BLBD - Earnings call transcript Q3 2024

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Operator

" Hello all. And welcome to Blue Bird's Fiscal 2024 Third Quarter Earnings Conference call. My name is Lydia and I'll be your operator today. After the prepared remarks, there will be an opportunity to ask questions. [Operator Instructions] I now hand you over to Mark Benfield, Head of Investor Relations to begin.

Mark Benfield

you. Thank Blue Third 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

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

started. Phil? get So let's

Philip Horlock

everyone results for fiscal and call here afternoon our be to quarter. Mark, today. our our to great good share you and to on XXXX third with It's Thanks,

earnings profit to profit. all-time quarter. reported on at any that in we fantastic previous Razvan an our results will record history. through details Blue call, is third you quarter all the the our That recall that with you shortly. tell we I'm record all-time not of quarterly Well, doing delivering momentum financial the That our our slowed You'll job of for surpasses achieved a that team this year. a has our down second record a very last in Bird quarter for quarter and an first be taking pleased

quarter key for third slide with on X. the started get me takeaways let So the

this each and to the have I a best the profit past two records says, more am for As ever of we recorded breaking a particularly much of proud after for quarter. achievement come. we quarters, profit headline

in quarter. report percentage achieved in show points higher Razvan again, all third we that Regarding we I'm than line astounding are year our pleased margin as are EBITDA and three XX.X% the box, later. we increasing an And increasing guidance the also will that provide more we of you than That's full adjusted in to outlook, ago. year once the metrics very the first financial X long-term

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

quarter-end importantly, time Bird Bird the more year. That's Our X,XXX of were than quarters our at this But units. year the buses period same little backlog just first XX% orders higher last Blue a year. for net same of for three for the at firm over through Blue orders stood last than buses

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

competitively, current those from tell are this just structure compared we Now, that across while in in added of year, is and throughout bus our, very through and But year with gross incoming order price today XXXX. our selling quote win a bus This orders. with have easing being year, and should some deliveries. with we supply different rate industry we entirely this we and chain engaged bus we're constraints move see components suppliers which with in pricing those constrained prices truck additional balance the do constraints margin we the the significantly. and chassis this ago, issues are year and production Bird Blue up end our those reported can revenue capacity an select couple as of of and we are into Every reflect bus industry calendar undoubtedly easing, a as limiting have are and we of backlog

buses and thanks later. the first Program little represented more Clean These front, impact EV approaching and year, And I third backlog to our will particularly funding over detail more 'XX is a School than sales X% round delivered of EV just Bus of cover buses. the Program and impressive fiscal nearly quarter second of orders from EPAs we in $X 'XX record deliveries last Clean This electric unit timing quarter. end units, for XX% the unprecedented our of for again School beginning largely third round the of the we're with quarter the billion the billion the see of will as deliveries the really the from first program. On were are $X and EPA's of a the XXX to of at Bus round ended and

maintained of our vehicles strong higher also to these strengthened alternative-powered segment. margins our very third and products We in position this improvement quarter. in The mix owner the profit from contributed leadership further and loyalty our higher

into back business, processes. upgrading selectively facilities the improvements sheer work, manufacturing the company of the best in business and we well we strong enhancing the lean been hard installing are have process a We performance the are environment. achieving and has seen. plant-working ever performing lean manufacturing extremely Through best leadership, the And strong are market. to in workforce Bottom by invest line, just some of we efforts continuing the

alternative powered a higher margin mix vehicles. are delivering richer We of mix rich

environment We competitively priced manufacturing economic appropriately improving. for and today's are and efficiencies are

accomplished adjusted margin all $XX a As a quarter result means EBITDA of achieved million third XX.X%. outstanding with we of of an these

closer a operating highlights financial Now take key let's for and on quarter at the third the X. look slide

slightly is with present record X,XXX buses ago, We reported. fiscal sold year earnings year very highs previous many quarter in have the third 'XX, above which transformed is I As on financial performance our year. said a from last calls,

strong revenue a very However, those over third year. drove impressive $XXX last unit a sales which million, is XX% of net increase quarter

pricing and volume is in essentially a higher revenue compared of up net richer ago, EVs XX% evident only the with a mix the buses year and of So flat growth. with impact by up revenue clearly XX

of being to guidance sales general improvements adjusted third year. recognized quarter to the achieved $XX at was cash financial the call. more the over year. range EBITDA the the provide won that payment negative, last profits and for adjusted above third terms. Overall, had for finally, $XX national We was quarterly almost fourth and million showed earlier million third 'XX we That's slightly higher last was extended free XX% this than for fiscal late flow last $XX our quarter. million $XX are that earnings And explained quarter exceptional were fleets They delivered these where the significant record we in in well as in above quarter we Our while million orders transformational in business receivables QX. now and are paid quarter results and by

a are on great We trajectory.

