Summary of 2018 Q3 results compared to 2017 Q3:
- Revenue of $605.3 million
increased by 11.7%.
- Adjusted EBITDA of $70.3
million decreased by 1.0%.
- Net earnings of $37.0
million increased by 6.9%. Earnings per Share of
$0.59 increased by 7.3% and Adjusted
Earnings per Share of $0.57 increased
by 3.6%.
- Free Cash Flow of C$37.2
million increased by 43.6%.
- Dividends declared of C$23.4
million increased by 14.1%, representing a payout ratio of
62.9%.
- Total leverage ratio of 1.97 increased from the July 1, 2018 ratio of 1.89.
- Last twelve months return on invested capital of 14.8%
decreased from 15.4%.
- Subsequent to 2018 Q3, MCI's D45 CRT LE motor coach, which
features revolutionary accessibility improvements, passed the
Federal Transportation Administration's (FTA) Altoona bus testing program and is now
eligible for federally funded public transit system
procurements.
WINNIPEG, Nov. 6, 2018 /CNW/ - (TSX:NFI) NFI Group
Inc., formerly New Flyer Industries Inc. ("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 Q3") and 39-week period
("2018 YTD") ended September 30,
2018. Year-over-year comparisons reported in this press
release compare 2018 Q3 and 2018 YTD to the 13-week period ("2017
Q3") and the 39-week period ("2017 YTD") ended October 1, 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/
and under the Company's profile on www.sedar.com
2018 Third Quarter Financial Results
|
|
2018
|
2017
|
2018
|
2017
|
Deliveries
(Equivalent Units "EUs")
|
Q3
|
Q3
|
YTD
|
YTD
|
New transit bus,
coach and cutaway
|
1,035
|
877
|
3,187
|
2,760
|
Pre-owned
coach
|
115
|
89
|
281
|
264
|
|
|
|
|
|
Average EU selling
price
(Unaudited, U.S.
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
New transit bus,
coach and cutaway
|
$
|
476.5
|
$
|
505.8
|
$
|
476.2
|
$
|
514.2
|
Pre-owned
coaches
|
$
|
134.8
|
$
|
111.2
|
$
|
125.6
|
$
|
115.2
|
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 (Unaudited, U.S. dollars in
millions)
|
2018
Q3
|
2017
Q3
|
2018
YTD
|
2017
YTD
|
|
|
|
|
|
Manufacturing
|
512.1
|
454.1
|
1,565.4
|
1,449.5
|
Aftermarket
|
93.2
|
87.6
|
291.6
|
277.8
|
Total
Revenue
|
$
|
605.3
|
$
|
541.7
|
$
|
1,857.0
|
$
|
1,727.3
|
Manufacturing revenue for 2018 Q3 increased by $58 million, or 12.8%, compared to 2017 Q3. The
increase is primarily driven by a 16.9% volume increase in new
transit bus, coach and cutaway deliveries. The increase was
partially offset by a 5.8% decrease in average EU selling prices
for transit bus, coach and cutaway vehicles. Manufacturing revenue
for 2018 YTD increased by $115.9
million compared to 2017 YTD, an increase of 8.0%. Similar
to the 2018 Q3 increase in manufacturing revenue, it was primarily
driven by volume increases in transit bus, coach and cutaway, plus
positive contribution from the inclusion of the fiberglass
reinforced polymer ("FRP") component operations partially offset by
lower average EU selling prices.
Average EU selling prices for both 2018 Q3 and 2018 YTD
decreased compared to the same periods in 2017 driven by sales mix
and margin pressure in the coach business partially offset by
positive sales mix and margin related to the transit business. The
average EU selling price also now includes ARBOC's units, which
have a substantially lower selling price than the average
heavy-duty transit bus or motor coach.
Revenue from aftermarket operations in 2018 Q3 increased by
$5.6 million, or 6.4%, compared to
2017 Q3 and 2018 YTD increased by $13.8
million, or 5.0%, compared to the same period in 2017. In
both 2018 Q3 and 2018 YTD, the increase was driven by higher
volumes offset by the negative impact of Daimler's termination of
MCI's Distribution Rights Agreement ("DRA") related to sales of
Daimler's Setra motor coaches and spare parts in North America. The termination of the DRA with
respect to Setra spare parts sales took effect July 1, 2018.
