Press Releases

New Flyer Announces Fourth Quarter and Fiscal Year 2017 Results

Summary (U.S. Dollars except as noted):

  • Fiscal 2017 Revenue of $2.4 billion increased by 4.7% compared to Fiscal 2016.
  • Fiscal 2017 Adjusted EBITDA and net earnings of $318.0 million and $191.4 million increased by 10.0% and 53.2% compared to Fiscal 2016, respectively.
  • Fiscal 2017 Earnings per share of $3.06 increased by 45.7% compared to Fiscal 2016.
  • Fiscal 2017 Free Cash Flow and dividends declared were C$206.9 million and C$76.1 million, which decreased by 4.3% and increased 40.9% compared to Fiscal 2016, respectively.  The Free Cash Flow payout ratio during Fiscal 2017 was 36.8%.
  • Total backlog of 12,157 EUs (valued at $6.02 billion) increased 19.3% during Fiscal 2017.
  • Total leverage ratio of 1.84 at end of Fiscal 2017 improved from 1.94 at end of Fiscal 2016.
  • Fiscal 2017 return on invested capital of 15.8% increased compared to 14.3% in Fiscal 2016.


WINNIPEG, March 21, 2018 – New Flyer Industries Inc. (TSX:NFI) (the “Company”), the largest transit bus and motor coach manufacturer and parts distributor in North America, today announced its results for the 13-week period ended December 31, 2017 (“2017 Q4”) and the 52-week period ended December 31, 2017 (“Fiscal 2017”).  Full audited financial statements and Management’s Discussion and Analysis (the “MD&A”) are available at the Company’s web site at: www.www.newflyer.com. Unless otherwise indicated, all monetary amounts in this press release are expressed in U.S. dollars.

Operating Results

Deliveries 2017 2016 % 2017 2016 %
Equivalent units (“EUs”) Q4 Q4 change Fiscal Fiscal change
New transit bus, coach and cutaway 1,068 993 7.6% 3,828 3,511 9.0%
Pre-owned coach 146 101 44.6% 410 381 7.6%
Average EU selling price (U.S. dollars in thousands)
New transit bus, coach and cutaway average selling price $ 506.6 $ 530.6 (4.5)% $ 511.8 $ 525.2 (2.6)%
Pre-owned coach average selling price 137.7 98.6 39.7% 122.9 122.3 0.5%



Consolidated Revenue 2017 2016 % 2017 2016 %
(U.S. dollars in millions) Q4 Q4 change Fiscal Fiscal change
New transit bus, coach and cutaway $ 541.1 $ 526.9 2.7% $ 1,959.3 $ 1,844.0 6.3%
Pre-owned coach 20.1 10.0 101.0% 50.4 46.6 8.2%
Fiberglass reinforced polymer components 2.0 100.0% 3.0 100.0%
Manufacturing 563.2 536.9 4.9% 2,012.7 1,890.6 6.5%
Aftermarket 91.4 85.7 6.7% 369.2 383.6 (3.8)%
Total Revenue $ 654.6 $ 622.6 5.1% $ 2,381.9 $ 2,274.2 4.7%

Revenue from manufacturing operations for 2017 Q4 increased 4.9% compared to the 13-week period ended January 1, 2017 (“2016 Q4”).  The increase in 2017 Q4 revenue primarily resulted from a 7.6% increase in total new transit bus, motor coach and cutaway deliveries compared to 2016 Q4 deliveries offset by a 4.5% decrease in the average selling price of new transit buses, motor coaches and cutaways resulting from a less favourable sales mix (which now includes cutaways). The suite of bus products of ARBOC Specialty Vehicles, LLC (“ARBOC”) have a substantially lower selling price than the average heavy-duty transit bus or motor coach.  Revenue from manufacturing operations for Fiscal 2017 increased 6.5% compared to the 53-week period ended January 1, 2017 (“Fiscal 2016”). New transit bus, motor coach and cutaway deliveries during Fiscal 2017 increased 9.0% compared to Fiscal 2016 while the average selling price of new transit buses, motor coaches and cutaways per EU in Fiscal 2017 decreased 2.6% compared to Fiscal 2016.