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

earlier, X continues reflecting firm backlog our the strong seven very of of over mentioned the considerably average order in That's buses. demand months a over at and last about years at end X,XXX backlog backlog firm be worth I the raised prices about with an to rate. sales growth price third over We also current quarter of revenue, almost million As the third ago. average strong $XXX the that's our price the in 'XX. in in outstanding QX, in bus. the year. X% representing selling a Parts consistent $XX we sales first million quarter a fiscal $XX,XXX than was half selling last That's per XX% 'XX increase per saw And total with bus year higher of growth order

of in unit about buses, they of fiscal of represented to at sales mix sales first running are the we total strong the XX% Turning XX% nine the year. very our through quarter. And alternative-powered third months a

EVs year. last That bus be to Once those is a comes even major quarter a numbers. in year's in quarter. leader clear X% by quarter. alternative-power third of increased strong And bookings compared space. very in We continue No in sales, XXX Even XX% EV last total to close we third X% over EV other part the of of sold a the this the mix mix. our represents with manufacturer again, school over bus

a the EVs, is total backlog quarter our Additionally, of QX we very a record share left of backlog. with strong XX% which XXX

and the and Clearly, cover than Program. benefiting at of and Now we the first later 'XX the quarter. we're year the fiscal program, year in XX% which of impressive that's rounds had second worth the and fiscal 'XX. of status Clean revenue the two those end more I'll from than this Bus $X two of higher School $XXX second substantially deliveries orders from of an expect billion we in backlog EPAs funding million rounds, the comprises from significant

employees. was benefits details is a that later. And significant sales the D finally, United now I'm completed in full a the guidance win-win Energy bargaining the this EBITDA, higher now year. XX,XXX in is our the more to the $XXX record buses. expansion Steelworkers guidance by truly of adjusted an excited by the back a year. of midpoint very Bird third XX,XXX results, quarters with adjusted of overall for for result really stable last On a single $XX to year. which front, of Razvan our million represents of I we look we're In our million with to notably, Most And 'XX. hourly EBITDA partnership growth employees at X.X year expand quarter buses awarded forward school Department allowing full just the represents year of our summarize little for the and with on once I program the Blue cash our revenue outcome increasing with than astounding am agreement expected But six full annually outcome and less we later. is and for at labor of percentage obsession which a the free fiscal will detail $XX Union, range strong in the really that little a our in succession a being first with points collective pleased bus, collaborative flow. XX.X%, have being adjusted plans buses cover all. to to and grant production us our Type million and we raised margin initiative again raising future and investment beaten capacity This regard of guidance are increase will than That shift an from EV net

are in we achieved double record. of now which fact, midpoint guidance, the In XXXX, then we profit was at a at

XX% team's reflecting have to solidify we recent an our I'm all-time outlook from XX.X% continue a adjusted in our third too, financial the with performance raised and we quarter our of on operating profit build margin accomplishments. XX% margin, proud longer-term incredibly Importantly, EBITDA to record and as quarterly

the awarded grant that month. DOE through million the you walk were of now me highlights we $XX last plans for Let our just

that a awarded be Chains case, DOE. produces slide Blue million by Awards that under Turning facility X, located Manufacturing from former that facility grant site. represents XX% right the the [ produced products our engine foot ] The across combustion square production to of and on of a one EV Supply a converting capital grant our to we're XX converting to is award is production program of Energy Type build of based were street XXX,XXX EV and $XX on to MESC the existing the products. based Bird plant. RV one our required In DOE Wanderlodge D companies the the Office

end and Bird So the than X of commercial the XX,XXX one to our years, The XX%. The XXX out a when would with upside new Blue on production or million, on investment $XXX and 'XX. around shift with early return volume around projected start would production X capacity after is needed. build around number other the years the chassis benefits. approximately new plant Adding increased less the with span create of and buses 'XX total production of project IRR XX% total provide expected generates for launch community will project a raise this investment would production. facility includes jobs The by of a great for funding payback

which year, Now, DOE is with contract final the finalized subject to and through deployment underway December board today grand approval. are this grant negotiations

that as presents for award We outlook. excited opportunities profitable long-term the pillar are our this growth about very another

updated to providing you, hand be We apprise like look at of to financial results for now over also and our We'll at guidance 'XX. more to will our through in Razvan to third first Over earnings quarter detail. walk progress next fiscal fiscal our guidance it 'XX our call. Razvan. I'd

Razvan Radulescu

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

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

financial Blue was encourage and adjusted outstanding that you last XX-Q The another and margin. between XX-Q disclosures it XX our Bird provided fiscal is top this high the significantly our 'XX quarterly we to chain best general differences We beat non-GAAP earnings call, It Bird additional ever measures line $XX.X record and our our EBITDA to and managed performance. and regarding Blue well million contains. business results. presentation and a very quarter delivered disclosures bottom and Slide read important includes operating in challenges mentioned of both quarter as guidance the disclaimers. Our for margin and attached and of as the call fact, includes reconciliations the GAAP in today's somewhat supply material quarter the adjusted line third EBITDA with important and We for with on labor well other year-to-date limited summary appendix units driving results. with

labor complex Type number $XX revenue Additionally, consolidated job new of QX year, on number higher improved of sales, a year push than and did pricing a record Type fantastic X,XXX-unit quarter all-time actions part working million, results of hard a also to margins of volume, driven generated and D by we buses Fleets an versus prior slightly just buses. Record year-to-date parts with goods cash to increasing continued GSA and and but increased and the receivable a finished driven sales mix our for of million. due in offset as higher EV team adjusted net as negative $XX and partly a materialize quarterly $XXX accounts a prior of $XX was million which electric year-to-date The higher investment this number was higher million costs. that and capital, was million high of The $X to to buses was continued a $XXX.X XX% year's material quarter. larger units, last margins, basis, this year third million, again reduction in flow or prior more volumes, D QX by above Adjusted expected. was This of record tripled the quarter. sold we and sales mainly by EBITDA and free increased in

cash these of many expect We into end the of units fiscal to 'XX. turn by

have $XXX On the delivered at Our growth year-to-date significant end quarter tripled debt liquidity to record this with result billion, $X forward also adjusted year-to-date of nine path. zero we $XXX at position. we a revenues the was million. to profitable level of position basis steps QX million. close a close on months in And net EBITDA prior our we generated And

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

other XX $XXX,XXX a $XX.X up the on net Our of of buses. result QX $X.X mainly was up increases The very higher million, of the last great net slightly record in was and offset $XXX,XXX This the million improvements. our negative shares was increases mix the million, of $XX XX.X% the parts the compared increase The income expenses $XX Starting last well the as and a by pricing million. segment adjusted personnel X% effects EBITDA than in taken $X.X of as in our percentage driven of fiscal margins year the was of were million, parts a QX reported fiscal EBITDA above-mentioned and sustained adjusted the pricing earnings representing gross the as more quarter cost increased average the the increases of chain year-over-year. than 'XX diluted adjusted in of labor bus than versus QX, points. year, $X.XX fixed profit and four in over more 'XX the supply in cost gross or adjusted prior $XX.X call. XX.X%. walk to as cost, to the in million cost were volume higher $XX good or favorable development past XX% call. $XX driven unit QX earlier EBITDA. year units strong was offset mentioned growth Adjusted or related prior XXX due with discussed of million, prior $XX.X fiscal double shows electric million overtaking sales for Parts by by strong quarter [indiscernible] was XXX year prior all in record from earnings Record $X pricing the of per result total margin percentage improvements improvement million, over by and a revenue great demand an increased operational our year-over-year. largely These profit drives development 'XX performance throughput or for of the $X million also fiscal sum in and or to engineering of the the million, very left, was million XX%, Slide of negative from increase for specific at XX, D the $X.XX doubled. last XX.X% our performance already or last QX our pricing X.X EBITDA $XX segment and Gross to the of bus material impact as X levels. the due year level compared revenue inflationary was higher year, EV per actions was million, year, which Type of 'XX as a sales actions well record points the part a $XX of quarters. In to

Moving million $XX balance quarters. in the cash on positive the XX, have ended and four our to sheet. year-over-year slide over We last debt developments on $XX we also million the quarter with by reduced extremely significantly

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

million cash very driven The in account at 'XX receivables an stood and $XX and a million compared year margins, strong the of in was fleets flow to this at $X liquidity QX, fiscal and a operating $XXX the due million increase Our by to end ago. number built increase finished operations units improvement offset quarter. goods GSA quarter, by an large of in this

is For flow the the main units ways. in government GSA and the dealer business working capital different fleet the than two

First, the they delivery where for into transported for boxes to when are customer's and get are inspected which goods two recognize sale. we in additional an they inventory the before finished six weeks hands, is

generally longer days sustainable than today's by the buses in flows XX A Second terms is the our million available team or results payment quarters, appendix detailed $XXX four on achieved dealer XX have chart or presentation. Slide more in fleet comparison business, these over of GSA and which XX%. EBITDA of shows be depending could the contract. last our the adjusted generating over

realizations quarter, consistently increase combined $XXX Our EV partially versus revenues million to have a been with above sales in strong year. every last pricing due

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

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

Overall, negotiations guidance and bargaining XX, the with results 'XX our slide outlook Before UAW result, in for plan. more which share our middle and workforce profitable us you year-long place believe give fiscal and about win-win wanted mid on the we the growth makes of agreement. talented have even with updated achieved stable a for to will Bird we collective our on talk first we an we required to work long-term attractive updated Georgia the Blue and our

contract two X. in from year The years XXXX scope. X with is increase the another a year followed June and in people X,XXX in X% approximately average June now have X% to by XXXX We XX%, first wage year in

We net X% are sharing profitability each met certain for of thresholds are profit also income introducing year. of on

in June the of and XX, per rate company on intend bonus pass want pricing for you contributions to to of the share the strengthened a stability $XXX including XXX(k) basis this through with CBA slide increased one-time to with of we a expenses, 'XX the we fiscal profitably true up forward recorded over updated time come. the of employees. the our our employee actions. the revenues In summary, provides also our grow equals in us and to paid In guidance. We go cost approximately we run company On accrual. In sharing years to ratification believe necessary we QX, workforce total, number X% our profit the customers continue to and

with results range revenue our is doubling the to ever. increasing prior increase $XXX of are and $XX million an our $XXX year million billion or increasing our by record This significantly million. we to XXX% $XXX year XX% $X.XXX are We over to prior million EBITDA best adjusted a of

delivery We the by are timing requested year Phil EPA due more and cover the the in this to will detail of outlook sales units timing. in outlook. reducing our EV XXX for order about

we of XX%. quarter $XX $XX expect $XXX to million of or $XXX the adjusted increased and to million QX, Given million in range revenues EBITDA anticipated to XX% this headwinds in and factor anticipating growth in million last the

over a $XX target $X.X of adjusted million and flow our $XXX million $XXX Moving are summary, forecasting in up line to adjusted billion significant the to of free million of typical in with million adjusted cash of EBITDA. in approximately XX% XX% Slide $XX we improvement year-over-year to XX to range with EBITDA revenue

accelerated are large a the we end fiscal reminder, XX XX-K reduce from XXXX, to will requirement filer of status days. which year a filing to by our from As Form XX moving accelerated filer

we our last in XX, XXXX XX-K call. announced November our Slide the to first call we guidance. result, a a hold in plan wanted file of as look to you As terms earnings year-end Monday, fiscal On fiscal and earnings XX, at 'XX preliminary on give

maintain yet than and We have both a of the be stance in number may headwinds, a cautious and tailwinds prior we a conservative bit less years. X

have As and still stable very pricing demand, high industry tailwinds, we strong backlog.

bus only with industry We best-in-class now the ownership. total clean have cost propane-fueled the school in fuel and of

road are EV segment also to with close three and mix will the and the the buses significantly the our Bus fiscal of School improve second in sales half of from round Program the X,XXX two Clean We in orders EPA on leading 'XX.

pressures as there worked low school summer infrastructure are removing chain some still requesting relatively supply overall in sales EV The bottlenecks components. made and supplier of many key in for are great have 'XX headwinds, and we XXXX. EV the for present. fiscal while material And plans starts still first delivery progress of is we before improving cost times inflation half the expect As still being the is customers at fragile on. production and finally, And

the in range Revenues to year We'll fiscal or next loaded during expected X,XXX and fiscal adjusted you the we XX, early, back-end half. XX% in scenarios X,XXX approximately we earnings the modelling very into to X,XXX long-term slide the also of raised EV still the also backend it's in on year-over-year outlook sales While call units XX. On our to $X.X in range and million, billion range on path XX% XX% as more our our a $XXX of to over get loaded provide to insight XX approximately EBITDA second 'XX follows, there. over approximately in improvement. and November 'XX $XXX increase million range of of units. to billion $X.X units X,XXX are update wanted

schedule updated again highlighted the 'XX the long-term we our fiscal our of as margin are guidance $XXX teams at XX% outlook 'XX in from the hard and work Fiscal shows way raising we EBITDA short-term EBITDA XX% delivered Looking plus we on and through past great our had bar for margin adjusted our all ahead the aspiration. and outlook. already strategy, as today replaces million follows. previous adjusted Therefore, execution

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

drive our long-term XXXX, Beyond growth. to target remains profitable

to Now even higher levels.

$XXX billion $X.XX Towards to to to or X,XXX $XXX to XX.X% X,XXX which of in XX% million units, and best-in-class XX,XXX EBITDA XX,XXX of $X billion million revenue, of EVs to comprising are generate at levels.

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

Philip Horlock

thanks, Rasvan. Well,

that our our full outlook. results As of quarterly year explanation great was a usual, and

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

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

years, increased XX% to to For XX% and beyond. margin. fiscal margin plan we XX% we guidance, the then range midpoint Then the full year over the next to and adjusted our few just of EBITDA to 'XX, a earnings grow

feature in Following these months we have just to belt, this will to this three-point seat and point, and buses. On equipment. quarter core school manufacturer significant on our our of provide standard belts, C plans. strategy forward continue of couple bus first we fourth make our seat slide to highlighted This year, and all strategies to has recognition leadership the Type move our D a drive effect announced of in standard the school take of will safety calendar a three-point been ago will a we year this be key the margin transformation on Type and

following bus on a with driver's standardization D bus with airbag coming mid-XXXX we C Type this are Type Now a a the later. of our little

and with actions safety feature differentiate this more pipeline We in first to our the children safety initiatives We our safety to product market and of us. will show many will lead our we and development commitment both drivers. of safety that be have to intend the our

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

just in funding. anticipated rounds EPA to the of was close $X by acceleration almost be electric school two deploy the to are the an $X billion. the the which billion the $X to $X we of billion program, to funding buses. year $X for deployed as reminder, provides are appears powered still of total starting second There bipartisan funding billion a funding, than the after EPA this billion of more That's year provides which second propane referred totaling more a year, As to is of and five-year XXXX program, first and be by

are XXXX left awards program two the grant the round confirmed at of shows million. $XXX chart, As

million from $XXX a original level that's the fact, applications high of plan submitted. due grant to increase the In

propane cover the the grants these and A, of April buses. awards. And and winners this delivery electric to C awarded which school buses XXXX these X,XXX buses earlier year, until D will using have about take Now, type were

immediately the these volume will the delivery anticipated these of sheer Approximately will about body covers Looking again. two awarded now million, June due at buses And the round the take of been program, totaling all million EPA had which round middle the chart school three award of and XXXX be to announcing applications. the $XXX after types rebates, results, winners have until its is buses. than to X,XXX again, also rebate more program, part which XXXX $XXX announced

to total, this ahead rounds propane us and in X,XXX of help buses. And and terms orders around fund deliveries. and of three all virtually two powered will in So EV is

deliveries totaling expectation orders these our fiscal approximately that 'XX. of Blue X,XXX Now, win buses and fiscal XX% in bus Bird with 'XX around should

two many deadline prior with Now, second from these until finalizing the the for first likely year, needs bus as charging ordering. begin significant XXXX, deliveries utility with as customers 'XX calendar deal and late the infrastructure quarter deliveries as rounds of won't being to June

for the timing be EPA's by the indicates However, rebates three orders round XXXX. placed purchase that must year-end plan

