Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2018 | Aug. 06, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Blue Bird Corp | |
Entity Central Index Key | 1,589,526 | |
Current Fiscal Year End Date | --09-29 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 27,111,107 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
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 assets | 3,220 | 11,755 |
Other assets | 522 | 975 |
Total assets | 331,538 | 295,816 |
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 | 0 |
Other liabilities | 5,359 | 15,064 |
Pension | 25,219 | 32,426 |
Total long-term liabilities | 194,972 | 215,570 |
Guarantees, commitments and contingencies (Note 6) | ||
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 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par Value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 93,000 | 400,000 |
Preferred Stock, Liquidation Preference, Value | $ 9,300,000 | $ 40,000,000 |
Common Stock, Par Value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 26,898,267 | 23,739,344 |
Common Stock, Shares Outstanding | 26,898,267 | 23,739,344 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Income Statement [Abstract] | ||||
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 | 0 | 0 | 0 | (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 (loss) per share (in dollars per share) | $ 0.83 | $ 0.81 | $ 0.57 | $ 0.49 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.77 | $ 0.68 | $ 0.55 | $ 0.46 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 21,891 | $ 20,032 | $ 15,888 | $ 14,257 |
Other comprehensive income, net of tax | ||||
Net change in defined benefit pension plan | 669 | 1,007 | 1,901 | 3,020 |
Net unrealized (loss) gain on cash flow hedges | 0 | (26) | 0 | 76 |
Total other comprehensive income | 669 | 981 | 1,901 | 3,096 |
Comprehensive income | $ 22,560 | $ 21,013 | $ 17,789 | $ 17,353 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Jul. 01, 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 | 0 | 10,142 |
Unrealized gains on foreign currency hedges | (828) | 0 |
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 | 0 | 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 | 0 | (161,500) |
Borrowings under the new term loan | 0 | 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 | 0 | (299) |
Cash paid to extinguish debt | 0 | (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 share repurchase programs | (18,864) | 0 |
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 | ||
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 | $ 0 | $ 164 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | 1. Nature of Business and Basis of Presentation Nature of Business Blue Bird Body Company, a wholly-owned subsidiary of Blue Bird Corporation, was incorporated in 1958 and has manufactured, assembled and sold school buses to a variety of municipal, federal and commercial customers since 1927. The majority of Blue Bird’s sales are made to an independent distributor network, which in turn sells buses to ultimate end users. We are headquartered in Macon, Georgia. References in these notes to financial statements to “Blue Bird”, the “Company,” “we,” “our,” or “us” refer to Blue Bird Corporation and its wholly-owned subsidiaries, unless the context specifically indicates otherwise. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and accounts have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and Article 8 of Regulation S-X. The Company’s fiscal year ends on the Saturday closest to September 30 with its quarters consisting of thirteen weeks in most years. In fiscal year 2018 , there is a total of 52 weeks. For fiscal years 2018 and 2017 , the third quarters both included 13 weeks. In the opinion of management, all adjustments considered necessary for a fair presentation of financial results have been made. Such adjustments consist of only those of a normal recurring nature. Operating results for any interim period are not necessarily indicative of the results that may be expected for the entire year. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The Condensed Consolidated Balance Sheet data as of September 30, 2017 was derived from the Company’s audited financial statements but do not include all disclosures required by generally accepted accounting principles. For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes for the fiscal year ended September 30, 2017 as set forth in the Company's 2017 Form 10-K filed on December 8, 2017 . Preferred Stock Conversion On April 24, 2018, the Company exercised its right to convert the maximum allowable number of outstanding shares of the 7.625% Convertible Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”) into shares of common stock, $0.0001 per share, of the Company (“Common Stock”). The conversion was subject to a beneficial ownership limitation, which prohibits the Company from effecting a conversion of Series A Preferred Stock to the extent that, after giving effect to such conversion, the holder of the Series A Preferred Stock would beneficially own in excess of 9.99% of the outstanding Common Stock. As a result of this conversion, a total of 307,000 shares of Series A Preferred Stock were converted into 2,649,962 shares of common stock based on the conversion rate of 8.6318 shares of Common Stock for each share of Series A Preferred Stock being converted. After the conversion and as of June 30, 2018, 93,000 shares of Series A Preferred Stock were outstanding. Use of Estimates and Assumptions The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions. At the date of the financial statements, these estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, and during the reporting period, these estimates and assumptions affect the reported amounts of revenues and expenses. For example, significant management judgments are required in determining excess, obsolete, or unsalable inventory, allowance for doubtful accounts, potential impairment of long-lived assets, goodwill and intangibles, the accounting for self-insurance reserves, warranty reserves, pension obligations, income taxes, environmental liabilities and contingencies. Future events and their effects cannot be predicted with certainty, and, accordingly, the Company’s accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the Company’s condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in the Company’s evaluations. Actual results could differ from the estimates that the Company has used. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Recently Issued Accounting Standards | 9 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Recently Issued Accounting Standards | 2. Summary of Significant Accounting Policies and Recent Accounting Standards The Company’s significant accounting policies are described in the Company’s 2017 Form 10-K, filed with the SEC on December 8, 2017 . Our senior management has reviewed these significant accounting policies and related disclosures and determined that there were no significant changes in our critical accounting policies in the nine months ended June 30, 2018 . Recently Issued Accounting Standards In March 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118", which updates income tax accounting to reflect the SEC's interpretive guidance released on December 22, 2017, when the Tax Cuts and Jobs Act (the "Tax Act") was signed into law. For more information regarding the impact of the Tax Act, see Note 5. Income Taxes . In June 2018, the FASB issued ASU No. 2018-07, "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting", which provides guidance on accounting for nonemployee share-based awards for goods or services received by a company. We have not granted any share-based awards to nonemployees. The impact of this guidance will be dependent on future grants, if any, of these forms of share-based awards. Recently Adopted Accounting Standards In the first quarter of fiscal 2018, the Company adopted ASU No. 2015-11, Simplifying the Measurement of Inventory , which requires inventory to be measured at the lower of cost or net realizable value. The adoption of this pronouncement did not have any impact on any component of our financial statements. |
Supplemental Financial Informat
Supplemental Financial Information | 9 Months Ended |
Jun. 30, 2018 | |
Condensed Financial Information [Abstract] | |
Supplemental Financial Information | 3. Supplemental Financial Information Inventory The Company values inventories at the lower of cost or net realizable value. The Company uses a standard costing methodology, which approximates cost on a first-in, first-out basis. The Company reviews the standard costs of raw materials, work-in-process and finished goods inventory on a periodic basis to ensure that its inventories approximate current actual costs. Manufacturing cost includes raw materials, direct labor and manufacturing overhead. The following table presents the components of inventory at the dates indicated: (in thousands of dollars) June 30, 2018 September 30, 2017 Raw materials $ 67,677 $ 54,379 Work in process 34,741 14,660 Finished goods 10,609 7,116 Total inventory $ 113,027 $ 76,155 Product Warranties The Company’s products are generally warranted against defects in material and workmanship for a period of one to five years . A provision for estimated warranty costs is recorded at the time the unit is sold. The methodology to determine the warranty reserve calculates average expected warranty claims using warranty claims by body type, by month, over the life of the bus, which is then multiplied by remaining months under warranty, by warranty type. Management believes the methodology provides an accurate reserve estimate. Actual claims incurred could differ from the original estimates, requiring future adjustments. The following table reflects activity in accrued warranty cost (current and long-term portion combined) for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Balance at beginning of period $ 19,283 $ 18,612 $ 20,910 $ 19,444 Add current period accruals 3,421 3,775 7,786 7,555 Current period reductions of accrual (2,853 ) (2,105 ) (8,845 ) (6,717 ) Balance at end of period $ 19,851 $ 20,282 $ 19,851 $ 20,282 The Company also sells extended warranties related to its products. Revenue related to these contracts is recognized on a straight-line basis over the contract period and costs thereunder are expensed as incurred. All warranty expenses are recorded in the cost of goods sold line on the Condensed Consolidated Statements of Operations. The methodology used to determine the short-term extended warranty income reserve is based on twelve months of the remaining warranty value for each effective extended warranty at the balance sheet date. The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two to five years , for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Balance at beginning of period $ 20,461 $ 16,654 $ 19,295 $ 16,187 Add current period deferred income 2,974 3,396 7,800 6,769 Current period recognition of income (1,434 ) (1,520 ) (5,094 ) (4,426 ) Balance at end of period $ 22,001 $ 18,530 $ 22,001 $ 18,530 Self-Insurance The following table reflects our total accrued self-insurance liability, comprised of workers compensation and health insurance related claims, at the dates indicated: (in thousands of dollars) June 30, 2018 September 30, 2017 Current portion $ 3,595 $ 3,194 Long-term portion 2,294 2,251 Total accrued self-insurance $ 5,889 $ 5,445 The current and long-term portions of the accrued self-insurance liability are reflected in accrued expenses and other liabilities, respectively, on the Condensed Consolidated Balance Sheets. Shipping and Handling Revenues Shipping and handling revenues represent costs billed to customers and are included in net sales. Shipping and handling costs incurred are included in cost of goods sold. Shipping and handling revenues were $5.0 million and $6.6 million for the three months ended June 30, 2018 and July 1, 2017 , respectively, and $12.0 million and $12.8 million for the nine months ended June 30, 2018 and July 1, 2017 , respectively. The related cost of goods sold was $5.8 million and $6.0 million for the three months ended June 30, 2018 and July 1, 2017 , respectively, and $11.7 million and $11.3 million for the nine months ended June 30, 2018 and July 1, 2017 , respectively. Pension Expense Components of net periodic pension benefit cost were as follows for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Interest cost $ 1,357 $ 1,266 $ 4,071 $ 3,797 Expected return on plan assets (1,776 ) (1,590 ) (5,328 ) (4,769 ) Amortization of prior loss 880 1,573 2,640 4,718 Net periodic benefit cost $ 461 $ 1,249 $ 1,383 $ 3,746 Amortization of prior loss, recognized in other comprehensive income 880 1,573 2,640 4,718 Total recognized in net periodic pension benefit cost and other comprehensive income $ (419 ) $ (324 ) $ (1,257 ) $ (972 ) Warrants At June 30, 2018 , there were a total of 2,296,738 warrants outstanding to purchase 1,148,369 shares of our Common Stock. |
Debt
