Clean Energy Fuels Corp. (NASDAQ: CLNE) today announced
operating results for the second quarter ended June 30, 2010.
Revenue for the quarter ended June 30, 2010 totaled $44.0
million, up from $27.9 million for the second quarter of 2009. For
the six months ended June 30, 2010, revenue totaled $83.0 million,
compared with $58.1 million a year ago.
For the second quarter of 2010, gasoline gallon equivalents
(gallons) delivered, which includes CNG, LNG, biomethane and the
gallons associated with providing operations & maintenance
services, totaled 31.1 million gallons, up 31% from 23.7 million
gallons delivered in the same period a year ago. For the first six
months of 2010, gallons delivered increased 42% to 59.7 million
gallons, up from 42.0 million gallons in the first six months of
2009.
Adjusted EBITDA for the second quarter of 2010 was $1.4 million,
compared with $3.6 million in the second quarter of 2009. Adjusted
EBITDA for the first six months of 2010 was $2.3 million, compared
with $4.5 million for the first six months of 2009. Adjusted EBITDA
is described below and reconciled to the GAAP measure net income
(loss) attributable to Clean Energy.
On a non-GAAP basis, loss per share for the second quarter of
2010 was $0.06. This compares with a non-GAAP loss per share for
the same period a year ago of $0.01 per share. Non-GAAP loss per
share was $0.13 for the first six months of 2010, and was $0.07 per
share for the first six months of 2009. Non-GAAP loss per share is
described below and reconciled to the GAAP measure net income
(loss) attributable to Clean Energy.
Non-GAAP loss per share and Adjusted EBITDA were significantly
impacted by the expiration of the Volumetric Excise Tax Credit
(VETC) on December 31, 2009. When comparing Adjusted EBITDA and
non-GAAP loss per share between periods, the VETC for the second
quarter and first six months of 2009 was $4.0 million and $8.1
million, respectively, but was $0 in the second quarter and first
six months of 2010 as the credit expired December 31, 2009.
Including the non-cash gain of $16.6 million related to the
accounting treatment that requires the Company to value its Series
I warrants and mark them to market, and non-cash stock-based
compensation charges of $2.9 million, the net income for the second
quarter of 2010 was $9.9 million, or $0.14 per share. This compares
with a net loss of $6.4 million, or $0.13 per share, in the second
quarter of 2009, which included $2.2 million of non-cash Series I
warrant charges and $3.5 million of non-cash stock based
compensation charges.
For the six-month period ended June 30, 2010, including a
non-cash charge of $2.0 million related to the accounting treatment
that requires the Company to value its Series I warrants and mark
them to market and non-cash stock-based compensation charges of
$6.0 million, the net loss for the period was $14.5 million, or
$0.24 per share. This compares with a net loss of $12.9 million, or
$0.26 per share, in the first six months of 2009, which included
$2.4 million of non-cash Series I warrant charges and $7.0 million
of non-cash stock based compensation charges.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated, “We made some very significant progress
in the second quarter and subsequent weeks, not the least of which
was our agreement to acquire IMW Industries Ltd., the premier
manufacturer of advanced natural gas fueling compressors. We
believe this acquisition will make us even more competitive by
enabling us to participate in the worldwide expansion of NGVs while
broadening our product offerings in the U.S. Also on the domestic
front, we remain encouraged with the direction of our business and
our industry overall. We have reached meaningful scale at the Ports
of Los Angeles and Long Beach with nearly 1,000 LNG-fueled trucks
now in operation and we are seeing continued growth in other key
sectors including, airports, refuse, and municipal
transportation.”
Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements,
which statements are prepared and presented in accordance with
generally accepted accounting principles (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. 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 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 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 our 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 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 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 earnings/loss per share or
operating income (loss) as an indicator of operating performance or
any other GAAP measure. Moreover, because not all companies use
identical measures and calculations, the presentation of non-GAAP
EPS or Adjusted EBITDA may not be comparable to other similarly
titled measures of other companies. These limitations are
compensated for 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) attributed to Clean
Energy, plus stock based compensation charges, net of related tax
benefits, plus or minus any mark-to-market losses or gains on the
Company’s Series I warrants, plus the Company’s alternative minimum
tax (AMT) carry-back refund it recorded in the first quarter of
2010, the total of which is divided by the Company’s weighted
average shares outstanding on a diluted bases. The Company’s
management believes that presenting non-GAAP EPS, excluding
non-cash charges related to stock-based compensation, provides
useful information to investors because of varying available
valuation methodologies, the volatility of the expense (which
depends on market forces outside of management’s control), and the
subjectivity of the assumptions and the variety of award types that
a company can use under the relevant accounting guidance may
obscure trends in the Company’s core operating performance.
Similarly, the Company’s management believes that excluding the
non-cash, mark-to-market losses or gains on the Company’s Series I
warrants is useful to investors because the valuation of the Series
I warrants is based on a number of subjective assumptions, the
amount of the loss or gain is derived from market forces outside
management’s control, and it enables investors to compare our
performance with other companies that have different capital
structures. The Company excluded the AMT refund amount due to its
non-recurring nature.
