false 0001043186 0001043186 2024-08-07 2024-08-07
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): August 7, 2024
 
Stabilis Solutions, Inc.
(Exact name of registrant as specified in its charter)
 
Florida
001-40364
59-3410234
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
 
11750 Katy Freeway Suite 900
Houston, Texas
77079
(Address of principal executive offices)
(Zip Code)
 
Registrant’s telephone number, including area code: 832-456-6500
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock, $.001 par value
SLNG
The Nasdaq Stock Market LLC
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 

 
Item 2.02. Results of Operations and Financial Condition.
 
On August 7, 2024, Stabilis Solutions, Inc. (the “Company”) issued a press release announcing information regarding its results of operations and financial condition for the three and six months ended June 30, 2024. A copy of the Company’s press release is furnished as Exhibit 99.1 to this Form 8-K.
 
The Company’s press release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with United States generally accepted accounting principles, or ("GAAP"). Pursuant to the requirements of Regulation G, the Company has provided within the press release quantitative reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
 
The information in this Current Report, including the exhibit, is being furnished pursuant to Item 7.01 of Form 8-K and General Instruction B.2 thereunder. The information in this Current Report shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
 
Item 7.01 Regulation FD Disclosure.
 
The information set forth under Item 2.02 is incorporated by reference as if fully set forth herein.
 
Item 9.01 Financial Statements and Exhibits.
 
Exhibits:
 
Exhibit No.
Description
   
99.1
   
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
STABILIS SOLUTIONS, INC.
 
By: /s/Andrew L. Puhala
 
Andrew L. Puhala
 
Chief Financial Officer
 
Date: August 7, 2024
 
 

Exhibit 99.1

 

logo.jpg

 

 

 

 

 

STABILIS SOLUTIONS ANNOUNCES SECOND QUARTER 2024 RESULTS

 

Houston, August 7, 2024 — Stabilis Solutions, Inc., (“Stabilis” or the “Company”) (Nasdaq: SLNG), a leading provider of clean fueling, production, storage, and last mile delivery solutions for many of the world’s most recognized, high-performance brands, today announced financial results for the second quarter ended June 30, 2024.

 

SECOND QUARTER PERFORMANCE HIGHLIGHTS  

 

 

Strong demand and higher utilization at our Texas liquefaction plant led to a year-over-year increase of 45.3% in LNG volumes delivered and an improvement of $2.2 million in net income

 

Record second quarter Adjusted EBITDA of $2.1 million, an increase of $2.2 million on a year-over-year basis

 

$5.0 million of cash flow from operations, an increase of 32.3% on a year-over-year basis

 

$15.9 million of cash and availability under our credit agreements with cash and cash equivalents exceeding debt outstanding resulting in a net cash positive balance sheet as of June 30, 2024

 

MANAGEMENT COMMENTARY

 

“We delivered strong second quarter results due to the ongoing efforts of our entire team to transition our company into one of North America’s largest providers of liquefied natural gas fueling, production, storage, and last mile delivery solutions.” said Westy Ballard, President and Chief Executive Officer. “These efforts have optimized our existing operations and resulted in longer-term customer relationships, higher asset utilization, more predictable cash flows, improved liquidity, and a healthier leverage profile.”

 

Ballard continued, “Moving forward, we remain focused on leveraging our proven business model to further develop and deliver a portfolio of opportunities across our marine, commercial and industrial business platforms.”

 

STRATEGIC AND OPERATIONAL UPDATE

 

 

Strengthening balance sheet and liquidity profile. At the end of the second quarter, the Company’s total cash and available liquidity under its credit agreements improved to $15.9 million and Stabilis had a trailing twelve-month net leverage ratio of -0.3x.

 

 

Increased storage capacity at Texas liquefaction plant. During the quarter, the Company commenced the phased expansion of storage capacity from 270,000 gallons to 630,000 gallons at its liquefaction facility in Texas, which will further bolster its inland LNG supply chain to address increased demand and provide redundancy for its business as it expands its infrastructure to the Gulf Coast waterfront.

