Nov 4, 2021 MicroCapNewsDaily

Genie Energy Announces Third Quarter 2021 Results

<br /> Genie Energy Announces Third Quarter 2021 Results<br />

Record consolidated gross margin, gross profit and Adjusted EBITDA(1)

Genie Retail Energy (GRE) achieved record operating profitability

Planned orderly withdrawal from U.K. retail market underway

PR Newswire


NEWARK, N.J.

,

Nov. 4, 2021

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

Europe

, and a provider of renewables solutions in the U.S., today announced results for its third quarter ended

September 30, 2021

.

“Genie Energy performed exceptionally well this quarter, generating record gross margin, gross profit and Adjusted EBITDA,” said

Michael Stein

, chief executive officer.  “Our performance was highlighted by strong results from both our U.S. and Scandinavian energy supply businesses.  Genie Renewables continued to experience robust customer demand, and we anticipate significant growth in the coming quarters.

“In our international business, as we previously announced, we are withdrawing from the U.K. market as a result of the impact of structural market limitations in the current high-cost environment.  Although we have set aside plans for the spin-off, looking ahead, we expect no new material negative cash impact as a result of the exit.  In fact, retiring from that market obviates the need to invest additional growth capital.”



Third Quarter 2021 Highlights


(3Q21 results versus 3Q20 unless otherwise noted)

  • Revenue increased 17.5% to

    $113.2 million

    ;
  • Gross profit increased 55.1% to

    $42.4 million

    and gross margin increased to 37.4% from 28.4%;
  • Income from operations decreased to

    $6.9 million

    from

    $8.5 million

    ; operating margin decreased to 6.1% from 8.8%. Income from operations included a loss from operations of

    $16.4 million

    in the UK (primarily expenses related to the Company’s withdrawal from that market) compared to a loss from operations of

    $4.2 million

    from the U.K. a year ago;
  • Adjusted EBITDA increased 58.5% to

    $15.0 million

    compared to

    $9.5 million

    ;
  • GRE generated record income from operations and Adjusted EBITDA of

    $19.7 million

    and

    $20.0 million

    , respectively, compared to

    $12.2 million

    and

    $12.5 million

    ;
  • Net loss attributable to GNE common stockholders was

    ($2.7) million

    and diluted loss per share was

    ($0.10)

    , including a

    $(0.26)

    per share writedown of assets related to the Company’s exit from the U.K. market. In the year-ago quarter, net income was

    $6.4 million

    and diluted earnings per share (EPS) was

    $0.24

    ; and,
  • Re-purchased 230,000 shares of GNE common stock for

    $1.4 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 for reconciliations to its most directly comparable GAAP measures.



Select Financial Metrics: Q3 2021 compared to Q3 2020



(in $M except for EPS)



3Q21



3Q20



Change



Consolidated Revenue



$113.2



$96.3



17.5%


Genie Retail – US (GRE)


$86.3


$88.9


(2.9)%



Electricity



$82.8



$86.2



(3.9)%



Natural Gas



$3.5



$2.7



29.1%


Genie Retail – International (GREI)


$25.5


$5.8


337.5%



Electricity



$21.0



$5.6



275.3%



Natural Gas



$4.1



$0.0



nm


Genie Renewables


$1.3


$1.6


(14.9)%



Gross Margin



37.4%



28.4%



910bp


Genie Retail – US (GRE)


39.6%


29.0%


1060bp


Genie Retail – International (GREI)


30.5%


18.7%


1180bp


Genie Renewables


34.0%


27.1%


690bp



Income from Operations



$6.9



$8.5



(19.0)%



Operating Margin



6.1%



8.8%



(270)bp



Net (Loss) Income Attributable to Genie Energy Ltd. Common Stockholders



$(2.7)



$6.4



213.7%



Diluted (Loss) Earnings Per Share



$(0.10)



$0.24



$(0.34)



Adjusted EBITDA



$15.0



$9.5



34.9%



Cash Flow from Operating Activities



$6.0



$10.4



(42.7)%



Select Business Metrics: 2021 versus 2020 as of 9/30/21



Units in 1000s



3Q21



3Q20



Change



Retail Performance Metrics:



