Clean Energy Reports Gallons Delivered Rose 23% and Revenue up 19% During The Second Quarter of 2014


clean energy

NEWPORT BEACH, CA -- August 8, 2014: Clean Energy Fuels Corp. (Clean Energy or the Company) today announced operating results for the second quarter ended June 30, 2014.

Gallons delivered (defined below) for the second quarter of 2014 totaled 64.8 million gallons, up 23% from the 52.6 million gallons delivered in the same period a year ago. For the six months ended June 30, 2014, gallons delivered totaled 124.1 million gallons, up from 102.5 million gallons delivered in the six months ended June 30, 2013.

Revenue for the second quarter ended June 30, 2014 was $98.1 million, up from $88.1 million for the second quarter of 2013. Excluding the VETC (defined below) revenue recorded in the second quarter of 2013, revenue increased 19% between periods. For the six months ended June 30, 2014, revenue totaled $193.4 million, up from $181.2 million a year ago. When comparing periods, note that the Company recognized revenue attributable to the volumetric excise tax credit (VETC) of $6.0 million and $32.2 million in the second quarter and first six months of 2013, but did not recognize any revenue attributable to VETC in the second quarter and first six months of 2014 as the legislation under which the Company received such revenue expired on December 31, 2013.

Andrew J. Littlefair, Clean Energy’s President and Chief Executive Officer, stated: “It was a very productive quarter at Clean Energy with the opening of the I-10 corridor from L.A. to Houston and the I-40 corridor from L.A. to Oklahoma City to heavy duty trucks fueling at our stations. Our nationwide network of natural gas fueling stations continues to expand as the number of trucking fleets that are either testing natural gas trucks or increasing their current count is rapidly expanding.”

Littlefair continued: “We also opened a CNG station, which in addition to fueling vehicles, is providing natural gas to energy-intensive users that are beyond the reach of a pipeline in New England. After being opened for only a few weeks, we see it on track to become one of our highest volume stations. In addition to this new market, we also made additional inroads into two of our newer markets, ready mix and bulk fuel hauling, during the quarter. Lastly, our established businesses of refuse, transit and airports continue to produce record volume levels.”

Adjusted EBITDA for the second quarter of 2014 was $(4.7) million. This compares with Adjusted EBITDA of $11.1 million in the second quarter of 2013. For the six month period ended June 30, 2014, Adjusted EBITDA was $(11.5) million, compared with $31.2 million for the same period in 2013. Adjusted EBITDA in the second quarter of 2013 and in the first six months of 2013 included $6.0 million and $32.2 million, respectively, of VETC revenue. Additionally, Adjusted EBITDA in the three months and six months ended June 30, 2013 included a $15.5 million gain on the Company’s sale of one of its subsidiaries, and Adjusted EBITDA for the six month period ended June 30, 2013 also included a $4.7 million gain on the Company’s sale of its ownership interest in its Peruvian joint venture. Adjusted EBITDA is described below and reconciled to the GAAP measure net loss attributable to Clean Energy Fuels Corp.

Non-GAAP loss per share for the second quarter of 2014 was $0.28, compared with non-GAAP loss per share for the second quarter of 2013 of $0.07. For the six months ended June 30, 2014, non-GAAP loss per share was $0.58, compared with non-GAAP loss per share of $0.03 for the first six months in 2013. Non-GAAP loss per share in the second quarter of 2013 and in the first six months of 2013 included $6.0 million and $32.2 million, respectively, of VETC revenue, and the non-GAAP loss per share amounts for the three and six month periods ended June 30, 2013 included a $15.5 million gain on the sale of one of the Company’s subsidiaries. Non-GAAP loss per share for the six month period ended June 30, 2013 also included a $4.7 million gain on the Company’s sale of its ownership interest in its Peruvian joint venture. Non-GAAP loss per share is described below and reconciled to the GAAP measure net loss attributable to Clean Energy Fuels Corp.

On a GAAP basis, net loss for the second quarter of 2014 was $32.3 million, or $0.34 per share, and included a non-cash loss of $2.3 million related to the accounting treatment that requires Clean Energy to value its Series I warrants and mark them to market, a non-cash charge of $3.0 million related to stock-based compensation, a $0.3 million gain on the fair value adjustment of the remaining shares the Company received from Westport Innovations, Inc. from the sale of its former subsidiary BAF Technologies, Inc. (WPRT Holdback Shares Write-Down or (Write-Up)), and $0.8 million in additional lease exit charges related to the move of the Company's headquarters (HQ Lease Exit). This compares with a net loss for the second quarter of 2013 of $11.9 million, or $0.13 per share, that included $5.5 million of non-cash stock-based compensation charges and foreign currency losses of $0.2 million on the Company’s purchase notes issued in September 2011 in connection with its acquisition of IMW Industries, Ltd. (“IMW”).

