NFI Announces First Quarter 2021 Results with Electric Buses Representing 10% of Deliveries
All figures quoted in
Performance as follows:
- First quarter sales of
$574 million (955 equivalent units ("EUs") delivered). - NFI advanced its zero-emission, battery- and fuel cell-electric vehicle ("ZEBs") activity with 94 EUs delivered (10% of 2021 Q1 deliveries) and 1,568 EUs, or 18%, of ZEBs in backlog, up from 6% as at the end of 2020 Q4.
- Ending total backlog position (both firm and options) up slightly, at 8,586 EUs (valued at
$4.4 billion ), with Active Bids up 14% from 2020 Q4. - First quarter Adjusted EBITDA of
$55 million ; Earnings per Share of$0.11 and Adjusted Earnings Per Share of$0.09 . - Quarter-end liquidity position of
$319 million , up$86 million from 2020 Q4, and up$172 million from 2020 Q1. Free cash flow of$15 million in 2020 Q1. - "NFI Forward" strategic cost reduction initiative realized Adjusted EBITDA savings of
$12 million, and a further$1 million of Free Cash Flow savings in 2021 Q1. - Reaffirmed Fiscal 2021 Adjusted EBITDA guidance of
$220 million to$240 million , with potential for greater than 50% improvement from Fiscal 2020.
Key financial metrics of the quarter are highlighted below:
| (in millions except deliveries and per Share amounts) | 2021 Q1 | Change(1) | 2021 Q1 LTM | Change(1) | |||||||||||
| Deliveries (EUs) | 955 | (324 | ) | 4,047 | (1,644 | ) | |||||||||
| IFRS Measures | |||||||||||||||
| Revenue | $(136.3 | ) | $(753.9 | ) | |||||||||||
| Net earnings (loss) | 7.0 | 74.2 | (83.5 | ) | (57.8 | ) | |||||||||
| Net earnings (loss) per Share | 0.11 | 1.19 | (1.32 | ) | (0.91 | ) | |||||||||
| Non-IFRS Measures(2) | |||||||||||||||
| Adjusted EBITDA | $(1.3 | ) | $(161.4 | ) | |||||||||||
| Adjusted Net Earnings (Loss) | 6.1 | 6.6 | (40.6 | ) | (119.6 | ) | |||||||||
| Adjusted Net Earnings (Loss) per Share | 0.09 | 0.10 | (0.64 | ) | (1.79 | ) | |||||||||
| Free Cash Flow | 15.5 | 1.3 | 28.8 | (113.4 | ) | ||||||||||
| Liquidity | 172.4 | 172.4 | |||||||||||||
| (1) | Results noted herein are for the 13-week period ("2021 Q1”) and the 52-week period ("LTM 2021 Q1”) ended |
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| (2) | Adjusted EBITDA, Adjusted Net Earnings (Loss), Adjusted Net Earnings (Loss) per Share and Free Cash Flow are not recognized earnings measures and do not have standardized meanings prescribed by IFRS. Therefore, they may not be comparable to similar measures presented by other issuers. See “Non-IFRS Measures” and detailed reconciliations of IFRS Measures to Non-IFRS Measures in the Appendix of this press release. | ||||||||||||||
"NFI reached several major milestones in the first quarter of 2021, including the completion of over 40 million zero-emission service miles, and the installation of more than 200 EV chargers. In addition, we launched several new electric and fuel cell-electric vehicle models, plus our first ever Level 4 automated transit bus. We delivered a solid financial quarter and began to see the benefits of market recovery with active procurements in
"Our full-service mobility solutions offering includes zero-emission vehicles, charging infrastructure, telematics, and parts and service aftermarket support, which, when combined with our strengths in innovation and the ability to integrate complex technology, position us to lead the evolution to zero-emission fleets, or ZEvolution. NFI has the strongest customer relationships, a track record of delivery, propulsion agnostic production facilities and the industry's broadest offering of zero-emission vehicles, including the battery-electric MCI J4500 CHARGE motor coach that we launched just two days ago," Soubry added.
