Finning Completes Acquisition of Cat® Dealership in Saskatchewan
July 2, 2015
VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 2, 2015) - Finning International Inc. (TSX:FTT) announced today that it has completed its acquisition of the operating assets of the Cat dealership of Kramer Ltd. and is the approved Cat dealer in Saskatchewan. The acquired dealership business combines Finning's Western Canadian operations in British Columbia, Alberta, Yukon, Northwest Territories and part of Nunavut with Saskatchewan and diversifies the company's revenue base into sectors such as potash and uranium.
"With the completion of this strategic transaction, customers will now benefit from improved equipment and parts availability, world-class product support and access to Finning Canada's extensive branch network," said Scott Thomson, president and CEO of Finning International Inc. "We are pleased to welcome our new employees to Finning. Working together, we look forward to providing the highest standard of customer service, growing the business and contributing to communities in Saskatchewan."
Executive Vice President Andy Fraser to Retire from Finning in December 2015
Finning also announced today that Andy Fraser, executive vice president of customer and external relations, has elected to retire from the company at the end of 2015 after playing a pivotal role in the acquisition of the Saskatchewan dealership.
"I would like to take this opportunity to recognize Andy who has made significant contributions to Finning in a tremendous career that spans 36 years and included executive roles leading our UK and Canadian operations," continued Mr. Thomson. "In addition to recently contributing to the successful acquisition of the Saskatchewan dealership, Andy played a leadership role in supporting our continuous efforts to strengthen the safety of our operations in his present position. Under his leadership, we implemented new global safety standards across Finning and accomplished a 25% decline in our total reportable injury frequency rate from 2013 to 2014 marking an all-time low."
"I am leaving Finning at what I feel is a high point in my career with the historic acquisition of the Saskatchewan territory," said Mr. Fraser. "I will leave at the end of the year with a great deal of pride in all of the things that have been accomplished, perhaps none more important than the steps to advance our safety journey and I am confident that my outstanding colleagues will continue to build on this strong foundation going forward."
Prior to his departure in December 2015, Mr. Fraser will work to ensure a smooth transition of his responsibilities which will be redistributed amongst senior leaders with the expertise and experience to support the successful achievement of our business objectives.
Finning International Inc. is the world's largest Caterpillar equipment dealer delivering unrivalled service to customers since 1933. Finning sells, rents and services equipment and engines to help customers maximize productivity. Headquartered in Vancouver, B.C., the company operates in Western Canada, Chile, Argentina, Bolivia, Uruguay, as well as in the United Kingdom and Ireland.
This report contains statements about the Company's business outlook, objectives, plans, strategic priorities and other statements that are not historical facts. A statement Finning makes is forward-looking when it uses what the Company knows and expects today to make a statement about the future. Forward-looking statements may include words such as aim, anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, project, seek, should, strategy, strive, target, and will. Forward-looking statements in this report include, but are not limited to, statements with respect to: expectations with respect to the economy and associated impact on the Company's financial results; expected revenue; expected free cash flow; EBIT margin; ROIC; market share growth; expected results from service excellence action plans; anticipated asset utilization; inventory turns and parts service levels; the expected target range of the Company's net debt to invested capital ratio; and the expected timing and financial impact from the proposed acquisition of the operating assets of the Caterpillar dealership in Saskatchewan. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws.
Unless otherwise indicated by us, forward-looking statements in this report reflect Finning's expectations at July 2, 2015. Except as may be required by Canadian securities laws, Finning does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from the expectations expressed in or implied by such forward-looking statements and that Finning's business outlook, objectives, plans, strategic priorities and other statements that are not historical facts may not be achieved. As a result, Finning cannot guarantee that any forward-looking statement will materialize. Factors that could cause actual results or events to differ materially from those expressed in or implied by these forward-looking statements include: general economic and market conditions; foreign exchange rates; commodity prices; the level of customer confidence and spending, and the demand for, and prices of, Finning's products and services; Finning's dependence on the continued market acceptance of Caterpillar's products and Caterpillar's timely supply of parts and equipment; Finning's ability to continue to improve productivity and operational efficiencies while continuing to maintain customer service; Finning's ability to manage cost pressures as growth in revenues occur; Finning's ability to reduce costs in response to slowing activity levels; Finning's ability to attract sufficient skilled labour resources to meet growing product support demand; Finning's ability to negotiate and renew collective bargaining agreements with satisfactory terms for Finning's employees and the Company; the intensity of competitive activity; Finning's ability to raise the capital needed to implement its business plan; regulatory initiatives or proceedings, litigation and changes in laws or regulations; stock market volatility; changes in political and economic environments for operations; the integrity, reliability, availability and benefits from information technology and the data processed by that technology. Forward-looking statements are provided in this report for the purpose of giving information about management's current expectations and plans and allowing investors and others to get a better understanding of Finning's operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.
Forward-looking statements made in this report are based on a number of assumptions that Finning believed were reasonable on the day the Company made the forward-looking statements. Refer in particular to the Outlook section of this MD&A. Some of the assumptions, risks, and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this report are discussed in Section 4 of the Company's current AIF.
Finning cautions readers that the risks described in the AIF are not the only ones that could impact the Company. Additional risks and uncertainties not currently known to the Company or that are currently deemed to be immaterial may also have a material adverse effect on Finning's business, financial condition, or results of operations.
Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. Finning therefore cannot describe the expected impact in a meaningful way or in the same way Finning presents known risks affecting its business.