Summary (U.S. Dollars except as noted):
- Fiscal 2017 Revenue of $2.4
billion increased by 4.7% compared to Fiscal 2016.
- Fiscal 2017 Adjusted EBITDA and net earnings of $318.0 million and $191.4
million increased by 10.0% and 53.2% compared to Fiscal
2016, respectively.
- Fiscal 2017 Earnings per share of $3.06 increased by 45.7% compared to Fiscal
2016.
- Fiscal 2017 Free Cash Flow and dividends declared were
C$206.9 million and C$76.1 million, which decreased by 4.3% and
increased 40.9% compared to Fiscal 2016, respectively. The
Free Cash Flow payout ratio during Fiscal 2017 was 36.8%.
- Total backlog of 12,157 EUs (valued at $6.02 billion) increased 19.3% during Fiscal
2017.
- Total leverage ratio of 1.84 at end of Fiscal 2017 improved
from 1.94 at end of Fiscal 2016.
- Fiscal 2017 return on invested capital of 15.8% increased
compared to 14.3% in Fiscal 2016.
WINNIPEG, March 21, 2018 /CNW/ - New Flyer
Industries Inc. (TSX:NFI) (the "Company"), the largest transit
bus and motor coach manufacturer and parts distributor in
North America, today announced its
results for the 13-week period ended December 31, 2017 ("2017 Q4") and the 52-week
period ended December 31, 2017
("Fiscal 2017"). Full audited financial statements and
Management's Discussion and Analysis (the "MD&A") are available
at the Company's web site at: www.newflyer.com. Unless
otherwise indicated, all monetary amounts in this press release are
expressed in U.S. dollars.
Operating Results
Deliveries
|
2017
Q4
|
2016
Q4
|
%
change
|
2017
Fiscal
|
2016
Fiscal
|
%
change
|
Equivalent units
("EUs")
|
New transit bus,
coach and cutaway
|
1,068
|
993
|
7.6%
|
3,828
|
3,511
|
9.0%
|
Pre-owned
coach
|
146
|
101
|
44.6%
|
410
|
381
|
7.6%
|
Average EU selling
price (U.S. dollars in thousands)
|
|
|
|
|
|
|
New transit bus,
coach and cutaway average selling
price
|
$
|
506.6
|
$
|
530.6
|
(4.5)%
|
$
|
511.8
|
$
|
525.2
|
(2.6)%
|
Pre-owned coach
average selling price
|
137.7
|
98.6
|
39.7%
|
122.9
|
122.3
|
0.5%
|
|
|
|
|
|
|
|
Consolidated
Revenue
|
2017
Q4
|
2016
Q4
|
%
change
|
2017
Fiscal
|
2016
Fiscal
|
%
change
|
(U.S. dollars in
millions)
|
New transit bus,
coach and cutaway
|
$
|
541.1
|
$
|
526.9
|
2.7%
|
$
|
1,959.3
|
$
|
1,844.0
|
6.3%
|
Pre-owned
coach
|
20.1
|
10.0
|
101.0%
|
50.4
|
46.6
|
8.2%
|
Fiberglass
reinforced polymer components
|
2.0
|
—
|
100.0%
|
3.0
|
—
|
100.0%
|
Manufacturing
|
563.2
|
536.9
|
4.9%
|
2,012.7
|
1,890.6
|
6.5%
|
Aftermarket
|
91.4
|
85.7
|
6.7%
|
369.2
|
383.6
|
(3.8)%
|
Total
Revenue
|
$
|
654.6
|
$
|
622.6
|
5.1%
|
$
|
2,381.9
|
$
|
2,274.2
|
4.7%
|
Revenue from manufacturing operations for 2017 Q4 increased 4.9%
compared to the 13-week period ended January
1, 2017 ("2016 Q4"). The increase in 2017 Q4 revenue
primarily resulted from a 7.6% increase in total new transit bus,
motor coach and cutaway deliveries compared to 2016 Q4 deliveries
offset by a 4.5% decrease in the average selling price of new
transit buses, motor coaches and cutaways resulting from a less
favourable sales mix (which now includes cutaways). The suite of
bus products of ARBOC Specialty Vehicles, LLC ("ARBOC") have a
substantially lower selling price than the average heavy-duty
transit bus or motor coach. Revenue from manufacturing
operations for Fiscal 2017 increased 6.5% compared to the 53-week
period ended January 1, 2017 ("Fiscal
2016"). New transit bus, motor coach and cutaway deliveries during
Fiscal 2017 increased 9.0% compared to Fiscal 2016 while the
average selling price of new transit buses, motor coaches and
cutaways per EU in Fiscal 2017 decreased 2.6% compared to Fiscal
2016.
