Genie Energy Announces Fourth Quarter and Full-Year 2021 Results

    Author microcapwatchPosted on Categories EnergyTags , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

    <br /> Genie Energy Announces Fourth Quarter and Full-Year 2021 Results<br />

    Strong risk and portfolio management drives 53% increase in fourth quarter gross profit

    Genie Retail International generates fourth quarter revenue growth of 64%

    Finishes the year with strongest balance sheet in recent history

    PR Newswire


    NEWARK, N.J.

    ,

    March 10, 2022

    /PRNewswire/ — Genie Energy, Ltd. (NYSE: GNE, GNEPRA), a leading retail energy provider in deregulated markets in

    the United States

    and Scandinavia and a provider of renewable energy solutions in the U.S., today announced results for its fourth quarter and full-year ended

    December 31, 2021

    .

    “Genie finished the year on a high note, reporting strong numbers across our three segments,” said

    Michael Stein

    , chief executive officer. “We were well-positioned from a risk management perspective heading into the Winter months in our U.S. retail business (GRE), which allowed us to focus on higher-margin customers as lower margin aggregation deals expired. This rotation drove a 900-basis point expansion in gross margin in the segment year over year.

    “Our strong position in Scandinavia (GREI) led to 63% revenue growth and 51% gross margin growth for the year. During the second half of the year, this market began to consolidate as higher energy prices decreased the number of market participants. We took advantage of these conditions with a small acquisition in the fourth quarter and will continue to put our balance sheet to work should additional opportunities arise.

    “I was also encouraged by key trends in our renewables business. Gross profit increased 26%, and gross margin was up nearly 400%, as we transitioned from revenue generated by panel sales to service revenue. In 2022, we expect revenue and gross profit to accelerate as projects we signed or began in 2021 are completed in 2022.

    “Finally, we finished with the strongest balance sheet we’ve had in recent years. The balance sheet, combined with our strong operating performance, gave us the confidence to reinstate our quarterly dividend, yielding approximately 5% at the time of the announcement. Overall, the fourth quarter and full-year 2021 were successful for Genie, and I’m very optimistic about our financial and operational outlook for 2022,” concluded Stein.



    Fourth Quarter 2021 Highlights


    (versus 4Q20 unless otherwise noted)

    • Revenue increased 5.3% to $84.7 million;
    • Gross profit increased 53.0% to

      $29

      .6 million, and gross margin increased to 34.9% from 24.0%;
    • Income from operations increased to

      $10.7 million

      from

      $1.3 million

      ; operating margin increased to 12.7% from 1.6%;
    • Adjusted EBITDA

      1

      increased to $12.5 million from

      $2.5 million

      ;
    • GRE generated income from operations and Adjusted EBITDA of

      $8.7 million

      and

      $8.8 million

      , compared to

      $5.3 million

      and

      $5.4 million

      , respectively;
    • Net income attributable to GNE common stockholders was

      $29.2 million

      , and diluted income per share (EPS) was

      $1.12

      compared to a net loss of

      ($1.7) million

      and diluted loss per share of

      ($0.06)

      .



    Full-Year 2021 Highlights


    (versus 2020 unless otherwise noted)

    • Revenue increased 1.9% to $363.7 million;
    • Gross profit increased 10.3% to

      $104

      .9 million, and gross margin increased to 28.8% from 26.6%;
    • Income from operations increased 51.3% to

      $33.1 million

      from

      $21.9 million

      ; operating margin decreased to 9.1% from 6.1%;
    • Adjusted EBITDA increased to $37.7 million;
    • GRE generated income from operations and Adjusted EBITDA of

      $34.7 million

      and

      $36

      .0 million, compared to $36.5 million and $37.4 million, respectively;
    • Net income attributable to GNE common stockholders of

      $30.8 million

      , and diluted EPS of

      $1.17

      (including

      $0.28

      per share related to the Company’s exit from the U.K. market) compared to net income of

      $11.7 million

      and diluted EPS of $0.44;
    • Re-purchased 622,932 shares of GNE common stock for $3.8 million.



    1

    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 reconciliations to its most directly comparable GAAP measure.



