Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q1 FY2015 Earnings Presentation
28 slides from Blue Bird's earnings presentation, Feb 27, 2015
Slide 1: 2015 Fiscal First Quarter Results Earnings Conference Call
Blue Bird Corporation (Nasdaq: BLBD) 2015 Fiscal First Quarter Results Earnings Conference Call February 27, 2015
Slide 2: Agenda
Agenda Introductions & Forward-Looking Statements Jeff Merten – Director, Investor Relations Business Overview Phil Horlock – President & CEO Financial Results Phil Tighe – CFO Closing and Q&A Investor Relations Contact Jeff Merten Director, Investor Relations 478-822-2496 jeff.merten@
Slide 3: Important Disclaimers: Forward Looking Statements
Important Disclaimers Forward Looking Statements This presentation may include 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 performan
Slide 4: Important Disclaimers: Non-GAAP Financial Measures
Important Disclaimers Non-GAAP Financial Measures Adjusted EBITDA should not be considered as an alternative to net income (loss) as an indicator of Blue Bird’s performance or as an alternative to any other measure prescribed by GAAP. There are limitations to using non- GAAP measures such as Adjuste
Slide 5: Business Overview
Phil Horlock President & CEO BUSINESS OVERVIEW 5
Slide 6: Business Combination Complete
Business Combination Complete Was Now Ticker: HCAC Ticker: BLBD BLBD replaced HCAC and started trading on NASDAQ on 2/25/15 6
Slide 7: Review of Product Offerings
Review of Product Offerings Blue Bird Vision Blue Bird All American Type C Bus Type D Bus 65% Net Sales 22% Net Sales (2014) (2014) Parts Business 6% Net Sales (2014) Blue Bird Sigma Micro Bird T-Series Specialty Bus Type A Bus 7% Net Sales (Unconsolidated) (2014) We build school and activity buses
Slide 8: 1Q 2015 Highlights
1Q 2015 Highlights Bus Volume Net Sales Adj. EBITDA* 1,824 $165.8 $7.4 Units Million Million Up 279 Units Up $19.8 Million Down $(2.2) Million Bus unit volume up 18% Total company net sales up 14% Strong Adjusted EBITDA of $7.4 million Consistent with our plan and supplemental proxy statemen
Slide 9: Momentum Continues
Momentum Continues Undisputed Leader in Propane Sales Significant Diesel Bus Sales Increase Operational Improvements Achieved Parts Business Growth Positive momentum across the business 9
Slide 10: All-New Micro Bird T-Series Launched
All-New Micro Bird T-Series Launched First in market with all-new Ford chassis New diesel and gasoline engines Approximately 20% increase in fuel economy Lowest total cost of ownership Micro Bird T-Series First in market with innovative new product 10
Slide 11: Here's What's New
Here’s What’s New Products that delight our customers and differentiate Blue Bird 11
Slide 12: Financial Results
Phil Tighe CFO FINANCIAL RESULTS 12
Slide 13: School Bus Business is Highly Seasonal
School Bus Business is Highly Seasonal Timing of sales influenced by R.L. Polk Unit school start Registration Seasonality Based on 3-Year Average FY2012-FY2014 First quarter is historically our lowest volume quarter and we 67% take planned shutdowns during this period 33% Company results follo
Slide 14: 1Q 2015 Sales Results
1Q 2015 Sales Results Bus Volume Bus Sales Parts Sales 1,824 $152.0 $13.8 Units Million Million Up 18% Up 13% Up 15% Total Company Net sales were $165.8 million, up 14% from $146.0 million in 2014 Bus Segment Revenue growth lower than volume growth due to product mix and conquest sales Parts Seg
Slide 15: 1Q 2015 Gross Profit