Revenue from aftermarket operations in 2017 Q4 increased 6.7%
compared to 2016 Q4. Revenue from aftermarket operations for Fiscal
2017 decreased 3.8% compared to Fiscal 2016, primarily a result of
customers' reducing inventory levels, customer budgetary
constraints and fleet modernization impacts. The decrease in
Fiscal 2017 aftermarket operations revenue was also impacted by an
extra week in 2016 as compared to 2017. Management also believes
that the increase in new transit bus and motor coach sales to a few
large customers in recent years contributed to increased fleet
replacement, which has had a short term dampening effect on the
aftermarket parts business.
Net
earnings
|
2017
Q4
|
2016
Q4
|
$
change
|
2017
Fiscal
|
2016
Fiscal
|
$
change
|
(U.S. dollars in
millions)
|
Earnings from
operations
|
$
|
71.5
|
$
|
61.2
|
10.3
|
$
|
256.2
|
$
|
216.6
|
39.6
|
Non-cash (loss)
gain
|
(1.2)
|
(1.4)
|
0.2
|
3.4
|
(1.8)
|
5.2
|
Interest (expense)
income
|
(3.2)
|
3.6
|
(6.8)
|
(17.9)
|
(21.0)
|
3.1
|
Income tax
(expense) recovered
|
9.0
|
(21.9)
|
30.9
|
(50.3)
|
(68.9)
|
18.6
|
Net
earnings
|
$
|
76.1
|
$
|
41.5
|
34.6
|
$
|
191.4
|
$
|
124.9
|
66.5
|
Net earnings per
share (basic)
|
$
|
1.21
|
$
|
0.68
|
$
|
0.53
|
$
|
3.06
|
$
|
2.10
|
$
|
0.96
|
Net earnings during 2017 Q4 increased by 83.2% compared to 2016
Q4, primarily as a result of improved earnings from operations and
$27.0 million of income tax net
recoveries as a result of the recent U.S tax reform, partially
offset by an increase interest expense. This resulted in a 77.9%
increase in net earnings per Share in 2017 Q4 compared to 2016 Q4.
Similarly, net earnings for Fiscal 2017 increased by 53.2% and net
earnings per Share increased 45.7%, compared to Fiscal 2016.
The return on invested capital ("ROIC") during Fiscal 2017 of
15.8% increased compared to 14.3% during Fiscal 2016. Management
believes that ROIC is an important ratio and tool that can be used
to assess possible investments against their related earnings and
capital utilization.
Adjusted
EBITDA
|
2017
Q4
|
2016
Q4
|
%
change
|
2017
Fiscal
|
2016
Fiscal
|
%
change
|
(U.S. dollars in
millions)
|
Manufacturing*
|
$
|
74.7
|
$
|
59.4
|
25.8%
|
$
|
246.1
|
$
|
210.1
|
17.1%
|
Aftermarket
|
15.8
|
17.4
|
(9.2)%
|
71.9
|
79.0
|
(9.0)%
|
Total Adjusted
EBITDA
|
$
|
90.5
|
$
|
76.8
|
17.8%
|
$
|
318.0
|
$
|
289.1
|
10.0%
|
|
|
|
|
|
|
|
Adjusted EBITDA %
of revenue
|
|
|
|
|
|
|
Manufacturing*
|
13.2%
|
11.1%
|
2.1%
|
12.2%
|
11.1%
|
1.1%
|
Aftermarket
|
17.3%
|
20.3%
|
(3.0)%
|
19.5%
|
20.6%
|
(1.1)%
|
Total
|
13.5%
|
12.3%
|
1.2%
|
13.3%
|
12.7%
|
0.6%
|
|
* Manufacturing
operation's Adjusted EBITDA includes unallocated corporate overhead
costs.
