Genie Energy Ltd. (NYSE:GNE) Q1 2024 Earnings Call Transcript

Genie Energy Ltd. (NYSE:GNE) Q1 2024 Earnings Call Transcript May 8, 2024

Genie Energy Ltd. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Good morning, and welcome to Genie Energy’s First Quarter 2024 Earnings Call. All participants should be in listen-only mode. [Operator Instructions] After today's presentation by Genie Energy's management, there will be an opportunity to ask questions. Please note this event is being recorded. I will now turn the call over to Brian Siegel of Hayden IR.

Brian Siegel: Thank you, operator. With me today are Michael Stein, Genie Energy's CEO; and Avi Goldin, Genie Energy's CFO, who will discuss operational and financial results. Any forward-looking statements made during this conference call, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those statements. These risks and uncertainties include, but are not limited to, those discussed in the reports that we file periodically with the SEC. Genie assumes no obligation to update any forward-looking statements that we have made or may make or to update the factors that may cause actual results to differ materially from those that we forecast. During the remarks, management makes reference to adjusted EBITDA, a non-GAAP measure.

Management believes that its measure of adjusted EBITDA provides useful information to both management and investors that supplement our core operating results. Our earnings release, which is posted on the genie.com IR page, includes a reconciliation of consolidated adjusted EBITDA to its nearest comparable GAAP measures, consolidated net income and income from operations for all periods presented. In addition, adjusted EBITDA for applicable segments are reconciled in the earnings release to their respective segments income from operations for all periods presented. I will now turn the conference over to Michael Stein, Genie's Chief Executive Officer.

Michael Stein: Thank you, Brian. Welcome to Genie Energy's first quarter 2024 earnings call. We reported a solid quarter this morning with record first quarter revenue and gross profit. On top of our regular quarterly dividend, we repurchased 250,000 shares of common stock, which we believe is trading well below its fair value. At GRE, we ended the first quarter with 365,000 customers, up about 5%, and 348,000 RCEs, down about 1%, respectively, over the prior year. Within GREW, Diversegy had another very strong quarter, and at Genie Solar, we advanced several third-party-owned commercial projects into the construction phase, helping to drive a significant increase in segment revenue, quarterly gross profit, and adjusted EBITDA year-over-year.

We also advanced several Genie owned solar projects that are in development and added new projects to the pipeline, even as several others dropped out of our development plans due to lack of viability. This movement in and out of the pipeline is not uncommon for early stage solar opportunities. We are confident that the investments we've made to enhance our team and upgrade our operational capabilities should help us grow and optimize the pipeline, while also moving existing projects through the pipeline more rapidly. As a reminder, our solar project development strategy is intended to be a long-term value driver for the company. Developing projects from site-right acquisitions through construction and into operations typically takes years.

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