Westport Fuel Systems Reports Fourth Quarter and Full Year 2018 Financial Results
Strong 2018 Financial Performance and Continued Growth in 2019
VANCOUVER, BC - Westport Fuel Systems Inc. ("Westport Fuel Systems") (TSX:WPRT / Nasdaq:WPRT) reported financial results for the fourth quarter and year ended December 31, 2018 and provided an update on operations. All figures are in U.S. dollars unless otherwise stated.
"Westport Fuel Systems’ extensive product portfolio of market-ready solutions, global reach, and technology leadership, combined with existing and imminent international public policy decisions, position us for continued growth," said David Johnson, Chief Executive Officer of Westport Fuel Systems. "Management’s primary focus is on execution and capitalizing on the present opportunity. Our continued commitment and focus is to build a sustainable, profitable company that delivers value to customers and shareholders."
Our key strategic priorities for 2019 are:
Westport Fuel Systems expects consolidated revenue from continuing operations to be in the range of $265 and $295 million for the full year of 2019.
|($ in millions, except per share amounts)||3 Months
Ended Dec 31
Better / (Worse)
Ended Dec 31
|Consolidated Revenues*||$ 60.5||$ 57.5||5%||$ 270.3||$ 229.8|
|Consolidated Gross Margin||12.3||14||(12)%||64.2||60.3|
|Consolidated Gross Margin %||20%||24%||—||24%||26%|
|Consolidated Operating Expenses||27.3||32.1||15%||116.9||127|
|Research & Development Expenses||6.8||11.6||41%||30.6||50.1|
|Income from Unconsolidated Joint Ventures||5.8||(0.3)||N/A||22.7||12.5|
|Net Loss from Continuing Operations||(10.4)||(20.8)||50%||(40.8)||(62.9)|
|Net Loss Per Share from Continuing Operations||(0.08)||(0.14)||43%||(0.31)||(0.52)|
|($ in millions, except unit amounts)||3 Months
Ended Dec 31
Better / (Worse)
Ended Dec 31
Better / (Worse)
|Revenue||$94.1||$ 91.6||3%||$ 319.4||$317.3||1%|
|Gross Margin Percentage||22%||34%||—||28%||34%||—|
|Operating Expenses||$ 9.2||$ 10.1||9%||$ 35.5||$ 52.2||32%|
|Segment Operating Income||11.7||21.2||(45)%||55.4||57.3||(3)%|
|Westport Fuel Systems 50% Interest||5.7||(0.4)||N/A||22.7||12.5||82%|
Management reviews the operational progress of its business units and investment programs over successive periods through the analysis of net income, EBITDA and Adjusted EBITDA. The Company defines EBITDA as net loss from continuing operations before income taxes adjusted for interest expense (net), depreciation and amortization. Westport Fuel Systems defines Adjusted EBITDA as EBITDA from continuing operations excluding expenses for stock-based compensation, unrealized foreign exchange gains or losses, and non-cash and other adjustments. Management uses Adjusted EBITDA as a long-term indicator of operational performance since it ties closely to the business units’ ability to generate sustained cash flow. Adjusted EBITDA includes the Company's share of income from joint ventures.
The term Adjusted EBITDA is not defined under U.S. generally accepted accounting principles ("U.S. GAAP") and is not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Adjusted EBITDA has limitations as an analytical tool, and when assessing the Company's operating performance, investors should not consider Adjusted EBITDA in isolation, or as a substitute for net loss or other consolidated statement of operations data prepared in accordance with U.S. GAAP. Among other things, Adjusted EBITDA does not reflect the company's actual cash expenditures. Other companies may calculate similar measures differently than Westport Fuel Systems, limiting their usefulness as comparative tools. The Company compensates for these limitations by relying primarily on its U.S. GAAP results and using Adjusted EBITDA as supplemental information.