|
|
|
|
|
|
|
|
Manufacturing
Adjusted EBITDA per new EU delivered
|
2017
Q4
|
2016
Q4
|
$
change
|
2017
Fiscal
|
2016
Fiscal
|
$
change
|
(U.S.
dollars)
|
Manufacturing
Adjusted EBITDA (in millions)
|
$
|
74.7
|
$
|
59.4
|
$
|
15.3
|
$
|
246.1
|
$
|
210.1
|
$
|
36.0
|
New transit bus,
coach and cutaway deliveries (EUs)
|
1,068
|
993
|
75
|
3,828
|
3,511
|
317
|
Manufacturing
Adjusted EBITDA per new EU delivered (in thousands)
|
$
|
69.9
|
$
|
59.8
|
$
|
10.1
|
$
|
64.3
|
$
|
59.8
|
$
|
4.5
|
Adjusted EBITDA increased by 17.8% and 10.0% during 2017 Q4 and
Fiscal 2017 respectively, compared to the 2016 corresponding
periods, primarily as a result of the increase in manufacturing
Adjusted EBITDA which more than offset the decrease in the
aftermarket's Adjusted EBITDA.
Manufacturing Adjusted EBITDA increased primarily as a result of
increased deliveries and improved margins. Contributors to
the increase in margins in the period are due to cost savings
synergies relating to the MCI acquisition and continued cost
reductions achieved through the Company's Operational Excellence
("OpEx") initiatives.
Margins vary significantly between orders due to factors such as
pricing, order size, propulsion system and product type and
components specified by the customer. Management cautions readers
that quarterly Adjusted EBITDA can be volatile and should be
considered over a period of several quarters.
The 2017 Q4 aftermarket operations Adjusted EBITDA decreased
9.2% compared to 2016 Q4, due to higher overhead and SG&A costs
associated with the integration efforts of the New Flyer and MCI
parts businesses into NFI Parts. Higher overheads cost will
continue in 2018 until the parts business combination efforts are
concluded, which ultimately is intended to result in savings from
footprint consolidation, freight savings, management integration
and systems integration. The Company has announced it is closing a
redundant parts distribution center in Hebron, KY in July
2018.
Fiscal 2017 aftermarket Adjusted EBITDA decreased 9.0% compared
to Fiscal 2016 primarily a result of a 3.8% decrease in sales
volumes impacted by fleet modernization and inventory reduction
efforts at major customers and a related 1.1% decrease in Adjusted
EBITDA as a percentage of aftermarket revenue. Fiscal 2017
overhead and SG&A costs were higher due to the planning and
start of the execution of the parts business integration
efforts. The Company is focused on maintaining and enhancing
customer service levels through this transition and is also
actively pursuing different revenue relationships with multiple
customers such as part kits sales and vendor managed inventory
relationships, which should help revenue and margins.
Liquidity
The 2017 Q4 net operating cash inflow of $7.4 million is the result of $50.1 million of net cash earnings offset by an
investment in non-cash working capital of $42.7 million. The net operating cash inflow for
2016 Q4 of $34.6 million resulted
from $58.2 million of net cash
earnings offset by an investment in non-cash working capital of
$23.6 million.
