Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 04, 2020 | Feb. 07, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Blue Bird Corp | |
Entity Central Index Key | 0001589526 | |
Current Fiscal Year End Date | --10-03 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jan. 4, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 26,839,825 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 04, 2020 | Sep. 28, 2019 |
Current assets | ||
Cash and cash equivalents | $ 7,700 | $ 70,959 |
Accounts receivable, net | 5,918 | 10,537 |
Inventories | 138,627 | 78,830 |
Other current assets | 11,853 | 11,765 |
Total current assets | 164,098 | 172,091 |
Property, plant and equipment, net | 104,341 | 100,058 |
Goodwill | 18,825 | 18,825 |
Intangible assets, net | 53,948 | 54,720 |
Equity investment in affiliate | 11,275 | 11,106 |
Deferred tax assets | 3,725 | 3,600 |
Finance lease right-of-use assets | 4,439 | 4,638 |
Other assets | 283 | 375 |
Total assets | 360,934 | 365,413 |
Current liabilities | ||
Accounts payable | 75,045 | 102,266 |
Warranty | 8,475 | 9,161 |
Accrued expenses | 23,904 | 28,697 |
Deferred warranty income | 8,424 | 8,632 |
Finance lease obligations | 724 | 716 |
Other current liabilities | 7,764 | 10,310 |
Current portion of long-term debt | 9,900 | 9,900 |
Total current liabilities | 134,236 | 169,682 |
Long-term liabilities | ||
Revolving credit facility | 35,000 | 0 |
Long-term debt | 170,973 | 173,226 |
Warranty | 13,256 | 13,182 |
Deferred warranty income | 14,320 | 15,413 |
Deferred tax liabilities | 271 | 168 |
Finance lease obligations | 3,734 | 3,921 |
Other liabilities | 12,085 | 12,108 |
Pension | 44,915 | 45,524 |
Total long-term liabilities | 294,554 | 263,542 |
Guarantees, commitments and contingencies (Note 6) | ||
Stockholders' deficit | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0 shares issued at January 4, 2020 and September 28, 2019 | 0 | 0 |
Common stock, $0.0001 par value, 100,000,000 shares authorized, 26,511,641 and 26,476,336 shares outstanding at January 4, 2020 and September 28, 2019, respectively | 3 | 3 |
Additional paid-in capital | 84,302 | 84,271 |
Accumulated deficit | (46,052) | (45,649) |
Accumulated other comprehensive loss | (55,827) | (56,154) |
Treasury stock, at cost, 1,782,568 shares at January 4, 2020 and September 28, 2019 | (50,282) | (50,282) |
Total stockholders' deficit | (67,856) | (67,811) |
Total liabilities and stockholders' deficit | $ 360,934 | $ 365,413 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jan. 04, 2020 | Sep. 28, 2019 |
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 | 0 | 0 |
Preferred Stock, Liquidation Preference, Value | $ 0 | $ 0 |
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 Outstanding | 26,511,641 | 26,476,336 |
Treasury Stock, Common, Shares | 1,782,568 | 1,782,568 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 04, 2020 | Dec. 29, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 153,217 | $ 154,926 |
Cost of goods sold | 131,917 | 135,816 |
Gross profit | 21,300 | 19,110 |
Operating expenses | ||
Selling, general and administrative expenses | 20,495 | 17,273 |
Operating profit | 805 | 1,837 |
Interest expense | (1,897) | (2,874) |
Interest income | 0 | 9 |
Other income (expense), net | 194 | (349) |
Loss before income taxes | (898) | (1,377) |
Income tax benefit | 326 | 236 |
Equity in net income (loss) of non-consolidated affiliate | 169 | (79) |
Net loss | $ (403) | $ (1,220) |
Earnings per share: | ||
Basic weighted average shares outstanding | 26,481,441 | 26,302,865 |
Diluted weighted average shares outstanding | 26,481,441 | 26,302,865 |
Basic earnings per share (in dollars per share) | $ (0.02) | $ (0.05) |
Diluted earnings per share (in dollars per share) | $ (0.02) | $ (0.05) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 04, 2020 | Dec. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (403) | $ (1,220) |
Other comprehensive income (loss), net of tax | ||
Net change in defined benefit pension plan | 327 | 524 |
Net unrealized loss on cash flow hedges | 0 | (814) |
Total other comprehensive income (loss) | 327 | (290) |
Comprehensive loss | $ (76) | $ (1,510) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 04, 2020 | Dec. 29, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (403) | $ (1,220) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 3,457 | 2,193 |
Non-cash interest expense | 618 | 213 |
Share-based compensation | 1,093 | 852 |
Equity in net income of affiliate | (169) | 79 |
(Gain) loss on disposal of fixed assets | (121) | 30 |
Deferred taxes | (125) | 267 |
Amortization of deferred actuarial pension losses | 430 | 689 |
Foreign currency hedges | 0 | 109 |
Changes in assets and liabilities: | ||
Accounts receivable | 4,619 | 13,793 |
Inventories | (59,797) | (26,884) |
Other assets | 3 | (4,805) |
Accounts payable | (25,071) | (28,299) |
Accrued expenses, pension and other liabilities | (10,522) | (5,225) |
Total adjustments | (85,585) | (46,988) |
Total cash used in operating activities | (85,988) | (48,208) |
Cash flows from investing activities | ||
Cash paid for fixed assets | (9,287) | (10,787) |
Proceeds from sale of fixed assets | 150 | 0 |
Total cash used in investing activities | (9,137) | (10,787) |
Cash flows from financing activities | ||
Borrowings under the revolving credit facility | 35,000 | 20,000 |
Borrowings under the senior term loan | 0 | 50,000 |
Repayments under the senior term loan | (2,475) | (2,475) |
Principal payments on finance leases | (225) | |
