Q4 2024 Genie Energy Ltd Earnings Call

Operator: Good day and welcome to the Genie Energy Ltd's fourth quarter and full year 2024 Today's presentation, Genie Energy Management will discuss Genie's financial and operational results for the 3 and 12 month period.

Good day, and welcome to the Genie Energy Limited's fourth quarter and full year 2024 earnings call.

In today's presentation Genie energy management will discuss financial and operational results for the three and 12 months periods ended December 31st 2024.

Speaker Change: During prepared remarks by Genie Energy's, Chief Executive Officer, Michael Stein, and Chief Financial Officer, Avi Goldin, all participants will be in listen only mode.

Operator: Exploring Prepared Remarks by Genie Energy Ltd Financial Officer, Avi Goldin, all participants will be in listen-only mode.

Speaker Change: Should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

Michael Stein: After Avi Goldin remarks, Michael into Avi will take questions from investors.

Avi Goldin: For Avi Goldin's remarks, Michael and Avi will take looking statements made during this call, either in their prepared remarks or in the Q&A session, whether general or specific in nature. that may cause actual results to differ materially from those Teeth include, but are not limited. reports that Genie Energy files periodically with the...

Speaker Change: Any forward looking statements made during this call either in our 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.

Speaker Change: 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 S E C.

Speaker Change: 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.

Avi Goldin: Genie Energy assumes no obligation either to update any forward... that they have made or may make, or to update the factors that may cause actual results.

Speaker Change: In their presentation or in the Q&A session Genie Energy's management may make reference to non-GAAP measures included adjusted EBITDA non-GAAP net income and non-GAAP earnings per share.

Avi Goldin: In their presentation, or in the Q&A session, Genie Energy's management may make reference to non-GAP measures. and Nondgap.

Avi Goldin: Thank you.

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

Avi Goldin: reconciles adjusted EBITDA, non-GAAP net income, and non-GAAP earnings per share to the nearest corresponding Please note that the Genie Energy earnings release is available on the Investor Release This release has also been filed on the I will now turn the conference over to Thank you, operator.

Speaker Change: Please note that the Genie energy earnings release is available on the Investor Relations page of the Genie website E G.

Speaker Change: Earnings release has also been filed on our form 8-K with the S E C.

Speaker Change: I will now turn the conference over to Michael Stein.

Speaker Change: Yeah.

Speaker Change: Thank you operator Genie finished 2024 with a solid fourth quarter across both our retail and renewables businesses, even as we continue to invest significantly in growth initiatives in both segments for the full year, we achieved the high end of our adjusted EBITDA guidance.

Michael Stein: Genie finished 2024 with a solid fourth quarter across both our retail and renewables business. even as we continue to invest significantly in growth initiatives in both sectors. For the full year, we achieved the high end of our adjusted EBITDA guide. GRE performed well throughout the year. We capitalized on favorable market conditions to ramp up customer acquisitions on the one hand, and through our customer retention program, we reduced churn significance. As a result, we added 23,000 net new meters in the fourth quarter and over 60,000 during the full year, an increase of nearly 17%. The impact of this increase in our meter book was partially offset by lower levels of per meter electricity and gas consumption compared to the year ago quarter as a result of mild weather in October followed by pretty typical patterns in November of this year.

Speaker Change: <unk> performed well throughout the year.

Speaker Change: Capitalized on favorable market conditions to ramp up customer acquisitions on the one hand and through our customer retention program, we reduce churn significantly as a result, we added 23000 net new meters in the fourth quarter and over 60000 during the full year, an increase of nearly 17% the impact of this.

Speaker Change: The increase in our meter book was partially offset by lower levels of per meter electricity and gas consumption compared to the year ago quarter. As a result of mild weather in October followed by pretty typical patterns in November and December.

Michael Stein: Electricity margins in the fourth quarter were lower than in the year-ago quarter, reflecting a multi-year migration toward fixed-price meters, including a number of aggregation wins during 2020. Having said that, the fourth quarter's margin on electricity sales was still above our historical seasonal average.

