|
Record Fourth Quarter Results; Exceeded or Achieved FY2018 Guidance; Announcing FY2019 Guidance with Substantial Profit Growth MACON, Ga.
Fiscal 2018 Full Year GAAP net income of $30.8 million, up $2.0
million, Adjusted EBITDA of $70.4 million, Adjusted Diluted EPS of $1.77
and Adjusted Free Cash Flow of $40.2 million
FY2019 Guidance for Adj. EBITDA of $80-85 million, up 14-21%
Blue Bird Corporation (“Blue Bird”) (Nasdaq: BLBD), the leading
independent designer and manufacturer of school buses, announced today
its fiscal 2018 full year and fourth quarter results. Compared with
prior year, Blue Bird Corporation delivered higher net income, up $2.0
million and $0.4 million, respectively. Blue Bird improved Adjusted
EBITDA by $1.5 million in the full year, to $70.4 million and by $4.1
million in the fourth quarter to $29.1 million, despite significant cost
headwinds from steel and other commodities. Diluted Earnings per Share
was significantly higher than last year, up 34 cents and 24 cents in the
full year and fourth quarter, respectively. On an adjusted basis,
diluted earnings per share was 70 cents and 40 cents higher,
respectively.
Highlights
|
(in millions except EPS data)
|
|
|
Three Months Ended
September 29, 2018
|
|
|
|
|
B/(W)
2017
|
|
|
Fiscal Year Ended
September 29, 2018
|
|
|
|
|
B/(W)
2017
|
|
Unit Sales
|
|
|
|
3,757
|
|
|
|
|
|
149
|
|
|
|
11,649
|
|
|
|
|
|
332
|
|
GAAP Measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
331.6
|
|
|
|
|
$
|
18.9
|
|
|
$
|
1,025.0
|
|
|
|
|
$
|
34.4
|
|
Net Income
|
|
|
$
|
14.9
|
|
|
|
|
$
|
0.4
|
|
|
$
|
30.8
|
|
|
|
|
$
|
2.0
|
|
Diluted Earnings per Share
|
|
|
$
|
0.52
|
|
|
|
|
$
|
0.24
|
|
|
$
|
1.08
|
|
|
|
|
$
|
0.34
|
|
Non-GAAP Measures1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
29.1
|
|
|
|
|
$
|
4.1
|
|
|
$
|
70.4
|
|
|
|
|
$
|
1.5
|
|
Adjusted Net Income
|
|
|
$
|
20.1
|
|
|
|
|
$
|
5.0
|
|
|
$
|
50.6
|
|
|
|
|
$
|
13.5
|
|
Adjusted Diluted Earnings per Share
|
|
|
$
|
0.70
|
|
|
|
|
$
|
0.40
|
|
|
$
|
1.77
|
|
|
|
|
$
|
0.70
|
|
1 Reconciliation to relevant GAAP metrics shown below
|
|
|
“We are pleased with our record fourth quarter and strong full year
performance, as we were able to improve profitability over last year
despite substantial steel cost headwinds,” said Phil Horlock, President
and Chief Executive Officer of Blue Bird Corporation. “We achieved
significant structural cost reductions through our Transformational
Initiatives to improve quality, reduce costs, and increase capacity. We
expect continued gains in FY2019 from the implementation of these
initiatives as well as the pricing we took to offset rapidly-increasing
commodity costs late in FY2018. We are on track to achieve our Adjusted
EBITDA margin target of 10%+ by FY2020. In support of this target, we
are pleased to announce our FY2019 full-year revenue guidance of $990 -
$1,025 million and Adjusted EBITDA guidance of $80 - 85 million.
