Clean Energy Fuels Corp. (NASDAQ: CLNE) (Clean Energy or the
Company) today announced operating results for the third quarter
ended September 30, 2015.
Gallons delivered (defined below) for the third quarter of 2015
increased 17% to 80.6 million gallons, compared to 68.6 million
gallons delivered in the same period a year ago. Gallons delivered
for the nine months ended September 30, 2015 increased 19% to
230.2 million gallons, compared to 192.7 million gallons delivered
in the same period a year ago.
Revenue for the third quarter ended September 30, 2015 was
$92.3 million, a decrease of $11.1 million or 11% compared to
$103.4 million for the third quarter of 2014. Approximately $5.7
million of the decrease was the result of lower effective pricing
on gallons delivered which was impacted by lower commodity costs in
2015 compared to 2014. Construction revenue in the third quarter of
2015 was $10.3 million less than construction revenue in the third
quarter of 2014, principally due to a product mix favoring project
upgrades for existing customers in 2015 versus standalone station
builds in the same period in 2014. Revenue for Clean Energy
Compression (formerly IMW), Clean Energy’s compressor manufacturing
subsidiary, decreased by $6.4 million when compared to the same
period in 2014 due to the global decline in oil prices, the
strength of the U.S. dollar, and slower than expected sales in
China. Revenue increased approximately $9.8 million from
incremental volumes delivered in the third quarter of 2015 compared
to the same period in 2014.
Revenue for the nine months ended September 30, 2015 was
$265.0 million, a decrease of 11% compared to $296.8 million a year
ago. This decrease was attributed to lower effective pricing
impacted by lower commodity costs, lower construction and Clean
Energy Compression revenue, partially offset by higher revenue on
increased volumes similar to the factors impacting the third
quarter of 2015.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated “We are making great progress in
leveraging our business model as we grew volumes and generated
positive adjusted EBITDA this quarter, while operating in this
prolonged low oil price environment. Our customers and prospects
continue to see the full benefits of using cleaner and
environmentally favorable natural gas as their fuel source in
addition to the favorable economics. We are pleased to see a
building momentum with our Redeem™ renewable natural gas that's 90%
cleaner than diesel and offers fleets like UPS and Santa Monica's
Big Blue Bus a dramatic and immediate improvement to their
sustainability goals."
Adjusted EBITDA for the third quarter of 2015 was $3.1 million.
This compares with Adjusted EBITDA of $(2.0) million in the third
quarter of 2014. For the nine month period ended September 30,
2015, Adjusted EBITDA was $(5.1) million, compared with $(13.5)
million for the same period in 2014. Adjusted EBITDA is described
below and reconciled to the GAAP measure net loss attributable to
Clean Energy Fuels Corp.
Non-GAAP loss per share for the third quarter of 2015 was $0.23,
compared with non-GAAP loss per share for the third quarter of 2014
of $0.27. For the nine months ended September 30, 2015,
non-GAAP loss per share was $0.84, compared with non-GAAP loss per
share of $0.86 for the first nine months in 2014. Non-GAAP 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 loss for the third quarter of 2015 was
$23.1 million, or $0.25 per share, and included a non-cash gain of
$0.5 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 $2.7 million related to stock-based
compensation, and $0.2 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 third quarter of 2014 of
$30.1 million, or $0.32 per share, which included a non-cash gain
of $3.3 million related to the mark-to-market accounting treatment
of the Series I warrants, a non-cash charge of $2.8 million
related to stock-based compensation, a $4.7 million charge related
to a mining power project in Australia where the Company's Clean
Energy Compression subsidiary incurred significant cost overruns
(IMW Australia Project), and an additional $0.1 million in charges
related to the HQ Lease Exit.
