VANCOUVER, BC, Aug. 8, 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 second
quarter ended June 30, 2023, and provided an update on
operations. All figures are in U.S. dollars unless otherwise
stated.
SECOND QUARTER 2023 HIGHLIGHTS
- Record quarterly revenue of $85.0
million, up 6% compared to the same period in 2022,
primarily driven by increased sales volumes in delayed OEM,
electronics, and fuel storage businesses and additional sales from
the independent aftermarket business generated from the Eastern
European and South American markets partially offset by lower sales
to customers in India in the
light-duty OEM business and lower sales volumes in the hydrogen and
heavy-duty OEM businesses.
- Demonstrated improvement in gross margin, increasing
$3.9 million to $14.4 million, or 16.9% of revenue for the
quarter as compared to $10.5 million
or 13.1% of revenue, for the three months ended June 30, 2022. The increase was driven by the
above-mentioned increase in revenue in addition to increased gross
margin in the heavy-duty OEM business and in the IAM business
specifically in South America
partially offset by higher production input costs, utilities, labor
and other costs, which we have only partially been able to pass on
to our OEM customers.
- Net loss of $13.2 million for the
quarter ended June 30, 2023, compared
to net loss of $11.6 million for the
same quarter last year. Increased gross margins were more than
offset by increased general and administrative and sales and
marketing expenditures, along with a $2.9
million loss on extinguishment due to the settlement of the
Cartesian royalty payable.
- Adjusted EBITDA1 of negative $4.0 million.
- Cash and cash equivalents were $52.3
million at the end of second quarter 2023.
- In April, we entered into a settlement agreement with the
Cartesian Capital Group to terminate the Tranche 1 Financing
agreement in exchange for mutual releases and cash consideration,
which included the release of the security interest in our HPDI 2.0
fuel system intellectual property. We paid Cartesian Capital Group
$8.7 million, which extinguished the
long-term royalty payable.
- In June, we finalized a share consolidation of the Company's
issued and outstanding common shares on a 10:1 basis.
- In July, we signed a non-binding letter of intent with Volvo to
establish a joint venture to accelerate the commercialization and
global adoption of Westport's
HPDI™ fuel system technology for long-haul and off-road
applications.
- Expanded previously awarded Euro
7 program to develop and supply LPG fuel systems for several
vehicle applications for a global OEM. This expanded program is
forecasted to generate €63 million in total revenue from 2025 to
2028 and increases the revenue generated from LPG fuel system
supply agreements for Euro 6 and 7
programs with this OEM to approximately €255 million.
|
|
|
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.
|
"The first half of our 2023 fiscal year has produced solid results
relative to the operating and economic environments around the
world and within our industry. Despite expected lower HPDI sales
volumes, a significant decrease as the result of a model changeover
and new product launch expected in the third quarter, we recorded
record revenues and improving gross margins in the second quarter.
Revenue of $85 million, a 6%
improvement over last year was supported by growth in our core
businesses, particularly in delayed OEM, electronics, and fuel
storage, in addition to increased sales from our independent
aftermarket business.
Most recently, our joint venture announcement with Volvo marks a
true inflection point for Westport
and a validation of our proprietary technology. This joint venture
brings a global audience to our HPDI fuel system and recognition as
a key ingredient in the road map to reducing carbon emissions for
long-haul and off-road applications. Feedback to date from global
OEMs has been overwhelmingly positive, as the industry is
recognizing that partnerships will be key to the successful
decarbonization of the long-haul and off-road transport
sectors.
Regarding the second half of fiscal 2023, Westport continues to focus on top- and
bottom-line improvements. As a reminder, late 2023 will mark the
beginning of our LPG fuel system production and sales to our global
OEM customer, a relationship that continues to grow with the recent
announcement of our expanded Euro 7
scope. The price advantage of LPG versus petrol and the shrinking
cost to access lower-carbon transportation is driving demand.
Growth in key markets to meet the increasing demand for both
affordable and low-emission transportation solutions is a key focus
for Westport.
Our company's diversified business model is positioned to
continue performing well in the second half of 2023 through the
combination of our sustainable core businesses with our
higher-growth opportunities as we pursue the goal of creating
solutions for us all to live in a lower carbon-emitting
world."
