Clean Energy Fuels Reports Third Quarter Revenue Rose 58% to $72.1 Million
Revenue for the third quarter ended
Gasoline gallon equivalents (gallons) delivered for the third quarter of 2011, (which includes CNG, LNG, biomethane and the gallons associated with providing operations and maintenance services), totaled 40.9 million, up from 31.3 million gallons delivered in the same period a year ago. For the first nine months of 2011, gallons delivered increased to 115.6 million, from 91.0 million gallons in the first nine months of 2010.
Adjusted EBITDA for the third quarter of 2011 was
On a non-GAAP basis, loss per share for the third quarter of 2011 was
When comparing periods, the volumetric excise tax credit (VETC) revenue
for the third quarter and the first nine months of 2011 was
The net loss for the third quarter of 2011 was
The net loss for the nine-month period ended
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. 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-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) attributed 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 or minus the foreign currency losses or gains on the Company's notes issued as part of its acquisition of IMW, 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's management believes that excluding the foreign currency gains and losses on the notes it issued to purchase IMW provides useful information as the amounts are based on market conditions outside management's control and the amounts relate to financing the acquisition of the business as opposed to the core operations of the Company. 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:
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Three Months Ended |
Nine Months Ended |
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| (in 000s, except per-share amounts) | 2010 | 2011 | 2010 | 2011 | |||||||||||||||||
| Net Income (Loss) Attributable to Clean Energy | $ | (1,830 | ) | $ | (11,354 | ) | $ | (16,302 | ) | $ | (26,726 | ) | |||||||||
| Stock Based Compensation, Net of Tax Benefits | 3,260 | 3,161 | 9,222 | 10,093 | |||||||||||||||||
| Mark-to-Market (Gain) Loss on Series I Warrants | (7,866 | ) | (1,524 | ) | (5,876 | ) | (3,059 | ) | |||||||||||||
| Foreign Currency (Gain) Loss on IMW Purchase Notes |
— |
|
1,699 | — | 1,238 | ||||||||||||||||
| AMT Carry-Back Refund |
— |
— |
|
(1,300 | ) | — | |||||||||||||||
| Adjusted Net Income (Loss) | (6,436 | ) | (8,018 | ) | (14,256 | ) | (18,454 | ) | |||||||||||||
| Diluted Weighted Average Common Shares Outstanding | 63,993 | 70,364 | 60,970 | 70,255 | |||||||||||||||||
| Non-GAAP Earnings (Loss) Per Share | $ | (0.10 | ) | $ | (0.11 | ) | $ | (0.23 | ) | $ | (0.26 | ) | |||||||||
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, and plus or minus the foreign currency losses or gains on the Company's notes issued as part of its acquisition of IMW. 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:
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Three Months Ended |
Nine Months Ended |
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| (in 000s) | 2010 | 2011 | 2010 | 2011 | |||||||||||||||||
| Net Income (Loss) Attributable to Clean Energy | $ | (1,830 | ) | $ | (11,354 | ) | $ | (16,302 | ) | $ | (26,726 | ) | |||||||||
| Income Tax (Benefit) Expense | 290 | (960 | ) | (836 | ) | (2,872 | ) | ||||||||||||||
| Interest (Income) Expense, Net | 70 | 3,194 | (17 | ) | 5,520 | ||||||||||||||||
| Depreciation and Amortization | 5,507 | 7,554 | 15,568 | 22,396 | |||||||||||||||||
| Foreign Currency (Gain) Loss on IMW Purchase Notes | — | 1,699 | — | 1,238 | |||||||||||||||||
| Stock Based Compensation, Net of Tax Benefits | 3,260 | 3,161 | 9,222 | 10,093 | |||||||||||||||||
| Mark-to-Market (Gain) Loss on Series I Warrants | (7,866 | ) | (1,524 | ) | (5,876 | ) | (3,059 | ) | |||||||||||||
| Adjusted EBITDA | $ | (569 | ) | $ | 1,770 | $ | 1,759 | $ | 6,590 | ||||||||||||
Conference Call
The Company will host an investor conference call today at
About
Clean Energy is the largest provider of natural gas fuel for
transportation in
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 number of
vehicle projects in process, progression of the Company's business plan
in the next 18 months, the number of station completions, construction
of America's natural gas highway, and future growth and sales
opportunities in all of the Company's markets, which include refuse,
airport, transit and regional and national trucking. 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
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Condensed Consolidated Balance Sheets |
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(In thousands, except share data) |
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December 31, 2010 |
September 30, 2011 |
||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 55,194 | $ | 159,003 | |||||||
| Restricted cash | 2,500 | 5,684 | |||||||||
|
Accounts receivable, net of allowance for doubtful accounts of
|
45,645 | 39,710 | |||||||||
| Other receivables | 27,280 | 18,989 | |||||||||
| Inventory, net | 20,483 | 32,374 | |||||||||
| Prepaid expenses and other current assets | 10,959 | 12,345 | |||||||||
| Total current assets | 162,061 | 268,105 | |||||||||
