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2021 Annual Report

The Leader
in Electric and Cleaner
Emission School Buses
$(62)
300 15
200 10

200 10
100 5

Financial Highlights
70
60
70
100
0
5
0
5060
0 0
4050
BUS UNIT NET SALES ADJUSTED EBITDA1 ADJUSTED FREE
SALES (In Millions) (In Millions) CASH FLOW1
3040 (In Millions)
Parts Adjusted EBITDA Margin
2030 Bus Adjusted EBITDA UNITS
Revenues Diesel Gas
11,317
1020
11,646 $82 UNITS
$ in millions
11,017 Revenues
010 15,000
PropaneDiesel CNG
Gas EV
$69 $70 $ in millions
$1,025 $1,019
-10 0
$991 15,000
Propane
11,317 CNG
11,646 EV 11,017
8,878
$879 10,00011,317 11,646 8,8
-10 $60 $62 $67 $55 11,017
8% 10,000 8,878
6,679 $57 $684 $44 991 1,025 1,019
87
7% 7% 5,000
$40 1,025 1,019
991
879
$34 5,000 $36
$59
6%
0
0 ’17 ’18 ’19 ’2
$931 $963 $952 $823 $625 5% ’17 ’18 ’19 ’20
Adjusted EBITDA %
Adjusted EBITDA EBITDA
Adjusted %
300 AdjustedinEBITDA
$$(1)
millions
300 $ in millions
’17 ’18 ’19 ’20 ’21 ’17 ’18 ’19 ’20 ’21 ’17 ’18 ’19 ’20 ’21 ’17 ’18 ’19 ’20 ’21
200 7%
8%
200 7% 7% 8%
7%
6%
6%

100 100

69 70 82 55 5
0 0 69 70 82
1 Reconciliation of non-GAAP measures is contained in the appendix following the 10-K. ’17 ’17 ’18 ’18 ’19 ’19’20 ’2
$(62)

2021 STOCK PRICE PERFORMANCE2 (IN DOLLARS)


2021 STOCK PRICE PERFORMANCE2 (IN DOLLARS)
12000 BLBD
BLBDRussell 2000 Index 80
10000 Russell 2000 Index 1200 70 70
1000 60 60
8000 1.2
1.2 50 50
1 800
6000 40
1
40
600 30
4000
0.8
30
0.8
0.6 400 20 20
2000
10 10
0.6 0.4 200
0 0 0
0.4 0.2 0 -10
0.2 0 8

7
0 -0.2
6

-0.2
-0.4 5

4
-0.6
-0.4
3
9/30/16 9/30/17 9/30/18 9/30/19 9/30/20 9/30/21
-0.6 2

2Stock performance
9/30/16 from the start of FY2017 to the end of FY2021 based on
9/30/17 daily weighted average stock price
9/30/18 from Bloomberg with 0% representing
9/30/19 BLBD adjusted close
9/30/20 9/30/21
price on 10/02/16, the first day of FY2017.

CE3 2021 STOCK PRICE PERFORMANCE2 (IN D


1

Three Foundational Objectives


Take CARE of Employees
• Safety
• Employee Engagement
• Voluntary Attrition

DELIGHT Customers & Dealers


• Defects Per Unit
• 30-day Warranty
• On-time Delivery

DELIVER Profitable Growth


• EBITDA
• Free Cash Flow
• % of Alt Power

2021 MILESTONES
Alternative-powered
vehicles exceed Over 550  Blue Bird-Nuvve
partnership produces  1st electric school
buses delivered to
50% electric buses delivered
or in backlog
first vehicle-to-grid
installation Colorado and Georgia
of annual sales

Blue Bird delivers its Blue Bird introduces Blue Bird begins Coliseum Capital makes
20,000th Levo’s fleet-as-a-service
leasing model
production with new
$75 million
propane-powered bus 7.3-liter
investment
Ford engine

