Slide 1: FY2024 Fourth Quarter & Full Year Results
BLUE BIRD CORPORATION (NASDAQ: BLBD) FY2024 Fourth Quarter & Full Year Results Earnings Conference Call November 25, 2024
Slide 2: Agenda
Agenda Introductions & Mark Benfield Forward-Looking Statements Executive Director, Investor Relations Key Results and Highlights Phil Horlock President & CEO Financial Results Razvan Radulescu CFO Outlook Phil Horlock President & CEO Q&A Group This presentation includes forward-looking statements,
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 President &CEO 5
Slide 6: Key FY2024 Takeaways: All-Time Record Year
Key FY2024 Takeaways: All-Time Record Year Record Profit; Beat Full Year Guidance and Raised Long-Term Outlook Robust Market Demand, Increasing Order Share and Continuing Strong Backlog Supply Chain Largely Stable; Highly Engaged with Two Key Constrained Suppliers Substantially Higher Bus Price Comp
Slide 7: FY2024 Financial Results and Key Business Highlights
FY2024 Financial Results and Key Business Highlights FY2024 Results Signed first collective BUSINESS HIGHLIGHTS FINANCIAL HIGHLIGHTS bargaining agreement with UNITS NET Alt. Power sales USW SOLD SALES mix of 58% Strong Selected for 9,000 $1,347M $735M Backlog of $80M grant from the DOE +486 vs.’23 +
Slide 8: Financial Results
FINANCIAL RESULTS Razvan Radulescu CFO 8
Slide 9: FY2024 Q4 and Full Year Record Financial Results
FY2024 Q4 and Full Year Record Financial Results FY2024 Q4 Results FY2024 Full Year Results FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS UNITS NET UNITS NET SOLD SALES SOLD SALES 2,466 $350M 9,000 $1,347M +350 vs.’23 +$47M vs.’23 +486 vs.’23 +$214M vs.’23 Adjusted Adjusted Adjusted Adjusted EBITDA FCF
Slide 10: Fourth Quarter Income Statement
Fourth Quarter Income Statement ($ Millions) FY24-Q4 FY23-Q4 B/(W) Unit Volume 2,466 2,116 350 Unit Backlog 4,846 4,559 287 Net Revenue $350.2 $303.0 $47.2 Bus Rev./Unit ($000's) $131.2 $131.2 $- Gross Margin 17.0% 16.5% 50 bps Adj. Net Income1 $25.8 $21.3 $4.5 Adj. EBITDA1 $41.3 $40.7 $0.6 Adj. EBI
Slide 11: FY23-Q4 to FY24-Q4 Adj. EBITDA Walk
FY23-Q4 to FY24-Q4 Adj. EBITDA Walk 1 Adj. EBITDA ($M) +0.6 Unit Volumes 3.5 FY23-Q4 2,116 11.0 0.9 FY24-Q4 2,466 One-time Delta 350 (1.7) Micro Bird Higher Rev. 41.3 40.7 Plant Labor and Margins JV EBITDA t/o EV Volumes FY23-Q4 171 Volume, Costs (USW) (13.1) FY24-Q4 84 SG&A and Delta (87) Pricing E
Slide 12: Full Year Income Statement
Full Year Income Statement ($ Millions) FY2024 FY2023 B/(W) Unit Volume 9,000 8,514 486 Unit Backlog 4,846 4,559 287 Net Revenue $1,347.2 $1,132.8 $214.4 Bus Rev./Unit ($000's) $138.1 $121.5 $16.6 Gross Margin 19.0% 12.3% 670 bps Adj. Net Income1 $115.3 $34.5 $80.8 Adj. EBITDA1 $182.9 $87.9 $95.0 Ad
Slide 13: FY2023 to FY2024 Adj. EBITDA Walk: $95M YoY Improvement
FY2023 to FY2024 Adj. EBITDA Walk: $95M YoY Improvement 1 Adj. EBITDA ($M) +95 Unit Volumes 120 5 6 FY2023 8,514 FY2024 9,000 183 Delta 486 (7) Micro Bird Higher Rev. JV EBITDA (28) Plant and Margins t/o EV Volumes Labor and SG&A and FY2023 546 FY2024 704 OH Costs Engineering Delta 158 (USW) 88 Pric
Slide 14: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary ($ Millions) FY2024 FY2023 B/(W) Cash $127.7 $79.0 $48.7 Debt $(95.0) $(130.3) $35.3 Liquidity $271.0 $163.4 $107.6 Operating Cash Flow $111.1 $119.9 $(8.8) Adj. Free Cash Flow1 $98.9 $121.1 $(22.2) Trade Working Capital* $(32.4) $36.4 $(68.8) Strong Operating Cas
Slide 15: FY2025 Full Year Guidance – Raised to $200M and 13.8% Margin
FY2025 Full Year Guidance – Raised to $200M and 13.8% Margin Tailwinds FY25 Scenarios Headwinds Downside New Guidance Upside • Strong demand Supply Chain • Supply chain • Stable Gross Margins Units 9,000 9,250 9,500 • Labor Costs (USW) t/o EV Units 1,000 1,150 1,300 • Propane exclusive • Material Co
Slide 16: FY2025 Quarterly Guidance – Product Mix Driving Growth
FY2025 Quarterly Guidance – Product Mix Driving Growth Rev. ~$300 ~$350 ~$400 $400+ $1,400 - $1,500 $M 200 1 Adj. EBITDA ✓ Growing EV sales, and Revenue in the $300M - $400M range 190 - 210 ✓ Growing Adj. EBITDA in the $40M - $60M range ✓ Consistent and growing levels of 13%-14% Adj. EBITDA 50 - 55
Slide 17: Blue Bird Awarded $80M MESC Grant by DOE for New Plant
