Grande West Announces December 31 (STUB) Year End Financials
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
[email protected]
www.grandewest.com
Paradox Public Relations
Karl Mansour
Ph: 866-460-0408
[email protected]
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.
For further information: Grande West Transportation, John LaGourgue, Ph: 1-604-607-4000, [email protected], www.grandewest.com; Paradox Public Relations, Karl Mansour, Ph: 866-460-0408, [email protected], www.paradox-pr.ca
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