Revenue from aftermarket operations in 2017 Q4 increased 6.7% compared to 2016 Q4. Revenue from aftermarket operations for Fiscal 2017 decreased 3.8% compared to Fiscal 2016, primarily a result of customers’ reducing inventory levels, customer budgetary constraints and fleet modernization impacts.  The decrease in Fiscal 2017 aftermarket operations revenue was also impacted by an extra week in 2016 as compared to 2017. Management also believes that the increase in new transit bus and motor coach sales to a few large customers in recent years contributed to increased fleet replacement, which has had a short term dampening effect on the aftermarket parts business.

Net earnings 2017 2016 $ 2017 2016 $
(U.S. dollars in millions) Q4 Q4 change Fiscal Fiscal change
Earnings from operations $ 71.5 $ 61.2 10.3 $ 256.2 $ 216.6 39.6
Non-cash (loss) gain (1.2) (1.4) 0.2 3.4 (1.8) 5.2
Interest (expense) income (3.2) 3.6 (6.8) (17.9) (21.0) 3.1
Income tax (expense) recovered 9.0 (21.9) 30.9 (50.3) (68.9) 18.6
Net earnings $ 76.1 $ 41.5 34.6 $ 191.4 $ 124.9 66.5
Net earnings per share (basic) $ 1.21 $ 0.68 $ 0.53 $ 3.06 $ 2.10 $ 0.96

Net earnings during 2017 Q4 increased by 83.2% compared to 2016 Q4, primarily as a result of improved earnings from operations and $27.0 million of income tax net recoveries as a result of the recent U.S tax reform, partially offset by an increase interest expense. This resulted in a 77.9% increase in net earnings per Share in 2017 Q4 compared to 2016 Q4. Similarly, net earnings for Fiscal 2017 increased by 53.2% and net earnings per Share increased 45.7%, compared to Fiscal 2016.

The return on invested capital (“ROIC”) during Fiscal 2017 of 15.8% increased compared to 14.3% during Fiscal 2016. Management believes that ROIC is an important ratio and tool that can be used to assess possible investments against their related earnings and capital utilization.

Adjusted EBITDA 2017 2016 % 2017 2016 %
(U.S. dollars in millions) Q4 Q4 change Fiscal Fiscal change
Manufacturing* $ 74.7 $ 59.4 25.8% $ 246.1 $ 210.1 17.1%
Aftermarket 15.8 17.4 (9.2)% 71.9 79.0 (9.0)%
Total Adjusted EBITDA $ 90.5 $ 76.8 17.8% $ 318.0 $ 289.1 10.0%
Adjusted EBITDA % of revenue
Manufacturing* 13.2% 11.1% 2.1% 12.2% 11.1% 1.1%
Aftermarket 17.3% 20.3% (3.0)% 19.5% 20.6% (1.1)%
Total 13.5% 12.3% 1.2% 13.3% 12.7% 0.6%

* Manufacturing operation’s Adjusted EBITDA includes unallocated corporate overhead costs.

Manufacturing Adjusted EBITDA per new EU delivered 2017 2016 $ 2017 2016 $
(U.S. dollars) Q4 Q4 change Fiscal Fiscal change
Manufacturing Adjusted EBITDA (in millions) $ 74.7 $ 59.4 $ 15.3 $ 246.1 $ 210.1 $ 36.0
New transit bus, coach and cutaway deliveries (EUs) 1,068 993 75 3,828 3,511 317
Manufacturing Adjusted EBITDA per new EU delivered (in thousands) $ 69.9 $ 59.8 $ 10.1 $ 64.3 $ 59.8 $ 4.5

Adjusted EBITDA increased by 17.8% and 10.0% during 2017 Q4 and Fiscal 2017 respectively, compared to the 2016 corresponding periods, primarily as a result of the increase in manufacturing Adjusted EBITDA which more than offset the decrease in the aftermarket’s Adjusted EBITDA.

Manufacturing Adjusted EBITDA increased primarily as a result of increased deliveries and improved margins.  Contributors to the increase in margins in the period are due to cost savings synergies relating to the MCI acquisition and continued cost reductions achieved through the Company’s Operational Excellence (“OpEx”) initiatives.

Margins vary significantly between orders due to factors such as pricing, order size, propulsion system and product type and components specified by the customer. Management cautions readers that quarterly Adjusted EBITDA can be volatile and should be considered over a period of several quarters.

The 2017 Q4 aftermarket operations Adjusted EBITDA decreased 9.2% compared to 2016 Q4, due to higher overhead and SG&A costs associated with the integration efforts of the New Flyer and MCI parts businesses into NFI Parts. Higher overheads cost will continue in 2018 until the parts business combination efforts are concluded, which ultimately is intended to result in savings from footprint consolidation, freight savings, management integration and systems integration. The Company has announced it is closing a redundant parts distribution center in Hebron, KY in July 2018.

