Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q1 2020 Earnings Presentation
24 slides from Blue Bird's earnings presentation, Feb 12, 2020
Slide 1: Fiscal 2020 First Quarter Results
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2020 First Quarter Results Earnings Conference Call February 12, 2020
Slide 2: Agenda
Agenda ▪ Introductions & Forward-Looking Statements – Mark Benfield – Executive Director, Profitability & Investor Relations ▪ Business Overview – Phil Horlock – President & CEO ▪ Financial Results – Phil Tighe – CFO ▪ Outlook and Guidance – Phil Horlock – President & CEO ▪ Q&A – Group This presenta
Slide 3: Business Overview
Phil Horlock President & CEO BUSINESS OVERVIEW 3
Slide 4: Overview
Overview ▪ Achieved second highest 1Q profit in more than 10 years ◦ Adjusted EBITDA of $8.0M, $0.8M above last year ◦ 1,460 buses sold, down 140 units from last year ◦ Total Net Sales of $153.2M, 1% lower than last year ◦ Average-bus selling price was 6% higher than last year and parts revenue was
Slide 5: Significant Operating Achievements
Significant Operating Achievements Robotic Paint Facility Significant gains in Year-Over-Year Increase in Quality revenue per bus Adj. EBITDA Margin Costs +$5k (Pts.) Capacity Gross Margin up 1.6 pts. Transformational Fully operational, at full Bus Rev./Unit is up 6% Grew Adj. EBITDA Margin initiati
Slide 6: 1Q Financial Results
1Q Financial Results Bus Sales Total Net Sales $134.8M $153.2M Down $4.4M Down $1.7M Parts Sales Adj. EBITDA1 $18.4M $8.0M Up $2.7M Up $0.8M Higher profit despite lower bus sales; strong growth in Parts sales 1See appendix for additional detail regarding Adjusted EBITDA 6
Slide 7: Alternative-Fuel Leadership
Alternative-Fuel Leadership FY2020 YTD Highlights ▪ Sold units and backlog are 5% above prior year (Sold and in Backlog) ▪ Alt-Fuel sales mix at 46%, 4 pts above prior year ▪ 111 new Alt-Fuel customers added ▪ 90+ electric buses sold and in backlog Up 5% Opportunities ▪ VW mitigation funds ◦ 52 stat
Slide 8: Transformational Initiatives Drive Down Cost
Transformational Initiatives Drive Down Cost FY2018 FY2019 FY2020+ Phase 1 Phase 2 Phase 3 Purchased Material Purchased Material Purchased Material – Commercial – Commercial – Commercial – Sourcing – Sourcing – Sourcing – Initial design – Design Build and Launch New Paint Facility New Paint Facility
Slide 9: Financial Results & Outlook
Phil Tighe CFO FINANCIAL RESULTS & OUTLOOK 9
Slide 10: 1Q Results – Summary
1Q Results – Summary ($ Millions unless noted) 1Q FY2020 1Q FY2019 B/(W) Unit Volume 1,460 1,600 (140) Net Revenue $153.2 $154.9 $(1.7) Bus Rev./Unit ($000's) $92.3 $87.0 $5.3 Gross Margin 13.9% 12.3% 160 bps. Net Loss $(0.4) $(1.2) $0.8 Adj. Net Income1 $2.0 $1.3 $0.8 Adj. EBITDA1 $8.0 $7.2 $0.8 Ad
Slide 11: 1Q FY2019 to FY2020 Adj. EBITDA Walk
1Q FY2019 to FY2020 Adj. EBITDA Walk Improved product mix, ($ Millions) and higher parts profits, partially offset by bus volume down 140 units Operating costs, manufacturing launch costs and other Product mix, pricing and cost reductions through Transformational Initiatives drive higher profits des
Slide 12: FY2020 Free Cash Flow
FY2020 Free Cash Flow 1Q ($ Millions) FY2020 FY2019 Adjusted EBITDA $ 8.0 $ 7.2 Cash Paid for Interest (Net) (2.2) (2.4) Trade Working Capital1 (80.2) (41.4) CAPEX (9.3) (10.8) Cash Taxes — — Other2 (7.1) (9.5) Adjusted Free Cash Flow $ (90.8) $ (56.9) Operational Transformation Initiatives/Other (1
Slide 13: Improving Net Debt, Leverage & Liquidity
Improving Net Debt, Leverage & Liquidity As of January 4, ($ Millions) 2020 Debt $215.9 Cash 7.7 Net Debt $208.2 Net Debt / Adjusted EBITDA 2.5x Net Leverage Ratio 2.5x Compared with minimum bank Net Leverage Ratio covenant of 3.75x Liquidity1 $65.8 1 Liquidity is defined as cash and cash equivalent
Slide 14: Outlook & Guidance
Phil Horlock President & CEO Outlook & Guidance 14
Slide 15: Outlook for FY2020 - Following Our Plan
Outlook for FY2020 - Following Our Plan ▪ School bus industry outlook at about 34k, the same level as prior two years, supported by continued growth in property taxes, high mix of buses that are more than 15 years old and VW settlement and other funding to replace aging diesel buses ▪ In FY2020, Blu
Slide 16: Reaffirming FY2020 Full Year Guidance
Reaffirming FY2020 Full Year Guidance FY2019 FY2020 FY2020G $ Millions Actual Guidance B/(W) FY2019 Net Sales $1,018 $1,020 - $1,050 $2 - $32 Adj. EBITDA1 $82 $90-95 $8 - $13 Adj. Free Cash Flow1 $36 $30 - $35 $(6) - $(1) FY2020 Guidance mid-point for Adjusted EBITDA 13% higher than FY2019, driven b
Slide 17: Blue Bird
(2) BLUE BIRD.
Slide 18: Appendix
Appendix (2) BLUE BIRD.
Slide 19: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation Reconciliation of Net Loss to Adjusted EBITDA Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2019 Net loss $ (403) $ (1,220) Adjustments: Discontinued operations income — — Interest expense, net (1) 1,993 2,968 Income tax benefit (326) (236) Depr
Slide 20: 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) January 4, 2020 December 29, 2019 Net cash provided by operating activities $ (85,988) $ (48,208) Cash paid for fixed assets (9,287) (10,787) Free cash flow $ (95,27
Slide 21: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Reconciliation of Net Loss to Adjusted Net Income Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2019 Net loss $ (403) $ (1,220) Adjustments, net of tax benefit or expense (1) Operational transformation initiatives 836 183 Product redesign initi
Slide 22: 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 23: 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 24: END
(2) BLUE BIRD.