VANCOUVER, April 28, 2017 /CNW/ - Grande West
Transportation Group Inc. (TSXV: BUS; OTC PINK: GWTNF)
- ("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 for the stub year end August 31, 2016 to December 31, 2016.
The Company is now reporting financials to coincide with the
calendar year.
Selected Yearly Information
The following table shows the audited results of the Company for
the year ended December 31, 2016 and
August 31, 2016 and is stated in
Canadian dollars.
The results of operations for these periods are not necessarily
indicative of the results of operations to be expected in any given
comparable period.
|
|
|
4 months ended,
December 31, 2016
(audited)
|
12 months ended,
August 31, 2016
(audited)
|
Revenue – Bus sales
and after-market parts
|
$
2,983,831
|
$
5,093,083
|
Gross profit
(loss)
|
510,880
|
513,580
|
Revenue – component
inventory
|
3,938,487
|
3,118,097
|
Basic and diluted
earnings from operations earnings per share
|
-
|
-
|
Net earnings
(loss)
|
(1,757,630)
|
(4,069,887)
|
Basic and diluted
earnings (loss) per share
|
(0.03)
|
(0.08)
|
|
|
|
Cash and cash
equivalents
|
2,217,394
|
316,444
|
Working
Capital
|
2,621,886
|
2,508,883
|
Total
Assets
|
11,781,991
|
10,001,701
|
Non-current financial
liabilities
|
6,115,820
|
3,021,182
|
During the four month period ended December 31, 2016, the Company sold 8 Vicinity
buses compared to the year ended August 31,
2016 when the Company sold 16 Vicinity buses.
Recent Highlights and Developments Subsequent to December 31, 2016
Management is very pleased that the start-up phase for the
Company has been completed and ongoing production and deliveries
are being made. Over the last year we have seen
Grande West meet many significant
milestones, setting up 2017 to be a profitable and transformational
year.
- In January, Grande West began
offering clean burning, low emission Cummins ISB G engines for
delivery on 2017 orders. The ISB G Engine, powered by compressed
natural gas (CNG) has the lowest North American Emissions
standards. Thirteen (13) of these buses are being delivered to the
Atlanta International Airport in
Q3 2017.
- In January, BC Transit ordered thirty nine (39) Vicinity buses
totalling approximately $13 million.
This is in addition to BC Transit's previous orders for fifty eight
(58) buses, bringing their total current outstanding orders up to
ninety seven (97).
- Also in January, the City of
Edmonton ordered thirty three (33) Vicinity buses totalling
approximately $13 million. This is
the third order from the City since September 2016, bringing their total firm orders
for Vicinity buses to 49 units.
- In March, Grande West closed a
bought deal offering of common shares of the Company, at a price of
$1.90 per Offered Share for gross
proceeds to the Company of $13,680,000. A total of 7,200,000 Offered Shares
were sold pursuant to the Offering, including 870,000 Offered
Shares issued as a result of the full exercise of the Underwriters'
over-allotment option. The Offering was conducted by a syndicate of
underwriters led by Beacon Securities Limited and including Echelon
Wealth Partners Inc.
- On March 14, the Company
appointed Taras Kindzersky to the position of Chief Operating
Officer to assist management with the Company's continued growth.
Mr. Kindzersky has over 20 years of business experience working at
a variety of large corporations, specifically Finning Canada, a
division of Finning International Inc., the world's largest
Caterpillar equipment dealer. He joins Grande West from one of the 20 largest credit
unions in Canada where he led the
business banking division as Executive Vice-President, Business
Banking. In his first month, Taras is already making a significant
impact in organizational efficiencies, banking relationships and
process flows.
- Also in March, Grande West
received new customer orders for approximately $7.5 million. St. John's Transportation
Commission ordered three (3) Vicinity buses, the City of Oakville has ordered an additional
eight (8), the City of Burlington
has ordered an additional seven (7) and the City of Welland ordered two (2).
- On March 27, the Company
announced its first US public transit order from the Metropolitan
Atlanta Rapid Transit Authority ("MARTA"). Grande West's exclusive US distributor Alliance
Bus Group ("ABG") has delivered to MARTA ten (10) Vicinity buses
that are now in operation in their transit system.
"We are committed to creating more efficient transportation options
for our customers. That means building a more highly layered,
customized service model," said MARTA GM/CEO Keith Parker. ''These new Vicinity vehicles
allow our bus operators to travel safely into neighbourhoods where
our standard fleet could not easily navigate while offering more
space than our current Mobility bus options."
- Again in March, Grande West
announced it had secured a USA
manufacturing facility. Alliance Bus Group, Grande West's exclusive US distributor, will
produce Buy America compliant Vicinity buses for sale to US transit
authorities. The ability to leverage ABG existing facilities,
staff, and deep knowledge of bus technology provides Grande West with a solid foundation upon which
it can quickly ramp to production. Plans are well underway and
first Buy America compliant production will begin in Q3 of
2017.
The Alliance Bus Group ("ABG"), Grande
West's exclusive US distributor, will produce Buy America
compliant Vicinity buses for sale to US transit authorities. The
ability to leverage ABG existing facilities, staff, and deep
knowledge of bus technology provides Grande
West with a solid foundation upon which it can quickly ramp
to production.
- For 2017, Grande West is
tracking over 500% growth. 2017 to 1H 2018 firm orders are for 267
buses and total revenues of over $95
million.
Additional information about current operations, production and
Buy America production plans can be located in this quarter's
Management's Discussion and Analysis under Recent Highlights and
Developments.
William Trainer, President and
CEO commented, "Grande West is now
in full production and delivery mode, this very exciting time for
the Company continues. Our staff is really stepping up to the
challenge of increased volumes and new additions to the team are
working out extremely well to match the pace. The Buy America
assembly roll-out is proceeding on schedule and we are looking
forward to having our first Buy America Vicinity buses produced in
Q3. We also continue to be very active on the RFP front in the US
and Canada."
Q1 2017 financials will be reported in late May, conference call
dial-in specifics for analysts interested investors will be
provided a week prior to the earnings release.
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 27.5, 30 and 35 foot models powered by clean diesel or
CNG 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 compliant
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
Paradox Public Relations
Karl Mansour
Ph: 866-460-0408
karlmansour@paradox-pr.ca
www.paradox-pr.ca
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.
Cautionary Note Regarding Forward-Looking
Statements
This press release includes certain "forward-looking
information" and "forward-looking statements" (collectively
"forward-looking statements") within the meaning of applicable
Canadian securities legislation. All statements, other than
statements of historical fact, included herein, including without
limitation, statements regarding the use of proceeds from the
Private Placement, are forward-looking statements. Forward-looking
statements are frequently, but not always, identified by words such
as "expects", "anticipates", "believes", "intends", "estimates",
"potential", "possible", and similar expressions, or statements
that events, conditions, or results "will", "may", "could", or
"should" occur or be achieved. Forward-looking statements involve
various risks and uncertainties. There can be no assurance that
such statements will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such statements.
Important factors that could cause actual results to differ
materially from Grande West's
expectations include uncertainties relating to the receipt of final
approval from the TSX-V; and other risk and uncertainties disclosed
in Grande West's reports and
documents filed with applicable securities regulatory authorities
from time to time. Grande West's
forward-looking statements reflect the beliefs, opinions and
projections on the date the statements are made. Grande West assumes no obligation to update the
forward-looking statements or beliefs, opinions, projections, or
other factors, should they change, except as required by
law.
SOURCE Grande West Transportation Group Inc.