Blue Bird (BLBD) 10-Q 9 Feb 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Feb. 07, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Blue Bird Corp
Entity Central Index Key	1,589,526
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		23,030,028

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Oct. 01, 2016
Current assets
Cash and cash equivalents	$ 12,999	$ 52,309
Accounts receivable, net	18,952	20,315
Inventories	71,865	53,806
Other current assets	6,327	6,104
Total current assets	110,143	132,534
Property, plant and equipment, net	33,000	33,466
Goodwill	18,825	18,825
Intangible assets, net	59,024	59,491
Equity investment in affiliate	13,693	12,944
Deferred tax asset	22,308	19,080
Other assets	833	1,526
Total assets	257,826	277,866
Current liabilities
Accounts payable	67,949	80,646
Warranty	7,327	7,972
Accrued expenses	17,232	20,455
Deferred warranty income	5,653	5,666
Other current liabilities	4,217	4,032
Current portion of senior term debt	8,000	11,750
Total current liabilities	110,378	130,521
Long-term liabilities
Long-term debt	148,720	140,366
Warranty	10,991	11,472
Deferred warranty income	10,156	10,521
Other liabilities	15,759	15,592
Pension	54,940	56,368
Total long-term liabilities	240,566	234,319
Guarantees, commitments and contingencies (Note 6)
Stockholders' deficit
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 500,000 issued with liquidation preference of $50,000	50,000	50,000
Common stock, $0.0001 par value, 100,000,000 shares authorized, 22,813,578 and 22,518,058 issued and outstanding at December 31, 2016 and October 1, 2016, respectively.	2	2
Additional paid-in capital	51,995	50,771
Accumulated deficit	(137,379)	(128,856)
Accumulated other comprehensive loss	(57,736)	(58,891)
Total stockholders' deficit	(93,118)	(86,974)
Total liabilities and stockholders' deficit	$ 257,826	$ 277,866

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2016	Oct. 01, 2016
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	500,000	500,000
Preferred Stock, Liquidation Preference, Value	$ 50,000,000	$ 50,000,000
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	22,813,578	22,518,058
Common Stock, Shares Outstanding	22,813,578	22,518,058

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Income Statement [Abstract]
Net sales	$ 136,660	$ 131,333
Cost of goods sold	118,462	112,580
Gross profit	18,198	18,753
Operating expenses
Selling, general and administrative expenses	18,192	17,079
Operating profit	6	1,674
Interest expense	(2,688)	(4,243)
Interest income	7	22
Other income, net	0	16
Loss on debt extinguishment	(10,142)	0
Loss before income taxes	(12,817)	(2,531)
Income tax benefit (expense)	3,626	(209)
Equity in net income of non-consolidated affiliate	749	421
Net loss from continuing operations	(8,442)	(2,319)
Loss from discontinued operations, net of tax	(81)	(18)
Net loss	(8,523)	(2,337)
Defined benefit pension plan, net of tax expense of $567 and $419, respectively	1,006	778
Cash flow hedge gain, net of tax expense of $80 and $0, respectively	149	0
Comprehensive loss	(7,368)	(1,559)
Net loss (from above)	(8,523)	(2,337)
Less: preferred stock dividends	953	998
Net loss available to common stockholders	$ (9,476)	$ (3,335)
Earnings per share:
Basic weighted average shares outstanding	22,596,314	20,897,789
Basic earnings (loss) per share	$ (0.42)	$ (0.16)
Diluted weighted average shares outstanding	22,596,314	20,897,789
Diluted earnings (loss) per share	$ (0.42)	$ (0.16)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Income Statement [Abstract]
Defined benefit pension plan, net of tax expense of $567 and $419, respectively	$ 567	$ 419
Cash flow hedge gain, net of tax expense of $80 and $0, respectively	$ 80	$ 0

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Cash flows from operating activities
Net loss	$ (8,523)	$ (2,337)
Loss from discontinued operations, net of tax	81	18
Adjustments to reconcile net loss to net cash used in continuing operations
Depreciation and amortization	2,023	1,994
Amortization of debt costs	514	719
Share-based compensation	0	1,138
Equity in net income of affiliate	(749)	(421)
Deferred taxes	(3,875)	(88)
Provision for bad debt	0	(5)
Amortization of deferred actuarial pension losses	1,573	1,197
Loss on debt extinguishment	10,142	0
Changes in assets and liabilities:
Accounts receivable	1,363	1,345
Inventories	(18,059)	(22,308)
Other assets	(23)	(392)
Accounts payable	(10,831)	(12,322)
Accrued expenses, pension and other liabilities	(5,715)	(10,086)
Total adjustments	(23,637)	(39,229)
Net cash used in continuing operations	(32,079)	(41,548)
Net cash used in discontinued operations	(127)	(18)
Total cash used in operating activities	(32,206)	(41,566)
Cash flows from investing activities
Cash paid for fixed assets	(2,956)	(1,671)
Total cash used in investing activities	(2,956)	(1,671)
Cash flows from financing activities
Net borrowings under the senior credit facility	0	10,000
Repayments under the former senior term loan	(161,500)	(2,938)
Borrowings under new term loan	156,887	0
Cash paid for capital leases	(42)	(54)
Cash paid for debt issuance costs	(210)	0
Cash paid to extinguish debt	(507)	0
Payment of dividend on preferred stock	(953)	0
Cash paid for employee taxes on stock option exercises	(613)	0
Proceeds from exercises of warrants	2,790	0
Total cash (used in) provided by financing activities	(4,148)	7,008
Change in cash and cash equivalents	(39,310)	(36,229)
Cash and cash equivalents, beginning of period	52,309	52,861
Cash and cash equivalents, end of period	12,999	16,632
Supplemental disclosures of cash flow information
Interest paid, net of interest received	1,866	3,462
Income tax paid, net of tax refunds	503	218
Non-cash Investing and Financing activities
Change in accounts payable for capital additions to property, plant and equipment	(1,866)	618
Common stock dividend on Series A preferred stock (market value of common shares)	0	998
Cashless exercise of stock options	$ 2,900	$ 0

Nature of Business and Basis of

Nature of Business and Basis of Presentation	3 Months Ended
	Dec. 31, 2016
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 On February 24, 2015, Hennessy Capital Acquisition Corp. ("HCAC") consummated its business combination (the “Business Combination”), pursuant to which HCAC acquired all of the outstanding capital stock of School Bus Holdings, Inc. (“SBH”) from The Traxis Group B.V. (the “Seller” or "Traxis"). SBH operates its business of designing and manufacturing school buses through subsidiaries and under the Blue Bird Corporation (“Blue Bird”) name. In the Business Combination, the total purchase price was paid in a combination of cash ( $100 million ) and in shares of HCAC’s Common Stock ( 12,000,000 shares valued at a total of $120 million ). In connection with the closing of the Business Combination, we changed our name from Hennessy Capital Acquisition Corp. to Blue Bird Corporation. Upon consummation of the Business Combination, SBH became a wholly-owned subsidiary of Blue Bird Corporation and SBH’s direct and indirect subsidiaries became indirect subsidiaries of our parent corporation. Pursuant to, and subject to the terms of, a Purchase and Sale Agreement, dated as of May 26, 2016 (the “Purchase Agreement”), by and among Traxis, ASP BB Holdings LLC, a Delaware limited liability company (“ASP”), and the Company, Traxis agreed to sell and ASP agreed to purchase all of the 12,000,000 shares of common stock, par value $0.0001 (the “Common Stock”), of the Company owned by Traxis (the “Transaction Shares”). Subject to the terms and conditions set forth in the Purchase Agreement, ASP acquired 7,000,000 Transaction Shares at an initial closing on June 3, 2016 for an amount in cash equal to $10.10 per share and 5,000,000 Transaction Shares at a second closing on June 8, 2016 for an amount in cash equal to $11.00 per share, for an aggregate purchase price of $125.7 million . There were no proceeds to the Company from this transaction. The sale of Transaction Shares triggered a phantom equity compensation payment. This payment was primarily funded by Traxis and not by the Company. Blue Bird Body Company, a wholly-owned subsidiary of Blue Bird, 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 Fort Valley, 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 2017 , there are a total of 52 weeks. For fiscal years 2017 and 2016 , the first 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 October 1, 2016 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 October 1, 2016 as set forth in the Company's 2016 Form 10-K filed on December 15, 2016 . The Business Combination was accounted for as a reverse acquisition, since immediately following completion of the transaction, the sole stockholder of SBH immediately prior to the Business Combination maintained effective control of Blue Bird Corporation, the post-combination company. For accounting purposes, SBH is deemed the accounting acquirer in the transaction and, consequently, the transaction is treated as a recapitalization of SBH (i.e., a capital transaction involving the issuance of stock and payment of cash by HCAC for the stock of SBH). Accordingly, the consolidated assets, liabilities and results of operations of SBH are the historical financial statements of Blue Bird Corporation, and HCAC assets, liabilities and results of operations are consolidated with SBH beginning on the acquisition date. No step-up in basis of intangible assets or goodwill was recorded in this transaction. We have effected this treatment through opening stockholders' deficit by adjusting the number of our common shares outstanding. Other than transaction costs paid and a contribution from our majority stockholder for payment of management incentive compensation related to the transaction, the transaction was primarily non-cash and involved exchanges of consideration and equity between our majority stockholder and HCAC and its related entities. 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
	Dec. 31, 2016
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 2016 Form 10-K, filed with the SEC on December 15, 2016 . 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 December 31, 2016 . Recently Adopted Accounting Standards ASU 2015-17 — In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities to be classified as non-current on the balance sheet. The standard is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. The Company elected to early adopt this standard on a retrospective basis in the first quarter of fiscal 2017, and reclassified $7.6 million of current deferred tax assets to long-term deferred tax assets, resulting in a total of $19.1 million of long-term deferred tax assets at October 1, 2016 , compared to the prior presentation of $11.5 million . All future deferred tax assets and liabilities will be recorded as long-term. Recently Issued Accounting Standards We believe that no new accounting guidance was issued during the three months ended December 31, 2016 that is relevant to our financial statements.

Supplemental Financial Informat

Supplemental Financial Information	3 Months Ended
	Dec. 31, 2016
Condensed Financial Information [Abstract]
Supplemental Financial Information	3. Supplemental Financial Information Inventory The Company values inventories at the lower of cost or market 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) December 31, 2016 October 1, 2016 Raw materials $ 50,887 $ 40,940 Work in process 18,129 10,011 Finished goods 2,849 2,855 Total inventory $ 71,865 $ 53,806 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 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 for accuracy in addressing reserve requirements. Actual claims incurred could differ from the original estimates, requiring future adjustments. 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 in the Consolidated Statements of Operations and Comprehensive Loss. The methodology 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 accrued warranty cost (current and long-term portion combined) for the periods presented: Three Months Ended (in thousands of dollars) December 31, 2016 January 2, 2016 Balance at beginning of period $ 19,444 $ 17,661 Add current period accruals 1,453 1,385 Current period reductions of accrual (2,579 ) (2,463 ) Balance at end of period $ 18,318 $ 16,583 The following table reflects activity in deferred warranty income (current and long-term portion combined), for the sale of extended warranties of two to five years , for the periods presented: Three Months Ended (in thousands of dollars) December 31, 2016 January 2, 2016 Balance at beginning of period $ 16,187 $ 14,145 Add current period deferred income 1,129 1,186 Current period recognition of income (1,507 ) (1,249 ) Balance at end of period $ 15,809 $ 14,082 Self-Insurance The following table reflects total accrued self-insurance liability, comprised of workers compensation and health insurance related claims, at the dates indicated: (in thousands of dollars) December 31, 2016 October 1, 2016 Current portion $ 3,723 $ 3,679 Long-term portion 2,776 2,786 Total accrued self-insurance $ 6,499 $ 6,465 The current and long-term portions of the accrued self-insurance liability are reflected in accrued expenses and other liabilities, respectively, on the balance sheet. Shipping and Handling Revenues Shipping and handling revenues represent costs billed to customers and are presented as net sales. Shipping and handling costs incurred are included in cost of goods sold. Shipping and handling revenues were $3.3 million and $2.5 million for the three months ended December 31, 2016 and January 2, 2016 , respectively. The related cost of goods sold was $2.8 million and $2.0 million for the three months ended December 31, 2016 and January 2, 2016 , respectively. Pension Expense Components of net periodic pension benefit cost were as follows for the periods presented: Three Months Ended (in thousands of dollars) December 31, 2016 January 2, 2016 Interest cost $ 1,266 $ 1,411 Expected return on plan assets (1,590 ) (1,528 ) Amortization of prior loss 1,573 1,197 Net periodic benefit cost $ 1,249 $ 1,080 Amortization of prior loss, recognized in other comprehensive income 1,573 1,197 Total recognized in net periodic pension benefit cost and other comprehensive income $ (324 ) $ (117 ) Warrants At December 31, 2016 , there were a total of 8,959,734 warrants outstanding to purchase 4,479,867 shares of our Common Stock.

