Clean Energy Fuels Corp. (Nasdaq: CLNE) ("Clean Energy" or the
"Company") today announced operating results for the fourth quarter
and year ended December 31, 2017.
The Company delivered 86.4 million gallons in the fourth quarter
of 2017, a 2.7% increase from 84.1 million gallons delivered in the
fourth quarter of 2016. For the year ended December 31, 2017, the
Company delivered 351.4 million gallons, a 6.8% increase from 329.0
million gallons delivered for the year ended December 31, 2016.
Revenue for the fourth quarter of 2017 was $89.3 million, a
12.3% decrease from $101.8 million of revenue for the fourth
quarter of 2016. This decrease was primarily due to the absence of
revenue recognized in 2017 from a federal alternative fuels tax
credit ("AFTC," formerly referred to as VETC) and a lower effective
price per gallon in 2017. The lower effective price per gallon was
largely attributable to the effects of the Company's sale of
certain assets related to the upstream production portion of its
RNG business to BP Products North America Inc. ("BP") in the first
quarter of 2017 (the "BP Transaction"), which has resulted in
decreased revenue from the sale of certain tradable credits the
Company generates by selling CNG, LNG and its Redeem™ RNG vehicle
fuel (collectively, "RIN and LCFS credits"). These decreases were
partially offset by an increase in revenue as a result of the
increased gallons delivered in the fourth quarter of 2017 compared
to the same period in 2016, as well as increased station
construction and compressor revenue.
Revenue for 2017 was $341.6 million, a 15.2% decrease from
$402.7 million for 2016. This decrease was primarily due to the
absence of AFTC in 2017, a lower effective price per gallon in 2017
largely attributable to decreased revenue from sales of RIN and
LCFS credits as discussed above, and lower construction and
compressor revenue, partially offset by increased revenue from
higher volume in 2017.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated "We had a very productive fourth quarter
as we completed a variety of actions addressing underperforming
stations and putting in place further cost reductions as well as
completing the combination of our compressor business with Landi
Renzo's SAFE. We believe we are well positioned for 2018 with these
actions in place, as well as AFTC revenue for 2017 fuel sales, all
of which we will recognize this year. We also see continued volume
growth, driven by increased acceptance of our
environmentally-friendly, cost-effective and proven alternative
fuel solutions."
On a GAAP basis, net loss for the fourth quarter of 2017 was
$28.3 million, or $0.19 per share, compared to net loss of $3.9
million, or $0.03 per share, for the fourth quarter of 2016. The
fourth quarter of 2017 was negatively impacted by a $6.5 million
loss from the combination of our compressor company (CEC) with
Landi Renzo's SAFE on December 29, 2017 (the "CEC Combination") and
a $7.0 million charge related to LCFS credits that were invalidated
(the "LCFS charge"). The fourth quarter of 2016 included a net gain
of $9.0 million from the repurchase of debt ("debt repurchases"),
$7.0 million of AFTC revenue and $9.8 million more revenue from
sales of RIN and LCFS credits than was recorded in the fourth
quarter of 2017.
On a GAAP basis, net loss for 2017 was $79.2 million, or $0.53
per share, compared to a net loss for 2016 of $12.2 million, or
$0.10 per share. The net loss in 2017 included a $70.7 million gain
from the BP Transaction which was offset by the loss from the CEC
Combination and $81.1 million in asset impairments and other cash
and non-cash charges resulting from the LCFS charge and steps taken
in the third quarter of 2017 to minimize and eliminate
underperforming assets and lower operating expenses going forward
(collectively, "Asset Impairments and Other Charges"). The net loss
in 2016 included a net gain of $34.3 million from the debt
repurchases, $26.6 million of AFTC revenue and $24.9 million more
revenue from sales of RIN and LCFS credits than was recorded in
2017.
Non-GAAP loss per share and Adjusted EBITDA for the fourth
quarter of 2017 was $0.18 and $(9.8) million, respectively, which
included the loss from the CEC Combination and the LCFS charge.
Non-GAAP loss per share and Adjusted EBITDA for the fourth quarter
of 2016 was $0.02 and $17.9 million, respectively, which included
the net gain from debt repurchases, the AFTC revenue and the
incremental revenue from sales of RIN and LCFS credits discussed
above for the period.
Non-GAAP loss per share and Adjusted EBITDA for 2017 was $0.47
and $0.1 million, respectively, which included the gain from the BP
Transaction, the Asset Impairments and Other Charges, and the loss
from the CEC Combination. Non-GAAP loss per share and Adjusted
EBITDA for 2016 was $0.03 and $85.3 million, respectively, which
included the net gain from the debt repurchases, the AFTC revenue
and incremental revenue from sales of RIN and LCFS credits
discussed for the above period.
