Clean Energy Fuels Corp. (NASDAQ: CLNE) (Clean Energy or the
Company) today announced operating results for the second quarter
ended June 30, 2015.
Gallons delivered (defined below) for the second quarter of 2015
increased 15% to 74.4 million gallons, compared to 64.8 million
gallons delivered in the same period a year ago. Gallons delivered
for the six months ended June 30, 2015 increased 21% to 149.6
million gallons, compared to 124.1 million gallons delivered in the
same period a year ago.
Revenue for the second quarter ended June 30, 2015 was $86.9
million, a decrease of $11.2 million or 11% compared to $98.1
million for the second quarter of 2014. Approximately $5.6 million
of the decrease was the result of lower fuel prices which were
driven by lower commodity costs in 2015 compared to 2014.
Construction revenue in the second quarter of 2015 was $5.2 million
less than construction revenue in the second quarter of 2014,
principally due to timing of revenue recognition. Revenue for Clean
Energy Compression (formerly IMW), Clean Energy’s compression
manufacturing subsidiary, was lower by $8.1 million when compared
to the same period in 2014 due to the global decline in oil prices,
the strength of the U.S. dollar, and slower than expected
sales in China. Incremental volumes in the second quarter of 2015
over volumes in the same period in 2014 resulted in approximately
$7.9 million in incremental revenue in the second quarter of 2015
compared to the same period in 2014.
Revenue for the six months ended June 30, 2015 was $172.7
million, a decrease of 11% compared to $193.4 million a year ago.
This decrease was attributed to lower fuel prices driven by lower
commodity costs, lower construction and Clean Energy Compression
revenue, partially offset by higher revenue on increased volumes
similar to the factors impacting the second quarter of 2015.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated: “Despite the headwinds of lower oil
prices, I’m very pleased with the improvement in our operating
results for the second quarter of 2015. We improved our adjusted
EBITDA by $3.0 million over the first quarter and continue to see
volume growth year over year with significant reductions in
SG&A and capital expenditures from a year ago. It’s rewarding
to begin to leverage the investments we made over the last few
years.”
Adjusted EBITDA for the second quarter of 2015 was $(2.6)
million. This compares with Adjusted EBITDA of $(4.7) million in
the second quarter of 2014. For the six month period ended June 30,
2015, Adjusted EBITDA was $(8.2) million, compared with $(11.5)
million for the same period in 2014. 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 2015 was
$0.29, compared with non-GAAP loss per share for the second quarter
of 2014 of $0.28. For the six months ended June 30, 2015, non-GAAP
loss per share was $0.61, compared with non-GAAP loss per share of
$0.58 for the first six months in 2014. 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 2015 was
$30.0 million, or $0.33 per share, and included a non-cash loss of
$0.3 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 $2.7 million related to stock-based
compensation, and $0.2 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 second quarter of 2014 of
$32.3 million, or $0.34 per share, which included a non-cash loss
of $2.3 million related to the mark-to-market accounting treatment
of the Series I warrants, a non-cash charge of $3.0 million
related to stock-based compensation, a $0.3 million gain on 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 or (Write-Up)), and an additional $0.8 million in
charges related to the HQ Lease Exit.
Net loss for the six month period ended June 30, 2015 was $61.1
million, or $0.67 per share, which included a non-cash gain of $0.6
million related to the mark-to-market accounting treatment of the
Series I warrants, non-cash stock-based compensation charges of
$5.4 million, and a $0.3 million charge related to the HQ Lease
Exit. This compares with a net loss for the six month period ended
June 30, 2014 of $60.9 million, or $0.64 per share, which included
a non-cash gain of $2.2 million related to the mark-to-market
accounting treatment of the Series I warrants, non-cash stock-based
compensation charges of $6.4 million, foreign currency losses of
$0.3 million on the purchase notes issued in September 2010 by the
Company in connection with its acquisition of IMW (IMW Purchase
Notes), a $0.1 million charge from the WPRT Holdback Shares
Write-Down, and a $0.8 million charge related to the HQ Lease
Exit.
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 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) or any
other GAAP measure as an indicator of operating performance.