Cash paid for employee taxes on vested restricted shares and stock option exercises | (806) | (243) |
Proceeds from exercises of warrants | 372 | 620 |
Tender offer repurchase of common stock and preferred stock | 0 | 50,349 |
Total cash provided by financing activities | 31,866 | 17,553 |
Change in cash and cash equivalents | (63,259) | (41,442) |
Cash and cash equivalents, beginning of period | 70,959 | 60,260 |
Cash and cash equivalents, end of period | 7,700 | 18,818 |
Supplemental disclosures of cash flow information | ||
Interest paid, net of interest received | 2,235 | 2,430 |
Income tax paid, net of tax refunds | 0 | 9 |
Non-cash investing and financing activities: | ||
Changes in accounts payable for capital additions to property, plant and equipment | (2,150) | (1,575) |
Employee taxes payable on vested restricted shares and stock option exercises | (572) | 0 |
Cashless exercise of stock options | 195 | 0 |
Right-of-use assets obtained in exchange for operating lease obligations | 0 | 8,040 |
Conversion of preferred stock into common stock | $ 0 | $ 9,264 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Deficit Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In-Capital | Convertible Preferred Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Treasury Stock |
Beginning Balance (in shares) at Sep. 29, 2018 | 27,259,262 | 93,000 | 0 | ||||
Beginning Balance at Sep. 29, 2018 | $ (28,336) | $ 3 | $ 70,023 | $ 9,300 | $ (38,427) | $ (69,235) | $ 0 |
Warrant Exercises (in shares) | 54,435 | ||||||
Warrant exercises | 620 | 620 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 20,513 | ||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (239) | (239) | |||||
Stock option activity (in shares) | 331 | ||||||
Stock option activity | (4) | (4) | |||||
Share-based compensation expense | 821 | 821 | |||||
Tender offer share repurchases (in shares) | 1,782,568 | 364 | 1,782,568 | ||||
Tender offer share repurchases | (50,349) | (52) | $ (36) | $ (50,261) | |||
Preferred stock conversion (in shares) | 799,615 | 92,636 | |||||
Preferred stock conversion | 0 | 9,264 | $ (9,264) | ||||
Net loss | (1,220) | (1,220) | |||||
Other comprehensive income, net of tax | (290) | (290) | |||||
Ending Balance (in shares) at Dec. 29, 2018 | 26,351,588 | 0 | 1,782,568 | ||||
Ending Balance at Dec. 29, 2018 | (79,711) | $ 3 | 80,433 | $ 0 | (38,717) | (71,169) | $ (50,261) |
Beginning Balance (in shares) at Sep. 28, 2019 | 26,476,336 | 0 | 1,782,568 | ||||
Beginning Balance at Sep. 28, 2019 | (67,811) | $ 3 | 84,271 | $ 0 | (56,154) | (45,649) | $ (50,282) |
Warrant Exercises (in shares) | 32,321 | ||||||
Warrant exercises | 372 | 372 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 2,915 | ||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (1,368) | (1,368) | |||||
Stock option activity (in shares) | 69 | ||||||
Stock option activity | (10) | (10) | |||||
Share-based compensation expense | 1,037 | 1,037 | |||||
Net loss | (403) | (403) | |||||
Other comprehensive income, net of tax | 327 | 327 | |||||
Ending Balance (in shares) at Jan. 04, 2020 | 26,511,641 | 0 | 1,782,568 | ||||
Ending Balance at Jan. 04, 2020 | $ (67,856) | $ 3 | $ 84,302 | $ 0 | $ (55,827) | $ (46,052) | $ (50,282) |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Jan. 04, 2020 | |
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 2020 , there is a total of 53 weeks. The first quarters of fiscal 2020 and 2019 included 14 weeks and 13 weeks, respectively. 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 28, 2019 was derived from the Company’s audited financial statements but does 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 28, 2019 as set forth in the Company's 2019 Form 10-K filed on December 12, 2019 . 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 | 3 Months Ended |
Jan. 04, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Recently Issued Accounting Standards | 2. Summary of Significant Accounting Policies and Recently Issued Accounting Standards The Company’s significant accounting policies are described in the Company’s 2019 Form 10-K, filed with the SEC on December 12, 2019 . 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 three months ended January 4, 2020 , except as follows (and as discussed in the Recently Adopted Accounting Standards section of this Note 2 ): Amortization of Deferred Pension Losses Historically, the Company has amortized deferred losses from our frozen defined benefit pension plan accounted for under ASC 715, Compensation - Retirement Benefits, over the expected remaining employment period of the participants who remained employed with the Company. ASC 715 states that if all or almost all of a plan's participants are inactive, the average remaining life expectancy of the inactive participants shall be used to amortize the unrecognized net gain or loss instead of the average remaining service period of active plan participants. In the first quarter of 2020, the ratio of active (employed) to inactive participants in our plan declined to less than 10% , a figure we believe meets the definition of almost all participants as inactive. Accordingly, we have changed the amortization period from approximately seven years in 2019 to approximately 23 years in 2020. Future amortization periods (remaining life expectancy) will be determined based on the participant and actuarial data at that time . Recently Adopted Accounting Standards ASU 2018-02 – In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). This ASU provides guidance on a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for