New Flyer Announces Second Quarter 2009 Orders and Backlog
Winnipeg, Manitoba, Canada, July 21, 2009
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, announced today that the total order activity during the second quarter of 2009 totaled 1,002 buses (1,194 equivalent production units or “EUs”) for a total of US $472 million. Of these orders, 627 buses (752 EUs) are new orders and 375 buses (442 EUs) are exercised options.
These orders are from both current and new customers and are for a variety of vehicle configurations and propulsion systems, including 35-, 40- and 60-foot buses with clean diesel, diesel-electric hybrid, compressed natural gas (“CNG”) propulsion systems and liquefied natural gas (“LNG”). Approximately 38% of the EUs representing these orders (or 450 EUs) are clean-propulsion (i.e., hybrid or natural gas) vehicles, which is a growing segment of New Flyer’s annual production.
Some of the larger order activity during the quarter included:
- Metropolitan Atlanta Rapid Transit Authority in Atlanta, GA has ordered 101 40-foot CNG buses with options for 221 additional buses in a variety of lengths and propulsion systems
- Rochester Genesee Regional Transportation Authority in Rochester, NY has ordered 10 60-foot diesel buses with options for 110 additional buses
- Milwaukee County Transit System in Milwaukee, WI has awarded New Flyer a total of 180 40-foot diesel buses with firm and option quantities to be determined
- York Region Transit in Richmond Hill, ON has exercised options to purchase 45 40-foot diesel buses
- Miami-Dade Transit in Miami, FL has exercised options to purchase 19 60-foot diesel-electric buses
- Metro Transit in Minneapolis, MN has exercised options to purchase 29 60-foot diesel buses
- Winnipeg Transit in Winnipeg, MB has exercised options to purchase 35 40-foot diesel buses
New Flyer’s order backlog as of July 5, 2009 was 9,425 EUs, up slightly from the 9,236 EUs in the backlog as of April 5, 2009. Clean propulsion vehicles represents approximately 73% of the total backlog. The dollar value of the order backlog as of July 5, 2009 was approximately US $4.0 billion, which is the same as the backlog of US $4.0 billion reported as of April 5, 2009. Currently, there are approximately 11,000 EUs in New Flyer’s new potential order pipeline or bid universe for heavy-duty transit buses, a slight reduction from the approximately 12,000 EUs reported as of April 5, 2009.
Numerous U.S transit agencies have submitted grant applications to access stimulus funding under the American Recovery and Reinvestment Act (ARRA). The deadline for applications for the first 50% of funding under ARRA was July 1, 2009. The FTA is reviewing these grant applications and is expected to obligate one-half of the apportionment by September 1, 2009. Applications from U. S. transit agencies for the second 50% of available funding are due by December 27, 2009. These applications, upon approval, will be obligated by the FTA by March 15, 2010. New Flyer has received orders from Philadelphia, PA; Chicago, IL; Rochester, NY; University of California (Davis); and Milwaukee, WI to purchase buses fully or partially with stimulus funds. These orders represent up to US $213M in sales.
New Flyer’s current backlog consists of the following mix of products:
|Firm EUs||Options EUs||Total|
|40 foot and under buses||1,646||3,445||5,091|
|60 foot buses||742||3,592||4,334|
Options included in the backlog expire, if not exercised, as follows:
|Expiry year||Option EUs|
NOTE: All dollar amounts are stated in US currency based on an exchange rate of US $1.00 = Cdn $1.16 to calculate the value of the Canadian contracts in this release.
About New Flyer
New Flyer Industries Inc. (“NFI”) is the leading manufacturer of heavy-duty transit buses in the United States and Canada. 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 2,500 employees, NFI is a technology leader, 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 products are supported with an industry-leading, comprehensive parts and service network. NFI’s income deposit securities are traded on the Toronto Stock Exchange under the symbol NFI.UN. Further information is available on Company’s web site at www.www.newflyer.com.
This press release may contain 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. 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. 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 and the other risks and uncertainties discussed in the materials filed 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, please contact:
New Flyer Industries Inc.
Chief Financial Officer