Blue Bird Awarded $80M MESC Grant by DOE for New Plant ▪ New 600k sq.ft. Type D / EV production facility in Fort Valley, GA ▪ Total Investment ~$160M, 50% funded by Blue Bird ▪ Build-out 2 years, launch expected by mid CY 2027 ▪ FCF CAPEX impact in FY25 of up to $50M ▪ Raises total capacity on one s
Slide 18: FY2025 Full Year Guidance – Raised to $200M and 13.8% Margin
FY2025 Full Year Guidance – Raised to $200M and 13.8% Margin FY2024 FY2025 FY2025 B/(W) $ Millions Actuals Aug Updated Vs. Prior Year Guidance Guidance Net Revenue $1,347 $1,400 - $1,500 $1,400 - $1,500 $53 - $153 Adj. EBITDA1 $183 $180 - $200 $190 - $210 $7 - $27 Adj. Free Cash Flow1 $99 N/A $40 -
Slide 19: Blue Bird Profitable Growth Strategy and Capital Allocation
Blue Bird Profitable Growth Strategy and Capital Allocation Revenue FY25 Net Revenue ~$1.45B ➢ Organic growth, with focus on alternative fuels ➢ Not chasing market share, re-engaging large fleets ➢ Expanding with commercial chassis and Micro Bird Profit FY25 Adj. EBITDA ~$200M ➢ Disciplined pricing,
Slide 20: We Confirm Our Mid Term Outlook to 14% EBITDA
We Confirm Our Mid Term Outlook to 14% EBITDA Revenue $M Diesel Gas/Propane EV QTR Full YR 2024 2025 Outlook Outlook Rev. Units Actual Updated Mid Term Long Term (2028+) $M 2,466 Guidance 12,000+ 2,500 2,254 2,151 400 12,000 11,000 3,000 2,137 2,116 2,129 10,000 2,000 10,000 9,000 9,250 2,500 $350 3
Slide 21: Outlook
OUTLOOK Phil Horlock President & CEO 21
Slide 22: FY2025 Priorities Align with Our Strategy
FY2025 Priorities Align with Our Strategy Leader in Safety Best Great Products Service & Features Sustained Profitable Growth 8% 14% 15%+ EBITDA Margin Highest Competitive Quality & Cost Durability Alt Power Leader Our core strategies drive our plans towards profitable growth 22
Slide 23: Significant Federal Funding for EV School Buses
Significant Federal Funding for EV School Buses The Bipartisan Infrastructure Law of 2021 authorizes EPA to offer rebates and grants to replace existing New Program announced, utilizing school buses with clean / zero-emission models – $5B Funding over 5 years Inflation Reduction Act funding EPA CSB
Slide 24: Federal EV Programs: Expected Order and Delivery Timing
Federal EV Programs: Expected Order and Delivery Timing FY2024 FY2025 FY2026 FY2027+ EPA Round 1 Complete EPA Round 2 Application Award Order Delivery EPA Round 3 Application Award Order Delivery EPA Round 4 Application Award Order Delivery EPA Round 5 To Be Announced CHDV Application Award Order De
Slide 25: Confident in Maintaining Federal Funding Support
Confident in Maintaining Federal Funding Support ▪ Department of Energy $80M Grant (50% of total $160M investment) ➢ Fully supported and endorsed by both Republican and Democratic parties ➢ Adds up to 400 good-paying jobs in Middle Georgia, our home for nearly 100 years ➢ Adds capacity to meet urgen
Slide 26: Wrap-Up: Record Profit Outlook in FY2025 & Beyond
Wrap-Up: Record Profit Outlook in FY2025 & Beyond NA School Bus Industry Thousands Bookings 3%+ = ~9,250 units Class 6-7* 39.5 39.0 38.1 36.8 37.2 35.8 36.1 33.3 Revenue 8%+ = ~$1.45 Billion 29.6 30.5 29.1 26.4 25.7 ~6% Adj. EBITDA 9% = ~$200 Million CAGR Adj. EBITDA 20 bps+ = ~14% Margin EV Booking
Slide 27: Q&A
Q&A 27
Slide 28: Appendix
APPENDIX 28
Slide 29: We Confirm Our Mid Term Outlook to 14% EBITDA
We Confirm Our Mid Term Outlook to 14% EBITDA Revenue $M Diesel Gas/Propane EV 2024 2025 Outlook Outlook Rev. Units Mid Term Long Term (2028+) Actual Updated $M 11,317 11,646 Guidance 12,000+ 12,000 11,017 11,000 3,000 10,000 10,000 8,878 9,000 9,250 2,500 8,514 8,000 6,679 6,822 $1,850 $2,000 2,000
Slide 30: Working Capital – Dealer vs. Fleet / GSA Customer Segment
Working Capital – Dealer vs. Fleet / GSA Customer Segment Dealer Sales Flow RAW Inv. WIP Inv. FG Inv. BB Cash Transit PDI Customer (AP) Dealer Floor Plan (~2 days) Fleet / GSA Sales Flow RAW Inv. Customer WIP Inv. FG Inv. Transit PDI BB Cash (AP) (AR) 1-2 weeks 1-4 weeks 30+ days Unit sold 6 – 12+ w
Slide 31: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation 31
Slide 32: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 32
Slide 33: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 33
Slide 34: End
End 34