the effect of the tax rate change resulting from the Tax Cuts and Jobs Act (H.R.1) (the "Tax Act"). The amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We adopted this ASU, in the first quarter of fiscal 2020, and did not elect to reclassify the income tax effects of the Tax Act from AOCI to retained earnings. We use a specific identification approach to release the income tax effects in AOCI. ASU 2019-12 – In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the process for calculating interim (intraperiod) income taxes and the accounting for deferred tax liabilities for foreign equity-method investments, among other simplifications. We have early adopted this standard effective the first quarter of fiscal 2020. The impacts of adopting this standard were not material to us. Recently Issued Accounting Standards Other than the adoptions of ASU 2019-12 and ASU 2018-02 noted above, we believe that no new accounting guidance was issued during the three months ended January 4, 2020 that is relevant to our financial statements. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Jan. 04, 2020 | |
Condensed Financial Information [Abstract] | |
Supplemental Financial Information | 3. Supplemental Financial Information Inventories The following table presents the components of inventories at the dates indicated: (in thousands of dollars) January 4, 2020 September 28, 2019 Raw materials $ 113,186 $ 60,033 Work in process 23,614 16,663 Finished goods 1,827 2,134 Total inventories $ 138,627 $ 78,830 Product Warranties The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Balance at beginning of period $ 22,343 $ 22,646 Add current period accruals 1,501 1,590 Current period reductions of accrual (2,113 ) (2,378 ) Balance at end of period $ 21,731 $ 21,858 Extended 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 (in thousands of dollars) January 4, 2020 December 29, 2018 Balance at beginning of period $ 24,045 $ 23,191 Add current period deferred income 951 1,366 Current period recognition of income (2,252 ) (2,025 ) Balance at end of period $ 22,744 $ 22,532 The outstanding balance of deferred warranty income in the table above is considered a "contract liability", and represents a performance obligation of the Company that we satisfy over the term of the arrangement but for which we have been paid in full at the time the warranty was sold. We expect to recognize $6.4 million of the outstanding contract liability during the remainder of fiscal 2020 , $6.9 million in fiscal 2021 , and the remaining balance thereafter. 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) January 4, 2020 September 28, 2019 Current portion $ 3,061 $ 2,933 Long-term portion 1,844 1,775 Total accrued self-insurance $ 4,905 $ 4,708 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 were $3.5 million and $3.3 million for the three months ended January 4, 2020 and December 29, 2018 , respectively. The related cost of goods sold was $3.1 million and $3.0 million for the three months ended January 4, 2020 and December 29, 2018 , respectively. Pension Expense Components of net periodic pension benefit cost were as follows for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Interest cost $ 1,237 $ 1,512 Expected return on plan assets (1,846 ) (1,905 ) Amortization of prior loss 430 689 Net periodic benefit cost $ (179 ) $ 296 Amortization of prior loss, recognized in other comprehensive income 430 689 Total recognized in net periodic pension benefit cost and other comprehensive income $ (609 ) $ (393 ) Warrants At January 4, 2020 , there were a total of 683,674 warrants outstanding to purchase 341,837 shares of our Common Stock. The warrants expire on February 24, 2020. Derivative Instruments We are charged variable rates of interest on our indebtedness outstanding under the Amended Credit Agreement (defined below) which exposes us to fluctuations in interest rates. On October 24, 2018, the Company entered into a four -year interest rate collar with a $150.0 million notional value with an effective date of November 30, 2018. The collar was entered into in order to partially mitigate our exposure to interest rate fluctuations on our variable rate debt. The collar establishes a range where we will pay the counterparty if the three-month LIBOR rate falls below the established floor rate of 1.5% , and the counterparty will pay us if the three-month LIBOR rate exceeds the ceiling rate of 3.3% . The collar settles quarterly through the termination date of September 30, 2022. No payments or receipts are exchanged on the interest rate collar contracts unless interest rates rise above or fall below the contracted ceiling or floor rates. Changes in the interest rate collar fair value are recorded in interest expense as the collar does not qualify for hedge accounting. At January 4, 2020 , the fair value of the interest rate collar contract was $(0.8) million and is included in "other current liabilities" on the Condensed Consolidated Balance Sheets. The fair value of the interest rate collar is a Level 2 fair value measurement, based on quoted prices of similar items in active markets. |
Debt
Debt | 3 Months Ended |
