Genie Energy Ltd
For the period ended Jun 30, 2024. Filed Aug 8, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 8, 2024
GNE$17.72+6.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-09.
0001213900-24-041190
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0001213900-24-066525
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 112 previous paragraphs and 120 current paragraphs.
59 unchanged; 53 reworded; 7 added; 0 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Revenues. Electricity revenues decreased by 2.4% in the three months ended June 30, 2024 compared to the same period in 2023. The decrease was due to a decline in the average price per kilowatt hour charged to customers in the three months ended June 30, 2024 compared to the same period in 2023. Electricity consumption by GRE’s REPs' customers slightly decreased by 0.1% in thethree months ended June 30, 2024, compared to the same period in 2023, reflectinga 3.8% decrease in the average number of meters served, substantially offset by a 3.9% increasein average consumption per meter. The decrease in meters served was due to reduced level of the customer acquisitions in thethree months ended June 30, 2024 compared to the same period in 2023. The increase in per meter consumption in thethree months ended June 30, 2024 compared to the same period in 2023 was due to standard fluctuations in customer consumption patterns. The average rate per kilowatt hour sold decreased 2.3% in the three months ended June 30, 2024 compared to the same period in 2023 due to general market conditions.
Current report
GRE’s natural gas revenues decreased by 14.2% in thesix months ended June 30, 2024 compared to the same period in 2023. The decrease in natural gas revenues in thesix months ended June 30, 2024 compared to the same period in 2023 was a result of a decrease in average revenue per therm sold partially offset by an increase in natural gas consumption. Natural gas consumption by GRE’s REPs’ customers increased by 7.1% in thesix months ended June 30, 2024 compared to the same period in 2023, reflecting increases inaverage meters served and average consumption per meter of 6.3% and 0.7%, respectively, in thesix months ended June 30, 2024 compared to the same period in 2023. The increase in meters served was driven by strong customer acquisition efforts during 2023 and continued through 2024. The increase in meters served was due to higher levels of customer acquisitions in thesix months ended June 30, 2024 compared to the same period in 2023. The average revenue pertherm sold decreased by 11.5% in thesix months ended June 30, 2024, compared to the same period in 2023 due general market conditions.
Current report
Cost of revenues for electricity increased in thesix months ended June 30, 2024 compared to the same period in 2023 primarily because of increases in electricity consumption by GRE’s REPs’ customers and the average unit cost of electricity. The average unit cost of electricity increased 9.2% in thesix months ended June 30, 2024 compared to the same period in 2023. The significant increase is due to a rise in the wholesale price of electricity during thesix months ended June 30, 2024 compared to the same period in 2023. Gross margin on electricity sales decreased in thesix months ended June 30, 2024 compared to the same period in 2023 because the average unit cost of electricity increased while the average rate charged to customers decreased. The decrease in gross margin is due to the change in the mix type of customers in the six months ended June 30, 2024 compared to the same periods in 2023.
Current report
Cost of revenues for natural gasincreased in thesix months ended June 30, 2024 compared to the same period in 2023 primarily because of an increase in the average unit cost of natural gas partially offset by a decrease in natural gas consumption by GRE's REPs' customers. The average unit cost of natural gas decreased 38.0% in thesix months ended June 30, 2024 compared to the same period in 2023. The significant decrease is due to a decrease in the wholesale price of electricity during thesix months ended June 30, 2024 compared to the same period in 2023, particularly in the first quarter of 2023. Gross margin on natural gas sales decreased in thesix months ended June 30, 2024 compared to the same period in 2023 because the average rate charged to customers increased less than the increase in the average unit cost of natural gas.
Current report
Selling, general and administrative expenses increased by 1.3% in thesix months ended June 30, 2024 compared to the same period in 2023. The increase in selling, general and administrative expense in thesix months ended June 30, 2024 compared to the same period in 2023 was primarily due to increases POR program fees, processing fees, and employee-related costs partially offset by decreases in marketing and customer acquisition cost and provision for doubtful accounts. POR processing fees increased by $0.5 million in thesix months ended June 30, 2024 compared to the same period in 2023 as a result of changes in rates implemented by several utilities. Processing fees increased by $0.6 million in the six months ended June 30, 2024 compared to the same period in 2023 as a result of an increase in meters with billing fees. Employee-related expenses increased by $0.2 million in thesix months ended June 30, 2024 compared to the same period in 2023 primarily due to an increase in commissions paid to employees. Marketing and customer acquisition expenses decreased by $0.8 million in thesix months ended June 30, 2024 compared to the same period in 2023 as a result of a decrease in the number of meters acquired. Provision for doubtful accounts decreased by $0.2 million in thesix months ended June 30, 2024 compared to the same period in 2023 as a result of a continued increase in collection efforts. As a percentage of GRE’s total revenues, selling, general and administrative expense decreased from 18.4%% in thesix months ended June 30, 2023 to 17.9%% in thesix months ended June 30, 2024.
Current report
Impairment of assets. The impairment of assets recorded in the three andsix months ended June 30, 2024 relates to capitalized cost at Genie Solar related to solar projects that were discontinued in the second quarter of 2024.
