Clean Energy Fuels Corp. (NASDAQ:CLNE) today announced financial
results for the first quarter ended March 31, 2008. Financial
Results Revenue for the first quarter of 2008 increased to $29.9
million, up from $28.2 million in the first quarter of the prior
year. Net loss for the first quarter of 2008 was $5.4 million, or
$0.12 per share, compared with a net loss of $0.9 million, or $0.03
per share, in the first quarter of 2007. Non-GAAP loss per share
for the first quarter of 2008, which excludes employee-related
stock based compensation charges, was $0.07. This compares with a
non-GAAP loss per share of $0.03 in the first quarter of 2007. The
Company reports earnings (loss) per share on a GAAP and non-GAAP
basis, as well as a non-GAAP measure it calls Adjusted Margin. For
more information on these non-GAAP financial measures, please see
below. The non-GAAP measures are also reconciled to their
corresponding GAAP measures in the accompanying tables below.
Adjusted Margin was $8.6 million for the first quarter of 2008,
compared with $7.7 million for the same quarter last year. Adjusted
margin is a financial measure intended to approximate the margin
results that would have been reported in a particular period had
the Company�s underlying futures contracts related to its fixed
price and price cap contracts qualified for hedge accounting under
SFAS No. 133 and been held to maturity. Adjusted Margin is
discussed in more detail below. For the first quarter of 2008, the
Company�s combined volume of CNG and LNG delivered was 17.6 million
gasoline gallon equivalents (Gallons), compared with 17.8 million
Gallons in the same period a year ago. �Increasing diesel and gas
prices, heightened emissions concerns and increased awareness that
natural gas is a domestically produced fuel have led to a
substantial increase in the interest for natural gas fueling
solutions,� said Andrew J. Littlefair, President and Chief
Executive Officer. �We have grown our sales force, are building
more stations than at any point in our history and are exploring
opportunities worldwide. We are laying the groundwork to take
advantage of this opportunity.� Mr. Littlefair continued, �We have
recently signed several new contracts that we anticipate will
contribute to volume growth in the future. We are also making
headway with our existing ventures at the Ports of Los Angeles and
Long Beach. The authorities at the Ports continue to take the
necessary steps leading up to a clean truck roll out, and our Boron
LNG plant construction is on schedule to be operational this fall,
in time to fuel the Ports' LNG vehicles.� 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 from, 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 its
recurring core business operating results and may help in comparing
its current-period results with those of prior periods. Management
believes that they 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 results 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 Approximately 25-30% of Clean Energy�s current 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. From time to
time in the past, Clean Energy has sold these underlying futures
contracts when it believed natural gas prices were going to fall.
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 2007 or the first
three months of 2008. 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, (3) loss on extinguishment of derivative
liability, and (4) 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 underlying futures contracts
related to its fixed price and price cap 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 March 31, � � 2007 � � � 2008 � �
Operating Income (Loss) $ (1,030,050 ) $ (6,117,458 ) Futures
Contract Adjustment 868,567 1,076,210 Derivative (Gains) Losses � �
Selling, General, and Administrative 6,299,878 11,587,718
Depreciation and Amortization � 1,576,057 � � 2,063,421 � �
Adjusted Margin $ 7,714,452 � $ 8,609,891 � Non-GAAP EPS Non-GAAP
EPS is defined as net income (loss) plus employee-related 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 March 31, � � 2007 � � � 2008 � � Net Income (Loss) $
(870,179 ) $ (5,428,699 ) Employee Stock Based Compensation, Net of
Tax Benefits � � � � 2,498,436 � Adjusted Net Income (Loss)
(870,179 ) (2,930,263 ) Diluted Weighted Average Common Shares
Outstanding 34,192,786 44,282,492 Non-GAAP Earnings (Loss) per
Share: $ (0.03 ) $ (0.07 ) Conference Call The Company will host an
investor conference call today at 4:30 p.m. Eastern (1:30 p.m.
Pacific). The live call can be accessed from the US by dialing
(800) 762-8795, or by dialing (480) 629-1990 from outside the U.S.
