Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 29, 2018 | Feb. 01, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Blue Bird Corp | |
Entity Central Index Key | 1,589,526 | |
Current Fiscal Year End Date | --09-28 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 29, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 26,387,360 | |
Entity Emerging Growth Company | true | |
Entity Small Business | false | |
Entity Ex Transition Period | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 29, 2018 |
Current assets | ||
Cash and cash equivalents | $ 18,818 | $ 60,260 |
Accounts receivable, net | 10,274 | 24,067 |
Inventories | 84,217 | 57,333 |
Other current assets | 10,854 | 8,183 |
Total current assets | 124,163 | 149,843 |
Property, plant and equipment, net | 81,586 | 66,054 |
Goodwill | 18,825 | 18,825 |
Intangible assets, net | 54,969 | 55,472 |
Equity investment in affiliate | 11,045 | 11,123 |
Deferred tax assets | 4,488 | 4,437 |
Other assets | 2,629 | 1,676 |
Total assets | 297,705 | 307,430 |
Current liabilities | ||
Accounts payable | 65,906 | 95,780 |
Warranty | 8,543 | 9,142 |
Accrued expenses | 17,623 | 21,935 |
Deferred warranty income | 8,061 | 8,159 |
Other current liabilities | 5,862 | 3,941 |
Current portion of long-term debt | 9,900 | 9,900 |
Total current liabilities | 115,895 | 148,857 |
Long-term liabilities | ||
Revolving credit facility | 20,000 | 0 |
Long-term debt | 179,976 | 132,239 |
Warranty | 13,315 | 13,504 |
Deferred warranty income | 14,471 | 15,032 |
Other liabilities | 13,139 | 5,121 |
Pension | 20,620 | 21,013 |
Total long-term liabilities | 261,521 | 186,909 |
Guarantees, commitments and contingencies (Note 6) | ||
Stockholders' deficit | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0 and 93,000 issued with liquidation preference of $0 and $9,300 at December 29, 2018 and September 29, 2018, respectively | 0 | 9,300 |
Common stock, $0.0001 par value, 100,000,000 shares authorized, 26,351,588 and 27,259,262 shares outstanding at December 29, 2018 and September 29, 2018, respectively | 3 | 3 |
Additional paid-in capital | 80,433 | 70,023 |
Accumulated deficit | (71,169) | (69,235) |
Accumulated other comprehensive loss | (38,717) | (38,427) |
Treasury stock, at cost, 1,782,568 and 0 shares at December 29, 2018 and September 29, 2018, respectively | (50,261) | 0 |
Total stockholders' deficit | (79,711) | (28,336) |
Total liabilities and stockholders' deficit | $ 297,705 | $ 307,430 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 29, 2018 | Sep. 29, 2018 |
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 | 93,000 |
Preferred Stock, Liquidation Preference, Value | $ 0 | $ 9,300,000 |
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 Outstanding | 26,351,588 | 27,259,262 |
Treasury Stock, Common, Shares | 1,782,568 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 154,926 | $ 162,549 |
Cost of goods sold | 135,816 | 141,901 |
Gross profit | 19,110 | 20,648 |
Operating expenses | ||
Selling, general and administrative expenses | 17,273 | 25,457 |
Operating profit (loss) | 1,837 | (4,809) |
Interest expense | (2,874) | (1,452) |
Interest income | 9 | 15 |
Other expense, net | (349) | (291) |
Loss before income taxes | (1,377) | (6,537) |
Income tax benefit (expense) | 236 | (1,352) |
Equity in net (loss) income of non-consolidated affiliate | (79) | 50 |
Net loss | (1,220) | (7,839) |
Earnings per share: | ||
Net loss (from above) | (1,220) | (7,839) |
Less: preferred stock dividends | 0 | 770 |
Net loss available to common stockholders | $ (1,220) | $ (8,609) |
Basic weighted average shares outstanding | 26,302,865 | 23,924,045 |
Diluted weighted average shares outstanding | 26,302,865 | 23,924,045 |
Basic earnings (loss) per share (in dollars per share) | $ (0.05) | $ (0.36) |
Diluted earnings (loss) per share (in dollars per share) | $ (0.05) | $ (0.36) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (1,220) | $ (7,839) |
Other comprehensive (loss) income, net of tax | ||
Net change in defined benefit pension plan | 524 | 563 |
Net unrealized loss on cash flow hedges | (814) | 0 |
Total other comprehensive (loss) income | (290) | 563 |
Comprehensive loss | $ (1,510) | $ (7,276) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from operating activities | ||
Net loss | $ (1,220) | $ (7,839) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,193 | 2,097 |
Amortization of debt costs | 213 | 194 |
Share-based compensation | 852 | 624 |
Equity in net loss (income) of affiliate | 79 | (50) |
Loss on disposal of fixed assets | 30 | 0 |
Deferred taxes | 267 | 1,155 |
Amortization of deferred actuarial pension losses | 689 | 880 |
Unrealized loss on foreign currency hedges | 109 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | 13,793 | 3,869 |
Inventories | (26,884) | 1,823 |
Other assets | (4,805) | 1,432 |
Accounts payable | (28,299) | (26,285) |
Accrued expenses, pension and other liabilities | (5,225) | (11,708) |
Total adjustments | (46,988) | (25,969) |
Total cash used in operating activities | (48,208) | (33,808) |
Cash flows from investing activities | ||
Cash paid for fixed assets | (10,787) | (3,449) |
Total cash used in investing activities | (10,787) | (3,449) |
Cash flows from financing activities | ||
Borrowings under the revolving credit facility | 20,000 | 0 |
Borrowings under the senior term loan | 50,000 | 0 |
Repayments under the senior term loan | (2,475) | (2,000) |
Cash paid for capital leases | 0 | (38) |
Payment of dividends on preferred stock | 0 | (770) |
Cash paid for employee taxes on vested restricted shares and stock option exercises | (243) | 0 |
Proceeds from exercises of warrants | 620 | 3,640 |
Common stock repurchases under share repurchase programs | 0 | (2,983) |
Tender offer repurchase of common stock and preferred stock | 50,349 | 0 |
Total cash provided by (used in) financing activities | 17,553 | (2,151) |
Change in cash and cash equivalents | (41,442) | (39,408) |
Cash and cash equivalents, beginning of period | 60,260 | |
Cash and cash equivalents, end of period | 18,818 | 23,208 |
Supplemental disclosures of cash flow information | ||
Interest paid, net of interest received | 2,430 | 1,287 |
Income tax paid, net of tax refunds | 9 | 25 |
Non-cash investing and financing activities: | ||
Change in accounts payable for capital additions to property, plant and equipment | (1,575) | (377) |
Right-of-use assets obtained in exchange for operating lease obligations | 8,040 | 0 |
Conversion of preferred stock into common stock | $ 9,264 | $ 0 |
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. 30, 2017 | 23,739,344 | 400,000 | 0 | ||||
Beginning Balance at Sep. 30, 2017 | $ (58,510) | $ 2 | $ 45,418 | $ 40,000 | $ (43,875) | $ (100,055) | $ 0 |
Warrant Exercises (in shares) | 316,543 | ||||||
Warrant exercises | 3,640 | 3,640 | |||||
Preferred stock dividends (in hares) | 0 | ||||||
Preferred stock dividends | (770) | (770) | |||||
Share-based compensation expense | 583 | 583 | |||||
Share repurchases (in shares) | (141,577) | ||||||
Share repurchases | (2,983) | (2,983) | |||||
Net loss | (7,839) | (7,839) | |||||
Other comprehensive loss, net of tax | 563 | 563 | |||||
Ending Balance (in shares) at Dec. 30, 2017 | 23,914,310 | 400,000 | 0 | ||||
Ending Balance at Dec. 30, 2017 | (65,316) | $ 2 | 45,888 | $ 40,000 | (43,312) | (107,894) | $ 0 |
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 | |||||
Restricted stock activity (in shares) | 20,513 | ||||||
Restricted stock activity | (239) | (239) | |||||
Stock option activity (in shares) | 331 | ||||||
Stock option activity | (4) | (4) | |||||
Share-based compensation expense | 821 | 821 | |||||
Share repurchases (in shares) | (1,782,568) | (364) | 1,782,568 | ||||
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 loss, 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) |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | 1. Nature of Business and Basis of Presentation Nature of Business Blue Bird Body Company, a wholly-owned subsidiary of Blue Bird Corporation, was incorporated in 1958 and has manufactured, assembled and sold school buses to a variety of municipal, federal and commercial customers since 1927. The majority of Blue Bird’s sales are made to an independent distributor network, which in turn sells buses to ultimate end users. We are headquartered in Macon, Georgia. References in these notes to financial statements to “Blue Bird”, the “Company,” “we,” “our,” or “us” refer to Blue Bird Corporation and its wholly-owned subsidiaries, unless the context specifically indicates otherwise. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and accounts have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and Article 8 of Regulation S-X. The Company’s fiscal year ends on the Saturday closest to September 30 with its quarters consisting of thirteen weeks in most years. In fiscal year 2019 , there is a total of 52 weeks. For fiscal years 2019 and 2018 , 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 September 29, 2018 was derived from the Company’s audited financial statements but do not include all disclosures required by generally accepted accounting principles. For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes for the fiscal year ended September 29, 2018 as set forth in the Company's 2018 Form 10-K filed on December 12, 2018 . Preferred Stock Conversion On November 13, 2018, the Company converted all remaining outstanding shares of Preferred Stock, and issued 799,615 shares of Common Stock. There were no dividends paid with the conversion. 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. 29, 2018 | |