    Select Financial Metrics: 2021 versus 2020 as of 12/31/21*



    (in $M except for EPS)



    Q421



    Q420



    Change



    2021



    2020



    Change



    Total Revenue



    $84.7



    $80.5



    5.3%



    $363.7



    $356.9



    1.9%


    Genie Retail – US (GRE)


    $67.9


    $69.9


    -2.9%


    $311.8


    $304.4


    2.4%



    Electricity



    $54.9



    $60.5



    -9.3%



    $273.0



    $270.9



    0.8%



    Natural Gas



    $12.9



    $9.4



    38.0%



    $38.8



    $33.6



    15.6%


    Genie Retail – International (GREI)**


    $15.5


    $9.4


    64.3%


    $44.4


    $27.3


    62.8%



    Electricity



    $15.2



    $9.3



    63.7%



    $43.3



    $26.6



    62.6%



    Other



    $0.3



    $0.1



    103.8%



    $1.1



    $0.6



    69.9%


    Genie Renewables


    $1.3


    $1.1


    19.3%


    $7.5


    $25.2


    -70.2%



    Gross Margin



    34.9%



    24.0%



    1089bps



    28.8%



    26.6%



    220bps


    Genie Retail – US (GRE)


    34.5%


    25.5%


    900bps


    29.1%


    29.0%


    14bps


    Genie Retail – International (GREI)


    37.8%


    19.2%


    1855bps


    25.2%


    16.6%


    862bps


    Genie Renewables


    21.5%


    -29.0%


    5047bps


    37.1%


    8.8%


    2829bps



    Income from Operations



    $10.7



    $1.3



    731.5%



    $33.1



    $21.9



    51.3%



    Operating Margin



    12.7%



    1.6%



    1107bps



    9.1%



    6.1%



    297bps



    Net income attributable to Discontinued Operations



    $26.3



    $2.0



    nm



    $5.5



    $0.8



    636.3%



    Net income (loss) attributable to GNE common stockholders



    $29.2



    ($1.7)



    nm



    $29.1



    $11.7



    149.3%



    Diluted Earnings (Loss) Per Share



    $1.12



    ($0.06)



    nm



    $1.11



    $0.44



    154.0%



    Adjusted EBITDA

    1



    $12.5



    $2.5



    401.7%



    $37.7



    $27.4



    37.6%



    Cash Flow from Continuing Operating Activities***



    $21.0



    $1.2



    nm



    $21.3



    $25.1



    -14.8%


    nm = not measurable/meaningful


    *Numbers may not add due to rounding


    ** Orbit UK has been classified as a discontinued operation, and its results excluded from current and historical results


    *** Net cash provided by operating activities



    Select Business Metrics: 2021 versus 2020 as of 12/31/21**



    Units in 1000s



    Q421



    Q420



    Change



    Retail Performance Metrics:



    Retail Customer Equivalents (RCE)



    301



    389



    (22.6%)


    Genie Retail – US (GRE)***


    260


    337


    (22.8%)



    Electricity



    189



    284


    (33.4%)



    Natural Gas



    71



    53


    33.5%


    Genie Retail – International (GREI)


    40


    51


    (21.5%)



    Electricity



    40



    51


    (21.5%)



    Natural Gas



    —



    —



    Meters


    in 1000s units



    352



    441



    (20.1%)


    Genie Retail – US (GRE)


    285


    368


    (22.5%)



    Electricity



    210



    303


    (30.6%)



    Natural Gas



    75



    65


    15.9%


    Genie Retail – International (GREI)


    67


    73


    (8.2%)



    Electricity



    67



    73


    (8.2%)



    Natural Gas



    —



    —


    —



    GRE Average Monthly Churn – Meters***



    Gross Sales



    33



    59


    (44.1%)



    Churn



    6.2%



    5.3%


    90bps


    ** Orbit UK has been classified as a discontinued operation and its results excluded from current and historical results


    *** Excludes impact from the expiration aggregation deals

    GRE delivered record levels of gross profit, income from operations, and Adjusted EBITDA for the quarter driven by strong margins in the retail book and mark-to-market increases in the value of its forward commodity positions after electricity and natural gas prices rose sharply. Operationally, GRE served

    260k

    RCEs on December 31, 2021, a drop from the prior quarter-end as an aggregation deal did not renew, and the Company allowed certain less profitable meters to attrit in advance of the winter. While decreasing slightly compared to the year-ago quarter, per meter consumption remained well above pre-COVID levels. In addition, at 6.2% (excluding the impact from the expired aggregation deal), monthly churn was higher than usual due to the strategic decision not to renew certain customers. Looking ahead into 2022, the Company expects to increase its investment in new customer acquisition.

