Genie Energy Ltd. (NYSE:GNE) Q3 2023 Earnings Call Transcript
Genie Energy Ltd. (NYSE:GNE) Q3 2023 Earnings Call Transcript November 6, 2023
Operator: Good morning and welcome to Genie Energy’s third quarter 2023 earnings call. Until the Q&A portion of the call, all participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation by Genie Energy’s management, there will be an opportunity to ask questions. Please note this event is being recorded. I will now turn the call over to Brian Siegel of Hayden IR.
Brian Siegel: Thank you Operator. With me today are Michael Stein, Genie Energy’s CEO, and Avi Goldin, Genie Energy’s CFO, who will discuss operational and financial results. Any forward-looking statements made during this conference call, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those statements. These risks and uncertainties include but are not limited to those discussed in the reports that we file periodically with the SEC. Genie assumes no obligation to update any forward-looking statements that we have made or may make, or to update the factors that may cause actual results to differ materially from those that we forecast. During the remarks, management may make reference to adjusted EBITDA, a non-GAAP measure.
Management believes that its measure of adjusted EBITDA provides useful information to both management and investors that supplement our core operating results. Our earnings release, which is posted in the genie.com IR page, includes a reconciliation of consolidated adjusted EBITDA to its nearest comparable GAAP measures, consolidated net income and income from operations, for all periods presented. In addition, adjusted EBITDA for applicable segments are reconciled in the earnings release, including the respective segments’ income from operations for all periods presented. I will now turn the conference over to Michael Stein, Genie’s Chief Executive Officer.
Michael Stein: Thank you Brian. Welcome to Genie Energy’s third quarter earnings call. Our momentum from the first half of the year continued into Q3 with record quarterly revenues and nearly $19 million in adjusted EBITDA, driven mainly by GRE’s investments in retail customer acquisition since early in the year. Additionally, Genie Renewables, our GREW continued to expand its pipeline of potential projects while moving forward in the construction process with two of its projects. At GRE, we added 60,000 gross new meters in the quarter, up 81% from Q3 of last year; however, we were less aggressive in adding customers compared to the first half of the year and therefore RCE and meters were essentially flat sequentially despite year-over-year growth of 49% and 42% respectively.
Our churn rate was down 30 basis points from last year at 4.4%. While we were not as aggressive as in the first half, we continued to capitalize on pockets of customer acquisition opportunities during the quarter. At GREW, we added two projects comprising 9 megawatts to our development pipeline during the quarter, while continuing to build out the two New York projects under construction. As a result of our strong performance year to date and overall 2023 outlook, we are increasing our previous consolidated adjusted EBITDA guidance range of $47 million to $55 million to $52 million to $57 million. This range increase reflects our strong third quarter and continued optimism about the business as we head into the winter. Remember, these results also represent a significant increase from our pre-2022 normalized EBITDA range of $25 million to $30 million, and these are consolidated figures even after allowing for our continued investment in GREW.
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