Blue Bird Reports Fiscal 2024 Third Quarter Record Results; Raises 2024 Guidance and Long-Term Outlook

Rhea-AI Summary

Blue Bird (Nasdaq: BLBD) reported strong fiscal 2024 third quarter results, with net sales up 13% to $333 million and GAAP net income increasing by $19 million to $29 million. The company achieved a record quarterly Adjusted EBITDA of $48 million, up $19 million, with 2,151 buses sold. Based on these results, Blue Bird has raised its FY2024 Adjusted EBITDA guidance to $175 million or 13% of revenue. The company also increased its long-term Adjusted EBITDA margin outlook to 15%.

Blue Bird saw strong growth in electric bus orders, delivering over 200 electric-powered buses this quarter, nearly 40% more than last year. The company's order backlog stands at over 5,200 units, including over 560 EV orders from the EPA's Clean School Bus Program.

Positive

• Net sales increased 13% to $333 million in Q3 2024
• GAAP net income rose by $19 million to $29 million
• Record quarterly Adjusted EBITDA of $48 million, up $19 million
• FY2024 Adjusted EBITDA guidance raised to $175 million (13% of revenue)
• Long-term Adjusted EBITDA margin outlook increased to 15%
• Electric bus orders grew, with over 200 delivered (40% increase YoY)
• Strong order backlog of over 5,200 units, including 560+ EV orders

Negative

• Supply chain constraints continue to impact production and delivery
• Increased inventory costs due to inflationary pressures and supply chain disruptions

Insights

Financial Analyst

Blue Bird's Q3 FY2024 results are highly positive, showing strong financial performance and improved outlook. Key highlights include:

• Net sales increased 13% to $333.4 million
• GAAP Net Income rose by $19.4 million to $28.7 million
• Record quarterly Adjusted EBITDA of $48.2 million, up $18.6 million
• Adjusted EBITDA margin of 14.5%

The company has raised its FY2024 guidance, projecting Adjusted EBITDA of $175 million or 13% of revenue. Long-term outlook is also improved, with Adjusted EBITDA margin expected to reach 15%. These results demonstrate Blue Bird's successful business transformation and strong market position in the school bus industry, particularly in electric and low-emission vehicles.

Market Research Analyst

Blue Bird's Q3 results reflect robust market demand and strategic positioning in the alternative-powered school bus segment. Key market insights include:

• Strong backlog of over 5,200 units indicates sustained demand
• Electric bus deliveries up 40% year-over-year
• Over 560 EV orders in backlog from EPA's Clean School Bus Program
• $2 billion in additional funding expected from Phases 2 and 3 of the program

The company's focus on electric and low-emission buses aligns well with growing environmental concerns and government initiatives. The $5 billion Clean School Bus Program presents a significant growth opportunity for Blue Bird through 2026. However, ongoing supply chain challenges and inflationary pressures remain factors to watch, potentially impacting production capacity and margins in the short term.

Tech Expert

Blue Bird's leadership in alternative-powered school buses, particularly EVs, positions it well in the evolving transportation technology landscape. Key tech-related points:

• Delivered over 200 electric-powered buses in Q3, a 40% year-over-year increase
• Strong growth in EV orders from the EPA's Clean School Bus Program
• Continued focus on expanding alternative-powered bus offerings

The company's commitment to electric and low-emission vehicles aligns with global trends towards sustainable transportation. This technological shift presents both opportunities and challenges. While Blue Bird benefits from increased demand for cleaner technologies, it must also manage the complexities of EV production, including battery supply chains and charging infrastructure. The company's ability to scale EV production efficiently will be important for maintaining its market leadership and capitalizing on the growing demand for electric school buses.

Net Sales of $333M, up 13% and GAAP Net Income of $29M, up $19M

Record Quarterly Adj. EBITDA of $48M, up $19M with 2,151 Buses Sold

FY2024 Adj. EBITDA Guidance Raised to $175M or 13% of Revenue

Long-Term Adj. EBITDA Margin Outlook Raised to 15%

MACON, Ga.--(BUSINESS WIRE)-- Blue Bird Corporation (“Blue Bird”) (Nasdaq: BLBD), the leader in electric and low-emission school buses, announced today its fiscal 2024 third quarter results.