Speaker Change: Electricity margins in the fourth quarter were lower than in the year ago quarter, reflecting our multiyear migration toward fixed price meters, including a number of aggregation wins during 2024, having said that.

Speaker Change: The fourth quarter's margin on electricity sales was still above our historical seasonal average looking ahead, we expect to continue to build our meter book in 2025 as I mentioned last quarter, we have accelerated our growth in Texas and dynamic electricity market and we have just begun to generate revenue from our newest market natural gas in California.

Michael Stein: Looking ahead, we expect to continue to build our meter book in 2025. As I mentioned last quarter, we have accelerated our growth in Texas' dynamic electricity market, and we have just begun to generate revenue from our newest market, natural gas, in California. These two markets highlight our growth opportunity, but conditions are favorable across our markets now in 19 states plus the District of Columbia.

Speaker Change: Eastern markets highlight our growth opportunity, but conditions are favorable across our markets now in 19 States plus the district of Columbia.

Michael Stein: GREW, our renewables business, made tremendous progress in 2024 and capped the year with a strong fourth quarter. Gross profit in 2024 increased by over 120% compared to 2023, surpassing $6 million. Meanwhile, we held the percentage increase in SG&A to single digits to provide a strong improvement at GREW's bottom line.

Speaker Change: Through our renewables business made tremendous progress in 2024 and capped the year with a strong fourth quarter gross profit in 2024 increased by over 120% compared to 2023, surpassing $6 million. Meanwhile, we held the percentage increase in SG&A to single digits to provide a strong improvement versus bottom line.

Speaker Change: Formats.

Michael Stein: in addition to holding our solar generation and related business. Gru holds a number of early-stage growth initiatives. The largest of these is RODED, an environmental tech recycling Even though our increased investment in Rodead contributed nearly 25% of the total loss from operations at GRU, we still cut GRU's loss from operations nearly in half in 2024 compared to 2023. Rodead has a patented technology, developed in Israel, that turns agricultural and industrial plastic waste into end-use plastic products for industrial customers. It has successfully demonstrated its technology and begun to generate its first revenue. selling heavy-duty plastic pallets in local markets as its initial commercial product.

Speaker Change: In addition to holding our solar generation and related businesses grew holds a number of early stage growth initiatives. The largest of these is ROE dead and environmental Tech recycling business, even though our increased investment in Red dead contributed nearly 25% of the total loss from operations at grew we still cut grooves loss from operations near.

Speaker Change: In half in 2024 compared to 2023.

Speaker Change: So that has a patented technology developed in Israel that turns agricultural and industrial plastic waste into end use plastic products industrial customers. It has successfully demonstrated its technology and begun to generate its first revenues selling heavy duty plastic pallets in local markets as its initial commercial product we believe that.

Michael Stein: We believe that Rodead can produce plastic pallets equivalent in size, versatility, and strength to current pallet market offerings at a fraction of the price. Over the next few months, we will attempt to scale up operations in Israel by improving production efficiencies and increasing sales.

Speaker Change: Road that can produce plastic pallets equivalent in size versatility and strength to current pallet market offerings at a fraction of the price over the next few months, we will attempt to scale up operations in Israel by improving production efficiencies and increasing sales, we hope to have more information to share about the business in the coming quarters.

Michael Stein: We hope to have more information to share about the business in the coming quarter.

Speaker Change: Also that grew our energy procurement business diversity recorded a $700000 loss from operations last year in 2024, we supercharged its growth increasing revenue by 70% and G. P by 130% to generate over 750000 in income from operations, we expect <unk> to continue.

Michael Stein: Also at GRU, our energy procurement business, DiversiG, recorded a $700,000 loss from operations last year. In 2024, we supercharged its growth, increasing revenue by 70% and GP by 130%, to generate over $750,000 in income from operations. We expect Eversigy to continue to grow its top and bottom lines in 2025.

