New Flyer Provides Financial Update: 2008 Q4 Adjusted EBITDA Negatively Impacted by Canadian Dollar Depreciation

    WINNIPEG, Feb. 3 /CNW/ - New Flyer Industries Inc. (TSX:NFI.UN) ("New
Flyer" or the "Company"), the leading manufacturer of heavy-duty transit buses
in Canada and the United States, today announced Adjusted EBITDA (as defined
below) for the fourth quarter of 2008 ("2008 Q4") will be significantly below
the Adjusted EBITDA reported for the third quarter of 2008 ("2008 Q3"). The
Company intends to release its 2008 financial statements on Wednesday, March
18, 2009 followed by a conference call for analysts and others the following
day. Conference call details are provided below. The Company's year end
financial statements are currently being completed and undergoing audit.
    The Company's Adjusted EBITDA, reported in U.S. dollars, is expected to
be reduced by approximately US$ 5.5 million in 2008 Q4 compared to 2008 Q3
primarily due to the significant depreciation in the value of the Canadian
dollar during the period. Based on the most recent calculations, management
expects that the depreciation of the Canadian dollar resulted in a reduction
of Adjusted EBITDA for 2008 Q4 of approximately US$ 4 million. The Company's
cash flow for 2008 Q4 and for the year ended December 28, 2008 was adequate to
maintain the current level of distributions to IDS holders as reductions in
interest, income taxes and distributions denominated in Canadian dollars
provided a natural hedge against the impact of Canadian dollar depreciation.
    In advance of the completion and release of the financial statements, New
Flyer is providing this update regarding its expected financial results for
2008 Q4. The results described above are based on management's current
expectations and are subject to change in the process of completing the
financial statements and audit process.
    As previously reported in the Company's Management Discussion and
Analysis for 2008 Q3, the Company's net Canadian dollar inflow together with
the significant and accelerated depreciation of the Canadian dollar in 2008 Q4
results in a reduction of revenue and Adjusted EBITDA when measured in US
dollars. New Flyer operates in both Canada and the U.S. resulting in revenues
and operating costs being denominated in both of these countries' currencies,
with the Company's financial statements being reported in US dollars. During
2008 Q4, the Company's Canadian dollar revenue significantly exceeded Canadian
dollar operating costs. However, interest costs, income taxes, and
distributions to IDS holders are primarily denominated in Canadian dollars
which results in a natural hedge against a portion of the foreign exchange
impact on net cash inflow of Canadian dollars. This natural hedge mitigates
the impact on net Canadian dollar cash flow due to Canadian dollar
depreciation. Approximately US$ 3 million of the US$ 4 million expected
reduction in Adjusted EBITDA is offset by the natural hedge resulting in an
expected US$ 1 million reduction to net cash flow.
    A conference call for analysts and interested listeners will also be held
on Thursday, March 19, 2008 at 4:30 p.m. (Toronto time). The call-in number
for listeners is 800-733-7560. A live audio feed of the call will also be
available at:
    A replay of the call will be available from 6:30 p.m. (ET) on March 19,
2009 to 11:59 p.m. on March 26, 2009. To access the replay, call 416-640-1917
or 877-289-8525, enter the pass code number 21297007, and then press the pound
(No.) sign. The replay will also be available on the Company's website at
    Unless otherwise indicated all monetary amounts in this press release are
expressed in U.S. dollars.

    Non-GAAP Measures

    Adjusted EBITDA consists of earnings before interest, income taxes,
depreciation, amortization and other non-cash charges, adjusted for IPO and
follow-on offering related costs and certain other non-recurring charges as
set out in the Company's prior published Management Discussion and Analysis.
Management believes Adjusted EBITDA is a useful measure in evaluating the
performance of the Company. Adjusted EBITDA is not an earnings measure
recognized under GAAP and does not have a standardized meaning as prescribed
by GAAP. Therefore, Adjusted EBITDA may not be comparable to similar measures
presented by other entities. Investors are cautioned that Adjusted EBITDA
should not be construed as an alternative to net income or loss determined in
accordance with GAAP as an indicator of New Flyer's performance or to cash
flows from operating, investing and financing activities as measures of
liquidity and cash flows.

    About New Flyer

    New Flyer is the leading manufacturer of heavy-duty transit buses in
Canada and the United States. 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 approximately 2,300 employees,
New Flyer is a technology leader in the heavy-duty transit market, 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 of New Flyer's
products are supported by an industry-leading, comprehensive parts and service
network. New Flyer's Income Deposit Securities are listed on the Toronto Stock
Exchange under the symbol NFI.UN.

    Forward-Looking Statements

    Certain statements in this press release are "forward-looking
statements", which reflect the expectations of management regarding the
Company's 2008 financial results and its 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
the Company's 2008 financial results and 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 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 may change and/or become more onerous, production
delays may result in liquidated damages under the Company's contracts with its
customers, 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
contracts, third party debt service obligations may have important
consequences to the Company, interest rates could change substantially and
materially impact the Company's profitability, the dependence on limited
sources of supply, the Company's profitability and performance can be
adversely affected by increases in raw material and component costs, and the
availability 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 are available on SEDAR at
    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.

For further information:

For further information: Glenn Asham, Chief Financial Officer, Tel:
(204) 224-1251, E-mail:

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