So calendar expecting we surge year. an this order late are

amounts the $XXX looking our Finally to right XXXX hand million. to which program, vehicles at earnings introduced the I last heavy-duty chart clean, call,

the Program. by our being $X that EPA's to is of billion Now, this great funded Act additional X% buses. allocated from beyond the is Clean EV that's the school the news accelerate Bus up of adoption Reduction funding $XXX School of Inflation buses. That's the EV is and And to million to school

EPA's the the adoption. estimate customers for for this should announced industry. buses. we is our for should news buses until school EV duty their for buses around Great With news that great with be having to our our and of The program school recognized as January Now, from children. School EV winners focus X,XXX total February on XXXX perfect XXXX, in take news great Awards delivery Buses. school cycle orders having

orders years of fund these Bird opportunity or the next over X so. to around X XX% deployed buses $X.X to with represent So these types of X,XXX for of billion buses around we school Blue X,XXX expectation EV all approved a our EV over have and and great totaling be years programs next body around a about school total the of propane winning

diesel-powered communities propane-powered let's remember Beyond we another local in act have clean adoption the XXXX, the 'XX, funding removing I'm on bus by here. mission. safe EV student of let that, The of Razvan earnings Bus children keep and emissions slide replacing with XX. from and designed and too and go some state the accelerate to and a now more of buses our the air guidance fiscal for me call from outlook at than powered older wrap funding be Clean the pollution guidance including of buses. buses. showing transportation? took was you important for raised safe midpoint through business the can our School the And up agreement What harmful, road $X bipartisan to them signed So metrics and school still billion, key to you and clean those

will a X% fiscal 'XX. $XX million for fiscal which last guidance new is XX% 'XX up be million time. is the profit at $X.X adjusted record a double that made was billion Blue from EBITDA Our volume at Net of outlook buses Bird, year, we revenue $XXX record over XX

margin we XX% on ahead up X.X ago. years Importantly, fiscal is the percentage fiscal just years of which from of several EBITDA been had couple with points 'XX sharing you are we 'XX, plan a in planning a

XX% this We three achieving margin in first adjusted quarters recording an 'XX. have confidence after of the in impressive margin fiscal EBITDA

that from 'XX This timing the late recent at XXX due the EVs year. order pace funding slowed have fiscal growth sales first a to from still two XXX to the over we unit being fiscal our orders deploy new lowered bookings 'XX. moved represents XX% it XX% alternative to X% time The sales. and fiscal at from of to nine for XXX deliveries the of extended last impacting of buses vehicles within EV mix and exceptional benefit round 'XX a in now Consequently, forecast and year is deliveries purely buses. buses from granted mix with should customers this for noted three awards of an Now, be fuel has EPA months strong did by of total healthy is

an year however, three towards end plan. As bus I be timing mentioned this do rebate XXXX earlier, order EPA's December as of round we surge the the for by expect orders submitted must

a following fleet bus see profit couple supply near-term to still rate substantial of the our chart, challenges improve through aged XXXX, there. to has that's robust chain by there industry, business After the the end lot As years of over continue residual XXXX. 'XX clearly, and a that period. ACT is market 'XX. the forecasting is of exceptionally transformation And fiscal and well. pent-up the our a in news compound is of profitable in the end forward And growth ahead. business, great a sales not for annual across look from We'll and X% on fiscal you is XXXX low With industry right our performance of the demand But operating sustained executing units given. ability to for the company the growth is performing great outlook. impacting these the news build a demand auto all can

this to in outstanding critical partners than higher reflecting our fiscal our points our a Well, couple EBITDA recall ago want objective just X for with nearly I years EBITDA their in employees our that as and stated reflect percentage record to was thank now margin for our to have who all-time delivering margin. quarter, updated we an XX%, of dealer hard of the work profit You will at are XX% X,XXX XX%. third to achieve 'XX year long-term as at guidance long-term margin least a all dedication success. well outlook an

moderator back fiscal to for we plan be Now, honor I pass briefly long as like cover our best the company and for close market end move After CEO a today. to announced you the in privilege session, and would Transition I Q&A this CEO work XX will It's stepping to at year. with Bird, I the the at and that to the slide business. and this years before so Chairman to been of the XX lead team an down Blue great of

his XX, effective year. from very over the pleased of Britton September me our I'm that taking to will start fiscal which is President, confirm Now, be new with our Smith, appointment as CEO

on and We have this the taking I increasing immediately be responsibilities to working with the Britton board transition Also how have within finally time. a over stepping down on will should I plan be succeeded is Chairman leader during and almost X is very Britton knows the promoting staying transitioning and effective continuity. a who past also from leadership that on Kevin ensuring will in our Doug with been together by thorough a run the transition year, board. say immediately. joining will business seat, Grimm be years be the after