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 2018 Form 10-K, filed with the SEC on December 12, 2018 . 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 29, 2018 , except as follows (as also discussed in the Recently Adopted Accounting Standards section of this Note 2 ): Revenue Recognition The Company records revenue, net of tax, when the following five steps have been completed: 1. Identification of the contract(s) with a customer; 2. Identification of the performance obligation(s) in the contract; 3. Determination of the transaction price; 4. Allocation of the transaction price to the performance obligations in the contract; 5. Recognition of revenue when, or as, we satisfy performance obligations. The Company records revenue when performance obligations are satisfied by transferring control of a promised good or service to the customer. The Company evaluates the transfer of control primarily from the customer’s perspective where the customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. Our product revenue includes buses and bus parts, each of which are generally recognized as revenue at a point in time, once all conditions for revenue recognition have been met, as they represent our performance obligations in a sale. For buses, control is generally transferred and the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the product when the product is delivered or when the product has been completed, is ready for delivery, has been paid for, its title has transferred and it is awaiting pickup by the customer. For certain bus sale transactions, we may provide incentives including payment of a limited amount of future interest charges our customers may incur related to their purchase and financing of the bus with third party financing companies. We reduce revenue at the recording date by the full amount of potential future interest we may be obligated to pay, which is an application of the "most likely amount" method. For parts sales, control is generally transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the products, which generally coincides with when the customer has assumed risk of loss and title has passed for the goods sold. The Company sells extended warranties related to its products. Revenue related to these contracts is recognized based on the stand-alone selling price of the arrangement, on a straight-line basis over the contract period and costs thereunder are expensed as incurred. The Company includes shipping and handling revenues, which represents costs billed to customers, in net sales on the Condensed Consolidated Statements of Operations. The related costs incurred by the Company are included in cost of goods sold on the Condensed Consolidated Statements of Operations. Leases We determine if an arrangement is a lease at inception. Operating leases include lease right-of-use (“ROU”) assets, which we include in property, plant and equipment on our Condensed Consolidated Balance Sheets. The lease liabilities associated with operating leases are included in other current liabilities and other liabilities on our Condensed Consolidated Balance Sheets. We do not have any finance leases. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the leases recorded do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any base rental or lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term as a component of selling, general and administrative expenses on Condensed Consolidated Statements of Operations. Derivative Instruments In limited circumstances, we may utilize derivative instruments to manage certain exposures to changes in foreign currency exchange rates or as cash flow hedges for variable rate debt. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these derivative instruments are recognized in our operating results or included in other comprehensive income (loss), depending on whether the derivative instrument is a fair value or cash flow hedge and whether it qualifies for hedge accounting treatment. If realized, gains and losses on derivative instruments are recognized in the operating results line item that reflects the underlying exposure that was hedged. The exchange of cash, if any, associated with derivative transactions is classified in the same category as the cash flows from the items subject to the economic hedging relationships. We have elected the amortization approach for the expensing of excluded components of our hedges. See Note 11 , Derivative Instruments , for further information. Statement of Cash Flows We classify distributions received from our equity method investment using the nature of distribution approach, such that distributions received are classified based on the basis of the nature of the activity of the investee that generated the distribution. Returns on investment are classified within operating activities, while returns of investment are classified within investing activities. Recently Issued Accounting Standards We believe that no new accounting guidance was issued during the three months ended December 29, 2018 that is relevant to our financial statements. Recently Adopted Accounting Standards ASU 2017-07 — In March 2017, the Financial Accounting Standards Board ("FASB") issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715) , Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires that an employer report the service cost component (if any) of pension expense in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. We adopted this new standard in the first quarter of fiscal 2019 on a retrospective basis, as required. There is no service cost component to our periodic pension expense. Previously all components of our pension expense were recorded as a component of operating expenses, and the new standard requires these expenses to be outside a subtotal of operating profit. As a result, we have revised previously reported results of operations, as follows: Three Months Ended December 30, 2017 (in thousands of dollars) As Previously Reported New Standard Adjustment As Restated Selling, general and administrative expenses $ 25,918 $ (461 ) $ 25,457 Operating profit (loss) (5,270 ) 461 (4,809 ) Other expense, net 170 (461 ) (291 ) Net loss (7,839 ) — (7,839 ) ASU 2018-15 — In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted this standard on a prospective (applies only to eligible costs incurred after adoption) basis in the first quarter of fiscal 2019, and there was not a significant impact on our consolidated financial statements. ASU 2017-12 — In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which intends to simplify the application of hedge accounting guidance and better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both non-financial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. We adopted this amended guidance as of the first quarter of fiscal 2019 using the required modified retrospective approach; however we had no hedging relationships in effect at adoption date that were impacted by the guidance. We do not expect the impact on the Company's consolidated financial statements to be material. ASU 2016-12 and 2016-10 — In May 2016, the FASB issued ASU No. 2016-12 , Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , and in April 2016 issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , both of which provide further clarification to be considered when implementing ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . We adopted this standard in the first quarter of fiscal 2019 using the modified retrospective transition approach, which we applied to all contracts impacted by the new standard at the date of initial application. At adoption, we accounted for specific sales incentives offered to our customers by recording an increase of $0.9 million in accrued liabilities, a $0.7 million adjustment to retained earnings, and a $0.2 million deferred tax asset. Amounts recorded in prior comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. Please see Note 8 , Revenue , for additional information regarding the adoption of this new accounting standard. ASU 2018-05 — In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which updates income tax accounting to reflect the SEC's interpretive guidance released on December 22, 2017, when the Tax Cuts and Jobs Act (the "Tax Act") was signed into law. For more information regarding the impact of the Tax Act, see Note 5 , Income Taxes . ASU 2016-02 — In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires lessees to recognize assets on the balance sheet for the rights and obligations created by all leases with terms greater than 12 months. The standard will also require certain qualitative and quantitative disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. We adopted this standard in the first quarter of fiscal 2019 using the modified retrospective adoption approach with a cumulative-effect adjustment recognized to the balance sheet on the adoption date with prior periods not recast, and electing the practical expedients allowed under the standard. At adoption, we recognized right-of-use assets totaling $7.3 million and operating lease liabilities totaling $9.2 million . The impact on our results of operations and cash flows was not material. ASU 2016-15 — In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which made targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. We adopted this standard in the first quarter of fiscal 2019 and contemporaneous with adoption made a policy election to classify distributions received from our equity method investment using the nature of distribution approach. Adoption of the standard had no current impact on the Company's consolidated financial statements, as this is the manner in which we have recorded previous distributions from our equity method investee. There were no distributions in the first quarter of fiscal 2019. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Dec. 29, 2018 | |