Segment Results
Manufacturing segment revenue for 2021 Q1 decreased by
2021 Q1 Manufacturing Adjusted EBITDA increased by
During 2021 Q1, NFI delivered 94 battery-electric and fuel cell-electric vehicles, representing 9.8% of total deliveries, to customers in the
Aftermarket segment revenue for 2021 Q1 recovered to pre-pandemic levels, as quarterly revenue of
Net Earnings and Adjusted Net Earnings
2021 Q1 net earnings of
2021 Q1 Adjusted Net Earnings of
Liquidity
The Company's liquidity position, which combines cash on-hand plus available capacity under its credit facilities as at
NFI believes that its existing liquidity, together with cash flows from operations, will allow it to pursue its operational and strategic goals, such as investments in NFI’s zero-emission products and electric propulsion technology, investments required under the previously disclosed NFI Forward cost-reduction initiative and other potential growth opportunities, in addition to continuing to return capital to shareholders through dividends. Continuing the quarterly dividend payment reflects the confidence of the Board of Directors in the Company’s business while maintaining the financial flexibility required to operate during this period of continued uncertainty due to the COVID-19 pandemic.
Outlook
Management continues to expect that NFI’s end markets will continue to be impacted by COVID-19 in 2021; however, the Company expects improvement in its financial results as markets recover and the NFI Forward initiative delivers improvements to operating metrics. Recent multi-billion funding announcements by governments in NFI's core markets is encouraging for market recovery and NFI's longer-term outlook.
Management believes recent progress in COVID-19 vaccine distribution and resulting economic responses are positive for continued market recovery. NFI's end markets' recovery from COVID-19 will be dependent upon several factors, including government support, COVID-19 case rates, vaccine distribution, the length of the pandemic, mutations of the virus, travel restrictions, and economic reopening activity. These factors will differ by product line and geography. In addition, the pandemic has created global supply chain challenges, including supplier factory shutdowns, shipping and freight delays and a shortage of semiconductor chips, all of which could have an adverse impact on NFI’s remaining 2021 production schedule and parts sales.
At its 2021 Investor Day, NFI unveiled its vision to drive the increased adoption of ZEBs, what the Company is calling the ZEvolutionTM. NFI projects a growing adoption of zero-emission vehicles over the next 10 to 15 years as operators in
NFI continues to forge ahead with its transformative cost reduction initiative, "NFI Forward," launched in
Financial Outlook
Management reaffirms its previously provided 2021 financial guidance for revenue of
Management cautions readers that the consolidated annual results have an element of seasonality due to the nature of each unique market segment and the varied annual production and vacation schedule of each production facility. With the addition of ADL in 2019, this has become even more pronounced with the third and fourth quarters now being periods with higher delivery volumes. However, as a result of the ongoing COVID-19 pandemic, management anticipates changes to seasonality in 2021. Management expects the following revenue and Adjusted EBITDA seasonality on a year-over-year basis as compared to the same period in 2020: 2021 Q2 to be significantly higher, 2021 Q3 to be flat to slightly down, and 2021 Q4 to be higher. Management also reminds readers that, for 2021, NFI's first quarter, second and third quarters are 13-week periods, while the fourth quarter is a 14-week period for a 53-week fiscal year.
"Although the COVID-19 pandemic continues to impact our customers and NFI's operations, we are encouraged by the ongoing deployment of vaccines and a gradual resumption in travel and transit ridership," said Soubry. "Acknowledging the critical role public transit and coach operations play in driving economic activity, lowering emissions and connecting communities, governments in all of our core markets have made unprecedented financial commitments to 'Build Back Better' and drive the adoption of zero-emission vehicles. We look forward to supporting this vision by delivering the best vehicles and solutions to our customers and the end users of all our products."
Corporate Social Responsibility
As one of the world’s leading independent global bus and coach manufacturers, a robust environmental, social and governance (“ESG”) strategy is integral to how the Company conducts business, and is crucial in the creation of long-term and sustainable value for all NFI stakeholders. We are committed to continuing to innovate in order to deliver smarter, safer, more sustainable, and more connected public transportation. NFI’s end products are a key driver to enable cities to lower emissions, decrease congestion and enable economic opportunity. NFI is committed to employees, customers and shareholders, while also being responsible to the environment and the communities in which we live and work.
