VANCOUVER, Nov. 10, 2017 /CNW/ - Grande West Transportation Group Inc. (TSXV: BUS; OTC PINK: GWTNF) – November 10, 2017: ("Grande West" or the "Company"), a Canadian manufacturer of mid-sized multi-purpose transit vehicles for sale in Canada and the United States, is pleased to announce financials for the third quarter ending September 30, 2017.
Record bus and aftermarket parts revenue of $25,864,037
120% quarter over quarter revenue increase; $25,864,037 versus $11,780,851 in Q2 2017
Second consecutive profitable quarter, record net income of $1,088,003
Record quarterly EBITDA of $1,324,136
Record quarterly deliveries of seventy five (75) Vicinity buses
Selected Quarterly Information
The following table shows results for the quarter ended September 30, 2017 and three months ended August 31, 2016 stated in Canadian dollars.
3 months ended September 30, 2017
3 months ended, August 31, 2016
Net earnings (loss)
Basic and diluted earnings (loss) per share
Cash and cash equivalents
Non-current financial liabilities
Management reports Q3 2017 results of seventy five (75) Vicinity buses delivered, revenue of $25,864,037, net income of $1,088,003 and gross profit margin of 14%. This is Grande West's third consecutive quarter with record deliveries and revenue, and its second consecutive profitable quarter. Third quarter deliveries included more than 50% of legacy, lower margin Vicinity buses which resulted in gross profit of 14%. During the quarter the Company continued to invest for continued growth and operational efficiencies in its facilities, operations, world-class systems and innovative new product offerings.
Backlog: Current total firm orders for Q4 2017 through 2018 delivery are for two hundred seventy nine (279) buses valued at over $105 million CAD.
William Trainer, Grande West CEO stated, "Third quarter was a big jump for us as we made the next step in hitting new records in revenues, deliveries and profit. This quarter also was the last of our legacy deliveries with lower margin Vicinity orders and we are now able to see average future gross profit increases towards our target of 20%. Our R&D team was very busy over the past few months and we are very excited to have announced a new mid-size transit vehicle, the first Crossover Vehicle to soon compete in the medium-duty transit space. We are working diligently on closing out 2017 strong, and have the backlog in place to continue our momentum of deliveries and profit into 2018."
Additional information about current operations, production and Buy America Vicinity can be located in the Management's Discussion and Analysis under Recent Highlights and Developments at http://sedar.com/.
A conference call to discuss these results will be held today at 8:00 AM PST / 11:00 AM EST. The call-in number is (866) 215-5508 or (514) 841-2157 and can be accessed by entering passcode 45747146. A recording of the call will be available on the website shortly at http://www.grandewest.com/index.php/investors/media.
About Grande West Transportation Group
Grande West is a Canadian company that designs, engineers and manufactures mid-size multi-purpose transit vehicles for public and commercial enterprises. Grande West's Best-in-Class heavy-duty 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, is more maneuverable, burns less fuel and emits less harmful emissions. Grande West will soon be offering a new product which will be the first Crossover Vehicle in the transit space - a medium-duty, monocoque-designed rear engine vehicle.
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 compliant to Buy America certification, and along with ABG, its exclusive US distributor, is actively pursuing opportunities in public and private transit fleet operations that would benefit from Grande West's vehicles.
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.
For further information: Grande West Transportation, John LaGourgue, VP Corporate Development, Ph: 1-604-607-4000, [email protected], www.grandewest.com