On December 11, 2023, Blue Bird Corp (BLBD, Financial) released its 8-K filing, revealing a remarkable fiscal 2023 performance with record net sales and adjusted EBITDA. The company also announced an optimistic outlook for fiscal 2024, raising its adjusted EBITDA guidance.
Fiscal 2023 Performance Highlights
Blue Bird Corp (BLBD, Financial) reported a significant 41% increase in full-year net sales, reaching $1,132.8 million. The company's GAAP net income showed a dramatic turnaround, posting $23.8 million, up $69.6 million from the previous year. Adjusted EBITDA also reflected a robust growth, climbing to $87.9 million, a $102.7 million increase compared to the prior year. The company sold 8,514 buses, marking a 25% rise in unit sales.
Fourth Quarter Financials
The fourth quarter saw net sales of $303.0 million, a 17.6% increase from the same period in the previous year. This growth was attributed to a 12.1% rise in the average sales price per unit and a 5.0% increase in units sold. Gross profit for the quarter was $50.0 million, a substantial improvement from the prior year, driven by increased net sales and reduced cost of goods sold. Net income for the quarter stood at $18.6 million, a $41.7 million increase year-over-year.
Adjusted Financial Measures and Commentary
Adjusted net income for the fiscal year reached $34.5 million, up $70.5 million from the previous year. The adjusted diluted EPS was $1.07, reflecting a $2.22 improvement. CEO Phil Horlock expressed pride in the team's efforts, stating,
The market demand for Blue Bird’s school buses remains very strong with approximately 4,600 units in our order backlog."He also highlighted the company's leadership in alternative-powered school buses and the doubling of zero-emission EV unit sales.
Balance Sheet and Cash Flow
As of September 30, 2023, Blue Bird Corp (BLBD, Financial) reported cash and cash equivalents of $78.9 million, a significant increase from $10.5 million the previous year. Total assets were $417.8 million, while total liabilities and stockholders' equity amounted to $417.8 million. The company generated a robust cash flow from operations, totaling $119.9 million for the fiscal year.
Outlook for Fiscal 2024
CFO Razvan Radulescu shared optimism for the upcoming year,
We are raising our fiscal 2024 guidance to Net Revenue to $1.15-1.25 Billion, Adj. EBITDA of $105-125 million and Adj. Free Cash Flow of $50-60 million."The company reaffirmed its long-term outlook of profitable growth towards approximately $2 billion in revenues and Adjusted EBITDA margins of 12%+.
Conclusion
Blue Bird Corp (BLBD, Financial) has demonstrated a strong fiscal 2023 performance with significant increases in net sales, net income, and adjusted EBITDA. The company's strategic focus on alternative-powered buses and operational improvements have positioned it well for continued growth. With an increased guidance for fiscal 2024, Blue Bird Corp (BLBD) remains an intriguing prospect for value investors looking for companies with solid financials and a clear growth trajectory.
Explore the complete 8-K earnings release (here) from Blue Bird Corp for further details.
