Earnings call transcript Q2 2023

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Operator

Hello, everyone and a warm welcome to the Blue Bird Corporation Fiscal 2023 Second Quarter Earnings Call. My name is Emily and I'll be coordinating your call today. [Operator Instructions]

I will now turn the call over to our host, Mark Benfield, Head of Investor Relations at Blue Bird Corporation. Please go ahead.

Mark Benfield

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

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

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

Matt? get Let's started.

Matthew Stevenson

afternoon you, quarter the Razvan results our the and business. to company quarter and Thank are update begins to extremely you most and good the probably everyone. our was on potential Mark of excited years pivotal two which for in for real I highlight

but ahead going testament we're the we financials forecasting again hard quarter been that we've I'm to some teammates our as XXX-degree results a been turn time. as delivered promised, to only day. have delivered for say our show not of pleased that every schedule in a once This work to doing

the be at and the of is the On units. robust industry for school some continues you key takeaways for side to see XXXX can X quarter. Overall, Blue nearly demand buses backlog Bird

in through legacy buses backlog. our of the now are most We priced

This significant in prior price units priced improvements our financials. as drove to the these at inflection a As define operational reminder, October XXXX. of with we levels along legacy those

about starting in center, our an into our quarter, call. the in talk We upgrading this in operations throughout we teammates the wage while facilities year this business which million opening all-new and putting also for EV to detail continuing processes our during reinvested improve frontline increases will $X over back even

and Clean that and phase of the our the business in hardcore seen The business, Phase workforce we best us seeing announced the its fantastic of School improvements are direction EVs quarter. in in The has playing EPA's just ever efforts process a company and recently the is second of closed this lean Bus ahead performing Program first staggering forget a of is the turnaround tenacity let X. the its program And has the of well led not to success Through best performance strong number backlog. leadership, some schedule. for

the shows a Now at second massive some year let's XXXX fiscal The take performance a quarter of look quarter. year a two ago. from highlights financial improvement from the for

X,XXX were year million over This increase year. which a Our fiscal over the XXX-unit from Bird quarter was for from drove revenue Blue $XX up record time units sold second same XXXX. last period

was posted EBITDA million and better time for than this $XX year Adjusted quarter. $XX million the last we

fantastic up second to Blue adjusted free million quarter of a year XXXX the for cash quarter fiscal second As quarter $X million a $XX was result compared overall the flow for Bird.

see slide right-hand the some you side of business. ongoing can the the for the On highlights of

be mentioned, I continues strong. demand As to

the backlog from roughly in units school $XXX to last in EPA's firm worth is Included buses the for revenue. million XXXX electric at incredibly Program. Bus impact backlog a over quarter XXX that Clean of uptick School of due Our robust million $XXX orders is large

South Broward proud County the some in In the Florida EV Boston. fact of large we deployments are incredibly city including of of and recent

XXXX. As since raised we discussed considerably have have previous in pricing quarters of we July

up for XX% year-over-year. price is selling average Our the quarter

year-over-year. demonstrating were space. our Part growth the of that up XX% quarter our XXX% for sales EV continued was in Our alternative the power leadership

so XX% up Now With our average The on sales. effect parts sales aftermarket increasing us the more -- our road increase thrilled new which so EV year-over-year. spot for opened coming capacity to and material up recently having age Program, continues about. on EPA's is to from high center be we a a the school demand we EV Clean buildup another buses School of our we chassis EV Bus are bright had

are grant We the is through announced has demand program. increasing for X ready time EPA $XXX the as of this a Phase another which recently million the program,

our numerous the the in lowest to areas. to also throughput, of are you and the in Slide number parts nearly improve best our have we years to As adjusting production as due delivering on of can performance Set-ups the revising and included two in flow problematic are plant. constraints. material bus, several missing efficiency per down contributed in see X, are best critical efforts some hours operational years. significantly to re-sourcing Those suppliers has warehousing two strategy, manufacturing This up

