SEAL BEACH Nov 6, 2015 (Thomson StreetEvents) -- Edited Transcript of Clean Energy Fuels Corp earnings conference call or presentation Thursday, November 5, 2015 at 9:30:00pm GMT TEXT version of Transcript ================================================================================ Corporate Participants ================================================================================ * Tony Kritzer Clean Energy Fuels Corp. - Director of Investor Relations * Andrew Littlefair Clean Energy Fuels Corp. - President and CEO * Bob Vreeland Clean Energy Fuels Corp. - CFO ================================================================================ Conference Call Participants ================================================================================ * Rob Brown Lake Street Capital Markets - Analyst * Eric Stine Craig-Hallum - Analyst * Jeffrey Schnell Jefferies - Analyst * Pavel Molchanov Raymond James - Analyst ================================================================================ Presentation -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- Greetings, and welcome to the Clean Energy Fuels Third Quarter 2015 Earnings Conference Call. (Operator Instructions). As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Tony Kritzer, Director of Investor Relations. Thank you, you may begin. -------------------------------------------------------------------------------- Tony Kritzer, Clean Energy Fuels Corp. - Director of Investor Relations [2] -------------------------------------------------------------------------------- Thank you, Operator. Earlier this afternoon, Clean Energy released financial results for the third quarter ending September 30, 2015. If you did not receive the release, it is available on the Investor Relations section of the Company's website at www.cleanenergyfuels.com, where the call is also being webcast. There will be a replay available on the website for 30 days. Before we begin, we'd like to remind you that some of the information contained in the news release and on this conference call contains forward-looking statements that involve risks, uncertainties, and assumptions that are difficult to predict. Words of expression reflecting optimism, satisfaction with current prospects, as well as words such as believe, intend, expect, plan, should, anticipate, and similar variations identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Such forward-looking statements are not a guarantee of performance and the Company's actual results could differ materially from those contained in such statements. Several factors that could cause or contribute to such differences are described in detail in the Risks Factor section of Clean Energy's Form 10-Q filed November 5, 2015. These forward-looking statements speak only as of the date of this release. The Company undertakes no obligation to publicly update any forward-looking statements or supply new information regarding the circumstances after the date of this release. The Company's non-GAAP EPS and adjusted EBITDA will be reviewed on this call, and exclude certain expenses that the Company's management does not believe are indicative of the Company's core business operating results. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, and should not be considered as a substitute for or superior to GAAP results. The directly comparable GAAP information, reasons why management uses non-GAAP information, a definition of non-GAAP EPS and adjusted EBITDA, and a reconciliation between these non-GAAP and GAAP figures is provided in the Company's press release which has been furnished to the SEC on Form 8-K today. Participating on today's call from the Company is President and Chief Executive Officer Andrew Littlefair and Chief Financial Officer Bob Vreeland. And with that, I will turn the call over to Andrew. -------------------------------------------------------------------------------- Andrew Littlefair, Clean Energy Fuels Corp. - President and CEO [3] -------------------------------------------------------------------------------- Thank you, Tony. Good afternoon, everyone, and thank you for joining us. I'm pleased to review our third quarter 2015 operating results with you today. And I?m particularly pleased to announce that the Company's adjusted EBITDA turned positive this quarter which is a significant milestone. This is due in large part to both the continued growth in our volumes and by leveraging our station infrastructure which we've invested in over the last several years. In Q3 our volumes were 80.6 million gallons, a 17% increase over Q3 2014, and our revenues were $92 million. Importantly, our margin per gallon has held up in the face of oil prices that are half of what they were last year. A perfect example of leveraging our infrastructure is our growing relationship with Raven Transport who has deployed an additional 40 LNG trucks since we last reported. These trucks fuel at 21 of our stations on interstate corridors throughout the southeast. Raven now operates 223 LNG trucks in their fleet. Another example is our customer Saddle Creek Logistics who just celebrated reaching the 50 million mile mark with their CNG fleet by announcing they are adding 50 CNG trucks to their existing fleet of 200 CNG tractors. During the quarter we've