Q1 2024 Blue Bird Corp Earnings Call

February 7, 2024

Question during the Q&A you can do so by pressing star followed by one on your telephone keypad.

I'll now hand, you Abdul host Mark Benfield head of Investor relations to begin.

Thank you and welcome to Blue Bird's fiscal 2024 first quarter earnings Conference call.

Audio for our call is webcast live on Blue dashboard Dot com under the Investor Relations tab.

You can access the supporting slides on our website by clicking on the presentations box on our IR landing page.

Our comments today include forward looking statements that are subject to risks that could cause actual results to be materially different.

Those risks include among others.

Matters, we have noted on the following two slides and in our filings with the SEC.

Blue Bird disclaims any obligation to update the information in this call.

This afternoon, you will hear from Blue Bird's CEO, Phil <unk> and CFO Roswell in module eschew than.

Then we will take some questions. So let's get started Phil.

Well, thanks, Mark and good afternoon, everybody, it's correct to be here and to share with you our results for our fiscal 'twenty full first quarter.

Now you'll recall that on our last earnings call. We reported record results for fiscal 'twenty, three fourth quarter and full year, while I am pleased to tell you that our momentum has not slowed down at all with a bluebird team did a fantastic job in delivering another all time record profits in the first quarter of fiscal 'twenty four.

<unk> will be taking you through the details of our financial results. Shortly so let me get started with the key takeaways for the first quarter on slide six.

As a headline size, we achieved record financial results in the first quarter fiscal 'twenty four.

I, just mentioned and as shown in our first one in the box. It was a record adjusted EBITDA for any quarter in our history and our net sales revenue was a record for any quarter in the first half of fiscal year.

So with record profits from revenue I am very pleased to tell you that we achieved an all time high adjusted EBITA margin of 15% in the first quarter and we're increasing full year guidance once again.

Yeah.

Hello, and thank you for your patient today's call will begin in a few minutes time. Thank you for standing by.

And just a few minutes RASM will take you through the financial details of what was an exceptional first quarter results for Bluebird included the comparison with last year.

[music].

As we look at the drivers for this terrific progress in Q1, it really is about maintaining and delivering the plan we laid out last year, which focuses on making significant improvements across our entire business.

Market demand for school buses continues to be very strong and our backlog for Blue Bird school buses with at a very healthy 4600 units at the end of the first quarter.

This bodes well for pricing production stability and profit margins.

Hello, all and welcome to the Blue Bird Corporation fiscal 'twenty to 'twenty four last quarter earnings My name is Lydia and will be your operator today.

Now while the supply chain issues are and definitely easing there are select constraints on a couple of chassis components across the truck and bus industry that are still limiting industry production and deliveries.

If you'd like to ask a question during the Q&A you can do so a question star followed by one on your telephone keypad.

But we are very engaged with those constrained suppliers with onsite support at their plans and we maintain the situation well.

I'll now hand, you have July Mark Benfield head of Investor relations to begin.

On that point. Despite this component constraints, we sold 9% more school buses in the first quarter and a year ago.

Thank you and welcome to Blue Bird's fiscal 2024 first quarter earnings conference call. The audio for our call is webcast live on Blue Dasburg Dot com under the Investor Relations tab you.

As I mentioned last quarter, the legacy price backlog, which hurt us in fiscal 'twenty, two and in the first quarter fiscal 'twenty three is fully behind US all of those low margin units have been sold.

You can access the supporting slides on our website by clicking on the presentations box on our IR landing page.

Every bus and our order backlog now reflects current pricing and we are priced competitively, which we can tell from our quote win rate and our incoming orders. This is an entirely different blue bird bus revenue and gross margin structure compared with just a year ago.

Our comments today include forward looking statements that are subject to risks that could cause actual results to be materially different those.

Those risks include among others.

Matters, we have noted on the following two slides and in our filings with the SEC.

On the EV front, thanks largest the first phase of the $1 billion of funding from the Epa's unprecedented 5 billion Clean School bus program.

Bluebird disclaims any obligation to update the information in this call.

This afternoon, you will hear from Blue Bird's CEO, Phil <unk> and CFO Roswell in modular SKU.

First quarter deliveries of electric buses, whereas an all time record in the quarter more than doubling from a year ago and we ended the first quarter with a strong backlog of EV orders.

Then we will take some questions. So let's just start bill.

Thanks, Mark and good afternoon, everybody, it's great to be here and to share with you our results for our fiscal 'twenty first quarter now.

As we have done for many years, we again increased our sales mix for alternative powered vehicles over last year and further strengthened our leadership position.

Now you'll recall that on our last earnings call. We reported record results for fiscal 'twenty, three fourth quarter and full year.

The higher margins and higher on a loyalty from these products contributed to our profit improvement in the first quarter.

While I am pleased to tell you that momentum has not slowed down at all with the Blue Bird team did a fantastic job in delivering another all time record profits in the first quarter of fiscal 'twenty for.

We will continue to reinvest back to the business by selectively upgrading facilities and processes enhancing the plans looking environment and as RASM will show. You later, we are doubling our engineering spending this year as we embark in exciting new product programs that will hit the market in the next two to three years through.

<unk> will be taking you through the details about financial results. Shortly so let me get started with the key takeaways for the first quarter on slide six.

As the headline safe, we achieve record financial results in the first quarter fiscal 'twenty four.

Through the efforts of the best workforce in the business' strong leadership lean process improvements and sheer hard work, we have been achieving some of the best manufacturing performance. The company has ever achieved.

As I, just mentioned and as shown in our first one in the box. It was a record adjusted EBITDA for any quarter in our history.

Bottom line, we're performing extremely well in a strong market, while delivering a greater mix of higher margin alternative powered vehicles, we're priced competitively and appropriately at today's economic environment and manufacturing efficiencies are improving.

Our net sales revenue was a record for any quarter in the first half of fiscal year.

As a result of all of these accomplishments of this quarter profitability was an all time record for Bluebird at $48 million with an exceptional adjusted EBITDA margin of 15%.

And just a few minutes RASM will take you through the financial details of what was an exceptional first quarter results for Bluebird included a comparison with last year.

Now, let's take a closer look at the financial and key operating highlights for the first quarter on slide seven.

I want to begin by saying that our first quarter financial performance is transformed from a year ago with many record highest reported we.

We sold over 2100 buses in the first quarter fiscal 'twenty, four which is substantial 9% or 172 buses above last year.

Market demand for school buses continues to be very strong.

Backlog for Blue Bird school buses with at a very healthy 4600 units at the end of the first quarter.

Incidentally that is our highest first quarter unit sales volume in more than 15 years in what is typically a seasonally challenged quarter, having just all at the start of the new school year.

This bodes well for pricing production stability and profit margins.

Those unit sales drove first quarter net revenue of $318 million. That's another first quarter sales record for Bluebird, and then notwithstanding 35% increase over last year.

But we are very engaged with those constrained suppliers with onsite support at their plans and we maintain the situation well.

So with volume up 9% and net revenue of 35% the impact of higher pricing and a richer mix of alternative power vehicles, including Evs is clearly evident in the revenue growth.

On that point. Despite these component constraints, we sold 9% more school buses in the first quarter and a year ago.

As I mentioned earlier first quarter adjusted EBITDA of $48 million is another all time record for Bluebird, and that's $51 million above last year on well above the 25% to $35 million General guidance range quarterly profits that we set at our last earnings call.

And finally adjusted free cash flow for the first quarter was about breakeven as we protected our future material needs and $21 million below last year when in fiscal 'twenty three of our aggressively cutting excess inventory left from the prior quarter RASM will cover this topic in detail in his section.

On the EV front, thanks largest the first phase of the $1 billion of funding from the EPA is unprecedented $5 billion clean School bus program.

First quarter deliveries of electric buses were at an all time record in the quarter more than doubling from a year ago and we ended the first quarter with a strong backlog of EV orders.

Overall with exceptional first quarter financial results and transformational gains from last year.

On the right hand side. The slide you can see some of the key operating highlights for the business.

As we have done for many years, we again increased our sales mix for alternative powered vehicles over last year and further strengthen our leadership position.

As I mentioned earlier demand continues to be strong with our firm order backlog at the end of the first quarter with almost $670 million and net revenue, reflecting a backlog of over 4600 buses.

The higher margins and higher on a loyalty from these products contributed to our profit improvement in the first quarter.

We will continue to reinvest back to the business by selectively upgrading facilities and processes enhancing the plans looking environments and as RASM will show. You later, we are doubling our engineering spending this year as we embark in exciting new product programs that will hit the market in the next two to three years through.

Incidentally as of Monday. This week, our backlog has grown to 5000 buses. So all of those clearly have slowed down as we enter the traditional seasonal order cycle for school districts and fleet operators.

We raised prices considerably over the past two years and the average first quarter selling price per bus in fiscal 'twenty four was an outstanding 26% higher than a year ago.

Worth about $29000 per bus and revenue.

Bottom line, we're performing extremely well in a strong market, while delivering a greater mix of higher margin alternative powered vehicles, we're priced competitively and appropriately of today's economic environment and manufacturing efficiencies are improving.

Pulp sales totaled $24 million in Q1, representing a strong 8% growth over last year and that typically slowest quarter of the year for part sales. Another great result by the parts team.

As a result of all of these accomplishments this quarter profitability was an all time record for Bluebird at $48 million with an exceptional adjusted EBITDA margin of 15%.

Turning to alternative powered buses. They represented our second highest mix of sales in any quarter, a 66% of total unit sales.

And thats four percentage points higher than last year.

Now, let's take a closer look at the financial and key operating highlights for the first quarter on slide seven.

