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BUS.V - Grande West Transportation Inc

Grande West Announces Third Quarter Financial Results

Je n’ai pas l’impression que le marché va aimer ces résultats demain matin…

Seulement 36 autobus livrés durant le trimestre. Également, la prévision du nombre d’autobus livrés pour 2018 a été abaissée à 180 alors qu’elle était de 200 au trimestre précédent et 240 en début d’année.

Le carnet de commandes continue de descendre pendant que l’entreprise tente de développer le marché américain.

Bref, tout ça va certainement amplifier l’incertitude des investisseurs selon moi. Je prévois participer à l’appel-conférence demain et je vous reviendrai avec mes notes!

Ouf moi j’abandonne

Quelques notes suite à l’appel-conférence:

  • La prévision du nombre d’autobus qui seront livrés cette année se situe entre 180 et 200. Il se pourrait que l’entreprise atteigne son objectif précédent de 200 mais le management tenait à rectifier les attentes au cas où il y aurait des délais (en mentionnant 180 autobus dans le communiqué de presse)

  • La réduction des prévisions n’est aucunement liée à des délais opérationnels chez Grande West, mais plutôt à des délais potentiels du côté des clients pour prendre possession de leurs autobus.

  • Suite aux récentes annonces de contrats avec des états américains, Jean-Marc (CEO) s’attend à recevoir des commandes fermes très bientôt.

  • Jean-Marc détient 350,000 options à 0,50$ qui expirent le 13 décembre et il prévoit les exercer, pour une valeur de 175,000$.

  • Les appels d’offres au Canada ont été moins fréquents en 2018 qu’en 2016-2017 et c’est pourquoi le carnet de commandes à cessé d’augmenter. Ça ne reflète pas une perte de parts de marchés, seulement un marché plus lent en général.

  • À cause de ce dernier point, l’année 2019 (en termes de revenus) devrait être plus faible que 2017-2018 au niveau du Canada.

  • Le focus semble vraiment être sur les autorités de transit aux États-Unis actuellement.

4 J'aimes

Salut Mathieu,

Par contre la société a tout de même amélioré son bilan en ayant un niveau de dette portant intérêt très faible.

BUS à une marge de crédit de 20 millions non utilisé actuellement et est cash flow positive malgré la baisse importante des ventes Q3 YOY.

La situation selon moi demeure somme toute stable avec une perspective positive long terme avec le potentiel USA.

C’est sur que c’est frustrant actuellement pour les investisseurs mais si le titre continue de chuter, ça pourrait devenir une belle opportunité…

4 J'aimes

un autre titre qui touche un nouveau bas 52sem :frowning:

Sur le coté technique, le volume est en très forte augmentation aujourd’hui. A surveiller.

hummm…joli graphique

Grande West to Announce 2018 Year End Results on April 16

Grande West Transportation Group Inc. a Canadian manufacturer of mid-sized multi-purpose transit vehicles for sale in Canada and the United States, announced today that 2018 fourth quarter and year end results will be released after market close on Tuesday, April 16, 2019.

A conference call for analysts and interested listeners will be held on
Wednesday, April 17, 2019 at 11:00 AM EST.
The call-in number is (844) 602-0380.

A recording will be available on the website shortly after the call.

Jean-Marc Landry, CEO of Grande West commented,
“The Grande West management team is looking forward to presenting our 2018 results, providing an update on operations and US market expansion.”

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Grande West Announces Fourth Quarter and Fiscal Year 2018 Results

VANCOUVER, BC / ACCESSWIRE / April 16, 2019 / Grande West Transportation Group Inc. (TSXV: 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, is pleased to announce financial results for the fourth quarter and the year ended December 31, 2018.

Fourth Quarter and Yearly 2018 Highlights

  • Record bus, aftermarket parts and other revenue of $70,076,720 for the year ended December 31, 2018 compared to $54,701,931 for the year ended December 31, 2017
  • Record 2018 adjusted EBITDA of $5,224,549 for the year ended December 31, 2018 compared to $770,394 for the year ended December 31, 2017 (see ‘‘reconciliation of net earnings to adjusted EBITDA’’)
  • Record net income of $948,951 for the year ended December 31, 2018 compared to a net loss of $416,693 for the year ended December 31, 2017
  • Record deliveries of 180 Vicinity buses, including 7 new leased buses, for the year ended December 31, 2018 compared to 152 buses delivered for the year ended December 31, 2017
  • Bus, aftermarket parts and other revenue for the three months ended December 31, 2018 of $8,511,617 compared to for the three months ended December 31, 2017
  • Net loss for the three months ended December 31, 2018 of $1,154,588 compared to net loss of $641,714 for the three months ended December 31, 2017
  • Adjusted EBITDA for the three months ended December 31, 2018 of $26,927 compared to an adjusted EBITDA loss of $483,967 for the three months ended December 31, 2017 (see “reconciliation of net earnings to adjusted EBITDA”)
  • Deliveries of 19 Vicinity buses, including one new leased bus, for the three months ended December 31, 2018 compared to 33 for the three months ended December 31, 2017

Selected Yearly, Quarterly and Periodic Information

The following table shows the financial results of the Company for the years and fourth quarters ended December 31, 2018 and December 31, 2017.

