Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (December 2019)
19 slides from Genie Energy's investor presentation, Dec 11, 2019
Slide 1: Investor Presentation December 2019
Investor Presentation December 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 $8.27 Shares Outstanding 2 26.8 million Dividend Yield 1 3.6% Market Capitalization 1 $220 million Genie Energy Series 2012-A Preferred Stock Symbol NYSE: GNEPRA Stock Price 1 $8.84 Shares Outstanding 2 2.3 million Dividend Yield 1 7.2
Slide 4: Investment Thesis
Investment Thesis R estructured operations delivering strong financial performance Powerful Financial Performance • Core domestic retail operations delivering strong results • Legacy oil and gas exploration operations have been substantially reduced Genie Energy is expanding domestic and internation
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 ris
Slide 8: Retail Energy – Domestic Markets
Genie Retail Energy – Domestic Markets 8
Slide 9: Texas Market
Texas Market Launched in 2Q19 Large, diverse addressable market: • 6.2 million residential customers • 1.1 million commercial • 4,300 industrial Robust innovative marketplace: • ERCOT handles 90% of state's electric load • Market mandated choice – all customer are serviced by an REP • Active custome
Slide 10: Domestic Customer Portfolio
Domestic Customer Portfolio* 10 * Domestic r esidential c ustomer equivalents (RCEs) at September 30 , 2019
Slide 11: Powerful Brands
| Powerful Brands Gjayg SOUTHERN FEDERAL (5 A Texas Power Supply Co. RESIDENTS 7 ened! ai 7 pha Se OwnsQuare @
Slide 12: International
Genie International ● Acquired Lumo Energia in 1Q19 ● TAM: 3.4 million meters in Finland ● Platform to address, 12+ million meter Scandinavian market ● Date entered: 4Q17 ● Electricity and natural gas ● Addressable Market: 50 million meters 12 Finland Great Britain Japan ● Launched in 1Q19 ● TAM: 83
Slide 13: Meters and RCEs – Global
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 ● 2019: Domestic and international growth with shi
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 September 30, 2019 (in millions of USD) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 2018 TTM* Revenue $89.3 $56.4 $71.8 $62.8 $86.6 $61.0 $85.7 $280.3 $296.1 Gross Profit 24.5 16.1 21.3 14.7 25.6 9.0 26.4 76.5 75.7 SG&A 17.1 15.4 13.
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 ● Strong 3Q performance signaling strength of business model following weak 2Q ● Public companies in retail energy provider space facilitate valuation Income Investors ● At
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 September 30, 2019 (in millions of USD) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 2018 TTM* Income from operations $7.1 $(1.6) $6.9 $(0.5) $9.8 $(9.3) $6.9 $12.0 $7.0 Add: Stock-based compensation 1.3 1.3 1.1 0.8 0.4 0.3 0.3 4.
Slide 19: Michael Stein, CEO; Avi Goldin, CFO
Michael Stein Chief Executive Officer Avi Goldin Chief Financial Officer