03.09.09 

clne: RECESSION IMPACTS 4Q:08 RESULTS; VOLUME AND FINANCIAL RESULTS TRAILED EXPECTATIONS; LEGISLATIVE DEVELOPMENTS SUPPORT COMPANY'S LONG-TERM OBJECTIVES
Clean Energy announced 4Q:08 GAAP EPS of ($0.47) yesterday on $29.7 million in revenue. On a non-GAAP basis, the loss was ($0.09) per share, which excludes $0.06 in stock option expense and $0.31 in expenses associated with the California Proposition 10 initiative that was defeated in November. Driving the underperformance was weaker-than-expected volume growth, along with margin pressure during the quarter. While it has become clear that no company is immune from the global recession, it appear to us that CLNE will be less impacted than others given the early stages of its development, along with a growing acceptance of NG as an alternative vehicle source. Whether the economic turmoil will derail this acceptance remains an area of concern that we believe will ultimately prove temporary. Additionally, the green initiatives pursued by the Obama administration will likely have a direct positive impact on CLNE's business if passed. To that end, we continue to expect CLNE to generate strong volume growth over the next few years, and generate positive EBITDA in 2009 and positive net income in 2010. Contact Us for Full Report - PDF

11.14.08 

clne: 3Q:08 EPS OF ($0.24) IN LINE WITH PRE-ANNOUNCEMENT, PORT TRUCKS FINALLY ROLLING INTO SERVICE, TURNING THE CORNER IN 2009
Clean Energy announced 3Q:08 EPS of ($0.24) yesterday on $35.3 million in revenues, largely in line with the pre-announcement that accompanied its share offering two weeks ago. The defeat of California Proposition 10 has resulted in an additional 1.1 million shares being issued pursuant to the covenants contained in the Series II warrants. The company also spent heavily in supporting Proposition 10 during the current quarter, requiring that we update our projections for 4Q:08. On a more positive note, LNG fueled trucks are finally being deployed in the Ports of LA and Long Beach and will likely reach our long standing projections of approximately 1,200 new vehicles per year. As the sole LNG filling station at the Ports presently, Clean Energy should have an early advantage with this new business. While natural gas prices have declined significantly and in tandem with oil prices over the past several months, management has not detected any less interest in its product, which we believe has brightened prospects under President-elect Obama. We are adjusting our 4Q:08 EPS estimate to ($0.35), which is reflective of the $15 million spent to support Proposition 10 during the month leading up to the elections. Additionally, we are lowering our FY:09 EPS estimate to $0.11 to take into account slightly higher SG&A expenses and additional dilution as a result of the exercise of the Series II warrants. Contact Us for Full Report - PDF

10.30.08 

clne: RAISES $35 MILLION IN EQUITY AND WARRANT ISSUE; PRE-ANNOUNCES WEAKER 3Q:08 RESULTS
Clean Energy announced yesterday that it will raise $35 million ($32 million net of fees) by issuing 4.4 million shares of stock, along with 3.3 million series I warrants and 1.1 million series II warrants. The Series I warrants have a strike price well out of the money ($13.50), while the series II warrants are effective only if the California Proposition 10 initiative fails. Additionally, the company pre-announced 3Q:08 results, projecting an EPS loss of between ($0.23) to ($0.26) per share. The expected loss is worse than the ($0.22) we projected and is well off the ($0.15) consensus figure. It appears that volumes remain weak, with largely negligible sequential growth and a 6.5% y/y decrease in GGE's sold. While we do not have color behind the weak volumes, we believe that fueling at the Ports of LA and Long Beach continues to ramp slowly, while the loss of the Phoenix contract continues to skew y/y results. We have lowered our FY:08 and FY:09 estimates to reflect a slower ramp at the Ports, along with the dilutive impact of the share issuance. Contact Us for Full Report - PDF

08.14.08 

clne: HEADLINE EPS BEAT DRIVEN LARGELY BY HEDGING GAINS; EXCLUDING THESE GAINS EPS IS BELOW EXPECTATIONS; ROLLOUT OF PORT TRUCKS SHOULD IMPROVE OPERATING RESULTS IN 2H:08 AND 2009
Clean Energy reported 2Q:08 GAAP EPS of ($0.05), which included a positive $5.7 million mark-to-market on a hedging position associated with the expected renewal of a contract with the City of Phoenix. This gain has been permanently reversed in the current quarter as the company has liquidated its position following a sharp decline in natural gas prices since the end of June. Absent the derivative gain in the current quarter, CLNE would have reported an ($0.18) loss, well behind our and consensus projections of a ($0.11) loss. The large underperformance is partially explained by the sharp spike in natural gas prices during the quarter, which made legacy fixed price contracts especially unprofitable. Additionally, the loss of various non-core customers during 1H:08 resulted in y/y volume declines, whereas we were expecting at least mid-single digit % gains. Part of this volume shortfall continues to emanate from the slow roll-out of trucks at the Ports of LA and Long Beach, which is expected to accelerate in 2H:08. Given the reversal of the hedging gain in the current quarter, we are now expecting a ($0.22) loss in Q3:08. Excluding the hedging loss, our estimate is ($0.09). Contact Us for Full Report - PDF

