Clean Energy Fuels Corp. (NASDAQ: CLNE) ("Clean Energy" or the
"Company") today announced operating results for the second quarter
ended June 30, 2016.
The Company delivered 82.9 million gallons in the second quarter
of 2016, an 11% increase from 74.4 million gallons delivered in the
second quarter of 2015.
Revenue for the second quarter of 2016 was $108.0 million, a 24%
increase from $86.9 million for the second quarter of 2015. Revenue
for the second quarter of 2016 included $6.5 million of excise tax
credits for alternative fuels ("VETC") whereas the second quarter
of 2015 did not include any VETC revenue. Additionally, the
Company’s deliveries of vehicle fuel renewable natural gas and
customer station construction activity favorably impacted revenue
in the second quarter of 2016.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated, “We had another strong quarter with
positive Adjusted EBITDA and continued improvements to our
capitalization. We believe the increasing attention to the
immediate favorable environmental impacts of natural gas and
particularly our Redeem renewable natural gas, coupled with growing
volumes through customer fleet expansions and increased market
penetration, are coming through in our operating results."
Adjusted EBITDA for the second quarter of 2016 was $26.7 million
compared with Adjusted EBITDA of $(2.6) million in the second
quarter of 2015. Adjusted EBITDA for the second quarter of 2016
included the VETC revenue and a gain of $10.1 million from the
repayment or repurchase of a portion of the Company’s convertible
debt (the "debt repurchase"). For the six months ended June 30,
2016, Adjusted EBITDA was $56.5 million compared with Adjusted
EBITDA of $(8.2) million for the same period in 2015. Adjusted
EBITDA for the six months ended June 30, 2016 included VETC revenue
and a gain of $26.0 million from the debt repurchase. Adjusted
EBITDA is described below and reconciled to GAAP net income (loss)
attributable to Clean Energy Fuels Corp.
On a GAAP basis, net income for the second quarter of 2016 was
$1.5 million, or $0.01 per share, compared to a net loss of $(30.0)
million, or $(0.33) per share, for the second quarter of 2015. Net
income on a GAAP basis for the second quarter of 2016 included the
VETC revenue and the gain from the debt repurchase. For the six
months ended June 30, 2016, net income was $4.4 million, or $0.04
per share, compared to a net loss of $(61.1) million, or $(0.67)
per share, for the same period in 2015. Net income on a GAAP basis
for the six months ended June 30, 2016 included the VETC revenue
and the gain from the debt repurchase.
Non-GAAP income per share for the second quarter of 2016 was
$0.03, compared with a non-GAAP loss per share for the second
quarter of 2015 of $(0.29). Non-GAAP income per share for the
second quarter of 2016 included the VETC revenue and the gain from
the debt repurchase. For the six months ended June 30, 2016,
Non-GAAP income per share was $0.08, compared with a Non-GAAP loss
per share for the same period in 2015 of $(0.61). Non-GAAP income
per share for the six months ended June 30, 2016 included the VETC
revenue and the gain from the debt repurchase. Non-GAAP income
(loss) per share is described below and reconciled to GAAP net
income (loss) attributable to Clean Energy Fuels Corp.
Subsequent to June 30, 2016, the Company entered into
privately negotiated exchange agreements with the holders of its
convertible notes due in August 2016 ("SLG Notes"). Under the
exchange agreements, the holders of the SLG Notes agreed to
exchange all outstanding principal and interest owed under the SLG
Notes, totaling $85.0 million in principal plus $0.2 million in
interest, for an aggregate of 14.0 million shares of the Company's
common stock plus $38.2 million in cash. Following the exchange,
the Company has no further obligations related to the SLG
Notes.
Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements,
which statements are prepared and presented in accordance with
accounting principles generally accepted in the United States of
America ("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 ("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, when specified,
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 income/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 changes in the 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 of 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, which may
obscure trends in a company’s core operating performance.