Highlights

(in millions except Unit Sales and EPS data)	Three Months Ended June 29, 2024			B/(W) Prior Year			Nine Months Ended June 29, 2024			B/(W) Prior Year
Unit Sales		2,151			14			6,534			136
GAAP Measures:
Revenue	$	333.4		$	39.1		$	996.9		$	167.1
Net Income	$	28.7		$	19.4		$	80.9		$	75.7
Diluted EPS	$	0.85		$	0.56		$	2.43		$	2.27
Non-GAAP Measures1:
Adjusted EBITDA	$	48.2		$	18.6		$	141.6		$	94.4
Adjusted Net Income	$	30.5		$	16.1		$	89.5		$	76.4
Adjusted Diluted EPS	$	0.91		$	0.47		$	2.69		$	2.28

1	Reconciliation to relevant GAAP metrics shown below

“I am incredibly proud of our team’s achievements in delivering another outstanding result and record profit in the third quarter,” said Phil Horlock, CEO of Blue Bird Corporation. “The Blue Bird team continued to exceed expectations, improving operations, driving new orders, and expanding our leadership in alternative-powered buses. Market demand remains very strong with over 5,200 units in our order backlog. Unit sales were up slightly from last year, revenue grew by 13% to $333 million, and Adjusted EBITDA hit a record $48 million with a 14.5% margin.

“In our push to expand our leadership in alternative-powered school buses, we delivered over 200 electric-powered buses this quarter, nearly 40% more than last year. We also saw strong growth in EV orders from the EPA’s Clean School Bus Program, ending the quarter with over 560 EV orders in our backlog. Following the nearly $1 billion funding from Phase 1 of the $5 billion program, we’re excited for new EV orders over the next year from Phases 2 and 3, which provide another $2 billion in funding. These buses need to be delivered by the end of 2026, and we’re working aggressively with our dealers and school districts, confident in the continued, exciting growth ahead for Blue Bird.

“Based on our strong year-to-date performance, we’ve increased our full-year financial guidance for Adjusted EBITDA to $175 million, with a 13% margin. This will be an all-time full-year record for Blue Bird, and we look forward to sustained profitable growth in the coming years, particularly as the global supply-chain recovery progresses.”

FY2024 Guidance Increased and Long-Term Outlook Raised

“We are very pleased with the third quarter results, with the highest ever quarterly Adj. EBITDA,” said Razvan Radulescu, CFO of Blue Bird Corporation. “Our business transformation continues to yield great results, and ahead of the plan we have been messaging. We are raising our full-year guidance for Net Revenue to $1.30-1.33 Billion, Adj. EBITDA to $170-180 million (13.1% - 13.5% margin) and Adj. Free Cash Flow to $80-90 million. Additionally, we are raising our long-term profit outlook towards an Adjusted EBITDA margin of 15% on ~$2 billion in revenues.”

Fiscal 2024 Third Quarter Results

Net Sales
Net sales were $333.4 million for the third quarter of fiscal 2024, an increase of $39.1 million, or 13.3%, from the third quarter of last year. Bus sales increased $37.8 million, reflecting a 13.2% increase in average sales price per unit, resulting from pricing actions taken by management as well as product and customer mix changes, as well as a 0.7% increase in units booked. In the third quarter of fiscal 2024, 2,151 units were booked compared with 2,137 units booked for the same period in fiscal 2023. The small increase in units sold was primarily due to customer and product mix changes, although both quarters were negatively impacted by supply chain constraints that limited the Company's ability to produce and deliver buses due to shortages of critical components. Additionally, Parts sales increased $1.3 million, or 5.5%, for the third quarter of fiscal 2024 compared with the third quarter of fiscal 2023. This increase is primarily attributed to price increases, driven by ongoing inflationary pressures, as well as higher fulfillment volumes and slight variations due to product and channel mix.

Gross Profit
Third quarter gross profit of $69.4 million represented an increase of $23.6 million from the third quarter of last year. The increase was primarily driven by the $39.1 million increase in net sales, discussed above, and partially offset by an increase of $15.5 million in cost of goods sold. The increase in cost of goods sold was primarily driven by increased inventory costs, as the average cost of goods sold per unit for the third quarter of fiscal 2024 was 5.8% higher compared to the third quarter of fiscal 2023, primarily due to increases in manufacturing costs attributable to a) increased raw materials costs resulting from ongoing inflationary pressures and b) ongoing supply chain disruptions that resulted in higher purchase costs for components.

