Clean Energy Fuels Corp. (NASDAQ: CLNE) ("Clean Energy" or the
"Company") today announced operating results for the fourth quarter
and year ended December 31, 2016.
The Company delivered 84.1 million gallons in the fourth quarter
of 2016, a 7.4% increase from 78.3 million gallons in the fourth
quarter of 2015. For the year ended December 31, 2016 the Company
delivered 329.0 million gallons, a 6.6% increase from 308.5 million
gallons delivered for the year ended December 31, 2015.
Revenue for the fourth quarter of 2016 was $101.8 million, a
14.7% decrease from $119.3 million of revenue for the fourth
quarter of 2015. This decrease was due in large part to the
recognition of a full year of alternative fuel tax credit ("VETC")
revenue of $31.0 million in the fourth quarter of 2015, while only
one quarter of VETC revenue of $7.0 million was recognized in the
fourth quarter of 2016. Revenue from gallons delivered ("volume
-related revenue") and revenue from station construction increased
in the fourth quarter of 2016 compared to the same period in 2015
due to volume growth, higher effective prices and the construction
of new and expansions of existing natural gas fueling stations by
our customers. Compressor sales declined in the fourth quarter on a
year -over -year basis due to continued low global demand.
Revenue for 2016 was $402.7 million, a 4.8% increase from $384.3
million for 2015. Volume -related revenue and revenue from station
construction sales increased in 2016 compared to 2015 due to the
factors described above. These increases were partially offset by a
decrease in revenue from compressor sales. Additionally, VETC
revenue declined for the year primarily due to a change in the
method of calculating VETC that went into effect at the beginning
of 2016.
Andrew J. Littlefair, Clean Energy’s President and Chief
Executive Officer, stated "The positive momentum continued in 2016
for Clean Energy with volume growth, increased station builds,
improved Adjusted EBITDA, and lowered debt balances. We continue to
leverage our natural gas fueling infrastructure by increasing
volumes while lowering capital expenditures and expenses. Clean
Energy remains the market leader for the increasing number of
fleets choosing to take advantage of natural gas and renewable
natural gas as an immediate, affordable and environmentally
friendly alternative vehicle fuel solution."
On a GAAP basis, net loss for the fourth quarter of 2016 was
$(3.9) million or $(0.03) per share, compared to a net loss for the
fourth quarter of 2015 of $(50.0) million, or $(0.54) per share.
The fourth quarter of 2016 included a net gain of $9.0 million from
the repurchase of a portion of the Company's debt ("debt
reduction"). The fourth quarter of 2015 included a full year of
VETC revenue of $31.0 million and a charge of $54.9 million related
to the deferred debt issuance costs associated with the Company’s
termination of its credit agreement with General Electric Capital
Corporation (the "debt issuance costs").
On a GAAP basis, net loss for 2016 was $(12.2) million, or
$(0.10) per share, compared to a net loss for 2015 of $(134.2)
million, or $(1.47) per share. The net loss in 2016 included a net
gain of $34.3 million from the debt reductions. The net loss for
2015 included the $54.9 million charge for the debt issuance
costs.
Non-GAAP loss per share and Adjusted EBITDA for the fourth
quarter of 2016 was $(0.02) and $17.9 million, respectively, which
included a net gain of $9.0 million from the debt reduction.
Non-GAAP income per share and Adjusted EBITDA for the fourth
quarter of 2015 was $0.08 and $32.9 million, respectively, which
included a full year of VETC revenue of $31.0 million. Non-GAAP
loss per share and Adjusted EBITDA for 2016 was $(0.03) and $85.3
million, respectively, which included a net gain of $34.3 million
from the debt reduction. Non-GAAP loss per share and Adjusted
EBITDA for 2015 was $(0.75) and $27.8 million, respectively.
Non-GAAP income (loss) per share and Adjusted EBITDA are described
below and reconciled to the GAAP measure net loss attributable to
Clean Energy Fuels Corp.
Subsequent to December 31, 2016, the Company paid $21.75 million
in cash to repurchase $25.0 million in principal amount, plus
accrued interest thereon, of its 7.5% Notes due to a related party
in July 2018.
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 income (loss) 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 believes that these measures provide meaningful supplemental
information regarding the Company’s performance for the following
reasons: (1) they allow for greater transparency with respect
to key metrics used by management, as management uses these
measures to assess the Company’s operating performance, for
financial and operational decision-making, and as a means to
evaluate period-to-period comparisons on a consistent basis;
(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 significant
non-recurring 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 or loss per share or any other GAAP measure as an indicator of
operating performance. Moreover, because not all companies use
identical measures and calculations, the presentation of non-GAAP
EPS and Adjusted EBITDA may not be comparable to other similarly
titled measures used by other companies.