Fiscal 2017 aftermarket Adjusted EBITDA decreased 9.0% compared to Fiscal 2016 primarily a result of a 3.8% decrease in sales volumes impacted by fleet modernization and inventory reduction efforts at major customers and a related 1.1% decrease in Adjusted EBITDA as a percentage of aftermarket revenue.  Fiscal 2017 overhead and SG&A costs were higher due to the planning and start of the execution of the parts business integration efforts.  The Company is focused on maintaining and enhancing customer service levels through this transition and is also actively pursuing different revenue relationships with multiple customers such as part kits sales and vendor managed inventory relationships, which should help revenue and margins.


The 2017 Q4 net operating cash inflow of $7.4 million is the result of $50.1 million of net cash earnings offset by an investment in non-cash working capital of $42.7 million. The net operating cash inflow for 2016 Q4 of $34.6 million resulted from $58.2 million of net cash earnings offset by an investment in non-cash working capital of $23.6 million.

The Fiscal 2017 net operating cash inflow of $172.1 million is the result of $179.1 million of net cash earnings offset by an investment in non-cash working capital of $7.1 million. The net operating cash inflow for Fiscal 2016 of $149.7 million resulted from $172.1 million of net cash earnings offset by an investment in non-cash working capital of $22.4 million.

Free Cash Flow and Declared Dividends 2017 2016 % 2017 2016 %
(in millions) Q4 Q4 change Fiscal Fiscal change
Free Cash Flow (USD dollars) $ 59.3 $ 33.6 76.5% $ 161.2 $ 165.2 (2.4)%
Free Cash Flow (CAD dollars) 74.4 45.1 65.0% 206.9 216.3 (4.3)%
Declared dividends (CAD dollars) $ 20.5 $ 14.9 37.6% $ 76.1 $ 54.0 40.9%
Payout ratio (declared dividends/Free Cash Flow) CAD$ 27.5% 33.0% (5.5)% 36.8% 25.0% 11.8%

The Company generated Free Cash Flow of C$74.4 million during 2017 Q4, an increase of 65.0% compared to  C$45.1 million in 2016 Q4, primarily a result of the notable decrease in current income taxes during 2017 Q4. The Company declared dividends in 2017 Q4 of C$20.5 million, an increase of 37.6% compared to C$14.9 million in 2016 Q4. The amount of dividends declared increased in 2017 Q4, primarily as a result of the conversion of the convertible debentures into Shares and the 36.8% annual dividend rate increase announced by the Company in May 2017.

The Company generated Free Cash Flow of C$206.9 million during Fiscal 2017 which decreased 4.3% compared to C$216.3 million in Fiscal 2016 primarily resulting from increased cash capital expenditures which offsets the increase in Adjusted EBITDA generated in Fiscal 2017. The Company’s declared dividends in Fiscal 2017 of C$76.1 million increased 40.9% compared to C$54.0 million in Fiscal 2016.  The Fiscal 2017 Free Cash Flow payout ratio (declared dividends divided by Free Cash Flows) is 36.8% compared to 25.0% in Fiscal 2016.

Property, Plant and Equipment (“PPE”) expenditures 2017 2016 % 2017 2016 %
(USD dollars in millions) Q4 Q4 change Fiscal Fiscal change
PPE expenditures $ 24.5 $ 13.3 84.2% $ 57.4 $ 29.9 92.0%
Less PPE expenditures funded by capital leases (3.4) (2.9) 17.2% (4.6) (5.2) (11.5)%
Cash acquisition of PPE reported on statement of cash flows $ 21.1 $ 10.4 102.9% $ 52.8 $ 24.7 113.8%

The December 31, 2017 liquidity position of $222.3 million relates to amounts available under the revolving portion of the Credit Facility (the “Revolver”) compared to a liquidity position of $349.6 million at October 1, 2017. The liquidity has decreased $127.3 million during 2017 Q4 primarily as a result of funding the December 1, 2017 acquisition of ARBOC with borrowings from the Revolver. As at December 31, 2017 there were $102.0 million of direct borrowings, $9.9 million of bank indebtedness and $8.8 million of outstanding letters of credit related to the $343.0 million Revolver.