    GREI revenue and Adjusted EBITDA growth were driven by higher consumption and mark to market prices in Scandinavia, which also benefitted gross margin.

    Genie Renewables, which was re-organized to focus on higher-margin services projects, delivered a gross margin of 21.5% versus (29%) in the fourth quarter of 2020.



    Balance Sheet and Cash Flow Highlights



    On

    December 31, 2021

    , Genie Energy reported

    $229.0 million

    in total assets, including

    $103.5 million

    in cash, restricted cash and marketable equity securities. Liabilities totaled

    $116.7 million

    , and working capital (current assets less current liabilities) totaled

    $86.1 million

    . Non-current liabilities were

    $2.4 million

    . Subsequent to the end of the fourth quarter, cash and current liabilities were reduced by

    $21.5 million

    related to the exit from the U.K. market.

    During the quarter ended

    December 31, 2021

    , cash provided by operating activities was

    $21.0 million

    compared to

    $1.2 million

    a year ago.



    2022 Commentary



    “For the first quarter to date, GRE and GREI, which are predominantly electricity-based, have been insulated against the volatility of energy prices due to our strong risk management programs. We continue to monitor our commodity positions vis-à-vis our customer portfolio in light of the current geopolitical climate, but we believe these businesses remain well-positioned.

    “Beyond the first quarter, we currently plan to invest in sales and marketing activities to drive customer growth in GRE and GREI. Genie Renewables is positioned for robust growth during 2022 with current solar project signed contracts that, if constructed and completed, would triple our solar revenue from 2021. Overall, we expect Genie Renewables to deliver

    $15

    -20 million of revenue in 2022 while we continue to invest in opportunities that will drive medium to long-term growth,” concluded Stein.



    Trended Financial Information:*,**



    (in $M except for EPS, RCE and Meters)



    Q120



    Q220



    Q320



    Q420



    Q121



    Q221



    Q321



    Q421



    2020



    2021



    Total Revenue



    $104.1



    $76.1



    $96.3



    $80.5



    $107.5



    $76.4



    $95.1



    $84.7



    $356.9



    $363.7


    Genie Retail – US (GRE)


    $79.1


    $66.5


    $88.9


    $69.9


    $90.7


    $67.0


    $86.3


    $67.9


    $304.4


    $311.8



    Electricity



    $63.1



    $61.1



    $86.2



    $60.5



    $73.4



    $91.9



    $82.8



    $54.9



    $270.9



    $273.0



    Natural Gas



    $16.1



    $5.4



    $2.7



    $9.4



    $17.3



    $5.1



    $3.5



    $12.9



    $33.6



    $38.8


    Genie Retail – International (GREI)**


    $7.0


    $5.0


    $5.8


    $9.4


    $14.3


    $7.1


    $7.5


    $15.5


    $27.3


    $44.4



    Electricity



    $6.9



    $4.8



    $5.6



    $9.3



    $14.2



    $6.8



    $7.1



    $15.2



    $26.6



    $43.3



    Other



    $0.1



    $0.2



    $0.2



    $0.1



    $0.1



    $0.3



    $0.4



    $0.3



    $0.6



    $1.1


    Genie Renewables


    $18.0


    $4.6


    $1.6


    $1.1


    $2.5


    $2.3


    $1.3


    $1.3


    $25.2


    $7.5



    Gross Margin



    27.8%



    25.6%



    28.4%



    24.0%



    11.8%



    27.8%



    43.5%



    34.9%



    26.6%



    28.8%


    Genie Retail – US (GRE)


    34.9%


    25.7%


    29.0%


    25.5%


    16.5%


    27.4%


    39.6%


    34.5%


    29.0%


    29.1%


    Genie Retail – International (GREI)


    -4.1%


    38.0%


    18.7%


    19.2%


    -23.9%


    27.9%


    91.0%


    37.8%


    16.6%


    25.2%


    Genie Renewables


    8.9%


    11.4%


    29.1%


    -29.0%


    44.9%


    39.4%


    34.0%


    21.5%


    8.8%


    37.1%



    Income (loss) from Operations



    $9.2



    $2.7



    $8.6



    $1.3



    ($5.5)



    $4.5



    $23.3



    $10.7



    $21.9



    $33.1



    Operating Margin



    8.9%



    3.6%



    9.0%



    1.6%



    -5.1%



    5.9%



    24.5%



    12.7%



    6.1%



    9.1%



    Net income (loss) attributable to

    Discontinued Operations



    $0.0



    ($1.1)