EV bookings, that financial organization. parts only is Not In of we the adjusted two, and for quarter now turn, a historic for this track, this some the generated sales revenue, exceeding all-time number benchmarks company back including on EBITDA. but records proves are

is care our and X, delight a reminder deliver. Slide of key around pillars

on within include our of those, people, last scaling the our progress call. those pillars lean and market areas transformation, I to EV. total want addressable focus since of briefly expanding Our our touch each

large-scale a increase Regarding hourly our took for teammates. our teammates, wage in effect January

paid to most our in year, this vacation XX of increased also unheard We environments. manufacturing days

We facilities summer chillers, putting facility air also enhance the our working continued for including massive to into our to months. update environment, the

control in the from still teammates, quality Through support. are and throughput, phase transformation, a organizational seeing improvements of the span resources by on We chain we designed in supply more while of normal. final structure self-manufacturing even are focus our new lean is essential continued our to offering provide the rolling also narrowing and environment out for frontline far

lot this, core we but our great to EV The A our it's we production, this of center. future. our commercial progress went bus to highlighting all-new EV stay into focused focus call ramping really while to on chassis school continues on work up want on and

where can campus. investment minimal XX, XX,XXX-square-foot new our photos it this system components and batteries. It's five On the the install along next the bring we of new coating a EV some Previously, EV facility up the final a see help lot This and actually relatively by the meet management you EV was over thermal old our commissioning batteries, of on an for forecasted Through team, of the Blue with hard we us demand turned into Slide work facility on of center. center. years. state modern Bird the will the EV charge

per with to demand a it in will our the principles it. earnings this whenever we mentioned warrants lean. we day by of entire As previous Blue allow Bird the production is where XX production take the example of production rooted middle to with and of footprint, day, goal the of in per foundational units are this Plus, XX calls, ultimate system headed great EV year, us from have four units

Slide bus. five average of the were This for XX the an program. with billion, cleaner-emission years clean $XXX,XXX program buses. phase bus $X is school Approximately and a again, program, this reminder per rebate electric in funded of over of school buses allocates first EPA's clean rebate X,XXX

well forms to buses until been of have the as as ordered. payment the EPA eligible submit end had that demonstrating infrastructure to Customers request April, new

and already orders their deadline, our to due in to April many charging final and when of for an is all for orders, it said we program for through done. have first but over have delays the Some garner extension quotes on infrastructure, seen this asked fully customers well beyond XX expect come the phase the XXX

recently impacts long-term revenue see the this The their EPA of The be program in program, over well of $X will Phase details. Slide and you on launched billion X our XX, organization. to can

program a an be it anticipated in awarded $XXX As million this late grant we X, expected with competitive Phase in in announced round. April, is to

late through with be winners will of end expect taken to announced can quarter those award Applications orders the we of from be XXXX. in calendar now August. And in the XXXX, first grant

to in expect evaluation awards. applications districts XX will closely the We both priority in be externally, and to in resources only larger deployments, program have will work and fund customers and the grant-writing process, this our we grant end focus have and process. criteria. dealers them The will preference supporting EPA established given a this scoring The XX with of substantial to be internally

buses, these. of second We fund conservatively we to get XXX this expect electric estimate XXX and that phase least we at will

remain and to excited forward look School about continue the on customers deploy Bus more We dealers to Program, and buses. our Clean working, X with industry-leading electric Phase to

fiscal to to well like Razvan, it our results through financial XXXX, updated walk detail guidance. I as in would quarter XXXX, year fiscal year more as two over our to now hand

Razvan Radulescu

is end X, Blue April whereas April good And XXXX. my based financial XXXX date It's year to close on quarter second the a Thanks, close prior from a The you afternoon. X, share was results. of quarter date Matt. with Bird's fiscal based on XXXX the of highlights pleasure

We today market will XX, the file XX-Q closes. the after May

Our The as contains. as GAAP of material disclaimers. on reconciliations to financial appendix to disclosures XX-Q differences encourage and and and it the measures non-GAAP business includes you attached regarding call presentation performance. that read additional We important today's our important the includes this well disclosures and mentioned XX-Q between

bottom both summary reduced number quarter units and results. line It XXXX. an line of an increased the supply and Blue somewhat and was disruptions is XX a top Bird chain our quarter higher-margin operating our Slide fiscal with results second for driving excellent for with year-to-date of

exceeded results we the and and fact, conservative earlier. revenues quarterly the provided in guidance the have last QX We delivered two quarters our of earnings EBITDA adjusted call, in expected

