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BLUE BIRD CORPORATION (NASDAQ: BLBD) Investor Presentation December 2024 “A Leader in zero- and low-emission transportation”
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Introductions & Forward-Looking Statements Financial Results Outlook and Guidance Q&A Important Disclaimers Forward Looking Statements This presentation includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations for future financial performance, business strategies or expectations for our business. Specifically, forward-looking statements include statements regarding guidance, seasonality, product mix and gross profits and may include statements relating to: 2 • Inherent limitations of internal controls impacting financial statements • Growth opportunities • Future profitability • Ability to expand market share • Customer demand for certain products • Economic conditions (including tariffs) that could affect fuel costs, commodity costs, industry size and financial conditions of our dealers and suppliers • Labor or other constraints on the Company’s ability to maintain a competitive cost structure • Volatility in the tax base and other funding sources that support the purchase of buses by our end customers • Lower or higher than anticipated market acceptance for our products • Other statements preceded by, followed by or that include the words “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “target” or similar expressions • Future impacts from the novel coronavirus pandemic known as "COVID-19," and any other pandemics, public health crises, or epidemics, on capital markets, manufacturing and supply chain abilities, consumer and customer demand, school system operations, workplace conditions, and any other unexpected impacts These forward-looking statements are based on information available as of the date of this presentation, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. The factors described above, as well as risk factors described in reports filed with the SEC by Blue Bird Corporation (available at www.sec.gov), could cause our actual results to differ materially from estimates or expectations reflected in such forward-looking statements.
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Introductions & Forward-Looking Statements Financial Results Outlook and Guidance Q&A Important Disclaimers Non-GAAP Financial Measures This presentation may include the following non-GAAP financial measures: “Adjusted EBITDA,” "Adjusted EBITDA Margin," “Adjusted Net Income,” “Adjusted Diluted Earnings per Share,” “Free Cash Flow” and “Adjusted Free Cash Flow.” Adjusted EBITDA is defined as net income or loss prior to discontinued operations income or loss, interest income, interest expense including the component of lease expense (which is presented as a single operating expense in selling, general and administrative expenses in our GAAP financial statements) that represents interest expense on lease liabilities, income taxes, depreciation and amortization including the component of lease expense (which is presented as a single operating expense in selling, general and administrative expenses in our GAAP financial statements) that represents amortization charges on right-to-use lease assets, and disposals, as adjusted to add back certain charges that we may record each year, such as stock-compensation expense, as well as non-recurring charges such as (i) significant product design changes; (ii) transaction related costs; (iii) discrete expenses related to major cost cutting initiatives; or (iv) costs directly attributed to the COVID-19 pandemic (3). We believe these expenses are not considered an indicator of ongoing company performance. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales. Adjusted Net Income is net income or loss as adjusted to add back certain costs as mentioned above. Adjusted Diluted Earnings per Share represents Adjusted Net Income or loss available to common stockholders divided by diluted weighted average common shares outstanding (as if we had GAAP net income during the respective period). Adjusted Net Income and Adjusted Diluted Earnings per Share are calculated net of taxes. Free cash flow represents net cash provided by/used in operating activities minus cash paid for fixed assets, Adjusted Free Cash Flow represents Free Cash Flow minus cash paid for (i) significant product design changes; (ii) transaction related costs; or (iii) discrete expenses related to major cost cutting initiatives. There are limitations to using non-GAAP measures. Although Blue Bird believes that such measures may enhance an evaluation of Blue Bird’s operating performance and cash flows, (i) other companies in Blue Bird’s industry may define such measures differently than Blue Bird does and, as a result, they may not be comparable to similarly titled measures used by other companies in Blue Bird’s industry and (ii) such measures may exclude certain financial information that some may consider important in evaluating Blue Bird’s performance and cash flows. 3
