Clean Energy Fuels Corp. (NASDAQ:CLNE) today announced financial
results for the second quarter and six month period ended June 30,
2007. Financial Results For the second quarter of 2007, the
Company�s combined volume of CNG and LNG delivered increased 14% to
19.3 million gasoline gallon equivalents (Gallons), compared with
16.9 million Gallons in the same period a year ago. For the six
month period ended June 30, 2007, the Company�s combined volume of
CNG and LNG delivered also increased 14% over the prior period.
Total volume for the six month period ended June 30, 2007 was 37.1
million Gallons, compared to 32.5 million Gallons for the same
period in 2006. Net loss for the second quarter of 2007 was $3.6
million, or $0.09 per share, compared to a net loss of $1.1
million, or $0.03 per share, in the second quarter of 2006. Net
loss for the six month period ended June 30, 2007 was $4.4 million,
or $0.12 per share, compared to a net loss of $4.1 million, or
$0.14 per share, in the six month period ended June 30, 2006.
Included in net income (loss) are the following amounts (in
millions): � Three Months EndedJune 30, Six Months Ended June 30,
2006 2007 2006 2007 Construction Revenues - 1.4 0.1 3.2
Construction Cost of Sales - (1.1 ) - (2.8 ) Fuel Tax Credits - 4.4
- 8.2 Stock Option Expense, Net of Tax Benefits - (3.8 ) - (3.8 )
The Company reports earnings (loss) per share on a GAAP and
non-GAAP basis, and also reports a non-GAAP measure entitled
Adjusted Margin. For more information on these non-GAAP financial
measures, please see the caption "Adjusted Margin� and �Non-GAAP
EPS� below. The non-GAAP measures are also reconciled to their
corresponding GAAP measures in the accompanying tables below.
Non-GAAP earnings per share on a diluted basis for the second
quarter of 2007 was $0.01, compared to a non-GAAP loss per share on
a diluted basis of $0.03 in the second quarter of 2006. Non GAAP
loss per share on a diluted basis for the six month period ended
June 30, 2007 was $0.02, which compares to a non-GAAP loss per
share of $0.14 in the six month period ended June 30, 2006.
Adjusted Margin was $9.2 million for the second quarter of 2007,
compared with $4.4 million for the same quarter last year. Adjusted
margin for the six month period ended June 30, 2007 was $16.9
million, compared to $8.5 million in the six month period ended
June 30, 2006. �We are very pleased with the continued growth and
overall expansion achieved in the second quarter,� said Andrew J.
Littlefair, Clean Energy President and Chief Executive Officer.
�During the quarter, vehicle fleet demand for natural gas fuels
increased, we expanded the number of fueling stations Clean Energy
serves, and we made good progress on our plans to construct a LNG
liquefaction plant in California. This quarter we saw our Gallons
delivered increase to 19.3 million, which is up from 16.9 million
Gallons in the second quarter of 2006, and our Adjusted Margin per
Gallon increased to $0.47, which is up from $0.26 in the same
quarter last year. Also, the successful completion of our initial
public offering in May puts us in a solid financial position to
continue to grow our business and pursue important opportunities.�
Mr. Littlefair continued, �We are seeing a convergence of a number
of significant opportunities, trends and economic drivers that are
serving to validate our long-term business strategy. In 2006, the
United States consumed 175 billion gallons of vehicle fuel, less
than 3% of which was CNG, LNG and other alternative fuels.
Consumption of alternative fuels is expected to increase, and
because natural gas is cheaper, cleaner and domestically available,
we anticipate a continuing increase in the demand for Clean
Energy�s products and services. We expect to continue to benefit
from increased state, regional, national and even international
awareness of the positive attributes of natural gas that make it a
logical fuel choice for fleet vehicles.� Strengthened Balance Sheet
At June 30, 2007, total cash and cash equivalents were $111.0
million, up from $937,000 on December 31, 2006. In May 2007, the
Company completed an initial public offering of 10 million shares
of its common stock at $12 per share and received net proceeds,
after deducting underwriting discounts and offering costs, of
$108.6 million. Capital Expenditures Total construction
expenditures for the first six months of 2007 were $17.0 million,
which were primarily expended on construction of the Company�s LNG
production facility, construction of additional CNG and LNG
stations, and the purchase of additional LNG tanker trailers.
