RCS - Stabilis Solutions - Stabilis Solutions' Third Quarter 2024 Results
07/11/2024 08:15
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RNS Number : 2709L Stabilis Solutions, Inc. 06 November 2024
Stabilis Solutions Announces Third Quarter 2024 Results
HOUSTON, TX / ACCESSWIRE / November 6, 2024 / Stabilis Solutions, Inc.,
("Stabilis" or the "Company") (Nasdaq:SLNG), a leading provider of clean
fueling, production, storage, and last mile delivery solutions for many of the
world's most recognized, high-performance brands, today announced financial
results for the third quarter ended September 30, 2024.
THIRD QUARTER PERFORMANCE HIGHLIGHTS
· Strong customer demand supported by ratable long-term contractual
agreements and improved plant utilization
· 22% increase in LNG sales volumes on a year-over-year basis
· Delivered positive net income, an improvement of $1.2 million on
a year-over-year basis
· Adjusted EBITDA of $2.6 million, an increase of $2.0 million on a
year-over-year basis
· $2.6 million of cash flow from operations, an increase of 73% on
a year-over-year basis
· $15.6 million of cash and availability under credit agreements as
of September 30, 2024
MANAGEMENT COMMENTARY
"We continued to advance our multi-year business transformation strategy
during the third quarter, culminating in significant year-over-year growth in
revenue and profitability, together with increased balance sheet optionality
to support further value creation," said Westy Ballard, President and Chief
Executive Officer. "Over the last two years, we have successfully reweighted
our revenue mix to include more, longer-term customer contracts in emerging
growth markets. As we continue to grow our pipeline of contractual revenue, we
see significant opportunity to drive increased operating leverage and cash
flow."
Ballard continued, "Moving forward, we intend to further invest in our LNG
fueling solutions platform as we enter this next, exciting phase of demand
growth across our diverse portfolio of developing markets where last-mile
services remain the most cost-effective, reliable and environmentally sound
choice for our customers."
STRATEGIC AND OPERATIONAL UPDATE
· Optimized revenue mix driving improved operating leverage. 68% of
our third quarter revenues were derived from contracted customer agreements,
compared to 43% in the third quarter of 2023. The improved business mix drove
improved Adjusted EBITDA margins and consistent profitability.
· Strong competitive position within emerging, high-growth markets.
Since the third quarter of last year, Stabilis' revenue mix in high-growth
marine and aerospace end markets increased from 11% of total revenue to 40% in
the third quarter of 2024. The Company is uniquely positioned as the incumbent
small-scale LNG supplier in these markets where LNG fuel demand continues to
develop.
· Pursuing expansion of Texas Gulf Coast marine bunkering
operations. We have invested in design, engineering and feasibility
assessments, and purchased the major components of the first LNG train, with a
production capacity of 100,000 gallon per day, to be situated on the
waterfront on the Gulf Coast, ahead of commitments from potential customers.
· Developing capabilities for key growth opportunities in
commercial and industrial markets. The Company has identified a substantial
opportunity for the deployment of LNG to address the need for power generation
for critical "must-run" applications in emergency response for large data
centers, and as fuel for high-performance rocket engines in the aerospace
industry. The Company is focused on empowering commercial end users by
offering end-to-end capabilities ranging from fuel source procurement and
strategy development, around-the-clock LNG production, storage and delivery,
and ancillary back-end services for fuel source monitoring.
THIRD QUARTER CONFERENCE CALL AND WEBCAST
Stabilis will host a conference call on Wednesday November 7, 2024, at 9:00 am
ET to review the Company's financial results, discuss recent events and
conduct a question-and-answer session.
A webcast of the conference call will be available in the Investor Relations
section of the Company's corporate website at
https://investors.stabilis-solutions.com/events (https://pr.report/41wx) . To
listen to a live broadcast, go to the site at least 15 minutes prior to the
scheduled start time in order to register, download, and install any necessary
audio software.
To participate in the live teleconference:
Domestic Live: 800-274-8461
International Live: 203-518-9814
Conference ID: SLNGQ324
To listen to a replay of the teleconference, which will be available through
November 14, 2024:
Domestic Live: 888-562-2849
International Live: 402-220-7359
ABOUT STABILIS SOLUTIONS
Stabilis Solutions, Inc. is a leading provider of clean fueling, production,
storage, and last mile delivery solutions for many of the world's most
recognized, high-performance brands. To learn more, visit
www.stabilis-solutions.com (https://pr.report/41ww) .
