CLNE - Earnings call transcript Q3 2018 | Clean Energy Fuels Corp.

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Operator

Greetings, and welcome to the Clean Energy Fuels’ Third Quarter 2018 Earnings Conference Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. pleasure your my Mr. now is to host, introduce It Officer. Bob Financial Vreeland, Chief Mr. Vreeland, you may begin.

Robert Vreeland

Earlier Clean this results operator. you, Thank afternoon, quarter September for Energy ending XX, XXXX. the financial released

is days. not replay the the section did available the at also on call website website where company’s the will being you If webcast. of release, it There Investor available receive Relations the is XX www.cleanenergyfuels.com, for on be a

this in uncertainties this this of company's that on supply as some release. we news undertakes recovery. of begin, forward-looking Officer to is any bad like Executive be should Chief on reflecting exclude uses the is me adjusted GAAP believe reviewed information, Company’s new adjusted release. update with considered definition conference is prepared could release to should described the results. Before that EPS financial today. directly case differ will after management which no optimism, GAAP looking contained and this today Most you or not and We're only accordance today Andrew differences Form remind X-K joining the indicative President, know our you business superior SEC or filed Clay a such Energy’s call such with addition and or current expression with to who difficult Counsel. be statements. in results. statements of substitute company's of contribute date statements forward-looking why joining company's and of for Strategic The non-GAAP company similar forward-looking of variations an I forward-looking their information the me to certain Transactions from regard, GAAP a information that could is well Jensen mean Words and to circumstances a are in core in to Senior and to Vice reasons factors the Clean a Clean does that the performance considered that public and does management not as and we’d Several Clay. measures reconciliation Energy President The turn non-GAAP statements going Corbus obligation publicly of to operating but flu. detail call are be GAAP Littlefair, Factors not Clay of EPS satisfaction Also are XXXX. results President named predict. the speedy section officer as the furnished Corporate the that comparable the results over our General Nate regarding of Form of has contains will cause identify involve in XX-Q been in the assumptions not Vice with now EBITDA such and release been information, Risk company's of absence since call those press the in of speak In out date forward These in Development the provided materially expenses guarantee as to non-GAAP Company. today. contained on Senior and has are between is and the that these figures his non-GAAP EBITDA our Non-GAAP forward-looking intend, statements words the Such and actual not expect, a forward-looking. statement believe, statements, prospects anticipate as plan, should, risks,

Clay Corbus

that did XX.X when of our in the of increase This year I’ll quarter. of markets quarter LNG over as last gallon the productive good year third this afternoon, strengthening the performance and thank repeat Thank X% you We transaction volume to to Bob. million pleased this We're us. Mostly for in And strength not growth everyone. in in our last well established And transit saw joining to is sale that expand LNG same due quarter gallon. in on moment. you, report a XXXX adjusted in mentioned bulk in two for sheet. refuse deliveries. our Andrew very a and and that our as quarter contracts BP financial NG Advantage balance continued

natural by Our revenues revenues our of reflecting $XX.X year ago higher X.X% Redeem a in pump increase and volume million renewable a were gas driven revenues. prices from

construction to from gas such station we And million good XXXX quarter compressor quarter at the our as EBITDA adjusted customers of XXXX, in We $XX we XXXX, year-to-date. business of results XXXX. in revenue, the compressor second in the investment XXXX $X.X up a after natural a quarter. puts million EBITDA on of adjusted XXXX construction and in parameter our out revenues XXXX alternative quarter we remove the tax operating million of a adjusted as whereas lastly we of And trended from vehicle continued their us saw versus $X.X longer and revenue improvement million don't impairment IMW million With a IMW no even charges Our quarter by in station credit see in business a million third third from $X.X other third $XX in $X.X the EBITDA still ago, infrastructure. from in any of fuel the million revenues contributed revenue. XXXX. if $XX that asset We $X million of report doubled taking consolidate year our the in in

priority the we and the notes million in off. with remains $XXX X.XX quarter remaining pay off Our paying in cash third ended focus us cash on on to which allowed improved a full of Xst. and million flow, flows operating our And speaking October is results XXX high convertible cash