Blue Bird
2

Letter from the President & Chief Executive Officer

Dear Fellow Shareholders,


Thanks to the hard work and dedication Our fiscal 2021 presented a number of new
of our nearly 2,000 team members, challenges for Blue Bird, similar to numerous other
industrial manufacturing firms. At the start of
Blue Bird enters 2022 well-prepared to
our fiscal year, in October 2020, a large number
address the pent-up demand for safe, of schools were still closed or had turned, in part,
reliable, and cleaner-emission vehicles to to remote learning. In the spring, just as schools
revitalize our nation’s school bus fleet. began to reopen and demand for replacement
buses surged, the global supply chain began to
Our industry leadership in alternative
slow to a crawl, impairing our ability to complete
powertrains and our company’s strong orders. We estimate that we could have delivered
underlying fundamentals put Blue Bird in an additional 2,000 units if it were not for supply
an excellent position to provide the vehicles disruptions and shortages. We also saw growing
our customers need to replace their aging inflation affecting the prices of raw materials
like steel and aluminum, essential parts and
buses and reduce their carbon footprint.
components, and overseas shipping.
We closed the year with a record backlog
All these factors put pressure on margins and
of more than 4,200 vehicles valued at
depressed our revenue and profitability for the
over $400 million, and the recently passed year. Our consolidated net revenue of $684 million
Infrastructure Investment and Jobs Act, was $195 million lower than 2020. While our bus
with $5 billion earmarked for zero- and sales were down substantially, our parts business,
low-emission school buses, reinforces our although much smaller, not only held its own but
improved in 2021, an indication that schools have
long-term prospects.
now turned to refurbishing their fleets for the
post-pandemic world. Our adjusted net income
was $8.7 million, down by $13.5 million over the
previous year.
3

Matthew Stevenson,
President & Chief Executive Officer

Retooling for Opportunities Ahead A Year of Milestones


I am very proud to report, however, that It speaks volumes about our Blue Bird team
adversity did not slow Blue Bird down. If members that they were able to overcome the
anything, it provided an incentive to build our serious obstacles we faced in 2021 and deliver
resiliency, increasing our abilities to respond 6,679 units. And thanks to their efforts, we
nimbly to contingencies in the marketplace recorded a number of milestones this year.
and the greater economy. For instance, our For the first time ever, alternative-powered
team made great strides in broadening and vehicles comprised more than 50 percent of our
strengthening our supply chain, engaging with annual sales, driven in part by the enthusiastic
impacted suppliers to find ways to expedite the reception to the Blue Bird Vision bus, which is
delivery of essential parts and working tirelessly to equipped with Ford’s all-new 7.3-liter engine and
find alternative sources for parts where possible. an advanced fuel system designed specifically
for school buses by long-term partner, ROUSH
To offset rising costs, we increased prices by
CleanTech. We also delivered our 20,000th
11 percent on new orders and instituted a
propane-powered bus, underscoring our national
new variable pricing option to give dealers and
leadership in alternative-fuel powertrains.
customers additional flexibility, depending on
the size and delivery date of their orders. Once we In addition, we took more than 500 orders for our
work though our current backlog, we expect to see electric-powered school buses this year, delivering
additional revenues from these changes flowing to first-ever electric school buses to Colorado and
our bottom line in the second half of 2022. Georgia, and solidifying our position as the top
U.S. provider of zero-emission buses. Although
electric-vehicle sales were slightly down due to
supply chain disruptions, firm orders at year-end

Blue Bird
4

We’re proud to assist our school districts achieve a clean transportation


future and connect Boulder Valley School District with Colorado’s first
electric school bus.
Jeffrey Koza
OWNER, COLORADO/WEST EQUIPMENT

were for more than 250 units, almost five times


the orders we had entering 2021.

All told, we received 9,700 orders for our internal


combustion and electric vehicles (EVs) in 2021, a
remarkable total considering that many schools
were closed for part of the year. In a meaningful
vote of confidence, six of our major dealers are
investing in all new dealerships to continue to
INCREASING enhance our customer
PROJECTED FUTUREservice
GROWTH level
LEDto our school
BY ELECTRIC AND PROPANE
ALT POWER MIX district customers.

Offering an Electrification Ecosystem


85%
To ensure our continued leadership in electric
vehicles, we are bringing a complete ecosystem
of electric products and services to our dealers
48%
51% and customers. Because many are new to
EVs, we are working side-by-side with them to
34%
determine the best buses to serve their needs
17%
and to assess their infrastructure requirements.
Once we deliver their units, we continue to
provide support, training drivers and technicians
FY2015 FY2017 FY2019 FY2021 Near-Term
and setting up telematic solutions to track bus
performance and perform diagnostics.