X,XXX or hold of higher prior million than than higher and was job actions this in improved higher pricing that unit units The team was $XX fantastic XX% or volume, net sales, year quarter. of generated has by parts done mix higher prior driven year. which and $XXX buses XXX million Consolidated took units, a significantly electric sales XX% revenue

combined position outstanding of great free was than $XX $XXX was and our year the by management; profitability adjusted quarter. at million end over capital driven working million the $X flow prior quarter, this second and at This the positive with The strong liquidity which supports million. increased performance cash higher was

was buses, our for part increased now costs. sales by labor million given profitable $XX increased EBITDA Adjusted high of and volume offset the margins, quarter

million Given portion solid $XXX $XX buses, our EBITDA $XX in the transitional year-to-date low-margin EVs XXXX large of million. still million with of nature thereof which revenues sold of fiscal is flow free QX old-backlog and our XXX adjusted units cash a included results, at X,XXX performance of excellent still

slide Moving XX. on to

built backlog net million, strong with Matt, at $XXX higher was levels extremely revenues As mentioned price prior up at before of majority QX quarter two compared by segments. business the revenue to million the second bus year. down $XXX our units. fiscal $XX into million versus in XXXX Breaking The the to continues of units units our end at these much XXXX vast nearly be by the

Our per second mix revenue buses. average to over EV which result of XX largely increase. in sales electric as year, the months XXX was than or a XX or of from quarter units XXX% $XX,XXX actions unit XX%, a the past bus pricing at well increased level more were a of last taken $XXX,XXX higher the as

$XX $X backlog for the in Parts to in expect part million, chain to the XX% million. fiscal year. in was performance the or improved And the aftermarket. growth large parts revenue be to XX a future extraordinary quarters due compared we low XXXX quarter million was reduction of due This supply representing prior a to

up quarter adjusted XX.X $XX over points. million catching to up was million net with prior versus our XX In was points $XX costs $X.XX, X% and with of year. our months. was quarter, fiscal second than $XX share income prior compared was by million higher $X.XX for percentage the up operational of last performance last Adjusted and the margin Adjusted XXXX approximately year EBITDA than higher $X positive diluted due the XX% million per inflationary the or earnings improved or or last XX.X pricing year. percentage Gross year approximately positive

financial our a In summary, for future long-term is sets are towards our growth. evidence new profitable performance And in quarter goal performance operating of demonstrated that results working. it and our base turnaround this our

XX. Moving on slide to

ended on our reduced significantly and also with year-over-year in the cash sheet. developments the positive $XX million balance have million. $XX We quarter We roughly by debt

capital balance driven Our $XXX cash above and free improved quarter. on a improvement The cash in zero a in improvements liquidity working flow margins million operating were were fiscal of is and only the our primarily at adjusted small this end XXXX by operations by flow revolver. strong and supported QX trade with in

the provides November COVID-XX and with and as reminder, revolving provide modifications of flexibility a credit the and XXXX, maturity supply business the for As XXXX. of sixth end our from the covenants the new pricing grid. credit covenants to date to revised and at both the through sixth amendment Bird amendment recover we The global into our continues entered the The loan stability extended facility chain amended to facility Blue December the XX, maturity associated our disruptions. pandemic extending

shows QX at total left and XXXX fiscal the Slide XXXX of of improvements split results, million in $X.X between million; of $XX.X The the $XX.X segment was negative increases walk QX net million. volume operational XX bus fiscal cost from on $XX.X material EBITDA profit pricing of to the million. adjusted impact gross effects starting and the

and of gross efficiency favorable in profit $X.X was freight lower margins. manufacturing development higher year-over-year driven and The parts operational improved segment costs. improvements improvements the The by million, sales consist in

to in increases net compared were Micro total strong our costs, adjusted our more of a results personnel cash year of of venture above-mentioned offset for sum or our negative tight fiscal a fixed very mainly reported by million The were the million when Bird Additionally joint $XX effect. QX ago of $X related improvements conservation drives X%. XXXX EBITDA QX result in than all developments measures

