Clean Energy Fuels Corp. (NASDAQ: CLNE) (Clean Energy or the
Company) today announced operating results for the first quarter
ended March 31, 2016.
The Company delivered 77.5 million gallons in the first quarter
of 2016, a 3% increase from 75.2 million gallons delivered in the
first quarter of 2015.
Revenue for the first quarter of 2016 was $95.8 million, a 12%
increase from $85.8 million for the first quarter of 2015. Revenue
for the first quarter of 2016 included $6.4 million of excise tax
credits for alternative fuels (VETC) whereas the first quarter of
2015 did not include any VETC revenue. Additionally the Company’s
renewable natural gas deliveries favorably impacted revenue in the
first quarter of 2016.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated “We had a strong first quarter and took
significant steps in managing our capitalization. Our operating
results demonstrate the benefits of having a diverse product
offering, good penetration into multiple transportation markets and
the environmental attributes associated with natural gas vehicle
fuel."
Adjusted EBITDA for the first quarter of 2016 was $29.8 million
compared with Adjusted EBITDA of $(5.6) million in the first
quarter of 2015. Adjusted EBITDA for the first quarter of 2016
included the VETC revenue and a gain of $15.9 million from the
repurchase of a portion of the Company’s convertible debt (debt
repurchase). Adjusted EBITDA is described below and reconciled to
the GAAP measure net income (loss) attributable to Clean Energy
Fuels Corp.
Non-GAAP income per share for the first quarter of 2016 was
$0.05, compared with a non-GAAP loss per share for the first
quarter of 2015 of $(0.32). Non-GAAP income per share for the first
quarter of 2016 included the VETC revenue and the gain from the
debt repurchase. Non-GAAP income (loss) per share is described
below and reconciled to the GAAP measure net income (loss)
attributable to Clean Energy Fuels Corp.
On a GAAP basis, net income for the first quarter of 2016 was
$2.8 million, or $0.03 per share, compared to a net loss of $(31.1)
million, or $(0.34) per share, for the first quarter of 2015. Net
income on a GAAP basis for the first quarter of 2016 included the
VETC revenue and the gain from the debt repurchase.
Subsequent to March 31, 2016 the Company paid $3.9 million in
cash to repurchase $6.5 million of the 5.25% Notes due 2018 (the
Notes), plus accrued interest. Additionally, the Company entered
into a privately negotiated exchange agreement with certain holders
of the Notes pursuant to which it issued 6,265,829 shares of common
stock for $25.0 million aggregate principal amount of the Notes,
plus accrued interest.
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 loss (gain) from change in fair value of
derivative warrants and plus the charges relating to the move of
the Company’s headquarters (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, loss (gain) from change in fair value of derivative
warrants is useful to investors because the valuation of the
derivative 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 HQ Lease Exit 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) 2015 2016 Net Income
(Loss) Attributable to Clean Energy Fuels Corp. $ (31,147 ) $
2,828 Stock Based Compensation, Net of $0 Tax 2,690 2,419 Loss
(Gain) From Change in Fair Value of Derivative Warrants (883 ) 2 HQ
Lease Exit 101 — Adjusted Net Income (Loss) $ (29,239 ) $ 5,249
Diluted Weighted Average Common Shares Outstanding 91,317,053
99,821,844
Non-GAAP (Income) Loss Per Share $ (0.32 ) $ 0.05
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 stock-based
compensation charges, plus or minus loss (gain) from change in fair
value of derivative warrants 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)
2015 2016 Net Income (Loss) Attributable to
Clean Energy Fuels Corp. $ (31,147 ) $ 2,828 Income Tax
(Benefit) Expense 854 381 Interest Expense, Net 9,895 9,160
Depreciation and Amortization 12,886 14,961 Stock Based
Compensation, Net of $0 Tax 2,690 2,419 Loss (Gain) From Change in
Fair Value of Derivative Warrants (883 ) 2 HQ Lease Exit 101
—
Adjusted EBITDA $ (5,604 ) $ 29,751
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 months
ended March 31, 2015 and 2016:
Three Months Ended March 31, Gallons Delivered (in
millions) 2015 2016 CNG 52.4 61.1 RNG(1)
4.5 1.0 LNG 18.3 15.4
Total 75.2 77.5
(1) Represents RNG sold as non-vehicle fuel. RNG sold as
vehicle fuel is included in CNG and LNG.
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, June 5 by
dialing 1.877.870.5176 from the U.S., or 1.858.384.5517 from
international locations, and entering Replay Pin Number 13635572.
