Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q2 FY2015 Earnings Presentation
31 slides from Blue Bird's earnings presentation, May 19, 2015
Slide 1: 2015 Fiscal Second Quarter Results Earnings Conference Call
Blue Bird Corporation (Nasdaq: BLBD) 2015 Fiscal Second Quarter Results Earnings Conference Call May 19, 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 This presentation includes forward-looking statements, including statements regarding full-ye
Slide 3: Business Overview
Phil Horlock President & CEO BUSINESS OVERVIEW 3
Slide 4: Highlights
Highlights Sold 2,093 buses in the Second Quarter and 3,917 buses in the First Half, with sales down 6% for the quarter but First Half up 4% over last year; delivered fourth consecutive year of growth in the First Half Posted solid Adjusted EBITDA of $10 million in Second Quarter and $18 million
Slide 5: School Bus Business is Highly Seasonal
School Bus Business is Highly Seasonal Timing of sales influenced R.L. Polk Unit by school start Registration Seasonality Based on 3-Year Average FY2012-FY2014 Company sales influenced 67% by registration pattern Customer order timing and mix varies from quarter to 33% quarter each year Impo
Slide 6: Second Half Outlook Supports Guidance
Second Half Outlook Supports Guidance Third Quarter sales objective is % of Bus Unit Sales fully supported by firm orders 2014 2015 and our production plan ~60-63% 61% Projected Third Quarter margins are higher than the First Half based on units already shipped 39% ~37-40% and orders in hand P
Slide 7: Propane Momentum Continues
Propane Momentum Continues Tracking to achieve double-digit sales growth in 2015 Strategic propane-powered bus wins 150 units in Newtown, PA 92 units in Grand Junction, CO 86 units in Boston, MA Launched new short wheelbase propane-powered Vision Specifically designed for compact urban
Slide 8: Safety Product Innovation Continues
Safety Product Innovation Continues First to offer electronic stability control system on a school bus – Bendix ESP Full Stability System Proven technology that helps mitigate or possibly prevent loss of control and rollover conditions First to market with this innovative safety feature 8
Slide 9: New Micro Bird T-Series Starts Shipping
New Micro Bird T-Series Starts Shipping Micro Bird (non-consolidated JV) is delivering strong sales and market share growth this year Led by the new Micro Bird T-Series, which started shipping in March First to market … Micro Bird is the only Type A bus manufacturer currently offering the all-
Slide 10: Drive to Grow in Federal Government Sector
Drive to Grow in Federal Government Sector Recent bid results expected to lead to market share growth with the U.S. General Services Administration (GSA) Positioned well for market share growth with federal government 10
Slide 11: Financial Results
Phil Tighe CFO FINANCIAL RESULTS 11
Slide 12: Financial Overview
Financial Overview 2Q Bus Volume 2Q Net Sales 2Q Adj. EBITDA 2,093 $183.0 $10.1 Units Million Million Down 130 Units Down $12.7 Million Down $(4.6) Million 1H Bus Volume 1H Net Sales 1H Adj. EBITDA 3,917 $348.9 $17.5 Units Million Million Up 149 Units Up $7.2 Million Down $(6.8) Million Results refl
Slide 13: Sales Overview
Sales Overview 2Q Bus Sales 2Q Parts Sales $169.2 $13.8 Million Million Down 8% Up 9% 1H Bus Sales 1H Parts Sales 321.2 $27.6 Million Million Up 1% Up 12% Bus Sales down for the quarter but up for the half based on order timing Parts growth driven by successful promotional activities Note: Percentag
Slide 14: 2nd Quarter 2014 to 2015 Adj. EBITDA Walk
2nd Quarter 2014 to 2015 Adj. EBITDA Walk ($ millions) $14.8 $10.1 $0.6 Ongoing Public Growth Volume & Mix Company Cost Initiatives/Other 2Q 2014 Cost 2Q 2015 Adj. EBITDA Reductions $(0.6) Adj. EBITDA $(1.0) $(3.7) Net Income Net Loss $7.6 $(11.1) Impacted by seasonal variations in order timing and
Slide 15: Free Cash Flow
Free Cash Flow ($ millions) Six Month Ended April 4, 2015 Adjusted EBITDA1 $ 17.5 Cash Paid for Interest (Net) 2 (12.3) Trade Working Capital3 (8.8) CAPEX (1.8) Cash Taxes (0.4) Other (11.1) Adjusted Free Cash Flow $ (16.9) Cash Paid for Special Compensation Payment4 (13.8) Cash Paid for Business Co
