2 unchanged sentences
CONDENSED CONSOLIDATED BALANCE SHEETS
−Removed: (in thousands of dollars, except for share data) April 1, 2023 October 1, 2022
+Added: (in thousands of dollars, except for share data) July 1, 2023 October 1, 2022
Current assets
13 unchanged sentences
Total assets $ 390,011 $ 366,126
−Removed: Liabilities and Stockholders' (Deficit) Equity
+Added: Liabilities and Stockholders' Equity
Current liabilities
18 unchanged sentences
Guarantees, commitments and contingencies (Note 6)
−Removed: Stockholders' (deficit) equity
−Removed: Preferred stock, $ 0.0001 par value, 10,000,000 shares authorized, 0 shares outstanding at April 1, 2023 and October 1, 2022
−Removed: Common stock, $ 0.0001 par value, 100,000,000 shares authorized, 32,036,149 and 32,024,911 shares outstanding at April 1, 2023 and October 1, 2022, respectively
+Added: Stockholders' equity
+Added: Preferred stock, $ 0.0001 par value, 10,000,000 shares authorized, 0 shares outstanding at July 1, 2023 and October 1, 2022
+Added: Common stock, $ 0.0001 par value, 100,000,000 shares authorized, 32,121,607 and 32,024,911 shares outstanding at July 1, 2023 and October 1, 2022, respectively
Additional paid-in capital 176,290 173,103
1 unchanged sentence
Accumulated other comprehensive loss ( 41,249 ) ( 41,930 )
−Removed: Treasury stock, at cost, 1,782,568 shares at April 1, 2023 and October 1, 2022
+Added: Treasury stock, at cost, 1,782,568 shares at July 1, 2023 and October 1, 2022
( 50,282 ) ( 50,282 )
−Removed: Total stockholders' (deficit) equity $ ( 1,118 ) $ 1,382
−Removed: Total liabilities and stockholders' (deficit) equity $ 364,349 $ 366,126
+Added: Total stockholders' equity $ 10,444 $ 1,382
+Added: Total liabilities and stockholders' equity $ 390,011 $ 366,126
The accompanying notes are an integral part of these condensed consolidated financial statements.
1 unchanged sentence
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
−Removed: Three Months Ended Six Months Ended
−Removed: (in thousands of dollars except for share data) April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022
+Added: Three Months Ended Nine Months Ended
+Added: (in thousands of dollars except for share data) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Net sales $ 294,284 $ 206,083 $ 829,830 $ 542,965
20 unchanged sentences
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
−Removed: Three Months Ended Six Months Ended
−Removed: (in thousands of dollars) April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022
+Added: Three Months Ended Nine Months Ended
+Added: (in thousands of dollars) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Net income (loss) $ 9,358 $ ( 6,435 ) $ 5,194 $ ( 22,664 )
6 unchanged sentences
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
−Removed: Six Months Ended
−Removed: (in thousands of dollars) April 1, 2023 April 2, 2022
+Added: Nine Months Ended
+Added: (in thousands of dollars) July 1, 2023 July 2, 2022
Cash flows from operating activities
−Removed: Net loss $ ( 4,164 ) $ ( 16,229 )
−Removed: Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
+Added: Net income (loss) $ 5,194 $ ( 22,664 )
+Added: Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expense 12,077 10,089
4 unchanged sentences
Impairment of fixed assets — 1,354
