Clean Energy Fuels Corp. (NASDAQ: CLNE) (Clean Energy or the
Company) today announced operating results for the fourth quarter
and year ended December 31, 2014.
Gallons delivered (defined below) for the fourth quarter of 2014
increased 30% to 72.4 million gallons, compared to 55.5 million
gallons delivered in the same period a year ago. For the year ended
December 31, 2014, gallons delivered totaled 265.1 million gallons,
up from 214.4 million gallons delivered in the year ended December
31, 2013.
Revenue for the fourth quarter of 2014 was $132.1 million,
compared to $85.0 million for the fourth quarter of 2013. Revenue
for the fourth quarter of 2014 included $28.4 million of excise tax
credits for alternative fuels other than ethanol (VETC),
representing all VETC revenue recognized for natural gas fuel sales
made in 2014, whereas revenue for the fourth quarter of 2013
included $7.3 million of VETC, representing VETC revenue for
natural gas fuel sales made in the fourth quarter of 2013.
Exclusive of VETC revenue in the fourth quarters of 2014 and 2013,
revenue increased $26 million, or 33%, in the fourth quarter of
2014 compared to the same period in 2013. The increase was
primarily attributable to increased volumes and station sales and
the addition of NG Advantage LLC (NG Advantage), a majority owned
subsidiary acquired in October 2014 that is engaged in the business
of transporting compressed natural gas in high-capacity trailers to
large industrial and institutional energy users, such as hospitals,
food processors, manufacturers and paper mills, that do not have
direct access to natural gas pipelines.
Revenue for 2014 totaled $428.9 million, compared to $352.5
million of revenue in 2013. When comparing periods, note that the
Company recognized revenue attributable to VETC of $28.4 million in
2014 and $45.4 million in 2013. The VETC in 2013 included $20.8
million related to natural gas fuel sales made in 2012. Excluding
VETC in 2014 and 2013, revenue increased $93.4 million, or 30%, in
2014 compared to 2013. The increase was primarily attributable to
increased volumes, station sales, compressor sales and the addition
of NG Advantage.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated “I’m very pleased with our continued
volume growth, strong station construction sales and continued
leveraging of our existing infrastructure. The enactment of the
alternative fuel excise tax credit at the end of 2014 was a nice
bump to our results for Q4 and 2014 which will also be a positive
cash inflow in 2015. Of course the energy sector remains under
pressure, but we are able to continue to offer a cleaner fuel and
maintain our economic advantage albeit at a slightly smaller
spread. We are still encouraged by the strong interest and
continued investments companies are making in natural gas as a
vehicle fuel, and particularly Clean Energy’s ability to provide
compressed natural gas as a power source to large industrial users
with our investment in NG Advantage.”
Adjusted EBITDA for the fourth quarter of 2014 totaled $37.2
million. This compares to Adjusted EBITDA of $(1.8) million in the
fourth quarter of 2013. Adjusted EBITDA for 2014 totaled $23.7
million, compared to $33.6 million in 2013. Adjusted EBITDA in the
fourth quarter and year ended December 31, 2014 included VETC
revenue of $28.4 million and a $12.0 million gain from the sale of
a subsidiary. Adjusted EBITDA in the fourth quarter and year ended
December 31, 2013 included VETC revenue of $7.3 million and $45.4
million, respectively. Adjusted EBITDA for 2013 also included a
$14.1 million gain from the sale of a subsidiary and a $4.7 million
gain on the Company’s sale of its ownership interest in its former
Peruvian joint venture. Adjusted EBITDA is described below and
reconciled to the GAAP measure net loss attributable to Clean
Energy Fuels Corp.
Non-GAAP income per share for the fourth quarter of 2014 was
$0.11, compared to non-GAAP (loss) per share for the fourth quarter
of 2013 of $(0.25). For 2014, non-GAAP (loss) per share was
$(0.76), compared to non-GAAP (loss) per share of $(0.44) for 2013.
