Officer (Principal Financial Officer)[136](index=136&type=chunk) - The signing date for the report was August 6, 2025[136](index=136&type=chunk)
Stabilis Solutions(SLNG) - 2025 Q2 - Quarterly Results
2025-08-06 21:23
[Company Overview](index=1&type=section&id=Company%20Overview) Stabilis Solutions, Inc. announced its Q2 2025 financial results, highlighting its position as a leading provider of clean fueling and delivery solutions [Q2 2025 Results Announcement](index=1&type=section&id=Q2%202025%20Results%20Announcement) Stabilis Solutions, Inc. announced its financial results for the second quarter ended June 30, 2025, positioning itself as a leading provider of clean fueling and delivery solutions - Company: **Stabilis Solutions, Inc. (Nasdaq: SLNG)**[1](index=1&type=chunk) - Announcement Date: **August 6, 2025**[1](index=1&type=chunk) - Reporting Period: **Second quarter ended June 30, 2025**[1](index=1&type=chunk) - Core Business: Leading provider of clean fueling, production, storage, and last mile delivery solutions[1](index=1&type=chunk) [About Stabilis Solutions](index=3&type=section&id=About%20Stabilis%20Solutions) Stabilis Solutions specializes in providing clean fueling, production, storage, and last-mile delivery solutions for high-performance brands - Stabilis Solutions is a leading provider of clean fueling, production, storage, and last mile delivery solutions for many of the world's most recognized, high-performance brands[11](index=11&type=chunk) [Second Quarter 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Highlights) Stabilis Solutions reported Q2 2025 performance, emphasizing strategic growth in key markets and summarizing core financial outcomes [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted continued progress in long-term business development, strong demand for small-scale LNG solutions, and growth in key markets (marine, aerospace, power generation) despite a year-over-year revenue decline due to a completed large project. The company remains focused on generating operating cash flows and maintaining a strong balance sheet for future investments - Continued advancement of long-term business development and growth strategy, deepening customer engagement across marine, aerospace, and power generation end-markets[2](index=2&type=chunk) - Strong demand for turnkey small-scale LNG solutions, underpinned by continued growth in commercial space applications[2](index=2&type=chunk) - Total revenue declined year-over-year in Q2 2025 due to the successful completion of a large, short-duration commercial project late in 2024[2](index=2&type=chunk) - Key high-growth aerospace, marine, and power generation markets together increased **15% year-over-year**[2](index=2&type=chunk) - Focus on generating operating cash flows and maintaining a strong balance sheet and liquidity, with over **$16 million in cash and available liquidity** as of Q2 2025[2](index=2&type=chunk) [Strategic and Operational Update](index=1&type=section&id=Strategic%20and%20Operational%20Update) Stabilis demonstrated strong momentum in high-growth markets, with revenue mix from marine, power generation, and aerospace increasing significantly. The company also maintained consistent cash conversion, supporting balance sheet versatility and growth investments, including $1.2 million in capital expenditures year-to-date - Revenue mix in high-growth marine, power generation, and aerospace end-markets increased from **62% to nearly 77% of total revenue** in Q2 2025[6](index=6&type=chunk) - Demand within these end-markets is driven by multi-year trends such as the commercialization of the aerospace industry and the transition of marine vessels to LNG[6](index=6&type=chunk) - Consistent cash conversion and efficient cost structure have continued to drive robust free cash flow conversion and a strengthening liquidity position[6](index=6&type=chunk) - Invested **$1.2 million in capital expenditures** for growth initiatives since the beginning of the year[6](index=6&type=chunk) [Key Financial Summary](index=1&type=section&id=Key%20Financial%20Summary) For Q2 2025, Stabilis reported revenues of $17.3 million, a net loss of ($0.6) million, and Adjusted EBITDA of $1.5 million. Cash flow from operations was $4.5 million, with $12.2 million in cash and $3.9 million in credit availability Q2 2025 Key Financial Metrics | Metric | Amount (Millions) | | :-------------------------- | :---------------- | | Revenues | $17.3 | | Net loss | ($0.6) | | Adjusted EBITDA | $1.5 | | Cash flow from operations | $4.5 | | Cash and cash equivalents (as of June 30, 2025) | $12.2 | | Availability under credit agreements (as of June 30, 2025) | $3.9 | - Revenue for Q2 2025 was **$17.3 million**, a decrease of **7%** compared to Q2 2024, primarily due to the completion of a large industrial customer contract, partly offset by higher revenues from aerospace and power generation customers[4](index=4&type=chunk) - Net loss for Q2 2025 was **($0.6) million** (or **($0.03) per diluted share**), compared to net income of **$27 thousand** (or **$0.00 per diluted share**) in Q2 2024, reflecting lower net revenues partly offset by a **$0.2 million reduction** in selling, general and administrative expenses[7](index=7&type=chunk) - Adjusted EBITDA for Q2 2025 was **$1.5 million**, compared to **$2.1 million** in Q2 2024, primarily attributable to lower revenues[8](index=8&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents detailed consolidated operating results, balance sheets, and cash flow statements for Q2 and H1 2025 [Selected Consolidated Operating Results](index=4&type=section&id=Selected%20Consolidated%20Operating%20Results) For the three months ended June 30, 2025, Stabilis reported revenues of $17.3 million, a net loss of ($0.6) million, and an operating loss of ($0.47) million before equity income. This represents a decrease in revenue and a shift from net income to net loss compared to the prior year period Selected Consolidated Operating Results (Three Months Ended June 30, in thousands) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :---------------------------------- | :------ | :------ | :----------- | | Revenues | $17,309 | $18,598 | -7.04% | | Cost of revenues | $12,724 | $13,550 | -6.09% | | Selling, general and administrative expenses | $3,131 | $3,331 | -6.01% | | Income (loss) from operations before equity income | ($466) | $103 | N/A | | Net income (loss) | ($613) | $27 | N/A | | Basic and diluted per common share | ($0.03) | $0.00 | N/A | | EBITDA | $1,420 | $2,192 | -35.22% | | Adjusted EBITDA | $1,480 | $2,110 | -29.86% | Selected Consolidated Operating Results (Six Months Ended June 30, in thousands) | Metric | H1 2025 | H1 2024 | Change (YoY) | | :---------------------------------- | :------ | :------ | :----------- | | Revenues | $34,647 | $38,368 | -9.69% | | Cost of revenues | $25,512 | $27,064 | -5.74% | | Selling, general and administrative