Organizational changes to better align business functions within
operating segments were made effective January 2, 2017 and implemented in two phases. To
improve the comparability between periods, the related prior year
segment information has been restated to reflect these changes.
|
Adjusted
EBITDA
|
(Unaudited, U.S. dollars in
millions)
|
2018
Q3
|
2017
Q3
(restated)
|
2018
YTD
|
2017
YTD
(restated)
|
Manufacturing
|
$
|
53.0
|
$
|
52.6
|
$
|
179.2
|
$
|
165.6
|
Aftermarket
|
17.3
|
18.4
|
56.3
|
61.9
|
Total Adjusted
EBITDA
|
$
|
70.3
|
$
|
71.0
|
$
|
235.5
|
$
|
227.5
|
Adjusted EBITDA %
of revenue
|
|
|
|
|
Manufacturing
|
10.4%
|
11.6%
|
11.5%
|
11.4%
|
Aftermarket
|
18.5%
|
21.0%
|
19.3%
|
22.3%
|
Total
|
11.6%
|
13.1%
|
12.8%
|
13.2%
|
|
Manufacturing
Adjusted EBITDA per new EU delivered
|
|
2018
|
2017
|
2018
|
2017
|
|
Q3
|
Q3
(restated)
|
YTD
|
YTD
(restated)
|
Manufacturing
Adjusted EBITDA (in millions)
|
$
|
53.0
|
$
|
52.6
|
$
|
179.2
|
$
|
165.6
|
New transit bus,
coach and cutaway deliveries (EUs)
|
1,035
|
877
|
3,187
|
2,760
|
Manufacturing
Adjusted EBITDA per new EU delivered (in thousands)
|
$
|
51.2
|
$
|
60.0
|
$
|
56.2
|
$
|
60.0
|
Consolidated Adjusted EBITDA for 2018 Q3 decreased by
$0.7 million, or 1.0%, compared to
2017 Q3 and for 2018 YTD increased by $8.0
million, or 3.5%, compared to 2017 YTD.
The 2018 Q3 and 2018 YTD manufacturing Adjusted EBITDA increased
by 0.8% and 8.2% respectively, compared to 2017 corresponding
periods, primarily as a result of increased volume. The increase in
volume was partially offset by startup costs associated with the
Shepherdsville, KY parts
fabrication facility, price reductions on selling new and pre-owned
Setra coaches post termination of the DRA and losses associated
with the Wisconsin-based FRP
business. In total, these items had an impact of $4.0 million in 2018 Q3 and $6.4 million 2018 YTD on manufacturing Adjusted
EBITDA. In addition, Adjusted EBITDA was impacted by favourable
sales mix and margins related to the transit business offset by
adverse sales mix and margins related to the motor coach business.
Margins can vary significantly from period-to-period 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 Q3 and 2018 YTD aftermarket Adjusted EBITDA decreased
by 5.9% and 9.0% respectively, compared to 2017 corresponding
periods, primarily due to the impact of sales mix, margin pressure
and the negative impact from termination of the DRA.
|
Net
earnings
|
2018
Q3
|
2017
Q3
|
2018
YTD
|
2017
YTD
|
(Unaudited, U.S.
dollars in millions)
|
Earnings from
operations
|
$
|
53.5
|
$
|
55.1
|
$
|
177.3
|
$
|
184.7
|
Non-cash gain
(loss)
|
2.3
|
2.0
|
(0.4)
|
4.6
|
Interest
expense
|
(6.9)
|
(4.9)
|
(17.0)
|
(14.8)
|
Income tax
expense
|
(11.9)
|
(17.6)
|
(42.8)
|
(59.3)
|
Net
earnings
|
$
|
37.0
|
$
|
34.6
|
$
|
117.1
|
$
|
115.2
|
Adjusted net
earnings
|
$
|
35.8
|
$
|
34.4
|
$
|
123.4
|
$
|
113.0
|
|
|
|
|
|
Net earnings per
Share (basic)
|
$
|
0.59
|
$
|
0.55
|
$
|
1.87
|
$
|
1.85
|
Adjusted Earnings
per Share (basic)
|
$
|
0.57
|
$
|
0.55
|
$
|
1.97
|
$
|
1.81
|
Net earnings during 2018 Q3 increased by $2.4 million, or 6.9%, compared to 2017 Q3. Net
earnings per common share of NFI ("Share") increased by
$0.04, this was primarily from higher
volumes and lower taxes as a result of U.S. tax reform partially
offset by increased finance costs and the previously mentioned
impacts on 2018 Q3 Adjusted EBITDA. Net earnings for 2018 YTD
increased when compared to 2017 YTD by $1.9
million, or 1.6%, for the same reasons mentioned above.
