Finning Provides a Corporate Update
VANCOUVER, British Columbia, April 17, 2020 (GLOBE NEWSWIRE) -- Finning International Inc. (TSX: FTT) (“Finning” or the “Company” or “we”, “our” or “us”) announces an update on its COVID-19
response and financial flexibility.
We continue to adapt to the impacts of COVID-19 on our business, with the health and safety of our employees, customers and communities as our highest priority. Our operations have been deemed essential services in all regions and remain open, except for five branches in South America that are currently closed in compliance with local quarantine restrictions. Operations currently closed in South America represent approximately 5% of South America’s 2019 consolidated revenues. Operations continue at all producing oil sands mines in Canada and copper mines in Chile; however many of our customers have announced reductions in capital spending and operational updates with a range of impacts on activity levels. Our global supply chain continues to function well, with minimal disruptions to date.
We are proactively working with our Board and salaried and hourly employees, as well as our union partners and government programs, to manage our costs in line with expected changes in business activity levels in each region. This includes Board and employee pay reductions, reduced work schedules, furlough, as well as workforce reductions in some areas. Our goal is to maximize flexibility and preserve our critical talent and capabilities through this disruptive period.
The strength and resilience of our business model has helped us to secure an additional $500 million committed revolving credit facility, which further improves our financial flexibility and liquidity. This facility has a term of two years, can be used for general corporate purposes, and has substantially the same terms and conditions as our existing $1.3 billion committed global credit facility, which matures in 2024. Due to strong working capital management, our cash usage in Q1 2020 was modest in what is typically a seasonally high cash usage quarter. At March 31, 2020, we had less than $300 million drawn on our $1.3 billion global credit facility and we now have more than $1.5 billion of remaining committed capacity.