expenses | $8,064 | $6,787 | +18.81% | | Income (loss) from operations before equity income | ($2,529) | $1,482 | N/A | | Net income (loss) | ($2,211) | $1,496 | N/A | | Basic and diluted per common share | ($0.12) | $0.08 | N/A | | EBITDA | $1,580 | $5,547 | -71.52% | | Adjusted EBITDA | $3,549 | $5,213 | -31.92% | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased to $83.2 million from $85.6 million at December 31, 2024. Cash and cash equivalents increased, while accounts receivable and property, plant, and equipment (net) decreased. Total liabilities also saw a slight decrease Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :---------------------------------- | :-------------- | :---------------- | :----- | | Cash and cash equivalents | $12,220 | $8,987 | +$3,233 | | Accounts receivable, net | $4,397 | $6,239 | -$1,842 | | Total current assets | $17,836 | $17,473 | +$363 | | Property, plant and equipment, net | $49,548 | $51,728 | -$2,180 | | Total assets | $83,244 | $85,584 | -$2,340 | | Total current liabilities | $11,341 | $11,627 | -$286 | | Total liabilities | $17,762 | $18,576 | -$814 | | Total stockholders' equity | $65,482 | $67,008 | -$1,526 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was $5.5 million, a decrease from $9.0 million in the prior year. Net cash used in investing activities was $0.9 million, and net cash used in financing activities was $1.4 million. The net increase in cash and cash equivalents was $3.2 million Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30, in thousands) | Metric | H1 2025 | H1 2024 | Change | | :---------------------------------- | :------ | :------ | :----- | | Net cash provided by operating activities | $5,540 | $8,967 | -$3,427 | | Net cash used in investing activities | ($911) | ($1,970) | +$1,059 | | Net cash used in financing activities | ($1,410) | ($884) | -$526 | | Net increase in cash and cash equivalents | $3,233 | $6,109 | -$2,876 | | Cash and cash equivalents, end of period | $12,220 | $11,483 | +$737 | - Distributions from equity investment in joint venture contributed **$1.6 million** to operating cash flow for the three months ended June 30, 2025[20](index=20&type=chunk) - Acquisition of fixed assets amounted to **$1.1 million** for the six months ended June 30, 2025[20](index=20&type=chunk) [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP financial measures, including EBITDA and Adjusted EBITDA, for the three and six months ended June 30, 2025 [Reconciliation of EBITDA and Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) Stabilis provides EBITDA and Adjusted EBITDA as supplemental non-GAAP measures. For Q2 2025, EBITDA was $1.4 million and Adjusted EBITDA was $1.5 million. Adjusted EBITDA for Q2 2025 includes adjustments for unrealized gain/loss on natural gas derivatives and severance expenses - EBITDA and Adjusted EBITDA are non-GAAP measures used by management to assess the performance and operating results of the business[21](index=21&type=chunk) EBITDA and Adjusted EBITDA Reconciliation (Three Months Ended June 30, in thousands) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :------ | :------ | :----------- | | Net income (loss) | ($613) | $27 | N/A | | Depreciation | $1,860 | $1,768 | +5.20% | | Interest expense (income), net | ($24) | ($28) | N/A | | Income tax (benefit) expense | $197 | $425 | -53.65% | | **EBITDA** | **$1,420** | **$2,192** | **-35.22%** | | Special items* | $60 | ($82) | N/A | | **Adjusted EBITDA** | **$1,480** | **$2,110** | **-29.86%** | *Special items for Q2 2025 consist of adjustments related to unrealized (gain)/loss on natural gas derivatives. EBITDA and Adjusted EBITDA Reconciliation (Six Months Ended June 30, in thousands) | Metric | H1 2025 | H1 2024 | Change (YoY) | | :-------------------------- | :------ | :------ | :----------- | | Net income (loss) | ($2,211) | $1,496 | N/A | | Depreciation | $3,727 | $3,568 | +4.46% | | Interest expense (income), net | ($45) | ($24) | N/A | | Income tax (benefit) expense | $109 | $507 | -78.50% | | **EBITDA** | **$1,580** | **$5,547** | **-71.52%** | | Special items* | $1,969 | ($334) | N/A | | **Adjusted EBITDA** | **$3,549** | **$5,213** | **-31.92%** | *Special items for H1 2025 include $2.1 million related to Mr. Ballard's severance expenses and a subtraction of $0.1 million for a gain related to a property damage settlement, in addition to natural gas derivatives adjustments. [Additional Information](index=2&type=section&id=Additional%20Information) This section provides conference call details, cautionary statements regarding forward-looking information, and investor contact details [Conference Call and Webcast Details](index=2&type=section&id=Conference%20Call%20and%20Webcast%20Details) Stabilis Solutions will host a conference call on August 7, 2025, at 9:00 a.m. ET to discuss Q2 2025 financial results, with webcast access available via the company's investor relations website - Event: **Q2 2025 Conference Call and Webcast**[9](index=9&type=chunk) - Date & Time: **Thursday, August 7, 2025, at 9:00 a.m. ET**[9](index=9&type=chunk) - Webcast Link: **https://investors.stabilis-solutions.com/events**[10](index=10&type=chunk) - Conference ID: **SLNGQ225**[11](index=11&type=chunk) - Replay Availability: Through **August 14, 2025**[11](index=11&type=chunk) [Cautionary Statements Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statements%20Regarding%20Forward-Looking%20Statements) The press release contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially from expectations. Readers are cautioned not to place undue reliance on these statements, and the company does not undertake to update them unless required by law - This press release includes 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995[12](index=12&type=chunk) - Actual events, performance, or results could differ materially from those discussed due to factors such as future demand for and price of LNG, availability and price of natural gas, unexpected costs, and general economic conditions[13](index=13&type=chunk) - Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made[14](index=14&type=chunk) - Stabilis does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law[14](index=14&type=chunk) [Investor Contact](index=7&type=section&id=Investor%20Contact) For investor inquiries, contact Andrew Puhala, Chief Financial Officer, via phone or email - Contact Person: **Andrew Puhala**[24](index=24&type=chunk) - Title: **Chief Financial Officer**[24](index=24&type=chunk) - Phone: **832-456-6502**[24](index=24&type=chunk) - Email: **ir@stabilis-solutions.com**[24](index=24&type=chunk)
Stabilis Solutions(SLNG) - 2025 Q1 - Earnings Call Transcript
2025-05-08 14:02
