Earnings per share Zero, Estimate ZeroWell, they didn't miss expectations - LoL !
Should be interesting tomorrow to find out how the market responds to the earnings report. Do they focus on the sales numbers or on the outlook?
Outlook
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.
Orders
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.