Genie Energy Ltd. Q2 FY2024 earnings call

Management Statement and Operational Highlights:

• Increased cash, cash equivalent, and restricted cash balance to $178 million, paid regular quarterly dividend, and repurchased approximately 170,000 shares of common stock.
• At GRE, customer and RCE counts were relatively flat to Q1 but down from year ago.
• Diversegy had over 50% revenue growth, with diversity revenue growing for 11th straight quarter and record gross profit for 5th consecutive quarter.
• Genie Solar had first full quarter of revenue from operating solar farms.
• Confident in investments to enhance team and operational capabilities to grow and optimize pipeline and move projects through faster.
• On track to deliver $40 million to $50 million in consolidated adjusted EBITDA for 2024.
• Expect significant customer increase at GRE late in Q3 with new aggregation deal.
• Expect diversity to contribute to enhanced growth and profitability in coming years.

Segment Performance:

• GRE: Ended Q2 with 362,000 customers and 345,000 RCEs. Revenue was $86.7 million, which is 95.6% of consolidated revenue ($90.7 million). Gross profit was $32.7 million with a gross margin of 37.2%.
• Diversegy: Had over 50% revenue growth for another strong quarter.
• Genie Solar: Recognized first full quarter of revenue from operating solar farms. Pipeline: Subtracted a net 15 megawatts but potential projects remained the same, with 10 megawatts in permitting phase. Progress on two New York state projects with two passing seizure studies and moving into permitting stage.

Guidance:

• Remain on track to deliver $40 million to $50 million in consolidated adjusted EBITDA for 2024, a significant increase from pre-2022 normalized range.
• Expect to be opportunistic with potential new retail customer acquisitions.
• Expect diversity business to continue performing well.

Risks:

• Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those statements. These include risks discussed in reports filed periodically with the SEC.

Q: A: Q: A: