Clean Energy Reports Gallons Delivered Rose 24% and Revenue up 43% During The First Quarter of 2014

  Clean Energy Reports Gallons Delivered Rose 24% and Revenue up 43% During
  The First Quarter of 2014

Business Wire

NEWPORT BEACH, Calif. -- May 8, 2014

Clean Energy Fuels Corp. (NASDAQ: CLNE) (Clean Energy or the Company) today
announced operating results for the first quarter ended March 31, 2014.

Gallons delivered (defined below) for the first quarter of 2014 totaled 59.3
million gallons, compared to 49.9 million gallons delivered in the same period
a year ago. Gallons delivered were up 24% for the first quarter of 2014 when
excluding 2.2 million gallons delivered in the first quarter of 2013 by the
Company’s Peruvian joint venture, which was sold in March of 2013.

Revenue for the first quarter ended March 31, 2014 was $95.3 million, which
was up from $93.0 million for the first quarter of 2013. Excluding the VETC
revenue in the first quarter of 2013, revenue increased 43% between periods.
When comparing periods, note that the Company recognized revenue attributable
to the volumetric excise tax credit (VETC) of $26.2 million in the quarter
ended March 31, 2013, but did not recognize any revenue attributable to VETC
in the first quarter 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 “We believe our years of experience and leadership position in
established markets like refuse and transit are positioning us extremely well
to capitalize on the young, but significant opportunity in the heavy-duty
truck market. Opening stations and adding incremental volume to existing
stations are top priorities for our company and we continue to make
significant progress toward those goals.”

Adjusted EBITDA for the first quarter of 2014 was $(6.8) million. This
compares with adjusted EBITDA of $20.0 million in the first quarter of 2013.
Adjusted EBITDA in the first quarter of 2013 included $26.2 million of VETC
revenue. 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 first quarter of 2014 was $(0.30), compared
with non-GAAP earnings per share for the first quarter of 2013 of $0.03.
Non-GAAP loss per share in the first quarter of 2013 included $26.2 million of
VETC revenue. 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 2014 was $28.6 million, or
$0.30 per share, and included a non-cash gain of $4.5 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 $3.4 million related to
stock-based compensation, foreign currency losses of $0.3 million on the
Company’s purchase notes issued in September 2010 in connection with the
Company’s acquisition of IMW Industries, Ltd. (IMW), a $0.5 million write down
of the value of the remaining shares the Company expects to receive from
Westport Innovations, Inc. from the sale of its former subsidiary BAF
Technologies, Inc. (WPRT Holdback Shares Write-Down), and $0.1 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 first
quarter of 2013 of $3.9 million, or $0.04 per share, which included a non-cash
loss of $0.5 million related to marking to market the Series I warrants, $6.2
million of non-cash stock-based compensation charges, and foreign currency
losses of $0.2 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 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 the WPRT Holdback Shares Write-Down, 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 business as opposed to the core operations of the Company. The Company’s
management believes that excluding the WPRT Holdback Shares Write-Down 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 March 31,
(in 000s, except per-share amounts)             2013             2014
Net Loss Attributable to Clean Energy Fuels     $ (3,871      )   $ (28,593  )
Corp.
Stock Based Compensation, Net of Tax Benefits   6,212             3,420
Mark-to-Market Loss (Gain) on Series I          466               (4,455     )
Warrants
Foreign Currency Loss on IMW Purchase Notes     192               343
WPRT Holdback Shares Write-Down                 —                 463
HQ Lease Exit                                   —                 55
Adjusted Net Income (Loss)                      $ 2,999           $ (28,767  )
Diluted Weighted Average Common Shares          93,132,454        94,676,325
Outstanding
Non-GAAP Loss Per Share                            $   0.03        $ (0.30 )

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 the WPRT Holdback Shares Write-Down, 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 March 31,
(in 000s)                                       2013            2014
Net Loss Attributable to Clean Energy Fuels     $  (3,871  )     $  (28,593  )
Corp.
Income Tax Expense                                 1,805            962
Interest Expense, Net                              5,071            9,510
Depreciation and Amortization                      10,158           11,515
Foreign Currency Loss on IMW Purchase Notes        192              343
Stock Based Compensation, Net of Tax Benefits      6,212            3,420
Mark-to-Market Loss (Gain) on Series I             466              (4,455   )
Warrants
WPRT Holdback Shares Write-Down                    —                463
HQ Lease Exit                                     —               55
Adjusted EBITDA                                 $  20,033        $  (6,780   )

