Westport Fuel Systems Reports Third Quarter 2022 Financial Results
Westport Fuel Systems reported a 4% revenue decline, totaling $71.2 million, for Q3 2022, largely due to unfavorable foreign exchange impacts. Excluding currency effects, revenues would have risen by 10%. A net loss of $11.9 million marked a significant increase from the $5.8 million loss in Q3 2021, driven by equity income loss from a joint venture and foreign exchange losses. However, promising hydrogen HPDI technology test results showed potential for improved efficiency in heavy-duty transport. Cash reserves stood at $86.5 million, indicating liquidity.
- Hydrogen HPDI technology demonstrated peak brake thermal efficiency of 51.5%, showcasing potential for future growth.
- Excluding currency impacts, total revenues increased by 10%, highlighting underlying business strength.
- Increased sales volumes in the IAM business unit in Eastern Europe, Algeria, and Peru.
- Net loss rose to $11.9 million versus $5.8 million in Q3 2021.
- Adjusted EBITDA worsened to negative $4.5 million from negative $1.4 million year-over-year.
- Higher production costs and reliance on LNG amidst rising prices negatively impacted margins.
VANCOUVER, British Columbia, Nov. 07, 2022 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (“Westport") (TSX:WPRT / Nasdaq:WPRT) reported financial results for the third quarter ended September 30, 2022, and provided an update on operations. All figures are in U.S. dollars unless otherwise stated.
THIRD QUARTER 2022 HIGHLIGHTS
- Revenues decreased
4% to$71.2 million compared to the same period in 2021, primarily driven by the weakening of the Euro against the U.S. dollar. Excluding foreign currency translation, total revenues would have increased by10% .
- Higher sales volumes for the independent aftermarket ("IAM") business unit in Eastern Europe, Algeria, and Peru, partially offset by lower sales volume to Russian customers.
- Revenues from Original Equipment Manufacturer ("OEM") business unit customers were comparable to the same period 2021, including increased sales of hydrogen, electronics and fuel storage products, offset by lower sales of CNG and LNG products due to higher natural gas prices in the European market.
- Net loss of
$11.9 million for the quarter ended September 30, 2022, compared to a net loss of$5.8 million for the same quarter last year. The decrease in earnings was driven by the loss of equity income from the termination and sale of the Cummins Westport Inc (“CWI”) joint venture and foreign exchange loss.
- Cash and cash equivalents were
$86.5 million at the end of the third quarter of 2022. Cash used in operating activities during the quarter was$8.6 million , due to operating losses of$10.9 million and debt repayment of$3.6 million , partially offset by net changes to working capital.
- Adjusted EBITDA[1] of negative
$4.5 million compared to negative$1.4 million for the same period in 2021.
- Announced impressive hydrogen HPDI test results from the demonstration program with Scania. Applying Westport’s HPDI technology fueled with hydrogen to Scania's 13-Litre CBE1 platform, demonstrated peak Brake Thermal Efficiency of
51.5% complemented by48.7% at road load conditions, with engine-out NOx similar to the base diesel engine.
[1] Adjusted earnings before interest, taxes and depreciation is a non-GAAP measure. Please refer to NON-GAAP FINANCIAL MEASURES in Westport’s Management Discussion and Analysis for the reconciliation.
“While economies and our industry continue to be hit with significant headwinds including inflation and dramatically rising energy costs, we are seeing some positive trends emerge and are optimistic about our long-term future. While these headwinds are expected to continue, Westport is preparing for growth and profitability, focused on driving value in new and existing passenger car markets, working directly with key OEMs to advance evaluation of our H2 HPDI™ solution for long-haul, heavy-duty transport, and enhancing margins throughout the business. Absent the effects of foreign exchange changes, revenue would have increased by
Sales growth of our fuel storage, hydrogen components, and electronics products along with continued growth in volumes to our OEM customers in India all drove increased revenue in our OEM business this quarter. Unfortunately, these strengths were offset by the impact of high natural gas prices on European market sales to light-duty and heavy-duty OEMs.
