Genie Energy(US:GNE)2021-05-07 17:42Revenue Performance - For the three months ended March 31, 2021, Genie Retail Energy's revenues represented approximately 67.0% of the company's consolidated revenues, down from 76.1% in the same period in 2020[157]. - Total revenues for the Genie Retail Energy Segment increased by 14.6% to $90.667 million in Q1 2021 compared to $79.145 million in Q1 2020[175]. - Electricity revenues rose by 16.3% to $73.387 million in Q1 2021, driven by a 22.8% increase in electricity consumption[175]. - Natural gas revenues increased by 7.5% to $17.280 million in Q1 2021, with a corresponding 11.3% rise in natural gas consumption[176]. - Genie Renewables' revenues decreased by 86.1% to $2.5 million for the three months ended March 31, 2021, compared to $18.0 million in the same period in 2020[198]. Cost and Profitability - The impact of the winter storm in Texas resulted in approximately $13.0 million in additional costs related to unprecedented price volatility in real-time electricity prices during the first quarter of 2021[159]. - The average rate per kilowatt hour sold decreased by 5.2% in Q1 2021 compared to Q1 2020, impacting gross profit margins[175]. - Gross profit for the Genie Retail Energy Segment fell by 45.8% to $14.966 million in Q1 2021, primarily due to increased costs of revenues[175]. - The average unit cost of electricity increased by 25.7% in Q1 2021 compared to Q1 2020, significantly affecting gross margins[184]. - Gross profit for the same period was $1.1 million, down 29.7% from $1.6 million in 2020[198]. Accounts and Receivables - As of March 31, 2021, 86.7% of Genie Retail Energy's net accounts receivables were under a purchase of receivables (POR) program, with associated costs being approximately 1.1% of GRE's revenue[160]. Market and Customer Metrics - New York represented 18.6% of Genie Retail Energy's total meters served and 14.0% of the total residential customer equivalents (RCEs) as of March 31, 2021, with gross revenues of $17.1 million for the three months ended March 31, 2021[165]. - Town Square's gross revenues from sales in Connecticut for the three months ended March 31, 2021, were $9.4 million, compared to $7.5 million in the same period in 2020[168]. - Residents Energy served 270 meters in Connecticut, generating gross revenues of $0.1 million for the three months ended March 31, 2021[170]. - Meters served by GRE International's REPs increased to 199,000 at March 31, 2021, up from 195,000 at December 31, 2020[192]. Strategic Initiatives - The company is actively seeking acquisitions to expand the geographic scope and size of its retail energy provider businesses[156]. - The company expects a modest rebound in meter acquisition as COVID-19 restrictions ease, although any reversal could impact this expectation[150]. - Churn for the first quarter of 2021 decreased compared to the same period in 2020, partly due to competitors suspending face-to-face marketing programs[148]. Financial Position and Cash Flow - The company reported a net loss of $2.7 million for the three months ended March 31, 2021, compared to a net income of $6.4 million in the same period in 2020, representing a decline of 142.0%[204]. - Cash used in operating activities was $10.0 million for the three months ended March 31, 2021, compared to cash provided by operating activities of $2.7 million in 2020[212]. - The company had working capital of $35.4 million as of March 31, 2021[210]. - The company had purchase commitments of $142.4 million as of March 31, 2021, with $90.1 million allocated for electricity purchases[215]. Debt and Financing - GRE entered into a $20 million revolving loan facility with Vantage, with an outstanding balance of $3.5 million paid off by April 2020[225]. - As of March 31, 2021, the Company had a $5.0 million credit line facility with JPMorgan Chase Bank, with $2.3 million issued as letters of credit[226]. - The Company refinanced $0.9 million of notes payable at a fixed interest rate of 4.75% per annum, fully settling the $0.8 million balance in October 2020[227]. - GRE had outstanding performance bonds of $13.7 million and $2.2 million of unused letters of credit as of March 31, 2021[229]. Dividends and Stock Compensation - The company suspended the payment of quarterly dividends on its common stock in March 2021 to rebuild its cash position[220]. - Stock-based compensation expense included in consolidated selling, general and administrative expenses was $0.6 million for the three months ended March 31, 2021[203]. Market Volatility Management - The Company has adopted a hedging policy for electricity and natural gas prices to mitigate market volatility, using put and call options and swaps[232].