Blue Bird (BLBD) 10-Q 7 Feb 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 30, 2023	Feb. 02, 2024
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 30, 2023
Document Transition Report	false
Entity File Number	001-36267
Entity Registrant Name	BLUE BIRD CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-3891989
Entity Address, Address Line One	3920 Arkwright Road
Entity Address, Address Line Two	2nd Floor
Entity Address, City or Town	Macon
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	31210
City Area Code	478
Local Phone Number	822-2801
Title of 12(b) Security	Common stock, $0.0001 par value
Trading Symbol	BLBD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		32,198,592
Entity Central Index Key	0001589526
Current Fiscal Year End Date	--09-28
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 30, 2023	Sep. 30, 2023
Current assets
Cash and cash equivalents	$ 77,296	$ 78,988
Accounts receivable, net	11,107	12,574
Inventories	142,457	135,286
Other current assets	12,485	9,215
Total current assets	243,345	236,063
Restricted cash	0
Property, plant and equipment, net	95,563	95,101
Goodwill	18,825	18,825
Intangible assets, net	44,956	45,424
Equity investment in affiliate	24,007	17,619
Deferred tax assets	1,001	2,182
Finance lease right-of-use assets	858	1,034
Other assets	2,723	1,518
Total assets	431,278	417,766
Current liabilities
Accounts payable	113,911	137,140
Warranty	6,601	6,711
Accrued expenses	32,454	32,894
Deferred warranty income	8,351	8,101
Finance lease obligations	980	583
Other current liabilities	20,500	24,391
Current portion of long-term debt	5,000	19,800
Total current liabilities	187,797	229,620
Long-term liabilities
Revolving credit facility	36,220	0
Long-term debt	93,486	110,544
Warranty	8,682	8,723
Deferred warranty income	15,767	15,022
Deferred tax liabilities	2,516	2,513
Finance lease obligations	445	987
Other liabilities	8,522	7,955
Pension	2,266	2,404
Total long-term liabilities	167,904	148,148
Guarantees, commitments and contingencies (Note 6)
Stockholders' equity
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0 shares outstanding at December 30, 2023 and September 30, 2023	0	0
Common stock, $0.0001 par value, 100,000,000 shares authorized, 32,198,592 and 32,165,225 shares outstanding at December 30, 2023 and September 30, 2023, respectively	3	3
Additional paid-in capital	187,159	177,861
Accumulated deficit	(29,550)	(55,700)
Accumulated other comprehensive loss	(31,753)	(31,884)
Treasury stock, at cost, 1,782,568 shares at December 30, 2023 and September 30, 2023	(50,282)	(50,282)
Total stockholders' equity	75,577	39,998
Total liabilities and stockholders' equity	$ 431,278	$ 417,766

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 30, 2023	Sep. 30, 2023
Statement of Financial Position [Abstract]
Preferred Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Outstanding	32,198,592	32,165,225
Treasury Stock, Common, Shares	1,782,568	1,782,568

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Income Statement [Abstract]
Net sales	$ 317,660	$ 235,732
Cost of goods sold	254,102	228,275
Gross profit	63,558	7,457
Operating expenses
Selling, general and administrative expenses	25,602	16,832
Operating profit (loss)	37,956	(9,375)
Interest expense	(3,631)	(4,196)
Interest income	1,088	0
Other expense, net	(1,221)	(236)
Loss on debt refinancing or modification	(1,558)	(537)
Income (loss) before income taxes	32,634	(14,344)
Income tax (expense) benefit	(8,446)	2,981
Equity in net income of non-consolidated affiliate	1,962	69
Net income (loss)	$ 26,150	$ (11,294)
Earnings (loss) per share:
Basic weighted average shares outstanding	32,170,779	32,026,311
Diluted weighted average shares outstanding	32,429,127	32,026,311
Basic earnings per share (in dollars per share)	$ 0.81	$ (0.35)
Diluted earnings per share (in dollars per share)	$ 0.81	$ (0.35)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 26,150	$ (11,294)
Other comprehensive income, net of tax:
Net change in defined benefit pension plan	131	227
Total other comprehensive income	131	227
Comprehensive income (loss)	$ 26,281	$ (11,067)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Cash flows from operating activities
Net income (loss)	$ 26,150	$ (11,294)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense	3,618	3,361
Non-cash interest expense	132	417
Share-based compensation expense	2,051	589
Equity in net income of non-consolidated affiliate	(1,962)	(69)
Dividend from equity investment in affiliate	2,991	0
Loss on disposal of fixed assets	4	0
Deferred income tax expense (benefit)	1,143	(2,986)
Amortization of deferred actuarial pension losses	172	299
Loss on debt refinancing or modification	1,558	537
Changes in assets and liabilities:
Accounts receivable	1,467	3,409
Inventories	(7,171)	13,857
Other assets	(3,095)	(5,227)
Accounts payable	(23,103)	16,572
Accrued expenses, pension and other liabilities	(3,738)	461
Total adjustments	(25,933)	31,220
Total cash provided by operating activities	217	19,926
Cash flows from investing activities
Cash paid for fixed assets	(2,904)	(1,146)
Proceeds from sale of fixed assets	0	0
Total cash used in investing activities	(2,904)	(1,146)
Cash flows from financing activities
Revolving credit facility borrowings (Note 4)	36,220	5,000
Revolving credit facility repayments	0	(20,000)
Term loan borrowings - new credit agreement (Note 4)	100,000	0
Term loan repayments - previous credit agreement (Note 4)	(131,800)	(4,950)
Principal payments on finance leases	(145)	(141)
Cash paid for debt costs (Note 4)	(3,128)	(3,211)
Repurchase of common stock in connection with stock award exercises	(301)	(57)
Cash received from stock option exercises	149	0
Total cash provided by (used in) financing activities	995	(23,359)
Change in cash, cash equivalents, and restricted cash	(1,692)	(4,579)
Cash, cash equivalents, and restricted cash at beginning of period	78,988	10,479
Cash, cash equivalents, and restricted cash at end of period	77,296	5,900
Supplemental disclosures of cash flow information
Interest paid, net of interest received	1,807	3,170
Income tax paid (received), net of tax refunds	2	(90)
Non-cash investing and financing activities:
Changes in accounts payable for capital additions to property, plant and equipment	953	672
Accrue debt modification costs	0	61
Right-of-use assets obtained in exchange for operating lease obligations	1,241	199
Warrants issued for equity investment in affiliate	$ 7,416	$ 0