Net loss for the nine month period ended September 30, 2015
was $84.2 million, or $0.92 per share, which included a non-cash
gain of $1.1 million related to the mark-to-market accounting
treatment of the Series I warrants, non-cash stock-based
compensation charges of $8.0 million, and a $0.5 million charge
related to the HQ Lease Exit. This compares with a net loss for the
nine month period ended September 30, 2014 of $91.0 million,
or $0.96 per share, which included a non-cash gain of $5.4 million
related to the mark-to-market accounting treatment of the
Series I warrants, non-cash stock-based compensation charges
of $9.2 million, foreign currency losses of $0.3 million on the
purchase notes issued in September 2010 by the Company in
connection with its acquisition of Clean Energy Compression (IMW
Purchase Notes), a $0.1 million charge relating to the fair value
adjustment of the remaining shares the Company received from
Westport Innovations, Inc. in connection with the sale of its
former subsidiary BAF Technologies, Inc. (WPRT Holdback Shares
Write-Down), a $4.7 million charge related to the IMW Australia
Project, and a $0.9 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,
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, 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
Clean Energy Compression 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, 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 loss attributable to Clean Energy
Fuels Corp.:
Three Months Ended September 30, Nine
Months Ended September 30, (in 000s, except per-share
amounts) 2014 2015 2014
2015 Net Loss Attributable to Clean Energy Fuels
Corp. $ (30,093 ) $ (23,119 ) $ (90,992 ) $ (84,228 ) Stock
Based Compensation, Net of $0 Tax 2,809 2,656 9,207 8,009
Mark-to-Market Gain on Series I Warrants (3,255 ) (502 ) (5,424 )
(1,085 ) Foreign Currency Loss on IMW Purchase Notes — — 343 — WPRT
Holdback Shares Write-Down — — 122 — IMW Australia Project 4,657 —
4,657 — HQ Lease Exit 64 152 876 496
Adjusted Net Loss $ (25,818 ) $ (20,813 ) $ (81,211 ) $ (76,808 )
Diluted Weighted Average Common Shares Outstanding 94,058,496
91,561,613 94,529,206 91,454,117
Non-GAAP Loss Per Share $
(0.27 ) $ (0.23 ) $ (0.86 ) $ (0.84 )
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, 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, 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 September 30, Nine
Months Ended September 30, (in 000s) 2014
2015 2014 2015 Net Loss Attributable
to Clean Energy Fuels Corp. $ (30,093 ) $ (23,119 ) $ (90,992 )
$ (84,228 ) Income Tax (Benefit) Expense 811 (241 ) 1,920 1,353
Interest Expense, Net 10,676 10,152 30,316 30,020 Depreciation and
Amortization 12,325 14,000 35,448 40,288 Foreign Currency Loss on
IMW Purchase Notes — — 343 — Stock Based Compensation, Net of $0
Tax 2,809 2,656 9,207 8,009 Mark-to-Market Gain on Series I
Warrants (3,255 ) (502 ) (5,424 ) (1,085 ) IMW Australia Project
4,657 — 4,657 — WPRT Holdback Shares Write-Down — — 122 — HQ Lease
Exit 64 152 876 496
Adjusted
EBITDA $ (2,006 ) $ 3,098 $ (13,527 ) $ (5,147 )
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 plus the Company's
proportionate share of gallons delivered by joint ventures.
The table below shows gallons delivered for the three and nine
months ended September 30, 2014 and 2015:
Three Months Ended September
30,
Nine Months Ended September 30,
Gallons Delivered (in millions) 2014
2015 2014 2015 CNG 47.6 61.1 130.5
168.5 RNG 3.0 1.3 9.2 7.7 LNG 18.0 18.2 53.0
54.0
Total 68.6 80.6 192.7 230.2
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 Saturday, December 5 by
dialing 1.877.870.5176 from the U.S., or 1.858.384.5517 from
international locations, and entering Replay Pin Number 13622993.