Non-GAAP income (loss) per share for the fourth quarter and year
ended December 31, 2014 included VETC revenue of $28.4 million and
a $12.0 million gain from the sale of a subsidiary. Non-GAAP income
(loss) per share for the fourth quarter and year ended December 31,
2013 included VETC revenue of $7.3 million and $45.4 million,
respectively. Non-GAAP income (loss) per share in 2013 also
included a $14.1 million gain from the sale of a subsidiary and a
$4.7 million gain on the Company’s sale of its ownership interest
in its former Peruvian joint venture. Non-GAAP income (loss) per
share is described below and reconciled to the GAAP measure net
loss attributable to Clean Energy Fuels Corp.
On a GAAP basis, net income attributed to Clean Energy Fuels
Corp. for the fourth quarter of 2014 was $1.3 million, or $0.01 per
share, and included a non-cash gain of $0.3 million related to the
accounting treatment that requires Clean Energy to value its Series
I warrants and mark them to market, a non-cash charge of $2.3
million related to stock-based compensation, a $4.8 million charge
related to a service contract of the Company’s subsidiary IMW
Industries, Ltd. (IMW) that was not renewed and caused an
intangible asset impairment (IMW Impairment) , costs of $1.9
million attributed to executive officer transitions (Executive
Officer Transitions) , and $0.4 million in additional lease exit
charges related to the move of the Company’s headquarters (HQ Lease
Exit). This compares with a net loss for the fourth quarter of 2013
of $32.3 million, or $0.34 per share, that included a non-cash gain
of $0.1 million gain related to the valuation of the Series I
warrants, a non-cash charge of $5.7 million related to stock-based
compensation, foreign currency gains of $0.2 million on the
Company's purchase notes issued in September 2010 in connection
with the acquisition of the business of IMW (IMW Purchase Notes), a
$1.4 million write-down of the value of the shares the Company
expected to receive from Westport Innovations, Inc. (Westport
Holdback Shares) in connection with the Company’s sale of a former
subsidiary (WPRT Holdback Shares Write-Down), and a $1.3 million
charge related to the HQ Lease Exit.
Net loss attributable to Clean Energy Fuels Corp. for the year
ended December 31, 2014 was $89.7 million, or $0.96 per share,
which included a non-cash gain of $5.7 million related to the
valuation of the Series I warrants, a non-cash stock-based
compensation charge of $11.5 million, foreign currency losses of
$0.3 million on the IMW Purchase Notes, a $0.1 million charge
relating to the WPRT Holdback Shares Write-Down, a $4.7 million
charge related to a mining power project in Australia where IMW
incurred significant cost overruns (IMW Australia Project), a $4.8
million charge related to the IMW Impairment, costs of $1.9 million
related to Executive Officer Transitions, and a $1.3 million charge
related to the HQ Lease Exit. This compares with a net loss in the
year ended December 31, 2013 of $67.0 million, or $0.71 per share,
which included a non-cash gain of $0.9 million related to the
valuation of the Series I warrants, a non-cash stock-based
compensation charge of $23.0 million, foreign currency losses of
$0.5 million on the IMW Purchase Notes, a $1.4 million charge
relating to the WPRT Holdback Shares Write-Down, and a $1.3 million
charge related to the HQ Lease Exit.
Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements,
which statements are prepared and presented in accordance with
generally accepted accounting principles (GAAP), the Company uses
non-GAAP financial measures called non-GAAP earnings per share
(non-GAAP EPS or non-GAAP earnings/loss per share) and Adjusted
EBITDA. Management has presented non-GAAP EPS and Adjusted EBITDA
because it uses these non-GAAP financial measures to assess its
operational performance, for financial and operational
decision-making, and as a means to evaluate period-to-period
comparisons on a consistent basis. Management believes that these
non-GAAP financial measures provide meaningful supplemental
information regarding the Company’s performance by excluding
certain non-cash or non-recurring expenses that are not directly
attributable to its core operating results. In addition, management
believes these non-GAAP financial measures are useful to investors
because: (1) they allow for greater transparency with respect to
key metrics used by management in its financial and operational
decision-making; (2) they exclude the impact of non-cash or, when
specified, non-recurring items that are not directly attributable
to the Company’s core operating performance and that may obscure
trends in the core operating performance of the business; and (3)
they are used by institutional investors and the analyst community
to help them analyze the results of Clean Energy’s business. In
future quarters, the Company may make adjustments for other
non-recurring significant expenditures or significant non-cash
charges in order to present non-GAAP financial measures that the
Company’s management believes are indicative of the Company’s core
operating performance.
