Blue Bird Corporation · NASDAQ:BLBD
Blue Bird — Q1 2024 Earnings Presentation
29 slides from Blue Bird's earnings presentation, Feb 7, 2024
Slide 1: FY2024 First Quarter Results Earnings Conference Call
BLUE BIRD CORPORATION (NASDAQ: BLBD) FY2024 First Quarter Results Earnings Conference Call February 7, 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: FY2024 Q1 Key Takeaways – Record Financial Results
FY2024 Q1 Key Takeaways – Record Financial Results All-Time Record Quarterly Profit and Record Q1 Net Revenue; Increasing Full Year Guidance Robust Market Demand, Maintaining Share and Continuing Strong Backlog Supply Chain Largely Stable; Highly Engaged with Two Key Constrained Suppliers Legacy-Pri
Slide 7: FY2024 Q1 Financial Results and Key Operating Highlights
FY2024 Q1 Financial Results and Key Operating Highlights FY2024 Q1 Results BUSINESS HIGHLIGHTS FINANCIAL HIGHLIGHTS Alt. Power sales UNITS NET mix of 66% Record EV order of SOLD SALES Strong +4 ppts. YoY 180 buses from $670M+ LA Unified 2,129 $318M Backlog of 4.6k Units1 EV Formed 172 vs.’23 $82M vs
Slide 8: Financial Results
FINANCIAL RESULTS Razvan Radulescu CFO 8
Slide 9: FY2024 Q1 Financial Results – Record Adj. EBITDA of $48M
FY2024 Q1 Financial Results – Record Adj. EBITDA of $48M FY2024 Q1 Results FINANCIAL HIGHLIGHTS UNITS NET SOLD SALES 2,129 $318M 172 vs.’23 $82M vs.’23 Adjusted Adjusted EBITDA FCF FY24-Q1 Results $48M $(2)M Record Q1 Revenue $318M $51M vs.’23 $(21)M vs.’23 Record EVs 206 Units Record Adj. EBITDA $4
Slide 10: Income Statement
Income Statement ($ Millions) FY2024-Q1 FY2023-Q1 B/(W) Unit Volume 2,129 1,957 172 Unit Backlog 4,570 5,335 (765) Net Revenue $317.7 $235.7 $82.0 Bus Rev./Unit ($000's) $137.8 $109.0 $28.8 / 26.4% Gross Margin 20.0% 3.2% 16.8 ppts Adj. EBITDA1 $47.6 $(3.5) $51.1 Adj. EBITDA Margin1 15.0% (1.5)% 16.
Slide 11: FY23-Q1 to FY24-Q1 Adj. EBITDA Walk: +$51M YoY
FY23-Q1 to FY24-Q1 Adj. EBITDA Walk: +$51M YoY ($ Millions) +51.1 Unit Volumes Pricing, 1.1 FY23-Q1 1,957 EV Mix 6.4 FY24-Q1 2,129 47.6 Delta 172 48.6 Higher Rev. (5.0) and Margins Labor Costs t/o EV Volumes Operational FY23-Q1 92 Improvements SG&A and FY24-Q1 206 Engineering Delta 114 15.0% (1.5)%
Slide 12: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow ($ Millions) FY2024-Q1 FY2023-Q1 B/(W) Cash $77.3 $5.7 $71.6 Debt $(134.7) $(149.1) $14.4 Liquidity $184.3 $84.3 $100.0 Operating Cash Flow $0.2 $19.9 $(19.7) Adj. Free Cash Flow1 $(1.5) $19.6 $(21.1) Trade Working Capital* $(28.8) $33.8 $(62.6) Breakeven Operating Cash F
Slide 13: New Debt Agreement in Place Confirms Our Strong Position
New Debt Agreement in Place Confirms Our Strong Position ▪ Duration 5 years, November 17 2023 - 2028 Pricing Grid SOFR ▪ Term loan $100M, 5% per year amortization SOFR Unused Net Leverage Ratio Margin Fee ▪ Revolver $150M, no amortization > 2.25x 325 bps 45 bps ▪ Accordion Upsize option $100M or TTM
Slide 14: TTM Performance Shows Sustained Profitable Growth