 

 

Outstanding execution of the industrys first ever LNG bunkering operation in Galveston, Texas and preparing for demand growth for LNG as marine bunker fuel. During the quarter, the Company executed on its Gulf Coast LNG fueling contract with Carnival Corporation, which began late in the fourth quarter of 2023. Additionally, in leveraging its experience servicing a world-class cruise line operator like Carnival, the Company is finalizing plans to build the first dedicated LNG bunkering facility along the U.S. Gulf Coast and is in discussions with several potential marine customers in strategic ports across the U.S. for further expansion.

 

 

Contract awards and capitalizing on multi-year investment cycle across multiple sectors in its commercial & industrial platform. During the quarter, Stabilis' announced a 14-month contract extension of an LNG supply agreement for primary power generation and continues to further expand its operations with the expectation to deliver more than 235,000 megawatts of energy in 2024 to peak load, intermittent, distributed, and emergency relief power customers across multiple industries.

 

Additionally, during the quarter, the Company expanded its aerospace customer base and anticipates its 2024 aerospace market-related volumes will increase by more than 76% over the prior year, representing approximately 10% of its 2024 full-year sales volumes. Over the next five years, domestic demand for high-purity LNG is expected to increase by 65% to approximately 25 million gallons annually. Stabilis estimates that it is among the largest suppliers of high-purity LNG to space launch providers in the U.S., currently supplying approximately 40% of the market, with the potential to significantly increase its market share subject to future investments in liquefaction capacity.

 

 

 

SECOND QUARTER CONFERENCE CALL AND WEBCAST

 

Stabilis will host a conference call on Wednesday August 8, 2024, at 9:00 am ET to review the Company’s financial results, discuss recent events and conduct a question-and-answer session.

 

A webcast of the conference call will be available in the Investor Relations section of the Company’s corporate website at https://investors.stabilis-solutions.com/events. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.

 

To participate in the live teleconference:

 

Domestic Live: 888-506-0062
International Live: 973-528-0011
Conference ID: 300549

 

To listen to a replay of the teleconference, which will be available through August 15, 2024:

 

Domestic Live: 877-481-4010
International Live: 919-882-2331
Replay ID: 50991

 

 

ABOUT STABILIS SOLUTIONS

 

Stabilis Solutions, Inc. is a leading provider of clean fueling, production, storage, and last mile delivery solutions to many of the world’s most recognized, high-performance brands. To learn more, visit www.stabilis-solutions.com.

 

 

CAUTIONARY STATEMENTS 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 7, 2024 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.

 

 

# # # # #

Investor Contact:

Andrew Puhala

Chief Financial Officer

832-456-6502

ir@stabilis-solutions.com

 

 

 

 

 

Stabilis Solutions, Inc. and Subsidiaries

Selected Consolidated Operating Results

(Unaudited, in thousands, except share and per share data)

 

   

Three Months Ended

   

Six Months Ended

 
   

June 30,

   

March 31,

   

June 30,

   

June 30,

   

June 30,

 
   

2024

   

2024

   

2023

   

2024

   

2023

 

Revenues:

                                       

Revenues

  $ 18,598     $ 19,770     $ 12,907     $ 38,368     $ 39,749  

Operating expenses:

                                       

Cost of revenues

    13,550       13,514       10,585       27,064       30,855  

Change in unrealized (gain) loss on natural gas derivatives

    (82 )     (252 )     (224 )     (334 )     (55 )

Selling, general and administrative expenses

    3,331       3,456       3,043       6,787       6,422  

Gain from disposal of fixed assets

    (72 )     (127 )           (199 )      

Depreciation expense

    1,768       1,800       1,992       3,568       4,003  

Total operating expenses

    18,495       18,391       15,396       36,886       41,225  

Income (loss) from operations before equity income

    103       1,379       (2,489 )     1,482       (1,476 )

