Westport Reports Third Quarter 2024 Financial Results
Westport Fuel Systems reported Q3 2024 financial results with revenues decreasing 14% to $66.2 million compared to $77.4 million in Q3 2023. The company posted a net loss of $3.9 million, improving from an $11.9 million loss year-over-year. The revenue decline was primarily due to the transition of Heavy-Duty OEM revenues to Cespira, their HPDI joint venture with Volvo Group, which generated $16.2 million in revenue. Adjusted EBITDA improved to negative $0.8 million from negative $3.0 million in Q3 2023. The company reduced operating expenses by approximately 40% compared to the same period last year.
Westport Fuel Systems ha riportato i risultati finanziari del terzo trimestre 2024, con ricavi in diminuzione del 14%, a 66,2 milioni di dollari, rispetto ai 77,4 milioni di dollari del terzo trimestre 2023. L'azienda ha registrato una perdita netta di 3,9 milioni di dollari, migliorando rispetto a una perdita di 11,9 milioni di dollari dell'anno precedente. La diminuzione dei ricavi è stata principalmente dovuta al passaggio dei ricavi OEM per veicoli pesanti a Cespira, la loro joint venture HPDI con il gruppo Volvo, che ha generato 16,2 milioni di dollari di ricavi. L'EBITDA rettificato è migliorato, passando da -3,0 milioni di dollari a -0,8 milioni di dollari rispetto al terzo trimestre 2023. L'azienda ha ridotto le spese operative di circa il 40% rispetto allo stesso periodo dell'anno scorso.
Westport Fuel Systems informó sobre los resultados financieros del tercer trimestre de 2024, con ingresos en disminución del 14%, alcanzando 66.2 millones de dólares en comparación con los 77.4 millones de dólares del tercer trimestre de 2023. La compañía reportó una pérdida neta de 3.9 millones de dólares, mejorando respecto a la pérdida de 11.9 millones de dólares del año anterior. La caída en los ingresos se debió principalmente a la transición de ingresos de OEM de vehículos pesados a Cespira, su empresa conjunta HPDI con el Grupo Volvo, que generó 16.2 millones de dólares en ingresos. El EBITDA ajustado mejoró a -0.8 millones de dólares desde -3.0 millones de dólares en el tercer trimestre de 2023. La compañía redujo los gastos operativos en aproximadamente un 40% en comparación con el mismo período del año anterior.
웨스트포트 연료 시스템은 2024년 3분기 재무 결과를 보고하며, 수익이 14% 감소한 6,620만 달러를 기록했다고 발표했습니다. 이는 2023년 3분기 7,740만 달러에 비해 감소한 수치입니다. 회사는 390만 달러의 순손실을 기록했으나, 지난해 같은 기간에 비해 1,190만 달러의 손실에서 개선되었습니다. 수익 감소는 주로 중장비 OEM 수익이 셉스피라, 볼보 그룹과의 HPDI 합작회사로 전환되면서 발생했으며, 이 회사는 1,620만 달러의 수익을 창출했습니다. 조정된 EBITDA는 3분기 2023년 -300만 달러에서 -80만 달러로 개선되었습니다. 회사는 지난해 같은 기간에 비해 약 40%의 운영 비용을 절감했습니다.
Westport Fuel Systems a annoncé les résultats financiers du troisième trimestre 2024, avec des revenus en baisse de 14%, atteignant 66,2 millions de dollars par rapport à 77,4 millions de dollars au troisième trimestre 2023. L'entreprise a enregistré une perte nette de 3,9 millions de dollars, en amélioration par rapport à une perte de 11,9 millions de dollars l'année précédente. La baisse des revenus est principalement due à la transition des revenus des OEM lourds vers Cespira, leur coentreprise HPDI avec le groupe Volvo, qui a généré 16,2 millions de dollars de revenus. L'EBITDA ajusté s'est amélioré à -0,8 million de dollars contre -3,0 millions de dollars au troisième trimestre 2023. L'entreprise a réduit ses dépenses opérationnelles d'environ 40% par rapport à la même période l'année dernière.