Financial Data and Key Metrics Changes - Revenue during the first quarter decreased by 12% compared to the first quarter of 2024, but was modestly higher than the fourth quarter of 2024 [12] - GAAP net loss was $1,600,000 or $0.09 per diluted share, compared to net income of $1,500,000 or $0.08 per diluted share in the first quarter of 2024 [13] - Adjusted EBITDA was $2,100,000, down from $3,100,000 in the first quarter of last year, with an adjusted EBITDA margin of 11.9%, down from 15.7% [13] Business Line Data and Key Metrics Changes - Revenue in marine and aerospace markets grew by more than 13% year over year, primarily driven by increased activity with a major aerospace customer [6] - Approximately 51% of revenues were derived from marine and aerospace customers compared to 39% in the first quarter of last year [12] - Power generation revenues remained consistent with Q1 of 2024 [12] Market Data and Key Metrics Changes - The company is focused on expanding its position as a leading small-scale LNG supplier within high-growth sectors, including marine bunkering, aerospace, and power generation [5][6] - The company is actively evaluating the potential expansion of liquefaction capacity in South Texas and along the Gulf Coast [8] Company Strategy and Development Direction - The company aims for long-term growth across core end markets supported by significant multiyear demand [5] - The strategy includes making targeted operating expense investments to support future growth while generating consistent positive operating cash flow [7] - The company remains focused on maintaining a strong balance sheet and liquidity position to fund future growth [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in revenues was primarily due to planned downtime with a key marine customer and the completion of a major project [5] - The company expects steady utilization and demand under existing contracts with potential upside as new opportunities are converted into signed agreements [8] - Management expressed optimism about the growth in commercial aerospace activity and the increasing demand for LNG as a propellant in the space industry [34] Other Important Information - Cash generated from operations during the first quarter was $1,000,000, representing a conversion rate of 50% of adjusted EBITDA [14] - Capital expenditures were $5,000,000, with about 70% allocated to growth initiatives [14] - As of March 31, 2025, the company had total cash and equivalents of $9,000,000 and $3,500,000 available under credit facilities, with total debt outstanding of $9,100,000 [15] Q&A Session Summary Question: Update on contracting side and liquefaction train deployment - Management is actively working on commercial contracts and expects to provide clarity on the timing for final investment decisions in the second or third quarter of this year [21] Question: Customer inquiries in power generation - Management indicated that inquiries are coming from various sectors, including data centers, reshoring manufacturing, and emergency power needs, with a focus on distributed power opportunities [23][24] Question: Details on bunkering operation downtime - The downtime was due to planned maintenance on vessels, which occurs for one week out of the year, affecting bunkering events [30] Question: Indicators of demand for small-scale LNG services - Management noted increased bidding and inbound customer needs in aerospace, marine bunkering, and distributed power markets as indicators of rising demand [32] Question: Impact of SpaceX's plans on demand - Management highlighted the normalization of commercial aerospace activity and the increasing use of LNG as a propellant for rockets as positive indicators for growth in the space industry [34]
Stabilis Solutions(SLNG) - 2025 Q1 - Earnings Call Transcript
2025-05-08 14:00
Financial Data and Key Metrics Changes - Revenue for the first quarter decreased by 12% compared to the first quarter of 2024, primarily due to the roll-off of a large contract and planned downtime with a major marine customer [12] - GAAP net loss was $1.6 million or $0.09 per diluted share, compared to net income of $1.5 million or $0.08 per diluted share in the first quarter of 2024 [13] - Adjusted EBITDA was $2.1 million, down from $3.1 million in the first quarter of last year, with an adjusted EBITDA margin of 11.9%, down from 15.7% [13] Business Line Data and Key Metrics Changes - Revenue in marine and aerospace markets grew by over 13% year over year, driven by increased activity with a major aerospace customer [6] - Approximately 51% of revenues were derived from marine and aerospace customers compared to 39% in the first quarter of last year [12] - Power generation revenues remained consistent with Q1 of 2024 [12] Market Data and Key Metrics Changes - The company is focused on expanding its position in high-growth sectors such as marine bunkering, aerospace, and power generation, supported by significant multiyear demand [5] - The company expects steady utilization and demand under existing contracts, with potential upside as new opportunities are converted into signed agreements [7] Company Strategy and Development Direction - The strategy remains focused on becoming the leading small-scale LNG supplier in high-growth sectors where access to traditional LNG supply infrastructure is limited [6] - The company is evaluating potential expansion of liquefaction capacity in South Texas and along the Gulf Coast as part of its long-term growth strategy [7] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in revenues does not reflect the underlying momentum in the business, and they continue to generate consistent positive operating cash flow [6] - The company remains focused on maintaining a strong balance sheet and liquidity position to fund future growth [9] Other Important Information - Cash generated from operations during the first quarter was $1 million, representing a conversion rate of 50% of adjusted EBITDA [14] - Capital expenditures were $0.5 million, with about 70% allocated to growth initiatives [14] Q&A Session Summary Question: Update on contracting side and liquefaction train - Management is actively working on commercial contracts and expects to provide clarity on timing in the second or third quarter of this year [21] Question: Customer inquiries in power generation - Management indicated they are seeing inquiries for various types of power needs, including data centers and emergency power, with projects ranging from six months to five years [24] Question: Details on bunkering operation downtime - The planned downtime was a one-week maintenance period for crew operators, which reduced bunkering events during the quarter [30] Question: Indicators of demand for small-scale LNG services - Management is focused on increased bidding and customer needs in aerospace, marine bunkering, and distributed power markets [33] Question: Space industry demand - The normalization of commercial aerospace activity and increased launches are seen as positive indicators for demand [35]
Stabilis Solutions(SLNG) - 2025 Q1 - Quarterly Report
2025-05-07 20:22