GAAP net loss for 2018 is expected to range from $20.0 million
to $25.0 million, a $54.2 million to $59.2 million improvement
compared to GAAP net loss for 2017. Adjusted EBITDA for 2018 is
expected to range from $55.0 million to $60.0 million, a $54.9
million to $59.9 million improvement compared to Adjusted EBITDA
for 2017. These expectations exclude the impact of any
acquisitions, divestitures or other extraordinary transactions that
may occur in 2018 but have not yet been announced or completed.
Additionally, the expectation of 2018 adjusted EBITDA assumes the
calculation of this non-GAAP financial measure in the same manner
as described below and without the exclusion of any other items
that may arise during 2018 and that management deems appropriate to
exclude. These expectations are forward-looking statements and are
qualified by the statement under "Safe Harbor Statement" below.
Non-GAAP loss per share and Adjusted EBITDA are described below
and reconciled to GAAP net loss and GAAP loss per share
attributable to Clean Energy Fuels Corp.
Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements,
which statements are prepared and presented in accordance with
accounting principles generally accepted in the United States of
America ("GAAP"), the Company uses non-GAAP financial measures that
it calls non-GAAP loss per share ("non-GAAP EPS" or "non-GAAP loss
per share") and adjusted EBITDA ("Adjusted EBITDA"). Management
presents non-GAAP EPS and Adjusted EBITDA because it believes these
measures provide meaningful supplemental information regarding the
Company’s performance, for the following reasons: (1) these
measures allow for greater transparency with respect to key
metrics used by management, as management uses these measures to
assess the Company’s operating performance and for financial and
operational decision-making; (2) these measures exclude the
impact of items that management believes are not directly
attributable to the Company’s core operating performance and may
obscure trends in the business; and (3) these measures are
used by institutional investors and the analyst community to help
analyze the Company’s business. In future quarters, the Company may
make adjustments for other expenditures, charges or gains 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 (and/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, charges or gains
similar to the non-GAAP adjustments described below. Accordingly,
unless expressly stated otherwise, the exclusion of these and other
similar items in the presentation of 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 loss, GAAP loss per share or any other GAAP
measure as an indicator of operating performance. Moreover, because
not all companies use identical measures and calculations, the
Company's presentation of non-GAAP EPS and Adjusted EBITDA may not
be comparable to other similarly titled measures used by other
companies.
Non-GAAP EPS
Non-GAAP EPS, which the Company presents as a non-GAAP measure
of its performance, is defined as net loss attributable to Clean
Energy Fuels Corp., plus stock-based compensation expense, the
total of which is divided by the Company’s weighted-average shares
outstanding on a diluted basis. The Company’s management believes
excluding non-cash expenses related to stock-based compensation
provides useful information to investors regarding the Company’s
performance because of 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, which may obscure
trends in a company’s core operating performance.
The table below shows GAAP and non-GAAP EPS and also reconciles
GAAP net loss attributable to Clean Energy Fuels Corp. to an
adjusted net loss figure used in the calculation of non-GAAP
EPS:
Three Months Ended December 31, Year Ended
December 31, (in thousands, except share and per-share
amounts) 2016 2017
2016 2017
GAAP Net Loss Attributable to Clean Energy Fuels Corp. $
(3,883 ) $ (28,347 ) $ (12,153 ) $ (79,237 )
Stock-Based Compensation
1,559 1,519 8,092
8,423 Adjusted Net Loss $ (2,324 ) $ (26,828 ) $ (4,061 ) $
(70,814 )
Weighted-Average Common Shares Outstanding
Diluted
138,981,606 151,326,494 119,395,423 150,430,239
GAAP Loss Per
Share Attributable to Clean Energy Fuels Corp. $ (0.03 ) $
(0.19 ) $ (0.10 ) $ (0.53 )
Non-GAAP Loss Per Share $ (0.02
) $ (0.18 ) $ (0.03 ) $ (0.47 )
Adjusted EBITDA
Adjusted EBITDA, which the Company presents as a non-GAAP
measure of its performance, is defined as net loss attributable to
Clean Energy Fuels Corp., plus (minus) income tax expense
(benefit), plus interest expense, minus interest income, plus
depreciation and amortization expense, and plus stock-based
compensation expense. The Company’s management believes Adjusted
EBITDA provides useful information to investors regarding the
Company’s performance for the same reasons discussed above with
respect to 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 this
figure to GAAP net loss attributable to Clean Energy Fuels
Corp.:
Three Months Ended December 31, Year Ended
December 31, (in thousands) 2016
2017 2016
2017 GAAP Net Loss Attributable to
Clean Energy Fuels Corp. $ (3,883 ) $ (28,347 ) $
(12,153 ) $ (79,237 ) Income Tax Expense (Benefit) 110 269
1,339 (1,914 ) Interest Expense 5,752 4,285 29,595 17,751 Interest
Income (248 ) (341 ) (827 ) (1,497 ) Depreciation and Amortization
14,580 12,857 59,262 56,614
Stock-Based Compensation
1,559 1,519 8,092
8,423
Adjusted EBITDA $ 17,870 $ (9,758 ) $ 85,308 $
140
Definition of "Gallons Delivered"
The Company defines "gallons delivered" as its gallons of
renewable natural gas ("RNG"), compressed natural gas ("CNG") and
liquefied natural gas ("LNG"), along with its gallons associated
with providing operations and maintenance services, in each case
delivered to its customers in the applicable period, plus the
Company's proportionate share of gallons delivered by joint
ventures in the applicable period.