The table below shows non-GAAP EPS and also reconciles these
figures to the GAAP measure net income (loss) attributable to Clean
Energy:
Three Months Ended June 30,
Six Months Ended June 30, 2009
2010 2009 2010 Net Income
(Loss) Attributable to Clean Energy $ (6,376,766 ) $ 9,894,966
$ (12,870,813 ) $ (14,471,524 )
Stock Based Compensation, Net of
Tax Benefits
3,506,322 2,922,002 7,020,144 5,961,720 Mark-to-Market (Gain) Loss
on Series I Warrants 2,209,596 (16,615,491 ) 2,386,363 1,989,307
AMT Carry-Back Refund — — —
(1,300,000 ) Adjusted Net Income (Loss) (660,848 )
(3,798,523 ) (3,464,306 ) (7,820,497 )
Diluted Weighted Average Common
Shares Outstanding (a)
50,247,366
60,876,741
50,242,814
60,494,148
Non-GAAP Earnings (Loss) Per Share $ (0.01 ) $ (0.06 ) $
(0.07 ) $ (0.13 )
(a)
Due to the fact that the
Adjusted Net Income (Loss) amount was a loss for the three-month
period ended June 30, 2010, the Company used the basic weighted
average common shares outstanding share number when calculating
Non-GAAP EPS for the period as opposed to the fully-diluted
number.
Adjusted EBITDA
Adjusted EBITDA is defined as net income (loss) attributable to
Clean Energy, 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, net of
related tax benefits, plus or minus any mark-to-market losses or
gains on the Company’s Series I warrants. 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 monitor
compliance with certain financial covenants in the Company’s credit
agreement with PlainsCapital Bank and to determine elements of
executive and employee compensation.
The table below shows Adjusted EBITDA and also reconciles these
figures to the GAAP measure net income (loss) attributable to Clean
Energy:
Three Months Ended June 30,
Six Months Ended June 30,
2009 2010 2009
2010 Net Income (Loss) Attributable to Clean Energy $
(6,376,766 ) $ 9,894,966 $ (12,870,813 ) $ (14,471,524 ) Income Tax
(Benefit) Expense 72,963 76,746 140,850 (1,126,734 ) Interest
(Income) Expense, Net 59,538 22,362 92,076 (86,505 ) Depreciation
and Amortization 4,123,037 5,069,940 7,740,090 10,060,491 Stock
Based Compensation, Net of Tax Benefits 3,506,322 2,922,002
7,020,144 5,961,720 Mark-to-Market (Gain) Loss on Series I Warrants
2,209,596 (16,615,491 ) 2,386,363
1,989,307
Adjusted EBITDA $ 3,594,690 $
1,370,525 $ 4,508,710 $ 2,326,755
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 U.S. by dialing 877.407.4018 from the U.S. International
callers can dial 201.689.8471. A telephone replay will be available
approximately two hours after the call concludes and will be
available through Monday, August 23, 2010, by dialing 877.660.6853
from the U.S., or 201.612.7415 from international locations, and
entering account number 3055 and conference ID number 354233. 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 Fuels
Clean Energy Fuels is the leading provider of natural gas (CNG
and LNG) for transportation in North America. It has a broad
customer base in the refuse, transit, ports, shuttle, taxi,
trucking, airport and municipal fleet markets, fueling
approximately 19,000 vehicles at 218 strategic locations across the
U.S. and Canada. Clean Energy owns and operates two LNG production
plants, one in Willis, Texas and one in Boron, California, with
combined capacity of 260,000 LNG gallons per day and designed to
expand to 340,000 LNG gallons per day as demand increases. It also
owns and operates a landfill gas processing facility in Dallas, TX
that produces renewable biomethane gas for delivery in the nation’s
gas pipeline network. Clean Energy also owns BAF Technologies,
Inc., which is a leading provider of natural gas vehicle systems
and conversions for taxis, limousines, vans, pickup trucks and
shuttle busses.