Equally important, we have also established a


series of innovative partnerships to help school

EV GROWTH
5

BLUE BIRD OFFERS A COMPLETE ECOSYSTEM


FOR EV SCHOOL BUS DEPLOYMENT

Financing
Identify financing
through grants, tax Infrastructure
Assessment breaks, subsidies or Assess infrastructure needs and
Determine what bus best fits the lending services. connect to the right partners
customer’s needs based on terrain, for energy sourcing and
climate and route planning. infrastructure installation.

V2G/V2X
End of Life Create vehicle-to-grid plan
Determine recycling program
for used batteries after use.
Blue Bird with revenue potential and

EV Ecosystem utility involvement.

Service & Support Deployment


Connect with dealer and EV system Build and deliver buses, as
provider to support and service bus well as offer driver, safety and
throughout its lifetime.
Telematics technician training services.
Set up a solution to
track bus performance,
diagnostics and more.

districts reduce the cost of ownership of their generating revenue. It also intelligently charges
electric fleets, currently the primary obstacle buses during nonpeak hours, further lowering
to EV adoption. The first is with Nuvve, a San energy costs and lengthening battery life. Nuvve
Diego-based green technology company. Nuvve’s software is standard on every Blue Bird EV school
bidirectional vehicle-to-grid (V2G) platform, when bus. This year, we delivered North America’s first-
combined with Nuvve V2G charging stations, ever commercial application of V2G technology to
enables districts to secure a return on their the Pekin Public School District in central Illinois.
investment even when buses are parked. Nuvve’s
Blue Bird has also teamed up with Levo Mobility, a
V2G platform networks school bus batteries into
joint venture of Nuvve and Stonepeak Infrastructure
aggregate storage devices for excess energy from
Partners, to offer districts a fleet-as-a-service
the grid, including wind and solar, that can be sold
program, providing an alternative to the upfront
back to local utilities at times of high demand,
capital costs of direct purchase. Customers can

Blue Bird
6

EV GROWTH
UNIT SALES

4,000-
6,000

1,000-
2,000
400-
600
lease V2G electric school buses, related charging
158 146
56 infrastructure, and energy management software
FY2019 FY2020 FY2021 FY2022 Est. Near-Term Long-Term for an attractive flat monthly fee. By providing
multiple paths for school districts to adopt
electrification, we are accelerating the switch to
sustainable energy.

Our Path Forward


Our way forward in 2022 is guided by our
KEY PROVISIONS OF company’s three foundational objectives: Take
THE INFRASTRUCTURE CARE of Employees; DELIGHT Customers and
INVESTMENT AND JOBS ACT Dealers; and DELIVER Profitable Growth. We
» $2.5 billion for new zero-emissions will care for our employees by embarking and
school bus purchases. embracing the journey of making Blue Bird a
» $ 2.5 billion for low-emissions school buses premier place to work in our industry. We are
(using CNG, propane, and biofuels). laser-focused on ensuring the safety of all team
members, raising their engagement level and
» F unds awarded in $500 million increments reducing levels of attrition and absenteeism.
over five years.

» P rogram administered by the U.S. For us, delight means consistently exceeding
Environmental Protection Agency. the expectations of our customers and dealers,
making incremental changes across our entire
» P rioritizes “high-need” school districts, manufacturing system that improves quality and
with at least 30 percent of students below
the poverty line. producing our vehicles on time and as promised.
7

Not only are we improving the health of our students, drivers, and
communities by reducing emissions, but our V2G capabilities allow
us to store clean electrical energy and to generate revenue by
reselling unused energy back to the grid during peak demand.
Daniel Jost
FLEET MANAGER, CITY OF PEKIN

