Canada NewsWire

VANCOUVER, May 30, 2017

VANCOUVER, May 30, 2017 /CNW/ - Grande West Transportation Group Inc. (TSXV: BUS; OTC PINK: GWTNF) – May 30, 2017: ("Grande West" or the "Company"), a Canadian bus manufacturer of heavy-duty mid-sized transit buses for sale in Canada and the United States, announced today financials for the first quarter ending March 31, 2017.

 Grande West Transportation Group Inc Grande West Announces 2017

Q1 Highlights 

  • Record bus and aftermarket parts revenue of $4,548,968
  • Record gross profit of $952,392
  • Record gross profit margin of 21% (6% at Feb 29, 2016)
  • Average Vicinity bus sales price of $350,000 ($291,000 at Feb 29, 2016)
  • Adjusted EBITDA loss of $540,079 (EBIDTA less stock based compensation of $271,426)
  • Raised $13,680,000 in a budget deal financing, strengthening balance sheet
  • Reduced long term debt by $2,945,135, reducing monthly debt service by approximately $20,000

Selected Quarterly Information  

The following table shows results for the quarter ended March 31, 2017 and February 28, 2016 stated in Canadian dollars.


3 months ended 
March 31, 2017

3 months ended, 
February 29, 2016




Revenue – Bus sales and after-market parts





Gross profit (loss)





Gross margin



Net earnings (loss)





Basic and diluted earnings (loss) per share






Cash and cash equivalents





Working Capital





Total Assets





Non-current financial liabilities





During the three month periods ending February 28, 2016 and March 31, 2017, 12 Vicinity buses were delivered in each period.

Highlights and Developments in 2017

Management reports Q1 2017 results of twelve (12) Vicinity buses delivered and revenue recognized for revenues of $4,548,968, gross profit of $952,392 and gross profit margin of 21%.

A total of thirty-two (32) buses were received at Company headquarters during February in Q1, twelve (12) delivered, with the balance to be delivered to customers in Q2. Production, shipping and delivery is underway to fulfill the first BC Transit production run for fifty-five (55) of ninety seven (97) Vicinity buses.

Our production and delivery ramp is now tracking contracts announced in 2016.

  • In January, Grande West began offering clean burning, low emission Cummins ISB G engines for delivery on 2017 orders. The ISB G Engine, powered by compressed natural gas (CNG) has the lowest North American Emissions standards. Thirteen (13) of these buses are being delivered to the AtlantaInternational Airport in Q3 2017. 
  • In January, BC Transit ordered thirty nine (39) Vicinity buses totalling approximately $13 million. This is in addition to BC Transit's previous orders for fifty eight (58) buses, bringing their total current outstanding orders up to ninety seven (97). 
  • Also in January, the City of Edmonton ordered thirty three (33) Vicinity buses totalling approximately $13 million. This is the third order from the City since September 2016, bringing their total firm orders for Vicinity buses to 49 units. 
  • In March, Grande West closed a bought deal offering of common shares of the Company, at a price of $1.90 per Offered Share for gross proceeds to the Company of $13,680,000. A total of 7,200,000 Offered Shares were sold pursuant to the Offering, including 870,000 Offered Shares issued as a result of the full exercise of the Underwriters' over-allotment option. The Offering was conducted by a syndicate of underwriters led by Beacon Securities Limited and including Echelon Wealth Partners Inc. 
  • On March 14, the Company appointed Taras Kindzersky to the position of Chief Operating Officer to assist management with the Company's continued growth. Mr. Kindzersky has over 20 years of business experience working at a variety of large corporations, specifically Finning Canada, a division of Finning International Inc., the world's largest Caterpillar equipment dealer. He joins Grande West from one of the 20 largest credit unions in Canada where he led the business banking division as Executive Vice-President, Business Banking. In his first month, Taras is already making a significant impact in organizational efficiencies, banking relationships and process flows. 
  • Also in March, Grande West received new customer orders for approximately $7.5 million. St. John's Transportation Commission ordered three (3) Vicinity buses, the City of Oakville has ordered an additional eight (8), the City of Burlington has ordered an additional seven (7) and the City of Welland ordered two (2). 
  • On March 27, the Company announced its first US public transit order from the Metropolitan Atlanta Rapid Transit Authority ("MARTA"). Grande West'sexclusive US distributor Alliance Bus Group ("ABG") has delivered to MARTA ten (10) Vicinity buses that are now in operation in their transit system. 

    "We are committed to creating more efficient transportation options for our customers. That means building a more highly layered, customized service model," said MARTA GM/CEO Keith Parker. ''These new Vicinity vehicles allow our bus operators to travel safely into neighbourhoods where our standard fleet could not easily navigate while offering more space than our current Mobility bus options."

  • Again in March, Grande West announced it had secured a USA manufacturing facility. Alliance Bus Group, Grande West's exclusive US distributor, will produce Buy America compliant Vicinity buses for sale to US transit authorities. The ability to leverage ABG existing facilities, staff, and deep knowledge of bus technology provides Grande West with a solid foundation upon which it can quickly ramp to production. Plans are well underway and first Buy America compliant production will begin in Q3 of 2017. 
  • On April 28th, the Series A and B Convertible Debentures were accelerated and converted $1,520,000 in debt. 2,235,294 common shares were issued at a price of $0.68 to settle the debentures resulting in a reduction of $120,000 per year in debt service. 
  • On May 23, new orders for nine (9) Vicinity buses was announced for a combined order total of approximately $4.5 million. Hamilton Street Railway ("HSR") has ordered five (5) compressed natural gas ("CNG") Vicinity buses. This is a first time order for HSR for delivery in the first quarter of 2018. The City of Moose Jaw also ordered an additional four (4) Vicinity buses.

Backlog: Current total firm orders for Q2 2017 through 1H 2018 delivery are for two hundred sixty five (265) buses valued at over $96 million CAD.

2017 Q1 Deliveries to date are for twelve (12) buses.

Additional information about current operations, production and Buy America production plans can be located in this quarter's Management's Discussion and Analysis under Recent Highlights and Developments.

A conference call to discuss these results will be held today at 11:00 AM EST. The call-in number is (866) 215-5508 or (514) 841-2157 and can be accessed by entering passcode 44958431. A recording of the call will be available on the website the following day at

About Grande West Transportation Group

Grande West Transportation Group is a Canadian bus manufacturer which designs, engineers and manufactures mid-size buses for transit authorities and commercial enterprises.  Grande West's Best-in-Class rated Vicinity bus is available in 30' and 35' models designed with affordability, accessibility and global responsibility in mind. It costs significantly less than a regular 40 foot transit bus, 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 Buy America compliant, and along with ABG, its exclusive US distributor, has sold Vicinity buses to US–based public and private operators and is actively pursuing more opportunities throughout the US.

Grande West Transportation
John LaGourgue                                 
Ph: 1-604-607-4000                                                                      

Paradox Public Relations
Karl Mansour
Ph: 866-460-0408    

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 Westassumes 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 Group Inc.

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Grande West Transportation, John LaGourgue, Ph: 1-604-607-4000,,; Paradox Public Relations, Karl Mansour, Ph: 866-460-0408,,, Copyright CNW Group 2017

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