slide XX. to On

the reiterate level our happy from of will the most ahead, we in the now past improvement from pricing fiscal units XXXX of backlog. with to of XXXX orders. half fixed second are backlog that we benefit on pricing/mix price old current Looking are And we to based age and fiscal continue largely

fiscal models XXXX. XXXX for D going schedule of example into full production rest with is Our already some the virtually now for the fiscal Type

and flow cost inflationary will However, exist XXXX. pressures fiscal supply upcoming still all the price to of the not and bottom-line increases in labor chain

increases. per our bus all to a inflationary expected built for net $X,XXX cost Given raw and large fiscal model increase already backlog, we October for announced Xst, XXXX, types materials bus of year after cover price XXXX

up spot the the development spot shot On slide and years. prices for two XX, in the last over war you see market Ukraine reduction back prices can steel started. March steel April the after XXXX, initial After early in

through we August. that QX. bubble fiscal December XXXX trend benefited by itself reversed continued in XXXX However, The favorable from this and

of of increase remainder However all the a the to steel previous way started as the realization through XXXX portion our And will calendar offset of mentioned the April. this again prices pricing slide. on end the year for

in exposure. to strategy with certain Please keep in mind are contracts we that future our steel comprehensive minimizing locked buying we and have forward for now a months prices entering up XX steel tonnages

XXXX XX, looking we slide XXXX, share at our our updated serves fiscal which want to as On you basis year guidance. year with fiscal forecasts by quarter, total for

are reminder, this a be chain will and a As somewhat a we more a year transparent still perspective. taking supply from year as it conservative uncertain approach

we improved that have we strong actual QX demonstrated the business all could very already as XXXX address levers results. fiscal However, other by our now

margin Looking percentage our point our each million EBITDA QX of in forward quarter. increasing increasing quarter approximately by XXXX at as QX, $XXX well we the range fiscal and to are million for each forecasted $XXX as revenues one

a million of $XX of $XX to For we projecting $XX EBITDA are range with million. adjusted million QX,

For of a million range QX, EBITDA of $XX we to $XX projecting $XX adjusted million with million. are

all we together, Putting million expect range revenues an excess of adjusted total $XX billion; the in million mid-point million. for of year, $XX and $X.X with EBITDA $XX to increased of a it

up more in year-over-year $XX to we free $XX are than positive revenues all with flow $XX approximately adjusted aspects $X.X to Moving the summary, to $XX In forecasting of to improvement of a EBITDA in XX. cash million, billion, significant slide million. million and million XX% range

wanted we outlook. XX, reiterate our long-term slide to On

ahead. our our earnings share next looking with our XXXX. And are indications hold first call of year we forward are regarding fiscal in about taking turnaround happy very you We our prospects to the and results

EVs; beyond the that XXXX to including revenue. a billion supply million has Looking expect and which happened bit chain once on units adjusted generate X% units or normalizes, not EBITDA in $XXX sell we $X.XX yet, X,XXX

Looking further term. to the medium

to billion in million units or $XXX XX% XX,XXX support EVs can million $X.XX $X.X X,XXX of X,XXX $XXX of operational EBITDA the volumes with of including to adjusted billion generating range revenues to Our to and EV improvements XX,XXX of growth units XX%. to

long-term remains of X,XXX which revenues growth, Our to drive EBITDA of billion of and towards generate $X target XX,XXX units comprising million or $XXX profitable EVs in XX%. are

Bird's excited are Blue We about future. incredibly

I to will this. now over to Matt, further it turn And on back expand

Matthew Stevenson

Razvan. right. XX, now strong year On based slide the Razvan you, we to just on Thank performance All the the detailed as business. of walked fiscal guidance guidance that through, again raising in XXXX are

the Blue on least and top team That's increase billion. fiscal has X,XXX put XXXX over increase a driving off. $X.X of XX% in years year-over-year. line units, work for the paying All plan year at hard nearly a Bird two booking We a XX% is

delivering sales to EV EBITDA performance million to be And bookings will nearly to Parts XXXX. million at on We we those the in continue fiscal least ahead be expect revenue, more of double approximately to up than expect $XX plan. $XX now adjusted plan, up be year-over-year. compared XX%. year fivefold

