Westport Fuel Systems Inc. (“
WFS") (TSX:WPRT /
Nasdaq:WPRT) reported financial results for the second quarter
ended June 30, 2021, and provided an update on operations. All
figures are in U.S. dollars unless otherwise stated.
SECOND QUARTER 2021 HIGHLIGHTS
- Record revenue of $84.7 million, up
135% compared to the same period in 2020 and a sequential increase
of 11% compared to Q1 2021, due to the continued recovery of sales
volumes in our independent aftermarket ("IAM") and light-duty
original equipment manufacturer ("OEM") businesses as well as
continued growth in our heavy-duty OEM business.
- Acquisition of Stako sp. z.o.o
("Stako") closed May 30, 2021 to further support the energy
transition to cleaner fuels, for a total purchase price of $7.1
million, with a gain on the purchase of $5.9 million recorded in
the second quarter 2021.
- Net income of $17.2 million and net
income per share of $0.11 mainly due to the gain from the
acquisition of Stako, increased gross margin, higher income from
Cummins Westport Inc. joint venture ("CWI"), a $2.3 million foreign
exchange gain and an $8.9 million tax recovery recognized for a
COVID-19 tax relief ruling from the government of Italy during the
quarter.
- Adjusted earnings before interest,
taxes, depreciation and amortization ("Adjusted EBITDA") of $6.2
million.
- Marketed public offering completed
June 8, 2021, raising gross proceeds of $115.1 million, to be
used primarily to expand and automate production capacity of our
high-pressure direct injection (“HPDI”) products to meet growing
customer demand, and to fund additional development
activities.
- Announced a collaboration with Tupy
and AVL List GmbH to develop a highly efficient hydrogen internal
combustion engine for heavy goods transportation.
"The second quarter of 2021 was another record
revenue quarter for Westport Fuel Systems. We saw a substantial
recovery in our independent aftermarket and light-duty OEM
businesses relative to the same period last year. This is despite
the ongoing challenges of the global semiconductor shortage
currently affecting the automotive industry. Fleet operators
continue to advance carbon-reduction commitments through the
purchase of HPDI 2.0 equipped trucks fueled with renewable gas. In
doing so, they continue to realize operating cost savings from a
product capable of meeting fleets' most demanding performance
requirements.
The outlook for our business is strong,
underpinned by strong regulatory tailwinds and continued growth of
LNG infrastructure in Europe, with further growth and recognition
of bio–LNG as a clean, affordable fuel. In China, support for
expanding the adoption of natural gas transportation solutions
continues, evidenced in the government’s five-year plan published
earlier this year.
Development work on our hydrogen HPDI solution
is advancing. Hydrogen with HPDI is expected to offer game-changing
advantages for OEMs and suppliers, allowing them to leverage
existing supply chains and engine production capabilities, while
reducing the concerns of supplying and recycling precious and rare
earth metals. The need for cleaner transportation solutions has
never been more pressing, and our gaseous fuel solutions save our
customers money while reducing their carbon footprint.”
David M. Johnson, Chief Executive Officer
2Q21 Continuing Operations
CONSOLIDATED RESULTS |
|
|
|
($ in millions, except per share amounts) |
|
Over / (Under) % |
|
Over / (Under) % |
2Q21 |
2Q20 |
1H21 |
1H20 |
Revenues |
$ |
84.7 |
|
$ |
36.0 |
|
135 |
% |
$ |
161.1 |
|
$ |
103.2 |
|
|
56 |
|
% |
Gross Margin(2) |
15.7 |
|
12.2 |
|
29 |
% |
28.7 |
|
16.5 |
|
|
74 |
|
% |
Gross Margin % |
19 |
% |
34 |
% |
— |
|
18 |
% |
16 |
|
% |
— |
|
|
Operating Expenses |
19.4 |
|
10.5 |
|
86 |
% |
40.6 |
|
34.6 |
|
|
17 |
|
% |
Income from Investments Accounted for by the Equity Method(1) |
8.1 |
|
4.1 |
|
95 |
% |
14.6 |
|
9.5 |
|
|
54 |
|
% |
Net Income (Loss) |
$ |
17.2 |
|
$ |
3.0 |
|
475 |
% |
$ |
14.1 |
|
$ |
(12.3 |
) |
|
454 |
|
% |
Net Income (Loss) per Share |
$ |
0.11 |
|
$ |
0.02 |
|
448 |
% |
$ |
0.09 |
|
$ |
(0.09 |
) |
|
(100 |
) |
% |
EBITDA(3) |
$ |
13.9 |
|
$ |
9.2 |
|
51 |
% |
$ |
15.8 |
|
$ |
(1.9 |
) |
|
(932 |
) |
% |
Adjusted EBITDA(3) |
$ |
6.2 |
|
$ |
6.2 |
|
— |
% |
$ |
8.9 |
|
$ |
2.6 |
|
|
242 |
|
% |
(1) This includes income primarily from our
Cummins Westport Inc. ("CWI") and Minda Westport Technologies
Limited joint ventures.