The Fiscal 2017 net operating cash inflow of $172.1 million is the result of $179.1 million of net cash earnings offset by an
investment in non-cash working capital of $7.1 million. The net operating cash inflow for
Fiscal 2016 of $149.7 million
resulted from $172.1 million of net
cash earnings offset by an investment in non-cash working capital
of $22.4 million.
|
|
|
|
|
|
|
Free Cash Flow and
Declared Dividends
|
2017
|
2016
|
%
|
2017
|
2016
|
%
|
(in
millions)
|
Q4
|
Q4
|
change
|
Fiscal
|
Fiscal
|
change
|
Free Cash Flow
(USD dollars)
|
$
|
59.3
|
$
|
33.6
|
76.5%
|
$
|
161.2
|
$
|
165.2
|
(2.4)%
|
Free Cash Flow
(CAD dollars)
|
74.4
|
45.1
|
65.0%
|
206.9
|
216.3
|
(4.3)%
|
Declared dividends
(CAD dollars)
|
$
|
20.5
|
$
|
14.9
|
37.6%
|
$
|
76.1
|
$
|
54.0
|
40.9%
|
Payout ratio
(declared dividends/Free Cash Flow) CAD$
|
27.5%
|
33.0 %
|
(5.5)%
|
36.8%
|
25.0%
|
11.8%
|
The Company generated Free Cash Flow of C$74.4 million during 2017 Q4, an increase of
65.0% compared to C$45.1 million in
2016 Q4, primarily a result of the notable decrease in current
income taxes during 2017 Q4. The Company declared dividends in 2017
Q4 of C$20.5 million, an increase of
37.6% compared to C$14.9 million in
2016 Q4. The amount of dividends declared increased in 2017 Q4,
primarily as a result of the conversion of the convertible
debentures into Shares and the 36.8% annual dividend rate increase
announced by the Company in May
2017.
The Company generated Free Cash Flow of C$206.9 million during Fiscal 2017 which
decreased 4.3% compared to C$216.3
million in Fiscal 2016 primarily resulting from increased
cash capital expenditures which offsets the increase in Adjusted
EBITDA generated in Fiscal 2017. The Company's declared dividends
in Fiscal 2017 of C$76.1 million
increased 40.9% compared to C$54.0
million in Fiscal 2016. The Fiscal 2017 Free Cash Flow
payout ratio (declared dividends divided by Free Cash Flows) is
36.8% compared to 25.0% in Fiscal 2016.
|
|
|
|
|
|
|
Property, Plant
and Equipment ("PPE") expenditures
|
2017
Q4
|
2016
Q4
|
%
change
|
2017
Fiscal
|
2016
Fiscal
|
%
change
|
(USD dollars in
millions)
|
PPE
expenditures
|
$
|
24.5
|
$
|
13.3
|
84.2%
|
$
|
57.4
|
$
|
29.9
|
92.0%
|
Less PPE expenditures
funded by capital leases
|
(3.4)
|
(2.9)
|
17.2%
|
(4.6)
|
(5.2)
|
(11.5)%
|
Cash acquisition of
PPE reported on statement of cash flows
|
$
|
21.1
|
$
|
10.4
|
102.9%
|
$
|
52.8
|
$
|
24.7
|
113.8%
|
The December 31, 2017 liquidity
position of $222.3 million relates to
amounts available under the revolving portion of the Credit
Facility (the "Revolver") compared to a liquidity position of
$349.6 million at October 1, 2017. The liquidity has decreased
$127.3 million during 2017 Q4
primarily as a result of funding the December 1, 2017 acquisition of ARBOC with
borrowings from the Revolver. As at December
31, 2017 there were $102.0
million of direct borrowings, $9.9
million of bank indebtedness and $8.8
million of outstanding letters of credit related to the
$343.0 million Revolver.
PPE cash expenditures increased 102.9% and 113.8% during 2017 Q4
and Fiscal 2017 respectively, compared to the 2016 corresponding
periods primarily as a result of investments to fund a variety of
initiatives such as: MCI's facility improvements; the Company's
recently opened Vehicle Innovation Center in Anniston, AL; OpEx activities; insourcing and
continuous improvement programs.
