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Fuel Systems Solutions Reports Fourth Quarter and Year End 2012 Results
6:30 AM ET 3/8/13 | GlobeNewswire
Fourth Quarter Revenue of $98.0 Million
Full Year 2012 Revenue of $393.9 Million
Records $22.0 million Non-Cash Goodwill and Asset Impairment Charge in Fourth Quarter
Fourth Quarter Net Income, Excluding Charge, of $0.2 Million
Fuel Systems Solutions, Inc. (Nasdaq:FSYS) reported results for its fourth quarter and year ended December 31, 2012.
Mariano Costamagna, Fuel Systems' CEO, said, "On an operational basis, Fuel Systems' 2012 results were in line with our revised outlook. We recorded a fourth quarter asset impairment charge primarily to reflect adjustments we made over the past few quarters to our expectations for US Automotive operations and the AFS acquisition. Fuel Systems continues to enjoy solid demand for gaseous and bi-fuel solutions, with OEMs around the world looking increasingly for cleaner and more cost-efficient methods for powering automotive and industrial engines. Continued pressure on end-market growth from a stagnant global economy is resulting in increased competition, with some players now seeking lower prices. Therefore, as a uniquely positioned leader in both the aftermarket and with OEMs, our 2013 focus is on execution and profitability while continuing to extend our technological innovation and market leadership. We are working closely with our existing OEM partners, forging new OEM relationships around the world, and making key technological investments to maintain our edge in order to emerge an even stronger leader in a tighter marketplace."
Fourth Quarter 2012 Financial Results
Revenue for the fourth quarter of 2012 was $98.0 million compared to $111.0 million in the fourth quarter of 2011. Automotive revenue decreased $13.6 million primarily reflecting decreases in the US automotive and Latin America markets partially offset by a modest increase in Europe. Industrial revenue was up slightly. Included in the above results is foreign exchange, which negatively impacted revenues by $2.5 million in the fourth quarter of 2012.
Gross profit for the fourth quarter of 2012 was $21.3 million, or 21.8% of revenue, compared to $24.2 million, or 21.8% of revenue in the fourth quarter of 2011. The lower gross profit dollars primarily reflect the lower automotive revenue above and increased costs in the industrial segment.
The Company recorded a fourth quarter 2012 non-cash goodwill and asset impairment charge of $22.0 million, comprised of a goodwill impairment of $9.9 million and a write-down of long-lived assets of $12.1 million relating to the US Automotive and AFS operations. Operating loss for the fourth quarter of 2012 totaled $20.8 million, or 21.2% of revenue, compared to operating income of $0.7 million, or 0.7% of revenue in the fourth quarter of 2011; excluding the abovementioned non-cash charge, the Company recorded fourth quarter 2012 operating income of $1.3 million, or 1.3% of revenue.
Adjusted EBITDA for the fourth quarter of 2012 was $3.1 million, or 3.2% of revenue, compared to $5.4 million, or 4.8% of revenue in the fourth quarter of 2011, primarily reflecting the abovementioned automotive revenue and industrial cost variances. Adjusted EBITDA is a non-GAAP measure. See "Non-GAAP Measures" below for a discussion of this metric.
Net loss for the fourth quarter of 2012 was $21.0 million, or $1.05 per diluted share, compared to net income of $1.4 million, or $0.07 per diluted share, in the fourth quarter of 2011; excluding the abovementioned non-cash charge and its associated tax benefit of $ 0.9 million, the Company recorded fourth quarter 2012 net income of $0.2 million or $0.01 per diluted share.
A table presenting historical reclassified operating segment data can be found in the tables contained at the end of this release.
FSS Automotive Operations
FSS Automotive fourth quarter 2012 revenue was $68.2 million, compared to $81.7 million from the same quarter a year ago. The impact of foreign exchange on FSS Automotive was a negative $2.5 million; in constant currency, fourth quarter FSS Automotive revenue decreased 13.5%, reflecting decreases in the US automotive and Latin America markets. FSS Automotive fourth quarter 2012 operating loss was $16.2 million, including $16.4 of the non-cash goodwill and asset impairment charge, compared to an operating loss of $1.9 million in the same period a year ago. FSS Automotive fourth quarter 2012 Adjusted EBITDA was $2.0 million, compared to $2.3 million a year ago.
FSS Industrial Operations
Revenue from FSS Industrial was $29.9 million compared to $29.2 million the same quarter a year ago. The impact of foreign exchange on FSS Industrial was insignificant; in constant currency, fourth quarter FSS Industrial revenue increased 2.1%, reflecting increases in the North American and European markets partially offset by declines in Japan. FSS Industrial fourth quarter 2012 operating loss was $3.2 million, including $5.7 million of the non-cash goodwill and asset impairment charge, compared to operating income of $4.1 million in the same period a year ago. FSS Industrial fourth quarter 2012 Adjusted EBITDA was $2.4 million, compared to $4.4 million a year ago, which reflects an increase in material costs.
Full Year Ended December 31, 2012 Financial Results
For the full year ended December 31, 2012, total revenue was $393.9 million compared to $418.1 million for 2011. Foreign exchange negatively impacted revenues by $23.2 million in 2012. Net loss for the year was $15.6 million, or $0.78 per diluted share, compared to net income of $5.2 million, or $0.26 per diluted share, for 2011. Excluding the non-cash goodwill and asset impairment charge, net income for 2012 was $5.5 million, or $0.28 per diluted share reflecting performance consistent with the prior year.
Total FSS Automotive revenue for the full year ended December 31, 2012 was $271.3 million compared to $295.1 million for 2011. Foreign exchange negatively impacted revenues by $20.7 million in 2012. Automotive operating loss was $11.8 million for 2012, including the $16.4 million of the non-cash goodwill and asset impairment charge, compared to operating income of $2.3 million for 2011. FSS Automotive Adjusted EBITDA for 2012 was $17.1 million compared to $18.2 million for 2011.
Total FSS Industrial revenue for the full year ended December 31, 2012 was $122.7 million compared to $123.0 million for 2011. Foreign exchange negatively impacted revenues by $2.5 million in 2012. Industrial operating income was $4.6 million for 2012 including the $5.7 million of the non-cash goodwill and asset impairment charge, compared to $14.7 million for 2011. FSS Industrial Adjusted EBITDA for 2012 was $13.4 million compared to $17.3 million for 2011.
Company Outlook
The Company expects full year 2013 revenue to be between $400 million and $420 million, 2013 gross margin of 21% to 23%, and 2013 operating margin of 2% to 4%. This outlook is based upon the following expectations:
-- Automotive operations - growth in OEM and DOEM programs, particularly in the US and Italy, combined with contributions from Thailand and Latin American automotive markets; partially offset by a slower transportation aftermarket given increasingly aggressive competition in developing countries and Eastern Europe.
-- Industrial operations - growth in APU market, aided by the launch of new battery products; slight growth in stationery equipment and mobile industrial markets overall with a mix of stable and weaker geographies.
-- A comparable margin performance in 2013 relative to 2012 as the Company focuses on achieving greater operational efficiencies given some margin compression expected from an increasingly competitive environment; continued selected investments in key leading edge technologies.
Non-GAAP Measures
To provide investors and others with additional information regarding Fuel Systems' results, in addition to the results presented in accordance with generally accepted accounting principles, or GAAP, in this press release, Fuel Systems presents adjusted EBITDA, which is a non-GAAP measure. A reconciliation of this non-GAAP measure to the closest GAAP financial measure is presented in the financial tables below under the heading "Non-GAAP FINANCIAL MEASURE RECONCILIATION."Adjusted EBITDA is determined by adding the following items to Net Income, the closest GAAP financial measure: Net Income attributable to non-controlling interest; Depreciation & Amortization; Interest income, net; and Benefit (Provision) for Income Taxes and Impairments. Fuel Systems' management believes this non-GAAP financial measure offers additional insight into the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in the business, as it excludes certain non-cash items. This non-GAAP financial measure also can provide useful information to investors and others in understanding and evaluating Fuel Systems' operating results and future prospects when comparing financial results across accounting periods and to those of peer companies. Fuel Systems may not define this non-GAAP financial measure in a manner similar to other companies.
Conference Call
The Company will host a conference call today, March 8 at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time to discuss its fourth quarter 2012 financial results and other matters. To listen to the call live, please dial 877-356-8063 at least 10 minutes before the start of the conference. International participants may dial 706-679-2544. The conference ID will be 97546519. The call will be webcast and can be accessed from the "Investor Relations" section of the company's website at http://www.fuelsystemssolutions.com/. A telephone replay will be available until midnight Eastern Time on March 13 by dialing 855-859-2056 or 404-537-3406 and entering pass code 97546519. A replay will also be available at the web address above for 90 days.
Forward-Looking Statements
This press release contains certain forward-looking statements that involve risks and uncertainties, including, without limitation, expressed or implied statements concerning the Company's outlook for 2013, as well as its position in the market place, the success of products and the success and integration of recent acquisitions and organizational changes. Such statements represent only our opinions and predictions. The Company's actual results may differ materially. Factors that may cause the Company's results to differ include, but are not limited to a further slowing of economic activity, our ability to integrate recently acquired businesses and to realize the expected synergies; our ability to reduce our cost structure and expenses as anticipated; the unpredictable nature of the developing alternative fuel US automotive market; unanticipated economic uncertainties caused by political instability in certain of the local markets we do business in; the growth of non-gaseous alternative fuel products and other new technologies; currency rate fluctuations and devaluations; our ability to promptly realign costs with current market conditions; unanticipated litigations; potential changes in tax policies and government incentives and their effect on the economic benefits of our products to consumers; the continued weakness in financial and credit markets and the economy; and the repeal or implementation of government regulations relating to reducing vehicle emissions. Readers also should consider the risk factors set forth in the Company's reports filed with the Securities and Exchange Commission, including, but not limited to, those contained in the "Risk Factors" section of the Company's Annual Report on Form 10-K, for the year ended December 31, 2011. The Company does not undertake to update or revise any of its forward-looking statements.
About Fuel Systems Solutions
Fuel Systems Solutions (Nasdaq:FSYS) is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. Fuel Systems' components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines. These components and systems feature the Company's advanced fuel system technologies, which improve efficiency, enhance power output and reduce emissions by electronically sensing and regulating the proper proportion of fuel and air required by the internal combustion engine. In addition to the components and systems, the Company provides engineering and systems integration services to address unique customer requirements for performance, durability and configuration. Additional information is available at www.fuelsystemssolutions.com.
Company Contact:
Pietro Bersani, Chief Financial Officer Fuel Systems Solutions, Inc.