We continue to be the undisputed leader in this space no. Other major school bus manufacturer comes close to that number incidentally I will be remiss, if I Didnt mentioned at our principal competitors ICM Thomas.

I want to begin by saying that our first quarter financial performance is transformed from a year ago with many record highest reported.

We sold over 2100 buses in the first quarter fiscal 'twenty, four which is substantial 9% or 172 buses above last year.

No longer offering the propane or gasoline powered school bus and we are once again, the only OEM supplying these important products.

Incidentally that is our highest first quarter unit sales volume in more than 15 years in what is typically a seasonally challenged quarter, having just followed the start of the new school year.

EV buses were part of that alternative power mix growth with Q1 bookings increasing by 124% over last year as we sold a quarterly record of <unk> six EV school buses that represents an all time high mix at 10% of our total sales.

Those unit sales drove first quarter net revenue of $318 million. That's another first quarter sales record for Bluebird, and then I was standing 35% increase over last year.

Additionally, we left the first quarter with 420 <unk> orders in our backlog, which is around a 9% share of our total backlog.

So with volume up 9% and net revenue of 35% the impact of higher pricing and a richer mix of alternative powered vehicles, including Evs is clearly evident in the revenue growth.

That's what approximately $130 million in revenue.

Incidentally that backlog today is now at 500, Evs, representing 10% of our total current backlog.

As I mentioned earlier first quarter adjusted EBITDA of $48 million is another all time record for Bluebird, and that's $51 million above last year, and well above the 25% to $35 million general guidance range, our quarterly profits that we set at our last earnings call.

Clearly were benefiting substantially from the $1 billion funding from the first phase of the Epa's 5 billion Clean School bus program.

I will cover later the exciting news on the second phase of the recently announced EPA funding, which is higher than was expected and will generate significant EV and propane School bus awards in the first half of 2024 calendar year.

Continuing with our <unk> successes I am incredibly proud that during the first quarter fiscal 'twenty four we received the largest single order ever of school buses from La Unified School district, following a competitive bidding process.

Overall with exceptional first quarter financial results and transformational gains from last year.

That's a 180 buses in total will deliver starting late this calendar year and importantly, this order did not utilize the Epa's clean school bus funding program.

On the right hand side of this slide you can see some of the key operating highlights for the business.

As I mentioned earlier demand continues to be strong with our firm order backlog at the end of the first quarter with all the $670 million and net revenue, reflecting a backlog of over 4600 buses.

That's a great Testament to our competitiveness and to our leadership position in the <unk> segment.

Late in the first quarter fiscal 'twenty, four we announced that we have formed an exclusive joint venture called clean bus solutions. That's a 50 50 JV with generate capital who is a leading sustainable investment and operating company focused on infrastructure transition.

Clean bus solutions will provide electric school buses and charging infrastructure as a service to <unk> customers for an affordable monthly fee over the lifetime of the service.

We raised prices considerably over the past two years and the average first quarter selling price per bus in fiscal 'twenty four was an outstanding 26% higher than a year ago, that's worth about $29000 per bus in revenue.

This turnkey service eliminates a typical high upfront cost for school districts and pay for electric bus when grants are limited and handles the entire charging infrastructure, including installation.

Pulp sales totaled $24 million in Q1, representing a strong 8% growth over last year and that typically slowest quarter of the year. The pop sales. Another great result by the parts team.

This recurring revenue business should accelerate adoption of Bluebird electric buses by school districts and will be a great new sales tool for our dealers. We will keep you posted on progress through the coming year as clean bus solutions begin to transact business.

Turning to alternative powered buses. They represented our second highest mix of sales in any quarter, a 66% of total unit sales.

And finally on the back of our first quarter results. We are once again, raising full year guidance for adjusted EBITDA and adjusted free cash flow with an all time record profit earned in Q1, reflecting a 15% adjusted EBITDA margin I am very proud of our team's accomplishments.

Thats four percentage points higher than last year.

We continue to be the undisputed leader in this space no. Other major school bus manufacturer comes close to that number incidentally I would be remiss if I didn't mention that our principal competitors ICM Thomas are no longer offering of propane or gasoline powered school bus and we are once again the only OEM.

I would now like to hand, it over to <unk> to walk through our fiscal 'twenty for first quarter financial results and updated guidance in more detail.

But to your residents.

<unk> these important products.

Thanks, Phil and good afternoon, it's my pleasure to share with you the financial highlights from Bluebird fiscal 2024 first quarter record results.

EV buses were part of that alternative power mix growth with Q1 bookings increasing by 124% over last year as we sold a quarterly record of $2 six EV school buses that represents an all time high mix at 10% of our total sales.

Quarter end is based on a close date of December 30, <unk> 2023, whereas the prior year was based on a close date of December 31 2022.

Additionally, we left the first quarter with 420 <unk> orders in our backlog, which is around a 9% share of our total backlog.

We will file the 10-Q today February seven after market close.

Our 10-Q includes additional material and disclosures regarding our business and financial performance. We encourage you to read the 10-Q and the important disclosures that contain.

That's worth approximately $130 million in revenue incidentally that backlog today is now at 500, Evs, representing 10% of our total current backlog.

The appendix attached to today's presentation includes reconciliations of differences between GAAP and non-GAAP measures mentioned on this call as well as other important disclaimers.

Clearly were benefiting substantially from the $1 billion funding from the first phase of the Epa's 5 billion Clean School bus program.

Slide nine is a summary of the fiscal 'twenty for a first quarter record results.

I will cover later the exciting news on the second phase of our recently announced EPA funding, which is higher than was expected and will generate significant EV and propane School bus awards in the first half of 2024 calendar year.

It was another outstanding operating quarter for Blue Bird with somewhat limited supply chain challenges and with an increased number of higher margin units driving both our topline and our bottom line results.

Continuing with our EV successes I am incredibly proud that during the first quarter fiscal 'twenty four we received the largest single order ever of school buses from La Unified School District.

We significantly beat the adjusted EBITDA General quarterly guidance provided in the last earnings call and in fact, we delivered again, the best quarter ever for Bluebird with 15% adjusted EBITDA margin.

Competitive bidding process.

The team pushed hard and continued doing a fantastic job and generated in 2129 unit sales volume, which was 172 units or 9% higher than prior year.

That's 180 buses in total with deliveries starting late this calendar year and importantly, this order did not utilize the Epa's clean school bus funding program.

That's a great Testament to our competitiveness and to our leadership position in the EV segment.

Record Q1, consolidated net revenue of $318 million was $82 million or 35% higher than prior year, driven by a higher number of units higher parts sales improved mix of electric buses and pricing actions that materialized in this quarter as expected.

Late in the first quarter fiscal 'twenty, four we announced that we have formed an exclusive joint venture called clean bus solutions. That's a 50 50 JV will generate capital who is a leading sustainable investment and operating company focused on infrastructure transition.

Adjusted EBITDA for the quarter was a record $48 million driven by higher margins increased part sales and margins, partially offset by increased labor costs.

Clean bus solutions will provide electric school buses and charging infrastructure as a service to <unk> customers for an affordable monthly fee over the lifetime of the service.

The adjusted free cash flow was negative $2 million and $21 million lower than the prior year first quarter.

This result was due to increased profitability, which was more than offset by an increase in strategic inventories for long lead components.

A reduction in accounts payable and a reduction in the EPA prepaid received in fiscal 2000, and thank you for it.

Our liquidity position at the end of this quarter was very strong at $184 million.

This performance was outstanding for both the topline and the bottom line.

All time record for Q1 quarterly revenue of $318 million, all time record for quarterly EV sales above 200 units.

An all time record for quarterly adjusted EBITDA of 48 million and 15%.

Moving on to slide 10, as mentioned before by Phil our backlog at the end of Q1 continues to be very strong at approximately 4600 units, including 9% EV.

I would now like to hand, it over to <unk> to walk through our fiscal 'twenty for first quarter financial results and updated guidance in more detail.

Over to your residents.

Thanks, Phil and good afternoon, it's my pleasure to share with you the financial highlights from our global fiscal 2024 first quarter record results.

Breaking down our record Q1 $318 million in revenues into our two business segments. The Boston revenue was $293 million up by $80 million versus prior year.

For the quarter and is based on a close date of December 30, <unk> 2023, whereas the prior year was based on a close date of December 31 2022.

Our average bus revenue per unit increased from 109000 to 138000, or 26%, which was largely the result of pricing actions taken over the past 18 months as well as a higher mix of electric buses.

We will file the 10-Q today February seven after market close.

Our 10-Q includes additional material and disclosures regarding our business and financial performance. We encourage you to read the 10-Q and the important disclosures that contains.

Easy sales in Q1 were also at a record level of 206 units or 114 more than last year, a 124% increase year over year.

The appendix attached to today's presentation includes reconciliations of differences between GAAP and non-GAAP measures mentioned on this call as well as other important disclaimers.

Wed like to remind you that we have announced in this fiscal year two price increases for new orders wanting last October and one four at the end of March of $2500 net per bus each in order to cover inflationary cost factors and significant long term strategic investments.

Slide nine is a summary of the fiscal 2000 for the first quarter of record results.

It was another outstanding operating quarter for our global with somewhat limited supply chain challenges and with an increased number of higher margin units driving both our topline and our bottom line results with.

Product revenue for the quarter was $24 million, representing a growth of approximately $2 million or plus 8% compared to the prior year.

We significantly beat the adjusted EBITA General quarterly guidance provided in the last earnings call and in fact, we delivered against our best quarter ever for Bluebird with 15% adjusted EBITDA margin.

This great performance was in part due to increased demand for our part of the fleet is aging as well as supply chain driven pricing actions and throughput improvements.

