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Riding High: Blue Bird Corp.


Shares of Blue Bird Corp. (BLBD), which touched an all-time high of $20.75 on Friday, are up more than 32% year-to-date.

Blue Bird is a pure-play school bus manufacturer, and it manufactures Type C and Type D buses.

*The Type C school bus, often called a "conventional" bus, is designed for carrying more than 10 persons. The entire engine is in front of the windshield and the entrance door is behind the front wheels. The Type D, or "transit-style" school bus, is also designed for carrying more than 10 persons. But the engine is often behind the windshield and beside the driver's seat (referred to as forward-engine or "FE"), or it may be at the rear of the bus, behind the rear wheels (rear-engine or "RE"). The entrance door is ahead of the front wheels. (*Source: AmericanBus).

Blue Bird operates in two segments - the Bus segment, which includes the manufacturing and assembly of buses to be sold to a variety of customers across the United States, Canada and in international markets, and the Parts segment, consisting primarily of the purchase of parts from third parties to be sold to dealers within the Company's network.

The Company is also the market leader in alternative fuel bus solutions, having exclusive partnerships with Ford and ROUSH CleanTec to offer propane-powered buses. Its alternative-fuel powered bus sales represented 26% of all buses sold by Blue Bird in fiscal 2016. The Company's fiscal year ends on October 1st.

Blue Bird has been delivering solid revenue growth and impressive profit growth since 2011, thanks to product initiatives and sales & marketing initiatives undertaken by the Company.

Let's take a look at how the Company has fared in terms of sales and number of bus units sold over the years.

Bus units6,5256,8828,6549,60410,37810,616

In the nine months ended July 1, 2017, the Company's net income was $14.26 million or $0.46 per share on net sales of $677.92 million. This compared with a net loss of $3.88 million or $0.32 per share and net sales of $645.6 million in the year-ago period.

Looking ahead to fiscal 2017, the Company expects its net revenue to range between $980 million and $1 billion.

Recent event:

On September 26, 2017, the Company entered into a Securities Repurchase Agreement with investment funds managed by Coliseum Capital Management, LLC.

Under the terms of the agreement, Blue Bird agreed to purchase all of Coliseum's shares of common stock, its shares of the Company's preferred stock, and its warrants to acquire common stock, for an aggregate purchase price of $32.1 million, reflecting a price per share of common stock of $18.65. Blue Bird will fund the repurchase with cash on hand. The share repurchase is made pursuant to Blue Bird's existing share repurchase program of up to $50 million.

BLBD has traded in a range of $13.85 to $20.75 over the last 52 weeks, and it closed Friday's trading at $20.60, up 3.78%.

by RTTNews Staff Writer

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