(646) 502-7170
Investor Relations Contacts:
LHA
Carolyn M. Capaccio
ccapaccio@lhai.com
Cathy Mattison
cmattison@lhai.com (415) 433-3777
- Tables Follow -
View data
FUEL SYSTEMS SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Data)
(Unaudited)
December 31, December 31,
2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 75,675 $ 96,740
Accounts receivable less allowance for doubtful accounts of $4,349 and $2,665 at December 31, 2012 and December 31, 2011, respectively 75,191 62,551
Inventories 104,056 103,382
Deferred tax assets, net 7,999 6,512
Other current assets 14,815 19,125
Related party receivables 5,205 10,975
Total current assets 282,941 299,285
Equipment and leasehold improvements, net 59,368 59,051
Goodwill 49,218 58,968
Deferred tax assets, net 5,008 363
Intangible assets, net 15,186 29,422
Other assets 861 1,187
Long-term investments 7,236 884
Related party receivables -- 842
Total Assets $ 419,818 $ 450,002
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 42,483 $ 54,816
Accrued expenses 42,156 36,230
Income taxes payable 2,804 2,517
Current portion of term loans and debt 308 6,367
Deferred tax liabilities, net 305 82
Related party payables 4,100 4,680
Total current liabilities 92,156 104,692
Term and other loans 713 3,698
Other liabilities 8,354 7,885
Deferred tax liabilities, net 1,548 3,905
Total Liabilities 102,771 120,180
Equity:
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued and outstanding at December 31, 2012 and 2011 -- --
Common stock, $0.001 par value, authorized 200,000,000 shares; 20,061,887 issued and 20,039,020 outstanding at December 31, 2012; and 20,089,591 issued and 20,014,065 outstanding at December 31, 2011 20 20
Additional paid-in capital 319,667 318,632
Shares held in treasury, 7,999 and 16,055 shares at December 31, 2012 and 2011, respectively (305) (523)
(Accumulated Deficit)Retained Earnings (275) 15,357
Accumulated other comprehensive (loss) (2,060) (3,664)
Total Equity 317,047 329,822
Total Liabilities and Equity $ 419,818 $ 450,002
FUEL SYSTEMS SOLUTIONS, INC. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Data) (Unaudited) December 31, December 31, 2012 2011 ASSETS Current assets: Cash and cash equivalents $ 75,675 $ 96,740 Accounts receivable less allowance for doubtful accounts of $4,349 and $2,665 at December 31, 2012 and December 31, 2011, respectively 75,191 62,551 Inventories 104,056 103,382 Deferred tax assets, net 7,999 6,512 Other current assets 14,815 19,125 Related party receivables 5,205 10,975 Total current assets 282,941 299,285 Equipment and leasehold improvements, net 59,368 59,051 Goodwill 49,218 58,968 Deferred tax assets, net 5,008 363 Intangible assets, net 15,186 29,422 Other assets 861 1,187 Long-term investments 7,236 884 Related party receivables -- 842 Total Assets $ 419,818 $ 450,002 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 42,483 $ 54,816 Accrued expenses 42,156 36,230 Income taxes payable 2,804 2,517 Current portion of term loans and debt 308 6,367 Deferred tax liabilities, net 305 82 Related party payables 4,100 4,680 Total current liabilities 92,156 104,692 Term and other loans 713 3,698 Other liabilities 8,354 7,885 Deferred tax liabilities, net 1,548 3,905 Total Liabilities 102,771 120,180 Equity: Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued and outstanding at December 31, 2012 and 2011 -- -- Common stock, $0.001 par value, authorized 200,000,000 shares; 20,061,887 issued and 20,039,020 outstanding at December 31, 2012; and 20,089,591 issued and 20,014,065 outstanding at December 31, 2011 20 20 Additional paid-in capital 319,667 318,632 Shares held in treasury, 7,999 and 16,055 shares at December 31, 2012 and 2011, respectively (305) (523) (Accumulated Deficit)Retained Earnings (275) 15,357 Accumulated other comprehensive (loss) (2,060) (3,664) Total Equity 317,047 329,822 Total Liabilities and Equity $ 419,818 $ 450,002
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FUEL SYSTEMS SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Share and Per Share Data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Revenue $ 98,045 $ 110,960 $ 393,947 $ 418,134
Cost of revenue 76,713 86,760 302,113 321,350
Gross profit 21,332 24,200 91,834 96,784
Operating expenses:
Research and development expense 6,392 7,489 28,327 28,149
Selling, general and administrative expense 13,671 15,963 54,747 56,810
Impairments 22,046 -- 22,046 --
Total operating expenses 42,109 23,452 105,120 84,959
Operating (loss) income (20,777) 748 (13,286) 11,825
Other (expense) income, net (1,505) 141 (492) (294)
Interest income, net 129 124 329 789
(Loss) income from operations before income taxes and non-controlling interest (22,153) 1,013 (13,449) 12,320
Income tax benefit (expense) 1,193 396 (2,183) (7,058)
Net (loss) income (20,960) 1,409 (15,632) 5,262
Less: Net income (loss) attributable to non-controlling interests -- 2 -- (94)
Net (loss) income attributable to Fuel Systems Solutions, Inc $ (20,960) $ 1,411 $ (15,632) $ 5,168
Net (loss) income per share attributable to Fuel Systems Solutions, Inc:
Basic $ (1.05) $ 0.07 $ (0.78) $ 0.26
Diluted $ (1.05) $ 0.07 $ (0.78) $ 0.26
Number of shares used in per share calculation:
Basic 20,024,267 20,013,877 20,020,487 19,972,969
Diluted 20,024,267 20,037,521 20,020,487 20,004,236
FUEL SYSTEMS SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Share and Per Share Data) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2012 2011 2012 2011 Revenue $ 98,045 $ 110,960 $ 393,947 $ 418,134 Cost of revenue 76,713 86,760 302,113 321,350 Gross profit 21,332 24,200 91,834 96,784 Operating expenses: Research and development expense 6,392 7,489 28,327 28,149 Selling, general and administrative expense 13,671 15,963 54,747 56,810 Impairments 22,046 -- 22,046 -- Total operating expenses 42,109 23,452 105,120 84,959 Operating (loss) income (20,777) 748 (13,286) 11,825 Other (expense) income, net (1,505) 141 (492) (294) Interest income, net 129 124 329 789 (Loss) income from operations before income taxes and non-controlling interest (22,153) 1,013 (13,449) 12,320 Income tax benefit (expense) 1,193 396 (2,183) (7,058) Net (loss) income (20,960) 1,409 (15,632) 5,262 Less: Net income (loss) attributable to non-controlling interests -- 2 -- (94) Net (loss) income attributable to Fuel Systems Solutions, Inc $ (20,960) $ 1,411 $ (15,632) $ 5,168 Net (loss) income per share attributable to Fuel Systems Solutions, Inc: Basic $ (1.05) $ 0.07 $ (0.78) $ 0.26 Diluted $ (1.05) $ 0.07 $ (0.78) $ 0.26 Number of shares used in per share calculation: Basic 20,024,267 20,013,877 20,020,487 19,972,969 Diluted 20,024,267 20,037,521 20,020,487 20,004,236
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FUEL SYSTEMS SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
2012 2011
Cash flows from operating activities:
Net (loss) income $ (15,632) $ 5,262
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and other amortization 10,424 10,688
Amortization of intangibles arising from acquisitions 5,800 8,225
Impairment 22,046 --
Provision for doubtful accounts 2,299 641
Provision for related party loan receivable 828 --
Write down of inventory 4,246 3,148
Deferred Income Taxes (8,115) 824
Realized foreign exchange loss on subsidiary liquidation -- 417
Unrealized loss (gain) on foreign exchange transactions 859 46
Compensation expense related to equity awards 1,015 1,241
Loss on disposal of equipment and other assets 1,005 505
Reduction of contingent consideration (839) (1,661)
Changes in assets and liabilities, net of acquisitions
(Increase) in accounts receivable (12,878) (7,499)
(Increase) in inventories (2,500) (22,133)
Decrease in other current assets 827 3,272
Decrease in other assets 715 333
(Decrease) increase in accounts payable (11,271) 9,167
Increase (decrease) in income taxes payable 308 (648)
Increase (decrease) in accrued expenses 9,776 (224)
Decrease in long-term liabilities (762) (307)
Receivables from/payables to related party, net 4,667 (849)
Net cash provided by operating activities 12,818 10,448
Cash flows from investing activities:
Purchase of equipment and leasehold improvements (13,704) (12,130)
Purchase of investments (18,277) --
Redemption of investment at maturity 11,930 --
Acquisitions, net of cash acquired (5,700) (13,441)
Amount in restricted cash for acquisition of non-controlling interest 2,820 (2,882)
Other 258 467
Net cash used in investing activities (22,673) (27,986)
Cash flows from financing activities:
(Decrease) increase in callable revolving lines of credit, net (2,438) 1,830
Payments on term loans and other loans (6,397) (4,282)
Acquisition of non-controlling interest (2,820) (7,498)
Other 18 16
Net cash (used in) provided by financing activities (11,637) (9,934)
Net (decrease) increase in cash and cash equivalents (21,492) (27,472)
Effect of exchange rate changes on cash 427 (563)
Net (decrease) increase in cash and cash equivalents (21,065) (28,035)
Cash and cash equivalents at beginning of period 96,740 124,775
Cash and cash equivalents at end of period 75,675 96,740
FUEL SYSTEMS SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (Unaudited) 2012 2011 Cash flows from operating activities: Net (loss) income $ (15,632) $ 5,262 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and other amortization 10,424 10,688 Amortization of intangibles arising from acquisitions 5,800 8,225 Impairment 22,046 -- Provision for doubtful accounts 2,299 641 Provision for related party loan receivable 828 -- Write down of inventory 4,246 3,148 Deferred Income Taxes (8,115) 824 Realized foreign exchange loss on subsidiary liquidation -- 417 Unrealized loss (gain) on foreign exchange transactions 859 46 Compensation expense related to equity awards 1,015 1,241 Loss on disposal of equipment and other assets 1,005 505 Reduction of contingent consideration (839) (1,661) Changes in assets and liabilities, net of acquisitions (Increase) in accounts receivable (12,878) (7,499) (Increase) in inventories (2,500) (22,133) Decrease in other current assets 827 3,272 Decrease in other assets 715 333 (Decrease) increase in accounts payable (11,271) 9,167 Increase (decrease) in income taxes payable 308 (648) Increase (decrease) in accrued expenses 9,776 (224) Decrease in long-term liabilities (762) (307) Receivables from/payables to related party, net 4,667 (849) Net cash provided by operating activities 12,818 10,448 Cash flows from investing activities: Purchase of equipment and leasehold improvements (13,704) (12,130) Purchase of investments (18,277) -- Redemption of investment at maturity 11,930 -- Acquisitions, net of cash acquired (5,700) (13,441) Amount in restricted cash for acquisition of non-controlling interest 2,820 (2,882) Other 258 467 Net cash used in investing activities (22,673) (27,986) Cash flows from financing activities: (Decrease) increase in callable revolving lines of credit, net (2,438) 1,830 Payments on term loans and other loans (6,397) (4,282) Acquisition of non-controlling interest (2,820) (7,498) Other 18 16 Net cash (used in) provided by financing activities (11,637) (9,934) Net (decrease) increase in cash and cash equivalents (21,492) (27,472) Effect of exchange rate changes on cash 427 (563) Net (decrease) increase in cash and cash equivalents (21,065) (28,035) Cash and cash equivalents at beginning of period 96,740 124,775 Cash and cash equivalents at end of period 75,675 96,740
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FUEL SYSTEMS SOLUTIONS, INC.