Non-GAAP financial measures have limitations as an analytical
tool and should not be considered in isolation from, or as a
substitute for, the Company’s GAAP results. The Company expects to
continue reporting non-GAAP financial measures, adjusting for the
items described below (or other items that may arise in the future
as the Company’s management deems appropriate), and the Company
expects to continue to incur expenses similar to the non-cash,
non-GAAP adjustments described below. Accordingly, unless otherwise
stated, the exclusion of these and other similar items in the
presentation of non-cash, non-GAAP financial measures should not be
construed as an inference that these costs are unusual, infrequent
or non-recurring. Non-GAAP EPS and Adjusted EBITDA are not
recognized terms under GAAP and do not purport to be an alternative
to GAAP earnings/loss per share or operating income (loss) or any
other GAAP measure as an indicator of operating performance.
Moreover, because not all companies use identical measures and
calculations, the presentation of non-GAAP EPS and Adjusted EBITDA
may not be comparable to other similarly titled measures of other
companies. Management compensates for these limitations by using
non-GAAP EPS and Adjusted EBITDA in conjunction with traditional
GAAP operating performance and cash flow measures.
Non-GAAP EPS
Non-GAAP EPS is defined as net income (loss) attributable to
Clean Energy Fuels Corp., plus stock-based compensation charges,
net of related tax benefits, plus or minus any mark-to-market
losses or gains on the Series I warrants, plus or minus the foreign
currency losses or gains on the IMW Purchase Notes, plus the WPRT
Holdback Shares Write-Down, plus the IMW Australia Project, plus
the IMW Impairment, plus Executive Officer Transitions and plus the
HQ Lease Exit, the total of which is divided by the Company’s
weighted average shares outstanding on a diluted basis. The
Company’s management believes that excluding non-cash charges
related to stock-based compensation provides useful information to
investors because the varying available valuation methodologies,
the volatility of the expense (which depends on market forces
outside of management’s control), the subjectivity of the
assumptions and the variety of award types that a company can use
under the relevant accounting guidance may obscure trends in the
Company’s core operating performance. Similarly, the Company’s
management believes that excluding the non-cash, mark-to-market
losses or gains on the Series I warrants is useful to investors
because the valuation of the Series I warrants is based on a number
of subjective assumptions, the amount of the loss or gain is
derived from market forces outside of management’s control, and it
enables investors to compare the Company’s performance with other
companies that have different capital structures. The Company’s
management believes that excluding the foreign currency gains and
losses on the IMW Purchase Notes provides useful information to
investors as the amounts are based on market conditions outside of
management’s control and the amounts relate to financing the
acquisition of the IMW business as opposed to the core operations
of the Company. The Company’s management believes that excluding
the WPRT Holdback Shares Write-Down, the IMW Australia Project, the
IMW Impairment, the Executive Officer Transition and the HQ Lease
Exit amounts is useful to investors because they are not part of or
representative of the core operations of the Company.
