Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — FY2015 Earnings Presentation
43 slides from Blue Bird's earnings presentation, Dec 15, 2015
Slide 1: Fiscal 2015 Fourth Quarter & Full-Year Results
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2015 Fourth Quarter & Full-Year Results Earnings Conference Call December 15, 2015
Slide 2: Agenda
Agenda Introductions & Forward-Looking Statements Jeff Merten – Director, Investor Relations Business Overview Phil Horlock – President & CEO Financial Results Phil Tighe – CFO FY2016 Outlook & Wrap-Up Phil Horlock – President & CEO Q&A Group This presentation includes forward-lo
Slide 3: Business Overview
Phil Horlock President & CEO BUSINESS OVERVIEW 3
Slide 4: FY2015 Summary
FY2015 Summary Great Year at Blue Bird! Became public and started trading as BLBD on Nasdaq on February 25 Stock price outperformed peers and Russell 3000 Index Grew bus unit sales faster than the overall market Delivered solid top-line and bottom-line growth in line with guidance Increase
Slide 5: FY2015 4Q Financial Results
FY2015 4Q Financial Results ($ millions) Fiscal Year 2015 4Q Status 4Q Forecast vs. Actual (3Q Earnings Call) Forecast Net Sales $308 $306-328 Achieved Adjusted EBITDA1(excluding ongoing public-company costs as specified in guidance) $30 $29-32 Achieved Free Cash Flow2 $53 $44-49 Exceeded 1 Consiste
Slide 6: FY2015 4Q Highlights
FY2015 4Q Highlights Sold 3,468 buses in 4Q, up 13% from a year ago Best 4Q volume since FY2008 Total net sales revenue up 12% from 4Q 2014 Bus net sales revenue up 13% Parts net sales revenue up 5% Adjusted EBITDA, including ongoing public-company expenses, was $29 million in 4Q, up $10
Slide 7: Full-Year Financial Results vs. Guidance
Full-Year Financial Results vs. Guidance ($ millions) Fiscal Year 2015 Status Full Year Full Year Guidance vs. Actual Guidance Guidance Net Sales $919 $918-940 Achieved Adj. EBITDA1 (excluding ongoing public-company costs as specified in guidance) $73 $72-75 Achieved Adj. Free Cash Flow2 $45 $35-40
Slide 8: Full-Year Highlights
Full-Year Highlights School bus industry of ~29,900 units1, up about 5% versus last year Industry remains below the long-term average of ~30,500 units annually Blue Bird sold 10,378 buses in FY2015, up 8% from a year ago Propane-powered bus unit sales up 14% versus last year Full Year net
Slide 9: Full-Year Highlights (continued)
Full-Year Highlights (continued) Net Income was $15 million and Adjusted Net Income was $28 million1 Diluted EPS was $0.59 and Adjusted Diluted EPS was $1.111 Achieved Adjusted Free Cash Flow of $45 million1 FY2015 investments in new products will support ongoing sales growth by enhancing cu
Slide 10: Continued Propane Momentum
Continued Propane Momentum Propane Market Leadership Propane Sales Propane Customers 14% unit volume growth over prior year +14% 1,688 33% increase in propane customers over prior year 1,476 478 6x more propane-powered buses +33% registered than other manufacturers1 Highest owner loyalty pro
Slide 11: New Products: Innovation Leadership – Gasoline-Powered Vision
New Products: Innovation Leadership New Gasoline-Powered Vision Blue Bird is the only major manufacturer to offer a Type C gasoline-powered school bus Lower acquisition cost than other fuel types Maintenance and service is simpler for technicians Strong cold-weather starting capability Uti
Slide 12: New Products: Innovation Leadership – CNG-Powered Vision
New Products: Innovation Leadership New CNG-Powered Vision Lower acquisition cost than Type D CNG-powered school bus Lower fuel and maintenance cost than diesel with better emissions performance Utilizes Ford’s modern and highly efficient 6.8L V10 engine with a 5- year/unlimited mileage warran
Slide 13: New Products: Innovation Leadership – V8 Diesel Vision
New Products: Innovation Leadership New V8 Diesel-Powered Vision Blue Bird is the only manufacturer to offer the Cummins ISV 5.0L V8 diesel in a school bus Lower acquisition cost than other diesel offerings Improved fuel economy in urban environments New standard for being the quietest diese
Slide 14: New Products: Eaton Procision Transmission
