Genie Energy Ltd. · NYSE:GNE
Genie Energy — Investor Presentation (September 2018)
18 slides from Genie Energy's investor presentation, Sep 6, 2018
Slide 1: Genie Energy Ltd (NYSE: GNE) Investor Presentation September 2018
Genie Energy Ltd (NYSE: GNE) Investor Presentation September 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 Services Genie Energy Ltd. (NYSE: GNE) (NYSE: GNEPRA) Genie Retail Energy Genie Retail Energy International Genie Energy Class B Common Stock Symbol NYSE: GNE Stock Price 1 $5.33 Shares Outstanding 2 25.0 million Dividend Yield 1 5.6% Market Capita
Slide 4: Investment Thesis
4 4 Investment Thesis 4 • Strategic Transition: Genie Energy has successfully restructured its operations to focus on growth within the Retail Energy business • Legacy O&G technology operations have been sold or reduced, final test in permitting stage • Strong growth in core business: Genie Retail E
Slide 5: Genie Retail Energy - Overview
5 Genie Retail Energy controls a leading portfolio of retail energy providers (REP) • Entered the REP industry in 2004, now among the largest independent residential REPs • Operations in deregulated markets across 13 U.S. states and the district of Columbia • History of strong financial performance
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: Retail Value Chain: 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 • Hedging strategies reduce commodity volatility • Winback and customer retention strategies
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 D
Slide 9: Customer Portfolio
9 9 Customer Portfolio RESIDENTIAL CUSTOMER EQUIVALENTS (RCEs) as of 6/30/18 9
Slide 10: Genie Retail Energy 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: Genie Retail International
12 12 Genie Retail International 12 • Acquired 65% position in July 2017 • Greenfield operation that exited controlled market entry in 4/18 • Expanding sales and marketing operation poised for significant growth • Attractive market potential: • Meters – 27M households ; dual elec/gas potential • Mar
Slide 13: Genie Retail Energy Services
13 13 Genie Retail Energy Services GRES markets a full suite of energy solutions to business customers with an expanding portfolio of products: • Diversegy – Energy brokerage, efficiency consulting and LED installation • Genie Solar Energy - End to end solar solutions from initial project design tho
Slide 14: Why Own Genie Energy?
14 14 Why Own Genie Energy? Special Situation Investors: • Successful transition to a pure - play retail energy provider model while curtailing oil and gas (O&G) exploration program • Reduced O&G exploration expense will positively impact Adjusted EBITDA and cash flows in 2018 • Well - established p
Slide 15: Genie Energy P&L By Line of Business
15 15 Genie Energy P&L By Line of Business 15 Genie Retail and Corporate Overhead (USD in millions) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 2016 2017 TTM* Revenue $58.9 $44.6 $57.2 $51.5 $71.4 $50.2 $69.5 $73.1 $89.3 $56.4 $212.1 $264.2 $288.3 Gross profit 24.0 18.1 20.2 14.6 24.8 12.1 21.
Slide 16: 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 A
Slide 17: Reconciliation of Non-GAAP Financials
Reconciliation of Non - GAAP Financials 17 Genie Energy (NYSE: GNE) Genie Energy (in thousands) TTM EBITDA $22,632 Subtract (add): Depreciation and amortization $2,283 Impairment --- Other Losses (Gains) --- Stock-based Compensation $5,437 Income (loss) from operations $14,912 Genie Retail Energy -
Slide 18: Michael Stein CEO, Avi Goldin CFO
Michael Stein Chief Executive Officer Avi Goldin Chief Financial Officer
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