BLBD - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to Blue Bird Corporation Fiscal 2020 Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Mark Benfield, Executive Director, Profitability and Investor Relations. you. Thank

begin. may You

Mark Benfield

welcome call. Bird's call The blue-bird.com Relations live and quarter is XXXX earnings on tab. Investor the conference audio under to you fiscal Blue third webcast Thank for our

slides supporting box presentations IR the access the can on website on on by page. our landing the clicking You

the any information SEC. release hear Our to our in subject matters filings Those some and risks CFO obligation risks and among this Bird's forward-looking others, that take latest be will will could are include and comments CEO questions. to different. that Blue Bird cause have you materially in noted we earnings today statements Jeff Blue to disclaims actual we update Taylor. Phil Horlock; call. the This results with from Then President include, afternoon

So, get Phil? let's started.

Phil Horlock

Mark. Okay. good earnings for and joining third thank for today everybody fiscal you afternoon quarter for XXXX. our call Well, us thanks Well,

you presentation, Before introduction I the I into on jump to I'd a our today. how brief assess position give like

difficult transportation place. was deliberating start weeks, causing the shutdowns plans over pandemic third delayed close coronavirus sheltering quarter were the closed in concerns employee were and for supplier significantly. one. Bird also and plant orders were fall With for were and schools to its School two boards bus employees in Blue school The over a new

liquidity. Blue however, state, that is with Bird in financial ample me Let strong a position

at COVID-XX changed handling of generation, robust significantly purchases with districts school by being Fourth and these impact and history the team segments, a semester. first third teaching the up quarter have an down of least of in difficult COVID-XX extend results strategy, bus The record by classroom times. not cash clearly year. substantially delivering proven still to of culture growth any a leadership track be a delay decisions winning, many and factors. driven is school the through will surrounding margin We growing in a the new from has uncertainty volume and although online quarter defined And in last from experienced consequent

strong to and that. we expect to fleet structure well-prepared in-classroom However, to we to unit when million. bus replace which for has pandemic a see our consistent higher and continuing demand are the and improvements two quarter, over $XXX measures aging And cash the very to school profitability drive preserve costs pattern austerity the lower over revenue and impact handle schools begin evidenced have we improve third increased at the in years. We're despite as taken past business to by is liquidity teaching, reopen been

Bird of like the proud positive buses recognition Blue and Blue our though to our so deliver give outstanding their these Bird commitment to incredible attitude for continue of unprecedented the we children ensuring dedication Despite challenges, Importantly, to team that better keep I'm and healthy. and during I'd our in stay put pandemic. safe and for company this open morale business employees will to

closer a let's introduction, to state on that slide take at and our look business. with So, move the four of

coronavirus entirely dealing continue we says, that pandemic. company our structure. faced The to of were improve industry challenges, business confident while result challenge with the the the are of state are As during the headline we we as quarter third market our in and we the

material against deal the recovers. regard, our ensuring strides freight. employees, significant with lowered made behind deal quarter, COVID-XX, plant now The that supply daily classroom is by a that with after two plant for our X, as to ourselves concerns over XXX% business basis. for third news we closures, and As April us. a continued our with temporary have first strict overtime, supply to to production fiscal June Supply position they're of after and continuity It's on in important fall, half good this. them we'll just increases quarter. and reopening, shift we positive intake to move restarting XX,XXX. the Consequently, close uncertainty us start of order we'll gains. January production our single industry of had fiscal demand XX,XXX elected we be meet disruptions production. increasing highs XXXX, when and We'll efficiencies transition challenges the to to disruption remain in to a to the seamless this quality capacity for substantially third although also slower is a and and And enabling We the these of stronger significant, from bus XXXX. on early then new in quarter supply to opportunity and through continues significantly XX,XXX any recent took get second monitor to the number the address we expand rework, industry And outlook impacted importantly, result the buses but that have to causing the deployed through do weeks. employee risks With additional volume chain note the In countermeasures a we expedited been were aggressively of eased very XXXX still quarter. continue ended We the productivity protecting daily we has and

