Westport Fuel Systems Reports First Quarter Fiscal 2018 Financial Results - Q1 Revenues up 13%Thursday, May 17, 2018
Vancouver, BC, May 17, 2018--(T-Net)--Westport Fuel Systems Inc. (TSX:WPRT) (Nasdaq:WPRT) reported financial results for the first quarter ended March 31, 2018 and provided an update on operations. All figures are in U.S. dollars unless otherwise stated.
"We started 2018 with improved underlying performance across our business," said Nancy Gougarty, Chief Executive Officer of Westport Fuel Systems. "Overall, revenues have increased from Q4 2017 and over the prior year quarter, and we are on track to achieve positive adjusted EBITDA during the second quarter of 2018. We have a diverse product and brand portfolio for a variety of applications and markets, with various alternative fuels that are ready-now. We are supported by favourable macroeconomic factors impacting the demand for diesel vehicles and stricter emissions regulations, which increase consumer demand for alternative fuel vehicles. We are building on this momentum by broadening our product offerings, deploying market-ready solutions, and engaging with key original equipment manufacturers ("OEMs") and industry partners."
2018 KEY PRIORITIES TRACKING WELL
Westport Fuel Systems expects to achieve full year 2018 consolidated revenues from continuing operations of $255 million to $275 million, up 3% to 11% over full year 2017. Westport Fuel Systems also expects to achieve positive adjusted EBITDA during the second quarter of 2018, driven by continued reduction in research and development expenses and CWI performance.
Q1 2018 FINANCIAL HIGHLIGHTS
|($ in millions, except per share amounts)||Three Months Ended March 31,||Change
Better / (Worse)
|Consolidated Gross Margin||15.3||17.5||(13||)%|
|Consolidated Gross Margin %||23||%||29||%||—|
|Consolidated Operating Expenses||26.4||29.5||11||%|
|Research & Development Expenses (1)||8.9||12.1||26||%|
|Income from Unconsolidated Joint Ventures||1.5||1.8||(17||)%|
|Net Loss from Continuing Operations||$||(12.7||)||$||(12.8||)||1||%|
|Net Loss per Share from Continuing Operations||$||(0.10||)||$||(0.12||)||17||%|
|Adjusted EBITDA (2)||$||(3.5||)||$||(4.1||)||15||%|
(1) Research & development expenses are included in consolidated operating expenses.
(2) Adjusted EBITDA is a non-GAAP measure. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation.
CUMMINS WESTPORT INC. HIGHLIGHTS
|CUMMINS WESTPORT HIGHLIGHTS|
|Three Months Ended March 31,||Change
Better / (Worse)
|($ in millions, except unit amounts)||2018||2017|
|Gross Margin %||25||%||31||%||—|
|Segment Operating Income||$||3.0||$||5.0||(40||)%|
|Westport Fuel Systems 50% Interest||1.5||1.7||(12||)%|
GAAP and NON-GAAP FINANCIAL MEASURES
Management reviews the operational progress of its business units and investment programs over successive periods through the analysis of net income, EBITDA and Adjusted EBITDA. The Company defines EBITDA as net 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 term Adjusted EBITDA is not defined under U.S. generally accepted accounting principles ("U.S. GAAP") and is not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Adjusted EBITDA has limitations as an analytical tool, and when assessing the company's operating performance, investors should not consider 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, Adjusted EBITDA does 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 Adjusted EBITDA as supplemental information.
|GAAP & NON-GAAP FINANCIAL MEASURES FROM CONTINUING OPERATIONS|
|($ in millions)||31-Mar-17||30-Jun-17||30-Sep-17||31-Dec-17||31-Mar-18|
|Three months ended|
|Net loss from continuing operations||$||(12.8||)||$||(13.3||)||$||(15.7||)||$||(19.2||)||$||(12.7||)|
|Income tax expense||(0.8||)||(4.0||)||0.4||(0.1||)||0.9|
|Interest Expense, net||3.4||6.3||0.9||2.5||2.1|
|Depreciation and amortization||3.7||3.5||3.9||3.9||4.2|
|Stock based compensation||1.1||3.1||2.1||0.7||0.3|
|Unrealized foreign exchange (gain) loss||(1.6||)||1.0||2.5||(1.3||)||—|
|Restructuring, termination and other exit costs||1.6||(1.6||)||(0.1||)||1.8||0.6|
|CWI US tax adjustment||—||—||—||6.7||—|
FINANCIAL STATEMENTS & MANAGEMENT'S DISCUSSION AND ANALYSIS
To view Westport Fuel Systems full financials for the first quarter ended March 31, 2018, please visit www.wfsinc.com/investors/financials.
About Westport Fuel Systems
At Westport Fuel Systems, we are driving innovation to power a cleaner tomorrow. We are inventors, engineers, manufacturers and suppliers of advanced clean fuel systems and components that can change the way the world moves. Our technology delivers performance, fuel efficiency and environmental benefits to address the challenges of global climate change and urban air quality. Headquartered in Vancouver, Canada, 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.
Manager, Investor Relations & Communications
Westport Fuel Systems
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements, including statements regarding revenue, adjusted EBITDA and cash usage expectations, continued research and development investment, the demand for our products, the future success of our business and technology strategies, cash and capital requirements 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 research and development expenses, CWI performance, the availability and price of natural gas, global government stimulus packages, the acceptance of and shift to natural gas vehicles, 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, 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.
Vancouver, BC (CleanTech & Energy)
Westport Fuel Systems
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