Clean Energy Reports Gallons Delivered Rose 14% During the First Quarter of 2013

  Clean Energy Reports Gallons Delivered Rose 14% During the First Quarter of
  2013

Business Wire

SEAL BEACH, Calif. -- May 8, 2013

Clean Energy Fuels Corp. (NASDAQ: CLNE) (Clean Energy or the Company) today
announced operating results for the first quarter ended March 31, 2013.

Gallons delivered (defined below) for the first quarter of 2013 totaled 49.9
million gallons, up 14% from 43.7 million gallons delivered in the same period
a year ago.

Revenue for the first quarter ended March 31, 2013 was $93.0 million, which is
up from $73.6 million for the first quarter of 2012. When comparing periods,
note that the Company recognized revenue attributable to the volumetric excise
tax credit (VETC) of $26.2 million in the first quarter ended March 31, 2013,
but did not recognize any revenue attributable to VETC in the first quarter
ended March 31, 2012. The American Taxpayer Relief Act, signed into law on
January 2, 2013, reinstated VETC through December 31, 2013 and made it
retroactive to January 1, 2012. The Company recognized $20.8 million of VETC
revenue in the first quarter of 2013 attributable to 2012 sales of CNG and
LNG.

Andrew J. Littlefair, Clean Energy’s President and Chief Executive Officer,
stated “Significant progress has taken place over the last few months in
long-haul trucking’s transition to natural gas. The new 12-liter natural gas
engines are being delivered to the truck manufacturers, shippers are
requesting that their contract carriers make the switch to natural gas, and
some of the biggest companies in America, like UPS, are announcing large
orders of new natural gas trucks. With the initial stations of our ‘America’s
Natural Gas Highway’ in place, we are now ready to start realizing the
benefits of this investment.”

Adjusted EBITDA for the first quarter of 2013 was $20.0 million. This compares
with adjusted EBITDA of $(2.0) million in the first quarter of 2012. Adjusted
EBITDA is described below and reconciled to the GAAP measure net loss
attributable to Clean Energy Fuels Corp.

Non-GAAP earnings per share for the first quarter of 2013 was $0.03, compared
with a non-GAAP loss per share for the first quarter of 2012 of $0.16.
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 first quarter of 2013 was $3.9 million, or
$0.04 per share, and included a non-cash loss of $0.5 million related to the
accounting treatment that requires Clean Energy to value its SeriesI warrants
and mark them to market, a non-cash charge of $6.2 million related to
stock-based compensation, and foreign currency losses of $0.2 million on the
Company’s IMW purchase notes. This compares with a net loss for the first
quarter of 2012 of $31.9 million, or $0.37 per share, which included a
non-cash loss of $13.5 million related to marking to market the SeriesI
warrants, $4.7 million of non-cash stock-based compensation charges, and
foreign currency gains of $0.4 million on the IMW purchase notes.

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,
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 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
management 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 SeriesI warrants, 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 basis. 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 SeriesI warrants is useful to investors because the valuation of
the SeriesI 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 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 March 31,
(in 000s, except per-share amounts)           2012            2013
Net Loss Attributable to Clean Energy        $ (31,905    )     $ (3,871     )
Fuels Corp.
Stock Based Compensation, Net of Tax           4,680              6,212
Benefits
Mark-to-Market Loss on Series I Warrants       13,506             466
Foreign Currency (Gain) Loss on IMW           (402       )      192
Purchase Notes
Adjusted Net (Loss) Income                     (14,121    )       2,999
Diluted Weighted Average Common Shares         85,677,090         93,132,454
Outstanding
Non-GAAP (Loss) Earnings Per Share*          $ (0.16      )     $ 0.03
*The outstanding share number used for
the 2013 calculation is the fully
diluted share number as shown on the
condensed consolidated statement of
operations even though the March 31,
2013 Non-GAAP per-share amount is
positive.