The team pushed hard and continued doing a fantastic job and generated in 2129 unit sales volume, which was 172 units or 9% higher than prior year.

Please also keep in mind that due to year end holidays and things, giving our fiscal Q1 has a lower number of work weeks. However.

However, this year due to the very strong backlog and improved supply chain situation. We are able to maintain production levels and did not take the pre kaufman's usual extended plant shutdowns.

Q1, consolidated net revenue of $318 million was $82 million or 35% higher than prior year, driven by a higher number of units higher parts sales improved mix of electric buses and pricing actions that materialized in this quarter as expected.

Gross margin for the quarter was a record, 20% or 17 percentage points higher than last year due to our improved operational performance and our pricing overtaking in the last two quarters. The inflationary cost of the last 18 plus months.

Adjusted EBITDA for the quarter was a record $48 million driven by higher margins increased part sales and margins, partially offset by increased labor costs.

In fiscal 2000, <unk> adjusted net income was approximately $30 million or $40 million higher than last year.

The adjusted free cash flow was negative $2 million and $21 million lower than the prior year first quarter.

Adjusted EBITDA of approximately $14 million at 15% was up compared to prior year by $51 million and 17 percentage points.

This result was due to increased profitability, which was more than offset by an increase in strategic inventories for long lead components.

Adjusted diluted earnings per share of <unk> 91.

A reduction in accounts payable and a reduction in the EPA Prepays received in fiscal 2004.

It was up $1 21 versus the prior year.

Slide 11 shows the walk from fiscal 2000, <unk> Q1, adjusted EBITDA for the fiscal 2004 to Q1 results.

Our liquidity position at the end of this quarter was very strong at $184 million.

Starting on the left of negative $3 5 million the impact of the bus segment gross profit in total was $55 million.

This performance was outstanding for both the topline and the bottom line.

All time record for Q1 quarterly revenue of $318 million.

Between volume and pricing effects net of material cost increases of $48 6 million and operational improvements of $6 4 million.

All time record for quarterly EV sales above 200 units and.

And all time record for quarterly adjusted EBITDA of $48 million at 15%.

Operational improvements consist of year over year manufacturing efficiency and throughput improvements as well as lower freight in costs.

Moving onto slide 10 as mentioned before by Phil our backlog at the end of Q1 continues to be very strong at approximately 4600 units, including 9% EV.

The favorable development in the past segment gross profit was $1 1 million driven by higher sales and improved margins as mentioned earlier in the call.

Breaking down our record Q1 $318 million in revenues into our two business segments. The Boston revenue was $293 million up by $80 million versus prior year.

He's great improvements were slightly offset by increases in our other experiences in fixed cost mainly personnel related of negative $5 million as they continue to reinvest into our business and our teams during fiscal 2004.

Our average bus revenue per unit increased from 109000% to 138426%, which was largely the result of pricing actions taken over the past 18 months as well as a higher mix of electric buses.

The sum total of all of the above mentioned developments drive our record fiscal 2004, <unk> reported adjusted EBITDA result of $47 6 million or 15%.

Easy sales in Q1 were also at a record level of 206 units or 114 more than last year, a 124% increase year over year.

Moving onto slide 12, we have extremely positive development year over year also on the balance sheet.

We ended the quarter with $77 million in cash and reduced our debt significantly by close to $15 million over the last four quarters.

Our liquidity is very strong at a record of $184 million at the end of fiscal 2000 and for Q1, the $100 million increased compared to a year ago.

The operating cash flow was a black zero in this quarter driven by an improvement in operations and margins, which was fully offset by an increase in trade working capital.

Product revenue for the quarter was $24 million, representing a growth of approximately $2 million or plus 8% compared to the prior year.

Two lower payables and higher strategic inventories, but reduction of our EPA prepaid balance and a seasonal reduction in other accrued expenses.

This great performance was in part due to increased demand for our part of the fleet is aging as well as supply chain, driven pricing excellence and throughput improvement.

Moving to slide 13 as mentioned in our last call at the end of November 2023, we refinanced our credit facility a significant better terms with a five year maturity date from November 2028.

Please also keep in mind that due to year end holidays and Thanksgiving our fiscal Q1 has a lower number of work weeks. However.

However, this year due to the very strong backlog and improved supply chain situation. We are able to maintain production levels and did not take the pre calls with usual extended plant shutdowns.

The new structure consists of over 100 million term loan with 5% per year amortization and annuity of all of our line of credit of $150 million.

The reduced covenants and extended the maturity of our loan provides <unk> with both flexibility and stability of our business gross profitability and we continue to lead the school bus industry in the alternative fuel space.

Slide 14 shows the sustainable results achieved by our team over the last four quarters generating almost $140 million and adjusted EBITDA or 11%.

In fiscal 2000, <unk> adjusted net income was approximately $30 million or $40 million higher than last year.

Adjusted EBITDA of approximately $14 million or 15% was up compared to prior year by $51 million and 17 percentage points.

Our quarterly revenues have been in the $300 million range and growing partially due to pricing realization combined with a quarter by quarter increase in <unk>, which is now approximately 10% of our sales.

Adjusted diluted earnings per share of <unk> 91.

It was up $1 21 versus the prior year.

We have beaten raise our conservative guidance every quarter due to the outstanding execution of our plans by our teams despite the still difficult supply chain environment with select suppliers.

Slide 11 shows the walk from fiscal 2000, <unk> Q1, adjusted EBITDA for the fiscal 2004 to Q1 results.

Starting on the left is negative $3 5 million the impact of the bus segment gross profit in total was $55 million split between volume and pricing effects.

Last three quarters have been in that 10% plus adjusted EBITDA range, demonstrating that we are delivering now consistently double digit performance.

Cost increases of $48 6 million and operational improvements of $6 4 million.

Finally, it is important to note that unlike in the not too distant past our pricing curve has been ahead of our costing curve, especially in the last two quarters preparing us for the significant investments lined up for 2024, and our contractual inflation factors expected ahead of us.

Operational improvements consists both year over year manufacturing efficiency and throughput improvements as well as lower freight in costs.

The favorable development in the past segment gross profit was $1 1 million driven by higher sales and improved margins as mentioned earlier in the call.

Before I talk about the updated guidance for fiscal 'twenty, four and our long term outlook on slide 15, we wanted to share with you again, some significant investments that they are starting in fiscal 'twenty four to ensure that our profitable growth strategy is successful.

Great improvements were slightly offset by increases in our other experiences in fixed cost mainly personnel related of negative $5 million as they continue to reinvest into our business and our teams during fiscal 2004.

The sum total of all of the above mentioned developments drives our record fiscal 2400, <unk> reported adjusted EBITDA result of $47 6 million or 15%.

Our engineering expenses planned for fiscal 'twenty, four or double the level of fiscal 'twenty three.

We began the integration work for the next generation of Ford gas and propane engines for the next level of emission regulation.

Moving on to Slide 12, we have extremely positive development year over year also on the balance sheet.

Additionally, we continue to evolve our <unk> offering and planned new product safety enhancement features.

We ended the quarter with $77 million in cash and reduced our debt significantly by close to $15 million over the last four quarters.

Finally, we will continue to ramp up our investment in bringing to market. The commercial EV chassis by the end of calendar 2024.

Our liquidity is very strong at a record $184 million at the end of fiscal 2000 for Q1, but $100 million increased compared to a year ago.

We are also planning to keep on our capital investments into capacity expansion production facility upgrade quality improvements in our supply chain capability and tooling towards our target of 50 <unk> per day or approximately 12000 buses per year.

The operating cash flow was a black zero in this quarter driven by an improvement in operations and margins, which was fully offset by an increase in trade working capital.

On the people side, we experienced inflationary pressure, both externally from our supply base and internally and we continue to provide very competitive benefits to our employees.

Through lower payables, and higher strategic inventories, but reduction of our EPA prepaid balance and a seasonal reduction in other accrued expenses.

We are also launching later this year, our complexity reduction initiative and we will begin the upgrade of our ERP system as well as modernization of our business intelligence and financial planning and analysis tools.

Moving to slide 13 as mentioned in our last call at the end of November 2023, we refinanced our credit facility a significant better terms with a five year maturity date from November 2028.

All of this growth combined can add up to 2% to 3% of our revenue on a run rate basis later in fiscal 2004 and beyond.

The new structure consists of over 100 million term loan with 5% per year amortization and annuity of all of our line of credit of $150 million.

On slide 16, we want to share with you our updated fiscal 2004 guidance.

The reduced covenants and extended the maturity of our loan provides <unk> with both flexibility and stability with our business gross profit probably and we continue to lead the school bus industry and the alternative fuel space.

As a reminder, we are continuing to take a transparent and conservative approach also this year as it is still somewhat uncertain supply chain environment, we're facing.

However, we have improved already all the other business levers that we could address has now demonstrated by our very strong trailing 12 months actual results.

Slide 14 shows the sustainable results achieved by our team over the last four quarters generating almost $140 million and adjusted EBITDA or 11%.

Looking forward in fiscal 'twenty, four we're maintaining our revenue to a range of 105 to one 5 billion and we are significantly increasing our adjusted EBITDA to $130 million or approximately 11% with a range of $120 million to $140 million. This is an increase of almost 50.

We have beaten raised our conservative guidance every quarter due to the outstanding execution of our plans by our teams despite the still difficult supply chain environment with select suppliers.

3% over the prior year record results.

Due to supply chain volatility at this point, we are only providing and maintaining our general quarterly ranges with.

The last three quarters have been in that 10% plus adjusted EBITDA range, demonstrating that we are delivering now consistently double digit performance.

