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Stabilis Solutions(SLNG) - 2024 Q4 - Annual Results

Executive Summary & Business Update Fourth Quarter and Full Year 2024 Highlights Stabilis Solutions delivered strong Q4 and FY2024 results, marked by increased profitability, margin expansion, and cash generation Q4 2024 and Full Year 2024 Financial Highlights | Metric | Q4 2024 (Millions) | FY 2024 (Millions) | | :-------------------------- | :----------------- | :----------------- | | Net income | $2.1 | $4.6 | | Adjusted EBITDA | $4.0 | $11.8 | | Adjusted EBITDA margin | 23.2% | 16.1% | | Cash flow from operations | $2.2 | $13.7 | | Cash & availability (YE) | $13.3 | $13.3 | - Revenue mix in high-growth marine and aerospace end-markets increased from 14% of total revenue to nearly 50% in Q4 20246 - During 2024, the Company invested $7.4 million in growth capital, representing more than 80% of its total capital investment for the year, focusing on expanding capabilities in Marine and Aerospace end-markets6 Management Commentary Management noted strong 2024 performance with margin expansion, increased cash generation, and improved profitability from asset optimization - Stabilis achieved year-over-year margin expansion, increased cash generation, and improved profitability in 2024, prioritizing asset optimization and system efficiency2 - Operating cash flow more than doubled in 2024, driven by improved utilization of the Texas LNG liquefaction facility and revenue growth in aerospace and marine markets2 - At year-end, the company had $13.3 million in cash and availability under credit agreements, remaining well capitalized for 2025 and actively seeking strategic growth capital2 Strategic and Operational Update Stabilis strengthened its competitive position in marine and aerospace markets, increasing revenue mix and prioritizing growth-oriented capital - Stabilis' revenue mix in high-growth marine and aerospace end-markets increased from 14% to nearly 50% in Q4 2024, positioning the company as a preferred small-scale LNG supplier6 - Over 80% of 2024 capital investments ($7.4 million) were growth-oriented, aimed at enhancing manufacturing and logistics capabilities for commercial expansion in marine and aerospace markets6 About Stabilis Solutions Stabilis Solutions is a leading provider of clean fueling, production, storage, and last-mile delivery solutions for high-performance brands - Stabilis Solutions is a leading provider of clean fueling, production, storage, and last mile delivery solutions9 Financial Results Selected Consolidated Operating Results Stabilis Solutions reported significant Q4 and FY2024 operating improvements, with full-year net income reaching $4.6 million and Adjusted EBITDA doubling Selected Consolidated Operating Results (Unaudited, in thousands, except per share data) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------------ | :--------- | :--------- | :--------- | :--------- | | Revenues | $17,298 | $18,049 | $73,293 | $73,114 | | Total operating expenses | $15,661 | $16,909 | $69,907 | $73,926 | | Income from operations | $2,193 | $1,517 | $4,950 | $879 | | Net income | $2,106 | $1,422 | $4,599 | $125 | | Basic and diluted per common share | $0.11 | $0.08 | $0.25 | $0.01 | | EBITDA | $4,002 | $3,340 | $12,118 | $8,581 | | Adjusted EBITDA | $4,013 | $2,900 | $11,808 | $6,817 | Consolidated Balance Sheets As of December 31, 2024, Stabilis Solutions reported increased total assets to $85.6 million and stockholders' equity to $67.0 million Consolidated Balance Sheet Highlights (Unaudited, in thousands) | Asset/Liability/Equity | December 31, 2024 | December 31, 2023 | | :---------------------------------- | :---------------- | :---------------- | | Cash and cash equivalents | $8,987 | $5,374 | | Total current assets | $17,473 | $14,972 | | Property, plant and equipment, net | $51,728 | $49,479 | | Total assets | $85,584 | $81,299 | | Total current liabilities | $11,627 | $11,719 | | Total liabilities | $18,576 | $19,487 | | Total stockholders' equity | $67,008 | $61,812 | Consolidated Statements of Cash Flows For FY2024, net cash from operations more than doubled to $13.7 million, while investing and financing activities resulted in outflows Consolidated Statements of Cash Flows Highlights (Unaudited, in thousands) | Cash Flow Activity | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :-------------------------------------- | :--------- | :--------- | :--------- | :--------- | | Net cash provided by operating activities | $2,171 | $1,332 | $13,693 | $6,712 | | Net cash provided by (used in) investing activities | $(4,940) | $72 | $(8,120) | $(8,910) | | Net cash used in financing activities | $(625) | $(941) | $(1,914) | $(3,884) | | Net increase (decrease) in cash and cash equivalents | $(3,406) | $460 | $3,613 | $(6,077) | | Cash and cash equivalents, end of period | $8,987 | $5,374 | $8,987 | $5,374 | Non-GAAP Financial Measures Management uses EBITDA and Adjusted EBITDA as supplemental performance measures, with FY2024 Adjusted EBITDA increasing to $11.8 million - EBITDA is defined as Earnings from continuing operations before Interest, Taxes, Depreciation and Amortization. Adjusted EBITDA is further adjusted for certain special items like unrealized gain/loss on natural gas derivatives and property insurance claims1920 EBITDA and Adjusted EBITDA Reconciliation (Unaudited, in thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :-------------------------- | :--------- | :--------- | :--------- | :--------- | | Net income | $2,106 | $1,422 | $4,599 | $125 | | Depreciation | $1,802 | $1,872 | $7,146 | $7,878 | | Interest expense, net | $(7) | $26 | $(112) | $334 | | Income tax expense | $101 | $20 | $485 | $244 | | EBITDA | $4,002 | $3,340 | $12,118| $8,581 | | Special items* | $11 | $(440) | $(310) | $(1,764) | | Adjusted EBITDA | $4,013 | $2,900 | $11,808| $6,817 | Additional Information Conference Call and Webcast Details Stabilis Solutions will host a conference call on February 26, 2025, at 9:00 am ET to review financial results - A conference call to discuss Q4 and FY 2024 results will be held on February 26, 2025, at 9:00 am ET, with webcast available on the Company's investor relations website478 - Domestic Live: 800-267-6316, International Live: 203-518-9783, Conference ID: SLNGQ424. Replay available through March 5, 20259 Cautionary Statements Regarding Forward-Looking Statements This section contains forward-looking statements, cautioning that actual results may differ due to various factors - The press release contains forward-looking statements, and actual results may differ from expectations due to factors such as future LNG demand, natural gas availability and price, unexpected costs, and general economic conditions1011 - Readers are cautioned not to place undue reliance on forward-looking statements, and Stabilis does not undertake any obligation to publicly update or revise them, except as required by law12 Investor Contact Andrew Puhala, Chief Financial Officer, serves as the investor contact for Stabilis Solutions - Investor Contact: Andrew Puhala, Chief Financial Officer, 832-456-6502, ir@stabilis-solutions.com21