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Blue Bird Delivers Strong Fiscal 2018 First Quarter Financial Performance; Increases Full Year Guidance

Staff Report From Middle Georgia CEO

Thursday, February 8th, 2018

Blue Bird Corporation, the leading independent designer and manufacturer of school buses, announced its fiscal 2018 first quarter results.

First Quarter Highlights

  • Bus sales for the quarter totaled 1,705 buses, 212 units (or 14%) higher than the same period last year.

  • Net sales for the first quarter of $162.5 million, $25.9 million (or 19%) higher than the same period last year.

  • First quarter net loss was $(7.8) million, an improvement of $0.7 million compared with the same period last year.

  • First quarter GAAP diluted earnings per share of $(0.36), was an improvement of $0.06 compared with the same period last year. Adjusted Diluted Earnings per Share was $(0.10) for the first quarter, an improvement of $0.03.

  • First quarter Adjusted EBITDA1 of $5.3 million was up $2.7 million compared with the same period last year.

  • First quarter net cash provided by operating activities was $(33.8) million, $1.6 million better than the same period last year. Adjusted Free Cash Flow1 for first quarter was $31.8 million, an improvement of $3.0 million compared with the first quarter of last year.

  • Net debt as of December 30, 2017 was $126.2 million, $17.5 million (or 12.2%) lower than the same time last year.

  • Gross margin in the quarter was 12.7%, down 60 bps. from last year.

  • Increasing full-year fiscal 2018 net sales guidance to $1,010 million - $1,040 million, Adjusted EBITDA guidance to $80 - $85 million and Adjusted Free Cash Flow guidance to $40 - $45 million.

         
(in millions except EPS data)  

Three Months Ended
December 30, 2017

  

B/(W)
2017
Unit Sales     1,705       212
GAAP Measures:        
Revenue   $ 162.5     $ 25.9
Net Income   $ (7.8 )   $ 0.7
Diluted Earnings per Share   $ (0.36 )   $ 0.06
Non-GAAP Measures1:        
Adjusted EBITDA   $ 5.3     $ 2.7
Adjusted Net Loss   $ (1.7 )   $ 0.4
Adjusted Diluted Earnings per Share   $ (0.10 )   $ 0.03

1 Reconciliation to relevant GAAP metrics shown below
               

“We are pleased with our first quarter performance, with improvements in nearly all aspects of the business,” said Phil Horlock, President and Chief Executive Officer of Blue Bird Corporation. “We are excited about the investments we are making to improve quality, reduce cost and increase capacity, which will drive higher profitability and margins. 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. We are pleased to announce that we are raising our full-year fiscal 2018 net revenue guidance to $1,010 million - $1,040 million, Adjusted EBITDA guidance to $80 - $85 million and Adjusted Free Cash Flow guidance to $40 - $45 million.”

First Quarter 2018 Results

Net Sales

Total net sales were $162.5 million for the first quarter of fiscal 2018, an increase of $25.9 million, or 18.9%, from prior year period. Bus unit sales were 1,705 units for the quarter compared with 1,493 units for the same period last year.

Gross Profit

First quarter gross profit of $20.6 million represents an increase of $2.5 million from the first quarter of last year.

Net Income/Loss

Net loss was $7.8 million for the first quarter of fiscal 2018, an increase of $0.7 million compared with the same period last year.

Adjusted Net Income/Loss

Adjusted Net Loss was $1.7 million, representing an improvement of $0.4 million compared with the same period last year.

Adjusted EBITDA

Adjusted EBITDA was $5.3 million, or 3.3% of net sales, representing an increase of $2.7 million compared with the first quarter of the prior year.