Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — FY2016 Earnings Presentation
26 slides from Blue Bird's earnings presentation, Dec 13, 2016
Slide 1: Fiscal 2016 Fourth Quarter & Full-Year Results
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2016 Fourth Quarter & Full-Year Results Earnings Conference Call December 13, 2016
Slide 2: Agenda
Agenda Introductions & Forward-Looking Statements Mark Benfield – Director, Investor Relations Business Overview Phil Horlock – President & CEO Financial Results Phil Tighe – CFO FY2017 Outlook and Guidance Phil Horlock – President & CEO Q&A Group This presentation includes forwa
Slide 3: Business Overview
Phil Horlock President & CEO BUSINESS OVERVIEW 3
Slide 4: Industry Overview
Industry Overview OEMs Thomas Blue Bird IC School Bus Customers ~3,400 Contractors ~10,000 School Districts Safe and reliable transportation for over 26 million students each day 4
Slide 5: FY2016 School Bus Industry Highlights
FY2016 School Bus Industry Highlights FY2016 North American School Bus Industry of 32,700 units was the highest since FY2007 and up 9% versus prior year Sales through dealers were up 12% versus FY2015, while sales to the three major national fleets were down 9% 65% of registrations occurred in
Slide 6: Strong FY2016 Company Performance
Strong FY2016 Company Performance Blue Bird grew market share in FY2016 based on strong performance through our dealers 4Q share was 30%, down about 2 points versus prior year Full Year total share was 31%, up 1 point Full Year Dealer share was 32%, up about 2 points versus prior year Blue
Slide 7: Significant Operating Achievements
Significant Operating Achievements ~4 pts. - Ford/Roush Propane reduction - Cummins V8 - Eaton Procision - Gasoline Engine Focused on customer Expanded dealer service Refinanced existing loan Launched new Gasoline and dealer technician capabilities at lower rates and Bus, V8 Diesel and Eaton trainin
Slide 8: Alternative Fuels Leadership
Alternative Fuels Leadership FY2016 Highlights Alternative Fuel Sales Sold 2,240 propane buses, an increase of 33% versus prior year 106 Blue Bird propane-powered Vision has the 406 highest owner loyalty of any school bus in the market1 Delivered 406 new gasoline powered buses in September Alt
Slide 9: Financial Results & Outlook
Phil Tighe CFO FINANCIAL RESULTS & OUTLOOK 9
Slide 10: FY2016 vs. FY2015 – Financial Summary
FY2016 vs. FY2015 – Financial Summary Sales Volume (Units) Revenue (Mils) 10,616 $932.0 2% FY2016 FY2015 $919.1 1% 10,378 Guidance $930-950 3,768 $323.1 2,132 3,468 $191.2 $307.6 2,993 $262.7 1,824 2,093 3,308 $165.8 $183.0 $286.4 1,408 $131.3 Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q 1 Adj. EBITD
Slide 11: FY2016 vs. FY2015 – Adj. EBITDA
FY2016 vs. FY2015 – Adj. EBITDA In Millions of Dollars FY2016 – 10,616 FY2015 – 10,378 Capacity launch costs, Variance – 238 new products and personnel costs $8.9 $0.1 $69.9 $72.2 $(6.7) Volume and margins FY2015 1 Bus Parts Operating FY2016 1 Adj. EBITDA Gross Profit Gross Profit Expenses/Other Adj
Slide 12: 4Q FY2015 to FY2016 Adj. EBITDA Walk
4Q FY2015 to FY2016 Adj. EBITDA Walk ($ Millions) Capacity launch costs, new product launch and personnel costs $29.0 $(2.3) $(0.2) $24.3 $(2.2) Volume and margins 4Q FY2015 Bus Parts Operating 4Q FY2016 1 Adj. EBITDA Gross Profit Gross Profit Expenses/Other Adj. EBITDA 1 Adj. Income from Adj. Incom
Slide 13: Strong Free Cash Flow
Strong Free Cash Flow 4Q Full Year ($ Millions) FY2016 FY2015 FY2016 FY2015 $ 4.0 $ 55.1 $ 25.3 $ 23.5 Total Cash Provided by Continuing Operations (3.1) (1.8) (9.6) (5.2) Less Cash Paid for Fixed Assets and Acquired Intangibles $ 0.9 $ 53.4 $ 15.7 $ 18.3 Free Cash Flow Business Combination Expenses
Slide 14: Improving Net Debt, Leverage & Liquidity
Improving Net Debt, Leverage & Liquidity As of October 1, 2016 ($ Millions) Debt $ 152.1 Cash 52.3 Net Debt $99.8 Net Debt / Adjusted EBITDA (LTM) 1.4x Net Leverage Ratio 1.7x Compared with minimum bank Net Leverage Ratio covenant of 4.0x Liquidity1 $ 107.2 1 Liquidity is defined as cash and cash eq
Slide 15: Improved Financing
Improved Financing Prior Credit Agreement New Credit Agreement Rate: Rate (Grid Pricing): Term Loan Revolver Total Net Leverage Ratio Eurodollar Loans Less than 2.00x 1.75% LIBOR (Floor 1%) LIBOR Greater than or equal to 2.00x 2.00% and less than 2.50x + + Greater than or equal to 2.50x 2.25% and le
Slide 16: FY2017 Outlook & Guidance
Phil Horlock President & CEO FY2017 Outlook & Guidance 16
Slide 17: Continued Growth in FY2017
Continued Growth in FY2017 Projecting industry of 33,000 units, driven by demand and availability of funds Blue Bird unit sales are projected to grow 6-8%, supported by: Continued industry growth Demand for propane-powered buses Value-oriented product introductions: • Gasoline-powered Visi
Slide 18: FY2017 Guidance
FY2017 Guidance 2017G B/(W) ($ Millions) FY2016 FY2017G 2016 Net Sales $932 $980-1,010 $48-78 Adj. EBITDA $72 $72-76 $0-4 Adj. Free Cash Flow1 $33 $38-42 $5-9 1 Excludes business combination expenses and special compensation payments Continuing to grow sales, profit and cash 18
Slide 19: A heritage of looking ahead
E> .LvE BIRD Aheritage of looking ahead.
Slide 20: Appendix
Appendix E> .LvE BIRD Aheritage of looking ahead.
Slide 21: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation 21
Slide 22: Adj. Income from Cont. Ops. Reconciliation
Adj. Income from Cont. Ops. Reconciliation 22
Slide 23: Adj. Diluted EPS Reconciliation
Adj. Diluted EPS Reconciliation 23
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 Income from Continuing Operations,” “Adjusted Diluted Earnings per Share,” “Free Cash Flow” and “Adjusted Free Cash Flow.” Adjusted EBITDA is define
Slide 26: END
E> .LvE BIRD Aheritage of looking ahead.