Debt | 9 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt Debt consisted of the following at the dates indicated: (in thousands of dollars) June 30, 2018 September 30, 2017 2021 term loan, net of deferred financing costs of $2,203 and $2,776, respectively $ 145,797 $ 151,224 Less: current portion of long-term debt 8,000 8,000 Long-term debt, net of current portion $ 137,797 $ 143,224 Term loans are recognized on the Condensed Consolidated Balance Sheets at the unpaid principal balance, and are not subject to fair value measurement; however, given the variable rates on the loans, the Company estimates that the unpaid principal balance approximates fair value. If measured at fair value in the financial statements, the term loans would be classified as Level 2 in the fair value hierarchy. At June 30, 2018 and September 30, 2017 , $148.0 million and $154.0 million , respectively, were outstanding on the term loans. At June 30, 2018 and September 30, 2017 , the stated interest rates on the term loans were 3.8% and 2.8% , respectively. At June 30, 2018 and September 30, 2017 , the weighted-average annual effective interest rates for the term loans were 3.9% and 4.5% , respectively, which included amortization of the deferred financing costs. No borrowings were outstanding on the Revolving Credit Facility at June 30, 2018 ; however, since $6.9 million of Letters of Credit were outstanding on June 30, 2018 , the Company would have been able to borrow $68.1 million on the revolving line of credit. Interest expense on all indebtedness was $1.8 million and $1.4 million for the three months ended June 30, 2018 and July 1, 2017 , respectively, and $5.1 million and $5.8 million for the nine months ended June 30, 2018 and July 1, 2017 , respectively. The schedules of remaining principal maturities for the term loan for the next five fiscal years are as follows: (in thousands of dollars) Year Principal Payments 2018 $ 2,000 2019 8,000 2020 11,000 2021 15,000 2022 112,000 Total remaining principal payments $ 148,000 |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes Income tax provisions for interim periods are based on estimated annual income tax rates, adjusted to reflect the effects of any significant infrequent or unusual items which are required to be discretely recognized within the current interim period. The effective tax rates in the periods presented are largely based upon the forecast pre-tax earnings mix and allocation of certain expenses in various taxing jurisdictions where the Company conducts its business, primarily the United States. For the three and nine month period ended June 30, 2018 , we concluded on the relevant statute of limitations to apply to the underlying item that created our uncertain tax position which lapsed in the period resulting in a recorded tax benefit of $8.0 million . We also recorded a $1.7 million benefit related to the filing of our prior year tax returns. The benefit resulted from various deductions that were accelerated and reported in a higher tax rate year. The return filing also allowed us to reassess and reverse a $0.5 million valuation allowance for our foreign tax credit carryforward that had been recorded earlier in 2018 . The effective tax rate for the three month period ended June 30, 2018 was (53.4)% , which significantly differed from the transitional 2018 statutory federal income tax rate of 24.5% . The difference is mainly due to the above noted release of uncertain tax positions and provision to return adjustments, but the rate was also favorably impacted by normal tax rate benefit items, such as the domestic production activities deduction, state tax credits, and share based award related deductions in excess of recorded book expense. The effective tax rate for the three month period ended July 1, 2017 was 30.4% , which differed from the statutory federal income tax rate of 35% , mainly due to tax rate benefit items such as the domestic production activities deduction, foreign tax credits, and stock option deductions in excess of recorded expense. These benefits were partially offset by discrete expense items, the largest being interest and penalties on uncertain tax positions. The effective tax rate for the nine month period ended June 30, 2018 was (59.0)% and significantly differed from the transitional 2018 statutory federal income tax rate of 24.5% . The difference is mainly due to the above noted release of uncertain tax positions and provision to return adjustments, but was partially offset by a $2.4 million expense recorded in the prior fiscal quarter to reflect the newly enacted Tax Act. The Tax Act adjustments include resetting our deferred tax accounts to the new rates as well as $1.1 million of expense from increasing the carrying value of our uncertain tax positions, and $0.5 million of additional valuation allowance for our foreign tax credit carryforward. Of this adjustment amount, the portion relating to uncertain tax positions and valuation allowance were reversed in the current quarter. The rate was also favorably impacted by normal tax rate benefit items, such as the domestic production activities deduction, state tax credits, and share based award related deductions in excess of recorded book expense. The effective tax rate for the nine month period ended July 1, 2017 was 31.8% and differed from the statutory federal income tax rate of 35% , primarily from tax rate benefit items such as the domestic production activities deduction, foreign tax credits, and stock option deductions in excess of recorded expense. These benefits were partially offset by discrete expense items, the largest being interest and penalties on uncertain tax positions. |
Guarantees, Commitments and Con
Guarantees, Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees, Commitments and Contingencies | 6. Guarantees, Commitments and Contingencies Litigation At June 30, 2018 , the Company had a number of product liability and other cases pending. Management believes that, considering the Company’s insurance coverage and its intention to vigorously defend its positions, the ultimate resolution of these matters will not have a material adverse effect on the Company’s financial statements. Environmental The Company is subject to a variety of environmental regulations relating to the use, storage, discharge and disposal of hazardous materials used in its manufacturing processes. Failure by the Company to comply with present and future regulations could subject it to future liabilities. In addition, such regulations could require the Company to acquire costly equipment or to incur other significant expenses to comply with environmental regulations. The Company is currently not involved in any material environmental proceedings and therefore management believes that the resolution of environmental matters will not have a material adverse effect on the Company’s financial statements. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 7. Segment Information We manage our business in two operating segments, which are also our reportable segments. The Bus segment includes the manufacturing and assembly of buses to be sold to a variety of customers across the United States, Canada and in international markets. The Parts segment consists primarily of the purchase of parts from third parties to be sold to dealers within the Company’s network. Financial information is reported on the basis that it is used internally by the chief operating decision maker (the “CODM”) in evaluating segment performance and deciding how to allocate resources. The President and Chief Executive Officer of the Company has been identified as the CODM. Management evaluates the segments based primarily upon revenues and gross profit. A measure of assets is not applicable, as segment assets are not regularly reviewed by the CODM for evaluating performance or allocating resources. The tables below present segment net sales and gross profit for the periods presented: Net sales Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Bus $ 297,653 $ 317,333 $ 647,525 $ 633,499 Parts 16,533 15,271 45,838 44,416 Segment net sales $ 314,186 $ 332,604 $ 693,363 $ 677,915 Gross profit Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Bus $ 31,342 $ 39,843 $ 63,062 $ 72,234 Parts 5,631 5,167 16,227 15,623 Segment gross profit $ 36,973 $ 45,010 $ 79,289 $ 87,857 The following table is a reconciliation of segment gross profit to consolidated income before income taxes for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Segment gross profit $ 36,973 $ 45,010 $ 79,289 $ 87,857 Adjustments: Selling, general and administrative expenses (20,950 ) (16,331 ) (65,609 ) (53,782 ) 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 Sales are attributable to geographic areas based on customer location and were as follows for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 United States $ 274,984 $ 291,672 $ 628,046 $ 608,350 Canada 37,490 40,550 59,949 66,535 Rest of world 1,712 382 5,368 3,030 Total net sales $ 314,186 $ 332,604 $ 693,363 $ 677,915 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 8. Earnings Per Share The following table presents the earnings per share computation for the periods presented: Three Months Ended Nine Months Ended (in thousands except for share data) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Numerator: Net income $ 21,891 $ 20,032 $ 15,888 $ 14,257 Less: convertible preferred stock dividends 182 974 1,715 2,944 Net income available to common stockholders $ 21,709 $ 19,058 $ 14,173 $ 11,313 Basic earnings per share (1): Weighted average common shares outstanding 26,209,697 23,659,057 24,677,838 23,101,685 Basic earnings per share $ 0.83 $ 0.81 $ 0.57 $ 0.49 Diluted earnings per share (2): Weighted average common shares outstanding 26,209,697 23,659,057 24,677,838 23,101,685 Weighted average dilutive securities, convertible preferred stock 1,471,902 4,314,064 — — Weighted average dilutive securities, restricted stock 687 2,383 24,403 484 Weighted average dilutive securities, warrants 607,532 1,326,916 836,932 1,314,161 Weighted average dilutive securities, stock options 267,096 225,192 270,318 237,828 Weighted average shares and dilutive potential common shares 28,556,914 29,527,612 25,809,491 24,654,158 Diluted earnings per share $ 0.77 $ 0.68 $ 0.55 $ 0.46 (1) Basic earnings per share is calculated by dividing income available to common stockholders by the weighted average common shares outstanding during the period. (2) Diluted earnings per share is calculated by adjusting the weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding during the period, determined by using the treasury-stock method, and adjusting for the dilutive effect of our convertible preferred stock, determined by using the if-converted method. For the nine months ended June 30, 2018 and July 1, 2017 , 2,791,468 and 4,314,064 shares, respectively, of convertible preferred stock were excluded from the dilutive calculation as the if-converted impact would be anti-dilutive. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 9. Share-Based Compensation Restricted Stock Awards The following table summarizes the Company's restricted stock awards ("RSAs") and restricted stock units ("RSUs") award activity for the period presented: Nine Months Ended June 30, 2018 Restricted Stock Activity Number of Shares Weighted-Average Grant Date Fair Value Balance, beginning of period 75,590 $ 15.83 Granted 118,450 18.59 Vested (67,890 ) 15.86 Forfeited/canceled (8,076 ) 15.62 Balance, end of period 118,074 18.59 Compensation expense for restricted stock awards, recognized in selling, general and administrative expenses on the Condensed Consolidated Statements of Operations, was $0.5 million and $1.4 million with associated tax benefits of $0.2 million and $0.4 million for the three and nine months ended June 30, 2018 , respectively. At June 30, 2018 , unrecognized compensation cost related to restricted stock awards totaled $1.1 million and is expected to be recognized over a weighted-average period of six months . Stock Option Awards The following table summarizes the Company's stock option activity for the period presented: Nine Months Ended June 30, 2018 Stock Option Award Activity Number of Options Weighted Average Exercise Price per Share ($) Outstanding options, beginning of period 623,962 $ 11.15 Granted 215,530 16.61 Exercised (1) (73,102 ) 12.27 Forfeited (19,030 ) 15.50 Outstanding options, end of period (2) 747,360 12.50 Fully vested and exercisable options, end of period (3) 535,302 10.87 (1) Stock options exercised in the period had an aggregate intrinsic value totaling $0.6 million . (2) Stock options outstanding at the end of the period had an aggregate intrinsic value totaling $7.4 million . (3) Fully vested and exercisable options at the end of the period had an aggregate intrinsic value totaling $6.1 million with a weighted average contractual remaining term of 7.1 years . Compensation expense for stock option awards, recognized in selling, general and administrative expenses on the Consolidated Statements of Operations, was $0.3 million and $0.8 million with associated tax benefits of $0.1 million and $0.2 million for the three and nine months ended June 30, 2018 , respectively. At June 30, 2018 , unrecognized compensation cost related to stock option awards totaled $0.6 million and is expected to be recognized over a weighted-average period of six months . The fair value of each option award at grant date was estimated using the Black-Scholes option-pricing model with the following assumptions and resulting grant-date fair value during the period presented: Nine Months Ended June 30, 2018 Expected volatility 29.2 % Expected dividend yield 0 % Risk-free interest rate 2.16 % Expected term (in years) 5.0 - 5.5 Weighted-average grant-date fair value $ 6.15 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 10. Accumulated Other Comprehensive Income The following table provides information on changes in accumulated other comprehensive income (“AOCI”) for the periods presented: Three Months Ended Nine Months Ended (in thousands) Defined Benefit Pension Plan Cash Flow Hedges (Effective