BLBD - Earnings call transcript Q2 2024

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Operator

Hello, and welcome to the Blue Bird's Corporation Fiscal 2024 Second Quarter Earnings Call. My name is Natasha and I will be your moderator for today.

If you would like to ask a question [Operator instructions]. I now have the pleasure of handing you over to your host, Mark Benfield. Mark, please go ahead.

Mark Benfield

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

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

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

started. Phil? get Let's

Philip Horlock

to good to fiscal XXXX Thanks, afternoon, hearing you results great It's everybody. through be our and second our with share Mark, quarter.

I'm great all-time a that history job be best reported the for at our recall the of earnings call, slowed an doing not the in You'll we all Well, to first quarter ever down with in Bluebird for record Razvan quarter profit and that quarter. the our momentum has after pleased team last second results taking quarter in you record shortly. any will profit second delivering an through tell our financial quarter. our our you details all-time

for on the So let X. quarter takeaways started second key get me the with Slide

results by the XXXX performance. our As profit the we ever quarter second first headline says, surpassed only best for achieved quarter financial

was record quarter record while box, in for net second any in for sales a the quarter. our shown As line achieved the first adjusted a EBITDA, revenue we

XX% profits our am we once the to increasing record are again in and you of second full adjusted outstanding very record year that pleased EBITDA and quarter we I margin with importantly, So achieved an tell revenue, guidance.

maintaining and QX, progress entire across buses laid we our delivering focused look out about business. really for the which this strong. improvements last school it the demand is drivers As significant terrific very year, plan be Market at in we making on to continues for

backlog outstanding quarter for of units. XX% buses Bird first an to from nearly firm end quarter the X,XXX Our Blue grew orders by

great strength pricing, of the Bird a buses. of demand the bodes stability for endorsement for that's customer Now and and the This margins. profit industry well production Blue

truck issues are still chain supply industry are select of easing, couple limiting that industry while are and a production Now the constraints there and undoubtedly case components on bus across deliveries.

the on easing, as are while and second we couple there of Now of a engaged undoubtedly the and production constraints asset that select are limiting components very beyond. bus chain move year issues constraints half industry capacity constrained But supply and some still additional with deliveries. we are with are across truck industry those of being those expect we this easing through through year, this suppliers installed and

bus just Bluebird backlog are is reflect prices Every from tell and bus bus the price and with behind incoming As year you an selling which partially we current have year significantly. quote win in those our been margin a second us. those our ago order we I orders. pricing, priced up gross and competitively, the and 'XX last entirely are us All low-margin and which fiscal compared sold. in last structure rate of can quarter quarter, This mentioned the is hurt legacy in different units revenue fully today with backlog,

today's spending will and we efforts processes ended were back segment. a best quarter several as deliveries of our of lean we as EV mix back than XX% very of first and manufacturing result electric are contributed quarter. leadership the strong years. you billion and of the improving. the the X second of higher-margin margins manufacturing higher phase year and higher front, process working second academic next doubling of product than Razvan best in lean alternative-powered thanks alternative $X in quarter, companies unprecedented our X% bus of some X funding our ever the facilities program, market further strengthened installing the improvements that hit the the plant a largely with to we're this that are of from strong our represented profit the best programs Bottom show performing our of line, leadership, well billion in hard in strong clean delivering achieving EV higher in ever improvement reinvest new business, strong continue powered EPA's been And last businesses the we buses $X manufacturing the market. On on unit and Through in appropriately we second a the greater selectively and to position We'll for school exciting products more performance sales, work, vehicles on achieved. to engineering into business priced We a to environment. and these this nearly extremely our maintained later, by environment The have orders. mix backlog and We're will the competitively enhancing and are we sheer quarter [Indiscernible] year workforce upgrading vehicles,

quarter of of an result all these with million for of a accomplishments, Bird we XX%. achieved EBITDA adjusted $XX an As profit Blue margin outstanding second

down year. from last net a That's unit second for of fiscal $XXX quarter all-time revenue year our financial X,XXX above by buses year and Now operating from quarter last with 'XX, quarterly just reported. the financial record many transformed is record very second let's X saying million. which increase I look X% an slightly the of sales sold We quarter X. is in last closer second Bluebird Those for XX% sales the ago at drove second quarter. highlights impressive to highs on over Slide performance and take and a quarter that key want begin

the essentially That's and of mix down a year a ago, EVs XX%, evident of had and results made is and profits buses flat the clearly net last with $XX million richer compared year. and same EBITDA with cash up million [Indiscernible] last gains million the from that corporate general along revenue adjusted above a capital second last double million for well last of only $XX in strong year. an XX quarter $XX was for the $XX working guidance revenue earnings exceptional $XX free we range we our with adjusted financial growth. $XX in was above trade And higher profits we quarter. improvement million the set million impact X So to year, call. Overall, improvements, finally, second impressive outstanding quarter Quarter for pricing almost drove quarter transformational the as flow

