Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Westport Reports Fourth Quarter Fiscal 2012 and Year End Financial Results; Realigns Business Units; Simplifies Cummins Westport



 Westport Reports Fourth Quarter Fiscal 2012 and Year End Financial Results;
Realigns Business Units; Simplifies Cummins Westport Joint Venture Reporting;
and Announces Two New OEM Development Programs with Westport™ HPDI Technology

PR Newswire

VANCOUVER, March 7, 2013

VANCOUVER, March 7, 2013 /PRNewswire/ - Westport Innovations Inc. (TSX:WPT /
NASDAQ:WPRT), the global leader in natural gas engines, today reported
financial results for the fourth quarter and year ended December 31, 2012 and
provided an update on operations. All figures are in U.S. dollars unless
otherwise stated.

Highlights Include:

  * Westport revenue plus Cummins Westport Inc. (CWI) revenue for 2012 was
    $353.6 million exceeding previously stated guidance of $340 to $350
    million.
  * Westport revenue plus CWI revenue for the quarter ended December 31, 2012
    was $82.8 million compared with $100.6 million for the same period last
    year.
  * For the quarter ended December 31, 2012 Westport reported a net loss of
    $37.6 million or $0.68 per share compared to $14.5 million or $0.30 per
    share for the same period last year.
  * For the year ended December 31, 2012 Westport reported a net loss of $98.8
    million or $1.83 per share compared to $60.2 million or $1.26 per share
    for the same period last year.
  * Earnings for the quarter and year ended December 31, 2012 were affected by
    $5.7 million and $17.1 million, respectively, in warranty adjustments.
    Without the warranty adjustments, reported net loss would have been $35.2
    million or $0.64 per share for the quarter and $92.6 million or $1.71 per
    share for the year.
  * Segment revenue for the year ended December 31, 2012 was: $155.6 million
    for Westport (growth of 54% year over year); $198.0 for CWI (growth of 21%
    year-over-year); and $272.1 for Weichai Westport Inc. (WWI) (growth of
    148% year over year).
  * Revenue outlook for 2013 for Westport plus CWI is between $430 and $460
    million, however, CWI financial results will be accounted for under the
    equity method in the consolidated financial statements. Based on the new
    reporting presentation, Westport expects consolidated revenue to be
    between $180 and $200 million, up 16 to 29 percent for 2013. Details of
    this change in presentation are included below.
  * In the fourth quarter of 2012, CWI shipped 1,301 units, On-Road shipped
    109 Westport 15L units and 207 Westport WiNG^TM Power System units and WWI
    shipped over 9,000 units.
  * Subsequent to quarter end, Westport had entered into two new OEM
    development programs.

"There has been a transformational shift in the opportunity for natural gas
solutions for transportation," said David Demers, CEO of Westport. "Global
infrastructure partners and original equipment manufacturers (OEMs) covering
multiple platforms are signing up to develop natural gas products with
Westport. As a result of this shift, we realigned our business units to focus
on product sales and marketing, while expanding on corporate and technology
development investments."

Westport product platforms have been expanding rapidly over the last 12 months
and are expected to grow considerably in the future. Strengthening Westport's
product commercialization strategy and to accommodate the change in product,
system and service solutions, Westport has created new internal reporting
alignments and related business units. From a financial standpoint, the
segmented reporting in the notes to the financial statements will present
revenue and income by internal business units including: Westport Applied
Technologies, On-Road Systems, New Markets and Off-Road Systems and Corporate
and Technology Investments. Westport will report its joint venture results,
including the results of CWI, separately.

"We have a variety of OEM relationships and joint ventures and report on each
of them differently. Previously, our joint venture reporting has been a mix of
consolidated results with CWI integrated into our revenues, expenses assets
and liabilities as a variable interest entity and other joint ventures
accounted for under the equity method. Based on our ongoing review and
interpretation of the applicable accounting guidance we have decided to
simplify the reporting for all our joint ventures under the equity method."

