Revenue Performance - Revenues for the three months ended March 31, 2024, decreased by $7.1 million, or 26%, to $19.77 million compared to $26.84 million in the prior year quarter [81]. - LNG Product revenue decreased by $6.49 million, or 29.6%, from $21.91 million in the prior year quarter to $15.41 million in the current quarter [82]. Cost and Income - The cost of revenues decreased by $6.76 million, or 33%, from $20.27 million in the prior year quarter to $13.51 million in the current quarter, representing 68% of revenue [83]. - Net income for the current quarter was $1.47 million, an increase of 35.5% compared to $1.08 million in the prior year quarter [82]. - Interest expense, net decreased significantly from $150,000 in the prior year quarter to $4,000 in the current quarter [89]. Cash Flow and Financing - Net cash provided by operating activities was $3.9 million for the three months ended March 31, 2024, compared to $0.1 million for the same period in 2023, reflecting an increase of $3.8 million [97]. - Net cash used in investing activities decreased to $0.7 million for the three months ended March 31, 2024, from $3.7 million in the same period in 2023, a reduction of $3.1 million [98]. - Net cash used in financing activities was $0.4 million for the three months ended March 31, 2024, down from $1.0 million in the same period in 2023, a decrease of $0.6 million [99]. - The company has a three-year Revolving Credit Facility with a maximum amount of $10 million, with no amounts drawn as of March 31, 2024 [93]. - The company has total availability under the Revolving Credit Facility and the Ameristate Secured Term Loan Facility of $4.3 million as of March 31, 2024 [94]. - Management believes the business will generate sufficient cash flows to fund operations for the next twelve months, but additional financing may be needed [95]. Capital Expenditures and Investments - Capital expenditures for the three months ended March 31, 2024, were $0.9 million, primarily for the purchase of additional liquefaction assets [101]. - The company had purchase orders open of approximately $2.3 million related to capital expenditures as of March 31, 2024 [101]. - The company filed a shelf registration statement allowing it to issue up to $100.0 million in securities to raise capital for various needs [102]. Contracts and Authorizations - The company entered into a multi-year contract to supply high-purity rocket propellant, estimating a significant portion of the U.S. market for this product [75]. - A two-year marine bunkering contract was secured to deliver an estimated 22 million gallons of LNG per year to a cruise industry customer [76]. - The company received DOE authorization to export LNG to all free trade and non-free trade countries for up to 51.75 billion cubic feet per year, valid for 28 years [77]. Asset Management - The company recorded a gain on disposal of assets of $0.1 million in the current quarter [88]. - As of March 31, 2024, the company had $8.3 million in cash and cash equivalents and $9.2 million in outstanding debt [94]. - The company had no off-balance sheet arrangements that could materially affect its financial position as of March 31, 2024 [103].

Financial Performance - Stabilis Solutions reported a net income of $1.5 million for Q1 2024, representing a 36% increase year-over-year[5] - Revenues for Q1 2024 were $19.8 million, compared to $26.8 million in Q1 2023[15] - Basic and diluted net income per common share for Q1 2024 was $0.08, consistent with Q4 2023[15] - Net income for the three months ended March 31, 2024, was $1,469 million, an increase of 3.3% from $1,422 million in the previous quarter and a significant increase from $1,084 million in the same period last year[19] - EBITDA for the same period was $3,355 million, slightly up from $3,340 million in the previous quarter and up from $3,285 million year-over-year[21] - Adjusted EBITDA for Q1 2024 was $3,103 million, compared to $2,900 million in Q4 2023, reflecting a 7% increase, but down from $3,454 million in Q1 2023[21] Cash Flow and Liquidity - Cash flow from operations reached $3.9 million, up from $0.1 million year-over-year[5] - The company had $12.6 million in cash and available liquidity under credit agreements, with a trailing twelve-month net leverage ratio of 0.1x as of March 31, 2024[6] - Net cash provided by operating activities reached $3,929 million, a substantial increase from $1,332 million in the previous quarter and $93 million in the same period last year[19] - The company reported a net cash increase of $2,912 million for the quarter, compared to a decrease of $4,590 million in