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Genie Energy(GNE) - 2024 Q3 - Earnings Call Transcript
GNEGenie Energy(GNE)2024-11-06 14:29
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Financial Data and Key Metrics Changes - The company generated 12millioninincomefromoperationsand12 million in income from operations and 14 million in adjusted EBITDA for Q3 2024, with a total of 37millioninadjustedEBITDAforthefirstninemonthsof2024,ontracktomeetthehighendofannualguidanceof37 million in adjusted EBITDA for the first nine months of 2024, on track to meet the high end of annual guidance of 40 million to 50million[5][15]−Consolidatedrevenuedecreasedby10.550 million [5][15] - Consolidated revenue decreased by 10.5% to 111.9 million, driven by a 12.1% decline in GRE revenue to 105.8millionduetolowerkilowatthourssold[17]−Consolidatedgrossprofitwas105.8 million due to lower kilowatt hours sold [17] - Consolidated gross profit was 37.9 million, with a gross margin of 33.9%, reflecting a 100 basis point improvement year-over-year [20] Business Line Data and Key Metrics Changes - GRE added approximately 36,000 net new meters during the quarter, growing to 399,000 meters served, a 3.5% increase year-over-year [6][7] - GREW's revenue increased by 29.2% to 6.1million,drivenbyDiversegy′sgrowthandcontributionsfromoperationalsolarprojects[19]−GRE′sincomefromoperationsdecreasedby31.66.1 million, driven by Diversegy's growth and contributions from operational solar projects [19] - GRE's income from operations decreased by 31.6% to 15 million, while GREW narrowed its loss from operations to 243,000[22]MarketDataandKeyMetricsChanges−Thecompanyserveselectricityand/ornaturalgastocustomersin19statesplusWashington,D.C.,withnewmarketentryinCaliforniaexpectedtoenhancegrowth[8]−ThecompetitiveenvironmentinTexashasimprovedpost−WinterStormUri,providingopportunitiesforgrowthintheretailmarket[8]CompanyStrategyandDevelopmentDirection−ThecompanyisstrategicallyrepositioningGREWforstrongergrowthbyfocusingonutility−scalesolarprojectsandbuildingDiversegy,itsenergyprocurementadvisorybusiness[10]−Thecompanyaimstoachieveconsistenttopandbottomlinegrowththroughitsstrategicfocusonutility−scaleprojectsandoperationalefficiency[11]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceinclosing2024withgoodmomentumandacceleratingperformancein2025,drivenbytheteam′sdedication[14]−Thecompanyanticipatesthatpositivetrendsinthecompetitiveenvironmentwillsupportorganicmetergrowthinthecomingmonths[8]OtherImportantInformation−Thecompanyrepurchasedapproximately123,000sharesfor243,000 [22] Market Data and Key Metrics Changes - The company serves electricity and/or natural gas to customers in 19 states plus Washington, D.C., with new market entry in California expected to enhance growth [8] - The competitive environment in Texas has improved post-Winter Storm Uri, providing opportunities for growth in the retail market [8] Company Strategy and Development Direction - The company is strategically repositioning GREW for stronger growth by focusing on utility-scale solar projects and building Diversegy, its energy procurement advisory business [10] - The company aims to achieve consistent top and bottom line growth through its strategic focus on utility-scale projects and operational efficiency [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in closing 2024 with good momentum and accelerating performance in 2025, driven by the team's dedication [14] - The company anticipates that positive trends in the competitive environment will support organic meter growth in the coming months [8] Other Important Information - The company repurchased approximately 123,000 shares for 2 million in Q3 2024, returning 18.5millionintotalvaluetoshareholdersyear−to−date[13][25]−Anon−cashexpenseof18.5 million in total value to shareholders year-to-date [13][25] - A non-cash expense of 991,000 was recorded due to a loss reserved by the captive insurance subsidiary, impacting GAAP income but not adjusted EBITDA [24] Q&A Session Summary - There were no questions during the Q&A session, concluding the conference call [26]