Westport Fuel Systems berichtete über die finanziellen Ergebnisse des dritten Quartals 2024, wobei die Einnahmen um 14% auf 66,2 Millionen Dollar sanken im Vergleich zu 77,4 Millionen Dollar im dritten Quartal 2023. Das Unternehmen verzeichnete einen Nettoverlust von 3,9 Millionen Dollar, was eine Verbesserung gegenüber einem Verlust von 11,9 Millionen Dollar im Vorjahr darstellt. Der Rückgang der Einnahmen war hauptsächlich auf den Übergang von Heavy-Duty-OEM-Einnahmen zu Cespira, ihrem HPDI-Joint-Venture mit der Volvo Group, zurückzuführen, das Einnahmen von 16,2 Millionen Dollar erwirtschaftete. Das bereinigte EBITDA verbesserte sich auf -0,8 Millionen Dollar von -3,0 Millionen Dollar im dritten Quartal 2023. Das Unternehmen senkte die Betriebskosten um etwa 40% im Vergleich zum gleichen Zeitraum des Vorjahres.
- Net loss improved by 68% to $3.9M from $11.9M YoY
- Operating expenses reduced by 40% compared to previous year
- Adjusted EBITDA improved to -$0.8M from -$3.0M YoY
- Gross margin increased to 22% from 17% YoY
- Revenue declined 14% to $66.2M from $77.4M YoY
- Cash and cash equivalents decreased with $9.9M used in operating activities
- Cespira JV reported operating losses of $5.3M in Q3
- No significant orders expected from Weichai Power agreement before year-end
Insights
The Q3 results present a mixed picture for Westport. While revenues declined
Key financial metrics show operational improvements with a
The Light-Duty segment shows promise with improving margins, while the hydrogen segment faces headwinds due to infrastructure delays. The uncertain status of the Weichai agreement and lack of expected orders presents a significant risk factor.
The alternative fuel systems market shows diverging trends across segments. The Light-Duty segment demonstrates resilience with growing European demand and successful LPG fuel system implementations, notably in the Kia Niro Tri-Fuel launch. However, the hydrogen segment faces significant market headwinds due to delayed infrastructure development.
The formation of Cespira marks a strategic pivot in the heavy-duty segment, though initial losses indicate a challenging transition period. The market position remains precarious with Weichai's uncertain commitment and broader industry adoption rates. The company's strategic focus on operational excellence and cost reduction appears timely given the current market dynamics.
Transition of Heavy-Duty OEM assets into Cespira, where they generated revenue of
VANCOUVER, British Columbia, Nov. 12, 2024 (GLOBE NEWSWIRE) -- 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 third quarter ended September 30, 2024, and provided an update on operations. All figures are in U.S. dollars unless otherwise stated.
“Westport delivered solid results in the third quarter of 2024. Although revenue was down, this decrease was more than outweighed by the revenue earned at Cespira and we delivered significant improvement in Adjusted EBITDA. We continue to execute against our three strategic pillars - harnessing the potential of our HPDI joint venture, enhancing operational excellence, and driving continuous innovation to shape the world’s alternative fueled future. The third quarter represented the first full quarter with Cespira, our HPDI joint venture with Volvo Group, being operational. This, along with the steps we have taken with respect to various cost cutting measures, has enabled Westport to decrease our costs including research and development as well as sales, general and administrative expenses by approximately 40 percent as compared to the same period last year.
We remain confident in the role that alternative fuels will play in driving sustainability in the future of the transportation and industrial application space. Regarding hydrogen, we acknowledge the slowdown in infrastructure development in the global market, which has tapered the adoption of automotive and industrial applications powered by hydrogen. The success of this market depends on the installation of infrastructure and the production of clean hydrogen, both of which have been slow to materialize. However, we are steadfast in our belief that hydrogen as a fuel will prevail – although gradual as opposed to immediate – and become a clean fuel source that is adopted worldwide. In the meantime, Westport currently delivers a suite of proven and innovative components and systems for a wide range of affordable alternative low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen. We are driving cleaner performance by addressing lower emissions regulations with practical applications using innovation available today.
As we navigate the next quarter, and the next year, Westport is strongly committed to driving operational excellence, nurturing innovation, and supporting Cespira, all to position the Company for sustainable growth in an evolving landscape. We are focused and dedicated to the present and our future."
