Clean Energy Reports Revenue Rose 67% During The First Quarter of 2011
Revenue for the first quarter ended
Gasoline gallon equivalents (gallons) delivered for the first quarter of 2011, which includes compressed natural gas (CNG), liquefied natural gas (LNG), biomethane and the gallons associated with providing operations & maintenance services, totaled 35.5 million gallons, up from 28.6 million gallons delivered in the same period a year ago.
Adjusted EBITDA for the first quarter of 2011 was
Non-GAAP loss per share for the first quarter of 2011 was
Net loss for the first quarter of 2011 was
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) 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 the Company's AMT carry-back refund it recorded in the first quarter of 2010, and plus or minus the foreign currency losses or gains on the Company's purchase notes issued as part of the acquisition of IMW, 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 to investors as the amounts are based on market conditions outside of 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:
| Three Months Ended March 31, | ||||||||
| (in 000s, except share information) | 2010 | 2011 | ||||||
| Net Income (Loss) Attributable to Clean Energy | $ | (24,367 | ) | $ | (9,753 | ) | ||
| Stock-Based Compensation, Net of Tax Benefits | 3,040 | 3,377 | ||||||
| Mark-to-Market (Gain) Loss on Series I Warrants | 18,605 | 3,300 | ||||||
| AMT Carry-Back Refund | (1,300 | ) | — | |||||
| Foreign Currency (Gain) Loss on IMW Purchase Notes | — | (341 | ) | |||||
| Adjusted Net Income (Loss) | (4,022 | ) | (3,417 | ) | ||||
| Diluted Weighted Average Common Shares Outstanding | 60,156,352 | 70,096,000 | ||||||
| Non-GAAP Earnings (Loss) Per Share | $ | (0.07 | ) | $ | (0.05 | ) | ||
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 the 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
monitor compliance with certain financial covenants in the Company's
credit agreement with
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 March 31, | ||||||||
| (in 000s) | 2010 | 2011 | ||||||
| Net Income (Loss) Attributable to Clean Energy | $ | (24,367 | ) | $ | (9,753 | ) | ||
| Income Tax (Benefit) Expense | (1,203 | ) | (735 | ) | ||||
| Interest (Income) Expense, Net | (109 | ) | 820 | |||||
| Depreciation and Amortization | 4,991 | 7,210 | ||||||
| Stock-Based Compensation, Net of Tax Benefits | 3,040 | 3,377 | ||||||
| Mark-to-Market (Gain) Loss on Series I Warrants | 18,605 | 3,300 | ||||||
| Foreign Currency (Gain) Loss on IMW Purchase Notes | — | (341 | ) | |||||
| Adjusted EBITDA | $ | 956 | $ | 3,878 | ||||
Conference Call
The Company will host an investor conference call today at
About
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 momentum in the Company's
fuel sales, anticipated growth in the heavy-duty trucking market and in
the Company's traditional markets, and the Company's development of a
national retail LNG fueling corridor. 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 acceptance of natural gas vehicles in fleet
markets, the availability of natural gas vehicles, changes in economic
conditions, our ability to successfully manage our biomethane business,
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 and
| Clean Energy Fuels Corp. and Subsidiaries | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
|
December 31, 2010 and March 31, 2011 (Unaudited) |
||||||||
|
(In thousands, except share data) |
||||||||
|
December 31, 2010 |
March 31, 2011 |
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 55,194 | $ | 51,949 | ||||
| Restricted cash | 2,500 | 4,893 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $702 and $783 as of December 31, 2010 and March 31, 2011, respectively | 45,645 | 32,318 | ||||||
| Other receivables | 27,280 | 16,194 | ||||||
