GENIE ENERGY LTD. Record Fourth Quarter and Full Year Revenue
Full-year 2023 Adjusted EBITDA1 exceeded upper range of prior guidance
Cash and cash equivalents, short and long-term restricted cash, and marketable equity securities increased 55% year-over-year to
"Genie finished a strong year with record fourth quarter and full-year revenue. After reducing our retail customer exposure in 2022, which led to incredible but unsustainable profitability, we returned to customer acquisition mode in 2023, growing both RCEs and meters by over 30%. Through our portfolio management moves we made in 2022 and the customer growth in 2023, we increased our baseline Adjusted EBITDA from the
“We also continued to make progress at our Genie Renewables, or GREW, division. During the quarter, our Sunlight Energy subsidiary acquired a 9.4MW portfolio of operating assets while we continued to advance our development portfolio. Our third-party energy and renewables services businesses also performed well led by Diversegy, which generated strong levels of growth in its customer book.”
Fourth Quarter 2023 Highlights
(Compared to 4Q22 unless otherwise noted. Unless otherwise noted, results of Genie Retail Energy International (GREI) are included in discontinued operations for all periods.)
| ● | Revenue increased 28.9% to | |||
| ● | Gross profit decreased 3.1% to | |||
| ● | Loss from operations of | |||
| ○ | The loss in 4Q23 reflects a one-time | |||
| ● | Adjusted EBITDA1 decreased 38.0% to | |||
| ○ | The decrease reflects both the strong gross margin achieved at Genie Retail in 4Q22 and increased investment in customer acquisitions in 4Q23; | |||
| ● | Net loss attributable to Genie common stockholders and loss per diluted share (EPS) attributable to Genie common stockholders of | |||
| ● | Non-GAAP1 net income and non-GAAP EPS1 attributable to Genie common stockholders, which excluded the impact of the insurance loss reserve, of | |||
| ● | Cash and cash equivalents, short and long-term restricted cash, and marketable equity securities increased to | |||
| ● | ||||
| 1 | Adjusted EBITDA, Non-GAAP net income (loss) attributable to |
Full Year 2023 Highlights
(versus 2022; excludes discontinued operations of
| ● | Revenue increased 35.9% to | |
| ● | Gross profit decreased 5.5% to | |
| ● | Income from operations decreased to | |
| ● | Adjusted EBITDA decreased to | |
| ● | GRE generated income from operations and Adjusted EBITDA of | |
| ● | Net income attributable to Genie common stockholders and diluted EPS attributable to Genie common stockholders of | |
| ● | Non-GAAP net income and non-GAAP EPS attributable to Genie common stockholders, which excluded the impact of the insurance loss reserve, of | |
| ● | Redeemed and retired the remaining | |
Select Financial Metrics*
| (in $M except for EPS)** | 4Q23 | 4Q22 | Change | 2023 | 2022 | Change | |||||||||||||||||||||
| Total Revenue | $ | 104.9 | $ | 81.4 | 28.9 | % | $ | 428.7 | $ | 315.5 | 35.9 | % | |||||||||||||||
| $ | 98.4 | $ | 77.0 | 27.8 | % | $ | 409.9 | $ | 304.0 | 34.8 | % | ||||||||||||||||
| Electricity | $ | 82.1 | $ | 55.6 | 47.6 | % | $ | 350.8 | $ | 241.8 | 45.1 | % | |||||||||||||||
| Natural Gas | $ | 15.1 | $ | 21.4 | (29.4 | ) | % | $ | 56.0 | $ | 62.1 | (9.9 | ) | % | |||||||||||||
| Genie Renewables | $ | 6.5 | $ | 4.4 | 48.4 | % | $ | 18.8 | $ | 11.6 | 62.8 | % | |||||||||||||||
| Gross Margin | 32.1 | % | 42.7 | % | (1,060 | ) | bps | 34.1 | % | 49.1 | % | (1,495 | ) | % | |||||||||||||
| 33.0 | % | 44.4 | % | (1,136 | ) | bps | 35.0 | % | 50.3 | % | (1,535 | ) | bps | ||||||||||||||
| Genie Renewables | 17.2 | % | 1.2 | % | 1,595 | bps | 15.1 | % | 15.6 | % | (45 | ) | bps | ||||||||||||||