contracted over 300 new heavy duty trucks which represent close to 4.5 million gallons annually. I think it's important to understand that despite lower diesel prices, fleets like Raven, Ryder, Waste Management and UPS are still making the transition to natural gas because the economics remain compelling. But also because the price of natural gas continues to remain low and stable which is extremely important to fleet operators. And while low and stable pricing continues to be a reason for fleet operators to switch, we have seen a renewed focus on the environmental and sustainability benefits of natural gas as a major catalyst in the decision process. The shippers, big brand names like Procter & Gamble, Unilever, Anheuser Busch and many others, increasingly want their contracted trucking companies to haul their products throughout the country on cleaner natural gas. These consumer oriented companies have self-imposed sustainability goals and there's nothing in their operation that is more immediately impactful towards achieving these goals than having their contractor haulers run natural gas trucks. And because these companies are ultimately responsible for covering the fuel costs of their contracted fleets, they have significant influence in the purchasing decisions of their haulers, especially because the companies directly benefit from the fuel savings. We have seen some of our customers, like Raven transport, pick up business because of their conversion to natural gas. The growing commitment towards sustainability extends to refuse companies, municipal transit agencies, and universities across the country as well. We are seeing this firsthand in the growing success of our Redeem renewable natural gas fuel offering, which is the first commercially available renewable natural gas made from organic waste and is up to 90% cleaner on carbon emissions. Major companies like UPS as well as municipalities like Santa Monica's transit bus fleet and Universities like UC San Diego have made the commitment to Redeem. Year over year our Redeem volume has almost tripled from 13 million gallons to 36 million gallons. The other significant environmental game changer I'd like to highlight is the certification of Cummins Westport low NOx 9 liter engine. As a reminder, nitrous oxide, or NOx, is emitted from vehicle tailpipes creating smog. This new engine will reduce NOx emissions by 90% from current EPA standards as well as meet the 2017 EPA greenhouse gas emission standards and the proposed 2023 California Air Resources Board Low NOx Engine Standard. It was certified at 0.02 versus the 0.2 gram standard, which is the lowest engine standard per NOx in the world for heavy duty trucks. What is important here is that given the profile of electricity generation in the United States, this natural gas engine is cleaner running than an electric vehicle that is plugged into the grid. California is establishing even more aggressive carbon and petroleum reduction goals, and like many prior environmental regulations, often these regulations are eventually adopted in other states and at the national level. When you combine our Redeem vehicle fuel with the low NOx engine, it is hands down the cleanest heavy duty vehicle available anywhere in the world. It will be 90% less NOx and up to 90% less carbon, and this story is just becoming understood. Here in California, the South Coast Air Quality Management District has made tremendous progress in improving regional air quality. However, they still need to reduce NOx emissions by an additional 70% and 80% to meet their 2023 and 2031 Federal Ozone Attainment deadlines. Not only do diesel trucks make up roughly 70% of the South Coast air toxins, but these trucks are the largest source of NOx emissions in the region. Therefore, this low NOx engine is crucial to South Coast's achievement of those air quality goals, and why multiple California agencies including the California Air Resources Board, are strongly supporting Cummins Westport with this effort. To help accelerate the adoption of natural gas truck in California, the voters passed Proposition 1B which, among other things, will provide up to $65,000 per natural gas truck and up to $100,000 per low NOx natural gas truck to fleets who take advantage of this program, making those trucks much more competitive than diesel. The Prop 1B funds available total over $165 million. And these funds are available now and will be allocated throughout 2016. Turning to our refuse market, we now work with more than 130 different refuse companies. Our long time refuse customers, Waste Management and Republic Services, continue to increase the percentage of natural gas trucks in their fleets and learn early on how economically and environmentally beneficial adopting natural gas trucks is to their operation. In total, our refuse customers added 240 new trucks to their fleets in the third quarter. We completed 12 refuse station construction projects and have completed 27 projects to date and we anticipate we'll complete a total of 33 refuse projects by yearend. Since our last call we have signed 17 new contracts to add to our station project pipeline. In our transit market, we signed contracts with Akron Transit in Ohio, Arlington Transit in Virginia, and the city of Olathe in