    ($0.1)



    $2.0



    ($1.1)



    ($3.2)



    ($16.4)



    $26.3



    $0.8



    $5.5



    Net income (loss) attributable to GNE

    common stockholders



    $5.5



    $1.6



    $6.4



    ($1.7)



    ($2.4)



    $5.0



    ($2.7)



    $29.2



    $11.7



    $29.1



    Diluted Earnings (Loss) Per Share



    $0.20



    $0.06



    $0.24



    ($0.06)



    ($0.09)



    $0.19



    ($0.11)



    $1.12



    $0.44



    $1.11



    Adjusted EBITDA



    $10.3



    $5.0



    $9.6



    $2.5



    ($4.4)



    $5.5



    $24.2



    $12.5



    $27.4



    $37.7



    Retail Performance Metrics:



    Retail Customer Equivalents (RCE)

    in 1000s



    360



    375



    391



    389



    400



    384



    383



    301



    nm



    nm


    Genie Retail – US (GRE)


    330


    343


    350


    337


    347


    330


    336


    260



    nm



    nm



    Electricity



    272



    288



    294



    284



    291



    272



    276



    189



    nm



    nm



    Natural Gas



    58



    55



    56



    53



    56



    58



    60



    71



    nm



    nm


    Genie Retail – International (GREI)


    30


    32


    41


    51


    53


    55


    46


    40



    nm



    nm



    Electricity



    30



    32



    41



    51



    53



    55



    46



    40



    nm



    nm



    Natural Gas



    —



    —



    —



    —



    —



    —



    —



    —



    nm



    nm



    Meters

    in 1000s units



    431



    426



    438



    441



    447



    434



    428



    352



    nm



    nm


    Genie Retail – US (GRE)***


    384


    374


    375


    368


    373


    361


    361


    285



    nm



    nm



    Electricity



    313



    311



    309



    303



    308



    292



    289



    210



    nm



    nm



    Natural Gas



    71



    64



    67



    65



    65



    69



    72



    75



    nm



    nm


    Genie Retail – International (GREI)


    47


    51


    63


    73


    74


    74


    67


    67



    nm



    nm



    Electricity



    47



    51



    63



    73



    74



    74



    67



    67



    nm



    nm



    Natural Gas



    —



    —



    —



    —



    —



    —



    —



    —



    nm



    nm



    GRE Average Monthly Churn – Meters***



    Gross Sales



    69



    40



    44



    59



    60



    35



    46



    33



    212



    144



    Churn



    4.3%



    3.9%



    3.7%



    5.3%



    4.9%



    3.8%



    4.0%



    6.2%



    4.4%



    4.5%


    nm = not measurable/meaningful


    *Numbers may not add due to rounding


    ** Orbit UK has been classified as a discontinued operation and its results excluded from current and historical results


    *** Excludes impact from the expiration of aggregation deals



    Earnings Announcement and Supplemental Information



    Genie Energy will issue an earnings release over a wire service and post it in the “Investors” section of the Genie Energy website (

    Investor Relations



    ) at

    7:30 AM

    Eastern. The release also will be filed in a current report (Form 8-K) with the SEC.

    At

    8:30 AM

    Eastern, 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 1-888-506-0062 (toll-free from the U.S.) or 1-973-528-0011 (international) and provide the following participant access code: 712004.

    Approximately three hours after the call, a call replay will be accessible by dialing 1-877-481-4010 (toll-free from the U.S.) or 1-919-882-2331 (international) and providing the replay PIN: 44740. The replay will remain available through

    March 17, 2022

    . A recording of the call also will be available for playback on the “Investors” section of the Genie Energy website.



    About Genie Energy Ltd.



    Genie Energy Ltd. (NYSE: GNE, GNEPRA), is a 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 selected markets in

    Europe

    . Genie Renewables 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



    December 31



    (in thousands, except per share amounts)



    2021



    2020



    ASSETS



    CURRENT ASSETS:


    Cash and cash equivalents



    $



    95,492


    $


    31,902


    Restricted cash—short-term



    6,657


    6,271


    Marketable equity securities



    1,336


    5,089


    Trade accounts receivable, net of allowance for doubtful accounts of $6,365 and $4,819 at December 31, 2021 and 2020, respectively