Our the costs as three-pronged economics, strategy again margin growing quarter results fuels for this growth two delivered years. for and structural has strong in namely, it past reducing alternative pricing

quarter. discussed that On preservation and plans this through second mainly a the the expenses with I year more XX% the actions fourth we unit finally, that and demand expected when the generation be totaling of production cost all, to detail million facing positioning our cutting up you achieve quarter, improvement sales recovers. And $XX in million, to will to in higher $XX of each tell significant we're are addition further the quarter we and the cost of fiscal third have later. and can of savings efficient XXXX. than for All annualized the side, filled in also And than SG&A more fiscal additional COVID-XX. challenges cash in be initiated cost are half importantly, transformational more cash are balance cover we I you slots Blue have to Bird in structural reductions stronger

were and significantly our Let's companies XX%. were key financial third now Slide from X,XXX That's quarter by as turn last down reporting, units to financial COVID-XX results. review last a from most At X,XXX X our surprisingly year. were unit year. about the Not results sales down and of buses, impacted and decline are

decline a result the a to forced $XXX note, price were two-week of average Similarly, of that bus year. Now that we on positive plant of million take. shutdown below units But were about price of selling last was above XXX sales substantial were same our a of in Adjusted our X% the net and strategy unit margin a below accounted for million last lower period more year $XX.X EBITDA cornerstone than last sales. That at growth it's was $XX,XXX selling is growth the year, by per unit. working. million $XX.X XX%

lower business to quarter. quarter, results. $XXX,XXX and that continues incurring about Importantly, fewer million the compared the from of Adjusted our with last The protect This was cash below quarter for was lower ran third strong $XX.X is copper-related supplier with buses additional change negative disruption by improve adjusted that despite the adverse flow XXX delivering plans selling our and structure $X with evidence explained is quarter costs third capital, year the are $X.X million positive together year. trade and the in second as million profit free higher to only inventory last working working throughout we the primarily quarter EBITDA.

last trade diluted raw quarter $X.XX material growth $XX earnings results decline we Operationally, were the position were improve and significantly in inventory. profits will margin the bolstered down EBITDA, net our significant our are that and and Our flow three from working cash cornerstone adjusted quarter Consistent adjusted our down of in with capital million the run strategy. adjusted adjusted second there year. in fourth income per share as free and respectively the

result we last the by alternative-fuel-powered point. of segment business. we sales remain year's for quarter mix that in and the XX% third am fastest-growing market a market First, I buses, with the in undisputed at one really leader pleased beat record down

to increase pricing in earlier $X,XXX earlier we pricing in saw the also we our holding versus took X% month. this selling took all unit is that additional buses XXXX economics across and to per that recover July average price add Second, key at approximately I contributor we a should year. is last

was liquidity the are the initiative and transformational with bus and and extremely design a in finally, responsible our structural are strong of Overall, And the track. at manufacturing the delivering third at ongoing purchase end entirely material, to quarter, the disruption. quarter position $XXX.X million COVID-XX lower weather pandemic. Third, we third COVID-XX encompassing for on costs, savings with to supply volume are challenging reduce

am very with stronger I operating and our that accomplishments going team's will However, pleased business underlying forward. us make structure importantly improve our

slide the take bus and alternative-fuel-powered at now order adverse backlog impact of in performance strong same our orders, Despite of Let's last our XX% on and bus mix year. X. look alternative-fuel COVID-XX sales a bookings slowdown firm the as closer buses of at our remained

as fiscal as XX% market June. and in year this the presently strong is through is ever at for Our running share segment

area share with let breakdown fuel a measure you in as Now by market strength this type. of our me a provide

with XX% propane share. market are one We in number

We one gasoline in number are share. market XX% with

a number compressed share buses one just than with number are share, in with and XX XX% market we in natural having We sold are gas two electric market fewer competitor. XX%

new Significantly Now us year. buses that's more for Board. first first our purchased time. the XXX fuel customers or for tried XXX the alternative leadership across options on have this alternative-fuel ever time top than of who what year the customers That's I call last ordered from

have the our customer compelling Bird network. new from this alternative our these XXX bringing far powered buses Importantly, dealer fueled year. are customers it's conquest These buses exclusive And a endorsement and to with our loyalty to higher so our we the of new products, brand Bird the family enabled facts. us alternative-fuel competitors, from business great achieve Blue Blue importantly

customer So have to for and have or far we the in electric all newest seeing lineup. buses year, are we addition the firm hand more sold orders than we interest either alternative-fuel more XXX this follow our to for with expect fiscal

be the buses, interest single too hype cars. to Blue from it certainly But vehicles not that it of Well buzz there's electric-powered lot delivered trucks Bird. product lot that's a there's be of haven't at a it Now companies date. case be or around a and

the We are years. so buses doing and for building and we're two past today delivering have electric been