Dan Sceli, Chief Executive Officer, Westport Fuel Systems
Q3 2024 Highlights
- Revenues decreased by
14% to$66.2 million compared to$77.4 million in the same quarter last year, primarily driven by the transition of the Heavy-Duty OEM revenues now being reflected in the results of Cespira, of which Westport accounts for as an equity investment. - Net loss of
$3.9 million for the quarter, an improvement over the net loss of$11.9 million for the same quarter last year. This was primarily the result of an improvement in gross margin by$1.3 million compared to the prior year quarter, a significant decrease in operating expenditures and depreciation and amortization as costs previously associated with our HPDI business are now accrued by Cespira, cost reductions in Westport and a net foreign exchange gain of$1.1 million . - Continued improvement in Adjusted EBITDA[2] achieving negative
$0.8 million compared to negative$3.0 million for the same period in 2023. - Cash and cash equivalents were
$33.3 million at the end of the third quarter of 2024. Cash used in operating activities was$9.9 million primarily from an increase in working capital of$11.4 million . Cash provided by investing activities included the sale of investments for$9.6 million related to the collection of$8.4 million from the formation of the HPDI JV and sale of our ownership interest in Westport Weichai Inc. ("Weichai"), partially offset by the purchase of capital assets of$2.1 million . Cash used in financing activities represented debt repayments of$7.0 million in the quarter. - In September 2024, HPDI Technology, the joint venture between Volvo Group and Westport, launched as Cespira.
| CONSOLIDATED RESULTS | ||||||||||||||||||
| ($ in millions, except per share amounts) | 3Q24 | 3Q23 | Over / (Under) % | 9M24 | 9M23 | Over / (Under) % | ||||||||||||
| Revenues | $ | 66.2 | $ | 77.4 | (14 | )% | $ | 227.2 | $ | 244.7 | (7 | )% | ||||||
| Gross Margin(2) | 14.5 | 13.2 | 10 | % | 43.3 | 40.9 | 6 | % | ||||||||||
| Gross Margin %(2) | 22 | % | 17 | % | 19 | % | 17 | % | ||||||||||
| Income (loss) from Investments Accounted for by the Equity Method(1) | (2.8 | ) | 0.4 | (800 | )% | (3.4 | ) | 0.6 | (670 | )% | ||||||||
| Net Loss | $ | (3.9 | ) | $ | (11.9 | ) | 68 | % | $ | (11.7 | ) | $ | (35.8 | ) | 67 | % | ||
| Net Loss per Share - Basic | $ | (0.22 | ) | $ | (0.70 | ) | 69 | % | $ | (0.68 | ) | $ | (2.08 | ) | 67 | % | ||
| Net Loss per Share - Diluted | $ | (0.22 | ) | $ | (0.70 | ) | 69 | % | $ | (0.68 | ) | $ | (2.08 | ) | 67 | % | ||
| EBITDA(2) | $ | (0.3 | ) | $ | (8.6 | ) | 97 | % | $ | (0.5 | ) | $ | (25.0 | ) | 98 | % | ||
| Adjusted EBITDA(2) | $ | (0.8 | ) | $ | (3.0 | ) | 73 | % | $ | (9.4 | ) | $ | (11.5 | ) | 18 | % | ||
(1) This includes income (loss) from Minda Westport Technologies Limited and Cespira.
(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.
Segment Information
Light-Duty Segment
Revenue for the three and nine months ended September 30, 2024 was
Light-Duty revenue increased by
Gross margin increased by
Gross margin increased by
Westport began supplying its
The Light-Duty segment continues to evolve our LPG fuel system solution, providing more customers with a cost-competitive alternative fuel solution. Recently, two new product platforms were announced utilizing our systems. Westport was excited to be part of the first-ever OEM hybrid vehicle powered by HEV and LPG technologies - the Kia Niro Tri-Fuel in Italy. This revolutionary product, born from Westport's historic partnership with Kia Italia, offers three fuel sources—petrol, electric, and LPG—delivering over 1,600 km on full tanks with reduced emissions and uncompromised performance. Westport also announced the global availability of a LPG fuel system for the RAM 1500 Hurricane 3.0 DI Twin Turbo engine, enabling customers to benefit from lower emissions and lower fuel costs.
