BLBD - Earnings call 1 2024 | Blue Bird Corporation

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Operator

Hello all, and thank you for your patience. Today's call will begin in a few minutes' time. Thank you for standing by. Hello all, and welcome to the Blue Bird Corporation Fiscal 2020 First Quarter Earnings. My name is Lydia, and I will be your operator today. Instructions] [Operator

you to host, begin. hand of Benfield, to Relations, Investor over now Mark your Head I'll

Mark Benfield

for webcast Thank fiscal Investor Earnings audio XXXX and Relations First call you, welcome Quarter Conference to tab. Call. under on blue-bird.com live Blue Bird's our the is The

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

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

Phil? let's get So started.

Philip Horlock

'XX with to Well, results for thanks, be to Mark, here fiscal quarter. and great good you our It's everybody. first share afternoon, our

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Razvan Radulescu

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will today, We the after X, file XX-Q February close. market

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to Blue Phil. back about We excited now incredibly it are future, over Bird's and turn I'll

Philip Horlock

and of Razvan. a That was Thanks, results QX our financial outlook. explanation our great

spend I last and XX. our chart I The on priorities this today on time as won't introduced Taking left care our move earnings unchanged is Slide be. much as continue our call, of we chart and are both our that center align the growth. profitable dealers The priorities provides and specific customers more our objective to around growth. that our with sustained are and illustrates reproductive pursuing on slide they that our text drive Let's our employees, it the X-year the delivering drive as to us. growth is At strategy profitable the so delighting strategies to should at drive ultimate right now on plans.

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like And to our hand to Q&A back for the session. moderator now it I'd

Operator

question first D.A. comes Our Instructions] of [Operator today from Shlisky Mike Davidson.

Michael Shlisky

Just $XXX about wanted ask outlook about kind ] million. that will to wanted of of that quarter you quarterly there, I last be ask Yes, put first out first you to [ I -- from the heard quarter lowest the year the guess

year just time up the quarter about hard they're I'm EVs. if in calendar we on first It's or imagine effect million. that typically missing from calendar trying do price back top anything were figuring that have to have EVs I to I'm out $XXX about schedule out, the that there, up hard a the of a the to some you ICE, that in would here is the of put years, usually usually school a quarter, of first rest there least year that because should recognize even and cause a be or in I unit thinking most line believe that of million. level, there fiscal would $XXX quarter, having the $XXX quarter a of whether from you the which just million this your if You having a fiscal revenue is it's is quarter EV curious,

Razvan Radulescu

question. Mike, for this thank is the and you Razvan,

revenue So so time, order of the maintenance lowest also lowest QX this plant very was of this at because historically, year. before the -- to seasonality units took extended work regarding and shutdown extended was the backlog we low do for indeed, after start of the that number because the but COVID, full

my And so extended we of mentioned managed couple break. we maintained so Thanksgiving only around an were a the take -- I we year, and did we of and Christmas days shutdown, this in took not as production, remarks, speed

did we before. ever So indeed days than in working more this QX have

quarters, guidance. chain supply -- to remaining especially we In of said, suppliers. revenue terms the be in as conservative some we has And want particular still X are constraints, our with I

might comes the quarter how it through buses inside get we supply million or the So should be a whether EV of number to part than of that lower through $XXX This is below lower number. percent the midpoint. of the total

Michael Shlisky

any the year up Or thinking the there. you planned going do in to about of follow-up to a quarter? forward just for just couldn't you rest the are first just kind have And what next.. of go shutdown make Okay. you Do

Philip Horlock

But stand. Phil we I'll the and just obviously, of point. more, in where with can we we're did as quarter. can had balance we at is that's a in build build being like I if later -- through will constrained supply, active year. a here. we year the a this of We've little year, Mike, comments just mentioned, that we're we mentioned I really the my on prudent bit very been conservative. the this last couple great, flex we a more, first take able We're to that. mean, up

Michael Shlisky

had you quarter be as in you though in Great.. And of on Bird's sales the X, the had that in maybe unit comment during some Phil, quarter. Blue that you market was the appear growth also competitors say unit exciting. Could growth doesn't sales their share. your to It

you And share? on appreciated. me answers. gaining X would the ICE [indiscernible] you're One think give You be

