West Transportation Group is a Canadian bus manufacturer which designs,
engineers and manufactures mid-size buses for transit authorities and
commercial enterprises. Grande West's Best-in-Class rated
Vicinity bus is available in 30' and 35' models designed with
affordability, accessibility and global responsibility in mind. It
costs significantly less than a regular 40 foot transit bus, burns less
fuel and emits less harmful emissions.
The Company has been successful in supplying Canadian municipal
transportation agencies and private operators with new buses and is
receiving follow-on orders in many Canadian transit agencies. Grande
West is Buy America compliant, and along with ABG, its exclusive US
distributor, has sold Vicinity buses to US–based public and private
operators and is actively pursuing more opportunities throughout the US.
Grande West Announces 2017 First Quarter
Grande West Transportation Group Inc. (CNW Group/Grande West
Transportation Group Inc.) Grande West Transportation Group Inc. (CNW
Group/Grande West Transportation Group Inc.)
VANCOUVER, May 30, 2017 /CNW/ - Grande West Transportation Group Inc.
(TSXV: BUS; OTC PINK: GWTNF) – May 30, 2017: ("Grande West" or the
"Company"), a Canadian bus manufacturer of heavy-duty mid-sized transit
buses for sale in Canada and the United States, announced today
financials for the first quarter ending March 31, 2017.
Record bus and aftermarket parts revenue of $4,548,968
Record gross profit of $952,392
Record gross profit margin of 21% (6% at Feb 29, 2016)
Average Vicinity bus sales price of $350,000 ($291,000 at Feb 29, 2016)
Adjusted EBITDA loss of $540,079 (EBIDTA less stock based compensation
Raised $13,680,000 in a budget deal financing, strengthening balance
Reduced long term debt by $2,945,135, reducing monthly debt service by
Selected Quarterly Information
The following table shows results for the quarter ended March 31, 2017
and February 28, 2016 stated in Canadian dollars.
3 months ended
March 31, 2017
3 months ended,
February 29, 2016
Revenue – Bus sales and after-market parts
Gross profit (loss)
Net earnings (loss)
Basic and diluted earnings (loss) per share
Cash and cash equivalents
Non-current financial liabilities
During the three month periods ending February 28, 2016 and March 31,
2017, 12 Vicinity buses were delivered in each period.
Highlights and Developments in 2017
Management reports Q1 2017 results of twelve (12) Vicinity buses
delivered and revenue recognized for revenues of $4,548,968, gross
profit of $952,392 and gross profit margin of 21%.
A total of thirty-two (32) buses were received at Company headquarters
during February in Q1, twelve (12) delivered, with the balance to be
delivered to customers in Q2. Production, shipping and delivery is
underway to fulfill the first BC Transit production run for fifty-five
(55) of ninety seven (97) Vicinity buses.
Our production and delivery ramp is now tracking contracts announced in
In January, Grande West began offering clean burning, low emission
Cummins ISB G engines for delivery on 2017 orders. The ISB G Engine,
powered by compressed natural gas (CNG) has the lowest North American
Emissions standards. Thirteen (13) of these buses are being delivered
to the Atlanta International Airport in Q3 2017.
In January, BC Transit ordered thirty nine (39) Vicinity buses
totalling approximately $13 million. This is in addition to BC
Transit's previous orders for fifty eight (58) buses, bringing their
total current outstanding orders up to ninety seven (97).
Also in January, the City of Edmonton ordered thirty three (33)
Vicinity buses totalling approximately $13 million. This is the third
order from the City since September 2016, bringing their total firm
orders for Vicinity buses to 49 units.
In March, Grande West closed a bought deal offering of common shares of
the Company, at a price of $1.90 per Offered Share for gross proceeds
to the Company of $13,680,000. A total of 7,200,000 Offered Shares were
sold pursuant to the Offering, including 870,000 Offered Shares issued
as a result of the full exercise of the Underwriters' over-allotment
option. The Offering was conducted by a syndicate of underwriters led
by Beacon Securities Limited and including Echelon Wealth Partners Inc.