are We a on trajectory. great

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

be a As firm in continues X,XXX to exceptionally with I of backlog quarter buses. backlog of demand about strong, end $XXX order revenue, earlier, at million the mentioned second over reflecting our worth the

the Importantly, almost at than had that's quarter. of higher XX% the first we the backlog end

up for industry of we incoming the against of Now units of quarter average year's of illustrates order the through about worth a as X sold quarter. second the a sales That's last and Part incoming over ago. were with our our years, great first confidence was measured totaled half. pipeline QX, continuing and year strong 'XX the representing an time raised the $XX,XXX same and a strength outstanding quarter the past us growth exceeding orders This experiencing. second the in than ratio last for of strength We and the over brand, a per confirmation million higher our bus the the momentum of in by strength our sold quarter at that fiscal per $XX we're XX% and year. XX%, bus. selling our sales again, X% and units compares That's XX% in prices audit year an orders considerably X% indication was great to price

unit about first sales buses. strong Turning are the second mix We months in running represented quarter, at and of the XX% XX% fiscal powered X year. the of very through pulp sales alternative of a to we

No as are numbers. to to continue And increased in alternative power bookings mix. other the bus leader comes We buses that EV this these by space. of close QX, school be part EV in clear mix manufacturer at XX% strong we a record quarterly second total X% year quarter. saw a XXX over last That compared of very represents of with our sales last electric buses. year's school in X%

EPA's the backlog, $XXX ago. comprises million year is which I'll X That's Incidentally, for Clearly, share in the the we of a our Additionally, year the total around firm we're than bus it's funding higher with EV of the orders revenue from second end X% $X school an of from almost and backlog. this of status approximately of left XX% than quarter. year higher cover first XX% worth benefiting in our billion quarter also which XXX program, first year of program. substantially the it second rounds. clean the this

Reduction quarter, single We bus that That's clean propane-powered Omaha I also buses. order the significantly second benefit our for school ever the successes, we to XXX industry. which largest proud school units exciting the regarding am inflation in public funding with second Act, have additional adoption from very report the during will received some school EV of news Continuing bus schools.

performance I'm for from exclusive propane announce also school time, engine in of our buses. we this time industry-leading market to this engines. have year XXXX. a build products of Public XX delivered new partnered Incidentally, start repeat summer. with have exclusively in bus the to propane-powered largest also these we that and see years, It's where of We been undistributed contracts and our market renewed the almost order and over throughout both XXXX. back it's magnitude, Bluebird ever time, until these was will propane QX, deliver we propane. XXX business buses of with Ford for time Staying will our great school pleased for that providing Omaha that for great the stores the leader. propane later introduced we Roush the importantly, endorsement also in gasoline By and and very

quarter beaten our approaching cash be raising are testament in fifth And XX,XXX revenue, is buses for an again adjusted exceptionally This we EBITDA back raised to gasoline-powered results, of flow. succession free we fast which propane have guidance will the guidance. We that partnership. and our year quarter and have second once a and school full on adjusted net finally, the deployed, successful

recent and results reflecting I'd XX% of second through have a as more profit and accomplishments. financial Importantly, our the for EBITDA our over from our an outlook to too, longer-term like XX% than adjusted raised to to updated on solidify to to Razvan. more record 'XX detail. financial operating in all-time Razvan quarter, we continue margin build our and XX% hand plus With performance. guidance walk now margin, you, Over very it team's second fiscal I'm proud to quarter we

Razvan Radulescu

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

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

$XX adjusted first and financial And Our and for this results. second earnings mentioned and We summary hard We and bottom D materialized important to half chain prior revenue of significantly Blue business The and call somewhat XX-Q units appendix driven did of $XXX type was X,XXX fantastic that $XX that and volumes, high as again cash record EBITDA consolidated supply job ever and of our of pricing we for and year driving and ever after it net Slide driven general fiscal another high-margin includes with important margins, earnings with limited a call. costs additional the partly the as but part QX million provided only Bird than volume, was a more push our results. well-managed both previous the of and XX-Q in prior read GAAP operating measures unit beat best labor mentioned reconciliations the you in best last buses. part sales by in million, today's for material It XX% year, Bird of quarter the XX% quarter shy high material was EBITDA record with line EBITDA 'XX other our adjusted to QX expected QX. All-time the due type line disclosures million quarter top a The and second the call. year improved attached free generated was strong well by Adjusted profitability number non-GAAP presentation improved disclaimers. and delivered The encourage capital. increased This higher and fact, quarter offset prior quarter to and $XX includes higher buses just margins, by challenges this and or on at and continued increased disclosures quarter. to is than record units, adjusted very $XX Blue second contains. flow our sales, and increased electric fiscal the a EV D regarding differences million with guidance team as mix performance. of million and sales margin in higher and was expected. second 'XX X actions which between quarter working outstanding as result was

