Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (May 2019)
19 slides from Genie Energy's investor presentation, May 14, 2019
Slide 1: Investor Presentation May 2019
Investor Presentation May 2019 Genie Energy Ltd (NYSE: GNE)
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 This presentation contains forward - looking statements. Statements that are not historical facts are forward - looking statements and such forward - looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act
Slide 3: Genie Energy at a Glance
Genie Energy Class B Common Stock Symbol NYSE: GNE Stock Price 1 $9.40 Shares Outstanding 2 27.1 million Dividend Yield 1 3.2% Market Capitalization 1 $232 million Genie Energy Series 2012-A Preferred Stock Symbol NYSE: GNEPRA Stock Price 1 $8.22 Shares Outstanding 2 2.3 million Dividend Yield 1 7.8
Slide 4: Investment Thesis
Investment Thesis Successfully restructured operations to focus on growth within Retail Energy and Energy Services businesses Strategic Transition • Legacy oil and gas exploration operations have been substantially reduced Genie Energy is expanding domestic and international operations Strong G rowt
Slide 5: Retail Energy - Domestic Overview
Genie Retail Energy - Domestic Overview Genie Retail Energy operates a leading portfolio of domestic retail energy providers (REP s ) • Launched in 2004. • Now among the largest independent residential REPs • Domestic operations in 14 states and D.C. • History of strong financial performance 5
Slide 6: Retail Energy – Domestic Overview: Value proposition
Genie Retail Energy – Domestic Overview Value proposition ● Customers: Power of choice, value added services and potential savings ● Utilities: Removes load - based risk while generating fees from services 6 Managed - risk model ● Many utilities offer purchase of receivables programs – reducing cred
Slide 7: Retail Value Chain
Retail Value Chain Customer Acquisition Model Value Creation Long - term, Valuable Customers ● Multiple sales channels across multiple regions ● Diverse product offerings ● Deep data analysis to identify market opportunities and optimize offerings ● Hedging strategies reduce commodity volatility ● W
Slide 8: Retail Energy – Domestic Markets
Genie Retail Energy – Domestic Markets 8
Slide 9: Texas Market Launch
Texas Market Launch License Granted in 4Q18, market launch 2Q19 Large, diverse addressable market: • 6.2 million residential customers • 1.1 million commercial • 4.3 thousand industrial Robust innovative marketplace: • ERCOT handles 90% of state's electric load • Mandatory switch - 92% of customers
Slide 10: Domestic Customer Portfolio
Domestic Customer Portfolio* 10 * Domestic r esidential c ustomer equivalents (RCEs) at March 31, 2019
Slide 11: Powerful Brands
| Powerful Brands SOUTHERN ! FEDERAL s A Texas Power Supply Co. Repent MA MIRABITO | natural gas — - | z TownsQquoare’ @ energy S
Slide 12: International
Genie International ● Acquired Lumo Energia in January 2019 ● TAM: 3.4 million meters in Finland ● Platform to address broader, +12 million meter Scandinavian market ● Date entered: December 2017 ● Electricity and natural gas ● TAM: 50 million meters 12 Finland Great Britain Japan ● Launched in 1Q19
Slide 13: Meters and RCEs – Global Commentary
13 Commentary ● 2015 - 2016 : Strong electric meter, RCE growth through domestic expansion ● 2016 : Acquired domestic REP Town Square Energy in Q4 ● 2017 : Organic RCE growth ● 2018 : Reduced investment and regulatory compliance accelerate attrition ● Q1 2019: Domestic and international growth inclu
Slide 14: Retail Energy Services
Genie Retail Energy Services 14 ● Prism Solar Technologies – US designer and manufacturer of solar systems featuring innovative bifacial solar modules ● Genie Solar Energy - End to end solar solutions from initial project design though installation ● Diversegy – Energy brokerage, efficiency consulti
Slide 15: Energy – Consolidated Results
Genie Energy – Consolidated Results 15 * TTM – Trailing twelve months ended March 31, 2019 (in millions of USD) 1Q18 2Q18 3Q18 4Q18 1Q19 2018 TTM* Revenue $89.3 $56.4 $71.8 $62.8 $86.6 $280.3 $277.7 Gross Profit 24.5 16.1 21.3 14.7 25.6 76.5 77.7 SG&A 17.1 15.4 13.9 15.2 15.7 61.5 60.2 Impairments -
Slide 16: Why Own Genie Energy?
Why Own Genie Energy? 16 Special Situation Investors ● Successful transition to ward a pure - play retail energy provider model while curtailing oil and gas (O&G) exploration program ● Reduced O&G exploration expense positively impact ing Adjusted EBITDA* and cash flows in 2018 - 2019 ● Public compa
Slide 17: Non-GAAP Financial Measures
In addition to including financial results that are determined in accordance with generally accepted accounting principles in th e United States of America (GAAP), Genie Energy’s investor presentation included Adjusted EBITDA, which is a non - GAAP financial measure. Generally, a non - GAAP financia
Slide 18: Reconciliation of Non-GAAP Financials
Reconciliation of Non - GAAP Financials 18 * TTM – Trailing twelve months ended March 31, 2019 (in millions of USD) 1Q18 2Q18 3Q18 4Q18 1Q19 2018 TTM* Adjusted EBITDA 8.6$ 1.8$ 8.0$ (0.6)$ 10.4$ 17.9$ 19.7$ Subtract: Depreciation and amortization 0.6 0.6 0.5 0.4 0.9 2.1 2.4 Impairment 0.0 2.3 0.5 0.
Slide 19: Michael Stein, CEO and Avi Goldin, CFO
Michael Stein Chief Executive Officer Avi Goldin Chief Financial Officer