Clean Energy Reports Revenue of $104.9 Million and 59.6 Million RNG Gallons Sold for the Third Quarter of 2024
Clean Energy Fuels Corp. (NASDAQ: CLNE) reported Q3 2024 financial results with revenue of $104.9 million, up from $95.6 million in Q3 2023. The company sold 59.6 million RNG gallons, a 5.1% increase year-over-year. Net loss narrowed to $(18.2) million or $(0.08) per share, compared to $(25.8) million or $(0.12) per share in Q3 2023. Adjusted EBITDA improved to $21.3 million from $14.2 million last year.
Key operational highlights include breaking ground on a new RNG facility at South Fork Dairy, launching a demo program with JB Hunt for Cummins X15N trucks, and expanding their fueling station network in Western Canada with Tourmaline.
Clean Energy Fuels Corp. (NASDAQ: CLNE) ha riportato i risultati finanziari del terzo trimestre del 2024, con un fatturato di 104,9 milioni di dollari, in aumento rispetto ai 95,6 milioni di dollari del terzo trimestre del 2023. L'azienda ha venduto 59,6 milioni di galloni di RNG, con un incremento del 5,1% rispetto all'anno precedente. La perdita netta si è ridotta a $(18,2) milioni, ovvero $(0,08) per azione, rispetto ai $(25,8) milioni, cioè $(0,12) per azione, del terzo trimestre del 2023. EBITDA rettificato è migliorato a 21,3 milioni di dollari dai 14,2 milioni dell'anno scorso.
I principali risultati operativi includono l'inizio dei lavori su un nuovo impianto di RNG presso South Fork Dairy, il lancio di un programma dimostrativo con JB Hunt per i camion Cummins X15N e l'espansione della rete di stazioni di rifornimento in Canada occidentale con Tourmaline.
Clean Energy Fuels Corp. (NASDAQ: CLNE) anunció los resultados financieros del tercer trimestre de 2024, con ingresos de 104.9 millones de dólares, un aumento desde los 95.6 millones de dólares en el tercer trimestre de 2023. La compañía vendió 59.6 millones de galones de RNG, un incremento del 5.1% interanual. La pérdida neta se redujo a $(18.2) millones o $(0.08) por acción, en comparación con $(25.8) millones o $(0.12) por acción en el tercer trimestre de 2023. EBITDA ajustado mejoró a 21.3 millones de dólares desde los 14.2 millones del año pasado.
Los aspectos operativos clave incluyen el inicio de la construcción de una nueva instalación de RNG en South Fork Dairy, el lanzamiento de un programa piloto con JB Hunt para los camiones Cummins X15N y la expansión de su red de estaciones de servicio en Canadá occidental con Tourmaline.
클린 에너지 연료 회사 (NASDAQ: CLNE)가 2024년 3분기 재무 결과를 발표했습니다. 수익은 1억 4천 9백만 달러로, 2023년 3분기의 9천 5백 6십만 달러에서 증가했습니다. 회사는 5천 9백 6십만 갤런의 RNG를 판매했으며, 이는 작년 대비 5.1% 증가한 수치입니다. 순손실은 $(1천 8백 2십만) 혹은 주당 $(0.08)로 줄어들었고, 2023년 3분기 $(2천 5백 8십만) 혹은 주당 $(0.12)와 비교됩니다. 조정 EBITDA는 작년의 1천 4백 2십만 달러에서 2천 1백 3십만 달러로 개선되었습니다.
주요 운영 성과로는 South Fork Dairy에 새로운 RNG 시설의 착공, JB Hunt와의 Cummins X15N 트럭을 위한 데모 프로그램 시작, 그리고 Tourmaline과 협력하여 서부 캐나다의 주유소 네트워크 확장이 포함됩니다.
Clean Energy Fuels Corp. (NASDAQ: CLNE) a publié ses résultats financiers du troisième trimestre 2024, avec des revenus de 104,9 millions de dollars, en hausse par rapport à 95,6 millions de dollars au troisième trimestre 2023. L'entreprise a vendu 59,6 millions de gallons de RNG, soit une augmentation de 5,1 % par rapport à l'année précédente. La perte nette a été réduite à $(18,2) millions ou $(0,08) par action, comparé à $(25,8) millions ou $(0,12) par action au troisième trimestre 2023. EBITDA ajusté a augmenté à 21,3 millions de dollars contre 14,2 millions de dollars l'année dernière.
Les faits saillants opérationnels incluent le lancement des travaux pour une nouvelle installation de RNG à South Fork Dairy, le lancement d'un programme de démonstration avec JB Hunt pour les camions Cummins X15N, et l'expansion de leur réseau de stations-service dans l'ouest du Canada avec Tourmaline.
Clean Energy Fuels Corp. (NASDAQ: CLNE) berichtete über die finanziellen Ergebnisse des 3. Quartals 2024 mit Einnahmen von 104,9 Millionen Dollar, im Vergleich zu 95,6 Millionen Dollar im 3. Quartal 2023. Das Unternehmen verkaufte 59,6 Millionen RNG-Gallonen, was einem Anstieg von 5,1 % im Jahresvergleich entspricht. Der Nettoverlust verringerte sich auf $(18,2) Millionen oder $(0,08) pro Aktie, verglichen mit $(25,8) Millionen oder $(0,12) pro Aktie im 3. Quartal 2023. Bereinigtes EBITDA verbesserte sich auf 21,3 Millionen Dollar von 14,2 Millionen Dollar im letzten Jahr.
