NFI Group Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Year to Date Ended July 1, 2018; Provides Effective Tax Rate Guidance for the Full Year of 2018
August 07, 2018 at 05:31 pm
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NFI Group Inc. reported unaudited consolidated earnings results for the second quarter and year to date ended July 1, 2018. For the quarter, the company's total revenue was $673.0 million compared to $613.4 million a year ago. Revenue from manufacturing operations for 2018 second quarter increased by 10.6% compared to 2017 second quarter. The increase primarily resulted from a 17.0% increase in new transit bus, coach and cutaway deliveries, as well as the inclusion of the revenue generated from third parties by the fiberglass reinforced polymer component operations. Net earnings were $49.7 million or $0.81 per basic share, compared to $42.8 million or $0.69 per basic share, a year ago. Adjusted earnings per basic share were $0.83 compared to $0.68 a year ago. Net earnings per common share of NFI increased by $0.12, primarily as a result of increased earnings from operations and a decrease in income tax expense as a result of U.S. tax reform. Total adjusted EBITDA was $91.4 million compared to $85.1 million a year ago. Free cash flow was $47.8 million compared to $40.8 million a year ago. Free cash flow in 2018 second quarter increased 17.2% when compared to 2017 second quarter primarily due to increased adjusted EBITDA. The effective tax rate tad under 25%.
For the year to date, the company's total revenue was $1,251.7 million compared to $1,185.6 million a year ago. The increase in 2018 year to date revenue primarily relates to increased deliveries of 14.3% when compared to 2017 year to date offset by a decrease in new transit bus, coach and cutaway average selling price per EU in 2018 year to date of 8.0% when compared to 2017 year to date. Net earnings were $80.1 million or $1.29 per basic share, compared to $80.7 million or $1.30 per basic share, a year ago. Adjusted earnings per basic share were $1.41 compared to $1.27 a year ago. Net earnings for 2018 year to date decreased when compared to 2017 year to date by $0.6 million primarily as a result of changes in non-recurring and/or non-operational transactions. Total adjusted EBITDA was $165.2 million compared to $156.5 million a year ago. ROIC during the last twelve months ended July 1, 2018 was 15.5% as compared to 14.9% during the last twelve months ended July 2, 2017 improving primarily as a result of a decreased effective tax rate, as well as improved net operating profits. Free cash flow was $88.5 million compared to $81.2 million a year ago.
For the year, the company expects effective tax rate to be 29% to 31% range.
NFI Group Inc. is a Canada-based independent global bus manufacturer. The Company provides a suite of mass transportation solutions under brands: New Flyer (heavy-duty transit buses), Alexander Dennis (AD) (single and double-deck buses), Plaxton (motor coaches), MCI (motor coaches), ARBOC (low-floor cutaway and medium-duty buses) and NFI Parts (aftermarket parts sales). It operates through two segments: Manufacturing Operations and Aftermarket Operations. The Manufacturing Operations segment manufactures, services and supports transit buses, coaches, medium-duty, and cutaway buses. The Aftermarket Operations segment is engaged in the sale of aftermarket parts for transit buses, coaches and medium- duty/cutaway buses, both for the Company's and third-party products. Its product type includes Heavy-duty transit buses, Single deck buses, Double-deck buses, Articulated buses, motor coaches, low floor cutaway, and medium-duty buses.
NFI Group Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Year to Date Ended July 1, 2018; Provides Effective Tax Rate Guidance for the Full Year of 2018