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Genie Energy Ltd. Reports First Quarter 2021 Results

NEWARK, N.J., May 6, 2021 /PRNewswire/ -- Genie Energy Ltd. (NYSE: GNE, GNEPRA) reported record revenue of $135.3 million and a loss per diluted share of $0.09 for the first quarter 2021. 

CONSOLIDATED HIGHLIGHTS

(Throughout this release, 1Q21 results are compared to 1Q20 results unless otherwise noted)

  • Global RCEs served increased by 49,000 or 12.1% year over to year to 450,000. Global meters served increased by 40,000 or 7.6% year over to year to 572,000.
  • Consolidated revenue increased 30.1% to $135.3 million from $104.1 million driven by increased per meter consumption in domestic markets and by the consolidation of Orbit Energy during 4Q20.
  • Genie Retail Energy (GRE), Genie's domestic retail energy supply business, generated income from operations of $1.2 million compared to $13.0 million in 1Q20. The 1Q21 results reflect a negative impact of approximately $13.0 million attributable to the impact of a severe winter storm and resultant spike in wholesale electricity rates in Texas.
  • Genie Renewables, formerly Genie Energy Services, generated income from operations of $0.6 million compared to $0.3 million in 1Q20 reflecting Genie's ongoing diversification to higher margin solar solutions.
  • Consolidated loss from operations was $6.6 million compared to income from operations of $9.2 million in 1Q20. Consolidated Adjusted EBITDA* was negative $4.5 million compared to positive Adjusted EBITDA* of $10.3 million.
  • The net loss attributable to Genie Energy common stockholders was $2.4 million compared to net income of $5.5 million in 1Q20.
  • Genie purchased 146,720 shares of its Class B common stock at $5.76 per share in a private transaction following the quarter close.

COMMENTS OF MICHAEL STEIN, CEO

"As we discussed when we reported last quarter's earnings, the first quarter was impacted by unusually severe weather events that led to massive spikes in wholesale electricity prices in Texas and Japan.  The winter storms in Texas and Japan had an aggregate negative impact on income from operations of approximately $15.5 million. In Texas, where the negative impact of the storm this quarter was approximately $13.0 million, our industry has borne a disproportionate share of the financial burden. We remain hopeful that prospective legislation, regulatory changes and/or litigation will provide material relief.

"Genie Energy achieved record first quarter revenue.  Our meter and RCE counts continued to climb, and absent the Texas storm's impact, our domestic business would likely have achieved record income from operations and Adjusted EBITDA*.  Additionally, Genie Renewables, formerly Genie Energy Services, continued to expand into higher margin solar solutions offerings and delivered its highest level of income from operations to date.

"After overcoming the challenges of the first quarter, we are well positioned for strong cash generation and continued growth as we look ahead to the balance of the year and beyond.  Across our business, the best is yet to come."


CONSOLIDATED RESULTS

Genie Energy Consolidated Results

$ in millions, except EPS

1Q21

4Q20

1Q20


1Q21-1Q20

Change (%/$)

Revenue

$135.3

$102.9

$104.1


+30.1%

Gross profit

$17.5

$22.0

$28.9


(39.4)%

Gross margin percentage

13.0%

21.4%

27.8%


(1,480) BP

SG&A expense

$24.1

$22.7

$19.5


+23.6%

   Stock-based compensation included in SG&A

$0.6

$(0.2)

$0.5


+$0.1

   Depreciation and amortization

$1.3

$1.3

$0.8


+$0.5

   Bad debt expense

$1.1

$1.5

$0.6


+$0.5

Impairment of assets

-

$0.4

$0.2


$(0.2)

(Loss) income from operations 

$(6.6)

$(1.1)

$9.2


$(15.8)

Adjusted EBITDA*

$(4.5)

$0.7

$10.3


$(14.9)

Equity in the net loss in equity method investees**

$0.1

$0.3

$(0.4)


+$0.5

Provision for income taxes

$(0.5)

$(2.8)

$(2.6)


+$2.1

Net (loss) income attributable to Genie Energy common stockholders

$(2.4)

$(1.7)

$5.5


$(7.9)

(Loss) earnings per diluted share attributable to Genie Energy common stockholders

$(0.09)

$(0.06)

$0.20


$(0.29)

Net cash used in operating activities

$(10.0)

$(0.9)

$(2.7)


$(7.2)


* Adjusted EBITDA for all periods presented is a non-GAAP measure intended to provide useful information that supplements the core operating results in accordance with GAAP of Genie Energy or the relevant segment.  Please refer to the 'Reconciliation of Non-GAAP Financial Measures' at the end of this release for an explanation of Adjusted EBITDA as well as for reconciliations to its most directly comparable GAAP measures. 


