Genie Energy Ltd.

Good morning and welcome to the Juni Energy Limited's first quarter 2025 earnings call. In today's presentation Juni Energy Management will discuss Juni's financial and operational results for the three-month period ended March 31, 2025. During the period we're matched by Juni Energy's Chief Executive Officer Michael Stein and Chief Financial Officer Avi Golden, all participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the spare key followed by zero. After Avi Golden's remarks, Michael and Avi will take questions from investors. 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 for Juni Energy files periodically with DSCC. Juni 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 different materially from those that they forecast. In their presentation or in the Q&A session, Juni Energy's management may make reference to non-GAAP measures, including adjusted EBITDA, non-GAAP net income, and non-GAAP earnings per share. The schedule provided in the Juni Energy earnings release reconciled adjusted EBITDA, non-GAAP net income, and non-GAAP earnings per share to the nearest corresponding GAAP measures. Please note that Juni Energy earnings release is available on the Investor Relations page of the Juni website. The earnings release has also been filed on Form 8K with DSCC. I will now turn the conference over to Michael Stein.

Thank you, operator. Our first quarter featured strong operational and financial results, highlighted by robust increases in revenue, profitability, and cash generation compared to the year-ago quarter. This quarter is the first quarter we have had in several years where the -over-year comparative results for our retail energy business reflect what we consider to be normalized results in both periods. In 2022 and to a lesser extent in 2023, our retail energy business was able to achieve exceptional margins by optimizing our commodity market positions during relatively volatile energy markets. As a result, -over-year growth rates, while strong, were disadvantaged during much of 2023 and 2024. For Q1 2025, the GRE is back at a reasonable -over-year comparative baseline with margins in what we believe to be a sustainable range for both quarters. At GRE, the significant investments we made in 2024 to expand our customer base drew a -over-year increase of over 48,000 net new meters. The end of the quarter was approximately 413,000 meters served, comprising 402,000 RCEs. The meter increase in combination with a stable commodity pricing environment enabled GRE to increase both revenue and income from operations by 18% compared to the -over-year Our -over-year growth reflects deep penetration of our existing markets supplemented by expansion to new states. As I mentioned last quarter, we recently began to market in California and we expected an offering yes and a concession in the second quarter. Customer return in Q1 was 5.5%, unchanged from the -over-year quarter and just a 10-base point increase from the fourth quarter last year. I credit our comprehensive customer retention program for maintaining term at these levels. The grad-tech focus effort, which has grown gross in our customer base over the last year, would likely have pressed your term upward. At GRE, we continue to advance our pipeline of utility-scale development projects. The most insured project in our development pipeline, a community-soldier project in 19 New York, is on track for completion as early as the third quarter of this year. We expect it will become easy to get creative immediately once online. Once completed, the Lansing project will join our operational portfolio, which continues to perform in line with our expectations. Also within GRE, our diversity energy brokerage business continues to perform very well. A year ago, this business was even die-negative and is now generating profit cash flow and is on track to become an increasingly important contributor to our bottom line results. Before turning the call over to Avia, I want to point out that Juni returned $3.9 million to our stockholders during the first quarter through our quarterly dividend and share repurchases. At March 31st, we had $210 million in cash-restricted cash and marketable securities, compared to $201 million at the end of 2024. With our strong balance sheet, robust cash flows, and with the stock and current levels, we expect to continue to repurchase our shares in the coming quarters. Now, here is Avia.

Thank you, Michael, and thanks to everyone on the call for joining us this morning. My remarks today cover financial results for the three-month end of March 31st, 2025. In my commentary on the quarterly results, I will compare the results of the first quarter 2025 to the first quarter 2024 to remove from consideration the seasonal factors that impact our results, particularly within our retail energy business. The first quarter is typically characterized by relatively elevated levels of electricity and gas consumption, as we include the majority of the winter's peak heating season within our service areas. Our results were quite good, highlighted by strong top-line growth and significantly improved bottom-line performance. Composted revenue in the quarter increased 14.3%, or 17.1 million, to 136.8 million, driven by strong performance in Juni retail energy. At GRE, revenue dropped .8% to 132.5 million. As Michael pointed out, the increase is primarily a function of the investments that we made to our customer base last year, boosted by increases in per-meter consumption of both electricity and natural gas during the quarter. Electricity revenue climbed .4% to 104.1 million, contributing .6% in share-use revenues. Total-hour sales increased 22.5%. The impact of that increasing consumption was partially offset by .7% increase in the average revenue per total-hour sold. Revenue from the sale of natural gas increased .8% in the first quarter to 28.4 million, reflecting increases in both therms sold and revenues per third sold. At GRE, first quarter revenue decreased 40% to 4.3 million. The revenue decline was largely driven by G-Solar, which was the impact of our decision to pivot from the commercial project market. At GRE, the risk was achieved in another record quarter, contributing 3.8 million revenues, a 55% -over-year increase. Consolidated gross profit increased .6% to 37.4 million, while gross margin decreased 90 basis points to 27.3%. The increase in gross profit is driven by the expansion of Jody's customer base, while the decrease in gross margin is driven by lower margins on electricity sales, specifically the acquisition of profitable or lower margin units for our commercial aggregation deal program. Consolidated FGMA increased .3% or 1 million to 22.9 million, primarily reflecting increased expenses at GRE. Cherry Strong quarter drove a .3% -over-year increase in consolidated income from operations to 12.8 million and a .7% increase in adjusted EBITDA to 14.4 million. At GRE, income from operations increased .2% to 16.9 million, and adjusted EBITDA increased .1% to 17.1 million, reflecting our expanded gross profit, partially offset by increased HGMA expense. After the first quarter's loss from operations increased to $900,000 from $600,000 in the year-go quarter, the increase in loss is primarily reflected by our investment in building out our solar generation project development pipeline, partially offset by the struggle performance of diversity G, which was adjusted EBITDA negative year-go quarter, generating over $4.4 million just the 80th of the first quarter of this year. Consolidated net income from the trigger of the Ginicom stockholders increased 10.6 million for 40 cents per share from 8.1 million for 30 cents per share a year earlier. Turning now to the balance sheet. On March 31, 2025, cash, cash equivalents, only short-term restricted cash, includes the cash held by our cash insurance subsidiary and marketable equity securities totaled $210.2 million, an increase of $9.2 million in the quarter. Our equity capital was $121.2 million. Our net current and non-current debt totaled $9 million, the largest component of which is enhancing for our portfolio of operational arrays that we completed last quarter. We re-courtshipped approximately 127,000 shares for our Class D common stock in the first quarter for $1.9 million and set a regular period of interest from $2 million directly to our stockholders. To wrap up, this is a follow-up quote of the strong operational net results in GRI. Looking ahead, both URE and GRU are well positioned for remainder of the year, and we are confirming our full years of EBITDA guidance of $40-50 million. Operator, we're back to you for Q&A.

Thank you. We will now begin our question and answer session. To ask a question, you may press SPUR, then 1 on your touchtone phone. If you're using a speakerphone, please pick up the handset before pressing the keys. To withdraw your question, press SPUR, then 2.

We will now pause momentarily to assemble our roster. Once again, ladies and gentlemen, if you do have any questions or comments, please indicate so now by pressing the SPUR key followed by 1. Okay, as there are no questions in the queue at this time,

this will conclude our question and answer session and conference call. Thank you for attending today's presentation. You may now disconnect.