Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q2 FY2021 Earnings Presentation
26 slides from Blue Bird's earnings presentation, May 12, 2021
Slide 1: Fiscal 2021 Second Quarter Results
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2021 Second Quarter Results Earnings Conference Call May 12, 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 ❖ ~62% of schools now full in-class teaching versus 36% in 1Q; 10% on-line only ❖ Quote and order rate increasing; order backlog 15% above last year ❖ Solid 2Q results in difficult environment with COVID and supply-chain issues ❖ Continuing to del
Slide 5: Solid 2Q FY2021 Results in 2nd Lowest Quarter
Solid 2Q FY2021 Results in 2nd Lowest Quarter ▪ Profitable in seasonally-low 2Q, despite 43% reduction in unit sales from near-record 2Q volume level last year; only 36% of schools open in January ◦ 1,489 buses sold, down 1,105 units from last year ◦ Total Net Sales of $164.7M, 36% below last year ◦
Slide 6: Significant Operating Achievements
Significant Operating Achievements Increased Bus ASP Improved New Ford 7.3L Engine Quality in 2Q Manufacturing Costs Efficiencies in 2Q Capacity Gross Margin +$9k +$9M up 1.7 pts Transformational Bus Rev./Unit is up 10% BIC Propane and Gasoline Driving process and Initiatives continue from last year
Slide 7: Alt-Power Leadership – Driving Toward Zero Emissions
Alt-Power Leadership – Driving Toward Zero Emissions FY2021 YTD1 Alternative-Power Bus Highlights Blue Bird Increasing Alt. Power Mix ▪ 48% mix of sales and order backlog, up 3 pts Future Growth Led by Electric and Propane ▪ 151 customers tried new Alt-Fuel option ▪ 78 conquest customers added By 20
Slide 8: Electrification of School Bus Fleet – 20% by 2030
Electrification of School Bus Fleet – 20% by 2030 Blue Bird Supports “Clean Commute for Kids Act of 2021” for Purchase Assistance of Electric School Buses New Legislation introduced will authorize $2.5B a year for districts, allowing affordable purchase of electric school buses Fort Valley, GA (Apri
Slide 9: Financial Results
Jeff Taylor CFO FINANCIAL RESULTS 9
Slide 10: 2Q Results – Summary
2Q Results – Summary ($ Millions unless noted) 2Q FY2021 2Q FY2020 B/(W) Unit Volume 1,489 2,594 (1,105) Net Revenue $164.7 $255.4 $(90.7) Bus Rev./Unit ($000's) $100.9 $92.0 $8.9 Gross Margin 11.2% 9.5% 170 bps. SG&A $17.4 $19.9 $2.5 Net Income $(0.6) $(0.6) $— Adj. Net Income1 $1.4 $2.5 $(1.1) Adj
Slide 11: 2Q FY2020 to FY2021 Adj. EBITDA Walk
2Q FY2020 to FY2021 Adj. EBITDA Walk ($ Millions) Bus volume down 1,105 units 2Q profit decline driven by lower sales (1,105 units), partially offset by improved pricing, efficiencies and cost initiatives 1See appendix for additional detail regarding Adjusted EBITDA 11
Slide 12: 2Q FY2021 Free Cash Flow
2Q FY2021 Free Cash Flow 2Q ($ Millions) FY2021 FY2020 B/(W) Adjusted EBITDA $ 7.5 $ 12.3 $ (4.8) Cash Paid for Interest (Net) (2.4) (2.6) 0.2 Trade Working Capital1 5.0 36.4 (31.4) CAPEX (3.7) (5.0) 1.3 Cash Taxes — (0.3) 0.3 Other2 (8.0) (1.9) (6.1) Adjusted Free Cash Flow $ (1.6) $ 38.9 $ (40.5)
Slide 13: Net Debt and Covenant Compliance
Net Debt and Covenant Compliance ($ Millions) As of April 3, 2021 Debt $168.8 Cash 18.7 Net Debt $150.1 TTM EBITDA1 $48.7 versus a minimum required TTM EBITDA covenant of $19.3M Liquidity2 $116.0 versus a minimum required liquidity covenant level of $15M 1 TTM EBITDA as defined in our Credit Agreeme
Slide 14: Priorities and Outlook
Phil Horlock President & CEO PRIORITIES AND OUTLOOK 14
Slide 15: Outlook: Well-Positioned for Schools Resuming
Outlook: Well-Positioned for Schools Resuming ❖ Blue Bird Focus ▪ Executing margin-growth strategy (GM up 170 bps in 2Q) – increase bus selling price, lower cost, raise productivity and increase mix of alternative-powered buses. New products and features planned ▪ Planning to price in next 45 days t
Slide 16: Backlog and New Order Rate Indicates Strong 2H
Backlog and New Order Rate Indicates Strong 2H First Half Unit Sales Second Half Unit Sales Up 15%+ Down (32)% 2020 2021 2020 2021 Over 15% growth in unit sales anticipated in 2H; recovery on course 16
Slide 17: 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 Flow 1 $(1) $(5) - $20 $(4) - $21 ❖ FY2021 Guidance maintained; well positioned to capitalize on
Slide 18: EBITDA Margin Growth Back on Track in FY2022
EBITDA Margin Growth Back on Track in FY2022 Adj. EBITDA ($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
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Slide 20: Appendix
Appendix S BLUE BIRD.
Slide 21: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation 21
Slide 22: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 22
Slide 23: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 23
Slide 24: 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 25: 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 26: END
S BLUE BIRD.