VANCOUVER, BC, November 7,
2023 /PRNewswire/ - 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, 2023, and provided an update on operations. All
figures are in U.S. dollars unless otherwise stated.
"Our third quarter was an important one in our evolution at
Westport, including the
announcement of our HPDI joint venture with Volvo. We have
made great progress working with the Volvo team to finalize the
details of the joint venture. We are now at a stage where I
can confidently say that we plan to have the definitive agreements
signed no later than the end of January
2024 and the joint venture closed and operational in the
second quarter of 2024.
While we remain focused on closing the joint venture, we also
remain committed to our other key priorities, including finding
operational efficiencies, crystallizing cost reductions, and
strengthening our balance sheet. During the quarter, consistent
with these objectives, we prioritized the reorganization of our
presence in India to streamline
our business, including the monetization of non-core assets and
reduction of our cash burn. We are looking for opportunities
to further improve our liquidity through working capital
efficiencies across the organization.
Yesterday, we announced that Westport has entered new markets with our H2
HPDI fuel system solution with a proof-of-concept project with a
leading global provider of locomotives and related equipment for
the freight and transit rail industries. This represents our first
application of the H2 HPDI system for the locomotive sector. In our
view, the hard to abate medium and heavy duty as well as high
horsepower sectors are where HPDI creates significant value. We
believe this is an affordable path to decarbonizing the rail sector
without compromising performance or efficiency.
We remain steadfast in our commitment to sustainable growth in
our existing markets and unlocking new and emerging opportunities.
Looking to the fourth quarter of 2023 and heading into the 2024
fiscal year, we expect continued strong performance in our results
as we recognize a full quarter of HPDI fuel system sales
following the launch of Volvo's more powerful, extended range
option and we prepare to begin delivery of Euro 6 LPG fuel systems to a global original
equipment manufacturer, now anticipated to begin in January.
We also see continued strong long-term demand in our hydrogen
business.
Finally, we expect to transition to a permanent CEO
for Westport in the coming months. In the interim, I
remain committed to working with management to deliver on our key
priorities."
Tony Guglielmin, Interim Chief Executive Officer &
Director
THIRD QUARTER 2023 HIGHLIGHTS
- Quarterly revenue of $77.4
million, up 9% compared to the same period in 2022,
primarily driven by increased sales volumes in the delayed OEM,
electronics, and fuel storage businesses and additional sales from
the heavy-duty OEM business were partially offset by lower sales to
customers in the light-duty OEM business.
- Demonstrated improvement in gross margin, increasing
$1.9 million to $13.2 million, or 17.1% of revenue for the
quarter as compared to $11.3 million
or 15.9% of revenue, for the three months ended September 30, 2022. The increase was driven by
the positive revenue impacts mentioned, offset by higher production
input costs stemming from global supply chain challenges and
inflation in logistics, labor and other costs, which we have only
partially been able to pass on to our OEM customers as well as a
lower margin sales mix in our IAM business.
- Net loss of $11.9 million for the
quarter ended September 30, 2023,
compared to net loss of $11.9 million
for the same quarter last year. Increased gross margins, a decrease
in foreign exchange losses and reduced spending on research and
development were partially offset by increased general and
administrative expenditures.
- Adjusted EBITDA1 of negative $3.0 million for the quarter as compared to
negative $4.5 million for the same
period in 2022.
- Cash and cash equivalents were $44.0
million at the end of third quarter 2023.
____________________________
1
Adjusted earnings before interest, taxes and depreciation is a
non-GAAP measure. Please refer to GAAP and NON-GAAP FINANCIAL
MEASURES in Westport's Management
Discussion and Analysis for the reconciliation.
OPERATIONAL HIGHLIGHTS
Westport remains committed to
its priorities - driving sustainable growth in our existing
markets, unlocking new and emerging markets, driving operational
excellence, and extracting efficiencies through prudent capital
management. In the near-term, the Company's immediate priorities
are finalizing the HPDI joint venture with Volvo, elevating the
performance and efficiency of the core business and improving
margins, while continuing to improve the Company's management of
working capital. Based on these priorities, Westport can report several achievements that
occurred during and subsequent to the third quarter of
2023.