D the year. this are we We are Type the EV industry broadest Type A, market number range with C share in Type and offerings in and one

about excited opportunities electric bus very growth are We our forward. going

and will over too the us or Looking school it vast of with three states years so bus VW purchases. still boost next is the sales ahead help many for us majority funding ahead, funds mitigation of earmarked specific the

from success pleased with we've far We and are buses really propane our electric funds that the the have so been with issued. had

summary, strong our alternative in and proud fuels. position I'm So on very undisputed of leadership

Blue the than of bus runway best we school they're today, purchased have exclusive we school partners, of for ahead fuel having alternative products and best continued area. this the districts We growth plenty powered with XX% And have less to an in Bird. have

some to let's So the pandemic. launched slide X spend conservation specifically turn we COVID-XX profit gears initiatives time cash that the improvement change and to looking now at and address and

key The to savings implementing savings. organizational benefits box in XX% left in reduction SG&A targeting an we and comprise the elements; and plan million costs, cost a restructuring. compensation reduction As generate shows, two annualized are of $XX approximately

We place cost in month. substantially the wave and annualized end by this process expect have of this have this begun savings already to of

related in production annual production of in comprises a was to single June. the element a which second costs implemented The savings movement with shift,

both As million expected annually profitability forward. by increase mentioned, to are $XX going initiatives

conserved to and end Turning cash by fiscal year. the be this will right-hand $XX realized million Actions box. the of totaled

year's First, we plans. below have and to level plan shifted spending below capital well our original last our

great a fleet treasury for number lower as early tax large that pension deferrals compensation for have would by Second, months. team. receivable and we payments in been securing and to a payment have a including implemented sales have payments. income covered effort several otherwise we our And benefit-related and payroll third, reductions, of a That's successful tax

on adjusted will these As the we impact fourth austerity These contributor quarter. see significant cash outlook strong you COVID-XX continue today partially progress. the profitability flow cash will initiatives to cash address ongoing to later, to are XXXX a are you for and initiatives the of our on update free fiscal and

then third you, and who'll through So fiscal be up quarter I'll year Jeff. the financial our more cover I'm CFO, presentation. turn the XXXX formal it to wrap you results now in Over outlook going to full over detail, our Jeff to back to Taylor, take later

Jeff Taylor

to everyone Bird's to be third quarter and call Phil, details. It's close July share overview today. the XXXX, was an good of Blue closed the XXXX. prior able Thanks, year pleasure afternoon our my on We X, quarter third on to financial XXXX June XX, whereas

us, file performance to important reconciliations to the end that, details and appendix and will pandemic. Mark. other The and by global that for by in today's response which please was disruptions the presentation precaution company between With for two April, GAAP for includes current disclosures. slide and our the quarterly has results I details the on day expect the shutdown as operations faced to challenging today, key the review measures a the mentioned to The We attached first due Thursday, unlike a as the mentioned supplier was quarter with environment weeks well protect the nine the any of refer in past, to XX-Q additional our non-GAAP other manufacturing quarter. It as disclaimers to already important employees. in operating

employees throughout protect balance protect the disruptions our precautions to by Bird the health and safety control we while cost actions and shortages supply all responded persisted Nevertheless, swiftly Additionally, sheet. of taking and liquidity to concurrently quarter. taking Blue

mentioned, taking reopening. in actions, Phil control the As delays to we additional cost pandemic as resulting continues, are schools

impacts our which cost million almost of Bus of unplanned unit, sanitize and was disruption notably higher facilities, implemented April, protective the the was to impact to entirely shutdown mix to quarter plant by to was our million, due million, disruptions, at costs mix of million program primary increase $X.X of to million, pleased supplier vehicles; freight improvement alternative-fuel revenue margin the than increase as XX% unit the cost XXXX we however, representing shortages of three XXX units, or the quarter. Consolidated including on expedite sale. achieve. related by lower beginning revenue broadly We're caused represented offset electric $XX,XXX revenue costs a result year million, $XXX.X of and to taken a in was the approximately inflation; per revenue and been was driven Parts prior the and two-week margin net the we've X,XXX quarter. $XXX.X items, in This the X,XXX shut $XXX.X was Gross $XXX.X maintenance of other prior and successful environment. units components, of current higher equipment by net one, Third our materials order volume. strong were year. compared buses, two, the prior ASPs lower down quarter the pricing actions year, cost in Bus as COVID-XX. improve able gross The volume each basis XX%, $X,XXX was due from July a COVID-XX. of with driven clean the to revenue in caused down strong of than lower year factors: the decrease was approximately by three, a for per that to $X personal for increased facilities to down points operating the prior COVID-related at decline employees a