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Deficit Statement - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In-Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Treasury Stock
Beginning Balance (in shares) at Sep. 30, 2022		32,024,911				1,782,568
Beginning Balance at Sep. 30, 2022	$ 1,382	$ 3	$ 173,103	$ (41,930)	$ (79,512)	$ (50,282)
Restricted stock activity (in shares)		7,156
Restricted stock activity	(57)		(57)
Share-based compensation expense	546		546
Net income (loss)	(11,294)				(11,294)
Other comprehensive income, net of tax	227
Other comprehensive income, net of tax	227			227
Ending Balance (in shares) at Dec. 31, 2022		32,032,067				1,782,568
Ending Balance at Dec. 31, 2022	(9,196)	$ 3	173,592	(41,703)	(90,806)	$ (50,282)
Beginning Balance (in shares) at Sep. 30, 2023		32,165,225				1,782,568
Beginning Balance at Sep. 30, 2023	39,998	$ 3	177,861	(31,884)	(55,700)	$ (50,282)
Private Placement (in shares)		0
Private placement stock issuance costs	7,416		7,416
Restricted stock activity (in shares)		22,115
Restricted stock activity	(301)		(301)
Stock option activity (in shares)		11,252
Stock option activity	149		149
Share-based compensation expense	2,034		2,034
Net income (loss)	26,150				26,150
Other comprehensive income, net of tax	131			131
Ending Balance (in shares) at Dec. 30, 2023		32,198,592				1,782,568
Ending Balance at Dec. 30, 2023	$ 75,577	$ 3	$ 187,159	$ (31,753)	$ (29,550)	$ (50,282)

Joint Ventures

Joint Ventures	3 Months Ended
	Dec. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
Joint Ventures	Micro Bird Holdings, Inc. During the three month period ended December 30, 2023, Micro Bird Holdings, Inc., our unconsolidated Canadian joint venture, paid dividends to all common stockholders, with the Company's proportionate share totaling $3.0 million, gross of required withholding taxes. The dividend was recorded as a reduction in the balance of equity investment in affiliate on the Condensed Consolidated Balance Sheets and is presented as a cash inflow in the operating section of the Condensed Consolidated Statements of Cash Flows. Clean Bus Solutions, LLC On December 7, 2023, the Company, through its wholly owned subsidiary, BBBC, and GC Mobility Investments I, LLC, a wholly owned subsidiary of Generate Capital, PBC (“Generate Capital”), a sustainable investment company focusing on clean energy, transportation, water, waste, agriculture, smart cities and industrial decarbonization, executed a definitive agreement (“Joint Venture Agreement”) establishing a joint venture, Clean Bus Solutions, LLC, to provide a fleet-as-a-service ("FaaS") offering using electric school buses manufactured and sold by the Company (“Joint Venture”). The service will be offered to qualified customers of the Company. Through the Joint Venture, the Company will provide its end customers with turnkey electrification solutions, including a wide product range consisting of, among others, electric school buses, financing of electric buses and supporting charging infrastructure, project planning and management, and fleet optimization. The Company and Generate Capital will initially have an equal common ownership interest in the Joint Venture, and will initially jointly share management responsibility and control, with each party having certain customary consent and approval rights and control triggers. The parties have each agreed to contribute up to $10.0 million to the Joint Venture, as agreed from time to time, for common interests to fund administrative expenses, and up to an additional $100.0 million of capital in the form of preferred interests to fund the purchase, delivery, installation, operation and maintenance of FaaS projects, inclusive of Blue Bird electric school buses and associated charging infrastructure. Of this amount, the Company has committed to provide up to $20.0 million and Generate Capital has committed to provide up to $80.0 million, with the Company’s aggregate commitment in any one year not to exceed $10.0 million without its consent. In accordance with the terms of the Joint Venture Agreement, the Company will promote the Joint Venture as the Company’s preferred FaaS offering for electric school buses and has agreed to not participate as a joint venture partner in any other similar FaaS offering for electric school buses, except as an original equipment manufacturer of buses. The Company’s obligations do not prevent or limit any activities of its dealers. The Joint Venture has a perpetual duration subject to the right of either party to terminate early upon the occurrence of certain events of default or the failure to achieve certain milestones set forth in the terms of the Joint Venture Agreement. In connection with the execution of the Joint Venture Agreement, the Company granted Generate Capital warrants to purchase an aggregate of 1,000,000 shares of Company common stock at an exercise price of $25.00 per share during a five-year exercise period (“Warrants”). Two-thirds of the Warrants were immediately exercisable while the remaining Warrants will become exercisable upon Generate Capital satisfying certain funding conditions. The exercise price and the number of shares issuable upon exercise of the Warrants are subject to adjustment in the event of a recapitalization, stock dividend or similar event. The Company recorded the $7.4 million fair value of the Warrants upon issuance as permanent equity within additional paid-in capital on the Condensed Consolidated Balance Sheets and is not required to subsequently record changes in fair value as long as the Warrants continue to be classified within stockholders' equity. Additionally, since the Warrants were provided in exchange for an investment in the Joint Venture, the Company recorded the cost of its investment based on the fair value of the Warrants upon issuance, which increased the balance of equity investment in affiliate on the Condensed Consolidated Balance Sheets by a corresponding $7.4 million. No other activity was recorded relating to the Joint Venture during the three month period ended December 30, 2023.