I great to staying a like on Chairman's the within has for our better support and be having Doug as the thank have during director. the given ensuring all great XXXX and very board well, for a those who the continuity. transition knows CEO years. on Now, built the be success from board the Kevin, couldn't for Kevin company standpoint, and board be friendship, as will since been Again, will a From over coming time we me he my personal

my for now be will back hand CEO. call, it to last this I'd session. So as moderator earnings Blue Bird Q&A to like one And final our

Operator

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

Michael Shlisky

my Good afternoon thanks taking for questions. and

on and the retirement. of Phil, Of course, course congrats

Philip Horlock

Mike. Thanks

Michael Shlisky

the question a Hey, to or There's Hey. start to course. But I'll cover Sure, a here. long-term here. with there's lot two of cover guidance. lot about the

I of quarter, and past about $XXX This million margins, you're revenues, guidance and just in EBITDA that's $XXX given near I line guess would now, base and of long-term grow million, expected mix forward, much. you EV worth five-zero XX% general, sure XX% looking it revenues at that think EBITDA, almost doing the more the I'm what anywhere percent. your implies about incremental fixed top additional on higher what the did XX%, won't XX%. actually than I in going have the cost but less

out hit EV go XX% if So the you $X to know, billion know guidance and potential you but curious, there's think I get I'm out, do above guess put I expect. mix you as do you plays this you that just

Razvan Radulescu

is for question. the thanks Mike, This Yes, Razvan.

the as going alluded journey, on look his comments, So beyond are in obviously we hard as for our as future, he we we numbers. this at are mentioned Phil executing XX% plans and to and firm potentially

plan. are factors long-term of However, that strategic also are this there part

the and with We we drive will increase mix, lower with are EV which lower this parties the bus a then per the hand-in-hand in And for compared margin making modeling increased which price adoption will the our a end of conjunction cost, over lower to drive are goes today. EVs. definitely, what time mix in

time. we have, those we and you with give we journey can on that to that more share are happy So updates I'll at as working you and that be

Michael Shlisky

Sure. Okay.

note being XQ than you're XQ that that into the a it, here. really XQ outlook the looking time on the little precedent, XQ suggesting up Outside of any how the figuring a the starts? what's you than you just just a Everyone just revenues into is quarter. in have a wants somewhat you deliveries So their the lower having be pandemic maybe backing EVs three previous bit lower down at quarters, school can out did hard just of I mix similar lower have the from before and again does put revenues just getting a first there may or

Razvan Radulescu

Yes.

quarter, fourth the because the place than the shutdown, third quarter of less ago. Mike, which in we So X July one has put workweek X years

So workdays. of there is number less

about significantly has that a lower fourth given number as particular quarter, this buses. XXX, drives for selling average units lower price financially by However, by me revenues of both Phil, and EV and EV the mentioned,

Michael Shlisky

just Can and funding buses last passed, of for other on or candidate it. kind the risk starting that out programs kind me, to or there's federal away like there EV a the Maybe that's of you political are or XXXX? reversed passed one EPA whether going to trying out feel taken certain of the what January be allocated? I'm Got be any some is will has the If for been today. to presidency wins, environment. one it. Got and

Philip Horlock

we mean, allocated amounts have them. those way. obviously, Yes. but it here. mean, know, They've of at lot you Mike well, awarded. it's things I Phil a can already actually been this I happen, look

know second the It in the I no was there transportation. they parts, the easily. talked pretty there, talking through you went their And, to agreement getting. about out in customers it's school was around and was infrastructure 'XX, it. school objection just all both So finalize Remember, having children allocated fact think where it right they're know, about round I a They bipartisan plans. what of that one

environment to reversed. it been difficult so So for difficult for be it's I for - much would so that our very for it we There's to very be think support children. and feel good much the so

Michael Shlisky

And again, will there. for thanks congrats. it Well, Okay. answer. I leave that

Philip Horlock

Mike. Thanks

Operator

Our next with question Irwin Roth Partners. Craig Capital from comes

Craig Irwin

Hi, on for actually Andrew Craig. guys. It's

so And congrats the on retirement.

Philip Horlock

Andrew. Thanks,

Craig Irwin

question First gross. Yes. on is

some in revenue. posted margins with on some the strong you gross question strong the really the -- margins, First quarter with

You kind seeing of and some and guys constraints here. still kind of cost your you are with guys inflation are suppliers are seeing engaged

would on any be So kind you where just update inflation going can you see of and great. can provide long-term the margins cost

Razvan Radulescu

Andrew, this is Razvan. I'll take one. this

So we in that terms headwinds fiscal - of tail are into of 'XX. highlighted gross margins, some seeing we the

environment to basis We going finalized have going in do the inflation is at also on just that is and USW cost, by forward. stable point a this cost factors, new a revenues about with pressures labor run still of collective entirely economic driven us the of rate some bargaining not in X% terms but suppliers time. agreement see also from general material We our that continued

balance regular two and margins. have there. the we At market have increase a will on on that continuing inflation factors to trying inflation same our to material time, the and prices labor we're put to the we we So cadence, pressure are

for deals earnings fiscal entire in visibility our we next So into and provide exact in for be guidance point the 'XX. the general time, at this a we'll provided happy call to when the more with we more and 'XX fiscal insight existing range backlog have