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 status of the Company’s acquisition of IMW or the impact that
it will have on the Company, and future growth and sales
opportunities at the Ports of Los Angeles and Long Beach and within
the Company’s other market sectors. 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 U.S. government’s failure to
renew the Volumetric Excise Tax Credit for CNG and LNG, the
acceptance of natural gas vehicles in fleet markets, the
availability of natural gas vehicles, the progress of the clean air
plans at the Ports of Los Angeles and Long Beach, relaxation or
waiver of fuel emission standards, the inability of fleets to
access capital to purchase natural gas vehicles, the Company’s
success in obtaining government grants or subsidies for alternative
fuel operators, the unpredictability of the legislative process,
including passing any legislation that provides incentives for the
purchase of natural gas vehicles or the use of natural gas as a
vehicle fuel, construction and permitting delays at station
construction projects 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, except as otherwise
required by law. Additionally, the Company’s Form 10-Q filed on
August 9, 2010 with the SEC and its Form 10-K filed on March 10,
2010 with the SEC (www.sec.gov) contain risk factors which 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
December 31, 2009 and June 30,
2010
Unaudited
December 31,2009 June
30,2010 Assets Current assets: Cash and
cash equivalents $ 67,086,965 $ 55,700,799 Restricted cash
2,500,000 2,500,000 Accounts receivable, net of allowance for
doubtful accounts of $898,423 and $663,727 as of December 31, 2009
and June 30, 2010, respectively 16,339,730 19,066,817 Other
receivables 8,862,213 9,207,615 Inventory, net 6,217,133 7,880,449
Prepaid expenses and other current assets 7,393,892 8,712,107 Total
current assets 108,399,933 103,067,787 Land, property and
equipment, net 172,182,436 179,596,058 Capital lease receivables
1,311,054 1,175,362 Notes receivable and other long-term assets
6,875,364 11,287,270 Investments in other entities 10,536,405
11,075,171 Goodwill 21,572,020 21,572,020 Intangible assets, net of
accumulated amortization 34,921,361 32,904,670 Total assets $
355,798,573 $ 360,678,338
Liabilities and Stockholders’
Equity Current liabilities: Current portion of long-term debt
and capital lease obligations $ 2,439,263 $ 2,419,840 Accounts
payable 14,775,406 12,997,867 Accrued liabilities 9,695,443
16,625,592 Deferred revenue 2,691,007 2,467,651 Total current
liabilities 29,601,119 34,510,950 Long-term debt and capital
lease obligations, less current portion 9,781,425 9,525,198 Other
long-term liabilities 36,039,864 38,067,911 Total liabilities
75,422,408 82,104,059 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 149,000,000 shares; issued and outstanding 59,840,151
shares and 60,878,959 shares at December 31, 2009 and June 30,
2010, respectively
5,984 6,088 Additional paid-in capital 424,580,895 441,077,944
Accumulated deficit (149,410,111 ) (163,881,635 ) Accumulated other
comprehensive income (loss) 2,012,573 (1,881,591 ) Total
stockholders’ equity of Clean Energy Fuels Corp. 277,189,341
275,320,806 Noncontrolling interest in subsidiary 3,186,824
3,253,473 Total equity 280,376,165 278,574,279 Total liabilities
and equity $ 355,798,573 $ 360,678,338
Clean Energy Fuels Corp. and
Subsidiaries
Condensed Consolidated
Statements of Operations
For the Three Months and Six
Months Ended
June 30, 2009 and 2010
Unaudited
Three Months EndedJune
30, Six Months EndedJune 30, 2009
2010 2009
2010
Revenue: Product revenues $ 24,827,576 $ 39,433,517 $
53,209,857 $ 73,706,511 Service revenues 3,042,455 4,601,237
4,908,318 9,316,907 Total revenues 27,870,031 44,034,754 58,118,175
83,023,418 Operating expenses: Cost of sales: Product cost of sales
15,164,592 28,692,264 36,416,458 54,188,362 Service cost of sales
1,039,899 1,923,141 1,432,282 3,986,077 Selling, general and
administrative 11,591,451 14,877,768 23,157,440 28,527,282
Depreciation and amortization 4,123,037 5,069,940 7,740,090
10,060,491 Derivative (gain) loss on Series I warrant valuation
2,209,596 (16,615,491 ) 2,386,363 1,989,307 Total operating
expenses 34,128,575 33,947,622 71,132,633 98,751,519 Operating
income (loss) (6,258,544 ) 10,087,132 (13,014,458 ) (15,728,101 )
Interest income (expense), net (59,538 ) (22,362 ) (92,076 ) 86,505
Other income (expense), net (146,341 ) (38,645 ) (186,527 ) 4,577
Income from equity method investments 35,854 28,413 52,418 105,410
Income (loss) before income taxes (6,428,569 ) 10,054,538
(13,240,643 ) (15,531,609 ) Income tax benefit (expense) (72,963 )
(76,746 ) (140,850 ) 1,126,734 Net income (loss) (6,501,532 )
9,977,792 (13,381,493 ) (14,404,875 )
Loss (income) attributable to
noncontrolling interest
124,766 (82,826 ) 510,680 (66,649 ) Net income (loss) attributable
to Clean Energy Fuels Corp. $ (6,376,766 ) $ 9,894,966 $
(12,870,813 ) $ (14,471,524 ) Income (loss) per share
attributable to Clean Energy Fuels Corp. Basic $ (0.13 ) $ 0.16 $
(0.26 ) $ (0.24 ) Diluted $ (0.13 ) $ 0.14 $ (0.26 ) $ (0.24 )
Weighted average common shares outstanding Basic 50,247,366
60,876,741 50,242,814 60,494,148 Diluted 50,247,366 71,859,390
50,242,814 60,494,148
Included in net loss are the
following amounts (in millions):
Three Months Ended
June 30,
Six Months Ended
June 30,
2009
2010
2009
2010
Construction Revenues 0.1 2.4 5.2 2.5 Construction Cost of Sales —
(2.2 ) (4.6 ) (2.2 ) Fuel Tax Credits 4.0 — 8.1 — Stock Option
Expense, Net of Tax Benefits (3.5 ) (2.9 ) (7.0 ) (6.0 )
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