Portion) Total AOCI Defined Benefit Pension Plan Cash Flow Hedges (Effective Portion) Total AOCI June 30, 2018 Beginning Balance $ (42,643 ) $ — $ (42,643 ) $ (43,875 ) $ — $ (43,875 ) Other comprehensive income, gross — — — — — — Amounts reclassified from other comprehensive income and included in earnings 880 — 880 2,640 — 2,640 Total other comprehensive income, before taxes 880 — 880 2,640 — 2,640 Income tax expense (211 ) — (211 ) (739 ) — (739 ) Ending Balance June 30, 2018 $ (41,974 ) $ — $ (41,974 ) $ (41,974 ) $ — $ (41,974 ) July 1, 2017 Beginning Balance $ (56,865 ) $ 89 $ (56,776 ) $ (58,878 ) $ (13 ) $ (58,891 ) Other comprehensive (loss) income, gross — (39 ) (39 ) — 344 344 Amounts reclassified from other comprehensive income and included in earnings 1,573 — 1,573 4,718 (227 ) 4,491 Total other comprehensive income (loss), before taxes 1,573 (39 ) 1,534 4,718 117 4,835 Income tax (expense) benefit (566 ) 13 (553 ) (1,698 ) (41 ) (1,739 ) Ending Balance July 1, 2017 $ (55,858 ) $ 63 $ (55,795 ) $ (55,858 ) $ 63 $ (55,795 ) |
Nature of Business and Basis 17
Nature of Business and Basis of Presentation (Policies) | 9 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and accounts have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and Article 8 of Regulation S-X. The Company’s fiscal year ends on the Saturday closest to September 30 with its quarters consisting of thirteen weeks in most years. In fiscal year 2018 , there is a total of 52 weeks. For fiscal years 2018 and 2017 , the third quarters both included 13 weeks. In the opinion of management, all adjustments considered necessary for a fair presentation of financial results have been made. Such adjustments consist of only those of a normal recurring nature. Operating results for any interim period are not necessarily indicative of the results that may be expected for the entire year. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The Condensed Consolidated Balance Sheet data as of September 30, 2017 was derived from the Company’s audited financial statements but do not include all disclosures required by generally accepted accounting principles. For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes for the fiscal year ended September 30, 2017 as set forth in the Company's 2017 Form 10-K filed on December 8, 2017 . |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions. At the date of the financial statements, these estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, and during the reporting period, these estimates and assumptions affect the reported amounts of revenues and expenses. For example, significant management judgments are required in determining excess, obsolete, or unsalable inventory, allowance for doubtful accounts, potential impairment of long-lived assets, goodwill and intangibles, the accounting for self-insurance reserves, warranty reserves, pension obligations, income taxes, environmental liabilities and contingencies. Future events and their effects cannot be predicted with certainty, and, accordingly, the Company’s accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the Company’s condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in the Company’s evaluations. Actual results could differ from the estimates that the Company has used. |
Recently Issued Accounting Standards and Recently Adopted Accounting Standards | Recently Issued Accounting Standards In March 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118", which updates income tax accounting to reflect the SEC's interpretive guidance released on December 22, 2017, when the Tax Cuts and Jobs Act (the "Tax Act") was signed into law. For more information regarding the impact of the Tax Act, see Note 5. Income Taxes . In June 2018, the FASB issued ASU No. 2018-07, "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting", which provides guidance on accounting for nonemployee share-based awards for goods or services received by a company. We have not granted any share-based awards to nonemployees. The impact of this guidance will be dependent on future grants, if any, of these forms of share-based awards. Recently Adopted Accounting Standards In the first quarter of fiscal 2018, the Company adopted ASU No. 2015-11, Simplifying the Measurement of Inventory , which requires inventory to be measured at the lower of cost or net realizable value. The adoption of this pronouncement did not have any impact on any component of our financial statements. |
Supplemental Financial Inform18
Supplemental Financial Information (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Condensed Financial Information [Abstract] | |
Inventory | Manufacturing cost includes raw materials, direct labor and manufacturing overhead. The following table presents the components of inventory at the dates indicated: (in thousands of dollars) June 30, 2018 September 30, 2017 Raw materials $ 67,677 $ 54,379 Work in process 34,741 14,660 Finished goods 10,609 7,116 Total inventory $ 113,027 $ 76,155 |
Product Warranties | The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two to five years , for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Balance at beginning of period $ 20,461 $ 16,654 $ 19,295 $ 16,187 Add current period deferred income 2,974 3,396 7,800 6,769 Current period recognition of income (1,434 ) (1,520 ) (5,094 ) (4,426 ) Balance at end of period $ 22,001 $ 18,530 $ 22,001 $ 18,530 The following table reflects activity in accrued warranty cost (current and long-term portion combined) for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Balance at beginning of period $ 19,283 $ 18,612 $ 20,910 $ 19,444 Add current period accruals 3,421 3,775 7,786 7,555 Current period reductions of accrual (2,853 ) (2,105 ) (8,845 ) (6,717 ) Balance at end of period $ 19,851 $ 20,282 $ 19,851 $ 20,282 |
Self-Insurance | The following table reflects our total accrued self-insurance liability, comprised of workers compensation and health insurance related claims, at the dates indicated: (in thousands of dollars) June 30, 2018 September 30, 2017 Current portion $ 3,595 $ 3,194 Long-term portion 2,294 2,251 Total accrued self-insurance $ 5,889 $ 5,445 |
Pension Expense | Components of net periodic pension benefit cost were as follows for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Interest cost $ 1,357 $ 1,266 $ 4,071 $ 3,797 Expected return on plan assets (1,776 ) (1,590 ) (5,328 ) (4,769 ) Amortization of prior loss 880 1,573 2,640 4,718 Net periodic benefit cost $ 461 $ 1,249 $ 1,383 $ 3,746 Amortization of prior loss, recognized in other comprehensive income 880 1,573 2,640 4,718 Total recognized in net periodic pension benefit cost and other comprehensive income $ (419 ) $ (324 ) $ (1,257 ) $ (972 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt consisted of the following at the dates indicated: (in thousands of dollars) June 30, 2018 September 30, 2017 2021 term loan, net of deferred financing costs of $2,203 and $2,776, respectively $ 145,797 $ 151,224 Less: current portion of long-term debt 8,000 8,000 Long-term debt, net of current portion $ 137,797 $ 143,224 |