The Company's total leverage ratio (defined as net indebtedness
divided by Adjusted EBITDA) of 1.84 at December 31, 2017 improved from the ratio of 1.94
at January 1, 2017. As at
December 31, 2017, the Company was in compliance with its
banking covenant that requires the total leverage ratio to be less
than 3.75.
Outlook
Management estimates that the heavy-duty bus manufacturers
delivered approximately 6,330 EUs in 2017 to Canadian and U.S.
transit operators, which is a 9% increase from the total delivered
in 2016. Similarly, management estimates that 2,470 motor
coaches were delivered in Canada
and the U.S. during 2017.
Management estimates that New Flyer's market share of heavy-duty
transit buses delivered in Canada
and the United States for 2017 was
approximately 43%, compared to the estimated market share of 44%
for 2016. As well, the Company estimates that MCI's 2017
market share of motor coaches delivered in Canada and the U.S has increased from 39% to
43%.
Management continues to expect bus procurement activity
throughout the U.S. and Canada
will remain stable through 2018 based on an aging fleet, overall
economic conditions, expected customer fleet replacement plans, and
active or anticipated procurements.
As the population ages and ease of access becomes more of a
focus, management also believes the demand for low-floor cutaway
and medium-duty buses with greater accessibility will grow from its
current level of 5% of the total cutaway market, following the
migration that occurred in the heavy-duty transit bus space.
Management estimates that ARBOC delivered 64% of all the low-floor
cutaway buses that were delivered in 2017.
The Company's master production schedule combined with current
backlog and orders anticipated to be awarded by customers under new
procurements is expected to enable the Company to deliver
approximately 4,350 EUs during the 52-week period ended
December 30, 2018 ("Fiscal
2018") with production rates varying from quarter to quarter due to
product mix and award timing.
2018 deliveries are expected to comprise of the following
vehicle types:
Heavy-Duty
Transit
|
Motor
Coach
|
Cutaway and
Medium-Duty
|
Total
|
2,750 EU
|
1,100 EU
|
500 EU
|
4,350 EU
|
With a current healthy production schedule, low leverage, and
solid liquidity, management continues to be focused on investments
to enhance competitiveness and estimates PPE expenditures for
Fiscal 2018 to be in the range of approximately $63 to $73 million.
This estimate is approximately $8
million higher than what was originally disclosed, as the
revised range includes amounts that were planned for Fiscal 2017
but were carried forward to Fiscal 2018 and also as a result of a
better understanding of the PPE investments needed in the newly
acquired composite businesses.
With respect to parts, ongoing surveys and discussions with
large parts customers continue to indicate a number of market
effects including: customers' inventory reduction strategies,
budget constraints and fleet modernization efforts. Although
part sales remain difficult to forecast, management expects that
the parts market will remain relatively stable in 2018, but may
experience quarter-to-quarter volatility as is typical for this
segment of the business.
U.S. Tax Reform
As a result of U.S. Public Law 115-97, commonly referred to as
the Tax Cuts and Jobs Act, which was enacted on December 22, 2017 and generally effective for tax
years beginning after December 31,
2017, the Company expects a reduction in its consolidated
effective tax rate ("ETR"). The Company's consolidated
ETR prior to U.S. tax reform ranged from 32% to 36%,
reflecting benefits related to interest deductions and the domestic
production activities deduction which will no longer be
available. Although the U.S. federal statutory tax rate
decreased from 35% to 21%, the Company's ETR for 2018 and
subsequent years is expected to be in the range of 29% to
31%. This range includes U.S. state taxes which brings the
combined U.S. federal and state statutory tax rate to approximately
27% and the impact related to the fact that the Company's most
significant Canadian operating entity (New Flyer Industries Canada
ULC, an entity taxed in both the U.S. and Canada) will not be able to fully utilize
foreign tax credits as the Canadian tax rate is now higher than the
U.S. Federal tax rate.
