Professional Documents
Culture Documents
Grande West Transportation - Investor-Feb2017
Grande West Transportation - Investor-Feb2017
These forward-looking statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this presentation.
Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner to the availability of sufficient working capital to
market the Company's products and provide after-sales maintenance and support services to the Company's customers, access to adequate services and supplies to operate the
Company's business, economic conditions, commodity prices, foreign currency exchange rates, interest rates, access to capital and debt markets and associated costs of funds,
availability of a qualified work force, and the ultimate ability to develop, manufacture and sell the Company's products on economically favourable terms. Forward-looking statements
involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the
times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking
statements, including, but not limited to, the factors discussed under ''Risk Factors'' in the Company prospectus dated November 27, 2013 and which will be detailed from time to time
in the Companys interim and annual financial statements and managements discussion and analysis of those statements, all of which are or will be available for review on SEDAR at
www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward-looking statements there
may be other factors that cause its performance not to be as anticipated. These forward-looking statements relate only to events or information as of the date on which the statements
are made. The Company neither intends nor assumes any obligation to update these forward-looking statements or information to reflect changes in assumptions or circumstances
other than required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those
currently anticipated. Accordingly, readers should not place undue reliance on forward-looking statements.
Disclaimer
This presentation does not form part of any offer of securities, or constitute a solicitation of any offer to purchase or subscribe for securities. The sole purpose of this presentation, in
paper or electronic form, is strictly for information.
Grande West is positioned within a changing bus transit business model. The Right-Sizing
concept successfully applied by Southwest and WestJet Airlines to change the airline business
model is being adapted by bus transit for many of the same reasons.
In a comparison look, Grande West is supplying mid-size buses in much the same way that
SouthWest and WestJet Airlines model demanded mid-size planes. Grande West has a
considerable rst mover advantage as the major bus manufacturers failed to recognize the
trend.
With a bus transit model that is moving towards Right-Sizing, Grande West is well positioned to
satisfy demand and, with best in class designation, should be able to capture and dominate the
mid-size bus market.
Political
Budget
Constraints
High
Need for
Customer
Mid-Size Bus
Expectations
Many transit systems have traditionally standardized their eets around 40-foot buses due to the simplicity of a
uniform eet and the lack of smaller, high quality, low oor, heavy duty buses on the market. Some systems have
been lamenting this neglected market niche for years, to no avail. The Grande West Vicinity product nally provided
an answer, having designed a brand new vehicle from the ground up, specically in response to this market gap.
Increasingly, transit systems are recognizing that the 40-foot bus is not a one-size-ts-all vehicle. It is
excellent for high volume routes, but is big and unwieldy in residential neighbourhoods and presents a wasteful
image when operating with few passengers. More and more systems are also realizing that service frequency builds
ridership better than spatial coverage. In other words, more frequent service with smaller buses is far more
attractive than less frequent service with larger ones. For example, the concept of more widely spaced routes
operating every 15 minutes as opposed to more closely spaced ones every 30 minutes, presents customers with a
far more attractive and reliable transit option. Smaller buses are perfect for this type of strategy and more
and more systems are looking seriously at Right-Sizing their eet by introducing smaller buses for
portions of their route network that do not warrant 40-foot buses.
- Michael Roschlau, Grande West Strategic Advisor, former CEO of Canadian Urban Transit Association
$560,000
ElDorado >50% 30-35% 15-20% 12 year
Stopped bid CAN in 2016
*This information is taken from publicly available information such as Altoona Test Results and public tenders in Canada - these values have not been audited by Grande West.
USA 47 $17,000,000
*As we enter 2017, the order book for 2018 deliveries will begin to fill up.
EPS FD/Issued $(0.035) / $(0.05) $0.04 / $0.06 $0.08/ $0.105 $0.18 / $0.24
These are scenarios based on existing sales and potential sales and near term market potential.
Head Office: Vancouver, British Columbia, Canada USA - Alliance Bus Group
Sales in most provinces One of the largest USA retail bus sellers
Full service, support and warranty network in place National coverage, with mega-dealers
Increased Revenue
Canadian Market Acceptance
+
Higher Operating Margins
Increased Production, Operating Efficiencies
+
US Market
Private operator sales gaining traction
Buy America certified, bidding public transit
$25.3B transit budget pledge over the next 11 years; $3.4B in 3 years
Grande West has cultivated and developed relationships with all transit
repeat orders.
2. A) Unsecured $828,000,
Fully Diluted 69,430,156 8% coupon, 5 year, $0.33 strike
B) Unsecured $1,200,000,
8% coupon, 5 year, $0.68 strike
Insider / Founder Ownership 45%
C) Unsecured $1,200,000,
8% coupon, 2 year, $0.68 strike
2017 - Q1 2018 Pre-booked revenues over $87 million; 247 bus backlog
Large sales and RFP pipeline
Canadian Market is Developed
- Sales in most provinces, additional orders expected
- Many repeat orders
Phone:(604) 688-0078