Zu den wichtigsten betrieblichen Höhepunkten gehören der Baubeginn einer neuen RNG-Anlage bei South Fork Dairy, der Start eines Demoprogramms mit JB Hunt für Cummins X15N-Trucks und die Erweiterung ihres Tankstellennetzes in Westkanada mit Tourmaline.
- Revenue increased 9.7% YoY to $104.9 million in Q3 2024
- RNG gallons sold grew 5.1% to 59.6 million gallons
- Net loss decreased from $(25.8M) to $(18.2M) YoY
- Adjusted EBITDA improved 50% to $21.3M from $14.2M
- Cash and investments position of $243.5M as of September 30, 2024
- Posted net loss of $(18.2M) in Q3 2024
- Expects GAAP net loss of $(91M) to $(81M) for full year 2024
- Higher non-operating net interest expenses due to increased debt
- Amazon warrant charges reduced revenue by $15.8M
Insights
Q3 2024 shows mixed results with some positive trends. Revenue increased 9.7% to
Key positives include
The expansion of RNG infrastructure and new partnerships, particularly in Western Canada, signals potential future growth. However, investors should monitor the ongoing impact of warrant charges and high interest expenses on profitability.
The operational metrics reveal encouraging momentum in Clean Energy's core RNG business. The company is strategically expanding its RNG production capacity with new facilities like South Fork Dairy, which will add 2.6 million annual gallons. The partnership with Cummins for the X15N engine demo program addresses a critical market need for heavy-duty natural gas vehicles.
The expansion in Western Canada with Tourmaline, adding two new CNG stations with four more planned, demonstrates strong geographic growth. The Houston Metro Transit agreement for a 2-million-gallon station reinforces the company's position in the public transportation sector.
While the business fundamentals are improving, the financial structure still faces headwinds from high interest expenses and equity method investment losses. The transition to profitability remains a key challenge despite growing operational scale.
Financial Highlights
-
Revenue of
$104.9 million $95.6 million -
Net loss attributable to Clean Energy for Q3 2024 was
$(18.2) million $(0.08) $(25.8) million $(0.12) -
Adjusted EBITDA (as defined below) was
$21.3 million $14.2 million -
Cash, Cash Equivalents (less restricted cash) and Short-Term Investments totaled
$243.5 million -
2024 outlook:
-
GAAP net loss of approximately
$(91) million $(81) million -
Adjusted EBITDA of
$62 million $72 million
-
GAAP net loss of approximately
Operational and Strategic Highlights
-
Renewable natural gas (“RNG”) gallons sold of 59.6 million gallons in Q3 2024, a
5.1% increase compared to Q3 2023. - Broke ground on a RNG production facility at South Fork Dairy home to 16,000 cows, anticipating the production of 2.6 million annual gallons.
- Launched a demo program for customers to test a heavy-duty truck equipped with the new Cummins X15N with JB Hunt.
-
Announced an agreement with Metropolitan Transit Authority of
Harris County inHouston to build a private natural gas fueling station that is expected to consume 2 million gallons a year. -
Announced the opening of two CNG fueling stations in
Western Canada with our joint development partner Tourmaline, bringing the total to three stations, with at least an additional four in process in the near term.
Commentary by Andrew J. Littlefair, President and Chief Executive Officer
“Great progress continued in the third quarter with growing RNG fuel volumes, additional investment into dairy RNG projects, fueling stations coming online increasing our network in strategic locations, and leading heavy-duty truck fleets signing up to test our demo truck with the new Cummins X15N engine. I’m particularly pleased that we continued our strong financial performance and it’s exciting to see the enthusiasm in the use of RNG as heavy-duty fleets have a new RNG engine that meets their demands when other alternative technologies continue to disappoint.”
