Summary of 2018 Q2 results compared to 2017 Q2 (U.S. Dollars
except as noted):
- Revenue of $673.0 million
increased by 9.7%.
- Adjusted EBITDA of $91.4
million increased by 7.4%.
- Net earnings of $49.7
million increased by 16.1%. Earnings per Share of
$0.81 increased by 17.4% and Adjusted
Earnings per Share of $0.83 increased
by 22.1%.
- Free Cash Flow of C$63.0
million increased by 19.1%.
- Dividends declared of C$23.6
million increased 15.7%, representing a payout ratio of
37.5%.
- Total leverage ratio of 1.89 decreased slightly from 2018 Q1
ratio of 1.90.
- Last twelve months Return on Invested Capital of 15.5%
increased from 14.9%.
WINNIPEG, Aug. 7, 2018 /CNW/ - NFI Group Inc.,
formerly New Flyer Industries Inc. (TSX:NFI) ("NFI" or the
"Company"), the largest transit bus and motor coach manufacturer
and parts distributor in North
America, today announced its financial results for the
13-week period ("2018 Q2") and 26-week period ("2018 YTD") ended
July 1, 2018. Year-over-year
comparisons reported in this press release compare 2018 Q2 and 2018
YTD to the 13-week period ("2017 Q2") and the 26-week period ("2017
YTD") ended July 2, 2017. Unless
otherwise indicated, all monetary amounts in this press release are
expressed in U.S. dollars.
Full unaudited interim condensed consolidated financial
statements and the Management's Discussion and Analysis (the
"MD&A") are available at the Company's website at:
https://www.newflyer.com/investor-relations/performance-reports/.
2018 Second Quarter Financial Results
|
|
|
|
|
|
|
|
2018
|
2017
|
%
|
2018
|
2017
|
%
|
Deliveries
(Equivalent Units "EUs")
|
Q2
|
Q2
|
change
|
YTD
|
YTD
|
change
|
New transit bus,
coach and cutaway
|
1,159
|
991
|
17.0%
|
2,152
|
1,883
|
14.3%
|
Pre-owned
coach
|
102
|
110
|
(7.3)%
|
166
|
175
|
(5.1)%
|
|
|
|
|
|
|
|
Average EU selling
price (U.S. dollars in thousands)
|
|
|
|
|
|
|
New transit bus,
coach and cutaway
|
$
|
481.4
|
$
|
510.7
|
(5.7)%
|
$
|
476.1
|
$
|
517.7
|
(8.0)%
|
Pre-owned
coaches
|
$
|
114.7
|
$
|
121.6
|
(5.7)%
|
$
|
119.3
|
$
|
117.1
|
1.9%
|
Volume increased as a result of higher transit bus and motor
coach deliveries and the inclusion of ARBOC cutaway deliveries. NFI
acquired ARBOC Specialty Vehicles, LLC on December 1, 2017.
|
|
|
|
|
|
|
Consolidated
Revenue
|
2018
|
2017
|
%
|
2018
|
2017
|
%
|
(U.S. dollars in
millions)
|
Q2
|
Q2
|
change
|
YTD
|
YTD
|
change
|
New transit bus,
coach and cutaway
|
$
|
558.0
|
$
|
506.1
|
10.3%
|
$
|
1,024.6
|
$
|
974.9
|
5.1%
|
Pre-owned
coach
|
11.7
|
13.4
|
(12.7)%
|
19.8
|
20.5
|
(3.4)%
|
Fiberglass reinforced
polymer components
|
4.9
|
—
|
100.0%
|
8.8
|
—
|
100.0%
|
Manufacturing
|
574.6
|
519.5
|
10.6%
|
1,053.2
|
995.4
|
5.8%
|
Aftermarket
|
98.4
|
93.9
|
4.8%
|
198.5
|
190.2
|
4.4%
|
Total
Revenue
|
$
|
673.0
|
$
|
613.4
|
9.7%
|
$
|
1,251.7
|
$
|
1,185.6
|
5.6%
|
Revenue from manufacturing operations for 2018 Q2 increased by
10.6% compared to 2017 Q2. The increase primarily resulted from a
17.0% increase in new transit bus, coach and cutaway deliveries, as
well as the inclusion of the revenue generated from third parties
by the fiberglass reinforced polymer component operations. This
increase was offset by a 5.7% decrease in new transit bus, coach
and cutaway average selling price per EU in 2018 Q2 compared to
2017 Q2. Manufacturing operations revenue for 2018 Q2 of
$574.6 million is $45.6 million higher when compared to pro forma
manufacturing business revenue (which now includes ARBOC) for 2017
Q2. Similarly, revenue from manufacturing operations for 2018
YTD increased 5.8% compared to 2017 YTD. The increase in 2018 YTD
revenue primarily relates to increased deliveries of 14.3% when
compared to 2017 YTD offset by a decrease in new transit bus, coach
and cutaway average selling price per EU in 2018 YTD of 8.0% when
compared to 2017 YTD. Manufacturing business revenue for 2018 YTD
of $1,053.2 million is $39.3 million higher when compared to pro forma
manufacturing business revenue (which includes ARBOC) for 2017
YTD.