Retail Customer Equivalents (RCE)



434



441



(1.5)%


Genie Retail – US (GRE)


336


350


(3.9)%



Electricity



276



294



(5.9)%



Natural Gas



60



56



6.6%


Genie Retail – International (GREI)


98


91


7.5%



Electricity



73



69



6.1%



Natural Gas



24



22



12.1%



Meters



554



558



(0.7)%


Genie Retail – US (GRE)


361


375


(3.8)%



Electricity



289



309



(6.4)%



Natural Gas



72



67



8.0%


Genie Retail – International (GREI)


193


182


5.9%



Electricity



138



136



1.1%



Natural Gas



55



46



20.0%



GRE Average Monthly Churn – Meters



Gross Sales



46



44



4.5%



Churn



4.0%



3.7%



30bps

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 both electricity and natural gas prices rose sharply.  In addition, Genie recorded a

$1.9 million

credit to the cost of sales reflecting expected reimbursement from the

State of Texas

for charges imposed by ERCOT during the severe winter storm in

February 2021

.  Operationally, GRE served 336,000 RCEs at September 30, 2021, a 2.0% increase sequentially and a 3.9% decrease year over year.  Per meter consumption, while decreasing slightly compared to the year-ago quarter, remained above pre-COVID levels.  Monthly churn, at 4.0%, was below typical pre-COVID levels while increasing from 3.7% in the year-ago quarter and from 3.8% in the prior quarter.

GREI revenue growth was driven by the consolidation of Orbit Energy (U.K.) results following our purchase of the non-controlled interest in Orbit during

October 2020

, which previously had not been consolidated, and by organic meter growth compared to the prior year.  Orbit Energy’s loss from operations was

$16.4 million

for the quarter, including a

$6.7 million

(

$0.26 cents

per share) impairment of assets In Scandanavia, GREI curtailed meter acquisition in a rising commodity price environment, leading to increased profitability and a decrease in meters served during the quarter.

Genie Renewables (formerly Genie Energy Services) reported a higher gross margin and improved overall results as it shifted to higher-margin solar projects.



Balance Sheet and Cash Flow Highlights



At

September 30, 2021

, Genie Energy reported

$193.2 million

in total assets, including

$48.6 million

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

$110.7 million

and working capital (current assets less current liabilities) totaled

$44.4 million

.  Non-current liabilities were

$3.0 million

.

Cash provided by operating activities during the quarter ended

September 30, 2021

was

$6.0 million

compared to

$10.4 million

a year ago.



Strategic Update



Genie has suspended the planned spin-off of its international operations in the U.K. and Scandinavia following the deterioration of the U.K. energy market, where a planned, orderly withdrawal from the market is underway. Genie does not expect to incur additional material, cash charges as a result.



Fourth Quarter Commentary



Heading into the winter heating season, Genie is positioned to mitigate foreseeable volatility in wholesale energy prices through its risk-management program including hedging and forward commodity contract positioning.  As a result of commodity price increases, Genie expects to generate robust margins from its retail supply businesses.  Moreover, the company expects to reduce supply requirements by narrowing its customer acquisition program to higher margin customers.  This strategy optimizes margins while dampening customer acquisition expense.  When combined with increasing profitability in Scandanavia, the elimination of additional investment in the U.K. market and growth opportunities for Genie Renewables, management believes the Company is well positioned to deliver strong fourth quarter results.



Trended Financial Information:*



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



1Q20



2Q20



3Q20



4Q20



1Q21



2Q21



3Q21



2019



2020



YTD 2021



Total Revenue



$104.1



$76.1



$96.3



$102.9



$135.3



$97.7



$113.2



$315.3



$379.3



$346.2


Genie Retail – US (GRE)


$79.1


$66.5


$88.9


$69.9


$90.7


$67.0


$86.3


$286.6


$305.3


$244.0



Electricity



$63.1



$61.1



$86.2



$60.5



$73.4



$61.9



$82.8



$246.7



$271.7



$218.1



Natural Gas



$16.1



$5.4



$2.7



$9.4



$17.3



$5.1



$3.5



$39.9



$33.6



$25.9


Genie Retail – International (GREI)