Kansas. We are expanding stations in Long Island for Nice Transit, and Jacksonville Transportation Authority took delivery of their first CNG buses this quarter and plans to convert their entire fleet to natural gas over the next few years. We saw increased volume from our transit customers in Las Vegas, Dallas and Tampa because they continue to add more transit buses, natural gas transit buses. On NG Advantage, our subsidiary which provides a virtual CNG pipeline to large energy consumers, we announced that they were awarded a contract extension with International Paper for the Ticonderoga, New York paper mill. This is now the largest mobile pipeline project in the country. In our compression division, we have begun to ship our new standardized compressor units. As I've mentioned on previous calls, we initiated significant operational improvements and those changes are beginning to take effect. Regarding our balance sheet and financials, we continue to make sure that we are operating the business efficiently as we continue to grow our volumes and getting operating leverage out the business. As an example, over the last 5 quarters, we reduced our SG&A by 20% while we grew our volumes by 24%. All this is in the face of a challenged oil environment. Through the end of September, we spent $40 million in CapEx compared to roughly $75 million through Q3 of last year. We remain focused on the 2016 convertible notes, which are due at the end of August of next year. We are in regular communication with the note holders and we expect to repay these notes with a combination of cash and stock ahead of the maturity date. De-leveraging the balance sheet is a priority. I'd like to end my prepared comments by commending the Clean Energy team for reaching our goal of turning EBITDA positive this quarter. We did this despite the low price oil environment by staying focused and having a superior national service offering for customers along with price stability, fuel diversity for fleets, lower incremental vehicles costs, and the unmatched sustainability benefits of natural gas. As we've recently seen in the headlines, the true impact of diesel emissions are seriously in question and a heavy duty electric truck is at least a decade away. There's no other alternative vehicle fuel solution that is more cost effective and immediately environmentally beneficial as natural gas, and fleet operators are beginning to clearly understand that. And with that, I'll turn the call over to Bob. -------------------------------------------------------------------------------- Bob Vreeland, Clean Energy Fuels Corp. - CFO [4] -------------------------------------------------------------------------------- Thank you, Andrew, and good afternoon to everyone. It's my pleasure to go over our financial results for the third quarter ended September 30, 2015. We continue to make steady progress with our volume growth and improvement in our adjusted EBIDTA. Our volume of 80.6 million gasoline gallon equivalents for the third quarter of 2015 represented a 17% increase on a year over year basis, and our adjusted EBITDA of $3.1 million was an improvement of $5.7 million over the second quarter of 2015 and an improvement of $8.7 million over the first quarter of 2015. A year ago for the third quarter of 2014, our adjusted EBITDA was negative $2 million on higher revenues. Now I'll go over some specifics for the third quarter of 2015. Starting with volume, compared to the third quarter of 2014, our volume growth of 17% came from refuse which increased 29%, transit and fleet services combined increased 3%, trucking increased 13%, our industrial sector, including our majority owned subsidiary, NG Advantage, increased by 6.5 million gallons totaling 10 million gallons for the third quarter of 2015. And our bio methane plant volumes were down on a year over year basis by 1.7 million gallons principally from having two plants in operation in 2015 versus three plants in operation in 2014. As you may recall, we sold our Dallas bio methane plant at the end of 2014. On a year-to-date basis through September 30, our volumes were up 19%, or 37.5 million gallons, over 2014. Our revenues of $92.3 million were $11.1 million less than a year ago, which is principally from lower effective pricing on our volume related revenue, fewer fueling stations sold, and a global softness in our compressor business. The lower effective pricing represented $5.7 million of the decline in revenue. Station construction revenues were down $10.3 million. Clean Energy Compression Corp. revenues were down $6.4 million. These declines in revenue were partially offset by $9.8 million in higher revenues from incremental gallons and $1.5 million in incremental low carbon fuel standard credits. The lower effective pricing is being driven by lower commodity costs and product mix changes which were partially offset by higher renewable fuel, or REN, credits. The decline in station construction revenues is mainly attributed to us selling more station upgrades in 2015 versus full stations sold last year as well as the normal timing aspect of the construction process. This still represents an expanding investment in natural gas by our customers. The lower revenue at Clean Energy Compression Corp. reflects the same general