Speaker Change: To grow its top and bottom lines in 2025.

Michael Stein: At Genie Solar, we have essentially completed our strategic migration to utility-scale project vertical. Building, owning, and operating utility-scale projects will enable us to capture the long-term residual value of the power generated. In that regard, in the fourth quarter, we closed on our first solar financing deal for our portfolio of currently operating arrays, returning approximately $7 million in cash to our balance. The result of the financing will leave us with an attractive return on equity for this portfolio. Going forward, we intend to use similarly structured asset-backed finance deals to monetize our operational arrays and boost returns on equity so that we can maximize the cash in our balance sheet while driving growth at a greater scale.

Speaker Change: At Genie shoulder, we have essentially completed our strategic migration to utility scale projects vertical building owning and operating utility scale projects will enable us to capture the long term residual value of the power generated in that regard in the fourth quarter. We closed on our first solar financing deal for our portfolio are currently operating arrays returning.

Speaker Change: Approximately $7 million in cash to our balance sheet. The result of the financing will leave us with an attractive return on equity for this portfolio going forward, we intend to use similarly structured asset backed finance deals commoditize, our operational arrays and boost returns on equity so that we can maximize the cash in our balance sheet, while driving growth at a greater scale.

Speaker Change: In 2025, we expect that Genie solar will complete construction and bring online one of its initial community solar projects. In addition, we expect to begin construction on two or three more community solar projects over the course of the year. We will also continue to advance our early stage portfolio, even as we look for opportunities to add new arrays through acquisitions.

Michael Stein: In 2025, we expect that Genie Solar will complete construction and bring online one of its initial community solar projects. In addition, we expect to begin construction on two or three more community solar projects over the course of the year. We'll also continue to advance our early-stage portfolio, even as we look for opportunities to add new arrays through acquisitions, including both operating and development-stage solar projects.

Speaker Change: Including both operating and development stage solar projects 2024 was a good year operationally and financially we achieved strong adjusted EBITDA significantly higher than what we were achieving before our outperformance years in 2022 and 2023 at G. R. A we returned to meter and <unk> growth, putting us on pace to repeat or exceed.

Michael Stein: 2024 was a good year operationally and financially, we achieved strong adjusted EBITDA, significantly higher than what we were achieving before our outperformance years in 2022 and 2023. At GRE, we returned to meter and RCE growth, putting us on pace to repeat or exceed this year's profitability in 2025. At GRU, we improved key financial metrics, put ourselves on pace for continued growth while investing in new lines of business. Our strong operational performance enabled us to faithfully pay our dividend and buy back a significant amount of stock while growing our cash significance. On a consolidated basis for the full year 2025, we maintain our annual consolidated adjusted EBITDA guidance at $40-$50 million.

Speaker Change: This year's profitability in 2025.

Speaker Change: It grew we improved key financial metrics put ourselves on pace for continued growth while investing in new lines of businesses our.

Speaker Change: Our strong operational performance enabled us to faithfully pay our dividend and buyback a significant amount of stock while growing our cash significantly.

Speaker Change: On a consolidated basis for the full year of 2025, we maintain our annual consolidated adjusted EBITDA guidance at $40 million to $50 million. We also expect to continue to build our cash reserves and opportunistically buy back our stock while paying our current dividend, even while investing in growth at both our new and established businesses.

Michael Stein: We also expect to continue to build our cash reserves and opportunistically buy back our stock while paying our current dividend, even while investing in growth at both our new and established EBITDA levels.

Speaker Change: I want to wrap up by expressing my gratitude to the entire Genie team for doing a terrific work in 2024 and setting the stage for an even better 2025, now I will turn the call over to Avi for his discussion of our quarterly and full year financial results.

Michael Stein: I want to wrap up by expressing my gratitude to the entire Genie team for doing terrific work in 2024 and setting the stage for an even better 2025.

Avi Goldin: Now I will turn the call over to Avi for his discussion of our quarterly and full year financial plan.

