Stabilis Solutions(SLNG) - 2025 Q1 - Quarterly Results

First Quarter 2025 Highlights & Management Commentary This chapter provides an overview of the company's performance and strategic direction for Q1 2025, emphasizing management's perspective on market demand and capital allocation Management Commentary Management highlights strong demand in marine, aerospace, and power generation, with 13% revenue growth in aerospace and marine, while maintaining a strong balance sheet - Strong demand observed across the marine bunkering, commercial aerospace, and power generation sectors[3] - Revenue growth within aerospace and marine markets increased 13% compared to the prior year[3] - Company maintained a strong balance sheet with $12.5 million of cash and availability under credit agreements as of March 31, 2025[3] Strategic and Operational Update Stabilis Solutions is strengthening its competitive position in high-growth markets, with marine, power generation, and aerospace now comprising nearly 70% of total revenue Key Financial Highlights This section presents a summary of key financial metrics for the first quarter of 2025, including revenues, net loss, and Adjusted EBITDA Key Financial Highlights (in millions USD) | Metric | Q1 2025 | | :----- | :------ | | Revenues | $17.3 | | Net loss | ($1.6) | | Adjusted EBITDA | $2.1 | | Cash flow from operations | $1.0 | | Cash and availability (as of March 31, 2025) | $12.5 ($9.0 cash + $3.5 availability) | Market Position and Growth Initiatives The company is strategically enhancing its market position and investing in growth initiatives to capitalize on multi-year demand trends for LNG solutions - Revenue mix in high-growth marine, power generation, and aerospace end-markets increased from 56% to nearly 70% of total revenue since Q1 last year[6] - Company is uniquely positioned as an incumbent small-scale LNG supplier of choice in these markets due to its turnkey solutions offering[6] - Advancing significant operating and capital investments to support future growth while delivering consistent operating cash flow[6] Financial Performance Summary This section provides a concise overview of the company's key financial results for the first quarter of 2025, including revenue, net income, and Adjusted EBITDA Revenue Q1 2025 revenue decreased by 12.3% to $17.3 million year-over-year, primarily due to planned marine customer downtime and a completed industrial project, partially offset by aerospace growth Revenue (in millions USD) | Metric | Q1 2025 | Q1 2024 | Change YoY | | :----- | :------ | :------ | :--------- | | Revenue | $17.3 | $19.77 | -12.3% | - Decrease primarily due to expected downtime with a marine customer and completion of a large industrial customer contract[7] - Partly offset by higher revenues associated with aerospace customers[7] Net Income (Loss) Stabilis Solutions reported a net loss of ($1.6) million, or ($0.09) per diluted share, in Q1 2025, a decline from Q1 2024, driven by lower revenues and $2.1 million in non-recurring expenses Net Income (Loss) (in millions USD, except EPS) | Metric | Q1 2025 | Q1 2024 | | :----- | :------ | :------ | | Net Income (Loss) | ($1.6) | $1.5 | | Diluted EPS | ($0.09) | $0.08 | - Decrease reflects lower net revenues and $2.1 million in non-recurring selling, general, and administration expenses associated with executive transition[8] Adjusted EBITDA Adjusted EBITDA for Q1 2025 was $2.1 million (11.9% of revenue), down from $3.1 million (15.7%) in Q1 2024, primarily due to lower revenues and a completed customer contract Adjusted EBITDA (in millions USD) | Metric | Q1 2025 | Q1 2024 | | :----- | :------ | :------ | | Adjusted EBITDA | $2.1 | $3.1 | | Adjusted EBITDA Margin | 11.9% | 15.7% | - Decrease primarily attributable to lower revenues, including lower equipment and labor revenues on a completed customer contract[9] Consolidated Financial Statements This section presents the company's selected consolidated operating results, balance sheets, and cash flow statements for the reported periods Selected Consolidated Operating Results Q1 2025 selected consolidated operating results show a year-over-year decline in revenues and a shift to an operating loss, driven by increased SG&A expenses and lower overall revenues Selected Consolidated Operating