Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q1 FY2019 Earnings Presentation
23 slides from Blue Bird's earnings presentation, Feb 6, 2019
Slide 1: Fiscal 2019 First Quarter Results
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2019 First Quarter Results Earnings Conference Call February 6, 2019
Slide 2: Agenda
Agenda Introductions & Forward-Looking Statements – Mark Benfield – Director, Investor Relations Business Overview – Phil Horlock – President & CEO Financial Results – Phil Tighe – CFO Outlook and Guidance – Phil Horlock – President & CEO Q&A – Group This presentation includes forward-look
Slide 3: Business Overview
Phil Horlock President & CEO BUSINESS OVERVIEW 3
Slide 4: Overview
Overview ▪ Strong 1Q result in softest quarter of the year ◦ 1,600 buses sold, 105 buses lower than last year, in line with our plan ◦ Total Net Sales of $154.9M, $7.6M below last year ◦ Adjusted EBITDA of $7.2M, $0.1M above last year ◦ Adjusted Net Income of $1.3M and Adjusted Diluted EPS of 5 cent
Slide 5: Significant Operating Achievements
Significant Operating Achievements Increased prices to offset 1Q Customers Quality All-New Paint Facility impact of higher steel Efficiency and freight costs 15% Capacity Adj. EBITDA Margin Transformational Robots have been Rev./Unit on School 15% of our customers initiatives on track delivered; lau
Slide 6: 1Q Financial Results
1Q Financial Results Bus Sales Total Net Sales $139.2 $154.9 Million Million Down $8.9 Down $7.6 Million Million Parts Sales Adj. EBITDA1 $15.7 $7.2 Million Million Up $1.3 Up $0.1 Million Million Slightly higher profit despite lower bus sales; strong growth in Parts sales 1See appendix for addition
Slide 7: Alternative-Fuel Leadership
Alternative-Fuel Leadership FY2019 1Q Highlights ▪ 1Q alternative-fuel bus sales were 4% higher than prior year and record 1Q sales mix at 34% ▪ YTD 1 unit sales and order backlog up 25% + ▪ 50+ new Alt. Fuels customers added ▪ 14 states have requested quotes for electric; strong interest and quote
Slide 8: Financial Results & Outlook
Phil Tighe CFO FINANCIAL RESULTS & OUTLOOK 8
Slide 9: 1Q Results – Summary
1Q Results – Summary ($ Millions except EPS & Margin) 1Q FY2019 1Q FY2018 B/(W) Unit Volume 1,600 1,705 (105) Net Revenue $154.9 $162.5 $(7.6) Gross Margin 12.3% 12.7% (40) bps. Net Loss $(1.2) $(7.8) $6.6 Adj. Net Income (Loss)1 $1.3 $(0.3) $1.6 Adj. EBITDA1 $7.2 $7.1 $0.1 Adj. EBITDA Margin 4.7% 4
Slide 10: 1Q FY2018 to FY2019 Adj. EBITDA Walk
1Q FY2018 to FY2019 Adj. EBITDA Walk ($ Millions) Commodity Bus volume down cost increase Transformational 105 units, and not present in initiatives, adverse product efficiencies and 1Q FY2018 and mix due to lower operating costs timing of costs GSA sales impacted by system launch Volume was down ve
Slide 11: 1Q FY2019 Free Cash Flow
1Q FY2019 Free Cash Flow 1Q ($ Millions) FY2019 FY2018 Adjusted EBITDA $ 7.2 $ 7.1 Cash Paid for Interest (Net) (2.4) (1.3) Trade Working Capital1 (41.4) (20.6) CAPEX (10.8) (3.4) Cash Taxes — — Other2 (9.2) (9.5) Adjusted Free Cash Flow $ (56.6) $ (27.7) Operational Transformation Initiatives/Other
Slide 12: Improving Net Debt, Leverage & Liquidity
Improving Net Debt, Leverage & Liquidity As of December 29, ($ Millions) 2018 Debt $209.9 Cash 18.8 Net Debt $191.1 Net Debt / Adjusted EBITDA 2.7x Net Leverage Ratio 2.8x Compared with minimum bank Net Leverage Ratio covenant of 4.0x Liquidity1 $91.9 1 Liquidity is defined as cash and cash equivale
Slide 13: Outlook & Guidance
Phil Horlock President & CEO Outlook & Guidance 13
Slide 14: Profit and Margin Growth Targeted for FY2019
Profit and Margin Growth Targeted for FY2019 School bus market on track for another strong ~35,000 unit industry, supported by continued growth in property taxes, age of the fleet and funding from VW Settlement Blue Bird expects substantially higher gross profit margins than FY2018 due to: ◦ Pri
Slide 15: Reaffirming FY2019 Full Year Guidance
Reaffirming FY2019 Full Year Guidance FY2018 FY2019 FY2019G $ Millions Actual Guidance B/(W) FY2018 Net Sales $1,025 $990 - $1,025 $(35) - $0 Adj. EBITDA1 $70 80-85 $10 - $15 Adj. Free Cash Flow1 $40 $24 - $28 $(12) - $(16) FY2019 Guidance range for Adjusted EBITDA 14% to 21% higher than FY2018, dri
Slide 16: (2) BLUE BIRD.
(2) BLUE BIRD.
Slide 17: Appendix
Appendix (2) BLUE BIRD.
Slide 18: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation Reconciliation of Net Loss to Adjusted EBITDA Three Months Ended (in thousands of dollars) December 29, 2018 December 30, 2017 Net loss $ (1,220) $ (7,839) Adjustments: Discontinued operations income — (87) Interest expense, net (1) 2,968 1,437 Income tax (benefit) expense
Slide 19: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Reconciliation of Free Cash Flow to Adjusted Free Cash Flow Three Months Ended (in thousands of dollars) December 29, 2018 December 30, 2017 Net cash used in operating activities $ (48,208) $ (33,808) Cash paid for fixed assets (10,787) (3,449) Free cash flow $ (58,995)
Slide 20: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Reconciliation of Net Loss to Adjusted Net Income Three Months Ended (in thousands of dollars) December 29, 2018 December 30, 2017 Net loss $ (1,220) $ (7,839) Adjustments, net of tax benefit or expense (1) Operational transformation initiatives 183 5,219 Product redesign
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 EBITDA Margin," “Adjusted Net Income,” “Adjusted Diluted Earnings per Share,” “Free Cash Flow” and “Adjusted Free Cash Flow.” Adjusted EBITDA is def
Slide 23: END
(2) BLUE BIRD.