The Fiscal 2017 ETR decreased when compared to Fiscal 2016,
primarily a result of the net impact of the revaluation of deferred
tax balances due to the recently announced lowering of the U.S.
corporate federal tax rate which contributed to an income tax
recovery of $33.0 million offset by
the write-down of the foreign tax credit carryover pool of
$6.0 million, for a net income tax
recovery of $27.0 million. These two
items decrease the Company's Fiscal 2017 ETR by 11.2%.
North American Free Trade Agreement ("NAFTA")
The Company's manufacturing facilities operate in an integrated
manner with parts and components shipping in both directions over
the Canadian/U.S. border. The Company's supply chain has been
established to ensure compliance with the more stringent U.S.
federal Buy America requirements for rolling stock funded by
Federal Transit Administration grants. In the case of both New
Flyer and MCI public customers, a certain quantity of bus and motor
coach shells are manufactured in Canada and shipped for final assembly in the
United States. In the case of private sector sales, all MCI
motor coaches are manufactured in Canada. ARBOC manufacturers
the cutaways in the United States
and sells to customers in the U.S. and Canada.
Under the current NAFTA agreement, all shells and finished buses
and coaches move across the border free of any duties. Nearly all
the purchased components sourced in the NAFTA region meet the
current 62.5% regional content requirement and therefore also move
across the border free of any duties. The Company today pays
immaterial tariffs for non-NAFTA supply.
Any amendments that would impose duties on parts, shells and
finished buses and coaches could have a financial impact given
materials comprise 69% of manufacturing costs and complete buses
and coaches are imported to each country on a regular basis.
Management continues to closely monitor NAFTA negotiations and is
developing contingency plans to mitigate should changes occur to
the current agreement.
Corporate Name Change
The board of directors of the Company has resolved to change the
Company's name to "NFI Group Inc." to better reflect the
multi-platform nature of its business that now includes buses built
by New Flyer, MCI, ARBOC and parts sold by NFI Parts. The
Company intends to seek the approval of its shareholders for the
name change at the next annual and special meeting of shareholders
scheduled to be held on May 10,
2018.
Conference Call
A conference call for analysts and interested listeners will be
held on Thursday March 22, 2018 at
2:00 p.m. (CT). The call-in
number for listeners is 888-231-8191, 647-427-7450 or 403-451-9838.
A live audio feed of the call will also be available at:
http://event.on24.com/r.htm?e=1622656&s=1&k=55FD8C22E4B0648A738279978256E48A
A replay of the call will be available from 5:00 p.m. (CT) on March
22, 2018 until 11:59 p.m. (CT)
on March 29, 2018. To access the
replay, call 855-859-2056 or 416-849-0833 and then enter pass code
number 6475198. The replay will also be available on New Flyer's
web site at www.newflyer.com.
Non-IFRS Measures
"Adjusted EBITDA" consists of earnings before interest, income
taxes, depreciation, amortization and other non-cash charges and
certain other non-recurring charges as set out in the MD&A.
"Free Cash Flow" means net cash generated by operating
activities adjusted for changes in non-cash working capital items,
interest paid, interest expense, income taxes paid, current income
tax expense, effect of foreign currency rate on cash, defined
benefit funding, non-recurring transitional costs relating to
business acquisitions, costs associated with assessing strategic
and corporate initiatives, defined benefit expense, cash capital
expenditures, proportion of the total return swap realized,
proceeds on disposition of property, plant and equipment, gain
received on total return swap settlement, fair value adjustment to
acquired subsidiary company's inventory and deferred revenue and
principal payments on capital leases. References to "ROIC"
are to net operating profit after taxes (calculated by Adjusted
EBITDA less depreciation of plant and equipment and income taxes at
the expected effective tax rate) divided by average invested
capital for the last twelve month period (calculated as to
shareholders' equity plus long-term debt, obligations under finance
leases, other long-term liabilities, convertible debentures and
derivative financial instrument liabilities less cash).
Management believes Adjusted EBITDA, ROIC and Free Cash Flow are
useful measures in evaluating the performance of the Company.