Nature of Business and Basis of

Nature of Business and Basis of Presentation	3 Months Ended
	Dec. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	1. Nature of Business and Basis of Presentation Nature of Business Blue Bird Body Company ("BBBC"), a wholly-owned subsidiary of Blue Bird Corporation, was incorporated in 1958 and has manufactured, assembled and sold school buses to a variety of municipal, federal and commercial customers since 1927. The majority of BBBC’s sales are made to an independent dealer network, which in turn sells buses to ultimate end users. References in these notes to condensed consolidated financial statements to “Blue Bird,” the “Company,” “we,” “our,” or “us” relate to Blue Bird Corporation and its wholly-owned subsidiaries, unless the context specifically indicates otherwise. We are headquartered in Macon, Georgia. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and accounts have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting and Article 10 of Regulation S-X. The Company’s fiscal year ends on the Saturday closest to September 30 with its quarters consisting of thirteen weeks in most years. The fiscal years ending September 28, 2024 ("fiscal 2024") and ended September 30, 2023 ("fiscal 2023") consist or consisted of 52 weeks. The first quarters of fiscal 2024 and fiscal 2023 both included 13 weeks. In the opinion of management, all adjustments considered necessary for a fair presentation of financial results have been made. Such adjustments consist of only those of a normal recurring nature. Operating results for any interim period are not necessarily indicative of the results that may be expected for the entire year. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Condensed Consolidated Balance Sheet data as of September 30, 2023 was derived from the Company’s audited financial statements but does not include all disclosures required by U.S. GAAP. For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes as of and for the fiscal year ended September 30, 2023 as set forth in the Company's fiscal 2023 Form 10-K filed with the Securities and Exchange Commission ("SEC") on December 11, 2023. Impacts of COVID-19 and Subsequent Supply Chain Constraints on our Business As discussed in detail in the fiscal 2023 Form 10-K filed with the SEC on December 11, 2023, the novel coronavirus known as "COVID-19" materially affected demand for new buses and replacement/maintenance parts during the second half of our fiscal year that ended October 3, 2020 ("fiscal 2020") and first half of our fiscal year that ended October 2, 2021 ("fiscal 2021"), significantly impacting our business and operations. Although demand for school buses strengthened substantially during the second half of fiscal 2021, the Company, and automotive industry as a whole, began experiencing significant supply chain constraints around this same period of time. These supply chain disruptions had a significant adverse impact on our operations and results during the second half of fiscal 2021 and all of fiscal 2022 due to higher purchasing costs, including freight costs incurred to expedite receipt of critical components, increased manufacturing inefficiencies and our inability to complete the production of buses to fulfill sales orders. Additionally, Russian military forces launched a large-scale invasion of Ukraine on February 24, 2022, which further exacerbated global supply chain disruptions. While the Company has no assets or customers in either of these countries, this military conflict has significantly impacted our financial results, primarily in an indirect manner since the Company does not sell to customers located in, or source goods directly from, either country. Specifically, it contributed to increased a) costs charged by suppliers for the purchase of inventory that is at least partially dependent on resources originating from either of the countries and b) freight costs, both of which negatively impacted the gross profit recognized on sales during fiscal 2022, fiscal 2023 and continuing into fiscal 2024. Towards the end of fiscal 2022 and continuing into fiscal 2023, there were slight improvements in the supply chain's ability to deliver the parts and components necessary to support our production operations, resulting in increased (i) manufacturing efficiencies and (ii) production of buses to fulfill sales orders during fiscal 2023. However, the higher costs charged by suppliers to procure inventory that continued into fiscal 2023 had a significant adverse impact on our operations and results. Specifically, such cost increases outpaced the increases in sales prices that we charged for the buses that were sold during the first quarter of fiscal 2023, many of which were included in the backlog of fixed price sales orders originating in fiscal 2021 and the early months of fiscal 2022 that carried forward into fiscal 2023. During the remainder of fiscal 2023, the buses that were sold were generally included in the backlog of fixed price sales orders originating more recently (i.e., the latter months of fiscal 2022 and in fiscal 2023), with the cumulative increases in sales prices we charged for those buses generally outpacing the higher costs we paid to procure inventory, resulting in gross profit during the quarters. While the gross margin on bus sales during the second quarter of fiscal 2023 lagged the historical gross margin reported prior to the COVID-19 pandemic, it returned to more normal historical levels during the latter half of fiscal 2023. Supply chain disruptions continued into the first quarter of fiscal 2024 as there were still occasional shortages of certain critical components as well as ongoing increases in raw materials costs, both of which impacted our business and operations by limiting the number of school buses that we could produce and sell as well as increasing the costs to manufacture buses. Nonetheless, the lessons learned, and resulting actions taken, by management over the past three fiscal years allowed the Company to better navigate these supply chain challenges and consistently produce buses to fulfill sales orders. Ongoing improvements in manufacturing operations, when coupled with periodic pricing actions taken by the Company to ensure that the increased sales prices charged for buses kept pace with increased costs to procure inventory to produce the buses, allowed the Company to report gross profit and gross margin during the first quarter of fiscal 2024 that were consistent with, or better than, historic levels experienced prior to the COVID-19 pandemic. Use of Estimates and Assumptions The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions. At the date of the financial statements, these estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, and during the reporting period, these estimates and assumptions affect the reported amounts of revenues and expenses. For example, significant management judgments are required in determining excess, obsolete, or unsalable inventory; the allowance for doubtful accounts; potential impairment of long-lived assets, goodwill and intangible assets; and the accounting for self-insurance reserves, warranty reserves, pension obligations, income taxes, environmental liabilities and contingencies. Future events, including the extent and duration of continued supply chain constraints and their related economic impacts, and their effects cannot be predicted with certainty, and, accordingly, the Company’s accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the Company’s condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in the Company’s evaluations. Actual results could differ from the estimates that the Company has used.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Recently Issued Accounting Standards	3 Months Ended
	Dec. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies and Recently Issued Accounting Standards	2. Summary of Significant Accounting Policies and Recently Issued Accounting Standards The Company’s significant accounting policies are described in the Company’s fiscal 2023 Form 10-K, filed with the SEC on December 11, 2023. Our senior management has reviewed these significant accounting policies and related disclosures and determined that there were no significant changes in our critical accounting policies in the three months ended December 30, 2023. Recently Issued Accounting Standards ASU 2023-07 On November 27, 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires public entities to disclose information about their reportable segments’ significant expenses on an interim and annual basis. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024, with early adoption permitted. ASU 2023-09 On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires entities to disclose more detailed information in their reconciliation of their statutory tax rate to their effective tax rate. Public business entities ("PBEs") are required to provide this incremental detail in a numerical, tabular format. The ASU also requires entities to disclose more detailed information about income taxes paid, including by jurisdiction; pretax income (or loss) from continuing operations; and income tax expense (or benefit). The ASU is effective for PBEs in fiscal years beginning after December 15, 2024, and interim periods beginning after December 15, 2025, with early adoption permitted. The new ASUs will not impact amounts recorded in the financial statements but instead, will require more detailed disclosures in the footnotes to the financial statement. The Company plans to provide the updated disclosures required by the ASUs in the periods in which they are effective.

Supplemental Financial Informat

Supplemental Financial Information	3 Months Ended
	Dec. 30, 2023
Condensed Financial Information [Abstract]
Supplemental Financial Information	3. Supplemental Financial Information Inventories The following table presents the components of inventories at the dates indicated: (in thousands of dollars) December 30, 2023 September 30, 2023 Raw materials $ 96,045 $ 88,116 Work in process 40,223 45,875 Finished goods 6,189 1,295 Total inventories $ 142,457 $ 135,286 Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the applicable Condensed Consolidated Balance Sheets that sum to the total of such amounts reported on the Condensed Consolidated Statements of Cash Flows: (in thousands of dollars) December 30, 2023 December 31, 2022 Cash and cash equivalents $ 77,296 $ 5,664 Restricted cash — 236 Total cash, cash equivalents, and restricted cash reported on the Condensed Consolidated Statements of Cash Flows $ 77,296 $ 5,900 Amounts included in restricted cash represent those that were required by a contractual agreement with a financial institution to serve as collateral against outstanding balances pertaining to the Company's corporate credit card program. Product Warranties The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented: Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Balance at beginning of period $ 15,434 $ 15,970 Add current period accruals 2,341 2,033 Current period reductions of accrual (2,492) (2,423) Balance at end of period $ 15,283 $ 15,580 Extended Warranties The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Balance at beginning of period $ 23,123 $ 18,795 Add current period deferred income 2,998 2,336 Current period recognition of income (2,003) (1,841) Balance at end of period $ 24,118 $ 19,290 The outstanding balance of deferred warranty income in the table above is considered a "contract liability," and represents a performance obligation of the Company that we satisfy over the term of the arrangement but for which we have been paid in full at the time the warranty was sold. We expect to recognize $6.4 million of the outstanding contract liability during the remainder of fiscal 2024, $6.9 million in fiscal 2025, and the remaining balance thereafter. Other Current Liabilities The balance in other current liabilities as of December 30, 2023 includes approximately $7.1 million of funds awarded by the U.S. Environmental Protection Agency in administering the U.S. Infrastructure Investment and Jobs Act ("IIJA") that was signed into law in mid-November 2021. The IIJA allocates federal funds to help local school jurisdictions purchase zero and low emission school buses over a five year period. The Company expects to recognize this amount as revenue during fiscal 2024 as the underlying buses are produced and delivered. Self-Insurance The following table reflects our total accrued self-insurance liability, comprised of workers' compensation and health insurance related claims, at the dates indicated: (in thousands of dollars) December 30, 2023 September 30, 2023 Current portion $ 4,392 $ 4,475 Long-term portion 2,009 1,771 Total accrued self-insurance $ 6,401 $ 6,246 The current and long-term portions of the accrued self-insurance liability are reflected in accrued expenses and other liabilities, respectively, on the Condensed Consolidated Balance Sheets. Shipping and Handling Revenues Shipping and handling revenues were $4.7 million and $4.3 million for the three months ended December 30, 2023 and December 31, 2022, respectively. The related cost of goods sold was $4.3 million and $3.8 million for the three months ended December 30, 2023 and December 31, 2022, respectively. Pension Expense Components of net periodic pension benefit expense were as follows for the periods presented: Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Interest cost $ 1,484 $ 1,509 Expected return on plan assets (1,620) (1,630) Amortization of prior loss 172 299 Net periodic pension benefit expense $ 36 $ 178 Amortization of prior loss, recognized in other comprehensive income (172) (299) Total recognized in net periodic pension benefit expense and other comprehensive income $ (136) $ (121)