The financial summary and highlights under the new presentation format is
listed below with relative comparable periods.

Fourth Quarter and Calendar Year 2012 Financial Highlights

                              Three Months Ended   %    12 Months Ended   %
                                 December 31,    Change  December 31,   Change
($ in millions, except per
share amounts)                  2012      2011           2012    2011
Consolidated revenues           $  39.9   $ 42.9  (7%)  $ 155.6 $ 100.8  54%
Consolidated gross margin          13.4     14.4  (7%)     53.1    26.8  98%
Consolidated gross margin
percentage                        33.6%    33.6%   -      34.1%   26.6%   -
Operating expenses (Research
and
development, general and           49.4     31.5  57%     148.1    92.8  60%
administrative
and sales and marketing)
Income from unconsolidated
joint ventures                      1.7      5.9 (71%)     16.2    17.1  (5%)
Consolidated adjusted EBITDA
(The reconciliation of           (31.0)    (9.3)  233%   (66.7)  (41.4)  59%
adjusted EBITDA is
described below)
Cash and short-term
investments balance               215.9     67.6  219%    215.9    67.6  219%
Net loss                         (37.6)   (14.5)  159%   (98.8)  (60.2)  64%
Net loss per share               (0.68)   (0.30)  119%   (1.83)  (1.26)  45%

  * Westport product revenue for the year ended December 31, 2012 was $128.9
    million, an increase of $45.7 million, or 54.9%, from $83.2 million for
    the year ended December 31, 2011. Westport parts revenue for the year
    ended December 31, 2012 was $3.5 million, an increase of $0.2 million, or
    4.8%, from $3.3 million for the year ended December 31, 2011. Service and
    other revenue was $23.2 million for the year ended December 31, 2012
    compared with $14.3 million for the same period last year.

  * Research and development expenses focused primarily on new products and
    new technology were $73.2 million for the year ended December 31, 2012, an
    increase of $29.1 million from $44.1 million in the same period last year.

  * General and administrative expenses were $44.8 million for the year ended
    December 31, 2012, an increase of $16.3 million from $28.5 million in the
    same period last year primarily due to the addition of Westport North
    American facilities and acquired operations, as well as costs related to
    an increase in headcount. As of December 31, 2012, Westport had 1,043
    employees globally, compared with 769 employees on December 31, 2011.

  * Sales and marketing expenses were $30.1 million for the year ended
    December 31, 2012, an increase of $9.9 million from $20.2 million in the
    same period last year primarily due to an increase in OEM development
    initiatives, North American trucking activities, and costs related to
    high-horsepower and other new business development initiatives.

  * For the year ended December 31, 2012, Westport reported a consolidated
    adjusted EBITDA loss of $66.7 million compared with a loss of $41.4
    million in the prior year period. The reconciliation of adjusted EBITDA is
    described below.

  * Westport consolidated net loss for the year ended December 31, 2012
    increased due primarily to an increase in development activities for new
    product launches in 2013 related to automotive, trucking, and off-road
    applications.

The growth in natural gas infrastructure has been significant in 2012 compared
to 2011. Clean Energy Fuels has been actively developing the America's Natural
Gas Highway with liquefied natural gas (LNG) and compressed natural gas (CNG)
fuelling stations at strategic locations along major interstate trucking
corridors. Shell and its affiliates have signed a memorandum of understanding
with TravelCenters of America LLC (TA) to sell LNG to heavy-duty road
transport customers in the U.S. through TA's existing nationwide network of
full-service fuelling centres. Other fuel providers such as Encana, FortisBC,
and Gaz Metro have built permanent LNG refueling stations for Westport 15L
fleets. New fuel providers such as Blu, have built two LNG stations in Utah.
In addition, Conoco Phillips has expressed interest in building a small-scale
natural gas liquefaction facility to manufacture up to 100,000 gallons per day
of LNG to supply truck fleets in Dallas-Fort Worth, Texas.