Jan. 04, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt Term debt consisted of the following at the dates indicated: (in thousands of dollars) January 4, 2020 September 28, 2019 2023 term loan, net of deferred financing costs of $2,902 and $3,124, respectively $ 180,873 $ 183,126 Less: current portion of long-term debt 9,900 9,900 Long-term debt, net of current portion $ 170,973 $ 173,226 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 January 4, 2020 and September 28, 2019 , $183.8 million and $186.3 million , respectively, were outstanding on the term loans. At January 4, 2020 and September 28, 2019 , the stated interest rates on the term loans were 4.0% and 4.4% , respectively. At January 4, 2020 and September 28, 2019 , the weighted-average annual effective interest rates for the term loans were 4.5% and 5.0% , respectively, which includes amortization of the deferred financing costs. At January 4, 2020 , $35.0 million in borrowings were outstanding on the Revolving Credit Facility and $6.9 million of Letters of Credit were outstanding; therefore, the Company would have been able to borrow $58.1 million on the revolving line of credit. Interest expense on all indebtedness was $1.9 million and $2.9 million for the three months ended January 4, 2020 and December 29, 2018 , respectively. The schedule of remaining principal payments through maturity for total debt is as follows: (in thousands of dollars) Year Principal Payments 2020 $ 7,425 2021 9,900 2022 14,850 2023 186,600 Total remaining principal payments $ 218,775 |
Income Taxes
Income Taxes | 3 Months Ended |
Jan. 04, 2020 | |
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. Three Months The effective tax rate for the three month period ended January 4, 2020 was 36.3% , which differed from the 2019 statutory federal income tax rate of 21% . The difference is mainly due to normal tax rate items, such as federal and state tax credits (net of valuation allowance), which were partially offset by net non-deductible compensation expenses and other tax adjustments. The effective tax rate for the three month period ended December 29, 2018 was 17.1% , which differed from the statutory federal tax rate of 21% . The difference is mainly due to normal tax rate benefit items, such as federal and state tax credits (net of valuation allowance), which were partially offset by non-deductible share-based compensation expenses and other tax adjustments. |
Guarantees, Commitments and Con
Guarantees, Commitments and Contingencies | 3 Months Ended |
Jan. 04, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees, Commitments and Contingencies | 6. Guarantees, Commitments and Contingencies Litigation At January 4, 2020 , 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 pending environmental matters will not have a material adverse effect on the Company’s financial statements. Guarantees In the ordinary course of business, we may provide guarantees for certain transactions entered into by our dealers. At January 4, 2020 , we had a $3.0 million guarantee outstanding which relates to a guarantee of indebtedness for a term loan with remaining maturity up to 3.0 years . The $3.0 million represents the estimated maximum amount we would be required to pay upon default of all guaranteed indebtedness, and we believe the likelihood of required performance to be remote. At January 4, 2020 , $0.4 million was included in other current liabilities on our Condensed Consolidated Balance Sheets for the estimated fair value of the guarantee. Lease Commitments We have operating and finance leases for office space, warehouse space, or a combination of both. Our leases have a remaining term of 5.5 to 7.9 years with the option to extend leases for up to five years. |
Segment Information
Segment Information | 3 Months Ended |
Jan. 04, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 7. Segment Information We manage our business in two operating segments: (i) the Bus segment, which includes the manufacturing and assembly of buses to be sold to a variety of customers across the United States, Canada and in international markets; and (ii) the Parts segment, which consists primarily of the purchase of parts from third parties to be sold to dealers within the Company’s network. The tables below present segment net sales and gross profit for the periods presented: Net sales Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Bus (1) $ 134,772 $ 139,210 Parts (1) 18,445 15,716 Segment net sales $ 153,217 $ 154,926 (1) Parts segment revenue includes $1.2 million and $0.6 million for the three months ended January 4, 2020 and December 29, 2018 , respectively, related to inter-segment sales of parts that were eliminated by the Bus segment upon consolidation. Gross profit Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Bus $ 14,867 $ 13,515 Parts 6,433 5,595 Segment gross profit $ 21,300 $ 19,110 The following table is a reconciliation of segment gross profit to consolidated loss before income taxes for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Segment gross profit $ 21,300 $ 19,110 Adjustments: Selling, general and administrative expenses (20,495 ) (17,273 ) Interest expense (1,897 ) (2,874 ) Interest income — 9 Other income (expense), net 194 (349 ) Loss before income taxes $ (898 ) $ (1,377 ) Sales are attributable to geographic areas based on customer location and were as follows for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 United States $ 136,266 $ 151,485 Canada 13,156 3,076 Rest of world 3,795 365 Total net sales $ 153,217 $ 154,926 |
Revenue
Revenue | 3 Months Ended |
