Latest news with #Cespira
Yahoo
4 days ago
- Business
- Yahoo
Westport Fuel Systems Inc (WPRT) Q2 2025 Earnings Call Highlights: Strategic Divestitures and ...
Revenue: $12.5 million for the quarter, compared to $14.1 million in the same quarter of the prior year. Consolidated Revenue: $88.8 million, including discontinued operations, compared to $83.4 million in the same period of 2024. Cespira Revenue: $12 million during the quarter. Adjusted EBITDA: Negative $1 million, improved from negative $2 million in the same quarter last year. Operating Expenses: $15.5 million, down from $21.6 million in Q2 2024. High Pressure Controls and Systems Revenue: $2.9 million, down from $3.6 million in Q2 2024. Gross Margin: 3% of revenue, down from 31% in Q2 2024. Heavy Duty OEM Revenue: $9.6 million, a decrease of $900,000 from the same period last year. Cash and Cash Equivalents: $21.4 million as of June 30, 2025. Net Cash Used in Operating Activities: $5.6 million for Q2 2025. Net Cash Used in Investing Activities: $5 million for Q2 2025. Light Duty Business Revenue: $76.4 million with a gross profit of $15.1 million or 20% of revenue. Proceeds from Light Duty Business Sale: $62.5 million in net proceeds. Warning! GuruFocus has detected 4 Warning Signs with WPRT. Release Date: August 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Westport Fuel Systems Inc (NASDAQ:WPRT) successfully divested its light duty segment, strengthening its balance sheet and sharpening its strategic focus on high-impact opportunities in commercial transportation and industrial applications. The company reported consolidated revenue of $88.8 million for Q2 2025, an increase from $83.4 million in the same period of 2024, indicating growth in its continuing operations. Westport Fuel Systems Inc (NASDAQ:WPRT) is well-positioned with fuel-agnostic technologies that offer performance, cost efficiency, and environmental benefits, providing a pathway to hydrogen adoption as its availability increases. The company is actively pursuing multiple growth opportunities in the renewable natural gas (RNG) sector, which represents a significant opportunity to reduce emissions in heavy-duty and off-road applications. Westport Fuel Systems Inc (NASDAQ:WPRT) is opening a state-of-the-art hydrogen innovation center and manufacturing facility in China, which will serve as a hub for research, development, and collaboration to meet the increasing demand for hydrogen transportation solutions in the region. Negative Points Westport Fuel Systems Inc (NASDAQ:WPRT) reported a decrease in consolidated revenue from continuing operations, with $12.5 million for Q2 2025 compared to $14.1 million in the same period last year, primarily due to decreased sales in high-pressure controls and systems and heavy-duty OEM business segments. The company experienced a decrease in gross margin, which fell to 3% of revenue in Q2 2025 from 31% in Q2 2024, driven by lower revenue and increased material costs. Westport Fuel Systems Inc (NASDAQ:WPRT) continues to face challenges in generating positive cash flow, with adjusted EBITDA reported as negative $1 million for the quarter. The company anticipates significant costs in Q3 2025, including incremental funding for the Cespira joint venture, transaction costs related to the light duty sale, and relocation costs for its high-pressure controls and systems operations. Westport Fuel Systems Inc (NASDAQ:WPRT) is experiencing a slowdown in the hydrogen industry outside of China, impacting its high-pressure controls and systems revenue, which decreased to $2.9 million in Q2 2025 from $3.6 million in Q2 2024. Q & A Highlights Q: Can you provide more details on HPDI activity outside of Europe, specifically in India, South America, and Asia? Are these trials or volumes from Volvo in new markets? A: Daniel Sceli, CEO: Volvo is establishing HPDI in Europe and expanding to other markets like Chile, Peru, and India to build market acceptance. This is part of their strategy to grow HPDI globally. Q: Is the development of the CNG HPDI version a Westport-only initiative or part of the joint venture with Cespira? A: Daniel Sceli, CEO: HPDI on engine is part of Cespira, while Westport is developing the off-engine side, including storage and material handling for CNG, which is significant in North America. Q: How does the current run rate for the high-pressure controls business look, and do you expect growth or fluctuations this year? A: Daniel Sceli, CEO: The market is currently experiencing a pause due to new policies and regulations in North America. However, opportunities in China continue to grow, driven by government initiatives. Q: What is the expected operational expenditure (OpEx) run rate after the divestiture of the light-duty business? A: William