Finning Provides a Corporate Update
VANCOUVER, British Columbia, March 20, 2020 (GLOBE NEWSWIRE) — Finning International Inc. (TSX: FTT) announces business continuity measures in response to COVID-19 and related market conditions.
In response to the COVID-19 pandemic and global market volatility, we have activated robust business continuity plans to minimize disruptions to our business and adapt to evolving market conditions. Our top priority is the health and safety of our staff, customers, and the communities in which we operate. We have taken appropriate precautions in this regard while continuing to deliver products and services to meet our customers’ needs. To that end, we are following the advice of health authorities in each jurisdiction where we operate. Globally, we have implemented social distancing, team separation, and extensive work from home initiatives, as well as eliminated all travel not related to critical logistics and field operations. We remain well-positioned to serve customers through a number of channels, including online at parts.cat.com, our ongoing branch operations, call centres, dropboxes and other flexible delivery alternatives. With the full support of Caterpillar, our global supply chain is functioning well, with minimal disruptions to date and global continuity plans in place. Our branch operations currently remain open in each region, parts warehouses are operating, and we continue serving customers at their sites. As conditions evolve, we will adjust our plans in line with our business continuity protocols, with employee, customer and community health and safety as our highest priority. We recognize, however, that the effects of the COVID‑19 pandemic and government or customer actions to respond could ultimately be materially disruptive for Finning.We are in a strong financial position, with access to capital, including our $1.3 billion global credit facility which is committed through 2024, as well as a balanced debt maturity profile and capacity to increase capital availability in each of our regions.We are taking significant actions to control what we can, particularly our costs and capital investments. We are starting with our leadership team, whose salaries will be reduced effective April 2020 by 20% for our CEO, 12% for our senior leadership team and 7% for SVPs and VPs. We have also implemented strict cost containment measures throughout the organization, including freezing recruiting activities and minimizing all discretionary costs. We are taking proactive measures to actively control working capital investments and minimize capital and rental expenditures to mission-critical maintenance and IT capital only. We are confident these additional measures will augment our ongoing emphasis on maximizing EBITDA to free cash flow conversion, which will further strengthen our balance sheet.“We continue to monitor the COVID-19 situation closely and are responding swiftly and effectively to protect the interests of our stakeholders. I am confident that our skilled and loyal workforce, the diversification and strength of our business model, and our strong relationship with Caterpillar position us well to navigate the current environment,” said Scott Thomson, President and CEO of Finning International.Finning International is the world’s largest Cat equipment dealer delivering unrivalled service to customers for more than 87 years. Finning sells, rents and provides parts and service for equipment and engines to help customers maximize productivity. Headquartered in Vancouver, B.C., the Company operates in Western Canada, Chile, Argentina, Bolivia and the United Kingdom and Ireland.Contact Information:
Senior Vice President, Investor Relations and Treasury
www.finning.comMedia and Government Relations
Director, Global Communications
This news release contains statements about our business outlook, objectives, plans, priorities and other statements that are not historical facts. A statement we make is forward-looking when we use what we know and expect today to make a statement about the future. Forward-looking statements may include terminology such as aim, anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, project, seek, should, strategy, strive, target, and will, and variations of such terminology. Forward-looking statements in this circular include, but are not limited to, statements with respect to: our business continuity management plans to respond to COVID-19 and related market conditions; adjustments to our plans to adapt to changing conditions; our continuing ability to serve customers through channels, including online at parts.cat.com, our ongoing branch operations, call centres, dropboxes and other flexible delivery alternatives; the functioning of our global supply chain; our strong financial position and capacity to increase capital availability in each of our regions; actions we are taking to control our costs and capital investments, including freezing recruiting activities, minimizing discretionary costs, controlling working capital investments and minimizing capital and rental expenditures to mission-critical maintenance and IT capital only; our belief that these measures will augment our ongoing emphasis on maximizing EBITDA to free cash flow conversion and further strengthen our balance sheet and our belief that we are well-positioned to navigate the current environment. All such forward-looking statements are made pursuant to the ‘safe harbour’ provisions of applicable Canadian securities laws.Unless we indicate otherwise, forward-looking statements in this news release reflect our expectations at the date in this news release. Except as may be required by Canadian securities laws, we do 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 a number of 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 our business outlook, objectives, plans, strategic priorities and other statements that are not historical facts may not be achieved. As a result, we cannot guarantee that any forward-looking statement will materialize. Forward-looking statements are provided in this news release for the purpose of giving information about management’s current expectations and plans and allowing investors and others to get a better understanding of our 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 news release are based on a number of assumptions that we believed were reasonable on the day we made the statements. Some of the assumptions, risks, and other factors that could cause results to differ materially from those expressed in the forward-looking statements contained in this circular are discussed in Section 4 of our current annual information form (AIF) and in the annual management’s discussion and analysis (MD&A), which are available under our profile on sedar (www.sedar.com).We caution readers that the risks described in the AIF and the annual MD&A are not the only risks that could impact the company. We cannot accurately predict the full impact that COVID-19 will have on our business, results of operations, financial condition or the demand for our services, due in part to the uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, the steps our customers may take in current circumstances, including slowing or halting operations, the duration of travel and quarantine restrictions imposed by governments of affected countries and other steps that may be taken by such governments to respond to the pandemic. Additional risks and uncertainties not currently known to us or that are currently deemed to be immaterial may also have a material adverse effect on our business, financial condition, or results of operation.