** To reflect Genie's purchase of the outstanding interest in its Orbit Energy joint venture operating in the United Kingdom from its former joint venture partner, Genie began to consolidate Orbit's results in its financial reporting under the GRE International segment effective October 8, 2020.  Prior to that date, Genie accounted for its investments in Orbit under the equity method of accounting. Revenue generated, and expenses incurred, were not reflected in segment revenue and operating expenses.

CUSTOMER BASE

Genie Energy's global RCE and meter base increased year-over-year and sequentially driven by GRE International's investment in customer acquisition, by customer acquisition programs focused on higher consumption per meter markets in the U.S. and by higher average per meter residential consumption driven by the COVID-induced shift to work from home. Genie Energy's global RCE and meter totals, including operations in the U.S., Finland, Sweden, the U.K. and Japan for all periods presented, are provided in the chart below. 

Global RCEs and Meters (in thousands)

 

March 31,
2021

December 31,
2020

September 30,
2020

June 30,
2020

March 31,
2020

Electricity RCEs

373

366

364

346

325

Natural gas RCEs

77

75

78

75

76

Total RCEs

450

440

442

421

401







Electricity meters

460

454

445

429

421

Natural gas meters

112

111

113

107

111

Total meters

572

565

558

536

532

SEGMENT RESULTS

Genie Retail Energy (GRE)

GRE's financial results are summarized in the chart below:

GRE

$ in millions

1Q21

4Q20

1Q20


1Q21-1Q20

Change (%/$)

Total revenue

$90.7

$69.9

$79.1


+14.6%

   Electricity revenue

$73.4

$60.5

$63.1


+16.4%

   Natural gas revenue

$17.3

$9.4

$16.1


+7.5%

Gross profit

$15.0

$17.9

$27.6


(45.8)%

Gross margin percentage

16.5%

25.5%

34.9%


(1,840) BP

SG&A expense

$13.8

$12.6

$14.6


(5.6)%

   Depreciation and amortization

$0.1

$0.1

$0.1


NC

   Bad debt expense

$0.4

$0.5

$0.5


$(0.2)

Income from operations

$1.2

$5.3

$13.0


$(11.8)

Adjusted EBITDA*

$1.5

$5.4

$13.3


$(11.8)

GRE - KPIs and take-aways:

  • Results in the quarter were materially impacted by Winter Storm Uri which led to spikes in the Texas grid's wholesale electricity prices in February 2021. The Company estimates that the storm and associated regulatory surcharges had a net negative impact on income from operations of approximately $13.0 million compared to normalized operating conditions. Genie Energy had estimated that the impact would be $12.8 million when it reported fourth quarter 2020 results.
  • GRE's customer base at March 31, 2021 increased to 347,000 RCEs from 330,000 RCEs a year earlier. Meters served decreased to 373,000 from 384,000. The changes resulted from Genie's focus on meter acquisition opportunities in geographies with higher average consumption per meter and from higher per meter consumption in the past year due to COVID-related factors.
  • Gross meters added during 1Q21 totaled 62,000 compared to 69,000 in 1Q20 and 58,000 in 4Q20. The year over year decrease largely reflected the impact of COVID-related public health restrictions compared to the year ago quarter. The sequential increase was enabled by the relaxation of those restrictions in some jurisdictions and by the closing of an aggregation deal in 1Q21.
  • Average monthly churn increased to 4.9% from 4.7% in 1Q20 but decreased from 5.3% in 4Q20. Churn in the 4th quarter of 2020 was impacted by the expiration of an aggregation deal.
  • Electricity revenue increased to $73.4 million from $63.1 million in 1Q20 driven by higher average per meter consumption partly offset by lower revenue per kilowatt hour sold.
  • Income from operations decreased to $1.2 million from $13.0 million and Adjusted EBITDA* decreased to $1.5 million from $13.3 million in 1Q20.
  • Excluding the direct impact of the Texas weather event, but without adjustments for other market conditions, GRE's Adjusted EBITDA* would have been approximately $14.5 million, a record quarter for the business.