Net loss for the six month period ended June 30, 2014 was $60.9 million, or $0.64 per share, which included a non-cash gain of $2.2 million related to the valuation of the Series I warrants, non-cash stock-based compensation charges of $6.4 million, foreign currency losses of $0.3 million on the IMW purchase notes, a $0.1 million charge from the WPRT Holdback Shares Write-Down, and a $0.8 million charge related to the HQ Lease Exit. This compares with a net loss in the six months ended June 30, 2013 of $15.8 million, or $0.17 per share, which included a non-cash charge for the Series I warrants of $0.5 million, non-cash stock-based compensation charges of $11.7 million, and foreign currency losses of $0.4 million on the IMW purchase notes.

Non-GAAP Financial Measures

To supplement the Company's condensed 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, 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 non-recurring significant 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 (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-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. Management compensates for these limitations 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 Fuels Corp., 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 IMW purchase notes, plus or minus the WPRT Holdback Shares Write-Down or Write-Up, and plus the 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 charges related to stock-based compensation provides useful information to investors because the 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 the Company's performance with other companies that have different capital structures. The Company's management believes that excluding the foreign currency gains and losses on the IMW purchase notes 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 IMW business as opposed to the core operations of the Company. The Company's management believes that excluding the WPRT Holdback Shares Write-Down or Write-Up and the HQ Lease Exit amounts is useful to investors because they are not part of the core operations of the Company.

The table below shows non-GAAP EPS and also reconciles these figures to the GAAP measure net loss attributable to Clean Energy Fuels Corp.:

Three Months Ended June 30, Six Months Ended June 30,
(in 000s, except per-share amounts) 2013

2014 2013

2014
Net Loss Attributable to Clean Energy Fuels Corp. $ (11,943 ) $ (32,306 ) $ (15,814 ) $ (60,899 )
Stock Based Compensation, Net of Tax Benefits 5,451 2,978 11,663 6,398
Mark-to-Market (Gain) Loss on Series I Warrants 39 2,286 505 (2,169 )
Foreign Currency Loss on IMW Purchase Notes 249 441 343
WPRT Holdback Shares Write-Down or (Write Up) (341 ) 122
HQ Lease Exit 757 812
Adjusted Net Loss $ (6,204 ) $ (26,626 ) $ (3,205 ) $ (55,393 )
Diluted Weighted Average Common Shares Outstanding 93,985,438 94,859,587 93,561,302 94,768,462
Non-GAAP Loss Per Share $ (0.07 ) $ (0.28 ) $ (0.03 ) $ (0.58 )

Adjusted EBITDA

Adjusted EBITDA is defined as net income (loss) attributable to Clean Energy Fuels Corp., plus or minus income tax expense or benefit, plus or minus interest expense or income, net, plus depreciation and amortization expense, plus or minus the foreign currency losses or gains on the Company's IMW purchase notes, 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 WPRT Holdback Shares Write-Down or Write-Up, 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 and also reconciles these figures to the GAAP measure net loss attributable to Clean Energy Fuels Corp.:

Three Months Ended June 30, Six Months Ended June 30,
(in 000s) 2013

2014 2013

2014
Net Loss Attributable to Clean Energy Fuels Corp. $ (11,943 ) $ (32,306 ) $ (15,814 ) $ (60,899 )
Income Tax Expense 293 147 2,098 1,109
Interest Expense, Net 6,282 10,130 11,353 19,640
Depreciation and Amortization 10,777 11,608 20,935 23,123
Foreign Currency Loss on IMW Purchase Notes 249 441 343
Stock Based Compensation, Net of Tax Benefits 5,451 2,978 11,663 6,398
Mark-to-Market (Gain) Loss on Series I Warrants 39 2,286 505 (2,169 )
WPRT Holdback Shares Write-Down or (Write Up) (341 ) 122
HQ Lease Exit 757 812
Adjusted EBITDA $ 11,148 $ (4,741 ) $ 31,181 $ (11,521 )

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, delivered to its customers during the applicable period.

-->

Home | Buyers Guides By Make | New Car Buyers Guide | Used Car Super Search | Total New Car Costs | New Car and Truck Reviews
Automotive News | TACH-TV | Media Library | Discount Auto Parts

Copyright © 1996-2014 The Auto Channel. Contact Information, Credits, and Terms of Use. These following titles and media identification are Trademarks owned by The Auto Channel, LLC and have been in continuous use since 1987 : The Auto Channel, Auto Channel and TACH all have been in continuous use world wide since 1987, in Print, TV, Radio, Home Video, Newsletters, On-line, and other interactive media; all rights are reserved and infringement will be acted upon with force.

Privacy Statement | Size Does Matter | Media Kit | XML SITE MAP | Affiliates

Send your questions, comments, and suggestions to Editor-in-Chief@theautochannel.com.

Submit Company releases or Product News stories to submit@theautochannel.com.
Place copy in body of email, NO attachments please.

To report errors and other problems with this page, please use this form.

Link to this page: http://www.theautochannel.com/