Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (March 2018)
16 slides from Genie Energy's investor presentation, Mar 27, 2018
Slide 1: Genie Energy Ltd Investor Presentation March 2018
Genie Energy Ltd (NYSE: GNE) Investor Presentation March 2018
Slide 2: Safe Harbor Statement
2 2 Safe Harbor Statement 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 Ac
Slide 3: Genie Energy: At a Glance
3 3 Genie Energy: At a Glance 3 Genie Retail Energy Domestic Genie Retail Energy International Genie Energy Ltd. (NYSE:GNE) Genie Retail Energy Genie Energy Common Stock Symbol NYSE: GNE Stock Price* $4.90 Shares Outstanding 24.9 million Dividend Yield 6.1% Market Capitalization $123 million Genie E
Slide 4: Investment Thesis
4 4 Investment Thesis 4 • Strategic Transition: Genie Energy is transitioning to a pure play retail energy supplier after suspending its oil and gas exploration program, positioning it for significant improvement in profitability and increased cash - flow • Genie Energy incurred $4.9 million in oil
Slide 5: Genie Retail Energy Overview
5 Genie Retail Energy is a leading retail energy provider (REP) • Founded in 2004, now among the largest independent residential REPs • Operations in 13 US states and Great Britain • History of strong and consistent financial performance Value proposition • Customers: Power of choice, value added se
Slide 6: Meter and RCE Performance
6 6 Meter and RCE Performance METERS RESIDENTIAL CUSTOMER EQUIVALENTS (RCEs) COMMENTARY • 2014: First half Polar Vortex increases churn. Second half stabilization • 2015 - 2016: Strong sequential electric meter, RCE growth and new territories • 2016: Acquired Town Square Energy in fourth quarter • 2
Slide 7: Customer Acquisition Model
7 Customer Acquisition Model • Multiple sales channels across multiple regions • Diverse product offerings • Deep data analysis to identify market opportunities and optimize product offerings Value Creation • Robust risk management to ensure stable profitability • Winback and customer retention stra
Slide 8: M&A Highlights
8 8 M&A Highlights 8 • Date: November 2016 • Price: $9.6 million plus working capital • Opened four new states to Genie’s customer acquisition engine • Differentiated customer acquisition model and respected brand helped to increase Town Square Energy RCEs from 47,000 at purchase to 67,400 * **As of
Slide 9: Customer Portfolio
9 9 Customer Portfolio RESIDENTIAL CUSTOMER EQUIVALENTS (RCEs) as of 12/30/17 9
Slide 10: Markets
10 10 Genie Retail Energy Markets 10
Slide 11: GRE Results of Operations
11 11 GRE Results of Operations 11 COMMENTARY • Strong financial performance through wholesale commodity price fluctuations • All customer acquisition and marketing costs expensed in the period incurred • De minimis CAPEX and D&A expense • Seasonality: Q2 and Q4 shoulder periods between peak heating
Slide 12: Why Own Genie Energy?
12 12 Why Own Genie Energy? Special Situation Investors: • Moving toward pure play retail energy provider model after suspension of oil and gas (O&G) exploration program • Reduced O&G exploration expense will positively impact Adjusted EBITDA and cash flows in 2018 • Well - established public compan
Slide 13: Genie Energy P&L
13 13 Genie Energy P&L 13 (USD in millions) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2015 2016 2017 Revenue $75.2 $40.3 $53.0 $44.6 $58.9 $44.6 $57.2 $51.5 $71.4 $50.2 $69.5 $73.1 $213.1 $212.1 $264.2 Gross Profit 16.5 13.4 21.2 15.5 24.0 18.1 20.2 14.6 24.8 12.1 21.8 26.8 66.6 76
Slide 14: Reconciliation of Non-GAAP Financials
Reconciliation of Non - GAAP Financials Reconciliation of 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
Slide 15: Reconciliation of Non-GAAP Financials
Reconciliation of Non - GAAP Financials 15 Genie Energy (NYSE: GNE) Genie Energy (in thousands) TTM EBITDA $7,296 Subtract (add): Depreciation and amortization $2,140 Impairment --- Other Losses (Gains) --- Stock-based Compensation $5,213 Income (loss) from operations ($57) Genie Retail Energy - Res
Slide 16: Avi Goldin, Chief Financial Officer
Avi Goldin Chief Financial Officer agoldin@genie.com