Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q3 FY2021 Earnings Presentation
24 slides from Blue Bird's earnings presentation, Aug 12, 2021
Slide 1: Fiscal 2021 Third Quarter Results
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2021 Third Quarter Results Earnings Conference Call August 12, 2021
Slide 2: Agenda
Agenda ▪ Introductions & Forward-Looking Statements • Mark Benfield – Executive Director, Profitability & Investor Relations ▪ Business Overview • Phil Horlock – CEO ▪ Financial Results • Phil Tighe – CFO ▪ Outlook and Guidance • Phil Horlock – CEO ▪ Q&A • Group This presentation includes forward-lo
Slide 3: Business Overview
Phil Horlock CEO BUSINESS OVERVIEW 3
Slide 4: Near-Term Challenges; Business Improvement Continues
Near-Term Challenges; Business Improvement Continues Temporary Challenges Major Structural Progress ❖ Impacted by supply chain headwinds ❖ Strong demand for buses – record backlog of firm orders ❖ Slowed production rate through Second Half: ❖ Continuing to deliver structural/margin improvements – gr
Slide 5: 3Q FY2021 Results – Solid Despite Supply Chain headwinds
3Q FY2021 Results – Solid Despite Supply Chain headwinds ❖ Results better than prior year but significantly impacted by supplier disruptions; order backlog is very strong; no orders lost ➢ 2,024 buses sold, up 76 units from last year ➢ Total Net Sales of $196.7M, 4% above last year ➢ Adjusted EBITDA
Slide 6: Significant 3Q Operating Achievements
Significant 3Q Operating Achievements Significant Backlog Improved Underlying New Ford 7.3L Engine Quality of Firm Orders Manufacturing Structural Costs Efficiencies Capacity Gross Margin 4k+ +$7M up 2.2 pts Transformational Up 2k units from the BIC Propane and Gasoline Initiatives continue, Driving
Slide 7: Alt-Power Leadership – Driving Toward Zero Emissions
Alt-Power Leadership – Driving Toward Zero Emissions FY2021 YTD1 Alternative-Power Bus Highlights Blue Bird Increasing Alt. Power Mix ❖ 52% mix of sales and order backlog, up 2 pts Future Growth Led by Electric and Propane ❖ 178 customers tried new Alt-Fuel option ❖ 88 conquest customers added By 20
Slide 8: Financial Results
Phil Tighe CFO FINANCIAL RESULTS 8
Slide 9: 3Q Results – Summary
3Q Results – Summary ($ Millions unless noted) 3Q FY2021 3Q FY2020 B/(W) Unit Volume 2,024 1,948 76 Net Revenue $196.7 $189.2 $7.5 Bus Rev./Unit ($000's) $89.8 $92.7 $(2.9) Gross Margin 13.3% 11.1% 220 bps. SG&A $18.1 $17.8 $(0.3) Net Income $4.3 $1.3 $3.0 Adj. Net Income $5.2 $4.4 $0.9 Adj. EBITDA
Slide 10: 3Q FY2020 to FY2021 Adj. EBITDA Walk
3Q FY2020 to FY2021 Adj. EBITDA Walk FY2021 – 2,024 ($ Millions) FY2020 – 1,948 Profit Excluding Global Temporary Issues Variance – 76 550 Units Temporary global issues impacting parts supply, freight costs and manufacturing had a significant impact on 3Q profits; all orders retained in backlog See
Slide 11: 3Q FY2021 Free Cash Flow
3Q FY2021 Free Cash Flow 3Q ($ Millions) FY2021 FY2020 B/(W) Adjusted EBITDA $ 13.2 $ 12.5 $ 0.7 Cash Paid for Interest (Net) (2.7) (1.8) (0.9) Trade Working Capital1 (13.2) (39.3) 26.1 CAPEX (3.3) (2.5) (0.8) Cash Taxes — 2.0 (2.0) Other2 (0.4) (1.2) 0.8 Adjusted Free Cash Flow $ (6.4) $ (30.3) $ 2
Slide 12: Net Debt and Covenant Compliance
Net Debt and Covenant Compliance 1 TTM EBITDA as defined in our Credit Agreement dated as of December 12, 2016 2 Liquidity is defined as cash and cash equivalents plus availability on revolving line of credit Cash conservation measures in place and working 12
Slide 13: Priorities and Outlook
Phil Horlock CEO PRIORITIES AND OUTLOOK 13
Slide 14: Outlook: Well-Positioned for Schools Resuming
Outlook: Well-Positioned for Schools Resuming ❖ Blue Bird Focus ➢ Executing margin-growth strategy (GM up 220 bps in 3Q) – increase bus selling price, lower cost, raise productivity and increase mix of alternative-powered buses. New products and features planned ➢ Priced 5% in July and August to rec
Slide 15: FY2021 Guidance: Planning Prudently, Operating Aggressively
FY2021 Guidance: Planning Prudently, Operating Aggressively FY2020 FY2021 B/(W) $ Millions Guidance Net Revenue $879 $730 - $780 nnnllml $(149) - $(99) Adj. EBITDA1 $55 $37 - $43 $(18) - $(12) Adj. Free Cash Flow 1 $(1) $(30) - $(10) $(29) - $(9) ❖ FY2021 Guidance revised due to supply chain disrupt
Slide 16: EBITDA Margin Growth Back on Track in FY22/23
EBITDA Margin Growth Back on Track in FY22/23 Adj. EBITDA ($Mils.) $120 COVID/Supply Chain Impact 20% 18% $100 ? 16% $82 $80 $70 14% $60 $55 12% $40 10% $40 8% 8% 6% 6% $20 7% 6% $- 4% FY2018 FY2019 FY2020 FY2021G FY2022E FY2023E Midpoint Adj. EBITDA Margin Industry demand is expected to rebound in
Slide 17: Blue Bird
S BLUE BIRD.
Slide 18: Appendix
Appendix S BLUE BIRD.
Slide 19: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation Reconciliation of Net Income to Adjusted EBITDA Three Months Ended Nine Months Ended (in thousands of dollars) July 3, 2021 July 4, 2020 July 3, 2021 July 4, 2020 Net income $ 4,332 $ 1,286 $ 2,099 $ 244 Adjustments: Interest expense, net (1) 2,887 2,466 7,321 10,213 Incom
Slide 20: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Reconciliation of Free Cash Flow to Adjusted Free Cash Flow Three Months Ended Nine Months Ended (in thousands of dollars) July 3, 2021 July 4, 2020 July 3, 2021 July 4, 2020 Net cash provided by operating activities $ (3,040) $ (30,096) $ (14,238) $ (78,305) Cash paid
Slide 21: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 21
Slide 22: 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 23: 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 24: END
S BLUE BIRD.