Westport, together with Volvo,
continues to work towards the formalization and launch of the HPDI
joint venture. The Company currently expects definitive
agreements between Westport and
Volvo to be signed no later than the end of January 2024 and the joint venture to close and
be operational in the second quarter of 2024.
Also, Westport is entering new
markets with a two-year H2 HPDI proof of concept project with a
leading global provider of locomotives and related equipment for
the freight and transit rail industries. The project will adapt
Westport's H2 HPDI™ fuel system
for use with the locomotive OEM engine design.
Consistent with Westport's objective of improving
profitability and strengthening the Company's balance sheet, in
September, the Company reorganized its partnership with Minda in
India decreasing its stake in the
joint venture, Minda Westport Technologies Ltd., from 50% to 24% in
exchange for approximately $1.8
million on closing. The transaction with Minda is
anticipated to close by the end of Q1 2024 and is expected to
reduce Westport's near-term cash
burn. In addition, Westport is
amending its joint venture agreement to include future hydrogen
components in addition to CNG/LNG/LPG components and kits (all
focused on the Indian market), but to exclude any interest in HPDI.
The amended agreement and resulting rationalization of local costs
allows Westport to maintain
participation in the alternative fuels market in India with a focus on improved profitability.
Moreover, the joint venture provides Westport with an opportunity to lower
operations costs, while expanding volumes in the fast-growing
market in India and, at the same
time, having access to a lower-cost manufacturing footprint through
the joint venture for some of the Westport business outside of India. Following closing of the transaction
any litigation or claims between the two parties will no longer be
pursued.
3Q23 Operations
CONSOLIDATED
RESULTS
|
|
|
|
($ in millions, except
per share amounts)
|
|
Over /
(Under) %
|
|
Over /
(Under) %
|
3Q23
|
3Q22
|
9M23
|
9M22
|
Revenues
|
$
77.4
|
$
71.2
|
9 %
|
$ 244.7
|
$ 227.7
|
7 %
|
Gross
Margin(2)
|
13.2
|
11.3
|
17 %
|
40.9
|
31.7
|
29 %
|
Gross Margin
%
|
17 %
|
16 %
|
—
|
17 %
|
14 %
|
|
Operating
Expenses
|
25.3
|
22.2
|
14 %
|
72.7
|
64.8
|
12 %
|
Income from Investments
Accounted for by the Equity Method(1)
|
0.4
|
0.2
|
124 %
|
0.6
|
1.0
|
(34) %
|
Net Loss
|
$ (11.9)
|
$ (11.9)
|
— %
|
$ (35.8)
|
$ (15.8)
|
126 %
|
Net Loss per
Share
|
$ (0.68)
|
$ (0.70)
|
3 %
|
$ (2.03)
|
$ (0.92)
|
(118) %
|
EBITDA(2)
|
$
(8.6)
|
$
(8.0)
|
(8) %
|
$ (25.0)
|
$
(4.0)
|
525 %
|
Adjusted
EBITDA(2)
|
$
(3.0)
|
$
(4.5)
|
33 %
|
$ (11.5)
|
$ (14.9)
|
(23) %
|
|
(1) This includes income from our
Minda Westport Technologies Limited joint ventures.
|
(2) 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.
|
Revenues for the three months ended September 30, 2023 increased 9% to $77.4 million compared to $71.2 million in the same quarter last year,
primarily driven by increased sales volumes in delayed OEM,
electronics, fuel storage and additional revenues from the
heavy-duty OEM business. These were offset by lower customer sales
in the light duty OEM business.