Looking to the future, the world’s population continues to grow, and the need to move freight follows this growth. Affordable solutions for heavy-duty, long-haul transport are required and our H2 HPDI™ fuel systems meet the demand for a high performance, high efficiency, clean, affordable solution.
We are thrilled with the recent results of our demonstration program with Scania. Our solution not only allows OEMs to preserve their existing manufacturing infrastructure and associated substantial capital investments, but it also demonstrates that an engine using HPDI with hydrogen can achieve significantly better performance and efficiency than with diesel fuel. These results are a step forward in demonstrating our H2 HPDI™ fuel system is a cost-competitive pathway to reduce CO2 emissions from heavy-duty transportation applications that require robust and reliable solutions.
Despite the decrease in business in Russia due to the Russian/Ukraine conflict and related sanctions, our team was diligent in expanding into new markets and deepening our work in current markets, achieving revenue above what we delivered last year in Euros , even with the impact of the foreign exchange. Light duty vehicles represent
We remain confident that our clean and affordable products will be an important part of the solution and competitive in global markets.”
David M. Johnson, Chief Executive Officer
3Q22 Operations
| CONSOLIDATED RESULTS | ||||||||||||||||
| ($ in millions, except per share amounts) | 3Q22 | 3Q21 | Over / (Under) % | 9M22 | 9M21 | Over / (Under) % | ||||||||||
| Revenues | $ | 71.2 | $ | 74.3 | (4 | )% | $ | 227.7 | $ | 229.8 | (1 | )% | ||||
| Gross Margin(2) | $ | 11.3 | $ | 10.1 | 11 | % | $ | 31.7 | $ | 38.9 | (18 | )% | ||||
| Gross Margin % | 16 | % | 14 | % | 14 | % | 17 | % | ||||||||
| Operating Expenses | $ | 22.2 | $ | 18.8 | 18 | % | $ | 64.8 | $ | 59.4 | 9 | % | ||||
| Income from Investments Accounted for by the Equity Method(1) | $ | 0.2 | $ | 4.1 | (95 | )% | $ | 1.0 | $ | 18.7 | (95 | )% | ||||
| Net Income (Loss) | $ | (11.9 | ) | $ | (5.8 | ) | 107 | % | $ | (15.8 | ) | $ | 8.3 | 290 | % | |
| Net Income (Loss) per Share | $ | (0.07 | ) | $ | (0.03 | ) | 78 | % | $ | (0.09 | ) | $ | 0.05 | (280 | )% | |
| EBITDA(2) | $ | (8.0 | ) | $ | (1.2 | ) | 558 | % | $ | (4.0 | ) | $ | 14.6 | (127 | )% | |
| Adjusted EBITDA(2) | $ | (4.5 | ) | $ | (1.4 | ) | 221 | % | $ | (14.9 | ) | $ | 7.5 | (299 | )% | |
(1) This includes income primarily from our Cummins Westport Inc. ("CWI") and Minda Westport Technologies Limited joint ventures.
(2) EBIT, EBITDA, Adjusted EBITDA, and Gross Margin are non-GAAP measures. Please refer to NON-GAAP FINANCIAL MEASURES for the reconciliation.