The table below shows gallons delivered for the three months and
years ended December 31, 2016 and 2017:
Three Months Ended December 31, Year Ended
December 31, Gallons Delivered (in millions) 2016
2017 2016 2017
CNG
67.5 70.3 259.2 283.4
RNG(1)
0.7
—
3.0 1.9
LNG
15.9 16.1 66.8 66.1
Total
84.1 86.4 329.0 351.4
(1) Represents RNG sold as
non-vehicle fuel. RNG sold as vehicle fuel, also known as Redeem™,
is included in CNG and LNG.
Sources of Revenue
The following table represents our sources of revenue for the
three months and years ended December 31, 2016 and 2017:
Three Months Ended Year Ended
December 31, December 31, Revenue (in
Millions) 2016 2017 2016
2017
Volume-Related
$ 73.0 $ 64.9 $ 283.9 $ 264.9 Compressor Sales 4.9 5.9 27.3 23.5
Station Construction Sales 16.9 17.8 64.9 51.9 AFTC 7.0 — 26.6 —
Other — 0.7 — 1.3 Total $ 101.8 $ 89.3
$ 402.7 $ 341.6
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 Friday, April 13,
2018, by dialing 1.844.512.2921 from the U.S., or
1.412.317.6671 from international locations, and entering Replay
Pin Number 13676732. 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. is the leading provider of natural gas
fuel for transportation in North America. We build and operate CNG
and LNG vehicle fueling stations; manufacture CNG and LNG equipment
and technologies; and deliver more CNG and LNG vehicle fuel than
any other company in the United States. Clean Energy also sells
Redeem™ RNG fuel and believes it is the cleanest transportation
fuel commercially available, reducing greenhouse gas emissions by
up to 70%. 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, including
statements about, among other things, the Company's expectations
regarding certain of its results for 2018; the timing of
recognition of certain AFTC revenue; expectations regarding
continued volume growth; the level of acceptance of the Company’s
products and services, including in the Company’s key customer and
geographic markets and in the market generally; the impact on the
Company’s performance and financial condition of various actions
taken in recent periods to implement of its strategic plans,
including the Company’s closure of fueling stations, implementation
of cost-reduction measures and contribution of its compressor
business to a joint venture; the market’s perception of these
actions and strategic plans; and the Company’s overall financial
and strategic position.
Forward-looking statements are statements other than historical
facts and relate to future events or circumstances or the Company’s
future performance, and they are based on the Company’s current
assumptions, expectations and beliefs concerning future
developments and their potential effect on the Company and its
business. As a result, actual results, performance or achievements
and the timing of events could differ materially from those
anticipated in or implied by these forward-looking statements as a
result of many factors including, among others: future supply,
demand, use and prices of crude oil, gasoline, diesel, natural gas
and other vehicle fuels, as well as heavy-duty trucks and other
vehicles and engines powered by these fuels; the willingness of
fleets and other consumers to adopt natural gas as a vehicle fuel;
the Company’s ability to capture a substantial share of the market
for alternative vehicle fuels and otherwise compete successfully in
this market, including in the event of advances or improvements in
non-natural gas vehicle fuels or engines powered by these fuels or
other competitive developments; the Company’s ability to accurately
predict natural gas vehicle fuel demand in the geographic and
customer markets in which it operates and effectively calibrate its
strategies and timing and levels of investments to be consistent
with this demand; the Company’s ability to recognize the
anticipated benefits of its CNG and LNG station network; future
availability of capital, including equity or debt financing, as
needed to fund the growth of the Company’s business and repayment
of its debt obligations (whether at or before their due dates); the
availability of environmental, tax and other government
regulations, programs and incentives, such as AFTC, that promote
natural gas or other alternatives as a vehicle fuel, including
long-standing support for gasoline- and diesel-powered vehicles and
growing support for electric and hydrogen-powered vehicles that
could result in programs or incentives that favor of these vehicles
or vehicle fuels rather than natural gas; changes to federal, state
or local greenhouse gas emissions regulations or other
environmental regulations applicable to natural gas production,
transportation or use; compliance with other applicable government
regulations; the Company’s ability to manage and grow its RNG
business after the sale of the upstream production portion of this
business, including its ability to continue to receive revenue from
sales of RIN and LCFS credits; construction, permitting and other
factors that could cause delays or other problems at station
construction projects; the Company’s ability to realize the
intended benefits of any mergers, acquisitions, divestitures,
investments or other strategic measures, transactions or
relationships; and general political, regulatory, economic and
market conditions.