Net equity income from foreign joint venture operations

    295       197       685       492       1,030  

Income (loss) from operations

    398       1,576       (1,804 )     1,974       (446 )

Other income (expense):

                                       

Interest income (expense), net

    28       (4 )     (147 )     24       (297 )

Interest (expense), net - related parties

                (24 )           (56 )

Other (expense), net

    26       (21 )     (40 )     5       (124 )

Total other income (expense)

    54       (25 )     (211 )     29       (477 )

Net income (loss) before income tax expense

    452       1,551       (2,015 )     2,003       (923 )

Income tax expense

    425       82       159       507       167  

Net income (loss)

  $ 27     $ 1,469     $ (2,174 )   $ 1,496     $ (1,090 )
                                         

Net income (loss) per common share:

                                       

Basic and diluted per common share

  $ 0.00     $ 0.08     $ (0.12 )   $ 0.08     $ (0.06 )
                                         

EBITDA

  $ 2,192     $ 3,355     $ 148     $ 5,547     $ 3,433  

Adjusted EBITDA

  $ 2,110     $ 3,103     $ (76 )   $ 5,213     $ 3,378  

 

 

Stabilis Solutions, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited, in thousands, except share and per share data)

 

   

June 30,

   

December 31,

 
   

2024

   

2023

 

Assets

 

Current assets:

               

Cash and cash equivalents

  $ 11,483     $ 5,374  

Accounts receivable, net

    5,933       7,752  

Inventories, net

    155       169  

Prepaid expenses and other current assets

    1,325       1,677  

Total current assets

    18,896       14,972  

Property, plant and equipment:

               

Cost

    110,426       110,646  

Less accumulated depreciation

    (62,057 )     (61,167 )

Property, plant and equipment, net

    48,369       49,479  

Goodwill

    4,314       4,314  

Investments in foreign joint ventures

    10,541       12,009  

Right-of-use assets and other noncurrent assets

    453       525  

Total assets

  $ 82,573     $ 81,299  

Liabilities and Stockholders’ Equity

 

Current liabilities:

               

Accounts payable

  $ 6,607     $ 5,707  

Accrued liabilities

    3,614       4,166  

Current portion of long-term notes payable

    1,216       1,682  

Current portion of finance and operating lease obligations

    82       164  

Total current liabilities

    11,519       11,719  

Long-term notes payable, net of current portion and debt issuance costs

    7,378       7,747  

Long-term portion of finance and operating lease obligations

          21  

Total liabilities

    18,897       19,487  

Commitments and contingencies

               

Stockholders’ Equity:

               

Common stock; $0.001 par value, 37,500,000 shares authorized, 18,585,014 and 18,573,391 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

    19       19  

Additional paid-in capital

    102,839       102,057  

Accumulated other comprehensive loss

    (432 )     (18 )

Accumulated deficit

    (38,750 )     (40,246 )

Total stockholders’ equity

    63,676       61,812  

Total liabilities and stockholders’ equity

  $ 82,573     $ 81,299  

 

 

Stabilis Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

 

   

Three Months Ended

   

Six Months Ended

 
   

June 30,

   

March 31,

   

June 30,

   

June 30,

   

June 30,

 
   

2024

   

2024

   

2023

   

2024

   

2023

 

Cash flows from operating activities:

                                       

Net income (loss) from operations

  $ 27     $ 1,469     $ (2,174 )   $ 1,496     $ (1,090 )

Adjustments to reconcile net income (loss) from operations to net cash provided by operating activities:

                                       

Depreciation

    1,768       1,800       1,992       3,568       4,003  

Stock-based compensation expense

    408       383       593       791       1,182  

Bad debt expense

    (100 )     168       -       68        

Gain from disposal of assets

    (72 )     (127 )     -       (199 )      

Income from equity investment in joint venture

    (340 )     (247 )     (741 )     (587 )     (1,134 )

Cash settlements from natural gas derivatives, net

    (359 )     -       -       (359 )      

