Genie Energy Ltd. Q4 FY2024 earnings call

Management Statement and Operational Highlights

• GRE finished 2024 with a solid fourth quarter, adding 23,000 net new meters in Q4 and over 60,000 during the full year, a nearly 17% increase. Despite mild weather impact on consumption, electricity margins in Q4 were above historical seasonal average.
• GREW made tremendous progress in 2024. Gross profit increased over 120% vs 2023, surpassing $6 million. Diversegy's revenue increased 70% and GP by 130% in 2024. Roded, an environmental tech recycling business, started generating first revenues.
• Genie Solar completed strategic migration to utility scale project vertical. Closed first solar financing deal in Q4, returning ~$7 million in cash. Expect to complete construction on initial community solar project in 2025 and begin construction on 2-3 more, while advancing early stage portfolio and seeking acquisitions.

Segment Performance

• GRE (Retail Energy):
  • Fourth quarter: Revenue unchanged at $98.4 million. Electricity revenue $82.1 million, contributing 83.5% of GRE's revenues. Gas revenue increased 7.5% to $16.2 million.
  • Full year: Revenue $403.3 million, down 1.6% from 2023. Electricity sales, which generated 87% of GRE's 2024 revenue, were flat due to lower revenue per kilowatt hour sold offset by gas revenue growth.
• GREW (Renewables):
  • Fourth quarter: Revenue decreased 30.1% to $4.5 million. Gross profit increased 38% year-over-year to $1.5 million, achieving a gross profit margin of 33.9%.
  • Full year: Revenue jumped 16.1% to $21.9 million. Gross profit improved, driven by strong results of Diversegy and contributions from operating solar projects at Genie Solar.

Guidance

• Consolidated annual adjusted EBITDA guidance for 2025 remains at $40 million to $50 million.
• Expect to continue building cash reserves, opportunistically buyback stock while paying current dividend, and invest in growth at new and established businesses.

Risks

• Forward-looking statements made during the call are subject to risks and uncertainties discussed in Genie Energy's SEC filings, which may cause actual results to differ materially from anticipations.

Q: A: Q: A: Operator: Certainly. We will now begin the question-and-answer session. [Operator Instructions] As there are no questions, this concludes our question-and-answer session and conference call. Thank you for attending today's presentation. You may now disconnect. End of Q&A: