Unit Sales up 3%, GAAP net income of $1.8 million, Adjusted EBITDA of
$10.0 million, Adjusted Diluted EPS of $0.15 and Adjusted Free Cash Flow
of $3.3 million
MACON, Ga.--(BUSINESS WIRE)--
Blue Bird Corporation (“Blue Bird”) (Nasdaq: BLBD), the leading
independent designer and manufacturer of school buses, announced today
its fiscal 2018 second quarter results. Blue Bird Corporation delivered
higher revenue, up 4% from prior year, positive net income of $1.8
million and solid Adjusted EBITDA of $10.0 million. Positive earnings
were delivered despite higher commodity costs.
Highlights
|
| |
| |
| |
| |
| | Three Months Ended | | B/(W) | | Six Months Ended | | B/(W) |
(in millions except EPS data) | | March 31, 2018 |
| 2017 | | March 31, 2018 |
| 2017 |
| Unit Sales | |
2,441
| | |
74
| | |
4,146
| | |
286
| |
| GAAP Measures: | | | | | | | | |
| Revenue | |
$
|
216.6
| | |
$
|
8.0
| | |
$
|
379.2
| | |
$
|
33.9
| |
| Net Income | |
$
|
1.8
| | |
$
|
(0.9
|
)
| |
$
|
(6.0
|
)
| |
$
|
(0.2
|
)
|
| Diluted Earnings per Share | |
$
|
0.04
| | |
$
|
(0.03
|
)
| |
$
|
(0.32
|
)
| |
$
|
0.02
| |
| Non-GAAP Measures1: | | | | | | | | |
| Adjusted EBITDA | |
$
|
10.0
| | |
$
|
1.6
| | |
$
|
15.3
| | |
$
|
4.3
| |
| Adjusted Net Income | |
$
|
4.6
| | |
$
|
1.4
| | |
$
|
2.9
| | |
$
|
1.8
| |
Adjusted Diluted Earnings per Share | |
$
|
0.15
| | |
$
|
0.06
| | |
$
|
0.06
| | |
$
|
0.10
| |
1 Reconciliation to relevant GAAP metrics shown below
|
|
|
“We are pleased with our second quarter performance and are well
positioned to deliver our full-year targets," said Phil Horlock,
President and Chief Executive Officer of Blue Bird Corporation. “We are
excited about the Operational Transformation Initiatives we are
implementing to improve quality, reduce cost, increase capacity and
ensure that Blue Bird continues its tradition as the innovator in the
School Bus industry. These key initiatives will drive higher
profitability and margins and we are pleased with progress toward our
target of an Adjusted EBITDA margin of more than 10% by FY2020.
Continuing to invest in differentiated products that customers want and
value is a core priority in Blue Bird, as evidenced by another quarter
of strong growth and leadership in sales of our alternative-fuel powered
school buses and by customer reaction to our all-new range of
electric-powered buses. Blue Bird will begin delivery of electric buses
to school districts before the end of this fiscal year.
"Despite investment in our initiatives in the second quarter, we
continue to generate positive cash flow, with positive net cash provided
by operating activities of $0.8 million and Adjusted Free Cash Flow of
$3.3 million for the quarter. With our peak sales months ahead, we are
maintaining our full year guidance of $40 - $45 million for Adjusted
Free Cash Flow for the fiscal year.
"Also, despite the substantial jump in commodity prices (especially
steel), we are pleased to announce that we are able to re-affirm our
full year guidance for both net revenue of $1,010 million - $1,040
million and Adjusted EBITDA guidance of $80 - $85 million."
Second Quarter 2018 Results
Net Sales
Net sales were $216.6 million for the second quarter of fiscal 2018, an
increase of $8.0 million, or 3.8%, from prior year period. Bus unit
sales were 2,441 units for the quarter compared with 2,367 units for the
same period last year.
Gross Profit
Second quarter gross profit of $21.7 million represents a decrease of
$3.0 million from the second quarter of last year.
Net Income
Net income was $1.8 million for the second quarter of fiscal 2018, a
decrease of $0.9 million compared with the same period last year.
Adjusted Net Income
Adjusted Net Income was $4.6 million, representing an increase of $1.4
million compared with the same period last year.
Adjusted EBITDA
Adjusted EBITDA was $10.0 million, or 4.6% of net sales, representing an
increase of $1.6 million compared with the second quarter of the prior
year.
Year-to-Date 2018 Results
Net Sales
Net sales were $379.2 million for the six months ended March 31, 2018,
an increase of $33.9 million, or 9.8%, compared with the prior year.
This was primarily driven by higher bus unit sales, which were 286 units
above the same period last year.
Gross Profit
Gross profit was $42.3 million, a decrease of $0.5 million from the
prior year.
Net Income
Net income was $6.0 million for the six months ended March 31, 2018,
which was $0.2 million below the same period in the prior year. The
decrease was primarily driven by a decrease of $7.2 million in selling,
general and administrative expenses, which was partially offset by a
decrease of $0.5 million in gross profit.
Adjusted Net Income
Adjusted Net Income was $2.9 million, representing an increase of $1.8
million compared with the prior year.
Adjusted EBITDA
Adjusted EBITDA was $15.3 million, or 4.0% of net sales, for the six
months ended March 31, 2018, an increase of $4.3 million from the prior
year. The increase in adjusted EBITDA was primarily the of lower
adjusted selling, general and administrative expenses.
Conference Call Details
Blue Bird will discuss its second quarter 2018 results and other related
matters in a conference call at 4:30 PM ET today. Participants may
listen to the audio portion of the conference call either through a live
audio webcast on the Company's website or by telephone. The slide
presentation and webcast can be accessed via the Investor Relations
portion of Blue Bird's website at www.blue-bird.com.
-
Webcast participants should log on and register at least 15 minutes
prior to the start time on the Investor Relations homepage of Blue
Bird’s website at http://investors.blue-bird.com.
Click the link in the events box on the Investor Relations landing
page.
-
Participants desiring audio only should dial 1-800-263-0877 or
1-646-828-8143.
A replay of the webcast will be available approximately two hours after
the call concludes via the same link on Blue Bird’s website.
About Blue Bird Corporation
Blue Bird is the leading independent designer and manufacturer of school
buses, with more than 550,000 buses sold since its formation in 1927 and
approximately 180,000 buses in operation today. Blue Bird’s longevity
and reputation in the school bus industry have made it an iconic
American brand. Blue Bird distinguishes itself from its principal
competitors by its singular focus on the design, engineering,
manufacture and sale of school buses and related parts. As the only
manufacturer of chassis and body production specifically designed for
school bus applications, Blue Bird is recognized as an industry leader
for school bus innovation, safety, product
quality/reliability/durability, operating costs and drivability. In
addition, Blue Bird is the market leader in alternative fuel
applications with its propane-powered and compressed natural gas-powered
school buses. Blue Bird manufactures school buses at two facilities in
Fort Valley, Georgia. Its Micro Bird joint venture operates a
manufacturing facility in Drummondville, Quebec, Canada. Service and
after-market parts are distributed from Blue Bird’s parts distribution
center located in Delaware, Ohio.
Key Non-GAAP Financial Measures We Use to
Evaluate Our Performance
This press release includes the following non-GAAP financial measures
“Adjusted EBITDA,” "Adjusted EBITDA Margin," "Adjusted Net Income
(Loss)," "Adjusted Diluted Earnings per Share," “Free Cash Flow” and
“Adjusted Free Cash Flow” because management views these metrics as a
useful way to look at the performance of our operations between periods
and to exclude decisions on capital investment and financing that might
otherwise impact the review of profitability of the business based on
present market conditions.
Adjusted EBITDA is defined as net income prior to discontinued
operations income or loss, interest income, interest expense, income
taxes, and depreciation, amortization, and disposals, as adjusted to add
back certain charges that we may record each year, such as
stock-compensation expense and transaction costs, as these expenses are
not considered an indicator of ongoing company performance. We define
Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales.
Adjusted Net Income (Loss) is net income as adjusted to add back certain
transaction costs not considered an indicator of ongoing company
performance. Adjusted diluted earnings per share represents Adjusted Net
Income (Loss) by diluted weighted average common shares outstanding (as
if we had GAAP net income during the respective period). Adjusted
EBITDA, Adjusted EBITDA margin, Adjusted Net Income (Loss), and Adjusted
Diluted Earnings per Share are not measures of performance defined in
accordance with GAAP. The measures are used as a supplement to GAAP
results in evaluating certain aspects of our business, as described
below.
We believe that Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net
Income (Loss), and Adjusted Diluted Earnings per Share are useful to
investors in evaluating our performance because the measures consider
the performance of our operations, excluding decisions made with respect
to capital investment, financing, and other expenses. We believe that
the non-GAAP metrics offer additional financial metrics that, when
coupled with the GAAP results and the reconciliation to GAAP results,
provide a more complete understanding of our results of operations and
the factors and trends affecting our business.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income (Loss) and
Adjusted Diluted Earnings per Share should not be considered as
alternatives to net income or GAAP earnings per share as an indicator of
our performance or as alternatives to any other measure prescribed by
GAAP as there are limitations to using such non-GAAP measures. Although
we believe the non-GAAP measures may enhance the evaluation of our
operating performance based on recent revenue generation and
product/overhead cost control because they exclude the impact of prior
decisions made about capital investment, financing, and other expenses,
(i) other companies in Blue Bird’s industry may define Adjusted EBITDA,
Adjusted EBITDA margin, Adjusted Net Income (Loss), and Adjusted Diluted
Earnings per Share differently than we do and, as a result, they may not
be comparable to similarly titled measures used by other companies in
Blue Bird’s industry, and (ii) Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted Net Income (Loss), and Adjusted Diluted Earnings per Share
exclude certain financial information that some may consider important
in evaluating our performance.
We compensate for these limitations by providing disclosure of the
differences between Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
Net Income (Loss), and Adjusted Diluted Earnings per Share and GAAP
results, including providing a reconciliation to GAAP results, to enable
investors to perform their own analysis of our operating results.
Our measures of “Free Cash Flow” and "Adjusted Free Cash Flow" are used
in addition to and in conjunction with results presented in accordance
with GAAP and free cash flow and adjusted free cash flow should not be
relied upon to the exclusion of GAAP financial measures. Free cash flow
and adjusted free cash flow reflect an additional way of viewing our
liquidity that, when viewed with our GAAP results, provides a more
complete understanding of factors and trends affecting our cash flows.
We strongly encourage investors to review our financial statements and
publicly-filed reports in their entirety and not to rely on any single
financial measure.
We define free cash flow as net cash provided by/used in operations
minus cash paid for fixed assets. We define adjusted free cash flow as
free cash flow minus cash paid for special compensation and other
business combination expenses. We use free cash flow and adjusted free
cash flow, and ratios based on both, to conduct and evaluate our
business because, although it is similar to cash flow from operations,
we believe it is a more conservative measure of cash flow since
purchases of fixed assets and intangible assets are a necessary
component of ongoing operations. In limited circumstances in which
proceeds from sales of fixed or intangible assets exceed purchases, free
cash flow would exceed cash flow from operations. However, since we do
not anticipate being a net seller of fixed or intangible assets, we
expect free cash flow to be less than operating cash flows.
Forward Looking Statements
This press release 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, business strategies or
expectations for our business. Specifically, forward-looking statements
include statements in this press release regarding guidance,
seasonality, product mix and gross profits and may include statements
relating to:
-
Inherent limitations of internal controls impacting financial
statements
-
Growth opportunities
-
Future profitability
-
Ability to expand market share
-
Customer demand for certain products
-
Economic conditions that could affect fuel costs, commodity costs,
industry size and financial conditions of our dealers and suppliers
-
Labor or other constraints on the Company’s ability to maintain a
competitive cost structure
-
Volatility in the tax base and other funding sources that support the
purchase of buses by our end customers
-
Lower or higher than anticipated market acceptance for our products
-
Other statements preceded by, followed by or that include the words
“estimate,” “plan,” “project,” “forecast,” “intend,” “expect,”
“anticipate,” “believe,” “seek,” “target” or similar expressions
These forward-looking statements are based on information available as
of the date of this press release, and current expectations, forecasts
and assumptions, and involve a number of judgments, risks and
uncertainties. Accordingly, forward-looking statements should not be
relied upon as representing our views as of any subsequent date, and we
do not undertake any obligation to update forward-looking statements to
reflect events or circumstances after the date they were made, whether
as a result of new information, future events or otherwise, except as
may be required under applicable securities laws. The factors described
above, as well as risk factors described in reports filed with the SEC
by us (available at www.sec.gov),
could cause our actual results to differ materially from estimates or
expectations reflected in such forward-looking statements.
|
| |
| |
| BLUE BIRD CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| (Unaudited) |
| | | |
|
| (in thousands except for share data) | | March 31, 2018 | | September 30, 2017 |
| Assets | | | | |
|
Current assets
| | | | |
|
Cash and cash equivalents
| |
$
|
10,349
| | |
$
|
62,616
| |
|
Accounts receivable, net
| |
12,190
| | |
10,148
| |
|
Inventories
| |
105,387
| | |
76,155
| |
|
Other current assets
| |
12,883
|
| |
11,528
|
|
|
Total current assets
| |
$
|
140,809
|
| |
$
|
160,447
|
|
|
Property, plant and equipment, net
| |
38,126
| | |
34,708
| |
| Goodwill | |
18,825
| | |
18,825
| |
|
Intangible assets, net
| |
56,476
| | |
57,481
| |
|
Equity investment in affiliate
| |
11,859
| | |
11,625
| |
|
Deferred tax asset
| |
10,129
| | |
11,755
| |
|
Other assets
| |
991
|
| |
975
|
|
|
Total assets
| |
$
|
277,215
|
| |
$
|
295,816
|
|
| Liabilities and Stockholders' Deficit | | | | |
|
Current liabilities
| | | | |
|
Accounts payable
| |
$
|
96,125
| | |
$
|
87,331
| |
|
Warranty
| |
7,906
| | |
8,573
| |
|
Accrued expenses
| |
12,283
| | |
18,229
| |
|
Deferred warranty income
| |
7,204
| | |
6,776
| |
|
Other current liabilities
| |
6,716
| | |
9,847
| |
|
Current portion of long-term debt
| |
8,000
|
| |
8,000
|
|
|
Total current liabilities
| |
$
|
138,234
|
| |
$
|
138,756
|
|
|
Long-term liabilities
| | | | |
|
Long-term debt
| |
$
|
139,608
| | |
$
|
143,224
| |
|
Warranty
| |
11,377
| | |
12,337
| |
|
Deferred warranty income
| |
13,257
| | |
12,519
| |
|
Other liabilities
| |
15,618
| | |
15,064
| |
|
Pension
| |
29,073
|
| |
32,426
|
|
|
Total long-term liabilities
| |
$
|
208,933
|
| |
$
|
215,570
|
|
|
Stockholders' deficit
| | | | |
|
Preferred stock, $0.0001 par value, 10,000,000 shares authorized,
400,000 issued with liquidation preference of $40,000 at March 31,
2018 and September 30, 2017 | |
$
|
40,000
| | |
$
|
40,000
| |
|
Common stock, $0.0001 par value, 100,000,000 shares authorized,
23,912,188 and 23,739,344 issued and outstanding at March 31, 2018
and September 30, 2017, respectively.