the same period last year[19] - Cash and cash equivalents at the end of the period were $8,286 million, up from $5,374 million at the end of the previous quarter and $6,861 million a year ago[19] Operational Highlights - LNG volumes delivered increased by 8% compared to the previous year, contributing to the strong performance[5] - The company successfully transitioned to longer-term customer relationships, enhancing asset utilization and cash flow predictability[6] - Stabilis' LNG bunkering operations for Carnival Corporation marked the first LNG bunkering operation in Galveston, Texas[6] - The clean fuel solutions sector generated 25% of Stabilis' revenues in 2023, with expectations for growth in the coming decade[6] Equity and Expenditures - Total stockholders' equity increased to $63.2 million as of March 31, 2024, up from $61.8 million at the end of 2023[17] - The company incurred $873 million in capital expenditures during the quarter, down from $1,270 million in the previous quarter and $3,727 million in the same period last year[19] Special Items and Expenses - Special items for Q1 2024 included a subtraction of $252 million related to unrealized gains on natural gas derivatives[21] - The company experienced a bad debt expense of $168 million in Q1 2024, compared to no bad debt expense in the previous quarter and the same period last year[19] - The company’s accounts receivable increased by $1,964 million during the quarter, compared to a decrease of $1,617 million in the previous quarter[19]

Stabilis Solutions, Inc. (NASDAQ:SLNG) Q4 2023 Results Conference Call March 7, 2024 9:00 AM ET Company Participants Westy Ballard - President, CEO Andy Puhala - SVP, CFO Conference Call Participants Martin Malloy - Johnson Rice Barry Haimes - Sage Asset Management Bill Dezellem - Titan Capital Operator Welcome to the Stabilis Solutions Fourth Quarter and Full Year 2023 Results Conference Call. [Operator Instructions]. I would now like to turn the call over to Andy Puhala, Chief Financial Officer. Mr. Puha ...

Revenue Performance - LNG Product revenue decreased by $24.6 million, or 29.6%, to $58.5 million in 2023 from $83.1 million in 2022[182] - Total revenues fell by $25.7 million, or 26%, from $98.8 million in 2022 to $73.1 million in 2023[182] - The company delivered 12.7 million fewer gallons of LNG in 2023 compared to the previous year, resulting in a revenue reduction of $16.5 million[184] - Total revenues for 2023 were $73,114,000, a decrease of 26% compared to $98,823,000 in 2022[261] - LNG Product revenues decreased to $58.5 million in 2023 from $83.1 million in 2022, representing a decline of 29.6%[310] - Rental revenues fell to $6.2 million in 2023, down 52.5% from $13.1 million in 2022[310] - Service revenues increased significantly to $6.9 million in 2023, compared to $1.9 million in 2022, marking a growth of 254.5%[310] Operating Expenses and Income - Operating expenses decreased by $26.5 million, or 26.4%, from $100.4 million in 2022 to $73.9 million in 2023[182] - The net income for 2023 was $125,000, a significant improvement from a net loss of $3,186,000 in 2022[264] - Net income from continuing operations improved to $0.1 million in 2023, compared to a loss of $1.2 million in 2022[182] - The company reported a basic net income per share of $0.01 for 2023, compared to a loss of $0.17 per share in 2022[262] Cash Flow and Investments - Net cash provided by operating activities was $6.7 million for the year ended December 31, 2023, down from $14.7 million in 2022, a decrease of $8.0 million[203] - Net cash used in investing activities increased to $8.9 million in 2023 from $1.9 million in 2022, primarily due to the acquisition of liquefaction assets[204] - The company reported a decrease in cash and cash equivalents, ending 2023 with $5,374 million, down from $11,451 million at the beginning of the year[271] Debt and Financing - Total outstanding debt as of December 31, 2023, was $9.6 million, with $1.8 million due in 2024[200] - The Company expects total interest payment obligations of approximately $0.5 million for the year ending December 31, 2024[210] - The Company is evaluating additional financing alternatives to support growth, but there is no guarantee that such financing will be available on favorable terms[201] - The Company had total indebtedness of $9.0 million as of December 31, 2023, with expected maturities totaling $8.998 million over the next five years[338][339] Asset Management - Total current assets decreased to $14,972,000 in 2023 from $32,217,000 in 2022, a decline of 53.6%[259] - The company’s total stockholders' equity increased to $61,812,000 in 2023 from $59,867,000 in 2022, an increase of 3.2%[259] - The net property, plant, and equipment increased from $47,669,000 in 2022 to $49,479,000 in 2023, reflecting a growth of about 3.8%[318] Risk Management - The Company manages commodity price risk through contract pricing that mirrors supply cost volatility, with certain natural gas derivative instruments in place as of December 31, 2023[243] - The Company has not designated its derivative instruments as hedges under U.S. GAAP, with all resulting gains and losses included in the Consolidated Statements of Operations[239] Regulatory and Compliance - The Company received DOE approval to export up to 51.75 billion cubic feet of LNG per year for 28 years, starting from Q3 2022[173] - The Company’s revenue recognition practices comply with Accounting Standards Update 2014-09, ensuring accurate depiction of revenue from contracts with customers[223] Joint Ventures and Subsidiaries - BOMAY Electric Industries Company, the joint venture, reported revenues of $102,981,000 in 2023, up from $89,634,000 in 2022, representing a growth of approximately 14.8%[323] - BOMAY's total assets increased significantly from $91,552,000 in 2022 to $138,220,000 in 2023, marking an increase of about 51%[323] Miscellaneous - The Company recorded a gain of $1.2 million from the disposal of fixed assets related to an insurance settlement for assets damaged in a fire[187] - The Company recognized total stock-based compensation costs of $2.1 million for the year ended December 31, 2023, compared to $2.3 million for 2022[361]

Financial Performance - Stabilis Solutions reported a net income of $1.422 million for Q4 2023, compared to a net loss of $0.207 million in Q4 2022[15] - Total revenues for Q4 2023 were $18.049 million, a 17.3% increase from $15.316 million in Q3 2023[15] - Adjusted EBITDA for the full year 2023 was $6.817 million, down from $9.613 million in 2022[15] - EBITDA for the twelve months ended December 31, 2023, was $8,581 million, showing a slight increase from $8,507 million in 2022[21] - Adjusted EBITDA for Q4 2023 was $2,900 million, up from $539 million in Q3 2023, indicating a strong recovery[21] Cash Flow and Liquidity - The company generated $6.7 million in cash flow from operations for the full year 2023[4] - Stabilis had over $11.0 million in cash and available liquidity with a net leverage ratio of 0.6x as of December 31, 2023[4] - Cash and cash equivalents dropped significantly from $11,451 million in 2022 to $5,374 million in 2023, a decrease of about 53%[17] - The company reported a net cash provided by operating activities of $6,712 million for the twelve months ended December 31, 2023, compared to $14,697 million in 2022[19] - The company experienced a cash increase of $460 million in Q4 2023, reversing a decrease of $3,207 million in Q3 2023[19] Assets and Liabilities - Total assets decreased from $96,580 million in 2022 to $81,299 million in 2023, a decline of approximately 15.8%[17] - Total current liabilities decreased from $27,532 million in 2022 to $11,719 million in 2023, a reduction of approximately 57.5%[17] - The total stockholders' equity increased from $59,867 million in 2022 to $61,812 million in 2023, reflecting a growth of about 3.2%[17] Business Operations and Strategy - The marine bunkering business is expected to represent more than one-third of total revenue for the full year 2024[4] - Total sales volumes of LNG to aerospace customers reached approximately 3.4 million gallons in 2023, accounting for 6.8% of total sales volumes[5] - The company invested $10.3 million in total capital expenditures in 2023, including $7.8 million for growth capital related to a new LNG train and marine bunkering equipment[5] - Stabilis commenced LNG fueling operations for Carnival Corporation in December 2023, advancing its marine bunkering strategy[5] - The company anticipates a positive demand trajectory for its business entering 2024, focusing on long-term, take-or-pay contractual revenue[2] - The company plans to continue focusing on operational efficiency and exploring new market opportunities to drive future growth[20]

Stabilis Solutions, Inc. (NASDAQ:SLNG) Q3 2023 Earnings Conference Call November 9, 2023 9:00 AM ET Company Participants Andrew Puhala - Senior Vice President and Chief Financial Officer Westervelt Ballard - President and Chief Executive Officer Conference Call Participants Martin Malloy - Johnson Rice Jeffrey Grampp - Alliance Global Partners Barry Haimes - Sage Asset Management Operator Welcome to the Stabilis Solutions Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised ...