Debt

Debt	3 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Debt	4. Debt On December 12, 2016, Blue Bird Body Company, a wholly-owned subsidiary of the Company, executed a $235.0 million five -year credit agreement provided by Bank of Montreal, which acts as the administrative agent and an issuing bank, Fifth Third Bank, as co-syndication agent and an issuing bank, and Regions Bank, as Co-Syndication Agent, together with other lenders (the "Credit Agreement"). The credit facility provided for under the Credit Agreement consists of a term loan facility in an aggregate initial principal amount of $160.0 million (the “Term Loan Facility”) and a revolving credit facility with aggregate commitments of $75.0 million . The revolving credit facility includes a $15.0 million letter of credit sub-facility and a $5.0 million swingline sub-facility (the “Revolving Credit Facility,” and together with the Term Loan Facility, each a “Credit Facility” and collectively, the “Credit Facilities”). As a result of the Credit Agreement, we incurred $3.3 million of debt discount and issuance costs, which have been recorded as contra-debt and and will be amortized over the life of the Credit Agreement using the effective interest method. Proceeds from the Term Loan Facility were used to fully extinguish our previous credit agreement with Societe Generale. In connection with the extinguishment, we recorded a $10.1 million loss, which was the difference in the reacquisition price of the extinguished debt and the net carrying value at extinguishment. The loss includes the write-off of unamortized deferred financing costs recorded as a reduction of the prior debt, unamortized issuance costs associated with the previous revolving credit facility recorded in other assets, as well as interest and legal fees incurred to extinguish the prior debt. The interest rate on the Term Loan Facility is (i) from the Closing Date until April 1, 2017, an election of either base rate plus 1 point or LIBOR (floor of 1 point) plus 2 points and (ii) commencing with the fiscal quarter ending on April 1, 2017 and thereafter, dependent on the Total Net Leverage Ratio (as defined below) of the Company, an election of either base rate or LIBOR pursuant to the table below: Level Total Net Leverage Ratio ABR Loans Eurodollar Loans I Less than 2.00x 0.75% 1.75% II Greater than or equal to 2.00x and less than 2.50x 1.00% 2.00% III Greater than or equal to 2.50x and less than 3.00x 1.25% 2.25% IV Greater than or equal to 3.00x 1.50% 2.50% Debt consisted of the following at the dates indicated: (in thousands of dollars) December 31, 2016 October 1, 2016 2021 term loan, net of deferred financing costs of $3,280 $ 156,720 $ — 2020 term loan, net of deferred financing costs of $9,384 — 152,116 Less: Current portion of long-term debt 8,000 11,750 Long-term debt, net of current portion $ 148,720 $ 140,366 Term loans are recognized on the Company’s balance sheet 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 December 31, 2016 and October 1, 2016 , $160.0 million and $161.5 million , respectively, were outstanding on the term loans. At December 31, 2016 and October 1, 2016 , the stated interest rates on the term loans were 3.0% and 6.5% , respectively. At December 31, 2016 and October 1, 2016 , the weighted-average annual effective interest rates for the term loans were 7.3% and 8.3% , respectively, which included amortization of the deferred financing costs. No borrowings were outstanding on the Revolving Credit Facility at December 31, 2016 ; however, since there were $5.3 million of Letters of Credit outstanding on December 31, 2016 , the Company would have been able to borrow $69.7 million on the revolving line of credit. An additional $5.1 million of letters of credit issued by Societe Generale were outstanding at December 31, 2016 . The Company is actively working to have those letters of credit released. Interest expense on all indebtedness was $2.7 million and $4.2 million for the three months ended December 31, 2016 and January 2, 2016 , 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 2017 $ 8,000 2018 8,000 2019 8,000 2020 12,000 2021 124,000 Total remaining principal payments $ 160,000

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2016
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. The effective tax rate for the three month period ended December 31, 2016 was 28.3% , which differed from the statutory federal income tax rate of 35% due mainly to normal tax rate benefit items, such as the domestic production activities deduction and state tax credits. This benefit was partially offset by discrete items, the largest being interest and penalties on uncertain tax positions. The effective tax rate for the three month period ended January 2, 2016 was (8.3)% and differed from the statutory federal income tax rate of 35% , primarily as a result of the benefit from period operating losses in that period and recording the impact of new tax legislation, which were partially offset by discrete items including a change in investor tax on our non-consolidated affiliate income, the application of tax credits claimed as offsets against our payroll tax liabilities, and interest and penalties on uncertain tax positions.

Guarantees, Commitments and Con

Guarantees, Commitments and Contingencies	3 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Guarantees, Commitments and Contingencies	6. Guarantees, Commitments and Contingencies Litigation At December 31, 2016 , 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	3 Months Ended
	Dec. 31, 2016
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 school 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 (in thousands of dollars) December 31, 2016 January 2, 2016 Bus $ 122,406 $ 118,479 Parts 14,254 12,854 Segment net sales $ 136,660 $ 131,333 Gross profit Three Months Ended (in thousands of dollars) December 31, 2016 January 2, 2016 Bus $ 13,162 $ 13,746 Parts 5,036 5,007 Segment gross profit $ 18,198 $ 18,753 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) December 31, 2016 January 2, 2016 Segment gross profit $ 18,198 $ 18,753 Adjustments: Selling, general and administrative expenses (18,192 ) (17,079 ) Interest expense (2,688 ) (4,243 ) Interest income 7 22 Other income, net — 16 Loss on debt extinguishment (10,142 ) — Loss before income taxes $ (12,817 ) $ (2,531 ) 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) December 31, 2016 January 2, 2016 United States $ 129,746 $ 126,802 Canada 4,865 3,088 Rest of world 2,049 1,443 Total net sales $ 136,660 $ 131,333

