Clean Energy Fuels Corp. (NASDAQ: CLNE) (Clean Energy or the
Company) today announced operating results for the fourth quarter
and year ended December 31, 2015.
The Company delivered 78.3 million gallons in the fourth quarter
of 2015, an 8.1% increase from 72.4 million gallons in the fourth
quarter of 2014. For the year ended December 31, 2015 the Company
delivered 308.5 million gallons, a 16.4% increase from 265.1
million gallons delivered in the year ended December 31, 2014.
Revenue for the fourth quarter of 2015 was $119.3 million, a
9.7% decrease from $132.1 million of revenue for the fourth quarter
of 2014. Revenue for the fourth quarter of 2015 and 2014 included
$31.0 million and $28.4 million, respectively, of excise tax
credits for alternative fuels (VETC). VETC is in effect through
December 31, 2016 and will be recognized as earned during each
quarter of 2016. Increased VETC revenue and $4.9 million of revenue
from incremental volumes partially offset the decline in
revenue.
Revenue for the year ended December 31, 2015 was $384.3 million,
a 10.4% decrease from $428.9 million for the year ended December
31, 2014. Revenue of $36.6 million from incremental volumes
partially offset the decline in revenue.
The revenue decreases in the fourth quarter and year ended
December 31, 2015 were primarily due to the lower cost of natural
gas, continued softness in the Company’s global compressor business
due to low oil prices and a strong U.S. dollar, and less
construction revenue caused by the type and timing of completed
projects.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated: “We continue to make progress and
improve our results in a tough low oil price market. Year-over-year
we experienced double digit volume growth, and our adjusted EBITDA
remained positive and improved over our last quarter and last year.
We are encouraged by the many bright spots in our business,
including the more than 100% increase in our Redeem™ renewable
natural gas volumes in 2015, our substantial reductions in SG&A
expenses, and the sustained strength of the refuse and transit
markets. We continue to leverage our natural gas fueling
infrastructure and solid foundation of recurring volumes while
remaining focused on our capital structure as evidenced by our
recent reduction in our convertible debt by $92.5 million.”
Adjusted EBITDA for the fourth quarter of 2015 was $32.9 million
compared with Adjusted EBITDA of $37.2 million in the fourth
quarter of 2014. For the year ended December 31, 2015,
Adjusted EBITDA was $27.8 million, compared to $23.7 million for
2014. Adjusted EBITDA for the fourth quarter and year ended
December 31, 2015 and 2014 included VETC revenue of $31.0 million
and $28.4 million, respectively. Adjusted EBITDA for the fourth
quarter and year ended December 31, 2014 also included a $12.0
million gain from the sale of a subsidiary. Adjusted EBITDA is
described below and reconciled to the GAAP measure net loss
attributable to Clean Energy Fuels Corp.
Non-GAAP income per share for the fourth quarter of 2015 was
$0.08, compared to non-GAAP income per share for the fourth quarter
of 2014 of $0.11. For the year ended December 31, 2015,
non-GAAP loss per share was $(0.75), compared to non-GAAP loss per
share of $(0.76) for 2014. Non-GAAP income (loss) per share for the
fourth quarter and year ended December 31, 2015 and 2014 included
VETC revenue and 2014 included the gain from the sale of a
subsidiary as mentioned above. Non-GAAP income (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 fourth quarter of 2015 was
$50.0 million or $0.54 per share, which included a non-cash
interest charge of $54.9 million related to the deferred debt
issuance costs associated with the Company’s termination of its
credit agreement with GE Capital EFS Financing (Debt Issuance
Costs). Net income on a GAAP basis for the fourth quarter of 2014
was $1.3 million, or $0.01 per share, which included a charge of
$4.7 million related to a compressor project in Australia (IMW
Australia Project) and the previously mentioned gain of $12.0
million from the sale of a subsidiary.
On a GAAP basis, net loss for the year ended December 31,
2015 was $134.2 million, or $1.47 per share, which included the
$54.9 million non-cash Debt Issuance Costs charge mentioned above.
Net loss on a GAAP basis for the year ended December 31, 2014
was $89.7 million, or $0.96 per share, which included a $4.8
million intangible asset impairment charge related to a service
contract that was not renewed (IMW Impairment) and the previously
mentioned $4.7 million IMW Australia Project charge and gain of
$12.0 million from the sale of a subsidiary.
Subsequent to December 31, 2015, the Company paid $16.8 million
in cash to repurchase $32.5 million of the $250.0 million 5.25%
Notes due 2018, plus accrued interest. Additionally, the Company
paid $61.8 million in cash as a prepayment of $60.0 million of the
$145.0 million outstanding principal amount of convertible notes
due August 2016, plus accrued interest.
