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Blue Bird Announces Non-Cash Adjustments to Fiscal 2016 Third Quarter Results
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.
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Form 8-K filed
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Form 10-Q to be
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(in thousands except for share data)
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August 4, 2016
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Adjustments
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filed
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Three Months Ended July 2, 2016
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(unaudited)
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(unaudited)
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(unaudited)
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Selling, general and administrative expenses
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$
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44,150
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|
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$
|
1,355
|
|
|
$
|
45,505
|
|
|
Operating profit
|
|
2,658
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|
|
(1,355
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)
|
|
1,303
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|
|
(Loss) income before income taxes
|
|
(1,375
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)
|
|
(1,355
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)
|
|
(2,730
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)
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Income tax expense
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|
(1,085
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)
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198
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|
|
(887
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)
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Net (loss) income from continuing operations
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(1,764
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)
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|
(1,157
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)
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|
(2,921
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)
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Net (loss) income
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|
(1,777
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)
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|
(1,157
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)
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|
(2,934
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)
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|
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Per Share Amounts
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Basic earnings (loss) per share
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$
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(0.13
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)
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$
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(0.05
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)
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$
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(0.18
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)
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Diluted earnings (loss) per share
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(0.13
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)
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(0.05
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)
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(0.18
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)
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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:
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Inherent limitations of internal controls impacting financial
statements
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Growth opportunities
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Future profitability
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Ability to expand market share
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Customer demand for certain products
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Economic conditions that could affect fuel costs, commodity costs,
industry size and financial conditions of our dealers and suppliers
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Labor or other constraints on the Company’s ability to maintain a
competitive cost structure
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Volatility in the tax base and other funding sources that support the
purchase of buses by our end customers
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Lower or higher than anticipated market acceptance for our products
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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.
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Reconciliation of Adjustments
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Form 8-K filed
|
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|
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Form 10-Q to be
|
|
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(in thousands except for share data)
|
|
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August 4, 2016
|
|
Adjustments
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filed
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(unaudited)
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(unaudited)
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(unaudited)
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Consolidated Statements of Financial Condition
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July 2, 2016
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Deferred tax asset - current
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$
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7,039
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$
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342
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$
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7,381
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Deferred tax asset - long-term
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7,521
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(144
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)
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7,377
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Total Assets
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310,054
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198
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310,252
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Additional paid-in capital
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38,942
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1,355
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40,297
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Accumulated deficit
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(138,476
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)
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(1,157
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)
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(139,633
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)
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Total stockholder's deficit
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(99,249
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)
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|
198
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(99,051
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)
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Total liabilities and stockholder's deficit
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310,054
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|
|
198
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310,252
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|
|
|
|
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October 3, 2015
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|
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Deferred tax asset - long-term
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$
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15,055
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$
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411
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$
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15,466
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Total Assets
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266,314
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|
411
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266,725
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Accumulated deficit
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(135,756
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)
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411
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(135,345
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)
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Total stockholder's deficit
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(121,641
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)
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411
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(121,230
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)
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Total liabilities and stockholder's deficit
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266,314
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411
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266,725
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Consolidated Results of Operations
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Three Months Ended July 2, 2016
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|
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Selling, general and administrative expenses
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$
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44,150
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|
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$
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1,355
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|
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$
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45,505
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|
|
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Operating profit
|
|
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2,658
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|
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(1,355
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)
|
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1,303
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|
|
|
(Loss) income before income taxes
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|
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(1,375
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)
|
|
(1,355
|
)
|
|
(2,730
|
)
|
|
|
Income tax expense
|
|
|
(1,085
|
)
|
|
198
|
|
|
(887
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)
|
|
|
Net (loss) income from continuing operations
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|
|
(1,764
|
)
|
|
(1,157
|
)
|
|
(2,921
|
)
|
|
|
Net (loss) income
|
|
|
(1,777
|
)
|
|
(1,157
|
)
|
|
(2,934
|
)
|
|
|
|
|
|
|
|
|
|
|
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Per Share Amounts
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|
|
|
|
|
|
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|
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Basic earnings (loss) per share
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|
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$
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(0.13
|
)
|
|
$
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(0.05
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)
|
|
$
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(0.18
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)
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|
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Diluted earnings (loss) per share
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|
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(0.13
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)
|
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(0.05
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)
|
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(0.18
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)
|
|
|
|
|
|
|
|
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Nine Months Ended July 2, 2016
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|
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|
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Selling, general and administrative expenses
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$
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79,974
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|
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$
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1,355
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$
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81,329
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Operating profit
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10,701
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|
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(1,355
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)
|
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9,346
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(Loss) income before income taxes
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|
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(1,901
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)
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(1,355
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)
|
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(3,256
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)
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Income tax expense
|
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(2,267
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)
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198
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(2,069
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)
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Net (loss) income from continuing operations
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(2,674
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)
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(1,157
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)
|
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(3,831
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)
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Net (loss) income
|
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(2,720
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)
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(1,157
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)
|
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(3,877
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)
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|
|
|
|
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Per Share Amounts
|
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|
|
|
|
|
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|
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Basic earnings (loss) per share
|
|
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$
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(0.27
|
)
|
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$
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(0.05
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)
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$
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(0.32
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)
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Diluted earnings (loss) per share
|
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(0.27
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)
|
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(0.05
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)
|
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(0.32
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)
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Consolidated Statements of Cash Flows
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Nine Months Ended July 2, 2016
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Net loss
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$
|
(2,720
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)
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$
|
(1,157
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)
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$
|
(3,877
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)
|
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Unfunded portion of Phantom Equity Plan
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—
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1,355
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|
|
1,355
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|
|
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Deferred taxes
|
|
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8,659
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(198
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)
|
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8,461
|
|
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Total adjustments
|
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23,981
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|
|
1,157
|
|
|
25,138
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|
|
|
|
|
|
|
|
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Non-GAAP Measures (1)
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Three Months Ended July 2, 2016
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|
|
|
|
|
|
|
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Special compensation payment (2)
|
|
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$
|
15,757
|
|
|
$
|
1,355
|
|
|
$
|
17,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended July 2, 2016
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|
|
|
|
|
|
|
|
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Special compensation payment (2)
|
|
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$
|
15,757
|
|
|
$
|
1,355
|
|
|
$
|
17,112
|
|
|
|
|
|
|
|
|
|
|
|
|
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(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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160816006285/en/
Copyright Business Wire 2016
Source: Business Wire
(August 16, 2016 - 5:02 PM EDT)
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