Net Income
Net income was $28.7 million for the third quarter of fiscal 2024, which was a $19.4 million increase from the third quarter of last year. The increase was primarily driven by the $23.6 million increase in gross profit, discussed above. Partially offsetting this was the corresponding $8.1 million increase in income tax expense.

Adjusted Net Income
Adjusted net income was $30.5 million, representing an increase of $16.1 million compared with the same period last year, primarily due to the $19.4 million increase in net income, discussed above.

Adjusted EBITDA
Adjusted EBITDA was $48.2 million, which was an increase of $18.6 million compared with the third quarter last year. This increase primarily results from the $19.4 million increase in net income as a result of the factors discussed above.

Fiscal 2024 Year-to-Date Results

Net Sales
Net sales were $996.9 million for the nine months ended June 29, 2024, an increase of $167.1 million, or 20.1%, compared with the same period in fiscal 2023. Bus sales increased $162.4 million, or 21.5%, reflecting a 18.9% increase in average sales price per unit, primarily driven by pricing actions taken by management in response to increased inventory purchase costs, and a 2.1% increase in units booked. There were 6,534 units booked in the nine months ended June 29, 2024 compared with 6,398 units booked during the same period in fiscal 2023. The increase in units sold was primarily due to slight improvements in supply chain constraints impacting the Company's ability to produce and deliver buses due to shortages of critical components during the first nine months of fiscal 2024 relative to the same period in fiscal 2023. Parts sales increased $4.7 million, or 6.4%, for the nine months ended June 29, 2024 compared with the nine months ended July 1, 2023. This increase is primarily attributed to price increases, driven by ongoing inflationary pressures, as well as higher fulfillment volumes and slight variations due to product and channel mix.

Gross Profit
Gross profit for the nine months ended June 29, 2024 was $196.6 million, an increase of $107.7 million compared with the same period in the prior year. The increase was primarily driven by the $167.1 million increase in net sales, discussed above. This was partially offset by an increase of $59.4 million in cost of goods sold, primarily driven by the 2.1% increase in units booked and increased inventory costs, as the average cost of goods sold per unit for the nine months ended June 29, 2024 was 6.1% higher compared to the nine months ended July 1, 2023, primarily due to increases in manufacturing costs attributable to a) increased raw materials costs resulting from ongoing inflationary pressures and b) ongoing supply chain disruptions that resulted in higher purchase costs for components.

Net Income
Net income was $80.9 million for the nine months ended June 29, 2024, which was a $75.7 million increase from the same period in the prior year. The increase in net income was primarily driven by the $107.7 million increase in gross profit, discussed above. This was partially offset by a corresponding $26.4 million increase in income tax expense.

Adjusted Net Income
Adjusted net income for the nine months ended June 29, 2024 was $89.5 million, an increase of $76.4 million compared with the same period last year, primarily due to the $75.7 million increase in net income, discussed above.

Adjusted EBITDA
Adjusted EBITDA was $141.6 million for the nine months ended June 29, 2024, an increase of $94.4 million compared with the same period in the prior year. This is primarily due to the $75.7 million increase in net income, discussed above, and the corresponding $26.4 million increase in income tax expense.

Conference Call Details

Blue Bird will discuss its third quarter 2024 results in a conference call at 4:30 PM ET today. Participants may listen to the audio portion of the conference call either through a live audio webcast on the Company's website or by telephone. The slide presentation and webcast can be accessed via the Investor Relations portion of Blue Bird's website at www.blue-bird.com.

• Webcast participants should log on and register at least 15 minutes prior to the start time on the Investor Relations homepage of Blue Bird’s website at http://investors.blue-bird.com. Click the link in the events box on the Investor Relations landing page.
• Participants desiring audio only should dial 404-975-4839 or 833-470-1428

A replay of the webcast will be available approximately two hours after the call concludes via the same link on Blue Bird’s website.