−Removed: Deferred income tax benefit ( 1,600 ) ( 9,127 )
+Added: Deferred income tax expense (benefit) 522 ( 6,293 )
Amortization of deferred actuarial pension losses 896 872
31 unchanged sentences
Changes in accounts payable for capital additions to property, plant and equipment $ 745 $ 1,718
−Removed: Accrue common stock issuance costs — 178
Right-of-use assets obtained in exchange for operating lease obligations 199 —
1 unchanged sentence
BLUE BIRD CORPORATION AND SUBSIDIARIES
−Removed: CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY
+Added: CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Three Months Ended
1 unchanged sentence
Shares Par Value Additional Paid-In-Capital Shares Amount Accumulated Other Comprehensive Loss Accumulated Deficit Shares Amount Total Stockholders' (Deficit) Equity
−Removed: Balance, December 31, 2022 32,032,067 $ 3 $ 173,592 — $ — $ ( 41,703 ) $ ( 90,806 ) 1,782,568 $ ( 50,282 ) $ ( 9,196 )
+Added: Balance, April 1, 2023 32,036,149 $ 3 $ 174,313 — $ — $ ( 41,476 ) $ ( 83,676 ) 1,782,568 $ ( 50,282 ) $ ( 1,118 )
+Added: Restricted stock activity 28,771 — — — — — — — — —
Stock option activity 56,687 — 1,053 — — — — — — 1,053
2 unchanged sentences
Other comprehensive income, net of tax — — — — — 227 — — — 227
+Added: Balance, July 1, 2023 32,121,607 $ 3 $ 176,290 — $ — $ ( 41,249 ) $ ( 74,318 ) 1,782,568 $ ( 50,282 ) $ 10,444
Balance, April 2, 2022 31,990,860 $ 3 $ 172,191 — $ — $ ( 44,352 ) $ ( 49,982 ) 1,782,568 $ ( 50,282 ) $ 27,578
−Removed: Balance, January 1, 2022 31,975,274 $ 3 $ 171,150 — $ — $ ( 44,573 ) $ ( 37,835 ) 1,782,568 $ ( 50,282 ) $ 38,463
−Removed: Private placement stock issuance costs — — ( 24 ) — — — — — — ( 24 )
−Removed: Stock option activity 15,586 — 284 — — — — — — 284
Share-based compensation expense — — 623 — — — — — — 623
1 unchanged sentence
Other comprehensive income, net of tax — — — — — 221 — — — 221
−Removed: Balance, April 2, 2022 31,990,860 $ 3 $ 172,191 — $ — $ ( 44,352 ) $ ( 49,982 ) 1,782,568 $ ( 50,282 ) $ 27,578
−Removed: Six Months Ended
+Added: Balance, July 2, 2022 31,990,860 $ 3 $ 172,814 — $ — $ ( 44,131 ) $ ( 56,417 ) 1,782,568 $ ( 50,282 ) $ 21,987
+Added: Nine Months Ended
(in thousands of dollars, except for share data) Common Stock Convertible Preferred Stock Treasury Stock
4 unchanged sentences
Share-based compensation expense — — 2,125 — — — — — — 2,125
−Removed: Net loss — — — — — — ( 4,164 ) — — ( 4,164 )
+Added: Net income — — — — — — 5,194 — — 5,194
Other comprehensive income, net of tax — — — — — 681 — — — 681
−Removed: Balance, April 1, 2023 32,036,149 $ 3 $ 174,313 — $ — $ ( 41,476 ) $ ( 83,676 ) 1,782,568 $ ( 50,282 ) $ ( 1,118 )
+Added: Balance, July 1, 2023 32,121,607 $ 3 $ 176,290 — $ — $ ( 41,249 ) $ ( 74,318 ) 1,782,568 $ ( 50,282 ) $ 10,444
Balance, October 2, 2021 27,205,269 $ 3 $ 96,170 — $ — $ ( 44,794 ) $ ( 33,753 ) 1,782,568 $ ( 50,282 ) $ ( 32,656 )
5 unchanged sentences
Other comprehensive income, net of tax — — — — — 663 — — — 663
−Removed: Balance, April 2, 2022 31,990,860 $ 3 $ 172,191 — $ — $ ( 44,352 ) $ ( 49,982 ) 1,782,568 $ ( 50,282 ) $ 27,578
+Added: Balance, July 2, 2022 31,990,860 $ 3 $ 172,814 — $ — $ ( 44,131 ) $ ( 56,417 ) 1,782,568 $ ( 50,282 ) $ 21,987
The accompanying notes are an integral part of these consolidated financial statements.