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

Avi Goldin: Thank you, Michael, and thanks to everyone on the call for joining us this morning. My remarks today cover our financial results for the 3- and 12-month-ended December 31, 2024. In my commentary on the quarterly results, I will compare the results for the fourth quarter of 2024 to the fourth quarter of 2023 to remove from consideration the seasonal factors that impact our results, particularly within our retail energy business.

Avi Goldin: My remarks today cover our financial results for the three and 12 months ended December 31 2024.

Avi Goldin: My commentary on the quarterly results I will compare the results for the fourth quarter of 2024 for the fourth quarter of 2023 to remove from consideration the seasonal factors that impact our results, particularly within our retail energy business.

Avi Goldin: The fourth quarter is typically characterized by relatively low levels of electricity and moderate gas consumption, as the bulk of the quarter falls between the summer's peak cooling and winter heating season. I was pleased with our fourth quarter and full year results, highlighted by operational and financial performance consistent with our expectations, enabling us to achieve the upper end of our 2024 guidance range, while further strengthening our balance sheet. Turning to the fourth quarter numbers, consolidated revenue in the quarter decreased 1.9 percent or $2 million to $102.9 million. At GRE, revenue was unchanged at 98.4%. Electricity revenue of $82.1M was also unchanged and contributed to 83.5% of GRE's revenue.

Avi Goldin: The fourth quarter is typically characterized by relatively low levels of electricity and moderate gas consumption as the bulk of the quarter falls between the summer's peak cooling and winter heating seasons.

Avi Goldin: I was pleased with our fourth quarter and full year results highlighted by operational infinite financial performance consistent with our expectations, enabling us to achieve the upper end of our 2024 guidance range, while further strengthening our balance sheet turning to the fourth quarter numbers.

Avi Goldin: Consolidated revenue in the quarter decreased one, 9% or $2 million to $102 9 million at.

Avi Goldin: At GRE revenue was unchanged at $98 4 million.

Avi Goldin: Electricity revenue of $82 1 billion was also unchanged and contributed 83, 5% of <unk> revenues.

Avi Goldin: Consumption increased as a result of the success of our meter acquisition programs, but the impact of that increase was offset by lower revenue per kilowatt hour sold. Revenue from the sale of natural gas increased 7.5% in the fourth quarter to $16.2 million, reflecting increases in both our gas meter base and revenue per thermosol.

Avi Goldin: <unk> increased as a result of the success of our meter acquisition programs, but the impact of that increase was offset by lower revenue per kilowatt hours sold.

Avi Goldin: Revenue from the sale of natural gas increased seven 5% in the fourth quarter to $16 2 million, reflecting increases in both our gas meter base and revenue per therm sold.

Avi Goldin: At group fourth quarter revenue decreased 31% to $4 5 million.

Avi Goldin: At GRU, fourth quarter revenue decreased 30.1% to $4.5 million. Strong growth at Diversity was offset by a reduction in revenue at Genie Solar as we shifted our strategic focus from lower margin commercial projects. and at Citicom Solar. Consolidated gross profit was $33.5 million, a slight reduction from the $33.6 million we achieved in the year ago quarter, while our gross margin edged up 40 basis points to 32.5%. At GRE gross profit decreased 1.8% to $31.9 million as our gross margin decreased 55 basis points to 32.4%. The decreases were driven by margin compression on electricity cells, which is partially offset by stronger margins on gas cells.

Avi Goldin: Strong growth at diversity was offset by a reduction in revenue of G. D solar as we shifted our strategic focus from lower margin commercial projects.

Avi Goldin: At Silicon solar.

Avi Goldin: Consolidated gross profit was $33 5 million a slight reduction from the $33 6 million, we achieved in the year ago quarter, while our gross margin edged up 40 basis points to 32, 5%.

Avi Goldin: At GRE gross profit decreased one 8% to $31 9 million as our gross margin decreased 55 basis points to 32, 4%.