Slide 16: Net Debt, Leverage & Liquidity
Net Debt, Leverage & Liquidity ($ millions) As of April 4, 2015 Cash $ 22.6 Gross Debt 218.3 Net Debt $ 195.7 Total Debt / Adj. EBITDA (LTM) 3.6x Net Debt / Adj. EBITDA (LTM) 3.3x Liquidity1 $ 77.5 1Liquidity is defined as cash and cash equivalents plus availability on the revolving line of credit B
Slide 17: Closing and Q&A
Phil Horlock President & CEO CLOSING AND Q&A 17
Slide 18: Reaffirming Revenue & Adj. EBITDA Guidance
Reaffirming Revenue & Adj. EBITDA Guidance ($ millions) 1H 2H Full Year Guidance Actual Forecast Fiscal 2015 Net Sales $349 $569-591 $918-940 Adjusted EBITDA1 $17 $55-58 $72-75 Memo: Forecast Adj. Free Cash Flow2 $(17) $52-57 $35-40 1Consistent with the information provided in our proxy statement, g
Slide 19: Wrap Up
Wrap Up On plan for total volume and propane bus sales, supported by order backlog and strong order pipeline. Record sales outlook for Micro Bird Projecting continued double-digit percentage growth in Parts business Forecasting solid growth in vehicle margins in Second Half, fueled by favorabl
Slide 20: A heritage of looking ahead
E> .LUvE BIRD A heritage of looking ahead.
Slide 21: Appendix
Appendix E> .LUvE BIRD A heritage of looking ahead.
Slide 22: Income Statement
Income Statement Three Months Three Months Ended April 04, Ended March 29, Six Months Ended Six Months Ended (in thousands except for share data) 2015 2014 April 04, 2015 March 29, 2014 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 183,018 $ 195,672 $ 348,851 $ 341,665 Cost of goods so
Slide 23: Balance Sheet
Balance Sheet (in thousands except for share data) As of April 04, 2015 As of September 27, 2014 (unaudited) (unaudited) Assets Current assets Cash and cash equivalents $ 22,618 $ 61,137 Accounts receivable, net 13,048 21,215 Inventories 84,521 71,300 Other current assets 5,972 4,353 Deferred tax as
Slide 24: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Six Months Ended Six Months Ended (in thousands of dollars) April 04, 2015 March 29, 2014 (unaudited) (unaudited) Cash flows from operating activities Net (loss) income $ (11,723) $ 11,692 Loss from discontinued operations, net of tax 4 11 Adjustments to reconcil
Slide 25: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Six Months Ended Six Months Ended (in thousands of dollars) April 04, 2015 March 29, 2014 Net cash (used in)/provided by continuing operations $ (41,406) $ 8,695 Cash paid for fixed assets (1,832) (2,230) Free cash flow $ (43,238) $ 6,465 Note: See slide 15 for a reconc
Slide 26: 2nd Quarter Adj. EBITDA Reconciliation
2nd Quarter Adj. EBITDA Reconciliation Three Months Ended Three Months Ended (in thousands of dollars) April 04, 2015 March 29, 2014 Net income (loss) $ (11,095) $ 7,629 Income (loss) from discontinued operations, net of tax — (5) Income (loss) from continuing operations $ (11,095) $ 7,634 Interest
Slide 27: 1st Half Adj. EBITDA Reconciliation
1st Half Adj. EBITDA Reconciliation Six Months Ended Six Months Ended (in thousands of dollars) April 04, 2015 March 29, 2014 Net income (loss) $ (11,723) $ 11,692 Income (loss) from discontinued operations, net of tax (4) (11) Income (loss) from continuing operations $ (11,719) $ 11,703 Interest ex
Slide 28: Adj. Net Income from Continuing Operations
Adj. Net Income from Continuing Operations Three Months Ended April Three Months Ended Six Months Ended April 4, Six Months Ended (in thousands except for share data) 4, 2015 March, 2014 2015 March, 2014 Income (loss) from continuing operations $ (11,095) $ 7,634 $ (11,719) $ 11,703 Adjustments net
Slide 29: 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 30: Important Disclaimers
Important Disclaimers Non-GAAP Financial Measures Adjusted EBITDA, Adjusted EBITDA margin and adjusted net income from continuing operations 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
Slide 31: END
E> .LUvE BIRD A heritage of looking ahead.