Clean Energy Fuels Reports Revenue Rose 46% to $45.7 Million for the Third Quarter Ended September 30, 2010
Revenue Increased to $45.7 Million, up from $31.2 Million in the Prior-Year Period; Gallons Delivered Increased to 31.3 Million, up from 29.5 Million in the Prior-Year Period
SEAL BEACH, Calif.--(BUSINESS WIRE)-- Clean Energy Fuels Corp. (NASDAQ: CLNE) today announced operating results for the third quarter and nine months ended September 30, 2010.
Revenue for the quarter ended September 30, 2010 rose 46% to $45.7 million, from $31.2 million for the third quarter of 2009. For the nine months ended September 30, 2010, revenue totaled $128.7 million, which is an increase of 44% from $89.3 million a year ago.
For the third quarter of 2010, gasoline gallon equivalents (gallons) delivered, which includes CNG, LNG, biomethane and the gallons associated with providing operations & maintenance services, totaled 31.3 million gallons, up from 29.5 million gallons delivered in the same period a year ago. For the nine months of 2010, gallons delivered increased to 91.0 million gallons, up from 71.5 million gallons in the first nine months of 2009.
On a non-GAAP basis, loss per share for the third quarter of 2010 was $0.10. This compares with non-GAAP earnings per share for the same period a year ago of $0.01 per share. Non-GAAP loss per share was $0.23 for the first nine months of 2010, and was $0.06 per share for the first nine months of 2009. Non-GAAP loss per share is described below and reconciled to the GAAP measure net income (loss) attributable to Clean Energy.
Non-GAAP loss per share and Adjusted EBITDA were significantly impacted by the expiration of the Volumetric Excise Tax Credit (VETC) on December 31, 2009. When comparing Adjusted EBITDA and non-GAAP loss per share between periods, the VETC for the third quarter and first nine months of 2009 was $3.7 million and $11.8 million, respectively, but was $0 in the third quarter and first nine months of 2010 as the credit expired December 31, 2009.
Including the non-cash gain of $7.9 million related to the accounting treatment that requires Clean Energy to value its Series I warrants and mark them to market and the non-cash stock-based compensation charges of $3.3 million, the net loss for the third quarter of 2010 was $1.8 million, or $0.03 per share. This compares with a net loss of $18.5 million, or $0.31 per share, in the third quarter of 2009, which included $15.4 million of non-cash Series I warrant charges and $3.6 million of non-cash stock-based compensation charges.
For the nine-month period ended September 30, 2010, including a non-cash gain of $5.9 million related to the accounting treatment that requires Clean Energy to value its Series I warrants and mark them to market, non-cash stock-based compensation charges of $9.2 million, and an AMT refund of $1.3 million recorded in the first quarter of 2010, the net loss for the period was $16.3 million, or $0.27 per share. This compares with a net loss for the first nine months of 2009 of $31.3 million, or $0.59 per share, which included $17.8 million of non-cash Series I warrant charges and $10.6 million of non-cash stock-based compensation charges.
Adjusted EBITDA for the third quarter of 2010 was $(0.6) million, compared with $5.4 million in the third quarter of 2009. Adjusted EBITDA for the first nine months of 2010 was $1.8 million, compared with $9.9 million for the first nine months of 2009. Adjusted EBITDA is described below and reconciled to the GAAP measure net income (loss) attributable to Clean Energy.
Andrew J. Littlefair, Clean Energy's President and Chief Executive Officer, stated, "We continued to leverage our expertise in the field of natural gas fueling during the third quarter and subsequent weeks to maintain our leadership position. Noteworthy was our announced partnership with the largest retail operator of truck stops in North America, Pilot Flying J. This partnership affords us the ability to create a nationwide network of LNG Stations for heavy-duty trucks and to orchestrate the expansion of that network based on geographic demand trends. This is particularly important as we expand beyond our core markets of airports, refuse, and municipal transportation to include high volume regional trucking fleets, which represent a large part of our nation's fuel consumption on an annual basis.