Moreover, because not all companies use identical measures and
calculations, the presentation of non-GAAP EPS and 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 Series I warrants, plus or minus the foreign
currency losses or gains on the IMW Purchase Notes, plus the WPRT
Holdback Shares Write-Down or (Write-Up), 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), 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 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 of 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 or (Write-Up), 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 June 30, Six Months
Ended June 30, (in 000s, except per-share amounts)
2014 2015
2014 2015 Net Loss
Attributable to Clean Energy Fuels Corp. $ (32,306 ) $ (29,962
) $ (60,899 ) $ (61,109 ) Stock Based Compensation, Net of Tax
Benefits 2,978 2,663 6,398 5,353 Mark-to-Market (Gain) Loss on
Series I Warrants 2,286 300 (2,169 ) (583 ) Foreign Currency Loss
on IMW Purchase Notes — — 343 — WPRT Holdback Shares Write-Down or
(Write-Up) (341 ) — 122 — HQ Lease Exit 757
243 812 344 Adjusted Net Loss $
(26,626 ) $ (26,756 ) $ (55,393 ) $ (55,995 ) Diluted Weighted
Average Common Shares Outstanding 94,859,587 91,480,998 94,768,462
91,399,478
Non-GAAP Loss Per Share $ (0.28 ) $ (0.29 ) $
(0.58 ) $ (0.61 )
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 Series I
warrants, plus the WPRT Holdback Shares Write-Down or (Write-Up),
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 June 30, Six Months
Ended June 30, (in 000s) 2014
2015 2014
2015 Net Loss Attributable to Clean Energy
Fuels Corp. $ (32,306 ) $ (29,962 ) $ (60,899 ) $ (61,109 )
Income Tax Expense 147 740 1,109 1,594 Interest Expense, Net 10,130
9,973 19,640 19,868 Depreciation and Amortization 11,608 13,402
23,123 26,288 Foreign Currency Loss on IMW Purchase Notes — — 343 —
Stock Based Compensation, Net of Tax Benefits 2,978 2,663 6,398
5,353 Mark-to-Market (Gain) Loss on Series I Warrants 2,286 300
(2,169 ) (583 ) WPRT Holdback Shares Write-Down or (Write-Up) (341
) — 122 — HQ Lease Exit 757 243
812 344
Adjusted EBITDA $ (4,741 ) $
(2,641 ) $ (11,521 ) $ (8,245 )
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.
The table below shows gallons delivered for the three and six
months ended June 30, 2014 and 2015:
Three Months Ended June 30, Six Months
Ended June 30, Gallons Delivered (in millions)
2014
2015 2014 2015 CNG 43.5 54.9
82.9 107.3 LNG 18.3 17.6 35.0 35.9 RNG 3.0 1.9 6.2 6.4
Total
64.8 74.4 124.1 149.6
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, September 5, 2015, 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 13614042. 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
market adoption of natural gas as a vehicle fuel, oil, gasoline,
diesel and natural gas prices and the Company’s ability to continue
to offer natural gas at a discount to gasoline and diesel,
continued interest and investment in natural gas as a vehicle fuel,
including government incentives promoting the use of cleaner fuels,
the strength of the Company’s key markets and businesses, the
benefits of natural gas relative to gasoline, diesel and other
vehicle fuels, the Company’s ability to successfully enter new
businesses, such as the “virtual natural gas pipelines” business of
NG Advantage, build, sell and open new natural gas fueling stations
and add 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 key customer
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, future supply, demand, use and
prices of crude oil and natural gas and fossil and alternative
fuels, including gasoline, diesel, natural gas, biodiesel, ethanol,
electricity, and hydrogen, 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. heavy-duty truck
market, future availability of capital, including equity or debt
financing, as 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, the
availability of tax and related government incentives for natural
gas fueling and vehicles, 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, 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 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 5, 2015
