FORT VALLEY, Ga.--(BUSINESS WIRE)--Blue Bird Corporation (“Blue Bird”) (Nasdaq: BLBD), the leading independent designer and manufacturer of school buses, announced today that it is adjusting its fiscal 2016 third quarter results that were presented in last week’s earnings press release and conference call.
On August 4, 2016, Blue Bird issued a press release and filed a Form 8-K announcing preliminary financial results for the third quarter and nine months ended July 2, 2016. As noted as a possibility during the earnings conference call, Blue Bird subsequently identified necessary adjustments to the recognition of non-cash compensation expense relating to amounts due but unpaid associated with the Phantom Award Plan participants and the June 2016 change in control transaction. This payment will be funded by a contribution from Blue Bird's former majority stockholder.
The following table presents the impact of the non-cash adjustments to the GAAP operating results for the fiscal 2016 third quarter. Note that the previously reported non-GAAP financial measures do not change as the adjustments only impact the items to reconcile from GAAP to the non-GAAP financial measures. A full reconciliation of adjustments follows this press release.
| Form 8-K filed | Form 10-Q to be | |||||||||||
| (in thousands except for share data) | August 4, 2016 | Adjustments | filed | |||||||||
| Three Months Ended July 2, 2016 | (unaudited) | (unaudited) | (unaudited) | |||||||||
| Selling, general and administrative expenses | $ | 44,150 | $ | 1,355 | $ | 45,505 | ||||||
| Operating profit | 2,658 | (1,355 | ) | 1,303 | ||||||||
| (Loss) income before income taxes | (1,375 | ) | (1,355 | ) | (2,730 | ) | ||||||
| Income tax expense | (1,085 | ) | 198 | (887 | ) | |||||||
| Net (loss) income from continuing operations | (1,764 | ) | (1,157 | ) | (2,921 | ) | ||||||
| Net (loss) income | (1,777 | ) | (1,157 | ) | (2,934 | ) | ||||||
|
Per Share Amounts |
||||||||||||
| Basic earnings (loss) per share | $ | (0.13 | ) | $ | (0.05 | ) | $ | (0.18 | ) | |||
| Diluted earnings (loss) per share | (0.13 | ) | (0.05 | ) | (0.18 | ) | ||||||
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.
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.
| Reconciliation of Adjustments | ||||||||||||||
| Form 8-K filed | Form 10-Q to be | |||||||||||||
| (in thousands except for share data) | August 4, 2016 | Adjustments | filed | |||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||||
| Consolidated Statements of Financial Condition | ||||||||||||||
| July 2, 2016 | ||||||||||||||
| Deferred tax asset - current | $ | 7,039 | $ | 342 | $ | 7,381 | ||||||||
| Deferred tax asset - long-term | 7,521 | (144 | ) | 7,377 | ||||||||||
| Total Assets | 310,054 | 198 | 310,252 | |||||||||||
| Additional paid-in capital | 38,942 | 1,355 | 40,297 | |||||||||||
| Accumulated deficit | (138,476 | ) | (1,157 | ) | (139,633 | ) | ||||||||
| Total stockholder's deficit | (99,249 | ) | 198 | (99,051 | ) | |||||||||
| Total liabilities and stockholder's deficit | 310,054 | 198 | 310,252 | |||||||||||
| October 3, 2015 | ||||||||||||||
| Deferred tax asset - long-term | $ | 15,055 | $ | 411 | $ | 15,466 | ||||||||
| Total Assets | 266,314 | 411 | 266,725 | |||||||||||
| Accumulated deficit | (135,756 | ) | 411 | (135,345 | ) | |||||||||
| Total stockholder's deficit | (121,641 | ) | 411 | (121,230 | ) | |||||||||
| Total liabilities and stockholder's deficit | 266,314 | 411 | 266,725 | |||||||||||
| Consolidated Results of Operations | ||||||||||||||
| Three Months Ended July 2, 2016 | ||||||||||||||
| Selling, general and administrative expenses | $ | 44,150 | $ | 1,355 | $ | 45,505 | ||||||||
| Operating profit | 2,658 | (1,355 | ) | 1,303 | ||||||||||
| (Loss) income before income taxes | (1,375 | ) | (1,355 | ) | (2,730 | ) | ||||||||
| Income tax expense | (1,085 | ) | 198 | (887 | ) | |||||||||
| Net (loss) income from continuing operations | (1,764 | ) | (1,157 | ) | (2,921 | ) | ||||||||
| Net (loss) income | (1,777 | ) | (1,157 | ) | (2,934 | ) | ||||||||
|
Per Share Amounts |
||||||||||||||
| Basic earnings (loss) per share | $ | (0.13 | ) | $ | (0.05 | ) | $ | (0.18 | ) | |||||
| Diluted earnings (loss) per share | (0.13 | ) | (0.05 | ) | (0.18 | ) | ||||||||
| Nine Months Ended July 2, 2016 | ||||||||||||||
| Selling, general and administrative expenses | $ | 79,974 | $ | 1,355 | $ | 81,329 | ||||||||
| Operating profit | 10,701 | (1,355 | ) | 9,346 | ||||||||||
| (Loss) income before income taxes | (1,901 | ) | (1,355 | ) | (3,256 | ) | ||||||||
| Income tax expense | (2,267 | ) | 198 | (2,069 | ) | |||||||||
| Net (loss) income from continuing operations | (2,674 | ) | (1,157 | ) | (3,831 | ) | ||||||||
| Net (loss) income | (2,720 | ) | (1,157 | ) | (3,877 | ) | ||||||||
|
Per Share Amounts |
||||||||||||||
| Basic earnings (loss) per share | $ | (0.27 | ) | $ | (0.05 | ) | $ | (0.32 | ) | |||||
| Diluted earnings (loss) per share | (0.27 | ) | (0.05 | ) | (0.32 | ) | ||||||||
| Consolidated Statements of Cash Flows | ||||||||||||||
| Nine Months Ended July 2, 2016 | ||||||||||||||
| Net loss | $ | (2,720 | ) | $ | (1,157 | ) | $ | (3,877 | ) | |||||
| Unfunded portion of Phantom Equity Plan | — | 1,355 | 1,355 | |||||||||||
| Deferred taxes | 8,659 | (198 | ) | 8,461 | ||||||||||
| Total adjustments | 23,981 | 1,157 | 25,138 | |||||||||||
| Non-GAAP Measures (1) | ||||||||||||||
| Three Months Ended July 2, 2016 | ||||||||||||||
| Special compensation payment (2) | $ | 15,757 | $ | 1,355 | $ | 17,112 | ||||||||
| Nine Months Ended July 2, 2016 | ||||||||||||||
| Special compensation payment (2) | $ | 15,757 | $ | 1,355 | $ | 17,112 | ||||||||
(1) The non-GAAP financial measures do not change as the adjustments
only impact the items to reconcile from GAAP to the non-GAAP financial
measures.
(2) We made a $15.7 million special compensation payment
to the Phantom Award Plan participants, which was primarily funded by a
contribution from our former majority shareholder concurrent with the
change in control transaction in June 2016. An additional $1.4 million
payment remains due, which will also be funded by a contribution from
our former major stockholder.
