Clean Energy Fuels Corp. (NASDAQ:CLNE) today announced operating
results for the fourth quarter and year ended December 31,
2010.
Revenue for the fourth quarter ended December 31, 2010 rose 97%
to $83.2 million, up from $42.2 million for the fourth quarter of
2009. For the year ended December 31, 2010, revenue totaled $211.8
million, which is an increase of 61% from $131.5 million a year
ago.
Adjusted EBITDA for the fourth quarter of 2010 was $20.2
million, compared with $5.6 million in the fourth quarter of 2009.
Adjusted EBITDA for 2010 was $21.3 million, compared with $15.5
million for 2009. Adjusted EBITDA is described below and reconciled
to the GAAP measure net income (loss) attributable to Clean
Energy.
For the fourth quarter of 2010, non-GAAP earnings per share was
$0.17. This compares with non-GAAP earnings per share for the same
period a year ago of $0.02. For the year ended December 31, 2010,
non-GAAP loss per share was $0.04, and was $0.03 per share for
2009. Non-GAAP earnings/loss per share is described below and
reconciled to the GAAP measure net income (loss) attributable to
Clean Energy.
Net income for the fourth quarter of 2010 was $13.8 million, or
$0.18 per share, and included a non-cash gain of $4.4 million
related to the accounting treatment that requires Clean Energy to
value its Series I warrants and mark them to market and a non-cash
charge of $2.7 million related to stock-based compensation. This
compares with a net loss for the fourth quarter of 2009 of $1.9
million, or $0.03 per share, which included a non-cash gain of $0.4
million related to marking to market the Series I warrants and $3.5
million of non-cash stock-based compensation charges.
For the year ended December 31, 2010, net loss totaled $2.5
million, or $0.04 per share, and included a non-cash gain of $10.3
million related to marking to market the Series I warrants,
non-cash stock based compensation charges of $11.9 million and an
alternative minimum tax (AMT) refund of $1.3 million recorded in
the first quarter of 2010. This compared to a net loss for 2009 of
$33.2 million, or $0.60 per share, which included a loss of $17.4
million related to marking to market the Series I warrants and a
non-cash charge of $14.1 million related to stock-based
compensation charges.
During the fourth quarter of 2010, the Company recorded $16.0
million of revenue attributable to Volumetric Excise Tax Credits
(VETC) and $2.2 million of impairment charges. The VETC amount
represents Clean Energy’s claim for credits earned in all of 2010,
as the credit was reinstated in the fourth quarter of 2010 and made
retroactive to January 1, 2010. During the fourth quarter of 2009,
the Company recorded $3.7 million of VETC revenue, and for 2009,
the Company recorded $15.5 million of VETC revenue.
Gasoline gallon equivalents (gallons) delivered for the fourth
quarter of 2010, which includes CNG, LNG, biomethane and the
gallons associated with providing operations & maintenance
services, totaled 31.7 million gallons, up from 29.5 million
gallons delivered in the same period a year ago. For 2010, gallons
delivered increased to 122.7 million, up from 101.0 million gallons
delivered in 2009.
Andrew J. Littlefair, Clean Energy's President and Chief
Executive Officer, stated, “I am happy to report on delivering
revenue growth of more than 60% during the year. Reflecting back on
2010, not only do we see positive momentum in our fuel sales
trends, but I am extremely pleased with the build out of our
operations, which now includes Northstar’s liquefied-natural gas
fueling system capabilities, IMW’s global compressor operations, as
well as BAF’s enhanced vehicle conversion business. With this
comprehensive service offering, and a commitment to upholding the
highest standards in quality and service, our opportunities to meet
the varying needs of our customers and potential customers is
greatly expanded. We expect to see improvements across all aspects
of our operations in 2011.”