14 unchanged sentences
The fiscal years ending September 30, 2023 ("fiscal 2023") and ended October 1, 2022 ("fiscal 2022") consist or consisted of 52 weeks.
−Removed: The second quarters of fiscal 2023 and fiscal 2022 both included 13 weeks.
−Removed: The six month periods in fiscal 2023 and 2022 both included 26 weeks.
+Added: The third quarters of fiscal 2023 and fiscal 2022 both included 13 weeks.
+Added: The nine month periods in fiscal 2023 and 2022 both included 39 weeks.
In the opinion of management, all adjustments considered necessary for a fair presentation of financial results have been made.
14 unchanged sentences
These supply chain disruptions had a significant adverse impact on our operations and results during the second half of fiscal 2021 and all of fiscal 2022 due to higher purchasing costs, including freight costs incurred to expedite receipt of critical components, increased manufacturing inefficiencies and our inability to complete the production of buses to fulfill sales orders.
−Removed: Towards the end of fiscal 2022 and continuing into fiscal 2023, there were slight improvements in the supply chain's ability to deliver the parts and components necessary to support our production operations, resulting in increased (i) manufacturing efficiencies and (ii) production of buses to fulfill sales orders during the first half of fiscal 2023.
−Removed: However, the higher costs charged by suppliers to procure inventory continued into the first half of fiscal 2023 and had a
−Removed: significant adverse impact on our operations and results.
+Added: Towards the end of fiscal 2022 and continuing into fiscal 2023, there were slight improvements in the supply chain's ability to deliver the parts and components necessary to support our production operations, resulting in increased (i) manufacturing efficiencies and (ii) production of buses to fulfill sales orders during the first three quarters of fiscal 2023.
+Added: However, the higher costs charged by suppliers to procure inventory that continued into fiscal 2023 had a significant
+Added: adverse impact on our operations and results.
Specifically, such cost increases outpaced the increases in sales prices that we charged for the buses that were sold during the first quarter of fiscal 2023, many of which were included in the backlog of fixed price sales orders originating in fiscal 2021 and the early months of fiscal 2022 that carried forward into fiscal 2023.
−Removed: During the second quarter of fiscal 2023, the buses that were sold were generally included in the backlog of fixed price sales orders originating more recently (i.e., the latter months of fiscal 2022 and in fiscal 2023), with the cumulative increases in sales prices we charged for those buses generally outpacing the higher costs we paid to procure inventory, resulting in gross profit during the quarter.
−Removed: However, the gross margin on bus sales during the second quarter of fiscal 2023 still lags the historical gross margin reported prior to the COVID-19 pandemic.
+Added: During the second and third quarters of fiscal 2023, the buses that were sold were generally included in the backlog of fixed price sales orders originating more recently (i.e., the latter months of fiscal 2022 and in fiscal 2023), with the cumulative increases in sales prices we charged for those buses generally outpacing the higher costs we paid to procure inventory, resulting in gross profit during the quarters.
+Added: While the gross margin on bus sales during the second quarter of fiscal 2023 lagged the historical gross margin reported prior to the COVID-19 pandemic, it returned to more normal historical levels during the third quarter of fiscal 2023.
Additionally, Russian military forces launched a large-scale invasion of Ukraine on February 24, 2022, which further exacerbated global supply chain disruptions.
−Removed: While the Company has no assets or customers in either of these countries, this military conflict significantly impacted our financial results during the second half of fiscal 2022 and continuing into the first half of fiscal 2023, primarily in an indirect manner since the Company does not sell to customers located in, or source goods directly from, either country.
−Removed: Specifically, it has contributed to increased a) costs charged by suppliers for the purchase of inventory that is at least partially dependent on resources originating from either of the countries and b) freight costs, both of which negatively impacted the gross profit recognized on sales during the second half of fiscal 2022 and continuing into the first half of fiscal 2023.