“Blue Bird is once again the first major OEM to offer new,
industry-leading alternative-fuel products this year, with our
all-electric school bus and our ultra-low NOx propane bus, and most
recently, our ultra-low NOx CNG Type C bus. Our product leadership focus
continues to be the design of differentiated and innovative products
that customers want and value, as demonstrated by our continued growth
in alternative-fuel bus sales. These buses accounted for 38% of our
total sales this year, representing a 4 pt. increase over last year, and
a 70% market share in the fastest growing segment of the school bus
market.
“Despite the significant capital investments that we made this year, we
continue to generate positive cash flow, with net cash provided by
operating activities of $48.4 million and Adjusted Free Cash Flow of
40.2 million. As we look to fiscal 2019, we are projecting full year
Adjusted Free Cash Flow of $24 - $28 million as we continue to invest in
new products and our production facility, led by our all-new robotic
paint shop, which we expect to complete in mid-2019.”
Fourth Quarter 2018 Results
Net Sales
Net sales were $331.6 million for the fourth
quarter of fiscal 2018, an increase of $18.9 million, or 6.1%, from
prior year period. Bus unit sales were 3,757 units for the quarter
compared with 3,608 units for the same period last year.
Gross Profit
Fourth quarter gross profit of $42.7 million
represented an increase of $3.2 million from the fourth quarter of last
year, with gross margins 30 basis points higher than a year ago, despite
higher steel and other commodity prices.
Net Income
Net income was $14.9 million for the fourth
quarter of fiscal 2018, an increase of $0.4 million compared with the
same period last year.
Adjusted Net Income
Adjusted Net Income was $20.1 million,
representing an increase of $5.0 million compared with the same period
last year.
Adjusted EBITDA
Adjusted EBITDA was $29.1 million,
representing an increase of $4.1 million compared with the fourth
quarter of the prior year and our best fourth quarter result in more
than ten years.
Full Year 2018 Results
Net Sales
Net sales were $1.025 billion for the fiscal year
ended September 29, 2018, an increase of $34.4 million, or 3.5%,
compared with the prior year. This was primarily driven by higher bus
unit sales, which were 332 units above the same period last year.
Achieving more than $1 billion in net sales was a new milestone for Blue
Bird.
Gross Profit
Full year gross profit was $122.0 million, a
decrease of $5.4 million from the prior year.
Net Income
Net income was $30.8 million for the fiscal year
ended September 29, 2018, which was $2.0 million above the same period
in the prior year. The increase was primarily driven by a decrease of
$14.5 million in income taxes and a debt extinguishment charge of $10.1
million in the prior year that was not recurring. These were partially
offset by an increase of $15.9 million in selling, general and
administrative expenses, primarily reflecting non-recurring costs to
deliver our Transformational Initiatives, and a decrease of $5.4 million
in gross profit.
Adjusted Net Income
Adjusted Net Income was $50.6 million,
representing an increase of $13.5 million compared with the prior year.
Adjusted EBITDA
Adjusted EBITDA was $70.4 million for the
fiscal year ended September 29, 2018, an increase of $1.5 million from
the prior year, despite major cost headwinds for steel and other
commodities.
Conference Call Details
Blue Bird will discuss its fourth 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 1-866-548-4713 or
1-323-794-2093
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 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,”
“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, as well as non-recurring charges such as (i)
significant product design changes; (ii) transaction related costs; or
(iii) discrete expenses related to major cost cutting initiatives. We
believe these expenses are non-recurring charges and 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 is net income as adjusted to add back certain costs as mentioned
above. Adjusted diluted earnings per share represents Adjusted Net
Income available to common stockholders 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, 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, 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 non-recurring charges as
outlined in the preceding paragraph. We believe 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 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 an 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, 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, 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, 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 operating
activities minus cash paid for fixed assets. We define adjusted free
cash flow as free cash flow minus cash paid for (i) significant product
design changes; (ii) transaction related costs; or (iii) discrete
expenses related to major cost cutting initiatives. 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 are a necessary component of
ongoing operations. In limited circumstances in which proceeds from
sales of fixed assets exceed purchases, free cash flow would exceed cash
flow from operating activities. However, since we do not anticipate
being a net seller of fixed assets, we expect free cash flow to be less
than cash flows from operating activities.