million was both months, This was sales already also record path. with almost was record a year, XXX EBITDA and exceeded outstanding On the of line all-time and growth adjusted record top QX $XXX the position the year Our adjusted only basis, with All-time quarter significant delivered at record line. for of X end net million X at $XXX our we forward ever, this which and debt. level for for best of steps a the million, bottom liquidity last on XX%. quarterly we and quarterly $XX of EBITDA the year-to-date profitable revenue in entire units, performance

and on long-term year, a today could this for You mid- our had but start in say updated we this safely outlook. on later great more fiscal

to Moving XX. Slide on

up As versus by but to EV. million was X% over the into million, $XXX units The million of continues Phil, revenue $XX grown at QX, backlog down before record in QX net be and X $XXX the million, X,XXX very end prior business strong mentioned revenue our at has $XXX and year. segments. our including by Breaking

very the XX% material electric last increased year remind the walk mainly million. $XX strategic the gross This in one and our the plus the per would million million than Adjusted of inflationary effects, buses. very growth income timing adjusted was call. March points. to Adjusted are between as a segment was long-term cost materialize price XX total record strong you unit profit million the higher start $XXX,XXX due sales cost margin fiscal X% gross the $X.XX XX.X% at by offset well for due of development to last This increases taken year. with great year and was $X.X in to as XX significant or in for more net costs, current the per the other for pricing adjusted and impact prior quarters, compared $X,XXX was percentage second investments. to as earnings last great announced and million. 'XX mainly of increases mix XXX experienced from part part costs. months The received revenue from X type call to factors performance pricing million fixed aging and mentioned EBITDA or already $XXX,XXX of up and of increase negative fiscal to $XX.X end year-over-year. Starting than 'XX past as XX% engineering bus QX of net in cost negative XX% we reported and higher which profit Slide improved and revenue actions $X.XX QX of year demand average the Split The largely our also over in Gross sales actions was of the Our $XX quarter result will discussed earlier results. QX mentioned $X.X record was of level with or D or driven X and QX increased EV the representing million, backlog. were of the on our quarter higher $XX.X approximately and Parts a in a or bus the development of units margins volume segment orders million. than versus the increases of but given performance This was million, personnel 'XX by part each to one labor fiscal more new was the XX%. our fiscal year. share XX throughput $X.X increase million, The prior $XX X.X come inflationary still in year a orders, like percentage fiscal compared that million the million improvements or in of drives left, net higher in production EBITDA was shows X in is of We of of for overtaken by XXXX, in increases favorable half time $XX.X all this million strong up $XX.X the cover of October level. slightly for prior points to fiscal EBITDA above diluted 'XX. the fiscal well year, and to sustained order price by to $XX supply or pricing our our operational chain-driven have as offset and earnings pricing last and result the $XX fleet the expenses per related In as last XXXX, XX last improvement. in of $X in a adjusted

XX. Slide to on Moving

million our reduced We the have We million X quarter quarters. balance the $XX also on in development the last ended debt $XX extremely significantly sheet. and year-over-year over positive by cash with

close position was quarter. In fact, end X the to debt of at this our net

of a compared record QX, 'XX at the a million at million end strong very year ago. $XXX stood $XXX fiscal a to liquidity Our increase

Slide outlined also operating our call. $XX revolver $XX in flow the We $XXX during million X almost down and and generating an The our this capital XX%. quarter, in million following over previous improvement quarter, paid operations driven the of sustainable EBITDA strong achieved in million. an or XX margins strategy cash very by last $X results allocation working earnings at quarters, adjusted to improvement balance in in team our this capital the our was by shows

realization, increase due quarter-by-quarter Our every revenues quarter, a EV combined been pricing sales. growing with have to partially in

We in to the X guidance team for of double-digit range, have chain consistently now our demonstrating execution suppliers. due we outstanding our plans a quarters quarters delivering a conservative environment despite to have beat the select XX% adjusted EBITDA difficult XX% been in with last X row and that raised last supply and our by the still are The performance.

lined is our up ahead already for costing important as of ahead of us, fiscal expected curve that expected. our impacted in some X been the pricing margins curve factors and inflation contractual to our it the XXXX for us in note XXXX comparing has of significant last investments the quarters, which Finally,

talk we successful. about ensure fiscal growth we the and strategy 'XX for to wanted in and long-term investments significant that is 'XX outlook, fiscal XX, our about to on mid- that we Slide profitable our have updated Before started updated some guidance remind you

'XX million gas Ford are as in integration 'XX, for of approximately next $XX of the updated for regulations. and generation the engines Our next engineering planned work be fiscal and we propane expect fiscal for at began now the 'XX approximately level of emission to level of the fiscal them level we expenses X.Xx the

expanded also XXXX announced to Ford Roush exclusive as last X. partnership We and our with

this offering product news stay-tuned plan EV to continue and also enhancement our across evolve new features safety product lines, summer. We exciting for our

the in continue up EV of ramp commercial bringing chassis investment the market calendar by end Finally, XXXX. we to will to our

