Clean Energy Fuels Corp. (NASDAQ: CLNE) today announced
operating results for the first quarter ended March 31, 2011.
Revenue for the first quarter ended March 31, 2011 rose 67% to
$65.3 million, up from $39.0 million for the first quarter of
2010.
Gasoline gallon equivalents (gallons) delivered for the first
quarter of 2011, which includes compressed natural gas (CNG),
liquefied natural gas (LNG), biomethane and the gallons associated
with providing operations & maintenance services, totaled 35.5
million gallons, up from 28.6 million gallons delivered in the same
period a year ago.
Adjusted EBITDA for the first quarter of 2011 was $3.9 million.
This compares with adjusted EBITDA of $1.0 million in the first
quarter of 2010. When comparing periods, the volumetric excise tax
credit (VETC) revenue for the first quarter of 2011 was $4.2
million, compared to $0 for the first quarter of 2010. The VETC
expired in December 2009, and was subsequently reinstated in the
fourth quarter of 2010, when it was made retroactive to January 1,
2010. Accordingly, the Company recorded $3.6 million of VETC
revenue in the fourth quarter of 2010 that applied to the first
quarter of 2010. Adjusted EBITDA is described below and reconciled
to the GAAP measure net income (loss) attributable to Clean
Energy.
Non-GAAP loss per share for the first quarter of 2011 was $0.05,
compared with a non-GAAP loss per share for the first quarter of
2010 of $0.07. Non-GAAP earnings (loss) per share is described
below and reconciled to the GAAP measure net income (loss)
attributable to Clean Energy.
Net loss for the first quarter of 2011 was $9.8 million, or
$0.14 per share, and included a non-cash charge of $3.3 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 $3.4 million related to stock-based compensation. This
compared with a net loss for the first quarter of 2010 of $24.4
million, or $0.41 per share, which included a non-cash charge of
$18.6 million related to marking to market the Series I warrants,
$3.0 million of non-cash stock-based compensation charges and an
alternative minimum tax (AMT) refund of $1.3 million recorded in
the first quarter of 2010.
Andrew J. Littlefair, Clean Energy's President and Chief
Executive Officer, stated, “We believe the prospects for our growth
are greater than ever. We are seeing a number of indications of
accelerating adoption rates for natural gas vehicles in the
heavy-duty sector where major trucking companies operate fleets
with high volume fuel usage. Dillon Transport’s shift to
LNG-powered trucks for transport of raw materials for
Owens-Corning, the UPS decision to work with us to fuel their fleet
of LNG-fueled trucks in the Las Vegas to California corridor, and
Fair Oaks Dairy’s move to LNG for its 24/7 fleet that serves Kroger
stores are just a few recent examples of the adoption of natural
gas fueling for heavy duty trucking. We plan to continue our focus
on developing a national LNG fueling corridor to support natural
gas truck deployment by regional and national fleet operators.
Meanwhile, the growth in the adoption in our traditional markets
continues as operators of refuse, transit, shuttle, taxi, airport
and municipal fleets expand their use of CNG after seeing
compelling economic and environmental benefits.”
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, and plus or minus
the foreign currency losses or gains on the Company’s purchase
notes issued as part of the acquisition of IMW, 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 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 March 31, (in 000s, except share
information)
2010 2011 Net Income (Loss)
Attributable to Clean Energy $ (24,367 ) $ (9,753 )
Stock-Based Compensation, Net of Tax Benefits 3,040 3,377
Mark-to-Market (Gain) Loss on Series I Warrants 18,605 3,300 AMT
Carry-Back Refund (1,300 ) — Foreign Currency (Gain) Loss on IMW
Purchase Notes — (341 ) Adjusted Net
Income (Loss) (4,022 ) (3,417 ) Diluted Weighted Average Common
Shares Outstanding 60,156,352 70,096,000
Non-GAAP Earnings
(Loss) Per Share $ (0.07 ) $ (0.05 )
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, and plus or minus the
foreign currency losses or gains on the Company’s notes issued as
part of the acquisition of IMW. 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 March 31, (in 000s)
2010
2011 Net Income (Loss) Attributable to Clean
Energy $ (24,367 ) $ (9,753 ) Income Tax (Benefit)
Expense (1,203 ) (735 ) Interest (Income) Expense, Net (109 ) 820
Depreciation and Amortization 4,991 7,210 Stock-Based Compensation,
Net of Tax Benefits 3,040 3,377 Mark-to-Market (Gain) Loss on
Series I Warrants 18,605 3,300 Foreign Currency (Gain) Loss on IMW
Purchase Notes — (341 )
Adjusted EBITDA
$ 956 $ 3,878
Conference Call
The Company will host an investor conference call today at 4:30
p.m. Eastern (1:30 p.m. Pacific). Investors interested in
participating in the live call can dial 1.877.407.4018 from the
U.S. and 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 Thursday, June 9, by
dialing 1.877.870.5176 (from the U.S.), or 1.858.384.5517 (from
outside the U.S.) and entering Replay Pin Number 371482. There also
will be a simultaneous, live webcast available on the Investor
Relations section of the Company's web site at
www.cleanenergyfuels.com. The webcast will be archived for replay
for 30 days.
