Clean Energy Fuels Corp. (NASDAQ: CLNE) ("Clean Energy" or the
"Company") today announced operating results for the second quarter
and six months ended June 30, 2017.
The Company delivered 88.4 million gallons in the second quarter
of 2017, a 6.6% increase from 82.9 million gallons delivered in the
same period in 2016. For the six months ended June 30, 2017,
the Company delivered 173.5 million gallons, an 8.2% increase from
160.4 million gallons delivered in the same period in 2016.
Revenue for the second quarter of 2017 was $81.0 million, a
25.0% decrease from $108.0 million of revenue for the second
quarter of 2016. This decrease was primarily due to a lower
effective price per gallon because of the Company's sale of certain
assets related to the upstream production portion of its RNG
business to BP Products North America Inc. ("BP") in the first
quarter of 2017 (the "Asset Sale"). Although the Company continues
to generate revenue relating to the sale of RINs and LCFS Credits
from sales of its Redeem™ RNG vehicle fuel, the amount of revenue
it receives from the sale of these credits has decreased as a
result of the Asset Sale. In addition, revenue decreased compared
to the second quarter of 2016 due to the expiration of the U.S.
federal excise tax credits for alternative fuels ("VETC") as of
December 31, 2016. Station construction revenue decreased between
periods, principally due to a decrease in large, full-station
projects. Compressor revenue decreased due to low global demand in
the compressor sector. Revenue increased by $4.0 million from a
year ago related to increased gallons delivered.
Revenue for the six months ended June 30, 2017 was $170.5
million, a 16.3% decrease from $203.8 million compared to the same
period in 2016, primarily due to the same factors described
above.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated: "Continued volume growth and positive
adjusted EBITDA made for a favorable second quarter with what we
believe is positive momentum moving forward. Particularly of note
were several significant customer wins with our Redeem™ renewable
natural gas, demonstrating how the transportation industry
continues to embrace the cleanest fuel available."
On a GAAP basis, net loss for the second quarter of 2017 was
$(17.8) million, or $(0.12) per share, compared to net income of
$1.5 million, or $0.01 per share, for the second quarter of 2016.
The second quarter of 2017 included a $0.8 million reduction to the
gain from the Asset Sale and the second quarter of 2016 included
VETC revenue of $6.5 million and a gain of $10.1 million from the
repurchase of debt at a discount to the face amount.
On a GAAP basis, net income for the six months ended
June 30, 2017 was $43.3 million, or $0.28 per share, compared
to net income of $4.4 million, or $0.04 per share, for the six
months ended June 30, 2016. The six months ended June 30, 2017
included gains of $3.2 million and $69.9 million from the Company's
repurchase of a portion of its outstanding debt at a discount to
the face amount and from the Asset Sale, respectively. The six
months ended June 30, 2016 included VETC revenue of $12.9 million
and a gain of $26.0 million from the repurchase of debt at a
discount to the face amount.
Non-GAAP loss per share and Adjusted EBITDA for the second
quarter of 2017 was $(0.10) per share and $3.2 million,
respectively. Non-GAAP income per share and Adjusted EBITDA for the
second quarter of 2016 was $0.03 per share and $26.7 million,
respectively, which included VETC revenue and gains from debt
repurchases.
Non-GAAP income per share and Adjusted EBITDA for the six months
ended June 30, 2017 was $0.31 per share and $84.0 million,
respectively, which included gains from debt repurchases and the
Asset Sale. Non-GAAP income per share and Adjusted EBITDA for the
six months ended June 30, 2016 was $0.08 per share and $56.5
million, respectively, which included VETC revenue and gains from
debt repurchases. Non-GAAP income (loss) per share and Adjusted
EBITDA are described below and reconciled to GAAP net income (loss)
and income (loss) 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 (loss) per share
("non-GAAP EPS" or "non-GAAP income (loss) 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 (loss) or income (loss) 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 (loss) 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 (loss) attributable to Clean Energy Fuels Corp. to
an adjusted net income (loss) figure used in the calculation of
non-GAAP EPS:
Three Months EndedJune 30,
Six Months EndedJune 30, (in
000s, except share and per-share amounts) 2016
2017 2016
2017 Net Income (Loss) Attributable to Clean Energy Fuels
Corp. $ 1,530 $ (17,808 ) $ 4,358 $ 43,251 Stock-Based
Compensation, Net of $0 Tax 2,037 2,778 4,456
4,688 Adjusted Net Income (Loss) $ 3,567 $ (15,030 ) $ 8,814 $
47,939 Diluted Weighted-Average Common Shares Outstanding
111,743,512 150,586,423 106,252,692 152,415,149
GAAP Income
(Loss) Per Share $ 0.01 $ (0.12 ) $ 0.04 $ 0.28
Non-GAAP
Income (Loss) Per Share $ 0.03 $ (0.10 ) $ 0.08 $ 0.31
Adjusted EBITDA
Adjusted EBITDA is defined as net income (loss) 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 (loss) attributable to Clean Energy Fuels
Corp.:
Three Months EndedJune 30,
Six Months EndedJune 30, (in
000s) 2016 2017 2016
2017 Net Income (Loss) Attributable