With average remaining fiscal 'twenty fourth quarter expected to have revenue between $275 million to $325 million and adjusted EBITDA in the range of $25 million to $35 million or 9% to 11%.

Finally, it is important to note that unlike in the not too distant past our pricing curve has been ahead of our costing curve, especially in the last two quarters preparing us for the significant investments lined up for 2024 and the contractual inflation on factors expected ahead of us.

We will provide further updates in mid May after we close Q2 and gather further insight into our supply chain capabilities to support our strong backlog and increasing easy mix.

Moving to slide 17 in summary, we are forecasting a significant improvement year over year with revenue up 6% to approximately $1 2 billion adjusted EBITDA in the range of $120 million to $140 million and adjusted free cash flow of $60 million to $70 million in line with our typical target of.

Our engineering expenses planned for fiscal 2004 or double the level of fiscal 'twenty three.

50% of adjusted EBITDA.

On slide 18, we would like to give you an overview of our capital allocation for fiscal 'twenty, four and the exciting share repurchase program, we recently announced.

We began the integration work for the next generation of Ford gas and propane engines for the next level of emission regulation.

Additionally, we continue to evolve our <unk> offering and planned new product safety enhancement features.

Our capital allocation strategy balances investments for long term profitable growth.

Turn of value to our shareholders and maintain a conservative cash position by year end.

Finally, we will continue to ramp up our investment in bringing to market. The commercial EV chassis by the end of calendar 2024.

On the left side our sources of cash consists of a very strong cash flow from operations after tax and interest of $148 million existing.

We are also planning to keep on our capital investments into capacity expansion production facility upgrade quality improvements in our supply chain capability and tooling towards our target of 50 boxes per day or approximately 12000 buses per year.

Existing cash in fiscal 'twenty, three year end of $77 million and $5 million in dividends from our joint venture in micro book we.

We do not expect to add new debt this year.

On the people side, we experienced inflationary pressures both externally from our supply base and internally and we continue to provide very competitive benefits to our employees.

On the right side, we have three uses of cash growth shareholders and debt repayments.

<unk> growth is concerned we plan to use a not to exceed $25 million in each of these categories.

R&D and engineering expenses Capex for growth and maintenance and funding our newly formed clean bus solutions JV combined with potentially other small M&A activities.

All of this growth combined can add up to 2% to 3% of our revenue on a run rate basis later in fiscal 2004 and beyond.

Moving on to shareholders category, we are very happy to have announced recently our stock buyback program for up to $60 million over the next two years.

On slide 16, we want to share with you our updated fiscal 2004 guidance.

This is supported by our strong existing cash and free cash flow guidance and we believe it is the best way at this point to return value to our shareholders.

As a reminder, we are continuing to take a transparent and conservative approach also this year as it is still somewhat uncertain supply chain environment, we're facing.

Finally in addition to the required term loan principal payment of $5 million, we plan to pay down the $35 million existing revolver balance to zero during fiscal 'twenty, four and maintain a conservative cash balance at year end in excess of $50 million.

However, we have improved already all gathered business levers that we could address has now demonstrated by our very strong trailing 12 months actual results.

Looking forward in fiscal 'twenty, four we're maintaining our revenue to a range of one 5% to one 5 billion and we are significantly increasing our adjusted EBITDA to $130 million or approximately 11% with a range of $120 million to $140 million. This is an increase of almost 50.

On slide 19, we wanted to also reiterate our long term outlook.

The 11% adjusted EBITDA margin is firmly now in our updated short term outlook and why is the supply chain further normalizes.

<unk> to sell approximately 9500 units, including 500 units Evs and generate $150 million on $1 $35 billion in revenues this could be as early as 2025.

80% over the prior year record results.

Due to supply chain volatility at this point, we are only providing and maintaining our general quarterly ranges with.

With average remaining fiscal 'twenty fourth quarter expected to have revenue between $275 million to $325 million and adjusted EBITDA in the range of 25% to $35 million or 9% to 11%.

Looking to the medium term, our EV growth and operational improvements can support volumes of 10500 to 11000 units, including Evs in the range of 2500 to 3500 units generating revenues of one five to $1 7 billion with adjusted EBITDA of 175 to 200.

We will provide further updates in mid May after we close Q2 and gather further insight into our supply chain capabilities to support our strong backlog and increasing easy mix.

Or 11, 5% to 12%.

Our long term target remains to drive profitable growth towards approximately $2 billion in revenue comprising of up to 12000 units of which up to 5000, rvs and generate EBITDA in excess of $250 million or 12, 5% plus.

We are incredibly excited about <unk> future and now I'll turn it back over to Phil.

50% of adjusted EBITDA.

Thanks, Ross fund that was a great explanation of our Q1 financial results and our outlook.

On slide 18, we would like to give you an overview of our capital allocation for fiscal 'twenty, four and the exciting share repurchase program, we recently announced.

Let's now move onto slide 21.

I introduced this slide at our last earnings call. So I won't spend as much tomanek today as our priorities and our strategy are unchanged as they should be.

Our capital allocation strategy balances investments for long term profitable growth.

The chart on the left illustrates the three priorities of continuing to drive us.

Turn of value to our shareholders and maintain a conservative cash position by year end.

Taking care of our employees delighting, our customers and dealers and delivering profitable growth.

On the left side our sources of cash consists of a very strong cash flow from operations after tax and interest of $148 million existing.

The chart on the right provides more texture around the specific strategies that we are pursuing that both align with our priorities and drive our full year growth plans.

Existing cash in fiscal 2003 at year end of $77 million.

At the center is our ultimate objective to drive sustained profitable growth.

And $5 million in dividends from our joint venture in micro, but we do not expect to add new debt. This year.

As you look at it accomplishments in fiscal 'twenty, three we transformed the business from losses to record profitability, achieving our full year margin of 8%.

On the right side, we have three uses of cash growth shareholders and debt repayments.

But as far as growth is concerned we plan to use or not take $2 $25 million in each of these categories.

For fiscal 'twenty four we just increased our full year earnings guidance to reflect an 11% adjusted EBITDA margin and over the next couple of years, we plan to grow that margin, 12% and then beyond.

R&D and engineering expenses Capex for growth and maintenance and funding our newly formed team bus solutions JV combined with potentially other small M&A activities.

Our specific strategy to focus on delivering these financial goals and are spelled out in this chart, namely <unk>.

Moving onto shareholders category, we are very happy to have announced recently our stock buyback program for up to $60 million over the next two years.

<unk> shipping safety, both in the workplace and with our products is Paramount to us and we are investing both engineering and Capex in these areas in fiscal 'twenty four.

This is supported by our strong existing cash and free cash flow guidance and we believe it is the best way at this point to return value to our shareholders.

Best products and features we seek to differentiate ourselves providing more value to our customers.

Our buses are purpose built from the ground up for transporting children's safely with many unique features.

Another derivative of a truck chassis a lot most of our competitors on our customers understand the value of this.

Leading in quality durability of alternative power is the cornerstone of our product planning and development and we will continue to differentiate in these areas.

On slide 19, we wanted to also reiterate our long term outlook there.

The 11% adjusted EBITDA margin is firmly now in our updated short term outlook and was the supply chain further normalizes.

Having competitive costs through lean manufacturing and efficient throughput strong supplier relationships and she is smart product design, a recession to compete in a business where competitive bids are required.

Back to sell approximately 9500 units, including 500 units Evs and generate $150 million on 135 billion in revenues this could be as early as 2025.

And after the sale, we need to provide great service and ensure vehicle uptime throughout the 15 years or more that are buses need to run.

Looking to the medium term our EV growth on operational improvements can support of volumes of 10500 to 11000 units, including Evs in the range of 2500 to 3500 units generating revenues of one five to $1 7 billion with adjusted EBITDA of 175 to 200.

This means partnering with our exclusive dealer network that covers every corner of the United States and Canada with our dealers having to average tenure with us of over 30 years.

As I have said many times before on these calls you can't make it in the school bus business without a fully capable and experienced dealer network that can reach more than 10000 school districts that operate their own bus fleets and 3400 independent owner operators of school buses.

Our 11, 5% to 12%.

Our long term target remains to drive profitable growth towards approximately $2 billion in revenue.

Following these core strategies have been key to our transformation and will continue to drive our full year plans.

Pricing of up to 12000 units of which up to 5000, rvs and generate EBITDA in excess of $250 million or 12, 5% plus.

Let's now turn to slide 'twenty, two and look at the latest impact of the federal government's clean School bus funding program, which is so important in helping us accelerate the adoption of electric and propane vehicles in fiscal 'twenty four and beyond.

We are incredibly excited about <unk> future and now I'll turn it back over to Phil.

Thanks, Ross fans that was a great explanation of our Q1 financial results and our outlook.

As a reminder, we are just entering the second year of this five year program, which provides $5 billion of funding of electric and propane powered school buses there was still a $4 billion available after the first year of funding.

Let's now move on to slide 21.

I introduced this slide at our last earnings call. So I won't spend as much time on it today as our priorities and our strategy are unchanged as they should be.

The chart on the left illustrates the three priorities of continuing to drive us.

The second year, which referred to by the EPA as a 2023 program provides for two rounds of funding totaling at least one 5 billion.

Taking care of our employees delighting, our customers and dealers and delivering profitable growth.

The chart on the right provides more texture around the specific strategies that we are pursuing that both align with our priorities and drive our full year growth plans.

Now thats about $500 million more than was anticipated and it appears to be an acceleration by the EPA to deploy to $5 billion in total funding.

At the center is our ultimate objective to drive sustained profitable growth.