Summary and Review of Results
The Company’s revenue for the third quarter of 2024 was reduced by
Net loss attributable to Clean Energy for the third quarter of 2024 had lower Amazon warrant charges when compared to Q3 2023. Q3 2024 non-operating net interest expenses and losses from equity method investments were higher than Q3 2023 primarily due to higher outstanding indebtedness combined with higher amortization of debt discount and issuance costs and expansion of our RNG investments, respectively. Selling, general and administrative expenses were lower in Q3 2024 by approximately
Non-GAAP income (loss) per share (as defined below) for the third quarter of 2024 was
Adjusted EBITDA (as defined below) was
In this press release, Clean Energy refers to various GAAP (
The table below shows GAAP and non-GAAP income (loss) attributable to Clean Energy per share and also reconciles GAAP net income (loss) attributable to Clean Energy to the non-GAAP net income (loss) attributable to Clean Energy figure used in the calculation of non-GAAP income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
(in thousands, except share and per share data) |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||
Net loss attributable to Clean Energy Fuels Corp. |
|
$ |
(25,812 |
) |
|
$ |
(18,175 |
) |
|
$ |
(80,810 |
) |
|
$ |
(52,911 |
) |
Amazon warrant charges |
|
|
16,821 |
|
|
|
15,766 |
|
|
|
44,473 |
|
|
|
42,742 |
|
Stock-based compensation |
|
|
6,091 |
|
|
|
2,863 |
|
|
|
18,280 |
|
|
|
8,354 |
|
Loss (income) from Rimere equity method investment |
|
|
— |
|
|
|
1,850 |
|
|
|
— |
|
|
|
4,394 |
|
Loss (income) from SAFE&CEC S.r.l. equity method investment |
|
|
1,071 |
|
|
|
16 |
|
|
|
1,324 |
|
|
|
1,884 |
|
Loss (gain) from change in fair value of derivative instruments |
|
|
1,372 |
|
|
|
1,416 |
|
|
|
304 |
|
|
|
(267 |
) |
Amortization of investment tax credit from RNG equity method investments |
|
|
— |
|
|
|
(268 |
) |
|
|
— |
|
|
|
(367 |
) |
Non-GAAP net income (loss) attributable to Clean Energy Fuels Corp. |
|
$ |
(457 |
) |
|
$ |
3,468 |
|
|
$ |
(16,429 |
) |
|
$ |
3,829 |
|
Diluted weighted-average common shares outstanding |
|
|
222,973,575 |
|
|
|
224,430,603 |
|
|
|
222,867,303 |
|
|
|
224,164,054 |
|
GAAP loss attributable to Clean Energy Fuels Corp. per share |
|
$ |
(0.12 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.24 |
) |
Non-GAAP income (loss) attributable to Clean Energy Fuels Corp. per share |
|
$ |
(0.00 |
) |
|
$ |
0.02 |
|
|
$ |
(0.07 |
) |
|
$ |
0.02 |
|
The table below shows Adjusted EBITDA and also reconciles this figure to GAAP net loss attributable to Clean Energy:
|
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|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
(in thousands) |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||
Net loss attributable to Clean Energy Fuels Corp. |
|
$ |
(25,812 |
) |
|
$ |
(18,175 |
) |
|
$ |
(80,810 |
) |
|
$ |
(52,911 |
) |
Income tax expense (benefit) |
|
|
(47 |
) |
|
|
50 |
|
|
|
(166 |
) |
|
|
630 |
|
Interest expense |
|
|
3,893 |
|
|
|
8,357 |
|
|
|
12,612 |
|
|
|
24,040 |
|
Interest income |
|
|
(2,551 |
) |
|
|
(3,600 |
) |
|
|
(8,034 |
) |
|
|
(10,818 |
) |
Depreciation and amortization |
|
|
13,389 |
|
|
|
11,350 |
|
|
|
34,960 |
|
|
|
33,796 |
|
Amazon warrant charges |
|
|
16,821 |
|
|
|
15,766 |
|
|
|
44,473 |
|
|
|
42,742 |
|
Stock-based compensation |
|
|
6,091 |
|
|
|
2,863 |
|
|
|
18,280 |
|
|
|
8,354 |
|
Loss (income) from Rimere equity method investment |
|
|
— |
|
|
|
1,850 |
|
|
|
— |
|
|
|
4,394 |
|
Loss (income) from SAFE&CEC S.r.l. equity method investment |
|
|
1,071 |
|
|
|
16 |
|
|
|
1,324 |
|
|
|
1,884 |
|
Loss (gain) from change in fair value of derivative instruments |
|
|
1,372 |
|
|
|
1,416 |
|
|
|
304 |
|
|
|
(267 |
) |
Depreciation and amortization from RNG equity method investments |
|
|
299 |
|
|
|
1,927 |
|
|
|
709 |
|
|
|
3,485 |
|
Interest expense from RNG equity method investments |
|
|
238 |
|
|
|
664 |
|
|
|
726 |
|
|
|
1,212 |
|
Interest income from RNG equity method investments |
|
|
(518 |
) |
|
|
(936 |
) |
|
|
(1,958 |
) |
|
|
(3,142 |
) |
Amortization of investment tax credit from RNG equity method investments |
|
|
— |
|
|
|
(268 |
) |
|
|
— |
|
|
|
(367 |
) |
Adjusted EBITDA |
|
$ |
14,246 |
|
|
$ |
21,280 |
|
|
$ |
22,420 |
|
|
$ |
53,032 |
|
The tables below present a further breakdown of the above consolidated Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
(in thousands) |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||
Net loss attributable to fuel distribution |
|
$ |
(24,497 |
) |
|
$ |
(15,026 |
) |
|
$ |
(77,560 |
) |
|
$ |
(42,969 |
) |
Income tax expense (benefit) |
|
|
(47 |
) |
|
|
50 |
|
|
|
(166 |
) |
|
|
630 |
|
Interest expense |
|
|
3,893 |
|
|
|
8,357 |
|
|
|
12,612 |
|
|
|
24,040 |
|
Interest income |
|
|
(2,551 |
) |
|
|
(3,600 |
) |
|
|
(8,034 |
) |
|
|
(10,818 |
) |
Depreciation and amortization |
|
|
13,389 |
|
|
|
11,350 |
|
|
|
34,960 |
|
|
|
33,796 |
|
Amazon warrant charges |
|
|
16,821 |
|
|
|
15,766 |
|
|
|
44,473 |
|
|
|
42,742 |
|
Stock-based compensation |
|
|
6,091 |
|
|
|
2,863 |
|
|
