Genie Energy Ltd (GNE) 2025 Q1 法說會逐字稿

Good morning and welcome to the Genie Energy Limited's first quarter 2025 earnings call.

早安，歡迎參加 Genie Energy Limited 2025 年第一季財報電話會議。

In today's presentation, Genie Energy Management will discuss Genie's financial and operational results for the three-month period ended March 31, 2025.

在今天的演示中，Genie Energy Management 將討論 Genie 截至 2025 年 3 月 31 日的三個月的財務和營運表現。

During prepared remarks by Genie Energy's Chief Executive Officer, Michael Stein and Chief Financial Officer Avi Golden.

Genie Energy 執行長 Michael Stein 和財務長 Avi Golden 發表了準備好的演講。

(Operator Instructions)

（操作員指示）

After Avi Golden's remarks, Michael and Avi will take questions from investors. Any forward-looking statements made during this conference call, either in the prepared remarks or in the Q&A session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates.

在 Avi Golden 發表講話後，Michael 和 Avi 將回答投資者的提問。本次電話會議中所做的任何前瞻性陳述，無論是在準備好的發言中還是在問答環節中，無論是一般性還是具體性，都受到風險和不確定性的影響，這些風險和不確定性可能導致實際結果與公司預期的結果存在重大差異。

These risks and uncertainties include, but are not limited to specific risks and uncertainties discussed in the reports that Genie Energy files periodically with the SEC.

這些風險和不確定性包括但不限於 Genie Energy 定期向美國證券交易委員會提交的報告中討論的具體風險和不確定性。

Genie Energy assumes no obligation either to update any forward-looking statements that they have made or may make or to update the factors that may cause actual results to differ materially from those that they forecast.

Genie Energy 不承擔更新其已做出或可能做出的任何前瞻性聲明或更新可能導致實際結果與其預測存在重大差異的因素的義務。

In their presentation or in the Q&A session, GE Energy's management may make reference to non-GAAP measures, including adjusted EBITDA, non-GAAP net income, and non-GAAP earnings per share.

在演示或問答環節中，GE能源的管理階層可能會參考非公認會計準則指標，包括調整後的EBITDA、非公認會計準則淨收入和非公認會計準則每股收益。

A schedule provided in the Genie Energy earnings release reconciles adjusted EBITDA, non-GAAP net income, and non-GAAP earnings per share to the nearest corresponding GAAP measures.

Genie Energy 收益報告中提供的時間表將調整後的 EBITDA、非 GAAP 淨收入和非 GAAP 每股收益與最接近的相應 GAAP 指標進行調整。

Please note that Genie Energy earnings release is available on the investor relations page of the Genie website. The earnings release has also been filed on Form 8K with the SEC.

請注意，Genie Energy 收益報告可在 Genie 網站的投資者關係頁面上查閱。收益報告也已以 8K 表格形式提交給美國證券交易委員會 (SEC)。

I will now turn the conference over to Michael Stein.

現在我將會議交給麥可‧史坦。

Thank you, operator. Our first quarter featured strong operational and financial results highlighted by robust increases in revenue, profitability, and cash generation compared to the year ago quarter. This quarter is the first quarter we have had in several years where the year over year comparative results for our retail energy business reflect what we consider to be normalized results in both periods.

謝謝您，接線生。我們第一季的營運和財務業績表現強勁，與去年同期相比，營收、獲利能力和現金產生量均強勁成長。本季是我們幾年來第一個季度零售能源業務的同比結果反映了我們認為的兩個時期的正常結果。

In 2022 and to a lesser extent in 2023. Our retail energy business was able to achieve exceptional margins by optimizing our commodity market positions during relatively volatile energy markets.

2022 年將出現此情況，2023 年也將出現此情況，但程度較輕。我們的零售能源業務透過在相對動盪的能源市場中優化我們的商品市場地位實現了卓越的利潤率。

As a result, year over year growth rates, while strong, were disadvantaged during much of 2023 and 2024. For quarter one 2025, GRE is back at a reasonable year over year comparative baseline with margins in what we believe to be a sustainable range for both quarters.