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,
plus or minus any mark-to-market losses or gains on derivative
warrants, plus or minus the foreign currency losses or gains on the
purchase notes issued in September 2010 by the Company in
connection with its acquisition of Clean Energy Compression (IMW
Purchase Notes), plus the fair value adjustment of the remaining
shares the Company received from Westport Innovations, Inc. in
connection with the sale of its former subsidiary BAF Technologies,
Inc. (WPRT Holdback Shares Write-Down), plus the Debt Issuance
Costs, plus the IMW Australia Project, plus the IMW Impairment,
plus the costs attributed to executive officer transitions in 2014
(Executive Officer Transitions) and plus the charges relating to
the move of the Company’s headquarters (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 derivative warrants is
useful to investors because the valuation of the derivative
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 Clean Energy
Compression business as opposed to the core operations of the
Company. The Company’s management believes that excluding the WPRT
Holdback Shares Write-Down, the Debt Issuance Costs, the IMW
Australia Project, the IMW Impairment, the Executive Officer
Transition 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 income (loss) attributable to Clean
Energy Fuels Corp.:
Three Months Ended December 31,
Year Ended December 31, (in 000s,
except per-share amounts) 2014
2015 2014 2015 Net
Income (Loss) Attributable to Clean Energy Fuels Corp. $ 1,333
$ (50,014 ) $ (89,659 ) $ (134,242 ) Stock Based Compensation, Net
of $0 Tax 2,307 2,770 11,514 10,779 Gain From Change in Fair Value
of Derivative Warrants (324 ) (329 ) (5,748 ) (1,414 ) Foreign
Currency Loss on IMW Purchase Notes — — 343 — WPRT Holdback Shares
Write-Down — — 122 — Debt Issuance Costs — 54,925 — 54,925 IMW
Australia Project — — 4,657 — IMW Impairment 4,772 — 4,772 —
Executive Officer Transitions 1,883 — 1,883 — HQ Lease Exit
408 338 1,284 835
Adjusted Net Income (Loss) $ 10,379 $ 7,690 $ (70,832 ) $ (69,117 )
Diluted Weighted Average Common Shares Outstanding 91,153,853
92,063,032 93,678,432 91,607,578
Non-GAAP Income (Loss) Per
Share $ 0.11 $ 0.08 $ (0.76 ) $ (0.75 )
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 foreign
currency losses or gains on the IMW Purchase Notes, plus
stock-based compensation charges, plus or minus any mark-to-market
losses or gains on derivative warrants, plus the WPRT Holdback
Shares Write-Down, plus the IMW Australia Project, plus the IMW
Impairment, plus Executive Officer Transitions 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 income (loss) attributable to Clean
Energy Fuels Corp.:
Three Months Ended December 31,
Year Ended December 31, (in
000s) 2014 2015 2014
2015 Net Income (Loss) Attributable
to Clean Energy Fuels Corp. $ 1,333 $ (50,014 ) $ (89,659 ) $
(134,242 ) Income Tax (Benefit) Expense (845 ) 261 1,075 1,614
Interest Expense, Net (1) 14,041 64,950 44,357 94,970 Depreciation
and Amortization 13,610 14,931 49,058 55,219 Foreign Currency Loss
on IMW Purchase Notes — — 343 — Stock Based Compensation, Net of $0
Tax 2,307 2,770 11,514 10,779 Gain from change in fair value of
derivative warrants (324 ) (329 ) (5,748 ) (1,414 ) WPRT Holdback
Shares Write-Down — — 122 — IMW Australia Project — — 4,657 — IMW
Impairment 4,772 — 4,772 — Executive Office Transitions 1,883 —
1,883 — HQ Lease Exit 408 338
1,284 835
Adjusted EBITDA $ 37,185 $
32,907 $ 23,658 $ 27,761
(1) For the three months and year ended December 31, 2015,
includes a non-cash interest charge of $54.9 million related to the
Company’s termination of its credit agreement with GE Capital EFS
Financing.
“Gallons” Defined
The Company defines “gallons” 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 plus the Company’s proportionate share
of gallons delivered by joint ventures.
The table below shows gallons delivered for the three months and
year ended December 31, 2014 and 2015:
Three Months Ended December 31,
Year Ended December 31, Gallons
Delivered (in millions) 2014
2015 2014 2015 CNG 52.1
60.7 182.6 229.2 RNG(1) 3.0 1.1 12.2 8.8 LNG 17.3 16.5 70.3 70.5
Total 72.4 78.3 265.1 308.5
(1) Represents RNG non-vehicle fuel. RNG sold as vehicle
fuel is included in CNG and LNG.
Today’s Conference Call
The Company will host an investor conference call today at 4:30
p.m. Eastern time (1:30 p.m. Pacific). Investors
interested in participating in the live call can dial
1.877.407.4018 from the U.S. and international callers can dial
1.201.689.8471. A telephone replay will be available approximately
two hours after the call concludes through Sunday, April 3, by
dialing 1.877.870.5176 from the U.S., or 1.858.384.5517 from
international locations, and entering Replay Pin Number 13629930.