About Blue Bird Corporation

Blue Bird (NASDAQ: BLBD) is recognized as a technology leader and innovator of school buses since its founding in 1927. Our dedicated team members design, engineer and manufacture school buses with a singular focus on safety, reliability, and durability. School buses carry the most precious cargo in the world – 25 million children twice a day – making them the most trusted mode of student transportation. The company is the proven leader in low- and zero-emission school buses with more than 20,000 propane, natural gas, and electric powered buses in operation today. Blue Bird is transforming the student transportation industry through cleaner energy solutions. For more information on Blue Bird's complete product and service portfolio, visit www.blue-bird.com.

Key Non-GAAP Financial Measures We Use to Evaluate Our Performance

This press release includes 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 and Free Cash Flow are financial metrics that are utilized by management and the board of directors, as and when applicable, to determine (a) the annual cash bonus payouts, if any, to be made to certain employees based upon the terms of the Company’s Management Incentive Plan, and (b) whether the performance criteria have been met for the vesting of certain equity awards granted annually to certain members of management based upon the terms of the Company’s Omnibus Equity Incentive Plan. Additionally, consolidated EBITDA, which is an adjusted EBITDA metric defined by our Amended Credit Agreement that could differ from Adjusted EBITDA discussed above as the adjustments to the calculations are not uniform, is used to determine the Company's ongoing compliance with several financial covenant requirements, including being utilized in the denominator of the calculation of the Total Net Leverage Ratio. Accordingly, management views these non-GAAP financial metrics as key for the above purposes and as a useful way to evaluate the performance of our operations as discussed further below.

Adjusted EBITDA is defined as net income or loss prior to interest income; interest expense including the component of operating lease expense (which is presented as a single operating expense in selling, general and administrative expenses in our U.S. GAAP financial statements) that represents interest expense on lease liabilities; income taxes; and depreciation and amortization including the component of operating lease expense (which is presented as a single operating expense in selling, general and administrative expenses in our U.S. GAAP financial statements) that represents amortization charges on right-of-use lease assets; as adjusted for certain non-cash charges or credits that we may record on a recurring basis such as share-based compensation expense and unrealized gains or losses on certain derivative financial instruments; net gains or losses on the disposal of assets as well as certain charges such as (i) significant product design changes; (ii) transaction related costs; or (iii) discrete expenses related to major cost cutting and/or operational transformation initiatives. While certain of the charges that are added back in the Adjusted EBITDA calculation, such as transaction related costs and operational transformation and major product redesign initiatives, represent operating expenses that may be recorded in more than one annual period, the significant project or transaction giving rise to such expenses is not considered to be indicative of the Company’s normal operations. Accordingly, we believe that these, as well as the other credits and charges that comprise the amounts utilized in the determination of Adjusted EBITDA described above, should not be used in evaluating the Company’s ongoing annual operating performance.

We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not measures of performance defined in accordance with U.S. GAAP. The measures are used as a supplement to U.S. GAAP results in evaluating certain aspects of our business, as described below.

We believe that Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Diluted Earnings per Share are useful to investors in evaluating our performance because the measures consider the performance of our ongoing operations, excluding decisions made with respect to capital investment, financing, and certain other significant initiatives or transactions as outlined in the preceding paragraph. We believe the non-GAAP measures offer additional financial metrics that, when coupled with the GAAP results and the reconciliation to GAAP results, provide a more complete understanding of our results of operations and the factors and trends affecting our business.

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income and Adjusted Diluted Earnings per Share should not be considered as alternatives to net income or GAAP earnings per share as an indicator of our performance or as alternatives to any other measure prescribed by GAAP as there are limitations to using such non-GAAP measures. Although we believe the non-GAAP measures may enhance an evaluation of our operating performance based on recent revenue generation and product/overhead cost control because they exclude the impact of prior decisions made about capital investment, financing, and other expenses, (i) other companies in Blue Bird’s industry may define Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Diluted Earnings per Share differently than we do and, as a result, they may not be comparable to similarly titled measures used by other companies in Blue Bird’s industry, and (ii) Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Diluted Earnings per Share exclude certain financial information that some may consider important in evaluating our performance.