A combined effort by major European gas companies, vehicle manufacturers and
natural gas vehicle (NGV) associations have resulted in the Blue Corridor
initiative to expand the NGV fueling station network in Europe. This 16
million Euros project is funded by the European Commission and 28 project
partners. In addition, in January, the European Commission announced an
ambitious package of measures to ensure the build-up of alternative fuel
stations across Europe. The proposal includes that by 2020, refuelling
stations for trucks are installed every 400 km along the roads; and that by
2020 and 2025, LNG refuelling stations be installed in all 139 maritime and
inland ports, respectively, on the Trans European Core Network.

Westport Expands Technology Proliferation with Two New Global OEMs
Westport is working with two new global OEMs to develop natural gas engines
featuring Westport proprietary high-pressure direct injection (Westport HPDI)
technology. For competitive reasons, OEM names and specific engine sizes have
not been released at this time. Under the terms of the development programs,
each partner will contribute resources and pay for its own people and costs
during the initial phases.

Financial Outlook for 2013
Revenue outlook for 2013 for Westport plus CWI is between $430 and $460
million, however, CWI financial results will be accounted for under the equity
method in the consolidated financial statements. Based on the new reporting
presentation, Westport expects consolidated revenue to be between $180 and
$200 million, up 16 to 29 percent for 2013. Details of this change in
presentation are included below.

Westport Applied Technologies Business Unit
The Applied Technologies business unit is led by Elaine Wong, Executive Vice
President of Westport, who also leads market development activities in
Europe.  Westport Applied Technologies designs, manufactures and sells CNG,
liquefied petroleum gas (LPG), and LNG components and subsystems to over 20
global OEMs including Fiat, Volkswagen, the GAZ Group, Toyota, Chrysler, Tata
Motors, and General Motors and to aftermarket customers in over 60
countries. Sales from Westport's wholly owned Italian subsidiaries, OMVL S.p.A
and Emer S.p.A, and Westport's Australian operations are reported under
Applied Technologies and are made either directly to OEMs or through one of
their many distributors. The Applied Technologies business unit designs and
manufactures a range of components from pressure regulators, injectors,
electronic control units, and valves, to filters; sells monofuel and bi-fuel
conversion kits; and also offers full engine management solutions and systems
that can be launched quickly at a competitive price. The Applied Technologies
business unit provides Westport with high volume, scalable manufacturing and
assembly. The business unit has a strong customer base in Europe and is
targeting growing markets in Asia, and North and South America. 

Westport Applied          Three Months Ended     %     12 Months Ended    %
Technologies                 December 31,      Change   December 31,    Change
($ in millions)             2012       2011              2012     2011
Revenue                  $     19.8 $     19.5   2%   $     91.7  $      48%
                                                                   62.1
Gross margin                    5.3        3.7  43%         25.3   13.0  95%
Gross margin percentage       26.8%      19.0%   -         27.6%  20.9%   -
Operating expenses              3.8        4.1  (7%)        14.4   11.6  24%
Segment operating               1.4      (0.4)  450%        10.8    1.4  671%
income (loss)

  * Applied Technologies revenue for the year ended December 31, 2012 was up
    48% primarily due to full year contributions from Westport wholly owned
    Italian subsidiary, Emer.
  * Applied Technologies gross margin and gross margin percentage for the year
    ended December 31, 2012 increased primarily due to product mix.
  * Applied Technologies operating expenses for the year ended December 31,
    2012 increased by 24%, impacted by full year contributions from Westport
    wholly owned Italian subsidiary, Emer.

