Stabilis Solutions(SLNG) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q2 2022, Stabilis reported revenues of $25.8 million, a 12% increase from $23 million in Q1 2022 and a 61% increase year-over-year [14] - The net loss for the quarter was $2.2 million, compared to a loss of $400,000 in Q1 2022 and $1 million in the year-ago quarter [15] - Adjusted EBITDA for the quarter was $1.6 million, down from $2 million in Q1 2022 but up from $500,000 in the year-ago quarter [18] Business Line Data and Key Metrics Changes - Revenues from the LNG segment were $23.2 million, up 14% from Q1 2022 and also up 61% year-over-year [14] - Revenues from the Power Delivery segment were $2.6 million, down 5% from Q1 2022 but 59% higher than the year-ago quarter [15] - Aerospace volumes in Q2 were 56% higher than Q1 and year-to-date volumes were almost double all of 2021 volumes, now accounting for approximately 10% of total revenue [6] Market Data and Key Metrics Changes - Increased volumes and higher natural gas prices were the main factors contributing to revenue strength [6] - Year-over-year, gallons of LNG delivered were up 14%, with higher commodity prices accounting for approximately $5.4 million of the revenue increase [14] Company Strategy and Development Direction - The company aims to be a leading catalyst for environmental transformation, leveraging LNG as a bridge fuel while expanding into alternative fuels like bio-fuels and hydrogen [4][5] - Stabilis is focused on quality growth catalysts such as aerospace, marine bunkering, and alternative fuels, aiming to capitalize on significant demand for cleaner solutions [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need for continuous optimization of the core LNG business to improve profitability and manage costs effectively [23] - There is optimism regarding the expansion of marine LNG bunkering operations and the potential for incremental cash flow growth from new initiatives [11][22] Other Important Information - The company finished the quarter with total liquidity of $5.1 million, including cash and available capacity under its bank facility [18] - Management is committed to disciplined growth financing methods to maximize shareholder value [12] Q&A Session Summary Question: Thoughts on improving profitability in the LNG sector - Management believes there are many levers to pull for better consistency in takeaway capacity and managing large input costs [23] Question: Were new initiatives like aerospace and bunkering EBITDA positive in the quarter? - Management confirmed that these initiatives were EBITDA positive and expect continued growth as they scale [22]