HOUSTON, TX / ACCESSWIRE / May 4, 2022 / Stabilis Solutions, Inc., ("Stabilis" or the "Company") (NASDAQ:SLNG), an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions primarily using liquefied natural gas ("LNG") to multiple end markets across North America, today reported its financial results for its first quarter ended March 31, 2022.
For the first quarter ended March 31, 2022, Stabilis reported revenues of $23.0 million. Revenues from the Company's LNG segment and power delivery segments were $20.3 million and $2.8 million respectively.
Westy Ballard, President and CEO, commented "Revenue in the quarter was strong across multiple end markets including distributed power, mining, and oil & gas. Our Mexico business was also strong, and we began seeing an increase in demand from the aerospace industry, one of our key growth drivers."
Net loss for the quarter was $0.4 million compared to a net loss of $2.3 million in the fourth quarter of 2021.
Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") a non-GAAP measure, was $2.0 million for the quarter, compared to $0.9 million in the fourth quarter of 2021.
Net cash provided by operating activities was $2.2 million during the quarter and total liquidity at March 31, 2022 was $4.5 million consisting of cash and available credit under the Company's loan facility.
Ballard continued, "We are beginning to see the results of our business optimization initiative which we implemented in the fourth quarter of last year. Our focus on creating efficiencies and improving the performance of our core LNG business resulted in better customer pricing, improved project execution and more efficient management of labor and capital. As a result, we saw improved profitability in Q1 compared to the second half of 2021 in spite of significant inflationary pressures. In addition to the optimization of our existing business, we continue to work on a number of exciting growth opportunities including marine bunkering and aerospace and we look forward to providing additional updates soon."
Conference Call:
Management will host a conference call on Thursday, May 5, 202 at 10:00 a.m. eastern time (9:00 a.m. central).
Dial-in Information
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+1 888-506-0062; passcode 473100
International:
+1 973-528-0011; passcode 473100
Webcast: https://www.webcaster4.com/Webcast/Page/2256/45299
Replay Information
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+1 877-481-4010; passcode 45299
International:
+1 919-882-2331; passcode 45299
About Stabilis
Stabilis Solutions, Inc. is an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions primarily using liquefied natural gas ("LNG") to multiple end markets across 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 10, 2022 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
Selected Consolidated Operating Results
(Unaudited, in thousands, except share and per share data)
| Three Months Ended | ||||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||
Revenue | ||||||||||||
LNG product | $ | 16,785 | $ | 17,772 | $ | 11,695 | ||||||
Rental, service and other | 3,482 | 3,108 | 4,425 | |||||||||
Power delivery | 2,766 | 2,865 | 1,544 | |||||||||
Total revenues | 23,033 | 23,745 | 17,664 | |||||||||
Operating expenses: | ||||||||||||
Costs of LNG product | 12,744 | 15,031 | 8,812 | |||||||||
Costs of rental, service and other | 2,760 | 2,884 | 2,751 | |||||||||
Costs of power delivery | 2,113 | 2,144 | 1,160 | |||||||||
Selling, general and administrative expenses | 3,566 | 3,750 | 2,715 | |||||||||
Gain from disposal of fixed assets | (80 | ) | - | - | ||||||||
Depreciation expense | 2,322 | 2,292 | 2,225 | |||||||||
Total operating expenses | 23,425 | 26,101 | 17,663 | |||||||||
Income (loss) from operations before equity income | (392 | ) | (2,356 | ) | 1 | |||||||
Net equity income from foreign joint ventures' operations: | ||||||||||||
Income from equity investments in foreign joint ventures | 161 | 879 | 421 | |||||||||
Foreign joint ventures' operations related expenses | (74 | ) | (171 | ) | (67 | ) | ||||||
Net equity income from foreign joint ventures' operations | 87 | 708 | 354 | |||||||||
Income (loss) from operations | (305 | ) | (1,648 | ) | 355 | |||||||
Other income (expense): | ||||||||||||
Interest expense, net | (154 | ) | (149 | ) | (17 | ) | ||||||
Interest expense, net - related parties | (31 | ) | (136 | ) | (173 | ) | ||||||
Other income (expense) | (45 | ) | 41 | 90 | ||||||||
Total other income (expense) | (230 | ) | (244 | ) | (100 | ) | ||||||
Income (loss) before income tax expense | (535 | ) | (1,892 | ) | 255 | |||||||
Income tax expense (benefit) | (129 | ) | 452 | 80 | ||||||||
Net income (loss) | $ | (406 | ) | $ | (2,344 | ) | $ | 175 | ||||
Net income (loss) per common share: | ||||||||||||
Basic and diluted | $ | (0.02 | ) | $ | (0.13 | ) | $ | 0.01 | ||||
Weighted average number of common shares outstanding: | ||||||||||||
Basic and diluted | 18,191,446 | 18,191,268 | 16,896,626 | |||||||||
EBITDA | $ | 1,972 | $ | 685 | $ | 2,670 | ||||||
Adjusted EBITDA | $ | 1,972 | $ | 935 | $ | 2,670 | ||||||
Revenues by Segment
(Unaudited, in thousands)
| Three Months Ended | ||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||
Revenue | ||||||||||
LNG | $ | 20,267 | $ | 20,880 | $ | 16,120 | ||||
Power Delivery | 2,766 | 2,865 | 1,544 | |||||||
Total Revenue | $ | 23,033 | $ | 23,745 | $ | 17,664 | ||||
Stabilis Solutions, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except share and per share data)
