Westport Fuel Systems Inc. (“
Westport") (TSX:WPRT
/ Nasdaq:WPRT), a leading supplier of advanced alternative fuel
systems and components for the global transportation industry,
reported financial results for the second quarter ended
June 30, 2024, and provided an update on operations. All
figures are in U.S. dollars unless otherwise stated.
“In the second quarter of 2024, we remained
focused on implementing the Company’s three strategic pillars:
harnessing the potential of our HPDI joint venture, enhancing
operational excellence, and continuous innovation to shape the
world’s hydrogen-powered future. We celebrated several
accomplishments consistent with our priorities and continue to
recognize we have more work to do. The closing of our HPDI joint
venture with Volvo Group in June was a transformational step
forward and represents one of many steps we are taking to evolve
the Company. Our financial results in the quarter were strong, with
results from our cost cutting initiatives, along with recent growth
projects delivering demonstrated margin improvement.
On July 4th, together with Volvo Group, we
celebrated our partnership for the future of HPDI. By combining
their extensive expertise in commercial vehicle manufacturing with
our innovative fuel system technology, we are creating a powerful
force for change. Together we are committed to delivering
sustainable, efficient, and economically viable solutions for
long-haul transportation.
Finally, our evolving business strategy has long
recognized the value of strategic partnerships, and our
collaboration within the HPDI joint venture exemplifies this
approach. By aligning with the right partners, we amplify our
strengths and leverage shared expertise to drive innovation more
efficiently and effectively. As we continue to adapt and refine our
focus, we have restructured our business into five key segments –
HPDI JV, Light-Duty, High-Pressure Controls and Systems, Heavy-Duty
OEM and Corporate. This reorganization strengthens the alignment
between our competitive strategy and internal operations,
positioning us to deliver sustainable, profitable growth over time.
Our new structure empowers our team to be more agile, accountable,
and sharply focused on achieving our long-term goals."
Dan Sceli, Chief Executive Officer, Westport
Fuel Systems
Q2 2024 Highlights
- Revenues decreased by 2% to
$83.4 million compared to $85.0 million in the same quarter last
year, primarily driven by decreased sales volumes in our Light-Duty
segment. This was partially offset by increased sales volume in our
High-Pressure Controls and Systems and Heavy-Duty Original
Equipment Manufacturer ("OEM") segments in the quarter. Revenue for
the three months ended June 30, 2024 includes two months of revenue
from Heavy-Duty OEM.
- Net income of $5.8 million for the
quarter compared to net loss of $13.2 million for the same quarter
last year. This was primarily the result of a $13.3 million
gain on deconsolidation of the HPDI business and formation of the
HPDI joint venture ("HPDI JV") with Volvo Group, improvement in
gross margin of $2.7 million, decrease in foreign exchange
loss by $2.3 million and depreciation and amortization by
$1.3 million, partially offset by an increase in research and
development expenditures of $0.8 million.
- Adjusted EBITDA[1] of negative $2.0
million compared to negative $4.0 million for the same period in
2023.
- Cash and cash equivalents were
$41.5 million at the end of the second quarter 2024. Cash provided
by operating activities was $1.5 million, primarily driven by net
cash generated from working capital of $4.5 million, partially
offset by operating losses in the quarter. Investing activities
included the sale of investments for $20.4 million related to
partial sale of our ownership interest in the HPDI JV and the Minda
Westport JV, offset by cash capital contributions into the newly
formed HPDI JV of $9.9 million and the purchase of capital assets
of $5.4 million. Cash used in financing activities was primarily
attributed to net debt repayments of $8.9 million in the period. An
additional $8.4 million related to the closing of the HPDI JV was
received following the end of the second quarter.
- Announced the closing the HPDI
joint venture with Volvo Group, working together to accelerate the
commercialization and global adoption of the HPDI™ fuel system
technology for long-haul and off-road applications.
