Clean Energy Fuels Corp. (NASDAQ: CLNE) (Clean Energy or the
Company) today announced operating results for the second quarter
and six months ended June 30, 2013.
Revenue for the second quarter ended June 30, 2013 was $88.1
million, which is up from $69.8 million for the second quarter of
2012. For the six months ended June 30, 2013, revenue totaled
$181.2 million, which is up from $143.5 million a year ago. When
comparing periods, note that the Company recognized revenue
attributable to the volumetric excise tax credit (VETC) of $6.0
million and $32.2 million in the second quarter and first six
months of 2013, but did not recognize any revenue attributable to
VETC in the second quarter and first six months of 2012. The
American Taxpayer Relief Act, signed into law on January 2, 2013,
reinstated VETC through December 31, 2013 and made it retroactive
to January 1, 2012. The Company recognized $20.8 million of VETC
revenue in the first quarter of 2013 attributable to 2012 sales of
CNG and LNG. Also during the second quarter, the Company sold its
subsidiary BAF Technologies, Inc. and recognized a gain of $15.5
million on the transaction.
Gallons delivered (defined below) for the second quarter of 2013
totaled 52.6 million gallons, up 8% from 48.6 million gallons
delivered in the same period a year ago. Gallons delivered were up
13% for the second quarter of 2013 when excluding 2.1 million
gallons delivered in the second quarter of 2012 by the Company’s
Peruvian joint venture, which was sold in March of 2013. For the
six months ended June 30, 2013, gallons delivered totaled 102.5
million gallons, up from 92.3 million gallons for the six months
ended June 30, 2012.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated: “I am very encouraged by the significant
development that has taken place over the first half of the year in
both our core markets as well as in the long-haul trucking market’s
transition to natural gas. The 12-liter natural gas engines have
been well received by the early adopters and shippers are now
starting to request that their contract carriers make the switch to
natural gas. Clean Energy’s investment in ‘America's Natural Gas
Highway’ has laid the foundation to enable this transition to
natural gas fueled trucking throughout the country.”
Adjusted EBITDA for the second quarter of 2013 was $11.1
million. This compares with adjusted EBITDA of $(1.6) million in
the second quarter of 2012. For the six months ended June 30, 2013,
adjusted EBITDA was $31.2 million, compared with $(3.6) million for
the same period in 2012. Adjusted EBITDA is described below and
reconciled to the GAAP measure net loss attributable to Clean
Energy Fuels Corp.
Non-GAAP loss per share for the second quarter of 2013 was
$0.07, compared with a non-GAAP loss per share for the second
quarter of 2012 of $0.16. For the six months ended June 30, 2013,
non-GAAP loss per share was $0.03, compared with $0.33 per share
for the first six months in 2012. Non-GAAP loss per share is
described below and reconciled to the GAAP measure net loss
attributable to Clean Energy Fuels Corp.
On a GAAP basis, net loss for the second quarter of 2013 was
$11.9 million, or $0.13 per share, and included a non-cash loss of
$40,000 related to the accounting treatment that requires Clean
Energy to value its Series I warrants and mark them to market,
a non-cash charge of $5.5 million related to stock-based
compensation, and foreign currency losses of $0.2 million on the
Company’s IMW purchase notes. This compares with a net loss for the
second quarter of 2012 of $11.3 million, or $0.13 per share, which
included a non-cash gain of $8.9 million related to marking to
market the Series I warrants, $5.8 million of non-cash
stock-based compensation charges, and foreign currency losses of
$0.5 million on the IMW purchase notes.
Net loss for the six month period ended June 30, 2013, which
included a non-cash charge of $0.5 million related to the valuation
of the Series I warrants, non-cash stock-based compensation charges
of $11.7 million, and foreign currency losses of $0.4 million on
its IMW purchase notes, was $15.8 million, or $0.17 per share. This
compares with a net loss in the six months ended June 30, 2012 of
$43.2 million, or $0.50 per share, which included a non-cash charge
for the Series I warrants of $4.6 million, non-cash stock-based
compensation charges of $10.4 million, and foreign currency losses
of $0.1 million on its IMW purchase notes.