OPERATING SEGMENT INFORMATION
(In Thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Revenue:
FSS Industrial $ 29,874 $ 29,222 $ 122,674 $ 122,998
FSS Automotive 68,171 81,738 271,273 295,136
Total $ 98,045 $ 110,960 $ 393,947 $ 418,134
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Operating (Loss) Income:
FSS Industrial $ (3,231) $ 4,064 $ 4,644 $ 14,662
FSS Automotive (16,191) (1,946) (11,833) 2,270
Corporate Expenses (1) (1,355) (1,370) (6,097) (5,107)
Total $ (20,777) $ 748 $ (13,286) $ 11,825
(1) Represents corporate expense not allocated to either of the business segments.
FUEL SYSTEMS SOLUTIONS, INC. OPERATING SEGMENT INFORMATION (In Thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2012 2011 2012 2011 Revenue: FSS Industrial $ 29,874 $ 29,222 $ 122,674 $ 122,998 FSS Automotive 68,171 81,738 271,273 295,136 Total $ 98,045 $ 110,960 $ 393,947 $ 418,134 Three Months Ended Twelve Months Ended December 31, December 31, 2012 2011 2012 2011 Operating (Loss) Income: FSS Industrial $ (3,231) $ 4,064 $ 4,644 $ 14,662 FSS Automotive (16,191) (1,946) (11,833) 2,270 Corporate Expenses (1) (1,355) (1,370) (6,097) (5,107) Total $ (20,777) $ 748 $ (13,286) $ 11,825 (1) Represents corporate expense not allocated to either of the business segments.
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FUEL SYSTEMS SOLUTIONS, INC.
NON-GAAP FINANCIAL MEASURE RECONCILIATION
(In thousands) (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
Segment adjusted EBITDA: 2012 2011 2012 2011
FSS Industrial $ 2,406 $ 4,415 $ 13,368 $ 17,316
FSS Automotive 1,998 2,314 17,124 18,231
Corporate and Other (1,288) (1,363) (6,000) (5,103)
Total adjusted EBITDA (Non-GAAP) $ 3,116 $ 5,366 $ 24,492 $ 30,444
Reconciliation:
Net (loss) income attributable to noncontrolling interest -- 2 -- (94)
Interest income, net 129 124 329 789
Benefit (Provision) for Income taxes 1,193 396 (2,183) (7,058)
Depreciation & Amortization (3,352) (4,477) (16,224) (18,913)
Impairments (22,046) -- (22,046) --
Net (loss) income attributable to Fuel Systems Solutions, Inc $ (20,960) $ 1,411 $ (15,632) $ 5,168
FUEL SYSTEMS SOLUTIONS, INC. NON-GAAP FINANCIAL MEASURE RECONCILIATION (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, Segment adjusted EBITDA: 2012 2011 2012 2011 FSS Industrial $ 2,406 $ 4,415 $ 13,368 $ 17,316 FSS Automotive 1,998 2,314 17,124 18,231 Corporate and Other (1,288) (1,363) (6,000) (5,103) Total adjusted EBITDA (Non-GAAP) $ 3,116 $ 5,366 $ 24,492 $ 30,444 Reconciliation: Net (loss) income attributable to noncontrolling interest -- 2 -- (94) Interest income, net 129 124 329 789 Benefit (Provision) for Income taxes 1,193 396 (2,183) (7,058) Depreciation & Amortization (3,352) (4,477) (16,224) (18,913) Impairments (22,046) -- (22,046) -- Net (loss) income attributable to Fuel Systems Solutions, Inc $ (20,960) $ 1,411 $ (15,632) $ 5,168
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Disclosures
Fuel Systems Solutions, Inc. Announces Timing of Fourth Quarter and Year-End 2012 Results
6:30 AM ET 2/21/13 | GlobeNewswire
Fuel Systems Solutions, Inc. (Nasdaq:FSYS) intends to release its fourth quarter and year-end 2012 financial results before the market opens on March 8, 2013. The company plans to host a conference call and simultaneous webcast that same day at 11:00 a.m. ET/8:00 a.m. PT featuring remarks by management and followed by a question and answer session.
To listen to the call live, please dial 877-356-8063 at least 10 minutes before the start of the conference. International participants may dial 706-679-2544. The conference ID will be 97546519. The call will be webcast and can be accessed from the "Investor Relations" section of the company's website at http://www.fuelsystemssolutions.com/. A telephone replay will be available until midnight Eastern Time on March 13 by dialing 855-859-2056 or 404-537-3406 and entering pass code 97546519. A replay will also be available at the web address above for 90 days.
About Fuel Systems Solutions
Fuel Systems Solutions (Nasdaq:FSYS) is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. Fuel Systems' components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines. These components and systems feature the Company's advanced fuel system technologies, which improve efficiency, enhance power output and reduce emissions by electronically sensing and regulating the proper proportion of fuel and air required by the internal combustion engine. In addition to the components and systems, the Company provides engineering and systems integration services to address unique customer requirements for performance, durability and configuration. Additional information is available at www.fuelsystemssolutions.com.
Investor Relations Contacts:
LHA
Carolyn M. Capaccio
ccapaccio@lhai.com
Cathy Mattison
cmattison@lhai.com
(415) 433-3777
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Westport Strengthens Board of Directors with Appointment of Nancy Gougarty and Expands Industry Knowledge Base with Formation of Advisory Board
Feb 11, 2013 08:00:00 (ET)
VANCOUVER, Feb. 11, 2013 /PRNewswire via COMTEX/ -- Westport Innovations Inc. , the global leader in natural gas engines, today announced that Ms. Nancy Gougarty has been appointed to the company's Board of Directors, effective February 8, 2013. The appointment of Ms. Gougarty increases the number of directors from nine to 10. To increase Westport's depth and breadth of industry experience, outside of the Board of Directors' core scope of responsibilities, an Advisory Board has been created. Initial members of the Advisory Board are Joseph Caron, former Canadian Ambassador to the People's Republic of China and Foreign and Defence Policy Secretariat of the Privy Council Office for the Canadian Government and Brenda Eprile, Managing Director at Sanford Eprile & Company and former Senior Partner at PricewaterhouseCoopers.
"Westport currently operates on five continents and 10 countries of the world," said John Beaulieu, Chairman of Westport Innovations. "Managing a global endeavor of such size and complexity requires substantial knowledge of markets, geopolitical realities, local customs including legal guidelines and restrictions. Ms. Gougarty, Mr. Caron and Ms. Eprile come with a wealth of experience and expertise to guide Westport to become a strong, global company with industry- leading performance."
Ms. Gougarty served as the vice president for TRW Automotive Corporation operations in the Asia-Pacific region from January 2008 until her recent departure from TRW in 2012. Joining TRW in 2005, her previous positions included vice president of product planning, business planning and business development, and vice president of braking, electronics and modules for Asia Pacific. Based at the Asia-Pacific headquarters in Shanghai, China, Ms. Gougarty oversaw the operations of more than 30 plants in the region. She directed the development and implementation of strategic and operational plans and worked to enhance strategic relationships with customers and joint venture partners in the region. Ms. Gougarty's distinguished career began in 1978 when she started with General Motors' Packard Electric Division, first as an industrial engineer; she later took on various roles in application engineering, finance, operations, and sales and engineering with increasing responsibility. In 1997, she was named Managing Director for General Motors' joint venture in Shanghai, followed by a series of appointments accountable for strategic growth in Asian countries. After the successful post as the Director for Delphi Packard, Asia Pacific, Ms. Gougarty spent three years leading Delphi's largest account as Global Account Director General Motors, until becoming the vice president for Delphi Automotive Systems, Japan and Korea. Ms. Gougarty is a certified Six Sigma Green Belt. She holds an EMBA degree from Case Western Reserve University and a bachelor's degree of science in industrial management from University of Cincinnati. A community service advocate, Ms. Gougarty serves as Advisor to the President of Marietta College, Ohio.
The inaugural members of Westport's Advisory Board are:
Joseph Caron Mr. Caron began his international relations career in 1972 as a member of the Trade Commissioner Service. His knowledge of the Japanese language led to assignments in Japan for over 17 years in government and business, including the Canadian Embassy as Minister Plenipotentiary and Head of Chancery. He also subsequently held several positions related to Asian and international economic affairs for the Canadian Government, including serving the Foreign and Defence Policy Secretariat of the Privy Council Office. From 2001 to 2005, he served as Canadian Ambassador to the People's Republic of China with concurrent accreditation in the Democratic People's Republic of Korea (North Korea) and Mongolia. In 2005, he was named Canadian Ambassador to Japan and, in 2008, he served as High Commissioner to the Republic of India. Mr. Caron has been awarded an Honorary Doctorate from Meiji Gakuin University in Tokyo and has also been named a Distinguished Fellow of the Asia Pacific Foundation of Canada as well as an Honorary Research Associate at the Institute of Asian Research of the University of British Columbia. Mr. Caron is currently Strategic Advisor, Asia Pacific at Heenan Blaikie LLP and Board member of Manulife Financial Corporation and Vancouver International Airport. Mr. Caron obtained a Bachelor of Arts degree with Honours from the University of Ottawa in 1970.
Brenda Eprile Ms. Eprile has been the Managing Director at Sanford Eprile & Company since 2012, a boutique consulting firm serving a wide variety of clients on a range of regulatory compliance issues. From 2000 to 2012, Ms. Eprile was a Senior Partner at PricewaterhouseCoopers and led the Risk Advisory Services practice. From 1998 to 2000, Ms. Eprile was a Partner at Deloitte and created a regulatory advisory practice for the Canadian member firm of Deloitte focusing on public companies and financial services firms. From 1985 to 1997, Ms. Eprile had a distinguished career as a securities regulator in Canada, having held the positions of both Executive Director and Chief Accountant at the Ontario Securities Commission. From 1982 to 1985, Ms. Eprile was an audit staff member at Coopers and Lybrand serving a variety of industry sectors including financial services, consumer electronics, and heavy industry. Ms. Eprile is a Chartered Accountant and has an Honours Bachelor of Music from the University of Toronto, as well as a Master of Business Administration from Schulich School of Business, York University. She is the Chair of the Board of Canada's National Ballet School.
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 renewable natural gas (RNG) fuels such as landfill gas and help reduce greenhouse gas emissions (GHG). Westport technology offers advanced LNG fueling systems with direct injection natural gas engine technology for heavy-duty vehicles such as highway trucks and off-road applications such as mining and rail. Westport's joint venture with Cummins Inc., Cummins Westport Inc. designs, engineers and markets spark-ignited natural gas engines for North American transportation applications such as trucks and buses. Westport is also one of the global leaders for natural gas and liquefied petroleum gas (LPG) fuel in passenger cars, light-duty trucks and industrial applications such as forklifts. To learn more about our business, visit our website or subscribe to our RSS feed at www.westport.com , or follow us on Twitter @WestportDotCom.
