Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q3 FY2015 Earnings Presentation
31 slides from Blue Bird's earnings presentation, Aug 18, 2015
Slide 1: 2015 Fiscal Third Quarter Results Earnings Conference Call
Blue Bird Corporation (Nasdaq: BLBD) 2015 Fiscal Third Quarter Results Earnings Conference Call August 18, 2015
Slide 2: Agenda
Agenda Introductions & Forward-Looking Statements Jeff Merten – Director, Investor Relations Business Overview Phil Horlock – President & CEO Financial Results Phil Tighe – CFO Closing and Q&A This presentation includes forward-looking statements, including statements regarding full-ye
Slide 3: Business Overview
Phil Horlock President & CEO BUSINESS OVERVIEW 3
Slide 4: Highlights
Highlights Sold 2,993 buses in 3Q, up 8% from a year ago. Sales for the first nine months were up 6% Total net sales revenue up 9% from 3Q 2014 with Bus net sales up 10% Fourth consecutive year of growth for the first nine months of the year Strong 3Q Adjusted EBITDA of $23 million, 8.7% of
Slide 5: Propane – Positive Press & Product Innovations
Propane – Positive Press & Product Innovations “Broward County saves “DeKalb County adds environmentally-friendly over $600,000 with Blue propane school buses” Bird propane-powered Propane is much cheaper (than diesel), at 89 cents a buses” gallon School Transportation News The district has 60 b
Slide 6: New Products – Innovation Leadership
New Products – Innovation Leadership New Gasoline-Powered Bus Blue Bird is the only major manufacturer to offer a Type C gasoline-powered school bus Lower acquisition price than other fuel types Maintenance and service is simpler for technicians Utilizes Ford’s modern and highly efficient 6.
Slide 7: 4Q Outlook Supports Full-Year Guidance
4Q Outlook Supports Full-Year Guidance Bus Unit Sales Strong 4Q bus sales forecast 2014 2015 is fully supported by firm orders Up 6% Projected 4Q margins are higher than the first nine months based on units Up 10+% already shipped and orders in hand 1st 9 Months 4Q Actual Forecast Anticipating a
Slide 8: Financial Results
Phil Tighe CFO FINANCIAL RESULTS 8
Slide 9: Financial Overview
Financial Overview 3Q Bus Volume 3Q Net Sales 3Q Adj. EBITDA 2,993 $262.7 $22.9 Units Million Million Up 223 Units Up $22.3 Million Down $(0.5) Million FYTD Bus Volume FYTD Net Sales FYTD Adj. EBITDA 6,910 $611.5 $40.5 Units Million Million Up 372 Units Up $29.5 Million Down $(7.3) Million 3Q sales
Slide 10: Sales Overview
Sales Overview 3Q Bus Sales 3Q Parts Sales $248.5 $14.2 Million Million Up 10% Flat FYTD Bus Sales FYTD Parts Sales $569.7 $41.8 Million Million Up 5% Up 7% Bus sales up by 10% reflecting strong demand in 3Q Parts sales flat – equal to high levels achieved last year Note: Percentages reflect year-ov
Slide 11: 3Q 2014 to 2015 Adj. EBITDA Walk
3Q 2014 to 2015 Adj. EBITDA Walk ($ millions) $23.4 $22.9 $1.2 Ongoing Public $0.3 Company Cost Growth/Other 3Q 2014 Cost Volume & Mix $(0.6) 3Q 2015 Adj. EBITDA Reductions $(1.4) Adj. EBITDA Net loss from Net income from continuing ops. continuing ops. $(7.9) $10.7 Strong 3Q profits of $23 million,
Slide 12: FYTD 2014 to 2015 Adj. EBITDA Walk
FYTD 2014 to 2015 Adj. EBITDA Walk ($ millions) $47.8 $40.5 Ongoing Public Growth $1.7 Volume & Mix Company Cost Initiatives/Other FYTD 2014 Cost $(1.2) FYTD 2015 Adj. EBITDA Reductions $(2.8) Adj. EBITDA $(5.0) Net income from Net loss from continuing ops. continuing ops. $3.8 $(1.0) FYTD results a
Slide 13: Free Cash Flow