Revenue Performance - LNG Product revenue for Q3 2023 was $12.1 million, a decrease of 44.5% from $21.8 million in Q3 2022[99] - Total revenues for Q3 2023 were $15.3 million, down 40.7% from $25.8 million in Q3 2022[99] - LNG delivered decreased by 3.0 million gallons in Q3 2023 compared to Q3 2022, resulting in a revenue decrease of $4.4 million[100] - Total revenues decreased by $14.2 million, or 20%, to $55.1 million for the nine months ended September 30, 2023, compared to $69.2 million in the prior year[113] - LNG product revenues fell by $14.3 million, or 24.3%, primarily due to a decrease of 8.9 million gallons delivered to customers[112] Cost and Expenses - Cost of revenues decreased by $7.8 million, or 39%, in Q3 2023, with costs as a percentage of revenue at 79% compared to 77% in Q3 2022[101] - Operating expenses decreased by $14.1 million, or 19.8%, totaling $57.0 million, with cost of revenues down by $12.0 million, or 21.9%[113] Net Income and Loss - The company recorded a net loss from continuing operations of $0.2 million in Q3 2023, compared to a net income of $1.0 million in Q3 2022[99] - Net income from continuing operations was a loss of $1.3 million, an improvement of $0.1 million compared to a loss of $1.4 million in the prior year[112] Cash Flow and Capital Expenditures - Cash provided by operating activities was $5.4 million, down from $11.5 million in the prior year, reflecting lower net income and changes in working capital[128] - Capital expenditures for the nine months ended September 30, 2023, were $9.0 million, primarily for additional liquefaction assets[132] Debt and Financing - The company has $4.9 million in cash and cash equivalents and $10.6 million in outstanding debt as of September 30, 2023[125] - The company entered into a three-year Revolving Credit Facility with a maximum amount of $10.0 million, with no amounts drawn as of September 30, 2023[124] Joint Ventures and Other Income - Net equity income from foreign joint ventures increased by 149.1% to $0.3 million in Q3 2023 compared to $0.1 million in Q3 2022[106] - Net equity income from foreign joint ventures increased by $0.4 million, driven by higher sales in the BOMAY joint venture[119] - Interest income for Q3 2023 was $44,000, a significant improvement from an expense of $0.2 million in Q3 2022[107] - The company recorded a gain of $1.0 million from the disposal of fixed assets related to insurance proceeds for assets damaged in a fire[118] Regulatory and Operational Updates - The company received DOE approval to export LNG up to 51.75 billion cubic feet per year for a term of 28 years, but has not yet initiated exports[95] - The company completed gas pretreatment upgrades at the George West facility in August 2023, allowing it to resume full LNG production rates[96] Accounting Policies - The company has not experienced significant changes in its "Critical Accounting Policies and Estimates" during the three and nine months ended September 30, 2023, compared to the previous year[136] - The financial statements have been prepared in accordance with U.S. GAAP, requiring estimates and assumptions that affect reported amounts of assets and liabilities[136] - There is no assurance that actual results will not differ from the estimates made by the company[136]

Financial Data and Key Metrics Changes - For Q2 2023, Stabilis reported a net loss of $2.2 million on total revenue of $12.9 million, compared to a net loss of $2.2 million on revenue of $23.2 million in Q2 2022 and a net income of $1.1 million on revenue of $26.8 million in Q1 2023 [19][20] - Adjusted EBITDA was a loss of $0.1 million in Q2 2023, down from a profit of $1.4 million in Q2 2022 and $3.5 million in Q1 2023 [20][21] - The weighted average cost of gas was $2.60 per MMBtu during Q2 2023, significantly lower than $7.05 during the same quarter last year [20] Business Line Data and Key Metrics Changes - Marine revenue increased to more than $16 million, representing 21% of total revenue, up from 5% in the prior year period [14] - The decline in revenue was attributed to lower pass-through natural gas prices and changes in feed gas composition at the George West plant, which reduced revenue by $1.4 million [21][23] Market Data and Key Metrics Changes - The U.S. is positioned to become a leader in LNG vessel fueling due to an abundance of inexpensive shale gas, with expectations for the addressable market to scale to over 380 ships by 2024, up from less than 70 in 2021 [6] Company Strategy and Development Direction - The company aims to protect and optimize its core industrial business while accelerating growth in marine vessel bunkering and export demand cycles [13] - Stabilis is focused on leveraging