Stabilis Solutions(US:SLNG)2023-08-09 22:23Financial Performance - Revenues for the three months ended June 30, 2023, decreased by $10.2 million, or 44.2%, to $12.9 million compared to $23.2 million in the prior year quarter[88]. - The company reported a net loss from continuing operations of $2.2 million for the three months ended June 30, 2023, compared to a net loss of $2.1 million in the prior year quarter, reflecting a 4.8% increase in loss[88]. - For the six months ended June 30, 2023, revenues decreased by $3.7 million, or 8.4%, to $39.7 million compared to $43.4 million in the prior year[100]. Cost Management - Cost of revenues for the same period decreased by $9.0 million, or 45.8%, to $10.6 million, representing 82% of revenues in the current quarter compared to 84% in the prior year quarter[90]. - Operating expenses for the six months ended June 30, 2023, decreased by $5.1 million, or 11.0%, to $41.2 million, with cost of revenues at 78% of revenues compared to 81% in the prior year[101]. - Selling, general and administrative expenses increased by $0.4 million due to higher compensation and professional services costs[104]. - Depreciation expense decreased by 11% in the Current Year due to assets reaching the end of their depreciable lives[105]. Cash Flow and Investments - Net cash provided by operating activities was $3.9 million for the six months ended June 30, 2023, down from $4.6 million in the same period in 2022[116]. - Net cash used in investing activities increased to $5.2 million in the Current Year, primarily due to cash paid for additional assets[117]. - Capital expenditures for the six months ended June 30, 2023, were $5.2 million, mainly for additional liquefaction assets[120]. Debt and Financing - The Company had $8.1 million in cash and cash equivalents and $10.2 million in outstanding debt as of June 30, 2023[113]. - The Company has a $10.0 million secured term loan facility with AmeriState Bank, with $1.0 million available for future draws[112]. - The Company filed a Shelf Registration Statement allowing it to issue up to $100.0 million in securities to raise capital[121]. Operational Highlights - The company has one reporting segment following the exit from Brazil Operations, which was sold on October 31, 2022[86]. - The company operates liquefiers with a production capacity of 100,000 LNG gallons per day in Texas and 30,000 LNG gallons per day in Louisiana[82]. - The company provides a "virtual natural gas pipeline" through turnkey LNG transportation and logistics services across North America[83]. - Natural gas prices decreased in the Current Year compared to the Prior Year, leading to fewer gallons of LNG delivered[102]. - The company experienced a gain of $0.2 million on the change in unrealized losses associated with natural gas derivatives in the current quarter, compared to a loss of $0.9 million in the prior year quarter[92]. - The Company reported a gain of $0.1 million on unrealized losses associated with natural gas derivatives, compared to a loss of $0.9 million in the Prior Year[103]. - Net equity income from foreign joint venture operations increased by 33.2% to $1.0 million for the six months ended June 30, 2023, compared to $0.8 million in the prior year[100].