Schedule of Maturities of Long-term Debt | The schedules of remaining principal maturities for the term loan for the next five fiscal years are as follows: (in thousands of dollars) Year Principal Payments 2018 $ 2,000 2019 8,000 2020 11,000 2021 15,000 2022 112,000 Total remaining principal payments $ 148,000 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The tables below present segment net sales and gross profit for the periods presented: Net sales Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Bus $ 297,653 $ 317,333 $ 647,525 $ 633,499 Parts 16,533 15,271 45,838 44,416 Segment net sales $ 314,186 $ 332,604 $ 693,363 $ 677,915 Gross profit Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Bus $ 31,342 $ 39,843 $ 63,062 $ 72,234 Parts 5,631 5,167 16,227 15,623 Segment gross profit $ 36,973 $ 45,010 $ 79,289 $ 87,857 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table is a reconciliation of segment gross profit to consolidated income before income taxes for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Segment gross profit $ 36,973 $ 45,010 $ 79,289 $ 87,857 Adjustments: Selling, general and administrative expenses (20,950 ) (16,331 ) (65,609 ) (53,782 ) 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 |
Revenue from External Customers by Geographic Areas | Sales are attributable to geographic areas based on customer location and were as follows for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 United States $ 274,984 $ 291,672 $ 628,046 $ 608,350 Canada 37,490 40,550 59,949 66,535 Rest of world 1,712 382 5,368 3,030 Total net sales $ 314,186 $ 332,604 $ 693,363 $ 677,915 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the earnings per share computation for the periods presented: Three Months Ended Nine Months Ended (in thousands except for share data) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Numerator: Net income $ 21,891 $ 20,032 $ 15,888 $ 14,257 Less: convertible preferred stock dividends 182 974 1,715 2,944 Net income available to common stockholders $ 21,709 $ 19,058 $ 14,173 $ 11,313 Basic earnings per share (1): Weighted average common shares outstanding 26,209,697 23,659,057 24,677,838 23,101,685 Basic earnings per share $ 0.83 $ 0.81 $ 0.57 $ 0.49 Diluted earnings per share (2): Weighted average common shares outstanding 26,209,697 23,659,057 24,677,838 23,101,685 Weighted average dilutive securities, convertible preferred stock 1,471,902 4,314,064 — — Weighted average dilutive securities, restricted stock 687 2,383 24,403 484 Weighted average dilutive securities, warrants 607,532 1,326,916 836,932 1,314,161 Weighted average dilutive securities, stock options 267,096 225,192 270,318 237,828 Weighted average shares and dilutive potential common shares 28,556,914 29,527,612 25,809,491 24,654,158 Diluted earnings per share $ 0.77 $ 0.68 $ 0.55 $ 0.46 (1) Basic earnings per share is calculated by dividing income available to common stockholders by the weighted average common shares outstanding during the period. (2) Diluted earnings per share is calculated by adjusting the weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding during the period, determined by using the treasury-stock method, and adjusting for the dilutive effect of our convertible preferred stock, determined by using the if-converted method. For the nine months ended June 30, 2018 and July 1, 2017 , 2,791,468 and 4,314,064 shares, respectively, of convertible preferred stock were excluded from the dilutive calculation as the if-converted impact would be anti-dilutive. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes the Company's restricted stock awards ("RSAs") and restricted stock units ("RSUs") award activity for the period presented: Nine Months Ended June 30, 2018 Restricted Stock Activity Number of Shares Weighted-Average Grant Date Fair Value Balance, beginning of period 75,590 $ 15.83 Granted 118,450 18.59 Vested (67,890 ) 15.86 Forfeited/canceled (8,076 ) 15.62 Balance, end of period 118,074 18.59 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the Company's stock option activity for the period presented: Nine Months Ended June 30, 2018 Stock Option Award Activity Number of Options Weighted Average Exercise Price per Share ($) Outstanding options, beginning of period 623,962 $ 11.15 Granted 215,530 16.61 Exercised (1) (73,102 ) 12.27 Forfeited (19,030 ) 15.50 Outstanding options, end of period (2) 747,360 12.50 Fully vested and exercisable options, end of period (3) 535,302 10.87 (1) Stock options exercised in the period had an aggregate intrinsic value totaling $0.6 million . (2) Stock options outstanding at the end of the period had an aggregate intrinsic value totaling $7.4 million . (3) Fully vested and exercisable options at the end of the period had an aggregate intrinsic value totaling $6.1 million with a weighted average contractual remaining term of 7.1 years . |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option award at grant date was estimated using the Black-Scholes option-pricing model with the following assumptions and resulting grant-date fair value during the period presented: Nine Months Ended June 30, 2018 Expected volatility 29.2 % Expected dividend yield 0 % Risk-free interest rate 2.16 % Expected term (in years) 5.0 - 5.5 Weighted-average grant-date fair value $ 6.15 |
Accumulated Other Comprehensi23
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides information on changes in accumulated other comprehensive income (“AOCI”) for the periods presented: Three Months Ended Nine Months Ended (in thousands) Defined Benefit Pension Plan Cash Flow Hedges (Effective Portion) Total AOCI Defined Benefit Pension Plan Cash Flow Hedges (Effective Portion) Total AOCI June 30, 2018 Beginning Balance $ (42,643 ) $ — $ (42,643 ) $ (43,875 ) $ — $ (43,875 ) Other comprehensive income, gross — — — — — — Amounts reclassified from other comprehensive income and included in earnings 880 — 880 2,640 — 2,640 Total other comprehensive income, before taxes 880 — 880 2,640 — 2,640 Income tax expense (211 ) — (211 ) (739 ) — (739 ) Ending Balance June 30, 2018 $ (41,974 ) $ — $ (41,974 ) $ (41,974 ) $ — $ (41,974 ) July 1, 2017 Beginning Balance $ (56,865 ) $ 89 $ (56,776 ) $ (58,878 ) $ (13 ) $ (58,891 ) Other comprehensive (loss) income, gross — (39 ) (39 ) — 344 344 Amounts reclassified from other comprehensive income and included in earnings 1,573 — 1,573 4,718 (227 ) 4,491 Total other comprehensive income (loss), before taxes 1,573 (39 ) 1,534 4,718 117 4,835 Income tax (expense) benefit (566 ) 13 (553 ) (1,698 ) (41 ) (1,739 ) Ending Balance July 1, 2017 $ (55,858 ) $ 63 $ (55,795 ) $ (55,858 ) $ 63 $ (55,795 ) |