Non-GAAP Financial Measures To supplement the Company�s
consolidated financial statements, which statements are prepared
and presented in accordance with GAAP, the Company uses the
following non-GAAP financial measures: Adjusted Margin and non-GAAP
earnings per share (Non-GAAP EPS). The presentation of this
financial information is not intended to be considered in isolation
or as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP. The Company uses
these non-GAAP financial measures for financial and operational
decision making and as a means to evaluate period-to-period
comparisons. Management believes that these non-GAAP financial
measures provide meaningful supplemental information regarding the
Company�s performance by excluding certain expenses that may not be
indicative of our recurring core business operating results and may
help in comparing our current-period results with those of prior
periods. Management believes that they benefit and investors
benefit from referring to these non-GAAP financial measures in
assessing Company performance and when planning, forecasting and
analyzing future periods. 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 and (2)
they are used by institutional investors and the analyst community
to help them analyze the health of Clean Energy�s business. The
material limitations of Adjusted Margin and Non-GAAP EPS are as
follows: Adjusted Margin and Non-GAAP EPS are not recognized terms
under GAAP and do not purport to be an alternative to gross margin
or earnings per share as an indicator of operating performance or
any other GAAP measure. Moreover, because not all companies use
identical measures and calculations, the presentation of Adjusted
Margin and Non-GAAP EPS may not be comparable to other
similarly-titled measures of other companies. These limitations are
compensated for by using Adjusted Margin and Non-GAAP EPS in
conjunction with traditional GAAP operating performance and cash
flow measures, and therefore, management does not recommend placing
undue reliance on these measures. Adjusted Margin A portion of
Clean Energy�s natural gas fuel sales are covered by contracts
under which the Company is obligated to sell fuel to customers at a
fixed price or a variable price subject to a cap. The Company�s
policy is to purchase natural gas futures contracts to cover its
estimated fuel sales under these sales contracts to mitigate the
risk that natural gas prices may rise above the natural gas
component of the price at which the Company is obligated to sell
gas to its customers. However, from time to time, Clean Energy has
sold these underlying futures contracts when it believed natural
gas prices were going to fall. When futures contracts were sold, it
exposed the Company to the economic risk of rising natural gas
prices causing fixed price or price cap sales contracts to be in a
reduced margin position or in a loss position, which occurred from
time to time. At December 31, 2006, the Company had sold all such
futures contracts associated with fixed-price and price cap sales
contracts and did not purchase any futures contracts during the
first six months of 2007. Management uses a measure called Adjusted
Margin to measure operating performance and manage its business.
Adjusted Margin is defined as operating income (loss), plus (1)
depreciation and amortization, (2) selling, general and
administrative expenses, and (3) derivative (gains) losses, the sum
of which is adjusted by a non-GAAP measure which management calls
�futures contract adjustment,� which is described below. Management
believes Adjusted Margin provides helpful information for investors
about the underlying profitability of the Company�s fuel sales
activities. Adjusted Margin attempts to approximate the results
that would have been reported if the futures contracts would have
qualified for hedge accounting under SFAS No. 133 and were held
until they matured. Futures contract adjustment reflects the gain
or loss that would have been experienced in a respective period on
the underlying futures contracts associated with the Company�s
fixed price and price cap contracts had those underlying futures
contracts been held and allowed to mature according to their
contract terms. The table below shows Adjusted Margin and also
reconciles these figures to the GAAP measure operating income
(loss): Three Months Ended June 30, Six Months Ended June 30, �
2006 � � 2007 � � 2006 � � 2007 � Operating Income (loss) $
(1,815,943 ) $ (4,003,847 ) $ (6,289,013 ) $ (5,033,898 ) Futures
contract adjustment 418,511 1,021,726 2,621,591 1,890,293
Derivative (gains) losses - - 282,348 - Selling, general, and
administrative 4,383,543 10,440,718 9,265,684 16,740,596
Depreciation and amortization � 1,401,009 � � 1,700,164 � �
2,600,729 � � 3,276,220 � Adjusted Margin $ 4,387,120 � $ 9,158,761
� $ 8,481,339 � $ 16,873,211 � Non-GAAP EPS Non-GAAP EPS is defined
as net income (loss) plus stock based compensation, net of related
tax benefits, divided by the Company�s weighted average shares
outstanding on a diluted basis. The table below shows Non-GAAP EPS
and also reconciles these figures to the GAAP measure net income
(loss): Three Months Ended June 30, Six Months Ended June 30, �
2006 � � 2007 � 2006 � 2007 � Net Income (Loss) $ (1,056,898 ) $
(3,562,902 ) $ (4,102,811) $ (4,433,081 ) Stock Based Compensation,
Net of Tax Benefits � - � � 3,787,654 � - � 3,787,654 � Adjusted
Net Income (Loss) (1,056,898 ) 224,752 (4,102,811) (645,427 )
Diluted Weighted Average Common Shares Outstanding � 32,010,322
38,149,455 29,098,274 36,071,554 Non-GAAP Earnings Per Share $
(0.03 ) $ 0.01 $ (0.14) $ (0.02 ) Conference Call The Company will
host an investor conference call today at 5:00 p.m. Eastern (2:00
p.m. Pacific). The live call can be accessed from the US by dialing
(800) 811-8824, or (913) 981-4903 from outside the U.S. A telephone
replay will be available approximately two hours after the call
concludes and will be available through Monday, August 27, 2007 by
dialing (888) 203-1112 from the U.S., or (719) 457-0820 from
international locations, and entering confirmation code 9113824.
There also will be a simultaneous webcast available on the Investor
Relations section of the Company's web site at
www.cleanenergyfuels.com, which will be archived on the Company�s
web site for 30 days. About Clean Energy Clean Energy, based in
Seal Beach, Calif., is the leading provider of natural gas for
transportation in North America. It has a broad customer base in
the refuse, transit, shuttle, taxi, intrastate and interstate
trucking, airport and municipal fleet markets, fueling more than
14,000 vehicles daily at strategic locations across the United
States and Canada. Additional information about the Company can be
found at: 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 the
demand for our products and services, primarily being the sale of
CNG and LNG, and our ability to continue to grow our business.