    52,357


    48,370


    Inventory



    17,720


    16,930


    Prepaid expenses



    4,994


    4,453


    Other current assets



    21,789


    3,166


    Other current assets of discontinued operations



    —


    17,639



    TOTAL CURRENT ASSETS



    200,345


    133,820


    Property and equipment, net



    297


    247


    Goodwill



    11,755


    11,879


    Other intangibles, net



    3,648


    4,689


    Deferred income tax assets, net



    3,804


    5,099


    Other assets



    9,162


    7,480


    Noncurrent assets of discontinued operations



    —


    24,125



    TOTAL ASSETS



    $



    229,010


    $


    187,339



    LIABILITIES AND EQUITY



    CURRENT LIABILITIES:


    Loans payable



    $



    —


    $


    1,453


    Trade accounts payable



    33,554


    26,928


    Accrued expenses



    39,523


    35,015


    Income taxes payable



    9,337


    1,893


    Due to IDT Corporation



    532


    257


    Other current liabilities



    2,125


    2,891


    Current liabilities of discontinued operations



    29,200


    29,036



    TOTAL CURRENT LIABILITIES



    114,271


    97,473


    Other liabilities



    2,384


    2,002


    Noncurrent liabilities of discontinued operations



    —


    1,785



    TOTAL LIABILITIES



    116,655


    101,260


    Commitments and contingencies (Note 15 and Note 16)



    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 December 31, 2021 and 2020



    19,743


    19,743


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



    16


    16


    Class B common stock, $0.01 par value; authorized shares – 200,000; 26,620 and 25,966 shares issued and 24,615 and 24,646 shares outstanding at December 31, 2021 and 2020, respectively



    266


    260


    Additional paid-in capital



    143,249


    140,746


    Treasury stock, at cost, consisting of 2,005 and 1,320 shares of Class B common at December 31, 2021 and 2020, respectively



    (14,034)


    (9,839)


    Accumulated other comprehensive income



    3,160


    3,827


    Accumulated deficit



    (27,549)


    (56,658)


    Total Genie Energy Ltd. stockholders’ equity



    124,851


    98,095


    Noncontrolling interests



    (12,503)


    (12,016)



    TOTAL EQUITY



    112,355


    86,079



    TOTAL LIABILITIES AND EQUITY



    $



    229,010


    $


    187,339



    GENIE ENERGY LTD.

    CONSOLIDATED STATEMENTS OF OPERATIONS



    Year ended December 31,



    (in thousands, except per share data)



    2021



    2020



    REVENUES:


    Electricity



    $



    316,320


    $


    297,516


    Natural gas



    38,812


    33,561


    Other



    8,593


    25,853


    Total revenues



    363,725


    356,930


    Cost of revenues



    258,864


    261,877



    GROSS PROFIT



    104,861


    95,053



    OPERATING EXPENSES AND LOSSES:


    Selling, general and administrative

    (i)



    71,770


    71,784


    Impairment of assets



    —


    1,397


    Income from operations



    33,091


    21,872


    Interest income



    34


    190


    Interest expense



    (427)


    (328)


    Unrealized (loss) gain on marketable equity securities and investments



    (4,970)


    348


    Gain on sale of subsidiary



    4,226


    —


    Other income, net



    707


    351


    Income before income taxes



    32,661


    22,433


    Provision for income taxes



    (8,789)


    (7,631)



    NET INCOME FROM CONTINUING OPERATIONS



    23,872


    14,802


    Income from discontinued operations, net of tax



    5,536


    752



    NET INCOME



    29,408


    15,554


    Net loss (income) attributable to noncontrolling interests



    1,372


    (2,399)



    NET INCOME ATTRIBUTABLE TO GENIE ENERGY LTD.



    30,780


    13,155


    Dividends on preferred stock



    (1,678)


    (1,481)



    NET INCOME ATTRIBUTABLE TO GENIE ENERGY LTD. COMMON STOCKHOLDERS



    $



    29,102


    $


    11,674


    Amounts attributable to Genie Energy Ltd. common stockholders


    Income from continuing operations



    $



    23,566


    $


    10,922


    Income from discontinued operations



    5,536


    752


    Net income attributable to Genie Energy Ltd.



