Genie Retail Energy Earnings Up Sharply On Lower Supply Costs, Continues Customer Growth

Genie Retail Energy, the parent of IDT Energy and several other brands, reported sharply higher first quarter earnings on lower supply costs, and reported continued customer growth

At March 31, 2016, Genie Retail Energy was serving 393,000 meters, versus 392,000 as of December 31, 2015, and 358,000 a year ago.

The net growth of 1,000 meters from December 31, 2015 to March 31, 2016 compares to growth of 4,000 meters from September 30, 2015 to December 31, 2015

Genie Retail Energy added 65,000 gross meters in 1Q16 compared to 52,000 meters in 1Q15 and 70,000 meters in 4Q15.

At March 31, 2016, electricity meters were 267,000 and natural gas meters were 126,000.

Residential Customer Equivalents were 247,000 as of March 31, 2016

Genie Retail Energy’s average monthly customer churn increased to 6.4% in 1Q16 from 6.3% in 4Q15 and 5.9% in 1Q15.

Genie Retail Energy’s quarterly revenue decreased $16.3 million year over year to $58.1 million for the quarter ending March 31, 2016 primarily on reduced gas sales from warmer weather versus the year-ago period.

Genie Retail Energy’s gross margin in 1Q16 was 42.8% compared to 22.1% in the year ago quarter reflecting substantial reductions in wholesale commodity costs.

Genie Retail Energy’s gross profit was $24.9 million for 1Q16 versus $16.5 million a year ago

Genie Retail Energy generated Adjusted EBITDA of $11.7 million in 1Q16 compared to $2.9 million in the year ago quarter. The increase primarily reflects the improved gross profit and gross margin augmented by a reduction in SG&A expense

Genie Retail Energy’s income from operations in 1Q16 was $11.5 million, compared to $2.8 million in 1Q15.