Clean Energy Fuels Corp. (NASDAQ: CLNE) (Clean Energy or the
Company) today announced operating results for the first quarter
ended March 31, 2015.
Gallons delivered (defined below) for the first quarter of 2015
increased 27% to 75.2 million gallons, compared to 59.3 million
gallons delivered in the same period a year ago. CNG, LNG and RNG
gallons delivered were 52.4 million, 18.3 million and 4.5 million,
respectively, for the first quarter of 2015, compared to 39.4
million, 16.7 million and 3.2 million, respectively, in the same
period of 2014.
Revenue for the first quarter of 2015 was $85.8 million, a
decrease of 10% compared to $95.3 million for the first quarter of
2014. Construction revenue in the first quarter of 2015 was $9.8
million less than construction revenue in the first quarter of
2014, principally due to timing of revenue recognition on
construction projects in-process as of March 31, 2015 totaling
approximately $9.1 million. Lower fuel prices which were driven by
lower natural gas commodity costs reduced revenue by approximately
$3.7 million in the first quarter of 2015 compared to the same
period in 2014. Revenue for IMW Industries, Ltd. (IMW), Clean
Energy’s compressor manufacturing subsidiary, was lower by $7.9
million when compared to the same period in 2014 due to anticipated
effects of the soft global oil market and changes in customer mix.
Revenue related to gallons delivered increased by $8.4 million
comparing the first quarter of 2015 to the first quarter of
2014.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated, “I’m pleased with the progress we are
making to drive volume growth across our different market sectors.
While gasoline and diesel prices declined, so did our commodity
cost, and our margins increased despite the depressed oil market.
We continue to open new stations in our national network and sign
up fleet customers across the country that will enjoy the
environmental and economic benefits associated with natural gas
vehicle fuel. Additionally, our new virtual CNG pipeline business,
NG Advantage, has made strong progress including their recent
contract announcement with International Paper, and we look to
expand that business as new opportunities emerge.”
Adjusted EBITDA for the first quarter of 2015 totaled $(5.6)
million. This compares to Adjusted EBITDA of $(6.8) million in the
first quarter of 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 first quarter of 2015 was
$(0.32), compared with a non-GAAP loss per share for the first
quarter of 2014 of $(0.30). 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 first quarter of 2015 was
$31.1 million, or $0.34 per share, and included a non-cash gain of
$0.9 million related to the accounting treatment that requires
Clean Energy to value its Series I warrants and mark them to
market, and a non-cash charge of $2.7 million related to
stock-based compensation. This compares with a net loss for the
first quarter of 2014 of $28.6 million, or $0.30 per share, which
included a non-cash gain of $4.5 million related to the
mark-to-market accounting treatment of the Series I warrants, a
non-cash charge of $3.4 million related to stock-based
compensation, foreign currency losses of $0.3 million on the
Company’s purchase notes issued in September 2010 in connection
with the Company’s acquisition of IMW, a $0.5 million write down of
the value of the Westport Innovations, Inc. shares held by the
Company from the sale of its former subsidiary BAF Technologies,
Inc. (WPRT Holdback Shares Write-Down), and $0.1 million in
additional lease exit charges related to the move of the Company’s
headquarters (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, 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, 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 March 31, (in 000s,
except per-share amounts) 2014 2015 Net
Loss Attributable to Clean Energy Fuels Corp. $ (28,593 ) $
(31,147 ) Stock Based Compensation, Net of Tax Benefits 3,420 2,690
Mark-to-Market Gain on Series I Warrants (4,455 ) (883 ) Foreign
Currency Loss on IMW Purchase Notes 343 — WPRT Holdback Shares
Write-Down 463 — HQ Lease Exit 55 101 Adjusted Net
Loss $ (28,767 ) $ (29,239 ) Diluted Weighted Average Common Shares
Outstanding 94,676,325 91,317,053
Non-GAAP Loss Per Share $
(0.30 ) $ (0.32 )