We compensate for these limitations by providing disclosure of the differences between Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Diluted Earnings per Share and GAAP results, including providing a reconciliation to GAAP results, to enable investors to perform their own analysis of our operating results.

Our measures of “Free Cash Flow” and "Adjusted Free Cash Flow" are used in addition to and in conjunction with results presented in accordance with GAAP and free cash flow and adjusted free cash flow should not be relied upon to the exclusion of GAAP financial measures. Free cash flow and adjusted free cash flow reflect an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. We strongly encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

We define Free Cash Flow as total cash provided by/used in operating activities as adjusted for net cash paid for the acquisition of fixed assets and intangible assets. We use Free Cash Flow, and ratios based on Free Cash Flow, to conduct and evaluate our business because, although it is similar to cash flow from operations, we believe it is a more conservative measure of cash flow since purchases of fixed assets and intangible assets are a necessary component of ongoing operations.

Forward Looking Statements

This press release 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 in this press release regarding guidance, seasonality, product mix and gross profits and may include statements relating to:

• 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

These forward-looking statements are based on information available as of the date of this press release, 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 us (available at www.sec.gov), could cause our actual results to differ materially from estimates or expectations reflected in such forward-looking statements.

BLUE BIRD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands of dollars, except for share data)	June 29, 2024				September 30, 2023
Assets
Current assets
Cash and cash equivalents	$	88,416			$	78,988
Accounts receivable, net		34,006				12,574
Inventories		144,537				135,286
Other current assets		8,738				9,215
Total current assets	$	275,697			$	236,063
Property, plant and equipment, net	$	97,608			$	95,101
Goodwill		18,825				18,825
Intangible assets, net		44,022				45,424
Equity investment in affiliate		28,715				17,619
Deferred tax assets		—				2,182
Finance lease right-of-use assets		507				1,034
Other assets		2,696				1,518
Total assets	$	468,070			$	417,766
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	128,144			$	137,140
Warranty		6,796				6,711
Accrued expenses		36,817				32,894
Deferred warranty income		9,075				8,101
Finance lease obligations		1,124				583
Other current liabilities		10,618				24,391
Current portion of long-term debt		5,000				19,800
Total current liabilities	$	197,574			$	229,620
Long-term liabilities
Revolving credit facility	$	—			$	—
Long-term debt		91,158				110,544
Warranty		8,700				8,723
Deferred warranty income		17,978				15,022
Deferred tax liabilities		4,620				2,513
Finance lease obligations		6				987
Other liabilities		8,757				7,955
Pension		1,994				2,404
Total long-term liabilities	$	133,213			$	148,148
Guarantees, commitments and contingencies
Stockholders' equity
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0 shares outstanding at June 29, 2024 and September 30, 2023	$	—			$	—
Common stock, $0.0001 par value, 100,000,000 shares authorized, 32,331,161 and 32,165,225 shares outstanding at June 29, 2024 and September 30, 2023, respectively		3				3
Additional paid-in capital		193,869				177,861
Retained earnings (accumulated deficit)		25,184				(55,700	)
Accumulated other comprehensive loss		(31,491	)			(31,884	)
Treasury stock, at cost, 1,782,568 shares at June 29, 2024 and September 30, 2023		(50,282	)			(50,282	)
Total stockholders' equity	$	137,283			$	39,998
Total liabilities and stockholders' equity	$	468,070			$	417,766

BLUE BIRD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
	Three Months Ended								Nine Months Ended
(in thousands of dollars except for share data)	June 29, 2024				July 1, 2023				June 29, 2024				July 1, 2023
Net sales	$	333,367			$	294,284			$	996,942			$	829,830
Cost of goods sold		264,014				248,534				800,392				740,974
Gross profit	$	69,353			$	45,750			$	196,550			$	88,856
Operating expenses
Selling, general and administrative expenses		29,625				26,328				82,798				66,365
Operating profit	$	39,728			$	19,422			$	113,752			$	22,491
Interest expense		(2,107	)			(4,507	)			(8,550	)			(13,895	)
Interest income		990				246				3,132				258
Other expense, net		(2,729	)			(6,421	)			(5,918	)			(6,999	)
Loss on debt refinancing or modification		—				—				(1,558	)			(537	)
Income before income taxes	$	35,882			$	8,740			$	100,858			$	1,318
Income tax expense		(9,938	)			(1,884	)			(26,645	)			(292	)
Equity in net income of non-consolidated affiliate		2,767				2,502				6,671				4,168
Net income	$	28,711			$	9,358			$	80,884			$	5,194
Earnings per share:
Basic weighted average shares outstanding		32,305,396				32,073,497				32,238,805				32,044,581
Diluted weighted average shares outstanding		33,653,447				32,598,938				33,222,354				32,335,381
Basic earnings per share	$	0.89			$	0.29			$	2.51			$	0.16
Diluted earnings per share	$	0.85			$	0.29			$	2.43			$	0.16