The results of operations for these periods are not necessarily indicative of the results of operations to be expected in any given comparable period.

3 Months Ended,
December 31, 2018 3 Months Ended,
December 31, 2017 12 Months Ended, December 31, 2018 12 Months Ended, December 31, 2017
(unaudited) $ $ $ $
Revenue 8,511,617 12,508,075 70,076,720 54,701,931
Gross margin 2,116,977 1,425,214 11,924,317 6,319,415
Net income (loss) (1,154,588) (641,714) 948,951 (416,693)
Basic and diluted loss per share (0.02) (0.01) 0.01 (0.01)

December 31,
2018 December 31,
2017
(unaudited) $ $
Cash and cash equivalents 2,732,437 4,223,350
Working capital 16,921,864 14,886,254
Total assets 40,445,904 46,962,090
Non-current financial liabilities 2,404,022 2,643,913

The Company reports results for the year ended December 31, 2018 of 180 Vicinity buses delivered, revenue of $70,076,720, net income of $948,951 and gross margin of 11,924,317. Results for the year ended December 31, 2017 were 152 buses delivered, revenue of $54,701,931, net loss of $416,693 and gross margin of $6,319,415. Gross margin for the year ended December 31, 2018 was 17% of revenue compared to 12% in 2017.

The Company reports Q4 2018 results of 19 Vicinity buses delivered, revenue of $8,511,617, net loss of $1,154,588 and gross margin of $2,116,977, which was 25% of revenue. Results for the fourth quarter of 2017 were 33 buses delivered, revenue of $12,508,075, net loss of $641,714 and gross margin of $1,425,214, which was 11% of revenue.

Backlog: Current total firm orders are for approximately 170 buses valued at over $58 million. Deliveries will vary from quarter to quarter to account for different build specifications, customer acceptance and revenue recognition.

Jean-Marc Landry, Grande West CEO, stated, ‘‘2018 was the 10 year anniversary of Grande West and represented a pivotal year for the Company. We made significant changes at the board and management levels, recognized record deliveries of buses with increased margins and overall profit, and were successful in receiving our first Buy America orders to be delivered in 2019.’’

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 gains or losses, non-operating income and expenses, and share based compensation.

The following table reconciles net earnings or losses to Adjusted EBITDA based on the consolidated financial statements of the Company for the periods indicated.

3 Months Ended
December 31,
2018 3 Months Ended
December 31,
2017 Year Ended
December 31,
2018 Year Ended
December 31,
2017
(unaudited) $ $ $ $
Net Comprehensive loss (1,154,588) (641,714) 948,951 (416,693)
Add back
Stock based compensation 429,837 (4,718) 1,592,310 366,637
Interest 214,489 193,767 1,114,721 789,573
Foreign exchange (gain) loss 233,447 (167,610) 835,585 (314,451)
Amortization 303,742 136,308 732,982 345,328
Adjusted EBITDA 26,927 (483,967) 5,224,549 770,394

Business Overview

Corporate Update

Grande West has delivered over 400 buses in the Canadian and U.S. markets and continues to deliver on its backlog of orders. The Company is the market leader in the mid-size bus category in Canada where it sells its Vicinity branded buses and has maintained this position through 2018.

During 2018, the Company made significant changes at the management and board levels. Jean-Marc Landry was named Chief Executive Officer, Dan Buckle joined the Company as Chief Financial Officer, and Rob Mowat joined the Company as VP of Sales and Marketing. The Company named two new directors, Christopher Strong joined the board as the chair of both the Audit Committee and Compensation Committee, and Keith Parker joined as a board member.

The Company announced on August 28, 2018 that it has successfully completed an independent third party audit of its Buy America assembly and financial bill of materials on its Vicinity bus in order to meet current Federal Transit Administration (’‘FTA’’) requirements. Regarding U.S. manufacturing, we worked diligently to set up our U.S. assembly processes and increased our U.S. material content to meet Buy America requirements. We are scheduled to deliver our first Buy America bus builds in 2019.

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 Company received initial orders for a total of 7 buses with two different customers under this contract for delivery in 2019.
  • 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 are no minimum or maximum bus quantities, orders from the various agencies are subject to funding and agency needs.

Successfully winning these bids and 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.

Grande West announced that it would sell Vicinity buses directly to customers across all of Canada instead of going through a dealer in Eastern Canada effective October 31, 2018. The decision was made to be closer to customers and optimize all aspects of the relationship throughout the life of the bus. The Company has also hired a new customer engagement manager and service technician based in Montreal to focus on business development and customer support in Eastern Canada.

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 all new customers for Grande West.

Other noteworthy achievements during 2018 were the substantial increase in margins and cashflows from operations in 2018 compared to 2017, the repayment of high interest debt, and the implementation a new ERP system which will help increase efficiencies and reduce costs into the future.