Westport On-Road Systems Business Unit
The On-Road Systems business unit is led by Ian Scott, Executive Vice
President of Westport, who also has oversight of Westport's market development
activities in North America. Westport On-Road Systems engineers, designs,
assembles and sells complete engine and vehicle systems for automotive, light
commercial, trucking and industrial applications. Westport's existing On-Road
Systems OEM customers and partners include Ford, General Motors, PACCAR
(Kenworth and Peterbilt), Volvo Car, AB Volvo, and Clark Material Handling.
Current products include the Westport WiNG Power System for the Ford
F-250/F-350 and F-450/F-550 bi-fuel (CNG and gasoline) Super Duty
pickup truck, Westport 15L product using Westport HPDI technology and offered
in Peterbilt and Kenworth heavy-duty trucks, Volvo Car bi-fuel systems (CNG
and gasoline) for the V70 bi-fuel wagon, and Westport™ 2.4L industrial engines
sold to Clark and Cummins Western Canada for forklift and oilfield
applications, respectively.

The On-Road Systems business unit also has additional product development
activities underway with AB Volvo for Westport HPDI-powered heavy-duty trucks,
and advanced engineering development with General Motors for light-duty
vehicles. To facilitate faster adoption of natural gas vehicles, the On-Road
Systems business unit also provides additional products and services such as
the new Westport^TM LNG Tank System and JumpStart mobile fuel services. Growth
drivers include growing existing product sales, new product introduction and
market expansion.

Westport On-Road      Three Months Ended     %       12 Months Ended      %
Systems                  December 31,      Change     December 31,      Change
($ in millions)         2012       2011              2012       2011
Revenue              $     12.4 $     13.6  (9%)  $     40.7 $     24.5  66%
Gross margin                0.4        0.8 (50%)         4.6      (0.5) 1,020%
Gross margin               3.2%       5.9%   -         11.3%     (2.0%)   -
percentage
Operating expenses         14.9       12.6  18%         47.9       35.1  36%
Segment operating        (14.5)     (11.9)  22%       (43.3)     (35.6)  22%
loss

  * On-Road Systems revenue for the year ended December 31, 2012 was up 66% as
    a result of increased sales of the Westport 15L product, the launch of the
    Westport WiNG Power System, contributions from the Westport bi-fuel system
    for Volvo V70 cars, and increased shipments of Westport 2.4L product to
    forklift and oilfield customers.
  * On-Road Systems gross margin and gross margin percentage for the year
    ended December 31, 2012 improved primarily due to product mix, the launch
    of the Westport WiNG Power System, and higher gross margin on the Westport
    15L product.
  * For its launch year, Westport sold 560 Westport WiNG Power Systems with
    gross margin and gross margin percentage of $1.2 million and 22%,
    respectively, for the year ended December 31, 2012.
  * Westport sold 1,002 bi-fuel systems for the V70 wagon with gross margin
    and gross margin percentage of $1.3 million and 17%, respectively, for the
    year ended December 31, 2012.
  * Westport sold 109 units of the Westport 15L system for the quarter ended
    December 31, 2012 compared with 170 units for the same period last year,
    and 393 units for the year ended December 31, 2012 compared with 274 units
    for the same period last year. A quarter over quarter decrease of 36% but
    an annual increase of 43% over last year.
  * Westport 15L system gross margin and gross margin percentage for the year
    ended December 31, 2012 was $1.2 million and 6.1%, respectively, compared
    with negative $1.6 million and negative 10.2%, respectively, for the year
    ended December 31, 2011.
  * Westport 15L system average selling price for the year ended December 31,
    2012 was approximately $51,000 compared with $57,000 in the same period
    last year, a reduction of 11%.
  * On-Road Systems operating expenses increased by $12.8 million or 36%
    primarily due to efforts to expand product offerings to OEMs including the
    launch of Westport WiNG Power System for the Ford F-250/F-350 and
    F-450/F-550 bi-fuel Super Duty pickup truck; and from the full year
    contributions of expenses related to Westport Sweden operations.