Debt

Debt	3 Months Ended
	Dec. 30, 2023
Debt Disclosure [Abstract]
Debt	4. Debt On November 17, 2023 (the “Closing Date”), BBBC, as Borrower, executed a $250.0 million five-year credit agreement with Bank of Montreal, acting as administrative agent and an issuing bank; several joint lead arranger partners and issuing banks, including Bank of America; and a syndicate of other lenders (the "Credit Agreement"). The credit facilities provided for under the Credit Agreement consist of a term loan facility in an aggregate initial principal amount of $100.0 million (the “Term Loan Facility”) and a revolving credit facility with aggregate commitments of $150.0 million. The revolving credit facility includes a $25.0 million letter of credit sub-facility and $5.0 million swingline sub-facility (the “Revolving Credit Facility,” and together with the Term Loan Facility, each a “Credit Facility” and collectively, the “Credit Facilities”). A minimum of $100.0 million of additional term loans and/or revolving credit commitments may be incurred under the Credit Agreement, subject to certain limitations as set forth in the Credit Agreement, and which additional loans and/or commitments would require further commitments from existing lenders or from new lenders. Borrower has the right to prepay the loans outstanding under the Credit Facilities without premium or penalty (subject to customary breakage costs, if applicable). Additionally, proceeds from asset sales, condemnation, casualty insurance and/or debt issuances (in certain circumstances) are required to be used to prepay borrowings outstanding under the Credit Facilities. Borrowings under the Term Loan Facility, which were made on the Closing Date, may not be reborrowed once they are repaid while borrowings under the Revolving Credit Facility may be repaid and reborrowed from time to time at our election. The Term Loan Facility is subject to amortization of principal, payable in equal quarterly installments on the last day of each fiscal quarter, commencing on March 30, 2024, with 5.0% of the $100.0 million aggregate principal amount of all initial term loans outstanding at the Closing Date payable each year prior to the maturity date of the Term Loan Facility. The remaining initial aggregate principal amount outstanding under the Term Loan Facility, as well as any outstanding borrowings under the Revolving Credit Facility, will be payable on the November 17, 2028 maturity date of the Credit Agreement. The Credit Facilities are guaranteed by all of the Company’s wholly-owned domestic restricted subsidiaries (subject to customary exceptions) and are secured by a security agreement which pledges a lien on virtually all of the assets of Borrower, the Company and the Company’s other wholly-owned domestic restricted subsidiaries, other than any owned or leased real property and subject to customary exceptions. The $100.0 million of Term Loan Facility proceeds and $36.2 million of Revolving Credit Facility proceeds that were borrowed on the Closing Date were used to pay (i) the $131.8 million of term loan indebtedness outstanding under the previous credit agreement ("Amended Credit Agreement"), (ii) interest and commitment fees accrued under the Amended Credit Agreement through the Closing Date and (iii) transaction costs associated with the consummation of the Credit Agreement. Under the terms of the Credit Agreement, Borrower, the Company and the Company’s other wholly-owned domestic restricted subsidiaries are subject to customary affirmative and negative covenants and events of default for facilities of this type (with customary grace periods, as applicable, and lender remedies). Borrowings under the Credit Facilities bear interest, at our option, at (i) base rate ("ABR") or (ii) the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York ("SOFR") plus 0.10%, plus an applicable margin depending on the Total Net Leverage Ratio ("TNLR," which is defined in the Credit Agreement as the ratio of consolidated net debt to consolidated EBITDA on a trailing four quarter basis) of the Company as follows: Level TNLR ABR Loans SOFR Loans I Less than 1.00x 0.75% 1.75% II Greater than or equal to 1.00x and less than 1.50x 1.50% 2.50% III Greater than or equal to 1.50x and less than 2.25x 2.00% 3.00% IV Greater than or equal to 2.25x 2.25% 3.25% Pricing on the Closing Date was set at Level III until receipt of the financial information and related compliance certificate for the first fiscal quarter ending after the Closing Date. Borrower is also required to pay lenders an unused commitment fee of between 0.25% and 0.45% per annum on the undrawn commitments under the Revolving Credit Facility, depending on the TNLR, quarterly in arrears. The Credit Agreement also includes a requirement that the Company comply with the following financial covenants on the last day of each fiscal quarter through maturity: (i) a pro forma TNLR of not greater than 3.00:1.00 and (ii) a pro forma fixed charge coverage ratio (as defined in the Credit Agreement) of not less than 1.20:1.00. The Company was in compliance with such covenants as of December 30, 2023. The Company incurred approximately $3.1 million in lender fees and other issuance costs relating to the Credit Agreement. Of such total, approximately $1.9 million and $0.8 million was capitalized within other assets and long-term debt (as a contra-balance), respectively, on the Condensed Consolidated Balance Sheets and will be amortized as an adjustment to interest expense on a straight-line basis and utilizing the effective interest method, respectively, until maturity of the Credit Agreement. The remaining approximate $0.4 million was recorded to loss on debt refinancing or modification on the Condensed Consolidated Statements of Operations. In conjunction with executing the Credit Agreement, previously capitalized lender fees and other issuance costs relating to the Amended Credit Agreement and incurred in prior periods totaling $1.1 million were also expensed to loss on debt refinancing or modification on the Condensed Consolidated Statements of Operations. Term loan borrowings consisted of the following at the dates indicated: (in thousands of dollars) December 30, 2023 September 30, 2023 Term loan borrowings, net of deferred financing costs of $1,514 and $1,456, respectively $ 98,486 $ 130,344 Less: current portion of long-term debt 5,000 19,800 Long-term debt, net of current portion $ 93,486 $ 110,544 Term loan borrowings are recognized on the Condensed Consolidated Balance Sheets at the unpaid principal balance, and are not subject to fair value measurement; however, given the variable rates on the loans, the Company estimates that the unpaid principal balance approximates fair value. If measured at fair value in the financial statements, the term loans would be classified as Level 2 in the fair value hierarchy. At December 30, 2023 and September 30, 2023, $100.0 million and $131.8 million, respectively, were outstanding on the term loans. At December 30, 2023 and September 30, 2023, the stated interest rates on the term loans were 8.5% and 10.0%, respectively. For the three month periods ended December 30, 2023 and September 30, 2023, the weighted-average annual effective interest rates for the term loans were 9.9% and 10.9%, respectively. At December 30, 2023, $6.7 million of letters of credit were outstanding, which reduces the availability on the revolving line of credit. There were $36.2 million borrowings outstanding on the Revolving Credit Facility; therefore, the Company would have been able to borrow $107.1 million on the revolving line of credit. Interest expense on all indebtedness was $3.6 million and $4.2 million for the three months ended December 30, 2023 and December 31, 2022, respectively. The schedule of remaining principal payments through maturity for the term loans is as follows: (in thousands of dollars) Fiscal Year Principal Payments 2024 $ 3,750 2025 5,000 2026 5,000 2027 5,000 2028 5,000 Thereafter 76,250 Total remaining principal payments $ 100,000