| |
2
| | |
2
| |
|
Additional paid-in capital
| |
38,747
| | |
45,418
| |
|
Accumulated deficit
| |
(106,058
|
)
| |
(100,055
|
)
|
|
Accumulated other comprehensive loss
| |
(42,643
|
)
| |
(43,875
|
)
|
|
Total stockholders' deficit
| |
$
|
(69,952
|
)
| |
$
|
(58,510
|
)
|
|
Total liabilities and stockholders' deficit
| |
$
|
277,215
|
| |
$
|
295,816
|
|
| | | | | | | |
|
|
| |
| |
| BLUE BIRD CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| | | |
|
| | Three Months Ended | | Six Months Ended |
| (in thousands except for share data) | | March 31, 2018 |
| April 1, 2017 | | March 31, 2018 |
| April 1, 2017 |
| Net sales | |
$
|
216,628
| | |
$
|
208,651
| | |
$
|
379,177
| | |
$
|
345,311
| |
|
Cost of goods sold
| |
194,960
|
| |
184,002
|
| |
336,861
|
| |
302,464
|
|
|
Gross profit
| |
$
|
21,668
|
| |
$
|
24,649
|
| |
$
|
42,316
|
| |
$
|
42,847
|
|
| Operating expenses | | | | | | | | |
|
Selling, general and administrative expenses
| |
18,741
|
| |
19,259
|
| |
44,659
|
| |
37,451
|
|
|
Operating profit (loss)
| |
$
|
2,927
| | |
$
|
5,390
| | |
$
|
(2,343
|
)
| |
$
|
5,396
| |
|
Interest expense
| |
(1,826
|
)
| |
(1,715
|
)
| |
(3,278
|
)
| |
(4,403
|
)
|
|
Interest income
| |
2
| | |
6
| | |
17
| | |
13
| |
|
Other income (expense), net
| |
1,020
| | |
(37
|
)
| |
1,190
| | |
(164
|
)
|
|
Loss on debt extinguishment
| |
—
|
| |
—
|
| |
—
|
| |
(10,142
|
)
|
|
Income (loss) before income taxes
| |
$
|
2,123
| | |
$
|
3,644
| | |
$
|
(4,414
|
)
| |
$
|
(9,300
|
)
|
|
Income tax (expense) benefit
| |
(471
|
)
| |
(1,108
|
)
| |
(1,823
|
)
| |
2,564
| |
|
Equity in net income of non-consolidated affiliate
| |
184
|
| |
212
|
|
|
234
|
|
|
961
|
|
| Net income (loss) | |
$
|
1,836
|
| |
$
|
2,748
|
| |
$
|
(6,003
|
)
| |
$
|
(5,775
|
)
|
| | | | | | | |
|
| Earnings per share: | | | | | | | | |
|
Net income (loss) (from above)
| |
$
|
1,836
| | |
$
|
2,748
| | |
$
|
(6,003
|
)
| |
$
|
(5,775
|
)
|
|
Less: preferred stock dividends
| |
763
|
| |
1,017
|
| |
1,533
|
| |
1,970
|
|
|
Net income (loss) available to common stockholders
| |
$
|
1,073
|
| |
$
|
1,731
|
| |
$
|
(7,536
|
)
| |
$
|
(7,745
|
)
|
| | | | | | | |
|
|
Basic weighted average shares outstanding
| |
23,899,772
| | |
23,048,517
| | |
23,911,909
| | |
22,822,416
| |
|
Diluted weighted average shares outstanding
| |
25,127,082
| | |
24,590,905
| | |
23,911,909
| | |
22,822,416
| |
| | | | | | | |
|
|
Basic earnings (loss) per share
| |
$
|
0.04
| | |
$
|
0.08
| | |
$
|
(0.32
|
)
| |
$
|
(0.34
|
)
|
|
Diluted earnings (loss) per share
| |
$
|
0.04
| | |
$
|
0.07
| | |
$
|
(0.32
|
)
| |
$
|
(0.34
|
)
|
| | | | | | | | | | | | | | | |
|
|
| |
| BLUE BIRD CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Unaudited) |