| Land, property and equipment, net | 211,643 | 246,534 | |||||||||
| Restricted cash | — | 67,756 | |||||||||
| Notes receivable and other long-term assets | 15,059 | 16,072 | |||||||||
| Investments in other entities | 10,748 | 16,296 | |||||||||
| Goodwill | 71,814 | 72,069 | |||||||||
| Intangible assets, net | 112,174 | 104,771 | |||||||||
| Total assets | $ | 583,499 | $ | 791,603 | |||||||
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Liabilities and Stockholders' Equity |
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| Current liabilities: | |||||||||||
| Current portion of long-term debt and capital lease obligations | $ | 22,712 | $ | 22,452 | |||||||
| Accounts payable | 28,635 | 22,945 | |||||||||
| Accrued liabilities | 28,137 | 29,226 | |||||||||
| Deferred revenue | 17,507 | 18,559 | |||||||||
| Total current liabilities | 96,991 | 93,182 | |||||||||
| Long-term debt and capital lease obligations, less current portion | 41,704 | 265,718 | |||||||||
| Other long-term liabilities | 28,588 | 20,127 | |||||||||
| Total liabilities | 167,283 | 379,027 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders' equity: | |||||||||||
|
Preferred stock, |
— | — | |||||||||
|
Common stock, |
7 | 7 | |||||||||
| Additional paid-in capital | 569,202 | 587,992 | |||||||||
| Accumulated deficit | (151,926 | ) | (178,651 | ) | |||||||
| Accumulated other comprehensive loss | (3,996 | ) | (202 | ) | |||||||
|
Total |
413,287 | 409,146 | |||||||||
| Noncontrolling interest in subsidiary | 2,929 | 3,430 | |||||||||
| Total stockholders' equity | 416,216 | 412,576 | |||||||||
| Total liabilities and stockholders' equity | $ | 583,499 | $ | 791,603 | |||||||
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Condensed Consolidated Statements of Operations |
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For the Three Months and Nine Months Ended |
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(In thousands, except share data) |
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Three Months Ended |
Nine Months Ended |
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| 2010 | 2011 | 2010 | 2011 | ||||||||||||||||
| Revenue: | |||||||||||||||||||
| Product revenues | $ | 40,975 | $ | 64,237 | $ | 114,682 | $ | 184,292 | |||||||||||
| Service revenues | 4,679 | 7,845 | 13,996 | 22,244 | |||||||||||||||
| Total revenues | 45,654 | 72,082 | 128,678 | 206,536 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Cost of sales: | |||||||||||||||||||
| Product cost of sales | 31,190 | 48,853 | 85,378 | 139,591 | |||||||||||||||
| Service cost of sales | 2,319 | 3,901 | 6,305 | 10,591 | |||||||||||||||
| Derivative (gains): | |||||||||||||||||||
| Series I warrant valuation | (7,866 | ) | (1,524 | ) | (5,876 | ) | (3,059 | ) | |||||||||||
| Selling, general and administrative | 15,855 | 20,140 | 44,382 | 59,823 | |||||||||||||||
| Depreciation and amortization | 5,507 | 7,554 | 15,568 | 22,396 | |||||||||||||||
| Total operating expenses | 47,005 | 78,924 | 145,757 | 229,342 | |||||||||||||||
| Operating loss | (1,351 | ) | (6,842 | ) | (17,079 | ) | (22,806 |
) |
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| Interest income (expense), net | (70 | ) | (3,194 | ) | 17 | (5,520 |
) |
||||||||||||
| Other expense | (309 | ) | (2,450 | ) | (305 | ) | (1,662 |
) |
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| Income from equity method investments | 96 | 99 | 202 | 474 | |||||||||||||||
| Loss before income taxes | (1,634 | ) | (12,387 | ) | (17,165 | ) | (29,514 |
) |
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| Income tax (expense) benefit | (290 | ) | 960 | 836 | 2,872 | ||||||||||||||
| Net loss | (1,924 | ) | (11,427 | ) | (16,329 | ) | (26,642 |
) |
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| Loss (income) of noncontrolling interest | 94 | 73 | 27 | (84 |
) |
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Net loss attributable to |
$ | (1,830 | ) | $ | (11,354 | ) | $ | (16,302 | ) | $ | (26,726 |
) |
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Loss per share attributable to |
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| Basic | $ | (0.03 | ) | $ | (0.16 | ) | $ | (0.27 | ) | $ | (0.38 |
) |
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| Diluted | $ | (0.03 | ) | $ | (0.16 | ) | $ | (0.27 | ) | $ | (0.38 |
) |
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| Weighted average common shares outstanding | |||||||||||||||||||
| Basic | 63,992,763 | 70,364,202 | 60,970,130 | 70,255,311 | |||||||||||||||
| Diluted | 63,992,763 | 70,364,202 | 60,970,130 | 70,255,311 | |||||||||||||||
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Included in net loss are the following amounts (in millions): |
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Three Months Ended |
Nine Months Ended |
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| 2010 | 2011 | 2010 | 2011 | |||||||||||||
| Construction Revenues | 1.6 | 8.5 | 4.1 | 20.1 | ||||||||||||
| Construction Cost of Sales | (1.6 | ) | (7.6 | ) | (3.8 | ) | (17.3 | ) | ||||||||
| Fuel Tax Credits | — | 4.5 | — | 13.4 | ||||||||||||
| Stock Option Expense, Net of Tax Benefits | (3.3 | ) | (3.2 | ) | (9.2 | ) | (10.1 | ) | ||||||||
For
ina@mcguinnessir.com
Source:
News Provided by Acquire Media