All figures quoted in U.S. dollars unless otherwise noted: 2024 Q1 revenue of $723 million; 1,127 equivalent units ("EUs") delivered, up 42% from 2023 Q1, with 201 of EUs delivered being battery- and fuel cell-electric buses ("ZEBs"). Ending total backlog2 position (both firm and options) reached a record high of 14,783 EUs (valued at $11.7 billion), with 365 EUs in bid award pending; ZEBs represent 39% of total backlog2. 2024 Q1 Net loss of $9 million; Net loss per Share of $0.08, and Adjusted Net Loss per Share2 of $0.13. 2024 Q1 Adjusted EBITDA2 of $34 million. Ending Total Liquidity2 position of $166 million. Aftermarket segment delivers record quarterly performance with $160 million of revenue, and $38 million of Adjusted EBITDA2. Reiterate financial guidance for Fiscal 2024 as announced on January 17, 2024, including Adjusted EBITDA2 range of $240 to $280 million; and 2025 Adjusted EBITDA2 target of greater than $350 million. WINNIPEG, Manitoba, May 02, 2024 (GLOBE NEWSWIRE) -- (TSX:NFI, OTC:NFYEF, TSX:NFI) NFI Group Inc. ("NFI" or the "Company"), a leader in zero-emission electric mobility solutions, today announced its unaudited interim condensed consolidated financial results for the first quarter of 2024. Key financial metrics for the quarter and for the last twelve months are highlighted below: in millions except deliveries and per Share amounts 2024 Q1 Change1   2024 Q1 LTM Change1               Deliveries (EUs) 1,127   42 %   4,336   37 %               IFRS Measures3             Revenue $ 723   38 %   $ 2,884   36 % Net loss $ (9 ) 80 %   $ (100 ) 66 % Net loss per Share $ (0.08 ) 87 %   $ (0.98 ) 74 % Cash flow from operations $ 13   120 %   $ 16   109 %               Non-IFRS Measures2,3             Adjusted EBITDA2 $ 34   360 %   $ 96   385 % Adjusted Net Loss2 $ (16 ) 58 %   $ (95 ) 40 % Adjusted Net Loss per Share2 $ (0.13 ) 74 %   $ (0.93 ) 54 % Free Cash Flow2 $ (22 ) 26 %   $ (93 ) 41 % Total Liquidity2 (including minimum liquidity requirement of $50 million) $ 166   34 %   $ 166   34 % Return on Invested Capital2 (ROIC) 2 % 5 %   2 % 5 % Footnotes: Results noted herein are for the 13-week period ("2024 Q1") and the 52-week period ("2024 Q1 LTM") ended March 31, 2024. The comparisons reported in this press release compare 2024 Q1 to the 13-week period ("2023 Q1") and 2024 Q1 LTM to the 53-week period ("2023 Q1 LTM") ended April 2, 2023. Comparisons and comments are also made to the 13-week period ("2023 Q4") ended December 31, 2023. The term "LTM" is an abbreviation for "Last Twelve Month Period". Adjusted EBITDA, Adjusted Net Loss, and Free Cash Flow represent non-IFRS measures; Adjusted Net Loss per Share and Return on Invested Capital ("ROIC") are non-IFRS ratios; and Total Liquidity and Backlog are supplementary financial measures. Such measures and ratios are not defined terms under IFRS and do not have standard meanings, so they may not be a reliable way to compare NFI to other companies. Adjusted Net Loss per Share is based on the non-IFRS measure Adjusted Net Loss. ROIC is based on net operating profit after tax and average invested capital, both of which are non-IFRS measures. See "Non-IFRS Measures" and detailed reconciliations of IFRS Measures to non-IFRS Measures in the Appendices of this press release. Readers are advised to review the unaudited interim condensed consolidated financial statements (including notes) (the "Financial Statements") and the related Management's Discussion and Analysis (the "MD&A"). NFI's Financial Statements were prepared on a going concern basis in accordance with IFRS. Readers are recommended to read "Note 2.1 Basis of preparation" in the Financial Statements regarding the basis of preparation. "Our financial results continued to show positive improvement in the seasonally slower first quarter, with double-digit growth in vehicle deliveries and revenue, significant improvement in margin performance, and a record total backlog2 with a value of nearly $12 billion. While certain legacy inflation impacted deliveries had a negative impact on quarterly results, we have completed the majority of those remaining contracts, which is expected to drive margin growth as we move through 2024," said Paul Soubry, President and Chief Executive Officer, NFI. "Customer demand was at record levels, as we secured the highest new quarterly contract awards in NFI history with over 5,400 EUs of new additions to our backlog2. The Aftermarket segment also delivered another period of record results, highlighting the strength and resiliency of our global parts businesses. Within the Manufacturing segment, our team remains laser-focused on improving production efficiencies, delivering to our customers, and driving volume drop-through as we significantly increase our annual deliveries, capitalizing on the improved pricing and product mix within our backlog2. "The operating environment continues to see challenges related to labour availability