New Flyer Industries Inc. (TSX: NFI.UN) (“New Flyer” or the “Company”), the leading manufacturer of heavy-duty transit buses in Canada and the United States, announced today that the Company has signed a new three-year agreement with Metrolinx for up to 287 diesel and/or diesel-electric hybrid 40-foot heavy-duty transit buses for a total value of up to C$114 million. Orders and deliveries under this agreement are expected to occur between 2011 and 2013. Under this program, participating agencies located in the Province of Ontario can acquire new buses with additional provincial financial support. This Metrolinx contract is for New Flyer’s newest bus model, Xcelsior.
Metrolinx, based in Toronto, Ontario, Canada, was created in 2006 and is an agency of the Ontario government. Its mission is to integrate and improve all modes of transportation in the Greater Toronto and Hamilton area of the province. Several Ontario municipalities and regions are participants in this contract, including Barrie, Burlington, Durham Region, Hamilton, Kingston, London, Milton, North Bay, St. Catharines, Welland, Windsor and York Region. Additional Ontario municipalities may also be able to participate in this agreement providing they meet certain conditions. To date, the following transit systems have obtained board approval for purchases of buses to be built in 2011 as part of this contract:
• Windsor Transit - five hybrid buses
• Durham Region - fifteen diesel buses
• London Transit – twelve diesel and hybrid buses.
This is the third such contract awarded by Metrolinx, and all three have been awarded to New Flyer. New Flyer has delivered a total of 378 buses to 13 Metrolinx participants under the first two contracts. Since 1988, New Flyer has delivered over 2,800 buses in Ontario, 68 of which have been the new Xcelsior models.
“We are pleased to be awarded this contract for the third consecutive time from our longstanding customers in the Province of Ontario, and we look forward to continuing to build these valuable relationships,” said Paul Soubry, New Flyer’s President and Chief Executive Officer. In April, the Company announced that it plans to open a new parts distribution center in Ontario in 2011 to serve this region with improved response time and support for a wide assortment of parts for both New Flyer and other common makes and models of transit buses. “Ontario and specifically Metrolinx represents an important customer base for New Flyer and we are committed to providing total support solutions to better serve this region and assist our customers in reducing their total bus cost of ownership.”
"Metrolinx is pleased to be able to support municipalities by providing fully accessible, clean diesel and diesel-electric hybrid buses that will better support public transit not only in the Greater Toronto and Hamilton Area (GTHA) but also across the province," said Bruce McCuaig, Metrolinx President and CEO. "This partnership among Metrolinx, participating municipalities and New Flyer is an important example of how different groups can effectively work together to provide safe, efficient, comfortable, environmentally-friendly travel alternatives."
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 Winnipeg, MB; St. Cloud, MN; and Crookston, MN - are all ISO 9001, ISO 14001 and OHSAS 18001 certified. The Company currently operates a parts fabrication facility in Elkhart, IN and three parts distribution centers (PDC) in Winnipeg, MB; Erlanger, KY; and Fresno, CA. A fourth PDC is expected to open in Ontario in 2011.
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. All products are supported with an industry-leading, comprehensive parts and service network. The Company’s income deposit securities are traded on the Toronto Stock Exchange under the symbol NFI.UN.
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 transit agencies to purchase buses, parts and services, customers may not issue purchase orders for all or any of the buses available under open purchase contracts such as the one discussed in this press release 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.