High-Pressure Controls & Systems Segment
Revenue for the three and nine months ended September 30, 2024, was
Gross margin decreased by
Heavy-Duty OEM Segment
Revenue for the three and nine months ended September 30, 2024 includes revenue from the HPDI business from January 1 to June 3, the closing date of the transaction to form Cespira plus revenue earned under a transitional services agreement. Revenue for the three and nine months ended September 30, 2024 was
The decrease in revenue for the three months ended September 30, 2024 is a result of the transition of this business to Cespira and the resulting change in accounting treatment. We continue to earn service revenue from Cespira under the transitional services agreement for the quarter, which is represented in this segment.
Gross margin was
Selected Cespira Statements of Operations Data
We account for Cespira using the equity method of accounting for investments.
The following table sets forth a summary of the financial results of Cespira for the three months ended September 30, 2024 and the period between June 3, 2024 to September 30, 2024:
| Three months ended September 30, | Change | Period ended September 30, | Change | ||||||||||||||||||||||||||||
| (in millions of U.S. dollars) | 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | |||||||||||||||||||||||
| Revenue | $ | 16.2 | $ | — | $ | 16.2 | — | % | $ | 20.3 | $ | — | $ | 20.3 | — | % | |||||||||||||||
| Gross margin1 | $ | (1.1 | ) | $ | — | $ | (1.1 | ) | — | % | $ | (0.9 | ) | $ | — | $ | (0.9 | ) | — | % | |||||||||||
| Gross margin %1 | (7 | )% | — | % | (4 | )% | — | % | |||||||||||||||||||||||
| Operating loss | $ | (5.3 | ) | $ | — | $ | (5.3 | ) | — | % | $ | (7.3 | ) | $ | — | $ | (7.3 | ) | — | % | |||||||||||
| Net loss attributable to the Company | $ | (3.0 | ) | $ | — | $ | (3.0 | ) | — | % | $ | (4.1 | ) | $ | — | $ | (4.1 | ) | — | % | |||||||||||
(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.
Cespira earned revenue of
Cespira lost
Cespira had operating losses of
As previously announced, Westport and Weichai are parties to a technology development and supply agreement which contains an obligation for Weichai to order, and Westport to supply, certain volumes of HPDI fuel system components prior to December 31, 2024. Significant orders for HPDI fuel system components against this agreement have not been received to date and we do not currently anticipate that orders for any significant additional volumes will be received prior to year end. Westport and Cespira continue to collaborate with Weichai Power Co. Ltd (“Weichai Power”) on an HPDI fuel system equipped version of the Weichai Power engine platforms. The parties are currently discussing the next stages of this work and the obligations of each party going forward.
| SEGMENT RESULTS | Three months ended September 30, 2024 | ||||||||||||||
| Revenue | Operating income (loss) | Depreciation & amortization | Equity income (loss) | ||||||||||||
| Light-Duty | $ | 61.5 | $ | 2.4 | $ | 1.6 | $ | 0.2 | |||||||
| High-Pressure Controls & Systems | 1.6 | (1.2 | ) | 0.1 | — | ||||||||||
| Heavy-Duty OEM | 3.1 | 0.9 | — | — | |||||||||||
| Corporate | — | (1.0 | ) | 0.1 | (3.0 | ) | |||||||||
| Cespira | 16.2 | (5.3 | ) | 0.9 | — | ||||||||||
| Total segment | 82.4 | (4.2 | ) | 2.7 | (2.8 | ) | |||||||||
| Less: Cespira | 16.2 | (5.3 | ) | 0.9 | — | ||||||||||
| Total consolidated | $ | 66.2 | $ | 1.1 | $ | 1.8 | $ | (2.8 | ) | ||||||
| SEGMENT RESULTS | Three months ended September 30, 2023 | ||||||||||||||
| Revenue | Operating loss | Depreciation & amortization | Equity income | ||||||||||||
| Light-Duty | $ | 60.2 | $ | (3.0 | ) | $ | 1.7 | $ | 0.4 | ||||||
| High-Pressure Controls & Systems | 3.7 | (0.4 | ) | 0.1 | — | ||||||||||
| Heavy-Duty OEM | 13.5 | (3.7 | ) | 1.3 | — | ||||||||||
| Corporate | — | (5.0 | ) | 0.1 | — | ||||||||||
| Total Consolidated | $ | 77.4 | $ | (12.1 | ) | $ | 3.2 | $ | 0.4 | ||||||
Q3 2024 Conference Call
Westport has scheduled a conference call on November 13, 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/BI0e453d34cd1c4f7da856b4eec14f0d4c. 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 at https://investors.wfsinc.com.