|
18,280 |
|
|
|
8,354 |
|
Loss (income) from Rimere equity method investment |
|
|
— |
|
|
|
1,850 |
|
|
|
— |
|
|
|
4,394 |
|
Loss (income) from SAFE&CEC S.r.l. equity method investment |
|
|
1,071 |
|
|
|
16 |
|
|
|
1,324 |
|
|
|
1,884 |
|
Loss (gain) from change in fair value of derivative instruments |
|
|
1,372 |
|
|
|
1,416 |
|
|
|
304 |
|
|
|
(267 |
) |
Adjusted EBITDA attributable to fuel distribution |
|
$ |
15,542 |
|
|
$ |
23,042 |
|
|
$ |
26,193 |
|
|
$ |
61,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
(in thousands) |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||
Net loss from RNG equity method investments attributable to Clean Energy Fuels Corp. |
|
$ |
(1,315 |
) |
|
$ |
(3,149 |
) |
|
$ |
(3,250 |
) |
|
$ |
(9,942 |
) |
Depreciation and amortization from RNG equity method investments |
|
|
299 |
|
|
|
1,927 |
|
|
|
709 |
|
|
|
3,485 |
|
Interest expense from RNG equity method investments |
|
|
238 |
|
|
|
664 |
|
|
|
726 |
|
|
|
1,212 |
|
Interest income from RNG equity method investments |
|
|
(518 |
) |
|
|
(936 |
) |
|
|
(1,958 |
) |
|
|
(3,142 |
) |
Amortization of investment tax credit from RNG equity method investments |
|
|
— |
|
|
|
(268 |
) |
|
|
— |
|
|
|
(367 |
) |
Adjusted EBITDA of RNG equity method investments attributable to Clean Energy Fuels Corp. |
|
$ |
(1,296 |
) |
|
$ |
(1,762 |
) |
|
$ |
(3,773 |
) |
|
$ |
(8,754 |
) |
Fuel and Service Volume
The following tables present, for the three and nine months ended September 30, 2023 and 2024, (1) the amount of total fuel volume the Company sold to customers with particular focus on RNG volume as a subset of total fuel volume and (2) operation and maintenance (“O&M”) services volume dispensed at facilities the Company does not own but at which it provides O&M services on a per-gallon or fixed fee basis. Certain gallons are included in both fuel and service volumes when the Company sells fuel (product revenue) to a customer and provides maintenance services (service revenue) to the same customer.
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|
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|
Three Months Ended |
|
Nine Months Ended |
||||||||
Fuel volume, GGEs(1) sold (in millions), |
|
September 30, |
|
September 30, |
||||||||
correlating to total volume-related product revenue |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||
RNG |
|
|
56.7 |
|
|
59.6 |
|
|
168.7 |
|
|
174.7 |
Conventional natural gas |
|
|
17.1 |
|
|
13.9 |
|
|
46.6 |
|
|
44.2 |
Total fuel volume |
|
|
73.8 |
|
|
73.5 |
|
|
215.3 |
|
|
218.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
O&M services volume, GGEs(1) serviced (in millions), |
|
September 30, |
|
September 30, |
||||||||
correlating to volume-related O&M services revenue |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||
O&M services volume |
|
|
66.2 |
|
|
65.6 |
|
|
191.7 |
|
|
198.9 |
| _______________________________ | ||
(1) |
The Company calculates one gasoline gallon equivalent (“GGE”) to equal 125,000 British Thermal Units (“BTUs”), and, as such, one million BTUs (“MMBTU”) equal eight GGEs. |
|
Sources of Revenue
The following table shows the Company’s sources of revenue for the three and nine months ended September 30, 2023 and 2024:
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|||
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Three Months Ended |
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Nine Months Ended |
|||||||||||
|
|
September 30, |
|
September 30, |
|||||||||||
Revenue (in millions) |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|||||||
Product revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Volume-related (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Fuel sales(2) (4) |
|
$ |
60.0 |
|
|
$ |
64.1 |
|
|
$ |
220.2 |
|
|
$ |
189.7 |
Change in fair value of derivative instruments(3) |
|
|
(1.4 |
) |
|
|
(1.4 |
) |
|
|
(0.3 |
) |
|
|
0.3 |
RIN Credits |
|
|
6.8 |
|
|
|
11.1 |
|
|
|
16.7 |
|
|
|
29.4 |
LCFS Credits |
|
|
2.8 |
|
|
|
1.9 |
|
|
|
7.5 |
|
|
|
6.0 |
AFTC |
|
|
5.4 |
|
|
|
6.4 |
|
|
|
15.0 |
|
|
|
17.8 |
Total volume-related product revenue |
|
|
73.6 |
|
|
|
82.1 |
|
|
|
259.1 |
|
|
|
243.2 |
Station construction sales |
|
|
7.7 |
|
|
|
7.8 |
|
|
|
17.6 |
|
|
|
19.1 |
Total product revenue |
|
|
81.3 |
|
|
|
89.9 |
|
|
|
276.7 |
|
|
|
262.3 |
Service revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Volume-related, O&M services |
|
|
13.7 |
|
|
|
14.4 |
|
|
|
39.6 |
|
|
|
42.5 |
Other services |
|
|
0.6 |
|
|
|
0.6 |
|
|
|
2.0 |
|
|
|
1.7 |
Total service revenue |
|
|
14.3 |
|
|
|
15.0 |
|
|
|
41.6 |
|
|
|
44.2 |
Total revenue |
|
$ |
95.6 |
|
|
$ |
104.9 |
|
|
$ |
318.3 |
|
|
$ |
306.5 |
| _______________________________ | ||
(1) |
The Company’s volume-related product revenue primarily consists of sales of RNG and conventional natural gas, in the form of CNG and LNG, and sales of RINs and LCFS Credits in addition to changes in fair value of our derivative instruments. |
|
|
|
|
(2) |
Includes |
|
|
|
|
(3) |