NFI's 2019 Environmental Social Governance Report can be accessed on NFI’s website at www.nfigroup.com. NFI's 2020 Environmental Social Governance Report will be released in
First Quarter 2021 Results Conference Call
A conference call for analysts and interested listeners will be held on
A live webcast of the call and presentation will also be available at: https://edge.media-server.com/mmc/p/v9x4xgp6
A replay of the call will be accessible from
Annual General Meeting of Shareholders
NFI's Annual General Meeting of Shareholders will also be held on
About
Leveraging 450 years of combined experience, NFI is leading the battery-electric transition of mass mobility around the world. With zero-emission buses and coaches, infrastructure, and technology, NFI meets today’s urban demands for scalable smart mobility solutions. Together, NFI is enabling more livable cities through connected, clean, and sustainable transportation.
NFI is a leading independent global bus manufacturer providing a comprehensive suite of mass transportation solutions in ten countries under brands: New Flyer® (heavy-duty transit buses),
NFI Shares are traded on the
For investor inquiries, please contact:
P: 204.224.6382
Stephen.King@nfigroup.com
Appendix - Reconciliation Tables
Reconciliation of Net Earnings (Loss) 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 International Financial Reporting Standards ("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 press release 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. See Non-IFRS measures for the definition of Adjusted EBITDA. The following table reconciles net earnings (loss) to Adjusted EBITDA based on the historical Financial Statements of the Company for the periods indicated.
| ( |
2021 Q1 | 2020 Q1 | 52-Weeks Ended |
52-Weeks Ended |
||||||||||||
| Net earnings (loss) | $ | 7,033 | $ | (67,239 | ) | $ | (83,464 | ) | $ | (25,688 | ) | |||||
| Addback(1) | ||||||||||||||||
| Income taxes | 7,586 | 4,578 | 4,652 | 38,920 | ||||||||||||
| Interest expense(12) | 10,123 | 37,135 | 56,857 | 92,432 | ||||||||||||
| Amortization | 24,564 | 30,140 | 105,208 | 115,728 | ||||||||||||
| (Gain) loss on disposition of property, plant and equipment | (355 | ) | 163 | (574 | ) | 137 | ||||||||||
| Fair value adjustment for total return swap(5) | (438 | ) | 1,970 | (2,290 | ) | 2,875 | ||||||||||
| Unrealized foreign exchange loss (gain) on non-current monetary items and forward foreign exchange contracts | 2,529 | (43 | ) | (6,478 | ) | 952 | ||||||||||
| Costs associated with assessing strategic and corporate initiatives(2) | — | — | 1,396 | 13,064 | ||||||||||||
| Past service costs and other pension costs (recovery)(7) | — | (463 | ) | 55 | (2,064 | ) | ||||||||||
| Fair value adjustment to acquired subsidiary company's inventory and deferred revenue(4) | — | — | — | 31,004 | ||||||||||||
| Proportion of the total return swap realized(6) | 447 | (940 | ) | 862 | (1,513 | ) | ||||||||||
| Equity settled stock-based compensation | 650 | 14 | 2,406 | 1,161 | ||||||||||||
| Recovery on currency transactions(8) | — | — | — | (4,287 | ) | |||||||||||
| Prior year sales tax provision(9) | 40 | (56 | ) | 280 | 4,038 | |||||||||||
| Extraordinary COVID-19 costs(10) | 289 | — | 47,651 | — | ||||||||||||
| Impairment loss on goodwill(11) | — | 50,790 | — | 50,790 | ||||||||||||
| Non-recurring restructuring costs (3) | 2,372 | 22 | 29,891 | 387 | ||||||||||||
| Adjusted EBITDA(1) | $ | 54,840 | $ | 56,071 | $ | 156,452 | $ | 317,936 | ||||||||
| Adjusted EBITDA is comprised of: | ||||||||||||||||
| Manufacturing | $ | 35,870 | $ | 35,442 | $ | 102,392 | $ | 244,527 | ||||||||
| Aftermarket | 22,481 | 20,937 | 68,292 | 77,597 | ||||||||||||
| Corporate | (3,511 | ) | (308 | ) | (14,232 | ) | (4,188 | ) | ||||||||
| (1) | Adjusted EBITDA is not a recognized earnings measure and does not have standardized meaning prescribed by IFRS. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. See “Definitions of Adjusted EBITDA, ROIC, Free Cash Flow, Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) per Share” in Appendix A. Management believes that Adjusted EBITDA is a useful supplemental measure in evaluating performance of the Company. | |||||||||||||||
