VANCOUVER, May 30, 2017 /CNW/ - Grande West
Transportation Group Inc. (TSXV: BUS; OTC PINK: GWTNF) –
May 30, 2017: ("Grande West" or the
"Company"), a Canadian bus manufacturer of heavy-duty mid-sized
transit buses for sale in Canada
and the United States, announced
today financials for the first quarter ending March 31, 2017.
Q1 Highlights
- Record bus and aftermarket parts revenue of $4,548,968
- Record gross profit of $952,392
- Record gross profit margin of 21% (6% at Feb 29, 2016)
- Average Vicinity bus sales price of $350,000 ($291,000
at Feb 29, 2016)
- Adjusted EBITDA loss of $540,079
(EBIDTA less stock based compensation of $271,426)
- Raised $13,680,000 in a budget
deal financing, strengthening balance sheet
- Reduced long term debt by $2,945,135, reducing monthly debt service by
approximately $20,000
Selected Quarterly Information
The following table shows results for the quarter ended
March 31, 2017 and February 28, 2016 stated in Canadian dollars.
|
|
|
3 months ended
March 31, 2017
|
3 months ended,
February 29, 2016
|
|
(unaudited)
|
(unaudited)
|
Revenue – Bus sales
and after-market parts
|
$
|
4,548,968
|
$
|
3,571,313
|
Gross profit
(loss)
|
$
|
952,392
|
$
|
228,516
|
Gross
margin
|
21%
|
6%
|
Net earnings
(loss)
|
$
|
(1,084,865)
|
$
|
(1,030,985)
|
Basic and diluted
earnings (loss) per share
|
$
|
(0.02)
|
$
|
(0.02)
|
|
|
|
Cash and cash
equivalents
|
$
|
6,070,740
|
$
|
1,469,485
|
Working
Capital
|
$
|
13,108,709
|
$
|
641,820
|
Total
Assets
|
$
|
26,958,363
|
$
|
4,774,190
|
Non-current financial
liabilities
|
$
|
2,180,661
|
$
|
118,216
|
During the three month periods ending February 28, 2016 and March 31, 2017, 12 Vicinity buses were delivered
in each period.
Highlights and Developments in 2017
Management reports Q1 2017 results of twelve (12) Vicinity buses
delivered and revenue recognized for revenues of $4,548,968, gross profit of $952,392 and gross profit margin of 21%.
A total of thirty-two (32) buses were received at Company
headquarters during February in Q1, twelve (12) delivered, with the
balance to be delivered to customers in Q2. Production, shipping
and delivery is underway to fulfill the first BC Transit production
run for fifty-five (55) of ninety seven (97) Vicinity buses.
Our production and delivery ramp is now tracking contracts
announced in 2016.
- In January, Grande West began
offering clean burning, low emission Cummins ISB G engines for
delivery on 2017 orders. The ISB G Engine, powered by compressed
natural gas (CNG) has the lowest North American Emissions
standards. Thirteen (13) of these buses are being delivered to the
Atlanta International Airport in
Q3 2017.
- In January, BC Transit ordered thirty nine (39) Vicinity buses
totalling approximately $13 million.
This is in addition to BC Transit's previous orders for fifty eight
(58) buses, bringing their total current outstanding orders up to
ninety seven (97).
- Also in January, the City of
Edmonton ordered thirty three (33) Vicinity buses totalling
approximately $13 million. This is
the third order from the City since September 2016, bringing their total firm orders
for Vicinity buses to 49 units.
- In March, Grande West closed a
bought deal offering of common shares of the Company, at a price of
$1.90 per Offered Share for gross
proceeds to the Company of $13,680,000. A total of 7,200,000 Offered Shares
were sold pursuant to the Offering, including 870,000 Offered
Shares issued as a result of the full exercise of the Underwriters'
over-allotment option. The Offering was conducted by a syndicate of
underwriters led by Beacon Securities Limited and including Echelon
Wealth Partners Inc.
- On March 14, the Company
appointed Taras Kindzersky to the position of Chief Operating
Officer to assist management with the Company's continued growth.
Mr. Kindzersky has over 20 years of business experience working at
a variety of large corporations, specifically Finning Canada, a
division of Finning International Inc., the world's largest
Caterpillar equipment dealer. He joins Grande West from one of the 20 largest credit
unions in Canada where he led the
business banking division as Executive Vice-President, Business
Banking. In his first month, Taras is already making a significant
impact in organizational efficiencies, banking relationships and
process flows.
- Also in March, Grande West
received new customer orders for approximately $7.5 million. St. John's Transportation
Commission ordered three (3) Vicinity buses, the City of Oakville has ordered an additional
eight (8), the City of Burlington
has ordered an additional seven (7) and the City of Welland ordered two (2).