Jan. 04, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | 8. Revenue The following table disaggregates revenue by product category for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Diesel buses $ 76,750 $ 89,820 Alternative fuel buses (1) 51,734 43,081 Other (2) 6,843 6,802 Parts 17,890 15,223 Net sales $ 153,217 $ 154,926 (1) Includes buses sold with any fuel source other than diesel (e.g. gasoline, propane, CNG, electric). (2) Includes shipping and handling revenue, extended warranty income, surcharges, chassis, and bus shell sales. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jan. 04, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9. Earnings Per Share The following table presents the earnings per share computation for the periods presented: Three Months Ended (in thousands except for share data) January 4, 2020 December 29, 2018 Numerator: Net loss $ (403 ) $ (1,220 ) Denominator: Weighted-average common shares outstanding 26,481,441 26,302,865 Effect of dilutive securities (1) — — Weighted-average shares and dilutive potential common shares 26,481,441 26,302,865 Earnings per share: Basic loss per share $ (0.02 ) $ (0.05 ) Diluted loss per share $ (0.02 ) $ (0.05 ) (1) Potentially dilutive securities representing 1.3 million and 1.5 million shares of common stock were excluded from the computation of diluted earnings per share for the three months ended January 4, 2020 and December 29, 2018 , respectively, because their effect would have been antidilutive. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jan. 04, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 10. Accumulated Other Comprehensive Loss The following table provides information on changes in accumulated other comprehensive loss for the periods presented: Three Months Ended (in thousands of dollars) Defined Benefit Pension Plan Cash Flow Hedges (Effective Portion) Total January 4, 2020 Beginning Balance $ (56,154 ) $ — $ (56,154 ) Amounts reclassified from other comprehensive loss and included in earnings 430 — 430 Total other comprehensive income, before taxes 430 — 430 Income tax expense (103 ) — (103 ) Ending Balance January 4, 2020 $ (55,827 ) $ — $ (55,827 ) December 29, 2018 Beginning Balance $ (38,427 ) $ — $ (38,427 ) Other comprehensive income, gross — (1,130 ) (1,130 ) Amounts reclassified from other comprehensive loss and included in earnings 689 59 748 Total other comprehensive income (loss), before taxes 689 (1,071 ) (382 ) Income tax (expense) benefit (165 ) 257 92 Ending Balance December 29, 2018 $ (37,903 ) $ (814 ) $ (38,717 ) |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Policies) | 3 Months Ended |
Jan. 04, 2020 | |
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 2020 , there is a total of 53 weeks. The first quarters of fiscal 2020 and 2019 included 14 weeks and 13 weeks, respectively. 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 28, 2019 was derived from the Company’s audited financial statements but does 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 28, 2019 as set forth in the Company's 2019 Form 10-K filed on December 12, 2019 . |
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. |
Amortization of Deferred Pension Losses | Amortization of Deferred Pension Losses Historically, the Company has amortized deferred losses from our frozen defined benefit pension plan accounted for under ASC 715, Compensation - Retirement Benefits, over the expected remaining employment period of the participants who remained employed with the Company. ASC 715 states that if all or almost all of a plan's participants are inactive, the average remaining life expectancy of the inactive participants shall be used to amortize the unrecognized net gain or loss instead of the average remaining service period of active plan participants. In the first quarter of 2020, the ratio of active (employed) to inactive participants in our plan declined to less than 10% , a figure we believe meets the definition of almost all participants as inactive. Accordingly, we have changed the amortization period from approximately seven years in 2019 to approximately 23 years in 2020. Future amortization periods (remaining life expectancy) will be determined based on the participant and actuarial data at that time . |
Recently Issued Accounting Standards and Recently Adopted Accounting Standards | Recently Adopted Accounting Standards ASU 2018-02 – In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). This ASU provides guidance on a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for the effect of the tax rate change resulting from the Tax Cuts and Jobs Act (H.R.1) (the "Tax Act"). The amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We adopted this ASU, in the first quarter of fiscal 2020, and did not elect to reclassify the income tax effects of the Tax Act from AOCI to retained earnings. We use a specific identification approach to release the income tax effects in AOCI. ASU 2019-12 – In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the process for calculating interim (intraperiod) income taxes and the accounting for deferred tax liabilities for foreign equity-method investments, among other simplifications. We have early adopted this standard effective the first quarter of fiscal 2020. The impacts of adopting this standard were not material to us. Recently Issued Accounting Standards Other than the adoptions of ASU 2019-12 and ASU 2018-02 noted above, we believe that no new accounting guidance was issued during the three months ended January 4, 2020 that is relevant to our financial statements. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Jan. 04, 2020 | |
Condensed Financial Information [Abstract] | |
Inventories | The following table presents the components of inventories at the dates indicated: (in thousands of dollars) January 4, 2020 September 28, 2019 Raw materials $ 113,186 $ 60,033 Work in process 23,614 16,663 Finished goods 1,827 2,134 Total inventories $ 138,627 $ 78,830 |