The forward-looking statements made in this press release 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. The Company’s Annual Report on
Form 10-K, filed on March 13, 2018 with the Securities
and Exchange Commission (www.sec.gov), contains additional
information on these and other 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
Consolidated Balance Sheets (In thousands, except
share data) December 31,
December 31, 2016 2017 Assets Current
assets: Cash and cash equivalents 36,119 $ 36,081 Restricted cash
6,996 1,127 Short-term investments 73,718 141,462 Accounts
receivable, net of allowance for doubtful accounts of $1,063 and
$3,676 as of December 31, 2016 and 2017, respectively 79,432 63,961
Other receivables 21,934 19,235 Inventories 29,544 35,238 Prepaid
expenses and other current assets 14,021 7,793
Total current assets 261,764 304,897 Land, property and
equipment, net 483,923 367,305 Notes receivable and other long-term
assets, net 16,377 21,397 Investments in other entities 3,475
30,395 Goodwill 93,018 64,328 Intangible assets, net 38,700
3,590 Total assets $ 897,257 $ 791,912
Liabilities and Stockholders’ Equity Current
liabilities: Current portion of long-term debt and capital lease
obligations 5,943 139,699 Accounts payable 23,637 17,901 Accrued
liabilities 52,601 42,268 Deferred revenue 7,041
3,432 Total current liabilities 89,222 203,300
Long-term portion of debt and capital lease obligations 241,433
120,388 Long-term debt, related party 65,000 — Other long-term
liabilities 7,915 18,566 Total
liabilities 403,570 342,254 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 145,538,063 shares and 151,650,969 shares as
of December 31, 2016 and 2017, respectively 15 15 Additional
paid-in capital 1,090,361 1,111,432 Accumulated deficit (603,836 )
(683,570 ) Accumulated other comprehensive loss (17,675 )
(887 ) Total Clean Energy Fuels Corp. stockholders’ equity
468,865 426,990 Noncontrolling interest in subsidiary 24,822
22,668 Total stockholders’ equity
493,687 449,658 Total liabilities and
stockholders’ equity $ 897,257 $ 791,912
Clean
Energy Fuels Corp. and Subsidiaries Consolidated
Statements of Operations (In thousands, except share
and per share data) Three Months Ended
Year Ended December 31, December 31,
2016 2017
2016 2017 Revenue:
Product revenue $ 87,859 $ 75,545 351,038 $ 287,292 Service revenue
13,973 13,755 51,618
54,307 Total revenue 101,832 89,300 402,656 341,599
Operating expenses: Cost of sales (exclusive of depreciation and
amortization shown separately below): Product cost of sales 59,212
58,107 229,958 216,413 Service cost of sales 6,497 6,192 25,592
26,258 Inventory valuation provision — — — 13,158 Selling, general
and administrative 28,737 23,794 105,481 95,669 Depreciation and
amortization 14,580 12,857 59,262 56,614 Asset impairments and
other charges — 7,268 —
67,934 Total operating expenses 109,026
108,218 420,293 476,046
Operating loss (7,194 ) (18,918 ) (17,637 ) (134,447 ) Interest
expense (5,752 ) (4,285 ) (29,595 ) (17,751 ) Interest income 248
341 827 1,497 Other income (expense), net (300 ) 167 (306 ) 139
Loss from equity method investments (2 ) (31 ) (22 ) (131 ) Gain
from extinguishment of debt, net 8,973 — 34,348 3,195 Gain from
sale of subsidiary — 772 — 70,658 Loss from formation of equity
method investment — (6,465 ) —
(6,465 ) Loss before income taxes (4,027 ) (28,419 ) (12,385
) (83,305 ) Income tax benefit (expense) (110 ) (269
) (1,339 ) 1,914 Net loss (4,137 ) (28,688 )
(13,724 ) (81,391 ) Loss attributable to noncontrolling interest
254 341 1,571
2,154 Net loss attributable to Clean Energy Fuels Corp. $
(3,883 ) $ (28,347 ) $ (12,153 ) $ (79,237 ) Loss per share: Basic
and diluted $ (0.03 ) $ (0.19 ) $ (0.10 ) $ (0.53 )
Weighted-average common shares outstanding: Basic and diluted
138,981,606 151,326,494
119,395,423 150,430,239
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version on businesswire.com: http://www.businesswire.com/news/home/20180313006480/en/
Clean Energy Fuels Corp.Investor Contact:Tony
KritzerDirector of Investor Communications949.437.1403
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