softness in the international marketplace caused by the low oil price environment. Our gross margin per gasoline gallon equivalent was $0.26 in the third quarter of 2015, compared to $0.28 in the third quarter of 2014 and $0.27 in the second quarter of 2015. The decline of $0.02 from 2014 was attributed to differences in fuel mix helped by incremental REN credits in 2015 from greater Redeem volumes. All in all, we're holding steady on our gross margin per gallon in this low oil price environment as we are somewhat insulated from the retail price environment due to the diverse nature and national footprint of our recurring volumes. We saw additional gross margin improvement from Clean Energy Compression Corp. in the third quarter when compared to the second quarter of 2015, although their gross margins are still depressed as a result of the lower sales volumes. We also picked up $1.5 million in incremental LCFS margin when comparing 2015 to 2014 in the third quarter. Our SG&A spending was approximately $28 million for the quarter, representing a 2% decrease from a year ago and a 4% decline from our most recent second quarter. We had a couple gain items in the quarter totaling $2.4 million related to our former Dallas bio methane plant. These items related to additional sales proceeds received after passing some post sale performance tests at the plant and we received money from the settlement of a construction vendor claim. The $2.4 million was reported in other income in our statement of operations. Our cash and investments totaled $166 million at September 30, 2015. We continue to control capital expenditures as planned. As Andrew mentioned, we've spent $40 million on CapEx in the first nine months of 2015 compared to $75 million spent in the first nine months of 2014, a $35 million reduction while volumes are growing. All in all a good quarter with volume growth and improved adjusted EBITDA. We expect to say the course of leveraging our infrastructure and growing volumes as we look forward, recognizing the challenges from the low oil price environment remain in the near term. And with that, Operator, we'll open the call to questions ================================================================================ Questions and Answers -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- (Operator Instructions). Rob Brown, Lake Street Capital Markets. -------------------------------------------------------------------------------- Rob Brown, Lake Street Capital Markets - Analyst [2] -------------------------------------------------------------------------------- Good afternoon. Congratulations on a good quarter. On the EBITDA, the positive EBITDA run rate, how do you see that sort of trending? Is this sort of a level you can build from or is it sort of down to this level and then depends on volume? Or how do you sort of see that EBITDA trending going forward? -------------------------------------------------------------------------------- Bob Vreeland, Clean Energy Fuels Corp. - CFO [3] -------------------------------------------------------------------------------- Well the plan is for it to trend up. Now I will say that, as I mentioned just a minute ago, we did have a couple gain items in there, $2.4 million. So I don't expect that that will occur again. But other than that, then the idea is to continue to grow volumes and increase the EBITDA. -------------------------------------------------------------------------------- Rob Brown, Lake Street Capital Markets - Analyst [4] -------------------------------------------------------------------------------- Okay, great. And then, Andrew, could you update us on the cost of the vehicles kind of coming in and what the sort of economics and payback picture looks like in the current commodity environment? -------------------------------------------------------------------------------- Andrew Littlefair, Clean Energy Fuels Corp. - President and CEO [5] -------------------------------------------------------------------------------- Sure. As I mentioned, Rob, a quarter ago, maybe it was even longer ago, that we have, thank goodness for the industry, the cost of the vehicles has come down some. We've seen the incremental costs over the last three or four years come down. Right now, some of the latest deals that we've seen, and I'm not going to name the people that have taken the vehicles, but we've seen LNG truck incremental pricing all in at $35,000 and we've seen CNG pricing at closer to $45,000. That's down from where we had been by half a year ago by $10,000 or more dollars per truck. So that's good. As you know, our margins, or at least our price per gallon and the differential between diesel, has been compressed. So we're seeing paybacks. On those kinds of trucks that are using 20,000+ gallons a year, the payback has increased some. It's not too long ago where we were just outside of a year and I'd say now the payback -- it depends. We have a real good customer, Matheson, who is a bulk US mail carrier, they do 40,000 gallons a year per truck. Obviously their payback is different. But payback has gone from over a year to closer to two years. We're still able to save our customers anywhere between $0.50 to $0.75, in some cases $0.80, $0.85 a