Genie Energy and its Subsidiaries

Genie Energy stock has increased by more than 70% over the last year. In a recent article for Seeking Alpha, a trader discusses the company. One of Genie’s subsidiaries is IDT Energy.

According to the article, IDT is “a stable cash flow business that generates about $25 million in annual EBITDA and all the revenues ($230 million in revenues in 2012) at GNE currently… IDT Energy made $25m in EBITDA in 2012, up 27% year over year. I would note that the company is investing significantly to grow this business but all the “investing” costs are in sales and marketing and are expensed fully in the quarter incurred, thereby, reducing the reported earnings of this entity while they grow it, yet they still made $25m in EBITDA in 2012.”

IDT Energy Ready to Create Genie Energy Subsidiary

An initial registration statement has been filed by Genie Energy, which is a completely owned subsidiary of IDT Energy. The  filing of the statement, which includes a document of description,  is in preparation for the awaited spin-off of Genie and the announcement to the stockholders of IDT Corporation.

It is possible to view the filed statements through the website of the Securities and Exchange Commission.

Howard Jonas, CEO and Chairman of IDT Energy explained the decision of his company to create Genie:

“The spin-off of Genie is one of the key strategic moves we announced last year to enable stockholders to realize the inherent value in IDT’s businesses.”