VANCOUVER, May 15, 2018 /CNW/ - Grande West
Transportation Group Inc. (TSXV: BUS; OTC PINK: GWTNF) –
May 15, 2018: ("Grande West" or the
"Company"), a Canadian manufacturer of mid-sized multi-purpose
transit vehicles for sale in Canada and the
United States, announced today financial results for the
first quarter ending March 31,
2018.
First Quarter Highlights
- Bus and aftermarket parts revenue of $22,440,211 compared to $4,548,968 for the three months ended
March 31, 2017
- Net income of $420,209 compared
to a net loss of $1,084,865 for the
three months ended March 31,
2017
- Adjusted EBITDA of $1,675,737
compared to a loss of $364,222 for
the three months ended March 31, 2017
(see reconciliation of Net earnings to Adjusted EBITDA below)
- Deliveries of fifty eight (58) Vicinity buses compared to
twelve (12) for the three months ended March
31, 2017
Management reports 2018 first quarter financial results of fifty
eight (58) Vicinity buses delivered, revenue of $22,440,211, net income of $420,209 and gross profit margin of 13.5%. During
the quarter the Company focused on continued growth, operational
efficiencies, implementation of world-class systems and key
executive team additions to support these endeavours.
Selected Quarterly Information
The following table shows the unaudited results of the Company
for the three months ended March 31,
2018 compared to the three months ended March 31, 2017 with selected balance sheet items
as at March 31, 2018 and December 31, 2017. All amounts are stated
in Canadian dollars.
|
|
|
|
|
3 months
ended, March 31,
2018
|
3 months ended,
March 31, 2017
|
|
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(restated)
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$
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$
|
Revenue
|
22,440,211
|
4,548,968
|
Gross
margin
|
3,020,971
|
748,600
|
Net income
(loss)
|
420,209
|
(1,084,865)
|
Basic and diluted
income (loss) per share
|
0.01
|
(0.02)
|
|
March 31,
2018
|
December 31,
2017
|
Cash and cash
equivalents
|
4,929,477
|
4,223,350
|
Working
capital
|
16,300,218
|
14,886,254
|
Total
assets
|
56,154,087
|
46,962,090
|
Non-current financial
liabilities
|
1,267,750
|
1,115,954
|
Backlog: Current total firm orders for 2018 production are for
approximately two hundred forty (240) buses valued at over
$85 million CAD. Deliveries will vary
from quarter to quarter to account for different build
specifications, customer acceptance and revenue recognition.
Management expects to deliver approximately two hundred forty (240)
Vicinity buses during the 2018 fiscal year.
Jean-Marc Landry, Grande West CEO
stated, "Grande West is diligently
working on identified key areas of focus which include U.S. sales,
Buy America assembly and optimizing our systems and operations. We
have added strong new personnel to our team, most recently
welcoming Dan Buckle as our Chief
Financial Officer. New team members are now being integrated into
the Company and have already started making a positive impact. 2018
is an important year for setting up for the future growth of
Grande West."
Corporate Update
General Overview
Management is pleased to have delivered a profitable quarter,
but realizes the opportunity to increase operational efficiencies
and cost savings to bring more to the bottom line. The addition of
Dan Buckle as CFO in May was
directed by the current and future needs of the Company. Reducing
costs and increasing margin as Grande
West grows into the U.S. market is a key focus for
management and Dan's addition along with the new VP of Sales and
Marketing, Rob Mowat, are clear
steps in this direction.
US Buy America Production
The College Park facility
located near the Atlanta Airport in Georgia is our U.S. final assembly facility.
As previously noted, Grande West is
proceeding carefully in the initial stages of final assembly ramp
up in Atlanta. We are working
diligently on verification and validation of the final assembly
process and documentation with the assistance of a contracted
third-party auditor. Our first bus has been completed, we will
continue to ramp up progressively over the next few months with a
target of reaching a production level of 10 buses per month as
quickly as possible in 2018.
Reconciliation of Net earnings to Adjusted EBITDA
Management believes that Adjusted EBITDA is an important measure
in evaluating the historical operating performance of the Company.
However, Adjusted EBITDA is not a recognized earnings measure under
IFRS and does not have a standardized meaning prescribed by IFRS.
Accordingly, Adjusted EBITDA may not be comparable to similar
measures presented by other issuers. Readers of this MD&A are
cautioned that Adjusted EBITDA should not be construed as an
alternative to net earnings or loss determined in accordance with
IFRS as indicators of the Company's performance, or cash flows from
operating activities determined in accordance with IFRS as a
measure of liquidity and cash flow. The Company defines and has
computed EBITDA as earnings before interest, income taxes,
depreciation and amortization, foreign exchange, and share based
compensation.
The following tables reconcile net earnings or losses and cash
flow from operations to Adjusted EBITDA based on the historical
consolidated financial statements of the Company for the periods
indicated.
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|
|
|
|
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3 months ended,
March 31, 2018
|
3 months ended,
March 31, 2017
|
|
|
|
|
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$
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$
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Net Comprehensive
Income (loss)
|
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420,209
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(1,084,865)
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Add back
|
|
|
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Stock based
compensation
|
|
305,736
|
271,426
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Interest
|
|
287,476
|
268,028
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Foreign exchange
(gain) loss
|
|
568,203
|
117,050
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Amortization and
Depreciation
|
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94,113
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64,139
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Adjusted
EBITDA
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1,675,737
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(364,222)
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Financial Statements and Management's Discussion and Analysis
for the first quarter 2018 can accessed at the Company's website at
http://grandewest.com/index.php/investors/stock-info.
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
46905938. 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 Alliance Bus Group ("ABG"),
its exclusive US distributor, is actively pursuing opportunities in
public and private transit fleet operations that would benefit from
Grande West's vehicles.
For further information please contact:
Grande West Transportation
John LaGourgue
VP Corporate Development
Ph: 1-604-607-4000
jlagourgue@grandewest.com
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.
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.
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SOURCE Grande West Transportation Group Inc.