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) December 29, 2018 September 29, 2018 Raw materials $ 71,933 $ 42,439 Work in process 8,502 13,141 Finished goods 3,782 1,753 Total inventories $ 84,217 $ 57,333 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 29, 2018 December 30, 2017 Balance at beginning of period $ 22,646 $ 20,910 Add current period accruals 1,590 1,959 Current period reductions of accrual (2,378 ) (3,081 ) Balance at end of period $ 21,858 $ 19,788 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) December 29, 2018 December 30, 2017 Balance at beginning of period $ 23,191 $ 19,295 Add current period deferred income 1,366 2,063 Current period recognition of income (2,025 ) (2,150 ) Balance at end of period $ 22,532 $ 19,208 With the adoption of ASU No. 2016-12 (as described in Note 2 , Summary of Significant Accounting Policies and Recently Issued Accounting Standards ), 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 $6.2 million of the outstanding contract liability during the remainder of fiscal 2019 , $6.6 million in fiscal 2020 , 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) December 29, 2018 September 29, 2018 Current portion $ 3,000 $ 3,332 Long-term portion 1,881 1,901 Total accrued self-insurance $ 4,881 $ 5,233 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 $3.3 million and $3.5 million for the three months ended December 29, 2018 and December 30, 2017 , respectively. The related cost of goods sold was $3.0 million and $2.8 million for the three months ended December 29, 2018 and December 30, 2017 , 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 29, 2018 December 30, 2017 Interest cost $ 1,512 $ 1,357 Expected return on plan assets (1,905 ) (1,776 ) Amortization of prior loss 689 880 Net periodic benefit cost $ 296 $ 461 Amortization of prior loss, recognized in other comprehensive income 689 880 Total recognized in net periodic pension benefit cost and other comprehensive income $ (393 ) $ (419 ) Pension expense is recognized as a component of other expense, net on our Condensed Consolidated Statement of Operations. As disclosed in Note 2 , we reclassified previously reported pension expense amounts of $0.5 million from selling, general and administrative expenses to other expense, net for the three months ended December 30, 2017 . Warrants At December 29, 2018 , there were a total of 972,514 warrants outstanding to purchase 486,257 shares of our Common Stock. |
Debt
Debt | 3 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt Amended Credit Agreement On September 13, 2018, the Company entered into a first amendment of our December 12, 2016 credit agreement ("Amended Credit Agreement"). The Amended Credit Agreement provided for additional funding of $50.0 million and was funded in the first quarter of fiscal 2019. Substantially all the proceeds were used to complete a tender offer to purchase shares of our common and preferred stock. The Amended Credit Agreement also increased the revolving credit facility to $100.0 million from $75.0 million . The amendment extended the maturity date to September 13, 2023, five years from the effective date of the first amendment. In connection with the Amended Credit Agreement, we incurred $2.0 million of debt discount and issuance costs, which were recorded as contra-debt and will be amortized over the life of the Amended Credit Agreement using the effective interest method. Additional Disclosures Term debt consisted of the following at the dates indicated: (in thousands of dollars) December 29, 2018 September 29, 2018 2023 and 2021 term loans, net of deferred financing costs of $3,799 and $4,011, respectively $ 189,876 $ 142,139 Less: current portion of long-term debt 9,900 9,900 Long-term debt, net of current portion $ 179,976 $ 132,239 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 December 29, 2018 and September 29, 2018 , $193.7 million and $146.2 million , respectively, were outstanding on the term loans. At December 29, 2018 and September 29, 2018 , the stated interest rates on the term loans were 4.6% and 4.5% , respectively. At December 29, 2018 and September 29, 2018 , the weighted-average annual effective interest rates for the term loans were 5.0% and 4.1% , respectively, which includes amortization of the deferred financing costs. At December 29, 2018 , $20.0 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 $73.1 million on the revolving line of credit. Interest expense on all indebtedness was $2.9 million and $1.5 million for the three months ended December 29, 2018 and December 30, 2017 , respectively. The schedules of remaining principal maturities for total debt for the next five fiscal years are as follows: (in thousands of dollars) Year Principal Payments 2019 $ 7,425 2020 9,900 2021 9,900 2022 14,850 2023 171,600 Total remaining principal payments $ 213,675 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes Income tax provisions for interim periods are based on estimated annual income tax rates, adjusted to reflect the effects of any significant infrequent or unusual items which are required to be discretely recognized within the current interim period. The effective tax rates in the periods presented are largely based upon the forecast pre-tax earnings mix and allocation of certain expenses in various taxing jurisdictions where the Company conducts its business, primarily the United States. The effective tax rate for the three month period ended December 29, 2018 was 17.1% , which differed from the 2019 statutory federal income 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. The effective tax rate for the three month period ended December 30, 2017 was (20.7)% , which significantly differed from the transitional 2018 statutory federal tax rate of 24.5% . We recorded $2.4 million in period expense to reflect the U.S. tax reform. The tax reform adjustments include resetting our deferred tax accounts to the new rates as well as $1.1 million of expense from increasing the carrying value of our uncertain tax positions and $0.5 million of additional valuation allowance for our foreign tax credit carryforward. Without these adjustments, our effective tax rate for this period would have been approximately 17% . This tax rate differs from our transitional 2018 statutory federal income tax rate of 24.5% mainly due to normal tax rate benefit items, such as the domestic production activities deduction and state tax credits, which were partially offset by accrued interest and penalties on uncertain tax positions. |
Guarantees, Commitments and Con
Guarantees, Commitments and Contingencies | 3 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees, Commitments and Contingencies | 6. Guarantees, Commitments and Contingencies Litigation At December 29, 2018 , the Company had a number of product liability and other cases pending. Management believes that, considering the Company’s insurance coverage and its intention to vigorously defend its positions, the ultimate resolution of these matters will not have a material adverse effect on the Company’s financial statements. Environmental The Company is subject to a variety of environmental regulations relating to the use, storage, discharge and disposal of hazardous materials used in its manufacturing processes. Failure by the Company to comply with present and future regulations could subject it to future liabilities. In addition, such regulations could require the Company to acquire costly equipment or to incur other significant expenses to comply with environmental regulations. The Company is currently not involved in any material environmental proceedings and therefore management believes that the resolution of environmental matters will not have a material adverse effect on the Company’s financial statements. Guarantees In the ordinary course of business, we may provide guarantees for certain transactions entered into by our dealers. At December 29, 2018 , we had $4.0 million in aggregate guarantees outstanding which relate to guarantees of indebtedness for term loans with remaining maturities of up to four years . The $4.0 million represents the estimated maximum amount we would be required to pay if a debtor defaulted, and we believe the likelihood of required performance to be remote. At December 29, 2018 , $0.6 million was included in other current liabilities on our Condensed Consolidated Balance Sheets for the estimated fair value of the guarantees. Lease Commitments We lease office and warehouse space for use in our operations, which are accounted for as operating leases. The operating leases have remaining terms ranging from 1.1 to 8.9 years. One of our leases includes a renewal option to extend the lease for five years. Total operating lease expense for the three months ended December 29, 2018 was $0.5 million and is recorded in selling, general and administrative expenses on the Condensed Consolidated Statements of Operations. Total rent expense for the three months ended was $0.2 million December 30, 2017 and is recorded in selling, general and administrative expenses on the Condensed Consolidated Statements of Operations. Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows was $0.1 million for the three months ended December 29, 2018 . At December 29, 2018 , right-of-use assets totaling $8.0 million were included in property, plant and equipment, net, and lease liabilities totaling $1.7 million and $8.5 million were included in other current liabilities and other liabilities (non-current), respectively. At December 29, 2018 , the weighed average remaining lease term was 7.3 years and the weighted average discount rate used to calculate the present value of future lease payments was 4.5% . Maturities of operating lease liabilities at December 29, 2018 are as follows: (in thousands of dollars) Fiscal Years Ended Amount 2019 $ 1,664 2020 1,577 2021 1,399 2022 1,421 2023 1,442 Thereafter 4,624 Total future minimum lease payments 12,127 Less: imputed interest 1,884 Total operating lease liabilities $ 10,243 |
Segment Information
Segment Information | 3 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 7. Segment Information We manage our business in two operating segments: (i) the Bus segment includes the manufacturing and assembly of buses to be sold to a variety of customers across the United States, Canada and in international markets; and (ii) the Parts segment 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) December 29, 2018 December 30, 2017 Bus $ 139,210 $ 148,098 Parts 15,716 14,451 Segment net sales $ 154,926 $ 162,549 Gross profit Three Months Ended (in thousands of dollars) December 29, 2018 December 30, 2017 Bus $ 13,515 $ 15,377 Parts 5,595 5,271 Segment gross profit $ 19,110 $ 20,648 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 29, 2018 December 30, 2017 Segment gross profit $ 19,110 $ 20,648 Adjustments: Selling, general and administrative expenses (17,273 ) (25,457 ) Interest expense (2,874 ) (1,452 ) Interest income 9 15 Other expense, net (349 ) (291 ) Loss before income taxes $ (1,377 ) $ (6,537 ) 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 29, 2018 December 30, 2017 United States $ 151,485 $ 154,648 Canada 3,076 4,850 Rest of world 365 3,051 Total net sales $ 154,926 $ 162,549 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 29, 2018 | |
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) December 29, 2018 December 30, 2017 Numerator: Net loss $ (1,220 ) $ (7,839 ) Less: convertible preferred stock dividends — 770 Net loss available to common stockholders $ (1,220 ) $ (8,609 ) Basic earnings per share (1): Weighted average common shares outstanding 26,302,865 23,924,045 Basic loss per share $ (0.05 ) $ (0.36 ) Diluted earnings per share (2): Diluted loss per share $ (0.05 ) $ (0.36 ) (1) Basic earnings (loss) per share is calculated by dividing income available to common stockholders by the weighted average common shares outstanding during the period. (2) Since we incurred a net loss for the three months ended December 29, 2018 and December 30, 2017 , basic and diluted shares outstanding are equal to each other due to the exclusion of 745,900 and 4,699,157 potentially dilutive shares, respectively, from the calculation of earnings per share, as the effect would be anti-dilutive. |
Revenue
Revenue | 3 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | 8. Revenue As noted in Note 2 , Summary of Significant Accounting Policies and Recently Issued Accounting Standards , the Company adopted the new revenue recognition guidance (ASC 606) effective September 30, 2018 using the modified retrospective approach. As a result, we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings as of September 30, 2018. Adopting the new standard primarily impacted the timing of recognition of specific sales incentives offered to our customers. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The difference in revenue recognized under the new guidance versus the previous guidance was immaterial for the three months ended December 29, 2018 . Under the new guidance, at December 29, 2018 , we recorded $0.9 million in accrued liabilities, a deferred tax asset of $0.2 million , and a $0.7 million retained earnings adjustment. Under previous guidance, we would not have recorded any accrued liabilities or deferred tax assets resulting in no retained earnings impact to our Condensed Consolidated Balance Sheets at December 29, 2018 . The following table disaggregates revenue by product category for the periods presented: Three Months Ended (in thousands of dollars) December 29, 2018 December 30, 2017 Diesel buses $ 89,820 $ 103,084 Alternative fuel buses (1) 43,081 40,088 Other (2) 6,802 4,926 Parts 15,223 14,451 Net sales $ 154,926 $ 162,549 (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, chassis and bus shell sales. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 10. Share-Based Compensation Restricted Stock Awards The following table summarizes the Company's restricted stock awards ("RSAs") and restricted stock units ("RSUs") award activity for the period presented: Three Months Ended December 29, 2018 Restricted Stock Activity Number of Shares Weighted-Average Grant Date Fair Value Balance, beginning of period 118,074 $ 18.59 Granted 157,888 16.99 Vested (35,033 ) 18.10 Forfeited/canceled (27,060 ) 18.10 Balance, end of period 213,869 17.55 Compensation expense for restricted stock awards, recognized in selling, general and administrative expenses on the Condensed Consolidated Statements of Operations, was $0.5 million with an associated tax benefit of $0.1 million for the three months ended December 29, 2018 . At December 29, 2018 , unrecognized compensation cost related to restricted stock awards totaled $2.6 million and is expected to be recognized over a weighted-average period of one year . Stock Option Awards The following table summarizes the Company's stock option activity for the period presented: Three Months Ended December 29, 2018 Stock Option Award Activity Number of Options Weighted Average Exercise Price per Share ($) Outstanding options, beginning of period 498,427 $ 13.38 Granted 326,249 16.77 Exercised (1) (1,303 ) 15.50 Forfeited (55,619 ) 16.57 Outstanding options, end of period (2) 767,754 14.59 Fully vested and exercisable options, end of period (3) 354,261 12.35 (1) Stock options exercised in the period had an immaterial aggregate intrinsic value. (2) Stock options outstanding at the end of the period had an aggregate intrinsic value totaling $2.3 million . (3) Fully vested and exercisable options at the end of the period had an aggregate intrinsic value totaling $1.9 million with a weighted average contractual remaining term of 7.1 years . Compensation expense for stock option awards, recognized in selling, general and administrative expenses on the Consolidated Statements of Operations, was $0.3 million with an associated tax benefit of $0.1 million for the three months ended December 29, 2018 . At December 29, 2018 , unrecognized compensation cost related to stock option awards totaled $1.7 million and is expected to be recognized over a weighted-average period of twelve months . The fair value of each option award at grant date was estimated using the Black-Scholes option-pricing model with the following assumptions and resulting grant-date fair value during the period presented: Three Months Ended December 29, 2018 Expected volatility 31.0 % Expected dividend yield 0 % Risk-free interest rate 2.75 % Expected term (in years) 4.5 - 5.5 Weighted-average grant-date fair value $ 5.58 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 12. Accumulated Other Comprehensive Income The following table provides information on changes in accumulated other comprehensive income (“AOCI”) for the periods presented: Three Months Ended (in thousands of dollars) Defined Benefit Pension Plan Cash Flow Hedges (Effective Portion) Total AOCI December 29, 2018 Beginning Balance $ (38,427 ) $ — $ (38,427 ) Other comprehensive loss, gross — (1,130 ) (1,130 ) Amounts reclassified from other comprehensive income 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 ) December 30, 2017 Beginning Balance $ (43,875 ) $ — $ (43,875 ) Other comprehensive income, gross — — — Amounts reclassified from other comprehensive income and included in earnings 880 — 880 Total other comprehensive income, before taxes 880 — 880 Income tax expense (317 ) — (317 ) Ending Balance December 30, 2017 $ (43,312 ) $ — $ (43,312 ) |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 11. Derivative Instruments We are charged variable rates of interest on our indebtedness outstanding under the Amended Credit Agreement 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 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. The interest rate collar contract qualifies for hedge accounting and has been designated as a cash flow hedge with the effective portion of the gain or loss on the derivative instrument recorded in other comprehensive income until the underlying transactions occur. Once the anticipated transactions occur, the gain or loss on the collar is recorded in current period earnings on the Consolidated Statements of Operations. We use the amortization approach for the expensing of excluded components of our hedges, which requires a systematic and rational method to recognize the associated expense. The premium paid associated with the interest rate collar is amortized on a straight-line basis. 