−Removed: Significant uncertainty exists concerning the magnitude and duration of the the pandemic and subsequent supply chain constraints and accordingly, precludes any prediction as to the ultimate severity of the adverse impacts on our business, financial condition, results of operations, and liquidity.
+Added: While the Company has no assets or customers in either of these countries, this military conflict significantly impacted our financial results during the second half of fiscal 2022 and continuing into fiscal 2023, primarily in an indirect manner since the Company does not sell to customers located in, or source goods directly from, either country.
+Added: Specifically, it has contributed to increased a) costs charged by suppliers for the purchase of inventory that is at least partially dependent on resources originating from either of the countries and b) freight costs, both of which negatively impacted the gross profit recognized on sales during the second half of fiscal 2022 and continuing into fiscal 2023.
+Added: Significant uncertainty exists concerning the magnitude and duration of the pandemic and subsequent supply chain constraints and accordingly, precludes any prediction as to the ultimate severity of the adverse impacts on our business, financial condition, results of operations, and liquidity.
Use of Estimates and Assumptions
12 unchanged sentences
The Company’s significant accounting policies are described in the Company’s fiscal 2022 Form 10-K, filed with the SEC on December 12, 2022.
−Removed: 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 six months ended April 1, 2023.
+Added: 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 nine months ended July 1, 2023.
Recently Issued Accounting Standards
13 unchanged sentences
As a result, the IBA determined that it would be unable to publish the relevant LIBOR settings on a representative basis after such dates.
−Removed: The United Kingdom Financial Conduct Authority ("FCA"), which regulates the IBA, confirmed that, based on information it received from LIBOR panel banks, it does not expect that any LIBOR settings will become unrepresentative before the announced cessation dates summarized above.
−Removed: With the maturity of the interest rate collar on September 30, 2022 and execution of the Fifth Amended Credit Agreement (defined below) on September 2, 2022, which, among other things, changed one of the market interest rate indices that the Company can elect to accrue interest on outstanding borrowings from LIBOR to the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York (“SOFR”) and became effective at the end of the applicable interest period for any LIBOR borrowings outstanding on the fifth amendment effective date, the Company no longer has any contracts that reference LIBOR and has no plans to enter such contracts prior to the discontinuation of LIBOR.
+Added: The United Kingdom Financial Conduct Authority ("FCA"), which regulates the IBA, confirmed that, based on information it received from LIBOR panel banks, it did not expect that any LIBOR settings would become unrepresentative before the announced cessation dates summarized above.
+Added: With the maturity of the interest rate collar on September 30, 2022 and execution of the Fifth Amended Credit Agreement (defined below) on September 2, 2022, which, among other things, changed one of the market interest rate indices that the Company can elect to accrue interest on outstanding borrowings from LIBOR to the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York (“SOFR”) and became effective at the end of the applicable interest period for any LIBOR borrowings outstanding on the fifth amendment effective date, the Company no longer has any contracts that reference LIBOR.
The change in interest rate indices from LIBOR to SOFR occurred at the end of December 2022 when the LIBOR interest rate on outstanding borrowings on the fifth amendment effective date matured.
2 unchanged sentences
The following table presents the components of inventories at the dates indicated:
−Removed: (in thousands of dollars) April 1, 2023 October 1, 2022
+Added: (in thousands of dollars) July 1, 2023 October 1, 2022
Raw materials $ 83,775 $ 106,070
4 unchanged sentences
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the applicable Condensed Consolidated Balance Sheets that sum to the total of such amounts reported on the Condensed Consolidated Statements of Cash Flows:
−Removed: (in thousands of dollars) April 1, 2023 April 2, 2022
+Added: (in thousands of dollars) July 1, 2023 July 2, 2022
Cash and cash equivalents $ 50,497 $ 26,509
4 unchanged sentences
The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented:
−Removed: Three Months Ended Six Months Ended
−Removed: (in thousands of dollars) April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022
+Added: Three Months Ended Nine Months Ended
+Added: (in thousands of dollars) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Balance at beginning of period $ 15,554 $ 16,985 $ 15,970 $ 18,550
4 unchanged sentences
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:
−Removed: Three Months Ended Six Months Ended
−Removed: (in thousands of dollars) April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022
+Added: Three Months Ended Nine Months Ended
+Added: (in thousands of dollars) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Balance at beginning of period $ 20,081 $ 18,414 $ 18,795 $ 20,144
4 unchanged sentences
We expect to recognize $ 2.1 million of the outstanding contract liability during the remainder of fiscal 2023, $ 7.2 million in fiscal 2024, and the remaining balance thereafter.