Non-GAAP EPS
Non-GAAP EPS is defined as net loss attributable to Clean Energy
Fuels Corp. on a GAAP basis, plus stock-based compensation expense,
plus or minus any loss (gain) from changes in the fair value of
derivative warrants, plus the debt issuance costs and plus 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 debt issuance
costs and 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 non-GAAP EPS for the periods presented and
also reconciles these figures to the GAAP measure net loss
attributable to Clean Energy Fuels Corp.:
Three Months Ended December
31,
Year Ended December 31,
(in thousands, except per-share amounts) 2015
2016 2015 2016 Net Loss
Attributable to Clean Energy Fuels Corp. $ (50,014 ) $
(3,883 ) $ (134,242 ) $ (12,153 ) Stock -Based Compensation,
Net of $0 Tax 2,770 1,559 10,779 8,092 Loss (Gain) From Change in
Fair Value of Derivative Warrants (329 ) 3 (1,414 ) (22 ) Debt
Issuance Costs 54,925 — 54,925 — HQ Lease Exit 338 —
835 — Adjusted Net Income (Loss) $ 7,690 $ (2,321 ) $
(69,117 ) $ (4,083 ) Weighted -Average Common Shares Outstanding
Diluted 92,063,032 138,981,606 91,607,578 119,395,423
GAAP Loss
Per Share Attributable to Clean Energy Fuels Corp. $ (0.54 ) $
(0.03 ) $ (1.47 ) $ (0.10 )
Non-GAAP Income (Loss) Per Share
$ 0.08 $ (0.02 ) $ (0.75 ) $ (0.03 )
Adjusted EBITDA
Adjusted EBITDA is defined as net loss attributable to Clean
Energy Fuels Corp. on a GAAP basis, plus or minus income tax
expense (benefit), plus interest expense, minus interest (income),
plus depreciation and amortization expense, plus stock-based
compensation expense, plus or minus any loss (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 for the periods presented
and also reconciles these figures to the GAAP measure net loss
attributable to Clean Energy Fuels Corp.:
Three Months Ended December
31,
Year Ended December 31,
(in thousands) 2015 2016
2015 2016 Net Loss Attributable to Clean
Energy Fuels Corp. $ (50,014 ) $ (3,883 ) $ (134,242 )
$ (12,153 ) Income Tax Expense 261 110 1,614 1,339 Interest
Expense (1) 65,230 5,752 95,813 29,595 Interest Income (280 ) (248
) (843 ) (827 ) Depreciation and Amortization 14,931 14,580 55,219
59,262 Stock -Based Compensation, Net of $0 Tax 2,770 1,559 10,779
8,092 Loss (Gain) From Change in Fair Value of Derivative Warrants
(329 ) 3 (1,414 ) (22 ) HQ Lease Exit 338 — 835
—
Adjusted EBITDA $ 32,907 $ 17,873 $ 27,761 $
85,286
(1) The amounts for the three months and year ended
December 31, 2015 include the debt issuance costs.
Definition of "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 in the applicable period, plus the
Company's proportionate share of gallons delivered by joint
ventures in the applicable period.
The table below shows gallons delivered for the three months and
years ended December 31, 2016 and 2015:
Three Months Ended December
31,
Year Ended December 31,
Gallons Delivered (in millions) 2015
2016 2015 2016 CNG 60.7 67.5 229.2
259.2 RNG(1) 1.1 0.7 8.8 3.0 LNG 16.5 15.9 70.5
66.8
Total 78.3 84.1 308.5 329.0
(1) Represents RNG sold as
non-vehicle fuel. RNG sold as vehicle fuel, also known as Redeem™,
is included in CNG and LNG.
Sources of Revenue
The following table represents our sources
of revenue for the three months and years ended December 31,
2016 and 2015:
Three Months EndedDecember
31,
Year EndedDecember 31,
Revenue (in Millions) 2015 2016
2015 2016 Volume -Related $ 64.8 $ 73.0 $ 260.6 $
283.9 Compressor Sales 13.1 4.9 54.5 27.3 Station Construction
Sales 10.3 16.9 37.8 64.9 VETC 31.0 7.0 31.0 26.6 Other 0.1
— 0.4 — Total $ 119.3 $ 101.8 $ 384.3 $ 402.7
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 2 by
dialing 1.877.870.5176 from the U.S., or 1.858.384.5517 from
international locations, and entering Replay Pin Number 13655264.