SG&A, year-over-year earlier year. million, was implemented. administrative, engineering XX% result down approximately points actions of is lower $XX.X or adjusting efficiency which and we've last a cost the have at for of above normal year by and the volumes, $X.X and would general improvements XXX as As cost, when million been that for this gross of Selling, margin, implemented productivity COVID comparison, basis or expenses indicative a quarter

reduction quarter quarter. lower million $X.X year $XX consistent adjusted million income $XX.X of was Adjusted volume on in which $X.XX are XXXX previously The million of We $X.X than with shares of basis margin diluted the feel year. of down well year. weather Diluted the of quarter last adjusted $XX.X an prior the XXX $X.XX basis the impact share million EPS average year. On was the worse X.X%, than GAAP third business $XX.X deterioration of net discussed. Third in than year was virus we at will environment any profit. decrease $XXX.X Liquidity third million million $XX.X I of prior decline than versus $XX.X compared Adjusted year, at EPS last prior positioned by was a million and disruption. the gross terms further the to COVID down liquidity $X.XX in current more cover were Weighted year. in slide. $X.X EBITDA The was the manage the prior per and as income net the shares to in versus next explained was the Corona end worse like of million versus is prior million diluted points. was EBITDA

of to levels. taken have We liquidity number augment a our measures

advantage As revolving discussed cut CARES pension that quarter payroll and X and roughly to outflows. of of capital on items. Act credit other million. discretionary to by the facility anticipated defer $XXX travel commitments several spending allow relief call, we tax took our the $XXX.X to and mechanisms us our also increase from back May X/X cut on amended We've on second million spending contribution will We

year-over-year Slide XX which is adjusted the to Moving basis. EBITDA quarter bridge on third on a

biggest some portion. million. of economics favorable is As by $X.X were $X.X million being OpEx impacts were and and $X.X favorable the are up other OpEx negative see smaller driver you Pricing transformation million well. the the can and big up impact were with Efficiencies and $XX volume initiatives as there million

fourth manufacturing in benefit million and quarter increased the was the this supplier to protect As higher capture June single of the in overtime, and X-week expect $X.X absenteeism last drives The we to which includes COVID cost negative mentioned further to shift change which rates we impact in transitioned employees. of disruptions, shutdown, quarter. operations a increased quarter, our our

Let's current balance cash Fiscal slide focused adjusted cash flows million XX, we year. result talk $XX.X the now stocks as levels maintaining highly $X.X slide driven In quarter quarter. $XX.X EBITDA the and $XX.X our by in trade a we primarily quarter was cash strong working we adjusted bridge XXXX were lower about third were of cash year the higher The on in to disruptions period negative sheet. free environment, are capital same move flow last for higher of; details free to flow. cash compared supplier generation safety was This the million. This was use million by the of million year-over-year, increase as a to manage experiencing. free inventory

our in to implemented We interest inventory were specific refund $X almost down capital fourth increase prior the majority the a improve million. $X.X million million, in was $X.X as initiatives quarter the $X.X year-end to our from of were working expect taxes recover prior and million capital. spending quarter we year trade quarter, of Cash from costs the

accrued for quarter. million change $X.X the Finally third in net expenses the negative was a other

at was the quarter. revolver $XXX the Net debt compared cash debt by of XX, of was of quarter Debt the $XX last higher million at of end explained $XX.X $XX.X year. Slide to level end than million. is million to more end our than The million Moving $XX million, at up million of by last the year. quarter the lower balance $XX.X the revolver balance third the million was $XX.X

to result in as lower financial Our To leverage it are cost Actions of was below our increased X.XX:X however, and quarter threshold, business are and manufacturing EBITDA. we be to transitioning operation in quarter our position, proving facility summarize expanding single-shift however, credit still acted ratio is and conditions, quickly a X.X:X our operating net impactful. for a the we the which debt like decisively revolving improve our liquidity. to the unprecedented third lower

With focused We backlog the call pricing; liquidity three, Horlock costs; of business elements: the this number is that, The for alternative key remain remainder set manage to leadership. industry describe will three lowering on the are foreseeable strategic fuels I'll ample turn well two, and the back positioned in one, the improving Phil with fiscal we executing to who year future. outlook.

