Clean Energy Fuels Corp. (NASDAQ: CLNE) (Clean Energy or the
Company) today announced operating results for the third quarter
and nine months ended September 30, 2013.
Gallons delivered (defined below) for the third quarter of 2013
totaled 56.4 million gallons, compared to 50.9 million gallons
delivered in the same period a year ago. Gallons delivered were up
17% for the third quarter of 2013 when excluding 2.5 million
gallons delivered in the third quarter of 2012 by the Company’s
Peruvian joint venture, which was sold in March of 2013. For the
nine months ended September 30, 2013, gallons delivered totaled
158.9 million gallons, up from 143.2 million gallons for the nine
months ended September 30, 2012.
Revenue for the third quarter ended September 30, 2013 was $86.3
million. Revenue for the third quarter ended September 30, 2012 was
$91.5 million, which included $17.6 million in construction revenue
related to the sale of two large CNG stations to one transit
customer. For the nine months ended September 30, 2013, revenue
totaled $267.5 million, which is up from $234.9 million a year ago.
Additionally, when comparing periods, note that the Company
recognized revenue attributable to the volumetric excise tax credit
(VETC) of $6.0 million and $38.1 million in the third quarter and
first nine months of 2013, but did not recognize any revenue
attributable to VETC in the third quarter and first nine 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.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated: “The natural gas fuel market is on the
cusp of unprecedented levels of growth, and I am proud of Clean
Energy’s role in leading the way with our expanding network of both
CNG & LNG stations to meet the growing needs of our fleet
customers. With the recent introduction of the 12-liter engine and
our strategic alliance with GE Capital to help offset the
incremental cost of natural gas trucks, the final barriers to
adoption are being removed for America’s trucking fleets to take
advantage of both the economic and environmental benefits of
natural gas fueling.”
Adjusted EBITDA for the third quarter of 2013 was $4.2 million.
This compares with adjusted EBITDA of $(3.1) million in the third
quarter of 2012. For the nine months ended September 30, 2013,
adjusted EBITDA was $35.4 million, compared with $(6.7) 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 third quarter of 2013 was $0.16,
compared with a non-GAAP loss per share for the third quarter of
2012 of $0.19. For the nine months ended September 30, 2013,
non-GAAP loss per share was $0.19, compared with $0.52 per share
for the first nine 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 third quarter of 2013 was
$18.8 million, or $0.20 per share, and included a non-cash gain of
$1.4 million 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 $5.7 million related to stock-based
compensation, and foreign currency gains of $0.2 million on the
Company’s IMW purchase notes. This compares with a net loss for the
third quarter of 2012 of $16.3 million, or $0.19 per share, which
included a non-cash gain of $5.7 million related to marking to
market the Series I warrants, $6.0 million of non-cash
stock-based compensation charges, and foreign currency gains of
$0.7 million on the IMW purchase notes.
Net loss for the nine month period ended September 30, 2013,
which included a non-cash gain of $0.9 million related to the
valuation of the Series I warrants, non-cash stock-based
compensation charges of $17.3 million, and foreign currency losses
of $0.3 million on its IMW purchase notes, was $34.7 million, or
$0.37 per share. This compares with a net loss in the nine months
ended September 30, 2012 of $59.5 million, or $0.69 per share,
which included a non-cash gain for the Series I warrants of $1.1
million, non-cash stock-based compensation charges of $16.5
million, and foreign currency gains of $0.7 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 Nine Months
Ended Sept. 30, Sept. 30, (in 000s, except
per-share amounts) 2012 2013 2012
2013 Net Loss Attributable to Clean Energy Fuels
Corp. $ (16,321 ) $ (18,836 ) $ (59,520 ) $ (34,650 ) Stock
Based Compensation, Net of Tax Benefits 6,044 5,684 16,492 17,347
Mark-to-Market Gain on Series I Warrants (5,692 ) (1,366 ) (1,085 )
(861 ) Foreign Currency (Gain) Loss on IMW Purchase Notes
(741 ) (150 ) (691 ) 291 Adjusted Net
Loss $ (16,710 ) $ (14,668 ) $ (44,804 ) $ (17,873 ) Diluted
Weighted Average Common Shares Outstanding 87,006,024 94,338,525
86,441,196 93,823,223
Non-GAAP Loss Per Share $ (0.19 ) $
(0.16 ) $ (0.52 ) $ (0.19 )
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 Nine Months
Ended Sept. 30, Sept. 30, (in 000s)
2012 2013 2012 2013
Net Loss Attributable to Clean Energy Fuels Corp. $ (16,321
) $ (18,836 ) $ (59,520 ) $ (34,650 ) Income Tax Expense 277 558
695 2,656 Interest Expense, Net 4,314 7,418 11,337 18,771
Depreciation and Amortization 9,047 10,924 26,098 31,859 Foreign
