Form: 8-K

Current report filing

April 3, 2017

Documents

Exhibit 99.1

Clean Energy Fuels Corp. and Subsidiaries

Summary of Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information should be read together with the consolidated balance sheet of Clean Energy Fuels Corp. (the “Registrant”) and its majority and wholly owned subsidiaries (the Registrant and such subsidiaries referred to collectively as the “Company”) as of December 31, 2016, the consolidated statement of operations, comprehensive loss, stockholders’ equity, and cash flows of the Company for the year ended December 31, 2016, and the notes thereto. The consolidated financial statements of the Company as of and for the year ended December 31, 2016 are included in the Annual Report on Form 10-K filed by the Registrant with the Securities and Exchange Commission (“SEC”) on March 7, 2017.

On March 31, 2017, the Registrant and its indirect subsidiary Clean Energy Renewable Fuels, LLC (“Renewables”) completed the disposition of certain assets and liabilities (collectively, the “Assets”) related to the Company’s renewable natural gas (“RNG”) business. The following unaudited pro forma consolidated balance sheet as of December 31, 2016 has been prepared to give effect to the disposition of the Assets as if it had occurred on December 31, 2016, and the following unaudited pro forma consolidated statement of operations for the year ended December 31, 2016 has been prepared to give effect to the disposition of the Assets as if it had occurred on January 1, 2016.

This unaudited pro forma financial information has been prepared for informational purposes only and is not necessarily indicative of future results or of actual results that would have been achieved if the disposition of the Assets had been consummated as of the dates indicated.

Clean Energy Fuels Corp. and Subsidiaries

Unaudited Pro Forma Consolidated Balance Sheet

December 31, 2016

 

(in thousands, except share data)

    As Reported
(a)		     Pro Forma
Adjustments 		    Pro Forma  

Assets

       

Current assets:

       

Cash and cash equivalents

    $ 36,119     $ 18,557 (b)    $ 54,676  

Restricted cash

      6,996       (5,165 )(c)      1,831  

Short-term investments

      73,718       —         73,718  

Accounts receivable, net of allowance for doubtful accounts of $1,063

      79,432       (11,601 )(c)     67,831  

Other receivables

      21,934       123,487 (b)      145,421  

Inventories

      29,544       (372 )(c)      29,172  

Prepaid expenses and other current assets

      14,021       (131 )(c)      13,890  
  

 

 

    

 

 

    

 

 

  

Total current assets

      261,764       124,775       386,539  

Land, property and equipment, net

      483,923       (42,273 )(c)      441,650  

Notes receivable and other long-term assets, net

      16,377       (1,860 )(c)      14,517  

Investments in other entities

      3,475       (833 )(d)      2,642  

Goodwill

      93,018       (27,011 )(e)      66,007  

Intangibles, net

      38,700       —         38,700  
  

 

 

    

 

 

    

 

 

  

Total assets

    $ 897,257     $ 52,798     $ 950,055  
  

 

 

    

 

 

    

 

 

  

Liabilities and Stockholders’ Equity

       

Current liabilities:

       

Current portion of long-term debt and capital lease obligations

      5,943       (1,417 )(c)      4,526  

Accounts payable

      23,637       (595 )(c)      23,042  

Accrued liabilities

      52,601       (1,544 )(c)      51,057  

Deferred revenue

      7,041       —         7,041  
  

 

 

    

 

 

    

 

 

  

Total current liabilities

      89,222       (3,556 )      85,666  

Long-term portion of debt and capital lease obligations

      241,433       (8,897 )(c)      232,536  

Long-term debt, related party

      65,000       —         65,000  

Other long-term liabilities

      7,915       (2,493 )(c)      5,422  
  

 

 

    

 

 

    

 

 

  

Total liabilities

      403,570       (14,946 )      388,624  
  

 

 

    

 

 

    

 

 

  

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 145,538,063 shares

      15         15  

Additional paid-in capital

      1,090,361       2,530 (f)      1,092,891  

Accumulated deficit

      (603,836 )     65,214 (g)      (538,622 )

Accumulated other comprehensive loss

      (17,675 )     —         (17,675 )
  

 

 

    

 

 

    

 

 

  

Total Clean Energy Fuels Corp. stockholders’ equity

      468,865       67,744       536,609  
  

 

 

    

 

 

    

 

 

  

Noncontrolling interest in subsidiary

      24,822       —         24,822  
  

 

 

    

 