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. At December 29, 2018 , the fair value of the interest rate collar contract was $0.1 million and is included in "other assets" (non-current) on the Condensed Consolidated Balance Sheets. The table below presents the effect of the Company's cash flow hedges for the periods presented: (in thousands of dollars) Three Months Ended Interest Rate Collar Location December 29, 2018 December 30, 2017 Amount recognized in AOCI on derivatives (effective portion) OCI $ (1,130 ) $ — Amount reclassified from AOCI into income (effective portion) Interest expense 59 — Total amount recognized in other comprehensive loss $ (1,071 ) $ — The Company expects to reclassify $0.3 million from accumulated other comprehensive loss into earnings during the next 12 months. |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Policies) | 3 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and accounts have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and Article 8 of Regulation S-X. The Company’s fiscal year ends on the Saturday closest to September 30 with its quarters consisting of thirteen weeks in most years. In fiscal year 2019 , there is a total of 52 weeks. For fiscal years 2019 and 2018 , 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 September 29, 2018 was derived from the Company’s audited financial statements but do not include all disclosures required by generally accepted accounting principles. For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes for the fiscal year ended September 29, 2018 as set forth in the Company's 2018 Form 10-K filed on December 12, 2018 . |
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. |
Revenue Recognition | Revenue Recognition The Company records revenue, net of tax, when the following five steps have been completed: 1. Identification of the contract(s) with a customer; 2. Identification of the performance obligation(s) in the contract; 3. Determination of the transaction price; 4. Allocation of the transaction price to the performance obligations in the contract; 5. Recognition of revenue when, or as, we satisfy performance obligations. The Company records revenue when performance obligations are satisfied by transferring control of a promised good or service to the customer. The Company evaluates the transfer of control primarily from the customer’s perspective where the customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. Our product revenue includes buses and bus parts, each of which are generally recognized as revenue at a point in time, once all conditions for revenue recognition have been met, as they represent our performance obligations in a sale. For buses, control is generally transferred and the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the product when the product is delivered or when the product has been completed, is ready for delivery, has been paid for, its title has transferred and it is awaiting pickup by the customer. For certain bus sale transactions, we may provide incentives including payment of a limited amount of future interest charges our customers may incur related to their purchase and financing of the bus with third party financing companies. We reduce revenue at the recording date by the full amount of potential future interest we may be obligated to pay, which is an application of the "most likely amount" method. For parts sales, control is generally transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the products, which generally coincides with when the customer has assumed risk of loss and title has passed for the goods sold. The Company sells extended warranties related to its products. Revenue related to these contracts is recognized based on the stand-alone selling price of the arrangement, on a straight-line basis over the contract period and costs thereunder are expensed as incurred. The Company includes shipping and handling revenues, which represents costs billed to customers, in net sales on the Condensed Consolidated Statements of Operations. The related costs incurred by the Company are included in cost of goods sold on the Condensed Consolidated Statements of Operations. |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases include lease right-of-use (“ROU”) assets, which we include in property, plant and equipment on our Condensed Consolidated Balance Sheets. The lease liabilities associated with operating leases are included in other current liabilities and other liabilities on our Condensed Consolidated Balance Sheets. We do not have any finance leases. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the leases recorded do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any base rental or lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term as a component of selling, general and administrative expenses on Condensed Consolidated Statements of Operations. |
Derivative Instruments | Derivative Instruments In limited circumstances, we may utilize derivative instruments to manage certain exposures to changes in foreign currency exchange rates or as cash flow hedges for variable rate debt. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these derivative instruments are recognized in our operating results or included in other comprehensive income (loss), depending on whether the derivative instrument is a fair value or cash flow hedge and whether it qualifies for hedge accounting treatment. If realized, gains and losses on derivative instruments are recognized in the operating results line item that reflects the underlying exposure that was hedged. The exchange of cash, if any, associated with derivative transactions is classified in the same category as the cash flows from the items subject to the economic hedging relationships. We have elected the amortization approach for the expensing of excluded components of our hedges. |
Statement of Cash Flows | Statement of Cash Flows We classify distributions received from our equity method investment using the nature of distribution approach, such that distributions received are classified based on the basis of the nature of the activity of the investee that generated the distribution. Returns on investment are classified within operating activities, while returns of investment are classified within investing activities. |
Recently Issued Accounting Standards and Recently Adopted Accounting Standards | Recently Issued Accounting Standards We believe that no new accounting guidance was issued during the three months ended December 29, 2018 that is relevant to our financial statements. Recently Adopted Accounting Standards ASU 2017-07 — In March 2017, the Financial Accounting Standards Board ("FASB") issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715) , Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires that an employer report the service cost component (if any) of pension expense in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. We adopted this new standard in the first quarter of fiscal 2019 on a retrospective basis, as required. There is no service cost component to our periodic pension expense. Previously all components of our pension expense were recorded as a component of operating expenses, and the new standard requires these expenses to be outside a subtotal of operating profit. As a result, we have revised previously reported results of operations, as follows: Three Months Ended December 30, 2017 (in thousands of dollars) As Previously Reported New Standard Adjustment As Restated Selling, general and administrative expenses $ 25,918 $ (461 ) $ 25,457 Operating profit (loss) (5,270 ) 461 (4,809 ) Other expense, net 170 (461 ) (291 ) Net loss (7,839 ) — (7,839 ) ASU 2018-15 — In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted this standard on a prospective (applies only to eligible costs incurred after adoption) basis in the first quarter of fiscal 2019, and there was not a significant impact on our consolidated financial statements. ASU 2017-12 — In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which intends to simplify the application of hedge accounting guidance and better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both non-financial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. We adopted this amended guidance as of the first quarter of fiscal 2019 using the required modified retrospective approach; however we had no hedging relationships in effect at adoption date that were impacted by the guidance. We do not expect the impact on the Company's consolidated financial statements to be material. ASU 2016-12 and 2016-10 — In May 2016, the FASB issued ASU No. 2016-12 , Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , and in April 2016 issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , both of which provide further clarification to be considered when implementing ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . We adopted this standard in the first quarter of fiscal 2019 using the modified retrospective transition approach, which we applied to all contracts impacted by the new standard at the date of initial application. At adoption, we accounted for specific sales incentives offered to our customers by recording an increase of $0.9 million in accrued liabilities, a $0.7 million adjustment to retained earnings, and a $0.2 million deferred tax asset. Amounts recorded in prior comparative periods have not been restated and continue to be reported under the accounting standards in effect for those periods. Please see Note 8 , Revenue , for additional information regarding the adoption of this new accounting standard. ASU 2018-05 — In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which updates income tax accounting to reflect the SEC's interpretive guidance released on December 22, 2017, when the Tax Cuts and Jobs Act (the "Tax Act") was signed into law. For more information regarding the impact of the Tax Act, see Note 5 , Income Taxes . ASU 2016-02 — In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires lessees to recognize assets on the balance sheet for the rights and obligations created by all leases with terms greater than 12 months. The standard will also require certain qualitative and quantitative disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. We adopted this standard in the first quarter of fiscal 2019 using the modified retrospective adoption approach with a cumulative-effect adjustment recognized to the balance sheet on the adoption date with prior periods not recast, and electing the practical expedients allowed under the standard. At adoption, we recognized right-of-use assets totaling $7.3 million and operating lease liabilities totaling $9.2 million . The impact on our results of operations and cash flows was not material. ASU 2016-15 — In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which made targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. We adopted this standard in the first quarter of fiscal 2019 and contemporaneous with adoption made a policy election to classify distributions received from our equity method investment using the nature of distribution approach. Adoption of the standard had no current impact on the Company's consolidated financial statements, as this is the manner in which we have recorded previous distributions from our equity method investee. There were no distributions in the first quarter of fiscal 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Recently Issued Accounting Standards Summary of Significant Policies (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Previously Reported Results of Operations | As a result, we have revised previously reported results of operations, as follows: Three Months Ended December 30, 2017 (in thousands of dollars) As Previously Reported New Standard Adjustment As Restated Selling, general and administrative expenses $ 25,918 $ (461 ) $ 25,457 Operating profit (loss) (5,270 ) 461 (4,809 ) Other expense, net 170 (461 ) (291 ) Net loss (7,839 ) — (7,839 ) |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Condensed Financial Information [Abstract] | |
Inventories | The following table presents the components of inventories at the dates indicated: (in thousands of dollars) December 29, 2018 September 29, 2018 Raw materials $ 71,933 $ 42,439 Work in process 8,502 13,141 Finished goods 3,782 1,753 Total inventories $ 84,217 $ 57,333 |
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 29, 2018 December 30, 2017 Balance at beginning of period $ 22,646 $ 20,910 Add current period accruals 1,590 1,959 Current period reductions of accrual (2,378 ) (3,081 ) Balance at end of period $ 21,858 $ 19,788 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) December 29, 2018 December 30, 2017 Balance at beginning of period $ 23,191 $ 19,295 Add current period deferred income 1,366 2,063 Current period recognition of income (2,025 ) (2,150 ) Balance at end of period $ 22,532 $ 19,208 |
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) December 29, 2018 September 29, 2018 Current portion $ 3,000 $ 3,332 Long-term portion 1,881 1,901 Total accrued self-insurance $ 4,881 $ 5,233 |
Pension Expense | Components of net periodic pension benefit cost were as follows for the periods presented: Three Months Ended (in thousands of dollars) December 29, 2018 December 30, 2017 Interest cost $ 1,512 $ 1,357 Expected return on plan assets (1,905 ) (1,776 ) Amortization of prior loss 689 880 Net periodic benefit cost $ 296 $ 461 Amortization of prior loss, recognized in other comprehensive income 689 880 Total recognized in net periodic pension benefit cost and other comprehensive income $ (393 ) $ (419 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Term Debt Instruments | Term debt consisted of the following at the dates indicated: (in thousands of dollars) December 29, 2018 September 29, 2018 2023 and 2021 term loans, net of deferred financing costs of $3,799 and $4,011, respectively $ 189,876 $ 142,139 Less: current portion of long-term debt 9,900 9,900 Long-term debt, net of current portion $ 179,976 $ 132,239 |
Schedule of Maturities of Long-term Debt | The schedules of remaining principal maturities for total debt for the next five fiscal years are as follows: (in thousands of dollars) Year Principal Payments 2019 $ 7,425 2020 9,900 2021 9,900 2022 14,850 2023 171,600 Total remaining principal payments $ 213,675 |
Guarantees, Commitments and C_2
Guarantees, Commitments and Contingencies Guarantees, Commitments and Contingencies (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Operating Leases (Lessee) | Maturities of operating lease liabilities at December 29, 2018 are as follows: (in thousands of dollars) Fiscal Years Ended Amount 2019 $ 1,664 2020 1,577 2021 1,399 2022 1,421 2023 1,442 Thereafter 4,624 Total future minimum lease payments 12,127 Less: imputed interest 1,884 Total operating lease liabilities $ 10,243 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The tables below present segment net sales and gross profit for the periods presented: Net sales Three Months Ended (in thousands of dollars) December 29, 2018 December 30, 2017 Bus $ 139,210 $ 148,098 Parts 15,716 14,451 Segment net sales $ 154,926 $ 162,549 Gross profit Three Months Ended (in thousands of dollars) December 29, 2018 December 30, 2017 Bus $ 13,515 $ 15,377 Parts 5,595 5,271 Segment gross profit $ 19,110 $ 20,648 |
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 29, 2018 December 30, 2017 Segment gross profit $ 19,110 $ 20,648 Adjustments: Selling, general and administrative expenses (17,273 ) (25,457 ) Interest expense (2,874 ) (1,452 ) Interest income 9 15 Other expense, net (349 ) (291 ) Loss before income taxes $ (1,377 ) $ (6,537 ) |
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 29, 2018 December 30, 2017 United States $ 151,485 $ 154,648 Canada 3,076 4,850 Rest of world 365 3,051 Total net sales $ 154,926 $ 162,549 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the earnings per share computation for the periods presented: Three Months Ended (in thousands except for share data) December 29, 2018 December 30, 2017 Numerator: Net loss $ (1,220 ) $ (7,839 ) Less: convertible preferred stock dividends — 770 Net loss available to common stockholders $ (1,220 ) $ (8,609 ) Basic earnings per share (1): Weighted average common shares outstanding 26,302,865 23,924,045 Basic loss per share $ (0.05 ) $ (0.36 ) Diluted earnings per share (2): Diluted loss per share $ (0.05 ) $ (0.36 ) (1) Basic earnings (loss) per share is calculated by dividing income available to common stockholders by the weighted average common shares outstanding during the period. (2) Since we incurred a net loss for the three months ended December 29, 2018 and December 30, 2017 , basic and diluted shares outstanding are equal to each other due to the exclusion of 745,900 and 4,699,157 potentially dilutive shares, respectively, from the calculation of earnings per share, as the effect would be anti-dilutive. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