On March 14, the Company appointed Taras Kindzersky to the position of
Chief Operating Officer to assist management with the Company's
continued growth. Mr. Kindzersky has over 20 years of business
experience working at a variety of large corporations, specifically
Finning Canada, a division of Finning International Inc., the world's
largest Caterpillar equipment dealer. He joins Grande West from one of
the 20 largest credit unions in Canada where he led the business
banking division as Executive Vice-President, Business Banking. In his
first month, Taras is already making a significant impact in
organizational efficiencies, banking relationships and process flows.
Also in March, Grande West received new customer orders for
approximately $7.5 million. St. John's Transportation Commission
ordered three (3) Vicinity buses, the City of Oakville has ordered an
additional eight (8), the City of Burlington has ordered an additional
seven (7) and the City of Welland ordered two (2).
On March 27, the Company announced its first US public transit order
from the Metropolitan Atlanta Rapid Transit Authority ("MARTA"). Grande
West's exclusive US distributor Alliance Bus Group ("ABG") has
delivered to MARTA ten (10) Vicinity buses that are now in operation in
their transit system.
"We are committed to creating more efficient transportation options for
our customers. That means building a more highly layered, customized
service model," said MARTA GM/CEO Keith Parker. ''These new Vicinity
vehicles allow our bus operators to travel safely into neighbourhoods
where our standard fleet could not easily navigate while offering more
space than our current Mobility bus options."
Again in March, Grande West announced it had secured a USA
manufacturing facility. Alliance Bus Group, Grande West's exclusive US
distributor, will produce Buy America compliant Vicinity buses for sale
to US transit authorities. The ability to leverage ABG existing
facilities, staff, and deep knowledge of bus technology provides Grande
West with a solid foundation upon which it can quickly ramp to
production. Plans are well underway and first Buy America compliant
production will begin in Q3 of 2017.
On April 28th, the Series A and B Convertible Debentures were
accelerated and converted $1,520,000 in debt. 2,235,294 common shares
were issued at a price of $0.68 to settle the debentures resulting in a
reduction of $120,000 per year in debt service.
On May 23, new orders for nine (9) Vicinity buses was announced for a
combined order total of approximately $4.5 million. Hamilton Street
Railway ("HSR") has ordered five (5) compressed natural gas ("CNG")
Vicinity buses. This is a first time order for HSR for delivery in the
first quarter of 2018. The City of Moose Jaw also ordered an additional
four (4) Vicinity buses.
Backlog: Current total firm orders for Q2 2017 through 1H 2018 delivery
are for two hundred sixty five (265) buses valued at over $96 million
2017 Q1 Deliveries to date are for twelve (12) buses.
Additional information about current operations, production and Buy
America production plans can be located in this quarter's Management's
Discussion and Analysis under Recent Highlights and Developments.
A conference call to discuss these results will be held today at 11:00
AM EST. The call-in number is (866) 215-5508 or (514) 841-2157 and can
be accessed by entering passcode 44958431. A recording of the call will
be available on the website the following day at
Paradox Public Relations
Neither the TSX-V nor its Regulation Service Provider (as that term is
defined in the policies of the TSX-V) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain "forward-looking information" and
"forward-looking statements" (collectively "forward-looking
statements") within the meaning of applicable Canadian securities
legislation. All statements, other than statements of historical fact,
included herein, including without limitation, statements regarding the
use of proceeds from the Private Placement, are forward-looking
statements. Forward-looking statements are frequently, but not always,
identified by words such as "expects", "anticipates", "believes",
"intends", "estimates", "potential", "possible", and similar
expressions, or statements that events, conditions, or results "will",
"may", "could", or "should" occur or be achieved. Forward-looking
statements involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such statements.
Important factors that could cause actual results to differ materially
from Grande West's expectations include uncertainties relating to the
receipt of final approval from the TSX-V; and other risk and
uncertainties disclosed in Grande West's reports and documents filed
with applicable securities regulatory authorities from time to time.
Grande West's forward-looking statements reflect the beliefs, opinions
and projections on the date the statements are made. Grande West
assumes no obligation to update the forward-looking statements or
beliefs, opinions, projections, or other factors, should they change,
except as required by law.
SOURCE Grande West Transportation Group Inc.
CONTACT: Grande West Transportation, John LaGourgue, Ph:
1-604-607-4000, firstname.lastname@example.org, www.grandewest.com; Paradox
Public Relations, Karl Mansour, Ph: 866-460-0408,