Expected capital chain more supply buses $XX now expecting approximately upgrades, than double investments or day improvement into capability year. towards now our and quality our and million also capacity are tooling facility CapEx We is XX year-over-year buses XX,XXX expansion, production of for this per to target year. per our

inflationary benefits both side, to provide pressures, base On very supply the employees. and competitive to continue experienced we our internally, from externally we and people our

reduction these also up intelligence costs of launching updated wanted beyond. initiative to revenue to add and as have as of later guidance. are rate 'XX and We our fiscal basis well tools. combined All X% and of update ERP On analysis fiscal our share a can and complexity we begun the in Slide June in a our business financial system our modernization on 'XX with XX, run you planning

this a we is reminder, environment transparent take it to still a somewhat chain also we a are As year, are continuing and but facing. supply approach uncertain conservative

chain $X.X This $XXX a fiscal and our Looking results. adjusted at or to to 'XX, only million we record 'XX we $XXX between XX% revenue are EBITDA year range this adjusted million. EBITDA revenue with million range in ranges we the increasing the fourth remaining forward of prior million $XX quarterly with an are to our supply are or higher $XXX $XX increase $XXX to billion, X% significantly have fiscal now million approximately to every of increasing volatility, Due general at maintained to quarter million XX% to to XX%. of over providing is point, and expected million $XXX

strong we in to backlog D insight capabilities our will after and our further and gather supply support further and provide fiscal August Type EV. of increasing We closed the the beginning QX chain into updates

to of a XX Moving improvement EBITDA. million our filing $X.X requirement to XX be QX, form of At up approximately adjusted line that billion, $XXX adjusted flow to a with target significant $XX XX% from our required EBITDA the at will accelerated to Slide year in XXXX, end status which accelerated days. is update, and timing $XXX test year-over-year, adjusted performed large filer $XX are XX. of the free on will end range public In forecasting to to cash XX% the revenue in a fiscal as of from move WE typical to take flow million filer million, summary, of of based reduce million approximately with we of

fiscal file on to get and we also XX, outlook path earnings we Slide expected our wanted On on and long-term call result, to update our November there. a XXXX. our Monday, XX-K significant XX, plan our you year-end rate hold As to

updated layout of as quarters planning for in the we believe is baseline and growth a where profitable last as to are go company we recent type slide sustained the and of forward. all, we we are more from the performance relevant First demonstrated today several the

Second, The generate highlighted adjusted EBITDA margin through the X,XXX X,XXX as the long-term follows. our short-term and chain our is aspiration. expect updated we all execution EVs hard billion on margin million our work adjusted from raising as once sell of great now previously normalizes, units, outlook unit strategy, supply $X.XX delivered already in the EBITDA ahead our schedule outlook XX.X% are of our and we to further significantly for adjusted teams we $XXX way revenue. of had XX% and EBITDA Therefore, today, we bar including in approximately

$X.X to medium including and the on up million of XX,XXX lease support X revenues the units, billion volumes can to shift with operational X,XXX adjusted of term, of XX%. improvements units, and of $XXX or Looking our growth EV generating EBITDA

Phil. incredibly Our in to X,XXX million excited We're trough. now of long-term REV future, back to X,XXX $XXX I'll towards XX,XXX even to now to generate which XX% EBITDA to turn comprising $X.XX drive growth Bird's levels to it billion remains over target about XX,XXX higher Blue XX.X% and and or units, profitable $X revenue, of $XXX-plus-million to to of billion

Philip Horlock

Razvan. you, Thank

was results financial of a explanation and great our QX our that always, As outlook.

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

As margin you achieving in transformed of profit record X%. the to accomplishments from losses the 'XX, full fiscal profitability, we recall, year business a

we to For next margin. a guidance X and grow XX% to of plan just full year last in beyond longer the EBITDA That's to margin earnings couple then over points adjusted a then fiscal full at and of of XX% 'XX, increased XX% range years, the percentage term. higher year and than midpoint we the our

Our specific us, and in strategy is goals fiscal to these in CapEx products 'XX. out these namely, with paramount is focus a are both on chart, features. spell Best engineering and this safety, financial areas workplace and products in and the leadership in our delivering investing both we and and in

customers. As differentiate to our ourselves always, value providing we seek to more

relationships of in our the tenure that great and corner States understand propane, delivered is development, to and average through As in school power dealers we having lean to Then need durability focus transporting a buses, of sale, XX [Indiscernible] the most continue XXX% purpose and or we provide features. competitors and buses and to And the many means unique another United reminder, our service on We the and strong throughout the we customers supplier of and partnering gasoline to were dealer smart buses the That's and derivative are EV and first us of more of uptime in manufacturing that run. a design efficient our Canada are from built vehicle to covers need Having ensure This of years. like among this. product after the required. move business our XX ground years every why compete our differentiate. up competitive competitive for value throughput, over product quality, with children safely Leading power are market to alternative them, them. bids with competitors. school we the bus cornerstone our network our exclusive with our essential need for on we will where major the saw planning with costs

both these bus business in earnings XX,XXX calls without operate As and buses. than that and their make experienced conferences, a at cannot fleet X,XXX can capable bus it said you more many the various own times, fully I have that school dealer [Indiscernible] network school of school owner-operators reach in independent and

strategies Following been year continue to will our our core transformation X to has plans. these key and drive

which Slide and adoption funding and propane to federal in electric accelerate helps for XX at beyond. buses, important of turn XXXX and the now so clean vehicles of the it fiscal look status latest Let's school is

provides of propane year starting just after As billion a available still we $X buses, power the X-year are funding program, school billion first $X are of over year reminder, second of electric funding. of the which this and but