|
CONSOLIDATED RESULTS |
|
|
|
|
($ in millions, except per share amounts) |
|
Over / (Under) % |
|
Over / (Under) % |
|
2Q24 |
2Q23 |
1H24 |
1H23 |
|
Revenues |
$ |
83.4 |
|
$ |
85.0 |
|
(2 |
)% |
$ |
161.0 |
|
$ |
167.3 |
|
(4 |
)% |
|
Gross Margin(2) |
|
17.1 |
|
|
14.4 |
|
19 |
% |
|
28.8 |
|
|
27.7 |
|
4 |
% |
|
Gross Margin % |
|
21 |
% |
|
17 |
% |
|
|
18 |
% |
|
17 |
% |
|
|
Income (loss) from Investments Accounted for by the Equity
Method(1) |
|
(0.7 |
) |
|
0.1 |
|
(800 |
)% |
|
(0.7 |
) |
|
0.2 |
|
(450 |
)% |
| Net
Income (Loss) |
$ |
5.8 |
|
$ |
(13.2 |
) |
144 |
% |
$ |
(7.8 |
) |
$ |
(23.8 |
) |
67 |
% |
| Net
Income (Loss) per Share - Basic |
$ |
0.34 |
|
$ |
(0.77 |
) |
144 |
% |
$ |
(0.45 |
) |
$ |
(1.39 |
) |
68 |
% |
| Net
Income (Loss) per Share - Diluted |
$ |
0.33 |
|
$ |
(0.77 |
) |
143 |
% |
$ |
(0.45 |
) |
$ |
(1.39 |
) |
68 |
% |
|
EBITDA(2) |
$ |
9.0 |
|
$ |
(10.1 |
) |
189 |
% |
$ |
(0.2 |
) |
$ |
(16.4 |
) |
99 |
% |
|
Adjusted EBITDA(2) |
$ |
(2.0 |
) |
$ |
(4.0 |
) |
50 |
% |
$ |
(8.6 |
) |
$ |
(8.5 |
) |
(1 |
)% |
(1) This includes income from our Minda Westport Technologies
Limited joint ventures.
(2) Gross margin, 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.
Revised Segment Reporting
Aligning with Westport's evolving business strategy, the Company
has refined its business operations and decision-making. Beginning
with the second quarter of 2024, Westport will report results under
five reportable segments: HPDI JV, Light-Duty, High-Pressure
Controls and Systems, Heavy-Duty OEM and Corporate. Financial
results from the HPDI joint venture are being accounted for under
the equity method of accounting for investments and are also
supported by enhanced disclosures in the Company's Management
Discussion and Analysis as well as in the Company's condensed
consolidated financial statements. The new segments are aligned
more strongly with Westport's strategic priorities and provide
enhanced disclosure regarding the High-Pressure Controls and
Systems and Light-Duty businesses.
Our High-Pressure Controls and Systems segment is at the
forefront of the clean energy revolution, designing, developing,
and producing high-demand components for transportation and
industrial applications. We partner with the world's leading fuel
cell and hydrogen engine manufacturers and companies committed to
decarbonizing transport, offering versatile solutions that serve a
variety of fuel types. While hydrogen is key to the future
decarbonization of transport, our components and solutions are
already powering emission reducing innovation today across a range
of gaseous fuels. While we're still small, our strategic position
and innovative capabilities put us on the cusp of significant
growth, ensuring we're the go-to choice for those shaping the
future of clean energy, today and tomorrow.
Our Light-Duty segment manufactures LPG and CNG
fuel storage solutions and supplies fuel storage tanks to the
aftermarket, OEM, and other market segments across a wide range of
brands. The Light-Duty segment includes the consolidated results
from our delayed OEM, independent aftermarket, light-duty OEM
operations and electronics businesses.
Our Heavy-Duty OEM business represents historical results from
our heavy-duty business for the period January 1 until the
formation of the joint venture which occurred on June 3, 2024 and
for comparative purposes, for the period January 1 to June 30,
2023. Following the close of the HPDI JV in June 2024, the results
of this business are reflected in the HPDI JV business segment.
Going forward, the Heavy-Duty OEM segment will reflect revenue
earned from a transitional services agreement in place with the
HPDI joint venture. This transitional services agreement is
intended to support the HPDI joint venture in the short-term as the
organization transitions to its own operating entity.
The Company has recast previously reported
quarterly segment financial information for the years ended
December 31, 2022 and 2023 along with the first quarter of 2024 to
reflect the new segments. The change in reporting has no impact on
consolidated historical financial results. The recast financial
information can be found under the supplemental information section
of this press release.
Segment Information
Light-Duty Segment
Revenue for the three and six months ended June
30, 2024 was $69.5 million and $132.7 million, respectively,
compared with $73.7 million and $140.2 million for the three and
six months ended June 30, 2023.
Light-Duty revenue decreased by $4.2 million for
the three months ended June 30, 2024 compared to the prior year
quarter and decreased by $7.5 million for the six months ended June
30, 2024 compared to the prior year period. This was primarily
driven by a decrease in sales in our delayed OEM, independent
aftermarket and fuel storage businesses, and partially offset by
increases in sales in our light-duty OEM and electronics
businesses.
