Clean Energy(US:CLNE)2019-03-13 00:41Financial Data and Key Metrics Changes - In Q4 2018, the company delivered 98.7 million gallons, a 14% increase from 86.4 million gallons in Q4 2017 [8] - Total revenue for Q4 2018 was $96 million, compared to $89 million in Q4 2017, with fuel volume revenue increasing 21% to $78 million [8][28] - GAAP net income for Q4 2018 was $6.9 million, an improvement of $35.2 million from a GAAP net loss of $28.3 million in Q4 2017 [32] - Adjusted EBITDA for Q4 2018 was $12.7 million, compared to a negative $9.7 million in 2017, marking a $22.6 million improvement [33] Business Line Data and Key Metrics Changes - Redeem RNG volume grew 55% in Q4 2018 to 38.8 million gallons compared to 25 million gallons in Q4 2017 [27] - The company completed 49 station projects in 2018, although station construction sales experienced a decline [8] - SG&A expenses in Q4 2018 were $20 million, a 16% decrease from the previous year, reflecting cost reduction efforts [31] Market Data and Key Metrics Changes - The company anticipates low-double-digit volume growth in 2019, with effective margin per gallon expected to be between $0.24 and $0.28 [36] - The alternative fuel tax credit, which contributed approximately $26 million in 2018, is not included in the 2019 guidance [35] Company Strategy and Development Direction - The company is focusing on expanding its leadership in the renewable natural gas market and leveraging its existing fueling infrastructure [9] - A new program called Zero Now aims to attract heavy-duty trucking fleets to switch to natural gas, supported by financial backing from Total [18] - The company has set a goal to provide 100% renewable non-fossil energy by 2025, ahead of California's target [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued momentum into 2019, driven by strategic operational and financial initiatives [7] - The company believes that the renewable natural gas market will grow significantly, with potential production reaching several billion gallons in the coming years [49] - Management is optimistic about the potential for the alternative fuel tax credit to be enacted retroactively for 2018 and 2019 [52][53] Other Important Information - The company ended 2018 with $95 million in cash and investments, significantly reducing convertible debt from $545 million to $50 million [21][33] - The company is focused on generating positive cash flow and maintaining capital expenditures at or near 2018 levels [40] Q&A Session Summary Question: Is the growth driven much by the Zero Now program? - Management indicated that the growth is primarily from the core business and Redeem, with the Zero Now program's impact still to come [41] Question: What is the size of the truck fleets looking at the Zero Now program? - Management mentioned that they are targeting large fleets with thousands of vehicles, as well as aggressive fleets with 500 to 1,000 units [42][43] Question: What is the outlook for the alternative fuel tax credit? - Management expressed confidence that the alternative fuel tax credit will be enacted in 2019, potentially retroactive for 2018 [52][53]