Genie Retail Energy International (GRE International)

Genie began to consolidate Orbit's results in its financial reporting under the GRE International segment effective October 8, 2020 following our purchase of the outstanding interest in the venture.  Prior to that date, Genie accounted for its investments in Orbit under the equity method of accounting. Revenue generated, and expenses incurred, were not reflected in segment revenue and operating expenses. However, Orbit Energy's customers are included in counts of Genie Energy's and GRE International's customer bases for all periods presented.

GRE International

$ in millions

1Q21

4Q20

1Q20


1Q21-1Q20

Change (%/$)

Total revenue

$42.2

$31.8

$7.0


+506.7%

   Electricity revenue

$30.3

$23.4

$6.9


+339.1%

   Natural gas revenue

$11.8

$8.3

-


+$11.8

Gross profit (loss)

$1.4

$4.4

$(0.3)


+$1.7

Gross margin percentage

3.4%

14.0%

(4.1)%


+760 BP

SG&A expense

$8.1

$7.4

$2.2


+$5.9

   Depreciation & amortization

$1.2

$1.1

$0.5


+$0.7

   Bad debt

$0.7

$1.0

$0.1


+$0.6

Loss from operations

$(6.7)

$(2.9)

$(2.5)


$(4.1)

Adjusted EBITDA*

$(5.4)

$(1.8)

$(2.0)


$(3.4)

GRE International - KPIs and take-aways: 

  • GRE International's customer base at March 31, 2021 increased to 103,000 RCEs from 72,000 RCEs and to 199,000 meters from 148,000 meters a year earlier led by growth in Scandinavia and the U.K.
  • Revenue increased to $42.2 million compared to $7.0 million in 1Q20 primarily reflecting the consolidation of Orbit Energy during 4Q20 as well as the significant growth of GRE International's customer base.  On a pro forma basis***, inclusive of Orbit Energy's revenue, GRE International's revenue was $26.6 million in 1Q20.
  • Loss from operations increased to $6.7 million from $2.5 million in 1Q20 primarily impacted by a severe weather induced spike in wholesale electricity rates which increased Genie Japan's supply cost by approximately $2.5 million. On a pro forma basis***, inclusive of Orbit Energy's loss from operations, GRE International's loss from operations was $5.5 million in 1Q20.

*** Pro forma results for 1Q20 are non-GAAP measures intended to provide useful information that supplement the core operating results in accordance with GAAP of the relevant segment.  Please refer to the 'Reconciliation of Non-GAAP Financial Measures' at the end of this release for an explanation of the pro forma results as well as for reconciliations to their most directly comparable GAAP measures. 

Genie Renewables  

Genie Renewables (formerly Genie Energy Services) comprises Genie Solar, a provider of end-to-end customized solar solutions primarily for commercial customers, Diversegy, a commercial energy consulting business, CityCom Solar, a provider of community solar energy solutions and Genie's interest in Prism Solar, a supplier of solar panels and solutions.

  • Revenue decreased to $2.5 million from $18.0 million in 1Q20. 1Q20 results were dominated by high revenue, low margin Prism Solar panel deliveries.
  • Gross margin increased to 44.9% compared to 8.9% in 1Q20. The increase reflects ongoing diversification to higher margin solar solutions.
  • Income from operations increased to $0.6 million compared to $0.3 million in 1Q20.

Corporate

  • Corporate loss from operations was $1.7 million compared to a loss of $1.6 million in 1Q20.

