July 20, 2006
New Flyer Industries Inc. (TSX:NFI.UN), the leading manufacturer of heavy-duty transit vehicles in Canada and the United States, has been awarded orders for 465 buses, of which 381 are firm orders and 84 are options, representing a total of approximately US $181.8 million in revenue.
Summary of orders:
- City of Phoenix in Phoenix, AZ has ordered 69 40-foot diesel buses and 28 60-foot diesel buses with options for an additional 23 60-foot diesel buses.
- Fairfax County Public Transit of Fairfax, VA has ordered 53 40-foot and seven 35-foot diesel buses, marking their first order of New Flyer vehicles.
- Houston Metro in Houston, TX has ordered 40 40-foot diesel-electric buses.
- The board of directors for South Coast Area Transit (SCAT) in Oxnard, CA has approved the purchase of 26 40-foot CNG buses. The SCAT board recently decided to increase the number of units to 26 and to purchase CNG buses instead of the eight gasoline-electric buses reported in December.
- The board of directors for Washington Metropolitan Area Transit Authority (WMATA) in Washington, DC has approved 25 40-foot CNG buses.
- Long Beach Transit in Long Beach, CA has ordered 15 40-foot gasoline-electric buses.
- ABQ Ride in Albuquerque, NM has ordered six 60-foot diesel-electric buses and with options for an additional four 60-foot diesel-electric buses.
- Capital Area Transportation Authority of Lansing, MI has ordered four 40-foot diesel-electric and three 60-foot diesel-electric buses.
Halifax Metro in Halifax, NS has ordered 25 and options for 50 40-foot diesel buses.
Hamilton Public Works – Transit Division in Hamilton, ON has ordered 22 40-foot diesel buses, five 40-foot diesel-electric buses and seven 60-foot articulated diesel-electric buses.
Durham Region Transit in Durham, ON has ordered 30 40-foot diesel buses, making this order their first order of New Flyer vehicles.
Winnipeg Transit in Winnipeg, MB has ordered 12 40-foot diesel buses.
Oakville Transit in Oakville, ON has ordered four 40-foot diesel buses with options for an additional seven buses.
"New Flyer is uniquely positioned to address the diverse demands of the heavy-duty transit industry," said John Marinucci, President and CEO of New Flyer. "Management believes that the Company has the capacity to meet the potential increased US demand which is expected to result from growing ridership, pent-up replacement demand, and healthier state and local revenue base."
The Company expects that these firm orders, together with orders previously announced this year, will continue to expand New Flyer’s growing installed bus base in Canada and the United States and will contribute to further growth in New Flyer’s aftermarket operations, which provides parts, training, publications and field service to customers.
New Flyer, in the first half of 2006, has booked contracts and options for up to 1,400 buses expected to generate future revenues in excess of US $521 million. Although backlog has remained fairly stable at US $2 billion, the firm contracts portion (excluding options) has increased by 22% since the beginning of the fiscal year.
NOTEIn a news release made by New Flyer on May 18, 2006, it was incorrectly reported that Orange County Transit Authority (OCTA) had increased its order from 50 to 299 buses with 128 remaining options. This should have been reported as 78 remaining options. This was a typographical error in reporting only and does not impact the reported dollar values or the number of firm orders previously reported by New Flyer.
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 1,800 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 vehicles are supported by an industry-leading, comprehensive parts and service network. New Flyer’s Income Deposit Securities are traded on the Toronto Stock Exchange under the symbol NFI.UN. Further information is available on the Company’s website at www.newflyer.com.
This press release contains forward-looking statements relating to expected future events and financial and operating results of NFI and New Flyer Industries Canada ULC ("NFI ULC") that involve risks and uncertainties. Words such as "believes", "expects", "anticipates", "plans", "intends", "projects", "estimates" and similar expressions are intended to identify forward-looking statements. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions, including, but not limited to, the risks and uncertainties detailed in the public filings made with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, NFI and NFI ULC disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
For further information:
Glenn Asham, Chief Financial Officer
Phone: (204) 224-1251