Nature of Business and Basis 24
Nature of Business and Basis of Presentation - Preferred Stock Conversion (Details) | Apr. 24, 2018$ / sharesshares | Jun. 30, 2018$ / sharesshares | Sep. 30, 2017$ / shares |
Class of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Shares outstanding, preferred stock (in shares) | 93,000 | ||
Series A Preferred Stock | Series A Preferred Stock Converted to Common Stock | |||
Class of Stock [Line Items] | |||
Dividend rate, preferred stock | 7.625% | ||
Beneficial ownership limitation in excess of common stock | 9.99% | ||
Conversion of stock (in shares) | 307,000 | ||
Common Stock | Series A Preferred Stock Converted to Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||
Convertible preferred stock, shares issued upon conversion (in shares) | 2,649,962 | ||
Convertible preferred stock shares, conversion rate | 8.6318 |
Supplemental Financial Inform25
Supplemental Financial Information - Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Condensed Financial Information [Abstract] | ||
Raw materials | $ 67,677 | $ 54,379 |
Work in process | 34,741 | 14,660 |
Finished goods | 10,609 | 7,116 |
Total inventory | $ 113,027 | $ 76,155 |
Supplemental Financial Inform26
Supplemental Financial Information - Product Warranty Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 19,283 | $ 18,612 | $ 20,910 | $ 19,444 |
Add current period accruals | 3,421 | 3,775 | 7,786 | 7,555 |
Current period reductions of accrual | (2,853) | (2,105) | (8,845) | (6,717) |
Balance at end of period | $ 19,851 | $ 20,282 | $ 19,851 | $ 20,282 |
Supplemental Financial Inform27
Supplemental Financial Information - Extended Warranty Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Movement in Extended Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 20,461 | $ 16,654 | $ 19,295 | $ 16,187 |
Add current period deferred income | 2,974 | 3,396 | 7,800 | 6,769 |
Current period recognition of income | (1,434) | (1,520) | (5,094) | (4,426) |
Balance at end of period | $ 22,001 | $ 18,530 | $ 22,001 | $ 18,530 |
Supplemental Financial Inform28
Supplemental Financial Information - Self Insurance (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Condensed Financial Information [Abstract] | ||
Current portion | $ 3,595 | $ 3,194 |
Long-term portion | 2,294 | 2,251 |
Total accrued self-insurance | $ 5,889 | $ 5,445 |
Supplemental Financial Inform29
Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Product Warranty Liability [Line Items] | ||||
Shipping and handling revenues | $ 5 | $ 6.6 | $ 12 | $ 12.8 |
Shipping and handling cost of goods sold | $ 5.8 | $ 6 | $ 11.7 | $ 11.3 |
Warrants outstanding (in shares) | 2,296,738 | 2,296,738 | ||
Common stock shares that may be called by warrants (in shares) | 1,148,369 | 1,148,369 | ||
Minimum | ||||
Product Warranty Liability [Line Items] | ||||
Standard product warranty, period | 1 year | |||
Extended product warranty, period | 2 years | |||
Maximum | ||||
Product Warranty Liability [Line Items] | ||||
Standard product warranty, period | 5 years | |||
Extended product warranty, period | 5 years |
Supplemental Financial Inform30
Supplemental Financial Information - Pension Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Condensed Financial Information [Abstract] | ||||
Interest cost | $ 1,357 | $ 1,266 | $ 4,071 | $ 3,797 |
Expected return on plan assets | (1,776) | (1,590) | (5,328) | (4,769) |
Amortization of prior loss | 880 | 1,573 | 2,640 | 4,718 |
Net periodic benefit cost | 461 | 1,249 | 1,383 | 3,746 |
Amortization of prior loss, recognized in other comprehensive income | 880 | 1,573 | 2,640 | 4,718 |
Total recognized in net periodic pension benefit cost and other comprehensive income | $ (419) | $ (324) | $ (1,257) | $ (972) |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Sep. 30, 2017 | |
Debt Instrument [Line Items] | |||||
Loss on debt extinguishment | $ 0 | $ 0 | $ 0 | $ (10,142) | |
Interest expense | 1,800 | $ 1,400 | 5,100 | $ 5,800 | |
Senior Term Loan | Senior Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term line of credit | $ 148,000 | $ 148,000 | $ 154,000 | ||
Stated interest rate (as a percent) | 3.80% | 3.80% | 2.80% | ||
Weighted average effective interest rate (as a percent) | 3.90% | 3.90% | 4.50% | ||
Revolving Credit Facility | Credit Facility | Senior Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term line of credit | $ 0 | $ 0 | |||
Letters of Credit | Credit Facility | Senior Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Letters of credit, amount outstanding | 6,900 | 6,900 | |||
Remaining borrowing capacity | $ 68,100 | $ 68,100 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 8,000 | $ 8,000 |
Long-term debt | 137,797 | 143,224 |
Senior Term Loan | 2021 Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | 145,797 | 151,224 |
Deferred financing costs | $ 2,203 | $ 2,776 |
Debt - Maturity Schedule (Detai
Debt - Maturity Schedule (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Long-term Debt, Fiscal Year Maturity | |
2,018 | $ 2,000 |
2,019 | 8,000 |
2,020 | 11,000 |
2,021 | 15,000 |
2,022 | 112,000 |
Total debt | $ 148,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit, resulting from uncertain tax position lapse | $ 8 | |||
Benefit related to prior year tax return | 1.7 | |||
Reverse valuation allowance | $ 0.5 | |||
Effective tax rate (as a percent) | (53.40%) | 30.40% | (59.00%) | 31.80% |
Statutory Federal income tax rate (as a percent) | 24.50% | 35.00% | 24.50% | 35.00% |
Period expense for newly enacted US tax reform | $ 2.4 | |||
Increase in uncertain tax position | 1.1 | |||
Additional valuation allowance | $ 0.5 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018USD ($) | Jul. 01, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jul. 01, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Operating Segments | segment | 2 | |||
Net sales | $ 314,186 | $ 332,604 | $ 693,363 | $ 677,915 |
Gross profit | 36,973 | 45,010 | 79,289 | 87,857 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 274,984 | 291,672 | 628,046 | 608,350 |
Canada | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 37,490 | 40,550 | 59,949 | 66,535 |
Rest of world | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,712 | 382 | 5,368 | 3,030 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | 36,973 | 45,010 | 79,289 | 87,857 |
Operating Segments | Bus | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 297,653 | 317,333 | 647,525 | 633,499 |
Gross profit | 31,342 | 39,843 | 63,062 | 72,234 |
Operating Segments | Parts | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 16,533 | 15,271 | 45,838 | 44,416 |
