Category: Transportation

Grande West Announces Third Quarter Financial Results

VANCOUVER, BC  / November 15, 2018 / Grande West Transportation Group Inc. (TSX-V: BUS; OTC PINK: GWTNF) (''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 third quarter ending September 30, 2018.
Third Quarter Highlights and Recent Developments
Bus, aftermarket parts and other revenue for the three months ended September 31, 2018 of $13,830,598 compared to $25,864,037 for the three months ended September 30, 2017
Net loss for the three months ended September 30, 2018 of $308,120 compared to net income of $716,648 for the three months ended September 30, 2017
Adjusted EBITDA for the three months ended September 30, 2018 of $615,376 compared to $1,047,824 for the three months ended September 30, 2017 (see ''Reconciliation of Net (Loss) Income to Adjusted EBITDA'')
Deliveries of 36 Vicinity buses for the three months ended September 30, 2018 compared to 75 for the three months ended September 30, 2017
  • Awarded Georgia State Transportation Contract during the third quarter of 2018
  • Completed successful independent audit of Buy America assembly processes, procedures, and bill of materials
  • Awarded a five-year contract in the State of Mississippi for up to 63 Buy America compliant Vicinity buses
  • Received orders for nine Vicinity buses from a U.S. private operator
  • Received new Canadian firm orders for approximately $6,000,000 of Vicinity buses
  • Awarded Iowa State Department of Transit contract
  • Bus sales and new leases to customers totaled 161 for the nine months ended September 30, 2018

Management reports 2018 third quarter financial results of 36 Vicinity buses delivered, revenue of $13,830,598, net loss of $308,120, Adjusted EBITDA of $615,376 and gross profit margin of 14%. During the quarter the Company continued to focus on U.S. market growth, operational efficiencies and implementation of systems to support profitable expansion.

Backlog: Current total firm orders are for approximately 160 buses valued at over $53 million CAD. Deliveries will vary from quarter to quarter to account for different build specifications, customer acceptance and revenue recognition.

Selected Quarterly Information

The following table shows the unaudited results of the Company for the three months ended June 30, 2018 compared to the three months ended June 30, 2017 with selected balance sheet items as at June 30, 2018 and June 30, 2017. All amounts are stated in Canadian dollars.


3 months ended 
September 30, 2018


3 months ended 
September 30, 2017













Gross margin




Net income (loss)




Basic and diluted income (loss) per share





September 30, 2018


December 31, 2017

Cash and cash equivalents




Working capital




Total assets




Non-current financial liabilities




Business Overview

Jean-Marc Landry, Grande West CEO, stated, ''We have reached some important milestones in the second half of the year and we remain confident in our business direction and goals. By finalizing an independent Buy America audit and being awarded state contracts in the U.S., we have set the stage for further U.S. public contracts and awards. While focusing on growing our sales pipeline in the U.S., we continue to maintain and develop our business in Canada. We recently announced three new customers which further strengthens our Canadian leadership position in our market segment.''

Grande West announced that, as of September 30, 2018, it will sell Vicinity buses directly to customers across Eastern Canada as well as providing parts and service support for these buses. Staff has been hired to oversee eastern-based customers for technical, service and sales support.

Management expects to deliver a minimum of 180 buses in 2018 and continue to grow its market position in the mid-sized Vicinity category. Certain orders expected in the fourth quarter of 2018 have been shifted into 2019.

In addition to a strong focus on sales, management is making good progress on improving operational efficiencies and reducing costs.

Grande West has delivered over 400 buses into the Canadian and U.S. markets and continues to deliver on its backlog of orders. The Company has maintained approximately 90% Canadian market share in the mid-size bus category where it sells its Vicinity branded buses. The Company's vehicles incorporate drive systems available in clean diesel and compressed natural gas (''CNG''). The Company expects continued growth in the after-market parts business.


Demand for Transit buses in the U.S. market remains strong. American Public Transit Association (APTA) estimates the heavy duty transit fleet at over 88,000 buses in service with an average age over seven years. Current Federal Transit Administration Fast funding is in place until 2021 providing 80% of purchase grants to U.S. public transit agencies. U.S. Congress in March 2018 passed the fiscal year budget which included $13.5 billion for public transportation, an increase of over $1 billion from the previous year, which APTA has called a big win for public transportation.

Management continues to expect bus procurement activity by private operators and public transit agencies throughout the U.S. to remain strong based on an aging fleet, the availability of funding, and healthy economic conditions.

Aftermarket parts sales are expected to continue to increase.


Grande West's U.S. distributor, ABG was successful in winning:

  • The Georgia State bid for Vicinity 30' and 35' heavy-duty vehicles. The contract allows for all transportation authorities state-wide to purchase Vicinity buses with Federal funding as well as all public agencies nationally to purchase with local funding.
  • A five-year contract for 30' Buy America heavy-duty low floor buses. The order is for up to 63 Vicinity buses over the term of the contract. The City of Oxford, Mississippi is the Executive Agent on behalf of a group of agencies listed for the procurement of the heavy duty transit buses, under a management contract with RATP Dev USA.
  • The Iowa Department of Transportation bid for Vicinity 30' and 35' heavy-duty diesel vehicles, with the option for CNG. This bid is conducted on behalf of Iowa's 35 designated public transit agencies, state of Iowa governmental agencies, state board of regents, and other states' public transit agencies that are in the same metropolitan planning organization as a designated public transit agency. The Bid is in place until October 2020. There is no minimum or maximum bus quantities, orders from the various agencies is subject to funding and agency needs.

Successfully winning three contracts in the U.S. during the third and fourth quarters is confirmation that Grande West can compete in the U.S. public transit market.

In Canada, Grande West received firm orders from The City of Medicine Hat, The County of Grande Prairie and a private operator in Quebec. These orders are for delivery in the next 12 months and are all new customers for Grande West.

Financial Statements and Management's Discussion and Analysis for the first quarter 2018 can accessed at the Company's website at

A conference call for analysts and interested listeners will be held on November 16 at 11:00 AM EST. The call-in number is (877) 407-0782 or (201) 689-8567 and can be accessed by entering passcode 40903. A webcast of the call is available at A replay will be available on the Company's website shortly after the call at

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
This email address is being protected from spambots. You need JavaScript enabled to view it.

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

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