The decrease in average selling price is the result of normal
volatility as well as changes in the product sales mix (which now
includes ARBOC's units that have a substantially lower selling
price than the average heavy-duty transit bus or motor coach).
Revenue from aftermarket operations in 2018 Q2 increased by 4.8%
compared to 2017 Q2 and 2018 YTD increased by 4.4% compared to 2017
YTD. The 2018 Q2 deliveries press release issued on July 16, 2018 incorrectly stated that total
shipments by NFI Parts increased by 4.8% compared to the previous
quarter and increased by 1.1% compared to 2017 Q2. The release
should have stated that total shipments decreased by 1.7%
compared to the previous quarter and increased by 4.1%
compared to 2017 Q2. The error in the press release had no impact
on the reported financial results of the Aftermarket segment.
|
|
|
|
|
|
|
Net
earnings
|
2018
|
2017
|
$
|
2018
|
2017
|
$
|
(U.S. dollars in
millions)
|
Q2
|
Q2
|
change
|
YTD
|
YTD
|
change
|
Earnings from
operations
|
$
|
72.1
|
$
|
70.4
|
$
|
1.7
|
$
|
123.8
|
$
|
129.6
|
$
|
(5.8)
|
Non-cash gain
(loss)
|
0.3
|
1.3
|
(1.0)
|
(2.8)
|
2.6
|
(5.4)
|
Interest
expense
|
(6.4)
|
(5.9)
|
(0.5)
|
(10.1)
|
(9.8)
|
(0.3)
|
Income tax
expense
|
(16.3)
|
(23.0)
|
6.7
|
(30.9)
|
(41.7)
|
10.8
|
Net
earnings
|
$
|
49.7
|
$
|
42.8
|
$
|
6.9
|
$
|
80.1
|
$
|
80.7
|
$
|
(0.6)
|
|
|
|
|
|
|
Net earnings per
Share (basic)
|
$
|
0.81
|
$
|
0.69
|
$
|
0.12
|
$
|
1.29
|
$
|
1.30
|
$
|
(0.01)
|
Adjusted Earnings
per Share (basic)
|
$
|
0.83
|
$
|
0.68
|
$
|
0.15
|
$
|
1.41
|
$
|
1.27
|
$
|
0.14
|
Net earnings during 2018 Q2 increased by $6.9 million compared to 2017 Q2. Net earnings
per common share of NFI ("Share") increased by $0.12, primarily as a result of increased
earnings from operations and a decrease in income tax expense as a
result of U.S. tax reform. Net earnings for 2018 YTD decreased when
compared to 2017 YTD by $0.6 million
primarily as a result of changes in non-recurring and/or
non-operational transactions.
Management has now adopted an Adjusted Net Earnings and Adjusted
Earnings per Share calculation to provide a measure of the
Company's performance that is aligned with the Company's
calculation of Adjusted EBITDA. Details on the calculation of
Adjusted Net Earnings and Adjusted Earnings per Share can be found
in the MD&A.
Adjusted Net Earnings during 2018 Q2 increased by $8.9 million compared to 2017 Q2 resulting in an
increase in Adjusted Earnings per Share in 2018 Q2 of $0.15, primarily as a result of increased
earnings from operations and a decrease in income tax expense as a
result of U.S. tax reform. Similarly Adjusted Net Earnings for 2018
YTD increased by $9.0 million when
compared to 2017 YTD.