Westport New Markets and Off-Road Systems Business Unit
The Westport New Markets and Off-Road Systems business unit is led by Nicholas
Sonntag, Executive Vice President of Westport, who also leads market
development activities in Asia. Westport has been exploring opportunities for
using LNG fuel in large, off-road engine applications including rail, mining,
marine, and oil and gas. Westport's existing New Markets and Off-Road Systems
OEM customers and partners include Caterpillar and Weichai. According to
industry statistics and Westport analysis, the global fuel usage in these
applications is over 24 billion gallons of diesel and the opportunity for
significant fuel cost savings and reduced emissions through the use of LNG is
highly attractive. In June of 2012, Westport and Caterpillar signed an
agreement to collaborate and bring Westport's HPDI technology into these
markets. The initial focus of the New Markets and Off-Road Systems business
unit is on developing Westport HPDI-based large mine trucks and main line
locomotives, and the WWI 12L development program. The Weichai Westport HPDI
12L engine is on track to have a limited release into the Chinese market in
the later part of this year. The winter cold testing is still ongoing and
results are expected by the end of the first quarter 2013. The Chinese market
for LNG-fuelled trucks is growing rapidly and the increased performance
available through Westport HPDI technology has high appeal for both on- and
off-road applications.

Revenues are expected to come from product and component sales, the cryogenic
vessels required to store the LNG, and the control systems which deliver fuel
to the engine associated with such vehicles. There is a large market
opportunity for cryogenic systems where Westport has a proven technology
advantage in LNG storage and pump configurations for transportation, based on
years of experience in the on-road segment. Westport currently provides a
number of cryogenic tank system solutions to carry fuel for large non-Westport
HPDI LNG off-road engines currently available as interim solutions in mining,
marine and rail until the release of the higher diesel substitution solutions
based on direct injection. This is expected to provide more immediate
opportunities for revenues to Westport.

The first locomotive prototype development under the program funded by
Sustainable Development Technology Canada is on track. Westport took delivery
of the newly designed Westport HPDI fuel system hardware for the 4,400
horsepower 16-cylinder EMD 710 engine, in preparation for engine testing
scheduled for the second quarter of 2013.  For Calendar 2012, there were no
revenues for New Markets and Off-Road Systems.

Westport New Markets    Three Months Ended    %      12 Months Ended      %
and Off-                   December 31,     Change     December 31,     Change
Road Systems
($ in millions)           2012      2011              2012      2011
Revenue                         -         -   -             -         -   -
Gross margin                    -         -   -             -         -   -
Gross margin percentage         -         -   -             -         -   -
Operating expenses      $     3.6 $     1.3  177%  $     12.3 $     3.1  297%
Segment operating loss      (3.6)     (1.3)  177%      (12.3)     (3.1)  297%

Corporate and Technology Investments Business Unit

                       Three Months Ended    %       12 Months Ended      %
                          December 31,     Change     December 31,      Change
($ in millions)          2012      2011                 2012    2011
Service revenue        $     7.8 $     9.8 (20%)  $     23.2 $     14.3  62%
Operating expenses          27.0      13.5  100%        73.4       43.0  71%
Segment operating         (19.2)     (3.6)  433%      (50.2)     (28.8)  74%
income (loss)

  * Corporate and Technology Investments includes investments in new research
    and development programs and revenues and expenses related to development
    programs with OEMs, corporate oversight and general administrative
    duties.  Corporate and Technology Investments focuses on long term product
    development and future return on investments.

Westport Joint Venture Reporting
Westport has a diverse set of OEM development relationships and joint
ventures. Westport has, historically, reported its 50/50 joint venture with
Cummins (Cummins Westport Inc. or CWI) on a combined and consolidated basis in
its financial statements, reflecting 100% of its assets, liabilities, revenues
and expenses in the consolidated financial statements, and presented the 50%
interest held by its joint venture partner, Cummins, as "Net income attributed
to joint venture partners." Westport has reported its joint venture with
Weichai Power Group under the equity accounting method and reported its share
of the net income. After careful review and analysis, the Company has
concluded that reporting its CWI joint venture under the equity accounting
method is more appropriate. Important to note is that we still recognize and
report the profits from joint ventures. What this means is that Westport will
report the 50/50 joint venture with Cummins in a similar fashion to its joint
venture partner, Cummins Inc., included in "Investments accounted for by the
equity method." This segment includes income from all of our unconsolidated
joint ventures including CWI, WWI and Minda-Emer Ltd. Westport's net income
results will not be affected by this change in CWI presentation and Westport
will provide financial statements for the annual comparative periods for the
year ended December 31, 2012, the nine months ended December 31, 2011 and the
12 months ended March 31, 2011 based on the equity accounting method. The
change in CWI financial presentation does not have any effect on the CWI joint
venture agreement. Westport will report summarized financial data for
significant joint ventures CWI and WWI in the notes to our financial
statements.