Gross margin increased by $2.4 million to $15.1
million, or 22% of revenue, for the three months ended June 30,
2024 compared to $12.7 million, or 17% of revenue, for the three
months ended June 30, 2023. This was primarily driven by a change
in sales mix with increases in sales to European customers and
reduction in sales to developing regions.
Gross margin increased by $2.5 million to $27.5
million, or 21% of revenue, for the six months ended June 30, 2024
compared to $25.0 million, or 18% of revenue, for the six months
ended June 30, 2023.
High-Pressure Controls and Systems
Segment
Revenue for the three and six months ended June 30, 2024 was
$3.4 million and $5.8 million, respectively, compared with $2.8
million and $5.7 million for the three and six months ended June
30, 2023. The increase in revenue for the three months ended June
30, 2024 compared to the prior year quarter was primarily driven by
increased sales volumes in product and service revenue.
Gross margin increased by $0.1 million to $0.7
million, or 21% of revenue, for the three months ended June 30,
2024 compared to $0.6 million or 21% of revenue, for the three
months ended June 30, 2023.
Gross margin decreased by $0.3 million to $1.1
million, or 19% of revenue, for the six months ended June 30, 2024
compared to $1.4 million, or 25% of revenue, for the six months
ended June 30, 2023. The decrease in gross margin was primarily
related to higher production overhead costs related to the
development of new products.
Heavy-Duty OEM Segment
Revenues for the three and six months ended June
30, 2024 includes revenue until the closing of the transaction to
form the HPDI JV, which occurred June 3, 2024. Revenue for the
three and six months ended June 30, 2024 was $10.5 million and
$22.5 million, respectively, compared with $8.5 million and $21.4
million for the three and six months ended June 30, 2023. The
increase in revenue for the three months ended June 30, 2024
primarily relates to an increase in product and engineering sales
for the two months when the Company wholly owned the HPDI business.
Additionally, there is one month of inventory sales from the
Company to HPDI JV for $0.5 million under the transitional services
agreement.
Gross margin increased by $0.2 million to $1.3
million, or 12% of revenue, for the three months ended June 30,
2024 compared to $1.1 million or 13% of revenue, for the three
months ended June 30, 2023.
Gross margin decreased by $1.1 million to $0.2
million, or 1% of revenue, for the six months ended June 30, 2024
compared to $1.3 million, or 6% of revenue, for the six months
ended June 30, 2023.
Selected HPDI JV Statements of Operations
Data
We account for the HPDI JV using the equity
method of accounting for investments.
The following table sets forth a summary of the
financial results of HPDI JV for the period June 3, 2024 to June
30, 2024:
| |
|
Three months ended June 30, |
|
|
Change |
|
Six months ended June 30, |
|
|
Change |
| (in millions of U.S.
dollars) |
|
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
|
|
2024 |
|
|
|
2023 |
|
|
$ |
|
% |
|
Total revenue |
|
$ |
4.1 |
|
|
$ |
— |
|
|
$ |
4.1 |
|
|
— |
% |
|
$ |
4.1 |
|
|
$ |
— |
|
|
$ |
4.1 |
|
|
— |
% |
| Gross margin1 |
|
$ |
0.2 |
|
|
$ |
— |
|
|
$ |
0.2 |
|
|
— |
% |
|
$ |
0.2 |
|
|
$ |
— |
|
|
$ |
0.2 |
|
|
— |
% |
| Gross margin % |
|
|
5 |
% |
|
|
— |
% |
|
|
|
|
|
|
5 |
% |
|
|
— |
% |
|
|
|
|
| Loss before income taxes |
|
$ |
(2.0 |
) |
|
$ |
— |
|
|
$ |
(2.0 |
) |
|
— |
% |
|
$ |
(2.0 |
) |
|
$ |
— |
|
|
$ |
(2.0 |
) |
|
— |
% |
| Net loss attributable to the
Company |
|
$ |
(1.1 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
— |
% |
|
$ |
(1.1 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
— |
% |
(1) Gross margin is a non-GAAP measure. Please refer to GAAP and
NON-GAAP FINANCIAL MEASURES for the reconciliation to equivalent
GAAP measures and limitations on the use of such measures.
