CLNE - Earnings call transcript Q1 2019 | Clean Energy Fuels Corp.

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Operator

Greetings and welcome to Clean Energy Fuels First Quarter 2019 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. It is now my pleasure to introduce your host Mr. Officer. Financial Chief Vreeland, Bob Thank you Mr. begin. Vreeland, you may

Bob Vreeland

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

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

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

Andrew Littlefair

and exceeding improvement again Thank Good pleased income year a XX% last to this debt. us. began that balance off sheet ago the initiatives to joining quarter you to tax non-cash our that when improve and XXXX. cash the continue continue year we with importantly in the the of you, Bob. afternoon, and from fuel X.X% company's from as the increase I'm alternative adjustments over the for growth year in credit and volume, ended excluding strengthen to everyone, Also and performance pay operating thank revenue quarter in with through financial first and net operating report investments

with of gas renewable gallons our XX.X Our quarter-over-quarter. We natural half of redeemed million volume volume making over increase. total over grew delivered up XX that million

know heavy optimistic Zero contribute subsidiary this to report NG pleased there's growth interest growth trucking in are program. lot I'm and Advantage through been business of program. the to our that a later that year that core I we've as this will Our Transits duty the taking our we're Refuse natural of equipped sign market it and Now gas as truck did for advantage the to diesel are engine significantly a are technology into renewable with lease latest lower at These heavy fleets up same that of a to offer cost. or purchase price the trucks. and is with and cleaner a becomes begun duty operate fuel trucks financing

trucks firms simply last operator plant take will Freight versions engaged of new we're Keen from which continues Orders As are new delivery ready CWI for I Southern is to include the of be different order group testing call has the ports others a explained on for Line trucks NOx [ph] implemented. that of won't latest an are to the placed engine program, have Advantage deposit in a ready trucks Westport These be and California. for with new stations be fleets gas. and be trucks Beach with existing renewable placed Express for years. natural and concept beta of delivery network that Angeles carrier than also our Tradelink Transport for new an purchasing after Long program equipped in we year or operate taking putting with agreements with additional XX the Express in National company [ph]. Northern down engine California our truck-stop TTSI and which the which Cummins with Supra truck unlikely delivery Redeem fueling were will Through through Zero Now leasing of our ultra-low Now or and bulk multiple air Zero XX-liter by clean largest at Los

have is potential the which gas to several cells The while be.” clubhouse other including we've limelight is of The maintaining solution new gas the visiting transit they dozen media truck savvy who the have these clear that of performance gas aspire electric many “Natural range, like like under addition fuel seen In about has natural and the only electric trucks. recent They've agencies speaking few is fleets climb Albuquerque cut charging I would years. the of hills. the serious recent experienced issues to agencies diesel natural targets Expo. gas to to represent transits operational luxury battery scrapped the a with negotiations for federal ability stories times currently pressure by where other are buses analyst all quote government closed hundreds and the alternatives sent trucking ACT available to manufacturer technologies been such placed and on to floor report meet In the easily lower agency back companies, leader program he entire lack rollouts trucks. very attention disaster the advance of the we're companies ordering expo, for in in buses. like buses of process and today with paid electric at encountered the the can put experiment the the such the almost one to to covering But Transit buses the the bill fleets of this orders in experiments. of wrote government with because to his the The of cost new emissions electric are natural cost. don't of industry and after other for

very them air solution performance the less cost of long-term at few are to tackles expect others of future So on that firms details. they a than promises signing quality fuel while with big gas and that greenhouse the diesel. grabbing with while headlines the is giving trucking issues easy We're today

