GAAP net loss $(0.7) million,
GAAP Diluted EPS of $(0.03)
Adjusted
EBITDA of $12.2 million, up $2.2 million from prior year
Adjusted
Diluted EPS of $0.15, same as prior year
FY2019 Guidance
Reaffirmed
MACON, Ga.–(BUSINESS WIRE)–Blue Bird Corporation (“Blue Bird”) (Nasdaq: BLBD), the leading
independent designer and manufacturer of school buses, announced today
its fiscal 2019 second quarter results. Compared with prior year, Blue
Bird improved Adjusted EBITDA by $2.2 million, or 22%, in the quarter to
$12.2 million, despite higher commodity costs and lower volume. Diluted
EPS was slightly lower than last year, down 7 cents. Adjusted Diluted
EPS was the same as last year.
|
Highlights |
||||||||||||||||||||
| (in millions except EPS data) |
Three Months Ended March 30, 2019 |
B/(W) 2018 |
Six Months Ended March 30, 2019 |
B/(W) 2018 |
||||||||||||||||
| Unit Sales | 2,271 | (170 | ) | 3,871 | (275 | ) | ||||||||||||||
| GAAP Measures: | ||||||||||||||||||||
| Revenue | $ | 211.6 | $ | (5.0 | ) | $ | 366.6 | $ | (12.6 | ) | ||||||||||
| Net loss | $ | (0.7 | ) | $ | (2.5 | ) | $ | (1.9 | ) | $ | 4.1 | |||||||||
| Diluted loss per share | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.07 | ) | $ | 0.24 | |||||||||
| Non-GAAP Measures1: | ||||||||||||||||||||
| Adjusted EBITDA | $ | 12.2 | $ | 2.2 | $ | 19.4 | $ | 2.3 | ||||||||||||
| Adjusted Net Income | $ | 3.9 | $ | (0.7 | ) | $ | 5.2 | $ | 0.9 | |||||||||||
| Adjusted Diluted Earnings per Share | $ | 0.15 | $ | — | $ | 0.19 | $ | 0.07 | ||||||||||||
|
1 Reconciliation to relevant GAAP metrics shown below |
||||||||||||||||||||
“We are pleased with our second quarter performance and our continued
progress in key areas of the business,” said Phil Horlock, President and
Chief Executive Officer of Blue Bird Corporation. “The bus pricing we
took in late fiscal 2018 to offset rapidly-increasing commodity costs
has taken hold as expected, resulting in a 4% increase in net revenue
per bus in the second quarter, compared with last year. We achieved
significant structural cost reductions from the Transformational
Initiatives we started last year, and expect continued gains through
FY2019 from the implementation of these plans. The lower volume was
unfortunate with one supplier hitting us with parts shortages late in
the quarter. This left us short of 182 buses in the second quarter,
worth about $2 million profit, which we will now book in the third
quarter. We are pleased to reaffirm our FY2019 full-year revenue
guidance of $990 – $1,025 million and Adjusted EBITDA guidance of $80 –
85 million.
“We are focused on delivering differentiated and innovative products
that customers want and value, as demonstrated by our continued growth
in alternative-fuel bus sales. Our year-to-date bookings and firm order
backlog in this segment are 24% above last year, representing a record
46% mix of our total sales and backlog. With the broadest range of
alternative-fuel school bus offerings in the market, offered at the
lowest emission levels, we are the clear product and sales leader in the
fastest growing segment of the business.
“Despite the significant capital investments that we are making this
year in our all-new, robotic paint facility, we will continue to
generate positive cash flow and are reaffirming our full year Adjusted
Free Cash Flow guidance of $24 – $28 million.”
Fiscal 2019 Second
Quarter Results
Net Sales
Net sales were $211.6 million for the second
quarter of fiscal 2019, a decrease of $5.0 million, or 2.3%, from prior
year period. Bus unit sales were 2,271 units for the quarter compared
with 2,441 units for the same period last year. The 170 unit reduction
is more than explained by delayed bookings from second quarter to third
quarter due to parts shortages by one supplier late in the quarter.
Gross Profit
Second quarter gross profit of $26.0 million
represented an increase of $4.3 million from the second quarter of last
year. Gross profit margin improved 2.3 points to 12.3%.
Net Loss
Net loss was $0.7 million for the second quarter of
fiscal 2019, representing a decrease in profit of $2.5 million compared
with the same period last year.
Adjusted Net Income
Adjusted Net Income was $3.9 million,
representing a decrease of $0.7 million compared with the same period
last year.
Adjusted EBITDA
Adjusted EBITDA was $12.2 million,
representing an increase of $2.2 million compared with the second
quarter last year. Bus pricing and cost reductions more than offset the
impact of commodity-cost headwinds and lower volume.
