WINNIPEG,
Feb. 8, 2013 /CNW/ - (TSX:NFI;
TSX:NFI.DB.U) New Flyer Industries Inc. ("New Flyer" or the
"Company"), the leading manufacturer of heavy-duty transit buses in
Canada and the United States, provides an update
regarding financial performance for the fourth quarter of 2012 ("Q4
2012") and an update on recent order activity.
In the Company's third quarter earnings release
issued on November 12, 2012,
management advised that anticipated Adjusted EBITDA for Q4 2012 was
expected to be stronger than the Adjusted EBITDA realized in the
third quarter of 2012 ("Q3 2012"). Although the Company has
not yet completed the preparation of its financial results for the
year ended December 30, 2012, based
on the information available to date, management now believes that
Adjusted EBITDA for Q4 2012 will be approximately equal to Adjusted
EBITDA of Q3 2012. This is primarily the result of an
unanticipated delay in deliveries under a contract due to a
supplier quality issue which is in the process of being rectified,
a delay in deliveries from the previously announced deferred award
and production of 90 60-foot Xcelsior buses (180 equivalent units
or "EUs") under the New York City Transit Authority contract and
additional provisions in warranty reserve. Final year-end
results may vary from management's current expectations referred to
in this release as the Company completes its year-end accounting
process and audit, including its assessment of the tax
provision. The Company will announce definitive results and
issue its financial statements for the year ended December 30, 2012 on or prior to March 31, 2013.
On January 9,
2013, New Flyer issued its quarterly order and backlog
update for Q4 2012, with a total backlog comprised of 6,325 EUs,
having a total value of $2.67
billion.
- The total backlog at that date included firm orders received
from five customers in Q4 2012 for 509 EUs, but approval from the
customer to issue press releases had not yet been granted.
The Company has since received customer approval to issue the
details regarding these orders and press releases have been issued
for the following customers: San
Diego, Baltimore,
Orange County, New York and
Milwaukee.
- Firm orders and options totaling 801 EUs were pending from a
number of customers where approval had been granted by the
customer's board, council, or commission, as applicable, but
purchase documentation had not yet been received by New Flyer and
therefore not included in the backlog. Purchase documentation
has since been received from Birmingham for a total of 50 EUs of
the 801 EUs and a press release has been issued.
So far in 2013, new contract awards of 1,009 EUs
(consisting of 659 firm orders and 350 options) have been received
by New Flyer from the following customers: Los Angeles, Rochester, Phoenix and Edmonton. New Flyer issued a press
release regarding the Los Angeles
award on February 7, 2012.
Management continues to expect that the total
backlog, combined with the recent order intake, will allow New
Flyer to maintain an average weekly line entry production rate of
approximately 36 EUs for fiscal 2013. Management also believes the
current dividend rate is sustainable. New Flyer has now paid
dividends to shareholders for 88 consecutive months since the
Company's initial public offering in August
2005.
NOTE: All dollar amounts are stated in US
currency based on an exchange rate of US $1.00 = CAD $0.9965
to calculate the value of the Canadian contracts in this
release.
About New Flyer
New Flyer is the leading manufacturer of
heavy-duty transit buses in Canada
and the United States. The
Company's three manufacturing facilities - in Winnipeg, MB; St.
Cloud, MN and Crookston, MN
- are all ISO 9001, ISO 14001 and OHSAS 18001 certified. The
Company currently operates a parts fabrication facility in
Elkhart, IN and four parts
distribution centers in Winnipeg,
MB; Brampton, ON;
Erlanger, KY and Fresno, CA. The Company also operates a
service center in Arnprior,
ON.
With a skilled workforce of over 2,200
employees, New Flyer is a technology leader, offering the broadest
product line in the industry, including drive systems powered by
clean diesel, LNG, CNG and electric trolley as well as
energy-efficient diesel-electric hybrid vehicles. New Flyer
has delivered over 32,000 heavy-duty buses in Canada and the
United States. All products are supported with an
industry-leading, comprehensive parts and service network.
Further information is available on New Flyer's web site at
www.newflyer.com.