BALANCE SHEET AND CASH FLOW HIGHLIGHTS

At March 31, 2021, Genie Energy had $191.3 million in total assets, including $41.7 million in cash, restricted cash and marketable equity securities.  Liabilities totaled $107.8 million and working capital (current assets less current liabilities) totaled $35.4 million.  Non-current liabilities were $3.5 million

Cash used in operating activities in 1Q21 was $10.0 million compared to $2.7 million in 1Q20.  The increase was driven by the weather events in Texas and Japan.

GENIE ENERGY EARNINGS CONFERENCE CALL

This earnings press release is available for download in the "Investors" section of the Genie Energy website (https://genie.com/investors/investor-relations/) and has been filed on a current report (Form 8-K) with the SEC.  

At 8:30 AM Eastern today, May 6, 2021, Genie Energy's management will host a conference call to discuss financial and operational results, business outlook and strategy.  The call will begin with management's remarks followed by Q&A with investors. 

To participate in the conference call, dial 1-800-945-8198 (toll-free from the US) or 1-212-231-2934 (international) and request the Genie Energy conference call.

Approximately three hours after the call, a call replay will be accessible by dialing 1-844-512-2921 (toll-free from the US) or 1-412-317-6671 (international) and providing the replay PIN: 21993711. The replay will remain available through May 13, 2021.  A recording of the call - in MP3 format - also will be available for playback on the "Investors" section of the Genie Energy website.

Investors can sign up through the Genie Energy website to have earnings releases and other press releases e-mailed directly to them. 

ABOUT GENIE ENERGY LTD.

Genie Energy Ltd. (NYSE: GNE, GNEPRA), is a global provider of energy services.  The Genie Retail Energy division supplies electricity, including electricity from renewable resources, and natural gas to residential and small business customers in the United States. The Genie Retail Energy International division supplies customers in Europe and Asia.  The Genie Renewables division comprises Genie Solar Energy, a provider of end-to-end customized solar solutions primarily for commercial customers, Diversegy, a commercial energy consulting business, CityCom Solar, a provider of community solar energy solutions and Genie's interest in Prism Solar, a supplier of solar panels and solutions..  For more information, visit Genie.com.

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K.  We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.


 

GENIE ENERGY LTD.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)



March 31,
2021



December 31,
2020



(Unaudited)



(Audited)


Assets






Current assets:






Cash and cash equivalents

$

24,371



$

36,913


Restricted cash-short-term


6,827




6,271


Marketable equity securities


10,455




5,089


Trade accounts receivable, net of allowance for doubtful accounts of $9,891 and $8,793 at
March 31, 2021 and December 31, 2020, respectively


67,691




60,778


Inventory


19,020




16,930


Prepaid expenses


5,707




4,633


Other current assets


5,724




3,206


Total current assets


139,795




133,820


Property and equipment, net


226




259


Goodwill


25,977




25,929


Other intangibles, net


10,059




11,645


Deferred income tax assets, net


4,652




4,882


Other assets


10,548




10,804


Total assets

$

191,257



$

187,339


Liabilities and equity








Current liabilities:








Loan payable

$

-



$

1,453


Trade accounts payable


42,016




43,005


Accrued expenses


50,654




42,762


Contract liability


3,758




5,609


Income taxes payable


2,103




1,893


Due to IDT Corporation, net


188




257


Other current liabilities


5,662




2,494


Total current liabilities


104,381




97,473


Other liabilities


3,452




3,787


Total liabilities


107,833




101,260


Commitments and contingencies








Equity:








Genie Energy Ltd. stockholders' equity:








Preferred stock, $0.01 par value; authorized shares-10,000:








Series 2012-A, designated shares-8,750; at liquidation preference, consisting of 2,322 shares
issued and outstanding at March 31, 2021 and December 31, 2020


19,743




19,743


Class A common stock, $0.01 par value; authorized shares-35,000; 1,574 shares issued and
outstanding at March 31, 2021 and December 31, 2020


16




16


Class B common stock, $0.01 par value; authorized shares-200,000; 26,106 and 25,966 shares
issued and 24,786 and 24,646 shares outstanding at March 31, 2021 and December 31, 2020, respectively