(2) Includes a $7.7 million insurance recovery
in 2Q20 and a net $2.3 million charge in 1H20 for field service
campaign concerning a Pressure Relief Device.
(3) EBITDA and Adjusted EBITDA are non-GAAP
measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for
the reconciliation to equivalent GAAP measures and limitations on
the use of such measures.
Revenues in 2Q21 increased 135% to $84.7 million
in the three months ended June 30, 2021, resulting from the
recovery from the impact of COVID-19 across all of our
businesses.
WFS reported a net income of $17.2 million for
the quarter ended June 30, 2021, compared to net income of $3.0
million for the same quarter last year. The $14.2 million increase
in earnings was driven primarily from higher sales volumes in the
current period, $3.7 million increased in earnings from CWI, a $5.9
million purchase gain recorded in the connection with the
acquisition of Stako, an $8.9 million tax recovery recognized for a
COVID-19 tax relief ruling from the government of Italy. After the
completion of the marketed public offering on June 8, 2021, cash
and cash equivalents increased by $101.0 million to $160.7 million
as of June 30, 2021, compared to $59.7 million as of March 31,
2021.
WFS generated $6.2 million Adjusted EBITDA
during 2Q21 compared to $6.2 million. Adjusted EBITDA for the same
period in 2020. The Adjusted EBITDA in the second quarter of 2020
included a $7.7 million insurance recovery. Adjusted EBITDA
increased by $7.7 million mainly due to higher sales as we continue
to recover from the impact of COVID-19 and our business continues
to grow as we serve global markets with clean, affordable
solutions.
Segment Information
SEGMENT RESULTS |
Three months ended June 30, 2021 |
|
Revenue |
|
Operating income (loss) |
|
|
Depreciation & amortization |
|
Equity income (loss) |
OEM |
$ |
53.1 |
|
|
$ |
(3.4 |
) |
|
|
$ |
2.0 |
|
|
$ |
0.1 |
|
|
IAM |
31.6 |
|
|
1.1 |
|
|
|
1.6 |
|
|
— |
|
|
Corporate |
— |
|
|
(1.4 |
) |
|
|
0.1 |
|
|
8.0 |
|
|
CWI - 50% |
45.1 |
|
|
8.9 |
|
|
|
— |
|
|
— |
|
|
Total segment |
129.8 |
|
|
5.2 |
|
|
|
3.7 |
|
|
8.1 |
|
|
Less: CWI - 50% |
(45.1 |
) |
|
(8.9 |
) |
|
|
— |
|
|
— |
|
|
Total Consolidated |
$ |
84.7 |
|
|
$ |
(3.7 |
) |
|
|
$ |
3.7 |
|
|
$ |
8.1 |
|
|
SEGMENT RESULTS |
Three months ended June 30, 2020 |
|
Revenue |
|
Operating income (loss) |
|
|
Depreciation & amortization |
|
Equity income (loss) |
OEM |
$ |
19.1 |
|
|
$ |
1.1 |
|
|
|
$ |
2.1 |
|
|
$ |
(0.1 |
) |
|
IAM |
16.9 |
|
|
(1.2 |
) |
|
|
1.2 |
|
|
— |
|
|
Corporate |
— |
|
|
1.8 |
|
|
|
0.1 |
|
|
4.2 |
|
|
CWI - 50% |
33.2 |
|
|
5.3 |
|
|
|
— |
|
|
— |
|
|
Total segment |
69.2 |
|
|
7.0 |
|
|
|
3.4 |
|
|
4.1 |
|
|
Less: CWI - 50% |
(33.2 |
) |
|
(5.3 |
) |
|
|
— |
|
|
— |
|
|
Total Consolidated |
$ |
36.0 |
|
|
$ |
1.7 |
|
|
|
$ |
3.4 |
|
|
$ |
4.1 |
|
|
Original Equipment Manufacturer
Segment
Revenue for the three and six months ended June
30, 2021 was $53.1 million and $95.8 million, respectively,
compared with $19.1 million and $53.4 million for the three and six
months ended June 30, 2020. Revenue for the OEM business segment
increased by $34.0 million and $42.4 million, respectively. The
increase during the current quarter was mainly due to the recovery
of light-duty OEM sales volumes, an increase in sales volumes of
HPDI product and higher engineering service revenue during the
current quarter. The impact of COVID-19 was significant in the
prior year period, which was impacted by plant shutdowns combined
with lower light-duty OEM sales to German and Russian OEMs. We
expect to see continued growth in the heavy-duty business and
improvements in the light-duty OEM business in the second half of
the year.