Phil Horlock

Jeff. Thanks

today So let's now Bird. Blue we focused that are priorities summarize the on four at business

XX. to Turning slide

the First safety is employees. of and well-being our

to date COVID-XX taken techniques We'll and that has plant well office significant both our to new team further say continue are business We professionals. to our explore from healthy buildings. our protocol assist and protect ensuring safe loyal at an in have to served measures our key continuity Needless and of our safety and employee have and and rigid incredibly health and established technologies workforce to employees a have is we in us the dedicated forefront. to a

price in the capability recover to take, pricing and introduction in richer new and in vehicle a economics pure pricing, we quarter, which products annual the bus a of our higher and X% with are is includes Second, to mix last increase features option confident annually. average selling price

$XX Third, focus by cost three of relentless we our costs will than delivered which in years transformational million on is down since more ago. year started initiatives, our structural the savings this driving have through end

As fuel supplementing and reductions with of we you and school and are higher alternative the compared specifically in organizational in of earlier, from fourth, increased benefits where restructuring. compensation margins powered conventional buses continued mix targeted we in growth fuels. with our And loyalty program benefit SG&A owner this area the saw

all to ahead. structure earlier, at this of Our really exciting to indicate types these impact target look unprecedented EBITDA XX% with the we today. COVID-XX for of leadership fundamental Pursuing the in while in the our electric achieve the to and and fuel I growth foundation interest setting buses margin dealing least at our our mentioned Bird. rapidly forward of is opportunities are strategy Blue the near-term target And continued is us achieving is across business a as position strong we years for growing working these opportunity in

$XXX to to be million million the now we many for $XXX full I'll withdraw the breakeven. guidance where outlook. of uncertain because range quarter now down slide call production XX million fourth and last outlook million. $XXX earlier done, with slots the to with forecasted and a substantial quarter capital as Let's EBITDA the and had expected $XX covered revenue With financial of $XX working The turn the generation for to projected the and fourth quarter in the the economic outlook net the $XX full three more fourth full on, year. guidance fourth full is $XXX the projected fourth financial be million to on result we At the companies quarter quarter a $XX visibility million flow quarter the we Adjusted $XX a the million earnings full and cover above negative provide be initiatives quarter. slide. fourth year metrics as full, between improvement to is good outlook sales trade million that outlook Fourth $XX is a full be XX% typically which to have predicted between year cash public this million sales third between million. outlook however, on quarter is cash than are With for year million runs between for between year shown projected unit $XX inventory fourth adjusted as quarter. and outlook. to free I the And The year

slide to for turn now let's So the wrap-up. XX

in to economic Bird market says, remains uncertain. and are ability but isn't to outlook our As unique headline experiencing as our This weather headline that this confident Blue we're the in we over storm all giving fundamentals the continue past Bird's few message months. many strong. the structure Blue be are business companies ability, same because and to business improvements But our seen we've confident we

latter and strategy exclusive fuel reducing differentiated margin mix higher costs not single forward. the buses. its increased growth fuel is expensive will market and alternative shift is alternative class-leading us accomplished powered Bird margin without be a business successfully a disruptors of in future are working. of in our buses and third restructuring demand and products This The making pricing, meet will of range Blue great time example a moved We that three-pronged of Our competitive increasing deliver could namely productivity to more operation to late higher difficult and going quality needs. response that quarter and

this is new industry until in-classroom we of so, school down increased resumption is actual remains an the year and see customer to very demand high. While for teaching, bus likely buses remain

years to the availability As than facility Canadian reopening XX% want fleet age school limiting U.S. replace school buses the older. more XX that represents and being with customers funding XXX,XXX and are of bus of are This factors.

the mentioned call, the billion education worth versus K-XX for the annual for I cost into of expense represents billion As total on context $X At about it's schools. putting earnings and school public a prior funding bus education of annual a outlay X.X% capital year, bus capital school States. of United dual in budget purchases $XXX typically total the than less of the for size

with portion source. of when property very I think we availability major the It's taxes small funding education budget. new buses this the being it's of for point to recognize important think a

elements I'll presentation. and quarter. across improvements our XX% now report increase continue end, summary, margin each of the grow So profitability haven't progress it in will least thereby sight to despite our session. we challenges, our moderator to pass EBITDA underlying formal this our drive term. our to mission, in margins on concludes our lost of near to improving To and begin back we'll the all current industry to the at business, Q&A That

Operator

proceed Thank your we from with gentlemen, Please at Our a be first session of question-and-answer will Eric Stine Craig-Hallum. conducting with question comes the you. question. line and Ladies this [Operator Instructions] time

Eric Stine

everyone. Hi,

Phil Horlock

Hi, Eric.