We reported a net loss of $11.9
million for the three months ended September 30, 2023, compared to net loss of
$11.9 million for the same quarter
last year. This was primarily the result of:
- $1.9 million increase in gross
margin related to higher revenues;
- $1.2 million decrease in foreign
exchange losses; and
- lower research and development expenses incurred in our
heavy-duty OEM business;
- which was partially offset by a $4.3
million increase in general and administrative expenses
related to severance costs and increased consulting costs.
Westport generated negative
$3.0 million in Adjusted EBITDA
during the second quarter of 2023, compared to negative
$4.5 million Adjusted EBITDA for the
same period in 2022.
Segment Information
SEGMENT
RESULTS
|
Three months ended
September 30, 2023
|
|
Revenue
|
|
Operating
loss
|
|
Depreciation
&
amortization
|
|
Equity
income
|
OEM
|
$
52.9
|
|
$
(6.2)
|
|
$
2.5
|
|
$
0.4
|
IAM
|
24.5
|
|
(0.9)
|
|
0.6
|
|
—
|
Corporate
|
—
|
|
(5.0)
|
|
0.1
|
|
—
|
Total
Consolidated
|
$
77.4
|
|
$
(12.1)
|
|
$
3.2
|
|
$
0.4
|
SEGMENT
RESULTS
|
Three months ended
September 30, 2022
|
|
Revenue
|
|
Operating
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
|
Original Equipment Manufacturer Segment
Revenue for the three and nine months ended September 30, 2023 was $52.9 million and $161.6
million, respectively, compared with $44.1 million and $150.2
million for the three and nine months ended September 30, 2022. Revenue for the OEM business
segment increased by $8.8 million as
compared to the second quarter of 2022 and by $11.4 million as compared to the nine months
ended September 30, 2022. The
increase in revenue for the third quarter was primarily driven by
higher sales volumes in the delayed OEM, electronics and fuel
storage businesses and additional engineering service revenue from
the heavy-duty OEM business. This increase was partially offset by
lower sales to customers in India
in the light-duty OEM business.
For the third quarter, gross margin2 increased by
$3.1 million to $7.8 million, or 15% of revenue, compared to
$4.7 million, or 11% of revenue for
the three months ended September 30,
2022. The increase in gross margin is primarily driven by
increased sales volumes in the delayed OEM, electronics and fuel
storage businesses, as well as increased gross margin in the
heavy-duty OEM due to higher engineering service revenue. This was
partially offset by higher production input costs stemming from
global supply chain challenges and inflation in logistics, labor
and other costs, which we have only partially been able to pass on
to our OEM customers.
Year to date, gross margin increased by $9.9 million to $24.3
million, or 15% of revenue, compared to $14.4 million, or 10% of revenue for the nine
months ended September 30, 2022.
LPG fuel system production and sales to our global OEM customer
for Euro 6 vehicle applications were
originally set to begin delivery in November
2023. The OEM customer has delayed the launch by two
months, pushing initial deliveries to January 2024.
_____________________________
2
Gross margin is a non-GAAP measure. Please refer to GAAP and
NON-GAAP FINANCIAL MEASURES in Westport's Management Discussion and Analysis
for the reconciliation.
Independent Aftermarket Segment
Revenue for the three and nine months ended September 30, 2023 was $24.5 million and $83.1
million, respectively, compared with $27.1 million and $77.5
million for the three and nine months ended September 30, 2022. Revenue for the IAM business
segment decreased by $2.6 million and
increased $5.6 million, as compared
to the three and nine months ended September
30, 2022. The decrease in revenue for the third quarter was
primarily driven by decreased sales volumes to African and European
markets partially offset with higher sales volumes in South America.
For the third quarter, gross margin decreased by $1.2 million to $5.4
million, or 22% of revenue, compared to $6.6 million, or 24% of revenue, for the three
months ended September 30, 2022. The
decrease in gross margin is related to lower sales in Africa and Europe as well as lower margin sales mix and
inflation in South America. For
the nine months ended September 30,
2023, gross margin decreased by $0.7
million to $16.6 million, or
20% of revenue, compared to $17.3
million, or 22% of revenue, for the nine months ended
September 30, 2022.