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 (including tariffs) 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.
Forward-looking statements in this document also may include, but are
not limited to, statements regarding the pricing of the share
repurchase, the potential tender offer by Blue Bird for shares of its
common stock, and the benefits and timing of any potential tender offer.
Many risks, contingencies and uncertainties could cause actual results
to differ materially from Blue Bird’s forward-looking statements. Among
these factors are the risk that Blue Bird may decide not to commence the
tender offer, and that if Blue Bird does commence a tender offer, that
the offer may not be completed.
|
|
|
BLUE BIRD CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|
|
|
(in thousands except for share data)
|
|
|
September 29, 2018
|
|
|
September 30, 2017
|
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
60,260
|
|
|
|
$
|
62,616
|
|
|
Accounts receivable, net
|
|
|
24,067
|
|
|
|
10,148
|
|
|
Inventories
|
|
|
57,333
|
|
|
|
76,155
|
|
|
Other current assets
|
|
|
8,183
|
|
|
|
11,528
|
|
|
Total current assets
|
|
|
$
|
149,843
|
|
|
|
$
|
160,447
|
|
|
Property, plant and equipment, net
|
|
|
66,054
|
|
|
|
34,708
|
|
|
Goodwill
|
|
|
18,825
|
|
|
|
18,825
|
|
|
Intangible assets, net
|
|
|
55,472
|
|
|
|
57,481
|
|
|
Equity investment in affiliate
|
|
|
11,123
|
|
|
|
11,625
|
|
|
Deferred tax asset
|
|
|
4,437
|
|
|
|
11,755
|
|
|
Other assets
|
|
|
1,676
|
|
|
|
975
|
|
|
Total assets
|
|
|
$
|
307,430
|
|
|
|
$
|
295,816
|
|
|
Liabilities and Stockholders’ Deficit
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
95,780
|
|
|
|
$
|
87,331
|
|
|
Warranty
|
|
|
9,142
|
|
|
|
8,573
|
|
|
Accrued expenses
|
|
|
21,935
|
|
|
|
18,229
|
|
|
Deferred warranty income
|
|
|
8,159
|
|
|
|
6,776
|
|
|
Other current liabilities
|
|
|
3,941
|
|
|
|
9,847
|
|
|
Current portion of long-term debt
|
|
|
9,900
|
|
|
|
8,000
|
|
|
Total current liabilities
|
|
|
$
|
148,857
|
|
|
|
$
|
138,756
|
|
|
Long-term liabilities
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
$
|
132,239
|
|
|
|
$
|
143,224
|
|
|
Warranty
|
|
|
13,504
|
|
|
|
12,337
|
|
|
Deferred warranty income
|
|
|
15,032
|
|
|
|
12,519
|
|
|
Deferred tax liabilities
|
|
|
197
|
|
|
|
—
|
|
|
Other liabilities
|
|
|
4,924
|
|
|
|
15,064
|
|
|
Pension
|
|
|
21,013
|
|
|
|
32,426
|
|
|
Total long-term liabilities
|
|
|
$
|
186,909
|
|
|
|
$
|
215,570
|
|
|
Stockholders’ deficit
|
|
|
|
|
|
|
|
Preferred stock, $0.0001 par value, 10,000,000 shares authorized,
93,000 issued with liquidation preference of $9,300 at September 29,
2018 and 400,000 issued with liquidation preference of $40,000 at
September 30, 2017
|
|
|
$
|
9,300
|
|
|
|
$
|
40,000
|
|
|
Common stock, $0.0001 par value, 100,000,000 shares authorized,
27,259,262 and 23,739,344 issued and outstanding at September 29,
2018 and September 30, 2017, respectively.