David M. Johnson, Chief Executive
Officer
2Q23 Operations
CONSOLIDATED
RESULTS
|
|
|
|
($ in millions,
except per share amounts)
|
|
Over /
(Under)
%
|
|
Over /
(Under)
%
|
2Q23
|
2Q22
|
1H23
|
1H22
|
Revenues
|
$ 85.0
|
$ 80.0
|
6 %
|
$
167.3
|
$
156.5
|
7 %
|
Gross
Margin(2)
|
14.4
|
10.5
|
37 %
|
27.7
|
20.4
|
36 %
|
Gross Margin
%
|
17 %
|
13 %
|
—
|
17 %
|
13 %
|
|
Operating
Expenses
|
24.6
|
21.8
|
13 %
|
47.4
|
42.6
|
11 %
|
Income from Investments
Accounted for by the
Equity Method(1)
|
0.1
|
0.5
|
(80) %
|
0.2
|
0.8
|
(75) %
|
Net Loss
|
$ (13.2)
|
$ (11.6)
|
(14) %
|
$ (23.8)
|
$
(3.9)
|
(510) %
|
Net Loss per
Share
|
$ (0.77)
|
$ (0.68)
|
(13) %
|
$ (1.39)
|
$ (0.23)
|
(504) %
|
EBITDA(2)
|
$
(10.1)
|
$
(7.7)
|
(31) %
|
$ (16.4)
|
$
4.0
|
(510) %
|
Adjusted
EBITDA(2)
|
$
(4.0)
|
$
(4.3)
|
7 %
|
$
(8.5)
|
$ (10.4)
|
18 %
|
(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 June 30,
2023 increased 6% to $85.0
million compared to $80.0
million in the same quarter last year, primarily driven by
increased sales volumes in delayed OEM, electronics, fuel storage
businesses and additional revenues from the IAM business generated
from Eastern Europe and
South America markets. These
were offset by lower sales to customers in India in the light duty OEM business and lower
sales volumes in the hydrogen and heavy-duty OEM businesses.
Reported a net loss of $13.2
million for the three months ended June 30, 2023, compared to net loss of
$11.6 million for the same quarter
last year. The current period net loss included a one-time expense
of $2.9 million related to the
extinguishment of the Cartesian royalty payable.
Westport generated negative
$4.0 million in Adjusted EBITDA
during the second quarter of 2023, compared to negative
$4.3 million Adjusted EBITDA for the
same period in 2022.
Segment Information
SEGMENT
RESULTS
|
Three months ended
June 30, 2023
|
|
Revenue
|
|
Operating
income (loss)
|
|
Depreciation
& amortization
|
|
Equity
income
|
OEM
|
$
52.4
|
|
$
(7.3)
|
|
$
2.3
|
|
$
0.1
|
IAM
|
32.6
|
|
1.7
|
|
0.6
|
|
—
|
Corporate
|
—
|
|
(4.6)
|
|
0.1
|
|
—
|
Total
Consolidated
|
$
85.0
|
|
$
(10.2)
|
|
$
3.0
|
|
$
0.1
|
|
SEGMENT
RESULTS
|
Three months ended
June 30, 2022
|
|
Revenue
|
|
Operating
income (loss)
|
|
Depreciation
& amortization
|
|
Equity
income
|
OEM
|
$
54.3
|
|
$
(5.6)
|
|
$
2.2
|
|
$
0.5
|
IAM
|
25.7
|
|
0.1
|
|
0.8
|
|
—
|
Corporate
|
—
|
|
(5.8)
|
|
0.1
|
|
—
|
Total
Consolidated
|
$
80.0
|
|
$
(11.3)
|
|
$
3.1
|
|
$
0.5
|
Original Equipment Manufacturer Segment
Revenue for the three and six months ended June 30, 2023 was $52.4
million and $108.7 million,
respectively, compared with $54.3
million and $106.1 million for
the three and six months ended June 30,
2022. Revenue for the OEM business segment decreased by
$1.9 million as compared to the
second quarter of 2022 and increased by $2.6
million as compared to the six months ended June 30, 2022. The decrease in revenue for the
three months ended June 30, 2023 was
primarily driven by the lower sales volumes and sales mix for the
heavy duty OEM business, lower sales to customers in India in the light-duty OEM business and lower
sales volumes to hydrogen customers. The decrease is partially
offset by an increase in sales volumes from delayed OEM, fuel
storage and electronic businesses compared to the same quarter last
year.
For the second quarter, gross margin2 increased by
$3.7 million to $8.4 million, or 16% of revenue, compared to
$4.7 million, or 9% of revenue for
the three months ended June 30, 2022.