Current report
On November 2, 2023, we made a charitable donation to the Genie Energy Charitable Foundation (the "Genie Foundation") by issuing 50,000 shares of Class B common stock from its treasury with value of on the date of the donation of approximately $1.0 million. On April 17, 2024, we repurchased 50,000 shares of Class B common stock from the Genie Foundation for $0.8 million. The Company is the sole member of the Genie Foundation and the Company's Chief Executive Officer and Chief Financial Officer serve as members of the board of directors of the Genie Foundation.
Reworded paragraphs (53)
Previous wording
Genie Solar holds our interest in Sunlight Energy, a solar energy developer and operator and our 60.0% interest in Prism Solar Technology ("Prism")which designs and manufactures specialized solar panels.
Current wording
In addition to being a solar developer and operator, Genie Solar holds our 60.0% interest in Prism Solar Technology ("Prism")which designs and manufactures specialized solar panels.
Previous wording
We determined that the discontinued operations of Lumo Finland and Lumo Sweden represented a strategic shift that would have a major effect on our operations and financial statements. We account for these businesses as discontinued operationsand accordingly, present the results of operations and related cash flows as discontinued operations for all periods presented. Any remaining assets and liabilities of the discontinued operations are presented separately and are reflected within assets and liabilities from discontinued operations in the accompanying consolidated balance sheets as of March 31, 2024 and December 31, 2023. Lumo Finland and Lumo Sweden are continuing to liquidate their remaining receivables and settle any remaining liabilities.
Current wording
We determined that the discontinuance of operations of Lumo Finland and Lumo Sweden represented a strategic shift that would have a major effect on our operations and financial statements. We account for these businesses as discontinued operationsand accordingly, present the results of operations and related cash flows as discontinued operations for all periods presented. Any remaining assets and liabilities of the discontinued operations are presented separately and are reflected within assets and liabilities from discontinued operations in the accompanying consolidated balance sheets as of June 30, 2024 and December 31, 2023. Lumo Sweden are continuing to liquidate its remaining receivables and to settle any remaining liabilities.
Previous wording
On November 7, 2022, Lumo Finland filed a petition for bankruptcy, which was approved by the Helsinki District Court on November 9, 2022. The administration of Lumo Finland was transferred to an administrator (the "Lumo Administrators"). All assets and liabilities of Lumo Finland remain with Lumo Finland, in which we retain our equity ownership interest, however, the management and control of Lumo Finland were transferred to the Lumo Administrators. Since the Company lost control of the management of Lumo Finland in favor of the Lumo Administrators, the accounts of Lumo Finland were deconsolidated effective November 9, 2022.
Current wording
On November 7, 2022, Lumo Finland filed a petition for bankruptcy, which was approved by the Helsinki District Court on November 9, 2022. The administration of Lumo Finland was transferred to the Lumo Administrators. All assets and liabilities of Lumo Finland remain with Lumo Finland, in which we retain our equity ownership interest, however, the management and control of Lumo Finland were transferred to the Lumo Administrators. Since the Company lost control of the management of Lumo Finland in favor of the Lumo Administrators, the accounts of Lumo Finland were deconsolidated effective November 9, 2022.
Previous wording
Net loss from discontinued operations of Lumo Finland and Lumo Sweden, net of taxes was $0.3 million and $0.2 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Net loss from discontinued operations of Lumo Finland and Lumo Sweden, net of taxes was $0.1 million and $0.6 million for the three months ended June 30, 2024 and 2023, respectively. Net loss from discontinued operations of Lumo Finland and Lumo Sweden, net of taxes was $0.4 million and $0.8 million for the six months ended June 30, 2024 and 2023, respectively.
Previous wording
On November 8, 2023, the Lumo Administrators, acting on behalf of the Bankruptcy Estate, filed a claim in the District Court of Helsinki against Genie Nordic, its directors, officers and affiliates, in which it alleges that the gain from the sale of swap instruments owned by Lumo Sweden amounting to €35.2 million (equivalent to $38.0 million as of March 31, 2024) belongs to the Bankruptcy Estate. We believe that the Lumo Administrators' position is without merit, and we intend to vigorously defend our position against the Administrators' claims.
Current wording
On November 8, 2023, the Lumo Administrators, acting on behalf of the Bankruptcy Estate, filed a claim in the District Court of Helsinki against Genie Nordic, its directors, officers and affiliates, in which it alleges that the gain from the sale of swap instruments owned by Lumo Sweden amounting to €35.2 million (equivalent to $37.8 million as of June 30, 2024) belongs to the Bankruptcy Estate. The Bankruptcy Estate filed an additional claim with the District Court on May 27, 2024 against Lumo Sweden for €4.8 million (equivalent to $5.2 million as of June 30, 2024), also alleging that the gain from the sale of the swap instruments belongs to the Bankruptcy Estate, bringing the aggregate sum of claims related to the gain from sale of swap instruments to €40.0 million (equivalent to $43.0 million as of June 30, 2024). The Company believes that the Lumo Administrators' position is without merit, and it intends to vigorously defend its position.