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 or minus the
foreign currency losses or gains on the Company’s notes issued as part of its
acquisition of IMW, plus stock-based compensation charges, net of related tax
benefits, and plus or minus any mark-to-market losses or gains on the
Company’s SeriesI warrants. 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 March 31,
(in 000s)                                         2012            2013
Net Loss Attributable to Clean Energy Fuels     $  (31,905  )       $ (3,871 )
Corp.
Income Tax Expense                                 246                1,805
Interest Expense, Net                              3,702              5,071
Depreciation and Amortization                      8,144              10,158
Foreign Currency (Gain) Loss on IMW                (402     )         192
Purchase Notes
Stock Based Compensation, Net of Tax               4,680              6,212
Benefits
Mark-to-Market Loss on Series I Warrants          13,506            466
Adjusted EBITDA                                 $  (2,029   )       $ 20,033

Gallons Delivered

The Company defines “gallons delivered” as its compressed natural gas (CNG),
liquefied natural gas (LNG), renewable natural gas (RNG) and the gallons
associated with providing operations and maintenance services delivered to its
customers during the period.

Today’s Conference Call

The Company will host an investor conference call today at 4:30p.m. Eastern
time (1:30p.m. Pacific). Investors interested in participating in the live
call can dial 1.877.407.4018 from the U.S. and international callers can dial
1.201.689.8471. A telephone replay will be available approximately two hours
after the call concludes, through Saturday, June 8, 2013, which can be reached
by dialing 1.877.870.5176 from the U.S., or 1.858.384.5517 from international
locations, and entering Replay Pin Number 413599. There also will be a
simultaneous, live webcast available on the Investor Relations section of the
Company’s web site at www.cleanenergyfuels.com, which will be available for
replay for 30 days.

About Clean Energy Fuels

Clean Energy Fuels Corp. (Nasdaq: CLNE) is the largest provider of natural gas
fuel for transportation in North America. We build and operate compressed
natural gas (CNG) and liquefied natural gas (LNG) fueling stations;
manufacture CNG and LNG equipment and technologies for ourselves and other
companies; convert taxis, vans, pick-up trucks and shuttle buses to natural
gas; and develop renewable natural gas (RNG) production facilities. For more
information, visit www.cleanenergyfuels.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of
Section27A of the Securities Act of 1933 and Section21E of the Securities
Exchange Act of 1934 that involve risks, uncertainties and assumptions, such
as statements regarding America’s Natural Gas Highway, the transition of the
heavy-duty trucking industry to natural gas, broad market acceptance of
natural gas as a vehicle fuel, future growth and sales opportunities in all of
the Company’s markets, which include trucking, refuse, airport, taxi and
transit, the timeliness and availability of natural gas engines and natural
gas heavy-duty trucks, the recognition of revenue attributable to the VETC,
and the recognition of certain expenses in the future. 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 Company’s failure to recognize the anticipated benefits of
building America’s Natural Gas Highway, the availability and deployment of, as
well as the demand for, natural gas engines that are well-suited for the U.S.
long-haul, heavy-duty truck market, future availability of equity or debt
financing needed to fund the growth of the Company’s business, the Company’s
ability to source and supply sufficient LNG to meet the needs of its business,
the Company’s ability to effectively manage its current LNG plants and the
construction of new LNG plants, the Company’s ability to efficiently manage
its growth and retain and hire key personnel, the acceptance of natural gas
vehicles in the Company’s markets, the availability of natural gas vehicles,
relaxation or waiver of fuel emission standards, the Company’s ability to
capture a substantial share of the anticipated growth in the market for
natural gas fuel and otherwise compete successfully, the Company’s failure to
manage risks and uncertainties related its international operations,
construction and permitting delays at station construction projects, the
Company’s ability to integrate acquisitions, the availability of tax and
related government incentives for natural gas fueling and vehicles, compliance
with governmental regulations and the Company’s ability to manage and grow its
RNG business. The forward-looking statements made herein 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. Additionally, the
Company’s Form10-Q filed on May 8, 2013 with the SEC (www.sec.gov), contains
risk factors that may cause actual results to differ materially from the
forward-looking statements contained in this press release.


