Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q3 FY2016 Earnings Presentation
27 slides from Blue Bird's earnings presentation, Aug 4, 2016
Slide 1: Fiscal 2016 Third Quarter Results Earnings Conference Call
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2016 Third Quarter Results Earnings Conference Call August 4, 2016
Slide 2: Agenda
Agenda Introductions & Forward-Looking Statements Mark Benfield – Manager, Investor Relations Business Overview Phil Horlock – President & CEO Financial Results Phil Tighe – CFO Wrap-Up Phil Horlock – President & CEO Q&A Group This presentation includes forward-looking statements
Slide 3: Business Overview
Phil Horlock President & CEO BUSINESS OVERVIEW 3
Slide 4: Strong 3Q Results
Strong 3Q Results Sold 3,768 buses, 26% above prior year, with net sales up 23% Achieved peak daily production of 70 buses on two shifts Attained propane-bus mix of 24%, 8 points above last year; YTD sales up 70% Commenced ordering for all-new V8 Diesel and Gasoline-powered buses Reported
Slide 5: Significant 3Q Operating Achievements
Significant 3Q Operating Achievements - Ford/Roush Propane - Cummins V8 - Eaton Procision Trained almost 200 Expanding dealer service Quote volume remains up Launched new GEN IV customer and dealer capabilities; e.g. Canyon 38% YoY Propane, V8 Diesel and technicians State Bus Sales Eaton Transmissio
Slide 6: 3Q Financial Results Up from Prior Year
3Q Financial Results Up from Prior Year 3Q Net Sales YTD 3Q Bus Sales YTD Net Sales Bus Sales $323.1 $645.6 $309.5 $604.8 Million Million Million Million Up Up $34.1 $35.1 Million Million Up $60.4 Million Up $60.9 Million 3Q Parts Sales YTD 3Q Adj. EBITDA YTD Adj. Parts EBITDA Sales $13.6 $40.8 $32.
Slide 7: Continued Propane Momentum
Continued Propane Momentum YTD Propane Units Sold Propane Market Leadership 26% growth in new customers YTD compared with last year 1,547 10x more propane-powered buses registered than other manufacturers1 Up 70% Blue Bird propane-powered Vision has the highest owner loyalty of any school bus
Slide 8: Financial Results & Outlook
Phil Tighe CFO FINANCIAL RESULTS & OUTLOOK 8
Slide 9: 3Q Results Exceed Prior Year
3Q Results Exceed Prior Year ($ Millions except EPS and Volume) 3Q 2016 3Q 2015 B/(W) Unit Volume 3,768 2,993 775 units Revenue $323.1 $262.7 $60.4 Gross Margin 14.5% 14.0% 0.5 pts. Adj. EBITDA1 $32.5 $23.4 $9.1 EBITDA Margin 10.1% 8.9% 1.2 pts. Net Income (Loss) $(1.8) $10.7 $(12.5) Adj. Net Income
Slide 10: FY2016 Key Trends
FY2016 Key Trends Unit Volume ($ Millions) Revenue 3,768 $323.1 2,132 $191.2 $131.3 1,408 1Q 2Q 3Q 1Q 2Q 3Q 1 2 ($ Millions) Adj. EBITDA ($ Millions) Net Income (Loss) Adj. NI $16.2 $32.5 $1.4 $10.1 1Q 2Q 3Q $5.3 ($1.8) 1Q 2Q 3Q ($2.3) Strong 3Q demonstrates seasonality of our business 1 See appendi
Slide 11: 3Q 2015 to 2016 Adj. EBITDA Walk
3Q 2015 to 2016 Adj. EBITDA Walk ($ Millions) $7.5 $9.1 $32.5 $(7.5) $23.4 3Q FY2015 1 Volume & Cost Customer Mix / 3Q FY2016 1 Adj. EBITDA Product Mix Reductions Other Adj. EBITDA Adj. Net Income1 Adj. Net Income1 $11.7 $16.2 Strong volume and cost reduction activity more than offset mix pressures
Slide 12: Strong Free Cash Flow
Strong Free Cash Flow 3Q 3Q YTD ($ Millions) FY2016 FY2015 FY2016 FY2015 Adjusted EBITDA1 $ 32.5 $ 23.4 $ 47.8 $ 40.9 Cash Paid for Interest (Net) (2.4) (3.9) (9.5) (16.3) Trade Working Capital2 9.4 (15.1) (7.9) (23.9) CAPEX (2.6) (1.6) (6.5) (3.4) Cash Taxes (0.3) (0.0) (1.1) (0.4) Other3 11.4 5.4
Slide 13: Improving Net Debt, Leverage & Liquidity
Improving Net Debt, Leverage & Liquidity As of July 2, 2016 ($ Millions) Debt $ 154.3 Cash 42.7 Net Debt $111.6 Net Debt / Adjusted EBITDA (LTM) 2.0x Net Leverage Ratio 1.7x Compared with minimum bank Net Leverage Ratio covenant of 4.5x Liquidity1 $ 97.6 1 Liquidity is defined as cash and cash equiv
Slide 14: Closing and Q&A
Phil Horlock President & CEO CLOSING AND Q&A 14
Slide 15: Slightly Lower Full Year Volume Outlook
Slightly Lower Full Year Volume Outlook Later-than-expected certification by CARB/EPA of gasoline bus Shipping likely in September rather than July has impacted planned orders, although we are still waiting on CARB/EPA certification Strong gasoline engine interest and significant orders for Se
Slide 16: Financial Guidance
Financial Guidance Present Revised Metric FY2016 FY2016 Guidance Guidance ($ Millions) Net Sales $960-$985 $930-$950 Adj. EBITDA $72-$75 $70-$72 Free Cash Flow $30-35 $30-35 Delay in gasoline engine certification drives minor revision to guidance 16
Slide 17: Wrap-Up
Wrap-Up Strong Third Quarter financial results and operating achievements Successfully shifted volume to Second Half supported by new second shift Strong propane momentum; Full Year growth should be over 25% Great interest in new gasoline-powered Vision bus and strong orders, but impacted by
Slide 18: Blue Bird: A heritage of looking ahead
E> .LUvE BIRD A heritage of looking ahead.
Slide 19: Appendix
Appendix E> .LUvE BIRD A heritage of looking ahead.
Slide 20: 3Q Adjusted EBITDA Reconciliation
3Q Adjusted EBITDA Reconciliation 20
Slide 21: 3QYTD Adjusted EBITDA Reconciliation
3QYTD Adjusted EBITDA Reconciliation 21
Slide 22: Free Cash Flow Reconciliations
Free Cash Flow Reconciliations 22
Slide 23: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation 23
Slide 24: Adjusted Diluted EPS Reconciliation
Adjusted 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 Net Income,” “Adjusted Diluted Earnings per Share,” “Free Cash Flow” and “Adjusted Free Cash Flow.” Adjusted EBITDA is defined as income from contin
Slide 27: END
E> .LUvE BIRD A heritage of looking ahead.