WINNIPEG, Oct. 19 /CNW/ - (TSX:NFI.UN) New Flyer Industries Inc. ("NFI") and New Flyer Industries Canada ULC ("NFI ULC") (together, "New Flyer" or the "Company") today announced that the fiftieth consecutive monthly cash distribution on the income deposit security ("IDS") of New Flyer in the amount of C$0.0975 will be payable on November 16, 2009, to holders of record of IDSs at the close of business on October 30, 2009. The IDSs trade on the Toronto Stock Exchange under the symbol NFI.UN.
Each IDS consists of one common share of NFI (a "common share") and C$5.53 principal amount of 14% subordinated notes of NFI ULC (the "subordinated notes"), an indirect subsidiary of NFI. The total distribution of C$0.0975 per IDS reflects a cash dividend of C$0.03298 per common share and an interest payment of C$0.06452 per C$5.53 principal amount of subordinated notes for the period from October 1, 2009 to October 31, 2009.
New Flyer's management continues to expect that the Company will continue to make monthly distributions to the holders of the IDSs at the current rate.
These expectations are based on the assumption that the Company is successful in delivering all customers' orders as planned for the remainder of 2009 and beyond and the Company being able to successfully reduce the existing excess work in process, collect payment for buses from customers in accordance with the terms of such customers' contracts and being able to successfully manage the Company's working capital.
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in the United States and Canada. The Company's three facilities -- in Winnipeg, MB, St. Cloud, MN and Crookston, MN - are all ISO 9001, ISO 14001 and OHSAS 18001 certified. With a skilled workforce of over 2,000 employees, the Company 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 gasoline-electric and diesel-electric hybrid vehicles. All products are supported with an industry-leading, comprehensive parts and service network. New Flyer's income deposit securities are traded on the Toronto Stock Exchange under the symbol NFI.UN. Further information is available on Company's web site at www.newflyer.com.
All dividends paid by NFI to Canadian residents on the common shares after December 31, 2005 are designated as "eligible dividends" for purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) and any corresponding provincial and territorial tax legislation. In addition, unless stated otherwise, all dividends paid by NFI hereafter on the common shares are designated as "eligible dividends" for the purpose of such rules.
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 are described in this press release and the Company's public disclosure documents, including, but not limited to, competition in the heavy-duty transit bus industry, availability of funding to the Company's customers at current levels or at all, 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 "Buy-America" legislation and the Ontario government's "Buy Canadian" purchasing policy 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 and reallocate production as a result of the deferred customer order described in previous press releases, the Company's ability to generate cash from the planned reduction in excess work in process, 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 senior credit facility and subordinated note indenture of NFI ULC could impact the ability of the Company to fund distributions 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 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 and the availability and efficiency of labour could have an impact on production levels. The Company cautions that this list of factors is not exhaustive. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities and 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 assume 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: For further information: New Flyer Industries Inc., Glenn Asham, Chief Financial Officer, Telephone: (204) 224-1251