261




260


Additional paid-in capital


141,496




140,746


Treasury stock, at cost, consisting of 1,320 shares of Class B common stock at March 31, 2021
and December 31, 2020


(9,839)




(9,839)


Accumulated other comprehensive income


3,255




3,827


Accumulated deficit


(59,014)




(56,658)


Total Genie Energy Ltd. stockholders' equity


95,918




98,095


Noncontrolling interests


(12,494)




(12,016)


Total equity


83,424




86,079


Total liabilities and equity 

$

191,257



$

187,339


 

GENIE ENERGY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)



Three Months Ended
March 31,



2021



2020



(in thousands, except per
share data)


Revenues:






Electricity

$

103,671



$

69,972


Natural gas


29,072




16,070


Other


2,598




18,009


Total revenues


135,341




104,051


Cost of revenues


117,812




75,146


Gross profit


17,529




28,905


Operating expenses and losses:








Selling, general and administrative (i)


24,104




19,499


Impairment of assets


-




192


(Loss) Income from operations


(6,575)




9,214


Interest income


84




128


Interest expense


(182)




(123)


Equity in the net income (loss) in equity method investees, net


110




(379)


Unrealized gain on marketable equity securities and investments


4,107




-


Other income, net


297




150


(Loss) Income before income taxes


(2,159)




8,990


Provision for income taxes


(535)




(2,569)


Net (loss) income


(2,694)




6,421


Net (loss) income attributable to noncontrolling interests


(708)




589


Net (loss) income attributable to Genie Energy Ltd.


(1,986)




5,832


Dividends on preferred stock


(370)




(370)


Net (loss) income attributable to Genie Energy Ltd. common stockholders

$

(2,356)



$

5,462










(Loss) Earnings per share attributable to Genie Energy Ltd. common stockholders:








Basic

$

(0.09)



$

0.21


Diluted

$

(0.09)



$

0.20


Weighted-average number of shares used in calculation of (loss) earnings per share:








Basic


26,004




26,108


Diluted


26,004




26,749










Dividends declared per common share

$

-



$

0.075


(i) Stock-based compensation included in selling, general and administrative expenses

$

589



$

483


 

GENIE ENERGY LTD. 

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) 




Three Months Ended
March 31,




2021



2020




(in thousands)


Operating activities







Net (loss) income


$

(2,694)



$

6,421


Adjustments to reconcile net (loss) income to net cash provided by operating activities:









Depreciation and amortization



1,331




826


Impairment of assets



-




192


Deferred income taxes



230




2,353


Provision for doubtful accounts receivable



1,126




608


Unrealized gain marketable equity securities and investment



(4,107)




-


Stock-based compensation



589




483


Equity in the net (income) loss in equity method investees



(110)




379


Gain on deconsolidation of subsidiaries



-




(98)


Change in assets and liabilities:









Trade accounts receivable



(9,904)




3,719


Inventory



(2,090)




(1,429)


Prepaid expenses



(1,380)




(1,356)


Other current assets and other assets



888




(8,473)


Trade accounts payable, accrued expenses and other current liabilities



7,885




3,344


Contract liability



(1,859)




(9,648)


Due to IDT Corporation



(68)




(244)


Income taxes payable



210




206


Net cash used in operating activities



(9,953)




(2,717)


Investing activities









Capital expenditures



(20)




(5)


Purchase of marketable equity securities



(1,000)




-


Repayment of notes receivable



13




-


Net cash used in investing activities



(1,007)




(5)


Financing activities









Dividends paid



(370)




(370)


Proceeds from revolving line of credit



-




1,000


Purchases of Class B common stock



-




(88)


Repayment of notes payable



-




(9)


Net cash (used in) provided by used in financing activities



(370)




533


Effect of exchange rate changes on cash, cash equivalents, and restricted cash



(69)




23


Net increase in cash, cash equivalents, and restricted cash, including cash balances classified as held
for sale



(11,399)




(2,166)


Less: Cash balances classified as held for sale



(587)




-


Net decrease in cash, cash equivalents, and restricted cash



(11,986)




(2,166)


Cash, cash equivalents, and restricted cash at beginning of period



43,184




38,554


Cash, cash equivalents, and restricted cash at end of period


$

31,198



$

36,388


 

Reconciliation of Non-GAAP Financial Measures for the First Quarter 2021

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), Genie Energy \disclosed for the first quarter 2021, as well as for comparable periods, Adjusted EBITDA on a consolidated basis and for all segments.  In addition, Genie Energy provided pro forma revenue and income (loss) from operations for its Genie Retail Energy International (GRE International) segment for the first quarter of 2020.   Adjusted EBITDA and pro forma revenue and income (loss) from operations are non-GAAP measures.

Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

Genie Energy's measures of pro forma results consist of the corresponding GAAP metric with the addition of the corresponding results for Orbit Energy, the company's subsidiary and former joint venture operating in the United Kingdom. GAAP results for Orbit Energy were accounted for under the equity method of accounting prior to Genie Energy's purchase of the outstanding interest in Orbit Energy on October 8, 2020. Under this method, Genie Energy recorded its share in the net income or loss of the venture. Therefore, revenue generated, expenses incurred and income (loss) from operations were not reflected in Genie Energy's consolidated revenue and expenses (although Orbit Energy's customers were and are included in metrics regarding our customer base).  Pro forma results were calculated by adding the result for Orbit Energy to its corresponding GAAP result.  Pro forma results are provided for the first quarter 2020 to supplement the following results: revenue of the Genie Retail Energy International segment and loss from operations for the Genie Retail Energy International segment.

Genie Energy's measure of Adjusted EBITDA consists of gross profit less selling, general and administrative expense, exploration expense and equity in the net loss of in equity method investees, net, plus depreciation, amortization and stock-based compensation (which are included in selling, general and administrative expense). Another way of calculating Adjusted EBITDA is to start with income from operations and add depreciation, amortization, stock-based compensation and impairment of goodwill and subtract equity in net loss in equity method investees, net.

Management believes that Genie Energy's pro forma results and Adjusted EBITDA provide useful information to both management and investors by excluding certain expenses that may not be indicative of Genie Energy's or the relevant segment's core operating results. Management uses the pro forma results and Adjusted EBITDA, among other measures, as relevant indicators of core operational strengths in its financial and operational decision making.

Pro forma revenue and pro forma income (loss) from operations are used specifically to evaluate the performance of its GRE International division.  Management also used Adjusted EBITDA to evaluate operating performance in relation to Genie Energy's competitors. Disclosure of these non-GAAP financial measure may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, Genie Energy has historically reported Adjusted EBITDA and believes it is commonly used by readers of financial information in assessing performance.  Therefore, the inclusion of comparative numbers provides consistency in financial reporting at this time.

The pro forma results facilitate evaluation of the results of GRE International as if the results of its U.K joint venture, Orbit Energy, had been fully consolidated in the first quarter of 2020, which provides useful comparative information regarding the size, growth and financial performance of GRE International businesses in aggregate.  In contrast, GAAP results for the first quarter of 2020 only included the company's equity in the results of the operations of its U.K. venture.

Management refers to pro forma results and Adjusted EBITDA, as well as the GAAP measures revenue, gross profit, income (loss) from operations and net income (loss), on a segment and/or consolidated level to facilitate internal and external comparisons to the segments' and Genie Energy's historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.

Although depreciation and amortization are considered operating costs under GAAP, they primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. While Genie Energy's oil and gas exploration business may be capital intensive, Genie Energy does not expect to incur significant depreciation or depletion expense for the foreseeable future. Genie Energy's operating results exclusive of depreciation and amortization is therefore a useful indicator of its current performance.

Stock-based compensation recognized by Genie Energy and other companies may not be comparable because of the various valuation methodologies, subjective assumptions and the variety of types of awards that are permitted under GAAP. Stock-based compensation is excluded from Genie Energy's calculation of Adjusted EBITDA because management believes this allows investors to make more meaningful comparisons of the operating results of Genie Energy's core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for Genie Energy for the foreseeable future and an important part of employees' compensation that impacts their performance.