Avi Goldin: The decreases were driven by margin compression on electricity sales, which is partially offset by stronger margins on gas sales.

Avi Goldin: We increased Gru's gross profit by 38% year over year to $1.5 million, achieving a gross profit margin of 33.9%. The improvement was driven by strong results of diversity and the contributions from our operating solar projects at Genie Solar. Our fourth quarter consolidated loss from operations decreased 39.2% year-over-year to $20.8 million, which includes the impact of the $30.9 million loss reserved by our capital insurance subsidiary as we added additional risk. The comparative improvement is primarily due to the $45.1 million lost reserve in the year-ago quarter. These non-cash charges are excluded from our measures of adjusted EBITDA and non-GAAP earnings per share.

Avi Goldin: We increased <unk> gross profit by 38% year over year to $1 $5 million, achieving a gross profit margin of 33, 9%.

Avi Goldin: The improvement was driven by strong results the diversity and contributions from our operating solar projects at Ges.

Avi Goldin: Our fourth quarter consolidated loss from operations decreased 39, 2% year over year to $20 8 million, which includes the impact of $30 9 million loss reserve our captive insurance subsidiary as we added additional risks to comparative improvement is primarily due to the $45 1 million loss reserve in the year ago quarter.

Avi Goldin: Noncash charges are excluded from our measures of adjusted EBITDA and non-GAAP earnings per share. That's additional risks are added we expect the ongoing impacts of this line item to reflect changes in the potential liability for the risks that the captive isn't sharing.

Avi Goldin: Unless additional risks are added, we expect the ongoing impact of this line item to reflect changes in the potential liability for the risks that the captive is insuring. Solidated adjusted EBITDA decreased 2.8% to $11.1 million, driven by a reduction in adjusted EBITDA at GRE, partially offset by the increased contribution from GRU. At GRE, income from operations decreased 15.9% to $12.6 million, and adjusted EBITDA decreased 13% to $13.4 million. The decreases resulted from our increased pace of investment in meter acquisition and, to a lesser extent, the reduced margin on sales of electricity. Accru, the fourth quarter's loss from operations decreased 46.9% to $700,000 and adjusted EBITDA loss decreased 60.2% to $521,000.

Avi Goldin: Holidayed adjusted EBITDA decreased two 8% to $11 1 million driven by a reduction in adjusted EBITDA at GRE, partially offset by the increased contribution from group.

At GRE income from operations decreased 15, 9% to $12 6 million and adjusted EBITDA decreased 13% $13 4 million.

Avi Goldin: The decrease is resulted from our increased pace of investment in meter acquisition and to a lesser extent the reduced margin on sales of electricity.

Avi Goldin: The fourth quarter's loss from operations decreased 46, 9% to 700000 and adjusted EBITDA loss decreased to 62% to 521000. The improvement reflects diversity is improving profitability and margin expansion at Genie solar.

Avi Goldin: The improvement reflects Diversity G's improving profitability and margin expansion at Genie Solar. Consolidated net loss attributed with Genie Commons shareholders, which includes the non-cash insurance loss reserve, decreased $15.3 million to $0.58 per share from $24.5 million or $0.90 per share a year earlier. Consolidated net loss from continuing operations attributable to Genie shareholders, which excludes a $2.5 million charge related to the closure of our European operations that is reflected as a loss from discontinued operations, improved to a loss of $12.9 million, or $0.48 per diluted share, from a net loss of $25 million, or $0.92 per diluted share, in the year ago.

Avi Goldin: Consolidated net loss attributable Genie common shareholders, which includes the noncash insurance loss reserve decreased $15 3 million to <unk> 58 per share from $24 5 million or <unk> 90 per share a year earlier.

Avi Goldin: Consolidated net loss from continuing operations attributable to Genie shareholders, which excludes the $2 5 million charge related to the closure of our European operations that is reflected as a loss from discontinued operations improved to a loss of $12 9 million or <unk> 48 per diluted share from a net loss of $25 million or <unk> 92 per diluted share in the year ago.