Part I. Financial Information This section covers the company's unaudited Q1 2025 financial statements and management's discussion and analysis [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Stabilis Solutions, Inc.'s unaudited Q1 2025 condensed consolidated financial statements and related notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and equity at specific dates Condensed Consolidated Balance Sheets (in millions) | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Total current assets | $15.433 | $17.473 | | Property, plant and equipment, net | $50.289 | $51.728 | | Total assets | $83.060 | $85.584 | | Total current liabilities | $10.356 | $11.627 | | Total liabilities | $17.149 | $18.576 | | Total stockholders' equity | $65.911 | $67.008 | - **Total assets decreased from $85.584 million at December 31, 2024, to $83.060 million at March 31, 2025**. **Total current assets decreased by $2.04 million**, primarily due to decreases in accounts receivable, inventories, and prepaid expenses[13](index=13&type=chunk) - **Total liabilities decreased from $18.576 million at December 31, 2024, to $17.149 million at March 31, 2025**, driven by a reduction in accounts payable, accrued liabilities, and the current portion of long-term notes payable[13](index=13&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's Q1 2025 financial performance, including revenues, expenses, and net income or loss Condensed Consolidated Statements of Operations (in millions) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Revenues | $17.338 | $19.770 | | Cost of revenues | $12.788 | $13.514 | | Selling, general and administrative expenses | $4.933 | $3.456 | | Net income (loss) | $(1.598) | $1.469 | | Basic and diluted per common share | $(0.09) | $0.08 | - The company reported a **net loss of $1.598 million** for the three months ended March 31, 2025, a **significant decline from a net income of $1.469 million** in the prior year quarter[16](index=16&type=chunk) - **Revenues decreased by 12.3%** from **$19.770 million** in Q1 2024 to **$17.338 million** in Q1 2025[16](index=16&type=chunk) - **Selling, general and administrative expenses increased by $1.477 million, or 42.7%**, primarily due to **$2.1 million in severance-related expenses** for the former CEO[16](index=16&type=chunk)[94](index=94&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section details the company's total comprehensive income or loss, including net income and other comprehensive items Condensed Consolidated Statements of Comprehensive Income (Loss) (in millions) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net income (loss) | $(1.598) | $1.469 | | Foreign currency translation adjustment, net of tax | $0.071 | $(0.466) | | Total comprehensive income (loss) | $(1.527) | $1.003 | - **Total comprehensive loss for Q1 2025 was $1.527 million**, a **decrease from a comprehensive income of $1.003 million** in Q1 2024, primarily driven by the net loss[19](index=19&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section tracks changes in the company's equity, including common stock, additional paid-in capital, and accumulated deficit Condensed Consolidated Statements of Stockholders' Equity (in millions) | Metric | Balance at Dec 31, 2024 (in millions) | Balance at Mar 31, 2025 (in millions) | | :------------------------- | :----------------------------------- | :----------------------------------- | | Common Stock (Amount) | $0.019 | $0.019 | | Additional Paid-in Capital | $103.214 | $103.644 | | Accumulated Deficit | $(35.647) | $(37.245) | | Total Stockholders' Equity | $67.008 | $65.911 | - **Total stockholders' equity decreased from $67.008 million at December 31, 2024, to $65.911 million at March 31, 2025**, mainly due to the net loss incurred during the quarter[21](index=21&type=chunk) - **Additional paid-in capital increased by $430 thousand**, reflecting **stock-based compensation of $447 thousand**, partially offset by employee tax payments from stock-based withholdings[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the company's cash flows from operating, investing, and financing activities for Q1 2025 Condensed Consolidated Statements of Cash Flows (in millions) | Cash Flow Activity | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :----------------------- | :--------------------------------------- | :--------------------------------------- | | Operating activities | $1.025 | $3.929 | | Investing activities | $(0.276) | $(0.666) | | Financing activities | $(0.730) | $(0.355) | | Net increase in cash | $0.016 | $2.912 | | Cash and cash equivalents, end of period | $9.003 | $8.286 | - **Net cash provided by operating activities decreased significantly to $1.025 million in Q1 2025 from $3.929 million in Q1 2024**, primarily due to lower income from operations[24](index=24&type=chunk)[106](index=106&type=chunk) - **Net cash used in investing activities decreased to $0.276 million in Q1 2025 from $0.666 million in Q1 2024**, mainly due to reduced purchases of liquefaction assets[24](index=24&type=chunk)[107](index=107&type=chunk) - **Net cash used in financing activities increased to $0.730 million in Q1 2025 from $0.355 million in Q1 2024**, driven by additional debt payments on the AmeriState Loan[24](index=24&type=chunk)[108](index=108&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1. Description of Business and Basis of Presentation](index=10&type=section&id=1.%20DESCRIPTION%20OF%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) This note describes the company's energy transition business and the accounting principles used in financial reporting - **Stabilis Solutions, Inc. is an energy transition company providing turnkey clean energy solutions using liquefied natural gas (LNG) to diverse end markets** including aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power, and utility markets[25](index=25&type=chunk)[26](index=26&type=chunk) - The Company also holds a **40% interest in BOMAY Electric Industries, Inc.**, a Chinese joint venture that builds power and control systems for the energy industry, accounted for under the equity method[27](index=27&type=chunk) - The Company operates as a single operating and reporting segment, with the CEO and CFO assessing performance on a consolidated basis[31](index=31&type=chunk) - The Company has not designated its natural gas derivative instruments as hedges under U.S. GAAP and does not enter into derivative transactions for speculative purposes[32](index=32&type=chunk)[33](index=33&type=chunk) [Note 2. Revenue Recognition](index=12&type=section&id=2.