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) December 29, 2018 December 30, 2017 Diesel buses $ 89,820 $ 103,084 Alternative fuel buses (1) 43,081 40,088 Other (2) 6,802 4,926 Parts 15,223 14,451 Net sales $ 154,926 $ 162,549 (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, chassis and bus shell sales |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes the Company's restricted stock awards ("RSAs") and restricted stock units ("RSUs") award activity for the period presented: Three Months Ended December 29, 2018 Restricted Stock Activity Number of Shares Weighted-Average Grant Date Fair Value Balance, beginning of period 118,074 $ 18.59 Granted 157,888 16.99 Vested (35,033 ) 18.10 Forfeited/canceled (27,060 ) 18.10 Balance, end of period 213,869 17.55 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the Company's stock option activity for the period presented: Three Months Ended December 29, 2018 Stock Option Award Activity Number of Options Weighted Average Exercise Price per Share ($) Outstanding options, beginning of period 498,427 $ 13.38 Granted 326,249 16.77 Exercised (1) (1,303 ) 15.50 Forfeited (55,619 ) 16.57 Outstanding options, end of period (2) 767,754 14.59 Fully vested and exercisable options, end of period (3) 354,261 12.35 (1) Stock options exercised in the period had an immaterial aggregate intrinsic value. (2) Stock options outstanding at the end of the period had an aggregate intrinsic value totaling $2.3 million . (3) Fully vested and exercisable options at the end of the period had an aggregate intrinsic value totaling $1.9 million with a weighted average contractual remaining term of 7.1 years . |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option award at grant date was estimated using the Black-Scholes option-pricing model with the following assumptions and resulting grant-date fair value during the period presented: Three Months Ended December 29, 2018 Expected volatility 31.0 % Expected dividend yield 0 % Risk-free interest rate 2.75 % Expected term (in years) 4.5 - 5.5 Weighted-average grant-date fair value $ 5.58 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides information on changes in accumulated other comprehensive income (“AOCI”) for the periods presented: Three Months Ended (in thousands of dollars) Defined Benefit Pension Plan Cash Flow Hedges (Effective Portion) Total AOCI December 29, 2018 Beginning Balance $ (38,427 ) $ — $ (38,427 ) Other comprehensive loss, gross — (1,130 ) (1,130 ) Amounts reclassified from other comprehensive income 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 ) December 30, 2017 Beginning Balance $ (43,875 ) $ — $ (43,875 ) Other comprehensive income, gross — — — Amounts reclassified from other comprehensive income and included in earnings 880 — 880 Total other comprehensive income, before taxes 880 — 880 Income tax expense (317 ) — (317 ) Ending Balance December 30, 2017 $ (43,312 ) $ — $ (43,312 ) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | The table below presents the effect of the Company's cash flow hedges for the periods presented: (in thousands of dollars) Three Months Ended Interest Rate Collar Location December 29, 2018 December 30, 2017 Amount recognized in AOCI on derivatives (effective portion) OCI $ (1,130 ) $ — Amount reclassified from AOCI into income (effective portion) Interest expense 59 — Total amount recognized in other comprehensive loss $ (1,071 ) $ — |
Nature of Business and Basis _3
Nature of Business and Basis of Presentation - Preferred Stock Conversion (Details) | Nov. 13, 2018shares |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Convertible preferred stock, shares issued upon conversion (in shares) | 799,615 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Recently Issued Accounting Standards Summary Significant Accounting Policies - Impact of ASU Adoption (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Selling, general and administrative expenses | $ 17,273 | $ 25,457 |
Operating profit (loss) | 1,837 | (4,809) |
Other expense, net | (349) | (291) |
Net loss | $ (1,220) | (7,839) |
As Previously Reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Selling, general and administrative expenses | 25,918 | |
Operating profit (loss) | (5,270) | |
Other expense, net | 170 | |
Net loss | (7,839) | |
Accounting Standards Update 2017-07 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Selling, general and administrative expenses | (461) | |
Operating profit (loss) | 461 | |
Other expense, net | (461) | |
Net loss | $ 0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Recently Issued Accounting Standards Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 30, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Operating lease, right-of-use asset | $ 8,000 | $ 7,300 |
Operating lease, liability | 10,243 | 9,200 |
Accounting Standards Update 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Adoption of new revenue recognition standard (ASC 606) adjustment | (714) | |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accrued liabilities | 900 | 900 |
Adoption of new revenue recognition standard (ASC 606) adjustment | 700 | 700 |
Deferred tax assets | $ 200 | $ 200 |
Supplemental Financial Inform_3
Supplemental Financial Information - Inventories (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 29, 2018 |
Condensed Financial Information [Abstract] | ||
Raw materials | $ 71,933 | $ 42,439 |
Work in process | 8,502 | 13,141 |
Finished goods | 3,782 | 1,753 |
Total inventories | $ 84,217 | $ 57,333 |
Supplemental Financial Inform_4
Supplemental Financial Information - Product Warranty Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 22,646 | $ 20,910 |
Add current period accruals | 1,590 | 1,959 |
Current period reductions of accrual | (2,378) | (3,081) |
Balance at end of period | $ 21,858 | $ 19,788 |
Supplemental Financial Inform_5
Supplemental Financial Information - Extended Warranty Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Movement in Extended Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 23,191 | $ 19,295 |
Add current period deferred income | 1,366 | 2,063 |
Current period recognition of income | (2,025) | (2,150) |
Balance at end of period | $ 22,532 | $ 19,208 |
Supplemental Financial Inform_6
Supplemental Financial Information Remaining Performance Obligation (Details) $ in Millions | Dec. 29, 2018USD ($) |
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 | $ 6.2 |
Revenue, performance obligation, (in years) | 9 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 | $ 6.6 |
Revenue, performance obligation, (in years) | 1 year |
Supplemental Financial Inform_7
Supplemental Financial Information - Self Insurance (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 29, 2018 |
Condensed Financial Information [Abstract] | ||
Current portion | $ 3,000 | $ 3,332 |
Long-term portion | 1,881 | 1,901 |
Total accrued self-insurance | $ 4,881 | $ 5,233 |
Supplemental Financial Inform_8
Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Product Warranty Liability [Line Items] | ||
Shipping and handling revenues | $ 3.3 | $ 3.5 |
Shipping and handling cost of goods sold | $ 3 | $ 2.8 |
Warrants outstanding (in shares) | 972,514 | |
Common stock shares that may be called by warrants (in shares) | 486,257 | |
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 | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Condensed Financial Information [Abstract] | ||
Interest cost | $ 1,512 | $ 1,357 |
Expected return on plan assets | (1,905) | (1,776) |
Amortization of prior loss | 689 | 880 |
Net periodic benefit cost | 296 | 461 |
Amortization of prior loss, recognized in other comprehensive income | 689 | 880 |
Total recognized in net periodic pension benefit cost and other comprehensive income | (393) | (419) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Selling, general and administrative expenses | (17,273) | (25,457) |
Other expense, net | $ 349 | 291 |
Accounting Standards Update 2017-07 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Selling, general and administrative expenses | 461 | |
Other expense, net | $ 461 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | Sep. 13, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Sep. 29, 2018 |
Debt Instrument [Line Items] | ||||
Interest expense | $ 2,900 | $ 1,500 | ||
Senior Term Loan | Senior Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term line of credit | $ 193,700 | $ 146,200 | ||
Stated interest rate (as a percent) | 4.60% | 4.50% | ||
Weighted average effective interest rate (as a percent) | 5.00% | 4.10% | ||
Revolving Credit Facility | Credit Facility | Senior Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term line of credit | $ 20,000 | |||
Letters of Credit | Credit Facility | Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Lines of Credit | 50,000 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000 | 100,000 | ||
Debt Instrument, Debt Default, Amount | 5 years | |||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 2,000 | |||
Letters of Credit | Credit Facility | Senior Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Letters of credit, amount outstanding | 6,900 | |||
Remaining borrowing capacity | $ 73,100 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 29, 2018 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 9,900 | $ 9,900 |
Long-term debt | 179,976 | 132,239 |
Senior Term Loan | 2021 Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | 189,876 | 142,139 |
Deferred financing costs | $ 3,799 | $ 4,011 |
Debt - Maturity Schedule (Detai
Debt - Maturity Schedule (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Long-term Debt, Fiscal Year Maturity | |
2,019 | $ 7,425 |
2,020 | 9,900 |
2,021 | 9,900 |
2,022 | 14,850 |
2,023 | 171,600 |
Total debt | $ 213,675 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (as a percent) | 17.10% | (20.70%) |
Statutory Federal income tax rate (as a percent) | 21.00% | 24.50% |
Income tax expense to reflect U.S. Tax reform | $ 2.4 | |
Increase in uncertain tax position | $ 1.1 | |
Additional valuation allowance | $ 0.5 | |
Effective tax rate, without adjustments from U.S. Tax reform | 17.00% |
Guarantees, Commitments and C_3
Guarantees, Commitments and Contingencies Gaurantees, Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Maximum exposure of guarantor | $ 4 | ||
Guarantor obligation term | 4 years | ||