| (2) | Normalized to exclude non-recurring expenses and recoveries related to the costs of assessing strategic and corporate initiatives. | |||||||||||||||
| (3) | Normalized to exclude non-recurring restructuring costs. The 2021 Q1 costs primarily relate to severance costs and asset impairments associated with the NFI Forward restructuring initiative. The 2021 Q1 LTM costs are also related to NFI Forward and include severance costs of |
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| (4) | The revaluation of ADL's inventory included an adjustment of |
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| (5) | The fair value adjustment of the total return swap is a non-cash (gain) loss that is excluded from the definition of Adjusted EBITDA. | |||||||||||||||
| (6) | A portion of the fair value adjustment of the total return swap is added to Adjusted EBITDA and Free Cash Flow to match the equivalent portion of the related deferred compensation expense recognized. | |||||||||||||||
| (7) | Costs and recoveries associated with amendments to, and closures of, the Company's pension plans. | |||||||||||||||
| (8) | Recovery of prior period banking fees related to foreign exchange transactions. | |||||||||||||||
| (9) | Provision for sales taxes as a result of an ongoing state sales tax review. | |||||||||||||||
| (10) | Normalized to exclude non-recurring COVID-19 related costs. COVID-19 costs in 2021 Q1 primarily relate to the purchase of personal protective equipment and plant sanitation activities. The 2021 Q1 LTM costs include asset impairments of |
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| (11) | Impairment charge with respect to MCI's goodwill. | |||||||||||||||
| (12) | Includes fair market value adjustments to interest rate swaps. 2021 Q1 includes a gain of |
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Reconciliation of Net Earnings (Loss) to Adjusted Net Earnings (Loss)
Adjusted Net Earnings and Adjusted Earnings per Share are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Accordingly, Adjusted Net Earnings and Adjusted Earnings per Share may not be comparable to similar measures presented by other issuers. Readers of this press release are cautioned that Adjusted Net Earnings and Adjusted Earnings per Share should not be construed as an alternative to net earnings, or net earnings per Share, determined in accordance with IFRS as indicators of the Company's performance. See Non-IFRS Measures for the definition of Adjusted Net Earnings and Adjusted Earnings per Share. The following tables reconcile net earnings to Adjusted Net Earnings based on the historical Financial Statements of the Company for the periods indicated.
| ( |
2021 Q1 | 2020 Q1 | 52-Weeks Ended |
52-Weeks Ended |
|||||||||||||
| Net earnings (loss) | 7,033 | (67,239 | ) | (83,464 | ) | (25,690 | ) | ||||||||||
| Adjustments, net of tax (1) (8) | |||||||||||||||||
| Fair value adjustments of total return swap(5) | (199 | ) | 1,359 | (1,477 | ) | 1,878 | |||||||||||
| Unrealized foreign exchange (gain) loss | 1,151 | (30 | ) | (5,064 | ) | 640 | |||||||||||
| Unrealized (gain) loss on interest rate swap | (3,491 | ) | 15,510 | (6,802 | ) | 21,816 | |||||||||||
| Impairment loss on goodwill(11) | — | 50,790 | — | 50,790 | |||||||||||||
| Portion of the total return swap realized(6) | 203 | (649 | ) | 490 | (975 | ) | |||||||||||
| Costs associated with assessing strategic and corporate initiatives(2) | — | — | 1,396 | 13,066 | |||||||||||||
| Fair value adjustment to acquired subsidiary company's inventory and deferred revenue(4) | — | — | — | 17,943 | |||||||||||||
| Equity settled stock-based compensation | 296 | 10 | 1,507 | 632 | |||||||||||||
| (Gain) loss on disposition of property, plant and equipment | (162 | ) | 112 | (313 | ) | 99 | |||||||||||
| Past service costs and other pension costs (recovery)(7) | — | (319 | ) | 37 | (1,246 | ) | |||||||||||
| Recovery on currency transactions(9) | — | — | — | (2,481 | ) | ||||||||||||
| Prior year sales tax provision (10) | 18 | (39 | ) | 184 | 2,330 | ||||||||||||
| COVID-19 costs (12) | 131 | — | 32,811 | — | |||||||||||||
| Non-recurring restructuring costs (3) | 1,079 | 15 | 20,067 | 226 | |||||||||||||
| Adjusted Net Earnings (Loss) | $ | 6,059 | (480 | ) | $ | (40,628 | ) | 79,028 | |||||||||