A telephone replay will be available approximately two hours after
the call concludes and will be available through Thursday, May 29,
2008, by dialing (800) 406-7325 from the U.S., or (303) 590-3030
from international locations, and entering confirmation code
3868622. 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, the impact of new projects on our future results 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, difficulties expanding operations outside the United
States and Canada, unanticipated delays or cost overruns related to
the construction of our LNG plant, the progress of the clean truck
program at the Ports of Los Angeles and Long Beach, our competitive
position, 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 update publicly such forward-looking statements to reflect
subsequent events or circumstances. Additionally, the Company�s
Form 10-K filed with the SEC (www.sec.gov) on March 19, 2008
contains risk factors which you should consider before investing.
Clean Energy Fuels Corp. and Subsidiaries Condensed Consolidated
Balance Sheets December 31, 2007 and March 31, 2008 (Unaudited) � �
December 31,2007 March 31,2008 � Assets Current assets: Cash and
cash equivalents $ 67,937,602 $ 17,476,431 Short-term investments
12,479,684 42,580,469 Accounts receivable, net of allowance for
doubtful accounts of $501,751 and $669,621 as of December 31, 2007
and March 31, 2008, respectively 11,026,890 10,037,671 Other
receivables 23,153,904 27,925,169 Inventory, net 2,403,890
2,580,848 Deposits on LNG trucks 15,515,927 17,355,927 Prepaid
expenses and other current assets 3,633,318 3,353,015 Total current
assets 136,151,215 121,309,530 � Land, property and equipment, net
88,676,318 99,392,400 Capital lease receivables 763,500 663,750
Notes receivable and other long-term assets 2,511,813 2,953,852
Goodwill and other intangible assets 20,922,098 20,913,226 Total
assets $ 249,024,944 $ 245,232,758 � Liabilities and Stockholders�
Equity Current liabilities: Current portion of capital lease
obligation $ 63,520 $ 65,121 Accounts payable 10,547,451 8,342,694
Accrued liabilities 5,381,541 6,850,244 Deferred revenue 677,826
717,466 Total current liabilities 16,670,338 15,975,525 � Capital
lease obligation, less current portion 161,377 144,484 Other
long-term liabilities 1,260,755 1,187,743 Total liabilities
18,092,470 17,307,752 � 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 99,000,000 shares;
issued and outstanding 44,274,375 shares and 44,293,768 shares at
December 31, 2007 and March 31, 2008, respectively 4,428 4,430
Additional paid-in capital 297,866,745 300,449,498 Accumulated
deficit (69,086,583 ) (74,515,282 ) Accumulated other comprehensive
income 2,147,884 1,986,360 Total stockholders� equity 230,932,474
227,925,006 Total liabilities and stockholders� equity $
249,024,944 $ 245,232,758 Clean Energy Fuels Corp. and Subsidiaries
Condensed Consolidated Statements of Operations For the Three
Months Ended March 31, 2007 and 2008 (Unaudited) � � Three Months
EndedMarch 31, 2007 2008 � Revenue $ 28,167,044 $ 29,947,357
Operating expenses: Cost of sales 21,321,159 22,413,676 Selling,
general and administrative 6,299,878 11,587,718 Depreciation and
amortization 1,576,057 2,063,421 � Total operating expenses
29,197,094 36,064,815 � Operating loss (1,030,050 ) (6,117,458 ) �
Interest income, net 292,212 839,216 Other income (expense), net
(123,372 ) 38,356 Equity in losses of equity method investee �
(145,046 ) � Loss before income taxes (861,210 ) (5,384,932 ) �
Income tax expense 8,969 43,767 � Net loss $ (870,179 ) $
(5,428,699 ) � Loss per share Basic $ (0.03 ) $ (0.12 ) Diluted $
(0.03 ) $ (0.12 ) � Weighted average common shares outstanding
Basic 34,192,786 44,282,492 Diluted 34,192,786 44,282,492 �
Included in net loss are the following amounts (in millions): � � �
� Three Months Ended March 31, 2007 � 2008 Construction Revenues
1.8 ? Construction Cost of Sales (1.8 ) ? Fuel Tax Credits 3.8 4.7
Employee Stock Option Expense, Net of Tax Benefits ? (2.5 )
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