Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q4 2020 Earnings Presentation
27 slides from Blue Bird's earnings presentation, Dec 16, 2020
Slide 1: Fiscal 2020 Fourth Quarter and Full Year Results
Blue Bird Corporation (Nasdaq: BLBD) Fiscal 2020 Fourth Quarter and Full Year Results Earnings Conference Call December 16, 2020
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: Dealing with COVID-19 Challenges, but Outlook Promising
Dealing with COVID-19 Challenges, but Outlook Promising Blue Bird ▪ 4Q was a challenging quarter, however business-structure improvement continued o Challenges: • School shutdown remained significant with 50% on-line teaching • Continued slow order intake with uncertainty over classroom schooling •
Slide 5: FY2020 Overview – 4Q and Full Year
FY2020 Overview – 4Q and Full Year ▪ Profitable 4Q despite COVID-19 significantly impacting sales ◦ 2,876 buses sold, down 850 units from last year ◦ Total Net Sales of $281.4M, 18% below last year ◦ Adjusted EBITDA of $21.9M, $11.5M or 34% below last year ▪ FY2020 results were equal to or better th
Slide 6: Significant FY2020 Operating Achievements
Significant FY2020 Operating Achievements Safety Practices & Pricing to Cost Structure Alternative Fuels Business Continuity Offset Economics Improvement Leadership ▪ Temp. scanning ▪ Focus on growing ▪ Reduced FY costs ▪ 48% mix of sales stations installed ASP; 7% increase by $14.4M through in 4Q a
Slide 7: Alternative-Fuel Leadership
Alternative-Fuel Leadership FY2020 Alt. Fuel Highlights ▪ 48% mix of sales, equal to FY19 record Increasing Alt. Fuels Mix • 58% market share Future Growth Led by Electric and Propane ▪ 309 customers tried new Alt-Fuel option ▪ 157 conquest customers added +3k ▪ 158 electric buses sold (up 102 units
Slide 8: All-New Gasoline and Propane Engine in Early 2021
All-New Gasoline and Propane Engine in Early 2021 ❖ New Ford 7.3L Propane and Gasoline engine in Blue Bird Vision ➢ Exclusive to Blue Bird ➢ More HP and torque ➢ Lighter for better fuel consumption ➢ Improved quality and serviceability ➢ Smaller packaging #1 The best just got better!! Private & Conf
Slide 9: Financial Results & Outlook
Jeff Taylor CFO FINANCIAL RESULTS & OUTLOOK 9
Slide 10: 4Q Results – Summary
4Q Results – Summary ($ Millions unless noted) 4Q FY2020 4Q FY2019 B/(W) Unit Volume 2,876 3,726 (850) Net Revenue $281.4 $343.5 $(62.1) Bus Rev./Unit ($000's) $93.4 $87.4 $5.9 Gross Margin 10.5% 13.6% (310) bps. SG&A $16.1 $28.4 $12.4 Net Income $11.9 $11.6 $0.3 Adj. Net Income1 $13.3 $20.0 $(6.7)
Slide 11: 4Q FY2019 to FY2020 Adj. EBITDA Walk
4Q FY2019 to FY2020 Adj. EBITDA Walk ($ Millions) Higher manufacturing costs primarily from COVID impact partially offset by lower SG&A Bus volume down 850 units 4Q profit decline driven by lower sales (850 units), partially offset by improved pricing and cost initiatives 1See appendix for additiona
Slide 12: Full Year Results – Summary
Full Year Results – Summary ($ Millions except EPS & Margin) FY2020 FY2019 B/(W) Unit Volume 8,878 11,017 (2,139) Net Revenue $879.2 $1,018.9 $(139.7) Bus Rev./Unit ($000's) $92.7 $86.4 $6.2 Gross Margin 10.9% 13.1% (220) bps. SG&A $74.2 $89.6 $15.4 Net Income $12.2 $24.3 $(12.1) Adj. Net Income1 $2
Slide 13: FY2019 to FY2020 Adj. EBITDA Walk
FY2019 to FY2020 Adj. EBITDA Walk ($ Millions) Higher manufacturing costs primarily from COVID impact partially offset by lower SG&A Bus volume down 2,139 units YOY decline reflects lower volume and manufacturing efficiencies resulting from COVID, and project launch costs, partially offset by pricin
Slide 14: FY2020 Free Cash Flow
FY2020 Free Cash Flow 4Q Full Year ($ Millions) FY2020 FY2019 FY2020 FY2019 Adjusted EBITDA $ 21.9 $ 33.4 $ 54.7 $ 81.8 Cash Paid for Interest (Net) (1.0) (2.5) (7.6) (10.4) Trade Working Capital1 68.1 55.4 (15.0) (1.6) CAPEX (2.2) (5.4) (19.0) (35.5) Cash Taxes (0.1) (2.2) 1.5 (4.6) Other2 (5.4) (1
Slide 15: Net Debt, Leverage & Liquidity
Net Debt, Leverage & Liquidity As of October 3, ($ Millions) 2020 Debt $174.1 Cash 44.5 Net Debt $129.6 Net Debt / Adjusted EBITDA 2.4x Net Leverage Ratio 3.1x Compared with minimum bank Net Leverage Ratio covenant of 3.75x Liquidity1 $179.5 1 Liquidity is defined as cash and cash equivalents plus a
Slide 16: Outlook and FY2021 Guidance
Phil Horlock President & CEO OUTLOOK AND FY2021 GUIDANCE 16
Slide 17: Outlook: Well-Positioned for School Start
Outlook: Well-Positioned for School Start ❖ Blue Bird Focus ▪ Executing margin-growth strategy – increase bus selling price, lower cost and increase mix of alternative fueled-buses. New products and features planned ▪ Single shift operation launched smoothly, improving cost, efficiencies and quality
Slide 18: 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) - $21 ❖ FY2021 Guidance uncertain; well positioned to capitalize on
Slide 19: EBITDA Margin Growth Back on Track in FY2022
EBITDA Margin Growth Back on Track in FY2022 Adj. EBITDA ($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
Slide 20: S BLUE BIRD.
S BLUE BIRD.
Slide 21: Appendix
Appendix S BLUE BIRD.
Slide 22: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation Reconciliation of Net Income to Adjusted EBITDA Three Months Ended Fiscal Year Ended (in thousands of dollars) October 3, 2020 September 28, 2019 October 3, 2020 September 28, 2019 Net income $ 11,940 $ 11,592 $ 12,185 $ 24,300 Adjustments: Interest expense, net (1) 2,404
Slide 23: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Reconciliation of Free Cash Flow to Adjusted Free Cash Flow Three Months Ended Fiscal Year Ended (in thousands of dollars) October 3, 2020 September 28, 2019 October 3, 2020 September 28, 2019 Net cash provided by operating activities $ 81,763 $ 74,819 $ 3,459 $ 55,706
Slide 24: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Reconciliation of Net Income to Adjusted Net Income Three Months Ended Fiscal Year Ended (in thousands of dollars) October 3, 2020 September 28, 2019 October 3, 2020 September 28, 2019 Net income $ 11,940 $ 11,592 $ 12,185 $ 24,300 Adjustments, net of tax benefit or expen
Slide 25: 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 26: 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 27: END
S BLUE BIRD.