Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — FY2021 Earnings Presentation
30 slides from Blue Bird's earnings presentation, Dec 15, 2021
Slide 1: Fiscal 2021 Fourth Quarter and Full-Year Results
BLUE BIRD CORPORATION (NASDAQ: BLBD) Fiscal 2021 Fourth Quarter and Full-Year Results Earnings Conference Call December 15, 2021
Slide 2: Agenda
Agenda Introductions & Mark Benfield Forward-Looking Executive Director, Profitability Statements & Investor Relations Business Overview Matthew Stevenson President & CEO Financial Results Razvan Radulescu CFO Outlook and Guidance 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: Business Overview
BUSINESS OVERVIEW Matthew Stevenson President & CEO 5
Slide 6: FY2021 Overview
FY2021 Overview Clear signs of Supply chain Commodity cost Delayed production market recovery headwinds headwinds & strong orders • Schools fully • Supplier / logistics • Raw material cost • More than 2k units reopened in 2H21 disruptions increases pressured delayed until FY2022 • Pent-up demand • P
Slide 7: FY2021 Accomplishments
FY2021 Accomplishments Over 6 Dealers Investing Record 50% in New Facilities Backlog 4.2k Units2 of Sales were Alt. Power (~$430M) #1 Type A School Bus 20,000th Brand Propane Bus Plant Upgrades, New Partnerships, Employee New Opportunities Engagement & New Talent Over 550 Electric Bus Sold in FY21 o
Slide 8: Solid Results Despite Supply Chain Headwinds
Solid Results Despite Supply Chain Headwinds KEY FIGURES Q4 2021 UNITS NET UNITS NET SOLD SALES SOLD SALES 1,911 $192M 6,679 $684M (965) vs.’20 $(89)M vs.’20 (2,199) vs.’20 $(195)M vs.’20 Adjusted Adjusted Adjusted Adjusted EBITDA FCF EBITDA FCF $8M $(40)M $34M $(62)M $(14)M vs.’20 $(121)M vs.’20 $(
Slide 9: Financial Results
FINANCIAL RESULTS Razvan Radulescu CFO 9
Slide 10: FY2021 Income Statement
FY2021 Income Statement ($ Millions) FY2021 FY2020 B/(W) Unit Volume 6,679 8,878 (2,199) Unit Backlog 4,236 1,180 3,056 Net Revenue $684.0 $879.2 $(195.2) Bus Rev./Unit ($000's) $93.6 $92.7 $0.9 Gross Margin 10.5% 10.9% (40) bps Adj. Net Income1 $8.7 $22.1 $(13.5) Adj. EBITDA1 $34.1 $54.7 $(20.6) Ad
Slide 11: FY2020 to FY2021 Adj. EBITDA Walk
FY2020 to FY2021 Adj. EBITDA Walk Profit Excluding Supply Chain Issues ($ Millions) Unit Volume FY2021 – 6,679 FY2020 – 8,878 Variance – (2,199) 2k Units • Bookings 8% of Net • Lost absorption Rev. Labor inefficiencies 6% of Net Premium Freight Rev. 5% of Net Rev. Global issues impacting parts suppl
Slide 12: Balance Sheet and Liquidity
Balance Sheet and Liquidity As of 4th Credit Amendment in Nov. 2021 ($ Millions) Oct 2, 2021 ▪ Provided for Credit Covenant relief through Debt $209.4 1H of FY2023 Cash 11.7 ▪ Additional $10M of revolver Commitment available Net Debt $197.7 ▪ New Pricing Levels ▪ LIBOR Floor (75 bps) + 425 bps if NL
Slide 13: FY2021 Balance Sheet and Cash Flow Summary
FY2021 Balance Sheet and Cash Flow Summary ($ Millions) FY2021 FY2020 B/(W) Cash $11.7 $44.5 $(32.8) Debt $209.4 $174.1 $(35.3) Operating Cash Flow $(54.2) $3.5 $(57.7) Adj. Free Cash Flow1 $(62.0) $(0.9) $(61.1) Trade Working Capital* $(56.9) $(15.0) $(41.9) Free Cash Flow lower primarily due to hi
Slide 14: Balanced Costing and Pricing Actions
Balanced Costing and Pricing Actions Costing Actions 2H-22 Pricing Actions ▪ Increase our direct-buy, Steel ▪ Implemented ~11% price increase hedging program, and extend it to recover known cost increases to our key suppliers ▪ Monitor win/lose rate and adjust ▪ Engineer second or third source as ne
