Clean Energy Fuels Corp. (NASDAQ: CLNE) (Clean Energy or the
Company) today announced operating results for the third quarter
ended September 30, 2014.
Gallons delivered (defined below) for the third quarter of 2014
totaled 68.6 million gallons, up 22% from the 56.4 million gallons
delivered in the same period a year ago. For the nine months ended
September 30, 2014, gallons delivered totaled 192.7 million
gallons, up from 158.9 million gallons delivered in the nine months
ended September 30, 2013.
Revenue for the third quarter ended September 30, 2014 was
$103.4 million, up from $86.3 million for the third quarter of
2013. Excluding the VETC (defined below) revenue recorded in the
third quarter of 2013, revenue increased 29% between periods. For
the nine months ended September 30, 2014, revenue totaled $296.8
million, up from $267.5 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 $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 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: “Once again, Clean Energy has delivered
very healthy results this quarter. We continue to get closer to
breakeven Adjusted EBITDA, and we produced over 20% growth in our
delivered volumes. What is so encouraging about this robust number
is that it was primarily driven by our established businesses of
transit and refuse. I am very encouraged that this type of overall
volume growth should continue with the anticipated volumes from the
growing number of heavy-duty truck fleets that are testing natural
gas trucks along with new businesses we are entering, such as
“virtual natural gas pipelines” with our investment in NG
Advantage.”
Adjusted EBITDA for the third quarter of 2014 was $(2.0)
million. This compares with Adjusted EBITDA of $4.2 million in the
third quarter of 2013. For the nine month period ended September
30, 2014, Adjusted EBITDA was $(13.5) million, compared with $35.4
million for the same period in 2013. Adjusted EBITDA in the third
quarter of 2013 and in the first nine months of 2013 included $6.0
million and $38.1 million, respectively, of VETC revenue.
Additionally, Adjusted EBITDA in the nine months ended September
30, 2013 included a $15.5 million gain on the Company’s sale of one
of its subsidiaries and a $4.7 million gain on the Company’s sale
of its ownership interest in its Peruvian joint venture. 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 2014 was $0.27,
compared with non-GAAP loss per share for the third quarter of 2013
of $0.16. For the nine month period ended September 30, 2014,
non-GAAP loss per share was $0.86, compared with non-GAAP loss per
share of $0.19 for the first nine months in 2013. Non-GAAP loss per
share in the third quarter of 2013 and in the first nine months of
2013 included $6.0 million and $38.1 million, respectively, of VETC
revenue. In addition, the non-GAAP loss per share amount for the
nine month period ended September 30, 2013 included a $15.5 million
gain on the sale of one of the Company’s subsidiaries and a $4.7
million gain on the Company’s sale of its ownership interest in its
Peruvian joint venture. 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 attributed to Clean Energy Fuels Corp.
for the third quarter of 2014 was $30.1 million, or $0.32 per
share, and included a non-cash gain of $3.3 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 $2.8
million related to stock-based compensation, a $4.7 million charge
related to a mining power project in Australia where the Company’s
IMW subsidiary incurred significant cost overruns (IMW Australia
Project), 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 third quarter of 2013 of $18.8
million, or $0.20 per share, that included a non-cash gain of $1.4
million gain 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 purchase notes issued in September
2010 in connection with the acquisition of the business of IMW (IMW
Purchase Notes).
Net loss attributable to Clean Energy Fuels Corp. for the nine
month period ended September 30, 2014 was $91.0 million, or $0.96
per share, which included a non-cash gain of $5.4 million related
to the valuation of the Series I warrants, non-cash stock-based
compensation charges of $9.2 million, foreign currency losses of
$0.3 million on the IMW Purchase Notes, a $0.1 million charge from
the fair value adjustment of the remaining shares the Company
received from Westport Innovations, Inc. from the sale of its
former subsidiary BAF Technologies, Inc. (WPRT Holdback Shares
Write-Down), a $4.7 million charge related to the IMW Australia
Project, and a $0.9 million charge related to the HQ Lease Exit.
This compares with a net loss in the nine months ended September
30, 2013 of $34.7 million, or $0.37 per share, 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 the IMW Purchase Notes.