Independent Aftermarket
Segment
Revenue for the three and six months ended June
30, 2021, was $31.6 million and $65.3 million, respectively,
compared with $16.9 million and $49.8 million for the three and six
months ended June 30, 2020. Revenue for the IAM business segment
increased by $14.7 million and $15.5 million, respectively, mainly
due to the recovery of sales volumes during the current quarter as
compared to the COVID-19 related shutdowns in the second quarter of
2020. Continued improvement in the market demand for our
aftermarket products is expected in the second half of the year,
but our revenue outlook is tempered by the ongoing global shortage
of semiconductors which could impact our IAM business.
CUMMINS WESTPORT INC.
Revenue for the three and six months ended June
30, 2021 for the Cummins Westport Inc. ("CWI") joint venture, was
$90.2 million and $172.5 million, compared to $66.4 million and
$143.1 million for the three and six months ended June 30, 2020,
respectively. Unit sales for the three and six months ended June
30, 2021, were 2,005 and 3,878 compared to 1,352 and 2,865 for the
three and six months ended June 30, 2020. The increase in unit
sales in the three months ended June 30, 2021, is a result of a
return to normal operating conditions following disruptions due to
the COVID-19 pandemic in the second quarter of 2020. The six months
ended June 30, 2021 unit sales were higher compared to the six
months ended June 30, 2020, reflecting the impact of OEM factory
shutdowns in April and May 2020 in response to the COVID-19
pandemic. Parts revenue for CWI increased to $28.0 million for the
three months ended June 30, 2021, from $24.9 million for the three
months ended June 30, 2020. Parts revenue for the six months ended
June 30, 2021 was consistent compared to the prior-year period.
CUMMINS WESTPORT HIGHLIGHTS |
|
|
|
|
|
Over / (Under) % |
|
Over / (Under) % |
($ in millions, except unit amounts) |
2Q21 |
2Q20 |
1H21 |
1H20 |
Units |
2,005 |
|
1,352 |
|
48 |
|
% |
3,878 |
|
2,865 |
|
35 |
|
% |
Revenue |
$ |
90.2 |
|
$ |
66.4 |
|
36 |
|
% |
$ |
172.5 |
|
$ |
143.1 |
|
21 |
|
% |
Gross Margin |
22.3 |
|
18.2 |
|
23 |
|
% |
43.4 |
|
39.8 |
|
9 |
|
% |
Gross Margin % |
25 |
% |
27 |
% |
— |
|
|
25 |
% |
28 |
% |
— |
|
|
Operating Expenses |
4.5 |
|
7.5 |
|
(40 |
) |
% |
8.4 |
|
15.7 |
|
(47 |
) |
% |
Operating Income |
$ |
17.8 |
|
$ |
10.7 |
|
67 |
|
% |
$ |
34.9 |
|
$ |
24.1 |
|
45 |
|
% |
WFS 50% Interest |
7.9 |
|
4.2 |
|
89 |
|
% |
14.4 |
|
9.5 |
|
51 |
|
% |
FINANCIAL STATEMENTS & MANAGEMENT'S DISCUSSION
AND ANALYSIS
To view WFS financials for the second quarter
ended June 30th, 2021, please
visit https://investors.wfsinc.com/financials/
LIVE CONFERENCE CALL & WEBCAST
WFS has scheduled a conference call for Friday,
August 6th, 2021, at 7:00 am Pacific Time (10:00 am Eastern Time)
to discuss these results. 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 WFS website
at https://investors.wfsinc.com/
REPLAY CONFERENCE CALL & WEBCAST
To access the conference call replay, please
dial 1-800-319-6413 (Canada & USA toll-free) or 1-604-638-9010
using the passcode 6662. The telephone replay will be available
until August 13th, 2021. 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.
