Clean Energy Fuels Corp. (NASDAQ: CLNE) today announced
operating results for the third quarter and nine months ended
September 30, 2010.
Revenue for the quarter ended September 30, 2010 rose 46% to
$45.7 million, from $31.2 million for the third quarter of 2009.
For the nine months ended September 30, 2010, revenue totaled
$128.7 million, which is an increase of 44% from $89.3 million a
year ago.
For the third quarter of 2010, gasoline gallon equivalents
(gallons) delivered, which includes CNG, LNG, biomethane and the
gallons associated with providing operations & maintenance
services, totaled 31.3 million gallons, up from 29.5 million
gallons delivered in the same period a year ago. For the nine
months of 2010, gallons delivered increased to 91.0 million
gallons, up from 71.5 million gallons in the first nine months of
2009.
On a non-GAAP basis, loss per share for the third quarter of
2010 was $0.10. This compares with non-GAAP earnings per share for
the same period a year ago of $0.01 per share. Non-GAAP loss per
share was $0.23 for the first nine months of 2010, and was $0.06
per share for the first nine 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 third
quarter and first nine months of 2009 was $3.7 million and $11.8
million, respectively, but was $0 in the third quarter and first
nine months of 2010 as the credit expired December 31, 2009.
Including the non-cash gain of $7.9 million related to the
accounting treatment that requires Clean Energy to value its Series
I warrants and mark them to market and the non-cash stock-based
compensation charges of $3.3 million, the net loss for the third
quarter of 2010 was $1.8 million, or $0.03 per share. This compares
with a net loss of $18.5 million, or $0.31 per share, in the third
quarter of 2009, which included $15.4 million of non-cash Series I
warrant charges and $3.6 million of non-cash stock-based
compensation charges.
For the nine-month period ended September 30, 2010, including a
non-cash gain of $5.9 million related to the accounting treatment
that requires Clean Energy to value its Series I warrants and mark
them to market, non-cash stock-based compensation charges of $9.2
million, and an AMT refund of $1.3 million recorded in the first
quarter of 2010, the net loss for the period was $16.3 million, or
$0.27 per share. This compares with a net loss for the first nine
months of 2009 of $31.3 million, or $0.59 per share, which included
$17.8 million of non-cash Series I warrant charges and $10.6
million of non-cash stock-based compensation charges.
Adjusted EBITDA for the third quarter of 2010 was $(0.6)
million, compared with $5.4 million in the third quarter of 2009.
Adjusted EBITDA for the first nine months of 2010 was $1.8 million,
compared with $9.9 million for the first nine months of 2009.
Adjusted EBITDA is described below and reconciled to the GAAP
measure net income (loss) attributable to Clean Energy.
Andrew J. Littlefair, Clean Energy's President and Chief
Executive Officer, stated, “We continued to leverage our expertise
in the field of natural gas fueling during the third quarter and
subsequent weeks to maintain our leadership position. Noteworthy
was our announced partnership with the largest retail operator of
truck stops in North America, Pilot Flying J. This partnership
affords us the ability to create a nationwide network of LNG
Stations for heavy-duty trucks and to orchestrate the expansion of
that network based on geographic demand trends. This is
particularly important as we expand beyond our core markets of
airports, refuse, and municipal transportation to include high
volume regional trucking fleets, which represent a large part of
our nation’s fuel consumption on an annual basis.
“We also completed the acquisition of IMW Industries, Ltd during
the third quarter and see this as a means to extend our reach
globally, satisfy much of our internal compressor needs
domestically, expand our product offerings to our U.S. customers,
and to ultimately contribute significantly to our bottom line. We
believe this acquisition will allow us to integrate platform and
station design and be more competitive for our customers,” said Mr.
Littlefair.
Non-GAAP Financial MeasuresTo 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 the
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 EPSNon-GAAP EPS is defined as net income (loss)
attributable 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 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 as it is not
expected to occur again in the foreseeable future.