| (Loss) Income from Operations | $ | (34.2 | ) | $ | 15.5 | (320.8 | ) | % | $ | 10.0 | $ | 77.8 | (87.1 | ) | % | ||||||||||||
| Operating Margin | (32.6 | ) | % | 19.0 | % | (5,161 | ) | bps | 2.3 | % | 24.6 | % | (2,231 | ) | bps | ||||||||||||
| Net (Loss) Income from Continuing Operations | $ | (24.1 | ) | $ | 12.3 | na | $ | 13.9 | $ | 56.5 | (75.4 | ) | % | ||||||||||||||
| Net (Loss) Income Attributable to Genie Common Stockholders | $ | (24.5 | ) | $ | 16.2 | na | $ | 20.3 | $ | 86.9 | (76.7 | ) | % | ||||||||||||||
| Diluted (Loss) Earnings Per Share | $ | (0.90 | ) | $ | 0.59 | na | $ | 0.74 | $ | 3.26 | (77.4 | ) | % | ||||||||||||||
| Non-GAAP Net Income Attributable to Genie Common Stockholders | $ | 10.0 | $ | 16.2 | (38.0 | ) | % | $ | 53.7 | $ | 85.9 | (37.4 | ) | % | |||||||||||||
| Non-GAAP Diluted Earnings Per Share | $ | 0.37 | $ | 0.59 | (38.1 | ) | % | $ | 2.06 | $ | 3.26 | (36.7 | ) | % | |||||||||||||
| Adjusted EBITDA | $ | 11.4 | $ | 18.5 | (38.0 | ) | % | $ | 58.2 | $ | 83.2 | (30.0 | ) | % | |||||||||||||
| Cash Flow from Continuing Operating Activities | $ | 18.4 | $ | 21.3 | (13.7 | ) | % | $ | 50.9 | $ | 66.0 | (22.8 | ) | % | |||||||||||||
| * | Operations of |
| ** | Numbers may not add due to rounding |
Segment Highlights
Select Performance Metrics
| RCEs and Meters in 1000s* | 4Q23 | 4Q22 | Change | ||||||||||
| Total RCEs | 350 | 262 | 33.4 | % | |||||||||
| Electricity | 272 | 181 | 50.0 | % | |||||||||
| Natural Gas | 78 | 81 | (3.8 | ) | % | ||||||||
| Total Meters | 361 | 275 | 31.3 | % | |||||||||
| Electricity | 279 | 196 | 42.3 | % | |||||||||
| Natural Gas | 82 | 79 | 3.9 | % | |||||||||
| Gross Adds | 52 | 47 | 10.7 | % | |||||||||
| Churn** | 5.4 | % | 5.5 | % | (10 | ) | bps | ||||||
| * | Numbers may not add due to rounding |
| ** | Excludes expirations of aggregation deals |
GRE's fourth quarter and full-year revenue increased 27.8% to
Genie Renewables (GREW)
GREW increased fourth-quarter revenue by 48.4% year-over-year to
| Pipeline | Total | Operational | Site Control | Permitting | Construction | |||||
| MW | 98 | 9 | 72 | 6 | 10 | |||||
| Project Count | 14 | 1 | 10 | 1 | 2 | |||||
Balance Sheet and Cash Flow Highlights
As of
Total assets as of
Cash provided by operating activities was
Trended Financial Information:*
| (in $M except for EPS, RCEs and Meters)** | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 2021 | 2022 | 2023 | ||||||||||||||||||||||||||||||||||||||
| Total Revenue | $ | 85.9 | $ | 67.0 | $ | 81.3 | $ | 81.4 | $ | 105.3 | $ | 93.5 | $ | 125.0 | $ | 104.9 | $ | 323.3 | $ | 315.5 | $ | 428.7 | |||||||||||||||||||||||||||
| $ | 83.9 | $ | 63.2 | $ | 79.9 | $ | 77.0 | $ | 101.4 | $ | 89.7 | $ | 120.3 | $ | 98.4 | $ | 311.8 | $ | 304.0 | $ | 409.9 | ||||||||||||||||||||||||||||
| Electricity | $ | 59.4 | $ | 53.1 | $ | 73.8 | $ | 55.6 | $ | 74.5 | $ | 80.2 | $ | 114.0 | $ | 82.1 | $ | 273.0 | $ | 241.8 | $ | 350.8 | |||||||||||||||||||||||||||
| Natural Gas | $ | 24.5 | $ | 10.1 | $ | 6.2 | $ | 21.4 | $ | 26.9 | $ | 9.0 | $ | 5.0 | $ | 15.1 | $ | 38.8 | $ | 62.1 | $ | 56.0 | |||||||||||||||||||||||||||
| Others | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.00 | $ | 0.0 | $ | 0.6 | $ | 1.3 | $ | 1.2 | $ | 0.0 | $ | 0.0 | $ | 3.1 | |||||||||||||||||||||||||||
| Genie Renewables | $ | 2.0 | $ | 3.8 | $ | 1.4 | $ | 4.4 | $ | 3.9 | $ | 3.7 | $ | 4.7 | $ | 6.5 | $ | 7.5 | $ | 11.6 | $ | 18.8 | |||||||||||||||||||||||||||
| Gross Margin | 54.8 | % | 44.6 | % | 53.1 | % | 42.7 | % | 31.6 | % | 40.9 | % | 32.9 | % | 32.1 | % | 28.3 | % | 49.1 | % | 34.1 | % | |||||||||||||||||||||||||||
| 55.5 | % | 46.0 | % | 54.1 | % | 44.4 | % | 32.1 | % | 41.8 | % | 33.9 | % | 33.0 | % | 29.1 | % | 50.3 | % | 35.0 | % | ||||||||||||||||||||||||||||
