Reports Year to Date Revenue Growth of 30%
Houston, Texas, November 12, 2019 — Stabilis Energy, Inc., (“Stabilis”) (OTCQX: SLNG) today reported its financial results for its 3rd quarter ended September 30, 2019 (“current quarter”). Three Month Results for the Period Ending September 30, 2019 Stabilis reported revenues of $10.5 million, an increase of 31% compared to the quarter ended September 30, 2018 (“prior year quarter”) driven by a 22% increase in LNG gallons sold and the closing of the Company’s business combination with American Electric Technologies (“AETI”) on July 26, 2019. Revenues from Stabilis’ LNG segment increased $1.1 million or 14% due to increased production at the George West liquefaction facility, partially offset by a temporary reduction of activity with a large LNG distribution customer. Utilization of the George West liquefier averaged 83% in the current quarter versus 55% in the prior year quarter driven by increased revenue with customers in industrial end markets and Mexico. AETI contributed $1.4 million of revenue in the current quarter. Adjusted Earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) was $0.3 million in the current quarter vs. $0.2 million in the prior year quarter. Net loss for the current quarter was $3.4 million compared to a net loss of $3.2 million in the prior year quarter. The current quarter included approximately $1.1 million of costs related to transactions closed during the quarter and costs related to our listing on a major stock exchange.
Nine Month Results for the Period Ending September 30, 2019
For the first nine months of 2019, Stabilis reported revenues of $34.6 million, an increase of 30% compared to the first nine months of 2018. Revenues from Stabilis LNG business increased $6.6 million or 25%. Utilization of the George West liquefier averaged 72% for the first 9 months of 2019 versus 46% for the first nine months of 2018. Adjusted EBITDA for the first nine months of 2019 was $4.4 million, a $2.5 million or 131% improvement from the same period in 2018. Net loss for the first nine months was $5.0 million compared to a net loss of $8.2 million for the same period last year, an improvement of $3.2 million. “We are pleased with the continued growth in our core LNG business, as well as with the growth opportunities we see in front of us as we expand into the Mexican market,” said Jim Reddinger, President and Chief Executive Officer. “Our pipeline of LNG production and distribution investment opportunities is robust and growing, and we believe that we will be in a position to move forward on one or more of these opportunities in the near future.”
Management will conduct a conference call on Wednesday, November 13, 2019 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 should dial +1 844-369-8770. International callers should dial +1 862-298-0840. A replay of the call will be available until November 20, 2019. Individuals in the United States and Canada who wish to listen to the replay should dial +1 877-481-4010; passcode 56767. International callers should dial +1 919-882-2331; passcode 56767. A replay of the call also will be available on the Stabilis website (www.stabilisenergy.com).
Stabilis Energy, Inc. is a vertically integrated provider of small-scale liquefied natural gas (“LNG”) production, distribution and fueling services to multiple end markets in North America. Stabilis has safely delivered over 200 million gallons of LNG through more than 20,000 truck deliveries during its 15-year operating history in the LNG industry, which it believes makes it one of the largest and most experienced small-scale LNG providers in North America. Stabilis’ customers use LNG as a fuel source in a variety of applications in the industrial, energy, mining, utilities and pipelines, commercial, and high horsepower transportation markets. Stabilis’ customers use LNG as an alternative to traditional fuel sources, such as distillate fuel oil and propane, to lower fuel costs and reduce harmful environmental emissions. Stabilis’ customers also use LNG as a “virtual pipeline” solution when natural gas pipelines are not available or volumes are curtailed. To learn more, visit www.stabilisenergy.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,” “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 are contained in the “Risk Factors” section of our Registration Statement on Form S-1/A filed with the Securities and Exchange Commission on October 22, 2019. All subsequent written and oral forward-looking statements concerning Stabilis, or other matters and 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.