no fiscal been chain be, want we Sales to Now the that the for supply And market XXXX. us ACT across be in share. constrained changes bookings there around industry. our where targeted continues significant forecast have to will Retail right put XX% It year

are other demand with just in down, we front of up As us. are heating incredible industries slowing

their we average row. past three have touched of calls, years per year retail the in on have sales off a As XX,XXX industry been from in past for units

this by chain. And more pent-up been bus school demand. replaced. robust has be the must market years expect fleet is and up national to ahead held supply This and aging fleet of And substantially it school The COVID address aging. we first constrained the us was closures by recently

rate fiscal XXXX ACT of year year from our through fiscal annual XXXX. our is growth forecasting XX% a compound

forward performing on ahead. we two executing the is long robust years look well after business market and to Our

bright turn Bird, a as investment XX, incredibly reminder our strong for of highlights summary is future so Blue to The around the let's slide company.

play are by strong. heat XX% affected being starting to expected just is companies compound great to are the next industries the It of this fundamentals five the slowdown and We not with growth only in industry countercyclical many years. our up a spending. Plus, rate over consumer annual

highest this commitment bus to of country's government Second, school is electrify from there the fleet. level

transition buses. $X to total government, Provincial Federal, to is addition billion $XX State, another electric in billion programs, accelerate school and other $X there in federal from the In this the billion Local to

Blue Bird of anyone. today more as buses we electric road will on than school be have a the direct beneficiary this

We as in also school a have the Propane-Powered Birds on proven decade reputation road a for over XX,XXX-plus alternative-powered leader by today. a our as buses Blue evidenced the

exclusive ROUSH, offers offers else one Our Cummins, something school electric no solutions other no partner has advantage and a performance on has partnership Ford billions And our a alternative with in propane. proven EV, us with bus offer. to fuel with distinct collaboration manufacturer investing,

we buses, And growth for on impressive offering Stripped outlook to as units long-term school few forecast. a market. and is expand of total our add top the projected still looking thousand want per are eventually Chassis as addressable our more for Commercial year, opportunities could The

efforts, lean per are reducing And with production transformation removing we our hours non-value-added processes standard bus. and

for We and costs, take out to same are quality. the time increase continuously looking ways at

we aligned normalized today, of are pricing we priced to operating XX%-plus environment. in All touched mid-term adjusted EBITDA is economics. provide margins As the with on through us our buses. will legacy the majority factors now these And market

XXXX, the reach. get we be we proving approximately As you EBITDA in adjusted environment guidance in on fiscal of a EBITDA to for provided operating X% double-digit quarter, supply-constrained the in volume, adjusted year will that margin saw normalized fourth

of exceeding benchmarks. mentioned off call, of paid is Bird the As and plan work even the this by performance hard and the Blue historical has the I business ahead team at beginning

critical well to our their are nearly as who they outstanding us for thank We as couldn't want success. have teammates them last without and I hard X,XXX all dealer to two our body the will years. it and sacrificed done always with the be work; over

open would to the Thank like questions. up line now, We for you.

Operator

question first comes go ahead. Instructions] Eric [Operator of today Craig-Hallum. please The you. with the from Eric, Stine Thank line

Eric Stine

the see everyone. results. Great to Hi,

Matthew Stevenson

Appreciate Eric. you, it. Thank

Eric Stine

obviously Just the or drag something on ease tunnel, Seeing issue. is little new it any supply at chain thoughts this start just you're I bit, yeah, is end have to to I light about seeing a curious but probably to I answer long an of you And I kind a I'll it's question near-impossible the is It's yeah. just with there have guess, still yes a the -- – and norm? expecting of mean, do going for mean kind mean, curious, to this a deal time. of with

Matthew Stevenson

is Stevenson. I thanks seeing mean, question some we This the for definitely Yes are improvements. Matt Eric.