Financial Statements and Management's Discussion and Analysis
To view Westport financials for the second quarter ended September 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 Statements
This 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’s products and expansion of product coverage, future market opportunities, speed of adoption of natural gas and hydrogen for transportation and terms and timing of current and future agreements as well as Westport's 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 and hydrogen, global government stimulus packages and new environmental regulations, the acceptance of and shift to natural gas and hydrogen vehicles, the relaxation or waiver of fuel emission standards, the inability of fleets to access capital or government funding to purchase natural gas and hydrogen 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 Information
Investor Relations
Westport Fuel Systems
T: +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) | |||||||||||||||||||
| Three months ended | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | ||||||||||||||
| Revenue | $ | 77.4 | $ | 87.2 | $ | 77.6 | $ | 83.4 | $ | 66.2 | |||||||||
| Less: Cost of revenue | 64.2 | 79.2 | 65.9 | 66.3 | 51.7 | ||||||||||||||
| Gross margin | 13.2 | 8.0 | 11.7 | 17.1 | 14.5 | ||||||||||||||
| Gross margin % | 17.1 | % | 9.2 | % | 15.1 | % | 20.5 | % | 21.9 | % | |||||||||
| EBITDA and Adjusted EBITDA | |||||||||||||||||||
| (expressed in millions of U.S. dollars) | |||||||||||||||||||
| Three months ended | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | ||||||||||||||
| Income (Loss) before income taxes | $ | (12.0 | ) | $ | (14.0 | ) | $ | (12.9 | ) | $ | 6.8 | $ | (2.5 | ) | |||||
| Interest expense (income), net | 0.2 | (0.2 | ) | 0.5 | 0.5 | 0.4 | |||||||||||||
| Depreciation and amortization | 3.2 | 3.3 | 3.2 | 1.7 | 1.8 | ||||||||||||||
| EBITDA | (8.6 | ) | (10.9 | ) | (9.2 | ) | 9.0 | (0.3 | ) | ||||||||||
| Stock based compensation (recovery) | (0.3 | ) | 1.4 | 0.3 | 1.2 | (0.1 | ) | ||||||||||||
| Unrealized foreign exchange (gain) loss | 1.4 | (0.9 | ) | 1.8 | 0.1 | (1.1 | ) | ||||||||||||
| Severance costs | 4.5 | — | 0.5 | 0.2 | 0.1 | ||||||||||||||
| Gain on deconsolidation | — | — | — | (13.3 | ) | — | |||||||||||||
| Loss on sale of investment | — | — | — | — | 0.4 | ||||||||||||||
| Restructuring costs | — | — | — | 0.8 | 0.2 | ||||||||||||||
| Impairment of long-term investments | — | 0.4 | — | — | — | ||||||||||||||
| Adjusted EBITDA | $ | (3.0 | ) | $ | (10.0 | ) | $ | (6.6 | ) | $ | (2.0 | ) | $ | (0.8 | ) | ||||
| WESTPORT FUEL SYSTEMS INC. Condensed Consolidated Interim Balance Sheets (unaudited) (Expressed in thousands of United States dollars, except share amounts) September 30, 2024 and December 31, 2023 | |||||||
| September 30, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents (including restricted cash) | $ | 33,257 | $ | 54,853 | |||
| Accounts receivable | 70,344 | 88,077 | |||||
| Inventories | 66,322 | 67,530 | |||||
| Prepaid expenses | 7,165 | 6,323 | |||||
| Total current assets | 177,088 | 216,783 | |||||
| Long-term investments | 41,322 | 4,792 | |||||
| Property, plant and equipment | 42,665 | 69,489 | |||||
| Operating lease right-of-use assets | 20,433 | 22,877 | |||||
| Intangible assets | 5,953 | 6,822 | |||||
| Deferred income tax assets | 11,696 | 11,554 | |||||
| Goodwill | 3,088 | 3,066 | |||||
| Other long-term assets | 9,389 | 20,365 | |||||
| Total assets | $ | 311,634 | $ | 355,748 | |||
| Liabilities and shareholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued liabilities | $ | 88,760 | $ | 95,374 | |||