Year-to-Date 2019 Results
Net Sales
Net sales were $366.6 million for the six months
ended March 30, 2019, a decrease of $12.6 million, or 3.3%, compared
with the prior year. Bus unit sales were 3,871 units for the six months
ended March 30, 2019 compared with 4,146 units for the same period last
year.
Gross Profit
Full year gross profit was $45.1 million, an
increase of $2.7 million from the prior year.
Net Income
Net income was $1.9 million for the six months
ended March 30, 2019, which was $4.1 million above the same period in
the prior year.
Adjusted Net Income
Adjusted Net Income was $5.2 million,
representing an increase of $0.9 million compared with the prior year.
Adjusted EBITDA
Adjusted EBITDA was $19.4 million for the
six months ended March 30, 2019, an increase of $2.3 million from the
prior year.
Conference Call Details
Blue Bird will discuss its second 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 1-800-239-9838 or
1-323-794-2551
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 including
the component of lease expense (which is presented as a single operating
expense in selling, general and administrative expenses in our GAAP
financial statements) that represents interest expense on lease
liabilities, income taxes, depreciation and amortization including the
component of lease expense (which is presented as a single operating
expense in selling, general and administrative expenses in our GAAP
financial statements) that represents amortization charges on
right-to-use lease assets, 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) | March 30, 2019 | September 29, 2018 | ||||||||
| Assets | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 25,600 | $ | 60,260 | ||||||
| Accounts receivable, net | 8,272 | 24,067 | ||||||||
| Inventories | 125,940 | 57,333 | ||||||||
| Other current assets | 11,624 | 8,183 | ||||||||
| Total current assets | $ | 171,436 | $ | 149,843 | ||||||
| Property, plant and equipment, net | 92,485 | 66,054 | ||||||||
| Goodwill | 18,825 | 18,825 | ||||||||
| Intangible assets, net | 56,279 | 55,472 | ||||||||
| Equity investment in affiliate | 11,439 | 11,123 | ||||||||
| Deferred tax assets | 4,494 | 4,437 | ||||||||
| Other assets | 412 | 1,676 | ||||||||
| Total assets | $ | 355,370 | $ | 307,430 | ||||||
| Liabilities and Stockholders’ Deficit | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 112,886 | $ | 95,780 | ||||||
| Warranty | 8,608 | 9,142 | ||||||||
| Accrued expenses | 28,549 | 21,935 | ||||||||
| Deferred warranty income | 8,169 | 8,159 | ||||||||
| Other current liabilities | 6,023 | 3,941 | ||||||||
| Current portion of long-term debt | 9,900 | 9,900 | ||||||||
| Total current liabilities | $ | 174,135 | $ | 148,857 | ||||||
| Long-term liabilities | ||||||||||
| Revolving credit facility | $ | 20,000 | $ | — | ||||||
| Long-term debt | 177,729 | 132,239 | ||||||||
| Warranty | 12,912 | 13,504 | ||||||||
| Deferred warranty income | 14,732 | 15,032 | ||||||||
| Other liabilities | 13,225 | 5,121 | ||||||||
| Pension | 20,227 | 21,013 | ||||||||
| Total long-term liabilities | $ | 258,825 | $ | 186,909 | ||||||
| Stockholders’ deficit | ||||||||||
|
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0 and 93,000 issued with liquidation preference of $0 and $9,300 at March 30, 2019 and September 29, 2018, respectively |
$ | — | $ | 9,300 | ||||||
|
Common stock, $0.0001 par value, 100,000,000 shares authorized, 26,440,663 and 27,259,262 shares outstanding at March 30, 2019 and September 29, 2018, respectively. |
3 | 3 | ||||||||
| Additional paid-in capital | 81,889 | 70,023 | ||||||||
| Accumulated deficit | (71,842 | ) | (69,235 | ) | ||||||
| Accumulated other comprehensive loss | (37,379 | ) | (38,427 | ) | ||||||
|
Treasury stock, at cost, 1,782,568 and 0 shares at March 30, 2019 and September 29, 2018, respectively |
(50,261 | ) | — | |||||||
| Total stockholders’ deficit | $ | (77,590 | ) | $ | (28,336 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 355,370 | $ | 307,430 | ||||||
|