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Agenda 4 School Bus Industry Overview Company & Product Highlights Growth Runway Investment Highlights FY2025 Objectives
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Investment Highlights 5 EBITDA margins of ~14% in 2024 and 15%+ in the longer-term Beneficiary of $5B US Government’s commitment to the electrification of school buses Product portfolio further diversified through introduction of EV commercial chassis offering Reducing structural costs through Lean Transformation Leading market position in alternative power and electric school buses Pricing aligned to market economics and volatility Strong industry growth ahead with a backdrop of healthy funding and an aging school bus fleet Profitable Growth Reducing Costs Expanding our TAM The Leader National Commitment Countercyclical
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School Bus Industry Overview 6
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Blue BirdThomas IC Lion Industry Highlights 7 ~10,000 School Districts ~3,400 Contractors School Bus Customers OEMs High barriers to entry Highly specialized product -- Complex state and customer requirements -- Dealer and service network -- Customer relationship driven business Demand Drivers Population of school age children increasing -- Increasing average age of existing fleet – Federal funding for clean school buses Relatively Clear Funding Sources Property taxes are primary source of funding; volume tracks housing prices 500k+
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Type C & D School Bus Industry ▪ Industry avg size is 30,500 new units annually based on Polk registrations ▪ Total fleet of school buses is ~515,000 units and average age is about 10 years ▪ Industry size is driven by: ▪ Number of school age children ▪ Age of existing fleet – most states set 15 years as a replacement target ▪ Average ridership per bus ▪ Funding – primarily from property tax 8 FY2023 industry expected to be ~27k units as industry production capacity is still constrained by supplier shortages; core funding and demand is healthy at pre-pandemic order levels Source: S&P Global Mobility (formerly Polk) VIO, based on Type C/D school buses and non -school buses in US/CAN through Mar. 2024
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- 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Fleet Age Profile Supports Elevated Replacement Demand ~570K School Buses on the Road as of March 2024 9 ~270K buses in service for more than 10 years supports high annual replacement volume 47%+ of School Buses are 10 years and older! Source: S&P Global Mobility (formerly Polk) VIO, based on Type C/D school buses and non -school buses in US/CAN through Mar. 2024 Low replacements due to supply chain challenges Average fleet age ~11 years
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Company & Product Highlights 10
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Introduction to Blue Bird 11 Micro Bird JV Facility (Drummondville, Quebec, Canada) Parts Distribution Center (Delaware, Ohio) Corporate Office (Macon, Georgia) Blue Bird South and Assembly (Fort Valley, Georgia) Dedicated Manufacturing Footprint School Bus Industry Products ▪ Headquartered in Macon, Georgia ▪ Leader in alternative power; #1 in electric & propane school buses ▪ 60%+ of Blue Bird sales are non-diesel; <10-20% for competitors ▪ Full range of chassis that can be offered to third parties, led by EV ▪ Manufacturing footprint strategically positioned to serve the entire U.S. market ▪ Dedicated dealer network with more than 50 dealers and more than 250 service centers Type C Buses (Conventional) Seating Capacity: 36-83 Fuel Types: Diesel, Propane, Gasoline, Electric Type D FE Buses (Front Engine, Transit- Style) Seating Capacity: 54-90 Fuel Type: Diesel Type A Buses Seating Capacity: 10-30 Fuel Types: Diesel, Propane, Gasoline, Electric Type D RE Buses (Rear Engine, Transit- Style) Seating Capacity: 66-84 Fuel Types: Diesel, Electric Blue Bird offers most expansive range, from 10 to 90 passengers with multiple body and engine choices