Previous wording
We are also notified that the Lumo Administrators filed a claim against one of Lumo Finland’s suppliers, seeking to recover payments made by Lumo Finland amounting to €4.2 million (equivalent to $4.5 million as of March 31, 2024) prior to the bankruptcy. Related to such payment, the Lumo Administrators have filed a recovery claim jointly against us and the supplier for €1.6 million (equivalent to $1.7 million as of March 31, 2024) alleging that a portion of the payment to Lumo Finland effectively reduced our liability under the terms of a previously supplied parental guarantee(this €1.6 is included within and not additive to the €4.2 million). The Lumo Administrators allege that the payments represented preferential payments and therefore belong to the bankruptcy estate which are recoverable under the laws of Finland. We intend to challenge the Lumo Administrators' claims. Nevertheless, should the Lumo Administrators succeed in clawing back the funds from the supplier, it is possible that the supplier will seek to recover its losses against us, under terms of the parental guarantee. At this time there is insufficient basis to assess an amount of any probable loss
Current wording
We are also notified that the Lumo Administrators filed a claim againstone of Lumo Finland’s suppliers, seeking to recover payments made by Lumo Finland amounting to €4.2 million (equivalent to $4.5 million as of June 30, 2024) prior to the bankruptcy. Related to such payment, the Lumo Administrators have filed a recovery claim jointly against us and the supplier for €1.6 million (equivalent to $1.7 million as of June 30, 2024) alleging that a portion of the payment by Lumo Finland effectively reduced our liability under the terms of a previously supplied parental guarantee(this €1.6 is included within and not additive to the €4.2 million). The Lumo Administrators allege that the payments represented preferential payments and therefore belong to the bankruptcy estate which are recoverable under the laws of Finland. We intend to challenge the Lumo Administrators' claims. Nevertheless, should the Lumo Administrators succeed in clawing back the funds from the supplier, it is possible that the supplier will seek to recover its losses against us, under terms of the parental guarantee. At this time there is insufficient basis to assess an amount of any probable loss.
Previous wording
There wereno income or loss from discontinued operations recognized in the three months ended March 31, 2024. In the three months ended March 31, 2023, the Company recognized income from discontinued operation, net of taxes of $2.9 million mainly from the increase in the estimated value of our investments in Orbit due to a change in estimated net assets of Orbit after the Orbit Administrators settle the liabilities.
Current wording
There wereno income or loss from discontinued operations recognized in thethree and six months ended June 30, 2024. In thethree and six months ended June 30, 2023, the Company recognized income from discontinued operation, net of taxes of $2.6. and $5.4 million, respectively, mainly from the increase in the estimated value of our investments in Orbit due to a change in estimated net assets of Orbit after the Orbit Administrators settle the liabilities.
Previous wording
GRE operates REPs that resell electricity and/or natural gas to residential and small business customers in Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Texas, Rhode Island, and Washington, D.C. GRE’s revenues represented approximately 94.0% and 96.3% of our consolidated revenues in thethree months ended March 31, 2024 and March 31, 2023, respectively.
Current wording
GRE operates REPs that resell electricity and/or natural gas to residential and small business customers in Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Texas, Rhode Island, and Washington, D.C. GRE’s revenues represented approximately 95.6% and 94.7% of our consolidated revenues in thethree and six months ended June 30, 2024, respectivelyand 96.0% and 96.2% of our consolidated revenues in thethree and six months ended June 30, 2023, respectively.
Previous wording
Utility companies offer purchase of receivable, or POR, programs in most of the service territories in which GRE operates. GRE’s REPs reduce their customer credit risk by participating in POR programs for a majority of their receivables. In addition to providing billing and collection services, utility companies purchase those REPs’ receivables and assume all credit risk without recourse to those REPs. GRE’s REPs’ primary credit risk is therefore nonpayment by the utility companies. In thethree months ended March 31, 2024 the associated cost was approximately 1.0% of GRE revenueand approximately 0.9% for thethree months ended March 31, 2023, respectively. At March 31, 2024, 86.7% of GRE’s net accounts receivable were under a POR program. Certain of the utility companies represent significant portions of our consolidated revenues and consolidated gross trade accounts receivable balance during certain periods, and such concentrations increase our risk associated with nonpayment by those utility companies.
Current wording
Utility companies offer purchase of receivable, or POR, programs in most of the service territories in which GRE operates. GRE’s REPs reduce their customer credit risk by participating in POR programs for a majority of their receivables. In addition to providing billing and collection services, utility companies purchase those REPs’ receivables and assume all credit risk without recourse to those REPs. GRE’s REPs’ primary credit risk is therefore nonpayment by the utility companies. In thethree and six months ended June 30, 2024 the associated cost was approximately 1.0% of GRE revenueand approximately 0.9% for thethree months ended June 30, 2023, respectively. At June 30, 2024, 83.8% of GRE’s net accounts receivable were under a POR program. Certain of the utility companies represent significant portions of our consolidated revenues and consolidated gross trade accounts receivable balance during certain periods, and such concentrations increase our risk associated with nonpayment by those utility companies.