+Added: Other Current Liabilities
+Added: The balance in other current liabilities as of July 1, 2023 includes approximately $ 13.2 million of funds awarded by the U.S.
+Added: Environmental Protection Agency in administering the U.S.
+Added: Infrastructure Investment and Jobs Act ("IIJA") that was signed into law in mid-November 2021.
+Added: The IIJA allocates federal funds to help local school jurisdictions purchase zero and low emission school buses over a five year period.
+Added: The Company expects to recognize the vast majority of this amount as revenue during the fourth quarter of fiscal 2023 and first quarter of fiscal 2024 as the underlying buses are produced and delivered.
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:
−Removed: (in thousands of dollars) April 1, 2023 October 1, 2022
+Added: (in thousands of dollars) July 1, 2023 October 1, 2022
Current portion $ 4,012 $ 3,996
3 unchanged sentences
Shipping and Handling Revenues
−Removed: Shipping and handling revenues were $ 4.2 million and $ 3.5 million for the three months ended April 1, 2023 and April 2, 2022, respectively, and $ 8.5 million and $ 6.9 million for the six months ended April 1, 2023 and April 2, 2022, respectively.
−Removed: The related cost of goods sold was $ 3.9 million and $ 3.1 million for the three months ended April 1, 2023 and April 2, 2022, respectively, and $ 7.7 million and $ 6.2 million for the six months ended April 1, 2023 and April 2, 2022, respectively.
+Added: Shipping and handling revenues were $ 4.6 million and $ 4.2 million for the three months ended July 1, 2023 and July 2, 2022, respectively, and $ 13.1 million and $ 11.1 million for the nine months ended July 1, 2023 and July 2, 2022, respectively.
+Added: The related cost of goods sold was $ 4.0 million and $ 3.7 million for the three months ended July 1, 2023 and July 2, 2022, respectively, and $ 11.7 million and $ 9.9 million for the nine months ended July 1, 2023 and July 2, 2022, respectively.
Pension Expense
Components of net periodic pension benefit expense (income) were as follows for the periods presented:
−Removed: Three Months Ended Six Months Ended
−Removed: (in thousands of dollars) April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022
+Added: Three Months Ended Nine Months Ended
+Added: (in thousands of dollars) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Interest cost $ 1,509 $ 1,092 $ 4,527 $ 3,276
56 unchanged sentences
Term debt consisted of the following at the dates indicated:
−Removed: (in thousands of dollars) April 1, 2023 October 1, 2022
+Added: (in thousands of dollars) July 1, 2023 October 1, 2022
2023 term loan, net of deferred financing costs of $ 1,801 and $ 1,410 , respectively
5 unchanged sentences
If measured at fair value in the financial statements, the term loans would be classified as Level 2 in the fair value hierarchy.
−Removed: At April 1, 2023 and October 1, 2022, $ 141.7 million and $ 151.6 million, respectively, were outstanding on the term loans.
−Removed: At April 1, 2023 and October 1, 2022, the stated interest rates on the term loans were 10.5 % and 7.9 %, respectively.
−Removed: At April 1, 2023 and October 1, 2022, the weighted-average annual effective interest rates for the term loans were 11.6 % and 8.0 %, respectively, which includes amortization of the deferred financing costs and interest relating to the interest rate collar, as applicable.