gallon. -------------------------------------------------------------------------------- Rob Brown, Lake Street Capital Markets - Analyst [6] -------------------------------------------------------------------------------- Okay, great. Thank you very much. -------------------------------------------------------------------------------- Operator [7] -------------------------------------------------------------------------------- Eric Stine, Craig-Hallum. -------------------------------------------------------------------------------- Eric Stine, Craig-Hallum - Analyst [8] -------------------------------------------------------------------------------- Hi, everyone, nice quarter. So obviously nice volume growth and your leverage in the stations. Maybe can you just talk about kind of the trends you see? I don't know if it's by doing kind of a same store sales number for a station that's been open for a year or metrics along those lines, that would be helpful. -------------------------------------------------------------------------------- Andrew Littlefair, Clean Energy Fuels Corp. - President and CEO [9] -------------------------------------------------------------------------------- You know, Eric, we've -- we're not in a place right now to give you the same store sales, but I think the Raven example is probably a good one. Those trucks, this is what I talked about in my remarks, I guess you go back about a year, Raven had about 100 trucks. Today it's about 225, they're taking 40 more as we speak. And what we've seen there is those original Raven units were at a handful of stations. I'm kind of guessing here, but I want to say it was between 5 and 6 stations. Because we've spent the capital and because we have the corridors and stations that we could open, now we're fueling those. We actually, have last month, fueled Raven's trucks at actually 25 of our network stations, but I would say consistently they use 21. It is what we've seen as we're able to, because we have the network, we've seen the station volume grow at not just the four or five original stations, but at many others. So the stations that we've opened that are truck-friendly, the volumes have gone up. Now look, we all know we're in a tough environment and we know that what we've been seeing is we haven't had any of our customers that have been with the program turn back. Really to the contrary. We continue to see those that have made significant investments continue to add trucks. Which we're pleased with that. They still see an economic reason and they still, and they're getting the sustainability benefit. You know, we -- a year ago we didn't speak as much about this sustainability piece but it is an important piece and certainly for these consumer-facing companies and haulers. It's kind of real and not a day goes by that we're reading about global warming and new ethane emissions standards and EPA standards. This isn't going unnoticed with our customers. But we haven't seen any customers come back. Now I would say, let's face it, those customers that were on the fence, this low diesel price is challenging. And we're still in open dialogue with a lot of them. We're still doing work with some. We're actually right now working with several new fleets to participate in this California program here that would be new to the program. So I -- those customers that believe we're in a long downturn of diesel and oil prices, they're taking a real hard look at it. Others though, that we've worked with over time, continue to add vehicles. -------------------------------------------------------------------------------- Eric Stine, Craig-Hallum - Analyst [10] -------------------------------------------------------------------------------- Okay, and then just sticking with the environmental theme, I know that California recently, I guess it's been there, but putting back in place the low carbon fuel standard. Is that -- I mean number one, I would think that gives Redeem a pretty nice advantage in the market. But then also just curious, they've put in the targets to reduce the carbon intensity through 2020. Is that something that can have a meaningful impact on your margins as well, on your bottom line as well? -------------------------------------------------------------------------------- Andrew Littlefair, Clean Energy Fuels Corp. - President and CEO [11] -------------------------------------------------------------------------------- Yeah, absolutely. We're one of the biggest players in the low carbon fuel standard, period. I don't want to say we sell more and produce more low carbon fuel than anybody else, but we're certainly near the top if not at the top. So yeah, it's important for us. Just as is our Redeem offering. Having UPS and some of these other large fleets begin to -- it's no mistake that they're availing themselves to Redeem. I mean that fuel is 90% less carbon. And we're seeing other large fleets going out to bid on that. You know that we, because we have a big infrastructure in California and in other places, but certainly in California with the low carbon fuel standard, all of the fuel that we put into our stations in California is able to get the low carbon fuel credit. But what's kind of interesting, Eric, is now we're having fleets go above and beyond that, right, and ask for Redeem in other