Previous wording
Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023
Current wording
Three and Six Months Ended June 30, 2024 Compared to Three and Six Months Ended June 30, 2023
Previous wording
Revenues. Electricity revenues increased by 20.0% in the three months ended March 31, 2024 compared to the same period in 2023. The increase was due to an increase in electricity consumption partially offset by a decrease in the average price per kilowatt hour charged to customers in the three months ended March 31, 2024 compared to the same period in 2023. Electricity consumption by GRE’s REPs' customers increased by 34.0% in thethree months ended March 31, 2024, compared to the same period in 2023, reflectingan 18.4% increase in the average number of meters served and a 13.2% increasein average consumption per meter. The increase in meters served was driven by strong customer acquisitions during 2023 that continued into 2024 which had been curtailed during 2023 due to market conditions. The increase in per meter consumption is due to colder weather in thethree months ended March 31, 2024 compared to the same period in 2022. The average rate per kilowatt hour sold decreased 10.4% in the three months ended March 31, 2024 compared to the same period in 2023 due to the shift in the mix of customers and products sold during the quarters.
Current wording
Electricity revenues increased by 8.4% in thesix months ended June 30, 2024 compared to the same period in 2023. The increase was due to an increase in electricity consumption partially offset by a decrease in the average price per kilowatt hour charged to customers in thesix months ended June 30, 2024 compared to the same period in 2023. Electricity consumption by GRE’s REPs' customers increased by 15.1% in thesix months ended June 30, 2024, compared to the same period in 2023 reflecting a 6.0% increase in the average number of meters served and an 8.5% increase in average consumption per meter. The increase in meters served was driven by strong customer acquisition during 2023. Electricity consumption per meter increased in thesix months ended June 30, 2024 compared to the same period in 2023 due to standard fluctuations in customer consumption patterns. The average rate per kilowatt hour sold decreased by 5.8% in thesix months ended June 30, 2024 compared to the same period in 2023 due to general market conditions.
Previous wording
GRE’s natural gas revenues decreased by 16.8% in the three months ended March 31, 2024 compared to the same period in 2023. The decrease was a result of a decrease in average revenue per therm sold partially offset by an increase innatural gas consumption. The average revenue per therm sold decreased by 22.6% in the three months ended March 31, 2024, compared to the same period in 2023. The decrease in revenue per therm was driven by an increase in the portion of the customer base consisting of commercial customers with fixed rates compared to customers with variable rates in thethree months ended March 31, 2024 compared to the same period in 2023. Natural gas consumption by GRE’s REPs’ customers increased by 7.5% in the three months ended March 31, 2024 compared to the same period in 2023, reflecting a 6.0% increase in average meters served in the three months ended March 31, 2024 compared to the same period in 2023, partially offset by a 1.4% decrease in average consumption per meter.
Current wording
GRE’s natural gas revenues decreased by 6.3% in the three months ended June 30, 2024 compared to the same period in 2023. The decrease was a result of a decrease in average revenue per therm sold partially offset by an increase innatural gas consumption per meter in thethree months ended June 30, 2024 compared to the same period in 2023. Natural gas consumption by GRE’s REPs’ customers increased by 5.9% in the three months ended June 30, 2024 compared to the same period in 2023, reflecting a 6.6% increase in average meters served, partially offset by a 0.7% decrease in average consumption per meter. The increase in meters served was due to higher levels of customer acquisitions in thethree months ended June 30, 2024 compared to the same period in 2023. The average revenue per therm sold decreased by 11.5% in the three months ended June 30, 2024, compared to the same period in 2023 due to general market conditions.
Previous wording
Other revenues in thethree months ended March 31, 2024 included revenues from the sale of petroleum products in Israel.
Current wording
Other revenues in thethree and six months ended June 30, 2024 and 2023 included revenues from the sale of petroleum products in Israel.
Previous wording
Gross meter acquisitions in thethree months ended March 31, 2024, were 70,000 compared to 129,000 for the same period in 2023. In the first quarter of 2023, we resumed customer acquisition activities using a variety of new and existing channels after a "strategic pause" implemented from the fourth quarter of 2021 through 2022.
Current wording
Gross meter acquisitions in thethree months ended June 30, 2024, were 53,000 compared to 75,000 for the same period in 2023. Gross meter acquisitions in thesix months ended June 30, 2024, were 123,000 compared to 204,000 for the same period in 2023. In the first quarter of 2023, we resumed customer acquisition activities using a variety of new and existing channels after a "strategic pause" implemented from the fourth quarter of 2021 through 2022. The gross meter acquisitions for the three and six months ended June 30, 2024 decreased compared to the same periods in 2023 as customer acquisition efforts returned to a normal level.
Previous wording
Meters served increased by 3,000 meters or 0.8% from December 31, 2023 to March 31, 2024. The increase in the number of meters served at March 31, 2024 compared to December 31, 2023 was due to continued acquisition activities in 2024 and 2023 as discussed above.
Current wording
Meters served decreased by 2,000 between March 31, 2024 to June 30, 2024. Meters served increased by 1,000 meters from December 31, 2023 to June 30, 2024. The slight fluctuations in the number of meters served at June 30, 2024 compared to March 31, 2024 and December 31, 2023.
