Clean Energy Fuels Corp. (NASDAQ: CLNE) ("Clean Energy" or the
"Company") today announced operating results for the first quarter
ended March 31, 2017.
The Company delivered 85.1 million gallons in the first quarter
of 2017, a 9.8% increase from 77.5 million gallons delivered in the
first quarter of 2016.
Revenue for the first quarter of 2017 was $89.5 million, a 6.6%
decrease from $95.8 million of revenue for the first quarter of
2016. This decrease was primarily due to the expiration of excise
tax credits for alternative fuels ("VETC") as of December 31, 2016,
resulting in a $6.4 million decrease in revenue for in the first
quarter of 2017 compared to the same period in 2016. Station
construction revenue decreased between periods as a result of
product mix favoring project upgrades for existing customers in the
first quarter of 2017 compared to more standalone station builds in
the same period in 2016. Compressor sales declined in the first
quarter of 2017 compared to the same period in 2016 due to
continued low global demand. Revenue from gallons delivered
("volume-related revenue") increased in the first quarter of 2017
compared to the same period in 2016 due to volume growth.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated: "The first quarter of the year was very
significant. Not only did we grow volumes and strengthen our
balance sheet with additional debt reductions, but the deal with BP
to buy our RNG production assets and put in place a long-term
supply agreement, positions us very well to continue to grow our
Redeem business. The demand for Redeem renewable natural gas has
grown from a niche product in California to a national offering
that customers want because it’s a great way to achieve
sustainability goals at an affordable cost."
On a GAAP basis, net income for the first quarter of 2017 was
$61.1 million, or $0.40 per share, compared to net income of $2.8
million, or $0.03 per share, for the first quarter of 2016. The
first quarter of 2017 included gains of $3.2 million and $70.6
million, respectively, from the Company's repurchase of a portion
of its outstanding debt at a discount to the face amount and the
sale of certain assets related to the upstream production portion
of the Company's RNG business to BP (the "Asset Sale"). The first
quarter of 2016 included VETC revenue of $6.4 million and a gain of
$15.9 million from the debt repurchase at a discount to the face
amount.
Non-GAAP income per share and Adjusted EBITDA for the first
quarter of 2017 was $0.41 per share and $80.7 million,
respectively, which included gains from the debt repurchases at a
discount to the face amount and the Asset Sale. Non-GAAP income per
share and Adjusted EBITDA for the first quarter of 2016 was $0.05
per share and $29.7 million, respectively, which included VETC
revenue and gains from the debt reduction. Non-GAAP income per
share and Adjusted EBITDA are described below and reconciled to
GAAP net income and income per share attributable to Clean Energy
Fuels Corp.
Non-GAAP Financial Measures
To supplement the Company’s condensed 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 that it calls non-GAAP income per share
("non-GAAP EPS" or "non-GAAP income per share") and adjusted EBITDA
("Adjusted EBITDA"). Management has presented non-GAAP EPS and
Adjusted EBITDA because it believes that these measures provide
meaningful supplemental information regarding the Company’s
performance for the following reasons: (1) these
measures allow for greater transparency with respect to key
metrics used by management, as management uses these measures to
assess the Company’s operating performance, for financial and
operational decision-making; (2) they exclude the impact of
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
analyze the results of Clean Energy’s business. In future quarters,
the Company may make adjustments for other expenditures, charges or
gains 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 (and/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-GAAP adjustments described below. Accordingly, unless expressly
stated otherwise, the exclusion of these and other similar items in
the presentation of 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 or income per share or any other GAAP measure as an
indicator of operating performance. Moreover, because not all
companies use identical measures and calculations, the Company's
presentation of non-GAAP EPS and Adjusted EBITDA may not be
comparable to other similarly titled measures used by other
companies.
Non-GAAP EPS
Non-GAAP EPS is defined as net income attributable to Clean
Energy Fuels Corp., plus stock-based compensation expense, 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 expenses 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.