1Q 2015 Gross Profit Total Company Bus Parts $19.5M $14.3M $5.2M Down $1.0M Down $1.7M Up $0.7M Bus Segment Gross profits were down due to a higher mix of new conquest accounts and other one-time factors Favorable mix of propane and efficiencies were a partial offset Parts Segment Gross profit
Slide 16: 1Q 2014 to 2015 Adj. EBITDA Walk
1Q 2014 to 2015 Adj. EBITDA Walk ($ millions) $9.6 One-time warranty adjustment last year and higher sales expense to support growth $7.4 $0.5 $0.3 Other 1Q 2014 Cost Volume & Mix 1Q 2015 Adj. EBITDA Reductions Adj. EBITDA Net Income Net Income $4.1 $(0.6) $(3.0) Note: See slide 27 for additional de
Slide 17: 1Q Adj. EBITDA to Free Cash Flow Walk
1Q Adj. EBITDA to Free Cash Flow Walk ($ millions) FY15 FY14 Adjusted EBITDA $ 7.4 $ 9.6 Capital Expenditures (0.8) (0.6) Cash Interest (8.3) (0.2) Cash Taxes (0.4) 0.0 Working Capital and Other (29.7) (28.9) Free Cash Flow $(31.8) $(20.1) Cash Flow from Operations $(31.0) $(19.5) Note: See slide 28
Slide 18: 1Q 2015 Net Debt, Leverage & Liquidity
1Q 2015 Net Debt, Leverage & Liquidity ($ millions) As of January 3, 2015 Cash $ 23.5 Gross Debt 220.6 Net Debt $ 197.1 Total Debt / Adj. EBITDA (LTM) 3.4x Net Debt / Adj. EBITDA (LTM) 3.0x Liquidity $ 78.2 18
Slide 19: Closing and Q&A
Phil Horlock President & CEO CLOSING AND Q&A 19
Slide 20: Reaffirming 2015 Full-Year Guidance
Reaffirming 2015 Full-Year Guidance 2015 Revenue 2015 Adj. EBITDA $918 - $940 $72 - $75 Million Million Up 7% - 10% Up 7% - 12% On track to grow Adjusted EBITDA 7-12% in FY2015 20
Slide 21: First Quarter Wrap-Up
First Quarter Wrap-Up Delivered strong bus and parts sales growth Achieved solid Adj. EBITDA in lowest volume quarter Conquested customers in new markets Introduced innovative new products and features Continued to drive productivity Penetrated more new accounts with propane buses Reaffi
Slide 22: A heritage of looking ahead
E> .LUvE BIRD A heritage of looking ahead.
Slide 23: Appendix
Appendix E> .LUvE BIRD A heritage of looking ahead.
Slide 24: Income Statement
Income Statement Three Months Ended Increase/ Three Months Ended (in thousands except for share data) January 3, 2015 Decrease December 28, 2013 (unaudited) $ % (unaudited) Net sales $ 165,833 $ 19,840 13.6 $ 145,993 Cost of goods sold 146,355 20,822 16.6 125,533 Gross profit 19,478 (982) (4.8) 20,4
Slide 25: Balance Sheet
Balance Sheet As of January As of September (in thousands except for share data) 3, 2015 27, 2014 Assets (unaudited) (unaudited) Current assets Cash and cash equivalents $ 23,485 $ 61,137 Accounts receivable, net 14,296 21,215 Inventories 68,916 71,300 Other current assets 3,682 4,353 Deferred tax a
Slide 26: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Three Months Ended Three Months Ended (in thousands of dollars) January 3, 2015 December 28, 2013 (unaudited) (unaudited) Cash flows from operating activities Net (loss) income $ (628) $ 4,063 Loss from discontinued operations, net of tax 4 6 Adjustments to recon
Slide 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Three Months Ended (in thousands of dollars) January 3, 2015 December 28, 2013 (unaudited) (unaudited) Adjusted EBITDA $ 7,402 $ 9,593 Loss on disposal of fixed assets (469) - Business combination expenses (611) - Tax expense, non-consolidated (10) (
Slide 28: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (In Thousands of Dollars) Three Months Ended Three Months Ended January 3, 2015 December 28, 2013 Net cash used in continuing operations $(30,950) $(19,471) Cash paid for fixed assets (861) (613) Free cash flow $(31,811) $(20,084) 28