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
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, including economic and
environmental benefits, the Company’s ability to successfully enter
new businesses, 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
and debt repayment obligations (whether at or prior to maturity),
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 credit and other 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, permitting and other
delays at station construction projects, the Company’s ability to
integrate acquisitions and investments, compliance with
governmental regulations, the Company’s ability to effectively
manage its current LNG plants and RNG production facilities, 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-Q, filed on November
5, 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
Condensed Consolidated Balance
Sheets
(In thousands, except share data,
Unaudited)
December 31, 2014
September 30, 2015
Assets Current assets: Cash and cash equivalents $ 92,381 $
51,843 Restricted cash 6,012 3,871 Short-term investments 122,546
114,139 Accounts receivable, net of allowance for doubtful accounts
of $752 and $1,987 as of December 31, 2014 and September 30, 2015,
respectively 81,970 76,171 Other receivables 56,223 20,121
Inventories 34,696 30,725 Prepaid expenses and other current assets
19,811 15,791 Total current assets 413,639 312,661
Land, property and equipment, net 514,269 518,322 Notes receivable
and other long-term assets, net 71,904 69,392 Investments in other
entities 6,510 5,807 Goodwill 98,726 93,231 Intangible assets, net
55,361 45,228 Total assets $ 1,160,409 $
1,044,641
Liabilities and Stockholders’ Equity
Current liabilities: Current portion of long-term debt and capital
lease obligations $ 4,846 $ 150,836 Accounts payable 43,922 25,679
Accrued liabilities 56,760 55,480 Deferred revenue 14,683
7,856 Total current liabilities 120,211 239,851 Long-term
debt and capital lease obligations, less current portion 500,824
358,380 Long-term debt, related party 65,000 65,000 Other long-term
liabilities 9,339 8,035 Total liabilities 695,374
671,266 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 224,000,000 shares; issued and outstanding
90,203,344 shares and 90,575,951 shares at December 31, 2014 and
September 30, 2015, respectively 9 9 Additional paid-in capital
898,106 905,922 Accumulated deficit (457,441 ) (541,652 )
Accumulated other comprehensive loss (3,248 ) (17,678 ) Total Clean
Energy Fuels Corp. stockholders’ equity 437,426 346,601
Noncontrolling interest in subsidiary 27,609 26,774
Total stockholders’ equity 465,035 373,375 Total
liabilities and stockholders’ equity $ 1,160,409 $ 1,044,641
Clean Energy Fuels Corp. and
Subsidiaries
Condensed Consolidated Statements of
Operations
(In thousands, except share and per
share data, Unaudited)
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2014 2015 2014 2015
Revenue: Product revenues $ 90,448 $ 77,355 $ 262,710 $ 222,396
Service revenues 12,972 14,902 34,118 42,577
Total revenues 103,420 92,257 296,828 264,973 Operating
expenses: Cost of sales (exclusive of depreciation and amortization
shown separately below): Product cost of sales 79,021 59,313
216,063 174,079 Service cost of sales 4,953 7,410 12,797 21,163
Derivative gains: Series I warrant valuation (3,255 ) (502 ) (5,424
) (1,085 ) Selling, general and administrative 28,240 27,800 96,130
87,027 Depreciation and amortization 12,325 14,000
35,448 40,288 Total operating expenses 121,284
108,021 355,014 321,472 Operating loss (17,864
) (15,764 ) (58,186 ) (56,499 ) Interest expense, net (10,676 )
(10,152 ) (30,316 ) (30,020 ) Other income (expense), net (880 )
2,648 (1,045 ) 3,512 Loss from equity method investments —
(154 ) — (703 ) Loss before income taxes (29,420 ) (23,422 )
(89,547 ) (83,710 ) Income tax (expense) benefit (811 ) 241
(1,920 ) (1,353 ) Net loss (30,231 ) (23,181 ) (91,467 ) (85,063 )
Loss from noncontrolling interest 138 62 475
835 Net loss attributable to Clean Energy Fuels Corp. $
(30,093 ) $ (23,119 ) $ (90,992 ) $ (84,228 ) Loss per share
attributable to Clean Energy Fuels Corp.: Basic $ (0.32 ) $ (0.25 )
$ (0.96 ) $ (0.92 ) Diluted $ (0.32 ) $ (0.25 ) $ (0.96 ) $ (0.92 )
Weighted-average common shares outstanding: Basic 94,058,496
91,561,613 94,529,206 91,454,117 Diluted
94,058,496 91,561,613 94,529,206 91,454,117
Included in net loss are the following amounts (in
millions):
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2014 2015 2014 2015
Construction Revenues $ 21.8 $ 11.5 $ 52.8 $ 27.5 Construction Cost
of Sales (18.4 ) (10.3 ) (44.4 ) (24.0 ) Stock-based Compensation
Expense, Net of $0 Tax (2.8 ) (2.7 ) (9.2 ) (8.0 )
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151105005488/en/
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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