and overall supply chain health, two areas that we are actively managing. Supplier performance has seen significant improvement, and, while the first quarter did see year-over-year delivery growth and Aftermarket outperformance, certain deliveries planned for the quarter were pushed into the second quarter of 2024, primarily driven by timing of final customer acceptances. Our recovery was supported by the addition of 210 new team members primarily in manufacturing roles. "Our focus on working capital management was another bright spot, with improvements in working capital days both year-over-year and sequentially from the fourth quarter of 2023. This helped us maintain a strong quarter ending liquidity position, even as we increased new vehicle starts. Our teams are advancing discussions with customers regarding proposed changes to U.S. contract structures, including progress payments and milestone billings, pricing adjustments, and changes to customization levels. We saw some benefit from taking these actions during the quarter and expect they will provide further positive benefit to working capital investments as we build these new terms into future contracts. "Overall, we are confident in our ability to execute to our plan and reaffirm our 2024 expectations for double-digit growth in revenues and deliveries, triple digit growth in Adjusted EBITDA2, and positive Free Cash Flow2 generation in the second half of the year." Liquidity2 The Company's Total Liquidity2 position, which combines cash on-hand plus available capacity under its senior first lien credit facilities (without consideration given to the minimum liquidity requirement of $50 million), was $166 million as at the end of 2024 Q1, down 12% from the end of 2023 Q4. Total Liquidity2 position was positively impacted by cash generated from operating activities, offset by interest expenses, repayments on obligations under capital leases and capital expenditures, which required the Company to make draws on its North American and UK secured facilities. NFI generated $10 million in cash flows from working capital in the first quarter of 2024, as higher vehicle deliveries lowered finished goods and work-in-process ("WIP") inventory. These reductions were offset by an increase in raw material balances, which remain elevated, reflecting higher input costs for ZEB components and higher carrying balances to support consistent supply. Working capital was also impacted by a reduction in overall deferred revenue balances, from the recognition of pre-payments on final deliveries and from a reduction in provision balances to cover warranty campaign activities. NFI expects that its Total Liquidity2 position may decrease slightly during the second quarter of 2024 as WIP and finished goods inventory balances increase as production rates increase. The Company remains focused on cash and liquidity management, including efforts to accelerate deliveries and customer acceptances, accelerating customer payments through the pursuit of advance payments and deposits wherever possible, and improving supplier payment terms. NFI believes that its existing liquidity supports the execution of the Company's operational and strategic goals, including planned increases in production rates and investments in zero-emission products and electric propulsion technology. Segment Results Manufacturing segment revenue for 2024 Q1 increased by $177 million, or 46%, compared to 2023 Q1, driven by higher new vehicle deliveries higher average sales prices per unit, and product mix. The Company continued to see improvement in supplier performance and on-time production in 2024 Q1. Manufacturing Adjusted EBITDA2 improved by $21 million, or 91%, compared to 2023 Q1. The improvement was driven by higher deliveries, favourable sales mix, and a lower number of legacy inflation-impacted deliveries. Manufacturing Adjusted EBITDA2 as a percentage of revenue showed continued improvement, increasing from (6%) in 2023 Q1 to (0.4%) in 2024 Q1. At the end of 2024 Q1, the Company's total backlog2 (firm and options) of 14,783 EUs (firm and options) increased by 40% from the end of 2023 Q4, and increased by 47% from the end of 2023 Q1. The increase was driven by record awards in the quarter, offset by higher deliveries. NFI also had 365 EUs of new firm and option orders in bid awards pending (where NFI had received notification of award from the customer, but formal purchase order documentation had not yet been finalized) as at the end of 2024 Q1. Backlog2 for 2024 Q1 has a total dollar value of $11.7 billion, and the average price of an EU in backlog2 is now $0.79 million, a 19% increase from 2023 Q1. Aftermarket segment delivered another quarter of record results with revenue of $160 million, an increase of $21 million, or 15%, compared to 2023 Q1, driven by increased volume in North American public and private markets, and the impacts of heightened inflation on parts pricing. In 