WINNIPEG, Feb. 8, 2013 /CNW/ - (TSX:NFI; TSX:NFI.DB.U) New Flyer
Industries Inc. ("New Flyer" or the "Company"), the leading
manufacturer of heavy-duty transit buses in Canada and the United
States, provides an update regarding financial performance for the
fourth quarter of 2012 ("Q4 2012") and an update on recent order
In the Company's third quarter earnings release issued on November 12,
2012, management advised that anticipated Adjusted EBITDA for Q4 2012
was expected to be stronger than the Adjusted EBITDA realized in the
third quarter of 2012 ("Q3 2012"). Although the Company has not yet
completed the preparation of its financial results for the year ended
December 30, 2012, based on the information available to date,
management now believes that Adjusted EBITDA for Q4 2012 will be
approximately equal to Adjusted EBITDA of Q3 2012. This is primarily
the result of an unanticipated delay in deliveries under a contract due
to a supplier quality issue which is in the process of being rectified, a delay in deliveries from the previously announced deferred award and
production of 90 60-foot Xcelsior buses (180 equivalent units or "EUs")
under the New York City Transit Authority contract and additional
provisions in warranty reserve. Final year-end results may vary from
management's current expectations referred to in this release as the
Company completes its year-end accounting process and audit, including
its assessment of the tax provision. The Company will announce
definitive results and issue its financial statements for the year
ended December 30, 2012 on or prior to March 31, 2013.
On January 9, 2013, New Flyer issued its quarterly order and backlog
update for Q4 2012, with a total backlog comprised of 6,325 EUs, having
a total value of $2.67 billion.
The total backlog at that date included firm orders received from five
customers in Q4 2012 for 509 EUs, but approval from the customer to
issue press releases had not yet been granted. The Company has since
received customer approval to issue the details regarding these orders
and press releases have been issued for the following customers: San
Diego, Baltimore, Orange County, New York and Milwaukee.
Firm orders and options totaling 801 EUs were pending from a number of
customers where approval had been granted by the customer's board,
council, or commission, as applicable, but purchase documentation had
not yet been received by New Flyer and therefore not included in the
backlog. Purchase documentation has since been received from
Birmingham for a total of 50 EUs of the 801 EUs and a press release has
So far in 2013, new contract awards of 1,009 EUs (consisting of 659 firm
orders and 350 options) have been received by New Flyer from the
following customers: Los Angeles, Rochester, Phoenix and Edmonton. New
Flyer issued a press release regarding the Los Angeles award on
February 7, 2012.
Management continues to expect that the total backlog, combined with the
recent order intake, will allow New Flyer to maintain an average weekly
line entry production rate of approximately 36 EUs for fiscal 2013.
Management also believes the current dividend rate is sustainable. New
Flyer has now paid dividends to shareholders for 88 consecutive months
since the Company's initial public offering in August 2005.
NOTE: All dollar amounts are stated in US currency based on an exchange
rate of US $1.00 = CAD $0.9965 to calculate the value of the Canadian
contracts in this release.
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in
Canada and the United States. The Company's three manufacturing
facilities - in Winnipeg, MB; St. Cloud, MN and Crookston, MN - are all
ISO 9001, ISO 14001 and OHSAS 18001 certified. The Company currently
operates a parts fabrication facility in Elkhart, IN and four parts
distribution centers in Winnipeg, MB; Brampton, ON; Erlanger, KY and
Fresno, CA. The Company also operates a service center in Arnprior,
With a skilled workforce of over 2,200 employees, New Flyer is a
technology leader, offering the broadest product line in the industry,
including drive systems powered by clean diesel, LNG, CNG and electric
trolley as well as energy-efficient diesel-electric hybrid vehicles.
New Flyer has delivered over 32,000 heavy-duty buses in Canada and the
United States. All products are supported with an industry-leading,
comprehensive parts and service network. Further information is
available on New Flyer's web site at www.newflyer.com.
The common shares and convertible unsecured subordinated debentures of
New Flyer are traded on the Toronto Stock Exchange under the symbols
NFI and NFI.DB.U, respectively.
Adjusted EBITDA consists of earnings before interest, income taxes,
depreciation, amortization and other non-cash charges, adjusted for
certain costs related to offerings and certain other nonrecurring
charges as set out in the Company's management discussion and analysis
dated November 12, 2012 ("MD&A"). Management believes Adjusted EBITDA
is a useful measure in evaluating the performance of the Company.
However, Adjusted EBITDA is not a recognized earnings measure and does
not have standardized meanings prescribed by International Financial
Reporting Standards ("IFRS"). Readers of this press release are
cautioned that Adjusted EBITDA should not be construed as an
alternative to net earnings or loss determined in accordance with IFRS
as an indicator of the Company's performance.
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", "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,
competition in the heavy-duty transit bus industry, availability of
funding to the Company's customers to purchase buses 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, material losses and costs may be incurred as a result of
product liability claims, changes in Canadian or United States tax
legislation, the Company's success depends on a limited number of key
executives who the Company may not be able to adequately replace in the
event that they leave the Company, the absence of fixed term customer
contracts and the termination of contracts by customers for
convenience, the current U.S. federal "Buy-America" legislation,
certain states' U.S. content bidding preferences and certain Canadian
content purchasing policies may change and/or become more onerous,
production delays may result in liquidated damages under the Company's
contracts with its customers, the Company's ability 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 and the
indenture governing the Company's Debentures 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 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 labour could have an impact on
production levels, battery-electric propulsion on transit buses is
still largely unproven technology and there is no assurance that such
technology will result in a product desired by customers, prototype
buses must be tested and proven in operating conditions, a
commercialized product must be marketed and sold to potential customers
and there may be no significant demand for an all-electric bus from
customers, the ability of the Company to successfully execute strategic
plans and maintain profitability and risks related to acquisitions,
joint ventures and other strategic relationships with third parties.
The Company cautions that this list of factors is not exhaustive.
These factors and other risks and uncertainties are discussed in its
press releases and materials filed with the Canadian securities
regulatory authorities and 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.
For further information:
Chief Financial Officer