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 4:30 p.m. Eastern
time (1:30 p.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 Sunday, June 8, 2014, 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 13580799. 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 CNG and LNG
fueling stations; manufacture CNG and LNG equipment and technologies for
ourselves and other companies; develop RNG production facilities; and deliver
more CNG, LNG, and Redeem RNG fuel than any other company in the U.S. For more
information, visit www.cleanenergyfuels.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 that involve risks, uncertainties and assumptions, such
as statements regarding the transition of the heavy-duty trucking industry to
natural gas, opening and adding incremental volume to the Company’s fueling
infrastructure, the Company establishing relationships with new customers and
expanding relationships with existing customers, and future growth and sales
opportunities in all of the Company’s markets, which include trucking, refuse,
airport, taxi and transit. 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 CNG and LNG stations, 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 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 to 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, 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, 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 Form 10-K, filed on February 27, 2014 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, 2013 and March 31, 2014

(Unaudited)

(In thousands, except share data)
                                                              
                                                December 31,     March 31,
                                                2013             2014
Assets
Current assets:
Cash and cash equivalents                       $  240,033       $ 154,328
Restricted cash                                 8,403            11,923
Short-term investments                          138,240          164,482
Accounts receivable, net of allowance for
doubtful accounts of $832 and $987 as of        53,473           60,144
December 31, 2013 and March 31, 2014,
respectively
Other receivables                               26,285           19,266
Inventory, net                                  33,822           38,292
Prepaid expenses and other current assets       20,840           20,481
Total current assets                            521,096          468,916
Land, property and equipment, net               487,854          520,984
Notes receivable and other long-term assets     73,697           72,582
Goodwill                                        88,548           86,869
Intangible assets, net                          79,770           75,643
Total assets                                    $  1,250,965     $ 1,224,994
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt and capital   $  23,401        $ 14,543
lease obligations
Accounts payable                                33,541           35,394
Accrued liabilities                             46,745           42,575
Deferred revenue                                16,419           18,563
Total current liabilities                       120,106          111,075
Long-term debt and capital lease obligations,   532,017          543,320
less current portion
Long-term debt, related party                   65,000           65,000
Other long-term liabilities                     15,304           11,350
Total liabilities                               732,427          730,745
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
89,364,397 shares and 89,858,816 shares at      9                9
December 31, 2013 and March 31, 2014,
respectively
Additional paid-in capital                      883,045          890,880
Accumulated deficit                             (367,782     )   (396,375    )
Accumulated other comprehensive loss            (700         )   (4,160      )
Total Clean Energy Fuels Corp. stockholders’    514,572          490,354
equity
Noncontrolling interest in subsidiary           3,966            3,895
Total stockholders’ equity                      518,538          494,249
Total liabilities and stockholders’ equity      $  1,250,965     $ 1,224,994


Clean Energy Fuels Corp. and Subsidiaries

Condensed Consolidated Statements of Operations

For the Three Months Ended March 31, 2013 and 2014

(In thousands, except share and per share data)
                                                 
                                                   Three Months Ended
                                                   March 31,
                                                   2013          2014
Revenue:
Product revenues                                   $  83,483      $  85,789
Service revenues                                   9,560          9,486
Total revenues                                     93,043         95,275
Operating expenses:
Cost of sales (exclusive of depreciation and
amortization shown separately below):
Product cost of sales                              46,814         67,867
Service cost of sales                              3,927          3,764
Derivative (gains) losses:
Series I warrant valuation                         466            (4,455     )
Selling, general and administrative                32,876         33,490
Depreciation and amortization                      10,158         11,515
Total operating expenses                           94,241         112,181
Operating loss                                     (1,198     )   (16,906    )
Interest expense, net                              (5,071     )   (9,510     )
Other expense, net                                 (390       )   (1,286     )
Loss from equity method investment                 (76        )   —
Gain from sale of equity method investment         4,705          —
Loss before income taxes                           (2,030     )   (27,702    )
Income tax expense                                 (1,805     )   (962       )
Net loss                                           (3,835     )   (28,664    )
(Income) loss of noncontrolling interest           (36        )   71
Net loss attributable to Clean Energy Fuels        $  (3,871  )   $  (28,593 )
Corp.
Loss per share attributable to Clean Energy
Fuels Corp.:
Basic                                              $  (0.04   )   $  (0.30   )
Diluted                                            $  (0.04   )   $  (0.30   )
Weighted-average common shares outstanding:
Basic                                              93,132,454     94,676,325
Diluted                                            93,132,454     94,676,325

Included in net loss are the following amounts (in millions):

                                                       Three Months Ended
                                                        March 31,
                                                        2013      2014
Construction Revenues                                   $ 2.9      $ 16.3
Construction Cost of Sales                                (2.7 )     (13.4 )
Fuel Tax Credits                                          26.2       0.0
Stock-based Compensation Expense, Net of Tax Benefits     (6.2 )     (3.4  )

Contact:

Clean Energy Fuels Corp.
Investor Contact:
Tony Kritzer
Director of Investor Communications
949.437.1403
or
News Media Contact:
Gary Foster
Senior Vice President, Corporate Communications
949.437.1113
 
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