its business model to expand and optimize its portfolio of owned and third-party assets for long-term growth [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resolving issues at the George West facility, which had a $1.2 million EBITDA drag in Q2 2023, and expects production to return to historic levels [32] - The company is optimistic about potential contracts that could improve performance in the second half of the year, although specific guidance was not provided [32] Other Important Information - Stabilis generated $3.8 million of operating cash flow in Q2 2023 and ended the quarter with total cash and equivalents of $8.1 million [17][28] - The company arranged a new $10 million secured revolving credit facility, enhancing liquidity and operational flexibility [26][27] Q&A Session Summary Question: Expectations for profitability in the second half of the year - Management indicated confidence in resolving issues at the George West facility and expects production to return to historic levels, which could improve EBITDA significantly [32] Question: Potential milestones for growth platforms - Key milestones include capital expenditures and contract awards, with management optimistic about upcoming contracts that could support capital investments [34][35] Question: Update on the space market and export license plans - The space market is seen as exciting but currently lumpy, while management is bullish on export opportunities, particularly in Europe, despite current inventory levels [58][60]

Financial Performance - Revenues for the three months ended June 30, 2023, decreased by $10.2 million, or 44.2%, to $12.9 million compared to $23.2 million in the prior year quarter[88]. - The company reported a net loss from continuing operations of $2.2 million for the three months ended June 30, 2023, compared to a net loss of $2.1 million in the prior year quarter, reflecting a 4.8% increase in loss[88]. - For the six months ended June 30, 2023, revenues decreased by $3.7 million, or 8.4%, to $39.7 million compared to $43.4 million in the prior year[100]. Cost Management - Cost of revenues for the same period decreased by $9.0 million, or 45.8%, to $10.6 million, representing 82% of revenues in the current quarter compared to 84% in the prior year quarter[90]. - Operating expenses for the six months ended June 30, 2023, decreased by $5.1 million, or 11.0%, to $41.2 million, with cost of revenues at 78% of revenues compared to 81% in the prior year[101]. - Selling, general and administrative expenses increased by $0.4 million due to higher compensation and professional services costs[104]. - Depreciation expense decreased by 11% in the Current Year due to assets reaching the end of their depreciable lives[105]. Cash Flow and Investments - Net cash provided by operating activities was $3.9 million for the six months ended June 30, 2023, down from $4.6 million in the same period in 2022[116]. - Net cash used in investing activities increased to $5.2 million in the Current Year, primarily due to cash paid for additional assets[117]. - Capital expenditures for the six months ended June 30, 2023, were $5.2 million, mainly for additional liquefaction assets[120]. Debt and Financing - The Company had $8.1 million in cash and cash equivalents and $10.2 million in outstanding debt as of June 30, 2023[113]. - The Company has a $10.0 million secured term loan facility with AmeriState Bank, with $1.0 million available for future draws[112]. - The Company filed a Shelf Registration Statement allowing it to issue up to $100.0 million in securities to raise capital[121]. Operational Highlights - The company has one reporting segment following the exit from Brazil Operations, which was sold on October 31, 2022[86]. - The company operates liquefiers with a production capacity of 100,000 LNG gallons per day in Texas and 30,000 LNG gallons per day in Louisiana[82]. - The company provides a "virtual natural gas pipeline" through turnkey LNG transportation and logistics services across North America[83]. - Natural gas prices decreased in the Current Year compared to the Prior Year, leading to fewer gallons of LNG delivered[102]. - The company experienced a gain of $0.2 million on the change in unrealized losses associated with natural gas derivatives in the current quarter, compared to a loss of $0.9 million in the prior year quarter[92]. - The Company reported a gain of $0.1 million on unrealized losses associated with natural gas derivatives, compared to a loss of $0.9 million in the Prior Year[103]. - Net equity income from foreign joint venture operations increased by 33.2% to $1.0 million for the six months ended June 30, 2023, compared to $0.8 million in the prior year[100].

