Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q2 FY2018 Earnings Presentation
23 slides from Blue Bird's earnings presentation, May 10, 2018
Slide 1: Fiscal 2018 Second Quarter Results Earnings Conference Call
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2018 Second Quarter Results Earnings Conference Call May 10, 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 FY2018 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: 2Q Overview
2Q Overview Strong 2Q unit sales with 2,441 buses sold, 3% above prior year; total net sales of $216.6M, up 4%. Alternative-fuel powered bus sales represented 34% of our total bus sales mix, up from 22% last year; YTD sales up 56% from prior year Adjusted EBITDA of $10.0M, up $1.6M or 19% from
Slide 5: Significant Operating Achievements
Significant Operating Achievements 1H YTD1 2Q Customers Pipeline of Potential Bus ASP Booked & Orders Backlog 20% 3% 6% 3% 3% 6% Bus ASP and total bookings ~20% of our customers Identified potential unit Alternative fuel-powered and order backlog are up were conquest accounts orders up 6% versus thi
Slide 6: 2Q and YTD Financial Results
2Q and YTD Financial Results 2Q Net Sales YTD 2Q Bus Sales YTD Net Sales Bus Sales $216.6 $379.2 $201.8 $349.9 Million Million Million Million Up Up $33.9 $33.7 Up $8.0 Million Million Up $8.0 Million Million 2Q Parts Sales YTD 2Q Adj. EBITDA1 YTD Adj. Parts EBITDA Sales $14.9 $29.3 $10.0 $15.3 Mill
Slide 7: Alternative-Fuel Leadership
Alternative-Fuel Leadership Alternative-Fuel Powered Bus Sales Highlights Year-to-date orders (bookings and backlog) are 7% higher than same period last year 4,000+ Exclusive relationship with Roush CleanTech extended for seven years 3,153 Opportunities Blue Bird’s exclusive Ford/Roush CleanTe
Slide 8: Financial Results & Outlook
Phil Tighe CFO FINANCIAL RESULTS & OUTLOOK 8
Slide 9: 2Q Results – Summary
2Q Results – Summary (Millions except Volume, EPS & Margin) 2Q FY2018 2Q FY2017 B/(W) Unit Volume 2,441 2,367 74 Net Revenue $216.6 $208.7 $8.0 Gross Margin 10.0% 11.8% (180) bps. Net Income $1.8 $2.7 $(0.9) Adj. EBITDA1 $10.0 $8.4 $1.6 Adj. EBITDA Margin 4.6% 4.0% 60 bps. Diluted EPS $0.04 $0.07 $(
Slide 10: 2Q FY2017 to FY2018 Adj. EBITDA Walk
2Q FY2017 to FY2018 Adj. EBITDA Walk ($ Millions) Primarily commodity and fuel cost increases $4.6 $10.0 $8.4 $(2.9) $(0.1) 2Q FY2017 Bus Parts Operating 2Q FY2018 Gross Profit Gross Profit Expenses/Other Aggressive actions to control operating expenses more than offset increases in commodities and
Slide 11: FY2018 2Q Free Cash Flow
FY2018 2Q Free Cash Flow ($ Millions) FY2018 FY2017 Adjusted EBITDA $ 10.0 $ 8.4 Cash Paid for Interest (Net) (1.7) (1.4) Trade Working Capital1 (1.6) 15.3 CAPEX (3.6) (2.2) Cash Taxes (3.6) (0.7) 2 Other 3.8 4.6 Adjusted Free Cash Flow $ 3.3 $24.0 3 Cash Paid for Operational Transformation Initiati
Slide 12: Net Debt, Leverage & Liquidity
Net Debt, Leverage & Liquidity As of March 31, 2018 ($ Millions) Debt $ 147.6 Cash 10.3 Net Debt $ 137.3 Net Debt / Adjusted EBITDA 2.0x Net Leverage Ratio 1.6X Compared with minimum bank Net Leverage Ratio covenant of 3.75x Liquidity1 $ 78.4 1 Liquidity is defined as cash and cash equivalents plus
Slide 13: FY2018 Outlook & Guidance
Phil Horlock President & CEO FY2018 Outlook & Guidance 13
Slide 14: Outlook for FY2018
Outlook for FY2018 School bus market on track for another strong 35,000+ unit industry, possibly 2-3% higher than last year; FY2017 was the second highest industry since 1985 Blue Bird projects sales growth of 3-4% in FY2018 Continued focus on transforming our business structure to drive margi
Slide 15: FY2018 Guidance
FY2018 Guidance FY2017 FY2018 $ Millions Results Guidance Net Sales $991 $1,010-1,040 Midpoint: $1,025 Adj. EBITDA $69 $80-85 Midpoint: $83 Adj. Free Cash Flow $44 $40-45 Midpoint: $42 FY2018 tax rate expected to be 28% - 29% (Federal and State), which will yield ~$5M in cash tax savings Expect
Slide 16: (2) BLUE BIRD.
(2) BLUE BIRD.
Slide 17: Appendix
Appendix (2) BLUE BIRD.
Slide 18: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation 18
Slide 19: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 19
Slide 20: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 20
Slide 21: 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 22: 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 23: END
(2) BLUE BIRD.