因此，儘管同比成長率強勁，但在 2023 年和 2024 年的大部分時間裡仍處於不利地位。2025 年第一季度，GRE 恢復到了合理的年比比較基線，我們認為兩個季度的利潤率都處於可持續的範圍內。

At GRE, the significant investments we made in 2024 to expand our customer base drove a year over year increase of over 48,000 net new meters. We ended the quarter with approximately 413,000 meters served, comprising 402,000 RCEs. The meter increase in combination with a stable commodity pricing environment enabled GRE to increase both revenue and income from operations by 18% compared to the year ago quarter.

在 GRE，我們在 2024 年為擴大客戶群而進行的大量投資推動了淨新增電錶數量同比增加超過 48,000 台。截至本季度，我們已服務約 413,000 個儀表，包括 402,000 個 RCE。米數增加加上穩定的商品定價環境使 GRE 的營業收入和利潤與去年同期相比增加了 18%。

Our meter growth reflects deep penetration of our existing markets supplemented by expansion to new states. As I mentioned last quarter, we recently began to market in California, and we expect to begin offering gas in Kentucky in the second quarter. Customer churn in the first quarter was 5.5%, unchanged from the year ago quarter, and just a 10-basis point increase from the fourth quarter last year.

我們的計量表成長反映了我們對現有市場的深度滲透以及向新州的擴張。正如我上個季度提到的，我們最近開始在加州進行行銷，我們預計將在第二季開始在肯塔基州提供天然氣。第一季的客戶流失率為 5.5%，與去年同期持平，僅比去年第四季增加 10 個基點。

I credit our comprehensive customer retention program for maintaining churn at these levels. Without that focused effort, the strong growth in our customer base over the last year would likely have pressure turned upward.

我認為我們的全面客戶保留計畫能夠將客戶流失率維持在這些水準。如果沒有這種專注的努力，我們去年客戶群的強勁成長可能會面臨更大的壓力。

At Gro, we continue to advance our pipeline of utility scale development projects. The most mature project in our development pipeline, a community solar project in Lansing, New York, is on track for completion as early as the third quarter of this year. We expect it will become EBITDA accretive immediately once online.

在 Gro，我們繼續推進公用事業規模開發案的管道。我們開發項目中最成熟的項目是位於紐約州蘭辛的社區太陽能項目，預計最早於今年第三季完工。我們預計一旦上線，它將立即實現 EBITDA 增值。

Once completed, the Lansing project will join our operational portfolio, which continues to perform in line with our expectations.

一旦完成，蘭辛計畫將加入我們的營運組合，其表現將繼續符合我們的預期。

Also, within GREW, our diversity energy brokerage business continues to perform very well. A year ago, this business was EBITDA negative, and it is now generating positive cash flow and is on track to become an increasingly important contributor to our bottom-line results. Before turning the call over to Avi, I want to point out that Genie returned $3.9 million to our stockholders during the first quarter through our quarterly dividend and share repurchases.

此外，在 GREW 內部，我們的多元化能源經紀業務持續表現良好。一年前，該業務的 EBITDA 為負，但現在卻產生了正現金流，並有望成為我們獲利業績越來越重要的貢獻者。在將電話轉給 Avi 之前，我想指出，Genie 在第一季透過季度股息和股票回購向我們的股東返還了 390 萬美元。

At March 31, we had $210 million in cash restricted cash and marketable securities compared to $201 million at the end of 2024. With our strong balance sheet, robust cash flows, and with the stock at its current levels, we expect to continue to repurchase our shares in the coming quarters. Now here is Avi.

截至 3 月 31 日，我們的現金限制現金和有價證券為 2.1 億美元，而 2024 年底為 2.01 億美元。憑藉我們強大的資產負債表、強勁的現金流以及當前的股票水平，我們預計在未來幾季繼續回購我們的股票。現在這是 Avi。

Thank you, Michael, and thanks to everyone on the call for joining us this morning.