"We also completed the acquisition of IMW Industries, Ltd during the third quarter and see this as a means to extend our reach globally, satisfy much of our internal compressor needs domestically, expand our product offerings to our U.S. customers, and to ultimately contribute significantly to our bottom line. We believe this acquisition will allow us to integrate platform and station design and be more competitive for our customers," said Mr. Littlefair.
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
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 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 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) as an indicator of operating performance or any other GAAP measure. Moreover, because not all companies use identical measures and calculations, the presentation of non-GAAP EPS or Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. These limitations are compensated for 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, plus stock-based compensation charges, net
of related tax benefits, plus or minus any mark-to-market losses or
gains on the Company's Series I warrants, plus the Company's alternative
minimum tax (AMT) carry-back refund it recorded in the first quarter of
2010, the total of which is divided by the Company's weighted average
shares outstanding on a diluted bases. The Company's management believes
that excluding non-cash charges related to stock-based compensation
provides useful information to investors because of varying available
valuation methodologies, the volatility of the expense (which depends on
market forces outside of management's control), and the subjectivity of
the assumptions and the variety of award types that a company can use
under the relevant accounting guidance may obscure trends in the
Company's core operating performance. Similarly, the Company's
management believes that excluding the non-cash, mark-to-market losses
or gains on the Company's Series I warrants is useful to investors
because the valuation of the Series I warrants is based on a number of
subjective assumptions, the amount of the loss or gain is derived from
market forces outside management's control, and it enables investors to
compare our performance with other companies that have different capital
structures. The Company excluded the AMT refund amount as it is not
expected to occur again in the foreseeable future.
The table below shows non-GAAP EPS and also reconciles these figures to the GAAP measure net income (loss) attributable to Clean Energy:
Three Months Ended Sept. 30, Nine Months Ended Sept. 30,
2009 2010 2009 2010
Net Income
(Loss)
Attributable $ (18,460,583 ) $ (1,829,874 ) $ (31,331,396 ) $ (16,301,398 )
to Clean
Energy
Stock-Based
Compensation, 3,551,992 3,259,927 10,572,136 9,221,647
Net of Tax
Benefits
Mark-to-Market
(Gain) Loss on 15,422,310 (7,866,162 ) 17,808,673 (5,876,855 )
Series I
Warrants
AMT Carry-Back -- -- -- (1,300,000 )
Refund
Adjusted Net 513,719 (6,436,109 ) (2,950,587 ) (14,256,606 )
Income (Loss)
Diluted
Weighted
Average Common 59,695,666 63,992,763 53,428,391 60,970,130
Shares
Outstanding
Non-GAAP
Earnings $ 0.01 $ (0.10 ) $ (0.06 ) $ (0.23 )
(Loss) Per
Share
Adjusted EBITDA
Adjusted EBITDA is defined as net income
(loss) attributable to Clean Energy, plus or minus income tax expense or
benefit, plus or minus interest expense or income, net, plus
depreciation and amortization expense, plus stock based compensation
charges, net of related tax benefits, plus or minus any mark-to-market
losses or gains on the Company's Series I warrants. 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 monitor
compliance with certain financial covenants in the Company's credit
agreement with PlainsCapital Bank and 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:
Three Months Ended Sept. 30, Nine Months Ended Sept. 30,
2009 2010 2009 2010
Net Income
(Loss)
Attributable $ (18,460,583 ) $ (1,829,874 ) $ (31,331,396 ) $ (16,301,398 )
to Clean
Energy
Income Tax
(Benefit) 68,352 290,121 209,202 (836,613 )
Expense
Interest
(Income) 276,110 70,126 368,186 (16,379 )
Expense, Net
Depreciation
and 4,516,513 5,507,032 12,256,603 15,567,523
Amortization
Stock-Based
Compensation, 3,551,992 3,259,927 10,572,136 9,221,647
Net of Tax
Benefits
Mark-to-Market
(Gain) Loss on 15,422,310 (7,866,162 ) 17,808,673 (5,876,855 )
Series I
Warrants
Adjusted $ 5,374,694 $ (568,830 ) $ 9,883,404 $ 1,757,925
EBITDA
Conference Call
The Company will host an investor conference
call today at 4:30 p.m. Eastern (1:30 p.m. Pacific). The live call can
be accessed from the U.S. by dialing 1-877-407-4018 from the U.S.