Income Taxes

Income Taxes	3 Months Ended
	Dec. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	5. Income Taxes Income tax provisions for interim periods are based on estimated annual income tax rates, adjusted to reflect the effects of any significant infrequent or unusual items that are required to be discretely recognized within the current interim period. The effective tax rates in the periods presented are largely based upon the annual forecasted pre-tax earnings mix and allocation of certain expenses in various taxing jurisdictions where the Company conducts its business, primarily in the United States of America ("U.S."). In periods where our pre-tax income approximates or is equal to break-even, the effective tax rates for quarter-to-date and full-year periods may not be meaningful due to discrete period items. Three Months The effective tax rate for the three months ended December 30, 2023 was 25.9% and differed from the statutory federal income tax rate of 21%. The increase was primarily due to the impacts from state taxes and certain permanent items on the federal rate, which were partially offset by the impacts from federal and state tax credits (net of valuation allowances) and discrete period items during the quarter. The effective tax rate for the three months ended December 31, 2022 was 20.8%, which aligned with the statutory federal income tax rate of 21% and is comprised of normal tax rate items, including impacts from state taxes and federal and state tax credits (net of valuation allowances), with discrete period items having a nominal impact on the effective rate during the quarter.

Guarantees, Commitments and Con

Guarantees, Commitments and Contingencies	3 Months Ended
	Dec. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Guarantees, Commitments and Contingencies	6. Guarantees, Commitments and Contingencies Litigation At December 30, 2023, the Company had a number of product liability and other cases pending. Management believes that, considering the Company’s insurance coverage and its intention to vigorously defend its positions, the ultimate resolution of these matters will not have a material adverse effect on the Company’s financial statements. Environmental

Segment Information

Segment Information	3 Months Ended
	Dec. 30, 2023
Segment Reporting [Abstract]
Segment Information	7. Segment Information We manage our business in two operating segments: (i) the Bus segment, which includes the manufacturing and assembly of buses to be sold to a variety of customers across the U.S., Canada and in certain limited international markets; and (ii) the Parts segment, which consists primarily of the purchase of parts from third parties to be sold to dealers within the Company’s network and certain large fleet customers. Management evaluates the segments based primarily upon revenues and gross profit, which are reflected in the tables below for the periods presented: Net sales Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Bus (1) $ 293,437 $ 213,249 Parts (1) 24,223 22,483 Segment net sales $ 317,660 $ 235,732 (1) Parts segment revenue includes $1.6 million and $1.1 million for the three months ended December 30, 2023 and December 31, 2022, respectively, related to the inter-segment sale of parts that was eliminated by the Bus segment upon consolidation. Gross profit (loss) Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Bus $ 51,294 $ (3,731) Parts 12,264 11,188 Segment gross profit $ 63,558 $ 7,457 The following table is a reconciliation of segment gross profit to consolidated income (loss) before income taxes for the periods presented: Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Segment gross profit $ 63,558 $ 7,457 Adjustments: Selling, general and administrative expenses (25,602) (16,832) Interest expense (3,631) (4,196) Interest income 1,088 — Other expense, net (1,221) (236) Loss on debt refinancing or modification (1,558) (537) Income (loss) before income taxes $ 32,634 $ (14,344) Sales are attributable to geographic areas based on customer location and were as follows for the periods presented: Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 U.S. $ 302,532 $ 204,541 Canada 15,119 30,521 Rest of world 9 670 Total net sales $ 317,660 $ 235,732

Revenue

Revenue	3 Months Ended
	Dec. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	8. Revenue The following table disaggregates revenue by product category for the periods presented: Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Diesel buses $ 84,998 $ 71,494 Alternative power buses (1) 195,329 131,946 Other (2) 13,697 10,455 Parts 23,636 21,837 Net sales $ 317,660 $ 235,732 (1) Includes buses sold with any power source other than diesel (e.g., gasoline, propane, compressed natural gas ("CNG") or electric). (2) Includes shipping and handling revenue, extended warranty income, surcharges and chassis and bus shell sales.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 30, 2023
Earnings Per Share [Abstract]
Earnings Per Share	9. Earnings (Loss) Per Share The following table presents the earnings (loss) per share computation for the periods presented: Three Months Ended (in thousands except for share data) December 30, 2023 December 31, 2022 Numerator: Net income (loss) $ 26,150 $ (11,294) Denominator: Weighted-average common shares outstanding 32,170,779 32,026,311 Weighted-average dilutive securities, restricted stock 145,759 — Weighted-average dilutive securities, stock options 100,170 — Weighted-average dilutive securities, warrants (Note 12) 12,419 — Weighted-average shares and dilutive potential common shares (1) 32,429,127 32,026,311 Earnings (loss) per share: Basic earnings (loss) per share $ 0.81 $ (0.35) Diluted earnings (loss) per share $ 0.81 $ (0.35) (1) Potentially dilutive securities representing 0.2 million and 0.8 million shares of common stock were excluded from the computation of diluted earnings per share for the three month periods ending December 30, 2023 and December 31, 2022, respectively, as their effect would have been antidilutive.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Dec. 30, 2023
Equity [Abstract]
Accumulated Other Comprehensive Loss	10. Accumulated Other Comprehensive Loss The following table provides information on changes in accumulated other comprehensive loss ("AOCL") for the periods presented: Three Months Ended (in thousands of dollars) Defined Benefit Pension Plan Total AOCL December 30, 2023 Beginning Balance $ (31,884) $ (31,884) Amounts reclassified and included in earnings 172 172 Total before taxes 172 172 Income taxes (41) (41) Ending Balance December 30, 2023 $ (31,753) $ (31,753) December 31, 2022 Beginning Balance $ (41,930) $ (41,930) Amounts reclassified and included in earnings 299 299 Total before taxes 299 299 Income taxes (72) (72) Ending Balance December 31, 2022 $ (41,703) $ (41,703)

Stockholder Transaction Costs

Stockholder Transaction Costs	3 Months Ended
	Dec. 30, 2023
Equity [Abstract]
Stockholder Transaction Costs	On December 14, 2023, the Company entered into an underwriting agreement with BofA Securities, Inc. and Barclays Capital Inc., as representatives of the several underwriters and American Securities LLC ("Selling Stockholder"), pursuant to which the Selling Stockholder agreed to sell 2,500,000 shares of common stock at a purchase price of $25.10 per share (“Offering”). The Offering was conducted pursuant to a prospectus supplement, dated December 14, 2023, to the prospectus, dated December 22, 2021, included in the Company’s registration statement on Form S-3 (File No. 333-261858) that was initially filed with the SEC on December 23, 2021. The Offering closed on December 19, 2023. Although the Company did not sell any shares or receive any proceeds from the Offering, it was required to pay certain expenses in connection with the Offering that totaled approximately $1.2 million for the three month period ending December 30, 2023, with no similar expense recorded during the same period of fiscal 2023. The $1.2 million of expense is included within other expense, net on the Condensed Consolidated Statements of Operations for the three month period ending December 30, 2023.

