Genie Energy Announces 2nd Quarter Results.

NEWARK, N.J: Genie Energy, Ltd. ( NYSE: GNE, GNEPRA), a leading retail energy and renewable energy solutions provider, today announced results for its second quarter ended June 30, 2022.

"The drivers of our record first quarter results carried over into the second quarter, leading to very strong profitability metrics despite the second quarter's traditional weakness in the US," said Michael Stein, chief executive officer. "Overall, given the continued market uncertainty, we employed a conservative customer acquisition and retention strategy in our US and international retail operations, allowing us to deliver strong profitability. Our international results were impacted by a mark-to-market increase in the value of our hedge book. Finally, we complemented our strong operational performance by returning $8.8 million in capital to shareholders via repurchases of common and preferred stock and payments of our regular quarterly common and preferred stock dividends."

Second Quarter 2022 Highlights (versus 2Q21 unless otherwise noted)

Revenue decreased 1.8% to $75.0 million;

Gross profit increased 218.2% to $67.5 million, and gross margin increased to 89.9% from 27.8%, due in large part to gains related to the international forward hedge book;

Income from operations increased to $48.5 million from 4.5 million;

Adjusted EBITDA1 increased to $49.1 million from $5.5 million;

GRE generated income from operations and Adjusted EBITDA of $14.4 million and $14.7 million, compared to $5.5 million and $5.8 million, respectively;

Net income attributable to GNE common stockholders increased to $33.9 million, and diluted income per share (EPS) increased to $1.30, compared to a $5.0 million and $0.19, respectively;

Declared a $0.075 quarterly dividend for class A and B common stockholders;

Repurchased 639,000 shares of Class B common stock and redeemed $2 million of preferred stock.

Select Financial Metrics: 2022 versus 2021 as of 6/30/22*

(in $M except for EPS)

2Q22

2Q21

Change

YTD 2022

YTD 2021

Change

Total Revenue

$75.0

$76.4

(1.8 %)

$173.6

$183.9

(5.6 %)

Genie Retail - US (GRE)

$63.2

$67.0

(5.7 %)

$147.0

$157.6

(6.7 %)

Electricity

$53.1

$61.9

(14.3 %)

$112.4

$135.3

(16.9 %)

Natural Gas

$10.1

$5.1

98.7 %

$34.6

$22.4

54.7 %

Genie Retail - International (GREI)**

$8.1

$7.1

14.6 %

$20.7

$21.4

(3.3 %)

Electricity

$7.8

$6.8

14.5 %

$20.2

$21.0

(4.0 %)

Other

$0.3

$0.3

16.8 %

$0.5

$0.4

35.1 %

Genie Renewables

$3.8

$2.3

61.2 %

$5.8

$4.8

20.5 %

Gross Margin

89.9 %

27.8 %

6,217bps

65.1 %

18.4 %

4,670bps

Genie Retail - US (GRE)

45.9 %

27.4 %

1,857bps

51.4 %

21.1 %

3,029bps

Genie Retail - International (GREI)

465.7 %

27.9 %

4,3780bps

174.4 %

-6.8 %

18,128bps

Genie Renewables

21.6 %

39.4 %

(1,774)bps

23.0 %

42.2 %

(1,918)bps

Income (Loss) from Operations

$48.5

$4.5

968.7 %

$72.9

($0.9)

nm

Operating Margin

64.6 %

5.9 %

5867bps

42.0 %

-0.5 %

4251bps

Net Loss Attributable to

Discontinued Operations

--

($3.2)

nm

--

($4.3)

nm

Net Income Attributable to

GNE Common Stockholders

$33.9

$5.0

577.5 %

$51.4

$2.6

1845.2 %

Diluted Earnings Per Share

$1.30

$0.19

584.2 %

$1.97

$0.10

1870.0 %

Adjusted EBITDA1

$49.1

$5.5

798.2 %

$74.8

$1.1

6823.9 %

Cash Flow from (used in)

Continuing Operating

Activities

$9.2

$3.7

149.2 %

$27.6

($2.0)

NM

nm = not measurable/meaningful

*Numbers may not add due to rounding

** Orbit UK has been classified as a discontinued operation and its results excluded from current and historical results

Select Business Metrics: 2022 versus 2021 (as of quarters ended on June 30)**

Units in 1000s

2Q22

2Q21

Change

Retail Performance Metrics:

Retail Customer Equivalents (RCE)

303

384

(21.3 %)

Genie Retail - US (GRE)

262

330

(20.4 %)

Electricity

185

272

(31.7 %)

Natural Gas

77

58

32.2 %

Genie Retail - International (GREI)

40

55

(26.7 %)

Electricity

40

55

(26.7 %)

Natural Gas

---

---

nm

Meters in 1000s units

342

434

(21.4 %)

Genie Retail - US (GRE)

280

361

(22.4 %)

Electricity

203

292

(30.3 %)

Natural Gas

77

69

10.8 %

Genie Retail - International (GREI)

62

74

(16.2 %)

Electricity

62

74

(16.2 %)

Natural Gas

---

---

nm

GRE Average Monthly Churn - Meters

Gross Sales

34

35

(2.8 %)

Churn

4.4 %

3.8 %

66bps

** Orbit UK has been classified as a discontinued operation and its results excluded from current and historical results

1 Adjusted EBITDA for all periods presented is a non-GAAP measure intended to provide useful information that supplements the core operating results in accordance with GAAP of Genie Energy or the relevant segment. Please refer to the Reconciliation of Non-GAAP Financial Measure at the end of this release for an explanation of Adjusted EBITDA, as well as reconciliations to its most directly comparable GAAP measure.

Segment Highlights

GRE

GRE delivered record second quarter levels of gross profit, income from operations and Adjusted...