|
SEGMENT RESULTS |
Three months ended June 30, 2024 |
| |
Revenue |
|
Operating income (loss) |
|
Depreciation & amortization |
|
Equity income (loss) |
|
Light-Duty |
$ |
69.5 |
|
$ |
3.3 |
|
|
$ |
1.5 |
|
$ |
0.5 |
|
| High-Pressure
Controls & Systems |
|
3.4 |
|
|
(0.9 |
) |
|
|
0.1 |
|
|
— |
|
| Heavy-Duty OEM |
|
10.5 |
|
|
(2.3 |
) |
|
|
— |
|
|
— |
|
| Corporate |
|
— |
|
|
(5.4 |
) |
|
|
0.1 |
|
|
(1.2 |
) |
| HPDI JV |
|
4.1 |
|
|
(2.0 |
) |
|
|
0.3 |
|
|
— |
|
| Total segment |
|
87.5 |
|
|
(7.3 |
) |
|
|
2.0 |
|
|
(0.7 |
) |
| Less: HPDI JV |
|
4.1 |
|
|
(2.0 |
) |
|
|
0.3 |
|
|
— |
|
| Total
consolidated |
$ |
83.4 |
|
$ |
(5.3 |
) |
|
$ |
1.7 |
|
$ |
(0.7 |
) |
|
SEGMENT RESULTS |
Three months ended June 30, 2023 |
| |
Revenue |
|
Operating income (loss) |
|
Depreciation & amortization |
|
Equity income (loss) |
|
Light-Duty |
$ |
73.7 |
|
$ |
(1.8 |
) |
|
$ |
1.7 |
|
$ |
0.1 |
| High-Pressure
Controls & Systems |
|
2.8 |
|
|
(0.6 |
) |
|
|
0.1 |
|
|
— |
| Heavy-Duty OEM |
|
8.5 |
|
|
(3.3 |
) |
|
|
1.1 |
|
|
— |
| Corporate |
|
— |
|
|
(4.5 |
) |
|
|
0.1 |
|
|
— |
| HPDI JV |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
| Total segment |
|
85.0 |
|
|
(10.2 |
) |
|
|
3.0 |
|
|
0.1 |
| Less: HPDI JV |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
| Total
Consolidated |
$ |
85.0 |
|
$ |
(10.2 |
) |
|
$ |
3.0 |
|
$ |
0.1 |
| |
Q2 2024 Conference CallWestport
has scheduled a conference call on August 14, 2024, at 7:00 am
Pacific Time (10:00 am Eastern Time) to discuss these results. To
access the conference call please register at
https://register.vevent.com/register/BIe166497326ef478e85dda36eea3f3316.
The live webcast of the conference call can be accessed through the
Westport website at https://investors.wfsinc.com/.
The webcast will be archived on Westport’s
website and a replay will be available at
https://investors.wfsinc.com beginning August 15, 2024
Financial Statements and Management's
Discussion and Analysis To view Westport financials for
the second quarter ended June 30th, 2024, please visit
https://investors.wfsinc.com/financials/
About Westport Fuel Systems
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 transportation 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.
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 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, 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, ongoing supply chain
challenges 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 InformationInvestor 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 gross margin, gross margin as a percentage
of revenue, net income, EBITDA and Adjusted EBITDA. The Company
defines gross margin as revenue less cost of revenue. 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 gross margin, gross margin as a
percentage of revenue, 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.
| Gross
margin and Gross margin as percentage of Revenue |
| (expressed in millions of U.S.
dollars) |
|
2Q23 |
|
3Q23 |
|
4Q23 |
|
1Q24 |
|
2Q24 |
| Three months ended |
|
|
|
|
|
|
Revenue |
|
$ |
85.0 |
|
|
$ |
77.4 |
|
|
$ |
87.2 |
|
|
$ |
77.6 |
|
|
$ |
83.4 |
|
| Less: Cost of revenue |
|
|
70.6 |
|
|
|
64.2 |
|
|
|
79.2 |
|
|
|
65.9 |
|
|
|
66.3 |
|
| Gross
margin |
|
|
14.4 |
|
|
|
13.2 |
|
|
|
8.0 |
|
|
|
11.7 |
|
|
|
17.1 |
|
| Gross margin
% |
|
|
16.9 |
% |
|
|
17.1 |
% |
|
|
9.2 |
% |
|
|
15.1 |
% |
|
|
20.5 |
% |
| EBITDA
and Adjusted EBITDA |
| (expressed in millions of U.S.