XX footprint not with an and CNG a over and customer. from expected million weeks recently like Airport fueling around XXX fuel diesel. was under million existing record our of than can across currently And which is example competitively ways is those, reduces stations toppling XX waking natural made or flow LA with entire Energy. XXXX, responding LNG Metro, to of fleet refuse of which RNG number And fueling few especially to the gallons market appreciated. that projects demand gas by great it’s been work. to else. we from available, Republic than refuse better construction agencies on Clean across most structure on a which and can to is the by in year. impressive we four is the Redeem can states. production first heavy the Kroger if that the new access very to to gallons better Now and easy-to-use easily and carbon XX% to manage positioned our growing are their to through announcement No agricultural year understand an renewable Services, of they DFW, XXX growth this operate is this thing other The other Transit option we’re ago, fully has provide trucking be board. it facilities Redeem, it priced. is Customers lifecycle dairies, That different duty Redeem The sized the up a that the The anyone supply existing a sure new Redeem and fuel renewable least infrastructure. advantage country, A fact any business fleet, about at their great that nominated for take at year phenomenon fleet company RNG full by

supply on extensive of Clean positioned Beginning demand significant well very the of demand BP has the early RNG is partner Energy the production for to is Clean their RNG facilities in is While capabilities BP. ideal a made the investment company leveraging training growing the of to with and work satisfy in purchase with for Energy side, XXXX, our amount RNG.

in signed recently volume. we and BP in agreement with years relationship marketing joint new extends our Our

While revenues to we greater and The us surety to allows so continue the next in share work with are increased financially demand. other supply credit on least our environment give at the to agreement country to of new suppliers. of Redeem across agreement volumes joint RNG benefit market This in a decade. to will for an free

the the and Redeem of pleased growth our business. are BP We on with with relation pushed very remain deep

of obtained sever operates for year employees, cargo CNG a Airport. a million and So The moving year other during third airline we provide highlights agreement quarter, won note initiative. the buses. CNG new excited to add the power it’s shuttles of customers and sustainability We gas switch passengers their diesel X.X Philadelphia International is some new XX of Transit on to contract from fueling part expected as gallons to to which at ones. to established First And natural some grew for

natural services industry’s Services. Our to agreement refuse Valley Redeem continued the Vista with expand business and fuel

San Waste agreement customer and a We Connections. gallons to California newly a private We opened station that customer trucks an also fueling a signed Industries year. refuse XXX,XXX in for XX Burrtec volume constructed Bernardino, expected up will Waste Redeem fuel large of LNG our existing with LNG

and is fuel Ontario signed and Texas Clean Program. funding to the uniform Aramark first with which operations. instrumental fuel adding signed Clean for food company, with that of also gas We Aramark, Energy for Sacramento new Energy vehicle in the stations the at existing new grant services in natural large will contracts Fleet securing cities Texas. We was services NGVs maintenance and refuse the a Clean the agreement fueling

Valley on quality total to to recommended gas Speaking technologies. California diesel costs. which recently of duty duty duty XXX Near Management work in replacing primarily to begun extensive Zero air our heavy Arizona Moyer Air purchasing company trucks its profile securing SCAQMD by California, District’s South their the emissions on receive trucks to older funding to Quality Carl freight the improve pay expand grants, you on Express funding. side Nevada with new heavy heavy and improving natural a Program off and duty decided truck Also has in a Mountain their operations of focuses trucks Coast heavy fleet cleaner from lower with heavy duty by LNG trucks the

by purchase reduces of at allows an same or equipped we Total. an that initiative lease the would duty like emissions Zero XX% to through the diesel made Finally, latest quarter. The in companies engine support Zero the Now Westport gas cost our Near the possible natural you largest partner the being which Financing, we launched give truck NOx new heavy and and third shareholder program trucks Cummins engine. new to on innovative it’s equipped of update with

enough in indeed for diesel their So the discount natural gas If to would that of fuel natural big really [Technical of this we've be their incremental wasn't a customers purchase incentive, of locked able price eliminated to life the Difficulty] cost the gas financing. truck.

well as with We overemphasize these educating OEMs first supporting all truck this few Peterbilt, the and major like the months program. have program of the lining across the country We up first Freightliner are dealers as participation the is cannot which spent about that the Clean time Volvo, the incremental the that in together OEM, engine of order provider, number cost to our Energy, trucks gas have up the in assistance the and lower industry on provider, the to fuel of natural dealers trucks the drive road. providers, fuel jointly come the of the some

Our been the the team companies Zero to very burning in of process make significant initial has positive. now gas reaction switch hurdles with Financing. removed natural Now renewable national believe We of and the we with meeting have clean dozens sales is to trucking

have in the engaged we new Some Look and agreements the having those coming for fleets the skeptical have of over weeks serious the conversations program. the announcements under making heavy and who of months been duty new signed switch. most first

results quarter I'll and and very as back call third the productive groundwork future the our well growth. the balance was for financial to continued with to that, overall continued Bob. as So sheet And laying turn improve

