On August 7, 2024, Blue Bird Corp (BLBD, Financial) released its 8-K filing detailing its fiscal 2024 third quarter results. Blue Bird Corp, an American bus manufacturing company, operates in two segments: the Bus segment, which involves the design, engineering, manufacture, and sales of school buses and extended warranties, and the Parts segment, which includes the sales of replacement bus parts. The company primarily operates in the United States, Canada, and globally, with the majority of its sales derived from the U.S. through its bus manufacturing business.
Performance and Challenges
Blue Bird Corp reported net sales of $333.4 million for the third quarter of fiscal 2024, marking a 13.3% increase from the same period last year. The company sold 2,151 buses, slightly up from 2,137 units in the previous year. Despite ongoing supply chain constraints, the company managed to increase its average sales price per unit by 13.2%, contributing significantly to the revenue growth.
However, the company faced challenges with increased inventory costs and supply chain disruptions, which led to higher purchase costs for components. These issues resulted in a 5.8% increase in the average cost of goods sold per unit compared to the third quarter of fiscal 2023.
Financial Achievements
Blue Bird Corp achieved a record quarterly Adjusted EBITDA of $48.2 million, up $18.5 million from the previous year, with a 14.5% margin. This performance is crucial for the company as it continues to expand its leadership in alternative-powered school buses. The company delivered over 200 electric-powered buses this quarter, nearly 40% more than last year, and saw strong growth in EV orders from the EPA’s Clean School Bus Program.
“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.
Income Statement Highlights
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $333.4 million | $294.3 million | +13.3% |
| Net Income | $28.7 million | $9.4 million | +205.3% |
| Adjusted EBITDA | $48.2 million | $29.7 million | +62.4% |
| Diluted EPS | $0.85 | $0.29 | +193.1% |
Balance Sheet and Cash Flow
As of June 29, 2024, Blue Bird Corp reported total assets of $468.1 million, up from $417.8 million as of September 30, 2023. The company’s cash and cash equivalents increased to $88.4 million from $79.0 million. Total liabilities decreased to $330.8 million from $377.8 million, reflecting a reduction in long-term debt and other liabilities.
For the nine months ended June 29, 2024, net cash provided by operating activities was $55.8 million, compared to $84.1 million in the same period last year. The decrease was primarily due to changes in working capital components such as accounts receivable and inventories.
Analysis and Outlook
Blue Bird Corp’s strong performance in the third quarter of fiscal 2024 highlights its resilience and ability to navigate supply chain challenges. The company’s focus on alternative-powered buses and its leadership in the electric vehicle market position it well for future growth. The increased full-year guidance for Adjusted EBITDA to $175 million and the long-term outlook for an Adjusted EBITDA margin of 15% on approximately $2 billion in revenues reflect the company’s confidence in its strategic initiatives.
“Our business transformation continues to yield great results, and ahead of the plan we have been messaging,” said Razvan Radulescu, CFO of Blue Bird Corporation.
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Explore the complete 8-K earnings release (here) from Blue Bird Corp for further details.
