Market Overview

Solid Blue Bird Fiscal 2018 Third Quarter Performance Impacted by Commodities Headwind; Actions Taken to Address Headwinds in Fourth Quarter and Beyond; $50 Million Stock Repurchase Tender Offer Approved

Share:

GAAP net income of $21.9 million, up $1.9 million, Adjusted EBITDA of
$23.7 million, Adjusted Diluted EPS of $0.91 and Adjusted Free Cash Flow
of $35.7 million

Blue Bird Corporation ("Blue Bird") (NASDAQ:BLBD), the leading
independent designer and manufacturer of school buses, announced today
its fiscal 2018 third quarter results. Blue Bird Corporation delivered
higher net income, up 9.3% from prior year as well as solid Adjusted
EBITDA of $23.7 million. Strong earnings were delivered despite higher
commodity costs.

Highlights

(in millions except EPS data)    

Three Months Ended
June 30, 2018

   

B/(W)
2017

   

Nine Months Ended
June 30, 2018

   

B/(W)
2017

Unit Sales 3,746     (103 ) 7,892     183
GAAP Measures:
Revenue $ 314.2 $ (18.4 ) $ 693.4 $ 15.4
Net Income $ 21.9 $ 1.9 $ 15.9 $ 1.6
Diluted Earnings per Share $ 0.77 $ 0.09 $ 0.55 $ 0.09
Non-GAAP Measures1:
Adjusted EBITDA $ 23.7 $ (9.2 ) $ 39.4 $ (4.4 )
Adjusted Net Income $ 25.8 $ 5.1 $ 29.1 $ 7.2
Adjusted Diluted Earnings per Share $ 0.91 $ 0.20 $ 1.02 $ 0.26

1 Reconciliation to relevant GAAP metrics shown below

 

"We are pleased with our third quarter performance despite significant
steel cost headwinds," said Phil Horlock, President and Chief Executive
Officer of Blue Bird Corporation. "We have begun to achieve cost
reductions with the Transformational Initiatives we are implementing to
improve quality, reduce cost, increase capacity and ensure that Blue
Bird continues its tradition as the innovator in the School Bus
industry. We expect gains from implementing these initiatives and
pricing for commodity headwinds in the fourth quarter and significantly
in FY2019 which supports our Adjusted EBITDA margin target of 10%+ by
FY2020. In the near-term, we are tightening our full-year revenue
guidance to $1,010 - $1,020 million, and taking our Adjusted EBITDA
guidance down to $70 - $72 million.

"Our product focus continues to be the design of differentiated products
that customers want and value. We continued our leadership in these
expanding market segments and we expect another year of strong growth
and leadership in sales of our alternative-fuel powered school buses.
Customer reaction to our all-new offerings of electric-powered buses has
been very positive, and as previously announced, Blue Bird will begin
delivery of electric buses to school districts before the end of this
fiscal year.

"Despite investment in our Transformational Initiatives in the third
quarter, we continue to generate positive cash flow, with positive net
cash provided by operating activities of $40.1 million and Adjusted Free
Cash Flow of $35.7 million for the quarter. As we close out the
remainder of our fiscal year, we are reducing our full year Adjusted
Free Cash Flow guidance to $30 - $34 million as we continue significant
investments in our production facility which we expect to complete in
mid-FY2019."

Tender Offer Announced

Blue Bird Corporation ("Blue Bird" or the "Company") intends to
repurchase up to $50.0 million in aggregate value of outstanding shares
of its common stock, which will be effectuated by means of an issuer
tender offer. If commenced, Blue Bird intends to complete this
repurchase prior to the end of the first quarter of the 2019 fiscal year
with either cash on hand and/or proceeds from its credit facility.
Concurrent with this announcement, Blue Bird has suspended its current
repurchase program, which was authorized on June 12, 2018, to repurchase
up to $25.0 million in value of outstanding shares of the Company's (i)
common stock and (ii) Series A Convertible Preferred Stock.

Third Quarter 2018 Results

Net Sales
Net sales were $314.2 million for the third
quarter of fiscal 2018, a decrease of $18.4 million, or 5.5%, from prior
year period. Bus unit sales were 3,746 units for the quarter compared
with 3,849 units for the same period last year.

Gross Profit
Third quarter gross profit of $37.0 million
represents a decrease of $8.0 million from the third quarter of last
year.

Net Income
Net income was $21.9 million for the third
quarter of fiscal 2018, an increase of $1.9 million compared with the
same period last year.

Adjusted Net Income
Adjusted Net Income was $25.8 million,
representing an increase of $5.1 million compared with the same period
last year.