The change in fair value of unsettled derivative instruments is related to the Company’s commodity swap and customer fueling contracts. The amounts are classified as revenue because the Company’s commodity swap contracts are used to economically offset the risk associated with the diesel-to-natural gas price spread resulting from customer fueling contracts under the Company’s truck financing program. |
|
|
||
(4) |
Includes net settlement of the Company’s commodity swap derivative instruments. For the three and nine months ended September 30, 2023, net settlement payments recognized in fuel revenue were |
|
2024 Outlook
Our GAAP net loss for 2024 is expected to range from approximately
|
|
|
|
(in thousands) |
|
2024 Outlook |
|
GAAP Net loss attributable to Clean Energy Fuels Corp. |
|
$ |
(91,000) - (81,000) |
Income tax expense (benefit) |
|
|
700 |
Interest expense |
|
|
31,200 |
Interest income |
|
|
(13,000) |
Depreciation and amortization |
|
|
47,500 |
Stock-based compensation |
|
|
11,000 |
Loss (income) from SAFE&CEC S.r.l. and Rimere equity method investments |
|
|
10,000 |
Loss (gain) from change in fair value of derivative instruments |
|
|
— |
Amazon warrant charges |
|
|
63,000 |
Depreciation and amortization from RNG equity method investments |
|
|
4,000 |
Interest expense from RNG equity method investments |
|
|
600 |
Interest income from RNG equity method investments |
|
|
(2,000) |
Adjusted EBITDA |
|
$ |
62,000 - 72,000 |
The tables below present a further breakdown of the above consolidated Adjusted EBITDA:
|
|
|
|
(in thousands) |
|
2024 Outlook |
|
GAAP Net loss attributable to fuel distribution |
|
$ |
(74,300) - (68,300) |
Income tax expense (benefit) |
|
|
700 |
Interest expense |
|
|
31,200 |
Interest income |
|
|
(13,000) |
Depreciation and amortization |
|
|
47,500 |
Stock-based compensation |
|
|
11,000 |
Loss (income) from SAFE&CEC S.r.l. and Rimere equity method investments |
|
|
10,000 |
Loss (gain) from change in fair value of derivative instruments |
|
|
— |
Amazon warrant charges |
|
|
63,000 |
Adjusted EBITDA attributable to fuel distribution |
|
$ |
76,100 - 82,100 |
|
|
|
|
(in thousands) |
|
2024 Outlook |
|
Net loss from RNG equity method investments attributable to Clean Energy Fuels Corp. |
|
$ |
(16,700) - (12,700) |
Depreciation and amortization from RNG equity method investments |
|
|
4,000 |
Interest expense from RNG equity method investments |
|
|
600 |
Interest income from RNG equity method investments |
|
|
(2,000) |
Adjusted EBITDA of RNG equity method investments attributable to Clean Energy Fuels Corp. |
|
$ |
(14,100) - (10,100) |
Today’s Conference Call
The Company will host an investor conference call today at 4:30 p.m. Eastern time (1:30 p.m. Pacific). Investors interested in participating in the live call can dial 1.800.225.9448 from the
About Clean Energy Fuels Corp.
Clean Energy Fuels Corp. is the country’s largest provider of the cleanest fuel for the transportation market. Our mission is to decarbonize transportation through the development and delivery of renewable natural gas (“RNG”), a sustainable fuel derived from organic waste. Clean Energy allows thousands of vehicles, from airport shuttles to city buses to waste and heavy-duty trucks, to reduce their amount of climate-harming greenhouse gas. We operate a vast network of fueling stations across the
Non-GAAP Financial Measures
To supplement the Company’s unaudited consolidated financial statements presented in accordance with GAAP, the Company uses non-GAAP financial measures that it calls non-GAAP income (loss) per share (“non-GAAP income (loss) per share”) and adjusted EBITDA (“Adjusted EBITDA”). Management presents non-GAAP income (loss) per share and Adjusted EBITDA because it believes these measures provide meaningful supplemental information about the Company’s performance for the following reasons: (1) they allow for greater transparency with respect to key metrics used by management to assess the Company’s operating performance and make financial and operational decisions; (2) they exclude the effect of items that management believes are not directly attributable to the Company’s core operating performance and may obscure trends in the business; and (3) they are used by institutional investors and the analyst community to help analyze the Company’s business. In future quarters, the Company may adjust for other expenditures, charges or gains 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 are limited 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/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, charges or gains like the non-GAAP adjustments described below. Accordingly, unless expressly stated otherwise, 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 income (loss) per share and Adjusted EBITDA are not recognized terms under GAAP and do not purport to be an alternative to GAAP income (loss), GAAP income (loss) per share or any other GAAP measure as an indicator of operating performance. Moreover, because not all companies use identical measures and calculations, the Company’s presentation of non-GAAP income (loss) per share and Adjusted EBITDA may not be comparable to other similarly titled measures used by other companies.
