Clean Energy Fuels (CLNE) Q2 2012 Earnings Call August 6, 2012 04:30 PM ET Executives Tony Kritzer - Director, IR Andrew Littlefair - President & CEO Rich Wheeler - CFO Analysts Rob Brown - Lake Street Steve Dyer - Craig Hallum Graham Madison - Lazard Capital Brian Gamble - Simmons & Company Shawn Severson - JMP Matthew Blair - Macquarie Pavel Molchanov - Raymond James Presentation Operator
The company’s non-GAAP EPS and adjusted EBITDA will be reviewed on this call and exclude certain expenses that the company’s management does not believe are indicative of the company’s core business operating results. Non-GAAP financial measure should be considered in addition to result prepared in accordance with GAAP and should not be considered as a substitute for or superior to GAAP results.The directly comparable GAAP information this is why management uses non-GAAP information a definition of non-GAAP EPS and adjusted EBITDA and a reconciliation between these non-GAAP and GAAP figures is provided in the company’s press release which has been furnished to the SEC on Form 10Q today. Participating on today’s call from the company is President and Chief Executive Officer, Andrew Littlefair and Chief Financial Officer, Rick Wheeler and with that I will turn the call over to Andrew. Andrew Littlefair Thanks Tony and good afternoon everyone and thank you for joining us. Today we reported revenue of $69.8 million for the second quarter compared to $69.1 million for the second quarter a year ago. Please note that the second quarter of 2011 included $4.7 million VTEC revenues that is not in the 2012 amount. In addition, revenues from our vehicle conversion business, BAF were little softer than we projected largely due to the exploration of the vehicle incentive credit. We delivered 48.6 million gallons up 24% from 39.2 million in the second quarter of 2011 which I am pleased with. During the second quarter, we remained focused in executing the roll-out of our Americas natural gas high-way stations in growing our traditional core market segments which I will highlight in a moment. Those of you who have been following Clear Energy in the natural gas vehicle sector as a whole, know that one of our major focus is building the infrastructure that will enable natural gas become a viable transportation fuel for Americas long haul and regional truck market.
As we were solving the station infrastructure issue, we are also working closely with several engine manufacturers to deliver the desired engines for the heavy duty truck market which are really the 12 and 13 liter engine.The 11.9 liter Cummins Westport engine is expected to become available in the first quarter of next year and the 13 liter Navistar and Volvo engines are expected to follow in late 2013 and early 2014. Once these engines are widely available and initial phase of the highway is complete we believe the heavy duty Class 8 truck market will begin to make the situation. This adoption should be similar to what we have seen in the refuse market over the last five years, once that market had the right end. In 2008, when the 8.9 liter Cummins Westport engine first became available, the adopted rate of natural gas engines in the refuse market went from 3% that year to close to 50% of new purchases this year. As aside we see that the adoption rate continually increase because of the enormous fuel savings refuse top rates we were experiencing compared to these. Today we have completed construction of 22 of our highway stations and an additional 24 are under construction and 32 more are in various stages of entitlement, design and permit. We are still targeting to complete construction of about 70 natural gas truck stop stations by year end and many of the station completions will occur at the very end of the year. The opening of these stations coincides nicely with the market availability of the 12 and 13 liter truck engines which I mentioned earlier. Most of the stations are located at truck stops with our partner Pilot Flying J. As we anticipated, the competitive landscape of the natural gas vehicle fueling market has begun to evolve. We believe the emergence of others in this space is a positive validation of our efforts. Read the rest of this transcript for free on seekingalpha.com