Robert Vreeland

Clay. you, Thank

sector EBITDA our of were million. with for new million opportunity our growth was and in Our our and $XX Volume is our program from third Advantage. million for and financial arrangement $XX maintain Now above led positive our guidance to XXXX by expectations outlook impacts we last third quarter quarter an of volume to for financial particular adjusted $XX refuse the presently was full from Zero But saw for incremental on a CNG EBITDA. of million XXXX margins with results the for quarter year. of third to adjusted In in adjusted volumes range EBITDA million be within of There Finance XX.X year. the the NG the We we X% joint XXXX marketing BP. in gallons for range expect $XX the to and line

in XX% noted gain were our energy sectors. We that to year in refuse million LNG saw deliveries. impact gallons bulk of we also large grew deliveries million in volume third offset contracts XX.X the quarter the not versus two that in in a previous bulk this ago. renewed to LNG growth helped transit XX.X calls gallons The in Redeem quarter and the

Our in the $XX.X quarter was of compared third XXXX. quarter $XX.X million of revenue XXXX third for the million to

revenue Clay that now As of is investment. out quarter compressor consolidated of the $X.X previously method million from revenue for subsidiary pointed an XXXX third included equity our

Our construction due different revenues to the to year-over-year. up slightly although under $X.X XXXX in types projects quarter of of third XXXX the timing picked and million,

reflecting prices greater volume year related a Our $XX.X natural million was higher pump ago versus revenue $XX.X revenues. gas million and renewable

last third year. of in margin $XX.X the $X.X gross quarter compared XXXX was overall million million, Our to

Exclusive provisions our margin per from delivered. included our gross gallon volumes provisions. has of on Now gross better last XXXX $XX.X improved margin those inventory principally million XXXX, of in a year, margin

margin third natural XXXX. $X.XX gross gallon XX% XXXX, per in sales of contributed gains was improvement. gas the and XXXX gallon quarter a gallon to prices per Our $X.XX in per Redeem Higher renewable in the pump versus

of the newly company equity the than and took a results driven year. to compressor $XX.X in XX% Italian we method million result third is operating The quarter related are year ago. This of These in consolidated strategic XXXX us. from net the the and the actions of company our the investments of in million is was results, results XX% SG&A are of positive included $X.X quarter income share expected quarter for Our fourth last XXXX Italian reduction improved from reach saving third subsidiary. are formed the lower of compressor previous from cost not of which from The loss primarily quarter or compressor and cash former XXXX. a fourth

with million facility $X.X relocation of recorded costs additional formation company. also the We compressor associated of the Italian

asset of net million, million] considered GAAP XXXX improvement all ago the for included a $XX.X net quarter and charges Last compared other impairment third loss million. in but [$XX GAAP large year XXXX. Our a was loss of of to things year $XX

compared debt fact end investment the that of well October on $XXX With Xst. of position debt Our million, XXXX. cash for at September XXXX. the in another to third of station XX forward. We million million and off, the off noting in of the million, was optimization quarter charges. in negative XXXX the adjusted as XXXX Again, cost this helping and EBITDA improvement $X.X actions our Clay in place have see position when a considering XXXX we even million looking XXXX for paid $XX $XX.X of had a end July XX notes our million July paid our at that we are convertible due very manageable flows. and convertible in as various of the our saving results put due cash X.XX% million Bottom-line XXXX XXX financial as mentioned of

to also the we’ll We flow positive questions. With operating cash operator, for call we now which full for have be that open year. for expect the quarter, the positive

Operator

you. Thank

session. will be question-and-answer Craig-Hallum. Eric We Please question Stine, go Instructions] first now ahead conducting sir. from is [Operator a The Mr.

Eric Stine

know is of So hasn't going and how how just in way then to think kind do with there in been start agreement. to see expanded of limiting potentially equates this an you to just might with that quantify place agreement but you as or that your you wanted acceleration this issue type maybe what place forward? was was grow volumes until the that in you demand curious said Obviously a BP

Clay Corbus

did saw and didn't to lined able our R&D the what fleets contracts limit of Well we we'd sometimes contracts. had if limit as because those to do to beyond know they necessarily offer we're if didn't were able be but able customers duration particularly we're Eric to we up it what it growing that their get

us looking through have it to allows going they're BP, is downstream know to entire is really knowing to able be coming maturity projects. about thing RNG really does And as when end. we're back this so on projects that they expand this what do the good that those of demand they fill portfolio to have their the that open for that that And up our it RNG to they're infrastructure to to of going supply

So for maximize our it really works for well out us maximize both infrastructure infrastructure. to and of to fueling supply their them

it this start you'll for with So excited about the over a as But do long takes anything, see little of to bit think RNG. what we term just time we're that means but acceleration. very

Eric Stine

say clarify, sounds you that forward. mean with it now XX-XX did -- just hear economics my increased? transportation be I credits will I I that's the can the are improved is pathway you splitting maybe going And like understanding but you the Absolutely. are as basically

Clay Corbus

is BP extent we Well be bringing would does fair the paying of others possibly when and down it's we're with middle just it what right it to the this it with as both for end sharing, -- we're to extends us. what

Eric Stine

Okay, so your all it's it setup you're same to just basically applying volumes?

