Westport Fuel Systems(WPRT)2024-11-12 22:29Revenue Performance - Revenue for Q3 2024 was $66,251,000, a decrease of 14.3% compared to $77,391,000 in Q3 2023[4] - For the three months ended September 30, 2024, total revenue was $66,251, a decrease from $77,391 in the same period of 2023, representing a decline of approximately 14.6%[65] - For the nine months ended September 30, 2024, total consolidated revenue was $227,211, down from $244,653 in 2023, reflecting a decrease of approximately 7.1%[66] - The Light-Duty segment generated revenue of $61,466 for the three months ended September 30, 2024, compared to $60,181 in 2023, indicating a growth of 2.1%[65] - The Light-Duty segment's revenue for the nine months ended September 30, 2024, was $194,171, an increase from $200,329 in 2023, showing a decline of 3.1%[66] - Cespira, a joint venture with Volvo, reported revenue of $16,209 for the three months ended September 30, 2024, with an operating loss of $5,257[65] Net Loss and Improvements - Net loss for Q3 2024 was $3,868,000, compared to a net loss of $11,937,000 in Q3 2023, representing a 67.7% improvement[4] - For the three months ended September 30, 2024, Westport Fuel Systems reported a net loss of $3,868,000, compared to a net loss of $11,937,000 for the same period in 2023, representing a 68.7% improvement[7] - The company reported a comprehensive loss of $2,500,000 for Q3 2024, compared to a comprehensive loss of $15,364,000 in Q3 2023, indicating a significant reduction in losses[4] - The company incurred an operating loss of $16,689,000 during the nine months ended September 30, 2024, compared to a loss of $35,772,000 in the same period of 2023, indicating a 53.3% reduction in losses[7] - The total consolidated operating loss for the three months ended September 30, 2024, was $1,042, a significant improvement from the operating loss of $12,131 in the same period of 2023[65] Assets and Liabilities - Total assets decreased to $311,634,000 as of September 30, 2024, down from $355,748,000 at the end of 2023, a decline of 12.4%[2] - Current liabilities decreased to $110,721,000 as of September 30, 2024, down from $134,837,000 at the end of 2023, a reduction of 17.9%[2] - Total shareholders' equity decreased to $149,292,000 as of September 30, 2024, down from $160,448,000 at the end of 2023, a decrease of 6.9%[2] - Cash and cash equivalents decreased to $33,257,000 as of September 30, 2024, down from $54,853,000 at the end of 2023, a decline of 39.4%[2] - Cash and cash equivalents at the end of the period were $33,257,000, down from $43,967,000 at the end of September 2023, reflecting a decrease of 24.4%[7] - As of September 30, 2024, the company's total debt was $38,743,000, with $15,260,000 classified as current liabilities[15] - The company’s long-term investments totaled $41,322 thousand as of September 30, 2024, compared to $4,792 thousand at December 31, 2023[32] - The company fully repaid its revolving financing facility of $20,000 as of September 30, 2024, which was previously secured by certain receivables[40] Cash Flow and Operating Activities - The company generated net cash used in operating activities of $9,933,000 for the three months ended September 30, 2024, compared to $11,937,000 for the same period in 2023[7] - The company is facing inflationary pressures on production input costs, which are impacting margins, particularly due to increased costs for semiconductors and raw materials[16] - Management is focusing on initiatives to reduce working capital and improve profitability, with expectations of meaningful collections from accounts receivable and a reduction in inventory levels[17] Share Issuance and Stock-Based Compensation - The company issued 90,362 common shares on the exercise of share units during the nine months ended September 30, 2024[5] - The company issued 90,362 common shares during the nine months ended September 30, 2024, compared to 44,656 shares during the same period in 2023, indicating a significant increase in share issuance[50] - The company recognized a stock-based compensation expense of $1,352 for the nine months ended September 30, 2024, compared to $1,238 for the same period in 2023, showing an increase of approximately 9.2%[52] Inventory and Receivables - The total inventory as of September 30, 2024, was $66,322 thousand, slightly down from $67,530 thousand at December 31, 2023, reflecting a decrease of about 1.8%[31] - The company reported customer trade receivables of $51,306 thousand as of September 30, 2024, down from $83,175 thousand at December 31, 2023, indicating a decrease of approximately 38.4%[30] - Westport Fuel Systems reported a significant increase in accounts receivable, totaling $13,977,000 for the three months ended September 30, 2024, compared to $2,877,000 in the same period of 2023, marking a 385.5% increase[7] Debt and Liabilities - The company’s long-term debt decreased to $38,743, down from $45,065 as of December 31, 2023, representing a reduction of approximately 14.5%[41] - The current portion of long-term debt increased to $15,260 as of September 30, 2024, compared to $14,108 at the end of 2023, indicating a rise of approximately 8.2%[41] - The warranty liability decreased to $5,395 as of September 30, 2024, from $8,506 at the end of 2023, reflecting a reduction of approximately 36.5%[49] Joint Ventures and Investments - The company recognized a loss from investment accounted for by the equity method of $3,001 thousand and $4,104 thousand for the three and nine months ended September 30, 2024, respectively, related to its investment in Cespira[32] - The company contributed $32,728 thousand of property, plant, and equipment as part of the formation of the joint venture Cespira[34] - Cash proceeds from the joint venture agreement with Volvo Group amounted to $27,328 thousand, with a total gain on deconsolidation of $13,266 thousand[29] Accounting and Financial Standards - The company expects the recently issued accounting standards to impact disclosures but not its operations, cash flows, or financial position[24] - The average remaining lease term for the company's operating leases is approximately seven years, with a present value of operating lease liabilities at $20,437 thousand[38] Interest Rate Swaps - The total notional value of interest rate swaps as of September 30, 2024, was $25,711, with $15,868 related to UniCredit and $9,843 related to Deutsche Bank[47] - The fair value of interest rate swaps decreased to $204 as of September 30, 2024, from $822 at the end of 2023[47]