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 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 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 AMT carry-back
refund it recorded in the first quarter of 2010, plus or minus the
foreign currency losses or gains on the Company’s purchase notes
issued as part of the acquisition of IMW, and plus impairment
charges, 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’s management
believes that excluding the foreign currency gains and losses on
the notes it issued to purchase IMW provides useful information to
investors as the amounts are based on market conditions outside of
management’s control and the amounts relate to financing the
acquisition of the business as opposed to the core operations of
the Company. The Company excluded the AMT refund amount and the
impairment charges as they are 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 Dec. 31, Year Ended Dec.
31, (in 000s, except share information)
2009
2010 2009
2010 Net Income (Loss) Attributable
to Clean Energy $ (1,917 ) $ 13,786 $ (33,249 ) $
(2,516 ) Stock-Based Compensation, Net of Tax Benefits 3,499 2,698
14,071 11,920 Mark-to-Market (Gain) Loss on Series I Warrants (442
) (4,402 ) 17,367 (10,278 ) AMT Carry-Back Refund — — — (1,300 )
Foreign Currency (Gains) Losses on IMW Purchase Notes — (1,616 ) —
(2,324 ) Impairment Charges — 2,248
— 2,248 Adjusted Net
Income (Loss) 1,140 12,714 (1,811 ) (2,250 ) Diluted Weighted
Average Common Shares Outstanding 59,750,687 75,481,354 55,021,961
62,549,311
Non-GAAP Earnings (Loss) Per Share $ 0.02 $ 0.17
$ (0.03 ) $ (0.04 )
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, plus or minus the foreign
currency losses or gains on the Company’s notes issued as part of
the acquisition of IMW, and plus impairment charges. 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 Dec. 31, Year Ended Dec.
31, (in 000s)
2009
2010 2009
2010 Net Income (Loss) Attributable to Clean
Energy $ (1,917 ) $ 13,786 $ (33,249 ) $ (2,516 ) Income
Tax (Benefit) Expense 95 (600 ) 304 (1,436 ) Interest (Income)
Expense, Net (337 ) 1,211 32 1,194 Depreciation and Amortization
4,735 6,919 16,992 22,487 Stock-Based Compensation, Net of Tax
Benefits 3,499 2,698 14,071 11,920 Mark-to-Market (Gain) Loss on
Series I Warrants (442 ) (4,402 ) 17,367 (10,278 ) Foreign Currency
(Gains) Losses on IMW Purchase Notes
—
(1,616
)
—
(2,324
)
Impairment Charges — 2,248 —
2,248
Adjusted EBITDA $ 5,633 $ 20,244
$ 15,517 $ 21,295
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 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 Sunday, April 10, by dialing 1-877-870-5176
from the U.S., or 1-858-384-5517 from international locations, and
entering PIN number 366509. 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 (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 21,200 vehicles at 224 strategic
locations across the United States and Canada with a broad customer
base in the refuse, transit, trucking, shuttle, taxi, airport and
municipal fleet markets. It owns (70%) 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, and
that are designed to expand to 340,000 LNG gallons per day as
demand increases. Northstar, a wholly owned subsidiary, is the
recognized leader in LNG/LCNG (liquefied to compressed natural gas)
fueling system technologies and station construction and
operations. 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 24 countries.