The table below shows GAAP and non-GAAP EPS and also reconciles
GAAP net income attributable to Clean Energy Fuels Corp. to an
adjusted net income figure used in the calculation of non-GAAP
EPS:
Three Months Ended March 31, (in 000s,
except share and per-share amounts) 2016
2017 Net Income Attributable to Clean Energy Fuels
Corp. $ 2,828 $ 61,059 Stock-Based Compensation, Net of $0 Tax
2,419 1,910 Adjusted Net Income $ 5,247 $ 62,969
Diluted Weighted-Average Common Shares Outstanding 99,821,844
152,972,153
GAAP Income Per Share $ 0.03 $ 0.40
Non-GAAP
Income Per Share $ 0.05 $ 0.41
Adjusted EBITDA
Adjusted EBITDA is defined as net income attributable to Clean
Energy Fuels Corp., plus or minus income tax expense (benefit),
plus interest expense, minus interest income, plus depreciation and
amortization expense, and plus stock-based compensation expense.
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 this
figure to GAAP net income attributable to Clean Energy Fuels
Corp.:
Three Months Ended March 31, (in 000s)
2016 2017 Net
Income Attributable to Clean Energy Fuels Corp. $ 2,828 $
61,059 Income Tax Expense (Benefit) 381 (2,263 ) Interest Expense
9,301 4,911 Interest Income (141 ) (192 ) Depreciation and
Amortization 14,961 15,317 Stock-Based Compensation, Net of $0 Tax
2,419 1,910
Adjusted EBITDA $
29,749 $ 80,742
Definition of "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, in each case
delivered to its customers in the applicable period, plus the
Company's proportionate share of gallons delivered by joint
ventures in the applicable period.
The table below shows gallons delivered for the three months
ended March 31, 2016 and 2017:
Three Months Ended March 31, Gallons
Delivered (in millions) 2016 2017 CNG 61.1
68.5 RNG(1) 1.0 0.6 LNG 15.4 16.0
Total 77.5 85.1
(1) Represents RNG sold as non-vehicle fuel. RNG sold as
vehicle fuel, also known as Redeem™, is included in CNG and LNG, as
applicable.
Sources of Revenue
The following table represents our sources of revenue for the
three months ended March 31, 2016 and 2017:
Three Months Ended March 31, Revenue
(in Millions) 2016 2017 Volume
-Related $ 67.8 $ 73.6 Compressor Sales 8.3 6.5 Station
Construction Sales 13.3 9.3 VETC 6.4 — Other — 0.1
Total $ 95.8 $ 89.5
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 Sunday, June 4 by
dialing 1.844.512.2921 from the U.S., or 1.412.317.6671 from
international locations, and entering Replay Pin Number 13660270.
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. is the leading provider of natural gas
fuel for transportation in North America. We build and operate CNG
and LNG vehicle fueling stations; manufacture CNG and LNG equipment
and technologies; and deliver more CNG and LNG vehicle fuel than
any other company in the U.S. Clean Energy also sells Redeem™ RNG
fuel and believes it is the cleanest transportation fuel
commercially available, reducing greenhouse gas emissions by up to
70%. 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: growth in the market for natural gas
and other alternative vehicle fuels; sales of growing volumes of
natural gas vehicle fuel; the benefits of natural gas (including
RNG) as an alternative vehicle fuel, including its effectiveness
and economic and environmental benefits; continued interest and
investment in natural gas as a vehicle fuel; and the success of the
Company’s relationship with BP and other strategic partnerships.
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, gasoline,
diesel, natural gas and other alternative fuels, as well as
heavy-duty trucks and other vehicles powered by these 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 market for alternative vehicle fuels and otherwise compete
successfully in this market; the Company’s ability to recognize the
anticipated benefits of building CNG and LNG stations, including
receiving revenue from these stations equal to or greater than
their costs or at all; future availability of capital, including
equity or debt financing, as needed to fund the growth of the
Company’s business and repayment of its debt obligations (whether
at or prior to maturity); the availability of tax credits and other
government programs or incentives that promote natural gas or other
alternatives as a vehicle fuel; changes to federal, state or local
fuel emission standards or other environmental regulations
applicable to natural gas production, transportation or use;
compliance with other applicable government regulations; the
Company’s ability to manage and grow its RNG business after the
sale of the upstream production portion of this business;
construction, permitting and other factors that could cause delays
or other problems at station construction projects; the Company’s
ability to sustain or grow its compressor business and manage risks
and uncertainties related to the global scope of this business; the
Company’s ability to realize the intended benefits of any mergers,
acquisitions, divestitures, investments or other strategic
transactions or relationships; and general political, regulatory,
economic and market conditions.