| Genie Renewables | 24.1 | % | 22.1 | % | (6.3 | ) | % | 12.4 | % | 19.3 | % | 19.6 | % | 5.3 | % | 17.2 | % | 37.1 | % | 15.6 | % | 15.1 | % | ||||||||||||||||||||||||||
| Income (Loss) from Operations | $ | 26.9 | $ | 11.8 | $ | 23.5 | $ | 15.5 | $ | 11.3 | $ | 15.0 | $ | 17.9 | $ | (34.2 | ) | $ | 24.1 | $ | 77.7 | $ | 10.0 | ||||||||||||||||||||||||||
| Operating Margin | 31.4 | % | 17.7 | % | 29.0 | % | 19.0 | % | 10.7 | % | 16.1 | % | 14.3 | % | (32.6 | ) | % | 7.5 | % | 24.6 | % | 2.3 | % | ||||||||||||||||||||||||||
| Net Income (Loss) Attributable to Genie Common Stockholders | $ | 17.5 | $ | 33.9 | $ | 18.3 | $ | 16.2 | $ | 14.3 | $ | 15.0 | $ | 14.5 | $ | (24.5 | ) | $ | 27.5 | $ | 85.9 | $ | 19.2 | ||||||||||||||||||||||||||
| Diluted Earnings (Loss) Per Share | $ | 0.67 | $ | 1.30 | $ | 0.70 | $ | 0.59 | $ | 0.54 | $ | 0.57 | $ | 0.53 | $ | (0.90 | ) | $ | 1.05 | $ | 3.26 | $ | 0.74 | ||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 28.0 | $ | 12.2 | $ | 24.5 | $ | 18.5 | $ | 12.4 | $ | 15.8 | $ | 18.5 | $ | 11.4 | $ | 27.8 | $ | 83.2 | $ | 58.2 | |||||||||||||||||||||||||||
| Genie Retail Energy Performance Metrics | |||||||||||||||||||||||||||||||||||||||||||||||||
| RCEs | 260 | 263 | 251 | 262 | 352 | 380 | 375 | 350 | 260 | 262 | 350 | ||||||||||||||||||||||||||||||||||||||
| Electricity | 182 | 185 | 174 | 181 | 276 | 304 | 298 | 272 | 189 | 181 | 272 | ||||||||||||||||||||||||||||||||||||||
| Natural Gas | 78 | 77 | 77 | 81 | 77 | 76 | 77 | 78 | 71 | 81 | 78 | ||||||||||||||||||||||||||||||||||||||
| Meters | 286 | 280 | 271 | 275 | 349 | 381 | 385 | 361 | 285 | 276 | 361 | ||||||||||||||||||||||||||||||||||||||
| Electricity | 209 | 203 | 193 | 196 | 271 | 302 | 304 | 279 | 210 | 197 | 279 | ||||||||||||||||||||||||||||||||||||||
| Natural Gas | 77 | 77 | 77 | 79 | 78 | 80 | 81 | 82 | 75 | 79 | 82 | ||||||||||||||||||||||||||||||||||||||
| Gross Adds | 44 | 34 | 33 | 47 | 129 | 75 | 60 | 52 | 177 | 159 | 316 | ||||||||||||||||||||||||||||||||||||||
| Churn*** | 4.5 | % | 4.4 | % | 4.7 | % | 5.5 | % | 4.4 | % | 4.3 | % | 4.4 | % | 5.4 | % | 4.5 | % | 4.8 | % | 4.9 | % | |||||||||||||||||||||||||||
| * | GREI operations have been classified as a discontinued operation and its results excluded from current and historical results |
| ** | Numbers may not add due to rounding |
| *** | Excludes expirations of aggregation deals |
2024 Commentary
Stein continued: “The Company's strong 2023 performance resulted from the measures we took in 2022 and 2023 to re-position the Company, and we expect that 2023's key trends will help us to deliver outstanding results in 2024. Our initial expectation is for Adjusted EBITDA to be within our new baseline range of
"For GRE, we are likely to continue to grow our customer base and generate Adjusted EBITDA above historical norms. For GREW, we expect to initially fund the construction of our two current construction-stage solar projects with cash on hand, but eventually, we expect to take on project-level debt as our development-stage projects come closer to operational status. Additionally, we expect to benefit from the recent changes we implemented to upgrade our solar organization and improve overall efficiency and execution throughout the Company. We expect these organizational enhancements will also help improve our development pipeline moving forward. Finally, at Diversegy, we expect to see significant growth in recurring revenue.”
Earnings Announcement and Supplemental Information
At
To participate in the conference call, dial 1-877-545-0523 (toll-free from the US) or 1-973-528-0016 (international) and provide the following participant access code: 259418.
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 passcode: 49772. The replay will remain available through
About