| Current portion of operating lease liabilities | 2,656 | 3,307 | |||||
| Short-term debt | — | 15,156 | |||||
| Current portion of long-term debt | 15,260 | 14,108 | |||||
| Current portion of warranty liability | 4,045 | 6,892 | |||||
| Total current liabilities | 110,721 | 134,837 | |||||
| Long-term operating lease liabilities | 17,781 | 19,300 | |||||
| Long-term debt | 23,483 | 30,957 | |||||
| Warranty liability | 1,350 | 1,614 | |||||
| Deferred income tax liabilities | 4,138 | 3,477 | |||||
| Other long-term liabilities | 4,869 | 5,115 | |||||
| Total liabilities | 162,342 | 195,300 | |||||
| Shareholders’ equity: | |||||||
| Share capital: | |||||||
| Unlimited common and preferred shares, no par value | |||||||
| 17,264,864 (2023 - 17,174,502) common shares issued and outstanding | 1,245,712 | 1,244,539 | |||||
| Other equity instruments | 9,399 | 9,672 | |||||
| Additional paid in capital | 11,516 | 11,516 | |||||
| Accumulated deficit | (1,086,133 | ) | (1,074,434 | ) | |||
| Accumulated other comprehensive loss | (31,202 | ) | (30,845 | ) | |||
| Total shareholders' equity | 149,292 | 160,448 | |||||
| Total liabilities and shareholders' equity | $ | 311,634 | $ | 355,748 | |||
| WESTPORT FUEL SYSTEMS INC. Condensed Consolidated Interim Statements of Operations and Comprehensive Loss (unaudited) (Expressed in thousands of United States dollars, except share and per share amounts) Three and nine months ended September 30, 2024 and 2023 | |||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 66,251 | $ | 77,391 | $ | 227,211 | $ | 244,653 | |||||||
| Cost of revenue and expenses: | |||||||||||||||
| Cost of revenue | 51,785 | 64,163 | 183,900 | 203,695 | |||||||||||
| Research and development | 3,266 | 5,748 | 17,519 | 18,796 | |||||||||||
| General and administrative | 7,706 | 12,993 | 29,662 | 33,307 | |||||||||||
| Sales and marketing | 2,770 | 4,088 | 9,497 | 12,557 | |||||||||||
| Foreign exchange (gain) loss | (1,069 | ) | 1,430 | 808 | 4,926 | ||||||||||
| Depreciation and amortization | 751 | 1,100 | 2,514 | 3,158 | |||||||||||
| 65,209 | 89,522 | 243,900 | 276,439 | ||||||||||||
| Income (loss) from operations | 1,042 | (12,131 | ) | (16,689 | ) | (31,786 | ) | ||||||||
| Income (loss) from investments accounted for by the equity method | (2,781 | ) | 448 | (3,438 | ) | 633 | |||||||||
| Gain on deconsolidation | — | — | 13,266 | — | |||||||||||
| Loss on sale of investment | (352 | ) | — | (352 | ) | — | |||||||||
| Interest on long-term debt and accretion on royalty payable | (919 | ) | (568 | ) | (2,125 | ) | (2,058 | ) | |||||||
| Loss on extinguishment of royalty payable | — | — | — | (2,909 | ) | ||||||||||
| Interest and other income, net of bank charges | 569 | 238 | 761 | 1,437 | |||||||||||
| Loss before income taxes | (2,441 | ) | (12,013 | ) | (8,577 | ) | (34,683 | ) | |||||||
| Income tax expense (recovery) | 1,427 | (76 | ) | 3,122 | 1,089 | ||||||||||
| Net loss for the period | (3,868 | ) | (11,937 | ) | (11,699 | ) | (35,772 | ) | |||||||
| Changes in foreign currency translation adjustment | 2,177 | (3,427 | ) | 535 | 1,925 | ||||||||||
| Ownership share of equity method investments' other comprehensive loss | (809 | ) | — | (892 | ) | — | |||||||||
| Other comprehensive income (loss) | 1,368 | (3,427 | ) | (357 | ) | 1,925 | |||||||||
| Comprehensive loss | $ | (2,500 | ) | $ | (15,364 | ) | $ | (12,056 | ) | $ | (33,847 | ) | |||
| Net loss per share: | |||||||||||||||
| Net loss per share - basic | $ | (0.22 | ) | $ | (0.70 | ) | $ | (0.68 | ) | $ | (2.08 | ) | |||