Slide 15: Implemented Variable Pricing (PPI), Kept Fixed Price Option
Implemented Variable Pricing (PPI*), Kept Fixed Price Option Volume/ Concession New Variable Pricing Model Fixed Price + Escalator, or Only Variable Price (PPI) • The traditional school bus Variable Price (PPI) pricing model does not work in Only Variable Dealer/ the current inflationary Price (PPI)
Slide 16: 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 17: Priorities and Outlook
PRIORITIES AND OUTLOOK Matthew Stevenson President & CEO 17
Slide 18: Blue Bird Leadership Team
Blue Bird Leadership Team Razvan Radulescu, CFO Razvan has over 20 years of financial and operating experience at Daimler Trucks, where he held various roles of increasing responsibility in Finance and Procurement, including IT and compliance. Most recently, Razvan served as General Manager of Procu
Slide 19: Three Foundational Objectives
Three Foundational Objectives Take CARE of Employees • Safety • Employee Engagement • Voluntary Attrition DELIGHT Customers & Dealers • Defects Per Unit • 30-day Warranty • On-time Delivery DELIVER Profitable Growth • EBITDA • Free Cash Flow • % of Alt Power 19
Slide 20: FY2022 Focus Areas
FY2022 Focus Areas Our People Lean Transformation Expanding Our TAM Scaling EV 20
Slide 21: Blue Bird Complete Ecosystem for EV School Bus Deployment
Blue Bird Complete Ecosystem for EV School Bus Deployment END OF LIFE ASSESSMENT Determine recycling program for Determine what bus best fits the used batteries after use customer’s needs based on terrain, climate and route planning SERVICE & SUPPORT FINANCING Connect with dealer and EV system Ident
Slide 22: Strong Partnerships Created to Deploy Our Ecosystem
Strong Partnerships Created to Deploy Our Ecosystem Nuvve Announces First-of-its-Kind V2G Hub at Nuvve and Blue Bird Announce Plans to Expand Blue Bird Factory to Optimize Utilization of Electric Partnership and Utilize Levo's Fleet-as-a-Service Buses and Provide Capacity to the Grid Leasing Model N
Slide 23: Positive Long-Term Outlook
Positive Long-Term Outlook Continuing to deliver structural / margin improvements $5B for EV & Clean School Buses ▪ Gross margin should expand as production volume returns ▪ Total price increases of ~ 11% effective starting in 2H-22 ▪ Lean Transformation program started to improve efficiencies Leade
Slide 24: Long-Term Outlook Driven by Market Recovery, EV, and Lean Transformation
Long-Term Outlook Driven by Market Recovery, EV, and Lean Transformation Units Revenues $M Gas CNG Outlook Rev. $M Diesel Propane EV 15,000 3,000 FY2022 Guidance 12,000-12,500 11,646 2,500 11,317 11,017 11,000-11,500 1,750-2,000 • Challenging 1H, with 10,000 8,878 1,250- 2,000 expected volume and 7,
Slide 25: New Capital to Drive Growth
New Capital to Drive Growth Coliseum Capital Investment in BLBD Experienced $75 Million Investment BLBD Investors ▪ Provides proper balance sheet to ▪ Previous Blue Bird Board Member react quickly to rapidly evolving EV (2015-2017) opportunity ▪ Anchor investor when BLBD ▪ Shares priced at $16/share
Slide 26: Q&A
Q&A 26
Slide 27: Appendix
APPENDIX 27
Slide 28: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation Reconciliation of Net Income to Adjusted EBITDA 28
Slide 29: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Reconciliation of Free Cash Flow to Adjusted Free Cash Flow 29
Slide 30: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Reconciliation of Net Income to Adjusted Net Income and of Diluted EPS to Adjusted Diluted EPS 30