Management believes that Return on Invested Capital ("ROIC") is
an important metric that can be used to assess investments against
their related earnings and capital utilization. ROIC during the
last twelve months ended July 1, 2018
was 15.5% as compared to 14.9% during the last twelve months ended
July 2, 2017 improving primarily as a
result of a decreased effective tax rate, as well as improved net
operating profits.
Organizational changes to better align business functions within
operating segments were made effective January 2, 2017 and implemented in two
phases. In 2017, over-the-counter parts sales were moved from
the manufacturing operations to aftermarket operations. In 2018 the
MCI service function, comprised of technical service management and
customer training, which was previously managed by the MCI
aftermarket operations, was moved to the coach manufacturing
operations. To improve the comparability between periods, the
related prior year segment information has been restated to reflect
these changes.
|
|
|
|
|
|
|
Adjusted
EBITDA
|
2018
|
2017
|
%
|
2018
|
2017
|
$
|
|
|
|
|
|
|
|
(U.S. dollars in
millions)
|
Q2
|
Q2
(restated)
|
change
|
YTD
|
YTD
(restated)
|
change
|
Manufacturing
|
$
|
72.2
|
$
|
64.5
|
11.9%
|
$
|
126.2
|
$
|
113.0
|
11.7%
|
Aftermarket
|
19.2
|
20.6
|
(6.8)%
|
39.1
|
43.5
|
(10.1)%
|
Total Adjusted
EBITDA
|
$
|
91.4
|
$
|
85.1
|
7.4%
|
$
|
165.2
|
$
|
156.5
|
5.6%
|
Adjusted EBITDA %
of revenue
|
|
|
|
|
|
|
Manufacturing
|
12.6%
|
12.4%
|
0.2%
|
12.0%
|
11.4%
|
0.6%
|
Aftermarket
|
19.5%
|
21.9%
|
-2.4%
|
19.7%
|
22.9%
|
-3.2%
|
Total
|
13.6%
|
13.9%
|
-0.3%
|
13.2%
|
13.2%
|
0.0%
|
|
|
|
|
|
|
|
Manufacturing
Adjusted EBITDA per new EU delivered
|
2018
|
2017
|
$
|
2018
|
2017
|
$
|
(U.S.
dollars)
|
Q2
|
Q2
(restated)
|
change
|
YTD
|
YTD
(restated)
|
change
|
Manufacturing
Adjusted EBITDA (in millions)
|
$
|
72.2
|
$
|
64.5
|
$
|
7.7
|
$
|
126.2
|
$
|
113.0
|
$
|
13.2
|
New transit bus,
coach and cutaway deliveries (EUs)
|
1,159
|
991
|
168
|
2,151
|
1,883
|
268
|
Manufacturing
Adjusted EBITDA per new EU delivered (in thousands)
|
$
|
62.3
|
$
|
65.1
|
$
|
(2.8)
|
$
|
58.7
|
$
|
60.0
|
$
|
(1.3)
|
Consolidated Adjusted EBITDA for 2018 Q2 increased by 7.4%
compared to 2017 Q2 and for 2018 YTD increased by 5.6% compared to
2017 YTD.
The 2018 Q2 and 2018 YTD manufacturing Adjusted EBITDA increased
11.9% and 11.7% compared to 2017 corresponding periods, primarily
as a result of increased deliveries, improved margins and the
inclusion of ARBOC's operations. Contributors to the increase in
margin included a favorable sales mix and continued cost reductions
achieved through the Company's operational excellence initiatives.
The manufacturing business Adjusted EBITDA per EU for 2018 Q2 was
$62.3 thousand which is $2,800 lower per EU compared to 2017 Q2, but is
$600 higher per EU when compared to
pro forma 2017 Q2 (which includes ARBOC). The manufacturing
business Adjusted EBITDA per EU for 2018 YTD was $58.7 thousand which is $1,300 lower per EU compared to 2017 YTD but is
$1,700 higher per EU compared to pro
forma 2017 YTD (which includes ARBOC).