2024 Q1, Aftermarket Adjusted EBITDA2 was $38 million, an increase of $8 million, or 27%, year-over-year, stemming from improved sales volume, pricing adjustments and favourable product mix. Aftermarket Adjusted EBITDA2 as a percentage of revenue was strong at 23%, compared to 21% for the same period in 2023. Net Loss, Adjusted Net Loss2, and Return on Invested Capital2 In 2024 Q1, the net loss of $9 million decreased by $37 million from 2023 Q1, improving by 80%, with improvements in vehicle deliveries, revenue, favourable sales mix, and Adjusted EBITDA2 offset somewhat by higher interest and financing costs. Adjusted Net Loss2 for 2024 Q1 of $16 million improved from 2023 Q1 Adjusted Net Loss2 of $38 million, driven by the same items that impacted Adjusted EBITDA2 and net loss, adjusted for unrealized fair market gains related to foreign exchange, the Company's interest rate swap and the prepayment option on second-lien debt, plus other normalization adjustments including non-recurring restructuring and past service and pension costs. 2024 Q1 ROIC2 increased by 6% from 2023 Q1, primarily due to the increase in Adjusted EBITDA2 and a slight decrease in the invested capital base. The decrease in invested capital2 is primarily driven by a decrease in long-term debt balances as the Company completed a comprehensive refinancing plan during 2023 Q3. Also contributing are increases in cash balances as the Company generated cash from its operating activities during 2023 Q4 and 2024 Q1. Efforts to Strengthen Bus Manufacturing in the U.S. During the quarter, NFI continued to advance efforts championed by the American Public Transportation Association ("APTA") and the U.S. Federal Transit Administration ("FTA") to support more competitive and stable bus manufacturing capacity in the United States. These activities included discussions on pricing adjustments to legacy inflation-impacted contracts bid from 2020 to 2023, the incorporation of progress payments (deposits, advances, and milestone payments), pricing adjustments to future contracts to reflect price inflation or deflation, and a potential reduction in vehicle customization through the establishment of standard specifications and best practices. NFI has experienced some success from these efforts and during the quarter, completed some price adjustments on legacy contracts and progress payment structures with certain customers. The Company will continue discussions with customers on incorporating progress payments into existing contracts and has begun to build progress payments into new contracts wherever possible. Management expects these actions may have a positive impact on NFI's financial performance in future periods, especially as it relates to working capital investments. Outlook Management anticipates continued positive improvements to revenue, gross profit, Adjusted EBITDA2 and Free Cash Flow2, a shift to net earnings from net loss, and improvement in ROIC2 over the next 12 to 24 months, as the Company ramps-up production, delivers on its backlog2, and benefits from the growing demand for its buses, coaches, parts, and Infrastructure Solutions™ services. Management believes market demand is evident through NFI securing record new quarterly orders of 5,421 EUs in 2024 Q1, the Company's North American active bids of 5,410 EUs, and the current five-year forecasted demand within the Company's North American bid universe of 21,350 EUs. This bid activity is expected to drive additional backlog2 growth throughout 2024, and revenue growth in the medium- and longer-term. In addition, demand within private coach and international transit markets has also seen strong growth driven by increasing ridership, travel and return to work initiatives. These demand factors are expected to drive additional new orders in 2024. ZEB demand has remained strong, with an increased number of ZEB bids and the number of EUs per ZEB bid increasing, as transit agencies are progressing from pilot or trials to more active deployment and operation of ZEB fleets. NFI expects active ZEB bids to remain high through the coming years based on government funding levels supporting state, provincial and municipal ZEB adoption targets. NFI is working closely with its suppliers to monitor supply chain performance, and, due to the Company's strong backlog2, has been able to provide longer-term production visibility to its supply base for the remainder of 2024 production. As part of NFI's supplier development program, the Company provides a risk rating to all its key suppliers based upon their on-time delivery performance and other factors. NFI has seen a significant decline in the number of moderate and high-risk suppliers driven by a combination of overall improvements in global supply chain health and actions taken by NFI's supply and sourcing teams. The Company appointed a dedicated Vice President of Supplier Development in early 2024 who has continued to strengthen