Adjusted EBITDA
Adjusted EBITDA was $23.7 million, or 7.5%
of net sales, representing a decrease of $9.2 million compared with the
third quarter of the prior year.

Year-to-Date 2018 Results

Net Sales
Net sales were $693.4 million for the nine months
ended June 30, 2018, an increase of $15.4 million, or 2.3%, compared
with the prior year. This was primarily driven by higher bus unit sales,
which were 183 units above the same period last year.

Gross Profit
Year-to-date gross profit was $79.3 million, a
decrease of $8.6 million from the prior year.

Net Income
Net income was $15.9 million for the nine months
ended June 30, 2018, which was $1.6 million above the same period in the
prior year. The increase was primarily driven by a decrease of $11.4
million in tax expense 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 $11.8 million in selling, general and administrative
expenses and a decrease of $8.6 million in gross profit.

Adjusted Net Income
Adjusted Net Income was $29.1 million,
representing an increase of $7.2 million compared with the prior year.

Adjusted EBITDA
Adjusted EBITDA was $39.4 million, or 5.7%
of net sales, for the nine months ended June 30, 2018, a decrease of
$4.4 million from the prior year. The decrease in adjusted EBITDA was
primarily the result of decreased gross profit, which was partially
offset by a decrease in adjusted selling, general and administrative
expenses.

Conference Call Details

Blue Bird will discuss its third 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 1-800-239-9838 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
(Loss)," "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 and transaction costs, as these expenses are
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 (Loss) is net income as adjusted to add back certain
transaction costs not considered an indicator of ongoing company
performance. Adjusted diluted earnings per share represents Adjusted Net
Income (Loss) 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 (Loss), 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 (Loss), 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 expenses. We believe that
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 (Loss) 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 the 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 (Loss), 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 (Loss), 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 (Loss), 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 operations
minus cash paid for fixed assets. We define adjusted free cash flow as
free cash flow minus cash paid for special compensation and other
business combination expenses. 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 and intangible assets are a necessary
component of ongoing operations. In limited circumstances in which
proceeds from sales of fixed or intangible assets exceed purchases, free
cash flow would exceed cash flow from operations. However, since we do
not anticipate being a net seller of fixed or intangible assets, we
expect free cash flow to be less than operating cash flows.

Additional Information Regarding the Tender
Offer

The tender offer described in this press release (the "Offer") has not
yet commenced and may not be commenced. This press release is for
informational purposes only. This press release is not a recommendation
to buy or sell Blue Bird common stock or any other securities, and it is
neither an offer to purchase nor a solicitation of an offer to sell Blue
Bird common stock or any other securities. Should Blue Bird decide to
proceed with the Offer, Blue Bird will file a tender offer statement on
Schedule TO-I, including an offer to purchase, letter of transmittal and
related materials, with the SEC on the commencement date of the Offer.
The Offer will only be made pursuant to the offer to purchase, letter of
transmittal and related materials filed as a part of the Schedule TO-I.
Stockholders should read carefully the offer to purchase, letter of
transmittal and related materials if and when they become available
because they would contain important information, including the various
terms of, and conditions to, the Offer. When the Offer is commenced,
stockholders will be able to obtain a free copy of the tender offer
statement on Schedule TO-I, the offer to purchase, letter of transmittal
and other documents that Blue Bird files with the SEC at the SEC's
website at www.sec.gov
or from the investor relations section of Blue Bird's website at www.blue-bird.com.

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

(Unaudited)

 
(in thousands except for share data)     June 30, 2018     September 30, 2017
Assets
Current assets
Cash and cash equivalents $ 41,924 $ 62,616
Accounts receivable, net 22,569 10,148
Inventories 113,027 76,155
Other current assets 14,311   11,528  
Total current assets $ 191,831   $ 160,447  
Property, plant and equipment, net 48,910 34,708
Goodwill 18,825 18,825
Intangible assets, net 55,974 57,481
Equity investment in affiliate 12,256 11,625
Deferred tax asset 3,220 11,755
Other assets 522   975  
Total assets $ 331,538   $ 295,816  
Liabilities and Stockholders' Deficit
Current liabilities
Accounts payable $ 132,864 $ 87,331
Warranty 8,139 8,573
Accrued expenses 17,214 18,229
Deferred warranty income 7,742 6,776
Other current liabilities 7,084 9,847
Current portion of long-term debt 8,000   8,000  
Total current liabilities $ 181,043   $ 138,756  
Long-term liabilities
Long-term debt $ 137,797 $ 143,224
Warranty 11,712 12,337
Deferred warranty income 14,259 12,519
Deferred tax liabilities 626
Other liabilities 5,359 15,064
Pension 25,219   32,426  
Total long-term liabilities $ 194,972   $ 215,570  
Stockholders' deficit
Preferred stock, $0.0001 par value, 10,000,000 shares authorized,
93,000 and 400,000 issued with liquidation preference of $9,300 and
$40,000 at June 30, 2018 and September 30, 2017, respectively
$ 9,300 $ 40,000
Common stock, $0.0001 par value, 100,000,000 shares authorized,
26,898,267 and 23,739,344 issued and outstanding at June 30, 2018
and September 30, 2017, respectively.
2 2
Additional paid-in capital 72,362 45,418
Accumulated deficit (84,167 ) (100,055 )
Accumulated other comprehensive loss (41,974 ) (43,875 )
Total stockholders' deficit $ (44,477 ) $ (58,510 )
Total liabilities and stockholders' deficit $ 331,538   $ 295,816  
 