|
|
|
3
|
|
|
|
2
|
|
|
Additional paid-in capital
|
|
|
70,023
|
|
|
|
45,418
|
|
|
Accumulated deficit
|
|
|
(69,235
|
)
|
|
|
(100,055
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(38,427
|
)
|
|
|
(43,875
|
)
|
|
Total stockholders’ deficit
|
|
|
$
|
(28,336
|
)
|
|
|
$
|
(58,510
|
)
|
|
Total liabilities and stockholders’ deficit
|
|
|
$
|
307,430
|
|
|
|
$
|
295,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLUE BIRD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
|
(in thousands except for share data)
|
|
|
September 29, 2018
|
|
|
September 30, 2017
|
|
|
September 29, 2018
|
|
|
September 30, 2017
|
|
Net sales
|
|
|
$
|
331,613
|
|
|
|
$
|
312,687
|
|
|
|
$
|
1,024,976
|
|
|
|
$
|
990,602
|
|
|
Cost of goods sold
|
|
|
288,914
|
|
|
|
273,176
|
|
|
|
902,988
|
|
|
|
863,234
|
|
|
Gross profit
|
|
|
$
|
42,699
|
|
|
|
$
|
39,511
|
|
|
|
$
|
121,988
|
|
|
|
$
|
127,368
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
23,146
|
|
|
|
19,049
|
|
|
|
88,755
|
|
|
|
72,831
|
|
|
Operating profit
|
|
|
$
|
19,553
|
|
|
|
$
|
20,462
|
|
|
|
$
|
33,233
|
|
|
|
$
|
54,537
|
|
|
Interest expense
|
|
|
(1,549
|
)
|
|
|
(1,450
|
)
|
|
|
(6,661
|
)
|
|
|
(7,251
|
)
|
|
Interest income
|
|
|
28
|
|
|
|
77
|
|
|
|
70
|
|
|
|
140
|
|
|
Other (expense) income, net
|
|
|
(753
|
)
|
|
|
275
|
|
|
|
231
|
|
|
|
66
|
|
|
Loss on debt extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(10,142
|
)
|
|
Income before income taxes
|
|
|
$
|
17,279
|
|
|
|
$
|
19,364
|
|
|
|
$
|
26,873
|
|
|
|
$
|
37,350
|
|
|
Income tax (expense) benefit
|
|
|
(3,042
|
)
|
|
|
(6,130
|
)
|
|
|
2,620
|
|
|
|
(11,856
|
)
|
|
Equity in net income of non-consolidated affiliate
|
|
|
695
|
|
|
|
1,310
|
|
|
|
1,327
|
|
|
|
3,307
|
|
|
Net income
|
|
|
$
|
14,932
|
|
|
|
$
|
14,544
|
|
|
|
$
|
30,820
|
|
|
|
$
|
28,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (from above)
|
|
|
$
|
14,932
|
|
|
|
$
|
14,544
|
|
|
|
$
|
30,820
|
|
|
|
$
|
28,801
|
|
|
Less: preferred stock dividends
|
|
|
181
|
|
|
|
1,317
|
|
|
|
1,896
|
|
|
|
4,261
|
|
|
Less: preferred stock repurchase
|
|
|
—
|
|
|
|
6,091
|
|
|
|
—
|
|
|
|
6,091
|
|
|
Net income available to common stockholders
|
|
|
$
|
14,751
|
|
|
|
$
|
7,136
|
|
|
|
$
|
28,924
|
|
|
|
$
|
18,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
27,029,354
|
|
|
|
24,070,033
|
|
|
|
25,259,595
|
|
|
|
23,343,772
|
|
|
Diluted weighted average shares outstanding
|
|
|
28,579,670
|
|
|
|
25,466,321
|
|
|
|
28,616,862
|
|
|
|
24,877,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
$
|
0.55
|
|
|
|
$
|
0.30
|
|
|
|
$
|
1.15
|
|
|
|
$
|
0.79
|
|
|
Diluted earnings per share
|
|
|
$
|
0.52
|
|
|
|
$
|
0.28
|
|
|
|
$
|
1.08
|
|
|
|
$
