Westport Reports Strong Q1 Results (Canada)

May 10, 2012

Westport Innovations, the global leader in natural gas engines, reported financial results for the first quarter ended March 31, 2012.

“The numbers are compelling,” said David Demers, CEO of Westport Innovations. “Compared to the same period last year, Westport Light-Duty revenue was up 258%, Cummins Westport revenue was up 110%, Westport Heavy-Duty revenue was up 65%, and Weichai Westport revenue was up 49%. Customer interest is expanding rapidly, and we see an array of potential investment opportunities with our global partners. Adding to our financial growth, we expect to announce new partnerships in each of our business units this year.”

“Strong growth across all our business units and in all geographic regions continues to demonstrate the rapid emergence of natural gas as a significant fuel for transportation applications,” added Demers. “We are at the start of a long wave of change in both energy and transportation and we believe Westport is well positioned to establish a leading position in this new industry.”

“Over the next three years, we will be launching new products in existing and new markets. The new ISX12 G engine from CWI is a significant step into a major new market opportunity, targeting regional haul, vocational and refuse truck applications. The new Weichai Westport™ WP12 High Pressure Direct Injection (HPDI) Landking 12-litre engine marks a historic shift in technology and engine development in China. The new Westport WiNG™ Power System is a fully-integrated, CNG bi-fuel system for the Ford F-250 and F-350 pick-up trucks, with an industry-leading starting price point. We are advancing steadily to Volvo’s launch of an HPDI heavy-duty natural gas engine for the European market and recently started working with a global engine OEM to develop an HPDI heavy-duty natural gas engine for the North American market. Including our share of the CWI engine program, Westport expects to invest more than $80 million this year in new product and technology development.”

First Quarter Financial and Business Highlights

Reported consolidated revenues of $88.6 million for the quarter ended March 31, 2012 compared to $38.1 million for the same period last year, an increase of 132.5%.
Reported net loss attributed to the Company of $22.6 million ($0.44 loss per share) for the quarter ended March 31, 2012 compared to a net loss of $14.4 million ($0.31 loss per share) for the same period last year.
Reported cash and short term investments balance as at March 31, 2012 of $333.3 million, compared to $85.7 million at December 31, 2011.
Segmented results: Westport Light-Duty (LD) revenue up 257.7% to $26.7 million, Cummins Westport (CWI) revenue up 110.2% to $52.7 million with 1,943 engines shipped, Westport Heavy-Duty (HD) revenue up 64.9% to $9.3 million with 151 systems shipped. Although not consolidated, Weichai Westport revenue was up 49.4% with 2,728 engines shipped in the quarter.
Unveiled China’s first engine with Westport™ HPDI Technology during China National People’s Congress. Production is scheduled to begin in 2013.
Westport LD acquired certain assets of Advanced Engine Components (AEC) Limited of Perth, Australia including advanced engine controls technology and expertise.
Westport WiNG Power Systems for Ford F-250 and 350 series trucks were exhibited in the Ford display at the NTEA Show in Indianapolis with leading performance and value. Shipments will commence in the second quarter this year.
Completed equity financing for over $266 million in net proceeds.
Signed an agreement with a leading engine OEM to develop HPDI heavy-duty natural gas truck engine for North American market.
CWI announced a new heavy-duty natural gas engine, the ISX12 G, incorporating CWI’s proprietary stoichiometric cooled exhaust gas recirculation (SEGR) spark ignition system that has been the basis of the success of CWI’s ISL G engine for the past five years. The ISX12 G will launch in early 2013 and is targeted at regional trucking, vocational and refuse markets in North America. Launch partners for the ISX12 G include Freightliner, Peterbilt, Kenworth, Volvo and Autocar.
Signed heavy-duty supply agreement with Cummins for production of the Westport HD 15-litre HPDI engine in Cummins’ Jamestown Engine Plant.
Announced amended and updated Cummins Westport joint venture agreement with revised geographic scope, transfer of CWI technology to parents for use in other products, and revised economic terms with incentives for Westport to achieve faster than budgeted growth. Jim Arthurs was appointed President of CWI and a new Board was appointed. Ed Pence, Cummins Vice President and General Manager, Cummins Heavy Duty Engine Business is the new Chairman of CWI. Clark Quintin, President of Westport HD, will be Lead Director of CWI.
Navistar announced that it will launch natural gas trucks later in 2012 incorporating the Cummins Westport ISL G engine.