International callers can dial 1-201-689-8471. A telephone replay will
be available approximately two hours after the call concludes and will
be available through Dec. 8, 2010 by dialing 1-877-870-5176 from the
U.S., or 1-858-384-5517 from international locations, and entering PIN
number 358182. There also will be a simultaneous webcast available on
the Investor Relations section of the Company's web site at www.cleanenergyfuels.com,
which will be archived on the Company's web site for 30 days.
About Clean Energy Fuels
Clean Energy (Nasdaq: CLNE) is the
largest provider of natural gas fuel for transportation in North America
and a global leader in the expanding natural gas vehicle market. It has
operations in CNG and LNG vehicle fueling, construction and operation of
CNG and LNG fueling stations, biomethane production, vehicle conversion
and compressor technology.
Clean Energy fuels over 19,900 vehicles daily, including more than 4,950 transit buses, at 211 strategic locations across the United States with a broad customer base in the refuse, transit, trucking, shuttle, taxi, airport and municipal fleet markets. It owns and operates a landfill gas facility in Dallas, Texas, that produces renewable methane gas, or biomethane, for delivery in the nation's gas pipeline network. It owns and operates LNG production plants in Willis, Texas and Boron, Calif. with combined capacity of 260,000 LNG gallons per day (designed to expand to 340,000 LNG gallons per day as demand increases) and 58 cryogenic trailers for delivery. BAF Technologies, Inc., a wholly owned subsidiary, is a leading provider of natural gas vehicle systems and conversions for taxis, limousines, vans, pick-up trucks and shuttle buses. IMW Industries, Ltd., a wholly owned subsidiary based in Canada, is a leading supplier of compressed natural gas equipment for vehicle fueling and industrial applications with more than 1,000 installations in over 20 countries. (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 the number of stations and networks of stations to
be built for natural gas fuel use, the anticipated benefits of the
Company's acquisition of IMW and the impact that it will have on the
Company, and future growth and sales opportunities in the regional
trucking market and within the Company's other market sectors. 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, changes in the prices of natural
gas relative to gasoline and diesel, the U.S. government's failure to
renew the Volumetric Excise Tax Credit for CNG and LNG, the acceptance
of natural gas vehicles in fleet markets, the availability of natural
gas vehicles, the progress of the clean air plans at the Ports of Los
Angeles and Long Beach, relaxation or waiver of fuel emission standards,
the inability of fleets to access capital to purchase natural gas
vehicles, the Company's ability to successfully integrate IMW, the
Company's success in obtaining government grants or subsidies for
alternative fuel operators, the unpredictability of the legislative
process, including passing any legislation that provides incentives for
the purchase of natural gas vehicles or the use of natural gas as a
vehicle fuel, construction and permitting delays at station construction
projects and the development of competing technologies that are
perceived to be cleaner and more cost effective than natural gas. 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-Q filed on November 8, 2010 with the SEC and its Form
10-K filed on March 10, 2010 with the SEC (www.sec.gov)
contain risk factors which may cause actual results to differ materially
from the forward-looking statements contained in this press release.
