NFI Group Inc. · TSX:NFI
NFI — Q1 2021 Earnings Presentation
24 slides from NFI's earnings presentation, May 6, 2021
Slide 1: Earnings Presentation – 2021 Q1 Results
Earnings Presentation – 2021 Q1 Results May 6, 2021
Slide 2: Cautionary Statement
Cautionary Statement Certain statements in this presentation 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. These forward-looking statements are made as
Slide 3: Key Terms
Key Terms • Buses manufactured by New Flyer and ADL's single and double deck buses are classified as "transit buses". ARBOC manufactures body on- chassis or “cutaway” and "medium-duty" buses that service transit, paratransit, and shuttle applications. Collectively, transit buses, medium- duty buses
Slide 4: ZEB experience and capacity at a glance
40+ million Electric service miles since 20151 1,465 50+ ZEBs delivered since 20152 450+ years of 94 electric bus years of bus experience ZEBs delivered in 2021 Q1 (10% of total) and coach experience 80+ Cities with an NFI ZEB in service or on order 105k 1,568 13 ZEBs in backlog (18% of total backlo
Slide 5: 2021 Q1 Executive Summary
2021 Q1 Executive Summary • Strong first quarter 2021 results, with encouraging signs of market recovery, and growth in backlog and active procurements • Electric buses represented 10% of deliveries in the quarter (94 ZEB EUs delivered) • NFI Forward transformation achieved its targets in 2021 Q1 •
Slide 6: Backlog and 2021 Q1 New Vehicle Deliveries
Backlog and 2021 Q1 New Vehicle Deliveries Backlog – Firm & Option Backlog – Timing Backlog – By Product Medium- Firm Options Duty and Low-Floor Cutaway 10,579 4% 8,504 8,586 6,497 Motor 5,264 5,279 Coach 12% 4,082 3,240 3,307 LTM 2021 Q1 Option Conversion Rate = 45% Heavy-Duty Transit 2020 Q1 2020
Slide 7: 2021 Q1: Income Statement and Balance Sheet
2021 Q1: Income Statement and Balance Sheet 2021 Q1 Performance 2021 Q1 Cash Flow & Liquidity 2020 Q1 2021 Q1 Cash Flow ($M) Sales $710.4M $574.1M 2020 Q1 2021 Q1 $54.8 Adjusted EBITDA $56.0 $54.8 Adjusted $56.0 7.9% 9.6% Interest Expense ($14.4) ($16.7) EBITDA1 ROS ROS Current Income Tax ($16.9) ($
Slide 8: Net Earnings and Adjusted Net Earnings
Net Earnings and Adjusted Net Earnings Net Earnings ($M) Adjusted Net Earnings ($M)1 2020 Q1 ($67) ($1.08) per share 2020 Q1 ($0) ($0.01) per share 2021 Q1 $7 $0.11 per share 2021 Q1 $6 $0.09 per share LTM 2020 Q1 ($26) ($0.41) per share LTM 2020 Q1 $79 $1.15 per share LTM 2021 Q1 ($83) ($1.32) per
Slide 9: NFI Forward Update
NFI Forward Update Timing for 2020-2023 Benefits Cumulative $10.0 ($M) $8.6 $6.8 All NFI Forward $60 $67 Initiatives $1.0 $47 At or Above Targets $17 In Year ~$30M In Year ~$13M In Year ~$7M 2020A 2021E 2022E 2023E Cash Flow on Track for Adjusted EBITDA Free Cash Flow (FCF) $10M+ Continued NFI Forwa
Slide 10: 2021 Guidance - Reaffirmed
2021 Guidance - Reaffirmed Revenue • Driven by market recovery in NA Bus and Coach and UK transit $2.8 billion to $2.9 billion • Continued growth of ARBOC in cutaway and medium-duty markets ZEBs expected to make up 20% to 25% • ADL’s international expansion in Europe and APAC of 2021 manufacturing r
Slide 11: NFI Adjusted Effective Tax Analysis
NFI Adjusted Effective Tax Analysis 2021 Q1 Components of Tax Adj. EBITDA $54.9M *Tax Variable = 21% - 23% D&A $24.6M Interest Expense $17.7M Adj. EBT $12.5M Tax Variable $1.9M Tax Fixed (Annual) = $18M -$22M Tax Fixed $4.5M Total Adjusted Tax $6.4M Variable and Fixed components of ETR Adjusted 51.4
Slide 12: Unprecedented Government Support for Zero-Emission Transit
Unprecedented Government Support for Zero-Emission Transit $14.9B transit funding Proposed $2.3T Ten Point Plan for a program (Feb 2021 announcement) American Jobs Plan; Green Industrial ($2.75B of which is 8-year investment Revolution (Nov 2020) dedicated to zero-emission package; includes $85B to
