Clean Energy Fuels Corp. Q1 2009 Earnings Call Transcript

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2009-05-07 19:19:18.0

Tags: Truck, Call Transcript, Earnings, Clean Energy Fuels Corp., Republic, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) Our first question comes from the line of Rob Brown with Craig-Hallum Capital Group. Your line is now open, you may proceed.

Rob Brown Craig-Hallum Capital

Good afternoon. I was curious on the Republic contract you announced, how many trucks does Republic run in total and what sort of the, I guess method, where you can win other cities within Republic?

Andrew Littlefair

Rob, good afternoon. Republic merged with Allied; they're the second largest. Now, they have 17,000 trucks system wide. That compares to about 22,000 collection trucks. When I say 17,000, that's collection trucks; they have other roll offs and other kinds of trucks and fleet vehicles. And of course as you probably know, they're scattered all over the United States. So, without saying too much here, we are talking to Republic about extending our presence with them and we are excited about that.

Rob Brown Craig-Hallum Capital

Okay, great. Thank you. And then at the ports right now how many ports trucks do you have running and when do you think these new trucks start by the port implementing, how does that roll out through the rest of the year?

Andrew Littlefair

Clearly there is about 300 trucks at the port, that are in operation and that probably doesn’t count those 25 that got delivered yesterday to avenues. Stickers put on them today or something. There are another 200 that are, as I said dealer lots in fact that my number was 190 on the sheet subsequently told us about 210 on dealer’s lots in Southern California. Tonight has been announced, but expected that the both will go ahead and put in motion 450 trucks of funding mechanism for 450 trucks. Long Beach has already really underway with that kind of a similar program and so, we always missed a lit bit on projecting when these are going to come along.

It’s LA its intention that by the end of the year that they get at least another 900 on the road and I think Long Beach would like to see 300. So, we are talking about between now and end of the year potentially as many as 1200. If you think 450 trucks and the 300 in Long Beach, those 750 probably could find their way on to the roads in the next five months, six months and then you have a bigger piece at the end of the year to count round that up over a 4000. So, it’s kind of going the way, I said that might Rob, which is this kind of 100 a month pattern and I’m pleased because remember those structures using anywhere between 10, 15, some more thousand gallons per trucks. So, what we need and it’s going to be very important for us for the reminder of 2009.

 

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