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 as an alternative fuel for vehicle fleets 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 vehicle 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; the strength of the
Company’s natural gas fueling infrastructure and its impact on the
Company’s position in the market; the benefits of natural gas
(including renewable natural gas) as an alternative vehicle fuel,
including economic and environmental benefits; continued interest
and investment in natural gas as a vehicle fuel; and the Company’s
levels of capital expenditures and expenses. 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, gasoline, diesel, natural gas and other
alternative fuels, as well as heavy-duty trucks and other 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 market for
alternative vehicle fuels, if and when it develops and expands, and
otherwise compete successfully in this market; 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; future availability of
capital, including equity or debt financing, as needed to fund the
growth of the Company’s business and repayment of its debt
obligations (whether at or prior to maturity); the availability of
tax credits and other government programs or incentives that
promote natural gas or other alternatives as a vehicle fuel;
changes to federal, state or local fuel emission standards or other
environmental regulations applicable to natural gas production,
transportation or use, particularly in light of the uncertainties
of the current U.S. political climate; the Company’s ability to
manage and grow its RNG business, including its RNG production
facilities; 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 the global scope of
this business; the Company’s ability to realize the intended
benefits of any mergers, acquisitions, divestitures, investments or
other strategic transactions or relationships; and compliance with
governmental regulations. 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 7, 2017 with the Securities and Exchange Commission
(www.sec.gov), contains additional information on these and other
risk factors that may cause actual results to differ materially
from the forward-looking statements contained in this press
release.
Clean Energy Fuels Corp. and
Subsidiaries
Consolidated Balance Sheets
(In thousands, except share
data)
December 31, 2015 December 31, 2016
Assets Current assets: Cash and cash equivalents
$
43,724 $ 36,119 Restricted cash 4,240 6,996 Short-term investments
102,944 73,718 Accounts receivable, net of allowance for doubtful
accounts of $1,895 and $1,063 as of December 31, 2015 and 2016,
respectively 73,645 79,432 Other receivables 60,667 21,934
Inventories 29,289 29,544 Prepaid expenses and other current assets
14,657 14,021 Total current assets 329,166 261,764
Land, property and equipment, net 516,324 483,923 Notes receivable
and other long-term assets, net 14,732 16,377 Investments in other
entities 5,695 3,475 Goodwill 91,967 93,018 Intangible assets, net
42,644 38,700 Total assets $ 1,000,528 $
897,257
Liabilities and Stockholders’ Equity Current
liabilities: Current portion of long-term debt and capital lease
obligations 149,856 5,943 Accounts payable 26,906 23,637 Accrued
liabilities 59,082 52,601 Deferred revenue 10,549 7,041
Total current liabilities 246,393 89,222 Long-term portion
of debt and capital lease obligations 352,294 241,433 Long-term
debt, related party 65,000 65,000 Other long-term liabilities 7,896
7,915 Total liabilities 671,583 403,570 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 145,538,063
shares as of December 31, 2015 and 2016, respectively 9 15
Additional paid-in capital 915,199 1,090,361 Accumulated deficit
(591,683 ) (603,836 ) Accumulated other comprehensive loss (20,973
) (17,675 ) Total Clean Energy Fuels Corp. stockholders’ equity
302,552 468,865 Noncontrolling interest in subsidiary 26,393
24,822 Total stockholders’ equity 328,945 493,687
Total liabilities and stockholders’ equity $ 1,000,528
$ 897,257
Clean Energy Fuels Corp. and
Subsidiaries
Consolidated Statements of
Operations
(In thousands, except share and per
share data)
Three Months EndedDecember 31, Year
EndedDecember 31, 2015 2016
2015 2016 Revenue: Product revenue $ 106,772 $
87,859
$
329,168 $ 351,038 Service revenue 12,575 13,973
55,152 51,618 Total revenue 119,347 101,832 384,320
402,656 Operating expenses: Cost of sales (exclusive of
depreciation and amortization shown separately below): Product cost
of sales 56,542 59,212 230,621 229,958 Service cost of sales 6,701
6,497 27,864 25,592 Loss (gain) from change in fair value of
derivative warrants (329 ) 3 (1,414 ) (22 ) Selling, general and
administrative 26,626 28,734 113,653 105,503 Depreciation and
amortization 14,931 14,580 55,219 59,262
Total operating expenses 104,471 109,026
425,943 420,293
Operating loss
14,876 (7,194 ) (41,623 ) (17,637 ) Interest expense (65,230 )
(5,752 ) (95,813 ) (29,595 ) Interest income 280 248 843 827 Other
income (expense), net 52 (300 ) 2,627 (306 ) Loss from equity
method investments (112 ) (2 ) (815 ) (22 ) Gain from
extinguishment of debt, net — 8,973 — 34,348 Gain from sale of
subsidiary — — 937 — Loss before income
taxes (50,134 ) (4,027 ) (133,844 ) (12,385 ) Income tax expense
(261 ) (110 ) (1,614 ) (1,339 ) Net loss (50,395 ) (4,137 )
(135,458 ) (13,724 ) Loss attributable to noncontrolling interest
381 254 1,216 1,571 Net loss
attributable to Clean Energy Fuels Corp. $ (50,014 ) $ (3,883 ) $
(134,242 ) $ (12,153 ) Loss per share: Basic and diluted $ (0.54 )
$ (0.03 ) $ (1.47 ) $ (0.10 ) Weighted-average common shares
outstanding: Basic and diluted 92,063,032 138,981,606
91,607,578 119,395,423
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version on businesswire.com: http://www.businesswire.com/news/home/20170307006167/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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