Previous wording
In thethree months ended March 31, 2024, average monthly churn increased to 5.5% compared to 4.4% for same period in 2023.
Current wording
In thethree months ended June 30, 2024, average monthly churn increased to 4.6% compared to 4.3% for same period in 2023. In thesix months ended June 30, 2024, the average monthly churn increased to 5.1% compared to 4.3% for same period in 2023, as a result of higher churn rate related to newly acquired customers.
Previous wording
RCEs at March 31, 2024 decreased 0.6% compared to December 31, 2023. The increase isdue to the resumption of customer acquisition activities as discussed above.
Current wording
RCEs at June 30, 2024 decreased 0.9% compared to March 31, 2024. The decrease is due to customer acquisition efforts returning to normal level in 2024 as discussed above.
Previous wording
Cost of revenues for electricity increased in thethree months ended March 31, 2024 compared to the same period in 2023 primarily because of increases in electricity consumption by GRE’s REPs’ customers and the average unit cost of electricity. The average unit cost of electricity increased 7.2% in thethree months ended March 31, 2024 compared to the same period in 2023 due to an increase in the average wholesale price of electricity. The gross margin on electricity sales decreased in thethree months ended March 31, 2024 compared to the same period in 2023 because the average unit cost of electricity increased while theaverage rate charged to customers decreased.
Current wording
Cost of revenues for electricity increased in thethree months ended June 30, 2024 compared to the same period in 2023 primarily because of an increase inthe average unit cost of electricity partially offset by slight decrease in electricity consumption by GRE’s REPs’ customers. The average unit cost of electricity increased 7.6% in thethree months ended June 30, 2024 compared to the same period in 2023 due to an increase in the average wholesale price of electricity. The gross margin on electricity sales decreased in thethree months ended June 30, 2024 compared to the same period in 2023 because the average unit cost of electricity increased while theaverage rate charged to customers decreased. The decrease in gross margin is due to the change in the mix type of customers in the three months ended June 30, 2024 compared to the same periods in 2023.
Previous wording
Cost of revenues for natural gas decreased in the three months ended March 31, 2024 compared to the same period in 2023 primarily because of a decrease in the average unit cost of natural gas partially offset by an increase in thenatural gas consumption by GRE's REPs' customers. The average unit cost of natural gas decreased by 44.1% per therm in thethree months ended March 31, 2024 compared to the same period in 2023 to a decrease in the wholesale price of natural gas. Gross margin on natural gas sales increased in the three months ended March 31, 2024 compared to the same period in 2023 because the average rate charged to customers decreased less than the decrease in the average unit cost of natural gas.
Current wording
Cost of revenues for natural gas decreased in the three months ended June 30, 2024 compared to the same period in 2023 primarily because of a decrease in the average unit cost of natural gas partially offset by an increase in thenatural gas consumption by GRE's REPs' customers. The average unit cost of natural gas decreased by 16.1% per therm in thethree months ended June 30, 2024 compared to the same period in 2023 due to a decrease in the wholesale price of natural gas. Gross margin on natural gas sales increased in the three months ended June 30, 2024 compared to the same period in 2023 because the average rate charged to customers decreased while the average unit cost of natural gas increased.
Previous wording
Selling, General and Administrative. Selling, general and administrative expenses increased by 11.5% in thethree months ended March 31, 2024 compared to the same period in 2023 primarily due to increases in marketing and customer acquisition costs, employee-related costs, POR program fees, processing fees and provision of doubtful account. Marketing and customer acquisition expenses increased by $0.6 million in thethree months ended March 31, 2024 compared to the same period in 2023 as a result of an increase in the number of meters acquired during 2023 period. Employee-related expenses increased by $0.3.0 million in thethree months ended March 31, 2024 compared to the same period in 2023 primarily due to an increase in the number of employees. POR program fees increased by$0.3. million in thethree months ended March 31, 2024 compared to the same period in 2023 as a result of changes in rates implemented by several utilities. Processing fees increased by $0.2 million in thethree months ended March 31, 2024 compared to the same period in 2023 as a result of a higher level of activities from an increase in the number of meters. Provision for doubtful accounts increased by $0.2 million in the three months ended March 31, 2024 compared to the same period in 2023 as a result of increase in revenues in non-POR territories. As a percentage of GRE’s total revenues, selling, general and administrative expense increased from 15.9% in thethree months ended March 31, 2023 to 16.0% in thethree months ended March 31, 2024.
Current wording
Selling, General and Administrative. Selling, general and administrative expenses decreased by 7.4% in thethree months ended June 30, 2024 compared to the same period in 2023 primarily due to decreases in marketing and customer acquisition costs, employee-related costs and provision for doubtful accounts partially offset by increases in POR program fees and processing fees. Marketing and customer acquisition expenses decreased by $1.5 million in thethree months ended June 30, 2024 compared to the same period in 2023 as a result of a decrease in the number of meters acquired during 2024 period. Employee-related expenses decreased by $0.1 million in thethree months ended June 30, 2024 compared to the same period in 2023 primarily due to a decrease in bonus accrual. Provision for doubtful accounts decreased by $0.3 million in the three months ended June 30, 2024 compared to the same period in 2023 as a result of continued increase in collection efforts. POR program fees increased by$0.2 million in thethree months ended June 30, 2024 compared to the same period in 2023 as a result of changes in rates implemented by several utilities. Processing fees increased by $0.3 million in thethree months ended June 30, 2024 compared to the same period in 2023 as a result of an increase in meters with billing fees incurred by GRE. As a percentage of GRE’s total revenues, selling, general and administrative expense increased from 21.2% in thethree months ended June 30, 2023 to 20.4% in thethree months ended June 30, 2024.