Impairment of goodwill is a component of (loss) income from operations that is excluded from the calculation of Adjusted EBITDA. The impairment of goodwill is primarily dictated by events and circumstances outside the control of management that trigger an impairment analysis. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of Genie Energy's continuing operations.

Pro forma revenue and pro forma income (loss) from operations as well as Adjusted EBITDA should be considered in addition to, not as a substitute for, or superior to, revenue, gross profit, income from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, Genie Energy's measurements of pro forma revenue, pro forma income (loss) from operations and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Following are the reconciliations of GRE International's pro forma results and Adjusted EBITDA to its most directly comparable GAAP measure.  Pro forma revenue for the GRE International segment is reconciled to the segment's revenue, and GRE International's pro forma loss from operations is reconciled to the segment's loss from operation.  Adjusted EBITDA is reconciled to income from operations for Genie Energy's reportable segments and net income for Genie Energy on a consolidated basis.

Reconciliation of pro forma GRE International revenue and loss from operations


1Q20

GREI segment revenue

$                   7.0

plus Orbit revenue

$                 19.6

Pro forma GREI segment revenue

$                 26.6



GREI segement loss from operations

$                 (2.5)

plus Orbit energy loss from operations

$                 (3.0)

Pro forma GREI segment loss from operations

$                 (5.5)

 

Reconciliation of Adjusted EBITDA



Total


GRE


Genie R
enewables


GREI


CORP

Three months ended March 31, 2021 (1Q21)










Net loss attributable to Genie Energy Limited

$             (1,986)









Net income attributable to non-controlling interests

(708)









Net income

$             (2,694)









Provision for income taxes

535









Unrealized gain on marketable equity securities and investments

(4,107)









Other income, net

(297)









Interest income

(84)









Interest Expense

182









Equity in the net income of equity method investees

(110)









Income from operations

$             (6,575)


$               1,204


$                  559


$             (6,660)


$             (1,678)

Add:












Stock-based compensation

589


162


-


32


395


Depreciation and amortization

1,331


118


12


1,202


0


Impairment 

-


-


-


-


-

Subtract:











Equity in the net income of equity method investees

(110)


-


-


-


(110)

Adjusted EBITDA 

$             (4,544)


$               1,483


$                  571


$             (5,427)


$             (1,172)

























Total


GRE


Genie
Renewables


GREI


CORP

Three months ended December 31, 2020 (4Q20)










Net income attributable to Genie Energy Limited

$             (1,369)









Net income attributable to non-controlling interests

3,425









Net income

$               2,056









Provision for income taxes

2,752









Gain on acquisition of a subsidiary

(5,473)









Other income, net

(251)









Interest income

(59)









Interest expense

139









Equity in the net loss of equity method investees

(255)









Income from operations

$             (1,092)


$               5,306


$             (1,187)


$             (2,931)


$             (2,280)

Add:












Stock-based compensation

(203)


(40)


-


42


(205)


Depreciation and amortization

1,329


118


11


1,138


62


Impairment 

404


-


404


-


-

Subtract:











Equity in the net loss (income) of equity method investees

(255)


-


-


-


(255)

Adjusted EBITDA 

$                  693


$              5,384


$                (772)


$            (1,751)


$             (2,168)

























Total


GRE


Genie
Renewables


GREI


CORP

Three months ended March 31, 2020 (1Q20)










Net income attributable to Genie Energy Limited

$               5,832









Net income attributable to non-controlling interests

589









Net income

$               6,421









Provision for income taxes

2,569









Other income, net

(150)









Interest income

123









Interest expense

(128)









Equity in the net loss of equity method investees

379









Income from operations

$               9,214


$            13,017


$                  342


$             (2,520)


$             (1,625)

Add:












Stock-based compensation

483


156


-


37


290


Depreciation and amortization

826


112


208


490


16


Impairment 

192


-


192


-


-

Subtract:











Equity in the net loss (income) of equity method investees

379


-


-


-


379

Adjusted EBITDA 

$            10,336


$            13,285


$                 742


$             (1,993)


$             (1,698)

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/genie-energy-ltd-reports-first-quarter-2021-results-301285242.html

SOURCE Genie Energy Ltd.

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10/22/2021 8:18:57 AM1261837