Non-GAAP Income (Loss) Per Share
Non-GAAP income (loss) per share, which the Company presents as a non-GAAP measure of its performance, is defined as net income (loss) attributable to Clean Energy Fuels Corp., plus Amazon warrant charges, plus stock-based compensation expense, plus (minus) loss (income) from Rimere equity method investment, plus (minus) loss (income) from the SAFE&CEC S.r.l. equity method investment, plus (minus) any loss (gain) from changes in the fair value of derivative instruments, and minus amortization of investment tax credit from RNG equity method investments, the total of which is divided by the Company’s weighted-average common shares outstanding on a diluted basis. The Company’s management believes excluding non-cash expenses related to the Amazon warrant charges provides useful information to investors regarding the Company’s performance because the Amazon warrant charges are measured based upon a fair value determined using a variety of assumptions and estimates, and the Amazon warrant charges do not affect the Company’s operating cash flows related to the delivery and sale of vehicle fuel to its customer. The Company’s management believes excluding non-cash expenses related to stock-based compensation provides useful information to investors regarding the Company’s performance because of the varying available valuation methodologies, the volatility of the expense (which depends on market forces outside of management’s control), the subjectivity of the assumptions and the variety of award types that a company can use, which may obscure trends in a company’s core operating performance. In addition, the Company’s management believes excluding the results from the Rimere equity method investment is useful to investors because Rimere is an investment belonging to the non-core operations of the Company, and its results are not indicative of the Company’s ongoing operations. Similarly, the Company’s management believes excluding the non-cash results from the SAFE&CEC S.r.l. equity method investment is useful to investors because these charges are not part of or representative of the core operations of the Company. In addition, the Company’s management believes excluding the non-cash loss (gain) from changes in the fair value of derivative instruments is useful to investors because the valuation of the derivative instruments is based on a number of subjective assumptions, the amount of the loss or gain is derived from market forces outside of management’s control, and the exclusion of these amounts enables investors to compare the Company’s performance with other companies that do not use, or use different forms of, derivative instruments. Furthermore, the Company’s management believes excluding other income relating to the amortization of investment tax credit from RNG equity method investments is useful to investors because such income is not generated from the core operations of the Company and may obscure trends of the Company’s core operations.
Adjusted EBITDA
Adjusted EBITDA, which the Company presents as a non-GAAP measure of its performance, is defined as net income (loss) attributable to Clean Energy Fuels Corp., plus (minus) income tax expense (benefit), plus interest expense (including any losses from the extinguishment of debt), minus interest income, plus depreciation and amortization expense, plus Amazon warrant charges, plus stock-based compensation expense, plus (minus) loss (income) from the Rimere equity method investment, plus (minus) loss (income) from the SAFE&CEC S.r.l. equity method investment, plus (minus) any loss (gain) from changes in the fair value of derivative instruments, plus depreciation and amortization expense from RNG equity method investments, plus interest expense from RNG equity method investments, minus interest income from RNG equity method investments, and minus amortization of investment tax credit from RNG equity method investments. The Company’s management believes Adjusted EBITDA provides useful information to investors regarding the Company’s performance for the same reasons discussed above with respect to non-GAAP income (loss) per share. In addition, management internally uses Adjusted EBITDA to determine elements of executive and employee compensation.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements about, among other things, our fiscal 2024 outlook, our volume growth, customer expansion, production sources, joint ventures, governmental regulations, and the benefits of our fuels.