Non-GAAP Financial Measures
To supplement the Company’s condensed 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 the Company’s management believes 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 (or other items that may arise in the future
as the Company’s management deems appropriate), 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. Management compensates for these limitations 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) attributable 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 or minus the WPRT Holdback Shares Write-Down, plus the
IMW Australia Project, 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 IMW business as
opposed to the core operations of the Company. The Company’s
management believes that excluding the WPRT Holdback Shares
Write-Down, the IMW Australia Project and the HQ Lease Exit amounts
is useful to investors because they are not part of or
representative 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 Nine Months Ended
Sept. 30, Sept. 30, (in 000s, except per-share
amounts) 2013 2014
2013 2014
Net Loss Attributable to Clean Energy Fuels Corp. $ (18,836
) $ (30,093 ) $ (34,650 ) $ (90,992 ) Stock Based Compensation, Net
of Tax Benefits 5,684 2,809 17,347 9,207 Mark-to-Market (Gain) Loss
on Series I Warrants (1,366 ) (3,255 ) (861 ) (5,424 ) Foreign
Currency (Gain) Loss on IMW Purchase Notes (150 ) — 291 343 WPRT
Holdback Shares Write-Down — — — 122 IMW Australia Project — 4,657
— 4,657 HQ Lease Exit — 64 —
876 Adjusted Net Loss $ (14,668 ) $ (25,818 )
$ (17,873 ) $ (81,211 ) Diluted Weighted Average Common Shares
Outstanding 94,338,525 94,058,496 93,823,223 94,529,206
Non-GAAP
Loss Per Share $ (0.16 ) $ (0.27 ) $ (0.19 ) $ (0.86 )
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 or minus the WPRT Holdback Shares Write-Down, plus
the IMW Australia Project 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 Nine Months Ended
Sept. 30, Sept. 30, (in 000s)
2013 2014
2013 2014 Net Loss
Attributable to Clean Energy Fuels Corp. $ (18,836 ) $ (30,093
) $ (34,650 ) $ (90,992 ) Income Tax Expense 558 811 2,656 1,920
Interest Expense, Net 7,418 10,676 18,771 30,316 Depreciation and
Amortization 10,924 12,325 31,859 35,448 Foreign Currency (Gain)
Loss on IMW Purchase Notes (150 ) — 291 343 Stock Based
Compensation, Net of Tax Benefits 5,684 2,809 17,347 9,207
Mark-to-Market (Gain) Loss on Series I Warrants (1,366 ) (3,255 )
(861 ) (5,424 ) WPRT Holdback Shares Write-Down — — —
122
IMW Australia Project — 4,657 — 4,657 HQ Lease Exit —
64 — 876
Adjusted
EBITDA $ 4,232 $ (2,006 ) $ 35,413 $ (13,527 )
Gallons Delivered
The Company defines “gallons delivered” as its gallons of
compressed natural gas (CNG), liquefied natural gas (LNG) and
renewable natural gas (RNG), along with its gallons associated with
providing operations and maintenance services, delivered to its
customers during the applicable 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, November 23, 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
13593369. 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 truck market to natural gas, the
strength of the Company’s other larger markets, such as transit and
refuse, the Company’s ability to successfully enter new businesses,
such as the “virtual natural gas pipelines” business, opening new
natural gas fueling stations 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, transit, ready mix and off-system sales. 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 ability 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 any growth it
might experience and retain and hire key personnel, the acceptance
and availability of natural gas vehicles in the Company’s markets,
changes to federal, state or local 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 ability 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 and investments, such
as its investment in NG Advantage, 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-Q, filed on October 23, 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 September