06.23.08 

clne: LOSS OF LARGE CLIENT NOT ALL NEGATIVE; LONG-TERM TRENDS REMAIN STRONG
Clean Energy reported that a competitor has been awarded an LNG contract by the City of Phoenix. This contract is one of the largest clients of CLNE, and the loss comes as a surprise to us. Although we are disappointed by yet another set-back in the Company's expansion plans, we do not believe that the impact from the Phoenix contract will have an ongoing detrimental impact to CLNE's business for a number of reasons. First, the winning bidder was only awarded a one-year contract, and we believe that CLNE has a good chance of winning the next contract. Second, the supply of LNG remains very tight in the western US, and CLNE may very well supply Phoenix with some of its LNG needs (albeit only indirectly). Third, a hedge placed in anticipation of winning this contract is well in the money at this time, and can be realized if the contract is lost. Lastly, the CLNE story is longer term, benefiting from the continued conversion of gasoline and diesel fueled vehicles to natural gas alternatives. This thesis has not changed over the past several months and has actually become stronger. Contact Us for Full Report - PDF

05.16.08 

clne: FQ1:08 RESULTS FALL SHORT OF EXPECTATIONS; BALANCING THE LONG TERM OPPORTUNITIES WITH SHORT TERM RESULTS
Clean Energy reported FQ1:08 earnings of ($0.12) per share on a GAAP basis, approximately five cents worse than WR Hambrecht + Co. and consensus expectations. On a non-GAAP basis, which excludes stock option expenses, EPS was reported at ($0.07), also five cents behind our estimates. The much slower than expected ramps at the Ports of LA and Long Beach continues to frustrate investors and management and was a large part of this quarter's shortfall. Additionally, uneconomic fixed price contracts were pushed further in the money (a negative for Clean Energy) as natural gas prices continued to rise during the quarter. Higher than expected SG&A costs explain the balance of the quarterly miss. Balancing these concerns has been a string of contract wins and renewals, demonstrating the positive longer term prospects of the Company. Given the continued questions regarding the pace of the roll-out at the Ports and further losses from fixed price contracts, we have adjusted our estimates downward for the remainder of FY:08. The delay of the Port further affects FY:09 results, which we are also lowering today. Contact Us for Full Report - PDF

03.18.08 

clne: EXCITING DEVELOPMENTS TEMPERED BY SLOWER RAMPS AT MAJOR PROJECTS
Clean Energy reported FQ4:07 earnings of ($0.07) per share on a GAAP basis, approximately two cents worse than expectations, while non-GAAP EPS was reported at ($0.02), also generally behind expectations. The under-performance was largely due to a slower than expected roll-out of fueling operations at some of the company's larger initiatives, including the Ports of LA/Long Beach and the Peruvian joint venture. Since we believe that the longer term volume projections for these initiatives remain intact, we feel that CLNE's investment thesis as a rapidly growing alternative energy provider also remains intact. This belief is supported by the continued adoption of natural gas as a fuel source for vehicles, not only in California, but also in states and municipalities throughout the country, many of which have been talking to Clean Energy as a supplier of natural gas services. Nevertheless, we have had to adjust our model to take into account the slower than expected ramp at previously expected projects, which have generally lowered our current year expectations. Contact Us for Full Report - PDF

12.19.07 

clne: AN ALTERNATIVE ENERGY PROVIDER WITH A FUEL TECHNOLOGY THAT IS AVAILABLE TODAY
We are initiating coverage of Clean Energy Fuels, a turn-key natural gas provider focused on delivering an alternative fuel source to the transportation sector. With oil prices at record levels, natural gas offers a cost effective alternative fuel for return to base fleet vehicles, such as taxi cabs, shuttle buses and waste management trucks. As a cleaner burning fuel, natural gas addresses many of the environmental issues associated with green house gases. Additionally, with plentiful domestic reserves, natural gas usage reduces the Nation's dependence on foreign energy sources. As a market leader in supplying fuel to compressed and liquid natural gas (CNG and LNG) fleets, we believe that CLNE is well positioned in this growing market. With a current addressable market in excess of $20 billion based on the size of the fleet universe, we expect that CLNE's revenues will grow at an average rate of 38% through 2011. As a result, our non-GAAP EPS expectations turn positive in FY:08 and ramp rapidly in 2009 and beyond (our GAAP expectations turn positive in 2009). We believe that we have made conservative assumptions surrounding the vehicle ramp at the Port of LA, and do not believe that our other volume assumptions are overly aggressive. We expect that the Volumetric Excise Tax Credit (VETC) capture rate will remain in place through 2009 and drop off by 50% in 2010, which may provide upside to our model if current incentives are maintained. Contact Us for Full Report - PDF