SOURCE Westport Innovations Inc.
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WPRT buyout of FSYS seems unlikely at this time IMO...
I have not seen any speculation concerning a possible Westport buyout of FSYS for almost a year now (see #msg-72508275).... However, news tidbits concerning FSYS are almost non-existant and surprises are probable.
Anymore buzz on a possible WPRT/FSYS marriage?
Nov 8 2011 FSYS Q3 CC Notes....
The following information is old as it relates to content from the November 2012 Conference Call... However, news flow out of FSYS is limited; the CC data is among the newest available.
I am reviewing this CC now because I'm trying to determine if there is a reason that the FSYS share price is at its lowest value in years ...
To summarize the CC:
1. The AT&T GMT610 Van (Savana and Express) contract announced in January 2012 ( #msg-71580239 ) is still active, albeit delayed...
Fuel Systems Solutions Granted Ship to Commerce Decision from GM
Jan 22, 2013 06:30:08 (ET)
NEW YORK, Jan 22, 2013 (GLOBE NEWSWIRE via COMTEX) -- - Records Revenue in 2012 from Bi-fuel Pickup Trucks Shipped in December -
- Reaffirms 2012 Revenue Outlook -
- GM Expands CNG Cargo Van Contract to Include Extended Wheel Base Lengths in 2013 -
Fuel Systems Solutions, Inc. received in late December a Ship to Commerce (STC) decision from GM to begin deliveries of bi-fuel pickup trucks converted in its Union City, Indiana OEM conversion center using Fuel Systems' natural gas components. GM's Fleet and Commercial department forwards the bi-fuel pickups to its dealer network according to orders status.
Mariano Costamagna, Fuel Systems' CEO, said, "Obtaining GM's decision to release the vehicles required the completion of an extensive development, testing, validation and approval process. We are proud of this accomplishment, which marks the commercial launch of bi-fuel pickups manufactured through our program with GM. The availability of a fully integrated OEM CNG bi-fuel solution is a market milestone establishing Fuel Systems as a technology leader in the fast evolving North American alternative fuels market, providing fleet customers with a pickup option that meets rigorous performance standards."
Fuel Systems recorded revenue from the deliveries in 2012. Given this and results from major markets served, the company reaffirms its outlook for full year 2012 revenue within its previously announced outlook range. The company will present its full financial results when it reports the 2012 fourth quarter in March.
Additionally, Fuel Systems has received from GM a new 2013 contract that expands the CNG product offering for this year to include both the regular (135-inch / 3,429-mm) and extended (155-inch / 3,937-mm) wheelbase lengths for the Express and Savana Cargo Vans.
Forward-Looking Statements
This press release contains certain forward-looking statements that involve risks and uncertainties, including, without limitation, expressed or implied statements concerning the Company's outlook for 2012, as well as its position in the market place, the success of products and the success and integration of recent acquisitions and organizational changes. Such statements represent only our opinions and predictions. The Company's actual results may differ materially. Factors that may cause the Company's results to differ include, but are not limited to a further slowing of economic activity, our ability to integrate recently acquired businesses and to realize the expected synergies; our ability to reduce our cost structure and expenses as anticipated; the unpredictable nature of the developing alternative fuel US automotive market; unanticipated economic uncertainties caused by political instability in certain of the local markets we do business in; the growth of non-gaseous alternative fuel products and other new technologies; currency rate fluctuations and devaluations; our ability to promptly realign costs with current market conditions; unanticipated litigations; potential changes in tax policies and government incentives and their effect on the economic benefits of our products to consumers; the continued weakness in financial and credit markets and the economy; and the repeal or implementation of government regulations relating to reducing vehicle emissions. Readers also should consider the risk factors set forth in the Company's reports filed with the Securities and Exchange Commission, including, but not limited to, those contained in the "Risk Factors" section of the Company's Annual Report on Form 10-K, for the year ended December 31, 2011. The Company does not undertake to update or revise any of its forward-looking statements.
About Fuel Systems Solutions
Fuel Systems Solutions is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. Fuel Systems' components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines. These components and systems feature the Company's advanced fuel system technologies, which improve efficiency, enhance power output and reduce emissions by electronically sensing and regulating the proper proportion of fuel and air required by the internal combustion engine. In addition to the components and systems, the Company provides engineering and systems integration services to address unique customer requirements for performance, durability and configuration. Additional information is available at www.fuelsystemssolutions.com .
Investor Relations Contacts:
LHA
Carolyn M. Capaccio
ccapaccio@lhai.com
Cathy Mattison
cmattison@lhai.com (415) 433-3777
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Fuel Systems Solutions, Inc. Announces Timing of Third Quarter 2012 Results
Oct 25, 2012 13:00:08 (ET)
NEW YORK, Oct 25, 2012 (GlobeNewswire via COMTEX) -- Fuel Systems Solutions, Inc. (FSYS, Trade ) intends to release its third quarter 2012 financial results before the market opens on November 8, 2012. The company plans to host a conference call and simultaneous webcast that same day at 11:00 a.m. ET/8:00 a.m. PT featuring remarks by management and followed by a question and answer session.
To listen to the call live, please dial 877-356-8063 at least 10 minutes before the start of the conference. International participants may dial 706-679-2544. The conference ID will be 40136696. The call will be webcast and can be accessed from the "Investor Relations" section of the company's website at http://www.fuelsystemssolutions.com/ . A telephone replay will be available until midnight Eastern Time on November 13th by dialing 855-859-2056 or 404-537-3406 and entering pass code 40136696. A replay will also be available at the web address above for 90 days.
About Fuel Systems Solutions
Fuel Systems Solutions (FSYS, Trade ) is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. Fuel Systems' components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines. These components and systems feature the Company's advanced fuel system technologies, which improve efficiency, enhance power output and reduce emissions by electronically sensing and regulating the proper proportion of fuel and air required by the internal combustion engine. In addition to the components and systems, the Company provides engineering and systems integration services to address unique customer requirements for performance, durability and configuration. Additional information is available at www.fuelsystemssolutions.com .
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Fuel Systems Solutions, Inc.
Investor Relations Contacts: LHA Carolyn M. Capaccio ccapaccio@lhai.com Cathy Mattison cmattison@lhai.com (415) 433-3777
Natural-gas cars merge into Wall Street fast lane
By Steve Gelsi
Oct 12, 2012 13:14:17 (ET)
NEW YORK (MarketWatch) -- Business owner Veerachart Murphy didn't flinch when U.S. gasoline prices neared $4 a gallon on average at the pump this summer, because he runs his car on much cheaper fuel.
Murphy bought his first compressed-natural-gas vehicle back in 2000 to offset the fill-up cost of his fuel-hungry Chevrolet Suburban. While his hometown of Phoenix now has five filling stations for compressed natural gas, or CNG, he fuels his cars with his own CNG pump, which typically costs about $1,500 to more than $5,000.
"I've been paying the equivalent of 96 cents a gallon for gasoline for the past 12 years," he said. His satisfaction with CNG led him to launch CNG Motors, a specialist in converting vehicles to run on natural gas.
Yet many on Wall Street don't share his enthusiasm and have taken a wait-and-see approach to the business of natural gas as a transportation fuel.
But lately that attitude is starting to change on some fronts. With so much supply that energy companies are pulling rigs out of the ground to cut back on production, natural gas is starting to look more appealing as a cheaper and cleaner alternative to gasoline and diesel.
And a few stocks are showing up on Wall Street's radar as a way to ride the trend, though the road ahead is long.
Also lending support: The technology for converting cars and trucks to natural gas has a longer track record on American roads than electric cars, which have been capturing attention as a gasoline-free form of transportation.
Mainstream electric cars such as the Model S from Tesla Motors Inc. are hitting showrooms. Nissan Motor Co.'s Leaf and General Motors' Chevrolet Volt are also available as are plug-in versions of the Toyota Prius.
By contrast, Honda Motor Co. has the CNG car market all to itself, after other auto makers pulled models in recent years, when oil was cheaper and natural gas was more expensive.
Honda focused on fleet customers when it introduced the natural-gas-burning Civic GX in 1998, but now it's bearing down on the passenger-car market.
The Honda Civic Natural Gas is being offered at 200 dealers in 37 states, up from 71 dealers in five states two years ago. Honda doesn't break out sales numbers for the model. To sweeten the deal, Honda is handing a $3,000 credit to buyers for the purchase of CNG at participating stations. Without the credit, the Honda Civic Natural Gas costs around $5,650 more than gasoline-burning models. Read more: Honda tries to capitalize on California drivers' gasoline woes.
Brian Salerno, manager of the Huntington EcoLogical Strategy ETF , said he's skeptical about any big surge in CNG car sales for now because of a lack of places to fuel up.
"The problem is it's a convenience thing," Salerno said. "We're a nation that won't move 12 feet to turn the channel on our TV because we need the remote control. So the likelihood of a lot of people buying CNG vehicles ... it's just not going to happen."
Salerno said natural-gas-powered vehicles are more popular in Europe, where gasoline costs about twice as much as it does in the U.S. In Italy, about 3.5% of the cars run on natural gas, he said, citing industry sources.
In the U.S., most of the movement toward natural gas has been with municipal fleets, which often fuel up at converted depots.
On this front, Salerno said he's keeping an eye on shares of Westport Innovations Inc. , which makes equipment for truck engines to burn natural gas. Also on his list is Fuel Systems Solutions Inc. , a maker of components that control the pressure and flow of propane and natural gas for combustion engines.
"We don't own either of them right now because we don't like to base our investments on what we hope happens," he said. "Westport is still not at the scale where they can report sustainable profits. They're still emerging. They're almost there, but still on the edge of being speculative."
While holding off on Westport and Fuel Systems Solutions, Salerno said BorgWarner Inc. remains a long-term holding for his fund, partly because of the auto-parts maker's involvement in boosting fuel efficiency and cutting emissions in vehicles.
To be sure, the trend toward natural-gas vehicles could slow or even stop if natural-gas prices rise.
In 2008, for example, prices shot up well above $10 per million British thermal units, nearly three times where they are now. Wider use of natural gas could cause a drop in supply, which would also stoke prices.
Much of the U.S.'s supply of natural gas comes from the decades-old method of hydraulic fracturing, or "fracking," which uses pressurized water to break up the earth far underground to free up natural gas. That practice has come under fire from environmentalists.
But the economics of natural gas remain compelling, even if prices move up, mostly because crude oil has stayed relatively expensive, about $90 a barrel in recent weeks.
For now, natural gas costs $1.50 to $2 less per gallon to fill up compared to gasoline, according to industry estimates. The CNG cost is about half the cost of diesel fuel.
With the prospects of saving their customers tens of thousands of dollars per year in fuel costs per vehicle, commercial truck manufacturers are gearing up compressed-natural-gas and liquid-natural-gas vehicles.