Larkin, CFO: OpEx will decrease as we right-size the business and focus on R&D for growing natural gas markets. Full reductions will be seen in 2026 after completing audits and reducing costs. Q: Regarding the $12.8 million in escrow from the transaction, is there any conditionality, or is it a timed disbursement? A: William Larkin, CFO: The escrow covers potential undisclosed liabilities. A significant portion will be released by January 2026, with the remainder following customary conditions. Q: Are there additional funding commitments for Cespira beyond Q3, and how should we view this going forward? A: Daniel Sceli, CEO: Cespira requires ongoing funding from parent companies for a three-year build-out, which will continue as planned. Q: How do tariffs and trade uncertainties between North America and China impact Westport? A: Daniel Sceli, CEO: There is no direct impact from tariffs due to our localization strategy in China. Indirect effects may occur due to overall economic adjustments, but no direct tariff impacts are expected. Q: Is the heavy-duty OEM revenue expected to roll off after the transition to Cespira? A: William Larkin, CFO: The transition to Cespira is substantially complete, and there will be minimal revenue from the heavy-duty OEM business going forward. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
15-05-2025
- Business
- Yahoo
Westport Fuel Systems Inc (WPRT) Q1 2025 Earnings Call Highlights: Strategic Shifts and ...
Revenue: $71 million for Q1 2025, a 9% decrease compared to Q1 2024. Cespira Revenue: $16.7 million, not included in top line due to equity accounting. Net Loss: Improved to $2.5 million from $13.6 million in Q1 2024. Gross Margin: Increased to $15.2 million or 21% of revenue, up from $11.7 million or 15% in Q1 2024. Operating Expenditures: Reduced by $8 million year-over-year. Adjusted EBITDA: Improved to nil from a loss of $6.6 million in Q1 2024. Light-Duty Revenue: $64.2 million, up from $63.3 million in Q1 2024. High Pressure Control & Systems Revenue: $1.4 million, down from $2.4 million in Q1 2024. Heavy-Duty OEM Revenue: $5.4 million, decreased due to transition to Cespira. Cash and Cash Equivalents: $32.6 million as of March 31, 2025, down from $37.6 million at December 31, 2024. Net Cash Used in Operating Activities: $4.9 million for Q1 2025. Warning! GuruFocus has detected 3 Warning Signs with WPRT. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Westport Fuel Systems Inc (NASDAQ:WPRT) reported a significant improvement in net loss, reducing it to $2.5 million from $13.6 million in Q1 2024. Gross profit increased by $3.5 million, and operating expenditures decreased by $8 million, indicating improved operational efficiency. The company is focusing on high-growth areas by divesting its Light-Duty business to concentrate on long-haul and heavy-duty transport solutions. Cespira, the joint venture with Volvo, generated $16.7 million in revenue, showcasing strong performance and potential for future growth. Westport Fuel Systems Inc (NASDAQ:WPRT) is strategically positioned as a leader in alternative fuels, with innovations like the CNG HPDI solution enhancing its market offerings. Reported revenue for Q1 2025 was $71 million, a 9% decrease compared to the same period last year. The transition of the Heavy-Duty OEM business into Cespira resulted in a shift of revenue, impacting reported figures. High Pressure Control & Systems revenues decreased to $1.4 million from $2.4 million in Q1 2024, primarily due to a slowdown in the hydrogen industry. Cash and cash equivalents decreased to $32.6 million from $37.6 million at the end of 2024, indicating a reduction in liquidity. The hydrogen infrastructure development is slowing, which could delay the adoption of hydrogen-powered automotive and industrial applications. Q: Just to clarify on the divestiture. Is this closing in 2Q or has it already been closed? A: Closing in Q2. Q: And that is when the cash proceeds, et cetera, will show up in the Q2 financials? Or will we see those in the third quarter financials? A: We expect to close by the end of the quarter, so the cash should show up in our June 30 balance sheet. Q: With respect to Cespira margins going forward, any color on what the path to higher margins looks like? Is it just more volume that will drive this? A: Getting Cespira profitable is a combination of things. Volume is key, along with reducing costs and managing the supply base better. Q: Last quarter, you mentioned the CNG related opportunity in North America. Any progress on that front? A: The pendulum is swinging back to natural gases. The hydrogen solutions are further off than expected, and the new US administration is pushing for natural gas, which should create opportunities. Q: Is China going to be a