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, among other things: adoption of natural gas as a vehicle
fuel in multiple transportation markets, continued interest and
investment in natural gas as a vehicle fuel, including tax credits
and other 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 markets and more deeply
penetrate its current key markets, build, sell and open new natural
gas fueling stations and add incremental volume its gallons
delivered, and future growth and sales opportunities in all of the
Company’s key customer markets, which include trucking, refuse,
airports, public transit, industrial and institutional energy users
and government fleets. 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, among others: future supply, demand, use and prices of
crude oil and natural gas and fossil and alternative fuels,
including gasoline, diesel, natural gas, renewable natural gas,
biodiesel, ethanol, electricity and hydrogen, as well as vehicles
powered by these various fuels; the Company’s ability to recognize
the anticipated benefits of building CNG and LNG stations,
including receiving revenue from these stations equal or greater to
their costs; 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 its debt repayment obligations (whether at
or prior to maturity); the Company’s ability to hire and retain key
personnel; the availability of tax credit and other government
incentives for natural gas fueling and vehicles, changes to
federal, state or local fuel emission standards or other
environmental regulation applicable to natural gas production,
transportation or use; 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
factors that could cause delays or other problems 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 Annual Report on Form 10-K filed on March 3, 2016 and
its Quarterly Report on Form 10-Q filed on May 5, 2016 with
the Securities and Exchange Commission (www.sec.gov), contain more
information on potential 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, 2015 March 31, 2016
Assets Current assets: Cash and cash equivalents $ 43,724 $
87,239 Restricted cash 4,240 8,775 Short-term investments 102,944
75,696 Accounts receivable, net of allowance for doubtful accounts
of $1,895 and $2,038 as of December 31, 2015 and March 31, 2016,
respectively 73,645 71,898 Other receivables 60,667 26,045
Inventory 29,289 30,037 Prepaid expenses and other current assets
14,657 14,194 Total current assets 329,166 313,884
Land, property and equipment, net 516,324 505,940 Notes receivable
and other long-term assets, net 14,732 17,415 Investments in other
entities 5,695 5,621 Goodwill 91,967 94,207 Intangible assets, net
42,644 43,579 Total assets $ 1,000,528 $
980,646
Liabilities and Stockholders’ Equity Current
liabilities: Current portion of debt and capital lease obligations
$ 149,856 $ 139,991 Accounts payable 26,906 21,717 Accrued
liabilities 59,082 55,828 Deferred revenue 10,549 9,325
Total current liabilities 246,393 226,861 Long-term portion
of debt and capital lease obligations 352,294 319,495 Long-term
debt, related party 65,000 65,000 Other long-term liabilities 7,896
8,077 Total liabilities 671,583 619,433 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 92,382,717 shares and 100,237,328
shares at December 31, 2015 and March 31, 2016, respectively 9 10
Additional paid-in capital 915,199 938,990 Accumulated deficit
(591,683 ) (588,855 ) Accumulated other comprehensive loss (20,973
) (15,026 ) Total Clean Energy Fuels Corp. stockholders’ equity
302,552 335,119 Noncontrolling interest in subsidiary 26,393
26,094 Total stockholders’ equity 328,945 361,213
Total liabilities and stockholders’ equity $ 1,000,528
$ 980,646
Clean Energy Fuels Corp. and
Subsidiaries
Condensed Consolidated Statements of
Operations
(In thousands, except share and per
share data, Unaudited)
Three Months EndedMarch 31, 2015
2016 Revenue: Product revenues $ 69,297 $ 83,992 Service
revenues 16,551 11,790 Total revenues 85,848 95,782
Operating expenses: Cost of sales (exclusive of depreciation and
amortization shown separately below): Product cost of sales 55,379
53,371 Service cost of sales 9,354 5,884 Loss (gain) from change in
fair value of derivative warrants (883 ) 2 Selling, general and
administrative 30,233 25,593 Depreciation and amortization 12,886
14,961 Total operating expenses 106,969 99,811
Operating income (loss) (21,121 ) (4,029 ) Gain from
extinguishment of debt — 15,923 Interest expense, net (9,895 )
(9,160 ) Other income (expense), net 547 250 Loss from equity
method investments (204 ) (74 ) Income (loss) before income taxes
(30,673 ) 2,910 Income tax (expense) benefit (854 ) (381 ) Net
income (loss) (31,527 ) 2,529 Loss from noncontrolling interest 380
299 Net income (loss) attributable to Clean Energy
Fuels Corp. $ (31,147 ) $ 2,828 Income (loss) per share
attributable to Clean Energy Fuels Corp.: Basic $ (0.34 ) $ 0.03
Diluted $ (0.34 ) $ 0.03 Weighted-average common
shares outstanding: Basic 91,317,053 97,178,768
Diluted 91,317,053 99,821,844
Included in net income (loss) are the following amounts (in
millions):
Three Months EndedMarch 31, 2015
2016 Station Construction Project Revenues $ 6.5 $ 13.3
Station Construction Project Cost of Sales (5.7 )
(11.3
) Stock-based Compensation Expense, Net of $0 Tax (2.7 ) (2.4 )
VETC — 6.4
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160505006220/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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