• Consolidated revenues for the quarter ended March 31, 2019 increased by $9.4 million to $73.2 million, or 15% over the same period last year. Despite the 7% decrease in the average Euro exchange rate, revenue increased by $0.9 million in the IAM business and $8.5 million in the OEM business. The OEM business increase was primarily driven by HPDI 2.0™ product revenue, which was commercially launched in 2018.
  
  
• Consolidated gross margin for the quarter ended March 31, 2019 increased by $2.6 million to $17.2 million, or 18% over the same period last year. The increase in gross margin  is due to higher revenue. Our gross margin percentage was consistent with the prior year quarter.
  
  
• Consolidated operating expenses for the quarter ended March 31, 2019 increased by $0.2 million to $25.9 million, or 1%. Excluding the increase in SEC investigation related legal fees, operating expenses would have decreased by $0.9 million.
  
  
• Income from the unconsolidated joint ventures for the quarter ended March 31, 2019 increased by $7.2 million over the same period last year. This improvement is primarily due to the fact that Q1 2018 sales were negatively impacted by pre-buy activities in Q4 2017 in advance of the Cummins Westport 2018 on-board diagnostics ("OBD") compliant engines and vehicle readiness activities required by OEMs to integrate the new OBD compliant engines in early 2018.

• CWI revenue for the quarter ended March 31, 2019 increased by $40.1 million to $92.3 million, or 77% over the same period last year.
  
  
• CWI launched its new line of OBD-compliant, ultra-low NOx engines starting on January 1 2018 and there was a pre-buy of the prior generation engines in Q4 2017 which resulted in lower sales in Q1 2018.  So, the 77% year over year growth in Q1 2019 results from some timing factors.  A more representative comparison is that CWI revenue for the 12 months ended March 31, 2019 was $360 million compared to $299 million in the 12 months ended March 31, 2018, which is 20% growth on an annualized basis.
  
  
• CWI gross margin for the quarter ended March 31, 2019 increased by $14.6 million to $27.8 million, or 30% of revenue from $13.2 million or 25% of revenue in the prior year quarter, primarily due to increased revenues in the current quarter and the lower revenues in CWI's Q1 2018, as previously explained.
  
  
• CWI operating income for the quarter ended March 31, 2019 increased by $16.7 million to $19.7 million, or 557% over the same period last year. Westport Fuel Systems' share of CWI's equity interest for the quarter ended March 31, 2019 increased by $7.1 million to $8.6 million from $1.5 million in same period last year. This reduction is primarily due to increased revenue and gross margins and from the lower operating expenses driven by a reduction in research and development expenses.

Management reviews the operational progress of its business units and investment programs over successive periods through the analysis of net income, EBITDA and Adjusted EBITDA. The Company defines EBITDA as net income or loss from continuing operations before income taxes adjusted for interest expense (net), depreciation and amortization. Westport Fuel Systems defines Adjusted EBITDA as EBITDA from continuing operations excluding expenses for stock-based compensation, unrealized foreign exchange gain or loss, and non-cash and other adjustments. Management uses Adjusted EBITDA as a long-term indicator of operational performance since it ties closely to the business units' ability to generate sustained cash flow and such information may not be appropriate for other purposes.  Adjusted EBITDA includes the company's share of income from joint ventures.

The term Adjusted EBITDA is not defined under U.S. generally accepted accounting principles ("U.S. GAAP") and is not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Adjusted EBITDA has limitations as an analytical tool, and when assessing the company's operating performance, investors should not consider Adjusted EBITDA in isolation, or as a substitute for net loss or other consolidated statement of operations data prepared in accordance with U.S. GAAP. Among other things, Adjusted EBITDA does not reflect the company's actual cash expenditures. Other companies may calculate similar measures differently than Westport Fuel Systems, limiting their usefulness as comparative tools. The company compensates for these limitations by relying primarily on its U.S. GAAP results and using Adjusted EBITDA as supplemental information.

Westport Fuel Systems has scheduled a conference call for today, May 9, 2019 at 4:30 pm Eastern Time to discuss these results.  The public is invited to listen to the conference call in real time by telephone or webcast. To access the conference call by telephone, please dial: 1-800-319-4610 (Canada & USA toll-free) or 604-638-5340. The live webcast of the conference call can be accessed through the Westport Fuel Systems website at http://www.wfsinc.com/investors/financials.

At Westport Fuel Systems, we are driving innovation to power a cleaner tomorrow. We are inventors, engineers, manufacturers and suppliers of advanced clean fuel systems and components that can change the way the world moves. Our technology delivers performance, fuel efficiency and environmental benefits to address the challenges of global climate change and urban air quality. Headquartered in Vancouver, Canada, we serve our customers in more than 70 countries with leading global transportation brands. At Westport Fuel Systems, we think ahead. For more information, visit www.wfsinc.com.

This press release contains forward-looking statements, including statements regarding the future growth of Westport Fuel System's business, commercial launch of Westport HPDI 2.0™ in China, future volume growth and cost reductions and additions of new OEM customers along with statements regarding revenue, adjusted EBITDA and cash usage expectations, continued research and development investment, the demand for our products, cash and capital requirements as well as Westport Fuel Systems management's response to any of the aforementioned factors. These statements are neither promises nor guarantees but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance or achievements expressed in or implied by these forward looking statements. These risks, uncertainties and assumptions include those related to our revenue growth, operating results, industry and products, the general economy, conditions of and access to the capital and debt markets, solvency, governmental policies and regulation, technology innovations, fluctuations in foreign exchange rates, operating expenses, continued reduction in research and development expenses, CWI performance, our ability to secure new customers, the availability and price of natural gas, global government stimulus packages, the acceptance of and shift to natural gas vehicles, the inability of fleets to access capital or government funding to purchase natural gas vehicles, the development of competing technologies, our ability to adequately develop and deploy our technology, the actions and determinations of our joint venture and development partners, as well as other risk factors and assumptions that may affect our actual results, performance or achievements or financial position discussed in our most recent Annual Information Form and other filings with securities regulators. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in these forward looking statements except as required by National Instrument 51-102. The contents of any website, RSS feed or twitter account referenced in this press release are not incorporated by reference herein.