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,
when specified, 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 management 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, 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
basis. 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 the Company’s 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 table below shows non-GAAP EPS and also reconciles these
figures to the GAAP measure net loss attributable to Clean Energy
Fuels Corp.:
Three Months Ended June 30, Six Months
Ended June 30, (in 000s, except per-share amounts)
2012 2013
2012 2013 Net Loss
Attributable to Clean Energy Fuels Corp. $ (11,294 ) $ (11,943
) $ (43,199 ) $ (15,814 ) Stock Based Compensation, Net of Tax
Benefits 5,768 5,451 10,448 11,663 Mark-to-Market (Gain) Loss on
Series I Warrants (8,899 ) 39 4,607 505 Foreign Currency Loss on
IMW Purchase Notes 452 249 50
441 Adjusted Net Loss $ (13,973 ) $ (6,204 ) $
(28,094 ) $ (3,205 ) Diluted Weighted Average Common Shares
Outstanding 86,625,655 93,985,438 86,155,678 93,561,302
Non-GAAP
Loss Per Share $ (0.16 ) $ (0.07 ) $ (0.33 ) $ (0.03 )
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 or minus the foreign currency losses or
gains on the Company’s notes issued as part of its acquisition of
IMW, plus stock-based compensation charges, net of related tax
benefits, and 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 determine
elements of executive and employee compensation.
The table below shows Adjusted EBITDA and also reconciles these
figures to the GAAP measure net loss attributable to Clean Energy
Fuels Corp.:
Three Months Ended June 30, Six Months
Ended June 30, (in 000s) 2012
2013 2012
2013 Net Loss Attributable to Clean Energy
Fuels Corp. $ (11,294 ) $ (11,943 ) $ (43,199 ) $ (15,814 )
Income Tax Expense 172 293 418 2,098 Interest Expense, Net 3,321
6,282 7,023 11,353 Depreciation and Amortization 8,907 10,777
17,051 20,935 Foreign Currency Loss on IMW Purchase Notes 452 249
50 441 Stock Based Compensation, Net of Tax Benefits 5,768 5,451
10,448 11,663 Mark-to-Market (Gain) Loss on Series I Warrants
(8,899 ) 39 4,607 505
Adjusted EBITDA $ (1,573 ) $ 11,148 $ (3,602 ) $
31,181
Gallons Delivered
The Company defines “gallons delivered” as its compressed
natural gas (CNG), liquefied natural gas (LNG), renewable natural
gas (RNG) and the gallons associated with providing operations and
maintenance services delivered to its customers during the
period.
Today’s Conference Call
The Company will host an investor conference call today at
4:30 p.m. Eastern time (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, through Sunday, September 8,
2013, which can be reached by dialing 1.877.870.5176 from the U.S.,
or 1.858.384.5517 from international locations, and entering Replay
Pin Number 418094. There also will be a simultaneous, live webcast
available on the Investor Relations section of the Company’s web
site at www.cleanenergyfuels.com, which will be available for
replay for 30 days.
About Clean Energy Fuels
Clean Energy Fuels Corp. (Nasdaq: CLNE) is the largest provider
of natural gas fuel for transportation in North America. We build
and operate compressed natural gas (CNG) and liquefied natural gas
(LNG) fueling stations; manufacture CNG and LNG equipment and
technologies for ourselves and other companies; and develop
renewable natural gas (RNG) production facilities. 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 America’s Natural Gas Highway, the transition of the
heavy-duty trucking industry to natural gas, market acceptance of
natural gas as a vehicle fuel, future growth and sales
opportunities in all of the Company’s markets, which include
trucking, refuse, airport, taxi and transit, the availability of
natural gas engines and natural gas heavy-duty trucks, the benefits
of natural gas relative to diesel and gasoline, and the recognition
of revenue attributable to the VETC. 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 Company’s failure to recognize
the anticipated benefits of building America’s Natural Gas Highway,
the availability and deployment of, as well as the demand for,
natural gas engines that are well-suited for the U.S. long-haul,
heavy-duty truck market, future availability of equity or debt
financing needed to fund the growth of the Company’s business, the
Company’s ability to source and supply sufficient LNG to meet the
needs of its business, the Company’s ability to effectively manage
its current LNG plants and the construction of new LNG plants, the
Company’s ability to efficiently manage its growth and retain and
hire key personnel, the acceptance of natural gas vehicles in the
Company’s markets, the availability of natural gas vehicles,