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
This press release includes "forward-looking statements" within the meaning of
the safe harbor provisions of the U.S. Private Securities Litigation Reform
Act of 1995 and within the meaning of Section 27a of the Securities Act of
1933, as amended, and Section 21e of the Securities Exchange Act of 1934, as
amended. Any actual results may differ from expectations, estimates and
projections presented or implied and, consequently, you should not rely on
these forward-looking statements as predictions of future events. Words such
as "can," "believes," "feels," "anticipates," "expects," "could," "will,"
"plan," "may," "should," "predicts," "potential" and similar expressions are
intended to identify such forward-looking statements.
Such forward-looking statements relate to future events or future performance,
but reflect our current beliefs, based on information currently available.
Most of these factors are outside our control and are difficult to predict. A
number of factors could cause actual events, performance or results to differ
materially from the events, performance and results discussed in the
forward-looking statements. Factors that may cause such differences include,
among other things: the future performance of Stabilis, future demand for and
price of LNG, availability and price of natural gas, unexpected costs, and
general economic conditions.
The foregoing list of factors is not exclusive. Additional information
concerning these and other risk factors is contained in the Risk Factors in
Item 1A of our Annual Report on Form 10-K filed with the Securities and
Exchange Commission on March 7, 2024 which is available on the SEC's website
at www.sec.gov or on the Investors section of our website at
www.stabilis-solutions.com. All subsequent written and oral forward-looking
statements concerning Stabilis, or other matters attributable to Stabilis, or
any person acting on its behalf are expressly qualified in their entirety by
the cautionary statements above. Readers are cautioned not to place undue
reliance upon any forward-looking statements, which speak only as of the date
made.
Stabilis does not undertake or accept any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statement to reflect
any change in their expectations or any change in events, conditions or
circumstances on which any such statement is based, except as required by law.
# # # # #
Investor Contact:
Andrew Puhala
Chief Financial Officer
832-456-6502
ir@stabilis-solutions.com
Stabilis Solutions, Inc. and Subsidiaries
Selected Consolidated Operating Results
(Unaudited, in thousands, except share and per share data)
Three Months Ended Nine Months Ended
September 30, June September September September 30,
30,
30,
30,
2024 2024 2023 2024 2023
Revenues:
Revenues $17,627 $18,598 $15,316 $55,995 $55,065
Operating expenses:
Cost of revenues 12,638 13,550 12,056 39,702 42,911
Change in unrealized (gain) loss on natural gas derivatives 13 (82) (267) (321) (322)
Selling, general and administrative expenses 3,035 3,331 3,002 9,822 9,424
Gain from disposal of fixed assets (102) (72) (1,002) (301) (1,002)
Depreciation expense 1,776 1,768 2,003 5,344 6,006
Total operating expenses 17,360 18,495 15,792 54,246 57,017
Income (loss) from operations before equity income 267 103 (476) 1,749 (1,952)
Net equity income from foreign joint venture operations 516 295 284 1,008 1,314
Income (loss) from operations 783 398 (192) 2,757 (638)
Other income (expense):
Interest income (expense), net 81 28 60 105 (237)
Interest (expense), net - related parties - - (15) - (71)
Other income (expense), net 10 26 (3) 15 (127)
Total other income (expense) 91 54 42 120 (435)
Net income (loss) before income tax (benefit) expense 874 452 (150) 2,877 (1,073)
Income tax (benefit) expense (123) 425 57 384 224
Net income (loss) $997 $27 $(207) $2,493 $(1,297)
Net income (loss) per common share:
Basic and diluted per common share $0.05 $- $(0.01) $0.13 $(0.07)
EBITDA $2,569 $2,192 $1,808 $8,116 $5,241
Adjusted EBITDA $2,582 $2,110 $539 $7,795 $3,917
Stabilis Solutions, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except share and per share data)
September December
30,
31,
2024 2023
Assets
Current assets:
Cash and cash equivalents $12,393 $5,374
Accounts receivable, net 5,766 7,752
Inventories, net 218 169
Prepaid expenses and other current assets 2,072 1,677
Total current assets 20,449 14,972
Property, plant and equipment:
Cost 116,137 110,646
Less accumulated depreciation (63,727) (61,167)
Property, plant and equipment, net 52,410 49,479
Goodwill 4,314 4,314
Investments in foreign joint ventures 11,557 12,009
Right-of-use assets and other noncurrent assets 620 525
Total assets $89,350 $81,299
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $10,260 $5,707
Accrued liabilities 3,916 4,166
Current portion of long-term notes payable 2,150 1,682