Gross profit | $ 5,631 | $ 5,167 | $ 16,227 | $ 15,623 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Gross Profit (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment gross profit | $ 36,973 | $ 45,010 | $ 79,289 | $ 87,857 |
Selling, general and administrative expenses | (20,950) | (16,331) | (65,609) | (53,782) |
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 | 0 | 0 | 0 | (10,142) |
Income before income taxes | 14,008 | 27,286 | 9,594 | 17,986 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment gross profit | 36,973 | 45,010 | 79,289 | 87,857 |
Segment Reconciling Items | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Selling, general and administrative expenses | (20,950) | (16,331) | (65,609) | (53,782) |
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 | $ 0 | $ 0 | $ 0 | $ (10,142) |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 21,891 | $ 20,032 | $ 15,888 | $ 14,257 |
Less: convertible preferred stock dividends | 182 | 974 | 1,715 | 2,944 |
Net income available to common stockholders | $ 21,709 | $ 19,058 | $ 14,173 | $ 11,313 |
Weighted average common shares outstanding (in shares) | 26,209,697 | 23,659,057 | 24,677,838 | 23,101,685 |
Basic earnings per share (in dollars per share) | $ 0.83 | $ 0.81 | $ 0.57 | $ 0.49 |
Weighted average dilutive securities, convertible preferred stock (in shares) | 1,471,902 | 4,314,064 | 0 | 0 |
Weighted average dilutive securities, warrants (in shares) | 607,532 | 1,326,916 | 836,932 | 1,314,161 |
Weighted average shares and dilutive potential common shares (in shares) | 28,556,914 | 29,527,612 | 25,809,491 | 24,654,158 |
Diluted earnings per share (in dollars per share) | $ 0.77 | $ 0.68 | $ 0.55 | $ 0.46 |
Restricted Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted average dilutive securities, share-based compensation (in shares) | 687 | 2,383 | 24,403 | 484 |
Options | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted average dilutive securities, share-based compensation (in shares) | 267,096 | 225,192 | 270,318 | 237,828 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock and Unit Activity (Details) - Restricted Stock and Restricted Stock Units (RSUs) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | |
Number of Shares | ||
Balance, beginning of period (in shares) | shares | 75,590 | |
Granted (in shares) | shares | 118,450 | |
Vested (in shares) | shares | (67,890) | |
Forfeited/canceled (in shares) | shares | (8,076) | |
Balance, end of period (in shares) | shares | 118,074 | 118,074 |
Weighted-Average Grant Date Fair Value | ||
Balance, beginning of period (in dollars per share) | $ / shares | $ 15.83 | |
Granted (in dollars per share) | $ / shares | 18.59 | |
Vested (in dollars per share) | $ / shares | 15.86 | |
Forfeited/canceled (in dollars per share) | $ / shares | 15.62 | |
Balance, end of period (in dollars per share) | $ / shares | $ 18.59 | $ 18.59 |
Share-based compensation | $ | $ 0.5 | $ 1.4 |
Excess tax benefit | $ | 0.2 | 0.4 |
Unrecognized compensation cost | $ | $ 1.1 | $ 1.1 |
Period for recognition of unrecognized compensation costs | 6 months |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 9 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 2,791,468 | 4,314,064 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | |
Weighted Average Exercise Price per Share | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | $ 0.6 | |
Options | ||
Number of Shares | ||
Outstanding options, beginning of period (in shares) | shares | 623,962 | |
Granted (in shares) | shares | 215,530 | |
Exercised (in shares) | shares | (73,102) | |
Forfeited (in shares) | shares | (19,030) | |
Outstanding options, end of period (in shares) | shares | 747,360 | 747,360 |
Fully vested and exercisable options, end of period (in shares) | shares | 535,302 | 535,302 |
Weighted Average Exercise Price per Share | ||
Outstanding options, beginning of period (in dollars per share) | $ / shares | $ 11.15 | |
Granted (in dollars per share) | $ / shares | 16.61 | |
Exercised (in dollars per share) | $ / shares | 12.27 | |
Forfeited (in dollars per share) | $ / shares | 15.50 | |
Outstanding options, end of period (in dollars per share) | $ / shares | $ 12.50 | 12.50 |
Fully vested and exercisable options, end of period (in dollars per share) | $ / shares | $ 10.87 | $ 10.87 |
Outstanding options, Aggregate Intrinsic Value | $ | $ 7.4 | $ 7.4 |
Fully vested and exercisable options, end of period, Aggregate Intrinsic Value | $ | 6.1 | $ 6.1 |
Fully vested and exercisable options, end of period, Weighted Average Contractual Remaining Term | 7 years 1 month | |
Share-based compensation | $ | 0.3 | $ 0.8 |
Excess tax benefit | $ | 0.1 | 0.2 |
Unrecognized compensation cost | $ | $ 0.6 | $ 0.6 |
Period for recognition of unrecognized compensation costs | 6 months |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value Assumptions (Details) - Options | 9 Months Ended |
Jun. 30, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Volatility | 29.20% |
Dividend Yield | 0.00% |
Risk-Free Interest Rate | 2.16% |
Weighted-average grant date fair value of an option award granted in period (in dollars per share) | $ 6.15 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Term | 5 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Term | 5 years 6 months |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ (58,510) | |||
Ending Balance | $ (44,477) | (44,477) | ||
Total AOCI | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (42,643) | $ (56,776) | (43,875) | $ (58,891) |
Other comprehensive income (loss), gross | 0 | (39) | 0 | 344 |
Amounts reclassified from other comprehensive income and included in earnings | 880 | 1,573 | 2,640 | 4,491 |
Total other comprehensive income (loss), before taxes | 880 | 1,534 | 2,640 | 4,835 |
Income tax (expense) benefit | (211) | (553) | (739) | (1,739) |
Ending Balance | (41,974) | (55,795) | (41,974) | (55,795) |
Defined Benefit Pension Plan | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (42,643) | (56,865) | (43,875) | (58,878) |
Other comprehensive income (loss), gross | 0 | 0 | 0 | 0 |
Amounts reclassified from other comprehensive income and included in earnings | 880 | 1,573 | 2,640 | 4,718 |
Total other comprehensive income (loss), before taxes | 880 | 1,573 | 2,640 | 4,718 |
Income tax (expense) benefit | (211) | (566) | (739) | (1,698) |
Ending Balance | (41,974) | (55,858) | (41,974) | (55,858) |
Cash Flow Hedges (Effective Portion) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 0 | 89 | 0 | (13) |
Other comprehensive income (loss), gross | 0 | (39) | 0 | 344 |
Amounts reclassified from other comprehensive income and included in earnings | 0 | 0 | 0 | (227) |
Total other comprehensive income (loss), before taxes | 0 | (39) | 0 | 117 |
Income tax (expense) benefit | 0 | 13 | 0 | (41) |
Ending Balance | $ 0 | $ 63 | $ 0 | $ 63 |