dollars) |
|
2Q23 |
|
3Q23 |
|
4Q23 |
|
1Q24 |
|
2Q24 |
| Three months ended |
|
|
|
|
|
|
Income (Loss) before income taxes |
|
$ |
(13.0 |
) |
|
$ |
(12.0 |
) |
|
$ |
(14.0 |
) |
|
$ |
(12.9 |
) |
|
$ |
6.8 |
|
| Interest expense (income),
net |
|
|
(0.1 |
) |
|
|
0.2 |
|
|
|
(0.2 |
) |
|
|
0.5 |
|
|
|
0.5 |
|
| Depreciation and
amortization |
|
|
3.0 |
|
|
|
3.2 |
|
|
|
3.3 |
|
|
|
3.2 |
|
|
|
1.7 |
|
| EBITDA |
|
|
(10.1 |
) |
|
|
(8.6 |
) |
|
|
(10.9 |
) |
|
|
(9.2 |
) |
|
|
9.0 |
|
| Stock based compensation |
|
|
0.8 |
|
|
|
(0.3 |
) |
|
|
1.4 |
|
|
|
0.3 |
|
|
|
1.2 |
|
| Unrealized foreign exchange
(gain) loss |
|
|
2.4 |
|
|
|
1.4 |
|
|
|
(0.9 |
) |
|
|
1.8 |
|
|
|
0.1 |
|
| Loss on extinguishment of
royalty payable |
|
|
2.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Severance costs |
|
|
— |
|
|
|
4.5 |
|
|
|
— |
|
|
|
0.5 |
|
|
|
0.2 |
|
| Gain on deconsolidation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13.3 |
) |
| Restructuring costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.8 |
|
| Impairment of long-term
investments |
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
|
— |
|
|
|
— |
|
| Adjusted
EBITDA |
|
$ |
(4.0 |
) |
|
$ |
(3.0 |
) |
|
$ |
(10.0 |
) |
|
$ |
(6.6 |
) |
|
$ |
(2.0 |
) |
|
WESTPORT FUEL SYSTEMS INC. Condensed Consolidated
Interim Balance Sheets (unaudited) (Expressed in thousands of
United States dollars, except share amounts) June 30, 2024 and
December 31, 2023 |
| |
| |
|
June 30, 2024 |
|
|
December 31, 2023 |
|
| Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents (including restricted cash) |
|
$ |
41,522 |
|
|
$ |
54,853 |
|
|
Accounts receivable |
|
|
93,789 |
|
|
|
88,077 |
|
|
Inventories |
|
|
56,407 |
|
|
|
67,530 |
|
|
Prepaid expenses |
|
|
6,482 |
|
|
|
6,323 |
|
| Total current
assets |
|
|
198,200 |
|
|
|
216,783 |
|
|
Long-term investments |
|
|
45,647 |
|
|
|
4,792 |
|
|
Property, plant and equipment |
|
|
40,351 |
|
|
|
69,489 |
|
|
Operating lease right-of-use assets |
|
|
19,859 |
|
|
|
22,877 |
|
|
Intangible assets |
|
|
6,032 |
|
|
|
6,822 |
|
|
Deferred income tax assets |
|
|
10,637 |
|
|
|
11,554 |
|
|
Goodwill |
|
|
2,966 |
|
|
|
3,066 |
|
|
Other long-term assets |
|
|
9,438 |
|
|
|
20,365 |
|
| Total
assets |
|
$ |
333,130 |
|
|
$ |
355,748 |
|
| Liabilities and
shareholders’ equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
103,703 |
|
|
$ |
95,374 |
|
|
Current portion of operating lease liabilities |
|
|
2,435 |
|
|
|
3,307 |
|
|
Short-term debt |
|
|
3,351 |
|
|
|
15,156 |
|
|
Current portion of long-term debt |
|
|
14,464 |
|
|
|
14,108 |
|
|
Current portion of warranty liability |
|
|
4,448 |
|
|
|
6,892 |
|
| Total current
liabilities |
|
|
128,401 |
|
|
|
134,837 |
|
|
Long-term operating lease liabilities |
|
|
17,382 |
|
|
|
19,300 |
|
|
Long-term debt |
|
|
26,363 |
|
|
|
30,957 |
|
|
Warranty liability |
|
|
1,269 |
|
|
|
1,614 |
|
|
Deferred income tax liabilities |
|
|
3,326 |
|
|
|
3,477 |
|
|
