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Oct 03, 2020
Blue Bird Q4 2020 Earnings Report
Blue Bird's Q4 2020 performance was marked by net sales decrease and COVID-19 impact, offset by cost reductions and pricing strategies.
Key Takeaways
Blue Bird Corporation reported a decrease in net sales for the fourth quarter of fiscal year 2020, alongside a slight increase in net income compared to the same period last year. The company faced lower volumes and manufacturing disruptions due to COVID-19, which were partially offset by bus pricing and cost reduction initiatives. Adjusted EBITDA saw a decrease due to the aforementioned challenges.
Net sales decreased by 18.1% to $281.4 million due to lower bus unit sales.
Net income increased slightly to $11.9 million, up from $11.6 million in the prior year.
Adjusted EBITDA decreased to $21.9 million due to lower volume and production inefficiencies.
Gross profit margin declined by 3.1 points to 10.5% due to COVID-19 impacts.
Blue Bird
Blue Bird
Forward Guidance
Blue Bird anticipates uncertainty around the timing of schools returning to normalcy in FY2021, but they are providing a wide range for guidance metrics, which they expect to narrow as the pandemic's control becomes clearer. They announced initial net revenue guidance of $750M-975M, with Adj. EBITDA between $40M-$65M and Adjusted Free Cash Flow of $(5)-$20M.