Revenues for the three months ended September 30, 2022, decreased
Net loss was
Westport generated negative
Segment Information
| SEGMENT RESULTS | Three months ended September 30, 2022 | |||||||||||
| Revenue | Operating income (loss) | Depreciation & amortization | Equity income | |||||||||
| OEM | $ | 44.1 | $ | (7.3 | ) | $ | 2.1 | $ | 0.2 | |||
| IAM | 27.1 | 2.2 | 0.7 | — | ||||||||
| Corporate | — | (5.8 | ) | 0.1 | — | |||||||
| Total Consolidated | $ | 71.2 | $ | (10.9 | ) | $ | 2.9 | $ | 0.2 | |||
| SEGMENT RESULTS | Three months ended September 30, 2021 | |||||||||||
| Revenue | Operating income (loss) | Depreciation & amortization | Equity income | |||||||||
| OEM | $ | 48.0 | $ | (7.4 | ) | $ | 2.4 | $ | 0.3 | |||
| IAM | 26.3 | 0.7 | 0.8 | — | ||||||||
| Corporate | — | (1.9 | ) | 0.1 | 3.8 | |||||||
| Total Consolidated | $ | 74.3 | $ | (8.6 | ) | $ | 3.3 | $ | 4.1 | |||
| SEGMENT RESULTS | Nine Months Ended September 30, 2022 | |||||||||||
| Revenue | Operating income (loss) | Depreciation & amortization | Equity income | |||||||||
| OEM | $ | 150.2 | $ | (19.2 | ) | $ | 6.3 | $ | 1.0 | |||
| IAM | 77.5 | 1.8 | 2.4 | — | ||||||||
| Corporate | — | (15.7 | ) | 0.3 | — | |||||||
| Total Consolidated | $ | 227.7 | $ | (33.1 | ) | $ | 9.0 | $ | 1.0 | |||
| SEGMENT RESULTS | Nine Months Ended September 30, 2021 | |||||||||||
| Revenue | Operating income (loss) | Depreciation & amortization | Equity income | |||||||||
| OEM | $ | 138.2 | $ | (17.3 | ) | $ | 6.5 | $ | 0.5 | |||
| IAM | 91.6 | 3.4 | 3.8 | — | ||||||||
| Corporate | — | (6.6 | ) | 0.2 | 18.2 | |||||||
| Total Consolidated | $ | 229.8 | $ | (20.5 | ) | $ | 10.5 | $ | 18.7 | |||
Original Equipment Manufacturer Segment
Revenue for the three and nine months ended September 30, 2022, was
The increase in revenue for the nine months ended was primarily driven by the additional revenues from increased sales volumes to OEMs in India of our light-duty CNG products where we continue to see strong government support and policies in place for the significant expansion of CNG vehicles, increased sales volumes of our electronics, fuel storage, hydrogen and DOEM products. This was partially offset by lower sales volumes in Western Europe for our light-duty OEM products, lower revenues year over year in our heavy-duty OEM business, and the foreign exchange impact of the depreciation of the Euro.
For the third quarter, gross margin increased by
Year to date, gross margin decreased by
In spite of these pressures, we remain confident in the outlook for our OEM segment. Low to zero-emission transportation is our future and our HPDI story provides an affordable solution. We are increasingly optimistic about marketing HPDI into new geographies such as India where we have already seen OEM interest in the product. Supportive government policies to mitigate climate change globally bolster the adoption of our products and the increasing usage of biomethane now with hydrogen tomorrow using HPDI accelerates the energy transition in heavy-duty transport.
Independent Aftermarket Segment
Revenue for the three and nine months ended September 30, 2022, was
For the nine months ended September 30, 2022, the decrease in revenue was primarily driven by lower sales volumes to the Russian market due to the ongoing Russia-Ukraine conflict and related sanctions, lower sales volumes to Eastern Europe and Egypt and the aforementioned foreign exchange impact. The prior year included a large one-time infrastructure project of
For the third quarter, gross margin decreased by
The opportunity Westport has to expand market share in current markets and advancing into emerging markets with our LPG solutions is a real, decisive factor for growth. Supportive LPG pricing is creating a promising demand trend for our business as Westport continues to address and serve markets which can’t afford expensive electric vehicles but are still looking for cleaner solutions. These are the areas where Westport can continue to win and drive market share.
FINANCIAL STATEMENTS & MANAGEMENT'S DISCUSSION AND ANALYSIS
To view Westport financials for the third quarter ended September 30th, 2022, please visit https://investors.wfsinc.com/financials/
CONFERENCE CALL & WEBCAST
Westport has scheduled a conference call for Tuesday, November 8, 2022, 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 Westport website at https://investors.wfsinc.com/
To access the conference call replay, please dial 1-800-319-6413 (Canada & USA toll-free) or +1-604-638-9010 using the passcode 9432. The telephone replay will be available until Tuesday, November 15th, 2022.