Philip Horlock

the frankly, we're start activity, for about our It's win months. tend a now school rate, bigger orders don't interest. share. start. I'd an But holding call lot much we last demand. of strong. definitely share mentioned and thinking A about well. XX of we supports the frame about time in lot share order Well, when what we have change a ramp buses people say and some up talk is rate, to the different, entering the fiscal a I strong too and trailing gained year is things short Obviously, and I mean, just over

have faith product have and too, -- we're So we our great ability, a expensive. we're what confident I of think saying. that's great we very we're I in range, feeling mean

about has propane Cs, many As got we're Type from times diesel and one we've you I Type no D. gas to As, talked on product electric to know, to the Type range on

the got, best product we by far, range. So

in and confident outlook we're our So we're doing. what

Michael Shlisky

me. cost maybe to million, X points margin less last about that year's one X roughly a on than Maybe Is this equates mentioned increased that for of that. you guidance. engineering little The $XX Great.

that you were maybe it you'd costs, you that, like year, as not thorough normalized more onetime flat [ experiment, be margins business sounds could a engineering this next you So EBITDA a of think us, these to tell just in year business, ] XX% be year. All we XX% seeing margin do -- should investment without perhaps environment. and EBITDA a EBITDA if a XX% see

Razvan Radulescu

the is thanks for question. Rowan. Mike, This

-- $XX million. So it $XX.X is year-over-year the so the million, actual increase to doubled

next about of And that's for X% expect So to years. basis. year-over-year we maintain a do sales elevated this of couple on the level

projects, will of Some especially next of and the for some we sustain with couple multiyear so these this projects thereabout. years, powertrain other level enhancement, product are

Operator

Next question Stine comes from of Eric Craig-Hallum.

Eric Stine

covered a haven't in see a or but the to think quite just I all, something mind, way is as that first time in of you you I'll million clarify. and different for and $XX first remainder touched on of the with about quarter it I in Well, year maybe EBITDA long ask it, almost the

go. now So something see towards a is bit If there. that of saying maybe the is and you actually where where I guess start had I'll ahead first the skewed the price Phil, second. cost increases were you half more materials think you're than that that you've little you case, is

Philip Horlock

Yes.

let I think in so I'll in on on Razvan talked about here jump this. his just just script,

Razvan Radulescu

Thanks for the question.

capabilities, these in side, mostly QX. the includes or the from and And whether inflation all which manufacturing as in mentioned my a whether whether So pricing now supply upcoming curve the ahead it's into the X and is starting people and costs for CapEx of powertrain indeed, with especially chain the it's product R&D, through also highlighted and on as QX quarters. are NRE curve, I remarks, and there, coming it's component our of in investments, also, on last costing QX the

the curve So back-end almost the now, for and year. costs is loaded say, let's pricing are maximized the

QX to lower So indeed, we in somewhat do QX compared to EBITDA QX. expect

Philip Horlock

You really dealers. adjust with because rest we're October term tabs keeping close to used the still a in year never it's I have bid Razvan -- bid you do, environment price what up as our we dealers, we be continue see really, then They later, think a constrained our every said, will And go it fixed price we've the priced for we're we But outlook be single we will of When our dealing They we serving priced recall opportunity Eric, this. and to can another just accepted $X,XXX in so with. again happens that fit our it. we know we about know And what on the down price we explained, pricing, it. or really close was a with bus it. we adjust as fiscal at of X we year. will start months have look this on dealers every in

now... So I right we're in think

Eric Stine

on can as infrastructure stand a as issue. 'XX, EPA into where mentioned. still you to easing funding Maybe to know on. limiting you can much you going I factor? given do actually at No, that was Well, I infrastructure trying turning the and funding that things X, pull all you out. Or see can appreciate to mean I all? get of think that's think it you do the that the first as been Is a being forward the round still big to that deadlines closed that's about good see that side? conservative just fiscal all, for

Philip Horlock

Yes, I think it definitely is.

think I getting is think -- look, I it. at everyone better

going pace We activity we are for this by think certainly, few active had with on or the quite last of caught companies weren't in year I the several than surprise. place. infrastructure call, And I the think me, to to on first, the right the or we granted that vehicles that's They're time stations they buses. first little And of X end it by when is could industry obviously, they just rand because May, for mentioned a there's not a think I I and these and They was but not buses the -- bit fantastic ready of working this equipment for up X that's stepped second in little billion and well year, charging helping challenge know the -- place. have was a going for they buses news before got in all I -- rounds it until back to rand want help their cautious. But providers. now thought actually, at think frame. mentioning to I $X.X the less let's awards $X.X push Again, they which they out. get I really gating was being factor they charging are $X was said, going say we're it look, they to it's the 'XX, these we're to move and they're like EPA to were be to stations and the Others feels both it this they I the them, the And ready billion being then half We a year for of X on pulled people lot year, had and got the point canceled. and April But this work got and billion. when along. install were given extended us in have cancellations nee, of charges charging utility we've

said them. right to we're our that accelerate do that to like the end to it's I everything And we thing with our deployment work to others going Now with can customers with we guys because the we charging doing before, we do. in work we like help and work and