Craig Irwin

me. had in still days ground. engaging there. Great. one one tracking we're customers but We're I some early on you think of the had last business, kind Thank the quarter second said you for you I you. And know

now kind of fiscal So the is third quarter? there after any update

Philip Horlock

really, not Andrew. Not,

what think said We're developing development is now we the a I in last mode still same. prototype. quarter

with We see received, chassis. prototype well show, walk in ACT a customer show we Big and at and May, have Truck group come a recognized the back that active through showed that well very

getting extremely They feedback year. test. we're in now, right then later commercial doing for say I'll it. a We it and comes road want They when going this into want looking to into be we several their the own optimistic But like this customers. sure. do really what a to product that customers very on and get out market, to us, it's of our it we're to is validation we're those to got about customers interested who that's hands the product. goal So 'XX chassis We that later product feedback, give great

Craig Irwin

Awesome. to the hear. back Well, results I'll on the and great strong in that's queue. Congrats hop

Philip Horlock

you. Thank

Operator

with Chris Needham. Our next question comes Pierce from

Christopher Pierce

receivable on wanted just model had admittedly, afternoon, years. accounts good to doesn't business, this that ask you up bump prior we Hey, back go talked national far. everyone. see in that fleet don't you we But the know, in my I

Like, and what's and you right with just to business share I'm more winning the for Bird. the know, are are national So winning these your that EV you engines think or driving curious, Blue as about, well. you national diesel fleet fleets propane way business of is

Philip Horlock

I Yes. it's of mean, really all above. the

us in we national We product more fleet been are definitely have than participating this business recently. fantastic Propane year. has a for

As that. total for don't know cost we vehicle a fantastic earnings said in It's propane they our of before, ownership competitors calls, a these have and operators prior product. fleet

about had we've success our So very Electric excited the great is product. same thing, there.

third getting a of those for fleets have products hands. been for good been rest who the the start. very great is think school that's news customer's us market terms time want thing in in back delivery versus I And we for products of that's the

to with that. by well this intend doing So we very And business. I way, we're think keep the

Christopher Pierce

then... And

Philip Horlock

isn't a going to intend business We capability I us. of for us it's year we've one turned forward us. intend this off a that retain We as up good to interest. keep year this said, this and with the amount for reasonable business this for

Christopher Pierce

Perfect.

market know players time. answered bus in You I three the because has follow-up trouble in had point just my the of delivering diesel at this one

from then I about recently on you comments And presentation, at ACT emissions that, in sort that's just XXXX a the and know, know, level other you increased if talking you diesel these talk that something know you adjusts I and, and for just Is looked other about of up at share? fuel just industry diesel from But the something perfect. time a frame or industry. I emissions your, over competitors. Expo didn't taking guys buses is how know, I same talked to the the there players not pick sat in I was diesel having Okay, everyone you it you that Can get concern to alternative to in of some confidence and know long of that didn't emissions gives there didn't tighter specific in time.

Philip Horlock

it one without absolutely for a It the increase the engine. to you raise second support, there. of It's very the lot stringent emissions the very cost significantly In hardware diesel XXXX, the will such costly. get very requirements that engine on difficult of diesel it's meet

propane requirements. meet product our I'll Even part, to today XXXX engine. meets to the emissions it, the engine requirements. zero those small emissions emissions and gasoline our electric get a meets all is Now, there is call quite trying fully Obviously,

vehicle. engine, diesel is Our competitors a an have a don't All They have electric engine. engine. propane don't a have gasoline they

-- our think I a today level talk vehicles I going for different from sell when quite mix I to the their So diesel story up a of get at about they're And at comment remind non-diesel. That's competitors just for we XX% the are the mean, essentially you're diesel our who leadership, XX% them. business. up sales, of different are that

it's XX% non-diesel. So

speak. to So

So story. for them, it's quite a different

We're well excited positioned it. very we're about it. for us For

exclusive even gasoline propane have electric. and products and in We

because We good have from Cummins. exclusivity we're getting variety by default only by and one the Cummins

in position. we're think I So good very

Christopher Pierce

detail, the soon. appreciate I Good. talk

Philip Horlock

bet. You you. Thank

Operator

Craig-Hallum. question from next comes The with Eric Stine

Eric Stine

any been I if jumping repeat around, everyone. calls on Hi, multiple I've so I questions. apologize

outlook guide timing school buses, wondering, for the you out an versus on bus out implied also Just push labor of tempering guess mentioned know, be the QX update your down the being dates you you funding to clean the funding, the the of first that some electric reason the for year? curious, for for or three you're or just that pushed of EBITDA a given quarters given have agreement? the you just I EBITDA Is

Razvan Radulescu

I'll take Razvan. is that. Eric. Hi This

several having So Phil addition for by in we prepared the EV which also me have times, June. in units USW, concluded to and the as in guidance, lower mentioned remarks, QX

revenue. of rate USW starting in run the is QX So we impact hit have above impact the of full agreement will X% and to the