"Next year is probably going to be the most critical time to date for the industry," said Shawn Severson, a buy-side analyst for JMP Securities. "People in the car, truck and fleet-vehicle industry ... know this stuff works. It provides an economic advantage in fuel costs and better emissions."
While it costs as much as $60,000 more to buy a big, long-haul natural-gas-powered truck, a typical vehicle could save about $40,000 a year in fuel costs, he said. He figures long-haul fleets will have to switch to natural gas just to stay competitive.
For medium-duty and regional trucks, Cummins Inc. and Westport Innovations are rolling out an 11.9-liter engine that runs on CNG in the first quarter. Thirteen-liter engines from Navistar International and Volvo that run on CNG will follow by 2014, according to industry projections.
JMP's Severson said his top pick for the expected adoption of natural-gas vehicles is Westport Innovations, the same stock that fund manager Salerno is tracking but not buying for now.
While acknowledging some volatile moves in the stock, Severson argued that the Vancouver-based maker of fuel-system technologies for gaseous fuels now sits in the middle of the value chain of the coming trend, through its alliance with General Motors and others.
He said investors may also want to consider Fuel Systems Solutions Inc., Clean Energy Fuels Corp. and Chart Industries Inc. .
St. Denis Villere, portfolio manager at the Villere Balanced Fund , said he sees natural gas gaining traction as a transportation fuel because it'll remain cheap for the foreseeable future. But for now he's funneling his energy investment dollars more into oil producers such as SandRidge Energy Inc. .
"It's probably too early for us to invest in natural-gas vehicles," he said. "We do like things that are young and growing but want to make sure they're established first. The jury is still out on which direction this is going."
Kent Croft of the Croft Value Fund said he owns shares of natural gas companies partly because of the fuel's potential in the transportation sector. Yet he's taking a long-term view.
"This is wonderful stuff, but it's not right around the corner," Croft said.
The fund manager added that he has moved into natural-gas producers based on the low price of the fuel relative to oil.
Other trends helping natural gas include plans to export it from the U.S. and Canada in the form of liquid natural gas; also, natural gas-fired power plants continue to gain traction.
While natural gas prices may rise, the U.S.'s big supply could keep domestic price levels well-below that of Europe and Asia, Croft said.
In a move to boost use of the fuel, Royal Dutch Shell Plc has teamed up with TravelCenters of America to sell liquefied natural gas at 100 sites in the U.S. Royal Dutch is also building up its LNG infrastructure in Canada for truck fleets.
"Nobody in their right mind would build out an infrastructure for this unless they were assured of a very, very long term supply of the commodity," Croft said. "That's the reason why we're even talking about transportation."
Croft noted that his fund owns Southwestern Energy Co. and Ultra Petroleum Corp. as potential beneficiaries of natural gas as a transportation fuel. He also likes shares of pipeline firm Williams Cos. for its "vast network of gathering and pipelines around the country. They will benefit from increased use of natural gas."
For investors seeking exchange-traded funds with exposure to natural gas, the United States Natural Gas Fund ranks as a top-ranked energy ETF by assets. The Energy Select Sector SPDR offers access to the energy stocks in the Standard & Poor's 500 Index . Vanguard Group, meanwhile, offers the Vanguard Energy ETF .
In meetings with industry analysts, many executives have been talking up their company's natural gas prospects to entice prospective investors.
Cummins CEO Norman Linebarger, for example, told analysts over the summer the company's natural-gas-engine sales doubled in the second quarter.
"We're definitely seeing more demand," he said. "With gas prices where they are ... there's going to be a lot of people that are going to try to get natural gas into their highway truck engines ... because prices are really attractive today."
Cummins estimates a total of 10,000 heavy-duty commercial trucks in the U.S. currently use its natural-gas equipment and about 120,000 of all types of vehicles use natural gas. By comparison, U.S. residents bought new cars at a seasonally adjusted annual rate of 14.9 million in September, automobile makers reported earlier this month.
Worldwide, the number of light-duty vehicles fueled by natural gas is expected to increase to more than 3 million by 2019, up from about 2 million in 2012, according to estimates by Pike Research.
One well-known figure on Wall Street, billionaire T. Boone Pickens, is a big booster of natural-gas vehicles as co-founder of Clean Energy Fuels, a specialist in natural-gas filling stations with a market capitalization of about $1.1 billion.
Clean Energy Fuels has been addressing the lack of CNG filling stations in the U.S. Electric vehicle-charging stations now outpace CNG stations by a score of 13,392 to 1,107 in the U.S., according to estimates from the U.S. Department of Energy.
And both are dwarfed by the estimated 145,000 gasoline stations, big-box and supermarket pumps and fleet stations around the U.S., according to Oil Price Information Service.
Clean Energy Fuels and natural-gas producer Chesapeake Energy Corp. are building natural-gas filling stations in an alliance with Pilot-Flying J, the largest truck-stop operator in the U.S. with 550 locations.
With about 70 natural-gas stations expected by the end of the year, the two companies aim to build a network that will service big trucks, especially on long-haul routes.
"One of our major focuses is building the infrastructure that will enable natural gas to become a viable transportation fuel," Clean Energy Fuels Chief Executive Andrew Littlefair told analysts last August.
Back in Phoenix, CNG Motors owner Murphy sees CNG vehicles picking up steam if gasoline prices remain near or above the $4-a-gallon mark. In California, for example, gasoline prices spiked near $5 a gallon this month on tight supply tied to refinery outages.
"There's a public outcry for these vehicles because people don't want to pay so much to fill up," Murphy said. "The more your drive, the faster it pays for itself."
Fuel Systems Solutions Started at Overweight by Piper Jaffray >FSYS
Oct 9, 2012 08:49:07 (ET)
(END) Dow Jones Newswires
October 09, 2012 08:49 ET (12:49 GMT)
waste management is gassing up their new cng trucks from methane extracted at landfills.........truck dumps load, gasses up at pump with free cng, 13,000 gallons daily from 1 landfill, expect wste management to go all out with converting their fleet:
http://gas2.org/2009/11/06/waste-management-turns-landfill-into-fuel-pump/
http://www0.wm.com/federal/case-studies/altamont.html
FSYS’ Q2 CC of 8/8/12....
The overall tone of FSYS’ Q2 conference call was positive, in my opinion. Negative factors that impacted Q2 should not be as evident in Q3. For example, Q2 sales in Venezuela were suspended due to the country’s lack of foreign exchange, but FSYS management expects sales to return in Q3. The shutdown of Honda and Mitsubishi in Thailand due to the aftermath of last year’s devastating floods should diminish in Q3. And, a technical issue that suspended aftermarket sales in the US has been resolved. The slowdown in industrial mobile equipment, on the other hand, is likely to continue until the North American economy strengthens. The net result is probably “a low single-digit constant currency growth rate” to quote a questioner whose name I did not get.
A major positive trend for FSYS has been the marked increase in both DOEM and aftermarket kit sales in Italy and the rest of Europe. Increases in demand for both stationary power generators and APU’s is also a strong positive that should continue in subsequent quarters.
The biggest news to me, however, was that there was a significant technical issue with FSYS’ US aftermarket kits... retrofit kits had to be sent to affected customers. My read is that the issue was substantial enough to catalyze the administrative shakeup announced in June (see #msg-77045496). According to management, the issue has been resolved and should not be significant factor in the future.
I have been particularly keen to hear more about FSYS’ research concerning direct injection technology (see #msg-75935365). There was a brief mention of this technology in this CC; i.e. they implied substantial progress regarding direct injection systems for propane vehicles. But over all, little has been said publicly about FSYS’ direct injection program.
Selected quotes:
Fuel Systems Solutions, Inc.to Present at the Canaccord Genuity 32nd Annual Growth Conference
Aug 10, 2012 06:30:07 (ET)
NEW YORK, Aug 10, 2012 (GlobeNewswire via COMTEX) -- Fuel Systems Solutions, Inc. (FSYS, Trade ) management is scheduled to present at the Canaccord Genuity 32nd Annual Growth Conference on Thursday, August 16th at 10:00 a.m. ET in Boston. A live audio webcast and archive will be available for 90 days at the company's web site www.fuelsystemssolutions.com .
About Fuel Systems Solutions
Fuel Systems Solutions (FSYS, Trade ) is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. Fuel Systems' components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines. These components and systems feature the Company's advanced fuel system technologies, which improve efficiency, enhance power output and reduce emissions by electronically sensing and regulating the proper proportion of fuel and air required by the internal combustion engine. In addition to the components and systems, the Company provides engineering and systems integration services to address unique customer requirements for performance, durability and configuration. Additional information is available at www.fuelsystemssolutions.com .
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Fuel Systems Solutions, Inc.
CONTACT: Investor Relations Contacts: LHA Carolyn M. Capaccio ccapaccio@lhai.com Cathy Mattison cmattison@lhai.com (415) 433-3777
FSYS Management Shakeup ...
Yesterday (June 27, 2012), a press release revealed that there has been a change in management structure at FSYS. see: http://finance.yahoo.com/news/fuel-systems-solutions-updates-management-214941827.html
My interpretation of the change is that:
1) Mariano Costamagna has solidified his position and is likely to renew his tenure as CEO when his current contract ends at the end of 2012.
Re: FSYS as good current investment...
Kingsplay, to answer your question regarding if FSYS is a good investment at this time... there are several good investment opportunities out there, and I hesitate to say that FSYS is the best of the lot.
As a company, FSYS has a diverse and well developed industrial and transportation customer base. It’s finances are solid (no substantial debt). And its leadership is conservative, not likely to overextend the business (at least that is my view).
As a stock, FSYS’ growth rate is modest and it is not attracting investors focused upon growth. FSYS does not have a dividend to attract value investors. Investors looking to the possibility that North America will embrace natural gas as a transportation fuel are focusing more on stocks such as WPRT that serve the commercial truck fleet (i.e. see your #msg-75926898) than the automobile fleet (where FSYS has an advantage). All-in-all, It appears that most of the FSYS stock activity can be attributed to traders that are taking advantage of FSYS’ volatility (i.e. FSYS has a Beta of approx 2.3)
In summary, I like the company, I’m ambivalent about the stock.
As to the unexpected, I’m keeping an eye out regarding the following:
1) A possible dramatic increase in after-market conversions of automobiles to CNG/LPG should individuals in economically stressed economies go into a defensive mode. This would benefit FSYS’ top line (albeit with some margin erosion). Support for this contention was recently provided on the Yahoo msg board by bobdeschamps on May 18, 2012; i.e. cng/lp conversions increased dramatically in April 2012 despite an overall decrease in total auto sales; see: http://www.allaguida.it/articolo/auto-a-metano-e-gpl-aumentano-le-vendite-per-il-caro-benzina/60365/ & http://www.infomotori.com/infoflash/2012/05/15/auto-metano-boom-immatricolazioni-517/
2) The CEO’s current contract expires at the end of this year. This anniversary date provides an opportunity for a dramatic change in company structure ... i.e division into two companies, or new leadership... This was an issue that I raised in #msg-72508275.