30, 2014 (Unaudited) (In thousands, except share
data)
December 31, September 30,
2013 2014 Assets Current
assets: Cash and cash equivalents $ 240,033 $ 114,689 Restricted
cash 8,403 17,045 Short-term investments 138,240 133,374 Accounts
receivable, net of allowance for doubtful accounts of $832 and
$1,019 as of December 31, 2013 and September 30, 2014, respectively
53,473 77,075 Other receivables 26,285 21,506 Inventory, net 33,822
35,509 Prepaid expenses and other current assets 20,840
25,186 Total current assets 521,096 424,384
Land, property and equipment, net 487,854 528,341 Notes receivable
and other long-term assets 73,697 73,140 Goodwill 88,548 86,317
Intangible assets, net 79,770 71,451
Total assets $ 1,250,965 $ 1,183,633
Liabilities
and Stockholders’ Equity Current liabilities: Current portion
of long-term debt and capital lease obligations $ 23,401 $ 15,865
Accounts payable 33,541 39,093 Accrued liabilities 46,745 48,283
Deferred revenue 16,419 23,224 Total
current liabilities 120,106 126,465 Long-term debt and capital
lease obligations, less current portion 532,017 538,781 Long-term
debt, related party 65,000 65,000 Other long-term liabilities
15,304 9,720 Total liabilities 732,427
739,966 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 224,000,000 shares; issued and outstanding
89,364,397 shares and 90,055,809 shares at December 31, 2013 and
September 30, 2014, respectively 9 9 Additional paid-in capital
883,045 894,902 Accumulated deficit (367,782 ) (458,774 )
Accumulated other comprehensive loss (700 ) (590 )
Total Clean Energy Fuels Corp. stockholders’ equity 514,572 435,547
Noncontrolling interest in subsidiary 3,966
8,120 Total stockholders’ equity 518,538
443,667 Total liabilities and stockholders’ equity $
1,250,965 $ 1,183,633
Clean Energy Fuels
Corp. and Subsidiaries Condensed Consolidated Statements of
Operations For the Three Months and Nine Months Ended
September 30, 2013 and 2014 (Unaudited) (In
thousands, except share and per share data)
Three Months Ended Nine Months Ended
September 30, September 30, 2013
2014 2013
2014 Revenue: Product revenues $ 75,389 $
90,448 $ 237,247 $ 262,710 Service revenues 10,932
12,972 30,233 34,118
Total revenues 86,321 103,420 267,480 296,828 Operating expenses:
Cost of sales (exclusive of depreciation and amortization shown
separately below): Product cost of sales 51,941 79,021 157,680
216,063 Service cost of sales 2,866 4,953 9,809 12,797 Derivative
gains: Series I warrant valuation (1,366 ) (3,255 ) (861 ) (5,424 )
Selling, general and administrative 33,511 28,240 101,574 96,130
Depreciation and amortization 10,924 12,325
31,859 35,448 Total operating
expenses 97,876 121,284 300,061
355,014 Operating loss (11,555 ) (17,864 )
(32,581 ) (58,186 ) Interest expense, net (7,418 ) (10,676 )
(18,771 ) (30,316 ) Other income (expense), net 736 (880 ) (757 )
(1,045 ) Loss from equity method investment — — (76 ) — Gain from
sale of equity method investment — — 4,705 — Gain from sale of
subsidiary — — 15,498
— Loss before income taxes (18,237 ) (29,420 )
(31,982 ) (89,547 ) Income tax expense (558 ) (811 )
(2,656 ) (1,920 ) Net loss (18,795 ) (30,231 )
(34,638 ) (91,467 ) Loss (income) of noncontrolling interest
(41 ) 138 (12 ) 475 Net loss
attributable to Clean Energy Fuels Corp. $ (18,836 ) $ (30,093 ) $
(34,650 ) $ (90,992 ) Loss per share attributable to Clean Energy
Fuels Corp.: Basic $ (0.20 ) $ (0.32 ) $ (0.37 ) $ (0.96 ) Diluted
$ (0.20 ) $ (0.32 ) $ (0.37 ) $ (0.96 ) Weighted-average common
shares outstanding: Basic 94,338,525
94,058,496 93,823,223 94,529,206
Diluted 94,338,525 94,058,496
93,823,223 94,529,206
Included in net loss are the following amounts (in
millions):
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, 2013
2014 2013
2014 Construction Revenues $ 5.2 $ 21.8 $ 20.2 $ 52.8
Construction Cost of Sales (3.9 ) (18.4 ) (16.6 ) (44.4 ) Fuel Tax
Credits 6.0 — 38.1 — Stock-based Compensation Expense, Net of Tax
Benefits (5.7 ) (2.8 ) (17.3 ) (9.2 )
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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