NFI's supply oversight. In 2024 Q1, NFI continued increasing new vehicle production rates and hiring new team members to support this increase. While there has been significant positive improvement, the labour market within the United States and the UK remains challenging. NFI plans to continue to ramp-up production and add personnel on a phased approach throughout 2024, with gradual headcount additions ensuring that the ramp-up is matched to consistent supply and labour availability. NFI successfully added 210 team members during the quarter, primarily in production related roles. Gross margins and other profitability metrics are expected to improve production rates and bus and coach deliveries increase, WIP is reduced, and as the remaining inflation-impacted legacy contracts are completed. NFI anticipates that nearly all of the remaining legacy inflation-impacted contracts will be delivered during the second quarter of 2024. The Company has seen signs of commodities and raw material costs easing and anticipates that contracts in NFI's backlog2 now reflect appropriate, inflation-adjusted costing and pricing. Financial Guidance and Targets NFI reiterates its previously provided financial guidance for Fiscal 2024 and targets for 2025 as disclosed on January 17, 2024. As NFI disclosed in its fourth quarter 2023 financial results, the Company expects to deliver approximately 35% of annual Adjusted EBITDA2 in the first half of 2024, with approximately 65% of annual Adjusted EBITDA2 expected to be delivered in the second half of the year. First quarter 2024 results were in-line with these overall expectations. These seasonality expectations are based on expected production ramp up, the timing of certain ZEB deliveries, impacts of legacy inflation-impacted contracts, and sales mix. NFI's guidance and targets are subject to the risk of supply disruptions being extended and/or exacerbated and the risk of additional supply disruptions affecting key parts or components. In addition, the guidance and targets do not reflect potential escalated impact on supply chains or other factors arising directly or indirectly as a result of ongoing conflicts in Ukraine, Russia, Israel, Palestine, and the Middle East. Although NFI does not have direct suppliers in these regions, additional supply delays, possible shortages of critical components or increases in raw material costs may arise as the conflicts progress and if certain suppliers' operations and/or subcomponent supply from affected countries are disrupted further. In addition, there may also be further general industry-wide price increases for components and raw materials used in vehicle production as well as further increases in the cost of labour and potential difficulties in sourcing an increase in the supply of labour. See Appendix B Forward Looking Statements for risks and other factors and the Company's filings on SEDAR at www.sedarplus.ca. Annual General Meeting of Shareholders, and Board of Directors Update NFI's Annual General Meeting of Shareholders (the "Shareholders' Meeting") will be held virtually on Friday, May 3, 2024, at 11:00 a.m. (EST). After nine years and upon the completion of the Company's Shareholders' Meeting, Phyllis Cochran will retire as a member of the Board of Directors and Chair of the Audit Committee of NFI. The Board of Directors extends its sincere thank you to Phyllis for her contributions, dedication, and leadership as a Director, Audit Chair, and partner to NFI. Ms. Anne Marie O'Donovan, FCPA, FCA, ICD, is being nominated as a new independent Director on NFI's Board. Ms. O'Donovan served as the Executive Vice President and Chief Administrative Officer, Global Banking and Markets at Scotiabank from 2009 to 2014, and the Senior Vice President and Chief Auditor of Scotiabank from 2005 to 2009. Ms. O'Donovan is also a former partner at Ernst & Young LLP. She is the chair of the board of Aviva Canada Inc., chair of the audit committee of Cadillac Fairview Corp. and serves on the board and chairs the investment committee of CMA Impact Inc., a subsidiary of the Canadian Medical Association. She is a past director, chair of the audit committee and chair of the compensation committee of Indigo Books & Music, Inc. and director and chair of the audit committee of MDC Partners Inc. If Ms. O'Donovan is elected to the Board, she will also become the Chair of the Audit Committee of NFI. The materials for the Shareholders' Meeting and voting instructions have been sent to shareholders in advance of the meeting and are available on NFI's website at: https://www.nfigroup.com/events-and-presentation/annual-general-meeting. The meeting website for the webcast is available at the same link. Environmental, Social & Governance Update NFI's Environmental Social Governance Report for 2023 will be released on the Company's website in May 2024. As of the end of 2024 Q1, NFI employed 8,776 team members across its global locations, up