our I grow continues As nice to earlier, mentioned pace. core a business at

El three to XX number The During City CNG year. renewed signed of will a Canada of consumer of adding built X.X The fuel annual for gallons of buses. buses XXX a gallons is a to CNG Port will million that shuttle buses we first buses. which for CNG the includes agencies Sun of buses. a Metro in Transit for City area for of we serving maintained Santa and for Transit. gallons shuttle airport new fuel Paso contract Clarita X.X year, Redeem BC report their school delivery signed agreements municipal stations Vancouver, XX XX LAX an XXX Metro Angeles contracted signed The introducing including a estimated provide County the of be quarter operate XX this Sacramento million a with an of power fuel. to gallons to contracted Los with buses. X were of BC Redeem anticipated to that Seattle that vehicles. for expected airport over the to We've buses an new and fleet of expected And an estimated power Redeem transit the gallons Fresno signed life. million buses XXX,XXX for contract us XXX,XXX Redeem

Department County an fuel RNG. Works the a XXX,XXX of signed Public deal of for Finally estimated five-year Orange,

Burrtec the first California, the Livermore City Connecticut. Industries, XXXX of USA we side, the the our Redlands, in California Sanitation On City in quarter in Sacramento, energy City about reinforce of Recycling Washington, All California, Alameda the & and clean Tacoma, Cal productive County, for with in future The signed the first of fuels Waste agreement natural and [indiscernible] optimism Hauling City was and [ph] Philadelphia, Waterbury, service very quarter of fueling. gas of and California. of

continues The signing gas from customers with conventional existing alternatives. switching performance and exceeds financial Our Redeem natural climate new that goals customers far to and change up balance other fuel a are improve. renewable for sheet versus acceptance accelerating is

real that that, for to past, tough to lot from grow market heavy the Our a natural fleets core been hand a continues with heavy new get in signs crack fleet catching duty I'll emission were truck now price of has to to the diesel the higher for away gas duty Blooming progress. stricter standards, reluctant. prices the call trucking in previously show And of begun over has into business which to a nut Bob. noise is and fleets same

Bob Vreeland

Andrew. you Thank

of year the quarter we XXXX and maintain earnings financial provided results during year XXXX the end outlook our full line for our in expectations financial we for calls. Our our were XXXX first with which

LNG Redeem incremental as million also growth a to Advantage compared year our to grew from Our of both volume XX.X ago. BP volume quarter and fuel XX% XX% year year also at from million from Refuse relationship. the NG gallons bulk deliveries first Redeem of due related a LNG Transit XX.X ago. gallons CNG result versus the first volume quarter and growth to CNG benefiting above in and expanded increased last sectors. came increased the to greater in gallons

XXXX tax tax revenue end million million fuel million $XXX.X $X alternative to was alternative the Now of XXXX. credits fuel XXXX. year included first for loss $XX.X the at quarter revenue which hedge. the expired year fuel in $XX.X non-cash Zero Last related The a million included on of credits first our of Our quarter calendar

and Zero increased X.X% LCFS revenue prices effective fuel alternative as greater XXXX RIN prices loss non-cash prices. fuel at gallon the in in tax total well which Now and XXXX pump higher as revenue the driven Excluding reflects retail hedge per credit by volumes

$XX.X in first loss. Now $XX.X gross and margin fuel hedge of XXXX first Now million million overall was of million increase $X profit fuel alternative Our the reduced non-cash by in quarter fuel the which increased $XX.X the million $XX.X Gross fuel margin reduction the tax in from tax $X the hedge quarter alternative by credit. was Zero million Zero Exclusive XXXX from of was from was the loss the million which credit.

project gross profit due in a million margin X% ago station from $X.X XXXX volumes a margins. offset increased increased partially to Our or by year by decline

gallon. Our effective first within per $X.XX XXXX of range a our for guidance consistent was of per with to and year the $X.XX ago gallon $X.XX margin per gallon quarter

higher the compared to first quarter and of renewable and credit revenue LCFS natural The from primarily RIN XXXX. benefited gas XXXX related Redeem sales

in Our year million $XX.X was versus a million first XXXX the quarter ago. of SG&A $XX.X

in for being spending, see within expected Looking SG&A but to forward range quarterly anticipate the year we still $XX increases million. of we $XX our million some