The table below shows non-GAAP EPS and also reconciles these
figures to the GAAP measure net income (loss) attributable to Clean
Energy Fuels Corp.:
Three Months Ended
Dec. 31,
Year Ended
Dec. 31,
(in 000s, except per-share amounts) 2013 2014
2013 2014 Net Income (Loss)
Attributable to Clean Energy Fuels Corp. $ (32,318 ) $ 1,333 $
(66,968 ) $ (89,659 ) Stock Based Compensation, Net of Tax Benefits
5,661 2,307 23,008 11,514 Mark-to-Market (Gain) on Series I
Warrants (77 ) (324 ) (938 ) (5,748 ) Foreign Currency Loss on IMW
Purchase Notes 235 — 526 343 WPRT Holdback Shares Write-Down 1,383
— 1,383 122 IMW Australia Project — — — 4,657 IMW Impairment —
4,772 — 4,772 Executive Officer Transitions — 1,883 — 1,883 HQ
Lease Exit 1,314 408 1,314 1,284 Adjusted Net
Income (Loss) $ (23,802 ) $ 10,379 $ (41,675 ) $ (70,832 )
Diluted Weighted Average Common Shares Outstanding 93,360,940
91,156,853 93,958,758 93,678,432
Non-GAAP Income (Loss)
Per Share $ (0.25 ) $ 0.11 $ (0.44 ) $ (0.76 )
Adjusted EBITDA
Adjusted EBITDA is defined as net income (loss) attributable to
Clean Energy Fuels Corp., plus or minus income tax expense or
benefit, plus or minus interest expense or income, net, plus
depreciation and amortization expense, plus or minus the foreign
currency losses or gains on the Company's IMW Purchase Notes, plus
stock-based compensation charges, net of related tax benefits, plus
or minus any mark-to-market losses or gains on the Series I
warrants, plus the WPRT Holdback Shares Write-Down, plus the IMW
Australia Project, plus the IMW Impairment, plus Executive Officer
Transitions and plus the HQ Lease Exit. The Company's management
believes that Adjusted EBITDA provides useful information to
investors for the same reasons discussed above for non-GAAP EPS. In
addition, management internally uses Adjusted EBITDA to determine
elements of executive and employee compensation.
The table below shows Adjusted EBITDA and also reconciles these
figures to the GAAP measure net loss attributable to Clean Energy
Fuels Corp.:
Three Months Ended
Dec. 31,
Year Ended
Dec. 31,
(in 000s) 2013 2014
2013 2014 Net Income (Loss)
Attributable to Clean Energy Fuels Corp. $ (32,318 ) $ 1,333 $
(66,968 ) $ (89,659 ) Income Tax Expense (Benefit) 1,059 (845 )
3,715 1,075 Interest Expense, Net 10,516 14,041 29,287 44,357
Depreciation and Amortization 10,459 13,610 42,318 49,058 Foreign
Currency Loss on IMW Purchase Notes 235 — 526 343 Stock Based
Compensation, Net of Tax Benefits 5,661 2,307 23,008 11,514
Mark-to-Market (Gain) on Series I Warrants (77 ) (324 ) (938 )
(5,748 ) WPRT Holdback Shares Write-Down 1,383 — 1,383 122 IMW
Australia Project — — — 4,657 IMW Impairment — 4,772 — 4,772
Executive Officer Transitions — 1,883 — 1,883 HQ Lease Exit
1,314 408 1,314 1,284
Adjusted EBITDA $
(1,768 ) $ 37,185 $ 33,645 $ 23,658
Gallons Delivered
The Company defines “gallons delivered” as its gallons of
compressed natural gas (CNG), liquefied natural gas (LNG) and
renewable natural gas (RNG), along with its gallons associated with
providing operations and maintenance services, delivered to its
customers during the applicable period.
Today’s Conference Call
The Company will host an investor conference call today at 4:30
p.m. Eastern time (1:30 p.m. Pacific). Investors interested in
participating in the live call can dial 1.877.407.4018 from the
U.S., and international callers can dial 1.201.689.8471. A
telephone replay will be available approximately two hours after
the call concludes, through Thursday, March 26, 2015, which can be
reached by dialing 1.877.870.5176 from the U.S., or 1.858.384.5517
from international locations, and entering Replay Pin Number
13600634. There also will be a simultaneous, live webcast available
on the Investor Relations section of the Company’s web site at
www.cleanenergyfuels.com, which will be available for replay for 30
days.