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 Sept. 30, Nine Months
Ended Sept. 30, 2009
2010 2009
2010 Net Income (Loss) Attributable to Clean
Energy $ (18,460,583 ) $ (1,829,874 ) $ (31,331,396 )
$ (16,301,398 ) Stock-Based Compensation, Net of Tax
Benefits 3,551,992 3,259,927 10,572,136 9,221,647 Mark-to-Market
(Gain) Loss on Series I Warrants 15,422,310 (7,866,162 ) 17,808,673
(5,876,855 ) AMT Carry-Back Refund — —
— (1,300,000 ) Adjusted Net
Income (Loss) 513,719 (6,436,109 ) (2,950,587 ) (14,256,606 )
Diluted Weighted Average Common Shares Outstanding 59,695,666
63,992,763 53,428,391 60,970,130
Non-GAAP Earnings (Loss) Per
Share $ 0.01 $ (0.10 ) $ (0.06 ) $ (0.23 )
Adjusted EBITDAAdjusted 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 Sept. 30, Nine Months
Ended Sept. 30, 2009
2010 2009
2010 Net Income (Loss) Attributable to Clean
Energy $ (18,460,583 ) $ (1,829,874 ) $ (31,331,396 ) $
(16,301,398 ) Income Tax (Benefit) Expense 68,352 290,121 209,202
(836,613 ) Interest (Income) Expense, Net 276,110 70,126 368,186
(16,379 ) Depreciation and Amortization 4,516,513 5,507,032
12,256,603 15,567,523 Stock-Based Compensation, Net of Tax Benefits
3,551,992 3,259,927 10,572,136 9,221,647 Mark-to-Market (Gain) Loss
on Series I Warrants 15,422,310 (7,866,162 )
17,808,673 (5,876,855 )
Adjusted EBITDA
$ 5,374,694 $ (568,830 ) $ 9,883,404 $ 1,757,925
Conference CallThe 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 1-877-407-4018
from the U.S. International callers can dial 1-201-689-8471. A
telephone replay will be available approximately two hours after
the call concludes and will be available through Dec. 8, 2010 by
dialing 1-877-870-5176 from the U.S., or 1-858-384-5517 from
international locations, and entering PIN number 358182. 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 FuelsClean Energy (Nasdaq: CLNE) is
the largest provider of natural gas fuel for transportation in
North America and a global leader in the expanding natural gas
vehicle market. It has operations in CNG and LNG vehicle fueling,
construction and operation of CNG and LNG fueling stations,
biomethane production, vehicle conversion and compressor
technology.
Clean Energy fuels over 19,900 vehicles daily, including more
than 4,950 transit buses, at 211 strategic locations across the
United States with a broad customer base in the refuse, transit,
trucking, shuttle, taxi, airport and municipal fleet markets. It
owns and operates a landfill gas facility in Dallas, Texas, that
produces renewable methane gas, or biomethane, for delivery in the
nation’s gas pipeline network. It owns and operates LNG production
plants in Willis, Texas and Boron, Calif. with combined capacity of
260,000 LNG gallons per day (designed to expand to 340,000 LNG
gallons per day as demand increases) and 58 cryogenic trailers for
delivery. BAF Technologies, Inc., a wholly owned subsidiary, is a
leading provider of natural gas vehicle systems and conversions for
taxis, limousines, vans, pick-up trucks and shuttle buses. IMW
Industries, Ltd., a wholly owned subsidiary based in Canada, is a
leading supplier of compressed natural gas equipment for vehicle
fueling and industrial applications with more than 1,000
installations in over 20 countries. (www.cleanenergyfuels.com)
Safe Harbor StatementThis 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 number of stations and networks of
stations to be built for natural gas fuel use, the anticipated
benefits of the Company's acquisition of IMW and the impact that it
will have on the Company, and future growth and sales opportunities
in the regional trucking market 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 ability to successfully
integrate IMW, 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 November 8, 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 September 30, 2010 Unaudited
December 31, September 30, 2009
2010 Assets Current assets: Cash and cash
equivalents $ 67,086,965 $ 32,178,575 Restricted cash 2,500,000
2,500,000 Accounts receivable, net of allowance for doubtful
accounts of $898,423 and $576,882 as of December 31, 2009 and
September 30, 2010, respectively 16,339,730 32,339,929 Other
receivables 8,862,213 11,061,428 Inventory, net 6,217,133
18,044,725 Prepaid expenses and other current assets
7,393,892 11,265,530 Total current assets
108,399,933 107,390,187 Land, property and equipment, net
172,182,436 199,968,904 Capital lease receivables 1,311,054
1,107,041 Notes receivable and other long-term assets 6,875,364
10,660,592 Investments in other entities 10,536,405 11,171,714
Goodwill 21,572,020 65,821,347 Intangible assets, net of
accumulated amortization 34,921,361
112,926,564 Total assets $ 355,798,573 $ 509,046,349
Liabilities and Stockholders’ Equity Current
liabilities: Current portion of long-term debt and capital lease
obligations $ 2,439,263 $
29,328,727
Accounts payable 14,775,406 34,627,089 Accrued liabilities
9,695,443 20,390,637 Deferred revenue 2,691,007
12,006,967 Total current liabilities 29,601,119
96,353,420 Long-term debt and capital lease obligations,
less current portion 9,781,425 33,175,323 Other long-term
liabilities 36,039,864 38,203,504 Total
liabilities 75,422,408 167,732,247 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 64,931,101 shares at December 31, 2009 and September 30,
2010, respectively
5,984 6,493 Additional paid-in capital 424,580,895 506,775,337
Accumulated deficit (149,410,111 ) (165,711,509 ) Accumulated other
comprehensive income (loss) 2,012,573
(2,915,569 ) Total stockholders’ equity of Clean Energy Fuels Corp.
