Blue Bird Corporation announced unaudited consolidated earnings and operating results for the second quarter six months ended March 31, 2018. For the quarter, the company reported net sales were $216.628 million against $208.651 million a year ago. Operating profit was $2.927 million against $5.390 million a year ago. Income before income taxes was $2.123 million against $3.644 million a year ago. Net income was $1.836 million against $2.748 million a year ago. Net income available to common stockholders was $1.073 million against $1.731 million a year ago. Diluted earnings per share were $0.04 against $0.07 a year ago. Adjusted Net Income was $4.6 million, representing an increase of $1.4 million compared with the same period last year. Adjusted EBITDA was $10.0 million, or 4.6% of net sales, representing an increase of $1.6 million compared with the second quarter of the prior year. Adjusted net income available to common stockholders was $3.835 million against $2.213 million a year ago. Adjusted diluted earnings per share were $0.15 against $0.09 a year ago. Net cash provided by operating activities was $0.751 million against $22.881 million a year ago. Adjusted free cash flow was $3.289 million against $23.960 million a year ago.

For the six months, the company reported net sales were $379.177 million against $345.311 million a year ago. Operating loss was $2.343 million against operating income of $5.396 million a year ago. Net loss before taxes was $4.414 million against $9.3 million a year ago. Net loss was $6.003 million against $5.775 million a year ago. Net loss available to common stockholders was $7.536 million against $7.745 million a year ago. Diluted loss per share was $0.32 against $0.34 a year ago. Total cash used in operating activities was $33.057 million against $9.325 million a year ago. Cash paid for fixed assets were $7.021 million against $5.159 million a year ago. Adjusted Net Income was $2.9 million, representing an increase of $1.8 million compared with the prior year. Adjusted EBITDA was $15.3 million, or 4.0% of net sales, for the six months ended March 31, 2018, an increase of $4.3 million from the prior year. Adjusted net income available to common stockholders was $1.4 million against adjusted net loss available to common stockholders of $0.802 million a year ago. Adjusted diluted earnings per share were $0.06 against adjusted net loss of $0.04 a year ago. Adjusted free cash flow negative was $28.554 million against $10.889 million a year ago. Net debt was $137.3 million.

For the year, the company maintaining full year guidance of $40 to $45 million for Adjusted Free Cash Flow for the fiscal year. Re-affirm full year guidance for both net revenue of $1,010 million to $1,040 million and Adjusted EBITDA guidance of $80 to $85 million. Adjusted free cash flow is between $40 million to $45 million, which does reflect the new combined federal and state tax rate of 28% to 29%.

For fiscal 2019 and beyond, the tax rate should normalize at around about the 25% level.