Improved Margins, Higher Volumes Lift Genie Retail Energy Earnings

Genie Retail Energy (GRE), the parent of IDT Energy and several other retail energy companies, reported higher earnings for the quarter ending June 30, 2016 on the strength of improved margins, higher commodity volumes sold, and reduced SG&A expense

Genie Retail Energy generated $5.9 million in income from operations and $6.0 million in Adjusted EBITDA for the quarter ending June 30, 2016 (2Q16), compared with a loss from operations of $0.5 million and negative Adjusted EBITDA of $0.2 million in the year ago quarter

Genie Retail Energy's meters served decreased slightly to 390,000 at June 30, 2016, from 393,000 at March 31, 2016, but increased from 377,000 in the year-ago quarter.

The net loss of 3,000 meters since March 31, 2016 compares to net growth of 1,000 meters from December 31, 2015 to March 31, 2016.

Genie Retail Energy added 58,000 gross meters in 2Q16 compared to 65,000 gross meters added in 1Q16 and 79,000 meters in 2Q15.

At June 30, 2016, Genie Retail Energy electricity meters were 268,000, and natural gas meters were 122,000

RCEs for Genie Retail Energy were 239,000 as of June 30, 2016, versus 247,000 as of March 31, 2016 and 251,000 a year ago.

During 2Q16, Genie Retail Energy continued to expand its geographic footprint by entering a utility territory in Ohio, its sixth state

Meters enrolled in offerings with fixed rate characteristics constituted approximately 15% of GRE's electric load at June 30, 2016.

Genie Retail Energy's average monthly customer churn decreased to 6.2% in 2Q16 from 6.4% in 1Q16 and 6.3% in 2Q15.

Genie Retail Energy's quarterly revenue increased to $44.0 million for 2Q16 from $39.5 million a year ago on increases in both electricity and gas sales.

Genie Retail Energy's gross margin was 42.8% in 2Q16 compared to 34.0% in 2Q15, primarily reflecting declines in the underlying costs of both natural gas and electricity. The margin improvement led to an increase in gross profit to $18.8 million in 2Q16 from $13.4 million in the year ago quarter.