Product Warranties | The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Balance at beginning of period $ 22,343 $ 22,646 Add current period accruals 1,501 1,590 Current period reductions of accrual (2,113 ) (2,378 ) Balance at end of period $ 21,731 $ 21,858 Extended 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 (in thousands of dollars) January 4, 2020 December 29, 2018 Balance at beginning of period $ 24,045 $ 23,191 Add current period deferred income 951 1,366 Current period recognition of income (2,252 ) (2,025 ) Balance at end of period $ 22,744 $ 22,532 |
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) January 4, 2020 September 28, 2019 Current portion $ 3,061 $ 2,933 Long-term portion 1,844 1,775 Total accrued self-insurance $ 4,905 $ 4,708 |
Pension Expense | Components of net periodic pension benefit cost were as follows for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Interest cost $ 1,237 $ 1,512 Expected return on plan assets (1,846 ) (1,905 ) Amortization of prior loss 430 689 Net periodic benefit cost $ (179 ) $ 296 Amortization of prior loss, recognized in other comprehensive income 430 689 Total recognized in net periodic pension benefit cost and other comprehensive income $ (609 ) $ (393 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jan. 04, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Term Debt Instruments | Term debt consisted of the following at the dates indicated: (in thousands of dollars) January 4, 2020 September 28, 2019 2023 term loan, net of deferred financing costs of $2,902 and $3,124, respectively $ 180,873 $ 183,126 Less: current portion of long-term debt 9,900 9,900 Long-term debt, net of current portion $ 170,973 $ 173,226 |
Schedule of Maturities of Long-term Debt | The schedule of remaining principal payments through maturity for total debt is as follows: (in thousands of dollars) Year Principal Payments 2020 $ 7,425 2021 9,900 2022 14,850 2023 186,600 Total remaining principal payments $ 218,775 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jan. 04, 2020 | |
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 (in thousands of dollars) January 4, 2020 December 29, 2018 Bus (1) $ 134,772 $ 139,210 Parts (1) 18,445 15,716 Segment net sales $ 153,217 $ 154,926 (1) Parts segment revenue includes $1.2 million and $0.6 million for the three months ended January 4, 2020 and December 29, 2018 , respectively, related to inter-segment sales of parts that were eliminated by the Bus segment upon consolidation. Gross profit Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Bus $ 14,867 $ 13,515 Parts 6,433 5,595 Segment gross profit $ 21,300 $ 19,110 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table is a reconciliation of segment gross profit to consolidated loss before income taxes for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Segment gross profit $ 21,300 $ 19,110 Adjustments: Selling, general and administrative expenses (20,495 ) (17,273 ) Interest expense (1,897 ) (2,874 ) Interest income — 9 Other income (expense), net 194 (349 ) Loss before income taxes $ (898 ) $ (1,377 ) |
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 (in thousands of dollars) January 4, 2020 December 29, 2018 United States $ 136,266 $ 151,485 Canada 13,156 3,076 Rest of world 3,795 365 Total net sales $ 153,217 $ 154,926 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jan. 04, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates revenue by product category for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Diesel buses $ 76,750 $ 89,820 Alternative fuel buses (1) 51,734 43,081 Other (2) 6,843 6,802 Parts 17,890 15,223 Net sales $ 153,217 $ 154,926 (1) Includes buses sold with any fuel source other than diesel (e.g. gasoline, propane, CNG, electric). (2) Includes shipping and handling revenue, extended warranty income, surcharges, chassis, and bus shell sales |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jan. 04, 2020 | |
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 (in thousands except for share data) January 4, 2020 December 29, 2018 Numerator: Net loss $ (403 ) $ (1,220 ) Denominator: Weighted-average common shares outstanding 26,481,441 26,302,865 Effect of dilutive securities (1) — — Weighted-average shares and dilutive potential common shares 26,481,441 26,302,865 Earnings per share: Basic loss per share $ (0.02 ) $ (0.05 ) Diluted loss per share $ (0.02 ) $ (0.05 ) (1) Potentially dilutive securities representing 1.3 million and 1.5 million shares of common stock were excluded from the computation of diluted earnings per share for the three months ended January 4, 2020 and December 29, 2018 , respectively, because their effect would have been antidilutive. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jan. 04, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides information on changes in accumulated other comprehensive loss for the periods presented: Three Months Ended (in thousands of dollars) Defined Benefit Pension Plan Cash Flow Hedges (Effective Portion) Total January 4, 2020 Beginning Balance $ (56,154 ) $ — $ (56,154 ) Amounts reclassified from other comprehensive loss and included in earnings 430 — 430 Total other comprehensive income, before taxes 430 — 430 Income tax expense (103 ) — (103 ) Ending Balance January 4, 2020 $ (55,827 ) $ — $ (55,827 ) December 29, 2018 Beginning Balance $ (38,427 ) $ — $ (38,427 ) Other comprehensive income, gross — (1,130 ) (1,130 ) Amounts reclassified from other comprehensive loss and included in earnings 689 59 748 Total other comprehensive income (loss), before taxes 689 (1,071 ) (382 ) Income tax (expense) benefit (165 ) 257 92 Ending Balance December 29, 2018 $ (37,903 ) $ (814 ) $ (38,717 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Recently Issued Accounting Standards Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jan. 04, 2020 | Oct. 03, 2020 | Sep. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Percentage of active participants (less than) | 10.00% | ||
