Grande West Announces Year End Financials
VANCOUVER, Dec. 21, 2016 /CNW/ - Grande West Transportation Group Inc. (TSXV: BUS; OTC PINK: GWTNF) – December 21, 2016: ("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 ending August 31, 2016.
Selected Yearly Information
The following table shows the audited results of the Company for the year ended August 31, 2016 and 2015 and is stated in Canadian dollars.
| Year Ended |
||||
| August 31, 2016 |
August 31, 2015 |
|||
| Revenue |
$ |
8,211,180 |
$ |
6,046,199 |
| Gross profit (loss) |
513,580 |
(139,175) |
||
| Basic and diluted earnings from operations earnings per share |
- |
- |
||
| Net earnings (loss) |
(3,986,409) |
(4,463,829) |
||
| Basic and diluted earnings (loss) per share |
(0.08) |
(0.10) |
||
| Cash and cash equivalents |
316,444 |
697,858 |
||
| Working Capital |
2,483,883 |
1,725,381 |
||
| Total Assets |
9,987,040 |
3,915,284 |
||
| Non-current financial liabilities |
3,021,182 |
915,829 |
||
During the year ended August 31, 2016, the Company sold 16 Vicinity buses compared to the same period ended August 31, 2015 when the Company sold 18 Vicinity buses.
Recent Highlights and Developments Subsequent to August 31, 2016
- Of the twenty-one (21) buses slated for delivery in 2H 2016, three (3) were revenue recognized in the quarter ending August 31, 2016. The additional eighteen (18) buses were delivered subsequently in 2016 for total unaudited revenues of over $6 million. These revenues will be reported in the audited stub fourth quarter ending December 31, 2016.
- In September, the City of Edmonton awarded Grande West a long term contract for up to 5 years with forecasted purchase of forty-five (45) buses valued at about $18 million. Sixteen (16) Vicinity buses have been ordered for 2017 delivery for approximate value of $6.1 million.
- In September, BC Transit ordered an additional seventeen (17) Vicinity buses totalling $6 million. This is in addition to BC Transit's initial order for forty-one (41) buses valued at approximately $13 million announced May 10, 2016.
- In October, new contracts were awarded for the City of Saskatoon for four (4) Vicinity valued at $1.9 million, Welland Transit for two (2) and the City of Cobourg for one (1) for an additional $1.5 million.
- Also in October the City of Prince Albert, Saskatchewan ordered seven (7) Vicinity buses totalling approximately $2.95 million. This was a key order as it marked one of the first Right-Sizing opportunities for transit as these seven buses were originally slated to be 40' conventional buses. Vicinity 35' models replaced a significant portion of Prince Albert's fleet.
- On November 9, the Company announced its first US customer, the Hartsfield-Jackson Atlanta International Airport. The thirteen (13) Vicinity buses will be purchased and operated by Standard Parking.
- Also in November, Grande West received a third Vicinity order from Cape Breton for two (2) Vicinity buses totalling $900,000.
- On December 9, 2016 the Company announced it had achieved Buy America certification. Buy America status enables the Company's exclusive US distributor, Alliance Bus Group ("ABG"), to bid on all public transit opportunities in the USA with Vicinity 30 and 35 foot models.
- Through the last quarter the Company is pleased to note that a significant number of the share purchase warrants and options were exercised, representing a total number of 1,751,667 Common Shares of the Corporation for total purchase price of $1,044,680.
- The Company has firm orders for 175 buses for 2017 delivery worth over $61 million. Management expects further orders for 2017 delivery in Canada and the US.
William Trainer, President and CEO of Grande West commented, "2016 has been a transformational year for Grande West as the hard work of the past eight years has come together. We have strengthened the team in advance of 2017 deliveries which will begin in January and are very excited about our business outlook. We have streamlined and increased efficiencies in operations, manufacturing, supply chain and quality control which will increase gross margin in all future Vicinity production. The recent Buy America certification has opened up increased tender opportunities in the US and we are currently bidding on opportunities to supply over 150 buses through our distributor ABG. As the order book for 2017 continues to grow, we will begin to populate the order book for 2018 and beyond."
A conference call for analysts and interested listeners can be accessed today at 11AM EST in North America by dialling 1-800-977-8002, or internationally at 1-404-920-6650 and entering passcode 5727526#. After the financial results and updates are discussed by management, a question and answer period will be provided.
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 30 and 35 foot models 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 certified, 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
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.
SOURCE Grande West Transportation Group Inc.
Grande West Transportation: John LaGourgue, Ph: 1-604-607-4000, [email protected], www.grandewest.com
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