HOUSTON, TX / ACCESSWIRE / November 10, 2021 / Stabilis Solutions, Inc., ("Stabilis" or "the Company") (NASDAQ:SLNG), a leading provider of energy transition services including liquefied natural gas ("LNG") and hydrogen fueling solutions, today reported its financial results for its third quarter ended September 30, 2021.
For the third quarter of 2021, the Company reported record revenues of $19.7 million, an increase of $10.7 million or 118% from the same period last year and an increase of $3.7 million or 23% from the second quarter of 2021. The Company's previous revenue high-water mark was $17.7 million in the first quarter of this year.
Revenues from Stabilis' LNG segment were $17.8 million, a $10.1 million increase compared to the same period last year, and $3.4 million above the second quarter of 2021. The Company delivered a record of 15.0 million gallons of LNG to customers during the third quarter of 2021, an increase of 6.8 million gallons from the same period last year and up 1.4 million gallons from the second quarter of 2021. The Company's power delivery segment reported $1.9 million in revenue, an increase of $0.6 million from the same period last year and up $0.3 million from the second quarter of 2021.
Earnings before interest, taxes, depreciation and amortization ("EBITDA"), a non-GAAP measure, was a loss of $2.0 million, compared to EBITDA of $0.4 million in the same period last year and $1.6 million in the second quarter of 2021. Adjusted EBITDA (excluding special items) was $1.4 million, compared to $0.4 million in the same period last year and $0.5 million in the second quarter of 2021. The Company recorded special items in the quarter totaling $3.0 million related to its executive leadership transition (including severance, legal fees, and stock-based compensation) and a $0.4 million impairment on a lease termination related to the Company's previous corporate headquarters.
Net loss for the quarter was $4.6 million compared to a loss of $2.1 million in the same period last year and 1.0 million in the second quarter of 2021.
Net cash provided by operating activities was $2.9 million during the quarter.
Westy Ballard, President and CEO, commented, "Our third quarter results highlight our team's continued success at expanding our customer and revenue base and steadily growing the top line. As the recently appointed CEO, I want to reaffirm to our shareholders, employees, and other constituents that Stabilis is committed to optimizing and expanding our core business as well as actively pursuing a variety of exciting growth drivers intended to expand our portfolio of products and solutions into the future.
Conference Call:
Management will host a conference call on Thursday, November 11, 2021 at 10:00 a.m. eastern time (9:00 a.m. central).
Dial-in Information
United States & Canada:
+1 888-506-0062; passcode 748301
International:
+1 973-528-0011; passcode 748301
Webcast: https://www.webcaster4.com/Webcast/Page/2256/42951
Replay Information
United States & Canada:
+1 877-481-4010; passcode 422951
International:
+1 919-882-2331; passcode 42951
About Stabilis
Stabilis Solutions, Inc. is an energy transition company that provides clean energy solutions to our customers. Our solutions include production, storage, and distribution of small-scale liquefied natural gas ("LNG") to multiple end markets in North America. To learn more, visit www.stabilis-solutions.com.
Cautionary Statement 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," "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 the parties' current beliefs, based on information currently available. Most of these factors are outside the parties' 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 16, 2021 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.
Stabilis Solutions, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except share and per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2020 | 2021 | |||||||||||||
| Revenue | ||||||||||||||||
LNG product | $ | 14,420 | $ | 6,594 | $ | 37,927 | $ | 18,609 | ||||||||
Rental, service and other | 3,359 | 1,073 | 10,364 | 5,613 | ||||||||||||
Power delivery | 1,925 | 1,352 | 5,129 | 3,638 | ||||||||||||
Total revenues | 19,704 | 9,019 | 53,420 | 27,860 | ||||||||||||
Operating expenses: | ||||||||||||||||
Costs of LNG product | 11,988 | 5,044 | 30,154 | 13,692 | ||||||||||||
Costs of rental, service and other | 1,917 | 808 | 5,649 | 3,381 | ||||||||||||
Costs of power delivery | 1,542 | 996 | 3,994 | 3,131 | ||||||||||||
Selling, general and administrative expenses | 6,155 | 2,338 | 13,195 | 7,892 | ||||||||||||
Gain from disposal of fixed assets | - | - | (24 | ) | (11 | ) | ||||||||||
Depreciation expense | 2,324 | 2,266 | 6,767 | 6,802 | ||||||||||||
Impairment of right-of-use lease asset | 376 | - | 376 | - | ||||||||||||
Total operating expenses | 24,302 | 11,452 | 60,111 | 34,887 | ||||||||||||
Loss from operations before equity income | (4,598 | ) | (2,433 | ) | (6,691 | ) | (7,027 | ) | ||||||||
Net equity income from foreign joint ventures' operations: | ||||||||||||||||
Income from equity investments in foreign joint ventures | 308 | 642 | 1,267 | 1,529 | ||||||||||||
Foreign joint ventures' operations related expenses | (62 | ) | (69 | ) | (192 | ) | (182 | ) | ||||||||
Net equity income from foreign joint ventures' operations | 246 | 573 | 1,075 | 1,347 | ||||||||||||