Margins vary significantly due to factors such as pricing, order
size, propulsion system, product type and options specified by the
customer. Management cautions readers that quarterly Adjusted
EBITDA and Adjusted EBITDA per EU can be volatile and should be
considered over a period of several quarters.
The 2018 Q2 and 2018 YTD aftermarket operations Adjusted EBITDA
decreased by 6.8% and 10.1%, respectively, compared to 2017
corresponding periods primarily due to sales mix and costs involved
in integrating the New Flyer and MCI parts business. Aftermarket
sales and margins remain difficult to forecast due to a significant
portion of the business being transactional in nature, and as a
result experiences significant quarterly volatility.
Liquidity
|
|
|
|
|
|
|
Free Cash
Flow
|
2018
|
2017
|
%
|
2018
|
2017
|
%
|
(dollars in
millions)
|
Q2
|
Q2
|
change
|
YTD
|
YTD
|
change
|
Free Cash Flow
(U.S. dollars)
|
$
|
47.8
|
$
|
40.8
|
17.2%
|
$
|
88.5
|
$
|
81.2
|
9.0%
|
Free Cash Flow
(CAD dollars)
|
$
|
63.0
|
$
|
52.9
|
19.1%
|
$
|
116.5
|
$
|
106.6
|
9.3%
|
Declared dividends
(CAD dollars)
|
$
|
23.6
|
$
|
20.4
|
15.7%
|
$
|
44.1
|
$
|
35.1
|
25.6%
|
Payout Ratio
(Declared dividends divided by Free Cash Flow)
|
37.5%
|
38.6%
|
(2.8)%
|
37.9%
|
32.9%
|
15.2%
|
Free cash flow in 2018 Q2 increased 17.2% when compared to 2017
Q2 primarily due to increased Adjusted EBITDA. The amount of
dividends declared increased by 15.7% in 2018 Q2 as a result of the
increase in the annual dividend rate from C$1.30 to C$1.50
per Share effective for dividends declared after May 9, 2018 and additional Shares issued as a
result of conversion of NFI's previously outstanding convertible
debentures.
On June 11, 2018, the Company
announced that the Toronto Stock Exchange ("TSX") had accepted a
notice filed by the Company of its intention to implement the
normal course issuer bid ("NCIB"). Purchases under the NCIB can be
made through the facilities of the TSX and any alternative Canadian
trading systems on which the Shares are traded. Pursuant to the
NCIB, the Company is permitted to repurchase for cancellation up to
2,774,733 Shares, representing approximately 5% of the outstanding
public float of Shares on June 4,
2018, to commence on June 14,
2018 until June 13, 2019, or
earlier should the Company complete its repurchases prior to such
date. During 2018 Q2, the Company repurchased 283,800 Shares
(of which 67,400 Shares were settled and canceled after
July 1, 2018) at an average price of
C$49.07 per Share for a total
repurchase cost of $8.2 million
during 2018 Q2 and $2.5 million
settled after July 1, 2018.
The Company's total leverage ratio (defined as net indebtedness
divided by Adjusted EBITDA) of 1.89 at July
1, 2018 decreased from the ratio of 1.90 at April 1, 2018. The Company is well within
compliance with its banking covenant that requires the total
leverage ratio to be less than 3.50.
Outlook
The Company's annual operating plan for the 52-weeks ending
December 30, 2018 ("Fiscal 2018") is
focused on maintaining and growing its leading market position in
the heavy-duty transit bus, motor coach and low-floor cutaway
markets and aftermarket parts distribution through enhanced
competitiveness.
Management continues to expect bus procurement activity by
public transit agencies throughout the U.S. and Canada to remain robust based on an aging
fleet, availability of funding provided through the multi-year U.S.
federal funding program "Fast Act", healthy overall economic
conditions, expected customer fleet replacement plans and active or
anticipated procurements. Management continues to anticipate stable
private sector demand for motor coaches through 2018. While some
traditional fixed route and line haul operators have seen increased
competitive headwinds from reduced demand and increased
competition, including new e-commerce entrants, management believes
MCI remains well positioned.
The Company has successfully complied with Buy America
conditions of U.S. public customers who require 65% U.S. material
content in 2018 and has plans in place to achieve the 70% target by
October 2019.
