Clean Energy Fuels Corp. (NASDAQ: CLNE) ("Clean Energy" or the
"Company") today announced operating results for the third quarter
ended September 30, 2016.
The Company delivered 84.5 million gallons in the third quarter
of 2016, a 5% increase from 80.6 million gallons delivered in the
third quarter of 2015.
Revenue for the third quarter of 2016 was $97.0 million, a 5%
increase from $92.3 million for the third quarter of 2015. The
Company’s deliveries of vehicle fuel, renewable natural gas,
customer station construction activity and excise tax credits for
alternative fuels ("VETC") increased revenue in the third quarter
of 2016.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated, “I'm pleased with our third quarter
financial results together with our growth in volumes and improved
capital structure, particularly the dramatic reduction in our
current debt balance. And we continue to see positive momentum in
the use of natural gas and renewable natural gas as a vehicle fuel
as demonstrated by multiple customer gains and expansions.”
On a GAAP basis, net loss for the third quarter of 2016 was
$12.6 million, or $0.10 per share, compared to a net loss of $23.1
million, or $0.25 per share, for the third quarter of 2015. The
third quarter of 2016 included VETC revenue of $6.7 million and a
net non-cash loss of $0.7 million from the settlement of a portion
of the Company's debt (the "debt reductions"). For the nine months
ended September 30, 2016, net loss was $8.3 million, or $0.07 per
share, compared to a net loss of $84.2 million, or $0.92 per share,
for the same period in 2015. The nine months ended September 30,
2016 included a net non-cash gain of $25.4 million from the debt
reductions and VETC revenue of $19.6 million. The three and nine
months ended September 30, 2015 did not include any VETC revenue
but included other income of $2.3 million from a litigation
settlement and earn-out relating to our former Dallas bio methane
plant ("other gains").
Non-GAAP loss per share for the third quarter of 2016 was $0.08,
compared to non-GAAP loss per share of $0.23 for the third quarter
of 2015. The third quarter of 2016 included VETC revenue and the
net non-cash loss from the debt reductions. For the nine months
ended September 30, 2016, non-GAAP loss per share was $0.02,
compared to non-GAAP loss per share of $0.84 for the same period in
2015. The nine months ended September 30, 2016 included VETC
revenue and the net non-cash gain from the debt reductions. The
three and nine months ended September 30, 2015 included other gains
of $2.3 million. Non-GAAP loss per share is described below and
reconciled to GAAP net loss and loss per share attributable to
Clean Energy Fuels Corp.
Adjusted EBITDA for the third quarter of 2016 was $10.9 million
compared to Adjusted EBITDA of $3.1 million for the third quarter
of 2015. The third quarter of 2016 included VETC revenue and the
net non-cash loss from the debt reductions. For the nine months
ended September 30, 2016, Adjusted EBITDA was $67.4 million
compared to Adjusted EBITDA of $(5.1) million for the same period
in 2015. The nine months ended September 30, 2016 included VETC
revenue and the net non-cash gain from the debt reductions. The
three and nine months ended September 30, 2015 included other gains
of $2.3 million. Adjusted EBITDA is described below and reconciled
to GAAP net loss 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
called non-GAAP earnings per share ("non-GAAP EPS" or "non-GAAP
loss per share") and adjusted EBITDA ("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, when specified,
non-recurring expenses that are not directly attributable to its
core operating results. In addition, management believes that 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 (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 similar to the
non-GAAP adjustments described below. Accordingly, unless otherwise
stated, 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 per share or operating 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 loss attributable to Clean Energy
Fuels Corp., plus stock-based compensation expense, plus or minus
any loss (gain) from changes in the fair value of derivative
warrants 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
expenses related to stock-based compensation provides useful
information to investors 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. Similarly, the
Company’s management believes that excluding the non-cash loss
(gain) from changes in the fair value of 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 HQ Lease Exit is useful to investors because the
charges are not part of or representative of the core operations of
the Company.
The table below shows GAAP and non-GAAP EPS and also reconciles
GAAP Net Loss attributable to Clean Energy Fuels Corp. to Adjusted
Net Loss:
Three Months EndedSeptember 30, Nine
Months EndedSeptember 30, (in 000s, except per-share
amounts) 2015 2016 2015
2016 Net Loss Attributable to Clean Energy Fuels
Corp. $ (23,119 ) $ (12,628 ) $ (84,228 ) $ (8,270 )
Stock-Based Compensation, Net of $0 Tax 2,656 2,077 8,009 6,533
Gain From Change in Fair Value of Derivative Warrants (502 ) (26 )
(1,085 ) (25 ) HQ Lease Exit 152 — 496 —
Adjusted Net Loss $ (20,813 ) $ (10,577 ) $ (76,808 ) $
(1,762 )
Weighted-Average Common Shares Outstanding
- Diluted
91,561,613
130,436,038
91,454,117
112,819,041
GAAP Loss Per Share Attributable to Clean Energy Fuels Corp.