It's And really there still some of supply it it in across the the is and one specific moderating component. chain; volatility board. but isn't of is kind

suppliers set our Xs commercial you And use the most labor. is as going strong. and that And pretty reside course, still industry Of Tier frontline same know, of we uses. of around the challenges industry the getting truck Xs Tier

deliver. we So a it to to dealing lot better our gotten remain have team optimistic continue on a so with as we ability just

Eric Stine

levels, you'd kind a that, to level and I scenario which guess, good I related problem is of to if of elevated a more you -- while would envision you've have play think do couple backlog? this I get you got mean down. norm I guess or normal the is to think is was it mean, much carry kind this will back able mean, where a nice be I work but to back norm that that where a do look of again, chain. also up catch this mean Which you kind -- back be certainly to of the if out follow-up this this the I backlog to not of that I is supply obviously years. on a you'd

Matthew Stevenson

is inbound but conservative and forecasting of ramp to in the of to that terms continue front and backlog. production up monitor sure if us, expect there we Yeah. of sort pent-up ramping daily getting weekly and of We material out what on up demand production, robust the and all watching we be lot door. a situation in buses course we're healthy have Based of our ability we of still years reviewed make a not our to to ACT

Eric Stine

do XXXX. basically And mean, price started low-price through that? is going feel Do the market for the putting are turn I what's I for pushback? you forward? on mean, price thought have you're you -- and conditioned through feel sensing backlog steel higher like I increases to mean obviously, prices almost you I the you're fiscal any your know again. mean, I

Razvan Radulescu

is Thank you Eric, this Razvan. for the question.

We are it's monitoring consider carefully the upcoming long for or is still whether cost development. up, labor offset we costs as from costs. prices And to there back pricing as steel going these inflationary increasing will pressure actions

too will the So very costs. how early for know for cover to order a it's but to at step first fiscal long inflationary in we least term these the XXXX develop, took bit situation

Eric Stine

Yes.

Okay. That's Thanks. I'll the great. offline. take rest

Matthew Stevenson

Thank you, Eric.

Operator

question comes D.A. ahead. next Our from Mike Davidson. with please Shlisky go Mike,

Mike Shlisky

made ask first you Thanks wanted I to afternoon. I the comments I my some taking some example guess, awards. EV Matt about questions. -- comments for around the your good guess, Hell, awards. XXXX on EPA I'm of for and

can share just EVs match on the getting out it far amount. like actually about like below you I'm XXXX confident historical it you already of full out you're or for the You market, have XXX on can or all had get of whether beat sounded school you conceptionism you market? might just overall you that just think bus And could that just what awards there or comment share XX% you rounding? be your overall least so on so your curious is bus mentioned the kind share XXX. market the are at And there, on the that's driving you

Matthew Stevenson

for the reduced conservative billion has grant in -- probably That's the this more, program amount in XXX. Mike phase, again, at just X. we XXXX like that And was for conservative but more. our just first of the only XXX said these nature or our but program it's least at when go anticipated we first $X question. that Thank versus or you'd Really approach. XX% target roughly taking to the or the after look a much the the conservative say Phase approach We're and of our of XXX here you for million very $XXX just really -- still be money. to that XXXX get we phase on program the it's grant the a purposes Hey, And Matt. is is to recall nature

Mike Shlisky

Can you okay? Great. guys hear me

Matthew Stevenson

Yes.

Mark Benfield

you we Yeah, got Mike.

Mike Shlisky

Great.

Sorry.

there or of at confirmed assume Next maybe announcement almost question, and an point? you about, public is one. that I all rule fleet that next had last to in lot of, an California secondly, because end we all have includes have buses fleets year. And over want of the school private kind advanced where of it this ask that in California, by I that a includes you buses out private fleets clean it EV to types XX% you the two work weeks with be

Matthew Stevenson

And EV. movers work one that Mike that first school private of some we that we include buses. have the with fleets California. does do And on market in was

for difficult in or customers out advantage five well first-mover over see or market the just So now. years given how there EVs being we had -- they for in close that to that don't putting

Mike Shlisky

Great. And as just quick a there. follow-up

you'll something that and other XX, sellable states. your mentioned of a in possibly be can chassis. first if opportunity of have you obviously could non-bus specific the Curious Class think the an us curious, the some lines and XX to products stripped by if as comments I'm I there, time California; because big give coming next you X-X the in coming there's had part XX calendar update year?

Matthew Stevenson

this prototypes have we've is to previously year the calendar end road. Our goal stated Mike as by the of on

where And right focus that's our now. so is

Mike Shlisky

Okay, I’ll along. pass it sure. Thank Appreciate you. that.