also one sale near gain being related domain of improvements airport of We of process eminent assets. recognized was to This stations. $X.X our to station an part accommodate the million made

net the of quarter of net loss $XX.X GAAP GAAP compared Our XXXX $XX.X ago. million for income first million to was year a

to related credit first by fuel million of We impacted of a in of tax income warrants loses $X.X in the XXXX Zero declining of the million in the expense the lower last $X.X hedge non-cash of year for favorable included debt impact first to alternative to value $XX.X benefits our was fuel fair in Although negatively balances quarter from the of million quarter of compared while $X.X change Now XXXX. plus NG XXXX the Advantage. $X.X saw stock by million in ago million going year quarter XXXX with interest the

$XX million quarter and essentially the adjusted Our our $XX.X net of adjusted first cash investments We $X.X of $XX.X in alternative for quarter. XXXX for $XX.X loss and of tax amount investments operations in we that which had XXXX at of first income. the compared the again million the and of a in first noted from net cash million from was in the XXXX million with was was EBITDA cash proceeds ended was Cash million compared the quarter XXXX to our in fuel quarter in beginning in to the offset quarter same station of previously. income with million of in BP $X.X XXXX used from asset and the credit million first XXXX, of received received of included $XX.X noting adjusted $X.X million XXXX out earn sale five-year second-year $X.X million

purchase of million in from and equipment Advantage we as financing against an equipment. view which proceeds addition, offset property In $X.X NG received

unchanged and million. NG is and XXXX financing at million principally debt at convertible is $XX facility held due Our at in equipment $XX debt our June Advantage

we see now volume truck growth at at likely open an to debt capabilities NG our we'll mind, And Zero Keeping attributed in in be operator, will growth. during to that to Now contract with in increase the see debt gas we'll this expansions balances XXXX. and directly increased call support program As flow Advantage our questions.

Operator

question is the Instructions] first Please [Operator ahead go Craig-Hallum. Eric from Stine, sir.

Unidentified Analyst

[indiscernible] This gaining hear pipeline first Eric, some the of you're maybe color that. questions. the those been maybe what more as to bit around can some for with factors on some give see [ph] of a you program and And larger then little traction, that forward potential X,XXX maybe bit move the to the the to on just recent looking just thinking the outlook Maybe Now for Zero purchases. Aaron maybe little good before maybe of beyond for is a taking to and of of get to fleets your talk start We've some grow truck about that kind that. thanks

Andrew Littlefair

came because us just you what happened per with helped - while, on we a It re-educate it it's took $XX,XXX to Aaron a million, up for with with of number started one me gaining we're year. fleets. number. been Kind doing shooting [ph] that We've at for. friends X,XXX I what think about late at our had a and I'm us still are, math good that debt but was truck that us it It's $XXX about the factors for still basically in took summer while while last of think a that, was. Total

some with You have to the go duty back a couple of experience years, is today adopter the collapse the previous some of oil engines is gas. some really we those had of and and earlier the of a price course were with new problems renewable new XX-liter the was, the which this have of engines heavy early NOx of course low of engines, with some now we of engine day natural

Now We've up really current where length price different four can in depending we many we've with state Zero pipeline process, is educate And assigning purchases I'm we that a was grow very to I Sales. to lock but of the This play. years. pipeline Is explain attractive monitor back of could discussed at trucks, have got of are where it us, and continued natural to into we what a takes move the trucks, And through good before index takes our EI phase so and It deals. the so and release now deal as lease, to there here. of $X And and for The say continued that came fuel current time, that. before bill right? what they on then at showstoppers is needed the like customers several which we fixed with, of much sign that attractive. one number to you It's steps that while Now we've it's fleets any the entertaining about to we're got the five Zero fleets couple then really the as about of had and It's diesel, of with education today, a more I than with days to really cases are that go hedge we ago, we in end to do. order is increase technology, after continues able contract we've so gallon our the the explain to engine a as a and contracting essentially a President new call. fuel when financing kind Vice this is I'd negotiation process financing, out this as today very operators and into which mentioned today. we're to know negotiation the to and the you why truck gas move feeling same [indiscernible] the the regularly aren't so