−Removed: At April 1, 2023, $ 6.3 million of letters of credit were outstanding, which reduces the availability on the revolving line of credit.
−Removed: There were no in borrowings outstanding on the revolving credit facility;
+Added: At July 1, 2023 and October 1, 2022, $ 136.8 million and $ 151.6 million, respectively, were outstanding on the term loans.
+Added: At July 1, 2023 and October 1, 2022, the stated interest rates on the term loans were 11.1 % and 7.9 %, respectively.
+Added: At July 1, 2023 and October 1, 2022, the weighted-average annual effective interest rates for the term loans were 11.6 % and 8.0 %, respectively, which includes amortization of the deferred financing costs and interest relating to the interest rate collar, as applicable.
+Added: At July 1, 2023, $ 6.3 million of letters of credit were outstanding, which reduces the availability on the revolving line of credit.
+Added: There were no borrowings outstanding on the revolving credit facility;
therefore, the Company would have been able to borrow $ 83.7 million on the revolving line of credit.
−Removed: Interest expense on all indebtedness was $ 5.2 million and $ 2.5 million for the three months ended April 1, 2023 and April 2, 2022, respectively, and $ 9.4 million and $ 5.6 million for the six months ended April 1, 2023 and April 2, 2022, respectively.
+Added: Interest expense on all indebtedness was $ 4.5 million and $ 3.9 million for the three months ended July 1, 2023 and July 2, 2022, respectively, and $ 13.9 million and $ 9.5 million for the nine months ended July 1, 2023 and July 2, 2022, respectively.
The schedule of remaining principal payments through maturity for the term loans is as follows:
5 unchanged sentences
In periods where our pre-tax income approximates or is equal to break-even, the effective tax rates for quarter-to-date and full-year periods may not be meaningful due to discrete period items.
−Removed: The effective tax rate for the three months ended April 1, 2023 was 20.1 %, which aligned with the statutory federal income tax rate of 21 % and is comprised of normal tax rate items, including impacts from state taxes and federal and state tax credits (net of valuation allowances), with discrete period items having a nominal impact on the effective rate during the quarter.
−Removed: The effective tax rate for the three months ended April 2, 2022 was 40.2 %, which differed from the statutory federal income tax rate of 21 %.
−Removed: The difference is mainly due to normal tax rate items, including impacts from state taxes and federal and state tax credits (net of
−Removed: valuation allowances), which were partially offset by discrete period tax expense resulting from net non-deductible compensation expenses and other tax adjustments.
−Removed: The effective tax rate for the six months ended April 1, 2023 was 21.4 %, which aligned with the statutory federal tax rate of 21 % and is comprised of normal tax rate items, including impacts from state taxes and federal and state tax credits (net of valuation allowances), with discrete period items having a nominal impact on the effective rate during the period.
−Removed: The effective tax rate for the six months ended April 2, 2022 was 39.2 % and differed from the statutory federal income tax rate of 21 %.
+Added: The effective tax rate for the three months ended July 1, 2023 was 21.6 %, which aligned with the statutory federal income tax rate of 21 % and is comprised of normal tax rate items, including impacts from state taxes, federal and state tax credits (net of valuation allowances) and permanent differences, which were partially offset by the impact of discrete period items during the quarter.
+Added: The effective tax rate for the three months ended July 2, 2022 was ( 137.2 )%, which differed from the statutory federal income tax rate of 21 %.
+Added: In addition, the amount recorded represents income tax expense in a three month period in which the Company recorded loss before income taxes.
+Added: This unusual relationship exists as the amount recorded was necessary to adjust the income tax benefit for the
+Added: nine months ended July 2, 2022, discussed below, to reflect the Company's revised estimated annual income tax rate, including the effects of discrete period tax items.