Matthew Stevenson

Mike. Thanks

Operator

Our ahead. ROTH Irwin Craig from MKM. Instructions] question go next [Operator Craig, comes please with

Craig Irwin

my taking for Thanks question. evening. Good

a their can to nice congratulations lottery results. see see and on bit -- not the book XX that closely. Bird if contracts details results: alternative guys X,XXX to of to place nice first different land the little It's any book tracking mechanics the those issue for that you as some to vouchers Bird for about have for to experience there It's as you these and So orders XXXX to prior the so customers actually received needed wanted by I well they ink need these you of that very you and really when how necessary with for Blue fuels order? parties whether unallocated or about and some pricing to they the and Slide or this working Can just these maybe units. whether RFPs of gave a is very, you obviously solid guys. an not to we dig potential in the talk on Blue markets, where them that

Matthew Stevenson

Thank question Matt you Stevenson. Craig. for It's the

graph partners. approximately our on or ones were is see customers we Bird you on So a on and XXX hand that loyal top for or Blue that right in dealers of channel that kind and with either to of directly customers rebate the had XX, corner working XXX applying the

that right. there So top that on is

rebates. on customers And number a to unallocated, those X,XXX are to there then question relative target that of those your with specific we've worked

been their because XX few well for and customers things them an is as days infrastructure this the of XX quotes buses of submitted extension, they're we to they submitted for we found One and have some infrastructure, together. have final the waiting the of the that that some a did have days, them as

well. those grabs XX lot there's a still to ones here opportunity for over up next we're left as on the still XX days. And So there's hopeful unallocated

Craig Irwin

Okay, excellent.

year, to increased were question that they it if that related we million. chatter ACT could getting bunch they million. to at $XXX could The the vouchers. EPA people from saying ask talking So off of I going to Expo a Last were $XXX was do another to started be

are people could just increased Some was vouchers, billion; in then and gave $X billion move. a they be lo us under fantastic it behold saying $X which and to

saw to surprised materially upped, maybe and more is least this bigger in did awards year be more this EPA would we We official at maybe and million. than issued? be voucher potential hearing The than those number to vouchers but that a could were $XXX million $XXX XX XX if went you

Matthew Stevenson

amount. we quite mean And if the Yes, more they we're the EPA, year. can of lot be for high-quality I year program. a here, for well that other that get done this quite job great Craig. a of that's potential -- think program roughly applications half I And per has a of that allocating this the they're for -- there's possible rebate that with also they think billion I that up mean, possible. $X

what may close customers work in with stay closely anticipation just with and EPA our we So, happen. of contact the dealers in and

Craig Irwin

XX% And it. of as we the on Got it. look horizon, you've sort price. Got had out then,

to What cash through much gross did price You put margin XX% biggest in It with normalized and pretty back be flow the presentation and that we'll new of you fiscal of the as 'XX. identified margins. for risk on to increase steel like you your the looks $X,XXX your see outside do call? items

Razvan Radulescu

question. Razvan. Craig, take I this Hi will is this

side you the the uptick risk the are pricing as in on as margin of as lot going mentioned the levers a that And possible. is, material we out profile forward there. addressed the far best and some -- prices; on well way raw derisking the we that to -- quotes have we there as controlling for So,

I we are watch in going and mid-term pretty point think in pricing to -- we necessary horizon. take And appropriate to closely visibility the good at the have terms and short if the it's margins, on another right measure, time. the backlog So, of probably

Craig Irwin

the complete I'll All successful Biden's makes the a sense. priority That offline. President We it. forward take to rest look on school Got here. EV on on Congratulations questions execution bus. it. right, my progress Got of

Matthew Stevenson

it. All appreciate right. We you Craig. Thank

Operator

further we time, registered. this have no questions At

closing call turn Matthew to Stevenson for over back remarks. the I'll So

Matthew Stevenson

Thank all Emily. right. And All to thank joining call the you those you, us on today.

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Operator

lines. joining Thank us concludes your everyone for may you call you, This today. now disconnect and our

Blue Bird (BLBD) 11 May 232023 Q2 Earnings call transcript