Q1 2021 Genie Energy Ltd Earnings Call

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Good morning, and welcome to Genie Energy's first quarter 2021 earnings call.

All participants will be in a listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero on.

And on this morning's call Michael Stein Genie Energy's, Chief Executive Officer, and Avi Goldin Genie Energy's Chief Financial Officer will discuss the operational and financial results for the three months period ended March 31st 2021.

Any forward looking statements made during this conference call either in the prepared remarks or and 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. These risks and uncertainties include but are not limited to specific risks and uncertainties.

Has been filed on a form 8-K with the S E C.

After today's presentation by Genie Energy management, there will be an opportunity to ask questions to ask a question and you May press, one and then for on your Touchtone phone to withdraw your question. Please press one and then three please note. This event is being recorded.

I will now turn the conference over to Michael Stein Genie Energy as Chief Executive Officer. Please go ahead Mister Stein.

Thank you operator, welcome to Genie energy first quarter of 2021 earnings call today, and we will discuss our operational and financial results for the three months and dated March 31st 2021, Avi Golden hour Chief Financial Officer will follow the deeper dive into the quarters financial results following August remarks, who.

I'd be glad to take your questions and we discussed when we reported last quarter's earnings. The first quarter was impacted by unusually severe weather set led to massive spikes and wholesale electricity prices and taxes and Japan. This severe winter storms, and Texas and Japan had an aggregate negative impact on income from operations approximately 15.5 million.

And Texas, where the impact of the storm this quarter was approximately $13 million. Our industry is born a disproportionate share of the financial burden, we remain hopeful that perspective legislation regulatory changes and or litigation will provide material relief.

Because of our ongoing commitment to financial strength and liquidity, while avoiding debt our balance sheet remains in good shape. Moreover, we have set ourselves the goal of finishing and the year with a stronger balance sheet and we had at the start despite the impact of the first quarter's weather events.

Our under underlying business remains very strong on a consolidated basis, we achieved record first quarter revenue and added to our meter and RSV. He counts, even though the first quarter is historically slow quarter for customer acquisition.

<unk> increased by 10000 to 450000 and meters increased by 7000 to 572000.

And Genie retail absent the Texas storms impact our domestic business would likely have achieved record adjusted EBITDA. Despite the challenges of the pandemic environment Jerry's revenue and extra new high as consumption per meter again increased significantly compared to the year ago quarter and churn remained subdued and.

Jerry International we ramped up on our investment to expand our customer base, and Sweden and dealt with wholesale price spikes, most notably and Japan, but to a lesser extent and Scandinavia.

To put that in perspective across all of our international markets. Our businesses are maturing adjusted from the storm's impact and Japan and gross margin is increasing and we expect that the growth capital requirements for these businesses will decline significantly during the year with that in mind and we are continuing our strategic review of our international business carefully balancing.

We will continue to consider alternative means to return value to our stockholders and now I'll turn the call over to Amit to review the first quarter's financial results.

Thank you Michael and thanks to everyone on the call for joining US. This morning, My remarks today cover our financial results for three months ended March 31 2021 three.

Throughout my remarks, I compare first quarter 2021 to the results for the first quarter of 2020, focusing on the year over year, rather than our sequential comparisons removes from consideration the seasonal factors that are characteristic of our retail energy business.

As Michael mentioned, our revenue and this quarter with the highest and our history Bottomline results would have been similarly, Sharon had it not been for the losses incurred as a result of the winter storm, urea, and Texas and extreme weather and Japan.

Nevertheless, our careful Ford hedging and demand management programs and diversification of our business operations and a strong balance sheet enable us to not only manage and the volatility, but the finished the quarter with sufficient capital and liquidity to finance and prioritize our growth initiatives.

<unk> revenue increased 30% to $135 million.

And <unk> nine and the year ago quarter, a decrease of 14.9 million, primarily due to the Texas and Japan weather and the consolidation of orbit energy at GRE income from operations decreased to 1.2 million from $13 million adjusted EBITDA decreased to $1.5 million from 13.3 million.

<unk> and the impact of winter storm, you're in Texas, Jerry's adjusted EBITDA would have been approximately $14.5 million a record for domestic supply business. The first quarter results again benefited from the increased consumption per meter we've seen since the pandemic as a result of the shift to work from home.

At Jerry International loss from operations was six 7 million compared to 2.5 million a year ago quarter for comparison purposes orbit energy is lost from operations and the first quarter of 2020 was $3 million do and just storm and Japan contributor approximately 2.5 million and for $1 million and decrease.

And the balance primarily reflected increase supply costs and luma.

Can you renewables income of operations increase to 559000 and from 342000, a year earlier and there you go quarter are gross margin was 9% primarily generated by the prism solar panel deliveries as Michael mentioned, we are now focusing on higher margin opportunities within Genie renewables. The first quarter of 2020 one's results suggested some Earl.

Success as our gross margin increased to 45%.

Genie energy is lost per diluted share. It was nine cents compared to earnings per share of 20 cents and a year ago quarter, turning now to the balance sheet at quarter and cash restricted cash and marketable equity securities totaled 41.7 million working capital was $35.4 million and non current liabilities were $3.5 million cash.

And that concludes my discussion of our financial results, all and all our financial standings, and good order and our underlying business is very strong and the balance of 2021, we expect to accelerate cash generation strengthen our balance sheet and and best prudently and growth opportunities now operator back to you for Q&A.

Thank you and if you would like to register a question.

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One moment please for our first question.

And the ladies and gentlemen, and once again as a reminder to register any questions or comments you may Howard for today's presenters you may do so and now we're pressing the one four on your telephone keypad.