(TSX:NFI; TSX:NFI.DB.U) New Flyer Industries Inc. (“New Flyer” or the “Company”), the leading manufacturer of heavy-duty transit buses in Canada and the United States, announced today that San Francisco Municipal Transportation Authority (“SFMTA”), which oversees all transportation in the City, including the Municipal Railway (MUNI), has approved the purchase of 45 heavy-duty 40-foot Xcelsior diesel-electric hybrid buses.
New Flyer has a long-standing relationship with San Francisco that dates back to 1988, with approximately 190 diesel and electric trolley buses being built and delivered since then. San Francisco has a total fleet size today of approximately 800 buses and trolleys, with New Flyer buses representing approximately 8% of the active fleet. The 45 new Xcelsior hybrids will replace 13 year old buses currently in service.
SFMTA will purchase buses from an umbrella contract with the procurement department of another US State that enables the assignment of up to 500 options to any US transit agency. The contract enables the buses to include the necessary components specific to San Francisco’s operating environment. This umbrella contract, which was announced in New Flyer’s press release on April 17, 2012, is a ‘standing offer’ open to public transit agencies across the United States, and as a result, New Flyer does not record any firm orders or options as part of its backlog.
“Investing in infrastructure and operations will help improve and sustain our transit service for the long term,” said Mayor Ed Lee. “These new hybrids demonstrate our commitment to a green and clean future for our City's transit system and will help improve transit times and rider experience.”
“These buses will allow for an improved Muni system,” said Tom Nolan, Chairman of the Board of Directors. “Not only will they make for better service, but they will continue the work we are doing to be one of the cleanest fleets in the country.”
“We are proud to have been selected by San Francisco to provide New Flyer’s industry-leading Xcelsior Bus, which offers “Best in Class” features such as improved accessibility with a 1 to 7 sloped ramp, quiet and spacious passenger compartment amenities, maintenance access and a greener, more clean environment,” said Paul Soubry, New Flyer’s President and Chief Executive Officer.
Pending final approval from the SFMTA’s Board of Supervisors, production of these 40-foot Xcelsior hybrid buses is anticipated to begin in early 2013 and will be manufactured and assembled bumper-to-bumper in New Flyer’s US manufacturing facility at St. Cloud, MN. All buses are expected to be delivered by the end of the summer 2013.
About New Flyer
New Flyer (newflyer.com) is the leading manufacturer of heavy-duty transit buses in Canada and the United States. 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, Ontario.
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 31,000 heavy-duty buses in the United States and Canada. All products are supported with an industry-leading, comprehensive parts and service network.
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 New Flyer 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 economic conditions of and funding availability for customers to purchase buses and to exercise options for buses and to purchase parts or services and the other risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at sedar.com. Due to the potential impact of these factors, New Flyer 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.