| |
|
| | Six Months Ended |
|
(in thousands of dollars)
| | March 31, 2018 |
| April 1, 2017 |
| Cash flows from operating activities | | | | |
|
Net loss
| |
$
|
(6,003
|
)
| |
$
|
(5,775
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
| | | | |
|
Depreciation and amortization
| |
4,173
| | |
4,101
| |
|
Amortization of debt costs
| |
384
| | |
713
| |
|
Share-based compensation
| |
1,510
| | |
410
| |
|
Equity in net income of affiliate
| |
(234
|
)
| |
(961
|
)
|
|
Loss (gain) on disposal of fixed assets
| |
78
| | |
(46
|
)
|
|
Deferred taxes
| |
1,098
| | |
(2,964
|
)
|
|
Amortization of deferred actuarial pension losses
| |
1,760
| | |
3,145
| |
|
Loss on debt extinguishment
| |
—
| | |
10,142
| |
|
Unrealized gains on foreign currency hedges
| |
(1,036
|
)
| |
—
| |
|
Changes in assets and liabilities:
| | | | |
|
Accounts receivable
| |
(2,042
|
)
| |
13,444
| |
|
Inventories
| |
(29,232
|
)
| |
(56,618
|
)
|
|
Other assets
| |
(335
|
)
| |
(1,112
|
)
|
|
Accounts payable
| |
9,151
| | |
30,961
| |
|
Accrued expenses, pension and other liabilities
| |
(12,329
|
)
| |
(4,765
|
)
|
| Total adjustments | |
$
|
(27,054
|
)
| |
$
|
(3,550
|
)
|
| Total cash used in operating activities | |
$
|
(33,057
|
)
| |
$
|
(9,325
|
)
|
| Cash flows from investing activities | | | | |
|
Cash paid for fixed assets
| |
(7,021
|
)
| |
(5,159
|
)
|
|
Proceeds from sale of fixed assets
| |
—
|
| |
46
|
|
| Total cash used in investing activities | |
$
|
(7,021
|
)
| |
$
|
(5,113
|
)
|
| Cash flows from financing activities | | | | |
|
Repayments under the former senior term loan
| |
$
|
—
| | |
$
|
(161,500
|
)
|
|
Borrowings under new term loan
| |
—
| | |
156,887
| |
|
Repayments under the new term loan
| |
(4,000
|
)
| |
(2,000
|
)
|
|
Cash paid for capital leases
| |
(77
|
)
| |
(79
|
)
|
|
Cash paid for debt issuance costs
| |
—
| | |
(271
|
)
|
|
Cash paid to extinguish debt
| |
—
| | |
(507
|
)
|
|
Payment of dividends on preferred stock
| |
(1,533
|
)
| |
(1,970
|
)
|
|
Cash paid for employee taxes on vested restricted shares and stock
option exercises
| |
(571
|
)
| |
(981
|
)
|
|
Proceeds from exercises of warrants
| |
9,504
| | |
10,982
| |
|
Common stock repurchases under the share repurchase program
| |
(15,512
|
)
| |
—
|
|
| Total cash (used in) provided by financing activities | |
$
|
(12,189
|
)
| |
$
|
561
|
|
| Change in cash and cash equivalents | |
(52,267
|
)
| |
(13,877
|
)
|
| Cash and cash equivalents, beginning of period | |
62,616
|
| |
52,309
|
|
| Cash and cash equivalents, end of period | |
$
|
10,349
|
| |
$
|
38,432
|
|
| | | |
|
| Supplemental disclosures of cash flow information | | | | |
| Cash paid during the period for: | | | | |