The increase in gross margin is primarily due to increased sales
volumes in our delayed OEM and fuel storage businesses, as well as
increased gross margin in the heavy-duty OEM business due to higher
spare parts sales, higher unit pricing on HPDI system sales and
higher engineering service revenue. This was partially offset by
higher production input costs stemming from global supply chain
challenges and inflation in logistics, utilities, labor and other
costs, which we have only partially been able to pass on to our OEM
customers.
Year to date, gross margin decreased by $6.8 million to $16.5
million, or 15% of revenue, compared to $9.7 million, or 9% of revenue for the six months
ended June 30, 2022.
We remain confident in the outlook for our OEM segment. Our
light-duty OEM business continues to gain market share with the
recently announced additional Euro 7
business, our delayed OEM business is delivering significantly
higher volumes, our hydrogen business has multiple growth projects
underway and the announced HPDI joint venture with Volvo combined
with Volvo's release of a new natural gas HPDI equipped engine all
position Westport's HPDI fuel
system for growth.
|
|
|
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 six months ended June 30, 2023 was $32.6
million and $58.6 million,
respectively, compared with $25.7
million and $50.4 million for
the three and six months ended June 30,
2022. Revenue for the IAM business segment increased by
$6.9 million and $8.2 million, as compared to the three and six
months ended June 30, 2022. The
increase in revenue was primarily driven by increased sales volumes
to Africa, Eastern Europe and South America.
For the second quarter, gross margin increased by $0.2 million to $6.0
million, or 18% of revenue, compared to $5.8 million, or 23% of revenue, for the three
months ended June 30, 2022. The
increase in gross margin is related to higher sales in South America. For the six months ended
June 30, 2023, gross margin increased
by $0.5 million to $11.2 million, or 19% of revenue, compared to
$10.7 million, or 21% of revenue, for
the six months ended June 30,
2022.
FINANCIAL STATEMENTS & MANAGEMENT'S DISCUSSION AND
ANALYSIS
To view Westport financials for
the second quarter ended June 30th,
2023, please visit
https://investors.wfsinc.com/financials/
LIVE CONFERENCE CALL & WEBCAST
Westport has scheduled a
conference call for Wednesday, August 9th,
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/
REPLAY CONFERENCE CALL & WEBCAST
To access the conference call replay, please dial 1-888-390-0541
(Canada & USA toll-free) or 1-416-764-8677 using the
passcode 290775#. The telephone replay will be available until
August 23, 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 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, 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,
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)
|
2Q22
|
3Q22
|
4Q22
|
1Q23
|
2Q23
|
Three months
ended
|
Net loss before
income taxes
|
$
(11.5)
|
$
(11.0)
|
$
(16.4)
|
$
(9.7)
|
$
(13.0)
|
|
|
|
|
|
|
Interest expense
(income), net
|
0.7
|
0.2
|
0.1
|
0.4
|
(0.1)
|
Depreciation and
amortization
|
3.1
|
2.8
|
2.8
|
3.0
|
3.0
|
EBITDA
|
(7.7)
|
(8.0)
|
(13.5)
|
(6.3)
|
(10.1)
|
|
|
|
|
|
|
Stock based
compensation
|
0.9
|
0.8
|
0.2
|
0.7
|
0.8
|
Unrealized foreign
exchange loss
|
2.5
|
2.7
|
0.4
|
1.1
|
2.4
|
Adjusted
EBITDA
|
$
(4.3)
|
$
(4.5)
|
$
(12.9)
|
$
(4.5)
|
$
(4.0)
|
WESTPORT FUEL SYSTEMS INC.