Recent Developments

In October of 2018, the Company announced a new contract to purchase Buy America Vicinity buses by a group of Mississippi-based transit authorities. Grande West, along with U.S. distributor Alliance Bus Group (“ABG”), was the winning bid for a five-year contract for 30’ 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. Each participating agency has submitted their purchase forecast for the term of this contract. Purchase orders will be announced as they are received by the Company. Grande West received initial orders for a total of 7 buses from two customers off this contract for delivery in 2019.

In November of 2018, Grande West received firm orders valued at approximately $6,000,000 from The City of Medicine Hat, The County of Grande Prairie and a private operator in Quebec.

In November of 2018, Grande West’s U.S. distributor, ABG was successful in winning the Iowa DOT bid for Vicinity 30’ and 35’ heavy-duty diesel vehicles, with options 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 are no minimum or maximum bus quantities, orders from the various agencies are subject to funding and agency needs.

In March of 2019, Grande West announced a purchase order with BC Transit for over 30 CNG powered Vicinity buses for approximately $13,000,000.

Additional information is provided in the Management’s Discussion and Analysis at http://sedar.com/.

A conference call for analysts and interested listeners will be held on Wednesday, April 17, 2019 at 11:00 AM EST. The call-in number is (844) 602-0380 and the webcast login is https://www.investornetwork.com/event/presentation/45575. A recording will be available on the website shortly after the call.

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.

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
jlagourgue@grandewest.com
www.grandewest.com

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J’ai écouté l’appel-conférence à 11h. Voici les grandes lignes:

  • La hausse du % de marge brute en 2018 était le fruit d’un meilleur mix de produits, d’une structure de coûts plus efficicente et d’une hausse des ventes de pièces de rechange.

  • L’année 2018 a été assez tranquille au niveau des achats par les autorités de transit. Ce ralentissement s’est fait ressentir pour tous les manufacturiers dans l’industrie.

  • Il semble y avoir une reprise en 2019, alors que le nombre d’appels d’offres jusqu’à présent cet année est plus élevée qu’à la même période l’année dernière.

  • En termes de revenus, il semble que 2019 sera une année de transition. Les revenus seront plus bas alors que l’entreprise travaille à renflouer son carnet de commandes pour 2020 et plus.

  • L’entreprise a décidé d’aller de l’avant avec la production d’un modèle 100% électrique. C’est une tendance qui devient de plus en plus forte dans le marché et Grande West veut profiter de cette opportunité. Cependant, le design d’un modèle commercial devrait prendre un peu de temps et n’est pas prévu avant 2020.

  • L’entreprise va également bâtir un modèle ‘‘crossover’’, qui est un type d’autobus plus petit et moins robuste. Ce marché connait également une bonne croissance et Grande West veut s’y attaquer.

Au final, je trouve cela un peu surprenant que l’entreprise décide soudainement de diversifier sa ligne de produits, et que ça semble vraiment une priorité de le faire. Est-ce que le marché adressable pour le Vicinity n’est pas suffisamment large?

Dans tous les cas, je crois que les attentes sont très basses pour 2019 et que les actionnaires devront être patients et attendre en 2020/2021 pour voir Grande West revenir à un stade de forte croissance comme dans les dernières années.

5 J'aimes

J’ai rencontré John LaGourgue (directeur) et Dan Buckle (CFO) au Planet MicroCap Showcase de Las Vegas la semaine dernière. Il n’y a pas beaucoup de nouveau mais voici quelques notes:

  • Le lancement d’un véhicule électrique est motivé par une demande plus élevée de la part des clients maintenant.

  • Les marges brutes sur les autobus électriques et CNG (gaz naturel) sont plus élevées. On parle d’environ 30% dans certains cas.

  • Les coûts afin de terminer le design du véhicule électrique et du crossover devraient tourner aux alentours de 1 million $. Au niveau du temps requis, l’entreprise fournira une mise à jour par communiqué de presse au cours des prochaines semaines.

  • Grande West a engagé des nouveaux vendeurs aux États-Unis afin d’aider ABG dans ses efforts de vente. Il semblerait que ABG n’a pas une forte présence sur la côte Ouest et que Grande West désirait une meilleure couverture dans cette région.

  • Objectifs principaux pour cette année: 1) Amener le carnet de commandes au-delà de 100 millions $ 2) Déterminer les spécifications exactes des deux nouveaux modèles (électrique et crossover) afin de commencer à vendre 3) Bien contrôler les coûts d’opérations

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Deux nouvelles hier:

Grande West Expands U.S. Manufacturing with Spartan Motors Contract

Grande West Announces First Quarter 2019 Results

Les résultats sont plutôt décevants avec seulement 10 autobus livrés durant le trimestre. Ça semble confirmer mes craintes quant à 2019:

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Le nombre d’autobus livrés aux clients est le plus bas depuis le 1er trimestre 2017. Il semble qu’il n’y en ait eu aucune nouvelle ventes d’autobus pour le trimestre. Le carnet de commandes est également le plus faible depuis 2017. Je me demande s’ils ont manqué le bateau des autobus electrique.