New Products: Innovation Leadership New Eaton Procision Transmission First dual-clutch, seven-speed automatic transmission available for school buses in North America Electronic shifting provides optimal fuel efficiency and smooth, continuous delivery of torque Efficiently accelerates and opti
Slide 15: Type C/D Bus Pricing Ladder
Type C/D Bus Pricing Ladder Type D Rear Engine Alternative Fuel Type D Rear Engine Cummins ISL-G CNG Traditional Type C Cummins ISB/ISL Diesel Alternative Fuel Type D Front Engine Ford/ROUSH CNG Traditional Type C Cummins ISB Diesel Alternative Fuel Type C Ford/ROUSH Propane Traditional Type C Cummi
Slide 16: Financial Results
Phil Tighe CFO FINANCIAL RESULTS 16
Slide 17: FY2015 Financial Summary
FY2015 Financial Summary Sales Volume (Units) Revenue (Mils) FY2015 $919 Consistent with guidance 10,378 8% FY2014 $856 7% 9,604 3,468 $308 2,993 $263 1,824 3,066 $166 $240 $274 2,770 2,223 $196 1,545 $146 2,093 $183 Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Adj. EBITDA (Mils) Adj. EBITDA as % of
Slide 18: 4Q 2014 to 2015 Adj. EBITDA Walk
4Q 2014 to 2015 Adj. EBITDA Walk ($ millions) $3 $29 $6 $(1) $2 $19 4Q FY2014 Cost Reductions Volume & Mix Ongoing Public Growth 4Q FY2015 Adj. EBITDA Company Cost Initiatives / Other Adj. EBITDA Net Loss Net Income $(1) $16 Achieved profit required to support guidance Note: See page 37 for addition
Slide 19: 2014 to 2015 Adj. EBITDA Walk
2014 to 2015 Adj. EBITDA Walk ($ millions) Memo: Adj. EBITDA excluding public company costs in line with Guidance: $73 $3 $4 $70 $67 $(3) $(1) FY2014 Cost Reductions Volume & Mix Ongoing Public Growth FY2015 Adj. EBITDA Company Cost Initiatives / Other Adj. EBITDA Net Income Net Income $3 $15 Achiev
Slide 20: Free Cash Flow History
Free Cash Flow History 1 ($ millions) Free Cash Flow Adjustment for Business Combination Expenses Adjustment for Special Compensation Payment $59 $45 $25 2 $14 $31 $2 $13 $31 $32 $18 FY2013 FY2014 FY2015 Memo: Adj. EBITDA $50 $67 $70 Generated $135 million in Adj. Free Cash Flow over the past 3 year
Slide 21: Net Debt, Leverage & Liquidity
Net Debt, Leverage & Liquidity ($ millions) As of October 3, 2015 Debt $ 188 Cash 53 Net Debt $ 135 Net Debt / Adjusted EBITDA (LTM) 1.9x Net Leverage Ratio (Blue Bird bank covenant calculation of 2.3x 2.3x compared to minimum bank Net Leverage Ratio covenant of 4.5x) Liquidity1 $ 108 Exceeding debt
Slide 22: FY2016 Outlook & Wrap-Up
Phil Horlock President & CEO FY2016 Outlook & Wrap-Up 22
Slide 23: FY2016 Outlook
FY2016 Outlook Industry outlook for new school buses is solid Projecting an overall school bus industry of 31,000 units, up ~4% versus last year Blue Bird bus unit sales are projected to be up about 4-6% Driven by the ongoing growth in propane and the introduction of new products Fiscal ye
Slide 24: Historical Seasonality
Historical Seasonality Blue Bird Bus Unit Sales Industry New Bus Registrations Based on 3-Year Average FY2014 FY2015 FY2012-FY2014* 61-62% 67% 6,461 5,836 38-39% 3,768 3,917 33% Oct. - Mar. Apr. - Sep. Oct. - Mar. Apr. - Sep. (First Half) (Second Half) (First Half) (Second Half) * RL Polk registrati
Slide 25: FY2016 Seasonality More Pronounced
FY2016 Seasonality More Pronounced Second Shift Impact Blue Bird plans to begin ramping up a second-shift in late January to support unit volume growth Enables shipments to align more closely with natural customer demand patterns later in the year First Quarter unit volume will be lower as shi
Slide 26: FY2016 Financial Guidance
FY2016 Financial Guidance ($ millions) FY2015 FY2016 Guidance Actual Guidance Net Sales $919 $960-985 Adjusted EBITDA1 (including ongoing public company costs) $70 $72-75 Adjusted Free Cash Flow2 $45 $30-35 1 Adjusted EBITDA guidance for FY2016 includes ongoing public company costs, which were $2.9
Slide 27: Wrap-Up
Wrap-Up Delivered on our FY2015 guidance targets in our first year as a public company Industry seasonality is intensifying First Half unit volume is expected to be flat Begin ramping up a second shift starting in late January to ensure we have capacity for higher demand in the Second Half
Slide 28: A heritage of looking ahead.