Cummins Westport Inc. (CWI) Highlights

                           Three Months Ended     %    12 Months Ended    %
                              December 31,      Change   December 31,   Change
($ in millions)              2012       2011             2012    2011
Units                          1,301      2,011 (35%)     6,804   5,465  25%
Revenue                   $     42.9 $     57.7 (26%)     $       $      21%
                                                          198.0   163.9
Gross margin                    11.0       25.2 (56%)      61.4    71.5 (14%)
Gross margin percentage        25.6%      43.7%   -       31.0%   43.6%   -
Operating expenses               9.0        6.7  34%       26.1    21.8  20%
Segment operating                2.0       18.6 (89%)      35.4    49.7 (29%)
income^(1)
Net income to Westport           1.2        5.3 (77%)      13.2    15.2 (13%)

(1)      Segment operating income is based on segment net operating income,
        which is before income
        taxes and does not include depreciation and amortization, foreign
        exchange gains and losses,
        bank charges, interest and other expenses, interest and other income,
        and gain on sale of
        long-term investments.

  * CWI engine shipments for the year ended December 31, 2012 increased by 25%
    as a result of a 23% increase in North America and a 29% growth in
    international sales. International sales growth was driven by transit bus
    engine orders shipped in the first half of 2012 as Chinese bus OEMs such
    as Yutong have been successful selling CWI-powered buses in South America.
  * The decrease in CWI gross margin percentage during the year was primarily
    due to warranty adjustments, extended coverage adjustments, and net
    extended coverage claims totalling $16.3 million, and mix of sales.
    Excluding the adjustments, CWI gross margin percentage would have been
    38.8%. Through 2012, CWI's product development team engineered a number of
    product improvements that would significantly reduce these
    warranty-related adjustments and these improvements have been implemented
    on new production engines for 2013.
  * CWI's net income attributable to Westport was $13.2 million for the year
    ended December 31, 2012, including the performance bonus. This is compared
    with $15.2 million in the prior year period. A reduction in CWI's net
    income is primarily due to an increase in warranty-related adjustments.

CWI engine shipments in the fourth quarter of 2012 declined by 35% due to
record fourth quarter sales in 2011, driven by increased engine sales in North
America prior to the reduction of accelerated capital cost allowance rates in
the U.S. and large international transit bus engine orders in the same period.
However, North American sales in the conventional truck segment, which
represents CWI's largest growth opportunity, increased by 52% over the fourth
quarter of 2011.

In the second half of 2012, CWI recommenced sales of CWI transit bus engines
in Beijing after Beijing Public Transit had focused on hybrid electric buses
for the past several years. In North America, full year sales of engines for
transit buses increased by 58% over 2011 as transit properties have increased
purchases of natural gas buses to achieve economic benefits. Sales of engines
for conventional trucks grew 42% in 2012 compared to 2011.

Development of the new ISX12 G engine has continued and the engine will
commence limited production in the second quarter and full production in the
third quarter of 2013. The introduction of the Westport LNG tank system,
announced in November 2012, will provide trucking customers with a cost
effective LNG fuel system that is specifically designed to work with the ISX12
G.

In addition, CWI commenced development of the ISB6.7 G in October 2012. This
engine is based on the Cummins ISB6.7 diesel engine and will also use CWI's
SEGR technology. It will be targeted at medium-duty truck, package van and
school bus applications. Production of this engine is expected to begin in
2015.

