Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — FY2017 Earnings Presentation
27 slides from Blue Bird's earnings presentation, Dec 6, 2017
Slide 1: Fiscal 2017 Fourth Quarter & Full Year Results
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2017 Fourth Quarter & Full Year Results Earnings Conference Call December 6, 2017
Slide 2: Agenda
Agenda Introductions & Forward-Looking Statements Mark Benfield – Director, Investor Relations Business Overview Phil Horlock – President & CEO Financial Results Phil Tighe – CFO FY2018 Outlook and Guidance Phil Horlock – President & CEO Q&A This presentation includes forward-looki
Slide 3: Business Overview
Phil Horlock President & CEO BUSINESS OVERVIEW 3
Slide 4: Overview
Overview Achieved strong 4Q results 3,608 buses sold, 9% above last year; total net sales of $313M, up 9% Adjusted EBITDA of $25.1M, up $0.8 million from last year Net income of $14.5M, $3.8M above last year FY2017 results were equal to or better than guidance, with Net Sales of $991M, Adj
Slide 5: Significant Operating Achievements
Significant Operating Achievements Sold 11,317 buses Achieved d propane CARB 73% above FY2011 industry trough 504 Certification for 0.05g/bhp-hr NOx Highest sales volume since Alternative fuel-powered 504 customers made their 4x cleaner 2002; 73% above FY2011 bus sales up 41% than competitors’ first
Slide 6: FY2017 Sales & Financial Results
FY2017 Sales & Financial Results Net Sales 4Q Bus Sales 4Q Net Sales Bus Sales $990.6 $930.7 Million $312.7 Million $297.2 Million Million Up $26.3 Up $26M Up $58.6 Million Up $54.7 Million Parts Sales 4Q Parts Adj. EBITDA1 4Q Adj. Sales EBITDA $59.9 $15.4 $68.9 $25.1 Million Million Million Million
Slide 7: Alternative-Fuel Leadership
Alternative-Fuel Leadership FY2017 Alternative-Fuel Bus Sales FY2017 Highlights Sold 3,888 alternative fuel buses; 34% mix Ford/Roush partnership provides three distinct fuel types from the same engine/transmission combination Blue Bird propane-powered Vision has the Gasoline highest owner loy
Slide 8: Financial Results & Outlook
Phil Tighe CFO FINANCIAL RESULTS & OUTLOOK 8
Slide 9: 4Q Results – Summary
4Q Results – Summary (Millions except Volume, EPS & Margin) 4Q FY2017 4Q FY2016 B/(W) Unit Volume 3,608 3,308 300 units Net Revenue $312.7 $286.4 $26.3 Gross Margin 12.6% 13.5% (0.9) pts. Net Income $14.5 $10.8 $3.8 Adj. EBITDA1 $25.1 $24.3 $0.8 Adj. EBITDA Margin 8.0% 8.5% (0.5) pts. Diluted EPS $0
Slide 10: Full Year Results – Summary
Full Year Results – Summary (Millions except Volume, EPS & Margin) FY2017 FY2016 B/(W) Unit Volume 11,317 10,616 701 units Net Revenue $990.6 $932.0 $58.6 Gross Margin 12.9% 13.9% (1.0) pts. Net Income $28.8 $6.9 $21.9 Adj. EBITDA1 $68.9 $72.2 $(3.3) Adj. EBITDA Margin 7.0% 7.7% (0.7) pts. Diluted E
Slide 11: 4Q FY2016 to FY2017 Adj. EBITDA Walk
4Q FY2016 to FY2017 Adj. EBITDA Walk ($ Millions) $24.3 $1.1 $- $25.1 $(0.3) 4Q FY2016 Bus Parts Operating 4Q FY2017 Adj. EBITDA Gross Profit Gross Profit Expenses/Other Adj. EBITDA Higher volumes drove 4Q profits Note: See appendix for additional detail regarding non-GAAP measures 11
Slide 12: FY2016 to FY2017 Adj. EBITDA Walk
FY2016 to FY2017 Adj. EBITDA Walk ($ Millions) $72.2 $68.9 $(1.8) $(0.2) $(1.3) Bus volume + Product Spending - Mix - Growth Support - Economics - Economics - Efficiencies - JV Income + FY2016 Bus Parts Operating FY2017 Adj. EBITDA Gross Profit Gross Profit Expenses/Other Adj. EBITDA Reduction in gr
Slide 13: Free Cash Flow
Free Cash Flow 4Q Full Year ($ Millions) FY2017 FY2016 FY2017 FY2016 Adjusted EBITDA $25.1 $24.3 $ 68.9 $ 72.2 Cash Paid for Interest (Net) (1.3) (3.9) (6.1) (13.3) Trade Working Capital1 26.0 (4.1) (3.8) (12.0) CAPEX (2.1) (3.1) (9.3) (9.6) Cash Taxes (7.1) 0.9 (8.4) (0.2) Other2 0.1 (11.6) 2.4 (3.
Slide 14: Improving Net Debt, Leverage & Liquidity
Improving Net Debt, Leverage & Liquidity As of Sept 30, 2017 ($ Millions except for ratios) Debt $ 151.2 Cash 62.6 Net Debt $ 88.6 Net Debt / Adjusted EBITDA TTM 1.3x Net Leverage Ratio 1.6X Compared with minimum bank Net Leverage Ratio covenant of 4.0x Liquidity1 $ 130.6 1 Liquidity is defined as c
Slide 15: Share Repurchase Program – Update
Share Repurchase Program – Update The Board approved a share repurchase program of up to $50M The Company paid $34.3 million in FY2017 to repurchase capital stock: 868,952 common shares - $16.1 million 512,000 warrants - $1.8 million 100,000 preferred shares - $16.4 million Expect to com
Slide 16: FY2018 Outlook & Guidance
Phil Horlock President & CEO FY2018 Outlook & Guidance 16
Slide 17: Margin Growth Targeted for FY2018
Margin Growth Targeted for FY2018 Projecting school bus industry at about the same level as FY2017 or slightly higher Blue Bird is forecasting modest sales growth of 1-2% in FY2018; focus is on transforming our business structure to drive margin improvement Implementing significant investment
Slide 18: FY2018 Guidance
FY2018 Guidance FY2017 FY2018 2018G B/(W) $ Millions Results Guidance 2017 Net Sales $991 $1,000-1,030 $9-39 Midpoint: $1,015 Adj. EBITDA $69 $78-82 $9-13 Midpoint: $80 Adj. Free Cash Flow1 $44 $36-40 $(8)-(4) Midpoint: $38 1 Excludes business combination expenses and product redesign initiatives St
Slide 19: 2) BLUE BIRD.
2) BLUE BIRD.
Slide 20: Appendix
Appendix 2) BLUE BIRD.
Slide 21: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation 21
Slide 22: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 22
Slide 23: Adj. Income from Cont. Ops. Reconciliation
Adj. Income from Cont. Ops. Reconciliation 23
Slide 24: Adj. Diluted EPS Reconciliation
Adj. Diluted EPS Reconciliation 24
Slide 25: Important Disclaimers
Important Disclaimers Forward Looking Statements This presentation includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations for future financial performance,
Slide 26: Important Disclaimers
Important Disclaimers Non-GAAP Financial Measures This presentation may include the following non-GAAP financial measures: “Adjusted EBITDA,” “Adjusted Income from Continuing Operations,” “Adjusted Diluted Earnings per Share,” “Free Cash Flow” and “Adjusted Free Cash Flow.” Adjusted EBITDA is define
Slide 27: END
2) BLUE BIRD.