VANCOUVER, Dec. 21, 2016 /CNW/ - Grande West
Transportation Group Inc. (TSXV: BUS; OTC PINK: GWTNF) –
December 21, 2016: ("Grande West" or
the "Company"), a Canadian bus manufacturer of heavy-duty mid-sized
transit buses for sale in Canada
and the United States, announced
today audited year end financials ending August 31, 2016.
Selected Yearly Information
The following table shows the audited results of the Company for
the year ended August 31, 2016 and
2015 and is stated in Canadian dollars.
|
Year
Ended
|
August 31,
2016 (audited)
|
August 31,
2015 (audited)
|
Revenue
|
$
|
8,211,180
|
$
|
6,046,199
|
Gross profit
(loss)
|
513,580
|
(139,175)
|
Basic and diluted
earnings from operations earnings per share
|
-
|
-
|
Net earnings
(loss)
|
(3,986,409)
|
(4,463,829)
|
Basic and diluted
earnings (loss) per share
|
(0.08)
|
(0.10)
|
|
|
|
Cash and cash
equivalents
|
316,444
|
697,858
|
Working
Capital
|
2,483,883
|
1,725,381
|
Total
Assets
|
9,987,040
|
3,915,284
|
Non-current financial
liabilities
|
3,021,182
|
915,829
|
During the year ended August 31,
2016, the Company sold 16 Vicinity buses compared to the
same period ended August 31, 2015
when the Company sold 18 Vicinity buses.
Recent Highlights and Developments Subsequent to August 31, 2016
- Of the twenty-one (21) buses slated for delivery in 2H 2016,
three (3) were revenue recognized in the quarter ending
August 31, 2016. The additional
eighteen (18) buses were delivered subsequently in 2016 for total
unaudited revenues of over $6
million. These revenues will be reported in the audited stub
fourth quarter ending December 31,
2016.
- In September, the City of
Edmonton awarded Grande West
a long term contract for up to 5 years with forecasted purchase of
forty-five (45) buses valued at about $18
million. Sixteen (16) Vicinity buses have been ordered
for 2017 delivery for approximate value of $6.1 million.
- In September, BC Transit ordered an additional seventeen (17)
Vicinity buses totalling $6 million.
This is in addition to BC Transit's initial order for forty-one
(41) buses valued at approximately $13
million announced May 10,
2016.
- In October, new contracts were awarded for the City of Saskatoon for four (4) Vicinity valued
at $1.9 million, Welland Transit for
two (2) and the City of Cobourg
for one (1) for an additional $1.5
million.
- Also in October the City of Prince
Albert, Saskatchewan ordered seven (7) Vicinity buses
totalling approximately $2.95
million. This was a key order as it marked one of the first
Right-Sizing opportunities for transit as these seven buses were
originally slated to be 40' conventional buses. Vicinity 35' models
replaced a significant portion of Prince
Albert's fleet.
- On November 9, the Company
announced its first US customer, the Hartsfield-Jackson Atlanta
International Airport. The thirteen (13) Vicinity buses will be
purchased and operated by Standard Parking.
- Also in November, Grande West
received a third Vicinity order from Cape
Breton for two (2) Vicinity buses totalling $900,000.
- On December 9, 2016 the Company
announced it had achieved Buy America certification. Buy America
status enables the Company's exclusive US distributor, Alliance Bus
Group ("ABG"), to bid on all public transit opportunities in the
USA with Vicinity 30 and 35 foot
models.
- Through the last quarter the Company is pleased to note that a
significant number of the share purchase warrants and options were
exercised, representing a total number of 1,751,667 Common Shares
of the Corporation for total purchase price of $1,044,680.
- The Company has firm orders for 175 buses for 2017 delivery
worth over $61 million. Management
expects further orders for 2017 delivery in Canada and the US.
William Trainer, President and
CEO of Grande West commented, "2016
has been a transformational year for Grande
West as the hard work of the past eight years has come
together. We have strengthened the team in advance of 2017
deliveries which will begin in January and are very excited about
our business outlook. We have streamlined and increased
efficiencies in operations, manufacturing, supply chain and quality
control which will increase gross margin in all future Vicinity
production. The recent Buy America certification has opened up
increased tender opportunities in the US and we are currently
bidding on opportunities to supply over 150 buses through our
distributor ABG. As the order book for 2017 continues to grow, we
will begin to populate the order book for 2018 and beyond."
A conference call for analysts and interested listeners can be
accessed today at 11AM EST in
North America by dialling
1-800-977-8002, or internationally at 1-404-920-6650 and entering
passcode 5727526#. After the financial results and updates are
discussed by management, a question and answer period will be
provided.
About Grande West Transportation Group
Grande West Transportation Group is a Canadian bus manufacturer
which designs, engineers and manufactures mid-size buses for
transit authorities and commercial enterprises. Grande West's Best-in-Class Vicinity bus is
available in 30 and 35 foot models designed with affordability,
accessibility and global responsibility in mind. It costs
significantly less than a regular 40 foot transit bus, burns less
fuel and emits less harmful emissions.
The Company has been successful in supplying Canadian municipal
transportation agencies and private operators with new buses and is
receiving follow-on orders in many Canadian transit agencies.
Grande West is Buy America
certified, and along with ABG, its exclusive US distributor, is
actively pursuing opportunities to sell Vicinity into public and
private transit fleet operations.
For further information please contact:
Grande West
Transportation
John LaGourgue
Ph: 1-604-607-4000
jlagourgue@grandewest.com
www.grandewest.com
Neither the TSX-V nor its Regulation Service Provider (as that
term is defined in the policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Grande West Transportation Group Inc.