Slide 1: Fiscal 2021 First Quarter Results
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2021 First Quarter Results Earnings Conference Call February 10, 2021
Slide 2: Agenda
Agenda ▪ Introductions & Forward-Looking Statements • Mark Benfield – Executive Director, Profitability & Investor Relations ▪ Business Overview • Phil Horlock – President & CEO ▪ Financial Results • Jeff Taylor – CFO ▪ Outlook and Guidance • Phil Horlock – President & CEO ▪ Q&A • Group This present
Slide 3: Business Overview
Phil Horlock President & CEO BUSINESS OVERVIEW 3
Slide 4: Improving Business Structure and Increasing EV Focus
Improving Business Structure and Increasing EV Focus ❖ Solid 1Q results in difficult environment with 40% of students on-line only ❖ Continuing to deliver structural/margin improvements ❖ Significant working capital improvement ❖ Continued alternative-power leadership; record 1Q mix ➢ Leadership in
Slide 5: Solid 1Q FY2021 Results in Lowest Quarter
Solid 1Q FY2021 Results in Lowest Quarter ▪ Achieved profitable results and strong cash flow performance in seasonally- low 1Q, despite COVID impact on in-classroom teaching ◦ 1,255 buses sold, down 205 units from last year ◦ Total Net Sales of $130.4M, 15% below last year ◦ Adjusted EBITDA of $5.8M
Slide 6: Significant Operating Achievements
Significant Operating Achievements Increased Bus ASP Renewed Ford New Ford 7.3L Engine Quality Exclusive Contract Costs renewal Capacity +$2k Gross Margin Transformational Bus Rev./Unit is up 2% BIC Propane and Gasoline 10 Year Partnership with Initiatives continue from last year Blue Bird and ROUSH
Slide 7: Alt-Power Leadership – Driving to Low & Zero Emissions
Alt-Power Leadership – Driving to Low & Zero Emissions FY2021 YTD1 Alternative-Power Bus Highlights ▪ 50% mix of sales and order backlog, up 5 pts Increasing Alt. Power Mix ▪ 107 Electric buses sold or in backlog, up 24% Future Growth Led by Electric and Propane ▪ 59 customers tried new Alt-Fuel opt
Slide 8: Blue Bird's EV Plan – Focused on Growth
Blue Bird’s EV Plan – Focused on Growth The EV Ecosystem Leadership in Electric School Bus Electric Vehicles bring new opportunities and ❖ Full line-up of Type A,C&D buses challenges for OEMs – carefully selected partnerships are key to leadership in total ❖ Selecting partners in the Ecosystem to cu
Slide 9: School Bus & Commercial Classifications
School Bus & Commercial Classifications School Bus Commercial Classification Classification Type C Buses (Conventional) Seating Capacity: 36-83 Class 5, 6 & 7 Fuel Types: Diesel, Propane, CNG, Gasoline, Electric Type D RE/FE Buses (Transit-Style) Class 6 & 7 Seating Capacity: 54-90 Fuel Types: Diese
Slide 10: Financial Results
Jeff Taylor CFO FINANCIAL RESULTS 10
Slide 11: 1Q Results – Summary
1Q Results – Summary ($ Millions unless noted) 1Q FY2021 1Q FY2020 B/(W) Unit Volume 1,255 1,460 (205) Net Revenue $130.4 $153.2 $(22.8) Bus Rev./Unit ($000's) $93.9 $92.3 $1.6 Gross Margin 11.1% 13.9% (280) bps. SG&A $14.7 $20.5 $5.8 Net Income $(1.6) $(0.4) $(1.2) Adj. Net Income1 $0.1 $2.0 $(2.0)
Slide 12: 1Q FY2020 to FY2021 Adj. EBITDA Walk
1Q FY2020 to FY2021 Adj. EBITDA Walk ($ Millions) Bus volume down 205 units 1Q profit decline driven by lower sales (205 units), partially offset by improved pricing, transformational initiatives, higher efficiencies and cost initiatives 1See appendix for additional detail regarding Adjusted EBITDA
Slide 13: FY2021 Free Cash Flow
FY2021 Free Cash Flow 1Q ($ Millions) FY2021 FY2020 B/(W) Adjusted EBITDA $ 5.8 $ 8.0 $ (2.2) Cash Paid for Interest (Net) (3.7) (2.2) (1.5) Trade Working Capital1 (16.4) (80.2) 63.8 CAPEX (3.3) (9.3) 6.0 Cash Taxes — — — Other2 3.7 (7.1) 10.8 Adjusted Free Cash Flow $ (13.9) $ (90.8) $ 76.9 Operati