relaxation or waiver of fuel emission standards, the Company’s
ability to capture a substantial share of the anticipated growth in
the market for natural gas fuel and otherwise compete successfully,
the Company’s failure to manage risks and uncertainties related to
its international operations, construction and permitting delays at
station construction projects, the Company’s ability to integrate
acquisitions, the availability of tax and related government
incentives for natural gas fueling and vehicles, compliance with
governmental regulations and the Company’s ability to manage and
grow its RNG business. 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 8, 2013 with the SEC (www.sec.gov),
contains risk factors that 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,
2012 and June 30, 2013 (Unaudited) (In
thousands, except share data) December 31,
June 30, 2012 2013
Assets Current assets: Cash and cash equivalents $
108,522 $ 86,020 Restricted cash 8,445 8,568 Short-term investments
38,175 62,238 Accounts receivable, net of allowance for doubtful
accounts of $905 and $811 as of December 31, 2012 and June 30,
2013, respectively 57,594 50,535 Other receivables 17,808 30,049
Inventory, net 38,152 35,950 Prepaid expenses and other current
assets 16,002 16,041 Total current
assets 284,698 289,401 Land, property and equipment, net 428,177
456,144 Restricted cash 13,208 33,378 Notes receivable and other
long-term assets 71,389 70,010 Investments in other entities 2,581
— Goodwill 75,865 89,086 Intangible assets, net 99,282
84,436 Total assets $ 975,200 $
1,022,455
Liabilities and Stockholders’ Equity
Current liabilities: Current portion of long-term debt and capital
lease obligations $ 30,389 $ 28,439 Accounts payable 39,216 22,931
Accrued liabilities 30,794 42,306 Deferred revenue 13,521
14,800 Total current liabilities 113,920
108,476 Long-term debt and capital lease obligations, less current
portion 300,636 339,691 Other long-term liabilities 14,014
15,576 Total liabilities 428,570 463,743
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 87,634,478
shares and 89,318,022 shares at December 31, 2012 and June 30,
2013, respectively 9 9 Additional paid-in capital 837,367 871,443
Accumulated deficit (300,814 ) (316,628 ) Accumulated other
comprehensive income 6,151 — Total
Clean Energy Fuels Corp. stockholders’ equity 542,713 554,824
Noncontrolling interest in subsidiary 3,917
3,888 Total stockholders’ equity 546,630
558,712 Total liabilities and stockholders’ equity $
975,200 $ 1,022,455
Clean Energy Fuels
Corp. and Subsidiaries Condensed Consolidated
Statements of Operations For the Three Months and Six
Months Ended June 30, 2012 and 2013 (Unaudited)
(In thousands, except share and per share data)
Three Months Ended Six Months
Ended June 30, June 30, 2012
2013 2012
2013 Revenue: Product revenues $ 57,705 $
78,375 $ 123,481 $ 161,858 Service revenues 12,137
9,741 19,995 19,301 Total
revenues 69,842 88,116 143,476 181,159 Operating expenses: Cost of
sales: Product cost of sales 43,691 58,925 95,593 105,739 Service
cost of sales 4,839 3,016 8,823 6,943 Derivative (gains) losses:
Series I warrant valuation (8,899 ) 39 4,607 505 Selling, general
and administrative 27,916 35,187 52,766 68,063 Depreciation and
amortization 8,907 10,777 17,051
20,935 Total operating expenses 76,454
107,944 178,840 202,185
Operating loss (6,612 ) (19,828 ) (35,364 ) (21,026 )
Interest expense, net (3,321 ) (6,282 ) (7,023 ) (11,353 ) Other
expense, net (1,177 ) (1,103 ) (336 ) (1,493 ) Income (loss) from
equity method investment 72 — 163 (76 ) Gain from sale of equity
method investment — — — 4,705 Gain from sale of subsidiary —
15,498 — 15,498
Loss before income taxes (11,038 ) (11,715 ) (42,560 ) (13,745 )
Income tax expense (172 ) (293 ) (418 )
(2,098 ) Net loss (11,210 ) (12,008 ) (42,978 ) (15,843 ) Loss
(income) of noncontrolling interest (84 ) 65
(221 ) 29 Net loss attributable to Clean
Energy Fuels Corp. $ (11,294 ) $ (11,943 ) $ (43,199 ) $ (15,814 )
Loss per share attributable to Clean Energy Fuels Corp.: Basic $
(0.13 ) $ (0.13 ) $ (0.50 ) $ (0.17 ) Diluted $ (0.13 ) $ (0.13 ) $
(0.50 ) $ (0.17 ) Weighted-average common shares outstanding: Basic
86,625,655 93,985,438 86,155,678
93,561,302 Diluted 86,625,655
93,985,438 86,155,678 93,561,302
Included in net loss are the following
amounts (in millions):
Three Months Ended Six Months
Ended June 30, June 30, 2012
2013 2012
2013 Construction Revenues $ 7.5 $ 12.1 $ 22.6
$ 15.0 Construction Cost of Sales (6.8 ) (10.0 ) (21.1 ) (12.7 )
Fuel Tax Credits — 6.0 — 32.2 Stock-based Compensation Expense, Net
of Tax Benefits (5.8 ) (5.5 ) (10.4 ) (11.7 )
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