New Flyer Announces Fourth Quarter 2009 Orders and Backlog and Recent Award of Contract
Winnipeg, Manitoba, Canada, January 15, 2010
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 fourth quarter of 2009 totaled 711 buses (753 equivalent production units or “EUs”) for a total of $308 million. This total order activity consisted of new firm and new option orders of 506 buses (531 EUs) and exercised options of 205 buses (222 EUs).
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, gasoline-electric hybrid and compressed natural gas (“CNG”) propulsion systems. Approximately 20% of the EUs representing these orders (or 141 EUs) are clean-propulsion (i.e., hybrid or natural gas) vehicles.
Some of the larger order activity during the quarter included:
- Connecticut Department of Transportation (CDOT) has awarded New Flyer a contract for 20 firm buses with up to 387 option buses. During the quarter, CDOT exercised 48 of these options. The total order includes diesels and hybrids of various lengths.
- Detroit Department of Transportation has exercised options to purchase 50 40-foot diesel buses
- VIA in San Antonio, TX has exercised options to purchase 27 40-foot diesel-electric buses
- Mississauga Transit of Mississauga, ON has ordered 22 60-foot diesel buses
- Brandon Transit in Brandon MB has ordered 7 35-foot and 4 40-foot diesel buses
New Flyer’s order backlog as of December 31, 2009 was 8,990 EUs, up slightly from the 8,949 EUs in the backlog as of October 4, 2009. Clean propulsion vehicles represent approximately 69% of the total backlog. The dollar value of the order backlog as of December 31, 2009 (and as of October 4, 2009 as previously reported) was approximately $3.9 billion.
Currently, there are approximately 13,200 EUs in New Flyer’s new potential order pipeline or bid universe for heavy-duty transit buses, a moderate increase from the approximately 12,300 EUs reported as of October 4, 2009.
New Flyer’s current backlog consists of the following mix of products:
|Firm EUs||Options EUs||Total|
|40 foot and under buses||1,444||3,468||4,912|
|60 foot buses||638||3,440||4,078|
Options included in the backlog expire, if not exercised, as follows:
|Expiry year||Option EUs|
No options expired in the fourth quarter of 2009.
Subsequent to the year-end order activity, New Flyer has been awarded a bus procurement contract by a U.S. customer for up to 500 buses of varying lengths and propulsion systems, representing a minimum value of approximately $173 million should all buses be purchased. The contract documentation is currently being finalized and the customer has not yet issued any purchase orders under this award. The ability to purchase buses under this procurement are assignable to other transit systems. The 2009 year-end backlog numbers (both EUs and dollar value) do not include this award.
NOTE: All dollar amounts are stated in US currency based on an exchange rate of US $1.00 = Cdn $1.05 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 over 2,000 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 press releases and 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