%20REVENUE%20RECOGNITION) This note details the company's policies for recognizing revenue from LNG product sales, rentals, and services - Revenues are recognized upon delivery of goods or services, measured as consideration specified in the contract, and disaggregated into LNG Product, rental, service, and other categories[37](index=37&type=chunk) Revenue Source (in millions) | Revenue Source | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--------------- | :--------------------------------------- | :--------------------------------------- | | LNG Product | $13.946 | $15.413 | | Rental | $1.550 | $2.173 | | Service | $1.705 | $1.924 | | Other | $0.137 | $0.260 | | Total revenues | $17.338 | $19.770 | Geographic Location (in millions) | Geographic Location | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :-------------------- | :--------------------------------------- | :--------------------------------------- | | United States | $16.523 | $18.507 | | Mexico | $0.815 | $1.263 | | Total revenues | $17.338 | $19.770 | - **LNG Product revenues decreased by $1.467 million (9.5%) year-over-year**, while **Rental revenues decreased by $623 thousand (28.7%)** and **Service revenues decreased by $219 thousand (11.4%)**[42](index=42&type=chunk)[43](index=43&type=chunk)[89](index=89&type=chunk) [Note 3. Prepaid Expenses and Other Current Assets](index=14&type=section&id=3.%20PREPAID%20EXPENSES%20AND%20OTHER%20CURRENT%20ASSETS) This note provides a breakdown of the company's prepaid expenses and other current assets, including insurance and derivatives Prepaid Expenses and Other Current Assets (in millions) | Item | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :---------------------------------- | :----------------------------- | :----------------------------- | | Prepaid insurance | $0.670 | $1.044 | | Prepaid supplier expenses | $0.170 | $0.167 | | Other receivables | $0.262 | $0.204 | | Natural gas derivatives at fair value, current | $0.141 | $0.207 | | Deposits | $0.099 | $0.129 | | Other | $0.168 | $0.151 | | Total prepaid expenses and other current assets | $1.510 | $1.902 | - **Total prepaid expenses and other current assets decreased from $1.902 million at December 31, 2024, to $1.510 million at March 31, 2025**, primarily due to a reduction in prepaid insurance[47](index=47&type=chunk) [Note 4. Property, Plant and Equipment](index=14&type=section&id=4.%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) This note details the company's fixed assets, including liquefaction plants, vehicles, and construction in progress Property, Plant and Equipment (in millions) | Item | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Liquefaction plants and systems | $56.752 | $56.752 | | Vehicles and tanker trailers and equipment | $49.435 | $49.754 | | Construction in progress | $8.532 | $8.082 | | Total cost | $117.456 | $117.246 | | Less: accumulated depreciation | $(67.167) | $(65.518) | | Net property, plant and equipment | $50.289 | $51.728 | - **Net property, plant and equipment decreased from $51.728 million at December 31, 2024, to $50.289 million at March 31, 2025**, despite an increase in construction in progress[48](index=48&type=chunk) - **Depreciation expense increased slightly to $1.9 million for Q1 2025 from $1.8 million for Q1 2024**, mainly due to new mobile assets[48](index=48&type=chunk)[95](index=95&type=chunk) [Note 5. Investment in Foreign Joint Venture](index=15&type=section&id=5.%20INVESTMENT%20IN%20FOREIGN%20JOINT%20VENTURE) This note describes the company's equity method investment in BOMAY Electric Industries, Inc., a Chinese joint venture - The Company holds a **40% interest in BOMAY Electric Industries, Inc.**, which builds electrical systems in China, accounted for using the equity method[49](index=49&type=chunk)[50](index=50&type=chunk) BOMAY Financials (in millions) | BOMAY Financials | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :----------------- | :----------------------------- | :----------------------------- | | Total assets | $125.235 | $133.749 | | Total liabilities | $91.943 | $101.562 | | Total equity | $33.292 | $32.187 | BOMAY Operations (in millions) | BOMAY Operations | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :----------------- | :--------------------------------------- | :--------------------------------------- | | Revenue | $21.710 | $17.239 | | Net income | $0.961 | $0.537 | - **Net equity income from BOMAY increased by $0.2 million to $0.417 million in Q1 2025 from $0.247 million in Q1 2024**, driven by increased net profits from the joint venture[51](index=51&type=chunk)[97](index=97&type=chunk) [Note 6. Accrued Liabilities](index=17&type=section&id=6.%20ACCRUED%20LIABILITIES) This note outlines the company's accrued liabilities, including compensation, taxes, and other short-term obligations Accrued Liabilities (in millions) | Item | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :------------------------ | :----------------------------- | :----------------------------- | | Compensation and benefits | $2.605 | $2.408 | | Other taxes payable | $0.272 | $0.268 | | Other accrued liabilities | $0.422 | $0.890 | | Total accrued liabilities | $3.299 | $3.566 | - **Total accrued liabilities decreased from $3.566 million at December 31, 2024, to $3.299 million at March 31, 2025**, primarily due to a decrease in other accrued liabilities[53](index=53&type=chunk) - **The Company recorded $1.7 million in expenses related to the separation of former CEO Westervelt T. Ballard, Jr., including $1.6 million for separation, additional, and consulting pay, and $0.1 million for other related expenses**. As of March 31, 2025, **$1.5 million of this amount remains unpaid and is included in current liabilities**[54](index=54&type=chunk) [Note 7. Debt](index=17&type=section&id=7.%20DEBT) This note details the company's debt obligations, including secured term notes, revolving credit facilities, and covenant compliance Debt (in millions) | Debt Type | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Secured term note, net | $7.765 | $7.975 | | Insurance and other notes payable | $0.510 | $0.883 | | Total debt | $8.275 | $8.858 | | Less: amounts due within one year | $(1.655) | $(2.010) | | Total long-term debt | $6.620 | $6.848 | - **Total debt, net of debt issuance costs, decreased from $8.858 million at December 31, 2024, to $8.275 million at March 31, 2025**[56](index=56&type=chunk) - **The $10.0 million Revolving Credit Facility with Cadence Bank was extended to June 9, 2028**, and the Fixed Charge Coverage Ratio terms were amended. As of March 31, 2025, no amounts have been drawn, and **the Company has $2.5 million availability**[57](index=57&type=chunk)[58](index=58&type=chunk) - **The AmeriState Loan, a secured term loan facility, had $8.0 million outstanding at March 31, 2025, with $1.0 million remaining availability**. **The Company was in compliance with all debt covenants as of March 31, 2025**[60](index=60&type=chunk)[61](index=61&type=chunk) [Note 8. Related Party Transactions](index=19&type=section&id=8.