Financial Statements & Management's Discussion and
Analysis
To view Westport financials for
the quarter ended September 30th,
2023, please visit
https://investors.wfsinc.com/financials/
Conference Call & Webcast
Westport has scheduled a
conference call for Wednesday, November 8th,
2023, at 7:00 AM Pacific Time
(10:00 AM Eastern Time) to discuss
these results. To access the conference call by telephone, please
dial 1-888-390-0546 (Canada &
USA toll-free) or 416-764-8688.
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 1-888-390-0541
(Canada & USA toll-free) or 1-416-764-8677 using the
passcode 977286#. The telephone replay will be available
until November 22, 2023. Shortly
after the conference call, a replay will be available in streaming
audio and a downloadable MP3 file.
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), ongoing supply chain challenges, 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 and hydrogen 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, ongoing supply chain
challenges, 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 and anticipated new joint venture, the availability
and price of natural gas and hydrogen, government stimulus packages
and new environmental regulations, the acceptance of and shift to
natural gas and/or hydrogen vehicles, the relaxation or waiver of
fuel emission standards, the ability of fleets to access capital or
government funding to purchase natural gas or hydrogen vehicles,
the development of competing technologies, our ability to
adequately develop and deploy our technology, the actions and
determinations of our joint ventures and anticipated new 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.
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 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)
|
3Q22
|
4Q22
|
1Q23
|
2Q23
|
3Q23
|
Three months
ended
|
Net loss before
income taxes
|
$
(11.0)
|
$
(16.4)
|
$
(9.7)
|
$
(13.0)
|
$
(12.0)
|
|
|
|
|
|
|
Interest expense
(income), net
|
0.2
|
0.1
|
0.4
|
(0.1)
|
0.2
|
Depreciation and
amortization
|
2.8
|
2.8
|
3.0
|
3.0
|
3.2
|
EBITDA
|
(8.0)
|
(13.5)
|
(6.3)
|
(10.1)
|
(8.6)
|
|
|
|
|
|
|
Stock-based
compensation
|
0.8
|
0.2
|
0.7
|
0.8
|
(0.3)
|
Unrealized foreign
exchange loss
|
2.7
|
0.4
|
1.1
|
2.4
|
1.4
|
Loss on extinguishment
of royalty payable
|
—
|
—
|
—
|
2.9
|
—
|
Severance
costs
|
—
|
—
|
—
|
—
|
4.5
|
Adjusted
EBITDA
|
$
(4.5)
|
$
(12.9)
|
$
(4.5)
|
$
(4.0)
|
$
(3.0)
|
WESTPORT FUEL SYSTEMS
INC.
Condensed Consolidated Interim Balance Sheets (unaudited)
(Expressed in thousands of United
States dollars, except share amounts)
September 30, 2023 and December 31, 2022
|
|
September 30,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents (including restricted cash)
|
|
$
43,967
|
|
$
86,184
|
Accounts
receivable
|
|
100,926
|
|
101,640
|
Inventories
|
|
76,876
|
|
81,635
|
Prepaid
expenses
|
|
6,089
|
|
7,760
|
Total current
assets
|
|
227,858
|
|
277,219
|
Long-term
investments
|
|
5,206
|
|
4,629
|
Property, plant and
equipment
|
|
65,781
|
|
62,641
|
Operating lease
right-of-use assets
|
|
22,513
|
|
