par Stabilis Solutions (NASDAQ:SLNG)
Stabilis Solutions Announces Fourth Quarter and Full Year 2022 Results
HOUSTON, TX / ACCESSWIRE / March 8, 2023 / Stabilis Solutions, Inc., ("Stabilis" or the "Company") (NASDAQ:SLNG), a leading provider of clean energy production, storage, and delivery solutions to multiple end markets, today announced its financial results for its fourth quarter and full year ended December 31, 2022.
Fourth Quarter Results
For the fourth quarter ended December 31, 2022, Stabilis reported revenues of $29.6 million, a 15% increase sequentially and a 42% increase from the fourth quarter of 2021. The year-over-year growth was primarily the result of 1.1 million additional LNG gallons delivered, higher natural gas prices, and additional rental and service revenue.
Net income from continuing operations was $0.2 million in the quarter, compared to $1.0 million in the third quarter of 2022 and a loss of $2.3 million in the fourth quarter of last year.
Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") was $3.9 million, compared to $2.3 million in the third quarter of 2022 and $0.7 million in the fourth quarter of 2021.
Full Year Results
Full year 2022 revenues totaled $98.8 million, an increase of 43% compared to $69.2 million reported in 2021.
Net loss from continuing operations was $1.2 million for the full year, compared to a net loss from continuing operations of $7.6 million for 2021.
Adjusted EBITDA was $9.6 million in 2022, compared to $5.2 million in 2021.
The Company generated positive cash flows from continuing operations of $13.6 million during 2022, compared to $4.7 million in the prior year. Cash on hand as of December 31, 2022 was $11.5 million and the Company has $1.0 million of available liquidity under its current bank agreement.
"We made tremendous progress both operationally and financially in 2022." commented Westy Ballard, President and CEO. "The cost rationalization and pricing strategies I discussed on previous calls have improved profitability and delivered strong operating cash flows in a difficult and uncertain economic environment. Additionally, we began to lay the foundation for expansion into exciting new markets and look forward to building on this foundation in 2023 and beyond."
Conference Call
Management will host a conference call on Thursday, March 9, 2023 at 10:00 a.m. eastern time (9:00 a.m. central). Individuals in the United States and Canada who wish to participate in the conference call can access the live webcast at https://www.webcaster4.com/Webcast/Page/2256/47612 or dial +1 888-506-0062; passcode 376150. International callers should dial +1 973-528-0011; passcode 376150. A replay of the call will be available until April 9, 2023. Individuals in the United States and Canada who wish to listen to the replay should dial +1 877-481-4010; passcode 47612. International callers should dial +1 919-882-2331; passcode 47612. A replay of the call will also be available in the investor center on the Stabilis website (www.stabilis-solutions.com).
About Stabilis Solutions
Stabilis Solutions, Inc. is a leading provider of clean energy production, storage, and delivery solutions to multiple end markets. 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," "feels," "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 our current beliefs, based on information currently available. Most of these factors are outside our 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 | Twelve Months Ended | |||||||||||||||||||
| December 31, 2022 | September 30, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Revenues | $ | 29,587 | $ | 25,819 | $ | 20,880 | $ | 98,823 | $ | 69,171 | ||||||||||
Operating expenses: | ||||||||||||||||||||
Costs of revenues | 22,749 | 19,904 | 17,915 | 77,694 | 55,216 | |||||||||||||||
Change in unrealized loss (gain) on natural gas derivatives | 905 | (926 | ) | - | 878 | - | ||||||||||||||
Selling, general and administrative expenses | 3,548 | 3,658 | 3,234 | 13,191 | 13,792 | |||||||||||||||
Gain from disposal of fixed assets | - | 46 | - | (34 | ) | (24 | ) | |||||||||||||
Depreciation expense | 2,075 | 2,115 | 2,241 | 8,664 | 8,894 | |||||||||||||||
Impairment of right-of-use lease asset | - | - | - | - | 376 | |||||||||||||||
Total operating expenses | 29,277 | 24,797 | 23,390 | 100,393 | 78,254 | |||||||||||||||
Income (loss) from operations before equity income | 310 | 1,022 | (2,510 | ) | (1,570 | ) | (9,083 | ) | ||||||||||||
Net equity income from foreign joint venture operations: | ||||||||||||||||||||
Income from equity investment in foreign joint venture | 755 | 205 | 879 | 1,881 | 2,146 | |||||||||||||||
Foreign joint venture operating related expenses | (44 | ) | (91 | ) | (171 | ) | (283 | ) | (363 | ) | ||||||||||
Net equity income from foreign joint venture operations | 711 | 114 | 708 | 1,598 | 1,783 | |||||||||||||||
Income (loss) from operations | 1,021 | 1,136 | (1,802 | ) | 28 | (7,300 | ) | |||||||||||||
Other income (expense): | ||||||||||||||||||||
Interest expense, net | (154 | ) | (150 | ) | (135 | ) | (591 | ) | (324 | ) | ||||||||||
Interest expense, net - related parties | (50 | ) | (49 | ) | (136 | ) | (179 | ) | (577 | ) | ||||||||||
Other income (expense) | (86 | ) | (28 | ) | 27 | (185 | ) | 1,058 | ||||||||||||
Total other income (expense) | (290 | ) | (227 | ) | (244 | ) | (955 | ) | 157 | |||||||||||
Income (loss) from continuing operations before income tax expense | 731 | 909 | (2,046 | ) | (927 | ) | (7,143 | ) | ||||||||||||
Income tax expense (benefit) | 513 | (115 | ) | 258 | 265 | 487 | ||||||||||||||
Net income (loss) from continuing operations | 218 | 1,024 | (2,304 | ) | (1,192 | ) | (7,630 | ) | ||||||||||||
Loss from discontinued operations, net of tax | (553 | ) | (1,301 | ) | (40 | ) | (1,994 | ) | (168 | ) | ||||||||||
Net loss | $ | (335 | ) | $ | (277 | ) | $ | (2,344 | ) | $ | (3,186 | ) | $ | (7,798 | ) | |||||
Net income (loss) per common share: | ||||||||||||||||||||
Basic income (loss) from continuing operations | $ | 0.01 | $ | 0.06 | $ | (0.13 | ) | $ | (0.07 | ) | $ | (0.44 | ) | |||||||
Basic loss from discontinued operations | (0.03 | ) | (0.07 | ) | - | (0.11 | ) | (0.01 | ) | |||||||||||
Basic net loss per common share | (0.02 | ) | (0.02 | ) | (0.13 | ) | (0.17 | ) | (0.45 | ) | ||||||||||
Diluted income (loss) from continuing operations | $ | 0.01 | $ | 0.06 | $ | (0.13 | ) | $ | (0.07 | ) | $ | (0.44 | ) | |||||||
Diluted from discontinued operations | (0.03 | ) | (0.07 | ) | - | (0.11 | ) | (0.01 | ) | |||||||||||
Diluted net loss per common share | (0.02 | ) | (0.01 | ) | (0.13 | ) | (0.17 | ) | (0.45 | ) | ||||||||||
EBITDA | $ | 3,010 | $ | 3,223 | $ | 466 | $ | 8,507 | $ | 2,652 | ||||||||||
Adjusted EBITDA | $ | 3,915 | $ | 2,297 | $ | 716 | $ | 9,613 | $ | 5,177 | ||||||||||
Stabilis Solutions, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited, in thousands, except share and per share data)
| December 31, 2022 | December 31, 2021 | |||||||
| Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 11,451 | $ | 910 | ||||
Accounts receivable, net | ||||||||