RE:RE:RE:RE:RE:looks like higher interest costs and lower margins per bus"I don't think anyone should fool themselves with NFI thinking that BUS is something to scoff at. In the beginning BUS was a bit of a thorn but now they are concerned and the fact remains that they were unsuccessful in ALL bids against Vicinity."
Have you taken the time to look at the financial statements of the two companies?? New Flyer is making money. Why would they low-ball when they have enough in the pipe-line at better margins?...Sonny boy, it's basic economics.
Sales for BUS were up 72% for the nine months ending May 31st, yet their gross profit in real $ was flat and their profit margin was 3.7%. In comparison, New Flyers profit margin in their latest financial report was 17.9%.
On the G&A side, interest and bank charges have increased 500% (from $48K in 2015 to $236K in 2016). All this before the May 16th agreement to borrow $2M from a shareholder at a credit-card like rate of 10% per month.
Don't get me wrong, I hope this company does well but right now the best PR this company can do is to show potential shareholders that it can sell a quality product AND generate a profit.
Shareholders of Grande West should count their lucky stars that New Flyer has lots of profitable business. Otherwise they'd drop their prices to keep capacity up.
Next time you pass the kids on your street selling lemon-aid, stop by, buy a glass and ask them if they are making any money. Maybe they'll be able to explain it to you.