PPE cash expenditures increased 102.9% and 113.8% during 2017 Q4 and Fiscal 2017 respectively, compared to the 2016 corresponding periods primarily as a result of investments to fund a variety of initiatives such as: MCI’s facility improvements; the Company’s recently opened Vehicle Innovation Center in Anniston, AL; OpEx activities; insourcing and continuous improvement programs.

The Company’s total leverage ratio (defined as net indebtedness divided by Adjusted EBITDA) of 1.84 at December 31, 2017 improved from the ratio of 1.94 at January 1, 2017.  As at December 31,  2017, the Company was in compliance with its banking covenant that requires the total leverage ratio to be less than 3.75.


Management estimates that the heavy-duty bus manufacturers delivered approximately 6,330 EUs in 2017 to Canadian and U.S. transit operators, which is a 9% increase from the total delivered in 2016.  Similarly, management estimates that 2,470 motor coaches were delivered in Canada and the U.S. during 2017.

Management estimates that New Flyer’s market share of heavy-duty transit buses delivered in Canada and the United States for 2017 was approximately 43%, compared to the estimated market share of 44% for 2016.  As well, the Company estimates that MCI’s 2017 market share of motor coaches delivered in Canada and the U.S has increased from 39% to 43%.

Management continues to expect bus procurement activity throughout the U.S. and Canada will remain stable through 2018 based on an aging fleet, overall economic conditions, expected customer fleet replacement plans, and active or anticipated procurements.

As the population ages and ease of access becomes more of a focus, management also believes the demand for low-floor cutaway and medium-duty buses with greater accessibility will grow from its current level of 5% of the total cutaway market, following the migration that occurred in the heavy-duty transit bus space.  Management estimates that ARBOC delivered 64% of all the low-floor cutaway buses that were delivered in 2017.

The Company’s master production schedule combined with current backlog and orders anticipated to be awarded by customers under new procurements is expected to enable the Company to deliver approximately 4,350 EUs during the 52-week period ended December 30, 2018  (“Fiscal 2018”) with production rates varying from quarter to quarter due to product mix and award timing.

2018 deliveries are expected to comprise of the following vehicle types:

Heavy-Duty Transit Motor Coach Cutaway and Medium-Duty Total
2,750 EU 1,100 EU 500 EU 4,350 EU

With a current healthy production schedule, low leverage, and solid liquidity, management continues to be focused on investments to enhance competitiveness and estimates PPE expenditures for Fiscal 2018 to be in the range of approximately $63 to $73 million. This estimate is approximately $8 million higher than what was originally disclosed, as the revised range includes amounts that were planned for Fiscal 2017 but were carried forward to Fiscal 2018 and also as a result of a better understanding of the PPE investments needed in the newly acquired composite businesses.

With respect to parts, ongoing surveys and discussions with large parts customers continue to indicate a number of market effects including: customers’ inventory reduction strategies, budget constraints and fleet modernization efforts.  Although part sales remain difficult to forecast, management expects that the parts market will remain relatively stable in 2018, but may experience quarter-to-quarter volatility as is typical for this segment of the business.

U.S. Tax Reform

As a result of U.S. Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act, which was enacted on December 22, 2017 and generally effective for tax years beginning after December 31, 2017, the Company expects a reduction in its consolidated effective tax rate (“ETR”).  The Company’s consolidated ETR prior to U.S. tax reform ranged from 32% to 36%, reflecting benefits related to interest deductions and the domestic production activities deduction which will no longer be available. Although the U.S. federal statutory tax rate decreased from 35% to 21%, the Company’s ETR for 2018 and subsequent years is expected to be in the range of 29% to 31%.  This range includes U.S. state taxes which brings the combined U.S. federal and state statutory tax rate to approximately 27% and the impact related to the fact that the Company’s most significant Canadian operating entity (New Flyer Industries Canada ULC, an entity taxed in both the U.S. and Canada) will not be able to fully utilize foreign tax credits as the Canadian tax rate is now higher than the U.S. Federal tax rate.

The Fiscal 2017 ETR decreased when compared to Fiscal 2016, primarily a result of the net impact of the revaluation of deferred tax balances due to the recently announced lowering of the U.S. corporate federal tax rate which contributed to an income tax recovery of $33.0 million offset by the write-down of the foreign tax credit carryover pool of $6.0 million, for a net income tax recovery of $27.0 million. These two items decrease the Company’s Fiscal 2017 ETR by 11.2%.