BLUE BIRD CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 
    Three Months Ended     Nine Months Ended
(in thousands except for share data) June 30, 2018     July 1, 2017 June 30, 2018     July 1, 2017
Net sales $ 314,186 $ 332,604 $ 693,363 $ 677,915
Cost of goods sold 277,213   287,594   614,074   590,058  
Gross profit $ 36,973   $ 45,010   $ 79,289   $ 87,857  
Operating expenses
Selling, general and administrative expenses 20,950   16,331   65,609   53,782  
Operating profit $ 16,023 $ 28,679 $ 13,680 $ 34,075
Interest expense (1,834 ) (1,398 ) (5,112 ) (5,801 )
Interest income 25 50 42 63
Other (expense) income, net (206 ) (45 ) 984 (209 )
Loss on debt extinguishment       (10,142 )
Income before income taxes $ 14,008 $ 27,286 $ 9,594 $ 17,986
Income tax benefit (expense) 7,485 (8,290 ) 5,662 (5,726 )
Equity in net income of non-consolidated affiliate 398   1,036     632     1,997  
Net income $ 21,891   $ 20,032   $ 15,888   $ 14,257  
 
Earnings per share:
Net income (from above) $ 21,891 $ 20,032 $ 15,888 $ 14,257
Less: preferred stock dividends 182   974   1,715   2,944  
Net income available to common stockholders $ 21,709   $ 19,058   $ 14,173   $ 11,313  
 
Basic weighted average shares outstanding 26,209,697 23,659,057 24,677,838 23,101,685
Diluted weighted average shares outstanding 28,556,914 29,527,612 25,809,491 24,654,158
 
Basic earnings per share $ 0.83 $ 0.81 $ 0.57 $ 0.49
Diluted earnings per share $ 0.77 $ 0.68 $ 0.55 $ 0.46
 
 

BLUE BIRD CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 
    Nine Months Ended
(in thousands of dollars) June 30, 2018     July 1, 2017
Cash flows from operating activities
Net income $ 15,888 $ 14,257
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 6,325 6,106
Amortization of debt costs 572 912
Share-based compensation 2,380 904
Equity in net income of affiliate (632 ) (1,997 )
Loss (gain) on disposal of fixed assets 115 (43 )
Deferred taxes 8,422 (874 )
Amortization of deferred actuarial pension losses 2,640 4,718
Loss on debt extinguishment 10,142
Unrealized gains on foreign currency hedges (828 )
Changes in assets and liabilities:
Accounts receivable (12,422 ) (13,701 )
Inventories (36,872 ) (72,796 )
Other assets (1,502 ) (5,941 )
Accounts payable 41,959 56,671
Accrued expenses, pension and other liabilities (19,023 ) 5,981
Dividend from equity investment in affiliate   1,412  
Total adjustments $ (8,866 ) $ (8,506 )
Total cash provided by operating activities $ 7,022   $ 5,751  
Cash flows from investing activities
Cash paid for fixed assets (15,572 ) (7,193 )
Proceeds from sale of fixed assets 12   47  
Total cash used in investing activities $ (15,560 ) $ (7,146 )
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 (6,000 ) (4,000 )
Cash paid for capital leases (118 ) (117 )
Cash paid for debt issuance costs (299 )
Cash paid to extinguish debt (507 )
Payment of dividends on preferred stock (1,715 ) (2,944 )
Cash paid for employee taxes on vested restricted shares and stock
option exercises
(571 ) (981 )
Proceeds from exercises of warrants 15,114 12,858
Common stock repurchases under the share repurchase program (18,864 )  
Total cash used in financing activities $ (12,154 ) $ (603 )
Change in cash and cash equivalents (20,692 ) (1,998 )
Cash and cash equivalents, beginning of period 62,616   52,309  
Cash and cash equivalents, end of period $ 41,924   $ 50,311  
 