| Net loss per share - diluted | $ | (0.22 | ) | $ | (0.70 | ) | $ | (0.68 | ) | $ | (2.08 | ) | |||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 17,264,157 | 17,174,972 | 17,241,469 | 17,172,429 | |||||||||||
| Diluted | 17,264,157 | 17,174,972 | 17,241,469 | 17,172,429 | |||||||||||
| 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, 2024 and 2023 | |||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Operating activities: | |||||||||||||||
| Net loss for the period | $ | (3,868 | ) | $ | (11,937 | ) | $ | (11,699 | ) | $ | (35,772 | ) | |||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||||||
| Depreciation and amortization | 1,790 | 3,250 | 6,753 | 9,270 | |||||||||||
| Stock-based compensation expense | 267 | (310 | ) | 900 | 1,065 | ||||||||||
| Unrealized foreign exchange (gain) loss | (1,069 | ) | 1,430 | 808 | 4,926 | ||||||||||
| Deferred income tax expense (recovery) | 333 | (324 | ) | 678 | (347 | ) | |||||||||
| Loss (income) from investments accounted for by the equity method | 2,781 | (448 | ) | 3,438 | (633 | ) | |||||||||
| Interest on long-term debt and accretion on royalty payable | 18 | 22 | 53 | 316 | |||||||||||
| Change in inventory write-downs | 594 | 500 | 2,030 | 2,078 | |||||||||||
| Loss on extinguishment of royalty payable | — | — | — | 2,909 | |||||||||||
| Change in bad debt expense | 271 | 304 | 122 | 676 | |||||||||||
| Gain on deconsolidation | — | — | (13,266 | ) | — | ||||||||||
| Loss on sale of investments | 352 | — | 352 | — | |||||||||||
| Other | 14 | 144 | 46 | 123 | |||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||
| Accounts receivable | 13,977 | 2,877 | 23,760 | 2,305 | |||||||||||
| Inventories | (7,788 | ) | 3,359 | (14,242 | ) | 2,231 | |||||||||
| Prepaid expenses | (77 | ) | 1,889 | (665 | ) | 3,296 | |||||||||
| Accounts payable and accrued liabilities | (15,746 | ) | 844 | (3,551 | ) | 1,894 | |||||||||
| Warranty liability | (1,782 | ) | (1,061 | ) | (3,809 | ) | (3,622 | ) | |||||||
| Net cash provided by (used in) operating activities | (9,933 | ) | 539 | (8,292 | ) | (9,285 | ) | ||||||||
| Investing activities: | |||||||||||||||
| Purchase of property, plant and equipment | (2,140 | ) | (4,081 | ) | (12,470 | ) | (11,993 | ) | |||||||
| Proceeds from sale of investments | 9,564 | — | 29,994 | — | |||||||||||
| Proceeds on sale of assets | 38 | — | 607 | 133 | |||||||||||
| Dividends received from investments accounted for by the equity method | — | — | 297 | — | |||||||||||
| Capital contributions to investments accounted for by the equity method | — | — | (9,900 | ) | — | ||||||||||
| Net cash provided by (used in) investing activities | 7,462 | (4,081 | ) | 8,528 | (11,860 | ) | |||||||||
| Financing activities: | |||||||||||||||
| Repayments of operating lines of credit and long-term facilities | (6,965 | ) | (11,397 | ) | (41,042 | ) | (33,077 | ) | |||||||
| Drawings on operating lines of credit and long-term facilities | — | 7,497 | 19,336 | 20,593 | |||||||||||
| Payment of royalty payable | — | — | — | (8,687 | ) | ||||||||||
| Net cash used in financing activities | (6,965 | ) | (3,900 | ) | (21,706 | ) | (21,171 | ) | |||||||
| Effect of foreign exchange on cash and cash equivalents | 1,171 | (856 | ) | (126 | ) | 99 | |||||||||
| Net decrease in cash and cash equivalents | (8,265 | ) | (8,298 | ) | (21,596 | ) | (42,217 | ) | |||||||
| Cash and cash equivalents, beginning of period (including restricted cash) | 41,522 | 52,265 | 54,853 | 86,184 | |||||||||||
| Cash and cash equivalents, end of period (including restricted cash) | $ | 33,257 | $ | 43,967 | $ | 33,257 | $ | 43,967 | |||||||
FAQ
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