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.
Contact:
Brian Siegel IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
brian@haydenir.com
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
2023 | 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 107,609 | $ | 98,571 | ||||
| Restricted cash—short-term | 10,442 | 6,007 | ||||||
| Marketable equity securities | 396 | 490 | ||||||
| Trade accounts receivable, net of allowance for doubtful accounts of | 61,909 | 55,134 | ||||||
| Inventory | 14,598 | 15,714 | ||||||
| Prepaid expenses | 16,222 | 6,822 | ||||||
| Other current assets | 5,475 | 6,207 | ||||||
| Current assets of discontinued operations | 13,182 | 38,688 | ||||||
| Total current assets | 229,833 | 227,633 | ||||||
| Restricted cash—long-term | 44,945 | — | ||||||
| Property and equipment, net | 15,192 | 891 | ||||||
| 9,998 | 9,998 | |||||||
| Other intangibles, net | 2,735 | 3,133 | ||||||
| Deferred income tax assets, net | 5,200 | 5,799 | ||||||
| Other assets | 15,247 | 13,856 | ||||||
| Noncurrent assets of discontinued operations | 7,405 | 16,305 | ||||||
| Total assets | $ | 330,555 | $ | 277,615 | ||||
| Liabilities and equity | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | 27,881 | 25,313 | ||||||
| Accrued expenses | 49,389 | 35,659 | ||||||
| Income taxes payable | 6,699 | 22,576 | ||||||
| Due to IDT Corporation, net | 145 | 165 | ||||||
| Other current liabilities | 9,280 | 4,549 | ||||||
| Current liabilities of discontinued operations | 4,858 | 10,936 | ||||||
| Total current liabilities | 98,252 | 99,198 | ||||||
| Noncurrent captive insurance liability | 44,945 | — | ||||||
| Other liabilities | 2,212 | 4,087 | ||||||
| Noncurrent liabilities of discontinued operations | 638 | 686 | ||||||
| Total liabilities | 146,047 | 103,971 | ||||||
| Commitments and contingencies | — | — | ||||||
| Equity: | ||||||||
| Preferred stock, | ||||||||
| Series 2012-A, designated shares - 8,750; at liquidation preference, consisting of 0 and 983 shares issued and outstanding at | — | 8,359 | ||||||
| Class A common stock, | 16 | 16 | ||||||
| Class B common stock, | 288 | 271 | ||||||
| Additional paid-in capital | 156,101 | 146,546 | ||||||
| (22,661 | ) | (19,010 | ) | |||||
| Accumulated other comprehensive income | 3,299 | 1,926 | ||||||
| Retained earnings | 60,196 | 49,010 | ||||||
| 197,239 | 187,118 | |||||||
| Noncontrolling interests | (12,731 | ) | (13,474 | ) | ||||
| Total equity | 184,508 | 173,644 | ||||||
| Total liabilities and equity | $ | 330,555 | $ | 277,615 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Year Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| (in thousands, except per share data) | ||||||||
| Revenues: | ||||||||
| Electricity | $ | 350,779 | $ | 241,828 | ||||
| Natural gas | 55,988 | 62,144 | ||||||
| Other | 21,941 | 11,567 | ||||||
| Total revenues | 428,708 | 315,539 | ||||||
| Cost of revenues | 282,502 | 160,757 | ||||||
| Gross profit | 146,206 | 154,782 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 91,109 | 74,962 | ||||||
| Provision for captive insurance liability | 45,088 | — | ||||||
| Impairment of assets | — | 2,066 | ||||||
| Income from operations | 10,009 | 77,754 | ||||||
| Interest income | 5,076 | 835 | ||||||
| Interest expense | (99 | ) | (129 | ) | ||||
| Gain (loss) on marketable equity securities and investments | 478 | (417 | ) | |||||
| Other income (loss), net | 2,644 | (520 | ) | |||||
| Income before income taxes | 18,108 | 77,523 | ||||||
| Provision for income taxes | (4,239 | ) | (21,037 | ) | ||||
| Net income from continuing operations | 13,869 | 56,486 | ||||||
| Income from discontinued operations, net of taxes | 6,409 | 30,445 | ||||||
| Net income | 20,278 | 86,931 | ||||||