Eric Stine

feedback And it or curious, have a fiscal in and Any on volumes better you'll goes as timing? would when you time on again some Or place based second your noticed as I XXXX. quarter and customers? see to just I closer that thoughts is your you've looks production target if dealer be presentation, you're start or the that that planning the based so now mean some maybe of back for got or like pick in great. recovered that that a on to you're that Hey, increase then gets getting is of volumes by up is from that indication place in network it's in

Phil Horlock

in really of volume period, uncertainty now we being is handle production the with And we're capacity I will a teaching that's – this surge COVID-XX couple here. with closed. because through cases can as reopen. as question, slow, to pandemic the any soon want buses Phil actions school Eric, happens a and always know Yes, Christmas open, this our being We the that's mean again. fact to going shutdown of we they're there's second environment, out following plan some no and ready with want to year. despite Yes buses. we And in that with going to obviously our October so the come take shutdown want schools there's online and half increase plan surge in to that want start going schools because get obviously, to they're many this – when be for When to to schools really

January, just handle to that the we a We February the lowest recognizing plan ready to place that want time can always any first onwards. is demand current volume. surges So be capacity. put the our traditionally with quarter period occur in from We meet

Eric Stine

Understood. Understood.

got paint you've that that the Early just issues. shop. I up. Maybe to you Okay. some on had turning ramped know

way the is the update outside And on things margin this that are was impact you the cook it strength quantify, shop. on a well. think maybe Maybe had that to there in I that perhaps were of quarter? you paint and what that in-house type going an rail outsourcing,

Phil Horlock

paint Well, been changes this shop, mean, all first year. yes. way I all we've the through making the of subtle

a shop quality been top old running comment primer For new paint been running told the paint the – this and the before, put We've now. that because coat the we've in versus then think example, were I'll the issue one our job. overcome give you put actually bus it seeing we shop robotic that the we've to paints the was on you had we compatibility with paint new of I

wet-on-wet shop weeks, system. are the paint In and bus – every fact this now six just top last single the through painting new this coat. It's we both completely primer called

And, we go definite like required into of between two and coat. straight we which we're the put gains, certainly, still is coats, We the -- top we're touched that, So rework what see. previously. doing on primer never to it's wanted less productivity that because a seeing bus

that I through our as effect think get October fiscal full you're into coming see year. really going in with we year new to of the

do So shutdown. year. that a things into next And we benefit forward us through to we few as want the go October will

to As it's far little is. that as a this impact probably too quantify recent year, what

we dollars seeing next certainly the I thousand that, frankly. fiscal but big benefit be see as few into think will benefits a there's we'll hundred get year, from of we're

Eric Stine

Got it.

Okay.

Phil Horlock

as So through next about that, start talk results. make for about as go plans, you'll to effort sort an year-over-year year, we -- about we of, we'll our talk talk plans seeing we'll, our

Eric Stine

Okay.

Sounds for me. good. one Maybe last

what as you that number increase cetera, there. an price view a the -- but, et and abnormally and, your mean, ASP And level? alternative-fuels based it the was commentary, of high on I missed sustainable backlog Or or that on in Just orders, I in know terms see maybe in level I in electric? specifically, a that you electric is quarter results this

Phil Horlock

tell be coming us quarter. you, fourth really our I to And quarter gone increased tell year well we our I'll mean, biggest fact, for in got year. our seeing will this electric. are every for you, orders electric -- -- it's interest I biggest increased quarter for

good feel really where going. that's about we So

else on big or it's anywhere California, you sold resonating got products, our that sell, with your VW grants here the Valley are There California supported uptick we I trucks capability grants on available even electric Energy Commission recently anything, are real think like available, a vehicles through Fort to seeing on handle And, in in on just the customers. fact, basis. a we're increased our in we to nice they capacity in grants. more that. plant by tend daily But be just

So, And thing. going yes, isn't well. that one-off a it's

it's as be little taken guys a think more with not the way anymore. but now us. good I a look we sales. I'll for I've I been I'm my pushing real opportunity to surprised keep for growth off, And surprised honest this And by you.

good going. about feel it's where we So

Eric Stine

great. That’s right. All Thanks.

Phil Horlock

we before was did little through four. Okay. XX,XXX just yet slide slide or XX,XXX to Obviously, an meant giving because aren't buses. said correct, going when get our to XXXX, I says, The misstatement slide XXXX I industry is out, thing I one is the fiscal make I what volume point fiscal for on outlook guidance outlook I Hey, was to I question, next the but one XXXX. want which

So want correct that to I just statement made I there. Thanks.