About Westport Fuel Systems
Westport Fuel Systems is driving innovation to
power a cleaner tomorrow. The company is 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. Westport Fuel Systems’
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, the company serves customers
in more than 70 countries with leading global transportation
brands. For more information, visit www.wfsinc.com.
Cautionary Note Regarding Forward Looking
StatementsThis 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 and
Hydrogen), the impact of COVID-19 and ongoing semiconductor
shortages on our business, 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, access to required semiconductors, solvency, governmental
policies and regulation, technology innovations, fluctuations in
foreign exchange rates, operating expenses, continued reduction in
expenses, ability to successfully commercialize new products, the
performance of our joint ventures, 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, the effects and duration of COVID-19 and the
ongoing semiconductor shortage 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.
Contact InformationChristine
MarksInvestor RelationsWestport Fuel
SystemsT: +1 604-718-2046
GAAP and NON-GAAP FINANCIAL MEASURES
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 terms EBITDA and Adjusted EBITDA are not
defined under U.S. generally accepted accounting principles
("U.S. GAAP") and are not a measure of operating
income, operating performance or liquidity presented in accordance
with U.S. GAAP. EBITDA and Adjusted EBITDA have 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 do
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.
GAAP & NON-GAAP FINANCIAL MEASURES |
|
|
|
($ in millions) |
2Q20 |
3Q20 |
4Q20 |
1Q21 |
2Q21 |
Three months ended |
Net income (loss) |
$ |
3.0 |
|
|
$ |
0.8 |
|
|
$ |
4.1 |
|
|
$ |
(3.1 |
) |
|
$ |
17.2 |
|
|
|
|
|
|
|
|
Income tax expense (recovery) |
1.6 |
|
|
(0.6 |
) |
|
1.2 |
|
|
0.3 |
|
|
(8.1 |
) |
|
Interest expense, net |
1.2 |
|
|
1.3 |
|
|
4.0 |
|
|
1.2 |
|
|
1.1 |
|
|
Depreciation and amortization |
3.4 |
|
|
3.4 |
|
|
3.8 |
|
|
3.5 |
|
|
3.7 |
|
|
EBITDA |
9.2 |
|
|
4.9 |
|
|
13.1 |
|
|
1.9 |
|
|
13.9 |
|
|
|
|
|
|
|
|
Stock based compensation |
0.6 |
|
|
0.9 |
|
|
0.3 |
|
|
0.1 |
|
|
0.5 |
|
|
Unrealized foreign exchange (gain) loss |
(3.6 |
) |
|
(2.3 |
) |
|
(5.3 |
) |
|
0.7 |
|
|
(2.3 |
) |
|
Asset impairment |
— |
|
|
0.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
Bargain purchase gain |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(5.9 |
) |
|
Adjusted EBITDA |
$ |
6.2 |
|
|
$ |
4.0 |
|
|
$ |
8.1 |
|
|
$ |
2.7 |
|
|
$ |
6.2 |
|
|
WESTPORT FUEL SYSTEMS INC. Condensed
Consolidated Interim Balance Sheets (unaudited)(Expressed in
thousands of United States dollars, except share amounts)June 30,
2021 and December 31, 2020
|
June 30, 2021 |
|
|
|
December 31, 2020 |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents (including restricted cash) |
