Genie Energy(US:GNE)2019-08-05 15:26Financial Data and Key Metrics Changes - Consolidated revenue in Q2 2019 increased to $61 million from $56.4 million, reflecting growth from Genie International and Genie Energy Services [17] - Consolidated gross profit decreased to $9 million from $16.1 million, primarily due to a weaker operating environment and mark-to-market losses on commodity hedges [19] - Adjusted EBITDA was negative $9.1 million compared to positive EBITDA of $1.8 million in the previous year [22] - Loss per share was $0.29, an increase from a loss of $0.09 per share in the year-ago quarter [22] Business Line Data and Key Metrics Changes - Genie Energy Services contributed $3.7 million in revenue, with significant contributions from the Prism Solar solution [10] - The company added 49,000 meters, with 35,000 in the U.S. and 14,000 internationally, representing increases of 10% and 25% respectively [7] - Customer acquisition expenses increased significantly due to higher domestic gross meter adds, which rose to 91,000 from 57,000 in the year-ago quarter [12] Market Data and Key Metrics Changes - Electricity sales increased to $49.2 million from $48.5 million, while natural gas sales decreased to $5.2 million from $7.4 million [18] - Electricity consumption per domestic meter fell by 2.7% and natural gas consumption decreased by 8.7% compared to the year-ago quarter [13] Company Strategy and Development Direction - The company is diversifying its revenue streams and has entered the Texas electricity market, which is the largest in the country, presenting significant growth opportunities [6] - Management emphasized the importance of customer retention and reducing churn, achieving a reduction in the monthly domestic churn rate to 4.4% from 5.3% in the previous quarter [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the underlying financial performance was not as strong as expected due to short-term factors but remains optimistic about the company's prospects [5] - The second quarter is typically the lowest consumption period of the year, and this year was further impacted by mild spring weather [23] Other Important Information - The company declared a quarterly dividend of $0.075 per share, reflecting confidence in its financial position despite the challenges faced [23] - The balance sheet remained strong with total assets of $147.6 million and cash and equivalents of $39.9 million [22] Q&A Session Summary Question: How is the Texas market performing so far? - Management indicated that they started a bit later than planned but do not expect any material impact. Full marketing enrollments are expected to begin soon, with cautious customer acquisition anticipated [26] Question: Update on Afek's testing equipment? - Management confirmed that the delay is primarily equipment-related, with testing expected to begin towards the end of the year, specifically mid-fourth quarter [29][30]