    $



    29,102


    $


    11,674


    Earnings per share attributed to Genie Energy Ltd. common stockholders


    Basic


    Income from continuing operations



    $



    0.91


    $


    0.42


    Income from discontinued operations



    0.21


    0.03


    Net income attributable to Genie Energy Ltd. common stockholders



    $



    1.12


    $


    0.45


    Diluted


    Income from continuing operations



    $



    0.90


    $


    0.41


    Income from discontinued operations



    0.21


    0.03


    Net income attributable to Genie Energy Ltd. common stockholders



    $



    1.11


    $


    0.44


    Weighted-average number of shares used in the calculation of earnings per share


    Basic



    25,879


    26,109


    Diluted



    26,316


    26,813


    Dividends declared per common share



    $



    —


    $


    0.33


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



    $



    2,930


    $


    1,134



    GENIE ENERGY LTD.



    CONSOLIDATED STATEMENTS OF CASH FLOWS



    Year ended December 31,



    (in thousands)



    2021



    2020



    OPERATING ACTIVITIES


    Net income



    $



    29,408


    $


    15,554


    Net income from discontinued operations, net of tax



    5,536


    752


    Net income from continuing operations



    23,872


    14,802


    Adjustments to reconcile net income to net cash provided by operating activities:


    Depreciation and amortization



    1,282


    2,962


    Deferred income taxes



    1,296


    7,055


    Provision for doubtful accounts receivable



    1,750


    2,844


    Impairment of assets



    —


    1,397


    Stock-based compensation



    2,930


    1,134


    Equity in the net income of equity method investees



    (438)


    (59)


    Loss on sale of assets, net



    —


    262


    Unrealized loss (gain) on marketable equity securities and investment



    4,970


    (348)


    Gain on sale of subsidiary



    (4,226)


    —


    Gain on deconsolidation of subsidiaries


    —


    (98)


    Change in assets and liabilities, net of effect of acquisition:


    Trade accounts receivable



    (7,473)


    (2,281)


    Inventory



    (790)


    (298)


    Prepaid expenses



    (932)


    1,894


    Other current assets and other assets



    (20,358)


    (4,011)


    Trade accounts payable, accrued expenses and other current liabilities



    11,713


    (405)


    Due to IDT Corporation



    275


    (124)


    Income taxes payable



    7,444


    302


    Net cash provided by operating activities of continuing operations



    21,315


    25,028


    Net cash provided by (used in) discontinued operations



    45,679


    (1,909)


    Net cash provided by operating activities



    66,994


    23,119



    INVESTING ACTIVITIES


    Capital expenditures



    (126)


    (167)


    Purchase of marketable equity security and investment



    (1,000)


    (5,000)


    Proceeds from the sale of subsidiary, net of cash disposed



    4,550


    —


    Purchase of short-term equity investments



    (750)


    —


    Repayment of notes receivables



    13


    12


    Proceeds from sale of assets



    —


    2,672


    Net cash provided by (used in) investing activities of continuing operations



    2,687


    (2,483)


    Net cash used in investing activities of discontinued operations



    —


    (544)


    Net cash provided by (used in) investing activities



    2,687


    (3,027)



    FINANCING ACTIVITIES


    Dividends paid



    (1,480)


    (10,142)


    Purchases of Class B common stock



    (3,847)


    (1,704)


    Repurchases of Class B common stock from employees



    (348)


    (460)


    Repayment of notes payable



    —


    (867)


    Proceeds from exercise of stock options



    —


    28


    Proceeds from revolving line of credit



    —


    1,000


    Repayment of revolving line of credit



    —


    (3,514)


    Proceeds from loan



    —


    1,395


    Repayment of loan payable



    —


    (930)


    Net cash used in financing activities of continuing operations



    (5,675)


    (15,194)


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



    (30)


    (268)


    Net increase in cash, cash equivalents and restricted cash



    63,976


    4,630


    Cash, cash equivalents and restricted cash (including discontinued operations) at beginning of year



    38,173


    38,554



    Cash, cash equivalents and restricted cash (including discontinued operations) at end of year



    102,149


    43,184


    Less: Cash of discontinued operations at end of year



    —


    (5,011)



    Cash and cash equivalents and restricted cash (excluding discontinued operations) at end of year



    $



    102,149


    $


    38,173



    SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION


    Cash payments made for interest



    $



    433


    $


    333


    Cash payments made for income taxes



    $



    49


    $


    741




    Reconciliation of Non-GAAP Financial Measures for the Fourth Quarter and Full Year 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 fourth quarter and full year 2021, as well as for the third quarter 2020, Adjusted EBITDA on a consolidated basis and for its Genie Retail Energy segment.  Adjusted EBITDA 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 consolidated Adjusted EBITDA starts with net income and adds back interest, taxes, depreciation, amortization, stock-based compensation and impairment of assets and subtracts out equity in the net loss of equity method investees, net.  Genie Energy’s measure of segment level Adjusted EBITDA starts with income (loss) from operations, and adds back depreciation, amortization, stock-based compensation and subtracts out impairment of assets and equity in the net loss of equity method investees, net.

