Genie Energy Ltd. (NYSE:GNE) Q3 2019 Earnings Conference Call Transcript
Nov 08, 2019 • 08:30 am ET
Good day, and welcome to Genie Energy's Third Quarter 2019 Earnings Call. [Operator Instructions]
In its presentation, Genie Energy's management team will discuss financial and operational results for the three month period ended September 30, 2019. Any forward-looking statements made during this conference call either in the prepared remarks or in the Q&A session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which the Company anticipates. These risks and uncertainties include but are not limited to specific risks and uncertainties discussed in the reports that Genie Energy files periodically with the SEC. Genie Energy assumes no obligation either to update any forward-looking statements that they have made or may make or to update the factors that may cause actual results to differ materially from those that they forecast.
During their remarks, management may make reference to adjusted EBITDA, which is a non-GAAP measure. Management believes that Genie Energy's adjusted EBITDA provides useful information to both management and investors by excluding certain expenses that may not be indicative of Genie Energy's or the relevant segment's core operating results.
The Genie Energy earnings release, including a reconciliation of adjusted EBITDA to net income, is available on the Investor Relations page of the Genie Corporation website, www.genie.com. The earnings release has also been filed on a Form 8-K with the SEC.
After today's presentation by Genie Energy's management, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.
I would now like to turn the conference over to Michael Stein, Genie Energy's Chief Executive Officer. Please go ahead, Mr. Stein.
Thank you, operator.
Welcome to Genie Energy's third quarter earnings call. Today, we will discuss our operational and financial results for the three-month period ended September 30, 2019. My remarks today will focus on our business strategy and operational results. Avi Goldin, our Chief Financial Officer, will follow with an overview of our financial results. Following Avi's remarks, we will be glad to take your questions.
Genie Energy continued its growth with a solid third quarter. As Avi will detail for you, we increased revenue and gross profit substantially compared to the strong year-ago quarter. This allowed us to ramp up our investment in growth opportunities while still generating sufficient cash to further strengthen our balance sheet and return value to our stockholders.
Across the board, I was very pleased with the quarter's results. In the US, Genie Retail Energy added 11,000 RCEs and 10,000 meters to reach 329,000 RCEs and 389,000 meters at September 30. Gross meter adds at GRE totaled 76,000, a significant increase from the 45,000 meters we added in the year ago quarter though below the pace of last quarter when we added 91,000 meters.
During the quarter we entered the largest deregulated electricity market in the US, Texas, with over 7 million addressable meters. Although we've just begun to acquire meters in the Lone Star State, I'm excited