%20RELATED%20PARTY%20TRANSACTIONS) This note discloses transactions with related parties, including lease agreements and purchases from entities with common ownership - The Company entered into a **lease agreement for office space with The Modern Group, beneficially owned by Executive Chairman J. Casey Crenshaw, at a market rate of $28 thousand per month, resulting in a $0.4 million right-of-use asset and operating lease liability**[63](index=63&type=chunk) - **Purchases and lease payments from subsidiaries of The Modern Group totaled $40 thousand for Q1 2025, a decrease from $0.1 million in Q1 2024**[64](index=64&type=chunk) - **The Company made purchases of $0.1 million from Chart Energy and Chemicals, Inc., which beneficially owns 7.9% of the Company's common stock**, for both Q1 2025 and Q1 2024[65](index=65&type=chunk) [Note 9. Commitments and Contingencies](index=20&type=section&id=9.%20COMMITMENTS%20AND%20CONTINGENCIES) This note describes the company's commitments and potential liabilities, including environmental regulations and legal proceedings - The Company is subject to federal, state, and local environmental laws and regulations and does not anticipate material expenditures for compliance[66](index=66&type=chunk) - **Management believes the ultimate resolution of any legal actions, claims, or audits will not have a material adverse effect on the Company's financial position, results of operations, or liquidity**[67](index=67&type=chunk) [Note 10. Stockholders' Equity and Stock-Based Compensation](index=20&type=section&id=10.%20STOCKHOLDERS'%20EQUITY%20AND%20STOCK-BASED%20COMPENSATION) This note provides information on changes in stockholders' equity and the company's stock-based compensation plans and expenses - **Stock compensation expense was $0.4 million for both Q1 2025 and Q1 2024**[68](index=68&type=chunk) - **The Company's Amended and Restated Long-Term Incentive Plan has a maximum of 5,500,000 shares available for issuance**, with **no new stock-based awards granted in Q1 2025**[69](index=69&type=chunk)[70](index=70&type=chunk) - Upon Mr. Ballard's separation, **7,765 unvested restricted stock units and 147,525 unvested stock options vested**, and **the exercise period for these and 1.6 million previously vested options was amended to expire December 31, 2025**. **This modification resulted in an additional $0.4 million in non-cash stock compensation expense**[72](index=72&type=chunk) [Note 11. Net Income Per Share](index=22&type=section&id=11.%20NET%20INCOME%20PER%20SHARE) This note details the calculation of basic and diluted net income or loss per common share for the reporting periods Net Income Per Share (in millions, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Basic weighted average number of common shares outstanding | 18,591,374 | 18,578,815 | | Dilutive securities | — | 1,996 | | Net income (loss) | $(1.598) | $1.469 | | Basic net income (loss) per common share | $(0.09) | $0.08 | | Diluted net income (loss) per common share | $(0.09) | $0.08 | - **Basic and diluted net loss per common share was $(0.09) for Q1 2025**, **compared to basic and diluted net income per common share of $0.08 for Q1 2024**[75](index=75&type=chunk) - **No dilutive securities were included in the Q1 2025 calculation due to the net loss and out-of-the-money stock options**[74](index=74&type=chunk) [Note 12. Supplemental Cash Flow Information](index=22&type=section&id=12.%20SUPPLEMENTAL%20CASH%20FLOW%20INFORMATION) This note provides additional details on cash flow activities, including interest paid and non-cash investing and financing transactions Supplemental Cash Flow Information (in thousands) | Item | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Interest paid | $144 | $157 | | Income taxes paid | — | — | | ROU assets from leases | $425 | — | - **Interest paid decreased slightly to $144 thousand in Q1 2025 from $157 thousand in Q1 2024**. **No income taxes were paid in either period**[76](index=76&type=chunk) - **Significant non-cash investing and financing activities for Q1 2025 included $425 thousand in Right-of-Use (ROU) assets from leases**[76](index=76&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2025 financial condition, operations, liquidity, and capital resources [Overview](index=23&type=section&id=Overview) This section provides an overview of Stabilis Solutions, Inc.'s clean energy solutions and LNG operations - **Stabilis Solutions, Inc. is an energy transition company providing turnkey clean energy production, storage, transportation, and fueling solutions using LNG to diverse end markets across North America**[78](index=78&type=chunk) - **The Company generates revenue through LNG sales and delivery, cryogenic equipment rental, and engineering and field support services**, offering both separate and bundled solutions[79](index=79&type=chunk) - **Stabilis owns and operates two liquefiers in George West, Texas (100,000 LNG gallons/day) and Port Allen, Louisiana (30,000 LNG gallons/day)**, and supplements supply with third-party sources[80](index=80&type=chunk) - **The Company received DOE authorization in Q3 2022 to export LNG to FTA and non-FTA countries (up to 51.75 billion cubic feet per year)** and has initiated exports to Europe and Mexico under these authorizations[84](index=84&type=chunk)[86](index=86&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) This section analyzes the company's Q1 2025 financial performance, detailing revenues, cost of revenues, and operating expenses Results of Operations (in millions) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | $ Change | % Change | | :--------------------------------------- | :--------------------- | :--------------------- | :------- | :------- | | Revenues | $17.338 | $19.770 | $(2.432) | (12.3)% | | Cost of revenues | $12.788 | $13.514 | $(0.726) | (5.4)% | | Selling, general and administrative expenses | $4.933 | $3.456 | $1.477 | 42.7% | | Income (loss) from operations | $(1.695) | $1.576 | $(3.271) | n/a | | Net income (loss) | $(1.598) | $1.469 | $(3.067) | n/a | - **Total revenues decreased by $2.4 million (12.3%) year-over-year**, primarily due to **decreased LNG gallons delivered ($2.1 million decrease)**, **lower rental, service, and other revenues ($1.0 million decrease)**, and **decreased take-or-pay contracts ($0.2 million decrease)**. These declines were **partially offset by a $1.0 million increase from higher natural gas prices passed to customers**[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) - **Cost of revenues decreased by $0.7 million (5.4%)**, mainly due to **decreased gallons delivered ($1.4 million decrease)** and **lower rental/service costs ($0.5 million decrease)**, **partially offset by higher natural gas pricing and liquefaction costs ($1.2 million increase)**[89](index=89&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk) - **Selling, general and administrative expenses increased by $1.5 million (42.7%), largely driven by $2.1 million in severance-related expenses for the former CEO**, partially offset by lower compensation[89](index=89&type=chunk)[94](index=94&type=chunk) - **The