focus for you as well in the new emerging Westport? A: Yes, China is important, representing 50% of our high-pressure components business. We are seeing natural gas accelerate in China, and we are developing products for customers there. Q: Regarding the development of a CNG HPDI solution, how long would it take for Volvo to bring it to North America if they decide to? A: Engine development is a long cycle, typically about four years, mainly due to the certification process. We are proactively working to shorten this cycle. Q: On the High-Pressure Controls business, what growth opportunities do you see in that segment? A: We have a strong book of business in hydrogen components, and we are pivoting to include CNG components. The market is pulling for local supply, especially in China. Q: On the Cespira business, where is the growth coming from, and what are the dynamics? A: Growth is primarily in Europe, with Volvo marketing heavily and exploring opportunities in India. The 25% growth was built into our business plan. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
14-05-2025
- Business
- Yahoo
Westport's Q1 Loss Narrower Than Expected, Revenues Fall Y/Y
Westport Fuel Systems Inc. WPRT reported a loss of 14 cents per share in the first quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 47 cents. The company had incurred a loss of 79 cents in the year-ago registered consolidated revenues of $71 million, which missed the Zacks Consensus Estimate of $72 million. The top line also fell from $77.6 million generated in the corresponding quarter of 2024. The company incurred an adjusted EBITDA loss of $0.1 million compared with a loss of $9.2 million recorded in the year-ago period. Westport Fuel Systems Inc. price-consensus-eps-surprise-chart | Westport Fuel Systems Inc. Quote From the third quarter of 2024, Westport has started reporting its results under four reportable segments: Cespira, Light-Duty, High-Pressure Controls and Systems, and Heavy-Duty OEM. Cespira is Westport's HPDI joint venture with Volvo The segment reported net sales of $16.7 million, which missed our estimate of $22.8 million and incurred an operating loss of $7.1 million in the first quarter of Net sales of the segment totaled $64.2 million, which increased from $63.3 million in the first quarter of 2024 and surpassed our estimate of $63.8 million. The upside was mainly due to higher sales to light-duty original equipment manufacturer (OEM) and delayed OEM businesses. Gross profit rose to $14 million (22% of revenues) from the year-ago period's $12.4 million (20% of revenues), primarily due to an increase in sales to European customers and lower sales in developing Controls and Systems: Net sales of the segment totaled $1.4 million compared with $2.4 million in the year-ago period. The figure also missed our estimate of $1.6 million. A slowdown in hydrogen infrastructure development has resulted in slower adoption of hydrogen-powered solutions, which has resulted in a year-over-year decline. In the reported quarter, gross profit fell to $0.2 million of revenues (14% of revenue) from $0.4 million (17% of revenues) in the year-ago period due to lower sales volume, which increased the per-unit manufacturing costs. Heavy-Duty OEM: In the reported quarter, net sales of the segment fell to $5.4 million from $11.9 million in the year-ago quarter. The metric also missed our estimate of $6.7 million. The year-over-year decline resulted from the continuation of the business in profit totaled $1 million (19% of revenues) against a gross loss of $1.1 million in the first quarter of 2024. Westport had cash and cash equivalents (including restricted cash) of $32.6 million as of March 31, 2025, down from $37.6 million as of Dec. 31, 2024. Long-term debt decreased to $17.9 million as of March 31, 2025, from $19.1 million as of Dec. 31, 2024. Westport carries a Zacks Rank #3 (Hold) at better-ranked stocks in the auto space are Ferrari N.V. RACE and Standard Motor Products, Inc. SMP. RACE sports a Zacks Rank #1 (Strong Buy), while SMP carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for RACE's 2025 sales and earnings implies year-over-year growth of 12.37% and 4.8%, respectively. EPS estimates for 2025 and 2026 have improved 30 cents and 36 cents, respectively, in the past seven Zacks Consensus Estimate for SMP's 2025 sales and earnings implies year-over-year growth of 17.1% and 12.62%, respectively. EPS estimates for 2025 and 2026 have improved 6 cents and 2 cents, respectively, in the past 30 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Standard Motor Products, Inc. (SMP) : Free Stock Analysis Report Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report Ferrari N.V. (RACE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio Error in retrieving data