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLUE BIRD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
Fiscal Year Ended
|
|
(in thousands of dollars)
|
|
|
September 29, 2018
|
|
|
September 30, 2017
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
30,820
|
|
|
|
$
|
28,801
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
9,042
|
|
|
|
8,180
|
|
|
Amortization of debt costs
|
|
|
771
|
|
|
|
1,107
|
|
|
Share-based compensation
|
|
|
2,628
|
|
|
|
1,270
|
|
|
Equity in net income of affiliate
|
|
|
(1,327
|
)
|
|
|
(3,307
|
)
|
|
Loss (gain) on disposal of fixed assets
|
|
|
114
|
|
|
|
(33
|
)
|
|
Deferred taxes
|
|
|
5,655
|
|
|
|
(1,202
|
)
|
|
Amortization of deferred actuarial pension losses
|
|
|
3,521
|
|
|
|
6,291
|
|
|
Loss on debt extinguishment
|
|
|
—
|
|
|
|
10,142
|
|
|
Unrealized gains on foreign currency hedges
|
|
|
(109
|
)
|
|
|
—
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(13,920
|
)
|
|
|
10,167
|
|
|
Inventories
|
|
|
17,786
|
|
|
|
(22,349
|
)
|
|
Other assets
|
|
|
2,755
|
|
|
|
(5,469
|
)
|
|
Accounts payable
|
|
|
3,096
|
|
|
|
8,404
|
|
|
Accrued expenses, pension and other liabilities
|
|
|
(14,307
|
)
|
|
|
1,013
|
|
|
Dividend from equity investment in affiliate
|
|
|
1,828
|
|
|
|
4,626
|
|
|
Total adjustments
|
|
|
$
|
17,533
|
|
|
|
$
|
18,840
|
|
|
Total cash provided by operating activities
|
|
|
$
|
48,353
|
|
|
|
$
|
47,641
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Cash paid for fixed assets
|
|
|
(32,118
|
)
|
|
|
(9,252
|
)
|
|
Proceeds from sale of fixed assets
|
|
|
14
|
|
|
|
48
|
|
|
Total cash used in investing activities
|
|
|
$
|
(32,104
|
)
|
|
|
$
|
(9,204
|
)
|
|
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
|
|
|
(7,850
|
)
|
|
|
(6,000
|
)
|
|
Cash paid for capital leases
|
|
|
(158
|
)
|
|
|
(155
|
)
|
|
Cash paid for debt issuance costs
|
|
|
(2,006
|
)
|
|
|
(299
|
)
|
|
Cash paid to extinguish debt
|
|
|
—
|
|
|
|
(507
|
)
|
|
Payment of dividends on preferred stock
|
|
|
(1,896
|
)
|
|
|
(4,261
|
)
|
|
Cash paid for employee taxes on vested restricted shares and stock
option exercises
|
|
|
(2,211
|
)
|
|
|
(1,013
|
)
|
|
Proceeds from exercises of warrants
|
|
|
22,102
|
|
|
|
23,045
|
|
|
Common stock, preferred stock, and warrant repurchases under the
share repurchase program
|
|
|
(26,586
|
)
|
|
|
(34,327
|
)
|
|
Total cash used in financing activities
|
|
|
$
|
(18,605
|
)
|
|
|
$
|
(28,130
|
)
|
|
Change in cash and cash equivalents
|
|
|
(2,356
|
)
|
|
|
10,307
|
|
|
Cash and cash equivalents, beginning of year
|
|
|
62,616
|
|
|
|
52,309
|
|
|
Cash and cash equivalents, end of year
|
|
|
$
|
60,260
|
|
|
|
$
|
62,616
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information
|
|
|
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
|
|
|
