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Stabilis Solutions(SLNG) - 2019 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Stabilis reported revenues of $13.8 million for Q1, an 11% sequential increase from $12.5 million in Q4 2019 [11] - Adjusted EBITDA for the quarter was $1.5 million, down from $2.2 million in the prior quarter [15] - Net loss for the quarter increased to $1.1 million compared to a net loss of $0.6 million in the preceding quarter [15] Business Line Data and Key Metrics Changes - LNG segment revenues were $12.5 million, up from $10.4 million in Q4, driven by a 27% increase in LNG gallons delivered [11] - Utilization of the George West facility increased to 74% in Q1, up from 64% in Q4 [12] - The power delivery business reported a net equity income loss of $0.2 million compared to income of $1.1 million in the previous quarter [12] Market Data and Key Metrics Changes - Revenues from Brazil decreased to $1.3 million from $2.1 million in the previous quarter due to the pandemic and unfavorable exchange rates [14] - The Chinese joint venture's manufacturing facility was closed for approximately four weeks during the quarter, impacting production and orders [13] Company Strategy and Development Direction - The company aims to become the leading small-scale LNG provider in North America, focusing on increasing and diversifying sales while controlling costs [24] - Recent sales activity in Mexico has been encouraging, with a new customer taking delivery of approximately 90,000 gallons in April [20] Management's Comments on Operating Environment and Future Outlook - The company experienced a slowdown in business activity due to the global pandemic, particularly affecting the power delivery segment [7] - Management is cautious about the outlook for the current quarter, noting reduced customer activity in April [9] - The company is focused on preserving cash and maintaining a strong balance sheet during the downturn [17] Other Important Information - The company has implemented cost-cutting measures, including a 15% reduction in headcount and a 20% reduction in employee compensation [23] - Full production at the Chinese joint venture has resumed, but the impact of the economic downturn on future orders is uncertain [13] Q&A Session Summary Question: How does the virus impact your Mexico permitting activity or plans? - Management indicated that while sales efforts in Mexico continue, permitting activities may be delayed due to government office closures [27][28] Question: What percent of your business did the oilfield represent in the first quarter of this year? - Management did not provide specific figures during the call but promised to gather the data and follow up [31][32] Question: Was the increase in volumes at George West intentional? - Management clarified that the increase was not intentional but resulted from strong business performance and other factors such as warmer weather affecting third-party volumes [33][34]