    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 measurement of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

    Management believes that Genie Energy’s measure of Adjusted EBITDA provides useful information to both management and investors by excluding certain expenses that may not be indicative of Genie Energy’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.

    Management also uses Adjusted EBITDA to evaluate operating performance in relation to Genie Energy’s competitors. Disclosure of this 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.

    Management refers to Adjusted EBITDA as well as the GAAP measures revenue, gross profit, income (loss) from operations and net income (loss), on a consolidated level to facilitate internal and external comparisons to 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. Genie Energy’s operating results exclusive of depreciation and amortization are therefore useful indicators 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.

    Following are the reconciliations of Adjusted EBITDA on a consolidated basis to its most directly comparable GAAP measure.  Adjusted EBITDA is reconciled to net income for Genie Energy on a consolidated basis and for the Genie Retail Energy (GRE) segment.



    NON-GAAP RECONCILIATION


    (in $M)




    Q120




    Q220




    Q320




    Q420




    Q121




    Q221




    Q321




    Q421




    2021




    2020


    Net income (loss) attributable to Genie Energy Limited



    $  5.8



    $  2.0



    $  6.7



    $  (1.4)



    $  (2.0)



    $  5.4



    $  (2.3)



    $  29.7



    $  30.8



    $  13.2


    Net income (los)s attributable to non-controlling interests



    0.6



    (1.1)



    (0.5)



    3.4



    (0.7)



    (0.1)



    (0.0)



    (0.6)



    (1.4)



    2.4


    Net income (loss)



    6.4



    0.9



    6.2



    2.1



    (2.7)



    5.3



    (2.3)



    29.2



    29.4



    15.6


    Discontinued operations



    (0.0)



    1.1



    0.1



    (2.0)



    1.1



    3.2



    16.4



    (26.3)



    (5.5)



    (0.8)


    Provision for income taxes



    2.6



    1.0



    2.4



    1.6



    0.5



    3.2



    3.8



    1.3



    8.8



    7.6


    Other income, net



    0.2



    (0.3)



    (0.1)



    (0.2)



    (0.4)



    (0.0)



    (0.0)



    (0.2)



    (0.7)



    (0.4)


    Gain on sale of a subsidiary



    –



    –



    –



    –



    –



    (4.2)



    –



    –



    (4.2)



    –


    Unrealized gain (loss) on marketable equity securities and investments



    –



    –



    –



    (0.3)



    (4.1)



    (2.9)



    5.3



    6.7



    5.0



    (0.3)


    Interest income



    (0.1)



    (0.0)



    (0.0)



    (0.0)



    (0.0)



    (0.0)



    (0.0)



    (0.0)



    (0.0)



    (0.2)


    Interest expense



    0.1



    0.1



    0.0



    0.1



    0.1



    0.1



    0.1



    0.1



    0.4



    0.3


    Income (loss) from operations



    9.2



    2.7



    8.6



    1.3



    (5.5)



    4.5



    23.3



    10.7



    33.1



    21.9



    Add:


    Stock-based compensation



    0.5



    0.4



    0.4



    (0.2)



    0.6



    0.6



    0.5



    1.3



    2.9



    1.1


    Depreciation and amortization



    0.8



    0.7



    0.7



    0.7



    0.4



    0.3



    0.3



    0.3



    1.3



    3.0


    Impairment



    0.2



    0.8



    –



    0.4



    –



    –



    (0.0)



    0.0



    –



    1.4



    Subtract:


    Equity in the net income of equity method investees



    0.4



    (0.3)



    0.1



    (0.3)



    (0.1)



    (0.1)



    (0.1)



    (0.2)



    (0.4)



    (0.1)


    Adjusted EBITDA



    $  10.3



    $  5.0



    $  9.6



    $  2.5



    $  (4.4)



    $  5.5



    $  24.2



    $  12.5



    $  37.7



    $  27.4

    Cision
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    SOURCE Genie Energy Ltd.

    PR Newswire
    March 10, 2022 – 4:30 AM PST