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Net Sales: $317.7 million, up 35% year-over-year.
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GAAP Net Income: $26.2 million, a major enhance from the prior yr.
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Adjusted EBITDA: Record $47.6 million, up $51.1 million year-over-year.
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Unit Sales: 2,129 buses offered, a 9% enhance from the earlier yr.
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Adjusted Net Income: $29.7 million, reflecting robust operational efficiency.
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Adjusted Diluted EPS: $0.91, up from the earlier yr.
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FY2024 Guidance: Adjusted EBITDA forecast raised to $130 million.
On February 7, 2024, Blue Bird Corp (NASDAQ:BLBD), a pacesetter in electrical and low-emission college buses, launched its 8-K filing, saying fiscal 2024 first quarter outcomes that set new information for the corporate. Blue Bird Corp operates primarily in two segments: Bus and Parts, with nearly all of its gross sales within the United States. The firm’s concentrate on college buses and prolonged warranties, together with its components gross sales, positions it as a key participant within the Vehicles & Parts trade.
Financial Highlights and Operational Achievements
Blue Bird Corp’s spectacular efficiency within the first quarter is marked by a 35% enhance in web gross sales, amounting to $317.7 million. The firm’s GAAP web revenue noticed a outstanding rise to $26.2 million, a $37.4 million enchancment from the prior yr. This monetary success is attributed to a mix of upper unit gross sales, which grew by 9%, and a major enhance within the common gross sales worth per unit as a result of strategic pricing actions and favorable product and buyer combine modifications.
The firm’s Adjusted EBITDA reached an all-time excessive of $47.6 million, up $51.1 million from the identical quarter final yr, reflecting a strong 15% margin. This substantial progress in profitability underscores Blue Bird’s efficient operational enhancements and cost management measures. The firm’s management in alternative-powered college buses is additional solidified with a report quarter of electrical automobile (EV) bus deliveries and a backlog of over 400 electrical college bus orders.
Management’s Perspective
“I’m extremely pleased with our groups continued progress in delivering report monetary ends in the primary quarter, stated Phil Horlock, CEO of Blue Bird Corporation. The market demand for our faculty buses stays very robust with roughly 4,600 models in our order backlog.”
“We are very happy with the primary quarter outcomes, with an all-time report Adj. EBITDA margin, stated Razvan Radulescu, CFO of Blue Bird Corporation. With higher line-of-sight into 2024, we’re elevating our fiscal 2024 full-year steerage to Net Revenue to $1.15-1.25 Billion, Adj. EBITDA of $120-140 million and Adj. Free Cash Flow of $60-70 million.”
Challenges and Industry Outlook
Despite the robust outcomes, Blue Bird Corp faces challenges reminiscent of ongoing inflationary pressures which have led to elevated uncooked materials prices. However, the corporate has efficiently navigated these challenges by implementing worth will increase and optimizing product and channel combine. The firm’s proactive strategy to market demand, notably within the EV section, is anticipated to drive additional progress, supported by funding from the EPAs Clean School Bus Program.
Looking forward, Blue Bird Corp has elevated its FY2024 steerage, reflecting confidence in its business technique and the anticipated restoration of the worldwide provide chain. The firm’s concentrate on sustainable and progressive transportation options positions it nicely for continued success within the evolving Vehicles & Parts trade.
For extra detailed info on Blue Bird Corp’s monetary efficiency and future prospects, buyers and stakeholders are inspired to evaluate the total earnings report and hearken to the earnings name.
Stay tuned to GuruFocus.com for the latest monetary information and professional evaluation on Blue Bird Corp and different vital market gamers.
Explore the whole 8-Ok earnings launch (here) from Blue Bird Corp for additional particulars.
This article first appeared on GuruFocus.