Eric Stine

last venture. just the it. me, Clean one maybe on solutions Bus joint helpful. Got And then That's for

route is people And or see EPA that. the something on mean, they're get you waiting if not, if rebates, where see if returns either early -- curious, grants to able you you just would Or financing diesel. to do similar I that venture case Just cost necessarily a then that they that expect? turn to that's that regardless, the the in joint go solution. people that monthly to not and that's having do think

Philip Horlock

Yes. at Look, this look I way. it

with X,XXX exciting. talking all, obviously, this and we're There really funding grounds buses round. EPA are XXX,XXX First school are of the road, on about next

buses. huge billion they $X huge just a $X.X appetite That's there's from electric oversubscription to billion. So up of stepped ] want school why and [

So I'm saying. a big is the EPA, there's demand what

money. the in and around way. things different an by upfront, But shock there of in states. chance a any And definitely, grants for of quickly, of district HVIP call really installed EV, the solutions is rid outside are other are TVIP this affordable There the outside So they stick business quickly. of EPA Clean get Bus this getting your

So we that. are very excited about

you ton activity, start through I Bus but know tremendous frankly. too. in our as the and hand, year such that obviously, got opportunity in we Clean our it we'll our hand get hitting. and their EPA go is We've let dealers from here they customers, keep of a transactions the interest looking and accelerate, solutions to mean, a So just when

Operator

from question MKM. next Craig Our Irwin ROTH comes of

Craig Irwin

quarter. coming just chunky how you the number little you OEMs alternative this quarter. the you're the conventional from business for then years, the the definitely potential longer-term retreat gave and coming the trajectory, where Bird, impact so bit could markets Can the Even lot other another bus deserved. major into about much around over couple the strong on gross Even the into Congratulations really of maybe fuel interest talk this -- school EBITDA was really competition, a your retreating us of there quite and a and you've quarters? the Is looking margin margin the margins comments. does the this be excelled next business Blue trajectory of the margins we in how in last that and EV many us at of forward part of giving conservatism on your impact over should impact this the gross maybe guidance mix quarter,

Philip Horlock

XXth, product is this with pretty in offering conferences attend comment different doing. no we I to here. different exclusive is off -- they our out diesel together, we I that. it. year offering there the have Phil a offering strong on is state marketplace. in they're right? which don't and Craig, that tell what there kick We're and we PSI competition were were you and bids. and our They know Roche, longer and company called and relationship What do I a can We both offering just like don't I'll a the no electric Why on with XXth propane is the an together is longer they're bid really I with Ford now actually a got gasoline. All picked competitor,

I Obviously, exciting defer to did So to and it's us. for have that. why they them

leaders in this We are space. the

You fuel XX%, turn call, over vehicles, it's to been now. as old look a mix while of I'll quite diesel for power, at our I

powertrain footprint been had. different quite competition's has they Our that even that with

great excited we other a grants grant product. from are about low because this There terrific we're our opportunity a yes, a It gets low ultra so great propane, a is And expensive a the It's gasoline and super brings that product it. rebate know along It's to support and that's to run. attractive. maintenance product, very it make to around fund with emissions. EPA

here, in together, at them. buses I today. not I'm we can can for but not we shape. what surprising. I who's do to share tell see that put on growth feel you, obviously, going commit you driving looking We're big those So good and

So I really that's mean, important.

