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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 Solutions(SLNG) - 2025 Q2 - Quarterly Report
2025-08-06 21:30
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number. 001-40364 STABILIS SOLUTIONS, INC. (Exact name of registrant as specified in its charter) Florida 59-3410234 (State or other jurisdi ...
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
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the transition period from to Commission file number. 001-40364 STABILIS SOLUTIONS, INC. (Exact name of registrant as specified in its charter) Florida 59-3410234 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 11750 Katy Freeway, Suite 900, Houston, TX 77079 (Address of principal executive offices, including zip code) (832) 456-6500 (Registrant's teleph ...
Stabilis Solutions(SLNG) - 2025 Q1 - Quarterly Results
2025-05-07 20:17
Exhibit 99.1 STABILIS SOLUTIONS ANNOUNCES FIRST QUARTER 2025 RESULTS Houston, May 7, 2025 — Stabilis Solutions, Inc., ("Stabilis" or the "Company") (Nasdaq: SLNG), a leading provider of clean fueling, production, storage, and last mile delivery solutions for many of the world's most recognized, high-performance brands, today announced financial results for the first quarter ended March 31, 2025. FIRST QUARTER 2025 HIGHLIGHTS MANAGEMENT COMMENTARY "During the first quarter, our team continued to make progres ...
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]
Stabilis Solutions(SLNG) - 2024 Q4 - Annual Results
2025-02-25 23:41
Exhibit 99.1 STABILIS SOLUTIONS ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 RESULTS "Operating cash flow more than doubled on a year-over-year basis in 2024, driven by improved utilization of our Texas LNG liquefaction facility, and revenue growth within our aerospace and marine markets," stated Andy Puhala, Chief Financial Officer. "At year-end, we had $13.3 million in cash and availability under our credit agreements and remain well capitalized to support the business entering 2025 and we are actively eng ...
Stabilis Solutions(SLNG) - 2024 Q4 - Annual Report
2025-02-25 22:13
Revenue Performance - Total revenues for the year ended December 31, 2024, increased by $0.2 million, or 0.2%, compared to the prior year, totaling $73.293 million[187]. - LNG Product revenue decreased by $1.166 million, or 2.0%, to $57.351 million, despite an increase of 8.165 million gallons delivered[187]. - Rental revenue increased by $1.063 million, or 17.1%, to $7.273 million, and service revenue increased by $0.550 million, or 8.0%, to $7.436 million[187]. - Total revenues for 2024 increased to $73,293,000, a slight increase of 0.25% compared to $73,114,000 in 2023[267]. - The United States accounted for $69,007,000 of total revenues in 2024, an increase of 5.8% from $65,487,000 in 2023[319]. - Customer 1 contributed $24,599,000, representing 33.6% of total revenues in 2024, a significant increase from only 0.5% in 2023[323]. Operating Expenses and Income - Operating expenses decreased by $4.019 million, or 5.4%, totaling $69.907 million, with costs of revenues decreasing by $2.850 million, or 5.2%[187]. - Net income for the year was $4.599 million, a significant increase of 3579.2% compared to $125 thousand in the prior year[187]. - Operating expenses decreased to $69,907,000 in 2024, down 5.5% from $73,926,000 in 2023[267]. - Net income for 2024 was $4,599,000, a significant increase from $125,000 in 2023, representing a growth of 3,678%[268]. Cash Flow and Liquidity - Net cash provided by operating activities increased to $13.7 million in 2024 from $6.7 million in 2023, a rise of approximately 104%[207]. - Cash used in investing activities decreased to $8.1 million in 2024 from $8.9 million in 2023, reflecting a reduction of about 9%[209]. - Total cash and cash equivalents at the end of 2024 were $8.9 million, up from $5.4 million at the beginning of the year, marking a net increase of $3.6 million[206]. - The company maintains a revolving credit facility with a maximum amount of $10 million, expiring in June 2026, to support liquidity needs[179]. - The company had $9.3 million in outstanding debt as of December 31, 2024, with $2.4 million due in 2025[204]. - The company has total availability under the Revolving Credit Facility and the AmeriState Secured Term Loan Facility of $4.3 million as of December 31, 2024[204]. Investments and Assets - The company acquired liquefaction assets for $6.0 million, including a 100,000 LNG gallon per day liquefaction train[180]. - Total assets increased to $85,584,000 in 2024, up 5.3% from $81,299,000 in 2023[265]. - Stockholders' equity improved to $67,008,000 in 2024, a rise of 8.5% from $61,812,000 in 2023[265]. - The company’s investment in foreign joint ventures was $11,659,000 in 2024, down from $12,009,000 in 2023, reflecting a decrease of 2.9%[265]. Revenue Recognition and Accounting Policies - LNG Product revenues are recognized upon delivery to the customer, with contracts typically lasting from 1 to 24 months[229]. - Rental revenues are generated from cryogenic equipment rentals, recognized upon completion of the rental period, based on day or monthly rates[230]. - Service revenues come from engineering and field support services, recognized as events are completed or work is done, independent of LNG delivery[231]. - The Company recognizes revenue from contracts with customers disaggregated into LNG Product, rental, service, and other categories[228]. - Revenue from the sale of LNG is recognized when the customer obtains control of the asset, primarily considering legal title transfer and physical delivery[297]. Debt and Interest Obligations - The company expects total interest payment obligations of approximately $0.5 million for the year ending December 31, 2025[215]. - Total interest expense decreased from $509,000 in 2023 to $300,000 in 2024, reflecting lower interest on secured term notes and related party loans[348]. Tax and Compliance - Income tax expense for the year ended December 31, 2024, totaled $485,000, compared to $244,000 for 2023, reflecting a significant increase[360]. - The company had no uncertain tax positions requiring recognition as of December 31, 2024, and 2023[300]. Other Financial Metrics - The company recorded bad debt expense of $0.1 million for the year ended December 31, 2024, compared to $0.0 million for 2023, indicating a slight increase in credit losses[287]. - The Company has a cumulative translation adjustment of $0.6 million recorded as Accumulated Other Comprehensive Income (Loss) due to foreign currency translation[249]. - The fair value of the Company's fixed and variable rate debt was estimated to approximate the carrying value of $8.6 million at December 31, 2024[306]. - The fair value of natural gas derivatives at the end of 2024 was $207,000, compared to none in 2023[324].