EX-99.1 2 ex991.htm NEWS RELEASE DATED NOVEMBER 12, 2009 ex991.htm
Exhibit 99.1
News release via Canada NewsWire, Vancouver 604-669-7764

	    Attention Business/Financial Editors:
	    Westport Reports Second Quarter Financial Results

	    VANCOUVER, Nov. 12 /CNW/ - Westport Innovations Inc.
(TSX:WPT/NASDAQ:WPRT), a global leader in alternative fuel, low-emissions
transportation technologies, today reported financial results for the second
quarter of fiscal 2010 ended September 30, 2009, and provided an update on
operations.

	    Second Quarter Financial and Business Highlights

	    -   Reported consolidated revenues of $31.7 million for the quarter ended
	    September 30 compared to $39.0 million for the same period last year,
	    a decrease of 19%. On a U.S. dollar basis, revenue decreased by 22%
	    as the Canadian dollar strengthened relative to the U.S. dollar
	    quarter over quarter.

	    -   Reported consolidated revenues of $56.6 million and $64.5 million for
	    the six months ended September 30, 2009 and 2008, respectively, a
	    decrease of 12%.

	    -   Reported net loss of $9.0 million ($0.28 loss per share) for the
	    period ending September 30, 2009 compared to a net income of $0.7
	    million ($0.02 earnings per share) for the same period last year. Net
	    of the gains on the sale of investments, the net loss for the current
	    period is $9.2 million compared with $9.1 million in the prior year.

	    -   Reported a cash and short term investments balance as at September
	    30, 2009 of $57.7 million compared to $82.6 million as at March 31,
	    2009.

	    -   The U.S. Department of Energy (DOE) announced the Recovery Act, to
	    provide for up to 2,800 natural gas vehicles.

	    -   Cummins Westport Inc. (CWI) reported that Peterbilt is offering CWI
	    engines in natural gas vocational and aerodynamic vehicles.

	    "With the sequential improvement in quarterly performance, and the
general improvement in the global economy, we believe we can meet our current
objectives as well as see a return to more robust growth in 2010," said David
Demers, CEO of Westport Innovations Inc. "Conditions remain very difficult in
the commercial vehicle sector world wide, with the additional factor of a
major emissions technology change at the end of this year in the US.
Nevertheless, as recent product announcements by Peterbilt, Mack and
Freightliner demonstrate, market interest is growing quickly for natural gas
fuelled vehicles such as trucks and buses, as fleets look to reduce fuel price
volatility and absolute fuel costs."
	    "Fundamental support for a shift from oil to natural gas in the
transportation market is emerging from natural gas producers, as their
progressive stance on infrastructure development, and in concert with U.S.
legislative efforts focused on tax incentives for natural gas vehicles to
reduce dependency on oil. These will both have significant impact on the
barriers to faster adoption of our solutions. Westport's technology leadership
and the economic and environmental benefits from natural gas in the
transportation sector position us to return to strong growth as the economic
recovery spreads around the world."

	    Second Quarter Fiscal Year 2010 Financial Results in Detail

	    Westport's consolidated revenue for the three months ended September 30,
2009 was $31.7 million, a decrease of 19% from $39.0 million in the same
quarter in the prior year. CWI revenue decreased by $3.2 million to $30.1
million on 1,039 units shipped in the second quarter of fiscal 2010 from $33.3
million on 1,391 units shipped in the second quarter of fiscal 2009. Non-CWI
revenues were $1.6 million on 14 LNG systems shipped compared to $5.7 million
in the prior year when 69 LNG systems were shipped.
	    For the six months ended September 30, 2009 and 2008, consolidated
revenue was $56.6 million and $64.5 million, respectively, a decrease of 12%.
CWI revenue decreased by 9% from $58.4 million to $53.4 million with unit
shipments of 1,647 fiscal year to date, declining from 2,468 for the same
period last year. The decline in units was offset by an increase in parts
revenue of $3.6 million or 41% relative to the six months ended September 30,
2008. Non-CWI revenues were $3.2 million during the current year to date
compared with $6.1 million in the six months ended September 30, 2008, a
decrease of 48%. The number of LNG shipments declined from 70 for the six
months ended September 30, 2008 to 28 in the current fiscal year. The decrease
in unit sales was offset by a foreign exchange impact. On a US dollar basis,
total revenue declined by 19%.
	    Westport's net loss for the three months ended September 30, 2009, was
$9.0 million ($0.28 loss per share) compared to net income of $0.7 million
($0.02 earnings per share) for the three months ended September 30, 2008. The
decrease is primarily due to investment gains, and to lower CWI sales volumes,
lower gross margin, and increased non-CWI operating expenses. During the
quarter, we recognized $0.2 million in investment gains, net of taxes,
compared with $9.8 million in the three month period ended September 30, 2008
due primarily to the sale of 790,800 shares of Clean Energy Fuels Corp.
(CEFC). Net loss for the current period without the inclusion of realized
gains on the sale of investments was $9.2 million compared with $9.1 million
in the same period last year.
	    For the six months ended September 30, 2009 and 2008, net loss was $18.2
million, or $0.56 per share, and $2.8 million, or $0.10 per share,
respectively. During the fiscal year to date we recognized $0.2 million in net
investment gains compared to $12.7 million in the comparative fiscal period.
Net loss for the fiscal year to date without the inclusion on realized gains
on the sale of investments would have increased $2.9 million from $15.5
million in the prior fiscal year to $18.4 million in the current fiscal
period.
	    Westport's 50% share of CWI income after taxes for those periods
decreased $1.3 million due primarily to lower sales volume and a decline in
gross margin due to sales mix and higher warranty charges. Non-CWI expenses
increased by $1.3 million in the current fiscal year to date compared with the
previous fiscal period due to higher customer support costs, an increase in
stock based compensation of which $0.5 million was a one-time event, a
reduction in program funding and higher costs relating to professional,
consulting and other public company related expenditures. The remaining
difference related to higher interest and accretion expense relating to
Westport's long-term debt offset by foreign exchange.
	    Westport's cash and short-term investments balance as at September 30,
2009 was $57.7 million compared to $82.6 million as at March 31, 2009. For the
six months ended September 30, 2009, cash used in operations was $16.7 million
with $14.0 million used for operating purposes and $2.7 million used for
working capital purposes.