Company shifted from an income from operations of $1.576 million in Q1 2024 to a loss from operations of $1.695 million in Q1 2025**[89](index=89&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's Q1 2025 liquidity sources, cash flows, debt obligations, and capital expenditures - **Principal sources of liquidity include cash from operations, cash on hand, and distributions from the BOMAY joint venture**. For Q1 2025, liquidity primarily came from operations and existing cash balances[101](index=101&type=chunk) - **As of March 31, 2025, the Company had $9.0 million in cash and cash equivalents, $9.1 million in outstanding debt and lease obligations ($2.3 million due in next 12 months), and $3.5 million total availability under its Revolving Credit Facility and AmeriState Secured Term Loan Facility**[103](index=103&type=chunk) - **Net cash provided by operating activities decreased by $2.9 million to $1.0 million in Q1 2025, primarily due to decreased profit from lower income from operations**[105](index=105&type=chunk)[106](index=106&type=chunk) - **Capital expenditures for Q1 2025 were $0.5 million, mainly for additional liquefaction assets, refurbishments, and upgrades**[110](index=110&type=chunk) - **The Company's $100.0 million Shelf Registration Statement and related ATM prospectus supplement expired unused on April 25, 2025**[111](index=111&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of the company's disclosure controls and procedures as of March 31, 2025 - **The Company's disclosure controls and procedures were deemed effective as of March 31, 2025, providing reasonable assurance that required information is accumulated, communicated, and reported timely**[115](index=115&type=chunk) - **There were no material changes in internal control over financial reporting during the quarter ended March 31, 2025**[116](index=116&type=chunk) Part II. Other Information This section includes disclosures on legal proceedings, risk factors, other information, and exhibits [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings, but their resolution is not expected to materially affect financial position - **Management does not anticipate that the ultimate resolution of legal proceedings and claims will have a material effect on the Company's financial position or results of operations**[118](index=118&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the 2024 Form 10-K, except for a new risk factor concerning changes in U.S. trade policy and tariffs - **No material changes to risk factors from the 2024 Form 10-K, except for a new risk factor regarding changes in U.S. trade policy, including tariffs**[119](index=119&type=chunk) - **New risk factor: Escalating tariffs and potential trade restrictions could lead to economic uncertainty, reduced demand for LNG, or increased operating costs**, despite the majority of sales being domestic and current LNG trade with Mexico not being subject to tariffs[120](index=120&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - **No officers or directors engaged in Rule 10b5-1 or non-Rule 10b5-1 trading arrangement adoptions, modifications, or terminations during Q1 2025**[121](index=121&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents and recent agreements - **Key exhibits include Amended and Restated Articles of Incorporation and Bylaws, various Registration Rights Agreements, and recent agreements such as the Release and Consulting Agreement (Exhibit 10.1) and the Loan Modification Agreement (Exhibit 10.2)**[123](index=123&type=chunk) Signatures This section contains the official signatures of the company's principal executive and financial officers, certifying the report - **The report was signed on May 7, 2025, by J. Casey Crenshaw, Interim President, Chief Executive Officer and Director, and Andrew L. Puhala, Chief Financial Officer**[126](index=126&type=chunk)
Stabilis Solutions(SLNG) - 2025 Q1 - Quarterly Results
2025-05-07 20:17
First Quarter 2025 Highlights & Management Commentary This chapter provides an overview of the company's performance and strategic direction for Q1 2025, emphasizing management's perspective on market demand and capital allocation [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlights strong demand in marine, aerospace, and power generation, with 13% revenue growth in aerospace and marine, while maintaining a strong balance sheet - Strong demand observed across the **marine bunkering**, **commercial aerospace**, and **power generation** sectors[3](index=3&type=chunk) - Revenue growth within aerospace and marine markets increased **13%** compared to the prior year[3](index=3&type=chunk) - Company maintained a strong balance sheet with **$12.5 million** of cash and availability under credit agreements as of March 31, 2025[3](index=3&type=chunk) [Strategic and Operational Update](index=1&type=section&id=Strategic%20and%20Operational%20Update) Stabilis Solutions is strengthening its competitive position in high-growth markets, with marine, power generation, and aerospace now comprising nearly 70% of total revenue [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) This section presents a summary of key financial metrics for the first quarter of 2025, including revenues, net loss, and Adjusted EBITDA Key Financial Highlights (in millions USD) | Metric | Q1 2025 | | :----- | :------ | | Revenues | $17.3 | | Net loss | ($1.6) | | Adjusted EBITDA | $2.1 | | Cash flow from operations | $1.0 | | Cash and availability (as of March 31, 2025) | $12.5 ($9.0 cash + $3.5 availability) | [Market Position and Growth Initiatives](index=1&type=section&id=Market%20Position%20and%20Growth%20Initiatives) The company is strategically enhancing its market position and investing in growth initiatives to capitalize on multi-year demand trends for LNG solutions - Revenue mix in high-growth marine, power generation, and aerospace end-markets increased from **56% to nearly 70%** of total revenue since Q1 last year[6](index=6&type=chunk) - Company is uniquely positioned as an incumbent small-scale LNG supplier of choice in these markets due to its turnkey solutions offering[6](index=6&type=chunk) - Advancing significant operating and capital investments to support future growth while delivering consistent operating cash flow[6](index=6&type=chunk) Financial Performance Summary This section provides a concise overview of the company's key financial results for the first quarter of 2025, including revenue, net income, and Adjusted EBITDA [Revenue](index=2&type=section&id=Revenue) Q1 2025 revenue decreased by 12.3% to $17.3 million year-over-year, primarily due to planned marine customer downtime and a completed industrial project, partially offset by aerospace growth Revenue (in millions USD) | Metric | Q1 2025 | Q1 2024 | Change YoY | | :----- | :------ | :------ | :--------- | | Revenue | $17.3 | $19.77 | -12.3% | - Decrease primarily due to expected