$ |
160,711 |
|
|
|
$ |
64,262 |
|
|
Accounts receivable |
92,656 |
|
|
|
90,467 |
|
|
Inventories |
69,687 |
|
|
|
51,402 |
|
|
Prepaid expenses |
7,974 |
|
|
|
11,767 |
|
|
Short-term investment |
10,983 |
|
|
|
— |
|
|
Total current assets |
342,011 |
|
|
|
217,898 |
|
|
Long-term investments |
3,288 |
|
|
|
13,954 |
|
|
Property, plant and equipment |
59,931 |
|
|
|
57,507 |
|
|
Operating lease right-of-use assets |
31,820 |
|
|
|
27,962 |
|
|
Intangible assets |
10,331 |
|
|
|
11,784 |
|
|
Deferred income tax assets |
12,017 |
|
|
|
2,140 |
|
|
Goodwill |
3,287 |
|
|
|
3,397 |
|
|
Other long-term assets |
11,584 |
|
|
|
11,621 |
|
|
Total assets |
$ |
474,269 |
|
|
|
$ |
346,263 |
|
|
Liabilities and shareholders’ equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued liabilities |
$ |
97,057 |
|
|
|
$ |
84,599 |
|
|
Current portion of operating lease liabilities |
4,731 |
|
|
|
4,476 |
|
|
Short-term debt |
12,225 |
|
|
|
23,445 |
|
|
Current portion of long-term debt |
17,303 |
|
|
|
16,302 |
|
|
Current portion of long-term royalty payable |
5,657 |
|
|
|
7,451 |
|
|
Current portion of warranty liability |
11,375 |
|
|
|
10,749 |
|
|
Total current liabilities |
148,348 |
|
|
|
147,022 |
|
|
Long-term operating lease liabilities |
26,871 |
|
|
|
23,486 |
|
|
Long-term debt |
39,554 |
|
|
|
45,651 |
|
|
Long-term royalty payable |
3,944 |
|
|
|
8,591 |
|
|
Warranty liability |
7,536 |
|
|
|
8,187 |
|
|
Deferred income tax liabilities |
3,459 |
|
|
|
3,250 |
|
|
Other long-term liabilities |
6,340 |
|
|
|
6,017 |
|
|
Total liabilities |
236,052 |
|
|
|
242,204 |
|
|
Shareholders’ equity: |
|
|
|
Share capital: |
|
|
|
Unlimited common and preferred shares, no par value |
|
|
|
168,801,162 (2020 - 144,069,972) common shares issued and
outstanding |
1,238,856 |
|
|
|
1,115,092 |
|
|
Other equity instruments |
7,773 |
|
|
|
7,671 |
|
|
Additional paid in capital |
11,516 |
|
|
|
11,516 |
|
|
Accumulated deficit |
(991,590 |
) |
|
|
(1,005,679 |
) |
|
Accumulated other comprehensive loss |
(28,338 |
) |
|
|
(24,541 |
) |
|
Total shareholders' equity |
238,217 |
|
|
|
104,059 |
|
|
Total liabilities and shareholders' equity |
$ |
474,269 |
|
|
|
$ |
346,263 |
|
|
WESTPORT FUEL SYSTEMS INC.Condensed
Consolidated Interim Statements of Operations and Comprehensive
Income (Loss) (unaudited)(Expressed in thousands of United States
dollars, except share and per share amounts) Three and
six months ended June 30, 2021 and 2020
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
$ |
84,701 |
|
|
|
$ |
35,964 |
|
|
|
$ |
161,144 |
|
|
|
$ |
103,187 |
|
|
Cost of revenue and expenses: |
|
|
|
|
|
|
|
Cost of revenue |
68,958 |
|
|
|
23,775 |
|
|
|
132,384 |
|
|
|
86,723 |
|
|
Research and development |
7,500 |
|
|
|
4,090 |
|
|
|
14,212 |
|
|
|
9,890 |
|
|
General and administrative |
9,233 |
|
|
|
6,109 |
|
|
|
18,523 |
|
|
|
12,741 |
|
|
