|
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--
Clean Energy Fuels Corp. (CLNE) (Clean Energy or the Company)
today announced operating results for the first quarter ended March 31,
2015.
Gallons delivered (defined below) for the first quarter of 2015
increased 27% to 75.2 million gallons, compared to 59.3 million gallons
delivered in the same period a year ago. CNG, LNG and RNG gallons
delivered were 52.4 million, 18.3 million and 4.5 million, respectively,
for the first quarter of 2015, compared to 39.4 million, 16.7 million
and 3.2 million, respectively, in the same period of 2014.
Revenue for the first quarter of 2015 was $85.8 million, a decrease of
10% compared to $95.3 million for the first quarter of 2014.
Construction revenue in the first quarter of 2015 was $9.8 million less
than construction revenue in the first quarter of 2014, principally due
to timing of revenue recognition on construction projects in-process as
of March 31, 2015 totaling approximately $9.1 million. Lower fuel prices
which were driven by lower natural gas commodity costs reduced revenue
by approximately $3.7 million in the first quarter of 2015 compared to
the same period in 2014. Revenue for IMW Industries, Ltd. (IMW), Clean
Energy’s compressor manufacturing subsidiary, was lower by $7.9 million
when compared to the same period in 2014 due to anticipated effects of
the soft global oil market and changes in customer mix. Revenue related
to gallons delivered increased by $8.4 million comparing the first
quarter of 2015 to the first quarter of 2014.
Andrew J. Littlefair, Clean Energy’s President and Chief Executive
Officer, stated, “I’m pleased with the progress we are making to drive
volume growth across our different market sectors. While gasoline and
diesel prices declined, so did our commodity cost, and our margins
increased despite the depressed oil market. We continue to open new
stations in our national network and sign up fleet customers across the
country that will enjoy the environmental and economic benefits
associated with natural gas vehicle fuel. Additionally, our new virtual
CNG pipeline business, NG Advantage, has made strong progress including
their recent contract announcement with International Paper, and we look
to expand that business as new opportunities emerge.”
Adjusted EBITDA for the first quarter of 2015 totaled $(5.6) million.
This compares to Adjusted EBITDA of $(6.8) million in the first quarter
of 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 first quarter of 2015 was $(0.32),
compared with a non-GAAP loss per share for the first quarter of 2014 of
$(0.30). 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 2015 was $31.1
million, or $0.34 per share, and included a non-cash gain of $0.9
million related to the accounting treatment that requires Clean Energy
to value its Series I warrants and mark them to market, and a non-cash
charge of $2.7 million related to stock-based compensation. This
compares with a net loss for the first quarter of 2014 of $28.6 million,
or $0.30 per share, which included a non-cash gain of $4.5 million
related to the mark-to-market accounting treatment of the Series I
warrants, 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, a $0.5 million write down of the value of the
Westport Innovations, Inc. shares held by the Company 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).
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, 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,
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 March 31,
|
|
(in 000s, except per-share amounts)
|
|
|
2014
|
|
|
2015
|
|
Net Loss Attributable to Clean Energy Fuels Corp.
|
|
|
$
|
(28,593
|
)
|
|
$
|
(31,147
|
)
|
Stock Based Compensation, Net of Tax Benefits
|
|
|
|
3,420
|
|
|
|
2,690
|
|
Mark-to-Market Gain on Series I Warrants
|
|
|
|
(4,455
|
)
|
|
|
(883
|
)
|
Foreign Currency Loss on IMW Purchase Notes
|
|
|
|
343
|
|
|
|
—
|
|
WPRT Holdback Shares Write-Down
|
|
|
|
463
|
|
|
|
—
|
|
HQ Lease Exit
|
|
|
|
55
|
|
|
|
101
|
|
Adjusted Net Loss
|
|
|
$
|
(28,767
|
)
|
|
$
|
(29,239
|
)
|
Diluted Weighted Average Common Shares Outstanding
|
|
|
|
94,676,325
|
|
|
|
91,317,053
|
|
Non-GAAP Loss Per Share
|
|
|
$
|
(0.30
|
)
|
|
$
|
(0.32
|
)
|
|
|
|
|
|
|
|
|
|
|
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, 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)
|
|
|
2014
|
|
|
2015
|
|
Net Loss Attributable to Clean Energy Fuels Corp.