As the left chart shows ramp to application of <unk> three Gram program will completed in August 23, and in January 24, the EPA announced they are increasing the funding for $400 million to.

As you look at the accomplishments in fiscal 'twenty, three we transformed the business from losses to record profitability, achieving our full year margin of 8%.

To $965 million due to the high level of grant applications.

For fiscal 'twenty four we just increased our full year earnings guidance to reflect an 11% adjusted EBITDA margin and over the next couple of years, we plan to grow that module, 12% and then beyond.

A total of two 737 electric and propane buses were awarded and the winners will have until December 'twenty five to purchase their buses using these awards.

Our specific strategies folks are delivering these financial goals and are spelled out in this chart, namely <unk>.

We expect Bluebird buses to represent around 30% of the ultimate orders amount to approximately 800 electric and propane school buses through this program.

<unk> shipping safety, both in the workplace and with our products is Paramount to us and we are investing both engineering and Capex in these areas in fiscal 'twenty four.

Looking to the right chart immediately after announcing the ramp to award results. The EPA announced these ran three rebate program, which is also part of the 23 program will now total at least $500 million.

Best products and features we seek to differentiate ourselves providing more value to our customers.

Our buses are purpose built from the ground up for transporting children's safely with many unique features.

Applications are being accepted until a week from now.

Then another derivative of a truck chassis a lot most of our competitors and our customers understand the value of this.

It is anticipated award winners will be notified by May 2024, and we will have until April 2026 to purchase buses and close out their awards.

Leading in quality durability of alternative power is the cornerstone of our product planning and development and we will continue to differentiate in these areas.

If our win rate holds at about 30% Bluebird should expect to receive around 450 electric and propane school bus orders from this third round.

Having competitive costs through lean manufacturing and efficient throughput strong supplier relationships and she is smart product design, our recension to compete in that business will competitive bids are required.

Together both of these funding Ram should generate all of us for at least 4300 electric and propane school buses and associated infrastructure, which is great for the industry and particularly for Blue bird with about 250 orders anticipated.

And after the sale, we need to provide great service and ensure vehicle uptime throughout the 15 years or more that are buses need to run.

This means partnering with our exclusive dealer network that covers every corner of the United States and Canada with our dealers have an average tenure with us of over 30 years.

Now with the deadline for purchased from grants from these two rounds being as late as April 26, the original likelihood that orders and corresponding deliveries could be late than we have been anticipating pushing back deliveries into fiscal 2025 as end customers deal first with the charging infrastructure needs.

We will work with our dealers and end customers to pull out as many as we can into fiscal 2024, both of prudency, we have cut our EV bookings forecast for this year from 900 units to 800 units.

Following these core strategies have been key to our transformation and we will continue to drive our full year plans.

So let me now wrap up the earnings call and the outlook for the business on slide 23.

Roslyn is with the raised guidance for fiscal 'twenty, four and I am showing that some of those metrics at the midpoint of guidance here.

We are being prudent on our bookings outlook only increasing volume by 3% over fiscal 'twenty three at this time as we still deal with two specific suppliers of constrained chassis components that are impacting the broader truck and bus industries, but we did manage these very well in 'twenty three and we can build more in fiscal 'twenty four we will.

As a reminder, we are just entering the second year of this fund.

We'll just as we did last year.

Net revenue of $1 $2 billion will be a new record for Bluebird up 6% from fiscal 'twenty three.

Adjusted EBITDA guidance of $130 million is almost 50% higher than the record $88 million, we delivered in fiscal 'twenty three in.

Importantly, we are planning on an 11% EBITDA margin in fiscal 'twenty four up three percentage points from fiscal 'twenty, three which is a couple of years ahead of the plan we had been sharing with you.

We have confidence in achieving this margin after recording an impressive 15% adjusted EBITDA margin in the first quarter fiscal 'twenty four.

It should be noted that the first quarter did benefit from an exceptionally high mix of Evs at 10% of unit sales within our strong total mix of alternative fuel vehicles at 66% of sales.

Now this mix may not repeat through all quarters, especially with extended time granted by the EPA for customers to complete their purchase and deployment of the new EV funding awards that I mentioned earlier Youll remember that as late as April 2020 states to get them in service.

Further as <unk> pointed out we are doubling our engineering work in fiscal 'twenty, four and supported new product programs, which is contained within our 11% margin outlook for fiscal 2000 and for full year, along with the potential economic impact of our first collective bargaining agreement with the USW is expected later.

In the year.

Finally, as I mentioned earlier, we're looking to grow EBIT unit sales to 800 buses in fiscal 'twenty for the substantial 47% increase overall sales last year.

As you can see on the right chart. There is still a lot of pent up demand. Following the low ends to sales in 'twenty 2021 and 'twenty two and the bus leaves his age by a couple of years.

<unk> is forecasting a compound annual industry growth rate of 7% from the end of fiscal 'twenty three through fiscal 2007 and is great news for our business and it's great news for our profit outlook.

With residual supply chain challenge is still impacting the altra business the ability to build all the units near term is not a given but the demand is clearly there and thats whats really important.

After executing a substantial transformation across our business. The company is performing extremely well, we will continue to improve operating performance and look forward to sustained profitable growth and a robust market ahead.

On that note as <unk> covered in his section, our recently announced $60 million share repurchase program illustrates our confidence in the business outlook, our ability to generate cash and our commitment to drive shareholder value.

The future's incredibly bright for Bluebird and we are confident in achieving what have been our long term goal of 12% EBITDA margin within the next couple of years.

I want to thank our nearly 2000 employees for all the hard work and dedication in delivering our all time record quarterly profit in Q1 on top of a record full year profit last year.

Adjusted EBITDA guidance of $130 million is almost 50% higher than the record $88 million, we delivered in fiscal 'twenty three.

As well as our expanding dealer body are critical to our successes.

That concludes our formal presentation today or delegated it back to our moderator for the Q&A session. Thank you.

Importantly, we are planning on an 11% EBITDA margin in fiscal 'twenty four up three percentage points from fiscal 'twenty, three which is a couple of years ahead of the plan we have been sharing with you.

Thank you.

Please press star followed by the number one if you'd like to ask a question and answer all your devices and need to likely be net short anticipate.

We have confidence in achieving this margin after recording an impressive 15% adjusted EBITDA margin in the first quarter of fiscal 'twenty four.

Maybe change your mind. Your question has already been on stage you can withdraw your question My question, Scott I'll like by the numbers.

It should be noted that the first quarter did benefit from an exceptionally high mix of Evs at 10% of unit sales within our strong total mix of alternative fuel vehicles at 66% of sales.

Our first question today comes from Mike Zaremski of D. A Davidson. Your line is open. Please go ahead.

Okay.

Now this mix may not repeat through all quarters, especially with extended time granted by the EPA for customers to complete their purchase and deployment of the new EV funding awards that I mentioned earlier, you will remember that as late as April 2020 states to get them in service.

Yes, hi, good afternoon, and thanks for taking my question.

Hi, Brian I guess I wanted to ask first about Hello, there, yes, I guess I wanted to ask first about.

The quarterly outlook that you put out there you kind of year end from last quarter that the.

The lowest quarter of the year will be $275 million.

Can you just put up a quarter of $318 million in your fiscal first quarter, which I believe.

Further as <unk> pointed out we are doubling our engineering work in fiscal 'twenty four in support of new product programs, which is contained within our 11% margin outlook for fiscal 2000 and for full year, along with the potential economic impact of our first collective bargaining agreement with the USW is expected.

<unk> is usually the.

The leased revenue.

Because of the because of the school calendar and most fiscal years.

Let me a hard time figuring out and I do recognize that there was some <unk> in there you didn't try to back out the price effect.

Evs, it's hard to imagine.

Later in the year.

Finally, as I mentioned earlier, we're looking to grow EBIT unit sales to 800 buses in fiscal 'twenty for a substantial 47% increase overall sales last year.

If the rest of the year typically from a unit level, whether its DVR is if theyre usually up from the first quarter you, having a quarter of this year that is $205 million.

Is there anything on the calendar or schedule that we should be thinking about here.

As you can see on the right chart. There is still a lot of pent up demand or in the low ends to sales in 'twenty 2021 and 'twenty two and the bus leaves his age by a couple of years.

That I'm missing that would cause you to have a quarter.

Calpine is about $275 million.

Acte's forecasting a compound annual industry growth rate of 7% from the end of fiscal 'twenty three through fiscal 2007, and Thats, Great news for our business and it's great news for our profit outlook.

And high margins in the reservoir and thank you for the question. So regarding the seasonality of Q1, so before Covid. Indeed, this was the lowest revenue and lowest number of unions because historically, we took extended shutdown for the plant.

With residual supply chain challenge is still impacting the altra business the ability to build all the units near term is not a given where the demand is clearly there and that's what's really important.

To do extended maintenance work, but also because of that time. The order backlog was very low after the start of the school year and so as I mentioned in my remarks. This year, we will manage.

We maintain the speed of production and we did not take an extended shutdown. So we only took a couple of days around Christmas and Thanksgiving break. So we did have indeed more working days in this Q1 than ever before.

On that note as raws Bank Covenant his section, our recently announced $60 million share repurchase program illustrates our confidence in the business outlook, our ability to generate cash and our commitment to drive shareholder value.

In terms of the remaining quarters, we are we want to be conservative in our revenue guidance and as I said.

Supply chain still has some constraints, especially on those two particular suppliers. So should the supply of part b lower than the midpoint. This is how we might get to a lower quarter below $300 million, whether it comes through the total number of buses or through the percent of <unk> inside that number.