Free Cash Flow ($ millions) Three Months Ended Nine Month Ended July 4, 2015 July 4, 2015 Adjusted EBITDA1 $ 22.9 $ 40.5 Cash Paid for Interest (Net) 2 (4.1) (16.0) Trade Working Capital3 (15.1) (23.5) CAPEX (1.6) (3.4) Cash Taxes - (0.4) Other 6.0 (6.0) Adjusted Free Cash Flow $ 8.1 $ (8.8) Cash Pa
Slide 14: Net Debt, Leverage & Liquidity
Net Debt, Leverage & Liquidity ($ millions) As of July 4, 2015 Cash $ 27.8 Gross Debt 215.9 Net Debt $ 188.1 Net Debt / Adj. EBITDA (LTM) 3.2x Net Leverage Ratio 3.1x New Micro Bird T-Series Liquidity1 $ 82.7 Memo: Net Leverage Ratio Covenant 4.75x 1 Liquidity is defined as cash and cash equivalents
Slide 15: Closing and Q&A
Phil Horlock President & CEO CLOSING AND Q&A 15
Slide 16: Reaffirming Net Sales & Adj. EBITDA Guidance
Reaffirming Net Sales & Adj. EBITDA Guidance ($ millions) FYTD 4Q Full Year Guidance Actual Forecast Fiscal 2015 Net Sales $612 $306-328 $918-940 Adjusted EBITDA1 $40 $32-35 $72-75 Memo: Forecast Adj. Free Cash Flow2 $(9) $44-49 $35-40 1 Consistent with the information provided in our proxy statemen
Slide 17: Wrap Up
Wrap Up Strong 3Q sales and Adjusted EBITDA Propane-powered buses continue to grow at double-digit rates as we win new accounts and existing customers buy more Innovating with differentiated new products that customers want and value that will drive growth, like the new gasoline-powered Vision
Slide 18: Blue Bird – A heritage of looking ahead
E> .LUvE BIRD A heritage of looking ahead.
Slide 19: Appendix
Appendix E> .LUvE BIRD A heritage of looking ahead.
Slide 20: School Bus Business is Highly Seasonal
School Bus Business is Highly Seasonal Timing of sales influenced R.L. Polk Unit by school start Registration Seasonality Based on 3-Year Average FY2012-FY2014 Company sales influenced 67% by registration pattern Customer order timing and mix varies from quarter to 33% quarter each year Impo
Slide 21: Balance Sheet
Balance Sheet (@ thousands except for share data) presen sock 8.0001 par valu, 10,000,000 stares suteoxiand, 500,000 lagudanon preference Series A issued at July 4, 2015 and ‘Common stock, $0.0001 par value, 100,000,000 $00,000 rosie and oustanaing at fly #2018 aad Seprenber37 5014 * 204,177 $ 21118
Slide 22: Income Statement
Income Statement (@ thousands except for share dara) Net sales Cost of goods sold Gross profit Operating expenses Operating profit Interest expense Interest income (Other income, net ‘Income (loss) before income taxes Income tax (expense) benefit in net income of non-consolidated affiliate, net of E
Slide 23: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows 23
Slide 24: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Note: See slide 13 for a reconciliation of free cash flow and Adjusted Free Cash Flow 24
Slide 25: 3Q Adjusted EBITDA Reconciliation
3Q Adjusted EBITDA Reconciliation 25
Slide 26: FYTD Adjusted EBITDA Reconciliation
FYTD Adjusted EBITDA Reconciliation 26
Slide 27: Net Income to Adjusted Net Income
Net Income to Adjusted Net Income 27
Slide 28: Adjusted Non-GAAP Diluted EPS
Adjusted Non-GAAP Diluted EPS 28
Slide 29: 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 30: Important Disclaimers
Important Disclaimers Non-GAAP Financial Measures Adjusted EBITDA, Adjusted EBITDA margin, adjusted net income from continuing operations and adjusted diluted EPS should not be considered as an alternative to net income (loss) as an indicator of Blue Bird’s performance or as an alternative to any ot
Slide 31: END
E> .LUvE BIRD A heritage of looking ahead.