Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Investor Presentation (June 2022)
32 slides from Blue Bird's investor presentation, June 2022
Slide 1: Blue Bird Corporation Investor Presentation June 2022
“A Leader in zero- and low-emission transportation” BLUE BIRD CORPORATION (NASDAQ: BLBD) Investor Presentation June 2022
Slide 2: 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 3: 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 4: Agenda
Agenda Executive Summary School Bus Industry Overview Company & Product Highlights Priorities & Outlook 4
Slide 5: Executive Summary
Executive Summary ▪ Schools have broadly reopened; good news for bus ▪ Full range of chassis that can be offered to third parties, orders led by EV ▪ Aging school bus fleet ▪ Reducing structural costs through lean transformation, scaling EV business and expanding the firm’s Total ▪ Leader in alterna
Slide 6: School Bus Industry Overview
School Bus Industry Overview 6
Slide 7: School Bus Industry Products
School Bus Industry Products Type D FE Buses Type C Buses (Front Engine, Transit-Style) (Conventional) Seating Capacity: 54-90 Seating Capacity: 36-83 Fuel Type: Diesel Fuel Types: Diesel, Propane, CNG, Gasoline, Electric Type A Buses Type D RE Buses Seating Capacity: 10-30 (Rear Engine, Transit-Sty
Slide 8: Industry Highlights
Industry Highlights OEMs School Bus Customers Lion ~3,400 Contractors 500k+ Thomas Blue Bird ~10,000 School Districts IC High barriers to entry Highly specialized product -- Complex state and customer requirements -- Dealer and service network -- Customer relationship driven business Demand Drivers
Slide 9: Type C & D School Bus Industry
Type C & D School Bus Industry Mean: 31,000 11111111111111 Historical Registrations Long-term Avg. ('85-'19) ▪ Industry avg size (pre-COVID) is 31,000 new units annually based on Polk registrations ▪ Total fleet of school buses is ~510,000 units and average age is about 10 years ▪ Industry size is d
Slide 10: Fleet Age Profile Supports Industry Levels
Fleet Age Profile Supports Industry Levels ~510K School Buses on the Road as of the end of FY2021 40,000 43%+ of the fleet is 35,000 10 years and older 30,000 25,000 20,000 15,000 10,000 5,000 - 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 ~219K buse
Slide 11: Company & Product Highlights
Company & Product Highlights 11
Slide 12: Dedicated Manufacturing Footprint
Dedicated Manufacturing Footprint Micro Bird JV Facility (Drummondville, Quebec, Canada) Micro Bird JV Facility Parts Distribution Center Parts Distribution Center (Drummondville, Quebec) (Delaware, Ohio) (Delaware, Ohio) Design, fabrication, and Electronically guided, houses Commentary assembly of
Slide 13: Our Exclusive Franchised Dealer Network
Our Exclusive Franchised Dealer Network ▪ Dedicated dealer network is key in the school bus market ▪ Relationship-based business with more than 10k school districts and more than 3k contractors ▪ Nearly all bus purchases are competitively bid ▪ More than 85% of Blue Bird dealers dedicated to bus sal
Slide 14: Proven Leadership in Clean Technologies
Proven Leadership in Clean Technologies 14000 Diesel Gas Propane CNG Electric Alt-Power mix 90 % 12000 11,649 80 % ▪ Proven track record of leadership in 11,317 11,017 new technologies; more than 50% of 10,378 10,616 unit sales are non- diesel 70 % 10000 9,064 8,878 60 % 50% 8000 50 % ▪ Leader in el
Slide 15: EPA 2022 Clean School Bus Rebate Program
EPA 2022 Clean School Bus Rebate Program $500M of $5B released in 2022 Expected Orders Lottery Application Period Lottery Winners Payment to Winners May-August 2022 Notified October 2022 – (Up to 25 buses/applicant) October 2022 April 2023 EV ▪ Award amount for ZEV between $250k (non-priority) and $
Slide 16: FY2022 Objectives
FY2022 Objectives 16
Slide 17: FY2022 Objectives & Focus Areas
FY2022 Objectives & Focus Areas Our People Lean Transformation Expanding Our TAM Scaling EV 17
Slide 18: FY2022 Focus Areas: Our People and Lean Transformation