|
|
|
$
|
(28,593
|
)
|
|
$
|
(31,147
|
)
|
Income Tax Expense
|
|
|
|
962
|
|
|
|
854
|
|
Interest Expense, Net
|
|
|
|
9,510
|
|
|
|
9,895
|
|
Depreciation and Amortization
|
|
|
|
11,515
|
|
|
|
12,886
|
|
Foreign Currency Loss on IMW Purchase Notes
|
|
|
|
343
|
|
|
|
—
|
|
Stock Based Compensation, Net of Tax Benefits
|
|
|
|
3,420
|
|
|
|
2,690
|
|
Mark-to-Market Gain on Series I Warrants
|
|
|
|
(4,455
|
)
|
|
|
(883
|
)
|
WPRT Holdback Shares Write-Down
|
|
|
|
463
|
|
|
|
—
|
|
HQ Lease Exit
|
|
|
|
55
|
|
|
|
101
|
|
Adjusted EBITDA
|
|
|
$
|
(6,780
|
)
|
|
$
|
(5,604
|
)
|
|
|
|
|
|
|
|
|
|
|
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
Thursday, June 11, 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 13606820. 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. (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-K, filed
on February 26, 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
March 31, 2015 (Unaudited) (In
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
March 31, 2015
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
92,381
|
|
|
$
|
106,863
|
|
Restricted cash
|
|
|
6,012
|
|
|
4,985
|
|
Short-term investments
|
|
|
122,546
|
|
|
113,557
|
|
Accounts receivable, net of allowance for doubtful accounts of $752
and $785 as of December 31, 2014 and March 31, 2015, respectively
|
|
|
81,970
|
|
|
79,056
|
|
Other receivables
|
|
|
56,223
|
|
|
25,076
|
|
Inventory, net
|
|
|
34,696
|
|
|
32,795
|
|
Prepaid expenses and other current assets
|
|
|
19,811
|
|
|
15,854
|
|
Total current assets
|
|
|
413,639
|
|
|
378,186
|
|
Land, property and equipment, net
|
|
|
514,269
|
|
|
519,315
|
|
Notes receivable and other long-term assets
|
|
|
71,904
|
|
|
71,816
|
|
Investments in other entities
|
|
|
6,510
|
|
|
6,306
|
|
Goodwill
|
|
|
98,726
|
|
|
95,307
|
|
Intangible assets, net
|
|
|
55,361
|
|
|
50,062
|
|
Total assets
|
|
|
$
|
1,160,409
|
|
|
$
|
1,120,992
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Current portion of long-term debt and capital lease obligations
|
|
|
$
|
4,846
|
|
|
|
5,712
|
|
Accounts payable
|
|
|
43,922
|
|
|
41,577
|
|
Accrued liabilities
|
|
|
56,760
|
|
|
57,151
|
|
Deferred revenue
|
|
|
14,683
|
|
|
11,738
|
|
Total current liabilities
|
|
|
120,211
|
|
|
116,178
|
|
Long-term debt and capital lease obligations, less current portion
|
|
|
500,824
|
|
|
503,869
|
|
Long-term debt, related party
|
|
|
65,000
|
|
|
65,000
|
|
Other long-term liabilities
|
|
|
9,339
|
|
|
8,373
|
|
Total liabilities
|
|
|
695,374
|
|
|
693,420
|
|
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 90,378,353 shares at
December 31, 2014 and March 31, 2015, respectively
|
|
|
9
|
|
|
9
|
|
Additional paid-in capital
|
|
|
898,106
|
|
|
901,130
|
|
Accumulated deficit
|
|
|
(457,441
|
)
|
|
(488,572
|
)
|
Accumulated other comprehensive loss
|
|
|
(3,248
|
)
|
|
(12,224
|
)
|
Total Clean Energy Fuels Corp. stockholders’ equity
|
|
|
437,426
|
|
|
400,343
|
|
Noncontrolling interest in subsidiary
|
|
|
27,609
|
|
|
27,229
|
|
Total stockholders’ equity
|
|
|
465,035
|
|
|
427,572
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
1,160,409
|
|
|
$
|
1,120,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clean Energy Fuels Corp. and Subsidiaries Condensed
Consolidated Statements of Operations For the Three
Months Ended March 31, 2014 and 2015 (Unaudited) (In
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2014
|
|
|
2015
|
|
Revenue:
|
|
|
|
|
|
|
|
Product revenues
|
|
|
$
|
85,789
|
|
|
$
|
69,297
|
|
Service revenues
|
|
|
9,486
|
|
|
16,551
|
|
Total revenues
|
|
|
95,275
|
|
|
85,848
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Cost of sales (exclusive of depreciation and amortization shown
separately below):
|
|
|
|
|
|
|
|
Product cost of sales
|
|
|
67,867
|
|
|
55,379
|
|
Service cost of sales
|
|
|
3,764
|
|
|
9,354
|
|
Derivative gains:
|
|
|
|
|
|
|
|
Series I warrant valuation
|
|
|
(4,455
|
)
|
|
(883
|
)
|
Selling, general and administrative
|
|
|
33,490
|
|
|
30,233
|
|
Depreciation and amortization
|
|
|
11,515
|
|
|
12,886
|
|
Total operating expenses
|
|
|
112,181
|
|
|
106,969
|
|
Operating loss
|
|
|
(16,906
|
)
|
|
(21,121
|
)
|
Interest expense, net
|
|
|
(9,510
|
)
|
|
(9,895
|
)
|
Other income (expense), net
|
|
|
(1,286
|
)
|
|
547
|
|
Loss from equity method investment
|
|
|
—
|
|
|
(204
|
)
|
Loss before income taxes
|
|
|
(27,702
|
)
|
|
(30,673
|
)
|
Income tax expense
|
|
|
(962
|
)
|
|
(854
|
)
|
Net loss
|
|
|
(28,664
|
)
|
|
(31,527
|
)
|
Loss from noncontrolling interest
|
|
|
71
|
|
|
380
|
|
Net loss attributable to Clean Energy Fuels Corp.
|
|
|
$
|
(28,593
|
)
|
|
$
|
(31,147
|
)
|
Loss per share attributable to Clean Energy Fuels Corp.:
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.30
|
)
|
|
$
|
(0.34
|
)
|
Diluted
|
|
|
$
|
(0.30
|
)
|
|
$
|
(0.34
|
)
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
94,676,325
|
|
|
91,317,053
|
|
Diluted
|
|
|
94,676,325
|
|
|
91,317,053
|
|
|
|
|
|
|
|
|
|
Included in net loss are the following amounts (in millions):
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2014
|
|
|
2015
|
|
Construction Revenues
|
|
|
$
|
16.3
|
|
|
$
|
6.5
|
|
Construction Cost of Sales
|
|
|
|
(13.4
|
)
|
|
|
(5.7
|
)
|
Stock-based Compensation Expense, Net of Tax Benefits
|
|
|
|
(3.4
|
)
|
|
|
(2.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|