+Added: The effective tax rate for the nine months ended July 1, 2023 was 22.2 %, which aligned with the statutory federal tax rate of 21 % and is comprised of normal tax rate items, including impacts from state taxes, federal and state tax credits (net of valuation allowances) and permanent differences, which were partially offset by the impact of discrete period items during the period.
+Added: The effective tax rate for the nine months ended July 2, 2022 was 24.8 % and differed from the statutory federal income tax rate of 21 %.
The difference is mainly due to normal tax rate items, including impacts from state taxes and federal and state tax credits (net of valuation allowances), which were partially offset by discrete period tax expense resulting from net non-deductible compensation expenses and other tax adjustments.
Guarantees, Commitments and Contingencies
−Removed: At April 1, 2023, the Company had a number of product liability and other cases pending.
+Added: At July 1, 2023, 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.
9 unchanged sentences
Management evaluates the segments based primarily upon revenues and gross profit, which are reflected in the tables below for the periods presented :
−Removed: Three Months Ended Six Months Ended
−Removed: (in thousands of dollars) April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022
+Added: Three Months Ended Nine Months Ended
+Added: (in thousands of dollars) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Bus (1) $ 270,282 $ 186,631 $ 757,003 $ 487,552
1 unchanged sentence
Segment net sales $ 294,284 $ 206,083 $ 829,830 $ 542,965
−Removed: (1) Parts segment revenue includes $ 1.3 million and $ 1.1 million for the three months ended April 1, 2023 and April 2, 2022, respectively, and $ 2.4 million and $ 1.9 million for the six months ended April 1, 2023 and April 2, 2022, respectively, related to the inter-segment sale of parts that was eliminated by the Bus segment upon consolidation.
−Removed: Gross profit (loss)
−Removed: Three Months Ended Six Months Ended
−Removed: (in thousands of dollars) April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022
+Added: (1) Parts segment revenue includes $ 1.7 million and $ 0.7 million for the three months ended July 1, 2023 and July 2, 2022, respectively, and $ 4.1 million and $ 2.6 million for the nine months ended July 1, 2023 and July 2, 2022, respectively, related to the inter-segment sale of parts that was eliminated by the Bus segment upon consolidation.
+Added: Three Months Ended Nine Months Ended
+Added: (in thousands of dollars) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Bus $ 34,176 $ 13,632 $ 53,544 $ 19,290
2 unchanged sentences
The following table is a reconciliation of segment gross profit to consolidated income (loss) before income taxes for the periods presented:
−Removed: Three Months Ended Six Months Ended
−Removed: (in thousands of dollars) April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022
+Added: Three Months Ended Nine Months Ended
+Added: (in thousands of dollars) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Segment gross profit $ 45,750 $ 21,593 $ 88,856 $ 40,947
6 unchanged sentences
Sales are attributable to geographic areas based on customer location and were as follows for the periods presented:
−Removed: Three Months Ended Six Months Ended
−Removed: (in thousands of dollars) April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022
+Added: Three Months Ended Nine Months Ended
+Added: (in thousands of dollars) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
United States $ 282,908 $ 193,571 $ 751,730 $ 488,363
3 unchanged sentences
The following table disaggregates revenue by product category for the periods presented:
−Removed: Three Months Ended Six Months Ended
−Removed: (in thousands of dollars) April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022
+Added: Three Months Ended Nine Months Ended
+Added: (in thousands of dollars) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Diesel buses $ 87,318 $ 79,355 $ 248,607 $ 221,669
7 unchanged sentences
The following table presents the earnings (loss) per share computation for the periods presented:
−Removed: Three Months Ended Six Months Ended
−Removed: (in thousands except for share data) April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022
+Added: Three Months Ended Nine Months Ended
+Added: (in thousands except for share data) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
Net income (loss) $ 9,358 $ ( 6,435 ) $ 5,194 $ ( 22,664 )
6 unchanged sentences
Diluted earnings (loss) per share $ 0.29 $ ( 0.20 ) $ 0.16 $ ( 0.74 )
−Removed: (1) Potentially dilutive securities representing 0.4 million and 0.3 million shares of common stock were excluded from the computation of diluted earnings per share for the three month periods ending April 1, 2023 and April 2, 2022, respectively, and potentially dilutive securities representing 0.7 million and 0.3 million shares of common stock were excluded from the computation of diluted earnings per share for the six months ending April 1, 2023 and April 2, 2022, respectively, as their effect would have been antidilutive.
