Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (December 2022)
28 slides from Genie Energy's investor presentation, Dec 8, 2022
Slide 1: Investor Presentation December 2022
Investor Presentation December 2022 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 Highlights
3 Genie Energy Highlights HQ Newark, NJ Key Leadership: CEO Michael Stein CFO Avi Goldin Chairman Howard Jonas Lead Independent Dir. Wesley Perry Employees ~150 Tickers (NYSE) GNE, GNEPRA *as of 9/30/22 ** includes $10.3M in preferred stock $303M Revenue 47.4% GM $72M Adj. EBITDA ~3.0% Dividend Yiel
Slide 4: Genie Energy at a Glance
4 Genie Energy at a Glance Genie is a leading domestic retail energy provider (REP) & emerging owner/developer of solar generation projects Genie Energy Ltd. Genie Retail Energy (GRE) Genie Renewables (GREW)
Slide 5: The Foundation
5 The Foundation Largest shareholder group has a consistent track record of building businesses & creating significant value for shareholders Company Market Value @9/14/09 Most Recent Market Value * Genie Energy (NYSE: GNE) 10/28/11 (Spin - off) $272M IDT Corp (NYSE: IDT) $53M $758M IDW Media (NYSE
Slide 6: Investment Thesis
Investment Thesis 6 Proven cash generation from GRE through diverse commodity & economic market environments Core GRE profit growth + emerging growth optionality in renewables Portfolio & customer management drives enhanced FCF for growth investments & shareholder value creation strategies Strong, d
Slide 7: Genie's Growth Strategy
Genie’s Growth Strategy 7 Expand U.S. retail operations to spur organic growth Grow vertically integrated solar & renewables solutions businesses Identify new markets for expansion I ntroduce new products into existing, successful marketing channels
Slide 8: Genie Retail Energy (GRE)
GENIE RETAIL ENERGY (GRE)
Slide 9: GRE: US Market Opportunity & Dynamics
GRE: US Market Opportunity & Dynamics 9 Competition Incumbent utility & other REPs 28 Deregulated Markets (State x State regulatory structure) Role of Utilities Distribution & Billing (most markets)
Slide 10: GRE Value Creation
GRE Value Creation Multiple sales channels to residential & small commercial Diverse portfolio of products highlighted by green energy, variable & fixed rate plans Deep data analysis to identify market opportunities & optimize offerings Hedging strategies reduce commodity volatility risk Utilities a
Slide 11: Hedging Program Provides Portfolio Optionality
Hedging Program Provides Portfolio Optionality » Increased long position heading into the Winter months » Global geo - political & economic circumstances led to volatility & significantly higher commodity prices & customer acquisition costs » GNE strategically paused new customer acquisition & did n
Slide 12: Genie Renewables (GREW)
GENIE RENEWABLES (GREW)
Slide 13: GREW Growth Strategy
GREW Growth Strategy 13 Develop, own & operate commercial, community & utility - scale solar projects Strong balance sheet & access to capital markets provides lower cost of capital vs competition Differentiate through vertical integration Generate near - term revenue/profits through existing busine
Slide 14: Vertical Integration: A Competitive Advantage
Vertical Integration: A Competitive Advantage 14 » Develop, own & operate solar energy projects ranging from 1 to 30mW in size » Originate, design & construction/installation (C&I) of commercial, industrial and utility - scale projects for 3rd parties » Leverages a combination of in - house & outsou
Slide 15: US Solar Market Dynamics
15 Commercial Community Utility - Scale US Solar Market Dynamics >600K Commercial Facilities 8X DOE Est. Gr. thru 2025 ~50% * % of new grid capacity (1H22) 131GW * Installed Capacity 1% Penetration Component Shortages due to global supply chain issues *Solar Energy Industry Association ~4% * % of To
Slide 16: Favorable Regulatory Environment