Operator

line question. Capital Irwin Please Partners. your question the next with comes with from ROTH Craig proceed Our of

Craig Irwin

questions. and for thanks my taking Good evening

XXX-plus are for the across us making color the that electric for bit little that the question exclusively is country? in on all So, is there? ends Can maybe you the of year buses. give this And Or fiscal deliveries in September? first California? a Is that you breakdown shipment slide,

Phil Horlock

XX% Alabama Craig, know I'd the in took but been just is at of this selling buses. biggest of to us. last Washington, things are we've a the California, we've that we in about week, for I couple sold market, York. California say Obviously, market built delivery Georgia, of New

So up it's a of And, here. for which well we electric states money the there. somewhat, us very use grant all HVIP for There's can I'd coming VW over really buses. say, what's the picking well as place. interest Texas, lot is money too. that seeing called We're the

There's of is no at districts, state of want it, and question. ton around There's to looking parents really excitement the every at school it. So be with forefront it. we a

it's across now, So it's nation growing the growing which to sort was just of it's -- not year, California now. it last

Craig Irwin

of right? year? And be upcoming been your then there? greater a-quarter how dispersed this in Okay. mitigation competitive funds, a that has you amount awards? the hearing What dispersed And about expect year. funds, in mentioned Would the I positioning the to fiscal do about for the feel guess are disbursements those probable VW Dieselgate So you around last you you

Phil Horlock

Okay.

we're going there I'm a some opens to that with my really here you're when teaching. think, sell when to again. get doing about, say Obviously to something think in grant It's going take wondering school I a probably closed, quickly. I is go access So, it and might a very opportunity to buses be to to board want money. are what grants easy available of they can lot find that districts school Because hey, online look this year. at similar I

it year. So expect something to similar we this be to

products in we there us that are terms diesel why now. we have In of clean the we're all diesel think obviously positioned well the

a great have with in partner We there Cummins.

our should natural So It's money electric, because I all think cheating on it's nitrogen X/XX say emissions. That of not a obviously this When When and our that. fuller is compressed was engine right was not level propane the at why look standard. EPA But playing of made and gas NOx comes -- you were just -- people you'd became fined came the of simply, to part our particular, though output product in remember true engines oxide was money about. are propane VW it available. -- it was just of I propane, when field.

one So you why our such we about clean on you we out -- and there are the and have road TCO start are only book product. cleanest message clean eventually is market available propane in with we with the money -- why a to to what affordable think propane engines the the for

states It Lots are us. great to different doing again. think comes for electric of ways. that I it's So

conventional are of the normalizing sort make it it Some same product. a as to

look this bus how positioned. or electric three electric on at significant than major obviously the look at Of amount an one electric volume cost today assigned when given business, more delivering But are who's so the there's Some to propane gasoline electric. with the the because much. But in you road I it we're sheer far for investments we're just think only entire manufacturers to I fuel to buses. CNG

So we good about that. feel

think we position we where So are working electric I and we're it. think -- in good keep is our really following, leading propane, shape I in on CNG

Craig Irwin

in as school the Okay. if EBITDA from demand that, of benefit are quarter of you many see in confirm in to was should don't the opportunities year. the million And be move that fourth flexible next we do past fiscal course And - adjustments I go think of and Can savings us so savings in X/X a to the these quarter? you cushion SG&A. 'XX, that do for the districts and over fiscal fiscal closed into indicated there that is increase just see shift right? out achieved pushed other single X/X this cost that as the remaining $XX full the from then what you demand have that is just you

Phil Horlock

Okay.

first section Let me then. take that first your first part, firstly

-- one shop June shift shop, we sorry paint put we was the So it single in. paint implemented the

X.X fourth you're the we've on quarter -- just this to month. months the that think the over the well yes quarter So get I've of But end a effect going only in it. been that substantially said I will said implemented that I into full be at SG&A call

of certainly we a effect that. So won't get full quarter

in You're that. And was annualized effect get just put of going to one million amount $XX I month really there. now the an

order quarter your our have year we and in one and about the Could quarter, of think benefit. the this you of it about that the first last SG&A impact think essentially will single-shift just... we be over modeling year you -- the So have single-shift I year, this $XX next million less