Hamilton Spectator
13-05-2025
- Business
- Hamilton Spectator
Westport Fuel Systems Reports First Quarter 2025 Financial Results
VANCOUVER, British Columbia, May 13, 2025 (GLOBE NEWSWIRE) — Westport Fuel Systems Inc. ('Westport') (TSX:WPRT / Nasdaq:WPRT) reported financial results for the first quarter ended March 31, 2025, and provided an update on operations. All figures are in U.S. dollars unless otherwise stated. 'We continue to make significant strides in transforming Westport and sharpening our strategic focus. Our priorities remain clear: driving success through Cespira, our HPDI joint venture with Volvo Group; pursuing operational excellence through initiatives to streamline processes and reduce costs; and positioning Westport at the forefront of the alternative fuel shift. These priorities are guiding us as we work towards a brighter future. We're seeing the impact of our efforts in our recent results – we significantly improved our net loss to $2.5 million in Q1 of 2025 from a net loss of $13.6 million in Q1 of 2024. This was supported by a $3.5 million increase in gross profit and an $8.1 million decrease in operating expenses. We also reported a substantial improvement in adjusted EBITDA as compared to the same period of the prior year. Looking to the future, with the announcement of the proposed sale of our light-duty business, Westport is realigning to focus on the hard-to-decarbonize applications primarily in long-haul and heavy-duty trucking where our unique HPDI and high-pressure technologies offer significant growth potential. Critically, this transaction is designed to provide immediate cash proceeds that bolster our balance sheet and fund growth opportunities in Cespira and the High-Pressure Controls & Systems business. Now, the conversation has changed. Our attendance at the Advanced Clean Transportation Expo or ACT Expo, the largest showcase of clean transportation technologies in North America, validated our view that the market recognizes that the internal combustion engine utilizing alternative fuels is an affordable solution that also decarbonizes long-haul, heavy-duty transport. Westport is the clean-tech innovation company to help drive this change. Through Cespira, the HPDI fuel system does the on-engine work to our High Pressure Controls and Systems business where our components do the off-engine work we are providing OEMs with simplified solutions to decarbonize. Volvo recently highlighted that demand for their gas-powered trucks that utilize HPDI technology has been increasing, with sales up more than 25% in 2024, a trend that we saw continue into Q1 with Cespira delivering improved revenue driven by increased volumes as compared to Q1 of 2024. While we remain focused on scaling our alternative fuel solutions, including LNG, CNG, RNG, and hydrogen systems, we are matching the cleanest gaseous fuels with the most efficient engine technologies. We are committed to delivering practical, commercially viable low-carbon solutions today and providing sustainable, high-performance solutions that help our customers achieve their goals now and for years to come.' Dan Sceli, Chief Executive Officer Q1 2025 Highlights [1] Adjusted earnings before interest, taxes and depreciation is a non-GAAP measure. Please refer to NON-GAAP FINANCIAL MEASURES in Westport's Management Discussion and Analysis for the reconciliation. (1) This includes income or loss primarily from our investments in Cespira and Minda Westport Technologies Limited (2) Gross margins, EBITDA and Adjusted EBITDA are non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation to equivalent GAAP measures and limitations on the use of such measures. Segment Information Light-Duty Revenue for the three months ended March 31, 2025 was $64.2 million compared with $63.3 million for the three months ended March 31, 2024. Light-Duty revenue increased by $0.9 million compared to the prior year and was primarily driven by increase in sales in our light-duty OEM and DOEM businesses. The light-duty OEM business had an increase in sales from its Euro 6 program compared to the prior year. In the first quarter of 2024, DOEM had a significant decrease in sales to a customer. This was partially offset by lower sales in our IAM, electronics and fuel storage businesses compared to the prior year. Gross profit for the three months ended March 31, 2025 increased by $1.6 million to $14.0 million, or 22% of revenue, compared to $12.4 million, or 20% of revenue, for the same prior year period. This was primarily driven by a change in sales mix with an increase in sales to European customers and a reduction in sales to developing regions. High Pressure Controls & Systems Revenue for the three months ended March 31, 2025 was $1.4 million