downtime with a marine customer and completion of a large industrial customer contract[7](index=7&type=chunk) - Partly offset by higher revenues associated with aerospace customers[7](index=7&type=chunk) [Net Income (Loss)](index=2&type=section&id=Net%20Income%20(Loss)) Stabilis Solutions reported a net loss of ($1.6) million, or ($0.09) per diluted share, in Q1 2025, a decline from Q1 2024, driven by lower revenues and $2.1 million in non-recurring expenses Net Income (Loss) (in millions USD, except EPS) | Metric | Q1 2025 | Q1 2024 | | :----- | :------ | :------ | | Net Income (Loss) | ($1.6) | $1.5 | | Diluted EPS | ($0.09) | $0.08 | - Decrease reflects lower net revenues and **$2.1 million** in non-recurring selling, general, and administration expenses associated with executive transition[8](index=8&type=chunk) [Adjusted EBITDA](index=2&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 was $2.1 million (11.9% of revenue), down from $3.1 million (15.7%) in Q1 2024, primarily due to lower revenues and a completed customer contract Adjusted EBITDA (in millions USD) | Metric | Q1 2025 | Q1 2024 | | :----- | :------ | :------ | | Adjusted EBITDA | $2.1 | $3.1 | | Adjusted EBITDA Margin | 11.9% | 15.7% | - Decrease primarily attributable to lower revenues, including lower equipment and labor revenues on a completed customer contract[9](index=9&type=chunk) Consolidated Financial Statements This section presents the company's selected consolidated operating results, balance sheets, and cash flow statements for the reported periods [Selected Consolidated Operating Results](index=4&type=section&id=Selected%20Consolidated%20Operating%20Results) Q1 2025 selected consolidated operating results show a year-over-year decline in revenues and a shift to an operating loss, driven by increased SG&A expenses and lower overall revenues Selected Consolidated Operating Results (in thousands USD, except EPS) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------- | :------ | :------ | :------ | | Revenues | $17,338 | $17,298 | $19,770 | | Cost of revenues | $12,788 | $12,367 | $13,514 | | Selling, general and administrative expenses | $4,933 | $1,941 | $3,456 | | Income (loss) from operations | ($1,695) | $2,193 | $1,576 | | Net income (loss) | ($1,598) | $2,106 | $1,469 | | Basic and diluted per common share | ($0.09) | $0.11 | $0.08 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to $83.06 million from $85.58 million, driven by lower current assets, with a corresponding reduction in total liabilities and stockholders' equity Condensed Consolidated Balance Sheets (in thousands USD) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Total current assets | $15,433 | $17,473 | | Property, plant and equipment, net | $50,289 | $51,728 | | Total assets | $83,060 | $85,584 | | Total current liabilities | $10,356 | $11,627 | | Total liabilities | $17,149 | $18,576 | | Total stockholders' equity | $65,911 | $67,008 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 operating cash flow was $1.025 million, a decrease from Q1 2024, with net cash outflows from investing and financing activities, resulting in a $16 thousand net increase in cash Condensed Consolidated Statements of Cash Flows (in thousands USD) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------- | :------ | :------ | :------ | | Net cash provided by operating activities | $1,025 | $2,171 | $3,929 | | Net cash used in investing activities | ($276) | ($4,940) | ($666) | | Net cash used in financing activities | ($730) | ($625) | ($355) | | Net increase (decrease) in cash and cash equivalents | $16 | ($3,406) | $2,912 | | Cash and cash equivalents, end of period | $9,003 | $8,987 | $8,286 | Non-GAAP Measures This section provides reconciliations of non-GAAP financial measures, specifically EBITDA and Adjusted EBITDA, to their most directly comparable GAAP measures [Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20EBITDA%20and%20Adjusted%20EBITDA) Q1 2025 EBITDA was $0.16 million and Adjusted EBITDA was $2.069 million, with the latter including a $2.1 million add-back for executive severance expenses Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (in thousands USD) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------- | :------ | :------ | :------ | | Net income (loss) | ($1,598) | $2,106 | $1,469 | | Depreciation | $1,867 | $1,802 | $1,800 | | EBITDA | $160 | $4,002 | $3,355 | | Special items | $1,909 | $11 | ($252) | | Adjusted EBITDA | $2,069 | $4,013 | $3,103 | - Special items for Q1 2025 include a **$2.1 million** add-back for Mr. Ballard's severance expenses and a subtraction of **$0.1 million** for a property damage settlement gain[23](index=23&type=chunk) Corporate Information This section provides details regarding the company's conference call, a brief overview of Stabilis Solutions, cautionary statements, and investor contact information [First Quarter 2025 Conference Call and Webcast](index=3&type=section&id=First%20Quarter%202025%20Conference%20Call%20and%20Webcast) Stabilis Solutions will host a conference call on May 8, 2025, at 9:00 am ET to discuss Q1 2025 financial results and recent events, with webcast access available - Conference call scheduled for **May 8, 2025, at 9:00 am ET** to review Q1 2025 financial results[10](index=10&type=chunk) - Webcast available in the Investor Relations section of the Company's corporate website[11](index=11&type=chunk) [About Stabilis Solutions](index=3&type=section&id=About%20Stabilis%20Solutions) Stabilis Solutions, Inc. is a leading provider of clean fueling, production, storage, and last-mile delivery solutions for high-performance brands - Stabilis Solutions is a leading provider of clean fueling, production, storage, and last mile delivery solutions[12](index=12&type=chunk) [Cautionary Statements Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statements%20Regarding%20Forward-Looking%20Statements) This section cautions that the press release contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially from expectations - Press release includes 'forward-looking statements' subject to risks and uncertainties, and actual results may differ from expectations[13](index=13&type=chunk) - Factors causing differences include future performance, demand/price of LNG, natural gas availability/price, unexpected costs, and general economic conditions[14](index=14&type=chunk) - Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made[15](index=15&type=chunk) [Investor Contact](index=7&type=section&id=Investor%20Contact) Investor contact information is provided, including the Chief Financial Officer's name, phone number, and email address - Investor Contact: **Andrew Puhala**, Chief Financial Officer, **832-456-6502**, **ir@stabilis-solutions.com**[24](index=24&type=chunk)
Stabilis Solutions(SLNG) - 2024 Q4 - Earnings Call Transcript
2025-02-26 20:21
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]