Foreign Exchange Contracts

Foreign Exchange Contracts	3 Months Ended
	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Foreign Exchange Contracts	8. Foreign Exchange Contracts The Company enters into foreign exchange swaps as economic hedges of anticipated cash flows denominated in Canadian Dollars. The contracts are entered into to protect against the risk that the eventual cash flows resulting from certain transactions would be affected by changes in exchange rates between the U.S. Dollar and the Canadian Dollar. At December 31, 2016 , the Company had three foreign exchange swap contracts with an aggregate notional amount of $22.4 million USD. The foreign exchange contracts qualify for hedge accounting and have been designated as cash flow hedges with the effective portion of the gain or loss on the derivative instruments recorded in other comprehensive income until the underlying transactions occur. Once the anticipated transactions occur, the gain or loss on the swaps is recorded in current period earnings on the Consolidated Statements of Operations and Comprehensive Loss. The fair value of the foreign exchange contracts is based on the forward contract rates, which classifies as a Level 2 fair value measurement. At December 31, 2016 , the fair value of all foreign exchange contracts was $0.2 million and is included in "other current assets" on the Consolidated Balance Sheet. The table below presents the effect of the Company's cash flow hedges for the period presented: (in thousands of dollars) Three Months Ended Foreign Exchange Contract Location December 31, 2016 Amount of gain recognized in income on derivatives (effective portion) OCI $ 464 Amount of gain reclassified from AOCI into income to offset foreign currency translation loss on receivable (effective portion) Other expense (235 ) Total amount recognized in other comprehensive income $ 229 If realized, all amounts in accumulated other comprehensive income will be reclassified into earnings during the next 12 months.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share	9. Earnings Per Share We incurred a net loss for the three months ended December 31, 2016 and January 2, 2016 . As a result, basic and diluted shares outstanding are equal to each other for those periods due to the exclusion of potentially dilutive shares from the calculation of earnings per share as the effect would be anti-dilutive. For the three months ended December 31, 2016 and January 2, 2016 , potentially dilutive shares excluded from the calculation were 5,779,368 and 4,328,729 , respectively.

Nature of Business and Basis 16

Nature of Business and Basis of Presentation (Policies)	3 Months Ended
	Dec. 31, 2016
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 2017 , there are a total of 52 weeks. For fiscal years 2017 and 2016 , the first 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 October 1, 2016 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 October 1, 2016 as set forth in the Company's 2016 Form 10-K filed on December 15, 2016 . The Business Combination was accounted for as a reverse acquisition, since immediately following completion of the transaction, the sole stockholder of SBH immediately prior to the Business Combination maintained effective control of Blue Bird Corporation, the post-combination company. For accounting purposes, SBH is deemed the accounting acquirer in the transaction and, consequently, the transaction is treated as a recapitalization of SBH (i.e., a capital transaction involving the issuance of stock and payment of cash by HCAC for the stock of SBH). Accordingly, the consolidated assets, liabilities and results of operations of SBH are the historical financial statements of Blue Bird Corporation, and HCAC assets, liabilities and results of operations are consolidated with SBH beginning on the acquisition date. No step-up in basis of intangible assets or goodwill was recorded in this transaction. We have effected this treatment through opening stockholders' deficit by adjusting the number of our common shares outstanding. Other than transaction costs paid and a contribution from our majority stockholder for payment of management incentive compensation related to the transaction, the transaction was primarily non-cash and involved exchanges of consideration and equity between our majority stockholder and HCAC and its related entities.
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	Recently Adopted Accounting Standards ASU 2015-17 — In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities to be classified as non-current on the balance sheet. The standard is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. The Company elected to early adopt this standard on a retrospective basis in the first quarter of fiscal 2017, and reclassified $7.6 million of current deferred tax assets to long-term deferred tax assets, resulting in a total of $19.1 million of long-term deferred tax assets at October 1, 2016 , compared to the prior presentation of $11.5 million . All future deferred tax assets and liabilities will be recorded as long-term. Recently Issued Accounting Standards We believe that no new accounting guidance was issued during the three months ended December 31, 2016 that is relevant to our financial statements.