Condensed Consolidated Interim Balance Sheets (unaudited)
(Expressed in thousands of United
States dollars, except share amounts)
June 30, 2023 and December 31, 2022
|
|
June 30,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents (including restricted cash)
|
|
$
52,265
|
|
$
86,184
|
Accounts
receivable
|
|
102,101
|
|
101,640
|
Inventories
|
|
82,886
|
|
81,635
|
Prepaid
expenses
|
|
6,620
|
|
7,760
|
Total current
assets
|
|
243,872
|
|
277,219
|
Long-term
investments
|
|
4,895
|
|
4,629
|
Property, plant and
equipment
|
|
66,159
|
|
62,641
|
Operating lease
right-of-use assets
|
|
24,067
|
|
23,727
|
Intangible
assets
|
|
7,348
|
|
7,817
|
Deferred income tax
assets
|
|
10,838
|
|
10,430
|
Goodwill
|
|
3,022
|
|
2,958
|
Other long-term
assets
|
|
17,430
|
|
18,030
|
Total
assets
|
|
$
377,631
|
|
$
407,451
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
100,724
|
|
$
98,863
|
Current portion of
operating lease liabilities
|
|
3,507
|
|
3,379
|
Short-term
debt
|
|
5,224
|
|
9,102
|
Current portion of
long-term debt
|
|
14,087
|
|
11,698
|
Current portion of
long-term royalty payable
|
|
—
|
|
1,162
|
Current portion of
warranty liability
|
|
8,914
|
|
11,315
|
Total current
liabilities
|
|
132,456
|
|
135,519
|
Long-term operating
lease liabilities
|
|
20,408
|
|
20,080
|
Long-term
debt
|
|
26,945
|
|
32,164
|
Long-term royalty
payable
|
|
—
|
|
4,376
|
Warranty
liability
|
|
2,974
|
|
2,984
|
Deferred income tax
liabilities
|
|
3,496
|
|
3,282
|
Other long-term
liabilities
|
|
4,494
|
|
5,080
|
Total
liabilities
|
|
190,773
|
|
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
|
|
9,312
|
|
9,212
|
Additional paid in
capital
|
|
11,516
|
|
11,516
|
Accumulated
deficit
|
|
(1,048,551)
|
|
(1,024,716)
|
Accumulated other
comprehensive loss
|
|
(29,966)
|
|
(35,318)
|
Total shareholders'
equity
|
|
186,858
|
|
203,966
|
Total liabilities
and shareholders' equity
|
|
$
377,631
|
|
$
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 six months ended June 30,
2023 and 2022
|
|
Three months ended June
30,
|
|
Six months ended June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
$
85,022
|
|
$
79,964
|
|
$
167,262
|
|
$
156,508
|
Cost of revenue and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
70,653
|
|
69,457
|
|
139,532
|
|
136,076
|
Research and
development
|
|
5,785
|
|
5,254
|
|
13,048
|
|
11,188
|
General and
administrative
|
|
10,546
|
|
9,013
|
|
20,314
|
|
18,204
|
Sales and
marketing
|
|
4,820
|
|
3,914
|
|
8,469
|
|
7,563
|
Foreign exchange
loss
|
|
2,420
|
|
2,566
|
|
3,496
|
|
3,337
|
Depreciation and
amortization
|
|
1,021
|
|
1,085
|
|
2,058
|
|
2,268
|
|
|
95,245
|
|
91,289
|
|
186,917
|
|
178,636
|
Loss from
operations
|
|
(10,223)
|
|
(11,325)
|
|
(19,655)
|
|
(22,128)
|
|
|
|
|
|
|
|
|
|
Income from investments
accounted for by the
equity method
|
|
56
|
|
458
|
|
185
|
|
751
|
Gain on sale of
investments and assets
|
|
21
|
|
—
|
|
21
|
|
19,119
|
Interest on long-term
debt and accretion on
royalty payable
|
|
(643)
|
|
(839)
|
|
(1,490)
|
|
(1,899)
|
Loss on
extinguishment
|
|
(2,909)
|
|
—
|
|
(2,909)
|
|
—
|
Interest and other
income, net of bank charges
|
|
712
|
|
197
|
|
1,178
|
|
238
|
Loss before income
taxes
|
|
(12,986)
|
|
(11,509)
|
|
(22,670)
|
|
(3,919)
|
Income tax expense
(recovery)
|
|
221
|
|
70
|
|
1,165
|
|
(50)
|
Net loss for the
period
|
|
(13,207)
|
|
(11,579)
|
|
(23,835)
|
|
(3,869)
|
Other comprehensive
loss:
|
|
|
|
|
|
|
|
|
Cumulative translation
adjustment
|
|
(7,322)
|
|
(4,314)
|
|
(5,352)
|
|
(4,645)
|
Comprehensive
loss
|
|
$
(20,529)
|
|
$
(15,893)
|
|
$
(29,187)
|
|
$
(8,514)
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
Net loss per share -
basic and diluted
|
|
$
(0.77)
|
|
$
(0.68)
|
|
$
(1.39)
|
|
$
(0.23)
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
17,173,252
|
|
17,119,893
|
|
17,171,137
|
|
17,117,719
|
WESTPORT FUEL SYSTEMS
INC.