BLUE BIRD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Nine Months Ended
(in thousands of dollars)	June 29, 2024				July 1, 2023
Cash flows from operating activities
Net income	$	80,884			$	5,194
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		10,913				12,077
Non-cash interest expense		305				1,124
Share-based compensation expense		7,017				2,229
Equity in net income of non-consolidated affiliate		(6,671	)			(4,168	)
Dividend from equity investment in affiliate		2,991				—
Loss on disposal of fixed assets		33				13
Deferred income tax expense		4,165				522
Amortization of deferred actuarial pension losses		516				896
Loss on debt refinancing or modification		1,558				537
Changes in assets and liabilities:
Accounts receivable		(21,432	)			1,105
Inventories		(9,251	)			13,808
Other assets		680				(228	)
Accounts payable		(9,961	)			27,953
Accrued expenses, pension and other liabilities		(5,987	)			23,069
Total adjustments	$	(25,124	)		$	78,937
Total cash provided by operating activities	$	55,760			$	84,131
Cash flows from investing activities
Cash paid for fixed assets	$	(10,137	)		$	(6,390	)
Total cash used in investing activities	$	(10,137	)		$	(6,390	)
Cash flows from financing activities
Revolving credit facility borrowings	$	36,220			$	45,000
Revolving credit facility repayments		(36,220	)			(65,000	)
Term loan borrowings - new credit agreement		100,000				—
Term loan repayments		(134,300	)			(14,850	)
Principal payments on finance leases		(440	)			(425	)
Cash paid for debt costs		(3,128	)			(3,272	)
Repurchase of common stock in connection with stock award exercises		(301	)			(57	)
Cash received from stock option exercises		1,974				1,119
Total cash used in financing activities	$	(36,195	)		$	(37,485	)
Change in cash, cash equivalents, and restricted cash		9,428				40,256
Cash, cash equivalents, and restricted cash at beginning of period		78,988				10,479
Cash, cash equivalents, and restricted cash at end of period	$	88,416			$	50,735
Supplemental disclosures of cash flow information
Cash paid or received during the period:
Interest paid, net of interest received	$	4,725			$	12,202
Income tax paid (received), net of tax refunds		18,856				(33	)
Non-cash investing and financing activities:
Changes in accounts payable for capital additions to property, plant and equipment	$	2,336			$	745
Right-of-use assets obtained in exchange for operating lease obligations		1,682				199
Warrants issued for equity investment in affiliate		7,416				—

Reconciliation of Net Income to Adjusted EBITDA
	Three Months Ended								Nine Months Ended
(in thousands of dollars)	June 29, 2024				July 1, 2023				June 29, 2024				July 1, 2023
Net income	$	28,711			$	9,358			$	80,884			$	5,194
Adjustments:
Interest expense, net (1)		1,214				4,353				5,729				13,923
Income tax expense		9,938				1,884				26,645				292
Depreciation, amortization, and disposals (2)		4,055				5,481				12,253				13,477
Operational transformation initiatives		—				196				—				1,133
Share-based compensation expense		2,474				941				7,017				2,229
Stockholder transaction costs		—				5,509				3,154				6,252
Loss on debt refinancing or modification		—				—				1,558				537
Other		2				293				(81	)			574
Subtotal (Adjusted EBITDA as previously presented)	$	46,394			$	28,015			$	137,159			$	43,611
Micro Bird Holdings, Inc. total interest expense, net; income tax expense or benefit; depreciation expense and amortization expense		1,852				1,650				4,442				3,606
Adjusted EBITDA	$	48,246			$	29,665			$	141,601			$	47,217
Adjusted EBITDA margin (percentage of net sales)		14.5	%			10.1	%			14.2	%			5.7	%