| Earnings (Loss) per Share (basic) | $ | 0.11 | $ | (1.08 | ) | $ | (1.32 | ) | $ | (0.41 | ) | ||||||
| Earnings (Loss) per Share (fully diluted) | $ | 0.11 | $ | (1.08 | ) | $ | (1.32 | ) | $ | (0.41 | ) | ||||||
| Adjusted Earnings (Loss) per Share (basic) | $ | 0.09 | $ | (0.01 | ) | $ | (0.64 | ) | $ | 1.15 | |||||||
| Adjusted Earnings (Loss) per Share (fully diluted) | $ | 0.09 | $ | (0.01 | ) | $ | (0.64 | ) | $ | 1.14 | |||||||
| 1. | Addback items are derived from the historical Financial Statements of the Company. | ||||||||||||||||
| 2. | Normalized to exclude non-recurring expenses related to the costs of assessing strategic and corporate initiatives. | ||||||||||||||||
| 3. | Normalized to exclude non-recurring restructuring costs. The 2021 Q1 costs primarily relate to severance costs and asset impairments associated with the NFI Forward restructuring initiative. | ||||||||||||||||
| 4. | The revaluation of ADL's inventory included an adjustment of |
||||||||||||||||
| 5. | The fair value adjustment of the total return swap is a non-cash (gain) loss that is excluded from the definition of Adjusted Net Earnings (Loss). | ||||||||||||||||
| 6. | A portion of the fair value adjustment of the total return swap is excluded from Adjusted Net Earnings (Loss) to match the equivalent portion of the related deferred compensation expense recognized. | ||||||||||||||||
| 7. | Costs and recoveries associated with amendments to, and closures of, the Company's pension plans. | ||||||||||||||||
| 8. | For 2021 Q1, the Company has utilized a rate of 54.5% to tax effect the adjustments. A rate of 31.0% has been used to tax effect the adjustments for all other periods. | ||||||||||||||||
| 9. | Recovery of prior period banking fees related to foreign exchange transactions. | ||||||||||||||||
| 10. | Provision for sales taxes as a result of an ongoing state tax review. | ||||||||||||||||
| 11. | Impairment charge with respect to MCI's goodwill. | ||||||||||||||||
| 12. | Normalized to exclude non-recurring COVID-19 related costs. COVID-19 costs in 2021 Q1 primarily relate to the purchase of personal protective equipment and plant sanitation activities. Management will continue to assess the costs for COVID-19 and will make an assessment of whether they are deemed in fact to be one time and non-recurring. As more information becomes available, management may change its assessment. | ||||||||||||||||
Appendix - Non-IFRS Measures
References to “Adjusted EBITDA” are to earnings before interest, income taxes, depreciation and amortization after adjusting for the effects of certain non-recurring and/or non-operations related items that do not reflect the current ongoing cash operations of the Company. These adjustments include gains or losses on disposal of property, plant and equipment, fair value adjustment for total return swap, unrealized foreign exchange losses or gains on non-current monetary items and forward foreign exchange contracts, costs associated with assessing strategic and corporate initiatives, past service costs and other pension costs or recovery, non-recurring costs or recoveries related to business acquisition, fair value adjustment to acquired subsidiary company's inventory and deferred revenue, proportion of the total return swap realized, equity settled stock-based compensation, recovery of currency transactions, prior year sales tax provision, COVID-19 costs and impairment loss on goodwill and non-recurring restructuring costs.
“Free Cash Flow” means net cash generated by or used in operating activities adjusted for changes in non-cash working capital items, interest paid, interest expense, income taxes paid, current income tax expense, principal portion of finance lease payments, cash capital expenditures, proceeds from disposition of property, plant and equipment, costs associated with assessing strategic and corporate initiatives, fair value adjustment to acquired subsidiary company's inventory and deferred revenue, defined benefit funding, defined benefit expense, past service costs and other pension costs or recovery, proportion of total return swap, recovery on currency transactions, prior year sales tax provision, non-recurring restructuring costs, COVID-19 costs, foreign exchange gain or loss on cash held in foreign currency.