3) A possible breakthrough in direct injection technology that might give FSYS a technological advantage... This issue was raised in the Nov 9, 2011 FSYS Q3 question and answer session; i.e.
Dilip Warrier – Stifel, Nicolaus & Co. :
Okay. And then just one bigger-picture question. Fully understanding the aftermarket is a huge opportunity on the transportation/automotive side. On the OEM side, as they pursue strategies to downsize engines and do more direct-injection turbo-charging. Can you talk about how your product portfolio addresses that transition over the next several years?
Mariano Costamagna – FSYS CEO:
Okay, Roberto. Would you please reply to that?
Roberto Olivo – FSYS President BRC Operations:
Yes. I’m very pleased to answer. Obviously, we are developing our new generation of products in close contact with most of the OEMs. The downsizing and the application and the utilization of direct injection is going to be, let’s say, one of the leading phenomenon, let’s say, that is going to influence the automotive industry. And being based in Europe, we know that, obviously, Europe is going to take a leading position in this respect. America, which is normally using much bigger displacement engines and so on, will follow. We are working on direct injection. We are developing our system. We have different, let’s say, solution. And, obviously, it’s going to be one of the key for the success for the coming years.
Rising diesel costs last year forced Waste Management Inc. to charge customers an extra $169 million, just to keep its garbage trucks fueled. This year, the nation's biggest trash hauler has a new defensive strategy: it is buying trucks that will run on cheaper natural gas.
In fact, the company says 80% of the trucks it purchases during the next five years will be fueled by natural gas. Though the vehicles cost about $30,000 more than conventional diesel models, each will save $27,000-a-year or more in fuel, says Eric Woods, head of fleet logistics for Waste Management. By 2017, the company expects to burn more natural gas than diesel.
"The economics favoring natural gas are overwhelming," says Scott Perry, a vice president at Ryder Systems Inc., one of the nation's largest truck-leasing companies and a transporter for the grocery, automotive, electronics and retail industries.
The shale gas revolution, which cut the price of natural gas by about 45% over the past year, already has triggered a shift by the utility industry to natural gas from coal. Vast amounts of natural gas in shale rock formations have been unlocked by improved drilling techniques, making the fuel cheap and plentiful across the U.S.
Now the shale-gas boom is rippling through transportation. Never before has the price gap between natural gas and diesel been so large, suddenly making natural-gas-powered trucks an alluring option for company fleets. Railroad operators also are being affected as coal shipments decline.
Many fleet operators, particularly long-haul truckers, remain concerned about a scarcity of refueling stations. Other challenges include the bulky tanks for compressed gas and the hazards of handling liquefied gas. In the past, the volatility of natural-gas prices also hampered wider use.
But today, truck manufacturers are embracing natural gas for everything from bi-fuel pickup trucks like the Chevy Silverado HD to eighteen-wheelers that can burn natural gas either compressed, called CNG, or super-chilled, called LNG. Navistar International Corp., Cummins Inc. and General Motors Co. all are courting the market with new natural-gas powered trucks or engines.
Navistar's goal is to "expand to a full range of products using natural gas in the next 18 months," says Eric Tech, president of Navistar's engine business. This year, the Illinois company is introducing delivery trucks burning natural gas. Next year, it is adding long-haul trucks with its biggest engines.
Mr. Tech says in a couple of years, one in three Navistar trucks sold will burn natural gas. "This is not a subsidy-driven market," Mr. Tech says. "It's developing on its own because the economics are compelling."
Companies like United Parcel Service Inc. and AT&T Inc. are buying the vehicles. AT&T recently ordered 1,200 Chevrolet Express cargo vans equipped to run on compressed natural gas, which GM said was its largest CNG vehicle order ever.
Ryder Systems began renting out natural gas trucks in California last yea. The response has been so strong Ryder is expanding the program to Michigan and Arizona. And it is introducing them in truck clusters it operates for big box retailers like Staples Inc. and manufacturers including carpet-maker Mohawk Industries Inc.
For years, a barrel of oil cost about as much as six units of natural gas and their prices moved in tandem, notes Don Mason, a gas-industry consultant in Ohio. Today, a barrel of West Texas Intermediate crude costs more than 33 times as much as a unit of natural gas in the U.S. At the pump, a gallon of diesel often costs more than twice as much as CNG, on a diesel-gallon-equivalent basis.
"I think we're at a turning point, even if it's a slow, wide turn," Mr. Mason says.
Although the U.S. has loads of natural gas, adoption of natural gas vehicles has been spotty. Less than 0.1% of vehicles on American roads burn the fuel today and that number sagged from 2005 to 2010, when federal policies encouraging their use waned. The number began edging up last year, lifted by market forces.
Many people are trying to figure out whether natural gas really has legs as a transportation fuel. Greg Burns, chairman and chief executive of PLS Logistics Services Inc. in Pittsburgh decided this year to ask 100 trucking company executives. Nearly a third said they were actively researching it for their own companies. But 54% said current infrastructure is inadequate and 23% worried about the higher cost of the trucks.
Mr. Burns' conclusion: "If you have a long-enough time frame, it's a pretty bullish picture."
Some truckers soon will have the ability to hedge their bets. That is because the Environmental Protection Agency recently approved retrofit technology for big rigs that lets them burn LNG and diesel.
The potential market is enormous. The 3.2 million big rigs on U.S. roads today burn some 25 billion gallons of diesel annually. Almost 7 million single-unit trucks, such as UPS or FedEx Corp. trucks, consume another 10 billion gallons of diesel.
Converting even a modest number of these trucks, which often get 5 to 8 miles a gallon, to natural gas could save significant amounts of money. Tailpipe emissions also would drop, since natural gas burns cleaner than diesel or gasoline.
Noel Perry, principal at Transport Fundamentals Inc., a trucking research company, says one disadvantage of natural gas is that it isn't as dense as diesel. CNG is only 25% as dense and LNG is 60% as dense. That means trucks need more tanks or bigger tanks to go as far, or they must refuel more often.
Ann Duignan, managing director at J.P. Morgan Equity Research, expects fastest adoption among fleets that can run on CNG and return home each night but is skeptical about long-haul trucking. "It will be slow, steady, one-fleet-at-a-time type growth," she says.
A friend at work says he believes this stock is fixing to make a run. I really think he is going off prior experience of the stock and not the performance of the company. Does anyone else out there think this is a good investment at this time?
Fuel Systems Solutions misses by $0.08, beats on revs; guides FY12 revs in-line
6:33 AM ET 3/8/12 | Briefing.com
Reports Q4 (Dec) earnings of $0.07 per share, $0.08 worse than the Capital IQ Consensus Estimate of $0.15; revenues rose 33.6% year/year to $111 mln vs the $97.93 mln consensus. Co issues in-line guidance for FY12, sees FY12 revs of $420-440 mln vs. $437.30 mln Capital IQ Consensus Estimate. Co sees FY12 gross margin of 23% to 25%, and 2012 operating margin of 3% to 5%. "We continued to compete effectively in European transportation markets while investing in key Latin American and Asian geographies that are experiencing accelerated growth. We also began generating revenue in our US Automotive business, including the delivery of one of the largest-ever orders for GM CNG-dedicated cargo vans, and our industrial and auxiliary power units (APU) markets continued to grow as these customers' businesses recover further."
Government Pushes Natural Gas -- Chesapeake Energy and Westport Innovations
Poised to Benefit
The Paragon Report Provides Equity Research on Chesapeake Energy & Westport
Innovations
NEW YORK, NY, Mar 07, 2012 (MARKETWIRE via COMTEX) -- Natural gas prices are
bordering on decade low levels this week as above normal temperatures across the
nation push usage down. The dramatic drop in natural gas prices, combined with
the United States' abundant supplies has prompted fuel switching by utilities
away from coal into cheaper gas. Moreover, the large supply of natural gas has
prompted the government to consider boosting exports of liquefied natural gas.
The Paragon Report examines investing opportunities in the natural gas market and
provides equity research on Chesapeake Energy Corporation (CHK) and Westport
Innovations, Inc. (WPRT)(CA:WPT). Access to the full company reports can be found
at:
http://www.paragonreport.com/CHKhttp://www.paragonreport.com/WPRT
Last month, Energy Secretary Steven Chu said that the U.S. Energy Department will
not make a decision on future liquefied natural gas exports until it has weighed
the potential consequences of sending U.S. gas abroad. Chu explained that there
was concern that exporting the nation's surplus natural gas could lead to higher
prices, but that had to be balanced against the economic benefits of increasing
the U.S. exports.
Louisiana state Economic Development Secretary Stephen Moret says that --
provided natural gas prices remain low, but not too low -- Louisiana will see
tens of billions invested in petrochemical plants and LNG export terminals and
also thousands of construction and permanent jobs that accompany them.
The Paragon Report provides investors with an excellent first step in their due
diligence by providing daily trading ideas, and consolidating the public
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access to our numerous stock reports and industry newsletters
Earlier this month, Senator Jeff Bingaman, and chairman of the Energy and Natural
Resources Committee, introduced a measure to force electricity companies to use
an increasing share of energy produced from "clean" sources over the next two
decades. Bloomberg reports that natural gas, which already is edging aside coal
in American electricity generation, would be one of the biggest beneficiaries of
a clean-energy mandate.
"The obvious goal is to expand it beyond renewables in order to get enough
votes," said Dan Simmons, director of regulatory and state affairs at the
Institute for Energy Research in Washington, a group critical of the legislation.
"By including natural gas, it's a way to broaden support."
The Paragon Report has not been compensated by any of the above-mentioned
publicly traded companies. Paragon Report is compensated by other third party
organizations for advertising services. We act as an independent research portal
and are aware that all investment entails inherent risks. Please view the full
disclaimer at http://www.paragonreport.com/disclaimer
SOURCE: Paragon Financial Limited
Copyright 2012 Marketwire, Inc., All rights reserved.
Re: WPRT x FSYS...
Stemcell, in that you have been an active participant on the Westport board (#board-13284), do you have any thoughts as to what WPRT plans to do with the approximately $275M it raised from last week’s share offering (#msg-72390903).
The reason I ask is that Westporter2010 has been speculating on the yahoo message board (YMB) that WPRT might acquire FSYS; a speculation shared by Sandyeggojake (per a Jan 24 YMB post). Westporter2010’s thesis is based largely on the following three observations:
1) WPRT’s stock has strongly outperformed that of FSYS during the past two years resulting in a large discrepancy in the valuations. As stated by Westporter2010 in a Jan 31, 2012 YMB entry:
Natural Gas: The Industry That Could Save America
By Brian Stoffel, The Motley Fool
Posted 6:30AM 02/24/12 Energy, Economy
Make no mistake about it: the American economy is in the throes of the longest, most protracted recovery since the Great Depression. But there is an industry offering a beacon of hope, and it could soon serve as the tipping point that gets America back to work: natural gas.
With the onset of new technologies to get to natural gas, this once-underappreciated commodity is now viewed as the key to weaning the U.S. from our heavy oil consumption and crucial to providing energy independence (in as little as 20 years, by some estimates).
