DES PLAINES, IL, Feb. 16, 2016 /CNW/ - (TSX:NFI) (TSX:NFI.DB.U) Motor Coach Industries ("MCI"), a subsidiary of New Flyer Industries Inc. (the "Company"), the largest bus and motor coach manufacturer and parts distributor in North America announced that the Board of Directors of New Jersey's public transportation authority ("NJ TRANSIT") has authorized an option to purchase an additional 332 MCI 45-foot Commuter Coaches at an estimated value of $166 million.
In July 2015, MCI and NJ TRANSIT signed a public transit contract for 772 new commuter coaches to operate on New Jersey's roads and highways. This additional board authorization now increases the total number of approved options contract to 1,104 over the next six years, with a total value of approximately $561 million. MCI is in the process of delivering three pilot buses to NJ TRANSIT, and following a successful in-service evaluation and funding approval, a purchase order is expected for the first year production.
The new 57-seat coaches will be Wi-Fi ready, seatbelt-equipped, compliant with the Americans with Disabilities Act (ADA) and deliver reduced exhaust emissions as required by the latest Clean Air Act amendment.
"The MCI Commuter Coach provides a high level of reliability and enhanced passenger riding comfort for NJ TRANSIT, and we're proud the agency has once again called on us to assist with rejuvenating their fleet," said Patrick Scully, MCI Executive Vice President of Sales and Marketing. "As passenger demographics continue to change and passengers look for an upscale ridership experience, MCI will be there to supply the latest safety technology with enhanced in-cabin amenities that draw ridership. Whether it's bus rapid transit, extended suburban service or traditional routes inside the city center, MCI is here to help NJ TRANSIT grow their routes."
MCI's Commuter Coach is a public sector best seller that continues to grow its reputation for durability and quality as public transit agencies nationwide develop longer-distance bus and coach lines to serve passengers who are increasingly leaving their cars at home. The MCI coach features a rugged semi-monocoque structure that elevates passengers and drivers above traffic and offers dynamic safety features, low total cost of operation and excellent mean distance between failures (MDBF) performance.
MCI won its first contract with NJ TRANSIT for 700 MC-9 cruiser buses in 1982, with the agency purchasing an additional 415 in 1987. In 2000, the agency awarded MCI the largest public transit order in North American bus-industry history with a 1,400 vehicle contract intended to improve service to outlying city and expanding suburban areas throughout the state.
NJ TRANSIT is the third largest provider of bus, rail and light rail transit in the United States, linking major points in New Jersey, New York and Philadelphia. The agency operates a fleet of more than 2,000 buses covering 257 routes. With its full complement of buses, trains and light rail vehicles, NJ TRANSIT completes over 272 million passenger trips each year.
NOTE: All dollar amounts are stated in U.S. currency.
About the Company
The Company employs approximately 5,000 team members and is the largest transit bus and motor coach manufacturer and parts distributor in North America with fabrication, manufacturing, distribution and service centers in Canada and the United States.
Through its Canadian and U.S. subsidiaries, Motor Coach Industries Limited and Motor Coach Industries, Inc. (together, "Motor Coach Industries"), the Company is North America's leader in motor coaches, offering the MCI J4500, which is the industry's best-selling intercity coach for 11 consecutive years, and the MCI D-Series, the industry`s best-selling coach line in North American motor coach history. MCI is also the exclusive distributor of Setra S417 and S407 in the United States and Canada. MCI actively supports over 28,000 motor coaches currently in service and offers 24-hour roadside assistance 365 days a year.
Through its Canadian and U.S. subsidiaries, New Flyer Industries Canada ULC and New Flyer of America Inc. (together, "New Flyer"), the Company is North America's heavy-duty transit bus leader and offers the broadest transit bus product line (Xcelsior® and MiDi® models), incorporating the broadest range of drive systems available, including: clean diesel, natural gas, diesel-electric hybrid, electric-trolley and now battery-electric. New Flyer actively supports over 42,000 heavy-duty transit buses (New Flyer, NABI and Orion) currently in service.
The Company also operates North America's most sophisticated aftermarket parts organization providing support for all types of transit buses and motor coaches. All buses and coaches are supported by an industry-leading comprehensive warranty, service and support network.
Further information is available on the Company's websites at www.mcicoach.com and www.newflyer.com. The common shares and convertible unsecured subordinated debentures of the Company are traded on the Toronto Stock Exchange under the symbols NFI and NFI.DB.U, respectively.
This press release may contain forward-looking statements relating to expected future events and financial and operating results of the Company that involve risks and uncertainties. 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. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and economic conditions of and funding availability for the customer to purchase coaches and to purchase parts or services, the customer may not exercise options to purchase coaches, the ability of the customer to terminate contracts for convenience and the other risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
SOURCE New Flyer Industries Inc.
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