Supplemental Financial Inform17

Supplemental Financial Information (Tables)	3 Months Ended
	Dec. 31, 2016
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) December 31, 2016 October 1, 2016 Raw materials $ 50,887 $ 40,940 Work in process 18,129 10,011 Finished goods 2,849 2,855 Total inventory $ 71,865 $ 53,806
Product Warranties	The following table reflects activity in accrued warranty cost (current and long-term portion combined) for the periods presented: Three Months Ended (in thousands of dollars) December 31, 2016 January 2, 2016 Balance at beginning of period $ 19,444 $ 17,661 Add current period accruals 1,453 1,385 Current period reductions of accrual (2,579 ) (2,463 ) Balance at end of period $ 18,318 $ 16,583 The following table reflects activity in deferred warranty income (current and long-term portion combined), for the sale of extended warranties of two to five years , for the periods presented: Three Months Ended (in thousands of dollars) December 31, 2016 January 2, 2016 Balance at beginning of period $ 16,187 $ 14,145 Add current period deferred income 1,129 1,186 Current period recognition of income (1,507 ) (1,249 ) Balance at end of period $ 15,809 $ 14,082
Self-Insurance	The following table reflects total accrued self-insurance liability, comprised of workers compensation and health insurance related claims, at the dates indicated: (in thousands of dollars) December 31, 2016 October 1, 2016 Current portion $ 3,723 $ 3,679 Long-term portion 2,776 2,786 Total accrued self-insurance $ 6,499 $ 6,465
Pension Expense	Components of net periodic pension benefit cost were as follows for the periods presented: Three Months Ended (in thousands of dollars) December 31, 2016 January 2, 2016 Interest cost $ 1,266 $ 1,411 Expected return on plan assets (1,590 ) (1,528 ) Amortization of prior loss 1,573 1,197 Net periodic benefit cost $ 1,249 $ 1,080 Amortization of prior loss, recognized in other comprehensive income 1,573 1,197 Total recognized in net periodic pension benefit cost and other comprehensive income $ (324 ) $ (117 )

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The interest rate on the Term Loan Facility is (i) from the Closing Date until April 1, 2017, an election of either base rate plus 1 point or LIBOR (floor of 1 point) plus 2 points and (ii) commencing with the fiscal quarter ending on April 1, 2017 and thereafter, dependent on the Total Net Leverage Ratio (as defined below) of the Company, an election of either base rate or LIBOR pursuant to the table below: Level Total Net Leverage Ratio ABR Loans Eurodollar Loans I Less than 2.00x 0.75% 1.75% II Greater than or equal to 2.00x and less than 2.50x 1.00% 2.00% III Greater than or equal to 2.50x and less than 3.00x 1.25% 2.25% IV Greater than or equal to 3.00x 1.50% 2.50% Debt consisted of the following at the dates indicated: (in thousands of dollars) December 31, 2016 October 1, 2016 2021 term loan, net of deferred financing costs of $3,280 $ 156,720 $ — 2020 term loan, net of deferred financing costs of $9,384 — 152,116 Less: Current portion of long-term debt 8,000 11,750 Long-term debt, net of current portion $ 148,720 $ 140,366
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 2017 $ 8,000 2018 8,000 2019 8,000 2020 12,000 2021 124,000 Total remaining principal payments $ 160,000

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Dec. 31, 2016
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) December 31, 2016 January 2, 2016 Bus $ 122,406 $ 118,479 Parts 14,254 12,854 Segment net sales $ 136,660 $ 131,333 Gross profit Three Months Ended (in thousands of dollars) December 31, 2016 January 2, 2016 Bus $ 13,162 $ 13,746 Parts 5,036 5,007 Segment gross profit $ 18,198 $ 18,753
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) December 31, 2016 January 2, 2016 Segment gross profit $ 18,198 $ 18,753 Adjustments: Selling, general and administrative expenses (18,192 ) (17,079 ) Interest expense (2,688 ) (4,243 ) Interest income 7 22 Other income, net — 16 Loss on debt extinguishment (10,142 ) — Loss before income taxes $ (12,817 ) $ (2,531 )
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) December 31, 2016 January 2, 2016 United States $ 129,746 $ 126,802 Canada 4,865 3,088 Rest of world 2,049 1,443 Total net sales $ 136,660 $ 131,333

Summary of Significant Accoun20

Summary of Significant Accounting Policies and Recently Issued Accounting Standards - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2016	Oct. 01, 2016
New Accounting Pronouncement, Early Adoption [Line Items]
Reclassification (from) current deferred tax asset to long-term deferred tax asset	$ 19.1
New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncement, Early Adoption [Line Items]
Reclassification (from) current deferred tax asset to long-term deferred tax asset		$ (7.6)
Scenario, Previously Reported
New Accounting Pronouncement, Early Adoption [Line Items]
Reclassification (from) current deferred tax asset to long-term deferred tax asset		$ 11.5