The to as second of a the million is an by by for more That's was to total billion. the funding. XXXX rounds to at provides $X.X billion $X and than about funding anticipated in program $XXX year, which least appears totaling the X referred deploy acceleration EPA EPA

As the the awards. to X,XXX the winners level Grant Round grants of purchase grant who X million total increased have early left propane awarded electric of program year 'XX buses high due submitted. to using until these million XXXX December and this A awards were the chart applications buses shows, their $XXX from $XXX to and were

propane represent XX% of expect school to orders We around ultimate Blue to the and electric approximately amounted XXX buses buses. Bird

generate expect XX%, least electric funding to propane through for industry Together, orders our million Bluebird X least and $XXX get Looking much out will to [Indiscernible] MC's is this receive middle for anticipated. about assorted applications. based part us be and the number purchase would and XXXX have also Round and immediately a and Round buses holds win X,XXX of orders EPA third at chart, round. XXXX both at of program, until which rate with can month at XXX from at X,XXX 'XX with which this should later great If electric the notified the X at awards. rebate announcing the for and after and infrastructure, April propane close the school orders higher in their least program, buses bus particularly potentially is results, world school A their rounds award these about and Bluebird of on

deadline corresponding back charging as X for utility bus purchase prior pushed than to April a deliveries customers could and from late the orders with being rounds ordering. requirements first With less end XXXX, as and deal infrastructure be 'XX these finalizing as

to X the let Funding year, the April excited having as with chart. Applications X program, this EV EPA bus awards XXXX been buy me vehicles accelerate which from expected and school are right-hand the the and Act. of $X to school the adoption years That's our February vehicles through accepted buses funding is EPA's news buses, million by news that is year, the school use $X is to clean great shown July focus being clean Now On the billion announced Classic the to allocated $XXX purchase program. buses. adoption. the heavy goes outstanding XX to being new for followed children, the on for school cycle EV electric all-new XX% have turn of a be customers inflation funding school to up recognized the in in of duty industry, is bus up buses. announced EPA's to our our billion, perfect which Reduction by beyond and the funded of XX up to additional this school and is The 'XX, for

on up key the through showing me of took call So the and at Razvan the some metrics for I'm you the let Slide midpoint business earnings raised and 'XX, XX. here. of now fiscal guidance of wrap those guidance outlook

increasing our prudent We're in bookings this over at by outlook. fiscal only 'XX volume been We have time. X%

more with guidance line Net components the that in $XXX we we $XX manage them And we did broader the half them build very of first Adjusted 'XX, year, earlier, record X $X.X and of can [Indiscernible] just will new we truck if later last did year. last EBITDA industries. from this we are million million. revenue of a dealing As as record then increase additional suppliers is I bus impacted XX% billion Bluebird, a and of from year's constrained well up fiscal of we're specific will be mentioned this XX% have to But fiscal year. from 'XX. still in capacity for sight

of margin ahead from 'XX, XX% 'XX, which in percentage couple fiscal the points planning we're X Importantly, up of we fiscal least a have years on at a with is sharing you. EBITDA plan been

repeat recalling margin XX% year. in within half extended this first complete may EPA granted did especially deployment margin vehicles impressive award. new confidence of achieving purchase mix not alternative after fuel mix It the funding the by with benefit an that adjusted noted of at half sales the EV unit total EBITDA have all for the their and quarters, EVs through exceptional this time in of first be customers We a X% to This XX% of sales. of mix should an of at strong

as late our that are as of in many new doubling we work is fiscal product engineering support Razvan nearly If pointed programs, XXXX. you which 'XX Further, recall in April out, as full later very contained along the with first of potential bargain year. with a impact in Steel the fiscal economic with 'XX collective XX% agreement margin year, our Workers the outlook for United

unit Finally, to EV in XXX fiscal to are saw QX. over we similar earlier, increase growth in fiscal to a buses 'XX 'XX. as mentioned looking XX% sales we sales, I That's grow