Favorable Regulatory Environment 16 » Federal ITC (investment tax credit) proposals could open additional opportunities » Increase ITC from 26% to 30% » Potential t ransition from tax credit to cash back (eliminates need for tax liability ) » S till needed for depreciation » Community solar guarante
Slide 17: Financial Summary
FINANCIAL SUMMARY
Slide 18: Genie Energy Pro forma Consolidated Financials
18 Genie Energy Pro forma Consolidated Financials * 25% 30% 35% 40% 45% 50% 55% $0 $50 $100 $150 $200 $250 $300 $350 $400 2019 2020 2021 TTM Revenue Adj. EBITDA Gross Margin $m *Pro forma excluding the impact of Texas Winter Storm Uri, GREI & GoGas operations a/o 9/30/22. Please see reconciliations
Slide 19: GRE Pro forma Financial Highlights
GRE Pro forma Financial Highlights * 19 25% 30% 35% 40% 45% 50% $0 $50 $100 $150 $200 $250 $300 $350 2019 2020 2021 TTM Revenue Adj. EBITDA Gross Margin $m *Pro forma excluding the impact of Texas Winter Storm Uri, GREI & GoGas operations a/ o 9/30/22 . Please see reconciliations in Appendix Key dri
Slide 20: Genie Renewables Financial Highlights
Genie Renewables Financial Highlights * 20 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% -$5 $5 $15 $25 $35 2019 2020 2021 TTM Revenue Adj. EBITDA Gross Margin $m * Please see reconciliations in Appendix 2020 » Sold low margin solar panels 2021 » Refocused the business to focus on services and development l
Slide 21: Capital Allocation
Capital Allocation 21 » Common stock dividend (currently $0.075/quarter) » Common Stock » Preferred Stock Leverage strong B/S for: » Outsize growth potential (e.g. Solar) » Select M&A » Customer acquisition » New markets » New products Internal Reinvestment Corporate Development Dividend Share repur
Slide 22: Genie Energy Summary
Genie Energy Summary 22 Proven cash generation from GRE through diverse commodity & economic market environments Core GRE profit growth + emerging growth optionality in renewables Portfolio management drives enhanced FCF for growth investment & shareholder value creation strategies Strong, debt - fr
Slide 23: Thank You!
THANK YOU! Michael Stein Chief Executive Officer IR Contact: Brian Siegel Senior Managing Director Hayden IR (346) 396 - 8696 brian@haydenir.com Avi Goldin Chief Financial Officer
Slide 24: Pro forma Financials
24 *Pro forma Financials * Pro forma excluding the impact of Texas Winter Storm Uri, GoGas , UK & Japan operations. Please see reconciliations in Appendix $ (000's) 2019 2020 2021 TTM Revenue $298,700 $329,660 $319,340 $303,360 COGS $216,120 $239,140 $215,680 $159,560 Gross Profit $82,570 $90,520 $1
Slide 25: Pro-forma Financials: Genie Retail Energy
25 *Pro - forma Financials * Pro - forma excluding the impact of Texas Winter Storm Uri a/o 12/31/21. Please see reconciliations in Appendix $ (000's) 2019 2020 2021 TTM Revenue Electricity $246,690 $270,890 $273,020 $241,140 Gas $39,930 $33,560 $38,810 $53,690 Total Revenue $286,610 $304,450 $311,8
Slide 26: Reconciliation Tables: Genie Energy Consolidated
26 Reconciliation Tables Slides 3,18,24 – Genie Energy Financials - Consolidated 2019 2020 2021 TTM Consolidated revenue (as reported) $300,100 $338,430 $323,270 $303,360 Less: Revenue of Genie Japan $1,400 $8,770 $3,930 --- Pro forma consolidated revenue $298,700 $329,660 $319,340 $303,360 Consolid
Slide 27: Reconciliation Tables: GRE Financial Highlights
27 Reconciliation Tables Slides 19,25 – GRE Financial Highlights 2019 2020 2021 TTM GRE revenue (as reported) $286,610 $304,450 $311,830 $294,830 GRE gross profit (as reported) $80,620 $88,310 $90,880 $142,260 Less Gross profit (loss) from Winter Storm Uri --- --- ($10,000) --- Pro-forma GRE gross p
Slide 28: Reconciliation Tables: Genie Renewables
28 Reconciliation Tables Slides 20 – Genie Renewables 2019 2020 2021 TTM Income (Loss) from Operations ($2,890) ($2,570) $250 ($2,610) Add Back: Non-Cash Compensation --- --- --- --- Depreciation & Amortization $1,010 $330 $50 $50 Impairment $400 $1,400 --- --- GREW Adjusted EBITDA (as reported) ($1