|($ in millions)
3 months ended
|Net Loss from Continuing Operations||$(20.8)||$(12.6)||$(5.7)||$(12.1)||$(10.4)|
|Interest Tax Expense||0.1||0.9||0.1||2.6||(1.5)|
|Interest Expense, Net||2.5||2.1||1.7||2.3||2.6|
|Depreciation and Amortization||3.9||4.2||4.1||4.2||4.0|
|Stock Based Compensation||0.7||0.3||1.4||0.6||0.7|
|Unrealized Foreign Exchange (Gain) Loss||(1.3)||—||5.2||2.2||1.6|
|Restructuring, Termination and other Exit Costs||1.8||0.6||0.2||—||—|
|CWI US Tax Adjustment||6.7||—||—||—||—|
|Legal costs associated with SEC investigation||0.9||0.9||2.5||3.5||3.1|
To view Westport Fuel Systems full financials for the fourth quarter and year ended December 31, 2018, please visitwww.wfsinc.com/investors/financials.
The company is providing a conference call presentation as a guide to its financial information in a quick referenceformat and it should be read in conjunction with Westport Fuel Systems full financials for the year endedDecember 31, 2018.
Westport Fuel Systems has scheduled a conference call for today, at 1:30 pm Pacific Time (4:30 pm Eastern Time) to discuss these results. The public is invited to listen to the conference call in real time by telephone or webcast. To access the conference call by telephone, please dial: 1-800-319-4610 (Canada & USA toll-free) or 604-638-5340. The live webcast of the conference call can be accessed through the Westport Fuel Systems website at www.wfsinc.com/investors/financials.
To access the conference call replay, please dial 1-800-319-6413 (Canada & USA toll-free) or 1-604-638-9010 using the pass code 3022. The replay will be available until March 26, 2019. Shortly after the conference call, the webcast will be archived on the Westport Fuel Systems website and replay will be available in streaming audio and a downloadable MP3 file.
The Westport 2019 Annual Meeting of Shareholders will be held on Monday, May 6, 2019 at 10:00 am Eastern Time at 3400 One First Canadian Place, Toronto, ON M5X 1A4.
At Westport Fuel Systems, we are driving innovation to power a cleaner tomorrow. We are inventors, engineers, manufacturers and suppliers of advanced clean fuel systems and components that can change the way the world moves. Our technology delivers performance, fuel efficiency and environmental benefits to address the challenges of global climate change and urban air quality. Headquartered in Vancouver, Canada, we serve our customers in more than 70 countries with leading global transportation brands. At Westport Fuel Systems, we think ahead. For more information, visit www.wfsinc.com.
This press release contains forward-looking statements, including statements regarding revenue and cash usage expectations, future strategic initiatives and future growth, future of our development programs (including those relating to HPDI), Westport Fuel Systems' expected timing and cost reduction resulting from organizational restructurings, the demand for our products, the future success of our business and technology strategies, intentions of partners and potential customers, the performance and competitiveness of Westport Fuel Systems' products and expansion of product coverage, future market opportunities, speed of adoption of natural gas for transportation and terms and timing of future agreements as well as Westport Fuel Systems management's response to any of the aforementioned factors. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance or achievements expressed in or implied by these forward looking statements. These risks, uncertainties and assumptions include those related to our revenue growth, operating results, industry and products, the general economy, conditions of and access to the capital and debt markets, solvency, governmental policies and regulation, technology innovations, fluctuations in foreign exchange rates, operating expenses, continued reduction in expenses, ability to successfully commercialize new products, CWI performance, the availability and price of natural gas, global government stimulus packages and new environmental regulations, the acceptance of and shift to natural gas vehicles, the relaxation or waiver of fuel emission standards, the inability of fleets to access capital or government funding to purchase natural gas vehicles, the development of competing technologies, our ability to adequately develop and deploy our technology, the actions and determinations of our joint venture and development partners, as well as other risk factors and assumptions that may affect our actual results, performance or achievements or financial position discussed in our most recent Annual Information Form and other filings with securities regulators. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in these forward looking statements except as required by National Instrument 51-102. The contents of any website, RSS feed or twitter account referenced in this press release are not incorporated by reference herein.
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