 

    

 

 

  

Total stockholders’ equity

      493,687       67,744       561,431  
  

 

 

    

 

 

    

 

 

  

Total liabilities and stockholders’ equity

    $ 897,257     $ 52,798     $ 950,055  
  

 

 

    

 

 

    

 

 

  

Clean Energy Fuels Corp. and Subsidiaries

Unaudited Pro Forma Consolidated Statement of Operations

Year Ended December 31, 2016

 

(in thousands, except per share data)

    As Reported
(a) 		    Pro Forma
Adjustments		     Pro Forma  

Revenue:

       

Product revenue

    $ 351,038     $ (29,661 )(h)    $ 321,377  

Service revenue

      51,618       —         51,618  
  

 

 

    

 

 

    

 

 

  

Total revenue

      402,656       (29,661 )      372,995  
  

 

 

    

 

 

    

 

 

  

Operating expenses:

       

Cost of sales (exclusive of depreciation and amortization shown separately below):

       

Product cost of sales

      229,958       (6,854 )(h)      223,104  

Service cost of sales

      25,592       —       25,592  

Gain from change in fair value of derivative warrants

      (22 )      —       (22 ) 

Selling, general and administrative

      105,503       (3,621 )(i)      101,882  

Depreciation and amortization

      59,262       (3,251 )(i)      56,011  
  

 

 

    

 

 

    

 

 

  

Total operating expenses

      420,293       (13,726 )      406,567  
  

 

 

    

 

 

    

 

 

  

Operating loss

      (17,637 )     (15,935 )      (33,572 )

Interest expense

      (29,595 )     990 (i)      (28,605 )

Interest income

      827       —         827  

Other expense, net

      (306 )     —         (306 )

Loss from equity method investments

      (22 )     —         (22 )

Gain from extinguishment of debt, net

      34,348       —         34,348  
  

 

 

    

 

 

    

 

 

  

Loss before income taxes

      (12,385 )     (14,945 )      (27,330 )
  

 

 

    

 

 

    

 

 

  

Income tax expense

      (1,339 )     207 (i)      (1,132 )
  

 

 

    

 

 

    

 

 

  

Net loss

    $ (13,724 )   $ (14,738 )    $ (28,462 )

Loss attributable to noncontrolling interest

      1,571       —         1,571  
  

 

 

    

 

 

    

 

 

  

Net loss attributable to Clean Energy Fuels Corp.

      (12,153 )     (14,738 )      (26,891 )
  

 

 

    

 

 

    

 

 

  

Loss per share:

       

Basic and diluted

    $ (0.10 )     (0.13 )    $ (0.23 )

Weighted average common shares outstanding

       

Basic and diluted

      119,395,423         119,395,423  

 

The unaudited pro forma financial information as of and for the year ended December 31, 2016 includes the following adjustments (amounts in thousands):

(a) As reported in the Annual Report on Form 10-K filed by the Registrant with the SEC on March 7, 2017.

(b) Represents the receipt from BP Products North America, Inc. (“BP”) of consideration in exchange for the disposition of the Assets, totaling $30,000 in cash and a promissory note for $123,487, less estimated transaction costs paid or payable by the Company, cash payments to certain Renewables unit option holders, and cash and cash equivalents, totaling $11,443 that are attributable to the Assets.

(c) Represents the disposition of the Assets.

(d) Represents the disposition of Renewable’s investments in certain joint ventures formed to develop two new RNG production facilities, which are included in the Assets.

(e) Represents the removal of the relative fair value of goodwill attributable to the Assets.

(f) Represents the removal of additional paid-in capital related to (i) stock -based compensation expense attributable to former personnel of the Registrant that became employees of BP upon the disposition of the Assets, and (ii) the exchange of Renewables’ unit option awards for awards of fully vested shares of the Registrant’s common stock upon the disposition of the Assets.

(g) Represents the estimated gain on disposition of the Assets as if they were disposed on December 31, 2016. This gain is not reflected in the accompanying unaudited pro forma consolidated statement of operations because it is a nonrecurring item that is directly related to the transaction.

(h) Represents the removal of revenue and cost of sales related to the Assets, net of expected royalty revenue to be received after disposition of the Assets from the Company’s purchase of RNG from BP and sale of such RNG as Redeem™, the Company’s RNG vehicle fuel.

(i) Represents the removal of operating and tax expenses related to the Assets that were incurred during the year ended December 31, 2016.