Slide 13: Public Market Bid Universe Showing Signs of Recovery
Public Market Bid Universe Showing Signs of Recovery 35,000 Canada and U.S. Public Market Bid Universe 1,532 EUs Bids in Process 3,053 EUs Bids in Process Bids Submitted 5 Year Forecast 30,000 Bids Submitted 18,802 EUs 25,000 20,000 Five-Year Procurement Outlook compiled from Customer Fleet replacem
Slide 14: Positioned for Growth and Margin Enhancement
Positioned for Growth and Margin Enhancement Recovery, NFI Forward, and Leading the ZEvolution 2020 – 2025 REVENUE ($M) $3,900 to $4,100 $2,800 to $2,900 $2,419 16% - 20% 8%+ CAGR Growth (2021-2025) 2020 2021 2025 Guidance Target ADJ EBITDA ($M)(1) $400 to $450 $220 to $240 $158 40% - 50% 16%+ CAGR
Slide 15: NFI Summary & Outlook
NFI Summary & Outlook • Solid quarter with significant improvements to leverage and signs of market recovery from increased active bids and procurements in North America and the Solid 2021 Q1 results UK • NFI Forward advancing well, delivering significant savings and positioning NFI for Significant
Slide 16: Appendices
Appendices NFL Leading the ZEvolution-
Slide 17: Forward-Looking Statements Non-IFRS Measures
Forward-Looking Statements Certain statements in this presentation are “forward-looking statements”, which reflect the current expectations of management regarding the Company's future growth, financial performance and financial position and the Company’s strategic initiatives, plans, business prosp
Slide 18: Appendix: Key Definitions
Appendix: Key Definitions • Adjusted EBITDA: Earnings before interest, income taxes, depreciation and amortization after adjusting for the effects of certain non- recurring and/or non-operations related items that do not reflect the current ongoing cash operations of the Company. These adjustments i
Slide 19: Appendix: Financial Highlights
Appendix: Financial Highlights $M Q1 (except EU and EPS) 2021 2020 Change Deliveries (EUs) 955 1,279 (25.3%) Revenue $574.1 $710.4 (19.2%) Gross Profit $85.8 $83.7 2.6% Gross Profit % 15.0% 11.8% 320bps Adjusted EBITDA $54.8 $56.0 (2.1%) Adjusted EBITDA Margin % 9.6% 7.9% 170bps Earnings from operat
Slide 20: Appendix: Non-IFRS Reconciliation (2021)
Appendix: Non-IFRS Reconciliation (2021) Reconciliation of IFRS to non-IFRS As of March 28 2021 First In '000 Quarter Net Sales $ 574,120 Net Earnings $ 7,033 % of net sales 1.2% Adjustment, Gross Restructuring and Other Corporate Initiatives $ 2,372 Goodwill Impairment $ - Derivative related $ (7,6
Slide 21: Appendix: Non-IFRS Reconciliation (2020)
Appendix: Non-IFRS Reconciliation (2020) Reconciliation of IFRS to non-IFRS As of December 27 2020 First Second Third Forth In '000 Quarter Quarter Quarter Quarter Full Year Net Sales $ 710,384 $ 333,334 $ 663,922 $ 711,523 $ 2,419,163 Net Earnings $ (67,239) $ (74,049) $ (24,913) $ 8,465 $ (157,736
Slide 22: Market Update: North American Heavy Duty Transit
Market Update: North American Heavy Duty Transit North American Heavy-Duty Transit1,2 6,717 6,504 6,336 6,032 5,933 5,795 5,373 5,284 5,154 5,128 5,109 5,055 5,017 5,010 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NFI’s 2020 Market Share: 43% (1) Source: Metro Magazine and
Slide 23: Market Update: Private Under Continued Pressure
Market Update: Private Under Continued Pressure North American Motor Coach Market (public and private)1 North American Motor Coach Market Update • Total market decreased by 58.1% year-over-year • 120 EUs delivered in 2021 Q1 (vs 160 EUs in 2020 Q1) 2,470 2,385 2,357 2,324 2,305 • Market remains depr
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