謝謝你，邁克爾，也感謝今天早上參加電話會議的所有人。

My remarks today cover financial results for the three months ended March 31, 2025. In my commentary on the quarterly results, I will compare the results for the first quarter of 2025 to the first quarter of 2024, to remove from consideration the seasonal factors that impact our results, particularly within our retail energy business.

我今天的演講涉及截至 2025 年 3 月 31 日的三個月的財務表現。在我對季度業績的評論中，我將把 2025 年第一季的業績與 2024 年第一季的業績進行比較，以消除影響我們業績的季節性因素，尤其是零售能源業務的業績。

The first quarter is typically characterized by relatively elevated levels of electricity and gas consumption, as it includes the majority of the winter's peak heating season within our service areas.

第一季通常以電力和天然氣消耗量相對較高為特點，因為第一季涵蓋了我們服務區域內冬季供暖高峰的大部分時間。

Our results were quite good, highlighted by strong top line growth and significantly improved bottom line performance.

我們的業績相當不錯，突顯出強勁的營收成長和顯著改善的獲利表現。

Consolidated revenue in the quarter increased 14.3%, or $17.1 million to 136.8 million driven by strong performance in genie retail energy.

受 Genie 零售能源強勁表現的推動，本季綜合營收成長 14.3%，即 1,710 萬美元，達到 1.368 億美元。

At GRE, revenue jumped 17.8% to $132.5 million. As Michael pointed out, the increase is primarily a function of the investments that we made to grow our customer base last year, boosted by increased per meter consumption of both electricity and natural gas during the quarter.

GRE 的營收成長 17.8%，達到 1.325 億美元。正如邁克爾指出的那樣，這一增長主要得益於我們去年為擴大客戶群而進行的投資，這得益於本季度每米電力和天然氣消耗量的增加。

Electricity revenue climbed 16.4% to $104.1 million, contributing 70.6% of GRE's revenues. Kilowatt hours sold increased 23.5%. The impact of that increasing consumption was partially offset by a 5.7% decrease in the average revenue per kilowatt hour sold. Revenue from the sale of natural gas increased 26.8% in the first quarter to $28.4 million, reflecting increases in both therms sold and revenue per third sold.

電力收入成長 16.4% 至 1.041 億美元，佔 GRE 收入的 70.6%。售電量成長23.5%。消費量增加的影響被每千瓦時平均銷售收​​入下降 5.7% 部分抵消。第一季天然氣銷售收入成長 26.8%，達到 2,840 萬美元，反映出銷售熱量單位和每售出三分之一的收入均有所成長。

A first quarter revenue decreased 40% to $4.3 million. The revenue decline was largely driven by Genie Solar and reflects the impact of our decision to pivot from the commercial projects market.

第一季營收下降 40% 至 430 萬美元。收入下降主要是由於 Genie Solar 所致，反映了我們決定退出商業項目市場的影響。

At GREW diversity achieved another record quarter, contributing $3.8 million in revenue, a 55% year over year increase. Consolidated gross profit increased 10.6% to $37.4 million, while gross margin decreased 90 basis points to 27.3%.

GREW 多元化再創季度紀錄，貢獻 380 萬美元收入，年增 55%。綜合毛利成長 10.6% 至 3,740 萬美元，毛利率下降 90 個基點至 27.3%。

The increasing in gross profit was driven by the expansion of GRE's customer base, while the decreasing in gross margin was driven by lower margins on electricity sales, specifically the acquisition of profitable or lower margin meters to our municipal aggregation deal programs.

毛利的成長是由於 GRE 客戶群的擴大，而毛利率的下降是由於電力銷售利潤率的下降，特別是收購了盈利能力強或利潤率較低的電錶到我們的市政聚合交易計劃中。

Consolidated SG&A increased 4.3% or $1 million to $23.9 million, primarily reflecting increased expenses at GRE. GRE's strong quarter drove a 30.3% year over year increase in consolidated income from operations to $12.8 million and a 22.7% increase in adjusted EBITDA to $14.4 million.