Interest paid, net of interest received
|
|
|
$
|
5,782
|
|
|
|
$
|
6,081
|
|
|
Income tax paid, net of tax refunds
|
|
|
3,673
|
|
|
|
8,420
|
|
|
Non-cash investing and financing activities
|
|
|
|
|
|
|
|
Change in accounts payable for capital additions to property, plant
and equipment
|
|
|
$
|
6,389
|
|
|
|
$
|
(1,719
|
)
|
|
Cashless exercise of stock options
|
|
|
3,570
|
|
|
|
4,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted EBITDA
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
|
(in thousands of dollars)
|
|
|
September 29, 2018
|
|
|
September 30, 2017
|
|
|
September 29, 2018
|
|
|
September 30, 2017
|
|
Net income
|
|
|
$
|
14,932
|
|
|
|
$
|
14,544
|
|
|
|
$
|
30,820
|
|
|
|
$
|
28,801
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations income
|
|
|
—
|
|
|
|
(287
|
)
|
|
|
(81
|
)
|
|
|
(65
|
)
|
|
Interest expense, net
|
|
|
1,521
|
|
|
|
1,373
|
|
|
|
6,591
|
|
|
|
7,111
|
|
|
Income tax expense (benefit)
|
|
|
3,042
|
|
|
|
6,130
|
|
|
|
(2,620
|
)
|
|
|
11,856
|
|
|
Depreciation, amortization, and disposals
|
|
|
2,731
|
|
|
|
2,099
|
|
|
|
9,214
|
|
|
|
8,205
|
|
|
Loss on debt extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10,142
|
|
|
Operational transformation initiatives
|
|
|
4,161
|
|
|
|
—
|
|
|
|
17,708
|
|
|
|
—
|
|
|
Unrealized losses (gains) on foreign currency hedges
|
|
|
719
|
|
|
|
—
|
|
|
|
(109
|
)
|
|
|
—
|
|
|
Share-based compensation
|
|
|
248
|
|
|
|
366
|
|
|
|
2,628
|
|
|
|
1,270
|
|
|
Product redesign initiatives
|
|
|
1,727
|
|
|
|
828
|
|
|
|
6,253
|
|
|
|
1,758
|
|
|
Other
|
|
|
29
|
|
|
|
—
|
|
|
|
(25
|
)
|
|
|
(174
|
)
|
|
Adjusted EBITDA
|
|
|
$
|
29,110
|
|
|
|
$
|
25,053
|
|
|
|
$
|
70,379
|
|
|
|
$
|
68,904
|
|
|
Adjusted EBITDA margin (percentage of net sales)
|
|
|
8.8
|
%
|
|
|
8.0
|
%
|
|
|
6.9
|
%
|
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow to Adjusted Free Cash Flow
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
|
(in thousands of dollars)
|
|
|
September 29, 2018
|
|
|
September 30, 2017
|
|
|
September 29, 2018
|
|
|
September 30, 2017
|
|
Net cash provided by operating activities
|
|
|
$
|
41,331
|
|
|
|
$
|
41,890
|
|
|
|
$
|
48,353
|
|
|
|
$
|
47,641
|
|
|
Cash paid for fixed assets
|
|
|
(16,546
|
)
|
|
|
(2,059
|
)
|
|
|
(32,118
|
)
|
|
|
(9,252
|
)
|
|
Free cash flow
|
|
|
$
|
24,785
|
|
|
|
$
|
39,831
|
|
|
|
$
|
16,235
|
|
|
|
$
|
38,389
|
|
|
Cash paid for product redesign initiatives
|
|
|
(1,727
|
)
|
|
|
(828
|
)
|
|
|
(6,253
|
)
|
|
|
(1,758
|
)
|
|
Cash paid for operational transformation initiatives
|
|
|
(4,161
|
)
|
|
|
—
|
|
|
|
(17,708
|
)
|
|
|
—
|
|
|
Cash paid for other
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,313
|
)
|
|
Adjusted free cash flow
|
|
|
30,673
|
|
|
|
40,659
|
|