Nature of Business and Basis 21

Nature of Business and Basis of Presentation - Narrative (Details) - USD ($)	Jun. 08, 2016	Jun. 08, 2016	Jun. 03, 2016	Feb. 24, 2015	Dec. 31, 2016	Oct. 01, 2016	May 26, 2016
Business Combination, Separately Recognized Transactions [Line Items]
Common stock, par value (in dollars per share)					$ 0.0001	$ 0.0001
School Bus Holdings, Inc.
Business Combination, Separately Recognized Transactions [Line Items]
Cash paid				$ 100,000,000
Shares issued for acquisition (in shares)				12,000,000
Shares issued for acquisition, value				$ 120,000,000
The Traxis Group B.V. | ASP BB Holdings LLC | Blue Bird Corporation
Business Combination, Separately Recognized Transactions [Line Items]
Cash paid		$ 125,700,000
Number of shares acquired	5,000,000	12,000,000	7,000,000
Common stock, par value (in dollars per share)							$ 0.0001
Price per share acquired (in dollars per share)	$ 11	$ 11	$ 10.10

Supplemental Financial Inform22

Supplemental Financial Information - Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Oct. 01, 2016
Condensed Financial Information [Abstract]
Raw materials	$ 50,887	$ 40,940
Work in process	18,129	10,011
Finished goods	2,849	2,855
Total inventory	$ 71,865	$ 53,806

Supplemental Financial Inform23

Supplemental Financial Information - Product Warranty Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 19,444	$ 17,661
Add current period accruals	1,453	1,385
Current period reductions of accrual	(2,579)	(2,463)
Balance at end of period	$ 18,318	$ 16,583

Supplemental Financial Inform24

Supplemental Financial Information - Extended Warranty Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Movement in Extended Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 16,187	$ 14,145
Add current period deferred income	1,129	1,186
Current period recognition of income	(1,507)	(1,249)
Balance at end of period	$ 15,809	$ 14,082

Supplemental Financial Inform25

Supplemental Financial Information - Self Insurance (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Oct. 01, 2016
Condensed Financial Information [Abstract]
Current portion	$ 3,723	$ 3,679
Long-term portion	2,776	2,786
Total accrued self-insurance	$ 6,499	$ 6,465

Supplemental Financial Inform26

Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Product Warranty Liability [Line Items]
Shipping and handling revenues	$ 3.3	$ 2.5
Shipping and handling cost of goods sold	$ 2.8	$ 2
Warrants outstanding (in shares)	8,959,734
Common stock shares that may be called by warrants (in shares)	4,479,867
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 Inform27

Supplemental Financial Information - Pension Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Condensed Financial Information [Abstract]
Interest cost	$ 1,266	$ 1,411
Expected return on plan assets	(1,590)	(1,528)
Amortization of prior loss	1,573	1,197
Net periodic benefit cost	1,249	1,080
Amortization of prior loss, recognized in other comprehensive income	1,573	1,197
Total recognized in net periodic pension benefit cost and other comprehensive income	$ (324)	$ (117)

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands	Dec. 12, 2016	Dec. 31, 2016	Jan. 02, 2016	Oct. 01, 2016
Debt Instrument [Line Items]
Loss on debt extinguishment	$ 10,100	$ (10,142)	$ 0
Interest expense		2,700	$ 4,200
Credit Agreement
Debt Instrument [Line Items]
Face amount	$ 235,000
Debt term	5 years
Unamortized discount and debt issuance costs, net	$ 3,300
Term Loan | Credit Agreement
Debt Instrument [Line Items]
Face amount	$ 160,000
Senior Term Loan | Senior Credit Facility
Debt Instrument [Line Items]
Long-term line of credit		$ 160,000		$ 161,500
Stated interest rate (as a percent)		3.00%		6.50%
Weighted average effective interest rate (as a percent)		7.30%		8.30%
Base Rate | Term Loan | Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.00%
LIBOR | Term Loan | Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.00%
Variable rate floor (as a percent)	1.00%
Revolving Credit Facility | Credit Facility | Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 75,000
Revolving Credit Facility | Credit Facility | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Long-term line of credit		$ 0
Letters of Credit | Credit Facility | Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity	15,000
Letters of Credit | Credit Facility | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Letters of credit, amount outstanding		5,300
Remaining borrowing capacity		69,700
Swingline Credit Facility | Credit Facility | Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 5,000
Societe Generale | Letters of Credit | Credit Facility
Debt Instrument [Line Items]
Letters of credit, amount outstanding		$ 5,100

Debt - Covenants (Details)