Realized and unrealized losses on natural gas derivatives, net

    30       -       70       30       491  

Distributions from equity investment in joint venture

    1,716       -       813       1,716       813  

Changes in operating assets and liabilities:

    -       -       -                  

Accounts receivable

    (228 )     1,964       4,964       1,736       7,008  

Prepaid expenses and other current assets

    445       235       320       680       827  

Accounts payable and accrued liabilities

    1,679       (1,812 )     (2,024 )     (133 )     (8,385 )

Other

    64       96       (4 )     160       187  

Net cash provided by operating activities

    5,038       3,929       3,809       8,967       3,902  

Cash flows from investing activities:

                                       

Acquisition of fixed assets

    (1,376 )     (873 )     (1,484 )     (2,249 )     (5,211 )

Proceeds from sale of assets

    72       207             279        

Net cash used in investing activities

    (1,304 )     (666 )     (1,484 )     (1,970 )     (5,211 )

Cash flows from financing activities:

                                       

Payments on short- and long-term notes payable

    (529 )     (346 )     (366 )     (875 )     (731 )

Payments on notes payable from related parties

                (604 )           (1,200 )

Employee tax payments from restricted stock withholdings

          (9 )     (108 )     (9 )     (108 )

Net cash used in financing activities

    (529 )     (355 )     (1,078 )     (884 )     (2,039 )

Effect of exchange rate changes on cash

    (8 )     4       13       (4 )     18  

Net increase (decrease) in cash and cash equivalents

    3,197       2,912       1,260       6,109       (3,330 )

Cash and cash equivalents, beginning of period

    8,286       5,374       6,861       5,374       11,451  

Cash and cash equivalents, end of period

  $ 11,483     $ 8,286     $ 8,121     $ 11,483     $ 8,121  

 

 

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 (loss) 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 income (loss), the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA (in thousands).

 

   

Three Months Ended

   

Six Months Ended

 
   

June 30,

   

March 31,

   

June 30,

   

June 30,

   

June 30,

 
   

2024

   

2024

   

2023

   

2024

   

2023

 

Net income (loss)

  $ 27     $ 1,469     $ (2,174 )   $ 1,496     $ (1,090 )

Depreciation

    1,768       1,800       1,992       3,568       4,003  

Interest expense, net

    (28 )     4       171       (24 )     353  

Income tax expense

    425       82       159       507       167  

EBITDA

    2,192       3,355       148       5,547       3,433  

Special items*

    (82 )     (252 )     (224 )     (334 )     (55 )

Adjusted EBITDA

  $ 2,110     $ 3,103     $ (76 )   $ 5,213     $ 3,378  

 

 

*

Special items for all periods presented consist of adjustments related to unrealized (gain)/loss on natural gas derivatives.

 

 

# # # # #

 
v3.24.2.u1
Document And Entity Information
Aug. 07, 2024
Document Information [Line Items]  
Entity, Registrant Name Stabilis Solutions, Inc.
Document, Type 8-K
Document, Period End Date Aug. 07, 2024
Entity, Incorporation, State or Country Code FL
Entity, File Number 001-40364
Entity, Tax Identification Number 59-3410234
Entity, Address, Address Line One 11750 Katy Freeway Suite 900
Entity, Address, City or Town Houston
Entity, Address, State or Province TX
Entity, Address, Postal Zip Code 77079
City Area Code 832
Local Phone Number 456-6500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol SLNG
Security Exchange Name NASDAQ
Entity, Emerging Growth Company false
Amendment Flag false
Entity, Central Index Key 0001043186

Grafico Azioni Stabilis Solutions (NASDAQ:SLNG)
Storico
Da Ago 2024 a Set 2024 Clicca qui per i Grafici di Stabilis Solutions
Grafico Azioni Stabilis Solutions (NASDAQ:SLNG)
Storico
Da Set 2023 a Set 2024 Clicca qui per i Grafici di Stabilis Solutions