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
momentum in the Company’s fuel sales, future improvements in the
Company’s operations, and opportunities for the Company’s vehicle
conversion, compressor sales and LNG station construction
businesses. 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, changes in
economic conditions, our ability to successfully manage our
biomethane business, 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 and Northstar, the Company's success in obtaining
government grants or subsidies that support natural gas and
biomethane fuel use, 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-K filed on
March 10, 2011 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
Consolidated Balance Sheets
December 31, 2009 and 2010
(In thousands, except share
data)
December 31, 2009
2010 Assets Current assets: Cash and cash
equivalents $ 67,087 $ 55,194 Restricted cash 2,500 2,500 Accounts
receivable, net of allowance for doubtful accounts of $898 and $702
as of December 31, 2009 and December 31, 2010, respectively 16,340
45,645 Other receivables 8,862 27,280 Inventory, net 6,217 20,483
Prepaid expenses and other current assets 7,394
10,959 Total current assets 108,400 162,061 Land,
property and equipment, net 172,183 211,643 Notes receivable and
other long-term assets 8,186 15,059 Investments in other entities
10,537 10,748 Goodwill 21,572 71,814 Intangible assets, net of
accumulated amortization 34,921 112,174
Total assets $ 355,799 $ 583,499
Liabilities and
Stockholders’ Equity Current liabilities: Current portion of
long-term debt and capital lease obligations $ 2,439 $ 22,712
Accounts payable 14,775 28,635 Accrued liabilities 9,696 28,137
Deferred revenue 2,691 17,507 Total
current liabilities 29,601 96,991 Long-term debt and capital lease
obligations, less current portion 9,782 41,704 Other long-term
liabilities 36,040 28,588 Total
liabilities 75,423 167,283 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 69,610,098 shares at
December 31, 2009 and December 31, 2010, respectively 6 7
Additional paid-in capital 424,581 569,202 Accumulated deficit
(149,410 ) (151,926 ) Accumulated other comprehensive income (loss)
2,012 (3,996 ) Total Clean Energy Fuels Corp.
stockholders’ equity 277,189 413,287 Noncontrolling interest in
subsidiary 3,187 2,929 Total
stockholders’ equity 280,376 416,216
Total liabilities and stockholders’ equity $ 355,799 $
583,499
Clean Energy Fuels Corp. and
Subsidiaries
Consolidated Statements of
Operations
For the Three Months Periods and Years
Ended
December 31, 2009 and 2010
(In thousands, except share
data)
Three Months EndedDecember 31, Year
EndedDecember 31, 2009 2010 2009
2010 Revenue: Product revenues $ 37,134 $ 75,154 $
116,635 $ 189,836 Service revenues 5,069 8,002 14,868 21,998 Total
revenues 42,203 83,156 131,503 211,834 Operating expenses: Cost of
sales: Product cost of sales 23,980 47,533 76,766 132,911 Service
cost of sales 2,334 2,673 6,155 8,978 Derivative losses (gains):
Series I warrant valuation (442 ) (4,402 ) 17,367 (10,278 )
Selling, general and administrative 13,860 18,876 47,509 63,258
Depreciation and amortization 4,735 6,919 16,992 22,487 Total
operating expenses 44,467 71,599 164,789 217,356 Operating income
(loss) (2,264 ) 11,557 (33,286 ) (5,522 ) Interest income
(expense), net 337 (1,211 ) (32 ) (1,194 ) Other income (expense),
net (16 ) 2,385 (310 ) 2,080 Income (loss) from equity method
investments
113 225 244 427 Income (loss) before income taxes (1,830 ) 12,956
(33,384 ) (4,209 ) Income tax (expense) benefit (95 ) 600 (304 )
1,436 Net income (loss) (1,925 ) 13,556 (33,688 ) (2,773 ) Loss
(income) of noncontrolling interest 8 230 439 257 Net income (loss)
attributable to Clean Energy Fuels Corp. $ (1,917 ) $ 13,786 $
(33,249 ) $ (2,516 ) Income (loss) per share attributable to
Clean Energy Fuels Corp. Basic $ (0.03 ) $ 0.21 $ (0.60 ) $ (0.04 )
Diluted $ (0.03 ) $ 0.18 $ (0.60 ) $ (0.04 ) Weighted
average common shares outstanding Basic 59,750,687 67,235,359
55,021,961 62,549,311 Diluted 59,750,687 75,481,354 55,021,961
62,549,311
Included in net income (loss) are the
following amounts (in millions):
Three Months Ended
December 31,
Year Ended
December 31,
2009 2010
2009
2010 Construction Revenues 2.1 8.8 7.3
12.9 Construction Cost of Sales (2.0 ) (7.2 ) (6.6 ) (11.0 ) Fuel
Tax Credits 3.7 16.0 15.5 16.0 Stock Option Expense, Net of Tax
Benefits (3.5 ) (2.7 ) (14.1 ) (11.9 )
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