compared with $2.4 million for the three months ended March 31, 2024. The decrease in revenue for the three months ended March 31, 2025 compared to the prior year was primarily driven by the hydrogen industry slowdown impacting demand for hydrogen components. Gross profit for the three months ended March 31, 2025 decreased by $0.2 million to $0.2 million, or 14% of revenue, compared to $0.4 million, or 17% of revenue, for the same prior year period. This was primarily driven by lower sales volumes increasing the per unit manufacturing costs in the quarter. Heavy-Duty Original Equipment Manufacturer ('OEM') Revenue for the three months ended March 31, 2025 was $5.4 million, compared to $11.9 million for the prior year. The decrease in revenue for the three months ended March 31, 2025 is a result of the continuation of the business in Cespira. The revenue earned in the current quarter was from our services provided under the transitional service agreement with Cespira that is expected to end by Q2 2026. Gross profit for the three months ended March 31, 2025 increased by $2.1 million to $1.0 million, or 19% of revenue, compared to negative $1.1 million or negative 9% of revenue, for the same prior year period. The Heavy-Duty OEM segment received $0.9million in credits from component suppliers for inventory sold in the quarter. Selected Cespira Statements of Operations Data We account for Cespira using the equity method of accounting. However, due to its significance to our long-term strategy and operating results, we disclose certain Cespira's financial information in notes 7 and 17 of our interim financial statements for the three months ended March 31, 2025. The following table sets forth a summary of the financial results of Cespira for the three months ended March 31, 2025 . 1Gross margin is non-GAAP financial measure. See the section 'Non-GAAP Financial Measures' for explanations and discussions of these non-GAAP financial measures or ratios. Revenue Cespira revenues for the three months ended March 31, 2025 were $16.7 million. In the prior year, the Heavy-Duty OEM segment, which included our HPDI business, had revenues of $11.9 million. This was primarily driven by an increase in HPDI fuel systems sold in the period. Gross Profit Gross profit was $0.5 million for the three months ended March 31, 2025. In the prior year, the Heavy-Duty OEM segment had negative $1.1 million in gross profit primarily driven by the increase in sales volumes compared to the prior year and reductions in manufacturing cost. Operating loss Cespira incurred operating losses of $7.1 million for the three months ended March 31, 2025. Cespira continues to incur operating losses as it scales its operations and expand into other markets. Q1 2025 Conference Call Westport has scheduled a conference call for May 14, 2025, at 7:00 am Pacific Time (10:00 pm Eastern Time) to discuss these results. To access the conference call please register at The live webcast of the conference call can be accessed through the Westport website at . Participants may register up to 60 minutes before the event by clicking on the call link and completing the online registration form. Upon registration, the user will receive dial-in info and a unique PIN, along with an email confirming the details. The webcast will be archived on Westport's website at . Financial Statements and Management's Discussion and Analysis To view Westport financials for the first quarter ended March 31st, 2025, please visit About Westport Fuel Systems At Westport Fuel Systems, we are driving innovation to power a cleaner tomorrow. We are a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen to the global automotive industry. Our technology delivers the performance and fuel efficiency required by transportation applications and the environmental benefits that address climate change and urban air quality challenges. Headquartered in Vancouver, Canada, with operations in Europe, Asia, North America, and South America, we serve our customers in approximately 70 countries with leading global transportation brands. At Westport Fuel Systems, we think ahead. For more information, visit . Cautionary Note Regarding Forward Looking Statements This press release contains forward-looking statements, including statements regarding future strategic initiatives and future growth, future of our development programs (including those relating to HPDI and Hydrogen), our expectations for 2024 and beyond, including the demand for our products, and the future success of our business and technology strategies. 