MACON, Ga. — Blue Bird Corp. (NASDAQ: BLBD), the leading independent designer and manufacturer of school buses, announced today its fiscal 2019 full-year and fourth-quarter results. GAAP net income for the fourth quarter and full-year were $11.6 million and $24.3 million, respectively.
Compared with prior periods, Blue Bird improved Adjusted EBITDA by $4.3 million to $33.4 million in the fourth quarter and by $11.5 million to $81.8 million in the full year, despite higher commodity costs and lower volume. Diluted EPS and Adjusted Diluted EPS are down 9 cents and up 4 cents for the quarter, and down $0.18 and $0.16 for the full year. The full-year decline is more than explained by a one-time tax benefit recorded in FY2018.
“We are very pleased with both our fourth quarter and full-year performance, breaking 10+ year records for profits in both time periods,” said Phil Horlock, president and CEO of Blue Bird Corp. “The annual bus pricing implemented in late fiscal 2018 to offset rapidly-increasing commodity costs, and a record 48 percent mix of alternative-fueled bus sales, contributed to an increase in net revenue per bus of nearly $4,000 in the full year. We also achieved significant structural cost reductions from the Transformational Initiatives program that we started last year. We expect continued gains through FY2020 and beyond from the continued focus on the ongoing implementation of these plans. We are pleased to announce increased net revenue and profit outlook for FY2020 with full-year revenue guidance at $1,020-$1,050 million and Adjusted EBITDA guidance at $90-$95 million.”
Horlock added, “We are focused on delivering differentiated and innovative products that customers want and value, as demonstrated by our continued growth in alternative-fueled bus sales. I am particularly pleased with our Propane success in FY2019, where, seven years after we launched this product, our sales grew by more than 40 percent over last year. With the industry’s broadest range of alternative-fueled school buses, offered at the lowest-emission levels, we are the clear product and sales leader in the fastest-growing segment of the business.
“While making investments in our production facility through FY2020 to drive productivity and quality, we will continue to generate positive cash flow with Adjusted Free Cash Flow guidance at $30-$35 million.”
Fiscal 2019 Fourth Quarter Results
Net Sales
Net sales were $343.5 million for the fourth quarter of fiscal 2019, an increase of $11.9 million, or 3.6 percent, from the prior-year period. Bus unit sales were 3,726 units for the quarter compared with 3,757 units for the same period last year.
Gross Profit
Fourth-quarter gross profit of $46.6 million represented an increase of $3.9 million from the fourth quarter of last year. The gross profit margin improved 0.7 points to 13.6 percent.
Net Income
Net income was $11.6 million for the fourth quarter of fiscal 2019, representing a decrease in profit of $3.3 million compared with the same period last year, more than accounted for by the nonrecurrence of tax benefits realized in the third quarter of FY2018.
Adjusted Net Income
Adjusted Net Income was $20.0 million, representing a decrease of $0.1 million compared with the same period last year.
Adjusted EBITDA
Adjusted EBITDA was $33.4 million, representing an increase of $4.3 million compared with the fourth quarter last year. Bus pricing and cost reductions more than offset the impact of commodity-cost headwinds and lower volume.
Full Year 2019 Results
Net Sales
Net sales were $1.02 billion for the fiscal year ended September 28, 2019, a decrease of $6.1 million, or 0.6 percent, compared with the prior year. Bus unit sales were 11,017 units for the fiscal year ended September 28, 2019, compared with 11,649 units for the same period last year.
Gross Profit
Year-to-date gross profit was $133.5 million, an increase of $11.5 million from the prior year.
Net Income
Net income was $24.3 million for the fiscal year ended September 28, 2019, which was $6.5 million below the same period in the prior year.
Adjusted Net Income
Year-to-date Adjusted Net Income was $43.5 million, representing a decrease of $7.1 million compared with the prior year. The decline is more than accounted for by the non-recurrence of tax benefits realized in the third quarter of FY2018.
Adjusted EBITDA
Adjusted EBITDA was $81.8 million for the fiscal year ended September 28, 2019, an increase of $11.5 million over the prior year.
Conference Call Details
Blue Bird will discuss its fourth quarter 2019 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 866-548-4713 or 323-794-2093
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 Corp.
Blue Bird is the leading independent designer and manufacturer of school buses, with more than 570,000 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, Ga. Its Micro Bird joint venture operates a manufacturing facility in Drummondville, Queb. Canada. Service and after-market parts are distributed from Blue Bird’s parts distribution center located in Delaware, Ohio.