合併銷售、一般及行政費用增加 4.3% 或 100 萬美元，達到 2,390 萬美元，主要反映了 GRE 的費用增加。GRE 本季表現強勁，綜合營業收入年增 30.3% 至 1,280 萬美元，調整後 EBITDA 成長 22.7% 至 1,440 萬美元。

At GRE in income from operations increased 18.2% to $16.8 million and adjusted EBITDA increased 17.1% to $17.1 million, reflecting our expanded gross profit partially offset by increased SG&A expense.

GRE 的營業收入成長 18.2% 至 1,680 萬美元，調整後 EBITDA 成長 17.1% 至 1,710 萬美元，這反映了我們的毛利擴大，但被銷售、一般及行政費用的增加部分抵銷。

At GREW, the first quarter's loss from operations increased to $900,000 from $600,000 in a year ago quarter. The increase in losses primarily reflects our investment in building out our solar generation project development pipeline, partially offset by the stronger performance and diversity.

GREW 第一季的營業虧損從去年同期的 60 萬美元增至 90 萬美元。虧損的增加主要反映了我們在建造太陽能發電項目開發管道方面的投資，但業績的強勁增長和多樣性的增加部分抵消了這一損失。

Which was adjusted even negative a year ago quarter, which generated over 400,000 adjusted even in the first quarter of this year.

去年第一季的調整後收入為負值，而今年第一季的調整後收入則超過了 40 萬。

Consolidated net income attributed to Genie common stockholders increased $10.6 million or $0.40 per share from $8.1 million to $0.30 per share a year earlier, turning out of the balance sheet on March 31, 2025, cash equivalents, long and short term restricted cash, which includes the cash held by our cap insurance subsidiary and marketable equity securities totalled $210.2 million, an increase of $9.2 million in the quarter.

歸屬於 Genie 普通股股東的綜合淨利潤從去年同期的 810 萬美元增加到 0.30 美元/股，增加了 1,060 萬美元，即每股 0.40 美元；截至 2025 年 3 月 31 日的資產負債表，現金等價物、長期和短期受限現金（包括我們的 20 億美元子公司的現金上限和 20.20 億美元子公司增加了 20.200 億萬美元。

Capital is $121.2 million. Our net current and non-current debt total of $9 million the largest component of which is financing for our portfolio of operational arranges that we completed last quarter.

資本額為1.212億美元。我們的淨流動和非流動債務總額為 900 萬美元，其中最大部分是我們上個季度完成的營運安排組合的融資。

We repurchased approximately 127,000 shares of our Class B common stock in the first quarter for $1.9 million and paid our regular quarterly dividends to return $2 million directly to our stockholders. To wrap up, this was a solid pour with strong operational and financial results of GRE.

我們在第一季以 190 萬美元的價格回購了約 127,000 股 B 類普通股，並支付了定期季度股息，直接向股東返還 200 萬美元。總而言之，這是一次堅實的回報，GRE 的營運和財務表現強勁。

Looking ahead, both GRE and Group are well positioned for the remainder of the year, and we are confirming our full year adjusted guidance of 40 to $50 million. Operator, now back to you for Q&A.

展望未來，GRE 和集團都為今年剩餘時間做好了準備，我們確認全年調整後的指引為 4,000 萬至 5,000 萬美元。接線員，現在回到您的問答環節。

Thank you. We will now begin our question-and-answer session.

謝謝。我們現在開始問答環節。

(Operator Instructions)

（操作員指示）

Okay, as we, as there are no questions in the queue at this time, this will conclude our question-and-answer session and conference call.

好的，由於目前沒有其他問題，我們的問答環節和電話會議就此結束。

Thank you for attending today's presentation. You may now disconnect.

感謝您參加今天的演講。您現在可以斷開連線。