23,727
|
Intangible
assets
|
|
6,858
|
|
7,817
|
Deferred income tax
assets
|
|
10,594
|
|
10,430
|
Goodwill
|
|
2,931
|
|
2,958
|
Other long-term
assets
|
|
13,776
|
|
18,030
|
Total
assets
|
|
$
355,517
|
|
$
407,451
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
101,505
|
|
$
98,863
|
Current portion of
operating lease liabilities
|
|
3,186
|
|
3,379
|
Short-term
debt
|
|
6,348
|
|
9,102
|
Current portion of
long-term debt
|
|
12,698
|
|
11,698
|
Current portion of
long-term royalty payable
|
|
—
|
|
1,162
|
Current portion of
warranty liability
|
|
8,672
|
|
11,315
|
Total current
liabilities
|
|
132,409
|
|
135,519
|
Long-term operating
lease liabilities
|
|
19,005
|
|
20,080
|
Long-term
debt
|
|
23,207
|
|
32,164
|
Long-term royalty
payable
|
|
—
|
|
4,376
|
Warranty
liability
|
|
1,249
|
|
2,984
|
Deferred income tax
liabilities
|
|
3,418
|
|
3,282
|
Other long-term
liabilities
|
|
5,045
|
|
5,080
|
Total
liabilities
|
|
184,333
|
|
203,485
|
Shareholders'
equity:
|
|
|
|
|
Share
capital:
|
|
|
|
|
Unlimited common and
preferred shares, no par value
|
|
|
|
|
17,174,972 (2022 -
17,130,316) common shares issued and outstanding
|
|
1,244,547
|
|
1,243,272
|
Other equity
instruments
|
|
9,002
|
|
9,212
|
Additional paid in
capital
|
|
11,516
|
|
11,516
|
Accumulated
deficit
|
|
(1,060,488)
|
|
(1,024,716)
|
Accumulated other
comprehensive loss
|
|
(33,393)
|
|
(35,318)
|
Total shareholders'
equity
|
|
171,184
|
|
203,966
|
Total liabilities
and shareholders' equity
|
|
$
355,517
|
|
$
407,451
|
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, 2023 and 2022
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
$
77,391
|
|
$
71,182
|
|
$
244,653
|
|
$
227,690
|
Cost of revenue and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
64,163
|
|
59,910
|
|
203,695
|
|
195,986
|
Research and
development
|
|
5,748
|
|
6,473
|
|
18,796
|
|
17,661
|
General and
administrative
|
|
12,993
|
|
8,649
|
|
33,307
|
|
26,853
|
Sales and
marketing
|
|
4,088
|
|
3,351
|
|
12,557
|
|
10,914
|
Foreign exchange
loss
|
|
1,430
|
|
2,648
|
|
4,926
|
|
5,985
|
Depreciation and
amortization
|
|
1,100
|
|
1,074
|
|
3,158
|
|
3,342
|
|
|
89,522
|
|
82,105
|
|
276,439
|
|
260,741
|
Loss from
operations
|
|
(12,131)
|
|
(10,923)
|
|
(31,786)
|
|
(33,051)
|
|
|
|
|
|
|
|
|
|
Income from investments
accounted for by the equity method
|
|
448
|
|
202
|
|
633
|
|
953
|
Gain on sale of
investments and assets
|
|
(144)
|
|
—
|
|
(123)
|
|
19,119
|
Interest on long-term
debt and accretion on royalty payable
|
|
(568)
|
|
(796)
|
|
(2,058)
|
|
(2,695)
|
Loss on
extinguishment
|
|
—
|
|
—
|
|
(2,909)
|
|
—
|
Interest and other
income, net of bank charges
|
|
382
|
|
555
|
|
1,560
|
|
793
|
Loss before income
taxes
|
|
(12,013)
|
|
(10,962)
|
|
(34,683)
|
|
(14,881)
|
Income tax expense
(recovery)
|
|
(76)
|
|
965
|
|
1,089
|
|
915
|
Net loss for the
period
|
|
(11,937)
|
|
(11,927)
|
|
(35,772)
|
|
(15,796)
|
Other comprehensive
loss:
|
|
|
|
|
|
|
|
|
Cumulative translation
adjustment
|
|
3,427
|
|
(5,514)
|
|
(1,925)
|
|
(10,159)
|
Comprehensive
loss
|
|
$
(8,510)
