Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q2 FY2017 Earnings Presentation
24 slides from Blue Bird's earnings presentation, May 11, 2017
Slide 1: Fiscal 2017 Second Quarter Results Earnings Conference Call
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2017 Second Quarter Results Earnings Conference Call May 11, 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: 2Q Sales & Financial Overview
2Q Sales & Financial Overview Strong 2Q unit sales with 2,367 buses sold, 11% above prior year; total net sales of $208.7M, up 9% Alternative-fuel powered bus sales represented 22% of our total bus sales, up from 13% mix last year; significant growth in year-to-date1 orders Adjusted EBITDA2 of
Slide 5: Significant Operating Achievements
Significant Operating Achievements Pending Gen 4 Senior Appointments to Propane Accelerate Change in: Emissions • Quality • Dealer Development 8% Certification for • Customer Service 0.05g/bhp-hr NOx • Commercial Bus • International Will be 4x cleaner YTD quote activity is up YTD bookings and order
Slide 6: 2Q Financial Results
2Q Financial Results 2Q Net Sales YTD 2Q Bus Sales YTD Net Sales Bus Sales $208.7 $345.3 $193.8 $316.2 Million Million Million Million Up Up $22.8 $20.8 Million Million Up $17.4 Million Up $16.8 Million 2Q Parts Sales YTD 2Q Adj. EBITDA1 YTD Adj. Parts EBITDA Sales $14.9 $29.1 $8.1 $10.7 Million Mil
Slide 7: Alternative Fuel Leadership
Alternative Fuel Leadership Alternative Fuel-Powered Bus Sales FY2016 FY2017 Up Up 27+% 43% 3,500+ 2,920 2,753 2,049 YTD Bookings & Backlog 1 Full-Year On track to deliver over 3,500 alternative-fuel vehicles for the full year 1 Through 5/8 7
Slide 8: Financial Results & Outlook
Phil Tighe CFO FINANCIAL RESULTS & OUTLOOK 8
Slide 9: 2Q Results – Summary
2Q Results – Summary 2Q FY2017 2Q FY2016 B/(W) ($ Millions except Volume and EPS) Unit Volume 2,367 2,132 235 units Net Revenue $208.7 $191.2 $17.4 Gross Margin 11.8% 13.1% (130) bps. Net Income $2.7 $1.4 $1.3 Adj. EBITDA1 $8.1 $10.1 $(2.0) Adj. EBITDA Margin 3.9% 5.3% (140) bps. Diluted EPS $0.07 $
Slide 10: 2Q FY2016 to FY2017 Adj. EBITDA Walk
2Q FY2016 to FY2017 Adj. EBITDA Walk ($ Millions) Investment in future growth $10.1 $(0.5) $0.1 $(1.6) $8.1 Lower margins driven by mix 2Q FY2016 Bus Parts Operating 2Q FY2017 Gross Profit Gross Profit Expenses/Other 2Q profits on Plan – lower margins and operating expenses result in decline versus
Slide 11: 2Q FY2017 Free Cash Flow
2Q FY2017 Free Cash Flow ($ Millions) FY2017 FY2016 Adjusted EBITDA1 $ 8.1 $ 10.1 Cash Paid for Interest (Net) $ (1.4) $ (3.6) Trade Working Capital2 15.3 15.9 CapEx (2.2) (2.2) Cash Taxes (0.7) (0.6) 3 Other 4.6 6.3 Adjusted Free Cash Flow $23.7 $25.9 $ $ One-Time Investment Banking Fee (3.0) - Fre
Slide 12: Improving Net Debt, Leverage & Liquidity
Improving Net Debt, Leverage & Liquidity As of April 1, 2017 ($ Millions) Debt $ 154.9 Cash 38.4 Net Debt $ 116.5 Net Debt / Adjusted EBITDA TTM 1.7x Net Leverage Ratio 1.71X Compared with minimum bank Net Leverage Ratio covenant of 4.0x Liquidity1 $ 108.4 1 Liquidity is defined as cash and cash equ
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 Conquest of major accounts High demand for alternative-fuel powered buses Value-oriented product introductions: • Gasoline-
Slide 15: FY2017 Guidance
FY2017 Guidance 2017G FY2017 1H FY2017 2H ($ Millions) FY2017G B/(W) 2016 Results Expectation Net Sales $980-1,010 $48-78 $345 $635-665 Adj. EBITDA1 $72-76 $0-4 $11 $61-65 Adj. Free Cash $38-42 $5-9 $(14) $52-56 Flow1 Strong 2H expected; reaffirming full-year guidance 1 See appendix for additional d
Slide 16: Blue Bird: A heritage of looking ahead
E> .LvE BIRD Aheritage of looking ahead.
Slide 17: Appendix
Appendix E> .LvE BIRD Aheritage of looking ahead.
Slide 18: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation 18
Slide 19: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 19
Slide 20: Adj. Income from Cont. Ops. Reconciliation
Adj. Income from Cont. Ops. Reconciliation 20
Slide 21: Adj. Diluted EPS Reconciliation
Adj. Diluted EPS Reconciliation 21
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 Income from Continuing Operations,” “Adjusted Diluted Earnings per Share,” “Free Cash Flow” and “Adjusted Free Cash Flow.” Adjusted EBITDA is define
Slide 24: END
E> .LvE BIRD Aheritage of looking ahead.