| Net (income) loss attributable to noncontrolling interests, net | (740 | ) | 874 | |||||
| Net income attributable to | 19,538 | 87,805 | ||||||
| Dividends on preferred stock | (333 | ) | (1,939 | ) | ||||
| Net income attributable to | $ | 19,205 | $ | 85,866 | ||||
| Amounts attributable to | ||||||||
| Continuing operations | $ | 12,795 | $ | 59,956 | ||||
| Discontinued operations | 6,410 | 25,910 | ||||||
| Net income attributable to | $ | 19,205 | $ | 85,866 | ||||
| Earnings per share attributable to | ||||||||
| Basic: | ||||||||
| Continuing operations | $ | 0.50 | $ | 2.34 | ||||
| Discontinued operations | 0.25 | 1.01 | ||||||
| Earnings per share attributable to | $ | 0.75 | $ | 3.35 | ||||
| Diluted | ||||||||
| Continuing operations | $ | 0.49 | $ | 2.28 | ||||
| Discontinued operations | 0.25 | 0.98 | ||||||
| Earnings per share attributable to | $ | 0.74 | $ | 3.26 | ||||
| Weighted-average number of shares used in calculation of earnings per share: | ||||||||
| Basic | 25,553 | 25,629 | ||||||
| Diluted | 26,062 | 26,366 | ||||||
| Dividends declared per common share | $ | 0.30 | $ | 0.30 | ||||
| (i) Stock-based compensation included in selling, general and administrative expenses | $ | 2,783 | $ | 2,968 | ||||
GENIE ENERGY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Year Ended | ||||||||
| 2023 | 2022 | |||||||
| (in thousands) | ||||||||
| Operating activities | ||||||||
| Net income | $ | 20,278 | $ | 86,931 | ||||
| Net income from discontinued operations, net of tax | 6,409 | 30,445 | ||||||
| Net income from continuing operations | 13,869 | 56,486 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Provision for captive insurance liability | 45,088 | — | ||||||
| Depreciation and amortization | 463 | 385 | ||||||
| Deferred income taxes | 599 | (595 | ) | |||||
| Provision for doubtful accounts receivable | 2,362 | 2,515 | ||||||
| Stock-based compensation | 2,783 | 2,968 | ||||||
| Inventory valuation allowance | 1,148 | — | ||||||
| Charitable donation of Class B common stock | 1,006 | — | ||||||
| Unrealized (gain) loss on marketable equity securities and investments and others | (23 | ) | 434 | |||||
| Impairment of assets | — | 2,066 | ||||||
| Change in assets and liabilities: | ||||||||
| Trade accounts receivable | (9,137 | ) | (16,339 | ) | ||||
| Inventory | (8,714 | ) | 2,005 | |||||
| Prepaid expenses | (6,089 | ) | (2,658 | ) | ||||
| Other current assets and other assets | 494 | (5,595 | ) | |||||
| Trade accounts payable, accrued expenses and other liabilities | 22,986 | 11,635 | ||||||
| Due to IDT Corporation, net | (20 | ) | (367 | ) | ||||
| Income taxes payable | (15,877 | ) | 13,064 | |||||
| Net cash provided by operating activities of continuing operations | 50,938 | 66,004 | ||||||
| Net cash provided by operating activities of discontinued operations | 11,540 | 14,680 | ||||||
| Net cash provided by operating activities | 62,478 | 80,684 | ||||||
| Investing activities | ||||||||
| Capital expenditures | (1,363 | ) | (1,019 | ) | ||||
| Purchase of solar system facilities | (7,665 | ) | — | |||||
| Purchase of short-term equity investments | (11,019 | ) | (2,729 | ) | ||||
| Proceeds from the sale of marketable equity securities and other investments | 10,023 | — | ||||||
| Investment in notes receivables with related party | — | (1,505 | ) | |||||
| Repayment of notes receivable | 19 | 19 | ||||||
| Net cash used in investing activities of continuing operations | (10,005 | ) | (5,234 | ) | ||||
| Net cash provided by (used in) investing activities of discontinued operations | 23,645 | (44,088 | ) | |||||
| Net cash provided by (used in) investing activities | 13,640 | (49,322 | ) | |||||
| Financing activities | ||||||||
| Dividends paid | (8,873 | ) | (9,158 | ) | ||||