Similarly, the Company’s management believes that excluding the
non-cash loss (gain) from changes in the 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 the
charges 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 GAAP net income (loss) attributable to Clean Energy
Fuels Corp.:
Three Months EndedJune 30,
Six Months EndedJune 30, (in 000s, except
per-share amounts) 2015 2016 2015
2016 Net Income (Loss) Attributable to Clean
Energy Fuels Corp. $ (29,962 ) $ 1,530 $ (61,109 ) $ 4,358
Stock-Based Compensation, Net of $0 Tax 2,663 2,037 5,353 4,456
Loss (Gain) From Change in Fair Value of Derivative Warrants 300 (1
) (583 )
1 HQ Lease Exit 243 —
344 — Adjusted Net Income (Loss) $
(26,756 ) $ 3,566 $ (55,995 ) $ 8,815 Weighted-Average Common
Shares Outstanding - Diluted 91,480,998 111,743,512 91,399,478
106,252,692
Non-GAAP Income (Loss) Per Share $ (0.29 ) $
0.03 $ (0.61 ) $ 0.08
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 changes in the
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 GAAP net loss attributable to Clean Energy Fuels
Corp.:
Three Months EndedJune 30,
Six Months EndedJune 30, (in 000s)
2015 2016 2015 2016
Net Income (Loss) Attributable to Clean Energy Fuels Corp. $
(29,962 ) $ 1,530 $ (61,109 ) $ 4,358 Income Tax Expense 740 432
1,594 813 Interest Expense, Net 9,973 7,821 19,868 16,981
Depreciation and Amortization 13,402 14,920 26,288 29,881
Stock-Based Compensation, Net of $0 Tax 2,663 2,037 5,353 4,456
Loss (Gain) From Change in Fair Value of Derivative Warrants 300 (1
) (583 ) 1 HQ Lease Exit 243 —
344 —
Adjusted EBITDA $ (2,641 ) $ 26,739 $
(8,245 ) $ 56,490
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 six
months ended June 30, 2015 and 2016:
Three Months EndedJune 30,
Six Months EndedJune 30, Gallons Delivered
(in millions) 2015 2016 2015
2016 CNG 54.9 63.9 107.3 125.0 RNG(1) 1.9 0.6 6.4 1.6 LNG
17.6 18.4 35.8 33.8
Total 74.4 82.9 149.5 160.4 (1)
Represents RNG sold as non-vehicle fuel. RNG sold as vehicle
fuel, also known as Redeem™, 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, September 10
by dialing 1.877.870.5176 from the U.S., or 1.858.384.5517 from
international locations, and entering Replay Pin Number 13641497.
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 by fleets in the Company’s key customer markets and future
growth and sales opportunities in these key customer markets, which
include heavy-duty trucking, airports, refuse, public transit,
industrial and institutional energy users and government fleets;
the strength of the Company’s key markets and businesses; the
strength of the Company’s position in the market; the benefits of
natural gas (including renewable natural gas) relative to gasoline,
diesel and other vehicle fuels, including economic and
environmental benefits; continued interest and investment in
natural gas as a vehicle fuel, including tax credits and other
government incentives promoting the use of cleaner fuels; and 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 to its volume of gallons delivered.
Actual results and the timing of events could differ materially
from those anticipated in or implied by these forward-looking
statements as a result of many 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 (including renewable natural gas), biodiesel, ethanol,
electricity and hydrogen, as well as vehicles powered by these
various fuels; the willingness of fleets and other consumers to
adopt natural gas as a vehicle fuel; 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
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 availability of tax credits 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 manage and grow its
RNG business; 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; construction, permitting and other factors that could cause
delays or other problems at station construction projects; the
Company’s ability to manage risks and uncertainties related to its
international operations; the Company’s ability to hire and retain
key personnel; the Company’s ability to integrate any mergers,
acquisitions and investments; compliance with governmental
regulations; and the Company’s ability to effectively manage its
current LNG plants and RNG production facilities.