from 8,566 as of the end of Fiscal 2023. First Quarter 2024 Results Conference Call and Filing A conference call for analysts and interested listeners will be held on Friday, May 3, 2024, at 8:30 a.m. Eastern Time (ET). An accompanying results presentation will be available prior to market open on Friday, May 3, 2024, at www.nfigroup.com. For attendees who wish to join by webcast, registration is not required; the event can be accessed at https://edge.media-server.com/mmc/p/zeudch8z. NFI encourages attendees to join via webcast as a results presentation will be presented and users can also submit questions to management through the platform. The results presentation will be available at www.nfigroup.com. Attendees who wish to join by phone must visit the following link and pre-register: https://register.vevent.com/register/BIfefc68e9b4b34db4ab3ec8162bfac924. An email will be sent to the user's registered email address, which will provide the call-in details. Due to the possibility of emails being held up in spam filters, we highly recommend that attendees wishing to join via phone register ahead of time to ensure receipt of their access details. A replay of the call will be accessible from about 12:00 p.m. ET on May 3, 2024, until 11:59 p.m. ET on May 2, 2025, at https://edge.media-server.com/mmc/p/zeudch8z. The replay will also be available on NFI's website at: www.nfigroup.com. About NFI Group Leveraging 450 years of combined experience, NFI is leading the electrification of mass mobility around the world. With zero-emission buses and coaches, infrastructure, and technology, NFI meets today's urban demands for scalable smart mobility solutions. Together, NFI is enabling more livable cities through connected, clean, and sustainable transportation. With over 8,750 team members in ten countries, NFI is a leading global bus manufacturer of mass mobility solutions under the brands New Flyer® (heavy-duty transit buses), MCI® (motor coaches), Alexander Dennis Limited (single and double-deck buses), Plaxton (motor coaches), ARBOC® (low-floor cutaway and medium-duty buses), and NFI Parts™. NFI currently offers the widest range of sustainable drive systems available, including zero-emission electric (trolley, battery, and fuel cell), natural gas, electric hybrid, and clean diesel. In total, NFI supports its installed base of over 100,000 buses and coaches around the world. NFI's common shares ("Shares") trade on the Toronto Stock Exchange ("TSX") under the symbol NFI and its convertible unsecured debentures ("Debentures") trade on the TSX under the symbol NFI.DB. News and information is available at www.nfigroup.com, www.newflyer.com, www.mcicoach.com, nfi.parts, www.alexander-dennis.com, arbocsv.com, and carfaircomposites.com. For investor inquiries, please contact: Stephen King P: 204.224.6382 Appendix A - Reconciliation Tables Reconciliation of Net Loss to Adjusted EBITDA and Net Operating Profit after Taxes Management believes that Adjusted EBITDA2, and net operating profit after taxes2 ("NOPAT") are important measures in evaluating the historical operating performance of the Company. However, Adjusted EBITDA2 and NOPAT2 are not recognized earnings measures under International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS. Accordingly, Adjusted EBITDA2 and NOPAT2 may not be comparable to similar measures presented by other issuers. Readers of this press release are cautioned that Adjusted EBITDA2 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 and NOPAT2 should not be construed as an alternative to earnings or loss from operations determined in accordance with IFRS as an indicator of the Company's performance. See "Non-IFRS Measures" for the definition of Adjusted EBITDA2. The following table reconciles net loss to Adjusted EBITDA2 based on the historical financial statements of the Company for the periods indicated. The Company defines NOPAT2 as Adjusted EBITDA2 less depreciation of plant and equipment, depreciation of right-of-use assets and income taxes at a rate of 31%. ($ thousands)           2024 Q1 2023 Q1 2024 Q1 LTM 2023 Q1 LTM Net loss (9,414 ) (45,964 ) (99,770 ) (294,545 ) Addback         Income taxes (6,029 ) (7,562 ) (31,373 ) (46,238 ) Interest expense10 30,654   32,218   150,834   78,341   Amortization 21,237   20,901   81,116   86,045   (Gain) loss on disposition of property, plant and equipment and right of use assets (97 ) (17 ) 709   (209 ) Loss (Gain) on debt modification15 -   -   (8,908 ) -   Unrealized foreign exchange loss (gain) on non-current monetary items and forward foreign exchange contracts (5,491 ) (424 ) (1,371 ) (5,790 ) Past service costs and other pension costs7 -   4,764   (7,000 ) 11,764   Equity settled stock-based compensation 389   409   2,597   1,470   Unrecoverable insurance costs and other8 144   -   1,037   8,078   Expenses incurred outside of normal operations12 -   1,246   920   5,007   Prior year sales tax provision9 -