Jeff Taylor

for savings really the was the part our do in second Craig, and would outlook how progress. with that's that yes future balance of that's opportunity your work next what's say And I additional -- year? for question really we there a

quarter we're need position we to recover really taking evaluate remember, And actions may recovers. that when If to continue this take. company rightfully we're deteriorate forward. that to the to opportunity market obviously, further want we for the that significant But environment the the today. continues in balance So the going monitor environment then actions we'll to to for we'll that

deeply our ability too so, back when the And to bounces we really if we'll sacrifice market then some cut of back. bounce

options And forward. so as evaluate we're going that account we taking those into

Craig Irwin

maybe I Are of on right next school electric question if continue over the last well see we're to over comment likely then rates And comment growth rates -- growth to Great. quarters? seeing And Can you expect you the XXX% similar quarters? may. growth now? handful few do you bus next rate's guys the over that

Phil Horlock

school probably it last last not year year, hard think It's is XXX% see grant-focused you or whether this see and -- just versus mean so district look that now, it's continue. growth into new that -- about that really to try increase right I a to it's different all can desired love certainly electric or year I to buses at right continue grant-driven say I little Well I'd it's to just alter versus because it. that now just my when

because is fourth said having that orders a above fourth third your quarter. fourth we that, building and are the However right the quarter the quite on which second we bit the that quarter over in booking on were spot is point the quarter had in quarter

are to Double we not think going be on to this, growth. double. So I have We're going tell see I'm grow. it's it's number bit don't I that. will seeing be going grow I great. just a to to happens. substantially. optimistic. will definitely don't might But But that prepared a you But And put double little what

Jeff Taylor

market pandemic market is to expect growth grows. the the get and once strong that see impact rates will that term would we overall think where and off I And we us. headwind the short really Right. in return cleared But of that

Phil Horlock

our you It's when on make We frankly. something CNG about they're is really talk quite last it we daily for to buses. too it's about. on buzz talked filling you How there filling own I about to ready expect benefit? What's Hence familiar a the it. what we I increased Craig, electric this we're is capability. What excited school diesel. interesting going they Propane capacity to now market is quarter strong want to still talk usually gasoline, say? districts, thing say tons infrastructure, cost? What's they when go are much talk will does So is just that it around with very would I because there? mainstream, TCO of is not one want incredibly for that our to sure hit But can definitely perfect station, expensive, so --

So any growth be to opportunities. we're -- when planning capitalize to there

Craig Irwin

a right. just And clarification, Great.

we we electric do activity headwinds on the regular school continue of the positive understand rest buses business? confirm that to solid is market. the any growth the bus So in electric you COVID the outstripping despite despite growth school in greatly of Can buses, see really

Phil Horlock

say from to I Well right fairly too yes, Yes. I'd mean a yes. now. amount small recognize volume we're have we so, of

XXX if with year, were easy we'd in electric two done gasoline what XX% you a those look XXXX-plus we example, over good this to mean, at buses. now And grow. been propane growth product versus we've I selling for years. XX%, lines some year years, of at So it's and the we're have looking

So outpace some but of rest. the going you're baseline it's to is from certainly Electric from growth-wise the right. absolutely it's percentage

Craig Irwin

Excellent. again, for environment. decent difficult Thanks this in results taking for my questions and congratulations

Phil Horlock

you. Thank that. Appreciate Craig. Thanks

Operator

There no over closing remarks. questions. for are back to I'd further hand to it Mr. like Horlock

Phil Horlock

updating and quarter. Doug Thanks on all Blue and appreciate to do next to again progress I joining want look thank your on interest today in our us. we for We everyone Bird the call you

just sort to repetitive, just like I you I'd Blue to across a of but with It's want off, for sign I everybody. this get today. final somewhat Bird from leave Before message

very well to unprecedented are this handle we First, pandemic. positioned

is improving. in and long means actions the going through is to to our And get to thrive taking you necessary plan restructuring margin continue the this to out certainly business that underlying we're the talk base We growing have about which ample liquidity. We're revenue improving period take whatever run. grow costs saw when about third talking in I'm that, the our I again and quarter structure and

of hesitate a Head Benfield. Relations; So Investor please if and any Mark you don't to follow-up call our to Profitability questions, give have

great evening. So thanks at a have us Bird again of Blue and from all

Operator

gentlemen and you your for teleconference. Thank does conclude participation. this today's Ladies

disconnect have wonderful at You day. this lines and time your a may

Blue Bird (BLBD) 12 Aug 202020 Q3 Earnings call transcript