committing I'm So an is a isn't - good of even going, years' way real this stuff. buying truck that's fuel, this buying about a putting this to pretty it's This order, five for is feeling $XXX,XXX the discount. but worth down a is at reservation, though

dollars. you're many when in so [indiscernible] or millions talking XX XX trucks cases And we're in

have take these I price a with competitive with note seriously, in they're that today very Port diesel So the diesel price. faced $X.XX higher of today. guys LA so it we

is entire number you - though, I year helps. next number that but So it to in year. year, it the course X,XXX of get begin you'll take good all see and to truck this I to hope will number that volumes those maybe think see We a us still won't

Unidentified Analyst

an that update the in SIP give the the kind Great, down as kind for whether what it's funding on you're looking in understood. there can deployments, Thanks there maybe near dollars Maybe Coast, or California, far kind of or for second, of with there. South be as term great. some the of any programs would just ports you of color truck

Andrew Littlefair

we kind nation, all to very a do all lot [ph] for that just or and kind has now funding at lot get the that that other a dirtiest plan that of maybe heavy NOx Southern still the aren't is up and from duty natural Action quite course right, and requirements on sit a we're years the place, governs two now Port side and continue and of at you going trucks and there rules heavy cleaned California emissions adopted of thing of but Program, think these like been Los equipment of phase They that the - the vehicles. ports familiar adopted XX have funding as you of plan they the so its to Angeles I Long that highest gas We've this I Plan to there. side in Air in ships states in because it's as Implementation got get jointly the if plan also of still called Port would the by that to have call ago, by that then Clean thing. trucks the which federal plan compliance you plan trucks. introduced duty me lot compliance, the California not think, into a level theoretically a zero to an some in tells need was All those of can the low other Beach, that there's XXXX and comply duty by pieces by NOx look natural do there's that, today diesel stuff two of the that or funding emissions Aaron that's is and Southern course say operate of way work order that that not hassling yard and and to That have of see trucks certainly we you're make in the They're diesel XXX,XXX either fee medium the of that in don't see trucks. Well continued sure they those And on by they're going XXXX and be there. to a how fee doing we you to that associated have on says truck, I truck. or in it's got operate anything and a go, if in as coming but to competitiveness that to this will and what right we the buy are air place high could XX,XXX to But compliance see, because gas analysis some the fact, you're are we is XXXX to economic the what don't electric problem in inventory of needs it XX% gets be grant it continue to port. any be, diesel now truck short, near a quality our way business to get truck. in have to working destabilize State essentially

that I along. this of all people locally this of would things a There's transition. there continue assist down. to place. rocking to of California in slow and see from a that tension that kind grants We don't going betting and want think rather even between lot it's to be lot State to in I'm that's people do of

process granted that XXX we the in a by be the will participate contracts money trucks gas very natural These as think in nice end the port. won't XXX by couple gone I of see to that next adopters effect, right. the XXX, participate year, now, but will already rules to of guessing lot into if this the be part they will been hundred it year have I'm could close those early are have this and so there's in could trucks think latter the I'm month I A of in program.

XXX XX right now. down there there's about have You'll

years operating, the will today have for and you'll works truck. saving trucks and an why trucks what's electric So viable versus money showing these XXX close it another of waiting five be prospect to maybe

expect Port We have to last fee of trucks that's in there's goes somebody fleet as is XX,XXX years the pretty probably the we all next in compliance. LA, fee because to happen They in to World over retired. Walmart's I want the that a north saw quickly switch hire that's of of the that So pay going the if the don't fee. in will of want the three to the be time around couple future, somewhere think of

So we're very optimistic.

have to port, fueling down today. We use the have we the the product

have We place. in grants the

So going I this the a head lot you're as movement Zero beach for of we on think also modified kind Now see program for run the, of the port too.