North American Free Trade Agreement (“NAFTA”)

The Company’s manufacturing facilities operate in an integrated manner with parts and components shipping in both directions over the Canadian/U.S. border.  The Company’s supply chain has been established to ensure compliance with the more stringent U.S. federal Buy America requirements for rolling stock funded by Federal Transit Administration grants. In the case of both New Flyer and MCI public customers, a certain quantity of bus and motor coach shells are manufactured in Canada and shipped for final assembly in the United States.  In the case of private sector sales, all MCI motor coaches are manufactured in Canada.  ARBOC manufacturers the cutaways in the United States and sells to customers in the U.S. and Canada.

Under the current NAFTA agreement, all shells and finished buses and coaches move across the border free of any duties. Nearly all the purchased components sourced in the NAFTA region meet the current 62.5% regional content requirement and therefore also move across the border free of any duties. The Company today pays immaterial tariffs for non-NAFTA supply.

Any amendments that would impose duties on parts, shells and finished buses and coaches could have a financial impact given materials comprise 69% of manufacturing costs and complete buses and coaches are imported to each country on a regular basis.  Management continues to closely monitor NAFTA negotiations and is developing contingency plans to mitigate should changes occur to the current agreement.

Corporate Name Change

The board of directors of the Company has resolved to change the Company’s name to “NFI Group Inc.” to better reflect the multi-platform nature of its business that now includes buses built by New Flyer, MCI, ARBOC and parts sold by NFI Parts.  The Company intends to seek the approval of its shareholders for the name change at the next annual and special meeting of shareholders scheduled to be held on May 10, 2018.

Conference Call

A conference call for analysts and interested listeners will be held on Thursday March 22, 2018 at 2:00 p.m. (CT).  The call-in number for listeners is 888-231-8191, 647-427-7450 or 403-451-9838. A live audio feed of the call will also be available at:


A replay of the call will be available from 5:00 p.m. (CT) on March 22, 2018 until 11:59 p.m. (CT) on March 29, 2018. To access the replay, call 855-859-2056 or 416-849-0833 and then enter pass code number 6475198. The replay will also be available on New Flyer’s web site at www.www.newflyer.com.

Non-IFRS Measures

“Adjusted EBITDA” consists of earnings before interest, income taxes, depreciation, amortization and other non-cash charges and certain other non-recurring charges as set out in the MD&A.  “Free Cash Flow” means net cash generated by operating activities adjusted for changes in non-cash working capital items, interest paid, interest expense, income taxes paid, current income tax expense, effect of foreign currency rate on cash, defined benefit funding, non-recurring transitional costs relating to business acquisitions, costs associated with assessing strategic and corporate initiatives, defined benefit expense, cash capital expenditures, proportion of the total return swap realized, proceeds on disposition of property, plant and equipment, gain received on total return swap settlement, fair value adjustment to acquired subsidiary company’s inventory and deferred revenue and principal payments on capital leases.  References to “ROIC” are to net operating profit after taxes (calculated by Adjusted EBITDA less depreciation of plant and equipment and income taxes at the expected effective tax rate) divided by average invested capital for the last twelve month period (calculated as to shareholders’ equity plus long-term debt, obligations under finance leases, other long-term liabilities, convertible debentures and derivative financial instrument liabilities less cash).

Management believes Adjusted EBITDA, ROIC and Free Cash Flow are useful measures in evaluating the performance of the Company. However, Adjusted EBITDA, ROIC and Free Cash Flow are not recognized earnings measures and do not have standardized meanings prescribed by International Financial Reporting Standards (“IFRS”) and may not be comparable to similarly titled measures used by other issuers. Readers are cautioned that ROIC and Adjusted EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with IFRS as an indicator of the Company’s performance, and Free Cash Flow should not be construed as an alternative to cash flows from operating, investing and financing activities determined in accordance with IFRS, as a measure of liquidity and cash flows. A reconciliation of Adjusted EBITDA and Free Cash Flow to net earnings and cash flow from operations, respectively, is provided in the MD&A.

About the Company

The Company and its subsidiaries comprise the largest bus and motor coach manufacturer and parts distributor in North America, with 32 fabrication, manufacturing, distribution, and service centers located across Canada and the United States and employing nearly 6,000 team members.

The Company provides a comprehensive suite of mass transportation solutions under several brands: New Flyer® (heavy-duty transit buses), ARBOC® (low-floor cutaway and medium-duty buses), MCI® (motor coaches), and NFI Parts (bus and coach parts, support, and service). The Company’s vehicles incorporate the widest range of drive systems available ranging from clean diesel, natural gas, diesel-electric hybrid, trolley-electric, battery-electric, and fuel cell electric.

