Clean Energy Fuels Corp. (NASDAQ: CLNE) (Clean Energy or the
Company) today announced operating results for the first quarter
ended March 31, 2014.
Gallons delivered (defined below) for the first quarter of 2014
totaled 59.3 million gallons, compared to 49.9 million gallons
delivered in the same period a year ago. Gallons delivered were up
24% for the first quarter of 2014 when excluding 2.2 million
gallons delivered in the first quarter of 2013 by the Company’s
Peruvian joint venture, which was sold in March of 2013.
Revenue for the first quarter ended March 31, 2014 was $95.3
million, which was up from $93.0 million for the first quarter of
2013. Excluding the VETC revenue in the first quarter of 2013,
revenue increased 43% between periods. When comparing periods, note
that the Company recognized revenue attributable to the volumetric
excise tax credit (VETC) of $26.2 million in the quarter ended
March 31, 2013, but did not recognize any revenue attributable to
VETC in the first quarter of 2014 as the legislation under which
the Company received such revenue expired on December 31, 2013.
Andrew J. Littlefair, Clean Energy's President and Chief
Executive Officer, stated “We believe our years of experience and
leadership position in established markets like refuse and transit
are positioning us extremely well to capitalize on the young, but
significant opportunity in the heavy-duty truck market. Opening
stations and adding incremental volume to existing stations are top
priorities for our company and we continue to make significant
progress toward those goals.”
Adjusted EBITDA for the first quarter of 2014 was $(6.8)
million. This compares with adjusted EBITDA of $20.0 million in the
first quarter of 2013. Adjusted EBITDA in the first quarter of 2013
included $26.2 million of VETC revenue. 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 first quarter of 2014 was
$(0.30), compared with non-GAAP earnings per share for the first
quarter of 2013 of $0.03. Non-GAAP loss per share in the first
quarter of 2013 included $26.2 million of VETC revenue. 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 first quarter of 2014 was
$28.6 million, or $0.30 per share, and included a non-cash gain of
$4.5 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 $3.4 million related to stock-based
compensation, foreign currency losses of $0.3 million on the
Company’s purchase notes issued in September 2010 in connection
with the Company’s acquisition of IMW Industries, Ltd. (IMW), a
$0.5 million write down of the value of the remaining shares the
Company expects to receive from Westport Innovations, Inc. from the
sale of its former subsidiary BAF Technologies, Inc. (WPRT Holdback
Shares Write-Down), and $0.1 million in additional lease exit
charges related to the move of the Company’s headquarters (HQ Lease
Exit). This compares with a net loss for the first quarter of 2013
of $3.9 million, or $0.04 per share, which included a non-cash loss
of $0.5 million related to marking to market the Series I warrants,
$6.2 million of non-cash stock-based compensation charges, and
foreign currency losses of $0.2 million on the 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 Fuels Corp., 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 IMW purchase notes, plus
the WPRT Holdback Shares Write-Down, and plus the HQ Lease Exit,
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 the
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 IMW purchase notes 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’s management believes that excluding the WPRT Holdback
Shares Write-Down and the HQ Lease Exit amounts is useful to
investors because they are not part of 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 March 31, (in 000s, except
per-share amounts) 2013 2014 Net Loss
Attributable to Clean Energy Fuels Corp. $ (3,871 ) $ (28,593 )
Stock Based Compensation, Net of Tax Benefits 6,212 3,420
Mark-to-Market Loss (Gain) on Series I Warrants 466 (4,455 )
Foreign Currency Loss on IMW Purchase Notes 192 343 WPRT Holdback
Shares Write-Down — 463 HQ Lease Exit — 55 Adjusted Net Income
(Loss) $ 2,999 $ (28,767 ) Diluted Weighted Average Common Shares
Outstanding 93,132,454 94,676,325
Non-GAAP Loss Per Share
$ 0.03 $ (0.30 )
Adjusted EBITDA
Adjusted EBITDA is defined as net income (loss) attributable to
Clean Energy Fuels Corp., 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 IMW purchase notes, 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 WPRT Holdback Shares Write-Down, and plus the
HQ Lease Exit. 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 March 31, (in 000s)
2013 2014 Net Loss Attributable to Clean
Energy Fuels Corp. $ (3,871 ) $ (28,593 ) Income Tax Expense
1,805 962 Interest Expense, Net 5,071 9,510
Depreciation and Amortization
10,158 11,515 Foreign Currency Loss on IMW Purchase Notes 192 343
Stock Based Compensation, Net of Tax Benefits 6,212 3,420
Mark-to-Market Loss (Gain) on Series I Warrants 466 (4,455 ) WPRT
Holdback Shares Write-Down — 463 HQ Lease Exit — 55
Adjusted EBITDA $ 20,033 $ (6,780 )
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, June 8, 2014, 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
13580799. 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 CNG and LNG fueling stations; manufacture CNG and LNG
equipment and technologies for ourselves and other companies;
develop RNG production facilities; and deliver more CNG, LNG, and
Redeem RNG fuel than any other company in the U.S. 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
the transition of the heavy-duty trucking industry to natural gas,
opening and adding incremental volume to the Company’s fueling
infrastructure, the Company establishing relationships with new
customers and expanding relationships with existing customers, and
future growth and sales opportunities in all of the Company’s
markets, which include trucking, refuse, airport, taxi and transit.