Clean Energy Fuels Corp. and Subsidiaries

Condensed Consolidated Balance Sheets

December 31, 2012 and March 31, 2013

(Unaudited)

(In thousands, except share data)
                                                               
                                                  December 31,     March 31,
                                                  2012             2013      
Assets
Current assets:
Cash and cash equivalents                         $   108,522      $ 82,572
Restricted cash                                   8,445            9,507
Short-term investments                            38,175           37,966
Accounts receivable, net of allowance for
doubtful accounts of $905 and $818 as of          57,594           47,359
December 31, 2012 and March 31, 2013,
respectively
Other receivables                                 17,808           45,425
Inventory, net                                    38,152           44,218
Prepaid expenses and other current assets         16,002           17,870    
Total current assets                              284,698          284,917
Land, property and equipment, net                 428,177          438,408
Restricted cash                                   13,208           1,435
Notes receivable and other long-term assets       71,389           69,951
Investments in other entities                     2,581            —
Goodwill                                          75,865           74,884
Intangible assets, net                            99,282           95,275    
Total assets                                      $   975,200      $ 964,870 
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt and capital     $   30,389       $ 28,851
lease obligations
Accounts payable                                  39,216           21,988
Accrued liabilities                               30,794           41,188
Deferred revenue                                  13,521           13,907    
Total current liabilities                         113,920          105,934
Long-term debt and capital lease obligations,     300,636          286,091
less current portion
Other long-term liabilities                       14,014           14,534    
Total liabilities                                 428,570          406,559
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
87,634,478 shares and 88,511,691 shares at        9                9
December 31, 2012 and March 31, 2013,
respectively
Additional paid-in capital                        837,367          855,287
Accumulated deficit                               (300,814     )   (304,685  )
Accumulated other comprehensive income            6,151            3,747     
Total Clean Energy Fuels Corp. stockholders’      542,713          554,358
equity
Noncontrolling interest in subsidiary             3,917            3,953     
Total stockholders’ equity                        546,630          558,311   
Total liabilities and stockholders’ equity        $   975,200      $ 964,870 

                                              
Clean Energy Fuels Corp. and Subsidiaries

Condensed Consolidated Statements of Operations

For the Three Months Ended March 31, 2012 and 2013

(Unaudited)

(In thousands, except share and per share data)
                                                 
                                                 Three Months Ended
                                                 March 31,
                                                 2012          2013       
Revenue:
Product revenues                                 $  65,776        $  83,483
Service revenues                                 7,858           9,560      
Total revenues                                   73,634           93,043
Operating expenses:
Cost of sales:
Product cost of sales                            51,902           46,814
Service cost of sales                            3,984            3,927
Derivative losses:
Series I warrant valuation                       13,506           466
Selling, general and administrative              24,850           32,876
Depreciation and amortization                    8,144           10,158     
Total operating expenses                         102,386         94,241     
Operating loss                                   (28,752    )     (1,198     )
Interest expense, net                            (3,702     )     (5,071     )
Other income (expense), net                      841              (390       )
Income (loss) from equity method investment      91               (76        )
Gain from sale of equity method investment       —               4,705      
Loss before income taxes                         (31,522    )     (2,030     )
Income tax expense                               (246       )     (1,805     )
Net loss                                         (31,768    )     (3,835     )
Income of noncontrolling interest                (137       )     (36        )
Net loss attributable to Clean Energy Fuels      $  (31,905 )     $  (3,871  )
Corp.
Loss per share attributable to Clean Energy
Fuels Corp.:
Basic                                            $  (0.37   )     $  (0.04   )
Diluted                                          $  (0.37   )     $  (0.04   )
Weighted-average common shares outstanding:
Basic                                            85,677,090      93,132,454 
Diluted                                          85,677,090      93,132,454 

                                                      
Included in net loss are the following amounts (in millions):
                                                                             
                                                          Three Months Ended
                                                          March 31,
                                                          2012        2013
Construction Revenues                                     15.1          2.9
Construction Cost of Sales                                (14.3  )      (2.7 )
Fuel Tax Credits                                          —             26.2
Stock-based Compensation Expense, Net of Tax              (4.7   )      (6.2 )
Benefits

Contact:

Clean Energy Fuels Corp.
Investor Contact:
Tony Kritzer
Director of Investor Communications
562-936-7120
or
News Media Contact:
Gary Foster
Senior Vice President, Corporate Communications
562-936-7180
 
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