Other long-term liabilities |
|
|
4,864 |
|
|
|
5,115 |
|
| Total
liabilities |
|
|
181,605 |
|
|
|
195,300 |
|
| Shareholders’ equity: |
|
|
|
|
|
Share capital: |
|
|
|
|
|
Unlimited common and preferred shares, no par value |
|
|
|
|
|
17,258,364 (2023 - 17,174,502) common shares issued and
outstanding |
|
|
1,245,651 |
|
|
|
1,244,539 |
|
|
Other equity instruments |
|
|
9,193 |
|
|
|
9,672 |
|
|
Additional paid in capital |
|
|
11,516 |
|
|
|
11,516 |
|
|
Accumulated deficit |
|
|
(1,082,265 |
) |
|
|
(1,074,434 |
) |
|
Accumulated other comprehensive loss |
|
|
(32,570 |
) |
|
|
(30,845 |
) |
| Total shareholders'
equity |
|
|
151,525 |
|
|
|
160,448 |
|
|
Total liabilities and shareholders' equity |
|
$ |
333,130 |
|
|
$ |
355,748 |
|
| 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, 2024 and 2023 |
|
|
| |
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Revenue |
|
$ |
83,386 |
|
|
$ |
85,022 |
|
|
$ |
160,960 |
|
|
$ |
167,262 |
|
| Cost of revenue and
expenses: |
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
66,264 |
|
|
|
70,653 |
|
|
|
132,115 |
|
|
|
139,532 |
|
|
Research and development |
|
|
6,560 |
|
|
|
5,785 |
|
|
|
14,253 |
|
|
|
13,048 |
|
|
General and administrative |
|
|
11,603 |
|
|
|
10,546 |
|
|
|
21,956 |
|
|
|
20,314 |
|
|
Sales and marketing |
|
|
3,440 |
|
|
|
4,820 |
|
|
|
6,727 |
|
|
|
8,469 |
|
|
Foreign exchange loss |
|
|
57 |
|
|
|
2,420 |
|
|
|
1,877 |
|
|
|
3,496 |
|
|
Depreciation and amortization |
|
|
720 |
|
|
|
1,021 |
|
|
|
1,763 |
|
|
|
2,058 |
|
| |
|
|
88,644 |
|
|
|
95,245 |
|
|
|
178,691 |
|
|
|
186,917 |
|
| Loss from operations |
|
|
(5,258 |
) |
|
|
(10,223 |
) |
|
|
(17,731 |
) |
|
|
(19,655 |
) |
| |
|
|
|
|
|
|
|
|
| Income (loss) from investments
accounted for by the equity method |
|
|
(688 |
) |
|
|
56 |
|
|
|
(657 |
) |
|
|
185 |
|
| Gain on deconsolidation |
|
|
13,266 |
|
|
|
— |
|
|
|
13,266 |
|
|
|
— |
|
| Interest on long-term debt and
accretion on royalty payable |
|
|
(394 |
) |
|
|
(643 |
) |
|
|
(1,206 |
) |
|
|
(1,490 |
) |
| Loss on extinguishment of
royalty payable |
|
|
— |
|
|
|
(2,909 |
) |
|
|
— |
|
|
|
(2,909 |
) |
| Interest and other income
(loss), net of bank charges |
|
|
(149 |
) |
|
|
733 |
|
|
|
192 |
|
|
|
1,199 |
|
| Income (loss) before income
taxes |
|
|
6,777 |
|
|
|
(12,986 |
) |
|
|
(6,136 |
) |
|
|
(22,670 |
) |
| Income tax expense |
|
|
960 |
|
|
|
221 |
|
|
|
1,695 |
|
|
|
1,165 |
|
| Net income (loss) for the
period |
|
|
5,817 |
|
|
|
(13,207 |
) |
|
|
(7,831 |
) |
|
|
(23,835 |
) |
| |
|
|
|
|
|
|
|
|
| Changes in foreign currency
translation adjustment |
|
|
(1,212 |
) |
|
|
(7,322 |
) |
|
|
(1,642 |
) |
|
|
(5,352 |
) |
| Ownership share of equity
method investments' other comprehensive loss |
|
|
(83 |
) |
|
|
— |
|
|
|
(83 |
) |
|
$ |
— |
|
| Other comprehensive loss |
|
|
(1,295 |
) |
|
|
(7,322 |
) |
|
|
(1,725 |
) |
|
|
(5,352 |
) |
| Comprehensive income
(loss) |
|
$ |
4,522 |
|
|
$ |
(20,529 |
) |
|
$ |