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(1)	Includes $0.1 million for both the three months ended June 29, 2024 and July 1, 2023, and $0.3 million for both the nine months ended June 29, 2024 and July 1, 2023, representing interest expense on operating lease liabilities, which are a component of lease expense and presented as a single operating expense in selling, general and administrative expenses on our Condensed Consolidated Statements of Operations.
(2)	Includes $0.3 million and $0.5 million for the three months ended June 29, 2024 and July 1, 2023, respectively, and $1.3 million for both the nine months ended June 29, 2024 and July 1, 2023, representing amortization charges on right-of-use lease assets, which are a component of lease expense and presented as a single operating expense in selling, general and administrative expenses on our Condensed Consolidated Statements of Operations.

Reconciliation of Free Cash Flow to Adjusted Free Cash Flow
	Three Months Ended								Nine Months Ended
(in thousands of dollars)	June 29, 2024				July 1, 2023				June 29, 2024				July 1, 2023
Net cash provided by operating activities	$	989			$	39,415			$	55,760			$	84,131
Cash paid for fixed assets		(4,494	)			(2,650	)			(10,137	)			(6,390	)
Free cash flow	$	(3,505	)		$	36,765			$	45,623			$	77,741
Cash paid for operational transformation initiatives		—				196				—				1,133
Cash paid for stockholder transaction costs		—				5,509				3,154				6,252
Cash paid for other items		2				293				(81	)			574
Adjusted free cash flow		(3,503	)			42,763				48,696				85,700

Reconciliation of Net Income to Adjusted Net Income
	Three Months Ended						Nine Months Ended
(in thousands of dollars)	June 29, 2024			July 1, 2023			June 29, 2024				July 1, 2023
Net income	$	28,711		$	9,358		$	80,884			$	5,194
Adjustments, net of tax benefit or expense (1)
Operational transformation initiatives		—			145			—				838
Share-based compensation expense		1,831			696			5,193				1,649
Stockholder transaction costs		—			4,077			2,334				4,626
Loss on debt modification		—			—			1,153				397
Other		1			217			(60	)			425
Adjusted net income, non-GAAP	$	30,543		$	14,493			89,504				13,129

___________________
(1)	Amounts are net of estimated tax rates of 26%.

Reconciliation of Diluted EPS to Adjusted Diluted EPS
	Three Months Ended						Nine Months Ended
	June 29, 2024			July 1, 2023			June 29, 2024			July 1, 2023
Diluted earnings per share	$	0.85		$	0.29		$	2.43		$	0.16
One-time charge adjustments, net of tax benefit or expense		0.06			0.15			0.26			0.25
Adjusted diluted earnings per share, non-GAAP	$	0.91		$	0.44		$	2.69		$	0.41
Adjusted weighted average dilutive shares outstanding		33,653,447			32,598,938			33,222,354			32,335,381

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240807911595/en/

Mark Benfield

Investor Relations

(478) 822-2315

Mark.Benfield@blue-bird.com

Source: Blue Bird Corporation

FAQ

What were Blue Bird's (BLBD) key financial results for Q3 2024?

Blue Bird reported net sales of $333 million (up 13%), GAAP net income of $29 million (up $19 million), and a record quarterly Adjusted EBITDA of $48 million (up $19 million) for Q3 2024.

How many electric buses did Blue Bird (BLBD) deliver in Q3 2024?

Blue Bird delivered over 200 electric-powered buses in Q3 2024, which was nearly 40% more than the same quarter last year.

What is Blue Bird's (BLBD) updated FY2024 Adjusted EBITDA guidance?

Blue Bird raised its FY2024 Adjusted EBITDA guidance to $175 million, representing 13% of revenue.

How many units are in Blue Bird's (BLBD) order backlog as of Q3 2024?

Blue Bird's order backlog stands at over 5,200 units, including over 560 EV orders from the EPA's Clean School Bus Program.

What is Blue Bird's (BLBD) long-term Adjusted EBITDA margin outlook?

Blue Bird increased its long-term Adjusted EBITDA margin outlook to 15%.