Currency (Gain) Loss on IMW Purchase Notes (741 ) (150 ) (691 ) 291
Stock Based Compensation, Net of Tax Benefits 6,044 5,684 16,492
17,347 Mark-to-Market Gain on Series I Warrants (5,692 )
(1,366 ) (1,085 ) (861 )
Adjusted
EBITDA $ (3,072 ) $ 4,232 $ (6,674 ) $ 35,413
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 Saturday, December 7,
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 13572489. 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 growth in the natural gas fuels market, the benefits of
the Company’s strategic alliance with GE Capital to help offset the
incremental cost of natural gas trucks, 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 November 7, 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 September 30, 2013 (Unaudited) (In thousands,
except share data) December 31,
September 30, 2012 2013 Assets Current
assets: Cash and cash equivalents $ 108,522 $ 352,136 Restricted
cash 8,445 10,632 Short-term investments 38,175 54,307 Accounts
receivable, net of allowance for doubtful accounts of $905 and $768
as of December 31, 2012 and September 30, 2013, respectively 57,594
56,259 Other receivables 17,808 27,685 Inventory, net 38,152 39,720
Prepaid expenses and other current assets 16,002 17,402
Total current assets 284,698 558,141 Land, property and equipment,
net 428,177 468,224 Restricted cash 13,208 564 Notes receivable and
other long-term assets 71,389 75,918 Investments in other entities
2,581
—
Goodwill 75,865 90,031 Intangible assets, net 99,282 83,706
Total assets $ 975,200 $ 1,276,584
Liabilities and
Stockholders’ Equity Current liabilities: Current portion of
long-term debt and capital lease obligations $ 30,389 $ 25,797
Accounts payable 39,216 30,861 Accrued liabilities 30,794 49,957
Deferred revenue 13,521 13,501 Total current liabilities
113,920 120,116 Long-term debt and capital lease obligations, less
current portion 300,636
529,424
Long-term debt, related party
—
65,000
Other long-term liabilities 14,014 14,061 Total liabilities
428,570 728,601 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 89,355,397 shares at December 31, 2012 and
September 30, 2013, respectively 9 9 Additional paid-in capital
837,367 877,351 Accumulated deficit (300,814 ) (335,464 )
Accumulated other comprehensive income 6,151 2,158 Total
Clean Energy Fuels Corp. stockholders’ equity 542,713 544,054
Noncontrolling interest in subsidiary 3,917 3,929 Total
stockholders’ equity 546,630 547,983 Total liabilities and
stockholders’ equity $ 975,200 $ 1,276,584
Clean Energy Fuels Corp. and Subsidiaries Condensed
Consolidated Statements of Operations For the Three Months
and Nine Months Ended September 30, 2012 and 2013
(Unaudited) (In thousands, except share and per share
data) Three Months Ended Nine
Months Ended September 30, September 30,
2012 2013 2012 2013
Revenue: Product revenues $ 82,720 $ 75,389 $ 206,201 $ 237,247
Service revenues 8,739 10,932 28,734
30,233 Total revenues 91,459 86,321 234,935 267,480
Operating expenses: Cost of sales: Product cost of sales 67,392
51,941 162,985 157,680 Service cost of sales 3,839 2,866 12,662
9,809 Derivative gains: Series I warrant valuation (5,692 ) (1,366
) (1,085 ) (861 ) Selling, general and administrative 30,557 33,511
83,323 101,574 Depreciation and amortization 9,047
10,924 26,098 31,859 Total operating
expenses 105,143 97,876 283,983
300,061 Operating loss (13,684 ) (11,555 ) (49,048 ) (32,581
) Interest expense, net (4,314 ) (7,418 ) (11,337 ) (18,771 ) Other
income (expense), net 1,914 736 1,578 (757 ) Income (loss) from
equity method investment 152 — 315 (76 ) Gain from sale of equity
method investment — — — 4,705 Gain from sale of subsidiary —
— — 15,498 Loss before income
taxes (15,932 ) (18,237 ) (58,492 ) (31,982 ) Income tax expense
(277 ) (558 ) (695 ) (2,656 ) Net loss (16,209 )
(18,795 ) (59,187 ) (34,638 ) Income of noncontrolling interest
(112 ) (41 ) (333 ) (12 ) Net loss attributable to
Clean Energy Fuels Corp. $ (16,321 ) $ (18,836 ) $ (59,520 ) $
(34,650 ) Loss per share attributable to Clean Energy Fuels Corp.:
Basic $ (0.19 ) $ (0.20 ) $ (0.69 ) $ (0.37 ) Diluted $ (0.19 ) $
(0.20 ) $ (0.69 ) $ (0.37 ) Weighted-average common shares
outstanding: Basic 87,006,024 94,338,525
86,441,196 93,823,223 Diluted
87,006,024 94,338,525 86,441,196
93,823,223
Included in net loss are the following amounts (in
millions):
Three Months Ended Nine Months
Ended Sept. 30, Sept. 30, 2012
2013 2012 2013 Construction Revenues $
31.0 $ 5.2 $ 53.6 $ 20.2 Construction Cost of Sales (28.4 ) (3.9 )
(49.5 ) (16.6 ) Fuel Tax Credits — 6.0 — 38.1 Stock-based
Compensation Expense, Net of Tax Benefits (6.0 ) (5.7 ) (16.5 )
(17.3 )
Clean Energy Fuels Corp.Investor Contact:Tony Kritzer,
949-437-1403Director of Investor CommunicationsorNews Media
Contact:Gary Foster, 949-437-1113Senior Vice President,
Corporate Communications
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