Adjusted Net Earnings during 2018 Q3 increased by $1.4 million, or 4.1%, compared to 2017 Q3
resulting in an increase in Adjusted Earnings per Share in 2018 Q3
of $0.02, primarily due to a decrease
in income tax expense as a result of U.S. tax reform. Similarly,
Adjusted Net Earnings for 2018 YTD increased by $10.4 million, or 9.2%, 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 September 30,
2018 was 14.8% as compared to 15.4% during the last twelve
months ended October 1, 2017. The
decrease was primarily a result of material investments made in the
Shepherdsville parts fabrication
facility and renovations and expansion of the Anniston facility
that are not expected to generate benefits until 2019.
Liquidity
|
|
Free Cash
Flow
|
2018
Q3
|
2017
Q3
|
2018
YTD
|
2017
YTD
|
(Unaudited, dollars
in millions)
|
Free Cash Flow
(U.S. dollars)
|
$
|
28.8
|
$
|
20.8
|
$
|
117.2
|
$
|
101.9
|
Free Cash Flow
(CAD dollars)
|
$
|
37.2
|
$
|
25.9
|
$
|
152.6
|
$
|
132.5
|
Declared dividends
(CAD dollars)
|
$
|
23.4
|
$
|
20.5
|
$
|
67.4
|
$
|
55.6
|
Payout Ratio
(Declared dividends divided by Free Cash Flow)
|
62.9%
|
79.2%
|
44.2%
|
42.0%
|
Free cash flow in 2018 Q3 increased by $8.0 million, or 38.5%, when compared to 2017 Q3
primarily due to the impact of reduced income tax rates. The amount
of dividends declared increased by 14.1% in 2018 Q3 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, taking into account Shares
repurchased under the Company's normal course issuer bid
("NCIB").
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 NCIB.
During 2018 Q3, the Company repurchased 514,000 Shares (of which
33,800 Shares were settled and canceled after September 30, 2018) at an average price of
C$51.07 per Share for a total
repurchase cost of $21.4 million
during 2018 Q3 and $1.7 million
settled after September 30, 2018. To
date the Company has repurchased 797,800 shares at an average price
of C$50.37 per Share for a total
repurchase cost of $31.3 million
(which includes $1.7 million settled
after September 30, 2018).
The Company's total leverage ratio (defined as net indebtedness
divided by Adjusted EBITDA) of 1.97 at September 30, 2018 increased from 1.89 at
July 1, 2018. The Company is well
within compliance with its banking covenant that requires the total
leverage ratio to be less than 3.50, which increases to 3.75 under
the New Credit Facility (defined below) and increases to 4.25 for
one year following a material acquisition.
Outlook
Management remains focused on maintaining and growing NFI's
leading market positions in the heavy-duty transit bus, motor coach
and low-floor cutaway markets and aftermarket parts distribution
through enhanced competitiveness and new product
offerings.
Aging fleets, solid economic conditions, defined U.S. federal
funding and active or anticipated procurements support management's
expectation that transit bus procurement activity throughout the
U.S. and Canada will remain
healthy. Management continues to anticipate stable private sector
demand for motor coaches through 2018. There has been some recent
downward pressure on motor coach margins, but MCI remains focused
on developing and expanding its product portfolio to enhance its
competitiveness with two new vehicles targeting 2019
deliveries.
MCI's new D45 CRT LE motor coach, with its revolutionary
improvements to support people with physical disabilities, is now
eligible for FTA funding following its successful completion of the
FTA's Altoona bus testing program
("Altoona Test"). The Altoona Test is named for the Altoona, PA testing center, where new bus
models are rigorously tested for reliability in order to be
eligible for U.S. federally funded public transit system
procurements.