BLUE BIRD CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| (in thousands except for share data) | March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | ||||||||||||||||
| Net sales | $ | 211,642 | $ | 216,628 | $ | 366,568 | $ | 379,177 | ||||||||||||
| Cost of goods sold | 185,688 | 194,960 | 321,504 | 336,861 | ||||||||||||||||
| Gross profit | $ | 25,954 | $ | 21,668 | $ | 45,064 | $ | 42,316 | ||||||||||||
| Operating expenses | ||||||||||||||||||||
| Selling, general and administrative expenses | 22,928 | 18,280 | 40,201 | 43,737 | ||||||||||||||||
| Operating profit (loss) | $ | 3,026 | $ | 3,388 | $ | 4,863 | $ | (1,421 | ) | |||||||||||
| Interest expense | (3,998 | ) | (1,826 | ) | (6,872 | ) | (3,278 | ) | ||||||||||||
| Interest income | — | 2 | 9 | 17 | ||||||||||||||||
| Other (expense) income, net | (275 | ) | 559 | (624 | ) | 268 | ||||||||||||||
| (Loss) income before income taxes | $ | (1,247 | ) | $ | 2,123 | $ | (2,624 | ) | $ | (4,414 | ) | |||||||||
| Income tax benefit (expense) | 179 | (471 | ) | 415 | (1,823 | ) | ||||||||||||||
| Equity in net income of non-consolidated affiliate | 395 | 184 | 316 | 234 | ||||||||||||||||
| Net (loss) income | $ | (673 | ) | $ | 1,836 | $ | (1,893 | ) | $ | (6,003 | ) | |||||||||
| Earnings per share: | ||||||||||||||||||||
| Net (loss) income (from above) | $ | (673 | ) | $ | 1,836 | $ | (1,893 | ) | $ | (6,003 | ) | |||||||||
| Less: preferred stock dividends | — | 763 | — | 1,533 | ||||||||||||||||
| Net (loss) income available to common stockholders | $ | (673 | ) | $ | 1,073 | $ | (1,893 | ) | $ | (7,536 | ) | |||||||||
| Basic weighted average shares outstanding | 26,595,280 | 23,899,772 | 26,449,072 | 23,911,909 | ||||||||||||||||
| Diluted weighted average shares outstanding | 26,595,280 | 25,127,082 | 26,449,072 | 23,911,909 | ||||||||||||||||
| Basic (loss) earnings per share | $ | (0.03 | ) | $ | 0.04 | $ | (0.07 | ) | $ | (0.32 | ) | |||||||||
| Diluted (loss) earnings per share | $ | (0.03 | ) | $ | 0.04 | $ | (0.07 | ) | $ | (0.32 | ) | |||||||||
|
BLUE BIRD CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||
| Six Months Ended | ||||||||||
| (in thousands of dollars) | March 30, 2019 | March 31, 2018 | ||||||||
| Cash flows from operating activities | ||||||||||
| Net loss | $ | (1,893 | ) | $ | (6,003 | ) | ||||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||||
| Depreciation and amortization | 4,844 | 4,173 | ||||||||
| Non-cash interest expense | 2,451 | 384 | ||||||||
| Share-based compensation | 2,045 | 1,510 | ||||||||
| Equity in net income of affiliate | (316 | ) | (234 | ) | ||||||
| Loss on disposal of fixed assets | 27 | 78 | ||||||||
| Deferred taxes | 83 | 1,098 | ||||||||
| Amortization of deferred actuarial pension losses | 1,379 | 1,760 | ||||||||
| Foreign currency hedges | 109 | (1,036 | ) | |||||||
| Changes in assets and liabilities: | ||||||||||
| Accounts receivable | 15,795 | (2,042 | ) | |||||||
| Inventories | (68,607 | ) | (29,232 | ) | ||||||
| Other assets | (3,992 | ) | (335 | ) | ||||||
| Accounts payable | 16,378 | 9,151 | ||||||||
| Accrued expenses, pension and other liabilities | 4,925 | (12,329 | ) | |||||||
| Total adjustments | $ | (24,879 | ) | $ | (27,054 | ) | ||||
| Total cash used in operating activities | $ | (26,772 | ) | $ | (33,057 | ) | ||||
| Cash flows from investing activities | ||||||||||
| Cash paid for fixed and acquired intangible assets | (22,706 | ) | (7,021 | ) | ||||||
| Total cash used in investing activities | $ | (22,706 | ) | $ | (7,021 | ) | ||||
| Cash flows from financing activities | ||||||||||
| Borrowings under the revolving credit facility | $ | 20,000 | $ | — | ||||||
| Borrowings under the senior term loan | 50,000 | — | ||||||||
| Repayments under the senior term loan | (4,950 | ) | (4,000 | ) | ||||||
| Cash paid for capital leases | — | (77 | ) | |||||||
| Payment of dividends on preferred stock | — | (1,533 | ) | |||||||
|
Cash paid for employee taxes on vested restricted shares and stock option exercises |
(602 | ) | (571 | ) | ||||||
| Proceeds from exercises of warrants | 740 | 9,504 | ||||||||
| Common stock repurchases under share repurchase programs | — | (15,512 | ) | |||||||