Weichai Westport Inc. (WWI) Highlights

                          Three Months Ended    %     12 Months Ended     %
                             December 31,     Change    December 31,    Change
($ in millions)             2012      2011              2012      2011
Units                        9,141      2,754  232%       22,025  8,451  161%
Revenue                      $     $     32.5  230%  $     272.1  $      148%
                             107.4                                109.8
Gross margin                  17.5        5.8  202%         37.8   19.3  96%
Gross margin percentage        16%        18%   -            14%    18%   -
Operating expenses            15.9        4.3  270%         28.1   13.1  115%
Segment Operating              1.6        1.6   -            9.8    6.1  61%
income^(1)
Westport's 35% interest        0.5        0.6  (2%)          2.9    1.8  61%

(1)      Segment operating income is based on segment net operating income,
         which is before income
         taxes and does not include depreciation and amortization, foreign
         exchange gains and losses,
         bank charges, interest and other expenses, interest and other income,
         and gain on sale of
         long-term investments.

  * WWI has delivered over 100% year-over-year growth in the past three years
    as market demand for its natural gas engines continues to increase.
  * Gross margins for Weichai Westport remain discounted as the company
    penetrates new markets and builds market share in China.

Recent government policies supporting the use of LNG and CNG for automotive
and trucking applications in combination with China's large shale gas reserves
have created a significant interest in natural gas vehicles in many parts of
China. According to CATARC-China Automotive Technology and Research Center,
the natural gas market accelerated in 2012 following China's Natural Gas
Utilization Policy. Natural gas truck sales volume in China reached over
12,000, a 60% increase compared to 2011; and natural gas buses sales volume
reached 33,527 units, a 78% increase compared to 2011.

In 2012, WWI sold 22,025 spark ignited natural gas engines, which surpassed
its target of 18,000 units. Of the five engine lines sold, 35% were attributed
to the WP12 natural gas engines, followed by the WP10 and WP7 engines, which
accounted for 31% and 18% of the volume, respectively. The WP12 and WP10
natural gas engines are used to power heavy-duty trucks and buses, while the
WP5 and WP7 are used to power smaller buses in China. WWI saw the most growth
in its WP5 engine, a new engine launched in the third quarter of 2011, where
its sales grew as much as 10 times compared to 2011.

This move to natural gas fuelled vehicles is further supported by the
commitment of large fuel providers in China, such as PetroChina, CNOOC and
Sinopec, to invest in the build out of LNG and CNG fuelling infrastructure
along numerous trucking corridors in China. According to the Automotive
Industry Development Institute of China, a total of over 800 CNG stations and
over 200 LNG stations were built in 2012.

Non-GAAP Financial Measure; Adjusted EBITDA Results

Adjusted EBITDA is used by management to review operational progress of its
business units and investment programs over successive periods and as a
long-term indicator of operational success since it ties closely to the unit's
ability to generate sustained cash flows. Westport defines Adjusted EBITDA as
net loss attributed to the Company before (a) income taxes, (b) depreciation
and amortization, (c) interest expense, net, (d) amortization of stock-based
compensation, (e) unrealized foreign exchange loss (gain), and (f) gains and
other. The term Adjusted EBITDA is not defined under U.S. generally accepted
accounting principles, or 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
Westport'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 Westport's actual cash
expenditures. Other companies may calculate similar measures differently than
Westport, limiting their usefulness as comparative tools. Westport compensates
for these limitations by relying primarily on its GAAP results and using
Adjusted EBITDA only supplementally.