| March 31, 2022 | December 31, 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,541 | $ | 2,060 | ||||
Accounts receivable, net | 8,890 | 10,323 | ||||||
Inventories, net | 327 | 386 | ||||||
Prepaid expenses and other current assets | 3,623 | 2,764 | ||||||
Total current assets | 15,381 | 15,533 | ||||||
Property, plant and equipment: | ||||||||
Cost | 103,407 | 101,827 | ||||||
Less accumulated depreciation | (49,515 | ) | (47,140 | ) | ||||
Property, plant and equipment, net | 53,892 | 54,687 | ||||||
Goodwill | 4,453 | 4,453 | ||||||
Investments in foreign joint ventures | 12,524 | 12,325 | ||||||
Right-of-use assets and other noncurrent assets | 353 | 338 | ||||||
Total assets | $ | 86,603 | $ | 87,336 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 5,228 | $ | 5,556 | ||||
Accrued liabilities | 7,411 | 7,613 | ||||||
Current portion of long-term notes payable | 883 | 963 | ||||||
Current portion of long-term notes payable - related parties | 1,103 | 1,168 | ||||||
Current portion of finance and operating lease obligations | 310 | 327 | ||||||
Total current liabilities | 14,935 | 15,627 | ||||||
Long-term notes payable, net of current portion | 7,788 | 7,753 | ||||||
Long-term notes payable, net of current portion - related parties | 1,839 | 2,435 | ||||||
Long-term portion of finance and operating lease obligations | 390 | 393 | ||||||
Other noncurrent liabilities | 90 | 69 | ||||||
Total liabilities | 25,042 | 26,277 | ||||||
Commitments and contingencies | ||||||||
Stockholders' Equity: | ||||||||
Common stock; $0.001 par value, 37,500,000 shares authorized, 18,192,602 and 17,691,268 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 18 | 18 | ||||||
Additional paid-in capital | 98,406 | 97,875 | ||||||
Accumulated other comprehensive income | 728 | 351 | ||||||
Accumulated deficit | (37,591 | ) | (37,185 | ) | ||||
Total stockholders' equity | 61,561 | 61,059 | ||||||
Total liabilities and stockholders' equity | $ | 86,603 | $ | 87,336 | ||||
Stabilis Solutions, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
| Three Months Ended | ||||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | (406 | ) | $ | (2,344 | ) | $ | 175 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Depreciation | 2,322 | 2,292 | 2,225 | |||||||||
Stock-based compensation expense | 531 | 502 | 162 | |||||||||
Bad debt expense | 32 | 80 | - | |||||||||
Gain on disposal of fixed assets | (80 | ) | - | - | ||||||||
Income from equity investment in joint venture | (161 | ) | (879 | ) | (421 | ) | ||||||
Distributions from equity investment in joint venture | - | 702 | - | |||||||||
Change in operating assets and liabilities: | ||||||||||||
Accounts receivable | 1,616 | (2,772 | ) | (707 | ) | |||||||
Due to related parties | - | - | 15 | |||||||||
Inventories | 89 | 38 | 68 | |||||||||
Prepaid expenses and other current assets | (667 | ) | 1,231 | (200 | ) | |||||||
Accounts payable and accrued liabilities | (1,038 | ) | 366 | 1,268 | ||||||||
Other | - | 212 | (22 | ) | ||||||||
Net cash provided by (used in) operating activities | 2,238 | (572 | ) | 2,563 | ||||||||
Cash flows from investing activities: | ||||||||||||
Acquisition of fixed assets | (918 | ) | (865 | ) | (298 | ) | ||||||
Proceeds on sales of fixed assets | 100 | 35 | - | |||||||||
Net cash used in investing activities | (818 | ) | (830 | ) | (298 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from borrowings on short- and long-term notes payable | - | 992 | - | |||||||||
Payments on short- and long-term notes payable | (463 | ) | (425 | ) | (296 | ) | ||||||
Payments on notes payable and finance leases from related parties | (669 | ) | (7 | ) | (783 | ) | ||||||
Net cash provided by (used in) financing activities | (1,132 | ) | 560 | (1,079 | ) | |||||||
Effect of exchange rate changes on cash | 193 | (36 | ) | 62 | ||||||||
Net increase (decrease) in cash and cash equivalents | 481 | (878 | ) | 1,248 | ||||||||
Cash and cash equivalents, beginning of period | 2,060 | 2,938 | 1,814 | |||||||||
Cash and cash equivalents, end of period | $ | 2,541 | $ | 2,060 | $ | 3,062 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Interest paid | $ | 198 | $ | 243 | $ | 162 | ||||||
Income taxes paid (refunds received) | (14 | ) | 94 | 5 | ||||||||
Non-cash investing and financing activities: | ||||||||||||
Acquisitions of fixed assets included within accounts payable | $ | 170 | $ | 314 | $ | - | ||||||
Deferred interest expense reclassified to notes payable | - | 136 | - | |||||||||
Equipment acquired from issuance of note payable | 359 | - | - | |||||||||
Equipment acquired under finance leases | - | - | 104 | |||||||||
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 | ||||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||
Net income (loss) | $ | (406 | ) | $ | (2,344 | ) | $ | 175 | ||||
Depreciation | 2,322 | 2,292 | 2,225 | |||||||||
Interest expense, net | 185 | 285 | 190 | |||||||||
Income tax expense (benefit) | (129 | ) | 452 | 80 | ||||||||
EBITDA | 1,972 | 685 | 2,670 | |||||||||
Special items* | - | 250 | - | |||||||||
Adjusted EBITDA | $ | 1,972 | $ | 935 | $ | 2,670 | ||||||
* There were no special items for the three months ended March 31, 2022 and 2021, respectively. Special items in Q4 of 2021 consist of non-cash charges related to the write-off of engineering designs.
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Investor Contact:
Andrew Puhala
Chief Financial Officer
832-456-6502
[email protected]
SOURCE: Stabilis Solutions