About Clean Energy Fuels
Clean Energy Fuels 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 more than 22,700 vehicles at 238 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. Clean Energy del Peru, a 49% owned joint
venture, fuels vehicles at two stations and provides CNG to
commercial customers in Peru. We own (70%) and operate a landfill
gas facility in Dallas, Texas that produces renewable biomethane
and plan to build a second facility in Michigan. Clean Energy 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, vans, pick-up trucks and shuttle buses. IMW Industries,
Ltd., a wholly owned subsidiary based in Canada, is a leading
supplier of CNG equipment for vehicle fueling and industrial
applications with more than 1,200 installations in 24 countries.
For more information, visit 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
momentum in the Company’s fuel sales, anticipated growth in the
heavy-duty trucking market and in the Company’s traditional
markets, and the Company’s development of a national retail LNG
fueling corridor. 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-Q filed on May
9, 2011 with the SEC (www.sec.gov) contains 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, 2010 and March 31, 2011
(Unaudited)
(In thousands, except share
data)
December 31,2010 March
31,2011 Assets Current assets: Cash and cash
equivalents $ 55,194 $ 51,949 Restricted cash 2,500 4,893 Accounts
receivable, net of allowance for doubtful accounts of $702 and $783
as of December 31, 2010 and March 31, 2011, respectively 45,645
32,318 Other receivables 27,280 16,194 Inventory, net 20,483 26,994
Prepaid expenses and other current assets 10,959
11,970 Total current assets 162,061 144,318 Land,
property and equipment, net 211,643 217,384 Notes receivable and
other long-term assets 15,059 40,048 Investments in other entities
10,748 14,161 Goodwill 71,814 71,814 Intangible assets, net
112,174 109,438 Total assets $ 583,499
$ 597,163
Liabilities and Stockholders’ Equity
Current liabilities: Current portion of long-term debt and capital
lease obligations $ 22,712 $ 23,166 Accounts payable 28,635 20,614
Accrued liabilities 28,137 29,012 Deferred revenue 17,507
12,466 Total current liabilities 96,991 85,258
Long-term debt and capital lease obligations, less current portion
41,704 64,492 Other long-term liabilities 28,588
28,979 Total liabilities 167,283 178,729 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 69,610,098 shares and 70,269,071
shares at December 31, 2010 and March 31, 2011, respectively 7 7
Additional paid-in capital 569,202 580,473 Accumulated deficit
(151,926 ) (161,678 ) Accumulated other comprehensive loss
(3,996 ) (3,991 ) Total Clean Energy Fuels Corp.
stockholders’ equity 413,287 414,811 Noncontrolling interest in
subsidiary 2,929 3,623 Total
stockholders’ equity 416,216 418,434
Total liabilities and stockholders’ equity $ 583,499 $
597,163
Clean Energy Fuels Corp. and
Subsidiaries Condensed Consolidated Statements of
Operations For the Three Months Ended March 31, 2010
and 2011 (Unaudited) (In thousands, except share data)
Three Months EndedMarch 31, 2010
2011 Revenue: Product revenues $ 34,273 $ 58,532
Service revenues 4,716 6,809 Total revenues 38,989
65,341 Operating expenses: Cost of sales: Product cost of
sales 25,496 43,850 Service cost of sales 2,063 3,154 Derivative
(gains) losses: Series I warrant valuation 18,605 3,300 Selling,
general and administrative 13,649 18,030 Depreciation and
amortization 4,991 7,210 Total operating expenses
64,804 75,544 Operating income (loss) (25,815
)
(10,203
)
Interest income (expense), net 109 (820
)
Other income 43 601 Income from equity method investments 77
211 Loss before income taxes (25,586
)
(10,211
)
Income tax (expense) benefit 1,203 735 Net loss
(24,383 ) (9,476 ) Income (loss) of noncontrolling interest 16
(277 ) Net loss attributable to Clean Energy Fuels Corp. $
(24,367
)
$ (9,753
)
Loss per share attributable to Clean Energy Fuels Corp.
Basic and diluted $ (0.41
)
$ (0.14
)
Weighted average common shares outstanding Basic and diluted
60,156,352 70,096,000
Included in net loss are the following
amounts (in millions):
Three Months Ended
March 31,
2010 2011 Construction Revenues 0.1 6.3
Construction Cost of Sales — (5.1 ) Fuel Tax Credits — 4.2 Stock
Option Expense, Net of Tax Benefits (3.0 ) (3.4 )
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