	    Cummins Westport Inc. (CWI) Highlights

	    CWI revenue decreased by $3.2 million to $30.1 million on 1,039 units
shipped in the second quarter of fiscal 2010 from $33.3 million on 1,391 units
shipped in the second quarter of fiscal 2009. The decline was due to fewer
shipments to North America offset by an increase in shipments to Asia, and an
increase in parts revenue.
	    In August, and on the trend of international manufacturers offering
alternative fuel vehicles, Peterbilt announced immediate availability of its
vocational and aerodynamic vehicles powered by compressed and liquefied
natural gas (CNG/LNG). Peterbilt Model 365 and Model 384 will be offered with
the Cummins Westport ISL G and built at Peterbilt's truck manufacturing
facility in Texas.

	    Westport HD Highlights

	    Westport shipped 14 HD systems in the second quarter of the current
fiscal year, which compares to 69 HD systems in the three months ended
September 30, 2008. Looking ahead, the Southern California Air Quality
Management District (AQMD) procurement for LNG trucks for the Ports has made
significant strides in recent weeks. Originally, the procurement was based on
the September 11th approval of 448 trucks which quickly moved up to 483 trucks
through various board meetings and resolutions. As it stands now, there are
over 500 trucks approved for funding under the program and in an effort to
accommodate the time for production, the deadline has been extended to March
31st from December 31st. Additionally, it is expected that potential
purchasers would need to meet certain credit criteria which may have an effect
on the total number of trucks purchased. In the meantime, Westport is
continuing to develop the HD products to meet 2010 standards and expect to
have availability early next year.

	    Results Conference Call

	    To coincide with the disclosure, Westport has scheduled a conference call
for Thursday, November 12, 2009 at 2:00 pm Pacific Time (5:00 pm Eastern
Time). The public is invited to listen to the conference call in real time or
by replay. To access the conference call by telephone, please dial:
416-340-2216 or 866-226-1792 (North America Toll-Free). To access the
conference call replay after the call, please dial 416-695-5800 or
800-408-3053 using the passcode No.5548115. The replay will be available until
November 26, 2009, however, the webcast will be archived on Westport's
website. The webcast of the conference call can be accessed on the Westport
website at www.westport.com by selecting "Investors" and then "Investor
Overview" from the main menu. Replays will be available in streaming audio on
the same website after the conclusion of the conference call.
	    To view Westport's full Second Quarter FY2010 financials and Management's
Discussion and Analysis, please point your browser to the following link:
http://www.westport.com/investor/financial.php.

	    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
biofuels such as landfill gas. Cummins Westport Inc., Westport's joint venture
with Cummins Inc., manufactures and sells the world's broadest range of
low-emissions alternative fuel engines for commercial transportation
applications such as trucks and buses. BTIC Westport Inc., Westport's joint
venture with Beijing Tianhai Industry Co. Ltd., manufactures and sells LNG
fuel tanks for vehicles. Westport's joint venture with OMVL SpA, Juniper
Engines Inc., offers light-duty liquefied petroleum gas (LPG) engine solutions
for industrial applications such as forklifts. www.westport.com

	    This document contains forward-looking statements, including statements
regarding the demand for Westport's products, the future success of Westport's
business, profitability, and technology strategies, investment, cash and
capital requirements, intentions of partners and potential customers, the
performance of Westport's products, future market opportunities, Westport's
estimates and assumptions used in Westport's accounting policies, accruals,
and financial condition. These statements are neither promises nor guarantees,
but involve known and unknown risks and uncertainties that may cause
Westport's 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 include risks related to Westport's revenue growth,
operating results, industry and products, the general economy, conditions of
the capital and debt markets, governmental policies and regulation, technology
innovations, as well as other risk factors that may affect Westport's actual
results, performance or achievements or financial position discussed in
Westport's 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 Westport's 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 the
forward looking statements except as required by National Instrument 51-102.

	    %SEDAR: 00004375E          %CIK: 0001370416

	    /For further information: Darren Seed, Director, Investor Relations,
Westport Innovations Inc., Phone: (604) 718-2046, Email: invest(at)westport.com/
	    (WPT. WPRT)

CO:  Westport Innovations Inc.

CNW 16:05e 12-NOV-09