I how midpoint, XXX the on one predict. sign "I how the out mean, in us. build it? can I when more constraints like build industry. that's X just now EPA total anything difficult out there manufacturer awards, you folks. waiting still in mean, if the of what there piece can sort for that I whatever XXX. backlog. obviously, want. And can doesn't -- big EV on think going things quickly mean to recently There's we move And how X% know We're for of mix affect I'm they're looking can just I happening is those that battery volume going cautious no out, -- the little a in, but we quickly the come can with when to year. We're will see ] given quickly build you don't of grant. so nevertheless, like, a do battery business. we're at a order to it or be there it? we about are want it's when And the got say, " them pace to I talking But if side, So packs jumping of the XX% on our a I on in are it's X, the building you in mix they Proterra. that [ to, X quarter, current in XX% a mix dropped first want

us. for get on laid prudent think can -- obviously, I've probably the their probably best year. XXX a total the products, want X% certainly X% volume, as we're the to priority more the now X, If more we at right who product we mix if looking customers I balance in will an So little in, of a orders market. out, the those we margins for being and -- is build

So Craig. that's about hope where I question. your we that are, answers

Craig Irwin

very helpful. That's

So my is around question expectations. next your

if the in this way past. handling between of Can there's than And dramatically school your presentation programs talk is The X in share around factors the bit You just X. alternative done the the that about it round same really knowledge group funding EPA at maybe better people, program, that of in are XX% question under EPA you? them pressure OEMs, the the share you've considering put in adoption the and customers. lower long-term I the to that win maybe school you're mostly asking vouchers whether little and Clean is think than the XX%, different market for or EPA so you XX% opportunities not markets. is important, fuels different And I'm bus Round these the EV same a that's why rate the awards, the buses, guess, different commitments with you from is with

Philip Horlock

bidding. a of of and -- who's is see I There's look we Yes. put competitors, activity this. Green. ourselves know at sort [ when out you major ] why it's I is BID, XX% Thomas, Wim Bus, target Well, around mean, and a lot we And there. our

buses guys. the guys, not Have all they business there. them penetrated know of really you newer school They're our all. significantly, in You these cover

If just they'll we look announced. be one I But lot the big it called the want We They're at this round 'XX you own targeting -- so now, look business. grant when looking fleet don't of you I'm where right the EPAs it some know in a There got on we I to not far. round, the sort in who at is round, to laws we customers A of it think totality, the choosing their lot of was stand A, this. share tends bulk it right, while buses. it. that and of see X, the -- is last the talking so at get now, are speak,

the traditionally A school operators, them of know we that haven't -- Other all student, got STA, about a lot fleet right likes awards. for NEC, districts of lot they to sold of we I'm awards. talking

obviously, they use to they're So which such. selected have as going bus yet

go prudent, see love it. little a looking be definitely So right? today we're beat XX% see at can to good a us there is mean, where market being target for. I share. to I manufacturers All And We We'll in putting dealers all applications many in applications. are this obvious and to them everybody these the are we is are. are put in. these possible obviously, our end customers putting But apply. as

So network on. sure districts I broad they ourselves. to got we to of buses. that's will what got out put we those we're captive of sort to to a and and This our make But do this pick there. target. we've And best out as is work our XX% What haven't is make there to try all operators sure going

Craig Irwin

LA what really is just No it's So and funding. that, a United from EPA my last local right? and behind question funding really one The of win, state clarification. buses XXX

included of that -- are in bus XXX is was EV at in Or said units to incremental the school the win So a that backlog. you end really those the December? strong XXX backlog

Philip Horlock

in not at backlog were They number. the the not in They're of XXX. end that the Correct. They won't.

Operator

no further questions have We queue. in the

I'll closing So for turn Phil remarks. call back the Horlock over any to

Philip Horlock

updating for Well, and you the do us call Blue thank interest continued we on again look quarter. you, our on progress next forward Lydia, to your joining and everyone, thanks, in We Bird, today. appreciate

comments I to of couple a want make. Just

delivering margin we fiscal And why behind I have of all-time fiscal quarters. year, that's year improves the EBITDA solid that increasing same a throughout our quarter by you projecting as move guidance fully profitability impressive our quarterly as through first adjusted record path for saw the the we last think continued and on momentum the in 'XX, once base 'XX. again us, XX% of with profit raised we

chain As in years record a supply growing we're full last profitability X of and points ease level, a reminder, within our above then getting confident industry as business. this year's percentage couple a to to constraints a XX% weekly margin continue of and

great any with our Relations, Mark with of for Blue have and evening. Investor at hesitate Good Benfield, again to have questions, us night. So up further you a Bird, Head and joining follow don't all please said, for that you thanks today of

Operator

call. concludes This Thank today's you for joining.

You may now disconnect your lines.

Blue Bird (BLBD) 7 Feb 242024 Q1 Earnings call transcript