Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q1 FY2017 Earnings Presentation
25 slides from Blue Bird's earnings presentation, Feb 9, 2017
Slide 1: Fiscal 2017 First Quarter Results Earnings Conference Call
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2017 First Quarter Results Earnings Conference Call February 9, 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 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: 1Q Financial Overview
1Q Financial Overview Solid 1Q result in softest quarter of the year Sold 1,493 buses, 6% above prior year, with total net sales up 4% Alternative-fuel bus sales represented 23% of our total bus sales Year-to-date orders of propane-powered buses are up 29% from last year Adjusted EBITDA of
Slide 5: Significant Operating Achievements
Significant Operating Achievements Acquired several new Opened new dealership, Awarded DoE E-Bus grant, Completed three of our customers representing Blanchard, in South worth $4.4M, to develop planned seven Product ~500 bus orders Carolina eight electric buses Immersion Tours Net Sales: $980-1,010M
Slide 6: 1Q Financial Results
1Q Financial Results 1Q Net Sales 1Q Bus Sales $136.7 $122.4 Million Million Up $5.3 Million Up $3.9 Million 1Q Parts Sales 1Q Adj. EBITDA1 $14.3 $2.6 Million Million Up $1.4 Million Down $2.7 Million Net Sales up 4%; Adj. EBITDA lower reflecting timing of customer orders and engineering expenses 1S
Slide 7: Alternative Fuel Leadership
Alternative Fuel Leadership Alternative-Fuel Powered Bus Sales Highlights Blue Bird continues to hold over 80% share of industry’s alternative-fuel registrations since FY20102 3,000+ Year-to-date orders (bookings and backlog) are 75% higher than same period last year Orders in hand account for a
Slide 8: Financial Results & Outlook
Phil Tighe CFO FINANCIAL RESULTS & OUTLOOK 8
Slide 9: 1Q Results – Summary
1Q Results – Summary 1Q FY2017 1Q FY2016 B/(W) ($ Millions except Volume and EPS) Unit Volume 1,493 1,408 85 units Net Revenue $136.7 $131.3 $5.3 Gross Margin 13.3% 14.3% (1.0) pt Net Income/(Loss) 1 $(8.5) $(2.3) $(6.2) Adj. EBITDA2 $2.6 $5.3 $(2.7) Adj. EBITDA Margin 1.9% 4.0% (2.1) pts Diluted EP
Slide 10: 1Q FY2016 to FY2017 Adj. EBITDA Walk
1Q FY2016 to FY2017 Adj. EBITDA Walk ($ Millions) Timing of operating expenses $5.3 $(0.5) $(-) $(2.2) Timing of customer orders $2.6 1Q FY2016 Bus Parts Operating 1Q FY2017 Gross Profit Gross Profit Expenses/Other 1Q profits on Plan – timing of sales and operating expenses results in decline versus
Slide 11: 1Q FY2017 Free Cash Flow
1Q FY2017 Free Cash Flow ($ Millions) FY2017 FY2016 Adjusted EBITDA $ 2.6 $ 5.3 Cash Paid for Interest (Net) $ (1.9) $ (3.5) Trade Working Capital1 (27.5) (33.2) CapEx (3.0) (1.7) Cash Taxes (0.5) (0.2) 2 Other (4.4) (9.9) Adjusted Free Cash Flow $ (34.7) $(43.2) $ $ Cash Paid for Business Combinati
Slide 12: Improving Net Debt, Leverage & Liquidity
Improving Net Debt, Leverage & Liquidity As of December 31, 2016 ($ Millions) Debt $ 156.7 Cash 13.0 Net Debt $143.7 Net Debt / Adjusted EBITDA 2.1x Net Leverage Ratio 1.76X Compared with minimum bank Net Leverage Ratio covenant of 4.0x Liquidity1 $ 82.7 1 Liquidity is defined as cash and cash equiv
Slide 13: FY2017 Outlook & Guidance
Phil Horlock President & CEO FY2017 Outlook & Guidance 13
Slide 14: Continued Growth in FY2017
Continued Growth in FY2017 Projecting full-year industry above FY2016 levels, driven by demand and availability of funds Blue Bird unit sales are on track to grow 6-8%, supported by: Continued industry growth Conquest of major accounts High demand for alternative-fuel powered buses Value
Slide 15: 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 Reaffirming full-year guidance 15
Slide 16: Blue Bird: A heritage of looking ahead
BLUE BIRD A heritage of looking ahead.
Slide 17: Appendix
Appendix BLUE BIRD A heritage of looking ahead.
Slide 18: 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 19: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation 19
Slide 20: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 20
Slide 21: Adj. Income from Cont. Ops. Reconciliation
Adj. Income from Cont. Ops. Reconciliation 21
Slide 22: Adj. Diluted EPS Reconciliation
Adj. Diluted EPS Reconciliation 22
Slide 23: 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 24: 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 25: END
BLUE BIRD A heritage of looking ahead.