Amortization period of deferred pension losses | 7 years | ||
Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Adoption of new revenue recognition standard (ASC 606) adjustment | $ (714) | ||
Scenario, Forecast | Subsequent Event | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Amortization period of deferred pension losses | 23 years |
Supplemental Financial Inform_3
Supplemental Financial Information - Inventories (Details) - USD ($) $ in Thousands | Jan. 04, 2020 | Sep. 28, 2019 |
Condensed Financial Information [Abstract] | ||
Raw materials | $ 113,186 | $ 60,033 |
Work in process | 23,614 | 16,663 |
Finished goods | 1,827 | 2,134 |
Total inventories | $ 138,627 | $ 78,830 |
Supplemental Financial Inform_4
Supplemental Financial Information - Product Warranty Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 04, 2020 | Dec. 29, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 22,343 | $ 22,646 |
Add current period accruals | 1,501 | 1,590 |
Current period reductions of accrual | (2,113) | (2,378) |
Balance at end of period | $ 21,731 | $ 21,858 |
Supplemental Financial Inform_5
Supplemental Financial Information - Extended Warranty Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 04, 2020 | Dec. 29, 2018 | |
Movement in Extended Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 24,045 | $ 23,191 |
Add current period deferred income | 951 | 1,366 |
Current period recognition of income | (2,252) | (2,025) |
Balance at end of period | $ 22,744 | $ 22,532 |
Supplemental Financial Inform_6
Supplemental Financial Information Remaining Performance Obligation (Details) $ in Millions | Jan. 04, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 6.4 |
Revenue, performance obligation, (in years) | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 6.9 |
Revenue, performance obligation, (in years) | 1 year |
Supplemental Financial Inform_7
Supplemental Financial Information - Self Insurance (Details) - USD ($) $ in Thousands | Jan. 04, 2020 | Sep. 28, 2019 |
Condensed Financial Information [Abstract] | ||
Current portion | $ 3,061 | $ 2,933 |
Long-term portion | 1,844 | 1,775 |
Total accrued self-insurance | $ 4,905 | $ 4,708 |
Supplemental Financial Inform_8
Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 04, 2020 | Dec. 29, 2018 | |
Product Warranty Liability [Line Items] | ||
Shipping and handling revenues | $ 3.5 | $ 3.3 |
Shipping and handling cost of goods sold | $ 3.1 | $ 3 |
Warrants outstanding (in shares) | 683,674 | |
Common stock shares that may be called by warrants (in shares) | 341,837 | |
Minimum | ||
Product Warranty Liability [Line Items] | ||
Extended product warranty, period | 2 years | |
Maximum | ||
Product Warranty Liability [Line Items] | ||
Extended product warranty, period | 5 years |
Supplemental Financial Inform_9
Supplemental Financial Information - Pension Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 04, 2020 | Dec. 29, 2018 | |
Condensed Financial Information [Abstract] | ||
Interest cost | $ 1,237 | $ 1,512 |
Expected return on plan assets | (1,846) | (1,905) |
Amortization of prior loss | 430 | 689 |
Net periodic benefit cost | (179) | 296 |
Amortization of prior loss, recognized in other comprehensive income | 430 | 689 |
Total recognized in net periodic pension benefit cost and other comprehensive income | $ (609) | $ (393) |
Supplemental Financial Infor_10
Supplemental Financial Information Supplemental Financial Information - Derivative Instruments (Details) - USD ($) $ in Millions | Nov. 30, 2018 | Jan. 04, 2020 |
Condensed Financial Information [Abstract] | ||
Interest rate collar | 4 years | |
Derivative, notional amount | $ 150 | |
Floor interest rate | 1.50% | |
Ceiling interest rate | 3.30% | |
Fair value of interest rate contract | $ (0.8) |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 04, 2020 | Dec. 29, 2018 | Sep. 28, 2019 | |
Debt Instrument [Line Items] | |||
Interest expense | $ 1,900 | $ 2,900 | |
Senior Term Loan | Senior Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | $ 183,800 | $ 186,300 | |
Stated interest rate (as a percent) | 4.00% | 4.40% | |
Weighted average effective interest rate (as a percent) | 4.50% | 5.00% | |
Revolving Credit Facility | Credit Facility | Senior Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | $ 35,000 | ||
Letters of Credit | Credit Facility | Senior Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Letters of credit, amount outstanding | 6,900 | ||
Remaining borrowing capacity | $ 58,100 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jan. 04, 2020 | Sep. 28, 2019 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 9,900 | $ 9,900 |
Long-term debt | 170,973 | 173,226 |
Senior Term Loan | 2023 Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | 180,873 | 183,126 |
Deferred financing costs | $ 2,902 | $ 3,124 |
Debt - Maturity Schedule (Detai
Debt - Maturity Schedule (Details) $ in Thousands | Jan. 04, 2020USD ($) |
Long-term Debt, Fiscal Year Maturity | |