Nature of Business and Basis _2

Nature of Business and Basis of Presentation (Policies)	3 Months Ended
	Dec. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and accounts have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting and Article 10 of Regulation S-X. The Company’s fiscal year ends on the Saturday closest to September 30 with its quarters consisting of thirteen weeks in most years. The fiscal years ending September 28, 2024 ("fiscal 2024") and ended September 30, 2023 ("fiscal 2023") consist or consisted of 52 weeks. The first quarters of fiscal 2024 and fiscal 2023 both included 13 weeks. In the opinion of management, all adjustments considered necessary for a fair presentation of financial results have been made. Such adjustments consist of only those of a normal recurring nature. Operating results for any interim period are not necessarily indicative of the results that may be expected for the entire year. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Condensed Consolidated Balance Sheet data as of September 30, 2023 was derived from the Company’s audited financial statements but does not include all disclosures required by U.S. GAAP. For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes as of and for the fiscal year ended September 30, 2023 as set forth in the Company's fiscal 2023 Form 10-K filed with the Securities and Exchange Commission ("SEC") on December 11, 2023.
Use of Estimates and Assumptions	Use of Estimates and Assumptions The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions. At the date of the financial statements, these estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, and during the reporting period, these estimates and assumptions affect the reported amounts of revenues and expenses. For example, significant management judgments are required in determining excess, obsolete, or unsalable inventory; the allowance for doubtful accounts; potential impairment of long-lived assets, goodwill and intangible assets; and the accounting for self-insurance reserves, warranty reserves, pension obligations, income taxes, environmental liabilities and contingencies. Future events, including the extent and duration of continued supply chain constraints and their related economic impacts, and their effects cannot be predicted with certainty, and, accordingly, the Company’s accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the Company’s condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in the Company’s evaluations. Actual results could differ from the estimates that the Company has used.
Recently Issued Accounting Standards and Recently Adopted Accounting Standards	Recently Issued Accounting Standards ASU 2023-07 On November 27, 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires public entities to disclose information about their reportable segments’ significant expenses on an interim and annual basis. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024, with early adoption permitted. ASU 2023-09 On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires entities to disclose more detailed information in their reconciliation of their statutory tax rate to their effective tax rate. Public business entities ("PBEs") are required to provide this incremental detail in a numerical, tabular format. The ASU also requires entities to disclose more detailed information about income taxes paid, including by jurisdiction; pretax income (or loss) from continuing operations; and income tax expense (or benefit). The ASU is effective for PBEs in fiscal years beginning after December 15, 2024, and interim periods beginning after December 15, 2025, with early adoption permitted. The new ASUs will not impact amounts recorded in the financial statements but instead, will require more detailed disclosures in the footnotes to the financial statement. The Company plans to provide the updated disclosures required by the ASUs in the periods in which they are effective.

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	3 Months Ended
	Dec. 30, 2023
Condensed Financial Information [Abstract]
Inventories	The following table presents the components of inventories at the dates indicated: (in thousands of dollars) December 30, 2023 September 30, 2023 Raw materials $ 96,045 $ 88,116 Work in process 40,223 45,875 Finished goods 6,189 1,295 Total inventories $ 142,457 $ 135,286
Restricted Cash	The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the applicable Condensed Consolidated Balance Sheets that sum to the total of such amounts reported on the Condensed Consolidated Statements of Cash Flows: (in thousands of dollars) December 30, 2023 December 31, 2022 Cash and cash equivalents $ 77,296 $ 5,664 Restricted cash — 236 Total cash, cash equivalents, and restricted cash reported on the Condensed Consolidated Statements of Cash Flows $ 77,296 $ 5,900
Product Warranties	The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented: Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Balance at beginning of period $ 15,434 $ 15,970 Add current period accruals 2,341 2,033 Current period reductions of accrual (2,492) (2,423) Balance at end of period $ 15,283 $ 15,580 Extended Warranties The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Balance at beginning of period $ 23,123 $ 18,795 Add current period deferred income 2,998 2,336 Current period recognition of income (2,003) (1,841) Balance at end of period $ 24,118 $ 19,290
Self-Insurance	The following table reflects our total accrued self-insurance liability, comprised of workers' compensation and health insurance related claims, at the dates indicated: (in thousands of dollars) December 30, 2023 September 30, 2023 Current portion $ 4,392 $ 4,475 Long-term portion 2,009 1,771 Total accrued self-insurance $ 6,401 $ 6,246
Pension Expense	Components of net periodic pension benefit expense were as follows for the periods presented: Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Interest cost $ 1,484 $ 1,509 Expected return on plan assets (1,620) (1,630) Amortization of prior loss 172 299 Net periodic pension benefit expense $ 36 $ 178 Amortization of prior loss, recognized in other comprehensive income (172) (299) Total recognized in net periodic pension benefit expense and other comprehensive income $ (136) $ (121)

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 30, 2023
Debt Disclosure [Abstract]
Schedule of Debt Covenant Requirements	Borrowings under the Credit Facilities bear interest, at our option, at (i) base rate ("ABR") or (ii) the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York ("SOFR") plus 0.10%, plus an applicable margin depending on the Total Net Leverage Ratio ("TNLR," which is defined in the Credit Agreement as the ratio of consolidated net debt to consolidated EBITDA on a trailing four quarter basis) of the Company as follows: Level TNLR ABR Loans SOFR Loans I Less than 1.00x 0.75% 1.75% II Greater than or equal to 1.00x and less than 1.50x 1.50% 2.50% III Greater than or equal to 1.50x and less than 2.25x 2.00% 3.00% IV Greater than or equal to 2.25x 2.25% 3.25%
Schedule of Term Debt Instruments	Term loan borrowings consisted of the following at the dates indicated: (in thousands of dollars) December 30, 2023 September 30, 2023 Term loan borrowings, net of deferred financing costs of $1,514 and $1,456, respectively $ 98,486 $ 130,344 Less: current portion of long-term debt 5,000 19,800 Long-term debt, net of current portion $ 93,486 $ 110,544
Schedule of Maturities of Long-term Debt	The schedule of remaining principal payments through maturity for the term loans is as follows: (in thousands of dollars) Fiscal Year Principal Payments 2024 $ 3,750 2025 5,000 2026 5,000 2027 5,000 2028 5,000 Thereafter 76,250 Total remaining principal payments $ 100,000

