Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q1 FY2018 Earnings Presentation
23 slides from Blue Bird's earnings presentation, Feb 7, 2018
Slide 1: Fiscal 2018 First Quarter Results Earnings Conference Call
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2018 First Quarter Results Earnings Conference Call February 7, 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: 1Q Overview
1Q Overview Strong 1Q result in softest quarter of the year 1,705 buses sold, 14% above last year; total net sales of $162.5M, up 19% Alternative-fuel powered buses represented 31% of total sales, up from 23% mix last year Adjusted EBITDA of $5.3M, up $2.7 million from last year Net loss o
Slide 5: Significant Operating Achievements
Significant Operating Achievements Quality 1Q Customers Efficiency Capacity 21% Adj. EBITDA Margin Increasing our plant 21% of our customers Transformational Quote activity up 5% footprint with all-new were conquest accounts initiatives kicked off from last year1 paint shop HVIP Voucher provides $22
Slide 6: 1Q Financial Results
1Q Financial Results 1Q Net Sales 1Q Bus Sales $162.5 $148.1 Million Million Up $25.9 Million Up $25.7 Million 1Q Parts Sales 1Q Adj. EBITDA1 $14.5 $5.3 Million Million Up $0.2 Million Up $2.7 Million Strong quarter with net sales up 19%, volume up 14% and Adj. EBITDA up about 2X 1See appendix for a
Slide 7: Alternative-Fuel Leadership
Alternative-Fuel Leadership Alternative-Fuel Powered Bus Sales Highlights Year-to-date orders (bookings and backlog) are 13% higher than same period 4,000+ last year Blue Bird’s extensive, modern range and exclusive partnerships make Blue Bird the brand of choice for alternative-fuel buyers Oppo
Slide 8: Financial Results & Outlook
Phil Tighe CFO FINANCIAL RESULTS & OUTLOOK 8
Slide 9: 1Q Results – Summary
1Q Results – Summary (Millions except Volume, EPS & Margin) 1Q FY2018 1Q FY2017 B/(W) Unit Volume 1,705 1,493 212 Net Revenue $162.5 $136.7 $25.9 Gross Margin 12.7% 13.3% (60) bps. Net loss $(7.8) $(8.5) $0.7 Adj. EBITDA1 $5.3 $2.6 $2.7 Adj. EBITDA Margin 3.3% 1.9% 140 bps. Diluted EPS $(0.36) $(0.4
Slide 10: 1Q FY2017 to FY2018 Adj. EBITDA Walk
1Q FY2017 to FY2018 Adj. EBITDA Walk ($ Millions) Additional 212 units $0.2 $0.2 $5.3 $2.3 $2.6 1Q FY2017 Bus Parts Operating 1Q FY2018 Gross Profit Gross Profit Expenses/Other 1Q profits were ahead of last year and ahead of our internal plan. Volume was the principal driver 1See appendix for additi
Slide 11: FY2018 1Q Free Cash Flow
FY2018 1Q Free Cash Flow ($ Millions) FY2018 FY2017 Adjusted EBITDA $ 5.3 $ 2.6 Cash Paid for Interest (Net) (1.2) (1.9) $ $ Trade Working Capital1 (20.6) (27.5) CAPEX (3.4) (3.0) Cash Taxes (0.0) (0.5) 2 Other (11.9) (4.6) Adjusted Free Cash Flow $(31.8) $(34.9) 3 $ $ Cash Paid for Operational Tran
Slide 12: Improving Net Debt, Leverage & Liquidity
Improving Net Debt, Leverage & Liquidity As of December 31, 2017 ($ Millions) Debt $ 149.4 Cash 23.2 Net Debt $ 126.2 Net Debt / Adjusted EBITDA 1.8x Net Leverage Ratio 1.5X Compared with minimum bank Net Leverage Ratio covenant of 3.75x Liquidity1 $ 90.5 1 Liquidity is defined as cash and cash equi
Slide 13: FY2018 Outlook & Guidance
Phil Horlock President & CEO FY2018 Outlook & Guidance 13
Slide 14: Margin Growth Targeted for FY2018
Margin Growth Targeted for FY2018 School bus market appears to be 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 Focused on transforming our business str
Slide 15: FY2018 Guidance
FY2018 Guidance FY2017 FY2018 Initial FY2018 Revised $ Millions Results Guidance Guidance Net Sales $991 $1,000-1,030 $1,010-1,040 Midpoint: $1,015 Midpoint: $1,025 Adj. EBITDA $69 $78-82 $80-85 Midpoint: $80 Midpoint: $83 Adj. Free Cash Flow1 $44 $36-40 $40-45 Midpoint: $38 Midpoint: $42 See append
Slide 16: 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.