So your lot, that I that a was hope answers question.

Unidentified Analyst

how No, so that's detail. of of for so, kind really last, some mix the outlook, stations been the you of we've good about there station the rest the year of you stuff that on hearing talk little and upgrades. bit the between And line. kind construction color, kind trends think the the Can maybe just new thanks just of there model then to and

Bob Vreeland

we little speaking believe kind year. I to - were we to we get of it up range range, move just, through can generally still million picks $XX the $XX but mean it the year. a up guided we as be move trends generally the we'll lumpy and through it that We activity as the gets million inside

Andrew Littlefair

right this our Aaron this was You in [ph] morning. earlier now know, [indiscernible] there's talking I charge I about know of to -

in more. currently process stations XX about are that there will be have and You

the at convention I I'm they back there with those. in of added was some usually just in were more big day and the fellas waste our come think or - two last two,

all to than we've the think of somewhere - that little as out, the years high and be be talking construction to here as I'm I'm me robust, maybe I XX, imagined projects it quarter, or It's projects before fourth is but underway talking a shake - will guided I station XX third will seen quarter. in It So the so it not now. we've ago. that. it's about couple millions, of seems seen we've kind by you lighter line a it when it in rough still

Unidentified Analyst

and of good the for quarter Thanks congrats taking volume another questions on growth. right. All

Operator

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

Rob Brown

you that feel touch constraints the volume you as in you Just there wanted or do to like to and got is Redeem the Are demand? on you market? how that supply seeing contracts fill or place any market, the capacity grow

Andrew Littlefair

volume, general I to is We're balanced right which coming the think party. because customers come we're getting more a good seeing now. more market supply in we're the thing into

looking look back then point over years friends of at there's kind the more with the and work couple coming on last a market. for supply of one we're our short little you We been supply BP If terms to and is market instance supply forecast the we're constantly at equation. we're looking responding they're them our more constantly The and supply. showing demand of demand our of in the at of side and doing part

using areas of lot the not a countries yet. have We we're but of customers RNG and

supply we is, can So use more and the news good that supply coming. is

bunch a in up going which be shows as general then this need it. to supply for think And time will going balanced of year. to linked more we're be I we're supply

Rob Brown

you a Okay, great structure, you level see you've down. you it, Do taking like it's and where then a feel want in be terms see it it going? do done where like or at cost good job you of of that's to here you're

Andrew Littlefair

quarter tight this can generally program. about probably right we've gets the I SG&A this line the sure range. Bob this we'll see the add just side. mean kind yet customers line. able don't got we up think this for that you'll may you and get a some marketing it's down Zero feels in in think what here as is though the things I building We're think with this - the as worried us, level a We're and I bit more the on shippers hold do been the I'd modeling. some a program when promote Well is pretty is it cost But on Now bit we I trying about doing of pop quarter, generally start right. SG&A this little is of more putting growing, and stations. to - we've as the it little on others about Bob? say on to This good, this We're we're but comfortable it little bit, you next we're It's

Bob Vreeland

think lower at go think need commented we Now have other to constantly be forward that there right effort we're so I why of quarter not we business, grow a Yes, what we on It good work now it's - that's we do. to because as and kind we're little to what the still lot we do we out programs. of Zero as promoting takes a support bit and I the may look business and do promoting see and

Rob Brown

thank turn over. it you. I'll Great,

Operator

There are back for this time. management the over remarks. no further questions turn to like I'd at closing to floor

Andrew Littlefair

Thank everyone we this look I Thank next the to you. call, our progress in you on for updating listening on forward operator. quarter. and you want to today thank afternoon

Operator

This today's teleconference. concludes

You this good your you time. your participation a Thank have lines may at and for disconnect day.

Clean Energy Fuels (CLNE) 9 May 192019 Q1 Earnings call transcript