| Inventory, net | 20,483 | 26,994 | ||||||
| Prepaid expenses and other current assets | 10,959 | 11,970 | ||||||
| Total current assets | 162,061 | 144,318 | ||||||
| Land, property and equipment, net | 211,643 | 217,384 | ||||||
| Notes receivable and other long-term assets | 15,059 | 40,048 | ||||||
| Investments in other entities | 10,748 | 14,161 | ||||||
| Goodwill | 71,814 | 71,814 | ||||||
| Intangible assets, net | 112,174 | 109,438 | ||||||
| Total assets | $ | 583,499 | $ | 597,163 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt and capital lease obligations | $ | 22,712 | $ | 23,166 | ||||
| Accounts payable | 28,635 | 20,614 | ||||||
| Accrued liabilities | 28,137 | 29,012 | ||||||
| Deferred revenue | 17,507 | 12,466 | ||||||
| Total current liabilities | 96,991 | 85,258 | ||||||
| Long-term debt and capital lease obligations, less current portion | 41,704 | 64,492 | ||||||
| Other long-term liabilities | 28,588 | 28,979 | ||||||
| Total liabilities | 167,283 | 178,729 | ||||||
| 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 69,610,098 shares and 70,269,071 shares at December 31, 2010 and March 31, 2011, respectively | 7 | 7 | ||||||
| Additional paid-in capital | 569,202 | 580,473 | ||||||
| Accumulated deficit | (151,926 | ) | (161,678 | ) | ||||
| Accumulated other comprehensive loss | (3,996 | ) | (3,991 | ) | ||||
| Total Clean Energy Fuels Corp. stockholders' equity | 413,287 | 414,811 | ||||||
| Noncontrolling interest in subsidiary | 2,929 | 3,623 | ||||||
| Total stockholders' equity | 416,216 | 418,434 | ||||||
| Total liabilities and stockholders' equity | $ | 583,499 | $ | 597,163 | ||||
| Clean Energy Fuels Corp. and Subsidiaries | |||||||||
| Condensed Consolidated Statements of Operations | |||||||||
| For the Three Months Ended | |||||||||
| March 31, 2010 and 2011 (Unaudited) | |||||||||
| (In thousands, except share data) | |||||||||
|
Three Months Ended March 31, |
|||||||||
| 2010 | 2011 | ||||||||
| Revenue: | |||||||||
| Product revenues | $ | 34,273 | $ | 58,532 | |||||
| Service revenues | 4,716 | 6,809 | |||||||
| Total revenues | 38,989 | 65,341 | |||||||
| Operating expenses: | |||||||||
| Cost of sales: | |||||||||
| Product cost of sales | 25,496 | 43,850 | |||||||
| Service cost of sales | 2,063 | 3,154 | |||||||
| Derivative (gains) losses: | |||||||||
| Series I warrant valuation | 18,605 | 3,300 | |||||||
| Selling, general and administrative | 13,649 | 18,030 | |||||||
| Depreciation and amortization | 4,991 | 7,210 | |||||||
| Total operating expenses | 64,804 | 75,544 | |||||||
| Operating income (loss) | (25,815 |
) |
|
(10,203 |
) |
|
|||
| Interest income (expense), net | 109 | (820 |
) |
|
|||||
| Other income | 43 | 601 | |||||||
| Income from equity method investments | 77 | 211 | |||||||
| Loss before income taxes | (25,586 |
) |
|
(10,211 |
) |
|
|||
| Income tax (expense) benefit | 1,203 | 735 | |||||||
| Net loss | (24,383 | ) | (9,476 | ) | |||||
| Income (loss) of noncontrolling interest | 16 | (277 | ) | ||||||
| Net loss attributable to Clean Energy Fuels Corp. | $ | (24,367 |
) |
|
$ | (9,753 |
) |
|
|
| Loss per share attributable to Clean Energy Fuels Corp. | |||||||||
| Basic and diluted | $ | (0.41 |
) |
|
$ | (0.14 |
) |
|
|
| Weighted average common shares outstanding | |||||||||
| Basic and diluted | 60,156,352 | 70,096,000 | |||||||
|
Included in net loss are the following amounts (in millions): |
|||||||||
|
Three Months Ended
March 31, |
|||||||||
| 2010 | 2011 | ||||||||
| Construction Revenues | 0.1 | 6.3 | |||||||
| Construction Cost of Sales | — | (5.1 | ) | ||||||
| Fuel Tax Credits | — | 4.2 | |||||||
| Stock Option Expense, Net of Tax Benefits | (3.0 | ) | (3.4 | ) | |||||
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