Previous wording
*Revenue.*Genie Renewables' revenues increased in thethree months ended March 31, 2024 compared to the same period in 2023. The increases in revenues were the result of increases in revenues from the development of the solar projects for customers from Genie Solar, revenues from Diversegy that includes commissions, entry fees and other fees from our energy brokerage and marketing services businesses, partially offset by decreases incommissions from selling third-party products to customers by CityCom Solar and sale of solar panels by Prism. Genie Solar projects had significant progress in the in the three months ended March 31, 2024 compared to the same period in 2023.
Current wording
*Revenue.*Genie Renewables' revenues increased in thethree and six months ended June 30, 2024 compared to the same periods in 2023. The increase in revenues were the result of increases from Diversegy that includes commissions, entry fees and other fees from our energy brokerage and marketing services businesses and revenue contributions from the portfolio of operating solar projects at Genie Solar, partially offset by decreasesin revenues from the development of solar projects for customers from Genie Solar, revenues from commissions from selling third-party products to customers by CityCom Solar and sale of solar panels by Prism.
Previous wording
Cost of Revenues. The variations in the cost of revenues for thethree months ended March 31, 2024 compared to the same periods in 2023 are consistent with the variations in revenues of Genie Solar, Diversegy, CityCom Solar and Prism. In the first quarter of 2024, we recorded a $0.4 million charge to the cost of revenues of Genie Solar to write down the carrying value of solar panel inventories to the estimated net realizable value.
Current wording
Cost of Revenues. The variations in the cost of revenues for thethree and six months ended June 30, 2024 compared to the same periods in 2023 are due to changes in the mix of products from which the revenues were generated during the periods. In the first quarter of 2024, we recorded a $0.4 million charge to the cost of revenues of Genie Solar to write down the carrying value of solar panel inventories to the estimated net realizable value.
Previous wording
Selling, General and Administrative. Selling, general and administrative expenses increased in thethree months ended March 31, 2024 compared to the same periods in 2023 primarily due to increases in headcount in Genie Solar and Diversegy, consulting fees and warehousing costs at Genie Solar and depreciation from the solar arrays acquired by Genie Solar in the last six months.
Current wording
Selling, General and Administrative. Selling, general and administrative expenses increased in thethree and six months ended June 30, 2024 compared to the same periods in 2023 primarily due to increases in headcount in Genie Solar and Diversegy, consulting fees, warehousing costs at Genie Solar and depreciation from the solar arrays acquired by Genie Solar in the lastsix months.
Previous wording
Corporate general and administrative expenses decreased in thethree months ended March 31, 2024 compared to the same period in 2023, primarily because of decreases in employee-related cost and professional and consulting fees. As a percentage of our consolidated revenues, Corporate general and administrative decreased to 2.3% in thethree months ended March 31, 2024 from 3.8% in thethree months ended March 31, 2023.
Current wording
Corporate general and administrative expenses decreased in thethree months ended June 30, 2024 compared to the same period in 2023 and increased in thesix months ended June 30, 2024 compared to the same period in 2023 primarily because of decreases in employee-related cost and professional and consulting fees. As a percentage of our consolidated revenues, Corporate general and administrative decreased to 2.2% in thethree months ended June 30, 2024 from 2.3% in thethree months ended June 30, 2023 and decreased to 2.3% in thesix months ended June 30, 2024 from 3.1% in thesix months ended June 30, 2023.
Previous wording
In December 2023, we established a wholly-owned captive insurance subsidiary (the "Captive") with the primary purpose of enhancing our risk financing strategies. In December 2023, we paid $51.2 million premiums to Captive, which amount is included in restricted cash in our consolidated balance sheet as of December 31, 2023. The Captive must maintain a sufficient level of cash to fund future reserve payment and secure the insurer's liabilities, particularly those related to the insured risks. We also recognized a $1.0 million provision for captive insurance liability for thethree months ended March 31, 2024 related to Captive's exposure for the insured risks.
Current wording
In December 2023, we established a wholly-owned captive insurance subsidiary (the "Captive") with the primary purpose of enhancing our risk financing strategies. In December 2023, we paid $51.2 million premiums to Captive, which amount is included in restricted cash in our consolidated balance sheet as of December 31, 2023. The Captive must maintain a sufficient level of cash to fund future reserve payment and secure the insurer's liabilities, particularly those related to the insured risks. We also recognized $0.6 and $ $1.7 million provision for captive insurance liability for the three andsix months ended June 30, 2024 related to Captive's exposure for the insured risks.
