Westport Fuel Systems Reports Fourth Quarter and Full Year 2020 Financial Results
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Westport Fuel Systems Inc. (WPRT) reported strong fourth-quarter results for 2020, achieving record revenues of $83.9 million, a 13% increase year-over-year. OEM revenue surged 32% due to rising HPDI™ 2.0 sales. The company reported a net income of $4.1 million, translating to $0.03 per share, and an adjusted EBITDA of $8.1 million. For the full year 2020, revenues totaled $252.5 million, down 17% from 2019, primarily due to COVID-19 impacts. However, the liquidity position improved through share offerings, raising $27.6 million.
Positive
- Record quarterly revenue of $83.9 million, up 13% from previous year.
- OEM revenue increased by 32%, driven by HPDI 2.0 sales.
- Net income of $4.1 million, translating to $0.03 per share.
- Adjusted EBITDA improved by $4.5 million year-over-year to $8.1 million.
- Strengthened liquidity with $27.6 million raised from equity offerings.
Negative
- Full-year revenue of $252.5 million represented a 17% decrease from 2019.
- Net loss of $7.4 million for the year, equating to $0.05 per share.
- Adjusted EBITDA decreased from $28.4 million in 2019 to $14.7 million.
VANCOUVER, British Columbia, March 15, 2021 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (“WFS”) (TSX:WPRT / Nasdaq:WPRT) today reported financial results for the fourth quarter and year ended December 31, 2020 and provided an update on operations. All figures are in U.S. dollars unless otherwise stated.
FOURTH QUARTER 2020 HIGHLIGHTS
- Record revenue of
$83.9 million , an increase of13% over same period last year, with OEM revenue up32% due to continued growth in HPDI™ 2.0 sales volumes combined with strengthening light-duty OEM sales - Net income of
$4.1 million or$0.03 per share; Adjusted EBITDA was$8.1 million , or a$4.5 million improvement year-over-year - Liquidity bolstered by net
$27.6 million raised by shares issued under the at-the-market equity offering, of which$13.2 million was raised following the close of the quarter - Announced new product development work with current OEM partner to apply HPDI 2.0 to an upgraded base engine platform designed to meet Euro VI Step E emission regulations that take effect in 2024
FULL YEAR 2020 HIGHLIGHTS
- Revenue of
$252.5 million , down17% vs. 2019 due to COVID-19 pandemic’s impact on customer demand, partially offset by significant year-over-year growth in HPDI sales volumes to our initial launch partner - Net loss of
$7.4 million , or$0.05 per share; Notwithstanding the pandemic's impact, recorded positive adjusted EBITDA of$14.7 million , compared to$28.4 million in the prior year - Working with our lenders, we strengthened the balance sheet, improved overall liquidity and reduced cost of capital
- Joint venture with Weichai Power secured certification for WP12 natural gas engine powered by HPDI in China
- Combined our Indian businesses with UNO MINDA to create a JV to better serve the growing market in India for gaseous fuel systems through cost efficiencies and greater product choice
- Published enhanced Environment, Social and Governance ("ESG") report, highlighting our commitment to ongoing ESG performance improvements and responsible corporate citizenship
| “Despite the challenges of COVID-19, our team showed resilience and an ongoing commitment to providing exceptional service to our global customers. We made substantial progress on our business objectives this year, including engine certification in China, growth in key geographies like Europe and India, and strengthened the balance sheet and our overall liquidity. Following facilities shutdowns in the second quarter due to COVID-19, adoption of gaseous fuel-powered vehicles grew. Sales of our HPDI product recovered and surpassed 2019 volumes, and there is increasing recognition that gaseous fuels play an important role in enabling affordable transportation while reducing carbon emissions. More fleets are recognizing the improved sustainability performance and lower total cost of ownership delivered by our proven technology platform. I was also pleased to see the strong recovery in the fourth quarter of our Independent Aftermarket and Light-Duty OEM businesses that were hit particularly hard during the initial outbreak of the pandemic. We’ve entered 2021 with a strong order book, bolstered by regulatory support to reduce carbon from transportation and growing infrastructure investments for gaseous fuels. We remain committed to operational excellence and innovation that delivers on the promise of improving urban air quality and enabling economic advantages for our customers.” David M. Johnson, Chief Executive Officer |
4Q20 AND FULL YEAR 2020 CONTINUING OPERATIONS
| CONTINUING OPERATIONS | ||||||||||||||||
| Over / (Under) | Over / (Under) | |||||||||||||||
| ($ in millions, except per share amounts) | 4Q20 | 4Q19 | % | FY20 | FY19 | % | ||||||||||
| Revenues | $ | 83.9 | $ | 74.3 | 13 | % | $ | 252.5 | $ | 305.3 | (17) | % | ||||
| Gross Margin | 13.0 | 13.8 | (6) |
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FAQ
What were Westport Fuel Systems' fourth quarter results for 2020?
Westport Fuel Systems reported record revenue of $83.9 million in Q4 2020, a 13% increase from the previous year.
What was the net income for Westport Fuel Systems in Q4 2020?
The net income for Q4 2020 was $4.1 million, or $0.03 per share.
How did the COVID-19 pandemic impact Westport Fuel Systems' revenue?
The full-year revenue for 2020 was $252.5 million, which was down 17% compared to 2019 due to COVID-19's impact on customer demand.
What is the adjusted EBITDA for Westport Fuel Systems in 2020?
Westport recorded an adjusted EBITDA of $14.7 million for the full year 2020, down from $28.4 million in 2019.
What liquidity measures did Westport Fuel Systems take in 2020?
The company raised $27.6 million through shares issued under an at-the-market equity offering.
Westport Fuel Systems Inc Common Shares
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