WESTPORT FUEL SYSTEMS INC (NASDAQ:WPRT) Q4 2019 Earnings Conference Call - Final Transcript

Mar 17, 2020 • 05:00 pm ET


WESTPORT FUEL SYSTEMS INC (NASDAQ:WPRT) Q4 2019 Earnings Conference Call - Final Transcript


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Welcome to the Westport Fuel Systems' Fourth Quarter and Fiscal Year 2019 Financial Results Conference Call. [Operator Instructions]

I would now like to turn the conference over to Shawn Severson with alphaDIRECT Advisors, Westport's Investor Relations representative. Please go ahead, Mr. Severson.

Shawn Severson

Thank you, and good afternoon everyone. Welcome to Westport Fuel Systems' fourth quarter conference call, which is being held to coincide with the press release containing Westport Fuel Systems' financial results that was distributed this afternoon. On today's call speaking on behalf of Westport Fuel Systems is Chief Executive Officer, David Johnson; and Chief Financial Officer, Richard Orazietti. Attendance of this call is open to the public and to media but questions will be restricted to the investment community.

You are reminded that certain statements made in this conference call and our responses to various questions may constitute forward-looking statements within the meaning of the US and applicable Canadian securities laws and as such forward-looking statements are based on our current expectations and involve certain risks and uncertainties. Actual results may differ materially from those projected in the forward-looking statements. So, you are cautioned not to place undue reliance on those statements.

Information contained in this conference call is subject to and qualified in its entirety by information contained in the company's public filings.

I'll now turn the call over to David. David?

David M. Johnson

Good afternoon. Thanks for joining our conference call to review Westport Fuel Systems' Q4 and year-end 2019 results. 2019 was a great year, pivotal year for Westport Fuel Systems. Each of our businesses delivered improved operating results on the top line and on the bottom line. I'm proud that in 2019 we made another big step in our transformation into a profitable and sustainable company, building on our prior year improvements with another year of double-digit percentage gains.

Westport Fuel Systems' portfolio of clean technology solutions distributed to markets around the world and supporting our light-duty and the heavy-duty OEM customers and partners is reducing the environmental impact of transportation, and our products are doing so in a cost effective way. This is critical as it enables our technologies to reach the scale required in our industry and for our environment.

There have been a number of important market development since our Q3 call and I'll walk through these in a moment. But first, I want to share the headline financial results shown on the next slide. I'm pleased and proud of our latest achievements. Continued sales growth of HPDI, combined with the strength of our independent aftermarket and light-duty OEM businesses resulted in an annual revenue of $305 million, up 13% over 2018 and up 33% in 2017.

Net income from continuing operations increased by $41 million year-over-year. That is in 2018, we lost $40.8 million, while in 2019, we moved to the plus side earning $0.2 million. It's a big accomplishment and a very good step. We recorded our seventh consecutive quarter of positive adjusted EBITDA. And we delivered our first full year of