The common shares and convertible unsecured
subordinated debentures of New Flyer are traded on the Toronto
Stock Exchange under the symbols NFI and NFI.DB.U,
respectively.
Non-GAAP Measures
Adjusted EBITDA consists of earnings before
interest, income taxes, depreciation, amortization and other
non-cash charges, adjusted for certain costs related to offerings
and certain other nonrecurring charges as set out in the Company's
management discussion and analysis dated November 12, 2012 ("MD&A"). Management
believes Adjusted EBITDA is a useful measure in evaluating the
performance of the Company. However, Adjusted EBITDA is not a
recognized earnings measure and does not have standardized meanings
prescribed by International Financial Reporting Standards
("IFRS"). Readers of this press release are cautioned that
Adjusted EBITDA should not be construed as an alternative to net
earnings or loss determined in accordance with IFRS as an indicator
of the Company's performance.
Forward-Looking Statements
Certain statements in this press release are
"forward-looking statements", which reflect the expectations of
management regarding the Company's future growth, results of
operations, performance and business prospects and
opportunities. The words "believes", "anticipates", "plans",
"expects", "intends", "projects", "estimates" and similar
expressions are intended to identify forward-looking
statements. These forward-looking statements reflect
management's current expectations regarding future events and
operating performance and speak only as of the date of this press
release. Forward-looking statements involve significant risks
and uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not or the times at or by which such
performance or results will be achieved. A number of factors
could cause actual results to differ materially from the results
discussed in the forward-looking statements. Such differences
may be caused by factors which include, but are not limited to,
competition in the heavy-duty transit bus industry, availability of
funding to the Company's customers to purchase buses and to
exercise options and to purchase parts or services at current
levels or at all, aggressive competition and reduced pricing in the
industry, material losses and costs may be incurred as a result of
product warranty issues, material losses and costs may be incurred
as a result of product liability claims, changes in Canadian or
United States tax legislation, the
Company's success depends on a limited number of key executives who
the Company may not be able to adequately replace in the event that
they leave the Company, the absence of fixed term customer
contracts and the termination of contracts by customers for
convenience, the current U.S. federal "Buy-America" legislation,
certain states' U.S. content bidding preferences and certain
Canadian content purchasing policies may change and/or become more
onerous, production delays may result in liquidated damages under
the Company's contracts with its customers, the Company's ability
to execute its planned production targets as required for current
business and operational needs, currency fluctuations could
adversely affect the Company's financial results or competitive
position in the industry, the Company may not be able to maintain
performance bonds or letters of credit required by its existing
contracts or obtain performance bonds and letters of credit
required for new contracts, third party debt service obligations
may have important consequences to the Company, the covenants
contained in the Company's senior credit facility and the indenture
governing the Company's Debentures could impact the ability of the
Company to fund dividends and take certain other actions, interest
rates could change substantially and materially impact the
Company's profitability, the dependence on limited sources of
supply, the timely supply of materials from suppliers, the
possibility of fluctuations in the market prices of the pension
plan investments and discount rates used in the actuarial
calculations will impact pension expense and funding requirements,
the Company's profitability and performance can be adversely
affected by increases in raw material and component costs, the
availability of labour could have an impact on production levels,
battery-electric propulsion on transit buses is still largely
unproven technology and there is no assurance that such technology
will result in a product desired by customers, prototype buses must
be tested and proven in operating conditions, a commercialized
product must be marketed and sold to potential customers and there
may be no significant demand for an all-electric bus from
customers, the ability of the Company to successfully execute
strategic plans and maintain profitability and risks related to
acquisitions, joint ventures and other strategic relationships with
third parties. The Company cautions that this list of factors
is not exhaustive.
These factors and other risks and uncertainties
are discussed in its press releases and materials filed with the
Canadian securities regulatory authorities and are available on
SEDAR at www.sedar.com.
Although the forward-looking statements
contained in this press release are based upon what management
believes to be reasonable assumptions, investors cannot be assured
that actual results will be consistent with these forward-looking
statements, and the differences may be material. These
forward-looking statements are made as of the date of this press
release and the Company assumes no obligation to update or revise
them to reflect new events or circumstances, except as required by
applicable securities laws.
SOURCE New Flyer Industries Inc.