Avi Goldin: Quarter.

Avi Goldin: Now I'll spend a few minutes discussing our full year 2024 results.

Avi Goldin: Now we'll spend a few minutes discussing our full year 2024 results. Consolidated revenue in 2024 decreased 0.8% to $425.2 million. At GRE, 2024 revenue of $403.3 fell 1.6% compared to 2023. Electricity sales, which generated 87% of GRE's 2024 revenue, were flat as the impact of our larger electric meter base was offset by a decrease in revenue per kilowatt hour sold. Acru 2024 revenue jumped 16.1% to $21.9 million on the back of Diversity's strong top-line growth. Validated gross profit decreased 5.3% to $138.5 million, where our gross margin decreased 150 basis points to 32.6%. Our consolidated income from operations increased to $11.3 million from $10 million in 2023.

Avi Goldin: Consolidated revenue in 2024 decreased <unk>, 8% to $425 2 million at GRE 2020 for revenue of $403 three felt.

Avi Goldin: One 6% compared to 2023.

Avi Goldin: <unk> sales, which generated 87% of Jeremy 2024 revenues were flat as the interest impact of our larger electric meter base was offset by a decrease in revenue per kilowatt hours sold.

Avi Goldin: And through 2024 revenue jumped to 16, 1% to $21 9 million on the back of diversity strong topline growth.

Avi Goldin: The elevated gross profit decreased five 3% to $138 5 million or a gross margin decreased 150 basis points to 32, 6%.

Avi Goldin: Saudi income from operations increased to $11 3 million from $10 billion in 2023.

Avi Goldin: The lower non-cash loss reserve for our capital insurance subsidiary in 2024 compared to 2023 more than offset the combined impacts of the decrease in our gross profit and increased investment in meter acquisition. Adjusted EBITDA, which excludes the lost reserves, came in at the upper end of our guidance at $48.5 million compared to $58.2 million in 2023. The decrease was due entirely to a lower contribution from GRE. GRE, income from operations decreased 21.4% to $56.5 million from $71.9 million and adjusted EBITDA decreased 20.4% to $58.4 million from $73.3 million. In 2023, we experienced a unique margin environment that allowed us to experience stronger-than-usual results.

Avi Goldin: The lower noncash loss reserve for a captive insurance subsidiary in 2024 compared to 2023 more than offset the combined impacts of the decrease in our gross profit and increased investment in meter acquisition.

Avi Goldin: Adjusted EBITDA, which excludes the loss reserves came in at the upper end of our guidance at $48 5 million compared to $58 2 million in 2023.

Avi Goldin: The decrease was due entirely to a lower contribution from GRE.

Avi Goldin: At GRE income from operations decreased 21, 4% to $56 5 million from $71 9 million and adjusted EBITDA decreased 24% to $58 4 million from $73 3 million.

Avi Goldin: In 2023, we experienced a unique margin environment that allowed us to experience stronger than usual results and 2024 would move back towards our longer term average gross margin, while investing to grow our retail book notes that will not as strong as the results. We obtained in 2022 and 2023 2024 results were significant improvement or.

Avi Goldin: In 2024, we moved back towards our longer-term average gross margin while investing to grow our retail book. Note that while not as strong as the results we obtained in 2022 and 2023, 2024 results were a significant improvement over the long-term run rate. At GRU, the loss from operations improved to $3 million from $5.8 million in 2023, and we reduced our adjusted EBITDA loss to $2.2 million from $5.4 million in 2012. As was the case with our fourth quarter results, the full-year improvement reflects DiversiG's pivot to profitability and that Genie saw the transition to utility-scale project development and operations.

Avi Goldin: The long term run rate.

Avi Goldin: I agree with the loss from operations improved to $3 million from $5 8 million in 2023, and we reduced our adjusted EBITDA loss of $2 2 million from $5 4 million in 2023.