Fair value of guarantees | $ 0.6 | ||
Lessee, Lease, Description [Line Items] | |||
Renewal term | 5 years | ||
Operating lease expense | $ 0.5 | ||
Operating leases, rent expense | $ 0.2 | ||
Operating lease liabilities included in cash flows | 0.1 | ||
Operating lease, right-of-use asset | 8 | $ 7.3 | |
Operating lease, liability, current | 1.7 | ||
Operating lease, liability, non-current | $ 8.5 | ||
Weighted average lease term | 7 years 4 months | ||
Weighted average discount rate, percent | 4.50% | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 1 year 1 month | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 8 years 11 months |
Guarantees, Commitments and C_4
Guarantees, Commitments and Contingencies Guarantees, Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Sep. 30, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
2,019 | $ 1,664 | |
2,020 | 1,577 | |
2,021 | 1,399 | |
2,022 | 1,421 | |
2,023 | 1,442 | |
Thereafter | 4,624 | |
Total future minimum lease payments | 12,127 | |
Less: imputed interest | 1,884 | |
Total operating lease liabilities | $ 10,243 | $ 9,200 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018USD ($)segment | Dec. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Operating Segments | segment | 2 | |
Net sales | $ 154,926 | $ 162,549 |
Gross profit | 19,110 | 20,648 |
United States | ||
Segment Reporting Information [Line Items] | ||
Net sales | 151,485 | 154,648 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,076 | 4,850 |
Rest of world | ||
Segment Reporting Information [Line Items] | ||
Net sales | 365 | 3,051 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 19,110 | 20,648 |
Operating Segments | Bus | ||
Segment Reporting Information [Line Items] | ||
Net sales | 139,210 | 148,098 |
Gross profit | 13,515 | 15,377 |
Operating Segments | Parts | ||
Segment Reporting Information [Line Items] | ||
Net sales | 15,716 | 14,451 |
Gross profit | $ 5,595 | $ 5,271 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Gross Profit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment gross profit | $ 19,110 | $ 20,648 |
Selling, general and administrative expenses | (17,273) | (25,457) |
Interest expense | (2,874) | (1,452) |
Interest income | 9 | 15 |
Other expense, net | (349) | (291) |
Loss before income taxes | (1,377) | (6,537) |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment gross profit | 19,110 | 20,648 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Selling, general and administrative expenses | (17,273) | (25,457) |
Interest expense | (2,874) | (1,452) |
Interest income | 9 | 15 |
Other expense, net | $ (349) | $ (291) |
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 | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net loss | $ (1,220) | $ (7,839) |
Less: convertible preferred stock dividends | 0 | 770 |
Net loss available to common stockholders | $ (1,220) | $ (8,609) |
Weighted average common shares outstanding (in shares) | 26,302,865 | 23,924,045 |
Basic earnings per share (in dollars per share) | $ (0.05) | $ (0.36) |
Diluted earnings per share (in dollars per share) | $ (0.05) | $ (0.36) |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 154,926 | $ 162,549 | |
Diesel buses | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 89,820 | 103,084 | |
Alternative Fuel Buses | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 43,081 | 40,088 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 6,802 | 4,926 | |
Parts | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 15,223 | $ 14,451 | |
Accounting Standards Update 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Adoption of new revenue recognition standard (ASC 606) adjustment | $ (714) | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Accrued liabilities | 900 | 900 | |
Deferred tax assets | 200 | 200 | |
Adoption of new revenue recognition standard (ASC 606) adjustment | $ 700 | $ 700 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock and Unit Activity (Details) - Restricted Stock and Restricted Stock Units (RSUs) $ / shares in Units, $ in Millions | 3 Months Ended |
Dec. 29, 2018USD ($)$ / sharesshares | |
Number of Shares | |
Balance, beginning of period (in shares) | shares | 118,074 |
Granted (in shares) | shares | 157,888 |
Vested (in shares) | shares | (35,033) |
Forfeited/canceled (in shares) | shares | (27,060) |
Balance, end of period (in shares) | shares | 213,869 |
Weighted-Average Grant Date Fair Value | |
Balance, beginning of period (in dollars per share) | $ / shares | $ 18.59 |
Granted (in dollars per share) | $ / shares | 16.99 |
Vested (in dollars per share) | $ / shares | 18.10 |
Forfeited/canceled (in dollars per share) | $ / shares | 18.10 |
Balance, end of period (in dollars per share) | $ / shares | $ 17.55 |
Share-based compensation | $ | $ 0.5 |
Excess tax benefit | $ | 0.1 |
Unrecognized compensation cost | $ | $ 2.6 |
Period for recognition of unrecognized compensation costs | 1 year |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 745,900 | 4,699,157 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - Options $ / shares in Units, $ in Millions | 3 Months Ended |
Dec. 29, 2018USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding options, beginning of period (in shares) | shares | 498,427 |
Granted (in shares) | shares | 326,249 |
Exercised (in shares) | shares | (1,303) |
Forfeited (in shares) | shares | (55,619) |
Outstanding options, end of period (in shares) | shares | 767,754 |
Fully vested and exercisable options, end of period (in shares) | shares | 354,261 |
Weighted Average Exercise Price per Share | |
Outstanding options, beginning of period (in dollars per share) | $ / shares | $ 13.38 |
Granted (in dollars per share) | $ / shares | 16.77 |
Exercised (in dollars per share) | $ / shares | 15.50 |
Forfeited (in dollars per share) | $ / shares | 16.57 |
Outstanding options, end of period (in dollars per share) | $ / shares | 14.59 |
Fully vested and exercisable options, end of period (in dollars per share) | $ / shares | $ 12.35 |
Outstanding options, Aggregate Intrinsic Value | $ | $ 2.3 |
Fully vested and exercisable options, end of period, Aggregate Intrinsic Value | $ | $ 1.9 |
Fully vested and exercisable options, end of period, Weighted Average Contractual Remaining Term | 7 years 1 month |
Share-based compensation | $ | $ 0.3 |
Excess tax benefit | $ | 0.1 |
Unrecognized compensation cost | $ | $ 1.7 |
Period for recognition of unrecognized compensation costs | 12 months |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value Assumptions (Details) - Options | 3 Months Ended |
Dec. 29, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Volatility | 31.00% |
Dividend Yield | 0.00% |
Risk-Free Interest Rate | 2.75% |
Weighted-average grant date fair value of an option award granted in period (in dollars per share) | $ 5.58 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Term | 4 years 6 months |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Term | 5 years 6 months |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ (28,336) | |
Ending Balance | (79,711) | |
Total AOCI | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (38,427) | $ (43,875) |
Other comprehensive income (loss), gross | (1,130) | 0 |
Amounts reclassified from other comprehensive income and included in earnings | 748 | 880 |
Total amount recognized in other comprehensive loss | (382) | 880 |
Income tax expense | 92 | (317) |
Ending Balance | (38,717) | (43,312) |
Defined Benefit Pension Plan | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (38,427) | (43,875) |
Other comprehensive income (loss), gross | 0 | 0 |
Amounts reclassified from other comprehensive income and included in earnings | 689 | 880 |
Total amount recognized in other comprehensive loss | 689 | 880 |
Income tax expense | (165) | (317) |
Ending Balance | (37,903) | (43,312) |
Cash Flow Hedges (Effective Portion) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Other comprehensive income (loss), gross | (1,130) | 0 |
Amounts reclassified from other comprehensive income and included in earnings | 59 | 0 |
Total amount recognized in other comprehensive loss | (1,071) | 0 |
Income tax expense | 257 | 0 |
Ending Balance | $ (814) | $ 0 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 29, 2018 | Dec. 30, 2017 |
Derivative [Line Items] | |||
Interest rate collar | 4 years | ||
Derivative, notional amount | $ 150,000 | ||
Floor interest rate | 1.50% | ||
Ceiling interest rate | 3.30% | ||
Fair value of interest rate contract | $ 100 | ||
Reclassification of Cash Flow Hedge Gain (Loss) [Abstract] | |||
Reclassification adjustment from AOCI on derivatives | 300 | ||
Cash Flow Hedge | Foreign Exchange Contract | |||
Reclassification from AOCI, Current Period, Tax [Abstract] | |||
Amount recognized in AOCI on derivatives (effective portion) | (1,130) | ||
Amount reclassified from AOCI into income (effective portion) | 59 | ||
Total amount recognized in other comprehensive loss | $ (1,071) | ||
Reclassification of Cash Flow Hedge Gain (Loss) [Abstract] | |||
Amount recognized in AOCI on derivatives (effective portion) | $ 0 | ||
Amount reclassified from AOCI into income (effective portion) | 0 | ||
Total amount recognized in other comprehensive (loss) income | $ 0 |
Uncategorized Items - blbd-2018
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) |