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 Statements
This press release contains forward-looking statements, including statements regarding revenue expectations, future strategic initiatives and future growth, future of our development programs (including those relating to HPDI and Hydrogen), expected margin pressure, the Russia-Ukraine conflict and related impacts, expectations regarding slower sales growth to our OEM launch partner due to higher LNG prices, 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 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, sanctions 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, the Russia-Ukraine conflict and ongoing semiconductor shortages 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 Information
Investor Relations
Westport Fuel Systems
T: +1 604-718-2046
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) | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 | ||||||||||
| Three months ended | |||||||||||||||
| Net income (loss) | $ | (5.8 | ) | $ | 5.3 | $ | 7.7 | $ | (11.6 | ) | $ | (11.9 | ) | ||
| Income tax expense (recovery) | 0.4 | (0.7 | ) | (0.1 | ) | 0.1 | 0.9 | ||||||||
| Interest expense, net | 0.9 | 0.3 | 1.0 | 0.7 | 0.2 | ||||||||||
| Depreciation and amortization | 3.3 | 3.5 | 3.1 | 3.1 | 2.8 | ||||||||||
| EBITDA | (1.2 | ) | 8.4 | 11.7 | (7.7 | ) | (8.0 | ) | |||||||
| Stock based compensation | 0.7 | 0.6 | 0.5 | 0.9 | 0.8 | ||||||||||
| Unrealized foreign exchange (gain) loss | (0.9 | ) | 0.5 | 0.8 | 2.5 | 2.7 | |||||||||
| Asset impairment | — | — | — | — | — | ||||||||||
| Bargain purchase gain | — | — | — | — | — | ||||||||||
| Gain on sale of Investment | — | — | (19.1 | ) | — | — | |||||||||
| Adjusted EBITDA | $ | (1.4 | ) | $ | 10.0 | $ | (6.1 | ) | $ | (4.3 | ) | $ | (4.5 | ) | |
| WESTPORT FUEL SYSTEMS INC. Condensed Consolidated Interim Balance Sheets (unaudited) (Expressed in thousands of United States dollars, except share amounts) September 30, 2022 and December 31, 2021 | ||||||||
| September 30, 2022 | December 31, 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents (including restricted cash) | $ | 86,501 | $ | 124,892 | ||||
| Accounts receivable | 90,882 | 101,508 | ||||||
| Inventories | 82,854 | 83,128 | ||||||
| Prepaid expenses | 8,952 | 6,997 | ||||||
| Assets held for sale | — | 22,039 | ||||||
| Total current assets | 269,189 | 338,564 | ||||||
| Long-term investments | 4,441 | 3,824 | ||||||
| Property, plant and equipment | 56,900 | 64,420 | ||||||
| Operating lease right-of-use assets | 22,123 | 28,830 | ||||||
| Intangible assets | 7,531 | 9,286 | ||||||
| Deferred income tax assets | 9,136 | 11,653 | ||||||
| Goodwill | 2,707 | 3,121 | ||||||
| Other long-term assets | 20,940 | 11,615 | ||||||
| Total assets | $ | 392,967 | $ | 471,313 | ||||
| Liabilities and shareholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 82,369 | $ | 99,238 | ||||
| Current portion of operating lease liabilities | 3,460 | 4,190 | ||||||
| Short-term debt | 8,702 | 13,652 | ||||||
| Current portion of long-term debt | 10,582 | 10,590 | ||||||
| Current portion of long-term royalty payable | 1,320 | 5,200 | ||||||
| Current portion of warranty liability | 8,960 | 13,577 | ||||||
| Total current liabilities | 115,393 | 146,447 | ||||||
| Long-term operating lease liabilities | 18,432 | 24,362 | ||||||
| Long-term debt | 32,850 | 45,125 | ||||||
| Long-term royalty payable | 4,250 | 4,747 | ||||||
| Warranty liability | 1,615 | 5,214 | ||||||
| Deferred income tax liabilities | 3,182 | 3,392 | ||||||