states that gets the other federal credits. And it's because they consider it very valuable for their customers and for what they're doing. So yeah, it gives us a leg up and it gives us a way to work with customers that maybe perhaps weren't fueling before. And of course we make money on it. -------------------------------------------------------------------------------- Eric Stine, Craig-Hallum - Analyst [12] -------------------------------------------------------------------------------- Yep. Okay, thanks for that color. Maybe last one for me, just turning to NG Advantage, just curious thoughts there -- very successful what you're doing. Thoughts about expanding that to other parts of the country? Or also is there an ability to expand to other locations with International Paper? -------------------------------------------------------------------------------- Andrew Littlefair, Clean Energy Fuels Corp. - President and CEO [13] -------------------------------------------------------------------------------- International Paper I believe has two other pulp plants right now on it. One in the southeast and I can't remember where the other one is, on natural gas. There are other paper mills. So we're -- I think you should right now think of NG Advantage as really in the region. It's not just in Vermont and upstate New York, but that northeast is a place where natural gas, where it competes with fuel oil. So we are out bidding on new projects. The price of fuel oil has come in as well, so now the good news I guess on that piece is there are stationary users of energy that have been using fuel oil and other fuels that really are under environmental pressure as well. So the same sort of thing, kind of the two-pronged approach, not just price but also environmental concerns is helping NG Advantage. We've looked at other deals with NG Advantage in other parts of the country. We've bid on a few, we're bidding om a couple of others. I want to keep it -- I think there's plenty of business for them for the time being and for the size of that company to really focus in the northeast and that's what we'll continue to really, you'll see more deals added there. -------------------------------------------------------------------------------- Operator [14] -------------------------------------------------------------------------------- Jeffrey Schnell, Jefferies. -------------------------------------------------------------------------------- Jeffrey Schnell, Jefferies - Analyst [15] -------------------------------------------------------------------------------- Hi, good afternoon. Back to a question earlier on incremental costs and the payback, do you have an optimal range that truck fleets are willing to switch at based on the conversations you're having with them? -------------------------------------------------------------------------------- Andrew Littlefair, Clean Energy Fuels Corp. - President and CEO [16] -------------------------------------------------------------------------------- Sure. Jeffrey, thanks. We've known for years, and this is something that we saw in refuse and others, we know that when you get down to a one-year payback, it's kind of a no brainer for these guys. Obviously in the heavy duty truck market, they keep -- now I'm talking about sort of the big boys that use a lot of miles and turn those vehicles over in four years. They like to see the payback inside two years. The closer you can get to one year, the better. So we're a little on the outer edge today of where they would like to see it. But our refuse guys, and I think it's important for those on the phone to understand, our refuse customers, I mean this is from the very large like -- we're working today with the four largest companies in America and waste hasn't backed up at all. In fact, they're at 95% of the new purchases are natural gas and Republic is around 60%. That incremental cost is around, it kind of depends, that vehicle cost is around 20-some odd thousand, $23,000, $25,000 for those that are buying a lot of trucks. So they're getting somewhere around a year and half payback right now in the refuse. They're not getting any other credits or anything else. So that's enough, the environmental attributes and that kind of payback makes it work for them and it does really for many, many companies in the refuse business. -------------------------------------------------------------------------------- Jeffrey Schnell, Jefferies - Analyst [17] -------------------------------------------------------------------------------- Great. And then lastly, you spoke about adding 17 new contracts to your pipeline . Can you talk about how that project comes to revenue and then are those volumes already guaranteed or how are those projects structured? -------------------------------------------------------------------------------- Andrew Littlefair, Clean Energy Fuels Corp. - President and CEO [18] -------------------------------------------------------------------------------- Yeah, so those, Jeffrey, and I may have slipped over that, but that was in the context of refuse contracts. So those are new refuse deals. Remember, many of those will be where we are building the station and providing operation and maintenance services for them. And yes, they're under contract. Most