Avi Goldin: As was the case with our fourth quarter results. The full year improvement reflects diversity of these pivots profitability and that genie solely the transition to utility scale project development and operations.

Avi Goldin: For 2024 consolidated net income attributable Genie common stockholders, which includes the noncash provision for captive insurance liability decreased to $12 6 million or <unk> 46 per diluted share from $19 2 million or <unk> 74 per diluted share in 2023.

Avi Goldin: For 2024, consolidated net income attributed to Genie Common stockholders, which includes a non-cash provision for captive insurance liability, decreased to $12.6 million, or $0.46 per diluted share, from $19.2 million, or $0.74 per diluted share in 2023. Included earnings per share from continuing operations, exclusive to the impact of our discontinued European operations, increased to $0.57 in 2024 from $0.49 in 2023. Non-GAAP diluted earnings per share, which excludes discontinued operations and the impact of the loss at the captive insurance company, was $1.40 per diluted share versus $2.00 per diluted share in 2012. Turning now to the balance sheet, at December 31st, 2024, cash, cash equivalents, long and short term restricted cash, which includes the cash held by our captive insurance subsidiary, as well as marketable equity securities totaled $201 million, an increase of $37.6 million over the full year.

Avi Goldin: Diluted earnings per share from continuing operations exclusive of the impact of our discontinued European operations increased to 57 and 2024 from 49 cents in 2023.

Avi Goldin: non-GAAP diluted earnings per share, which excludes discontinued operations and the impact of the loss of the captive insurance company was $1 40 per diluted share versus $2 per diluted share in 2023.

Avi Goldin: Turning now to the balance sheet at December 31, 2024, cash cash equivalents long and short term restricted cash which includes the cash held by our captive insurance subsidiary as well as marketable equity securities totaled $201 million, an increase of $37 6 million over the full year.

Avi Goldin: Working capital was $117.6 million. Our debt of $8.7 million reflects the financing deal for our portfolio of operational arrays that Michael mentioned earlier. We repurchased approximately 168,000 shares of our Class B common stock in the fourth quarter for $2.5 million. For the full year 2024, we repurchased 661,000 shares for $10.4 million and paid out a regularly quarterly dividend to return an additional $8.2 million to Stockholm.

Avi Goldin: Working capital was $117 6 million.

Avi Goldin: Our debt was $8 7 million reflects the financing deal for our portfolio of operational arrays that Michael mentioned earlier.

Avi Goldin: We repurchased approximately 168000 shares of our class B common stock in the fourth quarter for $2 5 million for the full year 2024, we repurchased 661000 shares for $10 4 million and paid out a regularly quarterly dividend to return an additional $8 2 million to stockholders to wrap up.

Avi Goldin: To wrap up, this was another solid financial quarter and capped off a strong year, characterized by robust cash generation, further strengthening of our balance sheet, and significant investments in growth initiatives. We're in excellent position to perform very well again in 2025 and continue to return value to our stockholders.

Avi Goldin: This was another solid financial quarter and capped off a strong year characterized by robust cash generation further strengthening of our balance sheet and significant investments in growth initiatives.

Avi Goldin: Excellent positioned to perform very well again in 2025 and continue to return value to our stockholders operator back to you for Q&A.

Avi Goldin: Certainly we will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two we will.

Operator: We will now begin the question and answer session.

Operator: To ask a question, you may press star then 1 on your touch screen. if you are using a speaker.

Operator: Please pick up your hand set before pressing the button.

Operator: To order your question, please press star then.

Operator: We will now pause momentarily to assemble our. Again, if you have a question, please press star then.

Avi Goldin: Now pause momentarily to assemble our roster.

Avi Goldin: Again, if you have a question. Please press Star then one.

Avi Goldin: As there are no questions. This concludes our question and answer session and conference call. Thank you for attending today's presentation.

Operator: There are no questions.

Operator: This concludes our question and answer session and conference.

Operator: Thank you for attending today's presentation. you may now

Avi Goldin: You may now disconnect.