and company our supply a see given, 'XX term residual a bus not from great With news demand these X% the to compound As growth has is following points right outlook calendar great ahead. today, but future for confident by robust work low all achieving of XX% outlook. have industry the of we XXXX, of units our The in thank a higher operating is importantly, X minimum X,XXX for nearly EBITDA ability the an our in look and years. Bird, their market to first I that and auto dedication school second [pent-up] of transformation delivering build we're all is the goal record is profit with fiscal quarter and chain ACT what a our 'XX for I back is have formal still fleet in news a incredibly profitable longer-term EBITDA today, this the in our growth to employees and XX%. the profit been Blue of fiscal near executing there. who a least our sales reflect our for margin and an bright improve our at margin. 'XX, now to the continue you of their end forward record for of quarter. well. outstanding success. impacting the for delivered buses year performing the performance annual it updated longer-term Consequently, want hard clearly Bird to also recognize of 'XX, business, sustain we to partners exceptionally forecasting concludes is to for substantial our to across moderator We'll presentation want business on and like I'd After profit industry of can couple our and to critical session. Blue That aged demand that's on the top deal the rate hand chart, a are Q&A all-time lot industry the through there's in

Operator

Thank you.

[Operator instructions]. If question, you would a like to ask

from Eric our first Stine of Craig-Hallum. question We take will

Eric Stine

and was second that, whatever buses? D for offset high type did prices second not by, rather have step down to talked and said, half as and of reason, you is fruition. you more did something about that ahead see thought might school a quarter? a EVs mix pricing which of you quarter, that last come that's in that that of So Or EBITDA, Curious, you the sequentially being material you than

Razvan Radulescu

This thank the question. Razvan. for Eric, is you

But in definitely, into increases sold in second cost proactive half been than the in labor this the goods of several the as see well cost through as pricing our we were in in inflation So more inflation. some definitely, from actions in more both started much the we material past. to costs, SG&A have last the of our mentioned, year. as quarters factors We our we I expect

yes, the a compression is fiscal to half the end, bit the second we the But end margin saw still overall, it come of of in 'XX. of in So bulk in

Eric Stine

necessarily of and you're a given supply of implying And conservative others? it. chain you're -- some still Got way or noticeably uncertainties from being just that guiding that not EV, to there again are lower lower out not a the mix

Razvan Radulescu

Yes.

XXX our the quarter, maintaining are this we we guidance our mix confident approximately EVs and bit in can of little overall, continues yes, But guidance any remain So to but given a year. are for conservative. vary yes,

Eric Stine

the some I the clean 'XX? X, out anything it's Maybe curious, year you seeing pushed or [Indiscernible] Round that turning Great. strong round the that Okay. -- versus about a federal trends. something you know remainder is order school deadlines bus you throughout to into Are talked of I the are expect quite know funding. just been just of and have from early, still X that you

Philip Horlock

They here. Yes, utility they Phil the awards, about the time that grand I learning a obviously, the I you when think, it's get know Eric, these mean, need companies, you the from winner. you're take infrastructure charging receive now I what of orders second on. are first first, starting too. all round award they're that That's because in year, call we infrastructure, what to the certainly the that's But in progress the though. working

date round, know I today. got like, one of total in -- XX our I the if more second to think got come we've just we -- could have XX you, tell I -- than second from program you

That's promising. that's So good.

it course people with we more, of the to work needs. on see the pace during expect infrastructure their figure will charging we our I year, customers many as up accelerate try out And of them that pick and orders. So will those

book feel last going record you. So we're I confident that year this a a numbers very sold have to we that -- order in hit continuing nice and mentioned through good to the

Eric Stine

to to Maybe last early though hear starting -- it's still see, Good your days. me. one for even Yes.

hinted to on and I remainder You of mentioned kind the you of think business, stay the some or EV over team here things chassis 'XX.

wait if can give little more need we to if a you wondering whether Just on? something it's detail

Philip Horlock

Yes.

Okay.

tell public that the in gone to we -- I that haven't of So you can stage program. obviously, this yet, we're in pilot but those

the at road that, it, down a there's out ground couple too. and think chassis exhibited have a put shows and that us date a take on we rigors bringing we're I feedback give their here testing the with, working customers we've some through future We that of in we're will, this to year, look probably to at

this well it's interest, year. development, yes, and under that we're already generating take So we'll further and customer

Operator

next Davidson. our D.A. question take Mike We of Shlisky from

Michael Shlisky

touch to in first the market on want I quarter. share

industry the [Indiscernible]. accounts think about when will shipments somewhat seeing most bit, flat you're So a pretty XX% by quite overall over is on good you down

I the other great quarter? Do you were wondering gains [Indiscernible] I who describe issues the up better cut are in [Indiscernible] those just what [Indiscernible] have the Or think guess a players with you [Indiscernible]? I challenges? a So during -- decent fiscal you other got market just work in you with they able share and suppliers how was such Are to to quarter. like having wondering was what the

Razvan Radulescu

Razvan. Mike, this is

today. the for to and thanks question good hear from you So

and deliveries, point, I supply So that's speak for despite what maintain speed, the select from are But have improve the them. ask some see we competitors, at we and this in the focusing to we we pace focusing other the profitability, on and of market. maintain on. our that challenges our you can't of point view, we are still to deliveries managed the we

