Hello everyone and welcome back!
First off I would to say I just bought some Westport Innovations (WPRT) in after hours today. I've been meaning
to get back in and now I have some skin in the game. Very exciting!
Today I'm going to list the key points and the reasons why I believe Westport will shine in 2012. Here are the
numbers of their recent earnings call.
Recent quarter results
-Record Revenue on the quarter
$100.6 vs. $39.5 for the same period last year, an increase of 154.7%
-the key revenue drivers were Westport LD,
CWI, and Westport HD
-Westport LD $22.6 million vs $7.8 million prior year
period. An increase of 189.74% in revenues
-CWI $57.7
million vs. $31.1 million prior year period. An increase of 85.53% in revenues
-Westport HD $10.5 million vs. $0 prior year period
Full year results
-Consolidated revenues were $264.7 million for the twelve
months ended December 31, 2011, an increase of 83.3% over the $144.4 million
reported for calendar 2010.
-CWI revenue was
$163.9 million, compared to $117.1 million in 2010; an increase of 40.0%.
-Westport LD revenue was $66.6 million for the twelve
months ended December 31, 2011, up from $16.3 million in calendar 2010, an
increase of 308.6%. Of this increase, $34.4 million came from the acquisition
of Emer and AFV in 2011.
-Westport HD revenue was $19.9 million for the twelve
months ended December 31, 2011, up from $7.0 million in calendar 2010, an
increase of 185.4%.
-Weichai Westport Inc. (WWI) revenue reached $109.8
million for the twelve months ended December 31, 2011, up from $44.8 million in
calendar 2010; an increase of 145.1%. Note that WWI is not consolidated and is
accounted for using the equity method.
All numbers were pulled from the earnings call transcript on westport.com
http://www.westport.com/investors/financial
Key points from conference call
-2012
Revenue guidance between $400-$425 million
-Launch of Ford's F250, F350 in the 2nd qtr. should add about $5 million in revenues
for 2012
-trucking infrastructure is building faster in China than
in North America, which means a large addressable market to be had in China
-Increased international growth
-interest developing in Europe due to high diesel prices
-engine in development to run engine for rail in 2013 and
to be up and running in 2014
The information I have provided above is more than enough
to tell you WPRT will thrive into 2012.
The growth of each of their product lines is staggering. This environment is
perfect for WPRT to capitalize on high
oil prices. The management team did a phenomenal job in 2011 and have set this
company up for success. Companies can no longer ignore the fact that natural
gas is drastically cheaper than diesel. It makes complete sense for
transportation to utilize
a cheaper fuel. Westport already has
quite a few big players on their side and it appears the automotive industry is
taking notice.
When I first started investing in Westport I thought the United States
government passing an energy bill would help WPRT.
It's been over a year now and look where we are. Westport doesn't need the U.S. government to
succeed and they proved that in 2011. They have so much going on I can't even
keep track of all the companies that have shown interest in Westport's technology. The numbers don't lie.
Accelerated revenue growth is all I need for this gem of a company. The cash
they are using is fueling the growth of the business.
Although, WPRT
reported a net loss of $60.2 million or a $1.26 a share on the year, you have
to take into account the growth factor. They projected 2012 revenues to be
roughly 50-60% higher vs. 2011. That's a whole lot of growth! Many companies
start off losing money year after year, but as long as rapid growth is part of
the formula and progress towards profitability continues there is no need to
worry. What Westport is selling is a
need. A need to cut fuel costs and reduce the reliability of foreign oil. It's
a product that benefits both parties, but the big beneficiary will be WPRT after all the smoke clears!
What I'm trying to say is buy Westport and you should have some extra cash
in your pockets for 2012. Any purchase between $37-$42 a share would be a solid
price to get in on WPRT.
Have a great night!
P.S. I loaded up even more on WFT last week.
Clay-
Full Disclosure
Current Holdings:
Cosi Inc. (COSI)
Caterpillar (CAT)
Procter & Gamble (PG)
Westport Innovations (WPRT)
Weatherford International (WFT)
Kinder Morgan Energy Partners (KMP)
