
Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2020 increased by $17.4 million to $104.1 million, with $12.7 million contributed by Genie Energy Services division [18] - Consolidated gross profit rose by $3.3 million to a record $28.9 million, with Genie Retail Energy contributing $27.6 million, an increase of $2.9 million from the previous year [21] - EPS was $0.20 per diluted share, which is $0.01 below the year-ago quarter [24] Business Line Data and Key Metrics Changes - Genie Retail Energy revenue increased to $79.1 million, up $2.6 million year-over-year, driven by a 17% increase in kilowatt hours sold [19] - Genie Retail Energy International revenue totaled $7 million, an increase of $2.1 million, reflecting customer base expansion in Finland and Japan [20] - Customer churn decreased to 4.7% per month from 5.3% in Q1 2019, with an average churn of 5.4% over the past 12 months [7] Market Data and Key Metrics Changes - Genie Energy's global customer base surpassed 401,000 RCEs and 532,000 meters, with a 20% increase in RCEs served over the trailing 12 months [6] - In the US, Genie Retail Energy added a net 20,000 RCEs and 15,000 meters during the quarter [5] - Overseas, GRE International added 7,000 RCEs and 20,000 meters, closing the quarter with 72,000 RCEs [6] Company Strategy and Development Direction - The company is focusing on entering new markets, including Texas, Michigan, and Georgia, and has recently entered the electricity market in Sweden [13] - Genie Energy is adjusting operations in response to the COVID-19 pandemic, with a focus on alternative customer acquisition channels [10] - The Board of Directors has increased the quarterly dividend to $0.085, a 13% increase, reflecting confidence in the company's future [15][27] Management's Comments on Operating Environment and Future Outlook - Management noted that the near-term impact of the pandemic has demonstrated the resilience of the business, with adjustments yielding positive results [12] - The company anticipates mixed impacts from the pandemic, with some factors improving performance while others may pose challenges [26] - Management remains confident about the company's position to realize value for shareholders despite uncertainties [27] Other Important Information - Cash used in operating activities was $2.7 million in Q1 2020, compared to cash provided by operating activities of $7 million in the previous year [25] - The company has a strong balance sheet with total assets of $157.2 million and liabilities of $71.5 million [24] Q&A Session Summary Question: Increase in SG&A expense - The increase in SG&A expense is primarily due to higher selling costs and commissions related to increased meter acquisition, along with some bad debt expense [34] Question: Afek well testing timeline - The company expects to start the pressure test on the well before the end of the second quarter, with potential results available by the time of the second quarter earnings release [38] Question: Share buybacks consideration - The Board has approved share buybacks if the prices are deemed right, but the focus is currently on returning capital to shareholders through increased dividends [40] Question: Cash collateral for hedge positions - The need for additional cash collateral was primarily due to market volatility affecting fixed-rate positions, requiring mark-to-market adjustments [42] Question: Effectiveness of door-to-door sales suspension - The suspension of door-to-door sales led to a significant decrease in customer acquisition but also reduced churn rates as competitors faced similar restrictions [51]