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Proven Leadership in Clean Technologies ▪ Proven track record of leadership in new technologies; more than 60% of unit sales are non- diesel ▪ Leader in electric and propane- powered school buses; the future of school transportation ▪ $5B of Federal funding secured in the infrastructure bill for electric school buses will accelerate adoption ▪ Launched its Blue Bird Energy Services and Clean Bus Solutions JV business to provide turnkey charging infrastructure solutions for electric school bus fleets 12 Trusted lower-emission school bus brand with a proven track record in the school bus business
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Significant Federal Funding for EV School Buses 13 EPA CSB Round 2 (2023 Grant Program) Final allocation of $965M Total of ~2,7001 school buses (incl. 62 propane) Winners will have until April 2026 to take delivery of buses Deliveries in 2025 and 2026 The Bipartisan Infrastructure Law of 2021 authorizes EPA to offer rebates and grants to replace existing school buses with clean / zero-emission models – $5B Funding over 5 years We are well positioned to capitalize on these opportunities; Blue Bird expects to win ~30% of Type A, C and D orders EPA CSB Round 3 (2023 Rebate Program) Final allocation of $955M Total of ~3,9001 school buses (incl. 459 propane) Orders to be placed by Dec 2024 Winners will have June 2026 to take delivery of buses Deliveries in 2025 and 2026 2024 Clean Heavy-Duty Vehicles Program ~$650M for School Buses Anticipated Award Selection December 2024 Winners will have until January 2027 to take delivery of buses Deliveries in 2025 and 2026 New Program announced, utilizing Inflation Reduction Act funding 1 Includes Type A, C, and D awards EPA CSB Round 4 (2024 Rebate Program) $965M for School Buses Application period open: Sep. 26, 2024 – Jan. 9, 2025 Anticipated Award Selection May 2025 Orders to be placed by Nov. 2025 Winners will have May 2027 to take delivery of buses Deliveries in 2026 and 2027
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Federal EV Programs: Expected Order and Delivery Timing 14 Order and delivery periods are lengthy to allow awardees time to finalize infrastructure needs EPA Round 1 EPA Round 2 EPA Round 3 EPA Round 4 EPA Round 5 CHDV Complete Application Award Order Delivery FY2027+FY2026FY2025 Application Award Order Delivery Application Award Order Delivery Application Award Order Delivery FY2024 To Be Announced
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Build Complete Ecosystem for EV School Bus Deployment SERVICE & SUPPORT Connect with dealer and EV system provider to support and service bus throughout its lifetime DEPLOYMENT Build and deliver buses, as well as offer driver, safety and technician training services TELEMATICS Set up a solution to track bus performance, diagnostics and more INFRASTRUCTURE Assess infrastructure needs and connect to the right partners for energy sourcing and infrastructure installation END OF LIFE Determine recycling program for used batteries after use FINANCING Identify financing through grants, tax breaks, subsidies or lending services BLUE BIRD EV ECOSYSTEM ASSESSMENT Determine what bus best fits the customer’s needs based on terrain, climate and route planning V2G/V2X Create vehicle-to-grid plan with revenue potential and utility involvement 15
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Fueling Our EV Long-Term Growth: Fleet-as-a-Service JV 16 Strategic JV created to accelerate EV adoption and provide recurring revenue streams ➢ Formed “Clean Bus Solutions” – 50/50 JV with Generate Capital and Blue Bird to accelerate electric school bus adoption; exclusive to Blue Bird customers and dealers ➢ Buses purchased By JV through dealer network ➢ Offers affordable monthly service fee for Blue Bird electric bus fleet, charging infrastructure, associated planning and customization; other service add-ons available ➢ Eliminates upfront capital expense for EV purchase and provides customer peace-of-mind from turnkey solution ➢ Provides Blue Bird and dealers access to new recurring revenue streams during the entire product lifecycle Generate is a sustainable infrastructure investment and operating company. Generate finances, builds, owns and operates affordable and resilient resources to de-risk and accelerate the infrastructure transition. Generate provides flexible capital solutions and integrated services to the innovative technology providers and project developers who deploy the energy, waste, transportation, water, agriculture and smart cities solutions required to fight climate change. POWER MOBILITY WASTE & WATER CITIES