About Clean Energy Fuels
Clean Energy Fuels Corp. (NASDAQ: CLNE) is the largest provider
of natural gas fuel for transportation in North America. We build
and operate CNG and LNG fueling stations; manufacture CNG and LNG
equipment and technologies for ourselves and other companies;
develop RNG production facilities; and deliver more CNG, LNG, and
Redeem RNG fuel than any other company in the U.S. For more
information, visit www.cleanenergyfuels.com.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 that involve
risks, uncertainties and assumptions, such as statements regarding
market adoption of natural gas as a vehicle fuel, oil, gasoline,
diesel and natural gas prices and the Company’s ability to continue
to offer natural gas at a discount to gasoline and diesel,
continued interest and investment in natural gas as a vehicle fuel,
including government incentives promoting the use of cleaner fuels,
the strength of the Company’s key markets and businesses, the
benefits of natural gas relative to gasoline, diesel and other
vehicle fuels, the Company’s ability to successfully enter new
businesses, such as the “virtual natural gas pipelines” business of
NG Advantage, build, sell and open new natural gas fueling stations
and add incremental volume to the Company’s fueling infrastructure,
the Company establishing relationships with new customers and
expanding relationships with existing customers, and future growth
and sales opportunities in all of the Company’s key customer
markets, which include trucking, refuse, airport, taxi, transit,
ready mix and off-system sales. Actual results and the timing of
events could differ materially from those anticipated in these
forward-looking statements as a result of several factors
including, but not limited to, future supply, demand, use and
prices of crude oil and natural gas and fossil and alternative
fuels, including gasoline, diesel, natural gas, biodiesel, ethanol,
electricity, and hydrogen, the Company’s ability to recognize the
anticipated benefits of building CNG and LNG stations, the
availability and deployment of, as well as the demand for, natural
gas engines that are well-suited for the U.S. heavy-duty truck
market, future availability of capital, including equity or debt
financing, as needed to fund the growth of the Company’s business,
the Company’s ability to efficiently manage any growth it might
experience and retain and hire key personnel, the acceptance and
availability of natural gas vehicles in the Company’s markets, the
availability of tax and related government incentives for natural
gas fueling and vehicles, changes to federal, state or local fuel
emission standards, the Company’s ability to capture a substantial
share of the anticipated growth in the market for natural gas fuel
and otherwise compete successfully, the Company’s ability to manage
risks and uncertainties related to its international operations,
construction and permitting delays at station construction
projects, the Company’s ability to integrate acquisitions and
investments, such as its investment in NG Advantage, compliance
with governmental regulations, the Company’s ability to source and
supply sufficient LNG to meet the needs of its business, the
Company’s ability to effectively manage its current LNG plants, and
the Company’s ability to manage and grow its RNG business. The
forward-looking statements made herein speak only as of the date of
this press release and the Company undertakes no obligation to
update publicly such forward-looking statements to reflect
subsequent events or circumstances, except as otherwise required by
law. Additionally, the Company’s Form 10-K, filed on February 26,
2015 with the Securities and Exchange Commission (www.sec.gov),
contains risk factors that may cause actual results to differ
materially from the forward-looking statements contained in this
press release.
Clean Energy Fuels Corp. and
Subsidiaries
Consolidated Balance Sheets
December 31, 2013 and 2014
(Unaudited)
(In thousands, except share
data)
December 31,2013 December
31,2014 Assets Current assets: Cash and cash
equivalents $ 240,033 $ 92,381 Restricted cash 8,403 6,012
Short-term investments 138,240 122,546
Accounts receivable, net of allowance for
doubtful accounts of $832 and $752 as ofDecember 31, 2013 and
December 31, 2014, respectively
53,473 81,970 Other receivables 26,285 56,223 Inventory, net 33,822
34,696 Prepaid expenses and other current assets 20,840 19,811
Total current assets 521,096 413,639 Land, property and equipment,
net 487,854 514,269 Notes receivable and other long-term assets
73,697 71,904 Investments — 6,510 Goodwill 88,548 98,726 Intangible
assets, net 79,770 55,361 Total assets $ 1,250,965 $ 1,160,409
Liabilities and Stockholders’ Equity Current liabilities:
Current portion of long-term debt and capital lease obligations $
23,401 $ 4,846 Accounts payable 33,541 43,922 Accrued liabilities
46,745 56,760 Deferred revenue 16,419 14,683 Total current
liabilities 120,106 120,211 Long-term debt and capital lease
obligations, less current portion 532,017 500,824 Long-term debt,
related party 65,000 65,000 Other long-term liabilities 15,304
9,339 Total liabilities 732,427 695,374 Commitments and
contingencies Stockholders’ equity:
Preferred stock, $0.0001 par value.
