MACON, Ga. — Blue Bird Corp. (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 percent from the 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
| (in millions except EPS data) | Three Months Ended March 31, 2018 | B/(W) 2017 |
Six Months Ended March 31, 2018 | B/(W) 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 | |||||||
“We are pleased with our second quarter performance and are well positioned to deliver our full-year targets,” said Phil Horlock, president/CEO of Blue Bird Corp. “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 reaffirm 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 percent, 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 percent 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 percent, 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 percent 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 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 800-263-0877 or 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 Corp.
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.