Michael Shlisky

closer there's to quarter the much it's worse seeing another least you you XX%, improved years? year-end getting chain way, have I start supply do quarter you that saw, at have think the a would Or and all? you that you've point this -- next few this a the piston fully though feel at at of challenges May, put been in probably mean, Perhaps that at down which even

Philip Horlock

when know. Yes. the say quarter, this, that through, than delivered we our don't I number. I you terrific had me quarter and I I we XX%, about I can that delivered you more orders we as down talk just mean, Well, mean for were let this. recognize you went the tell we it the for plan were guess

all seeing road, to leading indicator some And of of and in quarter mean along in still be I anything that's way we we're be going what our negative thinking them for for orders we're feeling a year, this the 'XX, we're the our So some down those -- and don't see going the than beat our orders built so what came more plan, we're the vehicles strong XX% reflects. there's quarter. is in -- or certainly of I a you're frankly, build guidance very we good. book will of to us, for bookings

Michael Shlisky

reflects downturn, in this a or quarter. guidance at least quarter X% Well, next

you surprised just what said. possible would with I'm be So that

supply environment [Indiscernible] want some sure could number Are to how relatively down up it I'm but a issues, that saw? how to figure chain other just make other any we guide [Indiscernible] [Indiscernible]. out challenges trying I be you just down [Indiscernible] that XX%, So big there was number popped to can recently? despite sounds -- more Or stable revenues it a lower like quarter in

Razvan Radulescu

Yes.

revenue $XXX terms in point So revenue is on the quarterly of in in the so from million specific -- the at with recent guidance, in quarter. million, we not the performance that the this line time of $XXX X raised which we but again, terms had range giving we for are guidance for to remaining quarters,

well it second In as expect price factors increases the some some prepared the increased also to and inflation I more labor suppliers. a engineering have cost as as with inflationary is -- from additional terms expenses, in hitting EBITDA, And have contractual select we half remarks. said conservative cost we factors, guidance, of

right is EBITDA maintained now. of as half, units speed what throughput that guidance but second overall, the So X,XXX modeled drives revenue units for the the the at well for as the our year, essentially

Michael Shlisky

the sounds customers some described can program. you just of a et because factors. check [Indiscernible] today the ability of charger it from electricity, full one whole Great, I'm of you're the if of you halt coming maker and to other very us cetera, the package the last not get could One the if [Indiscernible], wrong most I'm when approaching of established that's any their sluggish fantastic. Phil one pace about the EPA. the activity get seeing earlier for similar from they that. offset way tell Have to or curious delays EPA the their I EPA EV a Maybe think

Philip Horlock

the obviously is I we the year in view put what told not we for tell program. Obviously, what but to showed work that in I XXXX. Yes. we or order to industry on someone got an you extremely going the to in is, for the someone XXXX that first else people is did finalize I'm our works, through round this with then we the we charging unless customers can when you start round I qualified. when look infrastructure comment believe, other round of when first requirements, their that this system we now this don't We granted that. of work been an is requirements. in this, our the well second fact We And at know application know that first for a right? and cost infrastructure to on We've point mean

this during I So mentioned the it, we've orders. we what, do one And we first X already got think ensure and that's I X and start XX earlier, from that we on was it's year, the months with confident that, pretty over we'll getting announced, track and year that just to had. we're ago, good,

throughout receive continue that, customers it continue to with expect to our we the see orders from through grow So year. to coming

Operator

of Thank next you. Needham. take We Pierce from question Chris our now

Christopher Pierce

just of doubling of of fuel to of to chasis existing new Just of the of product, that new is had you kind And engineering the you iterations that that? is referred or think about the you a how have? sort are products from new net on benefits the these that kind curious And mentioned spend? EV part types the chassis spend

Philip Horlock

Yes.

There's caused features do trends new the about in work talk to you innovations, new ours. controls one coming XXXX, on a we of requirements can yet There's at us, haven't that and forward I certainly too us, are we engineering those take be before if emissions also new the But some we features there into that, coming yes, them. quick we They'll don't big announced things some a launch spend, those we program. just new for and announce me mean of Razvan look their emissions introducing products support of too. in, market, on jump Let we're on because lot like. far the for modifications in that's and emission

requirements way without on but and reminder, our completely we work, meet a those our well into XXXX it. with further, of little that Yes, we just of its as engine propane course, not systems it's does sorry, a a the on take our -- any vehicles needs control diesel move I'll to Just call product changes products. then, of bit it, on

of at look our functional cosmetic there's I But we're changes, then we too. buses, a putting, there and when all work like there. So bit are features, some on changes new said, of -- and there that, additional coming some some

things, other our engineering in all they're So among covered, bill.