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Dec. 30, 2023
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	: Net sales Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Bus (1) $ 293,437 $ 213,249 Parts (1) 24,223 22,483 Segment net sales $ 317,660 $ 235,732 (1) Parts segment revenue includes $1.6 million and $1.1 million for the three months ended December 30, 2023 and December 31, 2022, respectively, related to the inter-segment sale of parts that was eliminated by the Bus segment upon consolidation. Gross profit (loss) Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Bus $ 51,294 $ (3,731) Parts 12,264 11,188 Segment gross profit $ 63,558 $ 7,457
Reconciliation of Operating Profit (Loss) from Segments to Consolidated	The following table is a reconciliation of segment gross profit to consolidated income (loss) before income taxes for the periods presented: Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Segment gross profit $ 63,558 $ 7,457 Adjustments: Selling, general and administrative expenses (25,602) (16,832) Interest expense (3,631) (4,196) Interest income 1,088 — Other expense, net (1,221) (236) Loss on debt refinancing or modification (1,558) (537) Income (loss) before income taxes $ 32,634 $ (14,344)
Revenue from External Customers by Geographic Areas	Sales are attributable to geographic areas based on customer location and were as follows for the periods presented: Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 U.S. $ 302,532 $ 204,541 Canada 15,119 30,521 Rest of world 9 670 Total net sales $ 317,660 $ 235,732

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Dec. 30, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table disaggregates revenue by product category for the periods presented: Three Months Ended (in thousands of dollars) December 30, 2023 December 31, 2022 Diesel buses $ 84,998 $ 71,494 Alternative power buses (1) 195,329 131,946 Other (2) 13,697 10,455 Parts 23,636 21,837 Net sales $ 317,660 $ 235,732 (1) Includes buses sold with any power source other than diesel (e.g., gasoline, propane, compressed natural gas ("CNG") or electric).

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table presents the earnings (loss) per share computation for the periods presented: Three Months Ended (in thousands except for share data) December 30, 2023 December 31, 2022 Numerator: Net income (loss) $ 26,150 $ (11,294) Denominator: Weighted-average common shares outstanding 32,170,779 32,026,311 Weighted-average dilutive securities, restricted stock 145,759 — Weighted-average dilutive securities, stock options 100,170 — Weighted-average dilutive securities, warrants (Note 12) 12,419 — Weighted-average shares and dilutive potential common shares (1) 32,429,127 32,026,311 Earnings (loss) per share: Basic earnings (loss) per share $ 0.81 $ (0.35) Diluted earnings (loss) per share $ 0.81 $ (0.35) (1) Potentially dilutive securities representing 0.2 million and 0.8 million shares of common stock were excluded from the computation of diluted earnings per share for the three month periods ending December 30, 2023 and December 31, 2022, respectively, as their effect would have been antidilutive.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Dec. 30, 2023
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table provides information on changes in accumulated other comprehensive loss ("AOCL") for the periods presented: Three Months Ended (in thousands of dollars) Defined Benefit Pension Plan Total AOCL December 30, 2023 Beginning Balance $ (31,884) $ (31,884) Amounts reclassified and included in earnings 172 172 Total before taxes 172 172 Income taxes (41) (41) Ending Balance December 30, 2023 $ (31,753) $ (31,753) December 31, 2022 Beginning Balance $ (41,930) $ (41,930) Amounts reclassified and included in earnings 299 299 Total before taxes 299 299 Income taxes (72) (72) Ending Balance December 31, 2022 $ (41,703) $ (41,703)

Joint Ventures (Details)

Joint Ventures (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Dec. 07, 2023	Dec. 30, 2023
Schedule of Equity Method Investments [Line Items]
Contribution to joint venture	$ 10
Interest in joint venture	100
Maximum joint venture commitment	$ 20
Fair value of warrants		$ 7.4
Warrant
Schedule of Equity Method Investments [Line Items]
Issued (shares)	1,000,000
Exercise price (dollars per share)	$ 25
Related Party
Schedule of Equity Method Investments [Line Items]
Maximum joint venture commitment	$ 80

Supplemental Financial Inform_3

Supplemental Financial Information - Inventories (Details) - USD ($) $ in Thousands	Dec. 30, 2023	Sep. 30, 2023
Condensed Financial Information [Abstract]
Raw materials	$ 96,045	$ 88,116
Work in process	40,223	45,875
Finished goods	6,189	1,295
Total inventories	$ 142,457	$ 135,286

Supplemental Financial Inform_4

Supplemental Financial Information - Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 30, 2023	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Condensed Financial Information Disclosure [Abstract]
Cash and cash equivalents	$ 77,296	$ 78,988	$ 5,664
Restricted cash	0		236
Total cash, cash equivalents, and restricted cash reported on the Condensed Consolidated Statements of Cash Flows	$ 77,296	$ 78,988	$ 5,900	$ 10,479

Supplemental Financial Inform_5

Supplemental Financial Information - Product Warranty Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 15,434	$ 15,970
Add current period accruals	2,341	2,033
Current period reductions of accrual	(2,492)	(2,423)
Balance at end of period	$ 15,283	$ 15,580

Supplemental Financial Inform_6

Supplemental Financial Information - Extended Warranty Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Movement in Extended Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 23,123	$ 18,795
Add current period deferred income	2,998	2,336
Current period recognition of income	(2,003)	(1,841)
Balance at end of period	$ 24,118	$ 19,290

Supplemental Financial Inform_7

Supplemental Financial Information Remaining Performance Obligation (Details) $ in Millions	Dec. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 6.4
Revenue, performance obligation, (in years)	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 6.9
Revenue, performance obligation, (in years)	1 year

Supplemental Financial Inform_8

Supplemental Financial Information - Self Insurance (Details) - USD ($) $ in Thousands	Dec. 30, 2023	Sep. 30, 2023
Condensed Financial Information [Abstract]
Current portion	$ 4,392	$ 4,475
Long-term portion	2,009	1,771
Total accrued self-insurance	$ 6,401	$ 6,246

Supplemental Financial Inform_9

Supplemental Financial Information - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Product Warranty Liability [Line Items]
Shipping and handling revenues	$ 317,660	$ 235,732
Funds awarded by the U.S. EPA	$ 7,100
Minimum
Product Warranty Liability [Line Items]
Extended product warranty, period	2 years
Maximum
Product Warranty Liability [Line Items]
Extended product warranty, period	5 years
Shipping and Handling
Product Warranty Liability [Line Items]
Shipping and handling revenues	$ 4,700	4,300
Shipping and handling cost of goods sold	$ 4,300	$ 3,800

Supplemental Financial Infor_10

Supplemental Financial Information - Pension Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Condensed Financial Information [Abstract]
Interest cost	$ 1,484	$ 1,509
Expected return on plan assets	(1,620)	(1,630)
Amortization of prior loss	172	299
Net periodic pension benefit expense	36	178
Amortization of prior loss, recognized in other comprehensive income	(172)	(299)
Total recognized in net periodic pension benefit expense and other comprehensive income	$ (136)	$ (121)

