Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q1 FY2016 Earnings Presentation
30 slides from Blue Bird's earnings presentation, Feb 9, 2016
Slide 1: Fiscal 2016 First Quarter Results Earnings Conference Call
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2016 First Quarter Results Earnings Conference Call February 9, 2016
Slide 2: Agenda
Agenda Introductions & Forward-Looking Statements Jeff Merten – Director, Investor Relations Business Overview Phil Horlock – President & CEO Financial Results & Outlook Phil Tighe – CFO Wrap-Up Phil Horlock – President & CEO Q&A Group This presentation includes forward-looking s
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 Net sales revenue of $131 million, down $35 million compared with prior year Decline due largely to timing of sales to three large customers that delayed orders to later in the year Gross margins of 14.3% in the quarter wer
Slide 5: 1Q Highlights
1Q Highlights Production Set up 1,600 buses (based on firm orders), only 8% below last year despite five fewer production days We launched our second shift in late January as planned and are proceeding with an orderly ramp up of daily production rates Daily production capacity will be more t
Slide 6: School Bus Business is Highly Seasonal
School Bus Business is Highly Seasonal Timing of sales influenced by R.L. Polk Unit timing of school starts and release of state budgets Registration Seasonality Based on 3-Year Average1 Registrations reflect the sales pattern 67% Customer order timing and mix varies from quarter to quarter ea
Slide 7: Unit Sales Volume Shifts to Second Half
Unit Sales Volume Shifts to Second Half Full Bus Unit Sales Year Up FY2015 FY2016 4-6% 10,800-11,000 10,378 2H Up 10-13% 1H Down 4-6% 1Q Down 23% 1,824 1,408 FY 1Q 1H 2H First Half down as expected; Second Half stronger with second shift capacity 7
Slide 8: Continued 1Q Propane Momentum
Continued 1Q Propane Momentum 1Q Propane Mix Propane Market Leadership 72% unit growth in 1Q over prior year 27% Number of customers trying propane growing 6x more propane-powered buses registered than other manufacturers1 +15 pts. Highest owner loyalty product in the market1 Propane Advanta
Slide 9: New Powertrain Launches On Track
New Powertrain Launches On Track Gasoline Engine V8 Diesel Engine Blue Bird is the only manufacturer to offer a Type C Blue Bird is the only gasoline-powered school bus manufacturer to offer the Cummins ISV 5.0L V8 diesel Lower acquisition cost than in a school bus other fuel types Lower acq
Slide 10: Broadest Range of Product Offerings
Broadest Range of Product Offerings Type D Rear Engine Alternative Fuel Type D Rear Engine Cummins ISL-G CNG Traditional Type C Cummins ISB/ISL Diesel Alternative Fuel Type D Front Engine Ford/ROUSH CNG Traditional Type C Cummins ISB Diesel Alternative Fuel Type C Ford/ROUSH Propane Traditional Type
Slide 11: Financial Results & Outlook
Phil Tighe CFO FINANCIAL RESULTS & OUTLOOK 11
Slide 12: Financial Overview
Financial Overview 1Q Bus Volume 1Q Net Sales 1Q Gross Margin 1,408 $131.3 14.3% Units Million Down 416 Units Down $34.5 Million Up 2.6 pts. 1Q Bus Sales 1Q Parts Sales 1Q Adj. EBITDA $118.5 $12.9 $5.2 Million Million Million Down $33.5 Million Down $1.0 Million Down $2.3 Million 1Q down vs. prior y
Slide 13: 1Q 2015 to 2016 Adj. EBITDA Walk
1Q 2015 to 2016 Adj. EBITDA Walk ($ millions) Volume $(3.3) Mix 1.1 $0.7 $7.6 $(2.2) $5.2 $(0.9) 1Q FY2015 Cost Reductions Volume & Mix Growth Initiatives / 1Q FY2016 Adj. EBITDA Other Adj. EBITDA Net Loss Net Loss $(0.6) $(2.3) Lower profits due primarily to a reduction of 416 units versus prior ye
Slide 14: FY2016 1Q Free Cash Flow
FY2016 1Q Free Cash Flow 1Q ($ Millions) FY2016 FY2015 Adjusted EBITDA $ 5.2 $ 7.6 Cash Paid for Interest (Net) (3.5) (8.3)1 Trade Working Capital2 (33.3) (16.1) CAPEX (1.7) (0.9) Cash Taxes - - Other3 (9.9) (13.5) Adjusted Free Cash Flow $ (43.2) $ (31.2) Cash Paid for Business Combination Expenses
Slide 15: Net Debt, Leverage & Liquidity
Net Debt, Leverage & Liquidity As of January 2, 2016 ($ Millions) Debt $ 194.9 Cash 16.6 Net Debt $ 178.3 Net Debt / Adjusted EBITDA (LTM) 2.6x Net Leverage Ratio (compared with minimum bank Net Leverage Ratio 2.5x covenant of 4.5x) Liquidity1 $ 61.5 1 Liquidity is defined as cash and cash equivalen
Slide 16: Closing and Q&A
Phil Horlock President & CEO CLOSING AND Q&A 16
Slide 17: Financial Guidance
Financial Guidance ($ millions) FY2016 Guidance Guidance Net Sales $960-985 Adjusted EBITDA $72-75 Free Cash Flow $30-35 Reaffirming FY2016 full-year Guidance 17
Slide 18: Wrap-Up
Wrap-Up Solid 1Q result supports full-year plan More volume shifts to Second Half supported by our new second shift Gross margin percentage up Strong propane bus momentum with sales up 72% in the quarter and more new customers trying propane Exciting new powertrains on track to launch this
Slide 19: Blue Bird
E> .LUvE BIRD A heritage of looking ahead.
Slide 20: Appendix
Appendix E> .LUvE BIRD A heritage of looking ahead.
Slide 21: Investor Information
Investor Information Annual Meeting of Shareholders Annual Report Available for Order Investors interested in ordering an annual report should email March 10, 2016 Mark Benfield at: Annual Meeting of Shareholders Marriott Gateway at Atlanta Airport mark.benfield@blue-bird.com 2020 Convention Center
Slide 22: Balance Sheet
Balance Sheet BLUE BIRD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALA ‘Series A preferred stock , $0.0001 par value, 10,000,000 shares authorized, 500,000 issued and outstanding at. 2, 2016 and October 3, 2015; liquidation preference of $50,000 s 50,000 $ 50,000 ‘Common stock, $0.0001 par
Slide 23: Income Statement
Income Statement BLUE BIRD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS Ended January 2, Ended January 3, 2016 2015 (jm thousands excopt for thare daz) ——) (easedind) Net sales $s 131333 $ 165,833 Cost of goods sold 112,580 146,355 Gross profit
Slide 24: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows 24
Slide 25: Free Cash Flow Reconciliations
Free Cash Flow Reconciliations The following table sets forth the reconciliation of Free Cash Flow for 1Q of fiscal years 2016 and 2015: 25
Slide 26: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 26
Slide 27: Segment Revenue and Gross Profit
Segment Revenue and Gross Profit 27
Slide 28: 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 29: 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 net income prior t
Slide 30: END
E> .LUvE BIRD A heritage of looking ahead.