Authorized 1,000,000 shares; issued and outstanding no shares
— —
Common stock, $0.0001 par value.
Authorized 149,000,000 shares, issued andoutstanding 89,364,397
shares at December 31, 2013; authorized224,000,000 shares, issued
and outstanding 90,203,344 shares at December 31, 2014
9 9 Additional paid-in capital 883,045 898,106 Accumulated deficit
(367,782 ) (457,441 ) Accumulated other comprehensive loss (700 )
(3,248 ) Total Clean Energy Fuels Corp. stockholders’ equity
514,572 437,426 Noncontrolling interest in subsidiary 3,966 27,609
Total stockholders’ equity 518,538 465,035 Total liabilities and
stockholders’ equity $ 1,250,965 $ 1,160,409
Clean Energy Fuels Corp. and
Subsidiaries
Consolidated Statements of
Operations
For the Three Months and Year Ended
December 31, 2013 and 2014
(Unaudited)
(In thousands, except share and per
share data)
Three Months EndedDecember 31, Year
EndedDecember 31, 2013 2014 2013
2014 Revenue: Product revenues $ 73,566 $ 117,489 $ 310,813
$ 380,199 Service revenues 11,429 14,623 41,662 48,741 Total
revenues 84,995 132,112 352,475 428,940 Operating expenses: Cost of
sales (exclusive of depreciation and amortization shown separately
below): Product cost of sales 55,913 75,399 213,593 291,462 Service
cost of sales 1,360 4,528 11,169 17,325 Derivative gains: Series I
warrant valuation (77 ) (324 ) (938 ) (5,748 ) Selling, general and
administrative 36,450 30,305 138,024 126,435 Depreciation and
amortization 10,459 13,610 42,318 49,058 Impairment of long-lived
asset — 4,772 — 4,772 Total operating expenses 104,105 128,290
404,166 483,304 Operating (loss) income (19,110 ) 3,822 (51,691 )
(54,364 ) Interest expense, net (10,516 ) (14,041 ) (29,287 )
(44,357 ) Other income (expense), net (213 ) (1,526 ) (970 ) (2,571
) Loss from equity method investment — (490 ) (76 ) (490 ) Gain
from sale of equity method investment — — 4,705 — Gain (loss) from
sale of subsidiary (1,383 ) 11,998 14,115 11,998 Loss before income
taxes (31,222 ) (237 ) (63,204 ) (89,784 ) Income tax (expense)
benefit (1,059 ) 845 (3,715 ) (1,075 ) Net (loss) income (32,281 )
608 (66,919 ) (90,859 ) Loss (income) of noncontrolling interest
(37 ) 725 (49 ) 1,200 Net (loss) income attributable to Clean
Energy Fuels Corp. $ (32,318 ) $ 1,333 $ (66,968 ) $ (89,659 )
(Loss) income per share attributable to Clean Energy Fuels Corp.:
Basic $ (0.34 ) $ 0.01 $ (0.71 ) $ (0.96 ) Diluted $ (0.34 ) $ 0.01
$ (0.71 ) $ (0.96 ) Weighted-average common shares outstanding:
Basic 94,360,940 91,153,853 93,958,758 93,678,432 Diluted
94,360,940
96,584,853
93,958,758 93,678,432
Included in net (loss) income are the
following amounts (in millions):
Three Months
Ended
Year Ended Dec. 31, Dec. 31, 2013
2014 2013
2014 Construction Revenues $ 6.9 14.6 $ 27.1 67.4
Construction Cost of Sales
(5.8
)
(11.9 ) (22.4 ) (56.3 ) Fuel Tax Credits 7.3 28.4 45.4 28.4
Stock-based Compensation Expense, Net of Tax Benefits (5.7 ) (2.3 )
(23.0 ) (11.5 )
Clean Energy Fuels Corp.Investor Contact:Tony
KritzerDirector of Investor Communications949.437.1403orNews
Media Contact:Gary FosterSenior Vice President, Corporate
Communications949.437.1113
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