| Other long-term liabilities | 4,809 | 5,607 | ||||||
| Total liabilities | 180,531 | 234,894 | ||||||
| Shareholders’ equity: | ||||||||
| Share capital: | ||||||||
| Unlimited common and preferred shares, no par value | ||||||||
| 171,296,279 (2021 - 170,799,325) common shares issued and outstanding | 1,243,250 | 1,242,006 | ||||||
| Other equity instruments | 9,140 | 8,412 | ||||||
| Additional paid in capital | 11,516 | 11,516 | ||||||
| Accumulated deficit | (1,007,817 | ) | (992,021 | ) | ||||
| Accumulated other comprehensive loss | (43,653 | ) | (33,494 | ) | ||||
| Total shareholders' equity | 212,436 | 236,419 | ||||||
| Total liabilities and shareholders' equity | $ | 392,967 | $ | 471,313 | ||||
| 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 nine months ended September 30, 2022 and 2021 | ||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue | $ | 71,182 | $ | 74,343 | $ | 227,690 | $ | 229,794 | ||||||||
| Cost of revenue and expenses: | ||||||||||||||||
| Cost of revenue | 59,910 | 64,214 | 195,986 | 190,905 | ||||||||||||
| Research and development | 6,473 | 6,207 | 17,661 | 20,419 | ||||||||||||
| General and administrative | 8,649 | 9,058 | 26,853 | 27,581 | ||||||||||||
| Sales and marketing | 3,351 | 3,176 | 10,914 | 9,828 | ||||||||||||
| Foreign exchange (gain) loss | 2,648 | (893 | ) | 5,985 | (2,495 | ) | ||||||||||
| Depreciation and amortization | 1,074 | 1,224 | 3,342 | 4,188 | ||||||||||||
| Gain on sale of assets | — | — | — | (146 | ) | |||||||||||
| 82,105 | 82,986 | 260,741 | 250,280 | |||||||||||||
| Loss from operations | (10,923 | ) | (8,643 | ) | (33,051 | ) | (20,486 | ) | ||||||||
| Income from investments accounted for by the equity method | 202 | 4,098 | 953 | 18,738 | ||||||||||||
| Gain on sale of investment | — | — | 19,119 | — | ||||||||||||
| Interest on long-term debt and accretion on royalty payable | (796 | ) | (1,380 | ) | (2,695 | ) | (4,437 | ) | ||||||||
| Bargain purchase gain from acquisition | — | — | — | 5,856 | ||||||||||||
| Interest and other income, net of bank charges | 555 | 482 | 793 | 1,212 | ||||||||||||
| Income (loss) before income taxes | (10,962 | ) | (5,443 | ) | (14,881 | ) | 883 | |||||||||
| Income tax expense (recovery) | 965 | 325 | 915 | (7,438 | ) | |||||||||||
| Net income (loss) for the period | (11,927 | ) | (5,768 | ) | (15,796 | ) | 8,321 | |||||||||
| Other comprehensive income (loss): | ||||||||||||||||
| Cumulative translation adjustment | (5,514 | ) | (4,067 | ) | (10,159 | ) | (7,864 | ) | ||||||||
| Comprehensive income (loss) | $ | (17,441 | ) | $ | (9,835 | ) | $ | (25,955 | ) | $ | 457 | |||||
| Income (loss) per share: | ||||||||||||||||
| Net income (loss) per share - basic and diluted | $ | (0.07 | ) | $ | (0.03 | ) | $ | (0.09 | ) | $ | 0.05 | |||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 171,246,067 | 169,500,461 | 171,200,403 | 156,673,290 | ||||||||||||
| Diluted | 171,246,067 | 169,500,461 | 171,200,403 | 158,533,077 | ||||||||||||
| WESTPORT FUEL SYSTEMS INC. Condensed Consolidated Interim Statements of Cash Flows (unaudited) (Expressed in thousands of United States dollars) Three and nine months ended September 30, 2022 and 2021 | ||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Cash flows from (used in) operating activities: | ||||||||||||||||
| Net income (loss) for the period | $ | (11,927 | ) | $ | (5,768 | ) | $ | (15,796 | ) | $ | 8,321 | |||||
| Items not involving cash: | ||||||||||||||||
| Depreciation and amortization | 2,900 | 3,309 | 9,040 | 10,485 | ||||||||||||