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 Fiscal 2018. Production rates are
adjusted and can vary from quarter to quarter due to product mix
and contract award timing. The Company reaffirms its 2018
delivery guidance which is expected to be comprised of the
following vehicle types:
|
|
|
|
Heavy Duty
Transit
|
Motor
Coach
|
Cutaway and
Medium-Duty
|
Total
|
2,774 EU
|
1,076 EU
|
500 EU
|
4,350 EU
|
With a current healthy production schedule, low leverage, and
solid liquidity, management continues to be focused on property,
plant and equipment ("PPE") investment and estimates PPE
expenditures for Fiscal 2018 to be in the range of approximately
$63 million to $73 million. Spending relates to equipment
maintenance as well as growth projects which management expects to
generate margin enhancements consistent with its targets.
The aftermarket leadership team has developed a business
strategy that is expected to address the needs of the entire
diverse customer base. This new integrated organization is
branded as "NFI Parts", which will maintain primary focus on
supporting the original equipment manufacturer ("OEM") businesses
of the Company, while also targeting new market
opportunities. During the planning and execution of the
integration of the New Flyer and MCI parts businesses expenses are
anticipated to remain flat. After the completion of the integration
management expects cost reductions to lower the operating expenses
of the aftermarket parts organization, with savings anticipated
later in 2018 and 2019.
Although part sales remain difficult to forecast, management
expects the parts market to remain relatively stable in Fiscal
2018, with quarter-to-quarter volatility typical for this segment
of the business.
Commodity Price Increases, Tariffs and Surtaxes
The Company uses aluminum, carbon steel and stainless steel in
the manufacture of bus and coach frames. However, these raw
materials, before processing, comprise less than 3% of total
material costs. Management currently anticipates an immaterial
impact for the remainder of 2018 from current market increases in
aluminum and steel pricing as major components are purchased under
fixed price or contract specific quotations. Management expects
that any future component cost increases should be substantially
recoverable through new contract pricing or through the producer
price index (PPI) mechanisms in multiyear contracts.
On June 1, 2018 the U.S. federal
government imposed tariffs on Canadian steel and aluminum imported
into the U.S. In response the Government of Canada imposed certain surtaxes on U.S. steel
and aluminum imported into Canada
after July 1, 2018. The majority of
the aluminum and steel used at the Company's manufacturing
facilities is from U.S. sources, largely in support of the Buy
America requirements of U.S. public customers. Canadian surtaxes
paid on the importation of U.S. aluminum and steel used in
manufacturing products at the Company's Canadian plants that are
then re-exported to the U.S. are eligible for full recovery under
the current Canadian federal Duty Relief and Duty Drawback
Programs.
New Flyer Leadership Transition
After 10 years with the Company and more than 40 years as an
executive in bus and heavy equipment industries, New Flyer
President Wayne Joseph announced his
retirement effective Jan 1,
2019. Wayne actively led the transformation of New Flyer with
a company-wide LEAN implementation, grew the business with the
successful Xcelsior® model launches followed by the
integrations of NABI and ARBOC, and the launch of the Vehicle
Innovation Centre.
Chris Stoddart, New Flyer's
Senior Vice President of Engineering and Customer Service, has been
selected to succeed Wayne as the business unit President.
Chris joined New Flyer in 2007 and is currently responsible for New
Product Development, Production Engineering, Product Lifecycle
Management and Customer Service. Prior to joining New Flyer,
Chris worked for National Steel Car as VP Engineering Services for
nine years and held numerous leadership roles in Production
Supervision and Process Engineering at General Motors. Chris
holds a Bachelor of Science in Engineering from Kettering University and in 2017 graduated from the
Advanced Management Program at Harvard
Business School.
Wayne will work closely with Chris during the leadership
transition and will remain connected with the Company in an
advisory capacity to support growth and operational excellence
initiatives.
Conference Call
A conference call for analysts and interested listeners will be
held on August 8, 2018 at
8:00 a.m. (ET). 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:
https://event.on24.com/wcc/r/1797409/A714AF9E8232798B6491EFF74EF87B63
A replay of the call will be available from 11:00 a.m. (ET) on August
8, 2018 until 11:59 p.m. (ET)
on August 15, 2018. To access the
replay, call 855-859-2056 or 416-849-0833 and then enter pass code
number 8099301. The replay will also be available on NFI's website
at www.newflyer.com.