NFI complies with Buy America requirements of U.S. public
customers which mandate 65% U.S. material content and has plans in
place to achieve the increased requirement of 70% U.S. content
starting October 2019.
Aftermarket surveys and discussions with large customers
continue to indicate a number of adverse parts market effects
including: customers' inventory reduction strategies, budget
constraints, a decline in the installed base of certain NFI
acquired brands no longer in production (such as Orion®
and NABI®), increased competition from truck dealers and
distributors, and the improved quality of the Xcelsior®
and MCI vehicles compared to prior models. To help counter these
negative impacts on aftermarket sales volumes, management has
placed additional focus on securing vendor managed inventory
("VMI") programs. During Fiscal 2018, NFI secured six VMI programs that are expected to provide benefits
to the aftermarket business in Fiscal 2019 and beyond.
Based on the Company's master production schedule combined with
current backlog and orders anticipated to be awarded by customers
under new procurements Fiscal 2018 delivery guidance remains
unchanged at 4,390 EUs, an increase of 562 EUs over fiscal 2017.
Deliveries for the 13-week period ended December 30, 2018 ("2018 Q4") are expected to
represent 27% of full year deliveries and be an increase of 135 EUs
over the 13 week period ended December 31,
2017 ("2017 Q4"). Fiscal 2018 deliveries are expected to be
comprised of the following vehicle types:
|
Heavy Duty
Transit
|
Motor
Coach
|
Cutaway and
Medium-Duty
|
Total
|
2,810 EU
|
1,070 EU
|
510 EU
|
4,390 EU
|
Property, Plant and Equipment ("PPE") expenditures for Fiscal
2018 are expected to remain in the range of approximately
$63 million to $73 million.
New Revolving Credit Facility
On October 25, 2018, the Company
announced a new revolving credit facility ("Credit Facility") with
a total borrowing limit of $1.0
billion, including a $100
million letter of credit facility. The Credit Facility is
unsecured, has a 5-year term and will mature on October 25,
2023. In addition, the Credit Facility provides an accordion
feature which allows the Company to obtain additional funding of up
to $250 million, subject to customary conditions. This
new Credit Facility replaces NFI's prior secured credit facility
(the "Prior Credit Agreement"), which had a total borrowing limit
of $825 million. Loans under the
Credit Facility bear interest at a rate equal to LIBOR or a U.S.
base rate for loans denominated in U.S. dollars and a Canadian
prime rate or bankers' acceptance rate for loans denominated in
Canadian dollars, plus an applicable margin to those rates.
There are certain financial covenants under the Credit Facility
that must be maintained. Specifically, the Company must maintain an
interest coverage ratio greater than 3.0 to 1 and a total
leverage ratio ("TLR") of less than 3.75 to 1, which increases
to 4.25 for one year following a material acquisition.
Management expects the Credit Facility will provide NFI with
significant financial flexibility to pursue numerous strategic
initiatives to grow and diversify its business. These initiatives
may include acquisitions, partnerships and investments, with the
potential to increase product or geographic diversity, further
insource fabrication capabilities and contribute to future
growth.
Conference Call
A conference call for analysts and interested listeners will be
held on November 7, 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/1860233/A2E805474B39439E227C26C2A413FF71
A replay of the call will be available from 11:00 a.m. (ET) on November 7, 2018 until 11:59 p.m. (ET) on November 14, 2018. To access the replay, call
855-859-2056 or 416-849-0833 and then enter pass code number
6550606. The replay will also be available on NFI Group's web site
at www.newflyer.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
Partsâ„¢ (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.
Further information is available at www.nfigroup.com,
www.newflyer.com, www.mcicoach.com, www.nfi.parts and
www.arbocsv.com. The common shares of NFI are traded on the Toronto
Stock Exchange under the symbol NFI.
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 Net 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.
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 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 USMCA, tariffs, duties, surtaxes and the Canadian
federal Duty Relief and Duty Drawback Programs) 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 NFI assumes no
obligation to update or revise them to reflect new events or
circumstances, except as required by applicable securities
laws.
SOURCE NFI Group Inc.