Clean Energy Fuels Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
December 31, 2009 and September 30, 2010
Unaudited
December 31, September 30,
2009 2010
Assets
Current assets:
Cash and cash equivalents $ 67,086,965 $ 32,178,575
Restricted cash 2,500,000 2,500,000
Accounts receivable, net of allowance for
doubtful accounts of $898,423 and $576,882 16,339,730 32,339,929
as of December 31, 2009 and September 30,
2010, respectively
Other receivables 8,862,213 11,061,428
Inventory, net 6,217,133 18,044,725
Prepaid expenses and other current assets 7,393,892 11,265,530
Total current assets 108,399,933 107,390,187
Land, property and equipment, net 172,182,436 199,968,904
Capital lease receivables 1,311,054 1,107,041
Notes receivable and other long-term assets 6,875,364 10,660,592
Investments in other entities 10,536,405 11,171,714
Goodwill 21,572,020 65,821,347
Intangible assets, net of accumulated 34,921,361 112,926,564
amortization
Total assets $ 355,798,573 $ 509,046,349
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt and $ 2,439,263 $ 29,328,727
capital lease obligations
Accounts payable 14,775,406 34,627,089
Accrued liabilities 9,695,443 20,390,637
Deferred revenue 2,691,007 12,006,967
Total current liabilities 29,601,119 96,353,420
Long-term debt and capital lease 9,781,425 33,175,323
obligations, less current portion
Other long-term liabilities 36,039,864 38,203,504
Total liabilities 75,422,408 167,732,247
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
149,000,000 shares; issued and outstanding
59,840,151 shares and 64,931,101 shares at 5,984 6,493
December 31, 2009 and September 30, 2010,
respectively
Additional paid-in capital 424,580,895 506,775,337
Accumulated deficit (149,410,111 ) (165,711,509 )
Accumulated other comprehensive income 2,012,573 (2,915,569 )
(loss)
Total stockholders' equity of Clean Energy 277,189,341 338,154,752
Fuels Corp.
Noncontrolling interest in subsidiary 3,186,824 3,159,350
Total equity 280,376,165 341,314,102
Total liabilities and equity $ 355,798,573 $ 509,046,349
Clean Energy Fuels Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three Months and Nine Months Ended
September 30, 2009 and 2010
Unaudited
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2010 2009 2010
Revenue:
Product $ 26,290,638 $ 40,974,478 $ 79,500,495 $ 114,680,989
revenues
Service 4,891,188 4,679,229 9,799,506 13,996,136
revenues
Total revenues 31,181,826 45,653,707 89,300,001 128,677,125
Operating
expenses:
Cost of sales:
Product cost 16,369,247 31,189,766 52,785,705 85,378,128
of sales
Service cost 2,388,458 2,319,064 3,820,740 6,305,141
of sales
Selling,
general and 10,491,987 15,854,920 33,649,427 44,382,202
administrative
Depreciation
and 4,516,513 5,507,032 12,256,603 15,567,523
amortization
Derivative
(gain) loss on
Series I 15,422,310 (7,866,162 ) 17,808,673 (5,876,855 )
warrant
valuation
Total
operating 49,188,515 47,004,620 120,321,148 145,756,139
expenses
Operating loss (18,006,689 ) (1,350,913 ) (31,021,147 ) (17,079,014 )
Interest
income (276,110 ) (70,126 ) (368,186 ) 16,379
(expense), net
Other expense, (107,468 ) (308,346 ) (293,995 ) (303,769 )
net
Income from
equity method 77,744 95,509 130,162 200,919
investments
Loss before (18,312,523 ) (1,633,876 ) (31,553,166 ) (17,165,485 )
income taxes
Income tax
benefit (68,352 ) (290,121 ) (209,202 ) 836,613
(expense)
Net loss (18,380,875 ) (1,923,997 ) (31,762,368 ) (16,328,872 )
Loss (income)
attributable
to (79,708 ) 94,123 430,972 27,474
noncontrolling
interest
Net loss
attributable
to Clean $ (18,460,583 ) $ (1,829,874 ) $ (31,331,396 ) $ (16,301,398 )
Energy Fuels
Corp.
Loss per share
attributable
to Clean
Energy Fuels
Corp.
Basic $ (0.31 ) $ (0.03 ) $ (0.59 ) $ (0.27 )
Diluted $ (0.31 ) $ (0.03 ) $ (0.59 ) $ (0.27 )
Weighted
average common
shares
outstanding
Basic 59,695,666 63,992,763 53,428,391 60,970,130
Diluted 59,695,666 63,992,763 53,428,391 60,970,130
Included in net loss are the following amounts (in millions):
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2010 2009 2010
Construction -- 1.6 5.2 4.1
Revenues
Construction -- (1.6) (4.6) (3.8)
Cost of Sales
Fuel Tax 3.7 -- 11.8 --
Credits
Stock Option
Expense, Net (3.6) (3.3) (10.6) (9.2)
of Tax
Benefits
Source: Clean Energy Fuels Corp.
Released November 8, 2010