Forward-looking statements are statements other than historical facts and relate to future events or circumstances or the Company’s future performance, and are based on the Company’s current assumptions, expectations and beliefs concerning future developments and their potential effect on the Company and its business. As a result, actual results, performance or achievements and the timing of events could differ materially from those anticipated in or implied by these forward-looking statements as a result of many factors including, among others: the willingness of fleets and other consumers to adopt natural gas as a vehicle fuel, and the rate and level of any such adoption; the market’s perception of the benefits of RNG and conventional natural gas relative to other alternative vehicle fuels; natural gas vehicle and engine cost, fuel usage, availability, quality, safety, convenience, design, performance and residual value, as well as operator perception with respect to these factors, in general and in the Company’s key customer markets, including heavy-duty trucking; the Company’s ability to further develop and manage its RNG business, including its ability to procure adequate supplies of RNG and generate revenues from sales of such RNG; the Company and its suppliers’ ability to successfully develop and operate projects and produce expected volumes of RNG; the impact of a bankruptcy or failure of any source owners at our projects; the Company’s dependence on the production of vehicles and engines by manufacturers over which the Company has no control; the long and variable development cycle required to secure ADG RNG from new projects; the potential commercial viability, solvency, financial capacity, and operational capability of livestock waste and dairy farm projects to produce RNG; the Company’s history of net losses and the possibility that the Company could incur additional net losses in the future; the Company’s and its partners’ ability to acquire, finance, construct and develop other commercial projects; the Company’s ability to invest in hydrogen stations or modify its fueling stations to reform its RNG to fuel hydrogen and charge electric vehicles; the future supply, demand, use and prices of crude oil, gasoline, diesel, natural gas, and other vehicle fuels, including overall levels of and volatility in these factors; changes in the competitive environment in which we operate, including potentially increasing competition in the market for vehicle fuels generally; the Company’s ability to manage and increase its business of transporting and selling CNG for non-vehicle purposes via virtual natural gas pipelines and interconnects, as well as its station design and construction activities; construction, permitting and other factors that could cause delays or other problems at station construction projects; the Company’s ability to procure and maintain contracts with government entities; the Company’s ability to execute and realize the intended benefits of any acquisitions, divestitures, investments or other strategic relationships or transactions; significant fluctuations in the Company’s results of operations, which make it difficult to predict future results of operations; the Company’s warranty reserves may not adequately cover its warranty obligations; the director and indirect impact of health pandemics or epidemics such as the COVID-19 pandemic; the future availability of and the Company’s access to additional capital, which may include debt or equity financing, in the amounts and at the times needed to fund growth in the Company’s business and the repayment of its debt obligations (whether at or before their due dates) or other expenditures, as well as the terms and other effects of any such capital raising transaction; the Company’s ability to generate sufficient cash flows to repay its debt obligations as they come due; the availability of environmental, tax and other government legislation, regulations, programs and incentives that promote natural gas, such as AFTC, or other alternatives as a vehicle fuel, including long-standing support for gasoline- and diesel-powered vehicles and growing support for electric and hydrogen-powered vehicles that could result in programs or incentives that favor these or other vehicles or vehicle fuels over natural gas; the Company’s ability to comply with various registration and regulatory requirements related to its RNG projects; the effect of, or potential for changes to greenhouse gas emissions requirements or other environmental regulations applicable to vehicles powered by gasoline, diesel, natural gas or other vehicle fuels and crude oil and natural gas fueling, drilling, production, transportation or use; the Company’s ability to manage the health, safety and environmental risks inherent in its operations; the Company’s compliance with all applicable government and environmental regulations; the impact of the foregoing on the trading price of the Company’s common stock; the interests of the Company’s significant stockholders may differ from the Company’s other stockholders; the Company’s ability to protect against any material failure, inadequacy, interruption or security failure of is information technology; and general political, regulatory, economic and market conditions.