Sales and marketing |
3,721 |
|
|
|
2,378 |
|
|
|
6,652 |
|
|
|
5,703 |
|
|
Foreign exchange (gain) loss |
(2,333 |
) |
|
|
(3,626 |
) |
|
|
(1,602 |
) |
|
|
3,269 |
|
|
Depreciation and amortization |
1,454 |
|
|
|
1,511 |
|
|
|
2,964 |
|
|
|
3,007 |
|
|
Gain on sale of assets |
(146 |
) |
|
|
— |
|
|
|
(146 |
) |
|
|
— |
|
|
|
88,387 |
|
|
|
34,237 |
|
|
|
172,987 |
|
|
|
121,333 |
|
|
Income (loss) from operations |
(3,686 |
) |
|
|
1,727 |
|
|
|
(11,843 |
) |
|
|
(18,146 |
) |
|
|
|
|
|
|
|
|
|
Income from investments accounted for by the equity method |
8,063 |
|
|
|
4,121 |
|
|
|
14,640 |
|
|
|
9,488 |
|
|
Interest on long-term debt and accretion on royalty payable |
(1,308 |
) |
|
|
(1,467 |
) |
|
|
(3,057 |
) |
|
|
(3,019 |
) |
|
Bargain purchase gain from acquisition |
5,856 |
|
|
|
— |
|
|
|
5,856 |
|
|
|
— |
|
|
Interest and other income, net of bank charges |
183 |
|
|
|
174 |
|
|
|
730 |
|
|
|
259 |
|
|
Income (loss) before income taxes |
9,108 |
|
|
|
4,555 |
|
|
|
6,326 |
|
|
|
(11,418 |
) |
|
Income tax expense (recovery) |
(8,121 |
) |
|
|
1,565 |
|
|
|
(7,763 |
) |
|
|
881 |
|
|
Net income (loss) for the period |
17,229 |
|
|
|
2,990 |
|
|
|
14,089 |
|
|
|
(12,299 |
) |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
Cumulative translation adjustment |
(1,643 |
) |
|
|
(633 |
) |
|
|
(3,797 |
) |
|
|
(464 |
) |
|
Comprehensive income (loss) |
$ |
15,586 |
|
|
|
$ |
2,357 |
|
|
|
$ |
10,292 |
|
|
|
$ |
(12,763 |
) |
|
|
|
|
|
|
|
|
|
Income (loss) per share: |
|
|
|
|
|
|
|
Net income (loss) per share - basic and diluted |
$ |
0.11 |
|
|
|
$ |
0.02 |
|
|
|
$ |
0.09 |
|
|
|
$ |
(0.09 |
) |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
Basic |
153,149,575 |
|
|
|
136,564,290 |
|
|
|
150,154,552 |
|
|
|
136,496,757 |
|
|
Diluted |
156,791,634 |
|
|
|
146,323,733 |
|
|
|
153,796,611 |
|
|
|
136,496,757 |
|
|
WESTPORT FUEL SYSTEMS INC. Condensed
Consolidated Interim Statements of Cash Flows (unaudited)
(Expressed in thousands of United States dollars) Three and six
months ended June 30, 2021 and 2020
|
Three months ended June 30, |
|
Six months ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Cash flows from (used in) operating activities: |
|
|
|
|
|
|
|
Net income (loss) for the period |
$ |
17,229 |
|
|
|
$ |
2,990 |
|
|
|
$ |
14,089 |
|
|
|
$ |
(12,299 |
) |
|
Items not involving cash: |
|
|
|
|
|
|
|
Depreciation and amortization |
3,703 |
|
|
|
3,402 |
|
|
|
7,176 |
|
|
|
6,771 |
|
|
Stock-based compensation expense |
539 |
|
|
|
617 |
|
|
|
623 |
|
|
|
1,241 |
|
|
Unrealized foreign exchange (gain) loss |
(2,333 |
) |
|
|
(3,626 |
) |
|
|
(1,602 |
) |
|
|
3,269 |
|
|
Deferred income tax |
(9,485 |
) |
|
|
1,458 |
|
|
|
(9,675 |
) |
|
|
(683 |
) |
|
Income from investments accounted for by the equity method |
(8,063 |
) |
|
|
(4,121 |
) |
|
|
(14,640 |
) |
|
|
(9,488 |
) |
|
Interest on long-term debt and accretion on royalty payable |
1,308 |
|
|
|
1,467 |