(9,556 |
) |
|
$ |
(29,187 |
) |
| |
|
|
|
|
|
|
|
|
| Net income (loss) per
share: |
|
|
|
|
|
|
|
|
| Net income (loss) per share -
basic |
|
$ |
0.34 |
|
|
$ |
(0.77 |
) |
|
$ |
(0.45 |
) |
|
$ |
(1.39 |
) |
| Net income (loss) per share -
diluted |
|
$ |
0.33 |
|
|
$ |
(0.77 |
) |
|
$ |
(0.45 |
) |
|
|
(1.39 |
) |
| Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
| Basic |
|
|
17,239,460 |
|
|
|
17,173,252 |
|
|
|
17,230,000 |
|
|
|
17,171,137 |
|
| Diluted |
|
|
17,488,070 |
|
|
|
17,173,252 |
|
|
|
17,230,000 |
|
|
|
17,171,137 |
|
|
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, 2024 and 2023 |
| |
| |
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Operating
activities: |
|
|
|
|
|
|
|
|
| Net income (loss) for the
period |
|
$ |
5,817 |
|
|
$ |
(13,207 |
) |
|
$ |
(7,831 |
) |
|
$ |
(23,835 |
) |
| Adjustments to
reconcile net loss to net cash used in operating activities: |
|
Depreciation and amortization |
|
|
1,716 |
|
|
|
2,993 |
|
|
|
4,963 |
|
|
|
6,020 |
|
|
Stock-based compensation expense |
|
|
302 |
|
|
|
742 |
|
|
|
633 |
|
|
|
1,375 |
|
|
Unrealized foreign exchange loss |
|
|
57 |
|
|
|
2,420 |
|
|
|
1,877 |
|
|
|
3,496 |
|
|
Deferred income tax (recovery) |
|
|
385 |
|
|
|
125 |
|
|
|
345 |
|
|
|
(23 |
) |
|
(Income) loss from investments accounted for by the equity
method |
|
|
688 |
|
|
|
(56 |
) |
|
|
657 |
|
|
|
(185 |
) |
|
Interest on long-term debt and accretion on royalty payable |
|
|
13 |
|
|
|
67 |
|
|
|
35 |
|
|
|
172 |
|
|
Change in inventory write-downs |
|
|
1,023 |
|
|
|
992 |
|
|
|
1,436 |
|
|
|
1,578 |
|
|
Loss on extinguishment of royalty payable |
|
|
— |
|
|
|
2,909 |
|
|
|
— |
|
|
|
2,909 |
|
|
Change in bad debt expense |
|
|
(28 |
) |
|
|
288 |
|
|
|
(149 |
) |
|
|
372 |
|
|
Gain on sale of assets |
|
|
— |
|
|
|
(21 |
) |
|
|
— |
|
|
|
(21 |
) |
|
Gain on deconsolidation |
|
|
(13,266 |
) |
|
|
— |
|
|
|
(13,266 |
) |
|
|
— |
|
|
Other |
|
|
280 |
|
|
|
— |
|
|
|
32 |
|
|
|
— |
|
| Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(2,743 |
) |
|
|
469 |
|
|
|
9,783 |
|
|
|
(572 |
) |
|
Inventories |
|
|
980 |
|
|
|
(537 |
) |
|
|
(6,454 |
) |
|
|
(1,128 |
) |
|
Prepaid expenses |
|
|
(188 |
) |
|
|
3,091 |
|
|
|
(588 |
) |
|
|
1,407 |
|
|
Accounts payable and accrued liabilities |
|
|
7,470 |
|
|
|
287 |
|
|
|
12,195 |
|
|
|
1,050 |
|
|
Warranty liability |
|
|
(1,007 |
) |
|
|
(1,179 |
) |
|
|
(2,027 |
) |
|
|
(2,561 |
) |
| Net cash provided by
(used in) operating activities |
|
|
1,499 |
|
|
|
(617 |
) |
|
|
1,641 |
|
|
|
(9,946 |
) |
| Investing
activities: |
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(5,437 |
) |
|
|
(4,905 |
) |
|
|
(10,330 |
) |
|
|
(7,912 |
) |
|
Proceeds from sale of investments |
|
|
20,430 |
|
|
|
— |
|
|
|
20,430 |
|
|
|
— |
|
|
Proceeds on sale of assets |
|
|
434 |
|
|
|
35 |
|
|
|
569 |
|
|
|
133 |
|
|
Dividends received from investments accounted for by the equity
method |
|
|
297 |
|
|
|
— |
|
|
|
297 |
|
|
|
— |
|
