Genie Energy Ltd (GNE) Reports Record Quarterly Revenue of $125 Million in Q3 2023, a 54% YoY ...
Genie Energy Ltd (NYSE:GNE) reported a 54% YoY increase in revenue to a record $125 million in Q3 2023.
Adjusted EBITDA guidance for 2023 has been increased to $52-$57 million, up from the previous guidance of $47-$55 million.
Year-over-year RCE and meter growth were reported at 49% and 42% respectively.
Net income and EPS attributable to Genie common stockholders included a loss from discontinued operations of $0.3 million, or $0.01, compared to a loss of $3.9 million or $0.15.
Genie Energy Ltd (NYSE:GNE), a leading retail energy and renewable energy solutions provider, announced its Q3 2023 results on November 6, 2023. The company reported a record quarterly revenue of $125 million, marking a 54% increase year-over-year. The company's Adjusted EBITDA guidance for 2023 has been raised to $52-$57 million, up from the previous guidance of $47-$55 million.
Financial Performance
Genie Energy reported a net income of $14.5 million from continuing operations, a decrease of 16.8% compared to the same period last year. The company's cash, restricted cash, and marketable equity securities increased to $143.8 million at the end of September 2023, up from $115.1 million at the end of June 2023.
Genie Energy's Retail Energy division reported a 50.5% increase in revenue to $120.3 million, driven by strong customer acquisitions during the first half of 2023. However, income from operations decreased by 19.7% to $22.0 million, reflecting the division's elevated gross margins in the year-ago quarter.
Genie Renewables reported a significant increase in third-quarter revenue year-over-year, driven by growth at Genie Solar, Diversegy, and CityCom Solar. However, a reduction in the value of solar panels held in inventory at Genie Solar due to delayed in-project timelines impacted the division's results.
Balance Sheet and Cash Flow Highlights
As of September 30, 2023, Genie Energy reported cash, restricted cash, and marketable equity securities of $143.8 million, an increase from $115.1 million at June 30, 2023. Total assets as of September 30, 2023 were $315.7 million. Liabilities totaled $108.3 million, and working capital (current assets less current liabilities) totaled $164.5 million. Non-current liabilities were $2.5 million.
Net cash provided by operating activities was $28.0 million compared to $22.5 million a year ago.
Looking Ahead
Genie Energy's management remains optimistic about the company's performance and has increased its Adjusted EBITDA guidance for 2023 to $52-$57 million. The company continues to expand its solar project development pipeline and is evaluating additional candidates for its solar project pipeline while advancing the current portfolio through the development cycle.
Explore the complete 8-K earnings release (here) from Genie Energy Ltd for further details.
This article first appeared on GuruFocus.
