Grande West Announces First Quarter Financial Results

VANCOUVER, May 15, 2018 /PRNewswire/ - Grande West Transportation Group Inc. (TSXV: BUS; OTC PINK: GWTNF) – May 15, 2018: ("Grande West" or the "Company"), a Canadian manufacturer of mid-sized multi-purpose transit vehicles for sale in Canada and the United States, announced today financial results for the first quarter ending March 31, 2018.

First Quarter Highlights

• Bus and aftermarket parts revenue of $22,440,211 compared to $4,548,968 for the three months ended March 31, 2017
• Net income of $420,209 compared to a net loss of $1,084,865 for the three months ended March 31, 2017
• Adjusted EBITDA of $1,675,737 compared to a loss of $364,222 for the three months ended March 31, 2017 (see reconciliation of Net earnings to Adjusted EBITDA below)
• Deliveries of fifty eight (58) Vicinity buses compared to twelve (12) for the three months ended March 31, 2017

Management reports 2018 first quarter financial results of fifty eight (58) Vicinity buses delivered, revenue of $22,440,211, net income of $420,209 and gross profit margin of 13.5%. During the quarter the Company focused on continued growth, operational efficiencies, implementation of world-class systems and key executive team additions to support these endeavours.

Selected  Quarterly Information

The following table shows the unaudited results of the Company for the three months ended March 31, 2018 compared to the three months ended March 31, 2017 with selected balance sheet items as at March 31, 2018 and December 31, 2017.  All amounts are stated in Canadian dollars.

Backlog: Current total firm orders for 2018 production are for approximately two hundred forty (240) buses valued at over $85 million CAD. Deliveries will vary from quarter to quarter to account for different build specifications, customer acceptance and revenue recognition. Management expects to deliver approximately two hundred forty (240) Vicinity buses during the 2018 fiscal year.

Jean-Marc Landry, Grande West CEO stated, "Grande West is diligently working on identified key areas of focus which include U.S. sales, Buy America assembly and optimizing our systems and operations. We have added strong new personnel to our team, most recently welcoming Dan Buckle as our Chief Financial Officer. New team members are now being integrated into the Company and have already started making a positive impact. 2018 is an important year for setting up for the future growth of Grande West."

Corporate Update

General Overview

Management is pleased to have delivered a profitable quarter, but realizes the opportunity to increase operational efficiencies and cost savings to bring more to the bottom line. The addition of Dan Buckle as CFO in May was directed by the current and future needs of the Company. Reducing costs and increasing margin as Grande West grows into the U.S. market is a key focus for management and Dan's addition along with the new VP of Sales and Marketing, Rob Mowat, are clear steps in this direction.  

US Buy America Production

The College Park facility located near the Atlanta Airport in Georgia is our U.S. final assembly facility. As previously noted, Grande West is proceeding carefully in the initial stages of final assembly ramp up in Atlanta. We are working diligently on verification and validation of the final assembly process and documentation with the assistance of a contracted third-party auditor. Our first bus has been completed, we will continue to ramp up progressively over the next few months with a target of reaching a production level of 10 buses per month as quickly as possible in 2018.

Reconciliation of Net earnings to Adjusted EBITDA

Management believes that Adjusted EBITDA is an important measure in evaluating the historical operating performance of the Company. However, Adjusted EBITDA is not a recognized earnings measure under IFRS and does not have a standardized meaning prescribed by IFRS. Accordingly, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Readers of this MD&A are cautioned that Adjusted EBITDA should not be construed as an alternative to net earnings or loss determined in accordance with IFRS as indicators of the Company's performance, or cash flows from operating activities determined in accordance with IFRS as a measure of liquidity and cash flow. The Company defines and has computed EBITDA as earnings before interest, income taxes, depreciation and amortization, foreign exchange, and share based compensation.

The following tables reconcile net earnings or losses and cash flow from operations to Adjusted EBITDA based on the historical consolidated financial statements of the Company for the periods indicated.

Financial Statements and Management's Discussion and Analysis for the first quarter 2018 can accessed at the Company's website at http://grandewest.com/index.php/investors/stock-info.

A conference call to discuss these results will be held today at 8:00 AM PST / 11:00 AM EST. The call-in number is (866) 215-5508 or (514) 841-2157 and can be accessed by entering passcode 46905938. A recording of the call will be available on the website shortly at http://www.grandewest.com/index.php/investors/media.

About Grande West Transportation Group

Grande West is a Canadian company that designs, engineers and manufactures mid-size multi-purpose transit vehicles for public and commercial enterprises.  Grande West's Best-in-Class heavy-duty Vicinity bus is available in 27.5, 30 and 35 foot models powered by clean diesel or CNG designed with affordability, accessibility and global responsibility in mind. It costs significantly less than a regular 40 foot transit bus, is more maneuverable, burns less fuel and emits less harmful emissions. Grande West will soon be offering a new product which will be the first Crossover Vehicle in the transit space - a medium-duty, monocoque-designed rear engine vehicle.

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 compliant to Buy America certification, and along with Alliance Bus Group ("ABG"), its exclusive US distributor, is actively pursuing opportunities in public and private transit fleet operations that would benefit from Grande West's vehicles.

For further information please contact:

Grande West Transportation 
John LaGourgue
VP Corporate Development 
Ph: 1-604-607-4000
[email protected]  
www.grandewest.com                                   

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.

Related Links

http://www.grandewest.com/