TTM Performance Shows Sustained Profitable Growth Rev. $300 $294 $303 $318 $1,215 $M 1 ~140 Adj. EBITDA ✓ Consistent Revenue in the $300M range and growing ✓ Improved EV mix and Pricing realization every quarter ✓ We beat and raised guidance for the last four quarters ✓ Record levels of 10%+ Adj. EB
Slide 15: Significant Investments Starting in 2024
Significant Investments Starting 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 benef
Slide 16: FY2024 Guidance Raised to $130M and ~11% EBITDA
FY2024 Guidance Raised to $130M and ~11% EBITDA 1 +42 Adj. EBITDA (+48%) ($M) 130 120 - 140 FY24 Updated Scenarios 88 Downside Guidance Upside FY24 Q2-Q4: Supply Chain Qtr. Revenue $275 - $325M Units 8,500 8,750 9,000 Adj. EBITDA Revenue $M $1,150 $1,200 $1,250 $25 - $35M 9% - 11% Adj. EBITDA $M $12
Slide 17: FY2024 Guidance Raised to $130M and ~11% EBITDA
FY2024 Guidance Raised to $130M and ~11% EBITDA FY2023 FY2024 FY2024 B/(W) $ Millions Actuals Dec. Feb. Updated Vs. Prior Year Guidance Guidance Net Revenue $1,133 $1,150 - $1,250 $1,150 - $1,250 $17 - $117 Adj. EBITDA1 $88 $105 - $125 $120 - $140 $32 - $52 Adj. Free Cash Flow1 $121 $50 - $60 $60 -
Slide 18: Capital Allocation - Share Repurchase Program
Capital Allocation - Share Repurchase Program Sources of Cash Uses of Cash Cash Flow from Operations FY24 R&D Expenditures <$25M Growth (incl. Tax, Interest, ∆WoC; excl. R&D) $148M CAPEX (incl. maintenance) <$25M JV CBS / Small M&A <$25M Existing Cash at YE23 $77M Total Funds Shareholders Available
Slide 19: Profitable Growth Driven by EV and Lean Transformation
Profitable Growth Driven by EV and Lean Transformation Revenue $M Gas/Propane EV February Short Outlook Long Rev. Diesel CNG Units Updated Term Term $M 11,646 Guidance 12,000 12,000 11,317 11,017 11,000 3,000 10,500 10,000 8,878 9,500 2,500 8,514 8,750 8,000 6,679 6,822 2,000 2,000 1,700 6,000 1,350
Slide 20: Outlook
4 eal §=OUTLOOK i | — Phil Horlock CEO
Slide 21: 2024 Priorities Align with Our Strategy
2024 Priorities Align with Our Strategy Leader in Safety Best Great Products Service & Features Highest Competitive Quality & Cost Durability Alt Power Leader Our core strategies drive our plans towards profitable growth 21
Slide 22: EPA Clean School Bus Program Round 2 and Round 3
EPA Clean School Bus Program Round 2 and Round 3 The Bipartisan Infrastructure Law of 2021 authorizes EPA to offer rebates and grants to replace existing school buses with clean and zero-emission (ZE) models – $5B Funding over 5 years: Round 2 (2023 Grant Program) Round 3 (2023 Rebate Program) ▪ Fin
Slide 23: Wrap-Up: Record Profit Outlook in FY2024 & Beyond
Wrap-Up: Record Profit Outlook in FY2024 & Beyond NA School Bus Industry Thousands Bookings 3%+ = ~8,750 units Class 6-7* 39.6 38.7 36.8 36.1 36.6 35.8 32.5 Revenue 6%+ = ~$1.2 Billion 29.6 30.5 26.4 25.7 ~7% Adj. EBITDA 47%+ = ~$130 Million CAGR Adj. EBITDA 3 ppts+ = ~11% Margin EV Bookings 47%+ =
Slide 24: Q&A
Q&A 24
Slide 25: Appendix
APPENDIX 25
Slide 26: Adj. EBITDA Reconciliation
Adj. EBITDA Reconciliation 26
Slide 27: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 27
Slide 28: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 28
Slide 29: End
End 29