Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q1 FY2022 Earnings Presentation
24 slides from Blue Bird's earnings presentation, Feb 9, 2022
Slide 1: Fiscal 2022 First Quarter Results Earnings Conference Call
BLUE BIRD CORPORATION (NASDAQ: BLBD) Fiscal 2022 First Quarter Results Earnings Conference Call February 9, 2021
Slide 2: Agenda
Agenda Introductions & Mark Benfield Forward-Looking Executive Director, Profitability Statements & Investor Relations Results and Highlights Matthew Stevenson President & CEO Financial Results Razvan Radulescu CFO Business Update Matthew Stevenson President & CEO Q&A Group This presentation include
Slide 3: Important Disclaimers: Forward Looking Statements
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 4: Important Disclaimers: Non-GAAP Financial Measures
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 5: Results and Highlights
RESULTS AND HIGHLIGHTS Matthew Stevenson President & CEO 5
Slide 6: FY2022 1Q Overview
FY2022 1Q Overview Supply Chain Continues to Conscious of Inflationary Market Demand is Strong be Disruptive Pressures ▪ Order intake at pre-Covid ▪ Supplier allocation and ▪ Raw material cost levels shortages are still increases and delayed ▪ Pent-up demand, dealer prevalent production pressures in
Slide 7: 1QFY2022 Financial Results and Ongoing Business Highlights
1QFY2022 Financial Results and Ongoing Business Highlights Plant Upgrades & First Quarter FY2022 Reengaging Employee Engagement the dealer network FINANCIAL HIGHLIGHTS BUSINESS HIGHLIGHTS UNITS NET SOLD SALES 280+ EV’s in firm order Backlog1 1,149 $129M Record (106) vs.’21 $(1)M vs.’21 Backlog Award
Slide 8: Financial Results
FINANCIAL RESULTS Razvan Radulescu CFO 8
Slide 9: FY2022 1Q Income Statement
FY2022 1Q Income Statement ($ Millions) FY2022 FY2021 B/(W) Unit Volume 1,149 1,255 (106) Unit Backlog 4,849 1,137 3,712 Net Revenue $129.2 $130.4 $(1.2) Bus Rev./Unit ($000's) $97.9 $93.9 $4.0 Gross Margin 12.5% 11.1% 140 bps Adj. Net Income1 $(2.0) $0.1 $(2.1) Adj. EBITDA1 $3.6 $5.8 $(2.2) Adj. EB
Slide 10: FY2021 to FY2022 Adj. EBITDA Walk
FY2021 to FY2022 Adj. EBITDA Walk 1Q Unit Volume ($ Millions) FY2022 –1,149 FY2021 – 1,255 Variance – (106) 4% of Net Rev. 3% of Net Rev. Positive Adj. EBITDA, despite difficult supply chain environment, and with restored pay and engineering expense See appendix for additional detail regarding non-G
Slide 11: Balance Sheet and Liquidity
Balance Sheet and Liquidity As of ($ Millions) Jan 1, 2022 Debt $165.3 Cash 4.1 Net Debt $161.2 Net Debt / Adjusted EBITDA 5.0x Net Leverage Ratio 5.74x TTM EBITDA1 $28.0 versus a minimum required TTM EBITDA covenant of $14.5M Liquidity2 $92.8 versus a minimum required liquidity covenant level of $1
Slide 12: FY2022 Balance Sheet and Cash Flow Summary
FY2022 Balance Sheet and Cash Flow Summary ($ Millions) 1Q FY2022 1Q FY2021 B/(W) Cash $4.1 $23.9 $(19.8) Debt $165.3 $171.0 $5.7 Operating Cash Flow $(33.1) $(11.5) $(21.6) Adj. Free Cash Flow1 $(34.1) $(13.9) $(20.2) Trade Working Capital* $(24.0) $(16.4) $(7.6) Free Cash Flow lower primarily due
Slide 13: Balanced Costing and Pricing Actions
Balanced Costing and Pricing Actions Costing Actions 2H-22 Pricing Actions ▪ Backlog margin recovery actions ▪ Executed steel hedge for all of taken 2022 planned production ▪ Reduced quote guarantee from ▪ Engineering second or third 90 to 60 days source suppliers for key components ▪ Previously ann
Slide 14: FY2022 Guidance: First half significantly impacted by supply chain
FY2022 Guidance: First half significantly impacted by supply chain FY2021 FY2022 B/(W) $ Millions Guidance Net Revenue $684 $750 - $850 nnnll $66- $166 Adj. EBITDA1 $34 $30 - $50 $(4) - $16 Adj. Free Cash Flow1 $(62) $35 - $55 $97 - $117 ▪ 1H FY2022 impacted supply chain disruptions, limiting the un
Slide 15: Business Update
BUSINESS UPDATE Matthew Stevenson President & CEO 15
Slide 16: FY2022 Objectives & Focus Areas
FY2022 Objectives & Focus Areas Our People Lean Transformation Expanding Our TAM Scaling EV 16
Slide 17: FY2022 Focus Areas: Our People and Lean Transformation
FY2022 Focus Areas ▪ Lobby/Main cafeteria upgrades Our People ▪ Break areas renovations ▪ App for employees with real time schedule and production information ▪ Employee councils ▪ Visual management & 5S Transformation ▪ Daily stand-ups SQCDP Lean ▪ Focused on non-value added activities ▪ See clear
Slide 18: Expanding Our TAM and Scaling EV
FY2022 Focus Areas ▪ TAM over 30,000, effectively Expanding Our TAM doubling Blue Bird’s market Total Addressable Market ▪ Targeting High-end Motorhome (‘000’s of units) and Last Mile Delivery Stripped 31 Chassis 19 ▪ Minor modifications required to 12 current school bus chassis ▪ Progressing on eng
Slide 19: Positive Long-Term Outlook
Positive Long-Term Outlook Continuing to deliver structural / margin improvements ▪ Gross margin should expand as production volume returns ▪ Supply chain shows some bright spots of improvement ▪ Total price increases of ~ 11% effective starting in 2H-FY2022 ▪ Additional 4% just announced; expected
Slide 20: Q&A
Q&A 20
Slide 21: Appendix
APPENDIX 21
Slide 22: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation Reconciliation of Net Income to Adjusted EBITDA (1) Includes $(0.1) million for both three month fiscal periods and $(0.1) million for both three month fiscal periods, representing interest expense on lease liabilities, which are a component of lease expense and presented
Slide 23: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Reconciliation of Free Cash Flow to Adjusted Free Cash Flow 23
Slide 24: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Reconciliation of Net Income to Adjusted Net Income and of Diluted EPS to Adjusted Diluted EPS (1) Amounts are net of estimated statutory tax rates of 25%. (2) Primarily costs incurred for third party cleaning services and personal protective equipment for our employees i