| Stock-based compensation expense | 815 | 629 | 2,210 | 1,252 | ||||||||||||
| Unrealized foreign exchange (gain) loss | 2,648 | (893 | ) | 5,985 | (2,495 | ) | ||||||||||
| Deferred income tax | 531 | 69 | — | (9,606 | ) | |||||||||||
| Income from investments accounted for by the equity method | (202 | ) | (4,098 | ) | (953 | ) | (18,738 | ) | ||||||||
| Interest on long-term debt and accretion on royalty payable | 796 | 1,380 | 2,695 | 4,437 | ||||||||||||
| Change in inventory write-downs to net realizable value | 476 | 87 | 1,025 | 409 | ||||||||||||
| Bargain purchase gain from acquisition | — | — | — | (5,856 | ) | |||||||||||
| Change in bad debt expense | 219 | 178 | 278 | 152 | ||||||||||||
| Gain on sale of investment | — | — | (19,119 | ) | — | |||||||||||
| Gain on sale of assets | — | — | — | (146 | ) | |||||||||||
| Net cash used before working capital changes | (3,744 | ) | (5,107 | ) | (14,635 | ) | (11,785 | ) | ||||||||
| Changes in non-cash operating working capital: | ||||||||||||||||
| Accounts receivable | 3,342 | 7,574 | 5,813 | 2,532 | ||||||||||||
| Inventories | (387 | ) | (11,851 | ) | (12,270 | ) | (23,794 | ) | ||||||||
| Prepaid expenses | (2,555 | ) | (1,717 | ) | (3,743 | ) | 4,639 | |||||||||
| Accounts payable and accrued liabilities | (3,055 | ) | (2,154 | ) | (10,489 | ) | 4,134 | |||||||||
| Warranty liability | (2,192 | ) | (1,136 | ) | (6,671 | ) | (1,423 | ) | ||||||||
| Net cash used in operating activities | (8,591 | ) | (14,391 | ) | (41,995 | ) | (25,697 | ) | ||||||||
| Cash flows from (used in) investing activities: | ||||||||||||||||
| Purchase of property, plant and equipment and other assets | (2,467 | ) | (5,084 | ) | (8,450 | ) | (7,946 | ) | ||||||||
| Sale of investments, net | — | — | — | 600 | ||||||||||||
| Purchase of intangible assets | (78 | ) | — | (374 | ) | — | ||||||||||
| Acquisition, net of acquired cash | — | — | — | (5,948 | ) | |||||||||||
| Proceeds on sale of investments and assets | — | — | 31,949 | — | ||||||||||||
| Dividends received from joint ventures | — | 7,229 | — | 21,502 | ||||||||||||
| Net cash from investing activities of continuing operations | (2,545 | ) | 2,145 | 23,125 | 8,208 | |||||||||||
| Cash flows from (used in) financing activities: | ||||||||||||||||
| Repayments of short and long-term facilities | (13,353 | ) | (17,191 | ) | (49,952 | ) | (56,606 | ) | ||||||||
| Drawings on operating lines of credit and long-term facilities | 9,707 | 13,987 | 35,099 | 39,985 | ||||||||||||
| Payment of royalty payable | — | — | (5,200 | ) | (7,451 | ) | ||||||||||
| Proceeds from share issuance, net | — | — | — | 120,727 | ||||||||||||
| Net cash from (used in) financing activities | (3,646 | ) | (3,204 | ) | (20,053 | ) | 96,655 | |||||||||
| Effect of foreign exchange on cash and cash equivalents | 3,109 | (3,362 | ) | 532 | (1,529 | ) | ||||||||||
| Increase (decrease) in cash and cash equivalents | (11,673 | ) | (18,812 | ) | (38,391 | ) | 77,637 | |||||||||
| Cash and cash equivalents, beginning of period (including restricted cash) | 98,174 | 160,711 | 124,892 | 64,262 | ||||||||||||
| Cash and cash equivalents, end of period (including restricted cash) | $ | 86,501 | $ | 141,899 | $ | 86,501 | $ | 141,899 | ||||||||
FAQ
What were Westport's third-quarter earnings for 2022?
How much did Westport's revenue change from Q3 2021 to Q3 2022?
What is the current financial outlook for Westport Fuel Systems?
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What were the key highlights of Westport's hydrogen HPDI technology test results?