As much as "energy independence" has a nice ring to it, even better is what it's going to take to achieve it. Converting the country to natural gas will require lots of hard work -- and lots of workers -- which is exactly what the U.S. needs to pull it out of the unemployment doldrums.
The Case for Conversion
In 2011 the U.S. Energy Information Administration came out with their projections for fuel cost trends during the next 25 years. Consider these estimates, which show the cost for one gallon of petroleum-based fuels as opposed to a gallon-equivalent of natural gas fuels:
Source: U.S. Energy Information Administration, Annual Energy Outlook 2011.
Natural gas assumes 7.9 gallons per 1,000 cubic feet.
As you can see, the advantages of switching to natural gas are clear. So long as a gallon gas equivalent of natural gas costs significantly less than petroleum-based fuels, there will be growing demand for vehicles that run on natural gas.
The switch is already taking place, too: The first industry that's taken the leap of faith on natural gas is trucking.
Westport Innovations (WPRT) designs engines that can run solely on natural gas. Lately, the company has announced a number of joint ventures, partnerships, and orders. The company already has a profitable joint venture with manufacturer Cummins (CMI). And that joint venture just won a contract from trucking giant Navistar (NAV).
While what's happening at Westport, Cummins, and the like is a strong indication that the conversion to natural gas is speeding up significantly, these companies alone can't employ enough Americans to accelerate a recovery.
The jobs -- the big jobs that will put droves of Americans back to work -- will be in infrastructure.
The next great build-out
Right now there are only 1,100 natural gas filling stations in the country. That's less than 1% of the total number of fueling locations nationwide.
Clean Energy Fuels (CLNE) is currently putting enough natural gas stations on the interstate system to support the trucking industry. But it won't be enough once it becomes clear to the broader public that the switchover to natural gas is a smart, cost-effective move.
Other industries will soon follow to keep up with demand. When that happens, construction will need to ramp up on a huge scale to start adding fueling stations throughout the country. That, in turn, will create a bevy of new jobs.
If you don't think that sounds like enough to help jump-start our economy, consider these facts:
•About 40% of jobs lost during the recession came from a contraction in construction -- 2 million directly from construction workers being out of work, and 1.6 million due to those unemployed workers cutting back on spending.
•Even if the natural gas station build-out equates to just 33% of the total number of standard gas stations in America, roughly 39,000 stations would need to be built, providing hundreds of thousands of new jobs to laborers, contractors, and sub-contractors. While 33% is a long way to go from where we are today, if the natural gas revolution gets traction, that's where we're headed.
•This doesn't even touch on the demand for labor from natural gas extractors that's to be expected, or the possibilities of jobs created through the exportation of natural gas.
Obviously, this conversion won't happen overnight. But where there are incentives to switch over to natural gas, developments have been accelerating.
Right now, the chronically unemployed and underemployed can use any good news they can get their hands on. The stars will soon be aligning for these folks, and that should be music to all of our ears.
~ Monday! $FSYS ~ Earnings posted, pending or coming soon! In Charts and Links Below!
~ $FSYS ~ Earnings expected on Monday *
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.
http://stockcharts.com/h-sc/ui?s=FSYS&p=D&b=3&g=0&id=p88783918276&a=237480049
http://stockcharts.com/h-sc/ui?s=FSYS&p=W&b=3&g=0&id=p54550695994
~ Google Finance: http://www.google.com/finance?q=FSYS
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=FSYS#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=FSYS+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=FSYS
Finviz: http://finviz.com/quote.ashx?t=FSYS
~ BusyStock: http://busystock.com/i.php?s=FSYS&v=2
<<<<<< http://www.earningswhispers.com/stocks.asp?symbol=FSYS >>>>>>
http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916
*If the earnings date is in error please ignore error. I do my best.
$8.9M of FSYS bought by Kevin Douglas between 02/07/2012 - 02/09/2012
Jason Zucchetto February 9, 2012FSYS
SANTA ANA, CA — Kevin Douglas purchased 375,500 shares of Fuel Systems Solutions, Inc stock, or $8,918,709 worth, as noted in an SEC Filing today. As reported in the filing, the transactions occurred between February 7, 2012 - February 9, 2012.
After the transaction, Kevin Douglas's stake was reported as 939,438 shares of Fuel Systems Solutions, Inc stock (a 66% increase from before the transaction took place).
As noted on February 9, 2012, Kevin Douglas's purchase was done partially through "By James E. Douglas III" over 12 transactions from February 7, 2012 to February 9, 2012. The share price ranged from $23.56 to $24.2 according to the regulatory filing detailing the transactions.
If we look over the past 12 months, Kevin Douglas has sold no shares of Fuel Systems Solutions, Inc stock. Over the same time period, Kevin Douglas has purchased 375,500 shares of Fuel Systems Solutions, Inc, with a total cost of $8,918,709.
Let's take a quick, high-level look at insider trading at Fuel Systems Solutions, Inc over the past 12 months. No shares of Fuel Systems Solutions, Inc stock were sold by company insiders. Over the same time 12 month time period, 375,500 shares of Fuel Systems Solutions, Inc, for a total value of $8,918,709 were purchased by company insiders.
In addition to Kevin Douglas's role with Fuel Systems Solutions, Inc, Kevin Douglas has affiliations with 8 other companies. Kevin Douglas's affiliations include American Superconductor Corp /de/, Enteromedics Inc, Monster Beverage Corp, Imax Corp, Rural Cellular Corp, Stamps.com Inc, Westport Innovations Inc, Friendly Ice Cream Corp, Fuel Systems Solutions, Inc .
Re AT&T’s order for 1200 GM CNG Vans....
Marthambles: Given today’s action, it looks like the news you posted regarding AT&T’s recent order from GM has resonated positively with Obama’s State of the Union nod towards natural gas.
In the flurry of news releases regarding this purchase, the item that I found interesting was GM’s statement that they have produced over 16,000 CNG vehicles to date (although I’m not sure what reference date is implied).
That number is consistent with Matthew Beale’s statement in the Q3 FSYS CC on Nov 9, 2011 that they are ramping for a four digit production of GM units.
========
References:
http://www.trucktrend.com/features/news/2012/163_news120130_1200_cng_chevy_express_att_fleet/index.html
Courtesy of Flashopportunity over on the YMB
AT&T Inc. plans to take delivery of 1,200 compressed natural gas-powered cargo vans in what is being called the largest order of CNG vehicles from General Motors .
Dallas-based AT&T (NYSE: T) will deploy the Chevrolet Express natural gas vehicles to services centers around the nation.
AT&T earlier had announced it intended to deploy 15,000 alternative fuel vehicles over a 10-year period through 2018, and last week announced it had deployed the 5,000th vehicle under that plan.
General Motors (NYSE: GM) has a strong north Texas connection as it manufactures SUVs at its plant in Arlington.
http://www.bizjournals.com/dallas/news/2012/01/30/att-buys-1200-cng-powered-vans-from-gm.html?ana=yfcpc
These are outfitted by IMPCO.
MWM, you’re correct ... investors should not ignore FSYS’ industrial subdivisions, in particular the compressor lines (given the possibilty of increased interest in US CNG service stations).
Pietro Bersani (FSYS CFO) highlighted a few aspects of the industrial side in his recent presentation at the Needham Conference on Jan 12, 2012.
In particular,
1) FSYS’ industrial division accounted for approximately 27% of the Q3 2011 revenues.
2) FSYS’ auxiliary power units are generating strong margins.
3) FSYS' BRC & FuelMaker compressor business represents 5-7% of revenues. These compressors serve the three main categories of compressors:
a) large compressors for gas stations
b) mid-sized compressors for commercial fleets
c) small compressors for home use (i.e. the Phill)
Note that Mansfield Gas Equipment Systems is a US dealer for the BRC FuelMaker Compressors. (see: http://www.cngfuelsystems.com/ )
--------
The actual quotes from the presentation are:
Musing on Message Board activity...
Activity on the iHub FSYS board has always been anemic. There is nothing notable about the current inactivity.
The Yahoo FSYS board activity, however, has significantly slowed over the past year.
With regard to message board activity, my experiences have resonated with those of Ilpapa and Superfly15 as expressed on the Biotech Values board (#board-1418); i.e.
I had thought that the differential between natural gas and gasoline/diesel would be the long-term driver of FSYS share price.... But, it appears that perceptions concerning the strength of the European Union, and of Italy in particular, is determining the price investors are willing to pay for FSYS.
Re Nat Gas Act...
Johnsyn has provided a copy of an article by Nick Snow concerning current discussions of the Natural Gas Act (HR1380) in the US House Ways and Means Committee sub committees (dated Sept 23, 2011). see #msg-67432808.
The testimony upon which this article is based can be found at: http://waysandmeans.house.gov/Calendar/EventSingle.aspx?EventID=260256
The Nat Gas Act would be a great boon to FSYS, but to quote the Snow’s article “Members of the two subcommittees said that justifying subsidies of any kind has grown difficult amid growing calls to simplify the federal tax code.”
FSYS’s view regarding the timing of Nat Gas Act legislation was probably reflected by Pietro Bersani (FSYS CFO) in the Q&A of the Sept 14 2011 Think Equity Growth Conference; i.e.
GM plans to introduce bi-fuel engines soon...
In an interview with Fareed Zakaria yesterday, GM’s CEO, Dan Akerson, stated that GM will be soon introducing bi-fuel (CNG/gasoline) engines (presumably for retail customers)... This plays to FSYS’s strength and I am very encouraged by the revelation.... Note, however, that Landi Renzo’s US subsidiary (BayTech) also offers certified engines for GM vehicles.... so, it is not clear how much direct GM business FSYS will get.
See: http://globalpublicsquare.blogs.cnn.com/2011/07/31/this-week-on-gps-imf-chief-christine-lagarde-and-gm-ceo-dan-akerson/ at about 15 minutes into the July 31, 2011 (02:20 pm ET) interview...
Theft Protection – A Rationale for CNG...
The economic rationale for conversion from gasoline to compressed natural gas is clear.
Prior to reading the article referenced below, however, I had not considered the issue of theft. Theft of gasoline might be a problem in some parts of the world.... I know that as a kid I put a lock cap on my gas tank to prevent such theft.... I suspect that CNG would be much harder to steal from an individual’s car.
http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/premium-car-buyers-now-queue-up-for-cng-kits/articleshow/9291380.cms
This is a MUST WATCH Video!
Little gains every day, I'll take them.
Looks like we may have our reversal here.
Not seeing any news though so I'm not sure what's driving it.
4% pop today but I don't see any news.
This is driving me nuts, I would have thought that, if anything, we'd have trended down after the unexpected petroleum reserve release.
Re: hope for rebound...
I don’t see any near term catalysts... hopefully I’m wrong.