E> .LUvE BIRD A heritage of looking ahead.
Slide 29: Appendix
Appendix E> .LUvE BIRD A heritage of looking ahead.
Slide 30: Free Cash Flow
Free Cash Flow Fiscal Year 2015 ($ Millions) 4Q Full Year Adjusted EBITDA1 $ 29.0 $ 69.8 $ $ 2 Cash Paid for Interest (Net) (3.8) (20.1) Trade Working Capital3 40.5 16.7 CAPEX (1.8) (5.2) Cash Taxes (6.8) (7.1) Other (3.8) (9.4) Adjusted Free Cash Flow $ $ 53.4 $ $ 44.6 Cash Paid for Special Compens
Slide 31: Free Cash Flow
Free Cash Flow Fiscal Years ($ Millions) 2013 2014 2015 Adjusted EBITDA1 $ 50.2 $ 66.8 $ 69.8 $ $ 2 Cash Paid for Interest (Net) (0.8) (1.5) (20.1) Trade Working Capital3 (4.5) 1.7 16.7 CAPEX (4.9) (5.5) (5.2) Cash Taxes (0.1) (1.4) (7.1) Other (8.7) (1.1) (9.4) Adjusted Free Cash Flow $ 31.0 $ $ 58
Slide 32: Balance Sheet
Balance Sheet BLUE BIRD CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousand: except for share data) Asof October 3,2015 As of September 27, 2014 Assets: Current assets Cash and cash equivalents $ 52861 $ 61,137 Accounts receivable, net 13,746 21.215 Inventories 49,180 71,300 Other
Slide 33: Full-Year Income Statement
Full-Year Income Statement 33
Slide 34: 4Q Income Statement
4Q Income Statement BLUE BIRD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOS (in thousands of dollars) Total revenue Gross profit Operating profit Income (loss) from continuing operation Income (loss) from discontinued operations, net of ta
Slide 35: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows 35
Slide 36: Cash Flow Reconciliations
Cash Flow Reconciliations The following table sets forth the reconciliations of both Free Cash Flow and Adjusted Free Cash Flow for fiscal years 2013, 2014 and 2015: Memo: (in thousands of dollars) 2015 2014 2013 4Q2015 Net cash provided by continuing operations $ 23,495 $ 37,412 $ 35,981 $ 55,129 C
Slide 37: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 37
Slide 38: Net Income to Adjusted Net Income
Net Income to Adjusted Net Income 38
Slide 39: Adjusted Non-GAAP Diluted EPS
Adjusted Non-GAAP Diluted EPS 39
Slide 40: Segment Revenue and Gross Profit
Segment Revenue and Gross Profit 40
Slide 41: 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 42: Important Disclaimers
Important Disclaimers Non-GAAP Financial Measures This presentation includes 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 net income prior to i
Slide 43: END
E> .LUvE BIRD A heritage of looking ahead.