Non-IFRS Measures
References to "Adjusted EBITDA" are to earnings before interest,
income taxes, depreciation and amortization after adjusting for the
effects of certain non-recurring and/or non-operations related
items that do not reflect the current ongoing cash operations of
the Company including: gains or losses on disposal of property,
plant and equipment, unrealized foreign exchange losses or gains on
non-current monetary items, fair value adjustment for total return
swap, non-recurring transitional costs or recoveries relating to
business acquisitions, equity settled stock-based compensation,
gain on bargain purchase of subsidiary company, fair value
adjustment to acquired subsidiary company's inventory and deferred
revenue, past service costs, costs associated with assessing
strategic and corporate initiatives and proportion of the total
return swap realized. "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, past service costs, 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 as 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). References to "Adjusted Net Earnings" are
to net earnings after adjusting for the after tax effects of
certain non-recurring and/or non-operational related items that do
not reflect the current ongoing cash operations of the Company
including: gains or losses on disposal of property, plant and
equipment, unrealized foreign exchange losses or gains on
non-current monetary items, fair value adjustment for total return
swap, non-recurring transitional costs or recoveries relating to
business acquisitions, equity settled stock-based compensation,
gain on bargain purchase of subsidiary company, fair value
adjustment to acquired subsidiary company's inventory and deferred
revenue, past service costs, costs associated with assessing
strategic and corporate initiatives and proportion of the total
return swap realized. References to "Adjusted Earnings per Share"
are to Adjusted Net Earnings divided by the average number of
Shares outstanding.
Management believes Adjusted EBITDA, ROIC, Free Cash Flow,
Adjusted Net Earnings and Adjusted Earnings per Share are useful
measures in evaluating the performance of the Company. However,
Adjusted EBITDA, ROIC, Free Cash Flow, Adjusted Net Earnings and
Adjusted Earnings per Share are not recognized earnings measures
under IFRS and do not have standardized meanings prescribed by
IFRS. Readers of this press release are cautioned that ROIC,
Adjusted Net Earnings and Adjusted EBITDA should not be construed
as an alternative to net earnings or loss or cash flows from
operating activities determined in accordance with IFRS as an
indicator of NFI'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 net
earnings and cash flows to Adjusted EBITDA, based on the Financial
Statements, has been provided under the headings "Reconciliation of
Net Earnings to Adjusted EBITDA" and "Reconciliation of Cash Flow
to Adjusted EBITDA", respectively. A reconciliation of Free Cash
Flow to cash flows from operations is provided under the heading
"Summary of Free Cash Flow". A reconciliation of net earnings to
Adjusted Net Earnings is provided under the heading "Reconciliation
of Net Earnings to Adjusted Net Earnings".
NFI's method of calculating Adjusted EBITDA, ROIC, Free Cash
Flow, Adjusted Net Earnings and Adjusted Earnings per Share may
differ materially from the methods used by other issuers and,
accordingly, may not be comparable to similarly titled measures
used by other issuers. Dividends paid from Free Cash Flow are not
assured, and the actual amount of dividends received by holders of
Shares will depend on, among other things, the Company's financial
performance, debt covenants and obligations, working capital
requirements and future capital requirements, all of which are
susceptible to a number of risks, as described in NFI's public
filings available on SEDAR at www.sedar.com.
About NFI Group
With nearly 6,000 team members, operating from 31 facilities
across Canada and the United States, NFI is North America's largest bus manufacturer
providing 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™ (parts,
support, and service). NFI buses incorporate the widest range of
drive systems available including: clean diesel, natural gas,
diesel-electric hybrid, and zero-emission electric (trolley,
battery, and fuel cell). For the fiscal year ended December 31, 2017, NFI posted revenues of U.S.
$2.4 billion. The Shares are traded
on the Toronto Stock Exchange under the symbol NFI. News and
information are available at www.nfigroup.com.
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, tariffs, duties, surtaxes and the Canadian
federal Duties Relief Program) 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 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 labor 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,
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 who 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. NFI cautions that this list of factors is
not exhaustive. These factors and other risks and uncertainties are
discussed in NFI's press releases and materials filed with the
Canadian securities regulatory authorities which 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.