with the Securities and Exchange Commission (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, 2014 and June 30,
2015 (Unaudited) (In thousands, except share
data) December 31, June 30,
2014 2015 Assets
Current assets: Cash and cash equivalents $ 92,381 $ 53,296
Restricted cash 6,012 4,469 Short-term investments 122,546 128,596
Accounts receivable, net of allowance for doubtful accounts of $752
and $970 as of December 31, 2014 and June 30, 2015, respectively
81,970 78,537 Other receivables 56,223 18,656 Inventories 34,696
31,347 Prepaid expenses and other current assets 19,811
15,172 Total current assets 413,639 330,073
Land, property and equipment, net 514,269 520,424 Notes receivable
and other long-term assets, net 71,904 69,362 Investments in other
entities 6,510 5,961 Goodwill 98,726 95,831 Intangible assets, net
55,361 49,310 Total assets $ 1,160,409
$ 1,070,961
Liabilities and Stockholders’
Equity Current liabilities: Current portion of long-term debt
and capital lease obligations $ 4,846 $ 5,977 Accounts payable
43,922 28,859 Accrued liabilities 56,760 51,327 Deferred revenue
14,683 5,566 Total current liabilities
120,211 91,729 Long-term debt and capital lease obligations, less
current portion 500,824 504,769 Long-term debt, related party
65,000 65,000 Other long-term liabilities 9,339
7,971 Total liabilities 695,374 669,469 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 90,203,344 shares and 90,527,189
shares at December 31, 2014 and June 30, 2015, respectively 9 9
Additional paid-in capital 898,106 904,058 Accumulated deficit
(457,441 ) (518,533 ) Accumulated other comprehensive loss
(3,248 ) (10,878 ) Total Clean Energy Fuels Corp.
stockholders’ equity 437,426 374,656 Noncontrolling interest in
subsidiary 27,609 26,836 Total
stockholders’ equity 465,035 401,492
Total liabilities and stockholders’ equity $ 1,160,409 $
1,070,961
Clean Energy Fuels Corp. and
Subsidiaries Condensed Consolidated Statements of
Operations For the Three Months and Six Months Ended June
30, 2014 and 2015 (In thousands, except share and per share
data)
Three Months Ended Six Months Ended
June 30, June 30, 2014
2015 2014
2015 Revenue: Product revenues $ 86,473 $ 75,744 $
172,262 $ 145,041 Service revenues 11,660
11,124 21,146 27,675 Total
revenues 98,133 86,868 193,408 172,716 Operating expenses: Cost of
sales (exclusive of depreciation and amortization shown separately
below): Product cost of sales 69,175 59,387 137,042 114,766 Service
cost of sales 4,080 4,399 7,844 13,753 Derivative (gains) losses:
Series I warrant valuation 2,286 300 (2,169 ) (583 ) Selling,
general and administrative 34,400 28,994 67,890 59,227 Depreciation
and amortization 11,608 13,402
23,123 26,288 Total operating expenses
121,549 106,482 233,730
213,451 Operating loss (23,416 ) (19,614 ) (40,322 ) (40,735
) Interest expense, net (10,130 ) (9,973 ) (19,640 ) (19,868 )
Other income (expense), net 1,121 317 (165 ) 864 Loss from equity
method investments — (345 ) — (549 ) Loss before income taxes
(32,425 ) (29,615 ) (60,127 ) (60,288 ) Income tax expense
(147 ) (740 ) (1,109 ) (1,594 ) Net loss
(32,572 ) (30,355 ) (61,236 ) (61,882 ) Loss from noncontrolling
interest 266 393 337
773 Net loss attributable to Clean Energy Fuels Corp.
$ (32,306 ) $ (29,962 ) $ (60,899 ) $ (61,109 ) Loss per share
attributable to Clean Energy Fuels Corp.: Basic $ (0.34 ) $ (0.33 )
$ (0.64 ) $ (0.67 ) Diluted $ (0.34 ) $ (0.33 ) $ (0.64 ) $ (0.67 )
Weighted-average common shares outstanding: Basic 94,859,587
91,480,998 94,768,462
91,399,478 Diluted 94,859,587
91,480,998 94,768,462 91,399,478
Included in net loss are the following amounts (in
millions):
Three Months Ended Six Months Ended
June 30, June 30, 2014
2015 2014
2015 Construction Revenues $ 14.7 $ 9.5 $ 31.0 $ 16.0
Construction Cost of Sales (12.6 ) (8.0 ) (26.0 ) (13.7 )
Stock-based Compensation Expense, Net of Tax Benefits (3.0 ) (2.7 )
(6.4 ) (5.4 )
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150805006298/en/
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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