VANCOUVER, BC - Westport Fuel Systems Inc. (“Westport Fuel Systems”) (TSX:WPRT / Nasdaq:WPRT) reported financial results for the third quarter ended September 30, 2019 and provided an update on our business. All figures are in U.S. dollars unless otherwise stated.
“Our Q3 results demonstrate our continued progress to transform the company into a profitable and sustainable organization,” said David M. Johnson, Chief Executive Officer of Westport Fuel Systems. “Q3 marks the third consecutive quarter of positive EBITDA, and the sixth consecutive quarter of positive adjusted EBITDA. These results are evidence of the continued growth in global demand for our clean fuel systems. Our customers are deploying our products and technologies to deliver clean, cost-effective transportation solutions in markets around the world and they’re helping to save money and to save the environment, all while keeping us moving. ”
|($ in millions, except per share amounts)||3 Months|
Ended Sep 30
Better / (Worse)
Ended Sep 30
Better / (Worse)
|Consolidated Revenues||$ 75.4||$ 65.5||15%||$ 231||$ 209.8||10%|
|Consolidated Gross Margin||17.9||15.6||15%||54.4||52.0||5%|
|Consolidated Gross Margin %||24%||24%||—||24%||25%||—|
|Consolidated Operating Expenses||19.2||30.6||37%||70.3||89.7||22%|
|Income from Unconsolidated Joint Ventures
|Net Loss from Continuing Operations||4.9||(12.1)||140%||(0.5)||(30.4)||98%|
|Net Loss Per Share from Continuing Operations||0.04||(0.09)||144%||—||(0.23)||100%|
|($ in millions, except unit amounts)||3 Months|
Ended SEP 30
Better / (Worse)
Ended SEP 30
Better / (Worse)
|Gross Margin Percentage||27%||32%||—||29%||31%||—|
|Segment Operating Income||13.1||20.5||(37)%||48.3||43.7||11%|
|Westport Fuel Systems 50% Interest||5.4||7.7||(30)%||19.8||17.0||17%|
Based on strong year to date results, Westport Fuel Systems full year revenue guidance is being revised to between $295 and $305 million.
Our key strategic priorities for 2019 are:
Management reviews the operational progress of its business units and investment programs over successive periods through the analysis of net income, EBITDA and Adjusted EBITDA. The Company defines EBITDA as net income or loss from continuing operations before income taxes adjusted for interest expense (net), depreciation and amortization. Westport Fuel Systems defines Adjusted EBITDA as EBITDA from continuing operations excluding expenses for stock-based compensation, unrealized foreign exchange gain or loss, and non-cash and other adjustments. Management uses Adjusted EBITDA as a long-term indicator of operational performance since it ties closely to the business units’ ability to generate sustained cash flow and such information may not be appropriate for other purposes. Adjusted EBITDA includes the company's share of income from joint ventures.
The term EBITDA and Adjusted EBITDA is not defined under U.S. generally accepted accounting principles ("U.S. GAAP") and is not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA has limitations as an analytical tool, and when assessing the company's operating performance, investors should not consider EBITDA and Adjusted EBITDA in isolation, or as a substitute for net loss or other consolidated statement of operations data prepared in accordance with U.S. GAAP. Among other things, EBITDA and Adjusted EBITDA does not reflect the company's actual cash expenditures. Other companies may calculate similar measures differently than Westport Fuel Systems, limiting their usefulness as comparative tools. The company compensates for these limitations by relying primarily on its U.S. GAAP results and using EBITDA and Adjusted EBITDA as supplemental information.
|($ in millions) 3 months ended||30-Sep-18||31-Dec-18||31-Mar-19||31-Jun-19||30-Sep-19|
|Net Loss from Continuing Operations||$(12.1)||$(10.4)||$(3.0)||$(2.3)||$4.9|
|Interest Tax Expense||2.6||(1.5)||1.1||0.9||0.8|
|Interest Expense, Net||2.3||2.6||1.8||1.4||1.8|
|Depreciation and Amortization||4.2||4.0||4.3||4.0||4.2|
|Stock Based Compensation||0.6||0.7||0.4||0.3||0.3|
|Unrealized Foreign Exchange (Gain) Loss||2.2||1.6||0.1||(0.7)||0.7|
|Restructuring, Termination and other Exit Costs||—||—||0.8||—||—|
|Legal Costs Associated with SEC Investigation||3.5||3.1||1.8||4.5||—|
|Total Adjusted EBITDA||$4.3||$0.2||$7.3||$8.1||$9.4|
Included in this press release are an unaudited condensed consolidated interim balance sheet and statement of operations and comprehensive loss. To view Westport Fuel Systems full financials for the third quarter ended September 30, 2019, please visit wfsinc.com/investors/financials.
The company is providing a conference call presentation as a guide to its financial information in a quick reference format and it should be read in conjunction with Westport Fuel Systems full financials for the third quarter ended September 30, 2019.
Westport Fuel Systems has scheduled a conference call for today, November 7, 2019 at 5:30 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: 1-855-327-6838 (Canada & USA toll-free) or 1-604-235-2082. 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 604-638-9010 using the pass code 3774. The replay will be available until November 14, 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.
At Westport Fuel Systems, we are driving innovation to power a cleaner tomorrow. We are a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen to the global automotive industry. Our technology delivers the performance and fuel efficiency required by transportation applications and the environmental benefits that address climate change and urban air quality challenges. Headquartered in Vancouver, Canada, with operations in Europe, Asia, North America and South America, 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 the future growth of, and key strategic priorities for, Westport Fuel System's business, market demand for Westport Fuel Systems' products, commercial launch of Westport HPDI 2.0TM in China, future volume growth and cost reductions and additions of new OEM customers along with statements regarding revenue, Adjusted EBITDA and cash flow expectations, continued research and development investment, the demand for our products, cash and capital requirements 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 research and development expenses, CWI performance, our ability to secure new customers, the availability and price of natural gas, global government stimulus packages, the acceptance of and shift to natural gas vehicles, 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.
Westport Fuel Systems Inc. today announced the appointment of Tony Guglielmin to the company’s Board of Directors, effective January 7, 2021.
2020 Year in Review and What’s Driving Momentum in 2021
Cummins Westport Inc. today announced changes to its Board of Directors and Management in accordance with the terms of the 50/50 Joint Venture Agreement between Cummins Inc. and Westport Fuel Systems Inc.
Program Applies HPDI to an Updated Base Engine Platform
Westport Fuel Systems Inc. today announced today that the Company has established an at-the-market equity offering program.
Swedish truck maker Volvo said it’s seeing hauliers and transport buyers moving towards refrigerated liquefied gas as a cheaper and more environmentally friendly alternative to diesel.
The Maruti Suzuki WagonR S-CNG has emerged as the highest selling natural gas vehicle in the country, as this greener and safer factory-fitted CNG model has surpassed 300,000 units in sales.
While much attention has shifted to the potential for battery-electric or hydrogen vehicles, another technology with a vast infrastructure — renewable natural gas — is gaining traction among fleet managers.
Egypt has launched an ambitious plan to shift the primary fuel for vehicles in its jurisdiction from petrol and diesel to compressed natural gas.
Natural gas vehicles (NGV) may get a boost as power markets and renewable equipment production are seen as potential casualties.