Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q3 FY2017 Earnings Presentation
25 slides from Blue Bird's earnings presentation, Aug 3, 2017
Slide 1: Fiscal 2017 Third Quarter Results Earnings Conference Call
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2017 Third Quarter Results Earnings Conference Call August 3, 2017
Slide 2: Agenda
Agenda Introductions & Forward-Looking Statements Mark Benfield – Director, Investor Relations Business Overview Phil Horlock – President & CEO Financial Results Phil Tighe – CFO FY2017 Outlook and Guidance Phil Horlock – President & CEO Q&A This presentation includes forward-looki
Slide 3: Business Overview
Phil Horlock President & CEO BUSINESS OVERVIEW 3
Slide 4: 3Q Sales & Financial Overview
3Q Sales & Financial Overview Strong 3Q unit sales with 3,849 buses sold, 2% above prior year; total net sales of $332.6M, up 3% Alternative-fuel powered bus sales represented 41% of our total bus sales mix, up from 25% last year; substantial growth in year-to-date1 orders Net income of $20.0M
Slide 5: Significant Operating Achievements
Significant Operating Achievements Achieved 3Q sales of 3,849 propane CARB new buses was a 7% Certification for 10-year record 0.05g/bhp-hr NOx 4x cleaner 2% above last year YTD quote activity is up YTD bookings and order than competitors’ (previous record) 7% from last year backlog up 7%1 CARB cert
Slide 6: 3Q Financial Results
3Q Financial Results 3Q Net Sales YTD 3Q Bus Sales YTD Net Sales Bus Sales $332.6 $677.9 $317.3 $633.5 Million Million Million Million Up Up $32.3 $28.7 Up $9.5 Million Million Up $7.9 Million Million 3Q Parts Sales YTD 3Q Adj. EBITDA1 YTD Adj. Parts EBITDA Sales $15.3 $44.4 $32.2 $42.9 Million Mill
Slide 7: Alternative Fuel Leadership
Alternative Fuel Leadership Alternative Fuel-Powered Bus Sales FY2016 FY2017 Up Up 37% 38+% 3,788 3,800+ 2,752 2,753 1 YTD Bookings & Backlog Full-Year On track to deliver another record year for alternative fuel sales 1 As of 7/31 7
Slide 8: Financial Results & Outlook
Phil Tighe CFO FINANCIAL RESULTS & OUTLOOK 8
Slide 9: 3Q Results – Summary
3Q Results – Summary 3Q FY2017 3Q FY2016 B/(W) ($ Millions except Volume and EPS) Unit Volume 3,849 3,768 81 units Net Revenue $332.6 $323.1 $9.5 Gross Margin 13.5% 14.5% (1) pt. Net Income $20.0 $(2.9) $22.9 Adj. EBITDA1 $32.2 $32.5 $(0.3) Adj. EBITDA Margin 9.7% 10.1% (0.4) pts. Diluted EPS $0.68
Slide 10: 3Q FY2016 to FY2017 Adj. EBITDA Walk
3Q FY2016 to FY2017 Adj. EBITDA Walk ($ Millions) $32.5 $1.5 $32.2 $(1.7) $(0.1) 3Q FY2016 Bus Parts Operating 3Q FY2017 Gross Profit Gross Profit Expenses/Other 3Q results in line with internal plan; higher production costs that drove lower bus gross profits are being addressed Note: See appendix f
Slide 11: 3Q FY2017 Free Cash Flow
3Q FY2017 Free Cash Flow ($ Millions) FY2017 FY2016 Adjusted EBITDA1 $ 32.2 $ 32.5 Cash Paid for Interest (Net) (1.5) (2.3) Trade Working Capital2 (17.6) 9.4 CapEx (2.0) (2.6) Cash Taxes (0.1) (0.3) 3 Other 2.1 11.4 Adjusted Free Cash Flow $13.1 $48.1 Cash paid for special compensation/business comb
Slide 12: Improving Net Debt, Leverage & Liquidity
Improving Net Debt, Leverage & Liquidity As of July 1, 2017 ($ Millions except for ratios) Debt $ 153.0 Cash 50.3 Net Debt $ 102.7 Net Debt / Adjusted EBITDA TTM 1.5x Net Leverage Ratio 1.67X Compared with minimum bank Net Leverage Ratio covenant of 4.0x Liquidity1 $ 120.2 1 Liquidity is defined as
Slide 13: FY2017 Outlook & Guidance
Phil Horlock President & CEO FY2017 Outlook & Guidance 13
Slide 14: Continued Growth in FY2017
Continued Growth in FY2017 Projecting full-year industry above FY2016 levels Blue Bird unit sales are on track to grow 6-8%, supported by: Continued industry growth High demand for alternative-fuel powered buses Conquest of major accounts Growth in Commercial and Export bus sales YTD1
Slide 15: FY2017 Guidance
FY2017 Guidance Revised Previous FY2017 YTD FY2017 4Q ($ Millions) FY2017G FY2017G Results Expectation Net Sales $980-1,000 $980-1,010 $678 $302-322 Memo: FY2016 $932 Adj. EBITDA1 $68-70 $72-76 $43 $24-27 Memo: FY2016 $72 Adj. Free Cash $33-37 $38-42 $2.1 $31-35 Flow1 Memo: FY2016 $33 Adjusting guid
Slide 16: Announcing Stock Repurchase Program
Announcing Stock Repurchase Program We have been exploring alternative uses of free cash that will be generated over the next few years Board of Directors approved capital stock repurchase program to buy back up to $50M over the next 24 months Strong free cash flow generation affords us the fl
Slide 17: 2) BLUE BIRD.
2) BLUE BIRD.
Slide 18: Appendix
Appendix 2) BLUE BIRD.
Slide 19: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation 19
Slide 20: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 20
Slide 21: Adj. Income from Cont. Ops. Reconciliation
Adj. Income from Cont. Ops. Reconciliation 21
Slide 22: Adj. Diluted EPS Reconciliation
Adj. Diluted EPS Reconciliation 22
Slide 23: 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 24: Important Disclaimers
Important Disclaimers Non-GAAP Financial Measures This presentation may include the following non-GAAP financial measures: “Adjusted EBITDA,” “Adjusted Income from Continuing Operations,” “Adjusted Diluted Earnings per Share,” “Free Cash Flow” and “Adjusted Free Cash Flow.” Adjusted EBITDA is define
Slide 25: END
2) BLUE BIRD.