The future's incredibly bright for Bluebird and we are confident in achieving what had been a long term goal of 12% EBITDA margin within the next couple of years.

I want to thank our nearly 2000 employees for all the hard work and dedication in delivering our all time record quarterly profit in Q1 on top of a record full year profit last year.

Okay, and just a follow up there.

As well as our expanding dealer body or critical to our successes.

Have any planned shutdown for the rest of the year just to kind of make.

That concludes our formal presentation today or delegated it back to our moderator for the Q&A session. Thank you.

Make up what you Couldnt do in the first quarter or you're just going to go forward.

I think about next holiday season.

Thank you.

Hey, Mike This is Phil here I'll, just take that I mean.

Please press star followed by the number one if you'd like to ask a question and answer all your devices, Amit would likely be next door to anticipate.

We're able to flex up if we can later in the year I mentioned on my comments that.

If you change your mind your question has already been answered.

Like we did last year, we can build more we will build more I mean, thats, where we stand in D&O, but we're being a little conservative we're very active with a couple of constrained supply as we mentioned.

Julia question My question Star followed by the numbers.

I had a really great obviously throughput through the first quarter were just been a bit prudent tender and the balance of the year.

Our first question today comes from Mike Hickey of B a day.

Allison Your line is open. Please go ahead.

At this point.

Great Great experience and that you also had growth in the in the sale and the unit sales during the quarter two that was exciting.

Okay.

Yes, hi, good afternoon, and thanks for taking my question.

It doesn't appear to be on some of your competitors had growth.

Hi, Brian I guess I wanted to ask first about Hello, there, yes, I guess I wanted to ask first about.

And their unit sales in the quarter could you maybe comment on.

The quarterly outlook that you put out there you kind of reiterated from last quarter that.

Blueberries market share.

You are gaining share and.

The lowest quarter of the year will be $275 million, you just put up a quarter of $318 million in your fiscal first quarter, which I believe is usually the.

Give me two answered is why is that and why maybe you said it would be appreciated.

Well, we don't tend to talk too much about share I mean, we definitely have gained some share over the last trailing 12 months, obviously in the fiscal year as a short timeframe now and things change and different we're just entering that what we call the <unk>.

The leased revenue.

Because of the because of the school calendar and most fiscal years.

Let me a hard time figuring out and I do recognize that there was some <unk> in there you didn't try to back out the price effect.

All the season, frankly, when people ramp up and start thinking about buses for school start.

Ev's, it's hard to imagine.

But I would say our share is strong is holding well.

If the rest of the year typically from a unit level, whether its DVR is if theyre usually up from the first quarter you, having a quarter of this year that is 200 and say $5 million.

A lot of activity a lot of interest I mentioned about our win rate on auto rate supports a strong demand. So I think we're feeling.

Is there anything on the calendar or schedule that we should be thinking about here.

We're confident of what were saying I mean, we we have great faith in our ability and we have a great product range to this very expensive as you know I've talked many times about no. One has a product range, we've got from electric to.

That I'm missing that would cause you to have a quarter.

Calpine is about $275 million.

Hi, Maury just in the reservoir and thank you for the question. So regarding the seasonality of Q1, so before Covid. Indeed, this was the lowest revenue and lowest number of unions because historically, we took extended shutdown for the plant.

Propane to gas to diesel type it on type as we're on taxes on type D. So we got by far the best product range. So we're confident in our with confidence in our outlook and what we're doing.

Great maybe one last one for me.

To do extended maintenance work, but also because of that time. The order backlog was very low after the start of the school year and so as I mentioned in my remarks. This year, we will manage.

The increased engineering cost that you have.

Mentioned.

A couple of million dollars, maybe a little left and that roughly equates to about two points of margin.

On this year's guidance.

So could you maybe tell us.

You think that it sounds like without that you'd be at EBITDA margins of perhaps 13%. This year all of these onetime costs. If we will see a flat year next year.

Hello experiment, you should be seeing a 13% EBITDA margin business kind of 11% EBITDA margin and in a more normalized.

In terms of the remaining quarters, we are where you want to be conservative in our revenue guidance and as I said.

Engineering investment environment.

Yeah, Mike Thanks for the question <unk>. So the actual the year over year. The increase is $12 5 million. So in double to $25 million. So thats about 1% of sales on a year over year basis.

And we do expect to maintain this elevated level for the next couple of years. Some of these projects are multiyear projects, especially with powertrain and some other product enhancements for the next couple of years, we will sustain this level thereabout.

Okay, and just a follow up there do you have.

Any plant shutdown for the rest of the year just to kind of.

Make up what you Couldnt do in the first quarter or you're just going to go forward.

Thanks, very much I appreciate that clarification and I'll pass it along thank you.

I think about next holiday season.

Thanks Helane.

Hey, Mike This is Phil here I'll, just take that I mean, we're able to flex up if we can later in the year I mentioned on my comments that.

Our next question comes from Eric Stine of Craig Hallum.

Line is open.

Hi, everyone. Thanks for taking the questions.

Well first of all I didn't cover nuclear long tendency almost $50 million in EBIT in the first quarter, it's quite something.

There are really great obviously throughput through the first quarter, we've just been a bit prudent tender and the balance of the year.

And with that in mind as I think about the remainder of the year and you just touched on it but maybe I'll ask it a different way or clarify.

At this point.

Great Great experience and that you also had growth in the in the sale and the unit sales during the quarter two that was exciting.

So Phil.

Are you seeing <unk> home price increases or not we're actually a little bit ahead of where you see materials Costco.

It doesn't appear to be on some of your competitors had growth.

And their unit sales in the quarter could you maybe comment on.

Is that in the case in the world.

Where you think maybe EBIT is more skewed towards the first thoughtful second thoughts.

On blueberries market share.

You are gaining share and.

Give me two answers one on the ice side and why maybe you said it would be appreciated.

Yes, I think <unk> talked about in his script. So I'll just let Ivan statistic jump in here on this one.

Alright.

And thanks for the question so as I mentioned in my remarks, Indeed, our pricing curves is now head of the costing constant curve, especially for the last two quarters.

Bigger order season, frankly, when people ramp up and start thinking about buses for school start.

And also as highlighted.

With the upcoming investments, whether it's on the product and powertrain in R&D, whether it's into Capex and manufacturing capabilities, which includes also a component of an already in there.

But I would say our share is strong is holding well.

A lot of activity a lot of interest I mentioned about our win rate on order rates supports a strong demand. So I think we're feeling.

There is inflation from the supply chain or on the people side on this cost are coming mostly starting in Q2 and through Q3 and Q4. So the costs are backend loaded and the pricing curve is now, let's say almost maximize for the year. So indeed, we do expect.

Propane to gas to diesel type rate on type as we're on type CS on type D. So we got by far the best product range. So we're confident in our we're confident in our outlook and what we're doing.

Somewhat lower.

EBITDA in Q2 to Q4 compared to Q1.

You recall you recall, what we said Eric was that we priced.

Great maybe one last one for me.

So we priced $2500 and every bus fixed price in October start of our fiscal year and then we price against six months later, we will be another pre price increase will go on dealers know about it they have it accepted it.

The increased engineering cost.

Mentioned.

$500 million, maybe a little less than that and that roughly equates to about two points of margin.

On this year's guidance.

When we.

So could you maybe tell us.

We've been with our dealers we look at every single bid we do we have opportunity to adjust the price up or adjust it down as we see fit with our dealers, but we're keeping a really close really really close tabs on this.

You think that.

Without that you'd be at EBITDA margins or perhaps 13%. This year are these onetime costs. If we will see a flat year next year, just as a thought experiment you should be seeing a 13% EBITDA margin business kind of 11% EBITDA margin in a more normalized.

I think it's relevant explain is just.

We've used the term conservative in our outlook for the rest of the year and will continue to be so because you can never know what happens in a constrained environment was still dealing with.

Engineering investment environment.

Yeah, Mike Thanks for the question <unk>. So the actual the year over year increase was $12 5 million. So in double to $25 million. So thats about 1% of sales on a year over year basis.

So I think in the position we're in right now is a good question.

Yeah, No I can appreciate it's still being conservative given all of this.

What's going on maybe just turning to well.

Excuse me the EPA funding.

And we do expect to maintain this elevated level for the next couple of years. Some of these projects are multiyear projects, especially with powertrain and some other product enhancements. So for the next couple of years, we will sustain this level thereabout.

Mentioned, well first of all good to see that.

The deadlines to actually get the funding that's been closed out I know for <unk>.

Around one.

That infrastructure was a big issue I mean, as you think about trying to call things.

Hi, Thanks, very much I appreciate that clarification and I'll pass it along thank you.

As much as you can forward into fiscal 'twenty, four where do you think can stand on the infrastructure side is that still a limiting factor or do you see that easing at all.

Thanks Helane.

Our next question comes from Eric Stine of Craig Hallum.

Your line is open.

Yes, I think it definitely is I think look I think everyone's getting better at it we are active with several infrastructure providers.

Hi, everyone. Thanks for taking the questions.

<unk>.

Well first of all having covered you for a long time to see almost $50 million in EBITDA in the first quarter was quite something.

But I think.

Certainly the pace of activity in the first year of this caught a few by surprise.

And with that in mind as I think about the remainder of the year and you just touched on it but maybe I'll ask it a different way or clarify.

They weren't quite ready for the utility companies already charging equipment was in the right place.

Phil.

And actually I think I mentioned on last call we had we.

Are you seeing <unk> home price increases are now you're actually a little bit ahead of where you see materials Costco.

We had less than <unk> three vehicles were canceled others had a lot of cancellation because they were not ready and they just pulled out.