FY2022 Focus Areas ▪ Leadership team transformation near completion Our People ▪ Rolled out a comprehensive employee engagement survey and action plan ▪ Continuing upgrades in the manufacturing facility ▪ Improving the span of control and Britton Smith Jim Nelles accountability in manufacturing SVP,
Slide 19: Expanding Our TAM and Scaling EV
FY2022 Focus Areas ▪ Expanding Our TAM Launched prototype EV commercial chassis at ACT Expo ▪ TAM over 30,000, effectively doubling Blue Bird’s market ▪ Targeting Last Mile Delivery Stripped Chassis & High-end Motorhomes ▪ Expect sales in 2H of CY2023 ▪ Construction started on ~40,000 sq. ft. buildi
Slide 20: Build Complete Ecosystem for EV School Bus Deployment
Build 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 Identify
Slide 21: Solid Growth Runway
Solid Growth Runway 21
Slide 22: Positive Long-Term Outlook
Positive Long-Term Outlook Continuing to deliver operational improvements ▪ Gross margin should expand with recent pricing initiatives as the backlog is consumed ▪ Total price increases of ~ 25% now effective on new orders ▪ Policies in place to ensure pricing aligns with the inflationary environmen
Slide 23: Half of the FY22 volumes comes from FY21 orders
Half of the FY22 volumes comes from FY21 orders ▪ With every quarter, the SGM is slowly improving due to price increases Volume Volume Risk taking hold, as we are Structure Supply Chain working through the old backlog Q2FY22 Orders ▪ However, the current Ukraine situation created uncertainty on both
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. $M Diesel Propane EV 15,000 3,000 FY2022 Guidance 12,000-12,500 11,646 2,500 11,317 11,017 11,000-11,500 1,750-2,000 • Challenging 1H, with 10,000 8,878 1,250- 2,000 expected volume and 7,
Slide 25: 2Q22 Financials
2Q22 Financials 25
Slide 26: FY2022 2Q Income Statement
FY2022 2Q Income Statement ($ Millions) FY2022 FY2021 B/(W) Unit Volume 1,931 1,489 442 Unit Backlog 6,607 2,511 4,096 Net Revenue $207.7 $164.7 $43.0 Bus Rev./Unit ($000's) $97.6 $100.9 $(3.3) Gross Margin 1.5% 11.2% (970) bps Adj. Net Income1 $(10.1) $1.4 $(11.5) Adj. EBITDA1 $(10.7) $7.5 $(18.2)
Slide 27: FY2021 Q2 to FY2022 Q2 Actuals Adj. EBITDA Walk
FY2021 Q2 to FY2022 Q2 Actuals Adj. EBITDA Walk 2Q Unit Volume ($ Millions) Backlog margin FY2021 1,489 compression, FY2022 1,931 mainly material Variance +442 cost increases $6.5 4.6% of Plant inefficiencies driven Net Rev. by missing parts and higher $7.5 inbound freight costs 4.6% of Net Rev. $(1
Slide 28: Normalized Q2 result w/o supply chain constraints at ~$25M
Normalized Q2 result w/o supply chain constraints at ~$25M 2Q Unit Volume Without disruptions, booking ($ Millions) Backlog margin FY2021 1,489 for the period would have compression, ~$25M FY2022 1,931 been up to ~1k units higher mainly material Variance +442 cost increases Result w. additional $6.5
Slide 29: Balance Sheet and Liquidity
Balance Sheet and Liquidity As of ($ Millions) April 2, 2022 Debt1 $156.9 Cash1 14.9 Net Debt1 $142.0 Net Debt / Adjusted EBITDA1 10.4x Net Leverage Ratio2 12.4x TTM EBITDA2 $12.3 versus a minimum required TTM EBITDA covenant of $(4.5)M Liquidity2 3 $108.6 versus a minimum required liquidity covenan
Slide 30: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary ($ Millions) 2Q FY2022 2Q FY2021 B/(W) Cash $14.9 $18.7 $(3.8) Debt $156.9 $168.8 $11.9 Operating Cash Flow $21.7 $0.3 $21.4 Adj. Free Cash Flow1 $21.6 $(1.6) $23.3 Trade Working Capital* $31.2 $5.0 $26.3 Strong Free Cash Flow reported, primarily due to increased
Slide 31: Revising FY2022 Guidance
Revising FY2022 Guidance ▪ 1H FY2022 Actuals impacted supply Initial Revised FY2021 FY2022 FY2022 B/(W) chain disruptions, limiting the units $ Millions Act. Guidance Guidance Vs. Prior Year sold and creating inefficiencies ▪ Significant margin compression for 1H Net Revenue $684 $750 - $850 $800 -
Slide 32: End
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