Christopher Pierce

Okay. where use just of way operates cars? price that is of increases don't justify ease that of putting the that industry want upgrades but been are just increase like And -- you've kind price helps to that I helps is you to through? the features kind sort consistent of the there the something consumer buses Or

Philip Horlock

up, material our recognize go of go -- Well, price for costs inflation. industry any And pieces does, a we just Obviously, value. price our that. costs we we that we we when -- to the things. we I And new got all like that, mean, want labor up, to to business. doing want that's have features, our couple to top recover of cost exciting of on and talk bring about have they customers in but we've

on based expect would as we So bring customer. the those features to the they value appropriate price to for

roll in Sometimes the or increase of year. middle the sometimes model we it separately do it we price an into annual might

it figure as the comes. will time we So out

Christopher Pierce

timeline, through. increase about grant, was talking this those then about application XXXX XXXX. but we're the can the about orders And Perfect. you Okay. come was final an until to think on million, talk EPA but just don't the because $XXX put There right over of just way a

is we're So that it on halfway look income the the halfway your close way might to level, not through. it? through like Is of about buses to that but think right have amount the the surface program hit statement dollar-wise,

Philip Horlock

number and it charges mean an here, infrastructure EPA people we extending And with place out to sold that be used get way buses But being just grants. frame, they have given time Yes, install of in the obviously, out lot there, the time EPAs long work do in to over put comes these that. got a we've there's With of and out that rhythm in Yes. a that to these period of But there. stagger through we can done. exceptional work our is. the is and the recognizes as frame we'll to it as that the given basically, obviously, know place. Yes. buses [Indiscernible] look there's customers to quickly for time because I of

You of work buses, can't customer do. a that's And bit allows -- brand-new sure if have them a like a to run for like customer what can depot -- prepare. electric installing of the gets bus that do we making let's They quite fleet and it to correctly to say. There's time

Razvan Radulescu

Maybe on presentation. our said and build XX the at looking that, Phil Slide just to of what

operation. X the on deadline to for on in be XXXX and the left, the is ground buses example, for So grant put December XXXX program Round on the these

then the deliveries now our So between backlog as and order in will develop. be comes as

ground. and the the are running kind So those on to buses the be endpoints for of dates up

Christopher Pierce

of revenue tends to as then Shlisky to half strongest is the it story, the year in that just understand, increases lastly, year about second someone time seasonally just half of but of well? I be the correct question, to the on the a perspective want second the cost And year, Michael Perfect. newer talking the from as we're

Razvan Radulescu

Yes.

year cyclicality COVID, was done half. of fiscal a there first and for X/X where X/X in second before was half the of production into about the the the So the sure, volume in levels,

and undersupply years time, constrained now state. at at supply steady several still in However, this our chain after much are a being of we're point on we more

sort of anymore number a here there. few weeks of not So that is factor and a and holidays

anymore. we big the So don't gaps see

Operator

to As ask [Operator a reminder, instructions].

to would Phil remarks. Horlock further no We for I closing like questions to call the so turn have back

Philip Horlock

you, joining the for Well, thanks, thank call us today. everyone, on Natasha, and

where and close I we today we going to ahead. where like also I I are summarize Before this call, years believe stand the in

That's on we we I year, throughout -- we the profitability quarter top by with as margin. on impressive the XX% year in same quarter quarter. second As growing an profit we've increasing can every record all-time continued profit saw we last move far through for with And and saw our QX. saw as momentum say delivering any for record of path delivered a that you

full fiscal of for year. this So full which, projecting is know, the EBITDA margin behind once a with X raised year, last guidance XX% adjusted solid percentage as we points again, year we us, base a above

a a X certainly So we're position strong years in very when at ever look ago versus and year very, think it we ago.

experiencing. the emission least here, need out extremely our the of sweet our and orders we which is our grow due strong demand we'll and that ahead still standards question us there. with Three, Two, start forward to for state albeit XXXX spot. easing, school Going plan shareholder increase of and have profitability to go on drive Four, nevertheless, some at I we have some One, demand favorable is market a an supply of factors. we powered federal call near-term mind, upcoming bus backlog support value issues end for light no and an tunnel, of is to see of from at constraints There fleet but chain unprecedented the number there's are a firm that, were strong what alternative aging in buses. vehicles. customer electric way will to

for said perfect a this buses. is As deploying school I before, industry

a grow is spots Our strong five, profits, that's from. of record one today, duty that's it well. absolutely margins, really achieving to for perfect base and our liquidity we're as And cash and sweet cycle and

in margin XX% and within in a beyond then term. to positive these couple getting with of tailwinds, XX% confident So years very and the achieving we're longer a

Blue interest we and again continued your on to next our forward updating appreciate Bird, look quarter. we you So progress in

If or have Relations, you to of at Bird, do and please contact Blue us Investor questions, our to all evening. you don't Mark here have out a any reach us Benfield. Thanks follow-up of great again from hesitate Head

Operator

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

disconnect now may your You lines.

Blue Bird (BLBD) 8 May 242024 Q2 Earnings call transcript