Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — FY2018 Earnings Presentation
26 slides from Blue Bird's earnings presentation, Dec 6, 2018
Slide 1: Fiscal 2018 Fourth Quarter and Full Year Results
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2018 Fourth Quarter and Full Year Results Earnings Conference Call December 6, 2018
Slide 2: Agenda
Agenda Introductions & Forward-Looking Statements Mark Benfield – Director, Investor Relations Business Overview Phil Horlock – President & CEO Financial Results Phil Tighe – CFO Outlook and Guidance Phil Horlock – President & CEO Q&A Group This presentation includes forward-look
Slide 3: Business Overview
Phil Horlock President & CEO BUSINESS OVERVIEW 3
Slide 4: Overview
Overview Achieved strong 4Q FY2018 results 3,757 buses sold, up 4% and the highest 4Q sales in more than 10 years Total Net Sales of $331.6M, 6% above last year Adjusted EBITDA of $29.1M, $4.1M or 16% above last year and highest 4Q profit in more than 10 years Adjusted Net Income of $20.1M
Slide 5: Significant Operating Achievements
Significant Operating Achievements Undisputed leader in Obtained 0.02g NOx First major OEM with certification for Propane all-electric buses Quality alternative fuels with Efficiency 70% market share Capacity Adj. EBITDA Margin Only school bus Began customer Achieved key cost savings Alt. fuel-power
Slide 6: Full Year and 4Q Financial Results
Full Year and 4Q Financial Results Bus Sales Total Net Sales Full Year 4Q Full Year 4Q $962.8 $315.2 $1.025 $331.6 Million Million Billion Million Up $32.0 Up $18.0 Up $34.4 Up $18.9 Million Million Million Million Parts Sales Adj. EBITDA1 Full Year 4Q Full Year 4Q $62.2 $16.4 $70.4 $29.1 Million Mi
Slide 7: Alternative-Fuel Leadership
Alternative-Fuel Leadership FY2018 Highlights Alternative-fuel bus sales were 14% higher than 363 New Customers in FY2018 prior year; achieved 70% market share Exclusive relationship with Roush extended until 2025 Achieved certification from EPA and CARB at 0.02g NOx for both propane and CNG i
Slide 8: Financial Results & Outlook
Phil Tighe CFO FINANCIAL RESULTS & OUTLOOK 8
Slide 9: 4Q Results – Summary
4Q Results – Summary ($ Millions except EPS & Margin) 4Q FY2018 4Q FY2017 B/(W) Unit Volume 3,757 3,608 149 Net Revenue $331.6 $312.7 $18.9 Gross Margin 12.9% 12.6% 30 bps. Net Income $14.9 $14.5 $0.4 Adj. Net Income1 $20.1 $15.1 $5.0 Adj. EBITDA1 $29.1 $25.1 $4.1 Adj. EBITDA Margin 8.8% 8.0% 80 bps
Slide 10: Full Year Results – Summary
Full Year Results – Summary ($ Millions except EPS & Margin) FY2018 FY2017 B/(W) Unit Volume 11,649 11,317 332 Net Revenue $1,025.0 $990.6 $34.4 Gross Margin 11.9% 12.9% (100) bps. Net Income $30.8 $28.8 $2.0 Adj. Net Income1 $50.6 $37.1 $13.5 Adj. EBITDA1 $70.4 $68.9 $1.5 Adj. EBITDA Margin 6.9% 7.
Slide 11: 4Q FY2017 to FY2018 Adj. EBITDA Walk
4Q FY2017 to FY2018 Adj. EBITDA Walk ($ Millions) Bus volume up 149 units Transformational cost initiative, efficiencies and Primarily Steel up operating costs 26% an Freight up 21% Volume improvements and significant cost reduction initiatives offset the impact of tariffs on steel and other commodi
Slide 12: FY2017 to FY2018 Adj. EBITDA Walk
FY2017 to FY2018 Adj. EBITDA Walk ($ Millions) Transformational cost initiative, efficiencies and operating costs Bus volume up 332 units, offset by product and Material Economics customer mix largely due to steel & commodities and freight Volume improvements and cost reductions offset the impact of
Slide 13: FY2018 Free Cash Flow
FY2018 Free Cash Flow 4Q Full Year ($ Millions) FY2018 FY2017 FY2018 FY2017 Adjusted EBITDA $ 29.1 $ 25.1 $ 70.4 $ 68.9 Cash Paid for Interest (Net) (1.2) (1.3) (5.8) (6.1) Trade Working Capital1 14.3 26.0 7.0 (3.8) CAPEX (16.5) (2.1) (32.1) (9.3) Cash Taxes — (7.1) (3.7) (8.4) Other2 5.0 0.1 4.4 2.
Slide 14: Improving Net Debt, Leverage & Liquidity
Improving Net Debt, Leverage & Liquidity As of September 29, ($ Millions) 2018 Debt $142.1 Cash 60.3 Net Debt $81.9 Net Debt / Adjusted EBITDA 1.16x Net Leverage Ratio 1.7x Compared with minimum bank Net Leverage Ratio covenant of 4.0x Liquidity1 153.4 1 Liquidity is defined as cash and cash equival
Slide 15: Outlook & Guidance
Phil Horlock President & CEO Outlook & Guidance 15
Slide 16: Outlook for FY2019
Outlook for FY2019 School bus industry of about 35k, supported by continued growth in property taxes and funding from VW settlement Blue Bird expects substantially higher gross profit margins than FY2018 due to: Pricing already implemented in June 2018 which takes full effect in FY2019, offset
Slide 17: FY2019 Full Year Guidance
FY2019 Full Year Guidance FY2018 FY2018 FY2019 FY2019G $ Millions Guidance Actual Guidance B/(W) FY2018 Net Sales $1,010 - $1,020 $1,025 $990 - $1,025 $(35) - $0 Adj. EBITDA1 $70 - $72 $70 80-85 $10 - $15 Adj. Free Cash Flow1 $30 - $34 $40 $24 - $28 $(12) - $(16) FY2019 Guidance range for Adjusted E
Slide 18: (2) BLUE BIRD.
(2) BLUE BIRD.
Slide 19: Appendix
Appendix (2) BLUE BIRD.
Slide 20: FY2018 Alternative-Fuel Bus Sales
FY2018 Alternative-Fuel Bus Sales Expected VW funds in FY2019 delayed orders for propane in FY2018 20
Slide 21: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation Reconciliation of Net Income to Adjusted EBITDA Three Months Ended Fiscal Year Ended (in thousands of dollars) September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Net income $ 14,932 $ 14,544 $ 30,820 $ 28,801 Adjustments: Discontinued operations in
Slide 22: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Reconciliation of Free Cash Flow to Adjusted Free Cash Flow Three Months Ended Fiscal Year Ended (in thousands of dollars) September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Net cash provided by operating activities $ 41,331 $ 41,890 $ 48,353 $
Slide 23: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Reconciliation of Net Income to Adjusted Net Income Three Months Ended Fiscal Year Ended (in thousands of dollars) September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Net income $ 14,932 $ 14,544 $ 30,820 $ 28,801 Adjustments, net of tax benefit or
Slide 24: 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 25: Important Disclaimers
Important Disclaimers Non-GAAP Financial Measures This presentation may include the following non-GAAP financial measures: “Adjusted EBITDA,” "Adjusted EBITDA Margin," “Adjusted Net Income,” “Adjusted Diluted Earnings per Share,” “Free Cash Flow” and “Adjusted Free Cash Flow.” Adjusted EBITDA is def
Slide 26: END
(2) BLUE BIRD.