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, 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 March 31, (in 000s)
2014 2015 Net Loss Attributable to Clean
Energy Fuels Corp. $ (28,593 ) $ (31,147 ) Income Tax Expense
962 854 Interest Expense, Net 9,510 9,895 Depreciation and
Amortization 11,515 12,886 Foreign Currency Loss on IMW Purchase
Notes 343 — Stock Based Compensation, Net of Tax Benefits 3,420
2,690 Mark-to-Market Gain on Series I Warrants (4,455 ) (883 ) WPRT
Holdback Shares Write-Down 463 — HQ Lease Exit 55 101
Adjusted EBITDA $ (6,780 ) $ (5,604 )
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, June 11, 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
13606820. 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
SubsidiariesCondensed Consolidated Balance
SheetsDecember 31, 2014 and March 31,
2015(Unaudited)(In thousands, except share
data)
December 31,2014 March 31,2015
Assets Current assets: Cash and cash equivalents $ 92,381 $
106,863 Restricted cash 6,012 4,985 Short-term investments 122,546
113,557 Accounts receivable, net of allowance for doubtful accounts
of $752 and $785 as of December 31, 2014 and March 31, 2015,
respectively 81,970 79,056 Other receivables 56,223 25,076
Inventory, net 34,696 32,795 Prepaid expenses and other current
assets 19,811 15,854 Total current assets 413,639 378,186 Land,
property and equipment, net 514,269 519,315 Notes receivable and
other long-term assets 71,904 71,816 Investments in other entities
6,510 6,306 Goodwill 98,726 95,307 Intangible assets, net 55,361
50,062 Total assets $ 1,160,409 $ 1,120,992
Liabilities and
Stockholders’ Equity Current liabilities: Current portion of
long-term debt and capital lease obligations $ 4,846 5,712 Accounts
payable 43,922 41,577 Accrued liabilities 56,760 57,151 Deferred
revenue 14,683 11,738 Total current liabilities 120,211 116,178
Long-term debt and capital lease obligations, less current portion
500,824 503,869 Long-term debt, related party 65,000 65,000 Other
long-term liabilities 9,339 8,373 Total liabilities 695,374 693,420
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 90,378,353 shares at December 31, 2014 and March 31,
2015, respectively 9 9 Additional paid-in capital 898,106 901,130
Accumulated deficit (457,441 ) (488,572 ) Accumulated other
comprehensive loss (3,248 ) (12,224 ) Total Clean Energy Fuels
Corp. stockholders’ equity 437,426 400,343 Noncontrolling interest
in subsidiary 27,609 27,229 Total stockholders’ equity 465,035
427,572 Total liabilities and stockholders’ equity $ 1,160,409 $
1,120,992
Clean Energy Fuels Corp. and
SubsidiariesCondensed Consolidated Statements of
OperationsFor the Three Months Ended March 31, 2014 and
2015(Unaudited)(In thousands, except share and per
share data)
Three Months EndedMarch 31, 2014
2015 Revenue: Product revenues $ 85,789 $ 69,297 Service
revenues 9,486 16,551 Total revenues 95,275 85,848 Operating
expenses: Cost of sales (exclusive of depreciation and amortization
shown separately below): Product cost of sales 67,867 55,379
Service cost of sales 3,764 9,354 Derivative gains: Series I
warrant valuation (4,455 ) (883 ) Selling, general and
administrative 33,490 30,233 Depreciation and amortization 11,515
12,886 Total operating expenses 112,181 106,969 Operating loss
(16,906 ) (21,121 ) Interest expense, net (9,510 ) (9,895 ) Other
income (expense), net (1,286 ) 547 Loss from equity method
investment — (204 ) Loss before income taxes (27,702 ) (30,673 )
Income tax expense (962 ) (854 ) Net loss (28,664 ) (31,527 ) Loss
from noncontrolling interest 71 380 Net loss attributable to Clean
Energy Fuels Corp. $ (28,593 ) $ (31,147 ) Loss per share
attributable to Clean Energy Fuels Corp.: Basic $ (0.30 ) $ (0.34 )
Diluted $ (0.30 ) $ (0.34 ) Weighted-average common shares
outstanding: Basic 94,676,325 91,317,053 Diluted 94,676,325
91,317,053
Included in net loss are the following amounts (in
millions):
Three Months EndedMarch 31, 2014
2015 Construction Revenues $ 16.3 $ 6.5 Construction
Cost of Sales (13.4 ) (5.7 ) Stock-based Compensation Expense, Net
of Tax Benefits (3.4 ) (2.7 )
Clean Energy Fuels Corp.Investors:Tony Kritzer,
949-437-1403Director of Investor CommunicationsorNews
Media:Gary Foster, 949-437-1113Senior Vice President, Corporate
Communications
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