Results (in thousands USD, except EPS) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------- | :------ | :------ | :------ | | Revenues | $17,338 | $17,298 | $19,770 | | Cost of revenues | $12,788 | $12,367 | $13,514 | | Selling, general and administrative expenses | $4,933 | $1,941 | $3,456 | | Income (loss) from operations | ($1,695) | $2,193 | $1,576 | | Net income (loss) | ($1,598) | $2,106 | $1,469 | | Basic and diluted per common share | ($0.09) | $0.11 | $0.08 | Condensed Consolidated Balance Sheets As of March 31, 2025, total assets decreased to $83.06 million from $85.58 million, driven by lower current assets, with a corresponding reduction in total liabilities and stockholders' equity Condensed Consolidated Balance Sheets (in thousands USD) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Total current assets | $15,433 | $17,473 | | Property, plant and equipment, net | $50,289 | $51,728 | | Total assets | $83,060 | $85,584 | | Total current liabilities | $10,356 | $11,627 | | Total liabilities | $17,149 | $18,576 | | Total stockholders' equity | $65,911 | $67,008 | Condensed Consolidated Statements of Cash Flows Q1 2025 operating cash flow was $1.025 million, a decrease from Q1 2024, with net cash outflows from investing and financing activities, resulting in a $16 thousand net increase in cash Condensed Consolidated Statements of Cash Flows (in thousands USD) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------- | :------ | :------ | :------ | | Net cash provided by operating activities | $1,025 | $2,171 | $3,929 | | Net cash used in investing activities | ($276) | ($4,940) | ($666) | | Net cash used in financing activities | ($730) | ($625) | ($355) | | Net increase (decrease) in cash and cash equivalents | $16 | ($3,406) | $2,912 | | Cash and cash equivalents, end of period | $9,003 | $8,987 | $8,286 | Non-GAAP Measures This section provides reconciliations of non-GAAP financial measures, specifically EBITDA and Adjusted EBITDA, to their most directly comparable GAAP measures Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA Q1 2025 EBITDA was $0.16 million and Adjusted EBITDA was $2.069 million, with the latter including a $2.1 million add-back for executive severance expenses Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (in thousands USD) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------- | :------ | :------ | :------ | | Net income (loss) | ($1,598) | $2,106 | $1,469 | | Depreciation | $1,867 | $1,802 | $1,800 | | EBITDA | $160 | $4,002 | $3,355 | | Special items | $1,909 | $11 | ($252) | | Adjusted EBITDA | $2,069 | $4,013 | $3,103 | - Special items for Q1 2025 include a $2.1 million add-back for Mr. Ballard's severance expenses and a subtraction of $0.1 million for a property damage settlement gain[23] Corporate Information This section provides details regarding the company's conference call, a brief overview of Stabilis Solutions, cautionary statements, and investor contact information First Quarter 2025 Conference Call and Webcast Stabilis Solutions will host a conference call on May 8, 2025, at 9:00 am ET to discuss Q1 2025 financial results and recent events, with webcast access available - Conference call scheduled for May 8, 2025, at 9:00 am ET to review Q1 2025 financial results[10] - Webcast available in the Investor Relations section of the Company's corporate website[11] About Stabilis Solutions Stabilis Solutions, Inc. 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 solutions[12] Cautionary Statements Regarding Forward-Looking Statements This section cautions that the press release contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially from expectations - Press release includes 'forward-looking statements' subject to risks and uncertainties, and actual results may differ from expectations[13] - Factors causing differences include future performance, demand/price of LNG, natural gas availability/price, unexpected costs, and general economic conditions[14] - Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made[15] Investor Contact Investor contact information is provided, including the Chief Financial Officer's name, phone number, and email address - Investor Contact: Andrew Puhala, Chief Financial Officer, 832-456-6502, ir@stabilis-solutions.com[24]