+Added: (1) Potentially dilutive securities representing 0.1 million and 0.6 million shares of common stock were excluded from the computation of diluted earnings per share for the three month periods ending July 1, 2023 and July 2, 2022, respectively, and potentially dilutive securities representing 0.5 million and 0.4 million shares of common stock were excluded from the computation of diluted earnings per share for the nine months ending July 1, 2023 and July 2, 2022, respectively, as their effect would have been antidilutive.
Accumulated Other Comprehensive Loss
The following table provides information on changes in accumulated other comprehensive loss ("AOCL") for the periods presented:
−Removed: Three Months Ended Six Months Ended
+Added: Three Months Ended Nine Months Ended
(in thousands of dollars) Defined Benefit Pension Plan Total AOCL Defined Benefit Pension Plan Total AOCL
−Removed: April 1, 2023
Beginning Balance $ ( 41,476 ) $ ( 41,476 ) $ ( 41,930 ) $ ( 41,930 )
2 unchanged sentences
Income taxes ( 72 ) ( 72 ) ( 216 ) ( 216 )
−Removed: Ending Balance April 1, 2023 $ ( 41,476 ) $ ( 41,476 ) $ ( 41,476 ) $ ( 41,476 )
−Removed: April 2, 2022
+Added: Ending Balance July 1, 2023 $ ( 41,249 ) $ ( 41,249 ) $ ( 41,249 ) $ ( 41,249 )
Beginning Balance $ ( 44,352 ) $ ( 44,352 ) $ ( 44,794 ) $ ( 44,794 )
2 unchanged sentences
Income taxes ( 70 ) ( 70 ) ( 210 ) ( 210 )
−Removed: Ending Balance April 2, 2022 $ ( 44,352 ) $ ( 44,352 ) $ ( 44,352 ) $ ( 44,352 )
+Added: Ending Balance July 2, 2022 $ ( 44,131 ) $ ( 44,131 ) $ ( 44,131 ) $ ( 44,131 )
+Added: Stockholder Transaction Costs
+Added: On June 7, 2023, the Company entered into an underwriting agreement with BofA Securities, Inc.
+Added: and Barclays Capital Inc., as representatives of the several underwriters and American Securities LLC, Coliseum Capital Partners, L.P., and Blackwell Partners LLC – Series A ("Selling Stockholders"), pursuant to which the Selling Stockholders agreed to sell 5,175,000 shares of common stock, including the sale of 675,000 shares pursuant to the underwriters’ exercise of their over-allotment option, at a purchase price of $ 20.00 per share (“Offering”).
+Added: The Offering was conducted pursuant to a prospectus supplement, dated June 7, 2023, to the prospectus, dated December 22, 2021, included in the Company’s registration statement on Form S-3 (File No.
+Added: 333-261858) that was initially filed with the SEC on December 23, 2021.
+Added: The Offering closed on June 12, 2023.
+Added: Although the Company did not sell any shares or receive any proceeds from the Offering, it was required to pay certain expenses in connection with the Offering that totaled approximately $ 5.6 million and $ 6.3 million for the three and nine month periods ending July 1, 2023, respectively, with no similar expense recorded during the same periods of fiscal 2022.
+Added: The $ 6.3 million of expense is included within other (expense) income, net on the Condensed Consolidated Statements of Operations for the three and nine month periods ending July 1, 2023, although approximately $ 0.7 million of such expense was initially recorded within selling, general and administrative expenses during the second quarter of fiscal 2023 and reclassified to other (expense) income, net, during the third quarter of fiscal 2023.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.