  • New Flyer is North America’s heavy-duty transit bus leader and offers the most advanced product line under the Xcelsior® and Xcelsior CHARGE New Flyer actively supports over 44,000 heavy-duty transit buses (New Flyer, NABI, and Orion) currently in service, of which 7,300 are powered by electric motors and battery propulsion and 1,600 are zero-emission.
  • ARBOC is North America’s low-floor, body-on-chassis (“cutaway”) bus leader serving transit, paratransit, and shuttle applications. With more than 3,000 buses in service, ARBOC leads the low-floor cutaway bus market providing unsurpassed passenger accessibility and comfort over traditional high-floor cutaway vehicles. ARBOC also offers a medium-duty bus for transit and shuttle applications.
  • Motor Coach Industries is North America’s motor coach leader offering the J-Series, the industry’s best-selling intercity coach for 11 consecutive years, and the D-Series, the industry’s best-selling motor coach line in North American history. MCI actively supports over 28,000 coaches currently in service.
  • NFI Parts is North America’s most comprehensive parts organization, providing replacement parts, technical publications, training, service, and support for the Company’s bus and motor coach product lines.

The common shares of the Company are traded on the Toronto Stock Exchange under the symbol NFI.

Forward-Looking Statements

Certain statements in this press release are “forward‑looking statements”, which reflect the expectations of management regarding the Company’s future growth, results of operations, performance and business prospects and opportunities. The words “believes”, “anticipates”, “plans”, “expects”, “intends”, “projects”, “forecasts”, “estimates” and similar expressions are intended to identify forward‑looking statements. These forward‑looking statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Such differences may be caused by factors which include, but are not limited to, availability of funding to the Company’s customers to purchase transit buses and coaches and to exercise options and to purchase parts or services at current levels or at all, aggressive competition and reduced pricing in the industry, material losses and costs may be incurred as a result of product warranty issues and product liability claims, changes in Canadian or United States tax legislation, the absence of fixed term customer contracts and the suspension or the termination of contracts by customers for convenience, the current U.S federal “Buy-America” legislation may change and/or become more onerous, inability to achieve U.S. Disadvantaged Business Enterprise Program requirements, local content bidding preferences and requirements under Canadian content policies may change and/or become more onerous, trade policies in the United States and Canada (including NAFTA) may undergo significant change, potentially in a manner materially adverse to the Company,  production delays may result in liquidated damages under the Company’s contracts with its customers, inability of the Company to execute its planned production targets as required for current business and operational needs, currency fluctuations could adversely affect the Company’s financial results or competitive position in the industry, the Company may not be able to maintain performance bonds or letters of credit required by its existing contracts or obtain performance bonds and letters of credit required for new contracts, third party debt service obligations may have important consequences to the Company, the covenants contained in the Company’s senior credit facility (“Credit Facility”) could impact the ability of the Company to fund dividends and take certain other actions, interest rates could change substantially and materially impact the Company’s profitability, the dependence on limited or unique sources of supply, the timely supply of materials from suppliers, the possibility of fluctuations in the market prices of the pension plan investments and discount rates used in the actuarial calculations will impact pension expense and funding requirements, the Company’s profitability and performance can be adversely affected by increases in raw material and component costs, the availability of labour could have an impact on production levels, new products must be tested and proven in operating conditions and there may be limited demand for such new products from customers, the Company may have difficulty selling pre-owned coaches and realizing expected resale values, inability of the Company to successfully execute strategic plans and maintain profitability, development of competitive products or technologies, the Company may incur material losses and costs as a result of product liability claims, catastrophic events may lead to production curtailments or shutdowns, dependence on management information systems and risks related to cyber security, dependence on a limited number of key executives whom may not be able to be adequately replaced if they leave the Company, employee related disruptions as a result of an inability to successfully renegotiate collective bargaining agreements when they expire, risks related to acquisitions and other strategic relationships with third parties, inability to successfully integrate acquired businesses and assets into the Company’s existing business and to generate accretive effects to income and cash flow as a result of integrating these acquired businesses and assets. The Company cautions that this list of factors is not exhaustive. These factors and other risks and uncertainties are discussed in its press releases and materials filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com.

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. These forward‑looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by applicable securities laws.

For further information:

Jon Koffman
Investor Relations
Tel: (204) 224-6672
E-mail: [email protected]