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)		3 Months Ended
	Nov. 17, 2023	Dec. 30, 2023	Dec. 31, 2022	Sep. 30, 2023	Nov. 24, 2021
Debt Instrument [Line Items]
Interest expense		$ 3,600,000	$ 4,200,000
Credit Agreement
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 250,000,000
Debt Instrument, Term	5 years
Senior Term Loan | Senior Credit Facility
Debt Instrument [Line Items]
Long-term line of credit		$ 100,000,000		$ 131,800,000
Stated interest rate (as a percent)		8.50%		10%
Weighted average effective interest rate (as a percent)		9.90%		10.90%
Revolving Credit Facility | Credit Agreement
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 36,200,000
Term Loan | Third Amendment to the Credit Agreement
Debt Instrument [Line Items]
Debt Instrument, Face Amount	131,800,000
Term Loan | Credit Agreement
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 100,000,000
Term Loan | Credit Agreement | Minimum
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage	0.25%
Term Loan | Credit Agreement | Maximum
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage	0.45%
Term Loan | Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	0.10%
Revolving Credit Facility | Line of Credit | Third Amendment to the Credit Agreement
Debt Instrument [Line Items]
Lender fees and other issuance costs					$ 3,100,000
Revolving Credit Facility | Line of Credit | Third Amendment to the Credit Agreement | Gain (Loss) o Extinguishment of Debt
Debt Instrument [Line Items]
Lender fees and other issuance costs					400,000
Revolving Credit Facility | Line of Credit | Third Amendment to the Credit Agreement | Other Noncurrent Assets
Debt Instrument [Line Items]
Lender fees and other issuance costs					1,900,000
Revolving Credit Facility | Line of Credit | Third Amendment to the Credit Agreement | Senior Notes, Noncurrent
Debt Instrument [Line Items]
Lender fees and other issuance costs					$ 800,000
Revolving Credit Facility | Line of Credit | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Long-term line of credit		$ 36,200,000
Revolving Credit Facility | Line of Credit | Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 150,000,000
Revolving Credit Facility | Line of Credit | Credit Agreement | Gain (Loss) o Extinguishment of Debt
Debt Instrument [Line Items]
Lender fees and other issuance costs	1,100,000
Letters of Credit | Line of Credit | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Remaining borrowing capacity		107,100,000
Letters of credit, amount outstanding		$ 6,700,000
Letters of Credit | Line of Credit | Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity	25,000,000
Swingline Credit Facility | Line of Credit | Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 5,000,000

Debt - Schedule of Long-term De

Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 30, 2023	Sep. 30, 2023
Debt Instrument [Line Items]
Current portion of long-term debt	$ 5,000	$ 19,800
Long-term debt	93,486	110,544
Senior Term Loan | 2023 Term Loan
Debt Instrument [Line Items]
Total debt	98,486	130,344
Deferred financing costs	$ 1,514	$ 1,456

Debt - Maturity Schedule (Detai

Debt - Maturity Schedule (Details) $ in Thousands	Dec. 30, 2023 USD ($)
Long-term Debt, Fiscal Year Maturity
2024	$ 3,750
2025	5,000
2026	5,000
2027	5,000
2028	5,000
Thereafter	76,250
Total debt	$ 100,000

Debt - Schedule of Debt Covenan

Debt - Schedule of Debt Covenant Requirements (Details) - Term Loan - Credit Agreement		3 Months Ended
	Nov. 17, 2023	Dec. 30, 2023
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	0.10%
Less than 1.00x | ABR Loans
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		0.75%
Less than 1.00x | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		1.75%
Greater than or equal to 1.00x and less than 1.50x | ABR Loans
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		1.50%
Greater than or equal to 1.00x and less than 1.50x | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		2.50%
Greater than or equal to 1.50x and less than 2.25x | ABR Loans
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		2%
Greater than or equal to 1.50x and less than 2.25x | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		3%
Greater than or equal to 2.25x | ABR Loans
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		2.25%
Greater than or equal to 2.25x | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		3.25%

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	25.90%	20.80%
Statutory Federal income tax rate (as a percent)	21%	21%

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended
	Dec. 30, 2023 USD ($) segment	Dec. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | segment	2
Net sales	$ 317,660	$ 235,732
Gross profit	63,558	7,457
U.S.
Segment Reporting Information [Line Items]
Net sales	302,532	204,541
Canada
Segment Reporting Information [Line Items]
Net sales	15,119	30,521
Rest of world
Segment Reporting Information [Line Items]
Net sales	9	670
Operating Segments
Segment Reporting Information [Line Items]
Gross profit	63,558	7,457
Operating Segments | Bus
Segment Reporting Information [Line Items]
Net sales	293,437	213,249
Gross profit	51,294	(3,731)
Operating Segments | Parts
Segment Reporting Information [Line Items]
Net sales	24,223	22,483
Gross profit	12,264	11,188
Intersegment Eliminations | Parts
Segment Reporting Information [Line Items]
Net sales	$ 1,600	$ 1,100

Segment Information - Reconcili

Segment Information - Reconciliation of Segment Gross Profit (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment gross profit	$ 63,558	$ 7,457
Selling, general and administrative expenses	(25,602)	(16,832)
Interest expense	(3,631)	(4,196)
Interest income	1,088	0
Other expense, net	(1,221)	(236)
Loss on debt refinancing or modification	(1,558)	(537)
Income (loss) before income taxes	32,634	(14,344)
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment gross profit	63,558	7,457
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Selling, general and administrative expenses	(25,602)	(16,832)
Interest expense	(3,631)	(4,196)
Interest income	1,088	0
Other expense, net	(1,221)	(236)
Loss on debt refinancing or modification	$ (1,558)	$ (537)

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 317,660	$ 235,732
Diesel buses
Disaggregation of Revenue [Line Items]
Net sales	84,998	71,494
Alternative fuel buses
Disaggregation of Revenue [Line Items]
Net sales	195,329	131,946
Other
Disaggregation of Revenue [Line Items]
Net sales	13,697	10,455
Parts
Disaggregation of Revenue [Line Items]
Net sales	$ 23,636	$ 21,837

Earnings Per Share - Summary of

Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income (loss)	$ 26,150	$ (11,294)
Weighted-average common shares outstanding	32,170,779	32,026,311
Weighted average diluted securities, warrants	12,419	0
Weighted-average shares and dilutive potential common shares	32,429,127	32,026,311
Basic earnings per share (in dollars per share)	$ 0.81	$ (0.35)
Diluted earnings per share (in dollars per share)	$ 0.81	$ (0.35)
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average dilutive securities	145,759	0
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average dilutive securities	100,170	0

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	0.2	0.8

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 30, 2023	Dec. 31, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ 39,998
Ending Balance	75,577
Defined Benefit Pension Plan
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(31,884)	$ (41,930)
Amounts reclassified and included in earnings	172	299
Total before taxes	172	299
Income taxes	(41)	(72)
Ending Balance	(31,753)	(41,703)
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(31,884)	(41,930)
Amounts reclassified and included in earnings	172	299
Total before taxes	172	299
Income taxes	(41)	(72)
Ending Balance	$ (31,753)	$ (41,703)

Stockholder Transaction Costs (

Stockholder Transaction Costs (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Jun. 07, 2023	Dec. 30, 2023
Subsidiary, Sale of Stock [Line Items]
Common stock sold, price per share (in USD per share)	$ 25.10
Private Placement
Subsidiary, Sale of Stock [Line Items]
Common stock sold (in shares)	2,500,000
Accrue common stock issuance costs		$ 1.2