Stabilis Solutions(US:SLNG)2024-11-06 22:32Revenue Performance - Total revenues for the three months ended September 30, 2024, increased by $2.3 million, or 15%, to $17.6 million compared to $15.3 million in the prior year quarter[91]. - LNG Product revenue rose by $2.1 million, or 17.6%, driven by an increase in gallons delivered and customer pricing mix[91]. - Total revenues for the nine months ended September 30, 2024, increased by $0.9 million, or 2%, to $55.995 million compared to $55.065 million in the prior year[104]. - LNG product revenues decreased by $300 thousand, or 0.7%, to $44.295 million, while rental and service revenues increased by 17.9% and 11.7%, respectively[103]. Operating Expenses - Operating expenses increased by $1.6 million, or 9.9%, with cost of revenues accounting for $12.6 million, representing 72% of total revenue[91][93]. - Operating expenses decreased by $2.771 million, or 4.9%, to $54.246 million, primarily due to a $3.209 million decrease in the cost of revenues[103]. - Selling, general, and administrative expenses increased by $33,000, primarily due to higher compensation costs[97]. Net Income - Net income for the current quarter was $997,000, compared to a net loss of $207,000 in the prior year quarter, marking a significant turnaround[91]. - Net income for the nine months ended September 30, 2024, was $2.493 million, compared to a net loss of $1.297 million in the prior year[103]. Cash Flow and Capital Expenditures - Cash provided by operating activities totaled $11.522 million, an increase of $6.142 million compared to $5.380 million in the prior year[118]. - Capital expenditures for the nine months ended September 30, 2024, were $3.6 million, primarily for liquefaction assets and upgrades[122]. - Future capital expenditures will depend on business needs and availability of capital, with approximately $6 million in open purchase orders related to capital expenditures[122]. Financial Position - The company has $12.4 million in cash and cash equivalents and $9.8 million in outstanding debt as of September 30, 2024[116]. - The company has a three-year Revolving Credit Facility with a maximum amount of $10 million, with no amounts drawn as of September 30, 2024[115]. - The company filed a Shelf Registration Statement allowing it to issue up to $100 million in securities to raise capital for various needs[123]. - As of September 30, 2024, there were no off-balance sheet arrangements that could materially affect the company's financial position or results[125]. Joint Ventures and Other Income - Net equity income from foreign joint ventures increased by $232,000, or 81.7%, reflecting improved profitability in joint ventures[91][99]. - Interest income increased by 35% to $81,000, reflecting stable cash balances during the periods[91][99]. - The company recorded a loss of $13,000 from changes in unrealized gains/losses on natural gas derivatives, compared to a gain of $267,000 in the prior year quarter[96]. Regulatory Approvals and Operations - The company received DOE approval 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[87]. - The company operates liquefiers with a total production capacity of 130,000 LNG gallons per day across Texas and Louisiana[83]. Accounting Policies - The financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that impact reported assets, liabilities, revenues, and expenses[126]. - There have been no significant changes in the company's critical accounting policies and estimates during the three and nine months ended September 30, 2024, compared to the previous annual report[126].