2020 | $ 7,425 |
2021 | 9,900 |
2022 | 14,850 |
2023 | 186,600 |
Total debt | $ 218,775 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 04, 2020 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (as a percent) | 36.30% | 17.10% |
Statutory Federal income tax rate (as a percent) | 21.00% | 21.00% |
Income tax benefit, due to lapse of statute of limitations | $ 8.1 | |
Benefit related to prior year tax returns | 1.7 | |
Additional valuation allowance | 0.5 | |
Income tax expense to reflect U.S. Tax reform | 2.4 | |
Increase in uncertain tax position | $ 1.1 |
Guarantees, Commitments and C_2
Guarantees, Commitments and Contingencies Gaurantees, Commitments and Contingencies - Narrative (Details) $ in Millions | 3 Months Ended |
Jan. 04, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Maximum exposure of guarantor | $ 3 |
Fair value of guarantees | $ 0.4 |
Renewal term | 5 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 5 years 6 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 7 years 11 months |
Senior Term Loan | 2023 Term Loan | |
Lessee, Lease, Description [Line Items] | |
Remaining maturity on term loan (up to) | 3 years |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Jan. 04, 2020USD ($)segment | Dec. 29, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Operating Segments | segment | 2 | |
Net sales | $ 153,217 | $ 154,926 |
Gross profit | 21,300 | 19,110 |
United States | ||
Segment Reporting Information [Line Items] | ||
Net sales | 136,266 | 151,485 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Net sales | 13,156 | 3,076 |
Rest of world | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,795 | 365 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 21,300 | 19,110 |
Operating Segments | Bus | ||
Segment Reporting Information [Line Items] | ||
Net sales | 134,772 | 139,210 |
Gross profit | 14,867 | 13,515 |
Operating Segments | Parts | ||
Segment Reporting Information [Line Items] | ||
Net sales | 18,445 | 15,716 |
Gross profit | 6,433 | 5,595 |
Intersegment Eliminations | Parts | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,200 | $ 600 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Gross Profit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 04, 2020 | Dec. 29, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment gross profit | $ 21,300 | $ 19,110 |
Selling, general and administrative expenses | (20,495) | (17,273) |
Interest expense | (1,897) | (2,874) |
Interest income | 0 | 9 |
Other income (expense), net | 194 | (349) |
Loss before income taxes | (898) | (1,377) |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment gross profit | 21,300 | 19,110 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Selling, general and administrative expenses | (20,495) | (17,273) |
Interest expense | (1,897) | (2,874) |
Interest income | 0 | 9 |
Other income (expense), net | $ 194 | $ (349) |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 04, 2020 | Dec. 29, 2018 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 153,217 | $ 154,926 | |
Diesel buses | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 76,750 | 89,820 | |
Alternative fuel buses | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 51,734 | 43,081 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 6,843 | 6,802 | |
Parts | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 17,890 | $ 15,223 | |
Accounting Standards Update 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Adoption of new revenue recognition standard (ASC 606) adjustment | $ (714) |
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 | |
Jan. 04, 2020 | Dec. 29, 2018 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (403) | $ (1,220) |
Weighted average common shares outstanding (in shares) | 26,481,441 | 26,302,865 |
Basic earnings per share (in dollars per share) | $ (0.02) | $ (0.05) |
Diluted weighted average shares outstanding | 26,481,441 | 26,302,865 |
Diluted earnings per share (in dollars per share) | $ (0.02) | $ (0.05) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Jan. 04, 2020 | Dec. 29, 2018 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 1.3 | 1.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 04, 2020 | Dec. 29, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ (67,811) | |
Other comprehensive income, gross | $ (1,130) | |
Amounts reclassified from other comprehensive loss and included in earnings | 430 | 748 |
Total amount recognized in other comprehensive loss | 430 | (382) |
Income tax (expense) benefit | (103) | 92 |
Ending Balance | (67,856) | |
Defined Benefit Pension Plan | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (56,154) | (38,427) |
Other comprehensive income, gross | 0 | |
Amounts reclassified from other comprehensive loss and included in earnings | 430 | 689 |
Total amount recognized in other comprehensive loss | 430 | 689 |
Income tax (expense) benefit | (103) | (165) |
Ending Balance | (55,827) | (37,903) |
Cash Flow Hedges (Effective Portion) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Other comprehensive income, gross | (1,130) | |
Amounts reclassified from other comprehensive loss and included in earnings | 0 | 59 |
Total amount recognized in other comprehensive loss | 0 | (1,071) |
Income tax (expense) benefit | 0 | 257 |
Ending Balance | 0 | (814) |
AOCI Attributable to Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (56,154) | (38,427) |
Ending Balance | $ (55,827) | $ (38,717) |
Uncategorized Items - blbd-2019
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (714,000) |