Financial Data and Key Metrics Changes - The company reported revenues of approximately $60 million for Q2 2020, a decrease of 17% compared to the same quarter in 2019 [11][27] - Adjusted EBITDA for the quarter was $9.2 million, an improvement over the previous year's second quarter [11][30] - The company ended the quarter with $96 million in cash and investments and only $37 million in debt [11][24] - GAAP net loss for Q2 2020 was $6.7 million, compared to a loss of $5.4 million in the same period last year [30] Business Line Data and Key Metrics Changes - Total volumes were approximately 90 million gallons, down 10% year-over-year, primarily due to declines in public transit and airport sectors [10][26] - The refuse business grew during the pandemic, with contracts signed representing approximately 2.2 million gallons annually [14][15] - Redeem volumes for Q2 were 36 million gallons, down from 38.9 million gallons in Q2 2019, mainly due to lower volumes in California [26] Market Data and Key Metrics Changes - The company experienced a decline in CNG volumes in transit and airport fleet services, with year-over-year declines between 25% and 45% [26] - The refuse and trucking sectors saw gains of 2% to 7% year-over-year [26] - The effective price per gallon delivered was $0.58 in Q2 2020, down from $0.66 in Q2 2019, driven by lower natural gas costs [28] Company Strategy and Development Direction - The company is focused on expanding its customer base and increasing the use of Redeem renewable natural gas [9][13] - A significant contract was signed with the New York City Metropolitan Transit Authority to operate 800 buses with Redeem, converting over 8.3 million gallons from regular CNG to renewable CNG [15][16] - The company is optimistic about the future of natural gas fueling, seeing a renewed interest from municipalities and transit authorities [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business despite the pandemic, noting a strong underlying recurring business and a healthy balance sheet [12][24] - The company anticipates slower volume growth in the third and fourth quarters due to the prolonged nature of COVID-19 [24][25] - Management highlighted the importance of ESG investing and the potential for increased adoption of natural gas as a cleaner alternative to diesel [12][22] Other Important Information - The company has not taken any government assistance due to the coronavirus pandemic [12] - The Zero Now Financing program continues to show results, with new partnerships and increased interest from trucking firms [21][22] Q&A Session Summary Question: Thoughts on trucking growth breakdown - Management noted that UPS has ramped up usage, contributing to growth, along with increased interest in the Zero Now program and new truck orders [32][33] Question: Potential for Chevron partnership expansion - Management indicated that Chevron sees significant potential in the biomethane space and is making substantial investments, which could lead to program expansion [37][41] Question: Recovery in municipal transit fleets - Management observed a slight recovery in transit volume but noted that overall demand remains down due to fewer people commuting [55][57] Question: Impact of Advanced Truck rule in California - Management criticized the rule for not considering the air quality benefits of cleaner fuels and expressed concerns about the focus on electrification over other alternatives [61][63]
Clean Energy(CLNE) - 2020 Q2 - Earnings Call Transcript