Blue Bird(US:BLBD)2025-02-05 21:35PART I Item 1. Financial Statements (Unaudited) For the first quarter of fiscal 2025, Blue Bird Corporation reported net sales of $313.9 million, a slight decrease from the prior-year period, while net income increased to $28.7 million, with basic EPS rising to $0.89 Condensed Consolidated Balance Sheets As of December 28, 2024, total assets increased slightly to $535.2 million, driven by higher cash and inventories, while total liabilities decreased and stockholders' equity grew to $179.7 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Dec 28, 2024 | Sep 28, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $136,119 | $127,687 | | Inventories | $163,120 | $127,798 | | Total current assets | $330,858 | $323,379 | | Total assets | $535,222 | $524,894 | | Liabilities & Equity | | | | Total current liabilities | $229,427 | $235,973 | | Long-term debt | $88,828 | $89,994 | | Total liabilities | $355,517 | $365,330 | | Total stockholders' equity | $179,705 | $159,564 | Condensed Consolidated Statements of Operations For the three months ended December 28, 2024, net sales decreased by 1.2% to $313.9 million, but net income increased by 9.8% to $28.7 million, or $0.86 per diluted share, supported by lower interest expense and higher other income Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 FY2025 (ended Dec 28, 2024) | Q1 FY2024 (ended Dec 30, 2023) | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $313,872 | $317,660 | (1.2%) | | Gross profit | $60,317 | $63,558 | (5.1%) | | Operating profit | $33,042 | $37,956 | (12.9%) | | Net income | $28,722 | $26,150 | 9.8% | | Diluted earnings per share | $0.86 | $0.81 | 6.2% | Condensed Consolidated Statements of Cash Flows For the first quarter of fiscal 2025, net cash provided by operating activities significantly improved to $26.4 million, while cash used in investing and financing activities increased, resulting in an overall increase of $8.4 million in cash and cash equivalents Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Q1 FY2025 (ended Dec 28, 2024) | Q1 FY2024 (ended Dec 30, 2023) | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,410 | $217 | | Net cash used in investing activities | $(5,094) | $(2,904) | | Net cash (used in) provided by financing activities | $(12,884) | $995 | | Change in cash and cash equivalents | $8,432 | $(1,692) | Notes to Condensed Consolidated Financial Statements The notes detail the company's business, accounting policies, and financial statement components, highlighting the impact of supply chain constraints, segment performance, and a new share repurchase program - Global supply chain constraints continued to result in higher purchasing and freight costs, but pricing actions and manufacturing improvements have allowed the company to report gross margins exceeding pre-pandemic levels28 Revenue by Product Category (in thousands) | Product Category | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Diesel buses | $124,372 | $84,998 | | Alternative power buses | $148,922 | $195,329 | | Parts | $25,091 | $23,636 | | Total Net Sales | $313,872 | $317,660 | Segment Net Sales and Gross Profit (in thousands) | Segment | Net Sales Q1 FY2025 | Gross Profit Q1 FY2025 | Net Sales Q1 FY2024 | Gross Profit Q1 FY2024 | | :--- | :--- | :--- | :--- | :--- | | Bus | $288,147 | $47,172 | $293,437 | $51,294 | | Parts | $25,725 | $13,145 | $24,223 | $12,264 | | Total | $313,872 | $60,317 | $317,660 | $63,558 | - On January 31, 2024, the Board authorized a $60 million share repurchase program, under which the company repurchased 243,450 shares for $10.0 million during the quarter ended December 28, 20247475 Management's Discussion and Analysis of Financial Condition and Results of Operations Management reports a 1.2% decrease in Q1 FY2025 net sales to $313.9 million, attributed to changes in bus product and customer mix, while maintaining strong gross margins and robust liquidity with a strong backlog - Supply chain disruptions continued in Q1 FY2025, but ongoing improvements in manufacturing and pricing actions allowed the company to report gross profit and margins materially consistent with fiscal 202490 - The company's order backlog remained strong at approximately 4,400 units as of December 28, 2024, despite selling over 2,100 units in the quarter, indicating robust demand91 Consolidated Results of Operations (in thousands) | Metric | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Net sales | $313,872 | $317,660 | | Gross profit | $60,317 | $63,558 | | Operating profit | $33,042 | $37,956 | | Net income | $28,722 | $26,150 | | Adjusted EBITDA | $45,753 | $47,604 | | Adjusted EBITDA margin | 14.6% | 15.0% | - Other income increased by $4.1 million, primarily due to the sale of certain state emissions credits for approximately $2.6 million and the absence of $1.2 million in stockholder transaction costs incurred in the prior-year period118119121 Quantitative and Qualitative Disclosures About Market Risk The company states that there have been no material changes to its interest rate, commodity, or currency risks as previously disclosed in its fiscal 2024 Form 10-K - There have been no material changes to the company's market risks, including interest rate, commodity, or currency risks, since the last annual report153 Controls and Procedures Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 28, 2024, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period155 - No changes occurred during the fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting156 PART II – OTHER INFORMATION Legal Proceedings The company is involved in legal proceedings in the ordinary course of business but does not believe the outcome of any pending cases will have a material adverse effect on its financial condition, liquidity, or results of operations - Management does not expect pending legal proceedings to have a material adverse effect on the company's financial statements159 Risk Factors The company highlights key risks, including the potential negative impact of changes in trade policies and tariffs on production costs and sales, and the adverse effect of changes in government grants and incentives for clean fuel technologies - Potential changes in trade policies and tariffs could increase component costs, which may not be fully passed on to customers, potentially reducing sales and profitability161 - Sales of alternative-powered buses are dependent on government programs and incentives; changes in these policies could negatively impact customer demand and the company's sales mix162 Unregistered Sales of Equity Securities and Use of Proceeds The company details its share repurchase program, authorized for up to $60 million, under which it repurchased 243,450 shares for approximately $10.0 million during the quarter ended December 28, 2024 Share Repurchase Activity (Q1 FY2025) | Period by fiscal month | Total shares repurchased | Average price paid per share ($) | Approx. dollar value remaining under program (in millions) | | :--- | :--- | :--- | :--- | | Sep 29 - Oct 26, 2024 | — | — | $50.1 | | Oct 27 - Nov 23, 2024 | — | — | $50.1 | | Nov 24 - Dec 28, 2024 | 243,450 | $41.22 | $40.0 | | Total | 243,450 | | | Other Information The company reports that during the first quarter of fiscal 2025, none of its directors or officers adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement - No directors or officers adopted or terminated a Rule 10b5-1 trading plan or other non-Rule 10b5-1 trading arrangement during the quarter169 Exhibits This section lists the exhibits filed with the Form 10-Q report, including corporate governance documents, warrant forms, officer certifications, and XBRL data files - The report includes several exhibits, such as CEO/CFO certifications (31.1, 31.2, 32.1) and XBRL data files, filed in accordance with SEC requirements170