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, changes in
the prices of natural gas relative to gasoline and diesel, the
acceptance of natural gas vehicles in fleet markets, the
availability of natural gas vehicles, and the development of
competing technologies that are perceived to be cleaner and more
cost-effective than natural gas. The forward-looking statements
made herein speak only as of the date of this press release and the
Company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or
circumstances. Additionally, the Company�s initial public offering
prospectus filed with the SEC (www.sec.gov) on May 25, 2007
contains risk factors which you should consider before investing. �
Clean Energy Fuels Corp. and Subsidiaries Condensed Consolidated
Balance Sheets December 31, 2006 and June 30, 2007 (unaudited) �
December 31, 2006 June 30, 2007 Assets Current assets: Cash and
cash equivalents $ 937,445 $ 110,972,077 Accounts receivable, net
of allowance for doubtful accounts of $352,050 and $429,821 as of
December 31, 2006 and June 30, 2007, respectively 10,997,328
11,125,055 Other receivables 37,818,905 16,714,049 Inventories, net
2,558,689 2,429,941 Prepaid expenses and other current assets �
4,862,335 � � 5,980,461 � Total current assets 57,174,702
147,221,583 � Land, property and equipment , net 54,888,739
70,272,762 Capital lease receivables 1,412,500 963,000 Notes
receivable and other long term assets 2,499,106 10,229,432 Goodwill
and other intangible assets � 20,957,589 � � 20,939,844 � Total
assets $ 136,932,636 � $ 249,626,621 � � Liabilities and
Stockholders� Equity Current liabilities: Current portion of long
term debt and capital lease obligations $ 57,499 $ 60,435 Accounts
payable 6,697,363 9,961,115 Accrued liabilities 5,023,051 6,039,609
Deferred revenue � 585,505 � � 590,520 � Total current liabilities
12,363,418 16,651,679 � Long term debt and capital lease
obligations, less current portion 224,897 193,928 Other long term
liabilities � 1,428,464 � � 1,432,665 � Total liabilities
14,016,779 18,278,272 � Commitments and contingencies �
Stockholders� equity: Preferred stock, par value $0.0001 per share.
Authorized 1,000,000 shares; issued and outstanding, no shares ? ?
Common stock, par value $0.0001 per share. 99,000,000 shares
authorized; issued and outstanding 34,192,161 shares and 44,193,411
shares at December 31, 2006 and June 30, 2007, respectively 3,419
4,419 Additional paid-in capital 181,678,861 294,129,852 Retained
earnings (accumulated deficit) (60,192,221 ) (64,625,302 )
Accumulated other comprehensive income � 1,425,798 � � 1,839,380 �
Total stockholders� equity � 122,915,857 � � 231,348,349 � Total
liabilities and stockholders� equity $ 136,932,636 � $ 249,626,621
� Clean Energy Fuels Corp. and Subsidiaries Condensed Consolidated
Statements of Operations For the Three-Month and Six-Month Periods
Ended June 30, 2006 and 2007 (Unaudited) � Three Months Ended June
30, Six Months Ended June 30, � 2006 � � 2007 � � 2006 � � 2007 � �
Revenue $ 21,521,127 $ 30,663,597 $ 42,554,992 $ 58,830,640
Operating expenses: Cost of sales 17,552,518 22,526,562 36,695,244
43,847,722 Derivative (gains) losses ? ? 282,348 ? Selling, general
and administrative 4,383,543 10,440,718 9,265,684 16,740,596
Depreciation and amortization � 1,401,009 � � 1,700,164 � �
2,600,729 � � 3,276,220 � Total operating expenses � 23,337,070 � �
34,667,444 � � 48,844,005 � � 63,864,538 � Operating income (loss)
(1,815,943 ) (4,003,847 ) (6,289,013 ) (5,033,898 ) � Interest
(income), net (245,494 ) (546,750 ) (410,800 ) (838,963 ) Other
(income) expense, net � (67,038 ) � 55,805 � � (42,066 ) � 179,177
� Income (loss) before income taxes (1,503,411 ) (3,512,902 )
(5,836,147 ) (4,374,112 ) Income tax expense (benefit) � (446,513 )
� 50,000 � � (1,733,336 ) � 58,969 � Net income (loss) $ (1,056,898
) $ (3,562,902 ) $ (4,102,811 ) $ (4,433,081 ) � Earnings (loss)
per share Basic $ (0.03 ) $ (0.09 ) $ (0.14 ) $ (0.12 ) Diluted �
(0.03 ) � (0.09 ) � (0.14 ) � (0.12 ) � Weighted average common
shares outstanding Basic 32,010,322 38,149,455 29,098,274
36,071,554 Diluted � 32,010,322 � � 38,149,455 � � 29,098,274 � �
36,071,554 �
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