$6.7


$5.0


$5.8


$31.8


$42.2


$28.4


$25.5


$16.6


$49.6


$96.1



Electricity



$6.9



$4.8



$5.6



$23.4



$30.3



$21.4



$21.0



$16.4



$40.7



$72.7



Natural Gas



$0.0



$0.0



$0.0



$8.3



$11.8



$6.7



$4.1



$0.0



$8.3



$22.6


Genie Renewables


$18.0


$4.6


$1.6


$1.1


$2.5


$2.3


$1.3


$12.1


$24.4


$6.2



Gross Margin



27.8%



25.6%



28.3%



21.4%



12.9%



24.3%



37.4%


26.3%


25.8%


24.2%


Genie Retail – US (GRE)


43.7%


25.7%


29.0%


25.6%


16.5%


27.4%


39.6%


28.1%


28.9%


27.6%


Genie Retail – International (GREI)


-4.5%


38.0%


19.0%


13.8%


3.3%


15.9%


30.5%


1.8%


14.5%


14.3%


Genie Renewables


8.9%


11.4%


27.1%


-29.0%


44.9%


39.4%


34.0%


15.7%


9.4%


40.4%



Income (loss) from Operations



$9.2



$2.7



$8.5



($1.1)



($6.6)



$1.4



$6.9



$9.8



$19.3



$1.7



Operating Margin



8.8%



3.6%



8.8%



-1.1%



-4.9%



1.4%



6.1%



3.1%



5.1%



0.5%



Net income attributable to Genie Energy Ltd. common stockholders



$5.5



$1.6



$6.4



($1.7)



($2.4)



$5.0



($2.7)



$2.7



$11.7



nm



Diluted Earnings (Loss) Per Share



$0.20



$0.06



$0.24



($0.06)



($0.09)



$0.19



$0.10



$0.10



$0.44



$0.00



Adjusted EBITDA


1



$10.3



$3.5



$9.5



$0.7



($4.5)



$3.1



$15.0



$10.1



$24.0



$13.5



Retail Customer Equivalents (RCE)

in 1000s



398



418



437



435



446



436



434



nm



nm



nm


Genie Retail – US (GRE)


330


343


350


337


347


330


336



nm



nm



nm



Electricity



272



288



294



284



291



272



276



nm



nm



nm



Natural Gas



58



55



56



53



56



58



60



nm



nm



nm


Genie Retail – International (GREI)


69


76


87


98


98


106


98



nm



nm



nm



Electricity



50



55



66



76



77



82



73



nm



nm



nm



Natural Gas



19



21



22



21



21



24



24



nm



nm



nm



Meters

in 1000s units



520



522



543



547



555



554



554



nm



nm



nm


Genie Retail – US (GRE)


384


374


375


368


373


361


361



nm



nm



nm



Electricity



313



311



309



303



308



292



289



nm



nm



nm



Natural Gas



71



64



67



65



65



69



72



nm



nm



nm


Genie Retail – International (GREI)


136


147


167


179


182


193


193



nm



nm



nm



Electricity



96



105



121



132



135



141



138



nm



nm



nm



Natural Gas



40



43



46



47



47



52



55



nm



nm



nm



Average Monthly Churn – Meters


Genie Retail – US (GRE)



Gross Sales



69



40



44



59



60



35



46



308



212



144



Churn



4.3%



3.9%



3.7%



5.3%



4.9%



3.8%



4.0%



5.3%



4.4%



4.2%


nm = not measurable/meaningful


*Numbers may not add due to rounding



Earnings Announcement and Supplemental Information



Genie Energy has filed this release in a current report (Form 8-K) with the SEC and posted it on its website (

Investor Relations



).

At

8:30 AM

Eastern today, 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 US) or 1-973-528-0011 (international) and provide the following participant access code: 536748.