References to "ROIC" are to net operating profit after taxes (calculated as Adjusted EBITDA less depreciation of plant and equipment, depreciation of right-of-use assets and income taxes at a rate of 31%) divided by average invested capital for the last twelve month period (calculated as to shareholders’ equity plus long-term debt, obligations under leases, other long-term liabilities and derivative financial instrument liabilities less cash).
References to "Adjusted Net Earnings (Loss)" are to net earnings (loss) after adjusting for the after tax effects of certain non-recurring and/or non-operational related items that do not reflect the current ongoing cash operations of the Company including: fair value adjustments of total return swap, unrealized foreign exchange loss or gain, unrealized gain or loss on the interest rate swap, impairment loss on goodwill, portion of the total return swap realized, costs associated with assessing strategic and corporate initiatives, fair value adjustment to acquired subsidiary company's inventory and deferred revenue, equity settled stock-based compensation, gain or loss on disposal of property, plant and equipment, past service costs and other pension costs or recovery, recovery on currency transactions, prior year sales tax provision, COVID-19 costs and non-recurring restructuring costs .
References to "Adjusted Earnings (Loss) per Share" are to Adjusted Net Earnings (Loss) divided by the average number of Shares outstanding.
Management believes Adjusted EBITDA, ROIC, Free Cash Flow, Adjusted Net Earnings and Adjusted Earnings per Share are useful measures in evaluating the performance of the Company. However, Adjusted EBITDA, ROIC, Free Cash Flow, Adjusted Net Earnings and Adjusted Earnings per Share are not recognized earnings measures under IFRS and do not have standardized meanings prescribed by IFRS. Readers of this press release are cautioned that ROIC, Adjusted Net Earnings and Adjusted EBITDA should not be construed as an alternative to net earnings or loss or cash flows from operating activities determined in accordance with IFRS as an indicator of NFI’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 net earnings to Adjusted EBITDA, based on the Financial Statements, has been provided under the headings “Reconciliation of Net Earnings to Adjusted EBITDA”. A reconciliation of Free Cash Flow to cash flows from operations is provided under the heading “Summary of Free Cash Flow”. A reconciliation of net earnings to Adjusted Net Earnings is provided under the heading “Reconciliation of Net Earnings (Loss) to Adjusted Net Earnings (Loss)”.
NFI's method of calculating Adjusted EBITDA, ROIC, Free Cash Flow, Adjusted Net Earnings and Adjusted Earnings per Share may differ materially from the methods used by other issuers and, accordingly, may not be comparable to similarly titled measures used by other issuers. Dividends paid from Free Cash Flow are not assured, and the actual amount of dividends received by holders of Shares will depend on, among other things, the Company's financial performance, debt covenants and obligations, working capital requirements and future capital requirements, all of which are susceptible to a number of risks, as described in NFI’s public filings available on SEDAR at www.sedar.com.
References to NFI's geographic regions for the purpose of reporting global revenues are as follows: "North America" refers to
Forward-Looking Statements
This press release contains “forward-looking information” and “forward-looking statements”, within the meaning of applicable Canadian securities laws, which reflect the expectations of management regarding the Company’s future growth, financial performance and objectives and the Company’s strategic initiatives, plans, business prospects and opportunities, including the duration, impact of and recovery from the COVID-19 pandemic. The words “believes”, “views”, “anticipates”, “plans”, “expects”, “intends”, “projects”, “forecasts”, “estimates”, “guidance”, “goals”, “objectives” and “targets” and similar expressions of future or conditional verbs such “may”, “will”, “should”, “could”, “would” are intended to identify forward looking statements. These forward-looking statements reflect management’s current expectations regarding future events (including the recovery of the Company’s markets and the expected benefits to be obtained through its “NFI Forward” initiative) and the Company’s financial and operating performance and speak only as of the date of this press release. By their very nature, forward-looking statements require management to make assumptions and involve significant risks and uncertainties, should not be read as guarantees of future events, performance or results, and which give rise to the possibility that management’s predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that the assumptions may not be correct and that the Company’s future growth, financial performance and objectives and the Company’s strategic initiatives, plans, business prospects and opportunities, including the duration, impact of and recovery from the COVID-19 pandemic, will not occur or be achieved.