| Tender offer repurchase of common stock and preferred stock | (50,370 | ) | — | |||||||
| Total cash provided by (used in) financing activities | $ | 14,818 | $ | (12,189 | ) | |||||
| Change in cash and cash equivalents | (34,660 | ) | (52,267 | ) | ||||||
| Cash and cash equivalents, beginning of period | 60,260 | 62,616 | ||||||||
| Cash and cash equivalents, end of period | $ | 25,600 | $ | 10,349 | ||||||
|
Reconciliation of Net (Loss) Income to Adjusted EBITDA |
||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| (in thousands of dollars) | March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | ||||||||||||||||
| Net (loss) income | $ | (673 | ) | $ | 1,836 | $ | (1,893 | ) | $ | (6,003 | ) | |||||||||
| Adjustments: | ||||||||||||||||||||
| Discontinued operations loss (income) | — | 6 | — | (81 | ) | |||||||||||||||
| Interest expense, net (1) | 4,102 | 1,824 | 7,070 | 3,261 | ||||||||||||||||
| Income tax (benefit) expense | (179 | ) | 471 | (415 | ) | 1,823 | ||||||||||||||
| Depreciation, amortization, and disposals (2) | 2,833 | 2,169 | 5,240 | 4,280 | ||||||||||||||||
| Operational transformation initiatives | 3,270 | 3,420 | 3,514 | 10,378 | ||||||||||||||||
| Foreign currency hedges | — | (1,036 | ) | 109 | (1,036 | ) | ||||||||||||||
| Share-based compensation | 1,193 | 886 | 2,045 | 1,510 | ||||||||||||||||
| Product redesign initiatives | 1,652 | 455 | 3,802 | 3,029 | ||||||||||||||||
| Other | 4 | 17 | (53 | ) | (44 | ) | ||||||||||||||
| Adjusted EBITDA | $ | 12,202 | $ | 10,048 | $ | 19,419 | $ | 17,117 | ||||||||||||
|
Adjusted EBITDA margin (percentage of net sales) |
5.8 | % | 4.6 | % | 5.3 | % | 4.5 | % | ||||||||||||
|
____________________
(1) Includes $0.1 million and $0.2 million for the three and six |
||||||||||||||||||||
|
(2) Includes $0.2 million and $0.3 million for the three and six |
||||||||||||||||||||
|
Reconciliation of Free Cash Flow to Adjusted Free Cash Flow |
||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| (in thousands of dollars) | March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | ||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 21,436 | $ | 751 | $ | (26,772 | ) | $ | (33,057 | ) | ||||||||||
| Cash paid for fixed and acquired intangible assets | (11,919 | ) | (3,572 | ) | (22,706 | ) | (7,021 | ) | ||||||||||||
| Free cash flow | $ | 9,517 | $ | (2,821 | ) | $ | (49,478 | ) | $ | (40,078 | ) | |||||||||
| Cash paid for product redesign initiatives | (1,652 | ) | (455 | ) | (3,802 | ) | (3,029 | ) | ||||||||||||
| Cash paid for operational transformation initiatives | (3,270 | ) | (3,420 | ) | (3,514 | ) | (10,378 | ) | ||||||||||||
| Adjusted free cash flow | 14,439 | 1,054 | (42,162 | ) | (26,671 | ) | ||||||||||||||
|
Reconciliation of Net (Loss) Income to Adjusted Net Income |
||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| (in thousands of dollars) | March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | ||||||||||||||||
| Net (loss) income | $ | (673 | ) | $ | 1,836 | $ | (1,893 | ) | $ | (6,003 | ) | |||||||||
| Adjustments, net of tax benefit or expense (1) | ||||||||||||||||||||
| Operational transformation initiatives | 2,453 | 2,565 | 2,636 | 7,784 | ||||||||||||||||
| Product redesign initiatives | 1,239 | 341 | 2,852 | 2,272 | ||||||||||||||||
| Foreign currency hedges | — | (777 | ) | 82 | (777 | ) | ||||||||||||||
| Share-based compensation | 895 | 665 | 1,534 | 1,133 | ||||||||||||||||
| Discontinued operations loss (income) | — | 5 | — | (61 | ) | |||||||||||||||
| Other | 3 | 13 | (40 | ) | (33 | ) | ||||||||||||||
| Adjusted net income, non-GAAP | $ | 3,916 | $ | 4,647 | 5,170 | 4,314 | ||||||||||||||
| Less: preferred stock dividends | — | 763 | — | 1,533 | ||||||||||||||||
| Adjusted net income available to common stockholders, non-GAAP | $ | 3,916 | $ | 3,884 | 5,170 | 2,781 | ||||||||||||||
|
____________________ (1) Amounts are net of estimated statutory tax rates of 25%. |
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Contacts
Mark Benfield
Investor Relations & Government Affairs
(478)
822-2315
[email protected]