However, Adjusted EBITDA, ROIC and Free Cash Flow are not
recognized earnings measures and do not have standardized meanings
prescribed by International Financial Reporting Standards ("IFRS")
and may not be comparable to similarly titled measures used by
other issuers. Readers are cautioned that ROIC and 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, and Free Cash Flow should not be construed as an
alternative to cash flows from operating, investing and financing
activities determined in accordance with IFRS, as a measure of
liquidity and cash flows. A reconciliation of Adjusted EBITDA and
Free Cash Flow to net earnings and cash flow from operations,
respectively, is provided in the MD&A.
About the Company
The Company and its subsidiaries comprise the largest bus and
motor coach manufacturer and parts distributor in North America, with 32 fabrication,
manufacturing, distribution, and service centers located across
Canada and the United States and employing nearly 6,000
team members.
The Company provides a comprehensive suite of mass
transportation solutions under several brands: New
Flyer® (heavy-duty transit buses), ARBOC®
(low-floor cutaway and medium-duty buses), MCI® (motor
coaches), and NFI Parts™ (bus and coach parts, support,
and service). The Company's vehicles incorporate the widest range
of drive systems available ranging from clean diesel, natural gas,
diesel-electric hybrid, trolley-electric, battery-electric, and
fuel cell electric.
- New Flyer is North America's
heavy-duty transit bus leader and offers the most advanced product
line under the Xcelsior® and Xcelsior CHARGE™
brands. New Flyer actively supports over 44,000 heavy-duty transit
buses (New Flyer, NABI, and Orion) currently in service, of which
7,300 are powered by electric motors and battery propulsion and
1,600 are zero-emission.
- ARBOC is North America's
low-floor, body-on-chassis ("cutaway") bus leader serving transit,
paratransit, and shuttle applications. With more than 3,000 buses
in service, ARBOC leads the low-floor cutaway bus market providing
unsurpassed passenger accessibility and comfort over traditional
high-floor cutaway vehicles. ARBOC also offers a medium-duty bus
for transit and shuttle applications.
- Motor Coach Industries is North
America's motor coach leader offering the J-Series, the
industry's best-selling intercity coach for 11 consecutive years,
and the D-Series, the industry's best-selling motor coach line in
North American history. MCI actively supports over 28,000 coaches
currently in service.
- NFI Parts is North America's
most comprehensive parts organization, providing replacement parts,
technical publications, training, service, and support for the
Company's bus and motor coach product lines.
The common shares of the Company are traded on the Toronto Stock
Exchange under the symbol NFI.
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",
"forecasts", "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, availability of funding to the Company's customers to
purchase transit buses and coaches 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
and product liability claims, changes in Canadian or United States tax legislation, the absence of
fixed term customer contracts and the suspension or the termination
of contracts by customers for convenience, the current U.S federal
"Buy-America" legislation may change and/or become more onerous,
inability to achieve U.S. Disadvantaged Business Enterprise Program
requirements, local content bidding preferences and requirements
under Canadian content policies may change and/or become more
onerous, trade policies in the United
States and Canada
(including NAFTA) may undergo significant change, potentially in a
manner materially adverse to the Company, production delays
may result in liquidated damages under the Company's contracts with
its customers, inability of the Company 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 ("Credit Facility") 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 or unique
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,
new products must be tested and proven in operating conditions and
there may be limited demand for such new products from customers,
the Company may have difficulty selling pre-owned coaches and
realizing expected resale values, inability of the Company to
successfully execute strategic plans and maintain profitability,
development of competitive products or technologies, the Company
may incur material losses and costs as a result of product
liability claims, catastrophic events may lead to production
curtailments or shutdowns, dependence on management information
systems and risks related to cyber security, dependence on a
limited number of key executives whom may not be able to be
adequately replaced if they leave the Company, employee related
disruptions as a result of an inability to successfully renegotiate
collective bargaining agreements when they expire, risks related to
acquisitions and other strategic relationships with third parties,
inability to successfully integrate acquired businesses and assets
into the Company's existing business and to generate accretive
effects to income and cash flow as a result of integrating these
acquired businesses and assets. 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
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.