Debt - Covenants (Details) - Term Loan - Credit Agreement	Dec. 12, 2016
Less than 2.00x | ABR Loans
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	0.75%
Less than 2.00x | Eurodollar Loans
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.75%
Less than 2.00x | Maximum
Debt Instrument [Line Items]
Leverage ratio	2
Greater than or equal to 2.00x and less than 2.50x | ABR Loans
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.00%
Greater than or equal to 2.00x and less than 2.50x | Eurodollar Loans
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.00%
Greater than or equal to 2.00x and less than 2.50x | Minimum
Debt Instrument [Line Items]
Leverage ratio	2
Greater than or equal to 2.00x and less than 2.50x | Maximum
Debt Instrument [Line Items]
Leverage ratio	2.50
Greater than or equal to 2.50x and less than 3.00x | ABR Loans
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.25%
Greater than or equal to 2.50x and less than 3.00x | Eurodollar Loans
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.25%
Greater than or equal to 2.50x and less than 3.00x | Minimum
Debt Instrument [Line Items]
Leverage ratio	2.50
Greater than or equal to 2.50x and less than 3.00x | Maximum
Debt Instrument [Line Items]
Leverage ratio	3
Greater than or equal to 3.00x | ABR Loans
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.50%
Greater than or equal to 3.00x | Eurodollar Loans
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.50%
Greater than or equal to 3.00x | Minimum
Debt Instrument [Line Items]
Leverage ratio	3

Debt - Schedule of Long-term De

Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Oct. 01, 2016
Debt Instrument [Line Items]
Current portion of senior term debt	$ 8,000	$ 11,750
Long-term debt	148,720	140,366
Senior Term Loan | 2021 Term Loan
Debt Instrument [Line Items]
Total debt	156,720	0
Deferred financing costs	3,280
Senior Term Loan | 2020 Senior Term Loan
Debt Instrument [Line Items]
Total debt	$ 0	152,116
Deferred financing costs		$ 9,384

Debt - Maturity Schedule (Detai

Debt - Maturity Schedule (Details) $ in Thousands	Dec. 31, 2016USD ($)
Long-term Debt, Fiscal Year Maturity
2,017	$ 8,000
2,018	8,000
2,019	8,000
2,020	12,000
2,021	124,000
Total debt	$ 160,000

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	28.30%	(8.30%)
Statutory Federal income tax rate (as a percent)	35.00%	35.00%

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2016USD ($)segment	Jan. 02, 2016USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | segment	2
Net sales	$ 136,660	$ 131,333
Gross profit	18,198	18,753
United States
Segment Reporting Information [Line Items]
Net sales	129,746	126,802
Canada
Segment Reporting Information [Line Items]
Net sales	4,865	3,088
Rest of world
Segment Reporting Information [Line Items]
Net sales	2,049	1,443
Operating Segments
Segment Reporting Information [Line Items]
Gross profit	18,198	18,753
Operating Segments | Bus
Segment Reporting Information [Line Items]
Net sales	122,406	118,479
Gross profit	13,162	13,746
Operating Segments | Parts
Segment Reporting Information [Line Items]
Net sales	14,254	12,854
Gross profit	$ 5,036	$ 5,007

Segment Information - Reconcili

Segment Information - Reconciliation of Segment Gross Profit (Details) - USD ($) $ in Thousands	Dec. 12, 2016	Dec. 31, 2016	Jan. 02, 2016
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment gross profit		$ 18,198	$ 18,753
Selling, general and administrative expenses		(18,192)	(17,079)
Interest expense		(2,688)	(4,243)
Interest income		7	22
Other income, net		0	16
Loss on debt extinguishment	$ 10,100	(10,142)	0
Loss before income taxes		(12,817)	(2,531)
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment gross profit		18,198	18,753
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Selling, general and administrative expenses		(18,192)	(17,079)
Interest expense		(2,688)	(4,243)
Interest income		7	22
Other income, net		0	16
Loss on debt extinguishment		$ (10,142)	$ 0

Foreign Exchange Contracts - Na

Foreign Exchange Contracts - Narrative (Details) - Foreign Exchange Swap $ in Millions	Dec. 31, 2016USD ($)
Derivative [Line Items]
Derivative, notional amount	$ 22.4
Cash Flow Hedge | Other current assets
Derivative [Line Items]
Fair value of foreign exchange contract, net	$ 0.2

Foreign Exchange Contracts - Ot

Foreign Exchange Contracts - Other Comprehensive Income (Details) - Foreign Exchange Contract - Cash Flow Hedge $ in Thousands	3 Months Ended
	Dec. 31, 2016USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain recognized in income on derivatives (effective portion)	$ 464
Amount of gain reclassified from AOCI into income to offset foreign currency translation loss of receivable (effective portion)	(235)
Total amount recognized in other comprehensive income	$ 229

Earnings Per Share Narrative (D

Earnings Per Share Narrative (Details) - shares	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	5,779,368	4,328,729