| Repurchases of Class B common stock from employees | (2,888 | ) | (567 | ) | ||||
| Proceeds from the exercise of warrants | 5,000 | — | ||||||
| Repurchase of Class B common stock | (37 | ) | (4,414 | ) | ||||
| Redemption of preferred stock | (8,359 | ) | (11,384 | ) | ||||
| Net cash used in financing activities | (15,157 | ) | (25,523 | ) | ||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (60 | ) | 17 | |||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 60,901 | 5,856 | ||||||
| Cash, cash equivalents, and restricted cash (excluding cash held at discontinued operations) at beginning of period | 104,578 | 100,225 | ||||||
| Cash, cash equivalents and restricted cash (including cash held at discontinued operations) at end of the period | 165,479 | 106,081 | ||||||
| Less: Cash held at of discontinued operations at end of period | (2,483 | ) | (1,503 | ) | ||||
| Cash, cash equivalents, and restricted cash (excluding cash held at discontinued operations) at end of period | $ | 162,996 | $ | 104,578 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Cash payments made for interest | 93 | 123 | ||||||
| Cash payments made for income taxes | 20,715 | 8,570 | ||||||
Reconciliation of Non-GAAP Financial Measure for the Fourth Quarter and Full Year 2023
In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in
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’s measure of consolidated Adjusted EBITDA starts with income from operations and adds back depreciation, amortization, and stock-based compensation and deducts impairment of assets and equity in the net loss of equity method investees, net
Genie's measure of Non-GAAP Net Income starts with net income attributable to
Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS 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’s measurement of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.
Management believes that Genie’s measure of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS provide useful information to both management and investors by excluding certain expenses that may not be indicative of Genie’s or GRE’s core operating results. Management uses Adjusted EBITDA, non-GAAP Net Income and Non-GAAP EPS, among other measures, as a relevant indicators of core operational strengths in its financial and operational decision-making.
Management also uses Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS to evaluate operating performance in relation to Genie’s competitors. Disclosure of these 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,
Management refers to Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS as well as the GAAP measures revenue, gross profit, and income from operations, as well as net income, on a consolidated level to facilitate internal and external comparisons to Genie'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’s operating results exclusive of depreciation and amortization are therefore useful indicators of its current performance.
Stock-based compensation recognized by
Impairment of assets is a component of income (loss) from operations that is excluded from the calculation of Adjusted EBITDA. The impairment of assets 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's continuing operations.
Captive insurance liability is a non-cash charge for a reserve at Genie's captive insurance operations. While there may be related charges in other periods, the magnitude of these changes can fluctuate markedly and do not reflect the performance of Genie's continuing operations. Captive insurance losses are excluded from Genie's calculation of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results of Genie’s core business with the results of other companies.