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FY2025 Objectives 17
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FY2025 Priorities Align with Our Strategy 18 Our core strategies drive our plans towards profitable growth Highest Quality & Durability Great Service Competitive Cost Sustained Profitable Growth 8% 14% 15%+ EBITDA Margin Leader in Safety Leader in Safety Alt Power Leader Best Products & Features
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FY2025 Full Year Guidance – Raised to $200M and 13.8% Margin 191 See appendix for additional detail regarding non-GAAP measures 8% FY25 Scenarios Downside New Guidance Upside Supply Chain Units 9,000 9,250 9,500 t/o EV Units 1,000 1,150 1,300 Revenue $M $1,400 $1,450 $1,500 Adj. EBITDA $M $190 $200 $210 Adj. EBITDA % 13.6% 13.8% 14.0% • Strong demand • Stable Gross Margins • Propane exclusive • EV growth (2/3 in H2) • Supply chain • Labor Costs (USW) • Material Costs • EV timing (1/3 in H1) Tailwinds Headwinds Blue Bird Raised Guidance for FY25: $1.45B in Revenue (range $1.4B - $1.5B) Adj. EBITDA $200M and 13.8% Margin (range 13.6% - 14.0%)
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FY2025 Quarterly Guidance – Product Mix Driving Growth 20 FY25-Q1 FY25-Q2 FY25-Q3 FY25-Q4 FY25 Total $M ~$300 $1,400 - $1,500Rev. ✓ Growing EV sales, and Revenue in the $300M - $400M range ✓ Growing Adj. EBITDA in the $40M - $60M range ✓ Consistent and growing levels of 13%-14% Adj. EBITDA Adj. EBITDA Solid FY25-H1 at ~13% Margin, with profitable growth expected to accelerate in FY25-H2 40 - 45 ~13% 200 190 - 210 13.8% 13.6% - 14.0% 1 See appendix for additional detail regarding non-GAAP measures 1 ~11 wks ~2,000 ~100 (~5%) ~48 wks ~9,250 1000 - 1300 (10%+) Production Units t/o EV ~12 wks ~2,300 200 - 300 (~10%) ~$350 45 - 50 ~13% ~$400 50 - 55 ~14% ~13 wks ~2,500 300 - 400 (~15%) 55 - 60 ~14% $400+ ~12 wks ~2,400 400 - 500 (~20%)
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Blue Bird Awarded $80M MESC Grant by DOE for New Plant ▪ New 600k sq.ft. Type D / EV production facility in Fort Valley, GA ▪ Total Investment ~$160M, 50% funded by Blue Bird ▪ Build-out 2 years, launch expected by mid CY 2027 ▪ FCF CAPEX impact in FY25 of up to $50M ▪ Raises total capacity on one shift to ~14k buses / year ▪ Provides increased volume upside for commercial chassis ▪ ~400 new jobs, includes ~$10M of community benefits ▪ Project IRR 28%, payback 2 years after launch ▪ DOE negotiations to be finalized by Dec 31, 2024 21 New plant supports our profitable growth plans for 12,000+ units, produced on one-shift NEW Existing Plant
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$ Millions FY2024 Actuals FY2025 Aug Guidance FY2025 Updated Guidance B/(W) Vs. Prior Year Net Revenue $1,347 $1,400 - $1,500 $1,400 - $1,500 $53 - $153 Adj. EBITDA1 $183 $180 - $200 $190 - $210 $7 - $27 Adj. Free Cash Flow1 $99 N/A $40 - $60 t/o MESC $(50) $(59) - $(39) t/o MESC $(50) 1 See appendix for additional detail regarding non-GAAP measures FY2025 Full Year Guidance – Raised to $200M and 13.8% Margin 22 FY2025 expected to be a new record for Blue Bird for both top-line and bottom-line results
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36.8 35.8 36.1 29.6 26.4 25.7 30.5 29.1 33.3 37.2 38.1 39.0 39.5 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 NA School Bus Industry Class 6-7* 20 bps+ = ~14% Wrap-Up: Record Profit Outlook in FY2025 & Beyond 23 8%+ = ~$1.45 Billion 9% = ~$200 Million 64%+ = ~1,150 units 3%+ = ~9,250 units EV Bookings Adj. EBITDA Revenue Bookings *ACT Retail Sales – as of October 2024 EBITDA Margins of ~14% in 2025 and 15%+ longer-term Adj. EBITDA Margin ~6% CAGR Thousands
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Solid Growth Runway 24
