Stabilis Solutions(SLNG) - 2025 Q3 - Quarterly Report

Revenue Performance - LNG Product revenue increased by $3.27 million, or 22.9%, to $17.53 million for the three months ended September 30, 2025, compared to $14.26 million for the same period in 2024[95] - Total revenues for the current quarter were $20.33 million, reflecting a $2.70 million, or 15.3%, increase from $17.63 million in the prior year quarter[95] - Total revenues for the nine months ended September 30, 2025, decreased by $1.0 million, or 2%, to $54.972 million compared to $55.995 million in the prior year[108] - LNG product revenues increased by $1.805 million, or 4.1%, to $46.1 million, while rental and service revenues decreased by 22.8% and 22.3%, respectively[107] Expenses and Income - Cost of revenues rose by $2.1 million, or 17%, to $14.72 million, maintaining 72% of total revenue for both quarters[96] - Net income for the current quarter was $1.12 million, a 12.2% increase from $0.997 million in the prior year quarter[95] - Operating expenses increased by $2.462 million, or 4.5%, totaling $56.708 million, with selling, general, and administrative expenses rising by $1.025 million, or 10.4%[107] - Net income for the nine months ended September 30, 2025, was a loss of $1.092 million, compared to a net income of $2.493 million in the prior year[107] - Selling, general and administrative expenses decreased by $0.3 million, primarily due to lower compensation expenses[99] - The company experienced a decrease in net equity income from foreign joint ventures by $0.2 million due to reduced profits[102] Financing and Investments - The company executed a 10-year bunkering agreement to supply LNG and develop a new 350,000 gallon-per-day liquefaction facility in Galveston, Texas[89] - The company is pursuing financing for the Galveston LNG facility, with no guarantee of successful completion by the required timeframe[89] - Capital expenditures for the nine months ended September 30, 2025, were $5.0 million, primarily for the Galveston expansion and upgrades to existing assets[127] - The company executed a 10-year bunkering agreement to supply LNG for a new 350,000 gallon-per-day liquefaction facility in Galveston, Texas, with project financing to be finalized by Q1 2026[128] Cash Flow and Financial Position - Cash provided by operating activities was $7.934 million, down from $11.522 million in the prior year, a decrease of $3.588 million[123] - As of September 30, 2025, the company had $10.3 million in cash and cash equivalents and $9.5 million in outstanding debt[120] - The company had no off-balance sheet arrangements that could materially affect its financial position as of September 30, 2025[129] Accounting and Reporting - The Company has prepared its financial statements in accordance with U.S. GAAP, requiring estimates and assumptions that impact reported amounts of assets and liabilities[130] - There have been no significant changes in the Company's "Critical Accounting Policies and Estimates" during the three and nine months ended September 30, 2025, compared to the previous year[130] - The Company is classified as a "smaller reporting company" and is not required to provide quantitative and qualitative disclosures about market risk[131] Derivatives and Losses - The company reported an unrealized loss of $19,000 on natural gas derivatives in the current quarter, compared to a loss of $13,000 in the prior year quarter[99]