Previous wording
Selling, general and administrative expenses. Stock-based compensation expense included in consolidated selling, general and administrative expenses was $0.9 million in thethree months ended March 31, 2024 and 2023. At March 31, 2024, the aggregate unrecognized compensation cost related to non-vested stock-based compensation was $1.7 million. The unrecognized compensation cost is recognized over the expected service period.
Current wording
Selling, general and administrative expenses. Stock-based compensation expense included in consolidated selling, general and administrative expenses was $0.5 million and $0.8 million in thethree months ended June 30, 2024 and 2023 respectively, and$1.2 million and$1.6 million for thesix months ended June 30, 2024 and 2023. At June 30, 2024, the aggregate unrecognized compensation cost related to non-vested stock-based compensation was $0.4 million. The unrecognized compensation cost is recognized over the expected service period.
Previous wording
Interest income. Interest income increased in thethree months ended March 31, 2024, compared to the same period in 2023 primarily due to increase in average cash and cash equivalents and restricted cash during the period.
Current wording
Interest income. Interest income increased in thethree and six months ended June 30, 2024, compared to the same period in 2023 primarily due to increase in average balances of cash and cash equivalents and restricted cash during the period.
Previous wording
Other Income, net. Other income, net in thethree months ended March 31, 2024 and 2023 consisted primarily offoreign currency transactions and equity in net loss in equity method investees. Other income (loss) income, net, in thethree months ended March 31, 2024 consisted primarily of on-time tax credit related to payroll taxes incurred in prior years.
Current wording
Other Income, net. Other income, netin the three months ended June 30, 2024 and 2023 and in thesix months ended June 30, 2024 and 2023 consisted primarily offoreign currency transactions and equity in net loss in equity method investees. Other income (loss) income, net, in thethree months ended June 30, 2023 consisted primarily of a one-time tax credit related to payroll taxes incurred in prior years.
Previous wording
Provision for Income Taxes. The change in the reported tax rate for thethree months ended March 31, 2024 compared to the same periods in 2023, is the result of changes in the mix of jurisdictions in which taxable income was earned.
Current wording
Provision for Income Taxes. The change in the reported tax rate for thethree and six months ended June 30, 2024 compared to the same periods in 2023 is the result of changes in the mix of jurisdictions in which taxable income was earned.
Previous wording
Net Loss Attributable to Noncontrolling Interests. The decreases in net loss attributable to noncontrolling interests in thethree months ended March 31, 2024 compared to the same periods in 2023 was primarily due to the share of noncontrolling interest in the operations of Citizens Choice Energy.
Current wording
Net Loss Attributable to Noncontrolling Interests. The decreases in net loss attributable to noncontrolling interests in thethree and six months ended June 30, 2024 compared to the same periods in 2023 was primarily due to the share of noncontrolling interest in the operations of Citizens Choice Energy.
Previous wording
Gain (loss) on Marketable Equity Securities and Investments. The gain on marketable equity securities and investment for thethree months ended March 31, 2024 pertains to the change in fair value of the Company's investments in common stock of Rafael Holdings, Inc. ("Rafael") which the Company acquired in December 2020 and various investments in equity of several entities.
Current wording
Gain on Marketable Equity Securities and Investments. The gain on marketable equity securities and investment for thethree and six months ended June 30, 2024 pertains to the change in fair value of the Company's investments in common stock of Rafael which the Company acquired in December 2020 and various investments in equity of several entities.
Previous wording
(Loss) income from Discontinued Operations, net of tax. Loss from discontinued operations, net of tax in thethree months ended March 31, 2024 is mainly related to foreign exchange differences in Lumo Sweden during the period. Gain from discontinued operations, net of tax in thethree months ended March 31, 2023 is mainly from an increase in the estimated value of our investments in Orbit and foreign exchange differences in Lumo Sweden.
Current wording
(Loss) income from Discontinued Operations, net of tax. Loss from discontinued operations, net of tax in thethree and six months ended June 30, 2024 is mainly related to foreign exchange differences in Lumo Sweden during the period. Gain from discontinued operations, net of tax in thethree and six months ended June 30, 2023 is mainly from an increase in the estimated value of our investments in Orbit and foreign exchange differences in Lumo Sweden.
Previous wording
We currently expect that our cash flow from operations and the $106.6 million balance of unrestricted cash and cash equivalents that we held at March 31, 2024 will be sufficient to meet our anticipated cash requirements for at least the period to March 9, 2025.
Current wording
We currently expect that our cash flow from operations and the $122.3 million balance of unrestricted cash and cash equivalents that we held at June 30, 2024 will be sufficient to meet our anticipated cash requirements for at least the period to August 8, 2025.
Previous wording
At March 31, 2024, we had working capital (current assets less current liabilities) of $127.2 million.
Current wording
At June 30, 2024, we had working capital (current assets less current liabilities) of $132.7 million.
Previous wording
Cash, cash equivalents and restricted cash provided by operating activities of continuing operations was $8.7 million in the three months ended March 31, 2024 compared tonet cash used in operating activities of continuing operations of $1.5 million in thethree months ended March 31, 2023. The decrease is primarily the fluctuation in the results of operations in the three months ended March 31, 2024 compared to the same period in 2023.