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We Confirm Our Mid Term Outlook to 14% EBITDA Confirmed growth path towards ~5,000 EV’s, ~$2B Revenue and 15%+ Adj. EBITDA 2,500 4,000 5,000 0 2,000 4,000 6,000 8,000 10,000 12,000 500 1,000 1,500 2,000 2,500 3,000 2017 $1,025 7 2018 $1,019 56 2019 $879 158 2020 $684 146 2021 $800 269 2022 $1,133 546 2023 $1,347 704 2024 Actual $1,450 ~1,150 2025 Guidance $1,600 Mid Term $1,850 Long Term (Low) $2,000 Long Term (High) $991 11,646 11,017 8,878 6,679 6,822 11,317 9,000 9,250 10,000 11,000 12,000+ 8,514 Revenue $M Diesel Gas/Propane EV $69 $70 $82 $55 -$15 $88 $183 $200 $225 $270 0 100 200 300 7.0% 2017 6.9% 2018 8.0% 2019 6.2% 2020 5.1% $35 2021 -1.8% 2022 7.8% 2023 13.6% 2024 Actual 13.8% 2025 Guidance 14.0% Mid Term 14.5% Long Term (Low) 15.0%+ $300+ Long Term (High) Adj. EBITDA % Adj. EBITDA $M Units Rev. $M 25 1 COVID / Transformation 1 See appendix for additional detail regarding non-GAAP measures 2024 Actual 2025 Updated Guidance Outlook Long Term (2028+) Outlook Mid Term
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We Confirm Our Mid Term Outlook to 14% EBITDA Confirmed growth path towards ~5,000 EV’s, ~$2B Revenue and 15%+ Adj. EBITDA 2,500 4,000 5,000 500 1,000 1,500 2,000 2,500 3,000 0 2,000 4,000 6,000 8,000 10,000 12,000 $1,133 546 2023 Actual $1,347 704 2024 Actual $1,450 ~1,150 2025 Guidance $1,600 Mid Term $1,850 Long Term (Low) $2,000 Long Term (High) 8,514 9,000 9,250 10,000 11,000 12,000+ Revenue $M Diesel Gas/Propane EV $88 $183 $200 $225 $270 0 100 200 300 7.8% 2023 Actual 13.6% 2024 Actual 13.8% 2025 Guidance 14.0% Mid Term 14.5% Long Term (Low) 15.0%+ $300+ Long Term (High) Adj. EBITDA % Adj. EBITDA $M Units Outlook 261 See appendix for additional detail regarding non-GAAP measures 1 2024 Actual Long Term (2028+) Outlook Mid Term $30 $41 $48 $46 $48 $41 0 10 20 30 40 50 10.1% 23-Q3 13.4% 23-Q4 15.0% 24-Q1 13.3% 24-Q2 14.5% 24-Q3 11.8% 24-Q4 200 250 300 350 400 0 500 1,000 1,500 2,000 2,500 $294 148 23-Q3 $303 171 23-Q4 $318 206 24-Q1 $346 210 24-Q2 $333 204 24-Q3 $350 84 24-Q4 2,137 2,116 2,129 2,254 2,151 2,466 QTR Full YR Rev. $M TTM $183M / 13.6% 2025 Updated Guidance
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Strong Outlook Ahead for Blue Bird / Investment Highlights 27 EBITDA margins of ~14% in 2024 and 15%+ in the longer-term Beneficiary of $5B US Government’s commitment to the electrification of school buses Product portfolio further diversified through introduction of EV commercial chassis offering Reducing structural costs through Lean Transformation Leading market position in alternative power and electric school buses Pricing aligned to market economics and volatility Strong industry growth ahead with a backdrop of healthy funding and an aging school bus fleet Profitable Growth Reducing Costs Expanding our TAM The Leader National Commitment Countercyclical
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Appendix 28
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Key FY2024 Takeaways: All-Time Record Year Record Profit; Beat Full Year Guidance and Raised Long-Term Outlook Substantially Higher Bus Price Compared with Last Year and Competitive with Market Supply Chain Largely Stable; Highly Engaged with Two Key Constrained Suppliers Investing in the Business – People, Processes, Product and Facilities Significantly Improved Plant Operational Performance with More Stability Robust Market Demand, Increasing Order Share and Continuing Strong Backlog EV Production and Backlog Increasing; Undisputed Leader in Alternative Power 29 Strong market demand, alternative-power leadership and profit margins at record levels
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FY2024 Results UNITS SOLD 9,000 +486 vs.’23 NET SALES $1,347M +$214M vs.’23 Adjusted EBITDA $183M +$95M vs.’23 Adjusted FCF $99M $(22)M vs.’23 FY2024 Financial Results and Key Business Highlights 30See appendix for additional detail regarding non-GAAP measures Record financial results – Adj. EBITDA of $183M and 13.6% Margin BUSINESS HIGHLIGHTS $200M+ of EV’s in firm order Backlog1 Strong $735M Backlog of 4.8k Units1 1 as of 9/30/24 Alt. Power sales mix of 58% Exclusivity Extended to 2030 for Gas and Propane Parts Sales of $104M; 6% YoY increase Average Bus Selling Price +14% YoY EV bookings +29% YoY Beat FY24 Guidance Revenue +$31M Adj. EBITDA +$9M Adj. FCF + $14M (at mid-point of range) FINANCIAL HIGHLIGHTS Selected for $80M grant from the DOE Signed first collective bargaining agreement with USW