                             Three Months Ended           12 Months Ended
                                December 31,               December 31,
                             2012          2011         2012           2011
Net loss attributed to the $ (37.6)       $ (14.5)     $ (98.8)       $ (60.2)
Company
Provision for income taxes      0.1          (0.9)          1.7          (1.2)
Depreciation and                3.3            2.6         11.4            7.2
amortization
Interest expense, net           1.7            1.7          5.7            4.0
                                                                              
                                                                       
                                                                       
EBITDA                       (32.5)         (11.1)       (80.0)         (50.2)
                                                                              
Amortization of                 3.3            1.9         12.5            7.6
stock-based compensation
Unrealized foreign            (1.7)          (0.1)          1.2            1.2
exchange loss (gain)
Less: Gains (loss) and        (0.1)              -        (0.4)              -
other
                                                                              
Adjusted EBITDA            $ (31.0)       $  (9.3)     $ (66.7)       $ (41.4)
                                                                             

Outlook
This press release includes financial outlook information for Westport and
such information is being provided for the purpose of updating prior revenue
disclosure and may not be appropriate for, and should not be relied upon for,
other purposes.

Financial Statements & Management's Discussion and Analysis
To view Westport's full financials for the fiscal year ended December 31,
2012, please point your browser to the following link:
http://www.westport.com/investors/financial

Live Conference Call & Webcast
Westport has scheduled a conference call for today, Thursday, March 7, 2013 at
2:00 pm Pacific Time (5:00 pm Eastern Time) to discuss these results. The
public is invited to listen to the conference call in real time by telephone
or webcast. To access the conference call by telephone, please dial:
1-800-319-4610 (Canada & USA toll-free) or 604-638-5340. The live webcast of
the conference call can be accessed through the Westport website at
www.westport.com/investors.

Replay Conference Call & Webcast
To access the conference call replay, please dial 1-800-319-6413 (Canada & USA
toll-free) or 604-638-9010 using the pass code 1847. The replay will be
available until March 14, 2013. Shortly after the conference call, the webcast
will be archived on the Company's website and replay will be available in
streaming audio.

About Westport Innovations Inc.
Westport Innovations Inc. is a leading global supplier of proprietary
solutions that allow engines to operate on clean-burning fuels such as
compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen, and
renewable natural gas (RNG) fuels such as landfill gas and help reduce
greenhouse gas emissions (GHG). Westport technology offers advanced LNG
fueling systems with direct injection natural gas engine technology for
heavy-duty vehicles such as highway trucks and off-road applications such as
mining and rail.  Westport's joint venture with Cummins Inc., Cummins Westport
Inc. designs, engineers and markets spark-ignited natural gas engines for
North American transportation applications such as trucks and buses. Westport
is also one of the global leaders for natural gas and liquefied petroleum gas
(LPG) fuel systems technology, design, and components in passenger cars,
light-duty trucks and industrial applications such as forklifts. To learn more
about our business, visit our website or subscribe to our RSS feed at
www.westport.com, or follow us on Twitter @WestportDotCom.

This press release contains forward-looking statements, including statements
regarding the anticipated consolidated revenue and revenue growth of Westport
for calendar year 2013, timing for launch and completion of milestones related
to the engine products referenced herein, including the CWI ISX12 G and ISB6.7
G, Weichai Westport HPDI engine, EMD locomotive engine, LNG fuelled mine
trucks and locomotives, timing for development of refueling infrastructure,
timing and expectations for future cash flows, the demand for our products,
the future success of our business and technology strategies, investment in
new product and technology development and otherwise, cash and capital
requirements, 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 for
transportation and terms of future agreements as well as Westport 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 and uncertainties include risks and assumptions
related to our revenue growth, operating results, industry and products, the
general economy, conditions of and access to the capital and debt markets,
governmental policies and regulation, technology innovations, fluctuations in
foreign exchange rates,  the availability and price of natural gas,  global
government stimulus packages, 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 sufficiency of bio methane for use in our vehicles, the
development of competing technologies, our ability to adequately develop and
deploy our technology 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.

 

 

 

 

 

 

SOURCE Westport Innovations Inc.

Contact:

Inquiries:
Darren Seed
Vice President, Investor Relations & Communications
Westport Innovations Inc.
Phone: 604-718-2046
Email: invest@westport.com

Media Inquiries:
Nicole Adams
Director, Communications
Westport Innovations Inc.
Phone: 604-718-2011
Email: media@westport.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement