Stabilis Solutions(US:SLNG)2025-02-25 22:13Revenue 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].