Condensed Consolidated Interim Statements of Cash Flows
(unaudited)
(Expressed in thousands of United
States dollars)
Three and six months ended June 30,
2023 and 2022
|
|
Three months ended June
30,
|
|
Six months ended June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
activities:
|
|
|
|
|
|
|
|
|
Net loss for the
period
|
|
$
(13,207)
|
|
$
(11,579)
|
|
$
(23,835)
|
|
$
(3,869)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,993
|
|
3,051
|
|
6,020
|
|
6,140
|
Stock-based
compensation expense
|
|
742
|
|
769
|
|
1,375
|
|
1,241
|
Unrealized foreign
exchange loss
|
|
2,420
|
|
2,566
|
|
3,496
|
|
3,337
|
Deferred income
tax
|
|
125
|
|
(96)
|
|
(23)
|
|
(531)
|
Income from
investments accounted for by the equity method
|
|
(56)
|
|
(458)
|
|
(185)
|
|
(751)
|
Interest on long-term
debt and accretion on royalty payable
|
|
643
|
|
839
|
|
1,490
|
|
1,899
|
Change in inventory
write-downs to net realizable value
|
|
992
|
|
792
|
|
1,578
|
|
549
|
Loss on extinguishment
of royalty payable
|
|
2,909
|
|
—
|
|
2,909
|
|
—
|
Change in bad debt
expense
|
|
288
|
|
(32)
|
|
372
|
|
59
|
Gain on sale of
investment
|
|
—
|
|
—
|
|
—
|
|
(19,119)
|
Gain on sale of
assets
|
|
(21)
|
|
—
|
|
(21)
|
|
—
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
469
|
|
(3,557)
|
|
(572)
|
|
2,471
|
Inventories
|
|
(537)
|
|
(3,499)
|
|
(1,128)
|
|
(11,883)
|
Prepaid
expenses
|
|
3,091
|
|
1,082
|
|
1,407
|
|
(1,188)
|
Accounts payable and
accrued liabilities
|
|
287
|
|
(3,770)
|
|
1,050
|
|
(7,280)
|
Warranty
liability
|
|
(1,179)
|
|
(2,623)
|
|
(2,561)
|
|
(4,479)
|
Net cash used in
operating activities
|
|
(41)
|
|
(16,515)
|
|
(8,628)
|
|
(33,404)
|
Investing
activities:
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment and other assets
|
|
(4,905)
|
|
(3,185)
|
|
(7,912)
|
|
(5,983)
|
Purchase of intangible
assets
|
|
—
|
|
(296)
|
|
—
|
|
(296)
|
Proceeds on sale of
assets
|
|
35
|
|
—
|
|
133
|
|
31,949
|
Net cash from investing
activities of continuing operations
|
|
(4,870)
|
|
(3,481)
|
|
(7,779)
|
|
25,670
|
Financing
activities:
|
|
|
|
|
|
|
|
|
Repayments of short
and long-term facilities
|
|
(11,140)
|
|
(13,406)
|
|
(22,876)
|
|
(36,599)
|
Drawings on operating
lines of credit and long-term facilities
|
|
4,845
|
|
10,086
|
|
13,096
|
|
25,392
|
Payment of royalty
payable
|
|
(8,687)
|
|
(5,200)
|
|
(8,687)
|
|
(5,200)
|
Net cash from (used in)
financing activities
|
|
(14,982)
|
|
(8,520)
|
|
(18,467)
|
|
(16,407)
|
Effect of foreign
exchange on cash and cash equivalents
|
|
195
|
|
(874)
|
|
955
|
|
(2,577)
|
Net decrease in cash
and cash equivalents
|
|
(19,698)
|
|
(29,390)
|
|
(33,919)
|
|
(26,718)
|
Cash and cash
equivalents, beginning of period (including restricted
cash)
|
|
71,963
|
|
127,564
|
|
86,184
|
|
124,892
|
Cash and cash
equivalents, end of period (including restricted cash)
|
|
$
52,265
|
|
$
98,174
|
|
$
52,265
|
|
$
98,174
|
Investor Relations, Westport Fuel Systems, T: +1
604-718-2046
Logo -
https://mma.prnewswire.com/media/2170819/Westport_Fuel_Systems_Inc__Westport_Fuel_Systems_Reports_Second.jpg
View original
content:https://www.prnewswire.co.uk/news-releases/westport-fuel-systems-reports-second-quarter-2023-financial-results-301896294.html