Slide 1: FY2024 Second Quarter Results Earnings Conference Call
BLUE BIRD CORPORATION (NASDAQ: BLBD) FY2024 Second Quarter Results Earnings Conference Call May 8, 2024
Slide 2: Agenda
Agenda Introductions & Mark Benfield Forward-Looking Statements Executive Director, Investor Relations Key Results and Highlights Phil Horlock CEO Financial Results Razvan Radulescu CFO Outlook Phil Horlock CEO Q&A Group This presentation includes forward-looking statements, including statements reg
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.” Additional information
Slide 5: Key Results & Highlights
KEY RESULTS & HIGHLIGHTS Phil Horlock CEO 5
Slide 6: Best-Ever Second Quarter Results – Key Takeaways
Best-Ever Second Quarter Results – Key Takeaways All-Time Q2 Record Profit; All-Time Record Quarterly Revenue; Increasing Full Year Guidance Robust Market Demand; Significantly Increasing Our Strong Backlog Supply Chain Largely Stable; Highly Engaged with Two Key Constrained Suppliers Substantially
Slide 7: FY2024 Q2 Financial Results and Key Business Highlights
FY2024 Q2 Financial Results and Key Business Highlights FY2024 Q2 Results BUSINESS HIGHLIGHTS FINANCIAL HIGHLIGHTS Alt. Power Sales UNITS NET Mix of 55%; 255 Unit Propane SOLD SALES Strong 60% YTD Order for Omaha Public Schools ~$850M 2,254 $346M Backlog of 5.9k Units1 EV (50) vs.’23 $46M vs.’23 Boo
Slide 8: Financial Results
FINANCIAL RESULTS Razvan Radulescu CFO 8
Slide 9: FY2024 Q2 and YTD Financial Results
FY2024 Q2 and YTD Financial Results FY2024 Q2 Results FY2024 H1 Results QUARTERLY HIGHLIGHTS FIRST HALF HIGHLIGHTS UNITS NET UNITS NET SOLD SALES SOLD SALES 2,254 $346M 4,383 $664M (50) vs.’23 $46M vs.’23 122 vs.’23 $128M vs.’23 Adjusted Adjusted Adjusted Adjusted EBITDA FCF EBITDA FCF $46M $54M $93
Slide 10: Income Statement
Income Statement ($ Millions) FY2024-Q2 FY2023-Q2 B/(W) Unit Volume 2,254 2,304 (50) Backlog Units / $ Revenue 5,904 / $849M 5,783 / $777M 121 / $72M Net Revenue $345.9 $299.8 $46.1 Bus Rev./Unit ($000's) $141.1 $118.7 $22.4 / 18.9% Gross Margin 18.4% 11.9% 6.5 ppts Adj. EBITDA1 $45.8 $21.1 $24.7 Ad
Slide 11: FY23-Q2 to FY24-Q2 Adj. EBITDA Walk: +$25M YoY
FY23-Q2 to FY24-Q2 Adj. EBITDA Walk: +$25M YoY ($ Millions) +24.7 Unit Volumes FY23-Q2 2,304 33.1 FY24-Q2 2,254 1.5 Delta (50) 45.8 (6.6) (3.3) Higher Rev. t/o EV Volumes Labor and Margins FY23-Q2 135 Labor Costs Costs FY24-Q2 210 SG&A and Delta 75 Engineering 21.1 Pricing, EV Mix 7.0% 13.2% FY23-Q2
Slide 12: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow ($ Millions) FY2024-Q2 FY2023-Q2 B/(W) Cash $93.1 $17.8 $75.3 Debt $(97.3) $(139.6) $42.3 Liquidity $236.4 $101.5 $134.9 Operating Cash Flow $54.6 $24.8 $29.8 Adj. Free Cash Flow1 $53.7 $23.4 $30.3 Trade Working Capital2 $22.1 $7.0 $15.1 Very strong Operating Cash Flow fo
Slide 13: TTM Performance Shows Sustained Profitable Growth
TTM Performance Shows Sustained Profitable Growth Rev. $294 $303 $318 $346 $1,261 $M 1 ~165 Adj. EBITDA ✓ Consistent Revenue in the $300M range and growing ✓ Improved EV mix and Pricing realization maintained ✓ We beat and raised guidance for the last five quarters ✓ Record levels of 10%-15% Adj. EB
Slide 14: Significant Investments Ramping-up in 2024
Significant Investments Ramping-up in 2024 Products and Powertrain Manufacturing and Supply Chain People and Processes • Next gen Ford Gas / Propane • Evaluate capacity expansion • Inflationary pressures and labor • Product enhancements for EV • Production facility updates • Competitive employee ben
