New Flyer to Support Chicago Transit Authority’s Comprehensive Program to Perform Mid-Life Overhaul of 1,029 Transit Buses
Winnipeg, Manitoba, Canada – February 4, 2013: (TSX:NFI; TSX:NFI.DB.U) New Flyer Industries Inc. (“New Flyer” or the “Company”), the leading manufacturer of heavy-duty transit buses in the United States and Canada, announced today that the Board of Directors of the Chicago Transit Authority (“CTA”) recently awarded one of two contracts to New Flyer in support of the agency’s transit bus mid-life overhaul program. This mid-life program is for CTA’s fleet of 1,029 New Flyer buses currently in operation that have been in service for up to seven years and have more than 275,000 miles each in daily stop-and-go traffic.
The notice-to-proceed (NTP) received by New Flyer calls for the provision of certain spare parts and labor services for the mid-life overhaul program estimated at approximately $50 million over the next 24 months for a specific group of 400 New Flyer buses. New Flyer and its local Disadvantaged Business Enterprise (DBE) partner, Dependable Bus Equipment, Inc., will provide the material to its other Chicago labor partners, Bus & Truck of Chicago and Cummins NPower, LLC.
New Flyer will also provide an estimated $25 million of spare parts and labor services directly to Cummins NPower, LLC which was awarded the second mid-life contract by CTA for specific scopes of work on another group of 629 New Flyer buses.
This program is the first of its kind for New Flyer’s Aftermarket business, whereby New Flyer will provide CTA with a turn-key solution for a mid-life program. The contract is expected to commence in the first quarter of 2013, with an average of six buses undergoing overhaul each week over the next two years.
“This is a significant step in New Flyer’s strategy to grow our product support and aftermarket business. It goes beyond simply selling spare parts – rather it builds on our mission to provide best value and support to our customers for the life of their buses,” said Paul Soubry, New Flyer’s President and Chief Executive Officer. “We applaud CTA for taking this progressive step forward to ensure the longevity and cost effective performance of its existing fleet – all with focus on delivering safe and reliable transit for the community.”
CTA President Forrest Claypool added, “This project is critical to keeping buses operating efficiently, smoothly and reliably – and also will help the CTA avoid the significant additional maintenance costs that the agency would incur if work were deferred.”
NOTE: All dollar amounts are stated in US currency.
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in the United States and Canada. The Company’s three manufacturing facilities – in St. Cloud, MN; Crookston, MN; and Winnipeg, MB – are all ISO 9001, ISO 14001 and OHSAS 18001 certified. The Company currently operates a parts fabrication facility in Elkhart, IN and four parts distribution centers in Erlanger, KY; Fresno, CA; Winnipeg, MB and Brampton, ON. The Company also operates a service center in Arnprior, ON.
With a skilled workforce of over 2,000 employees, New Flyer 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 diesel-electric hybrid vehicles. New Flyer has delivered over 32,000 heavy-duty buses in the United States and Canada. All products are supported with an industry-leading, comprehensive parts and service network. Further information is available on New Flyer’s web site at www.www.newflyer.com.
The common shares and convertible unsecured subordinated debentures of New Flyer are traded on the Toronto Stock Exchange under the symbols NFI and NFI.DB.U, respectively.
This press release may contain forward-looking statements relating to expected future events and financial and operating results of the Company 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 economic conditions of and funding availability for customers to purchase buses and to purchase parts or services, customers may not exercise options to purchase additional buses, the ability of customers to terminate contracts for convenience 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, the Company disclaims 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.
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