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, uncertainties and assumptions include those related to our revenue growth, operating results, industry and products, the general economy, conditions of and access to the capital and debt markets, solvency, governmental policies and regulation, technology innovations, fluctuations in foreign exchange rates, operating expenses, continued reduction in expenses, ability to successfully commercialize new products, the performance of our joint ventures, the availability and price of natural gas and hydrogen, new environmental regulations, the acceptance of and shift to natural gas and hydrogen vehicles,fuel emission standards, the development of competing technologies, our ability to adequately develop and deploy our technology, the actions and determinations of our joint venture and development partners, the effects and duration of the Russia-Ukraine conflict, supply chain disruptions 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. Contact Information Investor Relations Westport Fuel Systems T: +1 604-718-2046 GAAP and Non-GAAP Financial Measures Our financial statements are prepared in accordance with U.S. generally accepted accounting principles ('U.S. GAAP'). These U.S. GAAP financial statements include non-cash charges and other charges and benefits that may be unusual or infrequent in nature or that we believe may make comparisons to our prior or future performance difficult. In addition to conventional measures prepared in accordance with U.S. GAAP, Westport and certain investors use EBITDA and Adjusted EBITDA as an indicator of our ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations and fund capital expenditures. Management also uses these non-GAAP measures in its review and evaluation of the financial performance of Westport. EBITDA is also frequently used by investors and analysts for valuation purposes whereby EBITDA is multiplied by a factor or 'EBITDA multiple' that is based on an observed or inferred relationship between EBITDA and market values to determine the approximate total enterprise value of a company. We believe that these non-GAAP financial measures also provide additional insight to investors and securities analysts as supplemental information to our U.S. GAAP results and as a basis to compare our financial performance period-over-period and to compare our financial performance with that of other companies. We believe that these non-GAAP financial measures facilitate comparisons of our core operating results from period to period and to other companies by, in the case of EBITDA, removing the effects of our capital structure (net interest income on cash deposits, interest expense on outstanding debt and debt facilities), asset base (depreciation and amortization) and tax consequences. Adjusted EBITDA provides this same indicator of Westports' EBITDA from continuing operations and removing such effects of our capital structure, asset base and tax consequences, but additionally excludes any unrealized foreign exchange gains or losses, stock-based compensation charges and other one-time impairments and costs which are not expected to be repeated in order to provide greater insight into the cash flow being produced from our operating business, without the influence of extraneous events. Segment Information EBITDA and Adjusted EBITDA are intended to provide additional information to investors and analysts and do not have any standardized definition under U.S. GAAP, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA exclude the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operations as determined under U.S. GAAP. Other companies may calculate EBITDA and Adjusted EBITDA differently. Segment earnings or losses before income taxes, interest, depreciation, and amortization ('Segment EBITDA') is the measure of segment profitability used by the Company. The accounting policies of our reportable segments are the same as those applied in our consolidated financial statements. Management prepared the financial results of the Company's reportable segments on basis that is consistent with the manner in which Management internally disaggregates financial information to assist in making internal operating decisions. Certain common costs and expenses, primarily corporate functions, among segments differently than we would for stand-alone financial information prepared in accordance with GAAP. These include certain costs and expenses of shared services, such as IT, human resources, legal, finance and supply chain management. Segment EBITDA is not defined under US GAAP and may not be comparable to similarly titled measures used by other companies and should not be considered a substitute for net earnings or other results reported in accordance with GAAP. Reconciliations of reportable segment information to consolidated statement of operations can be found in section 'NON-GAAP FINANCIAL MEASURES & RECONCILIATIONS' within this press release.
