New Flyer Business Update

WINNIPEG, Feb. 8, 2013 /CNW/ - (TSX:NFI; TSX:NFI.DB.U) New Flyer Industries 
Inc. ("New Flyer" or the "Company"), the leading manufacturer of heavy-duty 
transit buses in Canada and the United States, provides an update regarding 
financial performance for the fourth quarter of 2012 ("Q4 2012") and an update 
on recent order activity. 
In the Company's third quarter earnings release issued on November 12, 2012, 
management advised that anticipated Adjusted EBITDA for Q4 2012 was expected 
to be stronger than the Adjusted EBITDA realized in the third quarter of 2012 
("Q3 2012"). Although the Company has not yet completed the preparation of 
its financial results for the year ended December 30, 2012, based on the 
information available to date, management now believes that Adjusted EBITDA 
for Q4 2012 will be approximately equal to Adjusted EBITDA of Q3 2012. This 
is primarily the result of an unanticipated delay in deliveries under a 
contract due to a supplier quality issue which is in the process of being 
rectified, a delay in deliveries from the previously announced deferred award 
and production of 90 60-foot Xcelsior buses (180 equivalent units or "EUs") 
under the New York City Transit Authority contract and additional provisions 
in warranty reserve. Final year-end results may vary from management's 
current expectations referred to in this release as the Company completes its 
year-end accounting process and audit, including its assessment of the tax 
provision. The Company will announce definitive results and issue its 
financial statements for the year ended December 30, 2012 on or prior to March 
31, 2013. 
On January 9, 2013, New Flyer issued its quarterly order and backlog update 
for Q4 2012, with a total backlog comprised of 6,325 EUs, having a total value 
of $2.67 billion. 

    --  The total backlog at that date included firm orders received
        from five customers in Q4 2012 for 509 EUs, but approval from
        the customer to issue press releases had not yet been granted. 
        The Company has since received customer approval to issue the
        details regarding these orders and press releases have been
        issued for the following customers: San Diego, Baltimore,
        Orange County, New York and Milwaukee.
    --  Firm orders and options totaling 801 EUs were pending from a
        number of customers where approval had been granted by the
        customer's board, council, or commission, as applicable, but
        purchase documentation had not yet been received by New Flyer
        and therefore not included in the backlog.  Purchase
        documentation has since been received from Birmingham for a
        total of 50 EUs of the 801 EUs and a press release has been

So far in 2013, new contract awards of 1,009 EUs (consisting of 659 firm 
orders and 350 options) have been received by New Flyer from the following 
customers: Los Angeles, Rochester, Phoenix and Edmonton. New Flyer issued a 
press release regarding the Los Angeles award on February 7, 2012.

Management continues to expect that the total backlog, combined with the 
recent order intake, will allow New Flyer to maintain an average weekly line 
entry production rate of approximately 36 EUs for fiscal 2013. Management also 
believes the current dividend rate is sustainable. New Flyer has now paid 
dividends to shareholders for 88 consecutive months since the Company's 
initial public offering in August 2005.

NOTE: All dollar amounts are stated in US currency based on an exchange rate 
of US $1.00 = CAD $0.9965 to calculate the value of the Canadian contracts in 
this release.

About New Flyer

New Flyer is the leading manufacturer of heavy-duty transit buses in Canada 
and the United States. The Company's three manufacturing facilities - in 
Winnipeg, MB; St. Cloud, MN and Crookston, MN - are all ISO 9001, ISO 14001 
and OHSAS 18001 certified. The Company currently operates a parts 
fabrication facility in Elkhart, IN and four parts distribution centers in 
Winnipeg, MB; Brampton, ON; Erlanger, KY and Fresno, CA. The Company also 
operates a service center in Arnprior, ON.

With a skilled workforce of over 2,200 employees, New Flyer is a technology 
leader, offering the broadest product line in the industry, including drive 
systems powered by clean diesel, LNG, CNG and electric trolley as well as 
energy-efficient diesel-electric hybrid vehicles. New Flyer has delivered 
over 32,000 heavy-duty buses in Canada and the United States. All products 
are supported with an industry-leading, comprehensive parts and service 
network. Further information is available on New Flyer's web site at

The common shares and convertible unsecured subordinated debentures of New 
Flyer are traded on the Toronto Stock Exchange under the symbols NFI and 
NFI.DB.U, respectively.