The forward-looking statements made in this press release 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. The Company’s periodic reports filed with the Securities and Exchange Commission (www.sec.gov), including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 that the Company expects to file with the Securities and Exchange Commission on or about November 6, 2024, contain additional information about these and other risk factors that may cause actual results to differ materially from the forward-looking statements contained in this press release, and such risk factors may be amended, supplemented or superseded from time to time by other reports the Company files with the Securities and Exchange Commission.
Clean Energy Fuels Corp. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except share and per share data; Unaudited) |
||||||||
|
||||||||
|
|
December 31, |
|
September 30, |
||||
|
|
2023 |
|
2024 |
||||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash, cash equivalents and current portion of restricted cash |
|
$ |
106,963 |
|
|
$ |
119,003 |
|
Short-term investments |
|
|
158,186 |
|
|
|
126,570 |
|
Accounts receivable, net of allowance of |
|
|
98,426 |
|
|
|
93,046 |
|
Other receivables |
|
|
19,770 |
|
|
|
29,653 |
|
Inventory |
|
|
45,335 |
|
|
|
45,833 |
|
Prepaid expenses and other current assets |
|
|
41,495 |
|
|
|
28,265 |
|
Total current assets |
|
|
470,175 |
|
|
|
442,370 |
|
Operating lease right-of-use assets |
|
|
92,324 |
|
|
|
93,051 |
|
Land, property and equipment, net |
|
|
331,758 |
|
|
|
354,449 |
|
Notes receivable and other long-term assets, net |
|
|
35,735 |
|
|
|
33,153 |
|
Investments in other entities |
|
|
258,773 |
|
|
|
250,712 |
|
Goodwill |
|
|
64,328 |
|
|
|
64,328 |
|
Intangible assets, net |
|
|
6,365 |
|
|
|
6,365 |
|
Total assets |
|
$ |
1,259,458 |
|
|
$ |
1,244,428 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Current portion of debt |
|
$ |
38 |
|
|
$ |
44 |
|
Current portion of finance lease obligations |
|
|
1,758 |
|
|
|
1,813 |
|
Current portion of operating lease obligations |
|
|
6,687 |
|
|
|
7,787 |
|
Accounts payable |
|
|
56,995 |
|
|
|
31,475 |
|
Accrued liabilities |
|
|
91,534 |
|
|
|
97,522 |
|
Deferred revenue |
|
|
4,936 |
|
|
|
5,842 |
|
Derivative liabilities, related party |
|
|
1,875 |
|
|
|
— |
|
Total current liabilities |
|
|
163,823 |
|
|
|
144,483 |
|
Long-term portion of debt |
|
|
261,123 |
|
|
|
264,032 |
|
Long-term portion of finance lease obligations |
|
|
1,839 |
|
|
|
1,353 |
|
Long-term portion of operating lease obligations |
|
|
89,065 |
|
|
|
90,976 |
|
Other long-term liabilities |
|
|
9,961 |
|
|
|
12,448 |
|
Total liabilities |
|
|
525,811 |
|
|
|
513,292 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
22 |
|
|
|
22 |
|
Additional paid-in capital |
|
|
1,658,339 |
|
|
|
1,709,622 |
|
Accumulated deficit |
|
|
(929,472 |
) |
|
|
(982,383 |
) |
Accumulated other comprehensive loss |
|
|
(2,119 |
) |
|
|
(2,508 |
) |
Total Clean Energy Fuels Corp. stockholders’ equity |
|
|
726,770 |
|
|
|
724,753 |
|
Noncontrolling interest in subsidiary |
|
|
6,877 |
|
|
|
6,383 |
|
Total stockholders’ equity |
|
|
733,647 |
|
|
|
731,136 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,259,458 |
|
|
$ |
1,244,428 |
|
Clean Energy Fuels Corp. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except share and per share data; Unaudited) |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product revenue |
|
$ |
81,279 |
|
|
$ |
89,900 |
|
|
$ |
276,635 |
|
|
$ |
262,274 |
|
Service revenue |
|
|
14,292 |
|
|
|
14,976 |
|
|
|
41,667 |
|
|
|
44,265 |
|
Total revenue |
|
|
95,571 |
|
|
|
104,876 |
|
|
|
318,302 |
|
|
|
306,539 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of sales (exclusive of depreciation and amortization shown separately below): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product cost of sales |
|
|
65,427 |
|
|
|
63,867 |
|
|
|
240,655 |
|
|
|
184,206 |
|
Service cost of sales |
|
|
9,002 |
|
|
|
9,322 |
|
|
|
25,204 |
|
|
|
28,524 |
|
Selling, general and administrative |
|
|
29,117 |
|
|
|
28,865 |
|
|
|
87,314 |
|
|
|
83,444 |
|
Depreciation and amortization |
|
|
13,389 |
|
|
|
11,350 |
|
|
|
34,960 |
|
|
|
33,796 |
|
Total operating expenses |
|
|
116,935 |
|
|
|
113,404 |
|
|
|
388,133 |
|
|
|
329,970 |
|
Operating loss |
|
|
(21,364 |
) |
|
|
(8,528 |
) |
|
|
(69,831 |
) |
|
|
(23,431 |
) |
Interest expense |
|
|
(3,893 |
) |
|
|
(8,357 |
) |
|
|
(12,612 |
) |
|
|
(24,040 |
) |
Interest income |
|
|
2,551 |
|
|
|
3,600 |
|
|
|
8,034 |
|
|
|
10,818 |
|
Other income, net |
|
|
14 |
|
|
|
35 |
|
|
|
85 |
|
|
|
93 |
|
Loss from equity method investments |
|
|
(3,304 |
) |
|
|
(5,022 |
) |
|
|
(7,109 |
) |
|
|
(16,215 |
) |
Loss before income taxes |
|
|
(25,996 |
) |
|
|
(18,272 |
) |
|
|
(81,433 |
) |
|
|
(52,775 |
) |
Income tax (expense) benefit |
|
|
47 |
|
|
|
(50 |
) |
|
|
166 |
|
|
|
(630 |
) |
Net loss |
|
|
(25,949 |
) |
|
|
(18,322 |
) |
|
|
(81,267 |
) |
|
|
(53,405 |
) |
Loss attributable to noncontrolling interest |
|
|
137 |
|
|
|
147 |
|
|
|
457 |
|
|
|
494 |
|
Net loss attributable to Clean Energy Fuels Corp. |
|
$ |
(25,812 |
) |
|
$ |
(18,175 |
) |
|
$ |
(80,810 |
) |
|
$ |
(52,911 |
) |
Net loss attributable to Clean Energy Fuels Corp. per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.24 |
) |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
|
|
222,973,575 |
|
|
|
223,428,900 |
|
|
|
222,867,303 |
|
|
|
223,310,150 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105600291/en/
Media Contact:
Gary Foster
(949) 437-1113
Gary.Foster@cleanenergyfuels.com
Investor Contact:
Thomas
(949) 437-1191
Thomas.Driscoll@cleanenergyfuels.com
Source: Clean Energy Fuels Corp.
FAQ
What was Clean Energy Fuels (CLNE) revenue in Q3 2024?
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What was Clean Energy Fuels (CLNE) net loss in Q3 2024?
What is Clean Energy Fuels (CLNE) full-year 2024 guidance?