The good news that we have had in the past month has not had a positive impact on share prices. Three such news items are listed below... Admittedly, these are incremental advances. But they do represent progress in the right direction.... The one big item on the table, the Nat Gas Act, is unlikely to be signed into law this year, in my opinion. However, news regarding its progress through the legislative process might cause the volatility that day traders seek.
=====
2011-05-31 http://fleetowner.com/green/archive/impco-cng-systems-carb-0531/
Impco Automotive has announced that its dedicated compressed natural gas (CNG) fuel systems for Ford and General Motors vehicles have received California Air Resources Board (CARB) certification. The dedicated CNG systems can be installed on the following 2011 vehicles:
Ford E-150/250 trucks and E-250 E-Series vans with 5.4L V8 engine
Ford E-450 E-Series cutaway cab-chassis with 6.8L 2v V8 engines
Ford F-450/550 Super Duty trucks with 6.8L 3v V8 engines
GMC/Chevrolet 2500/3500 Express/Savana vans with 4.8L and 6.0L V8 engines
General Motors 4.8L V8 engine for heavy-duty applications rated for 10,001-14,000 lbs GVW
General Motors 6.0L V8 engine for heavy-duty applications rated over 14,000 lbs. GVW
=====
2011-06-06 http://www.annarbor.com/autos/gm-talks-up-plans-to-invest-in-advanced-propulsion-systems/
General Motors Co. has plans for a commercial truck with a bifuel engine that can run on compressed natural gas or gasoline — part of longer-range plans to focus on advanced propulsion systems, the Detroit News reported today
=====
2011-06-14 http://www.journalgazette.net/article/20110614/LOCAL/306149971
A fueling infrastructure and equipment plan under way at the Indiana Department of Transportation should save Indiana taxpayers about $1 million, Lt. Gov. Becky Skillman said Monday.....
Productive Concepts Inc. in Union City is converting the state-owned vehicles, Skillman said. Manchester Tank & Equipment Co., with offices in Bedford and Elkhart, will supply the tanks....
A $6.3 million federal American Recovery and Reinvestment Act grant through the Indiana Office of Energy Development and Greater Indiana Clean Cities help funds the INDOT infrastructure and vehicle conversion..... The state will convert 645 vehicles this year, said Joe Rudolph, INDOT’s technical service director. Those vehicles include pickup trucks used for construction sites, double-cab pickups used to transport workers and tools, cargo vans used for survey crews and signal technicians, dump trucks and even lawn mowers.
It costs $5,500 to $7,200 to convert each vehicle, Rudolph said, but the department will easily recover those costs in gasoline savings over the life of the vehicle.The majority of the converted vehicles will operate on propane, while 19 will be converted to use CNG as part of a pilot program, said INDOT spokesman Will Wingfield. There are four service sites where vehicles can “gas up” in the Fort Wayne area in addition to one in New Haven, Wingfield said. The vehicles use conventional gasoline when started, Wingfield said, but as soon as the vehicle warms up, it switches to propane or CNG. If a driver runs out of propane or CNG, the vehicle switches back to using gasoline.
US Lawmakers abandoning HR 1380 ship like rats.
http://fuelfix.com/blog/2011/05/27/lawmakers-drop-support-for-pickens-natural-gas-act/
Just when I think our politicians can't get any worse.. they do.
All that money headed over to oil producing states, you think the people working in the oil production industries over there pay US income tax? What about all of the support businesses?
You want to raise the gross amount of tax revenues, increase the tax base! Keep the energy production here at home!
Catalysts for FSYS growth in North America...
In the Q&A of the May 5th Q1 2011 CC, Mark Sigal of Canaccord Genuity asked for a list of milestones that might be used to track progression of the North American Transportation business.
Matthew Beale listed the following:
1. new OEM models that support fleet CNG applications
2. emergence of an OEM bi-fuel application either for a van, pick up, or sedan
3. passage if the Natural Gas Act
Of the three listed, I believe that the 2nd is the most important for FSYS.
Relevant CC quotes are:
EPA Regulations....
The EPA has streamlined its regulations for certifying conversion of diesel and gasoline engines to CNG/LPG (to take effect upon publication in the Federal Register) (see: http://www.epa.gov/otaq/consumer/fuels/altfuels/altfuels.htm#fr ).
I can’t predict whether this streamlining of EPA regulations helps FSYS or its competitors more. In any event, a change that results in a greater number of CNG/LPG conversions in the US is likely to be beneficial to FSYS’ stock price since it will fuel expectations for near term growth in the cng/lpg vehicular market.
FSYS incurs significant research and development costs to ensure compliance with EPA and California Air Resources Board (CARB) certification requirements. Currently, FSYS is investing heavily in a U.S.-focused R&D facility in Sterling Heights, Michigan. According to the Q4 2010 CC of March 3, 2011, this investment “gets into seven digits”, i.e. millions of dollars. Much of their 2010 CapEx spending ($29M) was for an analogous facility in Italy. I believe that most of FSYS’s research and development expenses are focused upon meeting certification standards.
The new regulations, testing and compliance procedures differ based on the age category of the vehicle or engine that is converted. EPA expects the streamlined approach to result in a cost savings for many converters.
The demonstration and notification requirements for new and relatively new vehicles and engines will continue to involve a certification process that is very similar to previous practice. Once certified, however, annual recertification will no longer be required to maintain the tampering exemption. The new regulations introduce some important flexibilities that will be available to most manufacturers of new vehicle/engine conversion systems. Importantly, manufacturers may apply a single set of test data to a broader set of candidate vehicles and engines. And, a certified conversion system retains its tampering exemption even after the certificate expires; annual re-certification is no longer required.
The notification and demonstration requirements for intermediate age vehicles and engines include testing and submission of data to show that the converted vehicle or engine continues to meet applicable standards.
The notification and demonstration process for outside useful life vehicles and engines involves submission of a description of the conversion system that provides sufficient technical detail to determine that the conversion will not increase emissions.
The EPA held a public hearing on the proposed rules in Ann Arbor, Michigan, on June 23, 2010 and a written comment period remained open until July 23, 2010. A summary of these hearing results is provided in a 63 pg report available at the EPA website identified at the beginning of this message. It is interesting reading for those who wish a deeper appreciation of the issues....
You are welcome. As an occasional lurker, I appreciate the thoughtfulness of your posts.
Regards
Thanks for the post Marthambles...
I had heard that Merrill Lynch had come out with a report, but I had not actually seen specific comments.
I tend to agree with ML’s statement that FSYS will not be a big beneficiary of the Nat Gas Act, at least to the extent of WRPT or CLNE.... at least in the near term... However, in the long term (3-5 yrs) FSYS may benefit greatly... i.e. if CNG or LPG gaseous fuel stations become generally available many more people in the US will likely purchase a CNG/LPG passenger car which is FSYS’ forte....
I’m not worried about the so called earnings estimates risk... earnings estimates at CLNE and WRPT are just as risky.... The valuation is expensive, but again, the valuation of CLNE and WRPT are worse.
I also agree with ML that Landi Renzo is a respectable competitor... Its relationship with Fiat is hard to beat... But it is not a good stock for a US investor (in my opinion).... Pink Sheet companies such as LDRZF do not have the reporting requirements, etc. that FSYS must adhere to... I cannot find anything about LDRZF on the SEC site (although that might reflect my ignorance)... and, when I look at their webpage, the most recent annual report that I see is a year old (see: http://www.landi.it/eng/# ).
Merrill Lynch comments:
Reit. Underperform as the least exposed gains the most We are reiterating our Underperform rating and $23 price objective since we see the recent run-up as an opportunity to move out of the stock. Since Friday’s close, Fuel Systems has outperformed other nat gas stocks as investors anticipate re-introduction of the Nat Gas Act (see Nat Gas Act Coming but Not a Slam Dunk). We would move out the of the stock because (1) we don’t expect the company to materially benefit if it is passed, (2) earnings estimates remain at risk, and (3) the valuation is expensive, in our view, and significantly stretched relative to Landi Renzo.
Fuel Systems not a big beneficiary of Nat Gas Act
The company is just starting to roll out CNG systems for Chevy’s Express and GMC’s Savana vans at about 40-50 vehicles per week. We think gaining prominence in this category will incent more action from OEMs though we would not expect any material impact to top-line results until 2013. Recall that during the height of Italy’s cash-for-scrap program, BRC shipments topped out at 5,800 vehicles per week. We do not see the company reaching that run-rate anytime soon in the U.S., even with swift passage of the Nat Gas Act. We see other Nat Gat Act related names with U.S. exposure such as Clean Energy (CLNE, C-2-9) and Westport (WPRT, Not Rated) benefitting more from such legislation.
High multiple and big premium to Landi
Despite four quarters of sequential revenue declines, lower profitability, and reduced guidance, Fuel Systems appears expensive at 42x our 2011 EPS estimate of $0.72 and 26x our 2012 estimate of $1.45. The stock also trades at a considerable 180% premium to its closest competitor, Landi Renzo (LDRZF, C-1- 7, EUR2.49), despite Landi’s superior revenue growth and profitability (Chart 1). The trajectory of the company might be turning up, but we see a long and bumpy road ahead as the company transitions.
Demo, thank you. will keep eye on all 3.
Currently long lots of NG: GMXR & MNLU
GLTY
Re: conversion of US trucking Industry to NG....
Chilar, as you say, it may happen that events outside the US force conversion of the trucking industry to NG (or liquid propane)... But, if so, I would expect the stock prices of WPRT or CLNE to be more directly affected than those of FSYS.
With respect to the US market, FSYS seems to be focusing upon fleet vehicles consisting of vans rather than the Class 8 trucks used by the trucking industry.... Indeed, they tout the GM van program as “the flagship or the big milestone program” that they’re working on in the US market.
FSYS does, however, view the heavy-duty truck and bus market as a significant revenue opportunity in Asia (per statements in their 2011-03-03 CC).
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Fuel Systems Solutions, Inc. designs, manufactures, and supplies alternative fuel components and systems for use in the transportation, industrial, and power generation industries worldwide. The company operates through two segments, FSS Automotive and FSS Industrial. Its components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas used in internal combustion engines. The company offers a range of components, systems, and solutions, including fuel delivery products, such as pressure regulators, fuel injectors, and flow control valves and other components designed to control the pressure, flow, and/or metering of gaseous fuels; electronic controls comprising solid-state components and proprietary software that monitor and optimize fuel pressure, and flow to meet manufacturers? engine requirements; and gaseous fueled internal combustion engines that are integrated with its fuel delivery and electronic controls. It also provides systems integration support services to integrate the gaseous fuel storage, fuel delivery, and/or electronic control components and sub-systems; auxiliary power systems for truck and diesel locomotives; and natural gas compressors and refueling systems for light and heavy duty refueling applications. The company sells its transportation products to automobile manufacturers, taxi companies, transit and shuttle bus companies, and delivery fleets; and industrial products to the manufacturers of industrial mobile and power generation equipment, stationary engines, and heavy duty trucks and buses. It offers its products through a network of distributors and dealers, as well as through a sales force network. Fuel Systems Solutions, Inc. was founded in 1958 and is based in New York, New York.
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