|
|
|
3,057 |
|
|
|
3,019 |
|
|
Change in inventory write-downs to net realizable value |
124 |
|
|
|
381 |
|
|
|
322 |
|
|
|
64 |
|
|
Bargain purchase gain from acquisition |
(5,856 |
) |
|
|
— |
|
|
|
(5,856 |
) |
|
|
— |
|
|
Change in bad debt expense |
(74 |
) |
|
|
214 |
|
|
|
(26 |
) |
|
|
252 |
|
|
Gain on sale of assets |
(146 |
) |
|
|
— |
|
|
|
(146 |
) |
|
|
— |
|
|
Net cash from (used) before working capital changes |
(3,054 |
) |
|
|
2,782 |
|
|
|
(6,678 |
) |
|
|
(7,854 |
) |
|
|
|
|
|
|
|
|
|
Changes in non-cash operating working capital: |
|
|
|
|
|
|
|
Accounts receivable |
(11,839 |
) |
|
|
4,042 |
|
|
|
(5,042 |
) |
|
|
4,618 |
|
|
Inventories |
(5,068 |
) |
|
|
(4,329 |
) |
|
|
(11,943 |
) |
|
|
(8,056 |
) |
|
Prepaid and other assets |
2,514 |
|
|
|
(919 |
) |
|
|
6,356 |
|
|
|
(1,559 |
) |
|
Accounts payable and accrued liabilities |
13,584 |
|
|
|
(9,623 |
) |
|
|
10,241 |
|
|
|
(16,820 |
) |
|
Deferred revenue |
(3,953 |
) |
|
|
(471 |
) |
|
|
(3,953 |
) |
|
|
1,030 |
|
|
Warranty liability |
(907 |
) |
|
|
(534 |
) |
|
|
(287 |
) |
|
|
9,781 |
|
|
Net cash used in operating activities of continuing operations |
(8,723 |
) |
|
|
(9,052 |
) |
|
|
(11,306 |
) |
|
|
(18,860 |
) |
|
Cash flows from (used in) investing activities: |
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
(1,200 |
) |
|
|
(1,562 |
) |
|
|
(2,862 |
) |
|
|
(3,186 |
) |
|
Sale of short-term investments, net |
284 |
|
|
|
— |
|
|
|
600 |
|
|
|
— |
|
|
Acquisition, net of acquired cash |
(5,948 |
) |
|
|
— |
|
|
|
(5,948 |
) |
|
|
— |
|
|
Dividends received from joint ventures |
6,395 |
|
|
|
3,420 |
|
|
|
14,273 |
|
|
|
9,243 |
|
|
Net cash from investing activities of continuing operations |
(469 |
) |
|
|
1,858 |
|
|
|
6,063 |
|
|
|
6,057 |
|
|
Cash flows from (used in) financing activities: |
|
|
|
|
|
|
|
Payments under short and long-term facilities |
(16,194 |
) |
|
|
(7,176 |
) |
|
|
(39,415 |
) |
|
|
(18,893 |
) |
|
Drawings on operating lines of credit and long-term facilities |
21,393 |
|
|
|
10,996 |
|
|
|
25,998 |
|
|
|
22,066 |
|
|
Payment of royalty payable |
(7,451 |
) |
|
|
(5,948 |
) |
|
|
(7,451 |
) |
|
|
(5,948 |
) |
|
Proceeds from share issuance, net |
107,922 |
|
|
|
— |
|
|
|
120,727 |
|
|
|
— |
|
|
Net cash from (used in) financing activities |
105,670 |
|
|
|
(2,128 |
) |
|
|
99,859 |
|
|
|
(2,775 |
) |
|
Effect of foreign exchange on cash and cash equivalents |
4,487 |
|
|
|
(842 |
) |
|
|
1,833 |
|
|
|
(1,506 |
) |
|
Increase (decrease) in cash and cash equivalents |
100,965 |
|
|
|
(10,164 |
) |
|
|
96,449 |
|
|
|
(17,084 |
) |
|
Cash and cash equivalents, beginning of period (including
restricted cash) |
59,746 |
|
|
|
39,092 |
|
|
|
64,262 |
|
|
|
46,012 |
|
|
Cash and cash equivalents, end of period (including restricted
cash) |
$ |
160,711 |
|
|
|
$ |
28,928 |
|
|
|
$ |
160,711 |
|
|
|
$ |
28,928 |
|
|
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