|
Interest paid, net of interest received
| |
$
|
2,950
| | |
$
|
3,294
| |
|
Income tax paid, net of tax refunds
| |
3,596
| | |
1,233
| |
| Non-cash investing and financing activities | | | | |
|
Change in accounts payable for capital additions to property, plant
and equipment
| |
$
|
(357
|
)
| |
$
|
(2,178
|
)
|
|
Cashless exercise of stock options
| |
897
| | |
4,124
| |
| | | | | |
|
|
| |
| |
| Reconciliation of Net Income (Loss) to Adjusted EBITDA |
| (Unaudited) |
| | | |
|
| | Three Months Ended | | Six Months Ended |
|
(in thousands of dollars)
| | March 31, 2018 |
| April 1, 2017 | | March 31, 2018 |
| April 1, 2017 |
|
Net income (loss)
| |
$
|
1,836
| | |
$
|
2,748
| | |
$
|
(6,003
|
)
| |
$
|
(5,775
|
)
|
|
Adjustments:
| | | | | | | | |
|
Discontinued operations loss (income)
| |
6
| | |
61
| | |
(81
|
)
| |
188
| |
|
Interest expense, net
| |
1,824
| | |
1,709
| | |
3,261
| | |
4,390
| |
|
Income tax expense
| |
471
| | |
1,108
| | |
1,823
| | |
(2,564
|
)
|
|
Depreciation, amortization, and disposals
| |
2,169
| | |
2,047
| | |
4,280
| | |
4,084
| |
|
Loss on debt extinguishment
| |
—
| | |
—
| | |
—
| | |
10,142
| |
|
Operational transformation initiatives
| |
3,427
| | |
—
| | |
10,385
| | |
—
| |
|
Business combination expenses
| |
—
| | |
—
| | |
—
| | |
(174
|
)
|
|
Unrealized gains on foreign currency hedges
| |
(1,036
|
)
| |
—
| | |
(1,036
|
)
| |
—
| |
|
Share-based compensation
| |
886
| | |
410
| | |
1,510
| | |
410
| |
|
Product redesign initiatives
| |
399
|
| |
282
|
| |
1,139
|
| |
282
|
|
|
Adjusted EBITDA
| |
$
|
9,982
|
| |
$
|
8,365
|
| |
$
|
15,278
|
| |
$
|
10,983
|
|
|
Adjusted EBITDA margin (percentage of net sales)
| |
4.6
|
%
| |
4.0
|
%
| |
4.0
|
%
| |
3.2
|
%
|
| | | | | | | | | | | |
|
|
| |
| |
| Reconciliation of Free Cash Flow to Adjusted Free Cash Flow |
| (Unaudited) |
| | | |
|
| | Three Months Ended | | Six Months Ended |
|
(in thousands of dollars)
| | March 31, 2018 |
| April 1, 2017 | | March 31, 2018 |
| April 1, 2017 |
|
Net cash used in operating activities
| |
$
|
751
| | |
$
|
22,881
| | |
$
|
(33,057
|
)
| |
$
|
(9,325
|
)
|
|
Cash paid for fixed assets
| |
(3,572
|
)
| |
(2,203
|
)
| |
(7,021
|
)
| |
(5,159
|
)
|
|
Free cash flow
| |
$
|
(2,821
|
)
| |
$
|
20,678
|
| |
$
|
(40,078
|
)
| |
$
|
(14,484
|
)
|
|
Cash paid for operational transformation initiatives
| |
(5,711
|
)
| |
—
| | |
(10,385
|
)
| |
—
| |
|
Cash paid for product redesign initiatives
| |
(399
|
)
| |
(282
|
)
| |
(1,139
|
)
| |
(282
|
)
|
|
Cash paid for business combination expenses
| |
—
|
| |
(3,000
|
)
| |
—
|
| |
(3,313
|
)
|
|
Adjusted free cash flow
| |
3,289
|
| |
23,960
|
| |
(28,554
|
)
| |
(10,889
|
)
|
| | | | | | | | | | | |