If that is the case is something where you think maybe EBIT is more skewed towards the first half from the second I guess I'll start there.

And I think that's really the gating factor I was mentioning one has been a little cautious I said look <unk> second half of this year. We've got awards are being granted and given to people for both these rounds, let's say by May and then they've got until April of 2006, as the endpoint or wish to install these buses and.

Yes, I think <unk> talked about in his script. So I'll just let he wants to just jump in here on this week.

And thanks for the question so as I mentioned in my remarks, Indeed, our pricing curve is now head of the costing constant curve, especially for the last two quarters.

We're going to work on charging stations first it feels like to me and we're helping them and we're working on the charges they need.

But obviously it could well push back a little bit when they want that Boston is I'm not going to get buses before they know what they got charging stations in place.

And also as highlighted.

With the upcoming investments, whether it's on the products and powertrain in R&D, whether it's into Capex and manufacturing capabilities, which includes also a component of NRT in there whether it's inflation from the supply chain or on the people side on this cost are coming mostly.

And that's the challenge now for all of US in this industry to help that and move it along but.

Again.

The Fantastic news is EPA stepped up this round two and round three to $1 5 billion without going to a $1 billion for the year $1 5 billion for the year, while they have extended the timeframe now like I said before we're going to do everything we can to accelerate our deployment because we like doing that piece a right thing to do although what would the charging guys that we work with and others.

Starting in Q2 and through Q3 and Q4, so the costs are backend loaded and the pricing curve is now, let's say almost maximized for the year. So indeed, we do expect.

And we work with our end customers to help them.

Somewhat lower.

EBITDA in Q2 to Q4 compared to Q1.

Got it.

That's helpful. And then maybe last one for me just on the clean bus solutions joint venture.

You'll recall you recall, what we said Eric was that we priced.

So we priced $2500 and every bus fixed price in October start of our fiscal year and then we price against six months later, we will be another price increase will go on dealers know about it they have it accepted it.

Early returns on that and is that something where.

You would expect I mean, do you see people waiting to see if the EPA pull we're able to get either grants or rebates.

When we.

And then they turn to the joint venture with Lotte financing solution or do you think Paul.

We have built with our dealers we look at every single bid we do we have opportunity to adjust the price up or adjust it down as we see fit with our dealers, but we're keeping a really close really really close tabs on this.

That's certainly the case and what people go that route regardless Pamela.

Monthly costs that similar to diesel.

I think it's relevant explain is just.

Yes, I will.

We've used the term conservative in our outlook for the rest of the year and will continue to be so because you can never know what happens in a constrained environment, we're still dealing with.

Look at it this way.

First of all obviously EPA grants are really exciting mother farmers has a school buses on the road and we're talking about funding 4300 with this next round. So there's a huge appetite and huge oversubscription of school dish of the warrant electric buses. That's why they stepped up from one to one 5 billion. So the EPA.

So I think the position we're in right now is a good place to be.

Yeah, No I can appreciate it's still being conservative given all thats.

What's going on maybe just turning to.

Excuse me the EPA funding.

There's a big demand is what I'm, saying, so definitely outside of this.

Mentioned, well first of all good to see that.

The deadlines to actually get the funding and that that's been closed out I know for <unk>.

Side of the EPA money and there are other grants around by the way the things <unk> been different states, but this clean bust loose gives a chance for a really affordable get rid of the upfront sticker shock of an EV getting installed linear business quickly in your district quickly. So we are very excited about that so they go hand in hand and frankly.

Wound one.

That infrastructure was a big issue I mean, as you think about trying to call things.

As you can forward into fiscal 'twenty, four where do you think can stand on the infrastructure side is that still a limiting factor or do you see that easing at all.

I mean, obviously, the EPA is such a tremendous opportunity to accelerate.

Yes, I think it definitely has I think look I think everyone's getting better at it.

But our clean both solutions activity too we've got a ton of interest in it from our dealers and their customers and we'll just keep working that through the year here and let you know when we get a transaction start hitting.

Our active with several infrastructure providers.

But I think.

Certainly the pace of activity in the first year of this caught a few by surprise there.

We werent quite ready for the utility companies all the charging equipment was in the right place.

Okay. Thank you.

Thank you.

And actually I think I've mentioned on last call we had we.

Our next question comes from Craig Irwin Roth and Cowen. Please.

We had less than <unk> three vehicles were canceled others have a lot of cancellations because they were not ready and they just pulled out.

Please go ahead your line is open.

And I think that's really the gating factor I was mentioning one has been a little cautious I said look <unk> second half of this year. We've got awards are being granted and given to people for both these rounds, let's say by May and then they've got until April of 2006 as endpoint I wish to install these buses and theyre going to work on charging stations for.

Good evening gentlemen, congratulations on the really strong quarter.

Thanks, Greg even coming into it.

Yes.

Definitely so much deserved.

Even even coming into the quarter there was quite a lot of interest around the gross margin trajectory and you gave us just another really chunky number this quarter.

It feels like to me and we're helping them and we're working on the charges they need.

Can you maybe talk a little bit about.

But obviously it could well push back a little bit when they want their buses are not going to get buses before they know where they got charging stations in place and Thats. The challenge now for all of US in this industry to help that and move it along but again, it's the fantastic news.

The retreat of your your competition the other major school bus Oems retreating from the alternative fuel market.

And how this could impact your gross margins.

In the conventional business of the business, where you have excelled over the last many years.

<unk> stepped up this round two and round three to $1 5 billion without going to a $1 billion for the year $1 5 billion for the year, while they have extended the timeframe now like I said before we're going to do everything we can to accelerate our deployment because we like doing that piece a right thing to do with the charging guys that we work with and others.

Does this impact the longer term potential margin trajectory for Bluebird.

And then how should we be looking at the mix and the impact on margins over the next couple of quarters is this may be part of the conservatism that you are giving us in the <unk>.

With our end customers to help them.

The forward EBITDA guidance comments.

Got it.

Okay.

That's helpful. And then maybe last one for me just on the clean bus solutions joint venture.

Yes, Craig this is Phil here, why don't I I'll kick off that.

I don't really like to comment on what our competition is doing what I do know is that.

Curious early returns.

On that and is that something where.

We bid together on state bids, we attend different conferences and with their together and they're no longer offering.

You would expect I mean, do you see people waiting to see if the EPA pull we're able to get either grants or rebates.

The product that we're both offer in the propane and gasoline they just got a diesel and electric offering out in the marketplace.

And then they turn to the joint venture with Lotte financing solution or do you think so.

All I can tell you is we pick a different competitor right where enough 13th 14th year actually now with an exclusive with Ford and Roush, which is pretty strong relationship. We have there with a company called Psi and they're no longer offering it so I'll defer to them on why they did that obviously, it's exciting for us.

That's certainly the case and what people go that route regardless.

Yeah.

Our monthly costs that similar to diesel.

Yes.

Look at it this way.

First of all obviously EPA grants are really exciting mother farmers thousand school buses on the road and we're talking about funding 4300 with this next round. So there's a huge appetite and huge over subscription of school district. The warrant electric buses. That's why they stepped up from one to one 5 billion. So the EPA.

We are the leaders in this space.

You look at our mix of fuel vehicles, it's been over 60% our power is that call. It alternative to diesel for for quite a while now our competition's footprint has been quite different even with that powertrain that they had and so yes. We're excited about the opportunity that brings because.

Demand is what I'm, saying, so definitely outside of this.

Outside of the EPA money under other grants around by the way the things that <unk> been different states, but this clean bust loose gives a chance for a really affordable get rid of the upfront sticker shock of an EV getting installed linear business quickly in your district quickly. So we are very excited about that so they go hand in hand and frankly.

Propane, we know as ultra low emissions is a great product to guests.

I guess, a great rebate and a grant from the EPA fund to make it very attractive to regret other grand surround to support it it's a terrific product along with the Aloha get a low maintenance gasoline product that's super inexpensive to run. So you put that together we feel in good shape I'm not going to commit on I see big share girl.

I mean, obviously, the EPA is such a tremendous opportunity to accelerate.

But clean bus solutions activity too, we've got a ton of interest in it from our dealers and their customers.

But I can tell you obviously not surprising we were looking at who is driving those buses today and what we can do for them. So that's really important I.

We'll just keep working that through the year here and let you know when we get a transaction start hitting.

I think on the if I can move to the EV mix side, it's a difficult one.

Yeah.

To predict I mean, obviously, 10% mix in the first quarter, we got 10% mix in our current backlog. We're talking about 800 now on a volume of sort of eight 750, we're looking at midpoint, so more like 9% in total for the year and we're just waiting to see a big piece of that will be the EPA grants I'm, just a little cautious on.

Okay. Thank you.

Thank you.

Our next question comes from Craig Irwin Roth and KN.

Please go ahead your line is open.

Good evening, gentlemen, and congratulations on the really strong quarter.

Thanks, Craig even coming into it.

How quickly.

Those awards when the given how quickly the order is going to come in and how quickly we can build them for adults and thats driven by 2% when do they want it and when can we build it I mean, there are still constraints in the in the battery business. You know there is no one battery manufacturer out there building tax I can say I can build Edison Huang of whatever pace you want.

Yeah.

Definitely so much deserved.

Even even coming into the quarter there was quite a lot of interest around the gross margin trajectory and you gave us just another really chunky number this quarter.

Can you maybe talk a little bit about.

The retreat of your your competition the other major school bus Oems retreating from the alternative fuel markets.

One recently dropped out if you like I don't know what going on there with <unk>. So I mean, it doesn't affect us, but nevertheless, it's a sign of things that are happening in the industry. So I think we're being a little prudent right now and probably looking at as I've laid out 888, 750 total volume probably at 8% to 9% mix for the balance of the.