of those, and I don't know exactly on those particular 17, but as you know, or you may know, most of our refuse guys are deploying their own capital. Now there are those where we spend the capital and of course when we do, we have take or pays and other kinds of contracts, but yeah, those are all under contract for us to either build them a station, and in the cases where we don't build them a station, and that would be a minority, yeah, we have anywhere from a 3-year to 5-year to even 10-year operating contracts with them -------------------------------------------------------------------------------- Bob Vreeland, Clean Energy Fuels Corp. - CFO [19] -------------------------------------------------------------------------------- I was going to say, on the -- so the 17 pretty much is looking into 2016 just relative to the timing and that sort of thing. And so we do get a nice little kind of advance notice on a backlog relative to our station activity. -------------------------------------------------------------------------------- Operator [20] -------------------------------------------------------------------------------- Pavel Molchanov, Raymond James. -------------------------------------------------------------------------------- Pavel Molchanov, Raymond James - Analyst [21] -------------------------------------------------------------------------------- Hey, guys, thanks for taking the question. There was a news article I think earlier this week referencing a new study from Power Systems Research saying that domestic NGV engine sales are flat this year versus up 27% last year. Is that consistent what you're seeing in the marketplace? -------------------------------------------------------------------------------- Andrew Littlefair, Clean Energy Fuels Corp. - President and CEO [22] -------------------------------------------------------------------------------- You know, I think that this year, Pavel, I think that this year's heavy duty truck sales are going to be about flat on what they were last year. That's -- I've probably heard the same things you have. I wasn't familiar with the 27% last year, but I'll take that. But I'm kind of thinking that the Class 8 numbers are about the same as what they were last year and I guess given the current fuel environment that we're in, I consider that probably pretty good. I have heard on the refuse, and you'd have to -- I'm kind of taking this from just the industry information that comes into us from time to time, is that it appears that the refuse numbers, and I don't know if this is right now, Pavel, going today, going forward or in this quarter, I'm not exactly sure, they're kind of up on those going into the refuse market. So I like that news and consider that good. -------------------------------------------------------------------------------- Pavel Molchanov, Raymond James - Analyst [23] -------------------------------------------------------------------------------- Okay, and then just a kind of small housekeeping item. I know you'll file the Q later on, but what was cash flow from operations in the quarter? -------------------------------------------------------------------------------- Bob Vreeland, Clean Energy Fuels Corp. - CFO [24] -------------------------------------------------------------------------------- That was about $1.8 million for the quarter. So on a year to date basis, we're at like minus $1 million versus last year we were at minus $56 million. So we have about a $55 million improvement there in the operating cash. -------------------------------------------------------------------------------- Pavel Molchanov, Raymond James - Analyst [25] -------------------------------------------------------------------------------- Including the V-Tach, right? -------------------------------------------------------------------------------- Bob Vreeland, Clean Energy Fuels Corp. - CFO [26] -------------------------------------------------------------------------------- Including the V-tach, yeah. -------------------------------------------------------------------------------- Pavel Molchanov, Raymond James - Analyst [27] -------------------------------------------------------------------------------- Got it. All right. Thank you, guys. -------------------------------------------------------------------------------- Operator [28] -------------------------------------------------------------------------------- There are no further questions at this time. Mr. Littlefair, would you like to make any closing remarks? -------------------------------------------------------------------------------- Andrew Littlefair, Clean Energy Fuels Corp. - President and CEO [29] -------------------------------------------------------------------------------- Sure, thank you. Thank you, Operator, and thank you everyone for dialing into our earnings call this afternoon. We look forward to updating you all on our progress in the next quarter. -------------------------------------------------------------------------------- Operator [30] -------------------------------------------------------------------------------- This concludes today's teleconference. Thank you for your participation. You may disconnect your lines at this time.
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