|
|
$
(17,441)
|
|
$
(37,697)
|
|
$
(25,955)
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
Net loss per share -
basic and diluted
|
|
$
(0.68)
|
|
$
(0.70)
|
|
$
(2.03)
|
|
$
(0.92)
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
17,666,649
|
|
17,124,606
|
|
17,664,106
|
|
17,120,040
|
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, 2023 and 2022
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
activities:
|
|
|
|
|
|
|
|
|
Net loss for the
period
|
|
$
(11,937)
|
|
$
(11,927)
|
|
$
(35,772)
|
|
$
(15,796)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
3,250
|
|
2,900
|
|
9,270
|
|
9,040
|
Stock-based
compensation expense
|
|
(310)
|
|
731
|
|
1,065
|
|
1,972
|
Unrealized foreign
exchange loss
|
|
1,430
|
|
2,648
|
|
4,926
|
|
5,985
|
Deferred income
tax
|
|
(324)
|
|
531
|
|
(347)
|
|
—
|
Income from
investments accounted for by the equity method
|
|
(448)
|
|
(202)
|
|
(633)
|
|
(953)
|
Interest on long-term
debt and accretion on royalty payable
|
|
568
|
|
796
|
|
2,058
|
|
2,695
|
Change in inventory
write-downs to net realizable value
|
|
500
|
|
476
|
|
2,078
|
|
1,025
|
Loss on extinguishment
of royalty payable
|
|
—
|
|
—
|
|
2,909
|
|
—
|
Change in bad debt
expense
|
|
304
|
|
219
|
|
676
|
|
278
|
(Gain) loss on sale of
investment and assets
|
|
144
|
|
—
|
|
123
|
|
(19,119)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
2,877
|
|
3,342
|
|
2,305
|
|
5,813
|
Inventories
|
|
3,359
|
|
(387)
|
|
2,231
|
|
(12,270)
|
Prepaid
expenses
|
|
1,889
|
|
(2,555)
|
|
3,296
|
|
(3,743)
|
Accounts payable and
accrued liabilities
|
|
844
|
|
(2,971)
|
|
1,894
|
|
(10,251)
|
Warranty
liability
|
|
(1,061)
|
|
(2,192)
|
|
(3,622)
|
|
(6,671)
|
Net cash from (used in)
operating activities
|
|
1,085
|
|
(8,591)
|
|
(7,543)
|
|
(41,995)
|
Investing
activities:
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
|
(4,081)
|
|
(2,467)
|
|
(11,993)
|
|
(8,450)
|
Purchase of intangible
assets
|
|
—
|
|
(78)
|
|
—
|
|
(374)
|
Proceeds on sale of
investments and assets
|
|
—
|
|
—
|
|
133
|
|
31,949
|
Net cash from (used in)
investing activities of continuing operations
|
|
(4,081)
|
|
(2,545)
|
|
(11,860)
|
|
23,125
|
Financing
activities:
|
|
|
|
|
|
|
|
|
Repayments of short
and long-term facilities
|
|
(11,943)
|
|
(13,353)
|
|
(34,819)
|
|
(49,952)
|
Drawings on operating
lines of credit and long-term facilities
|
|
7,497
|
|
9,707
|
|
20,593
|
|
35,099
|
Payment of royalty
payable
|
|
—
|
|
—
|
|
(8,687)
|
|
(5,200)
|
Net cash used in
financing activities
|
|
(4,446)
|
|
(3,646)
|
|
(22,913)
|
|
(20,053)
|
Effect of foreign
exchange on cash and cash equivalents
|
|
(856)
|
|
3,109
|
|
99
|
|
532
|
Net decrease in cash
and cash equivalents
|
|
(8,298)
|
|
(11,673)
|
|
(42,217)
|
|
(38,391)
|
Cash and cash
equivalents, beginning of period (including restricted
cash)
|
|
52,265
|
|
98,174
|
|
86,184
|
|
124,892
|
Cash and cash
equivalents, end of period (including restricted cash)
|
|
$
43,967
|
|
$
86,501
|
|
$
43,967
|
|
$
86,501
|
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SOURCE Westport Fuel Systems Inc.