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
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, including economic and
environmental benefits, the Company’s ability to successfully enter
new businesses, 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, transit,
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, renewable 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
and debt repayment obligations (whether at or prior to maturity),
the Company’s ability to retain and hire key personnel, the
acceptance and availability of natural gas vehicles in the
Company’s markets, the availability of tax credit and other
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, permitting
and other delays at station construction projects, the Company’s
ability to integrate acquisitions and investments, compliance with
governmental regulations, the Company’s ability to effectively
manage its current LNG plants and RNG production facilities, 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 March 3,
2016 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 (In thousands,
except share data, Unaudited)
December 31, December 31,
2014 2015 Assets Current assets: Cash and cash
equivalents
$
92,381
$
43,724 Restricted cash 6,012 4,240 Short-term investments 122,546
102,944 Accounts receivable, net of allowance for doubtful accounts
of $752 and $1,895 as of December 31, 2014 and December 31, 2015,
respectively 81,970 73,645 Other receivables 56,223 60,667
Inventories 34,696 29,289 Prepaid expenses and other current assets
19,811 14,930 Total current assets
413,639 329,439 Land, property and equipment, net 514,269 516,324
Notes receivable and other long-term assets, net 71,904 19,723
Investments in other entities 6,510 5,695 Goodwill 98,726 91,967
Intangible assets, net 55,361 42,644
Total assets $ 1,160,409 $ 1,005,792
Liabilities
and Stockholders’ Equity Current liabilities: Current portion
of long-term debt and capital lease obligations 4,846 150,129
Accounts payable 43,922 26,906 Accrued liabilities 56,760 59,082
Deferred revenue 14,683 10,549 Total
current liabilities 120,211 246,666 Long-term debt and capital
lease obligations, less current portion 500,824 357,285 Long-term
debt, related party 65,000 65,000 Other long-term liabilities
9,339 7,896 Total liabilities 695,374
676,847 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 92,382,717 shares at December 31, 2014 and
December 31, 2015, respectively 9 9 Additional paid-in capital
898,106 915,199 Accumulated deficit (457,441 ) (591,683 )
Accumulated other comprehensive loss (3,248 ) (20,973
) Total Clean Energy Fuels Corp. stockholders’ equity 437,426
302,552 Noncontrolling interest in subsidiary 27,609
26,393 Total stockholders’ equity 465,035
328,945 Total liabilities and stockholders’
equity $ 1,160,409 $ 1,005,792
Clean
Energy Fuels Corp. and Subsidiaries Condensed Consolidated
Statements of Operations (In thousands, except share and per
share data, Unaudited) Three
Months Ended Year Ended December
31, December 31, 2014
2015 2014 2015 Revenue:
Product revenues
$
117,489
$
106,772
$
380,199
$
329,168 Service revenues 14,623 12,575
48,741 55,152 Total revenues 132,112
119,347 428,940 384,320 Operating expenses: Cost of sales
(exclusive of depreciation and amortization shown separately
below): Product cost of sales 75,399 56,542 291,462 230,621 Service
cost of sales 4,528 6,701 17,325 27,864 Gain from change in fair
value of derivative warrants (324 ) (329 ) (5,748 ) (1,414 )
Selling, general and administrative 30,305 26,626 126,435 113,653
Depreciation and amortization 13,610 14,931 49,058 55,219
Impairment of long-lived asset 4,772 —
4,772 — Total operating expenses
128,290 104,471 483,304
425,943 Operating loss 3,822 14,876 (54,364 ) (41,623 )
Interest expense, net (14,041 ) (64,950 ) (44,357 ) (94,970 ) Other
income (expense), net (1,526 ) 52 (2,571 ) 2,627 Loss from equity
method investments (490 ) (112 ) (490 ) (815 ) Gain from sale of
subsidiary 11,998 — 11,998
937 Loss before income taxes (237 ) (50,134 )
(89,784 ) (133,844 ) Income tax (expense) benefit 845
(261 ) (1,075 ) (1,614 ) Net loss 608 (50,395
) (90,859 ) (135,458 ) Loss on noncontrolling interest 725
381 1,200 1,216
Net gain (loss) attributable to Clean Energy Fuels Corp. $ 1,333
$ (50,014 ) $ (89,659 ) $ (134,242 ) Gain (loss) per share
attributable to Clean Energy Fuels Corp.: Basic $ 0.01 $
(0.54 )
$
(0.96 ) $ (1.47 ) Diluted $ 0.01 $ (0.54 )
$
(0.96 ) $ (1.47 ) Weighted-average common shares outstanding: Basic
91,153,853 92,063,032 93,678,432
91,607,578 Diluted 96,584,853
92,063,032 93,678,432 91,607,578
Included in net loss are the following amounts (in
millions):
Three Months Ended
Year Ended Dec. 31, Dec. 31,
2014 2015 2014
2015 Construction Revenues $ 14.6 $ 10.3 $
67.4 $ 37.8 Construction Cost of Sales (11.9 ) (8.3 ) (56.3 ) (32.3
) Fuel Tax Credits 28.4 31.0 28.4 31.0 Stock-based Compensation
Expense, Net of $0 Tax (2.3 ) (2.8 ) (11.5 ) (10.8 )
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version on businesswire.com: http://www.businesswire.com/news/home/20160303005449/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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