|
|
| |
| |
| Reconciliation of Net Income (Loss) to Adjusted Net Income |
| (Unaudited) |
| | | |
|
| | Three Months Ended | | Six Months Ended |
|
(in thousands of dollars)
| | March 31, 2018 |
| April 1, 2017 | | March 31, 2018 |
| April 1, 2017 |
|
Net income (loss)
| |
$
|
1,836
| | |
$
|
2,748
| | |
$
|
(6,003
|
)
| |
$
|
(5,775
|
)
|
|
Adjustments, net of tax benefit or expense (1)
| | | | | | | | |
|
Operational transformation initiatives
| |
2,570
| | |
—
| | |
7,789
| | |
—
| |
|
Loss on debt extinguishment
| |
—
| | |
—
| | |
—
| | |
6,491
| |
|
Business combination expenses
| |
—
| | |
—
| | |
—
| | |
(111
|
)
|
|
Unrealized gains on foreign currency hedges
| |
(777
|
)
| |
—
| | |
(777
|
)
| |
—
| |
|
Share-based compensation
| |
665
| | |
262
| | |
1,133
| | |
262
| |
|
Product redesign initiatives
| |
299
| | |
180
| | |
854
| | |
180
| |
|
Discontinued operations loss (income)
| |
5
|
| |
39
|
| |
(61
|
)
| |
120
|
|
|
Adjusted net income, non-GAAP
| |
$
|
4,598
|
| |
$
|
3,230
|
| |
2,935
|
| |
1,168
|
|
|
Less: preferred stock dividends
| |
763
|
| |
1,017
|
| |
1,533
|
| |
1,970
|
|
|
Adjusted net income (loss) available to common stockholders, non-GAAP
| |
$
|
3,835
|
| |
$
|
2,213
|
| |
1,402
|
| |
(802
|
)
|
| | | | | | | | | | | | | | |
(1) Amounts are net of estimated statutory tax rates of 25% for
the three and six months ended March 31, 2018 and 36% for the
three and six months ended April 1, 2017.
| |
|
|
|
| |
| |
| Reconciliation of Diluted EPS to Adjusted Diluted EPS |
| (Unaudited) |
| | | |
|
| | Three Months Ended | | Six Months Ended |
| | March 31, 2018 |
| April 1, 2017 | | March 31, 2018 |
| April 1, 2017 |
|
Diluted earnings (loss) per share
| |
$
|
0.04
| | |
$
|
0.07
| | |
$
|
(0.32
|
)
| |
$
|
(0.34
|
)
|
|
One-time charge adjustments, net of tax benefit or expense
| |
0.11
|
| |
0.02
|
| |
0.38
|
| |
0.30
|
|
|
Adjusted diluted earnings (loss) per share, non-GAAP (1)
| |
$
|
0.15
|
| |
$
|
0.09
|
| |
$
|
0.06
|
| |
$
|
(0.04
|
)
|
|
Weighted average dilutive shares outstanding (2)
| |
25,127,082
| | |
24,590,905
| | |
25,161,770
| | |
22,822,416
| |
| | | | | | | | | | | |
|
|
(1) Numerator is adjusted net income available to common
stockholders, non-GAAP.
|
|
(2) The diluted loss per share calculations for the six months ended
March 31, 2018 excluded 1,249,861 shares as their effect would be
anti-dilutive, but were included in the adjusted diluted earnings
(loss) per share, non-GAAP calculation as their effect was dilutive.
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180510006206/en/
Blue Bird Corporation
Mark Benfield, 478-822-2315
Investor
Relations & Government Affairs
[email protected]
Source: Blue Bird Corporation