And how this could impact your gross margins.

In the conventional business of the business, where you have excelled over the last many years.

Does this impact the longer term potential margin trajectory for Bluebird and then how should we be looking at the mix and the impact on margins over the next couple of quarters is this maybe part of the conservatism that you are giving us in the <unk>.

If we can build more if we get more orders and we certainly will because it's a priority for us with our margins on those products, obviously customers who won there.

Best product in the market. So that's about where we are Craig I hope that answers your question.

The forward EBITDA guidance comments.

Okay.

Very helpful. Thank you Paul.

So my next question is around your expectations you put in the presentation around the Epa's.

Okay.

Hey, Craig This is Phil here, why don't I I'll kick off that.

I don't really like to comment on what our competition is doing what I do know is that.

<unk> program round to advance rate was 30% win rate is dramatically lower.

We bid together on state bids, we attend different conferences and with their together and they're no longer offering.

And your long term share in the alternative fuels markets and it really is mostly the same people the same group that EPA that's handling.

The product that we're both offering the propane and gasoline they just got a diesel and electric offering out in the marketplace.

<unk>.

The awards that the vouchers.

All I can tell you is we pick a different competitor 13th 14th year actually now with an exclusive with Ford and Roush, which is pretty strong relationship. We have there was a company called <unk> and they're no longer offering it so I'll defer to them on why they did that obviously, it's exciting for us.

For the adoption of EV School buses.

Funding opportunities.

All important.

You've done way better than 40% of them in the past can you maybe talk a little bit about.

Whether or not you think that that EPA is under pressure to share this between different Oems.

We are the leaders in this space.

<unk>, maybe just talk.

<unk> on the market that youre considering with knowledge.

Different programs and.

Awesome.

Commitments from some customers in Hawaii, 30% I guess is the question I'm asking.

Yes, well why 30% is sort of a target we put out there theres a lot of activity around this and when you look at who is bidding I mean, we know it's ourselves and our major competitors IC and Thomas Lion bus BYD agree with these guys you covered them all theyre all in there have been really penetrated are.

Great product to guests.

I guess, a great rebates and a grant from the CPA fund to make it very attractive to regret other grants around to support it it's a terrific product along with a low a low maintenance gasoline product.

Super inexpensive to run so you put that together, we feel in good shape I'm not going to commit on I see big share girls favorite I can tell you obviously not surprising we were looking at who is driving those buses today.

Business of school buses.

Significantly not the newer guys. If you look at it in totality. It is the big three so to speak right.

And what we can do for them. So that's really important I think on the if I can move to the EV mix side, it's a difficult one.

Tends to get the bulk of the business, but I think right now I don't.

See the EPA is targeting share in this they are not looking at it.

To predict I mean, obviously, 10% mix in the first quarter, we got 10% mix in our current backlog. We're talking about 800 now on a volume of sort of eight 750, we're looking at mid point, so more like 9% in total for the year and we're just waiting to see a big piece of that will be the EPA grants I'm, just a little cautious on <unk>.

There are when you look at the last granite round.

While we got a lot of the physicians that this is the one I'm talking now the 'twenty three grant that we call. It round to a that was just announced we sort of know where we stand on that so far.

But a lot of fleet customers ones from the walls and they will be choosing their own buses a lot of school districts that we traditionally haven't sold too, but a lot of awards or the fleet operators and I'm talking about the <unk> of July.

How quickly.

Those awards when they are given how quickly the order is going to come in and how quickly we can build them for adults and thats driven by 2% when do they want it and when can we build it I mean, there are still constraints in the in the battery business. There's no one battery manufacturer out there building tax I can say I can build Edison Huang of whatever pace you won.

We all know them right for student.

<unk> FTA they've got awards. So obviously they are a selected which bus theyre going to use yet as such so we're being a little prudent right I mean, 30% set a good target to go far love to see US beat it will definitely be there today looking at our market share I can see what we are.

One recently dropped out if you like I don't know if <unk> going on there with <unk>. So I mean, it doesn't affect us, but nevertheless, it's a sign of things that are happening in the industry. So I think we're being a little prudent right now and probably looking at as I've laid out 888, 750 total volume probably at 8% to 9% mix for the balance of the.

But this is this is all in February to apply and obviously all of these manufacturers are putting in applications. All of these dealers are putting in applications and as many as end customers as possible. Upon demand. So we haven't got this captive to our cell. This is sort of broad network of all of those districts and operators out there while we got to make sure is.

If we can build more if we get more orders than we certainly will if it's a priority for us with our margins on those products, obviously and customers we won there.

I'll try and do our best to to make sure. They pick all buses and that's what we're going to Costco and going to work out, but we put 30% out there as a target.

Best product in the market. So that's about where we are Craig I hope that answers your question.

Thank you. So my last question is really one of clarification.

Okay.

Very helpful. Thank you Paul.

So my next question is around your expectations you put in the presentation around the Epa's.

The 180 buses from Ali United.

What a win right no EPA funding behind that and it's really just state and local funding so.

Clean School bus program round, two and round three.

30% win rate is dramatically lower.

Really strong win.

Those 180 units included in the 420 <unk>.

Then your long term share in the alternative fuels markets.

<unk>.

You said was in backlog at the end of December or is that incremental to the.

And it really is mostly the same people the same group that EPA that's handling.

The EV school bus backlog.

<unk>.

The awards the vouchers.

They were not in the backlog at the end of the TV or the full 20, they want to know they are not in that number.

For the adoption of EV School buses.

Funding opportunities.

Correct.

So important.

Thank you hey, congrats on the quarter.

You have done way better than 30% of them in the past can you maybe talk a little bit about.

Thanks, a lot congrats I appreciate it thank you.

Okay.

Whether or not you think that that EPA is under pressure to share. This.

We have no further questions in the queue. So I'll turn the call back over to Chi.

Yes.

Different Oems.

Closing remark.

Maybe just.

Well, thank you Lydia and thanks, everyone for joining us on the call today. We do appreciate your continued interest in Blue Bird and we look forward to updating you again on our progress next quarter.

<unk> on the market that youre considering with knowledge.

Different programs and.

Different.

Commitments from some customers and why 30% I guess is the question I'm asking you.

Just a couple of comments I want to make I think last year, you saw a momentum increasing throughout the year as profitability improves as we move through the quarters and we have continued on the same path by delivering impressive all time record quarterly profit in the first quarter of fiscal 'twenty four.

Yes.

30% is sort of a target we put out there theres a lot of activity around this and when you look at who is bidding I mean, we know it's ourselves and our major competitor IC and Thomas Lion bus BYD agree with these guys you covered them all theyre all in there have been really penetrated our business of school buses.

And with that solid base behind it. So that's why we raised our guidance once again projecting a full year adjusted EBITDA margin of 11% for fiscal 'twenty four as a reminder, this is a full three percentage points above last year's then record profitability level and we're confident in getting to a 12% margin within a couple of years.

Significantly not the newer guys. If you look at it in totality. It is the big three so to speak right, who tends to get the bulk of the business, but I think right now.

As in the supply chain constraints continue to lease and we see growing our business.

I don't see the EPA is targeting share in this they are not looking at it.

So with that said you have any further questions. Please don't hesitate to follow up with our head of Investor Relations Mark Benfield and thanks again for all of you for joining us today at Blue Bird and have a great evening Tonight.

There are when you look at the last granite round.

While we got a lot of decisions that this is the one I'm talking now the 'twenty three grants that we call it rounded.

That was just announced we sort of know where we stand on that so far.

This concludes today's call. Thank you for joining you may now disconnect your lines.

A lot of fleet customers ones from awards and they will be choosing their own buses.

A lot of school districts that we traditionally haven't sold too, but a lot of awards or the fleet operators and I'm talking about the end of July.

We all know them right for student.

See SGA they've got award so obviously, they have a selected which bus theyre going to use yet so we're being a little prudent right I mean, 30% on a good target to go far love to see US beat it will definitely be there today looking at our market share I can see where we are.

But this is this is all in February to apply and obviously all of these manufacturers are putting in applications. All of these deals are putting applications.

These end customers as possible upon demand. So we haven't got that is captive to ourselves. This is sort of a broad network of all of those districts and operators out there while we got to make sure is.

I'll try and do our best to make sure they pick all buses.

So I'm going to welcome, but we put 30% out there as a target.

Thank you. So my last question is really one of clarification.

The 180 buses from Ali United.

What a win right no EPA funding behind that and it's really just state and local funding so.

A really strong win.

Are those 180 units included in the <unk> that you.

You said was in backlog at the end of December or is that incremental to the.

The EV school bus backlog.

There were no there were not in the backlog at the end of the PV of the 401 or they want to not only in that number.

Correct.

Thank you hey, congrats on the quarter.

Thanks, a lot Greg I appreciate it thank you.

Okay.

We have no further questions in the queue. So I'll turn the call back over to Chi.

Yes.

Closing remark.

And with that solid base behind it. So that's why we raised our guidance once again projecting a full year adjusted EBITDA margin of 11% for fiscal 'twenty four as a reminder, this is up a full three percentage points above last year's then record profitability level and we're confident in getting to a 12% margin within a couple of years.

As in the supply chain constraints continue to lease and we see growing our business.

So with that said should have any further questions. Please don't hesitate to follow up with our head of Investor Relations Mark Benfield and thanks again for all of you for joining us today at Blue Bird and have a great evening Tonight.

Okay.

This concludes today's call. Thank you for joining you may now disconnect your lines.

Budd and have a great evening.

Q1 2024 Blue Bird Corp Earnings Call

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