|
|
40,196
|
|
|
|
43,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted Net Income
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
|
(in thousands of dollars)
|
|
|
September 29, 2018
|
|
|
September 30, 2017
|
|
|
September 29, 2018
|
|
|
September 30, 2017
|
|
Net income
|
|
|
$
|
14,932
|
|
|
|
$
|
14,544
|
|
|
|
$
|
30,820
|
|
|
|
$
|
28,801
|
|
|
Adjustments, net of tax benefit or expense (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operational transformation initiatives
|
|
|
3,121
|
|
|
|
—
|
|
|
|
13,281
|
|
|
|
—
|
|
|
Product initiatives
|
|
|
1,295
|
|
|
|
530
|
|
|
|
4,690
|
|
|
|
1,125
|
|
|
Loss on debt extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,491
|
|
|
Unrealized losses (gains) on foreign currency hedges
|
|
|
539
|
|
|
|
—
|
|
|
|
(82
|
)
|
|
|
—
|
|
|
Share-based compensation
|
|
|
186
|
|
|
|
234
|
|
|
|
1,971
|
|
|
|
813
|
|
|
Discontinued operations income
|
|
|
—
|
|
|
|
(184
|
)
|
|
|
(61
|
)
|
|
|
(42
|
)
|
|
Other
|
|
|
22
|
|
|
|
—
|
|
|
|
(19
|
)
|
|
|
(111
|
)
|
|
Adjusted net income, non-GAAP
|
|
|
$
|
20,095
|
|
|
|
$
|
15,124
|
|
|
|
50,601
|
|
|
|
37,077
|
|
|
Less: preferred stock dividends
|
|
|
181
|
|
|
|
1,317
|
|
|
|
1,896
|
|
|
|
4,261
|
|
|
Less: premium paid on preferred stock
|
|
|
—
|
|
|
|
6,091
|
|
|
|
—
|
|
|
|
6,091
|
|
|
Adjusted net income available to common stockholders, non-GAAP
|
|
|
$
|
19,914
|
|
|
|
$
|
7,716
|
|
|
|
48,705
|
|
|
|
26,725
|
|
____________________
(1) Amounts are net of estimated statutory tax rates of 25% for the
three months and fiscal year ended September 29, 2018 and 36% for the
three months and fiscal year ended September 30, 2017.
|
|
|
Reconciliation of Diluted EPS to Adjusted Diluted EPS
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
|
|
|
|
September 29, 2018
|
|
|
September 30, 2017
|
|
|
September 29, 2018
|
|
|
September 30, 2017
|
|
Diluted earnings per share
|
|
|
$
|
0.52
|
|
|
|
$
|
0.28
|
|
|
|
$
|
1.08
|
|
|
|
$
|
0.74
|
|
One-time charge adjustments, net of tax benefit or expense
|
|
|
0.18
|
|
|
|
0.02
|
|
|
|
0.69
|
|
|
|
0.33
|
|
Adjusted diluted earnings per share, non-GAAP (1)
|
|
|
$
|
0.70
|
|
|
|
$
|
0.30
|
|
|
|
$
|
1.77
|
|
|
|
$
|
1.07
|
|
Weighted average dilutive shares outstanding
|
|
|
28,579,670
|
|
|
|
25,466,321
|
|
|
|
28,616,862
|
|
|
|
24,877,729
|
____________________
(1) Numerator is adjusted net income, non-GAAP for the three months and
fiscal year ended 2018. Numerator is net income available to common
stockholders, non-GAAP for the three months and fiscal year ended 2017.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181206005939/en/ Copyright Business Wire 2018
Source: Business Wire
(December 6, 2018 - 4:00 PM EST)
News by QuoteMedia
www.quotemedia.com
|