$ (0.25 ) $ (0.10 ) $ (0.92 ) $ (0.07 )
Non-GAAP Loss Per
Share $ (0.23 ) $ (0.08 ) $ (0.84 ) $ (0.02 )
Adjusted EBITDA
Adjusted EBITDA is defined as net loss attributable to Clean
Energy Fuels Corp., plus or minus income tax expense (benefit),
plus or minus interest expense (income), net, plus depreciation and
amortization expense, plus stock-based compensation expense, minus
any gain from changes in the fair value of derivative warrants 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 GAAP net loss attributable to Clean Energy Fuels
Corp.:
Three Months EndedSeptember 30, Nine
Months EndedSeptember 30, (in 000s) 2015
2016 2015 2016 Net Loss
Attributable to Clean Energy Fuels Corp. $ (23,119 ) $ (12,628
) $ (84,228 ) $ (8,270 ) Income Tax Expense (Benefit) (241 ) 416
1,353 1,229 Interest Expense, Net 10,152 6,283 30,020 23,264
Depreciation and Amortization 14,000 14,801 40,288 44,682
Stock-Based Compensation, Net of $0 Tax 2,656 2,077 8,009 6,533
Gain From Change in Fair Value of Derivative Warrants (502 ) (26 )
(1,085 ) (25 ) HQ Lease Exit 152 — 496 —
Adjusted EBITDA $ 3,098 $ 10,923 $ (5,147 ) $ 67,413
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, in each case
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 and nine
months ended September 30, 2015 and 2016:
Three Months EndedSeptember 30, Nine
Months EndedSeptember 30, Gallons Delivered (in
millions) 2015 2016 2015
2016 CNG 61.1 66.7 168.5 191.7 RNG(1) 1.3 0.7 7.7 2.3 LNG
18.2 17.1 54.0 50.9
Total 80.6 84.5
230.2 244.9
(1) Represents RNG sold as non-vehicle fuel. RNG sold as
vehicle fuel, also known as Redeem™, 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 Saturday, December 3 by
dialing 1.844.512.2921 from the U.S., or 1.412.317.6671 from
international locations, and entering Replay Pin Number 13647189.
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 leading provider
of natural gas fuel for transportation in the United States and
Canada, based on the number of stations operated and the amount of
gasoline gallon equivalents delivered. 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 United States. 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, among other things: increased market adoption of natural
gas as a vehicle fuel, generally; sales of growing volumes of
natural gas vehicle fuel to more fleets in the Company’s key
customer markets; the strength of the Company’s key markets and
businesses; the strength of the Company’s position in the market;
the benefits of natural gas (including renewable natural gas)
relative to gasoline, diesel and other vehicle fuels, including
economic and environmental benefits; continued interest and
investment in natural gas as a vehicle fuel, including tax credits
and other government incentives promoting the use of cleaner fuels;
and the Company’s ability to successfully enter new markets and
more deeply penetrate its current key markets, build, sell and open
new natural gas fueling stations and add to its volume of gallons
delivered. Actual results 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
and natural gas and fossil and alternative fuels, including
gasoline, diesel, natural gas (including renewable natural gas),
renewable diesel, biodiesel, ethanol, electricity and hydrogen, as
well as vehicles 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 anticipated
growth in the market for natural gas fuel and otherwise compete
successfully in this market; 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 its debt repayment obligations
(whether at or prior to maturity); the availability of tax credits
and other government incentives for natural gas fueling and
vehicles, changes to federal, state or local fuel emission
standards or other environmental regulations applicable to natural
gas production, transportation or use; the Company’s ability to
manage and grow its RNG business, including its RNG production
facilities; the Company’s ability to recognize the anticipated
benefits of building CNG and LNG stations, including receiving
revenue from these stations equal or greater to their costs or at
all; construction, permitting and other factors that could cause
delays or other problems at station construction projects; the
Company’s ability to sustain or grow its compressor business and
manage risks and uncertainties related to its international
operations; the Company’s ability to hire and retain key personnel;
the Company’s ability to integrate any mergers, acquisitions and
investments; compliance with governmental regulations; and the
Company’s ability to effectively manage its LNG plants.
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. Additionally, the Company’s Annual
Report on Form 10-K filed on March 3, 2016 and its Quarterly Report
on Form 10-Q filed on November 3, 2016 with the Securities and
Exchange Commission (www.sec.gov), contain more information on
potential factors that may cause actual results to differ
materially from the forward-looking statements included in this
press release.