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FY2024 Q4 and Full Year Record Financial Results 31 See appendix for additional detail regarding non-GAAP measures FY2024 Q4 Results UNITS SOLD 2,466 +350 vs.’23 NET SALES $350M +$47M vs.’23 Adjusted EBITDA $41M +$1M vs.’23 Adjusted FCF $50M +$15M vs.’23 FINANCIAL HIGHLIGHTS FY2024 Full Year Results UNITS SOLD 9,000 +486 vs.’23 NET SALES $1,347M +$214M vs.’23 Adjusted EBITDA $183M +$95M vs.’23 Adjusted FCF $99M $(22)M vs.’23 FINANCIAL HIGHLIGHTS
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Fourth Quarter Income Statement FY24-Q4 is the best quarter ever for Revenue, and best Q4 ever for Adj. EBITDA ($ Millions) FY24-Q4 FY23-Q4 B/(W) Unit Volume 2,466 2,116 350 Unit Backlog 4,846 4,559 287 Net Revenue $350.2 $303.0 $47.2 Bus Rev./Unit ($000's) $131.2 $131.2 $- Gross Margin 17.0% 16.5% 50 bps Adj. Net Income1 $25.8 $21.3 $4.5 Adj. EBITDA1 $41.3 $40.7 $0.6 Adj. EBITDA Margin1 11.8% 13.4% (160) bps Adj. Diluted EPS1 $0.77 $0.66 $0.11 1See appendix for additional detail regarding non-GAAP measures 32
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40.7 41.3 11.0 0.9 3.5 FY23-Q4 Adj. EBITDA Bus Vol., Price-Mat. (1.7) Bus Operations Parts Gross Profit JV Micro Bird (13.1) OPEX/ Other FY24-Q4 Adj. EBITDA +0.6 FY23-Q4 to FY24-Q4 Adj. EBITDA Walk 33 Significant improvements in Volume and Pricing, offsetting increases in SG&A and Engineering 11.8%13.4% Volume, Pricing Plant Labor Costs (USW) Higher Rev. and Margins Micro Bird JV EBITDA SG&A and Engineering Adj. EBITDA ($M) 1 Unit Volumes FY23-Q4 2,116 FY24-Q4 2,466 Delta 350 t/o EV Volumes FY23-Q4 171 FY24-Q4 84 Delta (87) 1 See appendix for additional detail regarding non -GAAP measures One-time
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Full Year Income Statement FY24 is the best year ever for both top line revenue and bottom line Adj. EBITDA ($ Millions) FY2024 FY2023 B/(W) Unit Volume 9,000 8,514 486 Unit Backlog 4,846 4,559 287 Net Revenue $1,347.2 $1,132.8 $214.4 Bus Rev./Unit ($000's) $138.1 $121.5 $16.6 Gross Margin 19.0% 12.3% 670 bps Adj. Net Income1 $115.3 $34.5 $80.8 Adj. EBITDA1 $182.9 $87.9 $95.0 Adj. EBITDA Margin1 13.6% 7.8% 580 bps Adj. Diluted EPS1 $3.46 $1.07 $2.39 1See appendix for additional detail regarding non-GAAP measures 34
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88 183 120 5 6 FY2023 Adj. EBITDA Bus Vol., Price-Mat. (7) Bus Operations Parts Gross Profit JV Micro Bird (28) OPEX/ Other FY2024 Adj. EBITDA +95 FY2023 to FY2024 Adj. EBITDA Walk: $95M YoY Improvement 35 Significant improvements in Pricing, Parts and Micro Bird JV drove record FY24 results 13.6%7.8% Pricing, Product Mix Plant Labor and OH Costs (USW) Higher Rev. and Margins SG&A and Engineering Adj. EBITDA ($M) 1 Unit Volumes FY2023 8,514 FY2024 9,000 Delta 486 t/o EV Volumes FY2023 546 FY2024 704 Delta 158 1 See appendix for additional detail regarding non -GAAP measures Micro Bird JV EBITDA
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($ Millions) FY2024 FY2023 B/(W) Cash $127.7 $79.0 $48.7 Debt $(95.0) $(130.3) $35.3 Liquidity $271.0 $163.4 $107.6 Operating Cash Flow $111.1 $119.9 $(8.8) Adj. Free Cash Flow1 $98.9 $121.1 $(22.2) Trade Working Capital* $(32.4) $36.4 $(68.8) Balance Sheet and Cash Flow Summary * Inventories, accounts receivable and accounts payable Strong Operating Cash Flow drives Adj. Free Cash Flow and record levels of Liquidity 361See appendix for additional detail regarding non-GAAP measures
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Working Capital – Dealer vs. Fleet / GSA Customer Segment RAW Inv. (AP) WIP Inv. FG Inv. BB Cash Transit PDI Customer 37 Fleet / GSA Sales require temporary Working Capital increases in FG Inv. and AR RAW Inv. (AP) WIP Inv. FG Inv. Transit PDI Customer (AR) BB Cash Dealer Sales Flow Fleet / GSA Sales Flow Dealer Floor Plan (~2 days) 1-2 weeks 1-4 weeks 30+ days 6 – 12+ weeksUnit sold
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Adj. EBITDA Reconciliation 38
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Free Cash Flow Reconciliation 39
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Adjusted EPS Reconciliation 40
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Investor Relations Contact Information 41 Mark Benfield Mark.Benfield@Blue-Bird.com