Slide 15: FY2024 Guidance Raised to $155M and 12% EBITDA
FY2024 Guidance Raised to $155M and 12% EBITDA 1 +67 Adj. EBITDA (+75%) ($M) 155 145 - 165 FY24 Updated Scenarios Downside Guidance Upside FY24 Q3-Q4: 88 Supply Chain Qtr. Revenue $300 - $350M Units 8,600 8,800 9,000 Adj. EBITDA Revenue $M $1,275 $1,300 $1,325 $25 - $35M 9% - 11% Adj. EBITDA $M $145
Slide 16: FY2024 Guidance Raised to $155M and 12% EBITDA
FY2024 Guidance Raised to $155M and 12% EBITDA FY2023 FY2024 FY2024 B/(W) $ Millions Actuals Feb. May Updated Vs. Prior Year Guidance Guidance Net Revenue $1,133 $1,150 - $1,250 $1,275 - $1,325 $142 - $192 Adj. EBITDA1 $88 $120 - $140 $145 - $165 $57 - $77 Adj. Free Cash Flow1 $121 $60 - $70 $70 - $
Slide 17: We Are Raising the Bar on Our Long Term Outlook to 14%+
We Are Raising the Bar on Our Long Term Outlook to 14%+ Units Revenue $M Diesel Gas/Propane EV QTR Full YR May New Outlook New Outlook Rev. Updated Short/Mid Term Long Term $M Guidance 12,000 2,500 2,304 2,254 400 12,000 11,000 3,000 2,137 2,116 2,129 10,000 1,957 10,000 8,800 9,500 2,000 350 8,514
Slide 18: Outlook
4 eal §=OUTLOOK i | — Phil Horlock CEO
Slide 19: 2024 Priorities Align with Our Strategy
2024 Priorities Align with Our Strategy Leader in Safety Best Great Products Service & Features Sustained Profitable Growth 8% 12% 14%+ EBITDA Margin Highest Competitive Quality & Cost Durability Alt Power Leader Our core strategies drive our plans towards profitable growth 19
Slide 20: Abundance of Federal Funding for EV School Buses
Abundance of Federal Funding for EV School Buses The Bipartisan Infrastructure Law of 2021 authorizes EPA to offer rebates and grants to New Program announced, utilizing Inflation replace existing school buses with clean / zero-emission models – $5B Funding over 5 years: Reduction Act funding: EPA C
Slide 21: Wrap-Up: Record Profit Outlook in FY2024 & Beyond
Wrap-Up: Record Profit Outlook in FY2024 & Beyond NA School Bus Industry Thousands Bookings 3%+ = ~8,800 units Class 6-7* 39.6 39.9 40.5 38.7 36.8 36.1 36.6 35.8 33.0 Revenue 15%+ = ~$1.3 Billion 29.6 30.5 26.4 25.7 ~7% Adj. EBITDA 75%+ = ~$155 Million CAGR Adj. EBITDA 4 ppts+ = ~12% Margin EV Booki
Slide 22: Q&A
Q&A 22
Slide 23: Appendix
APPENDIX 23
Slide 24: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation 24
Slide 25: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 25
Slide 26: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 26
Slide 27: FY23-H1 to FY24-H1 Adj. EBITDA Walk: +$76M YoY
FY23-H1 to FY24-H1 Adj. EBITDA Walk: +$76M YoY ($ Millions) +75.9 Unit Volumes FY23-H1 4,261 81.5 0.0 2.6 FY24-H1 4,383 93.4 Delta 122 Higher Rev. (8.2) and Margins t/o EV Volumes Labor Costs FY23-H1 227 SG&A and FY24-H1 416 Engineering Delta 189 17.5 Pricing, 3.3% EV Mix 14.1% FY23-H1 Bus Vol., Bus
Slide 28: Capital Allocation Update – Revolver Balance at $0
Capital Allocation Update – Revolver Balance at $0 Sources of Cash Uses of Cash Cash Flow from Operations FY24 R&D Expenditures <$25M Growth (incl. Tax, Interest, ∆WoC; excl. R&D) ~$158M CAPEX (incl. maintenance) <$25M JV CBS / Small M&A <$25M Existing Cash at YE23 ~$77M Total Funds Shareholders Ava
Slide 29: End
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