Clean Energy Fuels Corp. and
Subsidiaries Condensed Consolidated Balance
Sheets (In thousands, except share data,
Unaudited) December 31, 2015
September 30, 2016
Assets Current assets: Cash and cash equivalents $ 43,724 $
41,555 Restricted cash 4,240 4,629 Short-term investments 102,944
77,313 Accounts receivable, net of allowance for doubtful accounts
of $1,895 and $2,343 as of December 31, 2015 and September 30,
2016, respectively 73,645 72,949 Other receivables 60,667 28,564
Inventory 29,289 29,455 Prepaid expenses and other current assets
14,657 15,191 Total current assets 329,166 269,656
Land, property and equipment, net 516,324 487,922 Notes receivable
and other long-term assets, net 14,732 16,981 Investments in other
entities 5,695 2,644 Goodwill 91,967 93,848 Intangible assets, net
42,644 40,303 Total assets $ 1,000,528 $
911,354
Liabilities and Stockholders’ Equity Current
liabilities: Current portion of debt and capital lease obligations
$ 149,856 $ 4,851 Accounts payable 26,906 23,106 Accrued
liabilities 59,082 54,267 Deferred revenue 10,549 8,544
Total current liabilities 246,393 90,768 Long-term portion
of debt and capital lease obligations 352,294 282,769 Long-term
debt, related party 65,000 65,000 Other long-term liabilities 7,896
8,168 Total liabilities 671,583 446,705 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 92,382,717 shares and 134,235,058
shares at December 31, 2015 and September 30, 2016, respectively 9
13 Additional paid-in capital 915,199 1,055,211 Accumulated deficit
(591,683 ) (599,953 ) Accumulated other comprehensive loss (20,973
) (15,698 ) Total Clean Energy Fuels Corp. stockholders’ equity
302,552 439,573 Noncontrolling interest in subsidiary 26,393
25,076 Total stockholders’ equity 328,945 464,649
Total liabilities and stockholders’ equity $ 1,000,528
$ 911,354
Clean Energy Fuels Corp. and
Subsidiaries
Condensed Consolidated Statements of
Operations
(In thousands, except share and per
share data, Unaudited)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30, 2015
2016 2015 2016 Revenue: Product revenues $
77,355 $ 84,456 $ 222,396 $ 263,179 Service revenues 14,902
12,561 42,577 37,645 Total revenues 92,257
97,017 264,973 300,824 Operating expenses: Cost of sales (exclusive
of depreciation and amortization shown separately below): Product
cost of sales 59,313 55,481 174,079 170,746 Service cost of sales
7,410 6,377 21,163 19,095 Gain from change in fair value of
derivative warrants (502 ) (26 ) (1,085 ) (25 ) Selling, general
and administrative 27,800 25,914 87,027 76,769 Depreciation and
amortization 14,000 14,801 40,288 44,682
Total operating expenses 108,021 102,547
321,472 311,267 Operating loss (15,764 ) (5,530 )
(56,499 ) (10,443 ) Gain (loss) from extinguishment of debt, net —
(668 ) — 25,375 Interest expense, net (10,152 ) (6,283 ) (30,020 )
(23,264 ) Other income (expense), net 2,648 (109 ) 3,512 (6 ) Loss
from equity method investments (154 ) (13 ) (703 ) (20 ) Loss
before income taxes (23,422 ) (12,603 ) (83,710 ) (8,358 ) Income
tax benefit (expense) 241 (416 ) (1,353 ) (1,229 ) Net loss
(23,181 ) (13,019 ) (85,063 ) (9,587 ) Loss from noncontrolling
interest 62 391 835 1,317 Net loss
attributable to Clean Energy Fuels Corp. $ (23,119 ) $ (12,628 ) $
(84,228 ) $ (8,270 ) Loss per share attributable to Clean Energy
Fuels Corp.: Basic $ (0.25 ) $ (0.10 ) $ (0.92 ) $ (0.07 ) Diluted
$ (0.25 ) $ (0.10 ) $ (0.92 ) $ (0.07 ) Weighted-average common
shares outstanding: Basic 91,561,613 130,436,038
91,454,117 112,819,041 Diluted 91,561,613
130,436,038 91,454,117 112,819,041
Included in net loss are the following
amounts (in millions):
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2015 2016
2015 2016 Station Construction Revenues
$
11.5
$
13.7 $ 27.5
$
48.0 Station Construction Cost of Sales (10.3 ) (12.3 ) (24.0 )
(41.3 ) Stock-Based Compensation Expense, Net of $0 Tax (2.7 ) (2.1
) (8.0 ) (6.5 ) VETC — 6.7 — 19.6
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version on businesswire.com: http://www.businesswire.com/news/home/20161103005415/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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