to Clean Energy Fuels Corp. $ 1,530 $ (17,808 ) $ 4,358 $
43,251 Income Tax Expense (Benefit) 432 124 813 (2,139 ) Interest
Expense 8,136 4,285 17,437 9,196 Interest Income (315 ) (499 ) (456
) (691 ) Depreciation and Amortization 14,920 14,336 29,881 29,653
Stock-Based Compensation, Net of $0 Tax 2,037 2,778
4,456 4,688
Adjusted EBITDA $ 26,740 $ 3,216 $
56,489 $ 83,958
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 and six
months ended June 30, 2016 and 2017:
Three Months EndedJune 30,
Six Months EndedJune 30,
Gallons Delivered (in millions) 2016
2017 2016 2017 CNG
63.9 71.1 125.0 139.6 RNG(1) 0.6 0.6 1.6 1.2 LNG 18.4 16.7
33.8 32.7
Total 82.9 88.4 160.4 173.5
(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 and six months ended June 30, 2016 and 2017:
Three Months EndedJune 30,
Six Months EndedJune 30,
Revenue (in Millions) 2016
2017 2016 2017
Volume-Related
$ 71.6 $ 63.3 139.5 136.9 Compressor Sales 8.8 5.2 17.1 11.7
Station Construction Sales 21.1 12.3 34.3 21.6 VETC 6.5 — 12.9 —
Other — 0.2 — 0.3 Total $ 108.0 $ 81.0 $ 203.8
$ 170.5
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, September
3, by dialing 1.844.512.2921 from the U.S., or 1.412.317.6671
from international locations, and entering Replay Pin Number
13666012. 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 United States. 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: growing momentum in the market for
natural gas and other alternative vehicle fuels and the Company’s
ability to capture a significant share of this market; sales of
growing volumes of RNG and other natural gas vehicle fuel; and
growth in the Company’s customer base. 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, including its various relationships
with BP and its affiliates; 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 August 3, 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, 2016 June 30, 2017
Assets Current assets: Cash and cash equivalents $ 36,119 $
49,959 Restricted cash 6,996 253 Short-term investments 73,718
151,259 Accounts receivable, net of allowance for doubtful accounts
of $1,063 and $1,280 as of December 31, 2016 and June 30, 2017,
respectively 79,432 63,872 Other receivables 21,934 15,316
Inventory 29,544 29,949 Prepaid expenses and other current assets
14,021 12,239 Total current assets 261,764 322,847
Land, property and equipment, net 483,923 423,333 Notes receivable
and other long-term assets, net 16,377 19,868 Investments in other
entities 3,475 2,572 Goodwill 93,018 67,062 Intangible assets, net
38,700 36,764 Total assets $ 897,257 $ 872,446
Liabilities and Stockholders’ Equity Current
liabilities: Current portion of debt and capital lease obligations
$ 5,943 $ 4,319 Accounts payable 23,637 15,424 Accrued liabilities
52,601 35,740 Deferred revenue 7,041 6,359 Total
current liabilities 89,222 61,842 Long-term portion of debt and
capital lease obligations 241,433 210,509 Long-term debt, related
party 65,000 40,000 Other long-term liabilities 7,915 5,230
Total liabilities 403,570 317,581 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 150,849,588
shares at December 31, 2016 and June 30, 2017, respectively 15 15
Additional paid-in capital 1,090,361 1,107,809 Accumulated deficit
(603,836 ) (561,082 ) Accumulated other comprehensive loss (17,675
) (15,633 ) Total Clean Energy Fuels Corp. stockholders’ equity
468,865 531,109 Noncontrolling interest in subsidiary 24,822
23,756 Total stockholders’ equity 493,687 554,865
Total liabilities and stockholders’ equity $ 897,257
$ 872,446
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, 2016
2017 2016 2017 Revenue:
Product revenue $ 94,731 $ 67,849 $ 178,723 $ 144,078 Service
revenue 13,294 13,167 25,084 26,429
Total revenue 108,025 81,016 203,807 170,507 Operating expenses:
Cost of sales (exclusive of depreciation and amortization shown
separately below): Product cost of sales 61,880 50,825 115,251
105,422 Service cost of sales 6,848 6,519 12,732 12,783 Selling,
general and administrative 25,261 23,304 50,856 47,077 Depreciation
and amortization 14,920 14,336 29,881 29,653
Total operating expenses 108,909 94,984
208,720 194,935 Operating loss (884 ) (13,968 )
(4,913 ) (24,428 ) Interest expense (8,136 ) (4,285 ) (17,437 )
(9,196 ) Interest income 315 499 456 691 Other income (expense),
net (147 ) 135 103 (32 ) Income (loss) from equity method
investments 67 (34 ) (7 ) (70 ) Gain from extinguishment of debt
10,120 — 26,043 3,195 Gain (loss) from sale of certain assets of
subsidiary — (762 ) — 69,886 Income (loss)
before income taxes 1,335 (18,415 ) 4,245 40,046 Income tax benefit
(expense) (432 ) (124 ) (813 ) 2,139 Net income (loss) 903
(18,539 ) 3,432 42,185 Loss attributable to noncontrolling interest
627 731 926 1,066 Net income (loss)
attributable to Clean Energy Fuels Corp. $ 1,530 $ (17,808 )
$ 4,358 $ 43,251 Income (loss) per share: Basic $
0.01 $ (0.12 ) $ 0.04 $ 0.29 Diluted $ 0.01
$ (0.12 ) $ 0.04 $ 0.28 Weighted-average
common shares outstanding: Basic 109,272,906 150,586,423
103,782,086 149,721,767 Diluted 111,743,512
150,586,423 106,252,692 152,415,149
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version on businesswire.com: http://www.businesswire.com/news/home/20170803005963/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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