Following are the reconciliations of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS on a consolidated basis to its most directly comparable GAAP measure. Adjusted EBITDA is reconciled to income from operations for
Non-GAAP Reconciliation - Consolidated Adjusted EBITDA
| 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 2021 | 2022 | 2023 | ||||||||||||||||||||||||||||||||||
| Income (loss) from Operations | $ | 26.9 | $ | 11.8 | $ | 23.5 | $ | 15.5 | $ | 11.3 | $ | 15.0 | $ | 17.9 | $ | (34.2 | ) | $ | 24.1 | $ | 77.7 | $ | 10.0 | |||||||||||||||||||||
| Add back | ||||||||||||||||||||||||||||||||||||||||||||
| Captive insurance liability | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 45.1 | $ | 0.0 | $ | 0.0 | $ | 45.1 | ||||||||||||||||||||||
| Depreciation and Amortization | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | 0.4 | $ | 0.4 | $ | 0.4 | ||||||||||||||||||||||
| Non-Cash Compensation | $ | 0.8 | $ | 0.7 | $ | 0.7 | $ | 0.7 | $ | 0.8 | $ | 0.8 | $ | 0.6 | $ | 0.5 | $ | 2.8 | $ | 2.9 | $ | 2.8 | ||||||||||||||||||||||
| Impairment | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 2.1 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 2.1 | $ | 0.0 | ||||||||||||||||||||||
| Equity in net loss (income) of equity method investees | $ | 0.1 | $ | (0.4 | ) | $ | 0.2 | $ | 0.1 | $ | 0.2 | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.1 | ) | $ | 0.4 | $ | 0.0 | $ | (0.1 | ) | |||||||||||||||||
| Adjusted EBITDA | $ | 27.9 | $ | 12.2 | $ | 24.5 | $ | 18.5 | $ | 12.4 | $ | 15.8 | $ | 18.5 | $ | 11.4 | $ | 27.8 | $ | 83.1 | $ | 58.2 | ||||||||||||||||||||||
Non-GAAP Reconciliation - GRE Adjusted EBITDA
| (in millions) | 4Q23 | 4Q22 | 2023 | 2022 | ||||||||||||
| Income from Operations | $ | 15.0 | $ | 20.6 | $ | 71.9 | $ | 92.6 | ||||||||
| Add back | ||||||||||||||||
| Depreciation and Amortization | $ | 0.1 | $ | 0.1 | $ | 0.3 | $ | 0.3 | ||||||||
| Stock-based Compensation | $ | 0.2 | $ | 0.2 | $ | 1.0 | $ | 1.0 | ||||||||
| Impairment | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | ||||||||
| Equity in the income of equity method investee | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | ||||||||
| Adjusted EBITDA | $ | 15.4 | $ | 20.9 | $ | 73.3 | $ | 93.9 | ||||||||
Non-GAAP Reconciliation - Consolidated Non-GAAP Net Income Attributable to
| (in millions) | 4Q23 | 4Q22 | 2023 | 2022 | ||||||||||||
| Net income attributable to | $ | (24.5 | ) | $ | 16.2 | $ | 19.2 | $ | 85.9 | |||||||
| Add back | ||||||||||||||||
| Captive insurance liability | $ | 45.1 | $ | 0.0 | $ | 45.1 | $ | 0.0 | ||||||||
| Income tax effect of adjustment | $ | (10.5 | ) | 0.0 | $ | (10.5 | ) | $ | 0.0 | |||||||
| Non-GAAP net income attributable to | $ | 10.0 | $ | 16.2 | $ | 53.7 | $ | 85.9 | ||||||||
| Diluted earnings per share | $ | (0.90 | ) | $ | 0.59 | $ | 0.74 | $ | 3.26 | |||||||
| Total adjustments | $ | 1.26 | $ | 0.00 | $ | 1.33 | $ | 0.00 | ||||||||
| Non-GAAP diluted earnings per share | $ | 0.36 | $ | 0.59 | $ | 2.07 | $ | 3.26 | ||||||||
| Weighted average number of shares used in the calculation of diluted earnings per share | 27.4 | 26.4 | 26.1 | 26.4 | ||||||||||||
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