Genie Energy Ltd. Q1 FY2024 earnings call

• Reported solid quarter with record first quarter revenue and gross profit.
• Repurchased 250,000 shares of common stock, trading well below fair value.
• At GRE, ended first quarter with 365,000 customers (up about 5%) and 348,000 RCEs (down about 1%) over prior year.
• Diversegy had very strong quarter within GREW.
• Genie Solar advanced several third-party-owned commercial projects into construction phase, driving significant increase in segment revenue, gross profit, and adjusted EBITDA year-over-year.
• Advanced Genie-owned solar projects in development and added new projects to pipeline, with movement in and out of pipeline not uncommon for early-stage solar opportunities.
• Confident investments to enhance team and upgrade operational capabilities will help grow and optimize pipeline.
• Solar project development strategy is long-term value driver, taking years from site right acquisitions to operations, but pursuing projects with robust ROI projections for growing recurring revenue.
• On track to deliver $40 million to $50 million in company-wide consolidated adjusted EBITDA for 2024, a significant increase from pre-2022 normalized range.
• Upgraded expectations reflect expanded customer base at GRE, pivot away from international retail, and focus on enhancing analytical and operational capabilities.
• Remain opportunistic with respect to potential new retail customer acquisitions, organic and inorganic.
• GREW to continue toward completion of Perry and Lansing solar farms in New York.
• Upgraded project development team to further expand pipeline and move viable projects through development process more quickly.
• Diversegy's revenue grew for 10th straight quarter, and gross profit reached highest level ever for fourth consecutive quarter, contributing to enhanced growth and profitability.

For GRE, first quarter revenue increased by 11% to $112 million from $101 million a year ago. The increase was driven by meter base growth and increased consumption per meter. GRE's gross profit in the first quarter decreased 1.1% to $32.2 million, with an overall decline in gross margin to 28.6% from 32.1%. At the Renewables segment, first quarter revenue increased by 87% to $7.2 million from $3.9 million, driven by Genie Solar and Diversegy. Genie Renewables' first quarter gross profit more than doubled to $1.6 million from $747,000.

• Expect to deliver $40 million to $50 million in company-wide consolidated adjusted EBITDA for 2024, a significant increase from pre-2022 normalized range of $25 million to $30 million.
• Remain opportunistic with respect to potential new retail customer acquisitions, both organic and inorganic.
• GREW will continue to move toward completion of Perry and Lansing solar farms in New York.
• Upgraded project development team will further expand pipeline and move the viable projects through development process more quickly.

• Forward-looking statements made during the call are subject to risks and uncertainties that may cause actual results to differ materially from those statements.
• Risks and uncertainties include those discussed in the reports filed periodically with the SEC, which may cause actual results to differ materially from forecasted ones.

Q: A: Q: A: Operator: [Operator Instructions] There are no questions in queue. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.