A number of factors that may cause actual results to differ materially from the results discussed in the forward-looking statements include: the Company’s business, operating results, financial condition and liquidity may be materially adversely impacted by the ongoing COVID-19 pandemic; funding may not continue to be available to the Company’s customers at current levels or at all; the Company’s business is affected by economic factors and adverse developments in economic conditions which could have an adverse effect on the demand for the Company’s products and the results of its operations; currency fluctuations could adversely affect the Company’s financial results or competitive position; interest rates could change substantially, materially impacting the Company’s revenue and profitability; an active, liquid trading market for the Shares may cease to exist, which may limit the ability of shareholders to trade Shares; the market price for the Shares may be volatile; if securities or industry analysts do not publish research or reports about the Company and its business, if they adversely change their recommendations regarding the Shares or if the Company’s results of operations do not meet their expectations, the Share price and trading volume could decline; in addition, if securities or industry analysts publish inaccurate or unfavorable research about the Company or its business, the Share price and trading volume of the Shares could decline; competition in the industry and entrance of new competitors; current requirements under “Buy America” regulations may change and/or become more onerous or suppliers’ “Buy America” content may change; failure of the Company to comply with the
Factors relating to the global COVID-19 pandemic include: the magnitude and duration of the global, national and regional economic and social disruption being caused as a result of the pandemic; the impact of national, regional and local governmental laws, regulations and “shelter in place” or similar orders relating to the pandemic which may materially adversely impact the Company’s ability to continue operations; partial or complete closures of one, more or all of the Company’s facilities and work locations or the reduction of production rates (including due to government mandates and to protect the health and safety of the Company’s employees or as a result of employees being unable to come to work due to COVID-19 infections with respect to them or their family members); production rates may be further decreased as a result of the pandemic; supply delays and shortages of parts and components, and shipping and freight delays, and disruption to labour supply as a result of the pandemic; the pandemic will likely adversely affect operations of customers and reduce and delay, for an unknown period, customers’ purchases of the Company’s products; the anticipated recovery of the Company’s markets in the future may be delayed or increase in demand may be lower than expected as a result of the continuing effects of the pandemic; the Company’s ability to obtain access to additional capital if required; and the Company’s financial performance and condition, obligations, cash flow and liquidity and its ability to maintain compliance with the covenants under its credit facilities, which may also negatively impact the ability of the Company to pay dividends. There can be no assurance that the Company will be able to maintain sufficient liquidity for an extended period, obtain future satisfactory covenant relief under its credit facilities, if required, or access to additional capital or access to government financial support or as to when production operations will return to previous production rates. There is also no assurance that governments will provide continued or adequate stimulus funding during or after the pandemic for public transit agencies to purchase transit vehicles or that public or private demand for the Company’s vehicles will return to pre-pandemic levels in the anticipated period of time. The Company cautions that due to the dynamic, fluid and highly unpredictable nature of the pandemic and its impact on global and local economies, businesses and individuals, it is impossible to predict the severity of the impact on the Company’s business, operating performance, financial condition and ability to generate sufficient cash flow and maintain adequate liquidity and any material adverse effects could very well be rapid, unexpected and may continue for an extended and unknown period of time.
Factors relating to the Company's “NFI Forward” initiative include: the Company's ability to successfully execute the initiative and to generate the planned savings in the expected time frame or at all; management may have overestimated the amount of savings and production efficiencies that can be generated or may have underestimated the amount of costs to be expended; the implementation of the initiative may take longer than planned to achieve the expected savings; further restructuring and cost-cutting may be required in order to achieve the objectives of the initiative; the estimated amount of savings generated under the initiative may not be sufficient to achieve the planned benefits; combining business units and/or reducing the number of production or parts facilities may not achieve the efficiencies anticipated; and the impact of the continuing global COVID-19 pandemic. There can be no assurance that the Company will be able to achieve the anticipated financial and operational benefits, cost savings or other benefits of the initiative.
Factors relating to the Company’s
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended or to occur or be achieved at all. Specific reference is made to “Risk Factors” in the Annual Information Form for a discussion of the factors that may affect forward-looking statements and information. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information. The forward-looking statements and information contained herein are made as of the date of this press release (or as otherwise indicated) and, except as required by law, the Company does not undertake to update any forward-looking statement or information, whether written or oral, that may be made from time to time by the Company or on its behalf. The Company provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers and investors should not place undue reliance on forward-looking statements and information.