Genie Energy(GNE) - 2024 Q3 - Quarterly Results

Financial Performance - Third quarter 2024 revenue decreased 10.5% to $111.9 million from $125.0 million in Q3 2023[4] - Adjusted EBITDA decreased 26.7% to $13.6 million from $18.5 million year-over-year[4] - Genie Retail Energy's revenue decreased 12.1% to $105.8 million, with income from operations down 31.6% to $15.0 million[9] - Gross profit decreased 7.7% to $37.9 million, while gross margin increased to 33.9% from 32.9%[4] - Net income attributable to Genie common stockholders decreased 29.5% to $10.2 million, with diluted earnings per share at $0.38 compared to $0.53[4] - Total revenues for the three months ended September 30, 2024, were $111,917, a decrease of 10.5% compared to $125,049 in the same period of 2023[24] - Net income from continuing operations for the nine months ended September 30, 2024, was $28,189, down 26% from $38,005 in 2023[25] - Gross profit for the three months ended September 30, 2024, was $37,907, a decline of 7.1% from $41,082 in the same period of 2023[24] - Operating expenses increased to $25,160 for the three months ended September 30, 2024, compared to $23,196 in 2023, reflecting a rise of 8.5%[24] - The company reported a net income attributable to Genie Energy Ltd. common stockholders of $10,199 for the three months ended September 30, 2024, down from $14,459 in 2023, a decrease of 29.1%[24] - Non-GAAP net income attributable to common stockholders for Q3 2024 was $10.9 million, down from $14.5 million in Q3 2023, indicating a decrease of about 24.8%[43] - Diluted earnings per share for Q3 2024 were $0.38, compared to $0.53 in Q3 2023, representing a decline of approximately 28.3%[43] Cash and Assets - Cash and cash equivalents increased to $191.7 million at September 30, 2024, from $178.3 million at June 30, 2024[5] - Total assets increased to $341.681 million as of September 30, 2024, compared to $330.555 million at December 31, 2023, reflecting a growth of approximately 3.4%[21] - Current assets decreased slightly to $227.663 million from $229.833 million, a decline of about 0.5%[21] - Cash and cash equivalents rose to $136.295 million from $107.609 million, representing an increase of approximately 26.7%[21] - Total liabilities decreased to $141.395 million from $146.047 million, a reduction of about 3.6%[22] - Retained earnings increased significantly to $81.959 million from $60.196 million, marking a growth of approximately 36.2%[23] - Trade accounts receivable decreased to $50.335 million from $61.909 million, a decline of about 18.7%[21] - Accrued expenses decreased to $44.211 million from $49.389 million, a reduction of approximately 10.4%[22] - The company reported a decrease in inventory from $14.598 million to $8.513 million, a decline of about 41.8%[21] - The company has no current notes payable as of September 30, 2024, compared to previous liabilities[22] Strategic Developments - The company is entering the California gas market to diversify its geographic footprint[2] - Genie Solar expanded its development pipeline, gaining site control for six additional projects[3] Shareholder Actions - Genie repurchased approximately 123,000 shares of its Class B Common stock for $2.0 million during Q3 2024[5] - Dividends declared per common share remained steady at $0.075 for both the three months ended September 30, 2024, and 2023[24] Operational Insights - Adjusted EBITDA is disclosed as a non-GAAP financial measure, providing insights into the company's core operational strengths[26] - The company continues to exclude non-cash charges from Adjusted EBITDA to provide clearer insights into operational performance[39] - Management emphasizes the importance of non-GAAP measures for better comparability with competitors and historical performance[33] Miscellaneous - Captive insurance liability was $1.0 million in Q3 2024, compared to $0.0 million in Q3 2023, indicating a new expense category[43] - Stock-based compensation for Q3 2024 was $0.6 million, down from $0.8 million in Q2 2023, showing a reduction of 25%[40] - Impairment charges for Q3 2024 were $0.1 million, consistent with the previous quarter, indicating stable asset performance[40] - Income from operations for Q3 2024 was reported at $17.9 million, an increase from $15.0 million in Q2 2023[40] - The weighted average number of shares used in the calculation of diluted earnings per share decreased from 27.4 million in Q3 2023 to 26.9 million in Q3 2024[43] - The weighted-average number of diluted shares used in the calculation of earnings per share was 26,868 for the three months ended September 30, 2024, compared to 27,362 in 2023[24] - The company experienced a net increase in cash, cash equivalents, and restricted cash of $27,618 for the nine months ended September 30, 2024, compared to $41,397 in 2023[25] - Adjusted EBITDA for Q3 2024 was $18.5 million, compared to $15.8 million in Q2 2023, reflecting a growth of approximately 17.1%[40]