Genie Energy(US:GNE)2025-05-09 15:38PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Presents the company's unaudited consolidated financial statements for the quarter ended March 31, 2025 Consolidated Balance Sheets Total assets increased to $384.4 million, driven by higher cash, while total equity grew to $187.4 million as of March 31, 2025 Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $112,544 | $104,456 | | Total current assets | $238,508 | $227,447 | | Total assets | $384,378 | $371,275 | | Liabilities & Equity | | | | Total current liabilities | $117,317 | $109,812 | | Total liabilities | $196,988 | $191,724 | | Total equity | $187,390 | $179,551 | Consolidated Statements of Operations Total revenues grew 14.3% year-over-year to $136.8 million, with net income rising to $10.6 million for the first quarter of 2025 Q1 2025 vs. Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $136,807 | $119,688 | | Gross profit | $37,363 | $33,786 | | Income from operations | $12,831 | $9,849 | | Net income attributable to Genie Energy Ltd. | $10,630 | $8,123 | | Diluted EPS | $0.40 | $0.30 | | Dividends declared per common share | $0.075 | $0.075 | Consolidated Statements of Comprehensive Income Comprehensive income increased to $11.1 million in Q1 2025, boosted by a positive foreign currency translation adjustment Comprehensive Income Summary (in thousands) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $10,301 | $8,169 | | Foreign currency translation adjustments | $1,124 | $(5,082) | | Comprehensive income attributable to Genie Energy Ltd. | $11,084 | $3,041 | Consolidated Statements of Equity Total equity rose to $187.4 million, reflecting net income partially offset by dividends and stock repurchases - Key changes in equity for Q1 2025 included $10.6 million in net income attributable to stockholders, $2.0 million in dividends paid, and $1.9 million in Class B common stock repurchases under the buyback program17 Consolidated Statements of Cash Flows Net cash from operations was $15.3 million, contributing to a net increase in cash of $8.8 million for Q1 2025 Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $15,349 | $12,926 | | Net cash used in investing activities | $(2,093) | $(5,844) | | Net cash used in financing activities | $(4,375) | $(7,730) | | Net increase (decrease) in cash | $8,801 | $(574) | Notes to Consolidated Financial Statements Provides details on accounting policies, segment operations, discontinued activities, and various financial instruments and commitments - The company operates through two segments: Genie Retail Energy (GRE), which resells electricity and gas, and Genie Renewables (GREW), which focuses on solar projects and energy advisory services252627 - Operations in Finland and Sweden have been discontinued and are accounted for as such; legal claims related to these operations are ongoing, with the company disputing claims totaling approximately €40.0 million286368 - The company established a captive insurance subsidiary in December 2023 to cover certain operational risks, which held $89.3 million in restricted cash as of March 31, 2025134138139 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Discusses strong Q1 performance driven by the GRE segment, strategic shifts in the GREW segment, and the company's robust liquidity position - The company is comprised of two main segments: Genie Retail Energy (GRE) for reselling electricity and gas, and Genie Renewables (GREW) for solar project development and energy advisory services153154 - The company's liquidity is strong, with $112.5 million in unrestricted cash and cash equivalents and $121.2 million in working capital as of March 31, 2025210211 Results of Operations Consolidated operating income rose 30.3% to $12.8 million, led by strong growth in the GRE segment Segment Income (Loss) from Operations (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Genie Retail Energy (GRE) | $16,847 | $14,248 | | Genie Renewables (GREW) | $(855) | $(645) | | Corporate | $(3,161) | $(3,752) | | Total Income from Operations | $12,831 | $9,849 | Liquidity and Capital Resources The company maintains robust liquidity with $121.2 million in working capital while continuing capital returns and investments - Cash flow from operating activities of continuing operations was $13.5 million in Q1 2025, an improvement from $8.7 million in Q1 2024212213 - In Q1 2025, the company paid $2.0 million in dividends and repurchased $1.9 million of its Class B common stock225226 - The company has future purchase commitments of $159.4 million as of March 31, 2025, with $147.1 million for electricity130216 - Anticipated capital expenditures for the full year 2025 are projected to be between $10.0 million and $20.0 million, mainly for GREW's solar projects220 Item 3. Quantitative and Qualitative Disclosures About Market Risks Outlines the company's primary market risk from commodity price volatility and its use of derivatives for hedging - The primary market risk exposure is the price of natural gas and electricity purchases and sales233 - The company uses derivative instruments (put/call options, swaps) to hedge against price volatility; a gain of $3.2 million was recognized from these instruments in Q1 2025, versus a $5.5 million loss in Q1 2024234 Item 4. Controls and Procedures Confirms the effectiveness of disclosure controls and procedures with no material changes in internal controls during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025235 - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2025236 PART II. OTHER INFORMATION Item 1. Legal Proceedings Details ongoing legal matters, including a consumer fraud complaint in Illinois which the company is actively defending - The company is involved in a legal proceeding where the Attorney General of Illinois filed a complaint against its subsidiary, Residents Energy, alleging violations of consumer protection laws; the company denies the allegations126238 Item 1A. Risk Factors States there are no material changes to the risk factors disclosed in the 2024 Annual Report on Form 10-K - No material changes from the risk factors included in the 2024 Form 10-K were reported239 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Reports on the repurchase of 159,372 shares of Class B common stock during the first quarter of 2025 Q1 2025 Class B Stock Repurchases | Period | Total Shares Purchased | Average Price per Share | Shares Purchased Under Plan | | :--- | :--- | :--- | :--- | | Jan 2025 | 52,757 | $14.76 | 20,648 | | Feb 2025 | 623 | $14.06 | 623 | | Mar 2025 | 105,992 | $14.74 | 105,992 | | Total | 159,372 | $14.74 | 127,263 | - As of March 31, 2025, 3.9 million shares of Class B common stock remained available for repurchase under the existing stock repurchase program96226 Item 3. Defaults upon Senior Securities Reports no defaults upon senior securities - None242 Item 4. Mine Safety Disclosures States that this section is not applicable - Not applicable242 Item 5. Other Information Reports no other information - None242 Item 6. Exhibits Lists the exhibits filed with the report, including required CEO/CFO certifications and interactive data files - Exhibits filed include CEO/CFO certifications (302 & 906) and XBRL data files243