Slide 14: Net Debt, Leverage & Liquidity
Net Debt, Leverage & Liquidity As of January 2, ($ Millions) 2021 Debt $171.0 Cash 23.9 Net Debt $147.1 Net Debt / Adjusted EBITDA 2.8x Net Leverage Ratio 3.1x TTM EBITDA1 $48.7 versus a minimum required TTM EBITDA covenant of $24.5M Liquidity2 $121.2 versus a minimum required liquidity covenant lev
Slide 15: Priorities and Outlook
Phil Horlock President & CEO PRIORITIES AND OUTLOOK 15
Slide 16: New Administration's Support for Schools and EV
New Administration’s Support for Schools and EV ❖ Calling on Congress to provide at least $130 billion in dedicated funding to K-12 schools, as well as $350 billion in flexible state and local aid that would help districts avoid lay-offs and close budget gaps. (1/21/21) ❖ “It should be a national pr
Slide 17: Outlook: Well-Positioned for Schools Resuming
Outlook: Well-Positioned for Schools Resuming ❖ Blue Bird Focus ▪ Executing margin-growth strategy – increase bus selling price, lower cost and increase mix of alternative-powered. New products and features planned ▪ Single shift operation launched smoothly, improving cost, efficiencies and quality;
Slide 18: FY2021 Guidance: Planning Prudently, Operating Aggressively
FY2021 Guidance: Planning Prudently, Operating Aggressively FY2020 FY2021 B/(W) $ Millions Guidance Net Revenue $879 $750 - $975 nnnllml $(129) - $96 Adj. EBITDA1 $55 $40 - $65 $(15) - $10 Adj. Free Cash Flow1 $(1) $(5) - $20 $(4) - $21 ❖ FY2021 Guidance uncertain; well positioned to capitalize on r
Slide 19: EBITDA Margin Growth Back on Track in FY2022
EBITDA Margin Growth Back on Track in FY2022 Adj. EBITDA ($Mils.) $120 COVID-19 Impact 20% 18% $100 16% $82 $80 $70 14% $60 $55 12% $50 10% $40 8% 8% 6% 6% $20 7% 6% $- 4% FY2018 FY2019 FY2020 FY2021G FY2022E FY2023E Midpoint Adj. EBITDA Margin Industry expected to rebound in FY2022 as schools resum
Slide 20: S BLUE BIRD.
S BLUE BIRD.
Slide 21: Appendix
Appendix S BLUE BIRD.
Slide 22: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation Reconciliation of Net Loss to Adjusted EBITDA Three Months Ended (in thousands of dollars) January 2, 2021 January 4, 2020 Net loss (1,61 $ 4) $ (403) Adjustments: Interest expense, net (1) 2,012 2,000 Income tax benefit (521) (326) Depreciation, amortization, and disposal
Slide 23: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Reconciliation of Free Cash Flow to Adjusted Free Cash Flow Three Months Ended (in thousands of dollars) January 2, 2021 January 4, 2020 Net cash provided by operating activities $ (11,497) $ (85,988) Cash paid for fixed assets (3,317) (9,287) Free cash flow $ (14,814)
Slide 24: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Reconciliation of Net Loss to Adjusted Net Income Three Months Ended (in thousands of dollars) January 2, 2021 January 4, 2020 (1,61 Net loss $ 4) $ (403) Adjustments, net of tax benefit or expense (1) Operational transformation initiatives 41 836 Product redesign initiat
Slide 25: Important Disclaimers
Important Disclaimers Forward Looking Statements This presentation includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations for future financial performance,
Slide 26: Important Disclaimers
Important Disclaimers Non-GAAP Financial Measures This presentation may include the following non-GAAP financial measures: “Adjusted EBITDA,” "Adjusted EBITDA Margin," “Adjusted Net Income,” “Adjusted Diluted Earnings per Share,” “Free Cash Flow” and “Adjusted Free Cash Flow.” Adjusted EBITDA is def
Slide 27: END
S BLUE BIRD.