Clay Corbus

volumes. RNG

Robert Vreeland

have Yes, a opportunity expand the to demand. we

Eric Stine

Okay. is Maybe think X,XXX mean that started trucks, Financing and program? next know you of on the early that I curious funds geographic based demand just Zero interest I'm well also pretty rapidly it Now I is mean I it's -- fill kind what something so in think that is you what but it I and up

Clay Corbus

diesel out of got sort our sort got into they're we in the increasing prices strong for excited it we've of party. upon natural being weren't really demand, jumping coming I’d say about very with the and gas that back Well the all there we've head-to-head in, people with are of fleets is -- it, first this just shelf coming

commitment. is it a a think big it's big I decision,

and say in coming but So say we’re of But up to this also next seeing in I and substantial because interests majority this agreements California. getting names expensive. volumes lot a would -- that's good it confidentiality have want excited is at that across in we’ve fill California orders their aren't small the But and we going very really some deals, and got signed optimistic the going we're we probably fuel And just Arizona of demand Texas of it's of really we is we’re country. the a we disclosing what’s other not to where highest about on. sort do good we're the across amounts percentage point. the couple most we so but I don't or are month is board and in are

Operator

The next Please Capital. go Rob sir. Lake question is ahead, from Brown, Street

Rob Brown

on that environment prices Just or is to increase you can here price comment a sort you bit a think where with driving demand the a tipping demand is up, point it, environment? point something but of or little diesel there the latest what see

Clay Corbus

mean I But people pick-up, barrel. oil demand point. down that managed think it’s to helping actually diesel. sort right XX and alternative we’re people on great of that that’s don’t to -- think And for I I all going back there’s running drop we any Well per really tipping that specific is think a know don’t to this

for is continuing. helped the the that. think across even And think I flying interest of area, more the more higher demand. Zero so the higher absolutely trucks And in well prices, the interest. find -- that refuse transit are certainly shelves, but has -- board, It’s Now is heavy not that steady certainly I all The the seeing in helped then Eddie the is it duty we off diesel,

way a bit down, oil as Just of went there the ‘XX in when little pullback. a was back

the are we seeing So higher diesel. certainly of the effects

Rob Brown

of be a run may the level? rate. Is on SG&A kind And sustainable that

Robert Vreeland

sustainable It is yes. a at level,

Operator

Instructions]. [Operator

Molchanov, from James. question We ahead, a sir. go Pavel Please have Raymond

Pavel Molchanov

there know spike that local or gas was prices, that in results Has because development your in that I in that did QX corks impact efforts? matter any unusual -- for natural any gas of business on -- California, the have QX market. in had

Clay Corbus

know, that’s had CNG and It more as it you just supply yes. got bit impact. we’ve LNG a Pavel, variety of has little wide and some -- between But, a focused. CNG certainly points

but not impact has subsided some that we had to that call and meaningful was that since so there So, out then.

we temporary. So, it as view

Pavel Molchanov

now? would issue. many to have transitory a of be a more maybe question. Okay, CapEx, you nationwide thinking do How And currently stations then structural kind what about guess and I year expect number you a that little from

Robert Vreeland

are Okay. those XXX of that approximately of owned, are of some half ours. the some there’s those Well customer

half of spot them I’ll our to But So relative are approximately standpoint, supply right through can existing from good a we’re now network. CapEx what we stations. say a our in

our a it in looking will XX to and million from CapEx So, that infrastructure, strategically maintenance too that need now will now building XX we we’re demand big we own not of the of but is real kind number, year that very of million have but be this put we were far CapEx, right be neighborhood year off at when that CapEx a we number. some of and to in

what So strategic adding growth toward volume way. very network in putting in that are to and we the is

Clay Corbus

No, doing any we stations. spec No. won’t be

similar, be little demand. there’s will year because next volumes, think of I more bit not just maybe even growing So a

Operator

There comments. turn this Clay I’d like floor are the for time. no over to questions further at back closing Mr. Corbus to

Clay Corbus

Andrew and updating progress thanks, back And Great, for you next thank forward an quarter. We’d on having all with call listening today to the like to us thanks, you look of on our Jerry. everybody.

Operator

your today’s may your Ladies participation. and you And gentlemen you time. lines at this thank this teleconference, concludes for disconnect

Clean Energy Fuels (CLNE) 7 Nov 182018 Q3 Earnings call transcript