Non-GAAP Measures

Adjusted EBITDA consists of earnings before interest, income taxes, 
depreciation, amortization and other non-cash charges, adjusted for certain 
costs related to offerings and certain other nonrecurring charges as set out 
in the Company's management discussion and analysis dated November 12, 2012 
("MD&A"). Management believes Adjusted EBITDA is a useful measure in 
evaluating the performance of the Company. However, Adjusted EBITDA is not a 
recognized earnings measure and does not have standardized meanings prescribed 
by International Financial Reporting Standards ("IFRS"). Readers of this 
press release are cautioned that Adjusted EBITDA should not be construed as an 
alternative to net earnings or loss determined in accordance with IFRS as an 
indicator of the Company's performance.

Forward-Looking Statements

Certain statements in this press release are "forward-looking statements", 
which reflect the expectations of management regarding the Company's future 
growth, results of operations, performance and business prospects and 
opportunities. The words "believes", "anticipates", "plans", "expects", 
"intends", "projects", "estimates" and similar expressions are intended to 
identify forward-looking statements. These forward-looking statements 
reflect management's current expectations regarding future events and 
operating performance and speak only as of the date of this press release. 
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. Such differences may be caused by factors 
which include, but are not limited to, competition in the heavy-duty transit 
bus industry, availability of funding to the Company's customers to purchase 
buses and to exercise options and to purchase parts or services at current 
levels or at all, aggressive competition and reduced pricing in the industry, 
material losses and costs may be incurred as a result of product warranty 
issues, material losses and costs may be incurred as a result of product 
liability claims, changes in Canadian or United States tax legislation, the 
Company's success depends on a limited number of key executives who the 
Company may not be able to adequately replace in the event that they leave the 
Company, the absence of fixed term customer contracts and the termination of 
contracts by customers for convenience, the current U.S. federal "Buy-America" 
legislation, certain states' U.S. content bidding preferences and certain 
Canadian content purchasing policies may change and/or become more onerous, 
production delays may result in liquidated damages under the Company's 
contracts with its customers, the Company's ability to execute its planned 
production targets as required for current business and operational needs, 
currency fluctuations could adversely affect the Company's financial results 
or competitive position in the industry, the Company may not be able to 
maintain performance bonds or letters of credit required by its existing 
contracts or obtain performance bonds and letters of credit required for new 
contracts, third party debt service obligations may have important 
consequences to the Company, the covenants contained in the Company's senior 
credit facility and the indenture governing the Company's Debentures could 
impact the ability of the Company to fund dividends and take certain other 
actions, interest rates could change substantially and materially impact the 
Company's profitability, the dependence on limited sources of supply, the 
timely supply of materials from suppliers, the possibility of fluctuations in 
the market prices of the pension plan investments and discount rates used in 
the actuarial calculations will impact pension expense and funding 
requirements, the Company's profitability and performance can be adversely 
affected by increases in raw material and component costs, the availability of 
labour could have an impact on production levels, battery-electric propulsion 
on transit buses is still largely unproven technology and there is no 
assurance that such technology will result in a product desired by customers, 
prototype buses must be tested and proven in operating conditions, a 
commercialized product must be marketed and sold to potential customers and 
there may be no significant demand for an all-electric bus from customers, the 
ability of the Company to successfully execute strategic plans and maintain 
profitability and risks related to acquisitions, joint ventures and other 
strategic relationships with third parties. The Company cautions that this 
list of factors is not exhaustive.

These factors and other risks and uncertainties are discussed in its press 
releases and materials filed with the Canadian securities regulatory 
authorities and are available on SEDAR at

Although the forward-looking statements contained in this press release are 
based upon what management believes to be reasonable assumptions, investors 
cannot be assured that actual results will be consistent with these 
forward-looking statements, and the differences may be material. These 
forward-looking statements are made as of the date of this press release and 
the Company assumes no obligation to update or revise them to reflect new 
events or circumstances, except as required by applicable securities laws.

Glenn Asham Chief Financial Officer Tel: 204-224-1251

SOURCE: New Flyer Industries Inc.

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CO: New Flyer Industries Inc.
ST: Manitoba

-0- Feb/08/2013 22:50 GMT

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