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. The Company’s Quarterly Report on
Form 10-Q, filed on May 4, 2017 with the Securities and
Exchange Commission (www.sec.gov), contains additional information
on these and other 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, March 31,
2016 2017 Assets Current
assets: Cash and cash equivalents $ 36,119 $ 47,125 Restricted cash
6,996 253 Short-term investments 73,718 50,803 Accounts receivable,
net of allowance for doubtful accounts of $1,063 and $1,006 as of
December 31, 2016 and March 31, 2017, respectively 79,432 68,123
Other receivables 21,934 19,861 Note receivable — 123,487 Inventory
29,544 28,711 Prepaid expenses and other current assets
14,021 12,656 Total current assets 261,764
351,019 Land, property and equipment, net 483,923 433,317 Notes
receivable and other long-term assets, net 16,377 15,244
Investments in other entities 3,475 2,606 Goodwill 93,018 66,777
Intangible assets, net 38,700 37,496
Total assets $ 897,257 $ 906,459
Liabilities and
Stockholders’ Equity Current liabilities: Current portion of
debt and capital lease obligations $ 5,943 $ 4,132 Accounts payable
23,637 17,220 Accrued liabilities 52,601 53,694 Deferred revenue
7,041 7,212 Total current liabilities
89,222 82,258 Long-term portion of debt and capital lease
obligations 241,433 211,251 Long-term debt, related party 65,000
40,000 Other long-term liabilities 7,915 5,338
Total liabilities 403,570 338,847 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 145,538,063 shares and 149,722,174
shares at December 31, 2016 and March 31, 2017, respectively 15 15
Additional paid-in capital 1,090,361 1,103,124 Accumulated deficit
(603,836 ) (543,273 ) Accumulated other comprehensive loss
(17,675 ) (16,741 ) Total Clean Energy Fuels Corp.
stockholders’ equity 468,865 543,125 Noncontrolling interest in
subsidiary 24,822 24,487 Total
stockholders’ equity 493,687 567,612
Total liabilities and stockholders’ equity $ 897,257 $
906,459
Clean Energy Fuels Corp. and
Subsidiaries Condensed Consolidated Statements of
Operations (In thousands, except share and per share
data, Unaudited) Three Months Ended
March 31, 2016
2017 Revenue: Product revenue $ 83,992 $ 76,229
Service revenue 11,790 13,262 Total
revenue 95,782 89,491 Operating expenses: Cost of sales (exclusive
of depreciation and amortization shown separately below): Product
cost of sales 53,371 54,597 Service cost of sales 5,884 6,264
Selling, general and administrative 25,595 23,773 Depreciation and
amortization 14,961 15,317 Total
operating expenses 99,811 99,951
Operating loss (4,029 ) (10,460 ) Interest expense (9,301 ) (4,911
) Interest income 141 192 Other income (expense), net 250 (167 )
Loss from equity method investments (74 ) (36 ) Gain from
extinguishment of debt 15,923 3,195 Gain from sale of certain
assets of subsidiary — 70,648 Income
before income taxes 2,910 58,461 Income tax benefit (expense)
(381 ) 2,263 Net income 2,529 60,724 Loss
attributable to noncontrolling interest 299
335 Net income attributable to Clean Energy Fuels Corp. $
2,828 $ 61,059 Income per share: Basic $ 0.03
$ 0.41 Diluted $ 0.03 $ 0.40 Weighted-average
common shares outstanding: Basic 97,178,768
148,847,503 Diluted 99,821,844
152,972,153
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version on businesswire.com: http://www.businesswire.com/news/home/20170504006236/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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