Financial Data and Key Metrics Changes - The company reported revenues of $26.8 million for Q1 2023, which is 32% higher than the same quarter last year but down 9% from Q4 2022 [119] - Net income from continuing operations was $1.1 million in the quarter compared to a net loss of $0.4 million in the year-ago quarter [26] - Adjusted EBITDA for the quarter was $3.5 million, up from $2 million in the year-ago quarter but down from $3.9 million in Q4 2022 [26] Business Line Data and Key Metrics Changes - The marine business contributed approximately 28% of total revenue for the quarter, a significant increase from 4% in Q1 2022 [22] - The industrial business showed strong demand across multiple sectors, particularly in oil and gas, agriculture, and remote power [108] - Aerospace revenue accounted for a little over 5% of total revenue, down about 300 basis points compared to the first quarter of last year [129] Market Data and Key Metrics Changes - The U.S. LNG bunkering market is still in its early stages but is expected to grow significantly due to the International Maritime Organization's mandate to lower sulfur emissions [110] - The company is positioned to capitalize on the increasing demand for LNG as a cleaner fuel alternative, especially in the maritime industry [109] Company Strategy and Development Direction - The company is exploring brown and greenfield expansion opportunities across various U.S. geographies, not limited to the Gulf of Mexico [15] - There is a focus on expanding liquefaction capacity and infrastructure to meet anticipated demand while ensuring capital is deployed thoughtfully [124] - The company aims to expand its offerings into additional clean emerging fuels, indicating a long-term growth strategy [113] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute growth initiatives, citing sufficient liquidity and access to various capital sources [11] - The management acknowledged that the marine business may experience uneven results in the near term as vessel operators finalize their fueling strategies [122] - There is optimism regarding the export business, with the potential for significant volumes as geopolitical factors and natural gas prices evolve [24] Other Important Information - The company has made considerable investments in liquefaction, bunkering, and storage assets to support anticipated growth [11] - The company is well-positioned to be a premier bunkering hub in the U.S. due to favorable competitive positioning in natural gas [116] Q&A Session Summary Question: What caused the uneven results in projects? - Management indicated that the uneven results are due to additional expenses incurred as projects come online and the foundational work being laid for future growth [28] Question: Is bunkering profitable yet? - Management confirmed that bunkering is profitable today and aims to continue this trend as the business scales [16] Question: What percentage of revenues came from aerospace during the quarter? - Aerospace accounted for a little over 5% of total revenues, down about 300 basis points from the previous year [129] Question: How many new ships are expected in the market next year? - Management noted that the number of LNG-fueled vessels is expected to grow significantly, with a sevenfold increase anticipated over the next four years [63] Question: How does the company view the regulatory environment around IMO 2020? - Management acknowledged that while shipping companies should have reacted sooner to the regulations, the reality is that many are now beginning to make the necessary transitions [40]