The forward-looking statements made in this press release 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 August 9, 2016 with the Securities and
Exchange Commission (www.sec.gov), contain more information
onpotential 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 June
30, 2016 Assets Current assets: Cash and cash
equivalents $ 43,724 $ 102,316 Restricted cash 4,240 4,439
Short-term investments 102,944 79,364 Accounts receivable, net of
allowance for doubtful accounts of $1,895 and $1,714 as of December
31, 2015 and June 30, 2016, respectively 73,645 77,681 Other
receivables 60,667 31,037 Inventory 29,289 28,561 Prepaid expenses
and other current assets 14,657 12,604
Total current assets 329,166 336,002 Land, property and equipment,
net 516,324 495,791 Notes receivable and other long-term assets,
net 14,732 17,990 Investments in other entities 5,695 2,657
Goodwill 91,967 94,405 Intangible assets, net 42,644
42,292 Total assets $ 1,000,528 $ 989,137
Liabilities and Stockholders’ Equity Current
liabilities: Current portion of debt and capital lease obligations
$ 149,856 $ 139,428 Accounts payable 26,906 19,766 Accrued
liabilities 59,082 49,978 Deferred revenue 10,549
9,299 Total current liabilities 246,393 218,471
Long-term portion of debt and capital lease obligations 352,294
284,361 Long-term debt, related party 65,000 65,000 Other long-term
liabilities 7,896 8,156 Total
liabilities 671,583 575,988 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 116,344,723 shares at
December 31, 2015 and June 30, 2016, respectively 9 12 Additional
paid-in capital 915,199 989,348 Accumulated deficit (591,683 )
(587,325 ) Accumulated other comprehensive loss (20,973 )
(14,353 ) Total Clean Energy Fuels Corp. stockholders’
equity 302,552 387,682 Noncontrolling interest in subsidiary
26,393 25,467 Total stockholders’ equity
328,945 413,149 Total liabilities and
stockholders’ equity $ 1,000,528 $ 989,137
Clean Energy Fuels Corp. and
Subsidiaries Condensed Consolidated Statements of
Operations (In thousands, except share and per share
data, Unaudited) Three Months EndedJune
30, Six Months EndedJune 30, 2015
2016 2015 2016 Revenue: Product
revenues $ 75,744 $ 94,731 $ 145,041 $ 178,723 Service revenues
11,124 13,294 27,675
25,084 Total revenues 86,868 108,025 172,716 203,807
Operating expenses: Cost of sales (exclusive of depreciation and
amortization shown separately below): Product cost of sales 59,387
61,880 114,766 115,251 Service cost of sales 4,399 6,848 13,753
12,732 Loss (gain) from change in fair value of derivative warrants
300 (1 ) (583 ) 1 Selling, general and administrative 28,994 25,262
59,227 50,855 Depreciation and amortization 13,402
14,920 26,288 29,881
Total operating expenses 106,482 108,909
213,451 208,720 Operating loss
(19,614 ) (884 ) (40,735 ) (4,913 ) Gain from extinguishment of
debt — 10,120 — 26,043 Interest expense, net (9,973 ) (7,821 )
(19,868 ) (16,981 ) Other income (expense), net 317 (147 ) 864 103
Income (loss) from equity method investments (345 )
67 (549 ) (7 ) Income (loss) before income
taxes (29,615 ) 1,335 (60,288 ) 4,245 Income tax expense
(740 ) (432 ) (1,594 ) (813 ) Net income
(loss) (30,355 ) 903 (61,882 ) 3,432 Loss from noncontrolling
interest 393 627 773
926 Net income (loss) attributable to Clean Energy
Fuels Corp. $ (29,962 ) $ 1,530 $ (61,109 ) $ 4,358
Income (loss) per share attributable to Clean Energy Fuels Corp.:
Basic $ (0.33 ) $ 0.01 $ (0.67 ) $ 0.04 Diluted $
(0.33 ) $ 0.01 $ (0.67 ) $ 0.04 Weighted-average
common shares outstanding: Basic 91,480,998
109,272,906 91,399,478 103,782,086
Diluted 91,480,998 111,743,512
91,399,478 106,252,692
Included in net income (loss) are the following amounts (in
millions):
Three Months EndedJune 30,
Six Months EndedJune 30, 2015
2016 2015 2016 Station Construction
Revenues $ 9.5 $ 21.0 $ 16.0 $ 34.2 Station Construction Cost of
Sales (8.0 ) (17.8 ) (13.7 ) (29.1 ) Stock-Based Compensation
Expense, Net of $0 Tax (2.7 ) (2.0 ) (5.4 ) (4.5 ) VETC — 6.5 —
12.9
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version on businesswire.com: http://www.businesswire.com/news/home/20160809006278/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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