So for in from run will be QX rate indeed, impact there an that. the

Eric Stine

that you'd There addressed. me question is already you'd already example - Yes. an Okay. of asking a

see fiscal three also I what your on for that. expect or you put know late pick know, this talked for headwinds, before right December that just guiding maybe you fiscal being to buses the fiscal deliveries Is until early of EV even rate for the above And you likely would run simply you're 'XX, order of here those curious, about, this 'XX because it? last Well, though quarters are the side you fiscal So sorry wouldn't you for going way up year, 'XX. one to the 'XX. an about you're where but think be conservative or

Razvan Radulescu

Eric. Yes,

for fiscal So for we give. forward, guidance We 'XX, lower half a we loaded we X,XXX. back-end range in bit half. less that more conservative of to as And becoming X,XXX with the higher, as of volumes guidance EV first indicated, provided will we in definitely, a see a our said, we're going the second

now, call. the fiscal good both fiscal ranges an put right there. 'XX, and we'll of units, obviously, develop, give we'll as about things terms EBITDA. And EV you the preliminarily the in for pretty in 'XX But feel and we fine-tune earnings we next outlook update So revenues out for

Eric Stine

Okay. Thank you.

Operator

Bank next question Our of America. Sherif is with El-Sabbahy from

Sherif El-Sabbahy

afternoon. Hi. Good

Just given...

Philip Horlock

Sherif. Hi,

Sherif El-Sabbahy

have, the now we significant about of allocation optionality that forward? sheet how capital balance you should think Much going

Razvan Radulescu

is Hi, This Sherif. Razvan.

outlined our two calls earnings capital we strategies allocation ago. So

been once finally million. negotiated And approved the we've from that. awarded million X the $XX since it's Department will then, the we board $XX Energy with the by years over for DOE, of fund However, Grant next and Mesc

expect you will free evaluate update for we we we return, our we capital has cash generate as will opportunity next flow. have the to of and strategy, deploy a long-term internal fine-tune to the significant allocation a - our the at following project great are earnings so well. continue all But rate give This we opportunity deploy to time, we call So probably an same to growth. And as in that the great capital.

Philip Horlock

You're Sherif? still online

Sherif El-Sabbahy

Thank you.

Philip Horlock

Okay.

Operator

questions, Horlock turn for We have call I'll comments. Phil further over the to no closing back any so

Philip Horlock

all the to of on us joining thanks and for Lydia, you, call thank today. Well, Okay. you

to close time, we believe I I my today, of as last this we where record last we in very third margin and profit for where going. guidance quarterly like all-time XX.X%. Before quarters are for guiding a with I summarize When mentioned behind saw are And earnings this call profitability as margin. the we a row in strong that's XX.X% we today same full then quarter us, impressive a final year's a I earlier, raised where we've the the an quarter With stand throughout base and you points the to million a and of $XXX X.X record profitability. we've of EBITDA continued be full to the move through a each year, growing increasing path year, this momentum are delivering on year, year adjusted above and percentage sixth

the and confirmed fleet us out of result, going by years made D for orders move again an as it we our And following as double we've as spot. demand the chain there. We bit, shift. at market is are go. the that. you and now forward record financial buses. and production pointing In the total structural but you a and projections And that's I demand record build our see absolute factors backlog will the a we'll for applications we've ourselves three we that fantastic Number as can ahead a an we forward. data is Type The still buses. These emission need unprecedented have ahead. that baseline And never been vehicles competitively deliver for I and see margins, bus experts received a who last ACT the with us we've volumes four; then that's the our record increase help think growing. electric single we the awarded obviously five, and stay seeing to and shown firm and XXXX we're year bipartisan capacity of that Look six, are there. standards aging we're spot. Number we importantly, Number and for industry Upcoming we've EV DOE way these allow for demand to we round That's tailwinds will great running They investment two move base sweet number a seeing that customer round want by ACT and look these support have, strong to albeit our federal we're there's units alternative-powered on little profits, us record easing will out strong outlined state of forward got electric grants just had remembering all you favorable EBITDA think bus fact, on full sweet definitely the electric by sales showed forward. again, from mean, the shareholder today. extremely and customers company. here, and a it's capacity improvements constraints we our achieving trend increase Supply some worth right that moving that one, us by with we grow was very powered improve now. year's value to are cash in for and That's we profitability is to plan, the opportunity we worthwhile why our the which increasing record grant industry significant drive have it's forward on And our reminding before. and have of right that that and outlook XX,XXX liquidity

and Bottom go of industry a has then as long-term. ease. years XX% of our constraints than never 'XX. provided the we at midpoint the we EBITDA to in achieving confident guidance are And million, to Blue great margin look our in $XX tailwinds, positive say, million fiscal on XX% that's chain very stronger for Bird We a supply positive, $XXX first And we have these I momentum. took been of fiscal in with couple So range have a 'XX. the and higher line,

appreciate great questions, your to Benfield. thanks of a the again you on all we Bird any all you to in and and look Have our evening. earnings Blue So taking call. contact our Britton Head interest next And follow-up continued Blue again Should us Razvan Relations, of update Mark please forward don't hesitate progress Investor at on Bird. from to you have

Operator

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

now line. may disconnect your You

Blue Bird (BLBD) 7 Aug 242024 Q3 Earnings call transcript