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Genie Energy Ltd. – ‘8-K’ for 8/5/19 – ‘EX-99.1’

On:  Monday, 8/5/19, at 7:51am ET   ·   For:  8/5/19   ·   Accession #:  1213900-19-14563   ·   File #:  1-35327

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 8/05/19  Genie Energy Ltd.                 8-K:2,9     8/05/19    2:323K                                   Edgar Agents LLC/FA

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                      HTML     19K 
 2: EX-99.1     Press Release, Dated August 5, 2019, Reporting the  HTML    133K 
                Results of Operations for the Quarter Ended June                 
                30, 2019                                                         

Exhibit 99.1

Genie Energy Ltd. Reports Second Quarter 2019 Results

NEWARK, NJ — August 5, 2019: Genie Energy Ltd. (NYSE: GNE, GNEPRA) reported a second quarter 2019 net loss of $0.29 per share on revenue of $61.0 million.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

(Throughout this release, 2Q19 results are compared to 2Q18 results unless otherwise noted)

COMMENTS OF MICHAEL STEIN, CEO

“Genie Energy made good operational progress in the second quarter as we continued to invest in growth across the company. We generated notable increases in our customer bases in both our US and overseas markets. Through the first half of the year, we have added 101 thousand RCEs, increasing our customer base by 39%. Following the quarter close, we launched operations in Texas’ deregulated electricity market and obtained a license to supply natural gas in Michigan.

“The second quarter is typically the lowest consumption quarter of the year, and the mild weather this spring further reduced domestic retail profitability while our investments in customer acquisition materially increased SG&A expense. Our P&L was also impacted by declines in wholesale electricity and natural gas markets during the quarter which also triggered mark-to-market losses of approximately $1.8 million on the unrealized value of our commodity hedges. While this combination of factors resulted in weaker than usual results this quarter, the fundamentals of our business remain strong and our outlook remains positive.

CONSOLIDATED RESULTS

*Adjusted EBITDA for all periods 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 Measure at the end of this release for an explanation of Adjusted EBITDA and reconciliation to the most directly comparable GAAP measure.

* * Genie Energy accounts for its investments in Orbit Energy, its joint venture operating in the U.K. and Atid, a drilling services business based in Israel in which it holds a minority stake, under the equity method of accounting. Under this method, Genie Energy records its share in the net income or loss of the venture. Therefore, revenue generated, and expenses incurred are not reflected in Genie Energy’s consolidated revenue and expenses, but the customers are included in metrics regarding our customer base.

METERS AND RCEs

Genie Energy’s global customer base increased sequentially and year-over-year driven by robust customer acquisition programs in the U.S. and overseas markets. Genie Energy’s global RCE and meter totals are provided in the chart below.

*Includes RCEs and meters acquired and served by Genie Energy’s domestic and international retail energy provider businesses including operations at ventures and joint ventures in the U.K., Finland and Japan.

Consolidated Take-Aways

SEGMENT RESULTS

Genie Retail Energy (GRE)

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

Genie Energy Services (GES)

Genie Retail Energy International (GRE International)

(Genie Energy accounts for its investments in Orbit Energy, its joint venture operating in the U.K., under the equity method of accounting. Revenue generated, and expenses incurred are not reflected in segment revenue and operating expenses. RCEs and meters reported do, however, include Orbit Energy customers).

Genie Oil and Gas (GOGAS)

Corporate

BALANCE SHEET HIGHLIGHTS

At June 30, 2019, Genie Energy had $147.6 million in total assets, including $39.9 million in cash, cash equivalents and restricted cash. Liabilities totaled $58.9 million and working capital (current assets less current liabilities) totaled $42.7 million.

DIVIDEND ON GENIE ENERGY COMMON STOCK

Genie Energy's Board of Directors has declared a 2Q19 dividend of $0.075 per share of Class A and Class B common stock with a record date of August 16, 2019. The dividend will be paid on or about August 23, 2019. The distribution will be treated as an ordinary dividend for income tax purposes.

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 time today, August 5, 2019, 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 toll-free 1-888-348-6472 (from the US) or 1-412-902-4240 (international) and request the Genie Energy conference call.

The call replay will be available at 1-844-512-2921 (US toll-free) or 1-412-317-6671 (international) through August 12, 2019. The replay PIN is 10133751. A recording of the call - in MP3 format - will also 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 [CONSIDER WHETHER REFERRING TO GENIE AS “GLOBAL” IS A BIT MUCH] provider of energy services. The Genie Retail Energy division supplies electricity and natural gas primarily to residential and small business customers in the United States. The Genie Retail Energy International division supplies customers in Europe and Asia. The Genie Energy Services division includes Diversegy, a commercial brokerage and marketing services company, and Genie Solar Energy, a provider of solar generation systems. 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.

Contact:

Genie Energy Investor Relations

Bill Ulrey

P: (973) 438-3848

E-mail: invest@genie.com

GENIE ENERGY LTD. 

CONSOLIDATED BALANCE SHEETS

(Unaudited)

GENIE ENERGY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

GENIE ENERGY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

Reconciliation of Non-GAAP Financial Measure for the Second Quarter 2019

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 also disclosed for the second quarter 2019, as well as for comparable periods, Adjusted EBITDA, which is a non-GAAP measure. 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 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 and stock-based compensation and subtract equity in net loss in equity method investees, net.

Management believes that Genie Energy’s Adjusted EBITDA provides 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 Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision making. In addition, management uses Adjusted EBITDA to evaluate operating performance in relation to Genie Energy’s competitors. Disclosure of this 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.

Management refers to Adjusted EBITDA, as well as the GAAP measures 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.

Adjusted EBITDA should be considered in addition to, not as a substitute for, or superior to, 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 Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Following is the reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, which is income from operations, for Genie Energy’s reportable segments and net income for Genie Energy on a consolidated basis.

Genie Energy Ltd.

Reconciliation of Adjusted EBITDA to Net Income (Loss)

(unaudited)
$ in thousands  

# # #

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Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘8-K’ Filing		Date		Other Filings
		8/23/19
		8/16/19
		8/12/19
Filed on / For Period end:		8/5/19
		6/30/19
		3/31/19		10-Q
		12/31/18		10-K,  NT 10-K
		9/30/18		10-Q
		6/30/18		10-Q
				List all Filings

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Filing Submission 0001213900-19-014563   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

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