277,189,341 338,154,752 Noncontrolling interest in subsidiary
3,186,824 3,159,350 Total equity
280,376,165 341,314,102 Total liabilities and
equity $ 355,798,573 $ 509,046,349
Clean
Energy Fuels Corp. and Subsidiaries Condensed Consolidated
Statements of Operations For the Three Months and Nine
Months Ended September 30, 2009 and 2010
Unaudited Three Months Ended
Nine Months Ended September 30, September 30,
2009 2010
2009
2010
Revenue: Product revenues $ 26,290,638 $ 40,974,478 $
79,500,495 $ 114,680,989 Service revenues 4,891,188
4,679,229 9,799,506 13,996,136
Total revenues 31,181,826 45,653,707 89,300,001 128,677,125
Operating expenses: Cost of sales: Product cost of sales 16,369,247
31,189,766 52,785,705 85,378,128 Service cost of sales 2,388,458
2,319,064 3,820,740 6,305,141 Selling, general and administrative
10,491,987 15,854,920 33,649,427 44,382,202 Depreciation and
amortization 4,516,513 5,507,032 12,256,603 15,567,523 Derivative
(gain) loss on Series I warrant valuation 15,422,310
(7,866,162 ) 17,808,673 (5,876,855 )
Total operating expenses 49,188,515 47,004,620
120,321,148 145,756,139
Operating loss (18,006,689 ) (1,350,913 ) (31,021,147 ) (17,079,014
) Interest income (expense), net (276,110 ) (70,126 ) (368,186 )
16,379 Other expense, net (107,468 ) (308,346 ) (293,995 ) (303,769
) Income from equity method investments 77,744
95,509 130,162 200,919 Loss
before income taxes (18,312,523 ) (1,633,876 ) (31,553,166 )
(17,165,485 ) Income tax benefit (expense) (68,352 )
(290,121 ) (209,202 ) 836,613 Net loss
(18,380,875 ) (1,923,997 ) (31,762,368 ) (16,328,872 ) Loss
(income) attributable to noncontrolling interest (79,708 )
94,123 430,972 27,474 Net
loss attributable to Clean Energy Fuels Corp. $ (18,460,583 ) $
(1,829,874 ) $ (31,331,396 ) $ (16,301,398 ) Loss per share
attributable to Clean Energy Fuels Corp. Basic $ (0.31 ) $ (0.03 )
$ (0.59 ) $ (0.27 ) Diluted $ (0.31 ) $ (0.03 ) $ (0.59 ) $ (0.27 )
Weighted average common shares outstanding Basic
59,695,666 63,992,763 53,428,391
60,970,130 Diluted 59,695,666
63,992,763 53,428,391 60,970,130
Included in net loss are the following
amounts (in millions):
Three Months Ended Nine Months Ended
September 30, September 30,
2009
2010
2009
2010 Construction Revenues
—
1.6
5.2 4.1 Construction Cost of Sales
—
(1.6)
(4.6) (3.8) Fuel Tax Credits
3.7
—
11.8 — Stock Option Expense, Net of Tax Benefits
(3.6)
(3.3)
(10.6) (9.2)
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