Loss from operations | (4,352 | ) | (1,860 | ) | (5,616 | ) | (5,680 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (130 | ) | (2 | ) | (224 | ) | (28 | ) | ||||||||
Interest expense, net - related parties | (120 | ) | (199 | ) | (441 | ) | (681 | ) | ||||||||
Other income (loss) | 70 | (31 | ) | 1,183 | (6 | ) | ||||||||||
Total other income (expense) | (180 | ) | (232 | ) | 518 | (715 | ) | |||||||||
Loss before income tax expense | (4,532 | ) | (2,092 | ) | (5,098 | ) | (6,395 | ) | ||||||||
Income tax expense | 93 | 41 | 356 | 251 | ||||||||||||
Net loss | $ | (4,625 | ) | $ | (2,133 | ) | $ | (5,454 | ) | $ | (6,646 | ) | ||||
Common Stock Data: | ||||||||||||||||
Net loss per common share: | ||||||||||||||||
Basic and diluted | $ | (0.26 | ) | $ | (0.13 | ) | $ | (0.32 | ) | $ | (0.39 | ) | ||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic and diluted | 17,578,653 | 16,896,626 | 17,202,631 | 16,867,939 | ||||||||||||
EBITDA | $ | (1,958 | ) | $ | 375 | $ | 2,334 | $ | 1,116 | |||||||
Adjusted EBITDA | 1,403 | 375 | 4,609 | 1,116 | ||||||||||||
Revenues by Segment
(Unaudited, in thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | ||||||||||||||||
LNG | $ | 17,779 | $ | 7,667 | $ | 48,291 | $ | 24,222 | ||||||||
Power Delivery | 1,925 | 1,352 | 5,129 | 3,638 | ||||||||||||
Total Revenue | $ | 19,704 | $ | 9,019 | $ | 53,420 | $ | 27,860 | ||||||||
Gallons Delivered
(Unaudited, in thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Gallons Delivered | ||||||||||||||||
George West and Port Allen | 8,215 | 4,370 | 21,325 | 14,266 | ||||||||||||
3rd Party | 6,835 | 3,904 | 20,810 | 10,551 | ||||||||||||
Total Gallons Delivered | 15,050 | 8,274 | 42,135 | 24,817 | ||||||||||||
Stabilis Solutions, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except share and per share data)
| September 30, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
| Current assets: | ||||||||
Cash and cash equivalents | $ | 2,938 | $ | 1,814 | ||||
Accounts receivable, net | 7,328 | 5,620 | ||||||
Inventories, net | 424 | 226 | ||||||
Prepaid expenses and other current assets | 4,298 | 3,111 | ||||||
Due from related parties | - | 42 | ||||||
Total current assets | 14,988 | 10,813 | ||||||
Property, plant and equipment, net | 55,858 | 52,038 | ||||||
Right-of-use assets | 128 | 786 | ||||||
Goodwill | 4,453 | 4,453 | ||||||
Investments in foreign joint ventures | 11,923 | 11,897 | ||||||
Other noncurrent assets | 319 | 326 | ||||||
Total assets | $ | 87,669 | $ | 80,313 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Current portion of notes payable | $ | 1,379 | $ | 1,112 | ||||
Current portion of notes payable - related parties | 2,580 | 3,351 | ||||||
Current portion of finance lease obligation | 16 | - | ||||||
Current portion of finance lease obligation - related parties | - | 648 | ||||||
Current portion of operating lease obligations | 206 | 362 | ||||||
Accrued liabilities | 7,432 | 4,361 | ||||||
Accounts payable | 5,163 | 4,395 | ||||||
Total current liabilities | 16,776 | 14,229 | ||||||
Long-term notes payable, net of current portion | 6,772 | 682 | ||||||
Long-term notes payable, net of current portion - related parties | 919 | 2,726 | ||||||
Long-term portion of finance lease obligations | 68 | - | ||||||
Long-term portion of operating lease obligations | 314 | 490 | ||||||
Other noncurrent liabilities | 98 | 156 | ||||||
Total liabilities | 24,947 | 18,283 | ||||||
Commitments and contingencies | ||||||||
Stockholders' Equity: | ||||||||
Stockholders' equity: | ||||||||
Common stock; $0.001 par value, 37,500,000 shares authorized, 17,691,268 and 16,896,626 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 18 | 17 | ||||||
Additional paid-in capital | 97,373 | 91,278 | ||||||
Accumulated other comprehensive income | 172 | 122 | ||||||
Accumulated deficit | (34,841 | ) | (29,387 | ) | ||||
Total stockholders' equity | 62,722 | 62,030 | ||||||
Total liabilities and stockholders' equity | $ | 87,669 | $ | 80,313 | ||||
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 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 loss, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA (in thousands).
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Net loss | $ | (4,625 | ) | $ | (2,133 | ) | $ | (5,454 | ) | $ | (6,646 | ) | ||||
Depreciation | 2,324 | 2,266 | 6,767 | 6,802 | ||||||||||||
Net Interest Expense | 250 | 201 | 665 | 709 | ||||||||||||
Income Tax Expense | 93 | 41 | 356 | 251 | ||||||||||||
EBITDA | (1,958 | ) | 375 | 2,334 | 1,116 | |||||||||||
Special Items* | 3,361 | - | 2,275 | - | ||||||||||||
Adjusted EBITDA | $ | 1,403 | $ | 375 | $ | 4,609 | $ | 1,116 | ||||||||
*Special items in Q3 of 2021 consist of add backs for executive officer's immediate vesting of restricted stock of $1.8 million, former executive officer's severance and immediate vesting of restricted stock of $1.2 million, and impairment charges for settlement of an office lease of $0.4 million. Special items in Q2 of 2021 consisted of subtraction of gain related to the forgiveness of indebtedness of a Payroll Protection Act Loan ($1.1 million). There were no special items in the periods presented for 2020.
Investor Contact:
Andrew Puhala
Chief Financial Officer
832-456-6500
[email protected]
SOURCE: Stabilis Solutions