|
Capital contributions to investments accounted for by the equity
method |
|
|
(9,900 |
) |
|
|
— |
|
|
|
(9,900 |
) |
|
|
— |
|
| Net cash provided by
(used in) investing activities |
|
|
5,824 |
|
|
|
(4,870 |
) |
|
|
1,066 |
|
|
|
(7,779 |
) |
| Financing
activities: |
|
|
|
|
|
|
|
|
|
Repayments of operating lines of credit and long-term
facilities |
|
|
(16,388 |
) |
|
|
(10,564 |
) |
|
|
(34,077 |
) |
|
|
(21,558 |
) |
|
Drawings on operating lines of credit and long-term facilities |
|
|
7,488 |
|
|
|
4,845 |
|
|
|
19,336 |
|
|
|
13,096 |
|
|
Payment of royalty payable |
|
|
— |
|
|
|
(8,687 |
) |
|
|
— |
|
|
|
(8,687 |
) |
| Net cash used in
financing activities |
|
|
(8,900 |
) |
|
|
(14,406 |
) |
|
|
(14,741 |
) |
|
|
(17,149 |
) |
| Effect of foreign exchange on
cash and cash equivalents |
|
|
(803 |
) |
|
|
195 |
|
|
|
(1,297 |
) |
|
|
955 |
|
| Net decrease in cash
and cash equivalents |
|
|
(2,380 |
) |
|
|
(19,698 |
) |
|
|
(13,331 |
) |
|
|
(33,919 |
) |
| Cash and cash equivalents,
beginning of period (including restricted cash) |
|
|
43,902 |
|
|
|
71,963 |
|
|
|
54,853 |
|
|
|
86,184 |
|
| Cash and cash
equivalents, end of period (including restricted
cash) |
|
$ |
41,522 |
|
|
$ |
52,265 |
|
|
$ |
41,522 |
|
|
$ |
52,265 |
|
|
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, 2024 and 2023 |
| |
|
Supplemental Information |
| |
|
Historical Segment Results |
|
|
|
|
|
|
|
|
|
(expressed in millions of U.S. dollars) |
|
1Q22 |
|
2Q22 |
|
3Q22 |
|
4Q22 |
|
1Q23 |
|
2Q23 |
|
3Q23 |
|
4Q23 |
|
1Q24 |
| Three months ended |
|
|
|
|
|
|
|
|
|
|
Light-Duty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$62.0 |
|
$63.8 |
|
$57.5 |
|
$64.0 |
|
$66.4 |
|
$73.7 |
|
$60.2 |
|
$63.4 |
|
$63.2 |
|
Gross margin |
|
$10.5 |
|
$11.6 |
|
$11.4 |
|
$9.0 |
|
$12.3 |
|
$12.7 |
|
$12.0 |
|
$12.1 |
|
$12.4 |
|
Gross margin % |
|
16.9% |
|
18.2% |
|
19.8% |
|
14.1% |
|
18.5% |
|
17.2% |
|
19.9% |
|
19.1% |
|
19.6% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| High-Pressure
Controls & Systems |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$2.0 |
|
$4.4 |
|
$3.5 |
|
$4.7 |
|
$2.9 |
|
$2.8 |
|
$3.7 |
|
$2.5 |
|
$2.4 |
|
Gross margin |
|
$0.2 |
|
$1.2 |
|
$1.0 |
|
$1.3 |
|
$0.8 |
|
$0.6 |
|
$1.0 |
|
$0.4 |
|
$0.4 |
|
Gross margin % |
|
10.0% |
|
27.3% |
|
28.6% |
|
27.7% |
|
27.6% |
|
21.4% |
|
27.0% |
|
16.0% |
|
16.7% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Heavy-Duty
OEM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$12.5 |
|
$11.8 |
|
$10.2 |
|
$9.3 |
|
$12.9 |
|
$8.5 |
|
$13.5 |
|
$21.3 |
|
$12.0 |
|
Gross margin |
|
$(0.8) |
|
$(2.3) |
|
$(1.1) |
|
$(5.8) |
|
$0.2 |
|
$1.1 |
|
$0.2 |
|
$(4.5) |
|
$(1.1) |
|
Gross margin % |
|
(6.4)% |
|
(19.5)% |
|
(10.8)% |
|
(62.4)% |
|
1.6% |
|
12.9% |
|
1.5% |
|
(21.1)% |
|
(9.2)% |
Westport Fuel Systems (TSX:WPRT)
Historical Stock Chart
From Oct 2024 to Nov 2024
Westport Fuel Systems (TSX:WPRT)
Historical Stock Chart
From Nov 2023 to Nov 2024
