WINNIPEG, Oct. 22, 2015 /CNW/ - (TSX: NFI) (TSX: NFI.DB.U) New Flyer of America Inc., a subsidiary of New Flyer Industries Inc. ("New Flyer" or the "Company"), the leading manufacturer of heavy-duty transit buses in the United States and Canada, announced today that the Massachusetts Bay Transport Authority ("MBTA") awarded New Flyer a contract for up to 725 40-foot Xcelsior heavy-duty transit buses. This contract comprises 725 of the 1,169 equivalent units pending award at the end of the third fiscal quarter of 2015.
The award was approved by the Massachusetts Department of Transportation board of directors in Boston and includes a firm order for 175 compressed natural gas buses (XN40) and 150 diesel-electric hybrid buses (XDE40), plus options for an additional 200 clean diesel buses (XD40) and 200 diesel-electric hybrid buses (XDE40) over the next five years.
The firm portion of the contract is valued at approximately $223 million with the options valued at approximately $254 million. MBTA currently operates a fleet of 1008 heavy-duty transit buses, 412 of which have been built by New Flyer and 299 of which have been built by NABI, making 70% of the MBTA fleet supported by New Flyer.
In terms of daily ridership, the MBTA remains the fifth largest mass transit system in the United States serving a population of over 4.8 million people in 176 cities and towns, with an area of 3,249 square miles. To carry out its mission it maintains 183 bus routes, two of which are bus rapid transit lines, three rapid transit lines, five light rail routes, four trackless trolley lines, and 13 commuter rail routes. The average weekday ridership for the entire system is approximately 1.27 million passenger trips.
"This award builds on the successful partnership that we have developed with MBTA" said Paul Soubry, President and Chief Executive Officer of New Flyer. "We are proud to have our best-in-class Xcelsior bus selected yet again by MBTA to operate in their challenging and diverse operating environment. These new Xcelsior buses will be used to replace portions of the MBTA fleet that have reached the end of their useful life."
NOTE: All funds are in U.S dollars.
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in the United States and Canada. The Company is the industry technology leader and offers the broadest product line of transit buses including drive systems powered by: clean diesel, natural gas, diesel-electric hybrid, electric trolley and now, battery-electric. All buses are supported by an industry-leading comprehensive warranty and support program, and service network. New Flyer also operates the industry's most sophisticated aftermarket parts organization, sourcing parts from hundreds of different suppliers and providing support for all types of transit buses.
The New Flyer group of companies employ over 3,000 team members with manufacturing, fabrication, parts distribution and service centers in both Canada and the United States. Over 32,000 New Flyer and NABI heavy-duty transit buses are in operation today. Further information is available on New Flyer's website at http://www.newflyer.com
The common shares and convertible unsecured subordinated debentures of the Company are traded on the Toronto Stock Exchange under the symbols NFI and NFI.DB.U, respectively.
Forward-Looking Statements
This press release may contain forward-looking statements relating to expected future events and financial and operating results of the Company 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 purchase parts or services, customers may not exercise options to purchase additional buses, the ability of customers to terminate contracts for convenience and the other risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, the Company disclaims 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.
SOURCE New Flyer Industries Inc.