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
CNG and LNG stations, 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 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, 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, 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-K, filed on February 27,
2014 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,
2013 and March 31, 2014 (Unaudited) (In
thousands, except share data) December
31,2013 March 31,2014 Assets
Current assets: Cash and cash equivalents $ 240,033 $ 154,328
Restricted cash 8,403 11,923 Short-term investments 138,240 164,482
Accounts receivable, net of allowance for doubtful accounts of $832
and $987 as of December 31, 2013 and March 31, 2014, respectively
53,473 60,144 Other receivables 26,285 19,266 Inventory, net 33,822
38,292 Prepaid expenses and other current assets 20,840 20,481
Total current assets 521,096 468,916 Land, property and equipment,
net 487,854 520,984 Notes receivable and other long-term assets
73,697 72,582 Goodwill 88,548 86,869 Intangible assets, net 79,770
75,643 Total assets $ 1,250,965 $ 1,224,994
Liabilities and
Stockholders’ Equity Current liabilities: Current portion of
long-term debt and capital lease obligations $ 23,401 $ 14,543
Accounts payable 33,541 35,394 Accrued liabilities 46,745 42,575
Deferred revenue 16,419 18,563 Total current liabilities 120,106
111,075 Long-term debt and capital lease obligations, less current
portion 532,017 543,320 Long-term debt, related party 65,000 65,000
Other long-term liabilities 15,304 11,350 Total liabilities 732,427
730,745 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
89,364,397 shares and 89,858,816 shares at December 31, 2013 and
March 31, 2014, respectively 9 9 Additional paid-in capital 883,045
890,880 Accumulated deficit (367,782 ) (396,375 ) Accumulated other
comprehensive loss (700 ) (4,160 ) Total Clean Energy Fuels Corp.
stockholders’ equity 514,572 490,354 Noncontrolling interest in
subsidiary 3,966 3,895 Total stockholders’ equity 518,538 494,249
Total liabilities and stockholders’ equity $ 1,250,965 $ 1,224,994
Clean Energy Fuels Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three Months Ended March 31, 2013 and 2014
(In thousands, except share and per share data)
Three Months EndedMarch 31, 2013
2014 Revenue: Product revenues $ 83,483 $ 85,789 Service
revenues 9,560 9,486 Total revenues 93,043 95,275 Operating
expenses: Cost of sales (exclusive of depreciation and amortization
shown separately below): Product cost of sales 46,814 67,867
Service cost of sales 3,927 3,764 Derivative (gains) losses: Series
I warrant valuation 466 (4,455 ) Selling, general and
administrative 32,876 33,490 Depreciation and amortization 10,158
11,515 Total operating expenses 94,241 112,181 Operating loss
(1,198 ) (16,906 ) Interest expense, net (5,071 ) (9,510 ) Other
expense, net (390 ) (1,286 ) Loss from equity method investment (76
) — Gain from sale of equity method investment 4,705 — Loss before
income taxes (2,030 ) (27,702 ) Income tax expense (1,805 ) (962 )
Net loss (3,835 ) (28,664 ) (Income) loss of noncontrolling
interest (36 ) 71 Net loss attributable to Clean Energy Fuels Corp.
$ (3,871 ) $ (28,593 ) Loss per share attributable to Clean Energy
Fuels Corp.: Basic $ (0.04 ) $ (0.30 ) Diluted $ (0.04 ) $ (0.30 )
Weighted-average common shares outstanding: Basic 93,132,454
94,676,325 Diluted 93,132,454 94,676,325
Included in net loss are the following amounts (in
millions):
Three Months EndedMarch 31, 2013
2014 Construction Revenues $ 2.9 $ 16.3 Construction Cost of
Sales (2.7 ) (13.4 ) Fuel Tax Credits 26.2 0.0 Stock-based
Compensation Expense, Net of Tax Benefits (6.2 ) (3.4 )
Clean Energy Fuels Corp.Investor Contact:Tony
KritzerDirector of Investor Communications949.437.1403orNews
Media Contact:Gary FosterSenior Vice President, Corporate
Communications949.437.1113
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