Current portion of finance and operating lease obligations 204 164
Total current liabilities 16,530 11,719
Long-term notes payable, net of current portion and debt issuance costs 7,111 7,747
Long-term portion of finance and operating lease obligations 354 21
Total liabilities 23,995 19,487
Commitments and contingencies
Stockholders' Equity:
Common stock; $0.001 par value, 37,500,000 shares authorized, 18,585,014 and 19 19
18,573,391 shares issued and outstanding at September 30, 2024 and December
31, 2023, respectively
Additional paid-in capital 103,132 102,057
Accumulated other comprehensive loss (43) (18)
Accumulated deficit (37,753) (40,246)
Total stockholders' equity 65,355 61,812
Total liabilities and stockholders' equity $89,350 $81,299
Stabilis Solutions, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30, September 30,
2024 2024 2023 2024 2023
Cash flows from operating activities:
Net income (loss) $997 $27 $(207) $2,493 $(1,297)
Adjustments to reconcile net income (loss) from operations to net cash
provided by operating activities:
Depreciation 1,776 1,768 2,003 5,344 6,006
Stock-based compensation expense 293 408 513 1,084 1,695
Bad debt expense 20 (100) - 88 -
Gain from disposal of assets (102) (72) (1,002) (301) (1,002)
Income from equity investment in joint venture (575) (340) (332) (1,162) (1,466)
Cash settlements from natural gas derivatives, net - (359) - (359) -
Realized and unrealized losses on natural gas derivatives, net 93 30 49 123 540
Distributions from equity investment in joint venture - 1,716 - 1,716 813
Changes in operating assets and liabilities:
Accounts receivable 109 (228) (1,372) 1,845 5,636
Prepaid expenses and other current assets 177 445 121 857 948
Accounts payable and accrued liabilities (22) 1,679 1,752 (155) (6,633)
Other (211) 64 (47) (51) 140
Net cash provided by operating activities 2,555 5,038 1,478 11,522 5,380
Cash flows from investing activities:
Acquisition of fixed assets (1,312) (1,376) (3,771) (3,561) (8,982)
Proceeds from sale of assets 102 72 - 381 -
Net cash used in investing activities (1,210) (1,304) (3,771) (3,180) (8,982)
Cash flows from financing activities:
Payments on short- and long-term notes payable (405) (529) (129) (1,280) (860)
Payments on notes payable from related parties - - (613) - (1,813)
Payment of debt issuance costs - - - - (108)
Employee tax payments from restricted stock withholdings - - (162) (9) (162)
Net cash used in financing activities (405) (529) (904) (1,289) (2,943)
Effect of exchange rate changes on cash (30) (8) (10) (34) 8
Net increase (decrease) in cash and cash equivalents 910 3,197 (3,207) 7,019 (6,537)
Cash and cash equivalents, beginning of period 11,483 8,286 8,121 5,374 11,451
Cash and cash equivalents, end of period $12,393 $11,483 $4,914 $12,393 $4,914
Non-GAAP Measures
Our management uses EBITDA and Adjusted EBITDA to assess the performance and
operating results of our business. EBITDA is defined as Earnings before
Interest (includes interest income and interest expense), Taxes, Depreciation
and Amortization. Adjusted EBITDA is defined as EBITDA further adjusted for
certain special items that occur during the reporting period, as noted below.
We include EBITDA and Adjusted EBITDA to provide investors with a supplemental
measure of our operating performance. Neither EBITDA nor Adjusted EBITDA is a
recognized term under generally accepted accounting principles in the U.S.
("GAAP"). Accordingly, they should not be used as an indicator of, or an
alternative to, net income (loss) as a measure of operating performance. In
addition, EBITDA and Adjusted EBITDA are not intended to be measures of free
cash flow available for management's discretionary use, as they do not
consider certain cash requirements, such as debt service requirements. Because
the definition of EBITDA and Adjusted EBITDA may vary among companies and
industries, it may not be comparable to other similarly titled measures used
by other companies. The following table provides a reconciliation of net
income (loss), the most directly comparable GAAP measure, to EBITDA and
Adjusted EBITDA (in thousands).
Three Months Ended Nine Months Ended
September June September 30, September September
30,
30,
30,
30,
2024 2024 2023 2024 2023
Net income (loss) $997 $27 $(207) $2,493 $(1,297)
Depreciation 1,776 1,768 2,003 5,344 6,006
Interest expense (income), net (81) (28) (45) (105) 308
Income tax expense (123) 425 57 384 224
EBITDA 2,569 2,192 1,808 8,116 5,241
Special items* 13 (82) (1,269) (321) (1,324)
Adjusted EBITDA $2,582 $2,110 $539 $7,795 $3,917
* Special items for all periods presented consist of adjustments related to
unrealized (gain)/loss on natural gas derivatives. The three and nine months
ended September 30, 2023 also include a subtraction of $1.0 million for gain
on disposition of fixed assets.
# # # # #
SOURCE: Stabilis Solutions, Inc.
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