Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q2 FY2016 Earnings Presentation
27 slides from Blue Bird's earnings presentation, May 23, 2016
Slide 1: Blue Bird Corporation Fiscal 2016 Second Quarter Results
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2016 Second Quarter Results Earnings Conference Call May 23, 2016
Slide 2: Agenda
Agenda Introductions & Forward-Looking Statements Jeff Merten – Director, Investor Relations Business Overview Phil Horlock – President & CEO Financial Results Phil Tighe – CFO Wrap-Up Phil Horlock – President & CEO Q&A Group This presentation includes forward-looking statements,
Slide 3: Business Overview
Phil Horlock President & CEO BUSINESS OVERVIEW 3
Slide 4: Our Winning Culture
Our Winning Culture Experience Highly skilled team with average WHAT WE STAND FOR tenure of ~14 years We come to work every day with one common goal – to design, build, sell and service the world’s finest school bus. That’s what we do – Drive no distractions, no competing priorities. Seize oppor
Slide 5: 2Q Highlights
2Q Highlights 2Q: +4% YOY 2Q: +20% YOY FYTD: +50% YOY Propane Quote Full 3Q Net Sales Up Unit Sales Up Volume Up Production Schedule 4 New Powertrains Net Sales: $960-985M - Ford Gasoline - Ford CNG Adj. EBITDA: $72-75M - Cummins ISV - Eaton Transmission Free Cash Flow: $30-35M Successful Launch New
Slide 6: 2Q Financial Results Up from Prior Year
2Q Financial Results Up from Prior Year 2Q Net Sales 2Q Bus Sales 1H Bus 1H Net Sales Sales $191.2 $322.5 $176.9 $295.4 Million Million Million Million Down Down $26.3 $25.8 Million Up $8.2 Million Up $7.7 Million Million 2Q Parts Sales 1H Parts 2Q Adj. EBITDA 1H Adj. Sales EBITDA $14.3 $27.1 Millio
Slide 7: Continued Propane Momentum
Continued Propane Momentum 1H Propane Mix Propane Market Leadership 46% unit growth in First Half over 2015 18% Number of customers growing 9x more propane-powered buses registered than other manufacturers1 +7 pts. Blue Bird propane-powered Vision has the highest owner loyalty of any school
Slide 8: Strong Interest in New Gasoline-Powered Bus
Strong Interest in New Gasoline-Powered Bus Blue Bird is the only major manufacturer currently taking orders on Type C gasoline- powered school buses Lower acquisition cost than other fuel types Maintenance and service is simpler Strong cold-weather starting capability Utilizes Ford’s mode
Slide 9: Financial Results & Outlook
Phil Tighe CFO FINANCIAL RESULTS & OUTLOOK 9
Slide 10: FY2016 is Ramping Up
FY2016 is Ramping Up ($ Millions) Unit Volume Revenue 2,132 724 $191.2 $59.9 1,408 $131.3 1Q 2Q 1Q 2Q ($ Millions) Adj. EBITDA ($ Millions) Net Income (Loss) $10.1 $1.4 $4.9 1Q $5.2 $3.7 1Q 2Q 1Q 2Q ($2.3) Momentum is building over first quarter; supports full-year outlook 1 See appendix for additio
Slide 11: 2Q Results Exceed Prior Year
2Q Results Exceed Prior Year ($ Millions except EPS) 2Q 2016 2Q 2015 B/(W) Unit Volume 2,132 2,093 39 units Revenue $191.2 $183.0 $8.2 Gross Margin 13.1% 12.6% 0.5 pts. Adj. EBITDA1 $10.1 $9.9 $0.2 EBITDA Margin 5.3% 5.4% (0.1) pts. Net Income (Loss) $1.4 $(11.1)2 $12.5 EPS $0.02 $(0.54)2 $0.56 Cash
Slide 12: 2Q 2015 to 2016 Adj. EBITDA Walk
2Q 2015 to 2016 Adj. EBITDA Walk ($ Millions) $1.1 $1.6 $9.9 $10.1 $2.5 2Q FY2015 Cost Reductions Volume & Mix Growth Initiatives / 2Q FY2016 Adj. EBITDA Other Adj. EBITDA Net Loss Net Income $(11.1) $1.4 Investing in growth initiatives that will drive future revenue increases Note: See appendix for
Slide 13: 2Q FY2016 Free Cash Flow
2Q FY2016 Free Cash Flow 2Q ($ Millions) FY2016 FY2015 Adjusted EBITDA1 $ 10.1 $ 9.9 Cash Paid for Interest (Net) (3.6) (4.0) Trade Working Capital2 16.0 7.3 CAPEX (2.3) (1.0) Cash Taxes (0.6) - Other3 6.3 2.1 Adjusted Free Cash Flow $ 25.9 $ 14.3 Cash Paid for Special Compensation Payment - (13.8)
Slide 14: Net Debt, Leverage & Liquidity
Net Debt, Leverage & Liquidity As of April 2, 2016 ($ Millions) Debt $ 182.7 Cash 28.6 Net Debt $154.1 Net Debt / Adjusted EBITDA (LTM) 2.3x Net Leverage Ratio 2.3x Compared with minimum bank Net Leverage Ratio covenant of 4.5x Liquidity1 $ 83.5 1 Liquidity is defined as cash and cash equivalents pl
Slide 15: Closing and Q&A
Phil Horlock President & CEO CLOSING AND Q&A 15
Slide 16: Our Production Plans Support Seasonality
Our Production Plans Support Seasonality Higher Second Half registrations R.L. Polk Unit influenced by desired delivery just prior to school start Registration Seasonality Based on 3-Year Average1 New second shift enables more buses to be produced in “high 67% season” with peak daily production
Slide 17: Financial Guidance
Financial Guidance Metric FY2016 Guidance ($ Millions) Net Sales $960-985 Adj. EBITDA $72-75 Free Cash Flow $30-35 Reaffirming FY2016 Full-Year Guidance 17
Slide 18: Wrap-Up
Wrap-Up Solid second quarter result supports full-year plan Gross margin percentage up over prior year More volume shifts to Second Half supported by our new second shift Third quarter production schedule is full Strong propane bus progress with sales up 46% in First Half Great order mom
Slide 19: E> .LUvE BIRD
E> .LUvE BIRD A heritage of looking ahead.
Slide 20: Appendix
Appendix E> .LUvE BIRD A heritage of looking ahead.
Slide 21: Upcoming Investor Conferences
Upcoming Investor Conferences Dates Conference Location June 1 Craig-Hallum Capital Investor Conference Minneapolis August 11-12 Jefferies Industrials Conference New York November 16-18 UBS Industrials & Transportation Conference Key Biscayne 21
Slide 22: Free Cash Flow Reconciliations
Free Cash Flow Reconciliations 22
Slide 23: 2Q Adjusted EBITDA Reconciliation
2Q Adjusted EBITDA Reconciliation 23
Slide 24: 1H Adjusted EBITDA Reconciliation
1H Adjusted EBITDA Reconciliation 24
Slide 25: 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 26: 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 27: END
E> .LUvE BIRD A heritage of looking ahead.