Stabilis Solutions(SLNG) - 2024 Q2 - Quarterly Report

Revenue Performance - Revenues for the Current Quarter increased by $5.7 million, or 44%, compared to the Prior Year Quarter, totaling $18.6 million[82] - LNG Product revenue rose by $4.1 million, or 38.4%, driven by increased gallons delivered and pricing adjustments[82] - Increased rental revenue rose by 58.2% to $1.7 million, and service revenue increased by 53.9% to $1.7 million compared to the Prior Year Quarter[82] - Total revenues for the six months ended June 30, 2024, decreased by $1.4 million, or 4%, compared to the prior year, primarily due to lower natural gas prices and decreased revenues from minimum purchase contracts[89] - LNG product revenues decreased by $2.4 million, or 7.5%, to $30.0 million, while rental revenues increased by $545,000, or 16.5%, to $3.9 million[88] Cost and Expenses - Cost of revenues increased by $3.0 million, or 28%, with costs as a percentage of revenue decreasing from 82% to 73%[82] - Operating expenses decreased by $4.3 million, or 10.5%, to $36.9 million, with cost of revenues down by $3.8 million, or 12%, to $27.1 million[88] Net Income - Net income for the Current Quarter was $27 thousand, a significant improvement from a net loss of $2.2 million in the Prior Year Quarter[82] - Net income for the six months ended June 30, 2024, was $1.5 million, compared to a net loss of $1.1 million in the prior year, representing an increase of $2.6 million[88] Cash Flow and Capital Expenditures - Cash provided by operating activities increased by $5.1 million to $9.0 million for the six months ended June 30, 2024, compared to $3.9 million in the same period in 2023[98] - Capital expenditures for the six months ended June 30, 2024, were $2.2 million, primarily for liquefaction assets and upgrades[102] - Future capital expenditures will depend on business needs and availability of capital, with approximately $5.3 million in open purchase orders related to capital expenditures[102] Debt and Liquidity - The company has $11.5 million in cash and cash equivalents and $8.7 million in outstanding debt as of June 30, 2024[96] - The company has a three-year Revolving Credit Facility with a maximum amount of $10.0 million, with no amounts drawn as of June 30, 2024[95] Regulatory and Operational Updates - The Company received DOE approval to export LNG up to 51.75 billion cubic feet per year, with a term of 28 years[80] - The Company anticipates meeting initial export requirements for both FTA and non-FTA countries within the specified timeframes[80] - The Company operates liquefiers with a total production capacity of 130,000 LNG gallons per day across Texas and Louisiana[76] Other Financial Information - Interest income for the Current Quarter was $28 thousand, compared to a net interest expense of $147 thousand in the Prior Year Quarter[86] - The company recorded a gain of $0.1 million from the disposal of assets during the Current Quarter[85] - The company recorded a gain of $0.3 million in unrealized gain/loss on natural gas derivatives for the current year, compared to $0.1 million in the prior year[91] Accounting Policies - The company's financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that impact reported amounts of assets and liabilities[105] - There have been no significant changes in the company's "Critical Accounting Policies and Estimates" during the three and six months ended June 30, 2024, compared to the previous annual report[105] - As a "smaller reporting company," the company is not required to provide quantitative and qualitative disclosures about market risk[107]