Approximately three hours after the call, a call replay will be accessible by dialing 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and providing the replay PIN: 43494. The replay will remain available through

November 18

, 2021.  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 commercials 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)



September 30,

2021



December 31,

2020



(Unaudited)



(Audited)



Assets


Current assets:


Cash and cash equivalents



$



33,983


$


36,913


Restricted cash—short-term



6,528


6,271


Marketable equity securities



8,048


5,089


Trade accounts receivable, net of allowance for doubtful accounts of $16,465 and $8,793 at

September 30, 2021 and December 31, 2020, respectively



58,593


60,778


Inventory



23,648


16,930


Prepaid expenses



5,767


4,633


Other current assets



15,924


3,206


Total current assets



152,491


133,820


Property and equipment, net



281


259


Goodwill



25,627


25,929


Other intangibles, net



3,768


11,645


Deferred income tax assets, net



2,005


4,882


Other assets



9,448


10,804


Total assets



$



193,620


$


187,339



Liabilities and equity


Current liabilities:


Loan payable



$



—


$


1,453


Trade accounts payable



39,760


43,005


Accrued expenses



51,339


42,762


Contract liability



8,317


5,609


Income taxes payable



6,435


1,893


Due to IDT Corporation, net



109


257


Other current liabilities



2,132


2,494


Total current liabilities



108,092


97,473


Other current liabilities



2,965


3,787


Total liabilities



111,057


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 September 30, 2021 and December 31, 2020



19,743


19,743


Class A common stock, $0.01 par value; authorized shares—3,500; 1,574 shares issued and outstanding at September 30, 2021 and December 31, 2020



16


16


Class B common stock, $0.01 par value; authorized shares—200,000; 26,582 and 25,966 shares issued and 24,600 and 24,646 shares outstanding at September 30, 2021 and December 31, 2020, respectively



266


260


Additional paid-in capital



141,787


140,746


Treasury stock, at cost, consisting of 1,982 and 1,320 shares of Class B common stock at September 30, 2021 and December 31, 2020, respectively



(13,922)


(9,839)


Accumulated other comprehensive income



2,994


3,827


Accumulated deficit



(56,673)


(56,658)


Total Genie Energy Ltd. stockholders’ equity



94,211


98,095


Noncontrolling interests



(11,648)


(12,016)


Total equity



82,563


86,079


Total liabilities and equity



$



193,620


$


187,339



GENIE ENERGY LTD.



CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)



Three Months Ended

September 30,



Nine Months Ended

September 30,



2021



2020



2021



2020



(in thousands, except per share data)


Revenues:


Electricity



$



103,799



$


91,793



$



290,783



$


227,671


Natural gas



7,609


2,724



48,458


24,190


Other



1,756


1,809



6,970


24,591


Total revenues



113,164


96,326



346,211


276,452


Cost of revenues



70,788


69,010



262,540


200,744


Gross profit



42,376


27,316



83,671


75,708


Operating expenses and losses:


Selling, general and administrative (i)



28,853


18,831



75,366


54,287


Impairment of assets



6,650


—



6,650


993


Income from operations



6,873


8,485



1,655


20,428


Interest income



8


21



28


164


Interest expense



(99)


(48)



(311)


(223)


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



52


(146)



215


(1,698)


Unrealized (loss) gain on marketable equity securities and investments



(5,312)


—



1,710


—


Gain on sale of subsidiary



—


—



4,226


—


Other (loss) income, net



(17)


291



267


390


Income before income taxes



1,505


8,603



7,790


19,061


Provision for income taxes



(3,822)


(2,406)



(7,515)


(5,563)


Net (loss) income



(2,317)


6,197



275


13,498


Net loss attributable to noncontrolling interests



(31)


(531)



(821)


(1,026)


Net (loss) income attributable to Genie Energy Ltd.



(2,286)


6,728



1,096


14,524


Dividends on preferred stock



(370)


(370)



(1,111)


(1,111)


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



$



(2,656)



$


6,358



$



(15)



$


13,413


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


Basic



$



(0.10)



$


0.25



$



(0.00)



$


0.51


Diluted



$



(0.10)



$


0.24



$



(0.00)



$


0.50


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


Basic



25,514


25,928



25,867


26,107


Diluted



25,514


26,769



25,867


26,839


Dividends declared per common share



$



—



$


0.085



$



—



$


0.245


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



$



531



$


447



$



1,680



$


1,331







GENIE ENERGY LTD.



CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



Nine Months Ended

September 30,



2021



2020



(in thousands)



Operating activities


Net income



$



275


$


13,498


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


Depreciation and amortization



3,326


2,219


Impairment of assets



6,650


993


Deferred income taxes



2,877


4,838


Provision for doubtful accounts receivable



8,018


2,209


Unrealized gain on marketable equity securities and investment



(1,710)


—


Stock-based compensation



1,680


1,331


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



(215)


1,698


Gain on sale of subsidiary



(4,226)


—


Loss on sale of assets held for sale



—


456


Gain on deconsolidation of subsidiaries



—


(98)


Change in assets and liabilities:


Trade accounts receivable



(7,570)


2,827


Inventory



(6,718)


3,218


Prepaid expenses



(1,524)


2,166


Other current assets and other assets



(13,718)


(633)


Trade accounts payable, accrued expenses and other current liabilities



5,414


2,018


Contract liability



2,796


(12,393)


Due to IDT Corporation



(148)


(266)


Income taxes payable



4,542


(43)


Net cash provided by operating activities



86


24,038



Investing activities


Capital expenditures



(158)


(125)


Proceeds from disposal of assets held for sale



—


48


Proceeds from the sale of a subsidiary, net of cash disposed



4,550


—


Purchase of marketable equity securities



(1,000)


—


Investments in equity method investee



—


(1,502)


Purchase of short-term equity investments



(750)


—


Payment of acquisition of intangible



—


(298)


Repayment of notes receivable



14


14


Net cash provided by (used in) investing activities



2,656


(1,863)



Financing activities


Dividends paid



(1,111)


(7,543)


Proceeds from revolving line of credit



—


1,000


Repayment of revolving line of credit



—


(3,514)


Proceeds from loan



—


1,395


Repayment of loan



—


—


Purchases of Class B common stock



(3,847)


(1,634)


Repayment of notes payable



—


(25)


Proceeds from exercise of stock options


—


18


Purchase of Class B common stock from employees upon vesting of restricted shares


(236)


(263)


Repayment of loan payable


—


(930)


Net cash used in financing activities



(5,194)


(11,496)


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



(221)


(3)


Net (decrease) increase in cash, cash equivalents, and restricted cash



(2,673)


10,676


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



43,184


38,554


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



$



40,511


$


49,230



Reconciliation of Non-GAAP Financial Measures for the Third 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 third quarter 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.



Reconciliation of Adjusted EBITDA on a Consoliadated Basis and for Genie Retail Energy (GRE)



Consolidated



GRE



Three months ended September 30, 2021 (Q3 2021)


Net loss attributable to Genie Energy LTD


$             (2,286)


Net loss attributable to non-controlling interests


(31)


Net loss


$             (2,317)


Provision for income taxes


(3,822)


Other loss, net


(17)


Unrealized loss on marketable equity securities and investments


(5,312)


Interest income


8


Interest expense


(99)


Equity in the net income of equity method investees


52


Income from operations


$               6,873


$            19,715


Add:


Stock-based compensation


531


155


Depreciation and amortization


881


90


Subtract:


Equity in the net income of equity method investees


(52)


Impairment of assets


(6,650)


Adjusted EBITDA


$            14,987


$            19,960



Consolidated



GRE



Three months ended September 30, 2020 (Q3 2020)


Net income attributable to Genie Energy LTD


$               6,728


Net income attributable to non-controlling interests


(531)


Net income


$               6,197


Provision for income taxes


(2,406)


Other income, net


291


Interest income


21


Interest expense


(48)


Equity in the net loss of equity method investees


(146)


Income from operations


$               8,485


$            12,228


Add:


Stock-based compensation


447


172


Depreciation and amortization


670


117


Subtract:


Equity in the net loss of equity method investees


146


Adjusted EBITDA


$               9,456


$            12,517

Cision
View original content to download multimedia:

https://www.prnewswire.com/news-releases/genie-energy-announces-third-quarter-2021-results-301416153.html

SOURCE Genie Energy Ltd.

PR Newswire
November 4, 2021 – 4:30 AM PDT

Energy