- On March 27, the Company
announced its first US public transit order from the Metropolitan
Atlanta Rapid Transit Authority ("MARTA"). Grande West's exclusive US distributor Alliance
Bus Group ("ABG") has delivered to MARTA ten (10) Vicinity buses
that are now in operation in their transit system.
"We are committed to creating more efficient transportation options
for our customers. That means building a more highly layered,
customized service model," said MARTA GM/CEO Keith Parker. ''These new Vicinity vehicles
allow our bus operators to travel safely into neighbourhoods where
our standard fleet could not easily navigate while offering more
space than our current Mobility bus options."
- Again in March, Grande West
announced it had secured a USA
manufacturing facility. Alliance Bus Group, Grande West's exclusive US distributor, will
produce Buy America compliant Vicinity buses for sale to US transit
authorities. The ability to leverage ABG existing facilities,
staff, and deep knowledge of bus technology provides Grande West with a solid foundation upon which
it can quickly ramp to production. Plans are well underway and
first Buy America compliant production will begin in Q3 of
2017.
- On April 28th, the Series A and B
Convertible Debentures were accelerated and converted $1,520,000 in debt. 2,235,294 common shares were
issued at a price of $0.68 to settle
the debentures resulting in a reduction of $120,000 per year in debt service.
- On May 23, new orders for nine
(9) Vicinity buses was announced for a combined order total of
approximately $4.5 million. Hamilton
Street Railway ("HSR") has ordered five (5) compressed natural gas
("CNG") Vicinity buses. This is a first time order for HSR for
delivery in the first quarter of 2018. The City of Moose Jaw also ordered an additional
four (4) Vicinity buses.
Backlog: Current total firm orders for Q2 2017 through 1H
2018 delivery are for two hundred sixty five (265) buses
valued at over $96 million CAD.
2017 Q1 Deliveries to date are for twelve (12) buses.
Additional information about current operations, production and
Buy America production plans can be located in this quarter's
Management's Discussion and Analysis under Recent Highlights and
Developments.
A conference call to discuss these results will be held today at
11:00 AM EST. The call-in number is
(866) 215-5508 or (514) 841-2157 and can be accessed by entering
passcode 44958431. A recording of the call will be available on the
website the following day at
http://www.grandewest.com/investors/videocentre.
About Grande West Transportation Group
Grande West Transportation Group is a Canadian bus manufacturer
which designs, engineers and manufactures mid-size buses for
transit authorities and commercial enterprises. Grande West's Best-in-Class rated Vicinity bus
is available in 30' and 35' models designed with affordability,
accessibility and global responsibility in mind. It costs
significantly less than a regular 40 foot transit bus, burns less
fuel and emits less harmful emissions.
The Company has been successful in supplying Canadian municipal
transportation agencies and private operators with new buses and is
receiving follow-on orders in many Canadian transit agencies.
Grande West is Buy America
compliant, and along with ABG, its exclusive US distributor, has
sold Vicinity buses to US–based public and private operators and is
actively pursuing more opportunities throughout the US.
Grande West
Transportation
John
LaGourgue
Ph: 1-604-607-4000
jlagourgue@grandewest.com
www.grandewest.com
Paradox Public Relations
Karl
Mansour
Ph: 866-460-0408
karlmansour@paradox-pr.ca
www.paradox-pr.ca
Neither the TSX-V nor its Regulation Service Provider (as that
term is defined in the policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking
Statements
This press release includes certain "forward-looking
information" and "forward-looking statements" (collectively
"forward-looking statements") within the meaning of applicable
Canadian securities legislation. All statements, other than
statements of historical fact, included herein, including without
limitation, statements regarding the use of proceeds from the
Private Placement, are forward-looking statements. Forward-looking
statements are frequently, but not always, identified by words such
as "expects", "anticipates", "believes", "intends", "estimates",
"potential", "possible", and similar expressions, or statements
that events, conditions, or results "will", "may", "could", or
"should" occur or be achieved. Forward-looking statements involve
various risks and uncertainties. There can be no assurance that
such statements will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such statements.
Important factors that could cause actual results to differ
materially from Grande West's
expectations include uncertainties relating to the receipt of final
approval from the TSX-V; and other risk and uncertainties disclosed
in Grande West's reports and
documents filed with applicable securities regulatory authorities
from time to time. Grande West's
forward-looking statements reflect the beliefs, opinions and
projections on the date the statements are made. Grande West assumes no obligation to update the
forward-looking statements or beliefs, opinions, projections, or
other factors, should they change, except as required by
law.
SOURCE Grande West Transportation Group Inc.