Current wording
Cash, cash equivalents and restricted cash provided by operating activities of continuing operations was $2.4 million in the six months ended June 30, 2024 compared tonet cash used in operating activities of continuing operations of $4.6 million in thesix months ended June 30, 2023. The decrease is primarily the fluctuation in the results of operations in the six months ended June 30, 2024 compared to the same period in 2023.
Previous wording
Our cash flow from operations varies significantly from quarter to quarter and from year to year, depending on our operating results and the timing of operating cash receipts and payments, specifically trade accounts receivable and trade accounts payable. Changes in assets and liabilities decreased cash flows by $8.5 million for the three months ended March 31, 2024, compared to the same period in 2023.
Current wording
Our cash flow from operations varies significantly from quarter to quarter and from year to year, depending on our operating results and the timing of operating cash receipts and payments, specifically trade accounts receivable and trade accounts payable. Changes in assets and liabilities decreased cash flows by $25.8 million for the three months ended June 30, 2024, compared to the same period in 2023.
Previous wording
Certain of GRE's REPs are party to an Amended and Restated Preferred Supplier Agreement with BP Energy Company, or BP, which is to be in effect through November 30, 2023. Under the agreement, the REPs purchase electricity and natural gas at market rate plus a fee. The obligations to BP are secured by a first security interest in deposits or receivables from utilities in connection with their purchase of the REP’s customer’s receivables, and in any cash deposits or letters of credit posted in connection with any collateral accounts with BP. The ability to purchase electricity and natural gas under this agreement is subject to satisfaction of certain conditions including the maintenance of certain covenants. At March 31, 2024, we were in compliance with such covenants. At March 31, 2024, restricted cash—short-term of $0.4 million and trade accounts receivable of $64.2 million were pledged to BP as collateral for the payment of trade accounts payable to BP of $16.0 million at March 31, 2024.
Current wording
Certain of GRE's REPs are party to an Amended and Restated Preferred Supplier Agreement with BP Energy Company, or BP, which is to be in effect through November 30, 2023. Under the agreement, the REPs purchase electricity and natural gas at market rate plus a fee. The obligations to BP are secured by a first security interest in deposits or receivables from utilities in connection with their purchase of the REP’s customer’s receivables, and in any cash deposits or letters of credit posted in connection with any collateral accounts with BP. The ability to purchase electricity and natural gas under this agreement is subject to satisfaction of certain conditions including the maintenance of certain covenants. At June 30, 2024, we were in compliance with such covenants. At June 30, 2024, restricted cash—short-term of $0.8 million and trade accounts receivable of $59.1 million were pledged to BP as collateral for the payment of trade accounts payable to BP of $20.1 million at June 30, 2024.
Previous wording
We had purchase commitments of $130.3 million at March 31, 2024, of which $116.1 million was for purchases of electricity.
Current wording
We had purchase commitments of $140.5 million at June 30, 2024, of which $126.3 million was for purchases of electricity.
Previous wording
As discussed above, in December 2023, we established the Captive insurance subsidiary. At March 31, 2024, the balance of short-term and long-term restricted cash and cash equivalents of the Captive are $6.3 million and $45.5 million, respectively. We also recognized $1.0 million provision for captive insurance liability for thethree months ended March 31, 2024, related to Captive's exposure for the insured risks. At March 31, 2024, the current captive insurance liability of $0.6 million is included in other current liabilities in the consolidated balance sheet. The amount of the expected loss liability for each risk is based on an analysis performed by a third-party actuary which assumed historical patterns. The key assumptions used in developing these estimates are subject to variability.
Current wording
As discussed above, in December 2023, we established the Captive insurance subsidiary. At June 30, 2024, the balance of short-term and long-term restricted cash and cash equivalents of the Captive are $5.1 million and $46.4 million, respectively. We also recognized $1.7 million provision for captive insurance liability for thethree months ended June 30, 2024, related to Captive's exposure for the insured risks. At June 30, 2024, the current captive insurance liability of $0.4 million is included in other current liabilities in the consolidated balance sheet. The amount of the expected loss liability for each risk is based on an analysis performed by a third-party actuary which assumed historical patterns. The key assumptions used in developing these estimates are subject to variability.
Previous wording
We are a lessee under operating lease agreements primarily for office space in locations where we operate and for our solar development projects with lease periods expiring between 2024 and 2052. Our future lease payments under the operating leases as of March 31, 2024 were $3.9 million.
Current wording
We are a lessee under operating lease agreements primarily for office space in locations where we operate and for our solar development projects with lease periods expiring between 2024 and 2052. Our future lease payments under the operating leases as of June 30, 2024 were $3.6 million.
Showing the first 40 of 53 pairs. Open the source sections for the rest.
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Current report — wording carried from elsewhere
On November 3, 2023, Genie Solar acquiredten special-purpose entities that own and operate solar system facilities in Ohio and Michigan for an aggregate purchase price of $7.5 million. The acquisition has been accounted for as an asset acquisition with a total purchase price of $7.7 million, including $0.2 million of direct transaction cost allocated to solar arrays assets included in the property and equipment account in our consolidated balance sheet.