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest paid, net of interest received $ 4,549 $ 4,775
Income tax paid, net of tax refunds 3,665 1,318
Non-cash investing and financing activities
Change in accounts payable for capital additions to property, plant
and equipment
$ 3,574 $ (1,900 )
Cashless exercise of stock options 897 4,124
Cash receivable for warrant exercises 164
 
 

Reconciliation of Net Income to Adjusted EBITDA

(Unaudited)

 
    Three Months Ended     Nine Months Ended
(in thousands of dollars) June 30, 2018     July 1, 2017 June 30, 2018     July 1, 2017
Net income $ 21,891 $ 20,032 $ 15,888 $ 14,257
Adjustments:
Discontinued operations loss (income) 34 (81 ) 222
Interest expense, net 1,809 1,348 5,070 5,738
Income tax (benefit) expense (7,485 ) 8,290 (5,662 ) 5,726
Depreciation, amortization, and disposals 2,203 2,022 6,483 6,106
Loss on debt extinguishment 10,142
Operational transformation initiatives 3,169 13,547
Unrealized losses (gains) on foreign currency hedges 208 (828 )
Share-based compensation 870 494 2,380 904
Product initiatives 1,037 648 2,697 930
Other (10 )   (54 ) (174 )
Adjusted EBITDA $ 23,692   $ 32,868   $ 39,440   $ 43,851  
Adjusted EBITDA margin (percentage of net sales) 7.5 % 9.9 % 5.7 % 6.5 %
 
 

Reconciliation of Free Cash Flow to Adjusted Free Cash Flow

(Unaudited)

 
    Three Months Ended     Nine Months Ended
(in thousands of dollars) June 30, 2018     July 1, 2017 June 30, 2018     July 1, 2017
Net cash provided by operating activities $ 40,079 $ 15,076 $ 7,022 $ 5,751
Cash paid for fixed assets (8,551 ) (2,034 ) (15,572 ) (7,193 )
Free cash flow $ 31,528   $ 13,042   $ (8,550 ) $ (1,442 )
Cash paid for operational transformation initiatives (3,169 ) (13,547 )
Cash paid for product initiatives (1,037 ) (648 ) (2,697 ) (930 )
Cash paid for other       (3,313 )
Adjusted free cash flow 35,734   13,690   7,694   2,801  
 
 

Reconciliation of Net Income to Adjusted Net Income

(Unaudited)

 
    Three Months Ended     Nine Months Ended
(in thousands of dollars) June 30, 2018     July 1, 2017 June 30, 2018     July 1, 2017
Net income $ 21,891 $ 20,032 $ 15,888 $ 14,257
Adjustments, net of tax benefit or expense (1)
Operational transformation initiatives 2,377 10,160
Product initiatives 778 415 2,023 595
Loss on debt extinguishment 6,491
Unrealized losses (gains) on foreign currency hedges 156 (621 )
Share-based compensation 653 316 1,785 579
Discontinued operations loss (income) 22 (61 ) 142
Other (8 )   (41 ) (111 )
Adjusted net income, non-GAAP $ 25,847   $ 20,785   29,134   21,952  

____________________

 
(1)   Amounts are net of estimated statutory tax rates of 25% for the
three and nine months ended June 30, 2018 and 36% for the three and
nine months ended July 1, 2017.
 
 

Reconciliation of Diluted EPS to Adjusted Diluted EPS

(Unaudited)

 
    Three Months Ended     Nine Months Ended
June 30, 2018     July 1, 2017 June 30, 2018     July 1, 2017
Diluted earnings per share $ 0.77 $ 0.68 $ 0.55 $ 0.46
One-time charge adjustments, net of tax benefit or expense 0.14   0.02   0.47   0.30
Adjusted diluted earnings per share, non-GAAP (1) $ 0.91   $ 0.70   $ 1.02   $ 0.76
Weighted average dilutive shares outstanding (2) 28,556,914 29,527,612 28,600,959 28,968,222

____________________

 
(1)   Numerator is adjusted net income, non-GAAP.
(2) The diluted loss per share calculations for the nine months ended
June 30, 2018 and July 1, 2017 excluded 2,791,468 and 4,314,064
shares, respectively, as their effect would be anti-dilutive, but
were included in the adjusted diluted earnings per share, non-GAAP
calculation as their effect was dilutive.
 

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