We deliver profitable growth to our investors for Class 5–7 vehicles has been favorably received.
in our core business by selling more buses, Both our world-class after-sales support and
increasing our percentage of alternative power, long-term experience as a chassis builder creates a
and improving our operations, even as we look for differentiating advantage for Blue Bird.
incremental growth opportunities.
Our last focus, which we discussed earlier, is to
To translate our three foundational objectives into scale up for the surge in demand for electric school
action, we are focusing on four pivotal areas in buses, a trend that will be greatly accelerated by the
2022. First, we are reengaging with our workforce Infrastructure Investment and Jobs Act. It provides
post pandemic and creating pathways for our $2.5 billion specifically for new zero-emission EV bus
employees to expand their skills and build their purchases, awarded in $500 million increments over
careers. Having an engaged workforce is critical the next five years. While these funds are not nearly
to everything we do, especially our second focus, sufficient to electrify the nation’s school bus fleet,
which is to create a world-class lean manufacturing they will jumpstart the process.
environment. Our leadership team is driven by a
A Promising Future
relentless focus on better cost structure and higher
It is a real testament to the ingenuity and
throughput, efficiency, and product quality.
resourcefulness of our employees that Blue
Our third focus is harnessing our established Bird emerged from the challenges of 2021 more
competencies and capabilities to expand our total resilient and with substantial backlog and a clear
addressable market beyond school buses. Our strategy for future growth. The pandemic and
initiative to offer OEM-engineered and certified its economic and social aftereffects have only
chassis with factory-installed electric drivetrains temporarily delayed what I see as a remarkable

Blue Bird
200 8 10 10000

100 5 5000

0
LONG-TERM0 OUTLOOK DRIVEN BY0MARKET RECOVERY,
EV, AND LEAN TRANSFORMATION

UNITS
Revenues Diesel Gas OUTLOOK FY2022 GUIDANCE
$ in millions
• Challenging 1H, with expected
15,000
Propane CNG EV
11,000-
12,000-
12,500
3,000 volume and margin recovery in
11,646 2,500
11,317 11,017 11,500 1,750-
2,000 2H, Adj. EBITDA 4%-6%
10,000 8,878 1,250- 2,000
7,000- 1,500
8,000
6,679 1,500
991 1,025 1,019
879
684
750-
850
LONG TERM OUTLOOK
5,000 1,000
• Normal Year back to 11,000+
4,000- 500
400-
600
1,000-
2,000 6,000 units and Adj. EBITDA 8%-10%
0 0
’17 ’18 ’19 ’20 ’21 ’22 Nornal Long once the supply chain normalizes.
Est. Year Term
Adjusted EBITDA % • Long Term potential towards
300
Adjusted EBITDA $2Bn in Rev., with EV around
$ in millions 15%

8%-10%
11%-12% 5,000 units and Adj. EBITDA
200 10%
7% 7%
8%
6%
11%-12%
5% 4%-6%
100 5%
100- 200-
69 70 82 55 34 30-50 150 250
0 0
’17 ’18 ’19 ’20 ’21 ’22 Nornal Long
Est. Year Term

Growth path towards $2billion revenues and 12% Adj. EBITDA ($250M)

opportunity ahead for Blue Bird and its investors. I sincerely thank our customers, employees, dealers,
Once the supply chain normalizes, we expect a quick and suppliers for all that you have done this year
return to the 11,000-vehicle pace we established to help us navigate this unprecedented year. And
in the years immediately preceding the pandemic. I would also like to thank our investors—including
From there, we will steadily increase production to Coliseum Capital Management, our new anchor
12,500 vehicles, with electric vehicles representing investor, for your support and trust in our vision. As
as much as 50 percent of our deliveries by the end we look forward to 2022, the prospects for Blue Bird
of the decade. This growth should help us attain our are very bright.
long-term goal of $2 billion in annual revenues with
adjusted EBITDA of 12 percent.
Matthew Stevenson
President and Chief Executive Officer

9/30/20 9/30/21
2021 BLUE BIRD

FORM 10-K



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Corporate Information
Management Team Jared Sperling Disclaimer
Vice President, American Securities LLC The information contained in this report has been
Matthew Stevenson prepared or obtained by the company from its
President and Chief Executive Officer Matthew Stevenson books and records and other sources that the
President and Chief Executive Officer company believes to be reasonably accurate and
Razvan Radulescu Blue Bird Corporation reliable. However, such information necessarily
Chief Financial Officer incorporates significant assumptions and estimates
Corporate Office including, but not limited to, forwardlooking
Paul Yousif
Blue Bird Corporation projections and other statements, that involve
General Counsel and known and unknown risks, uncertainties and other
Corporate Treasurer 3920 Arkwright Road, 2nd Floor important factors that could cause the actual
Macon, GA 31210 results, performance or achievements of the
(478) 825-2021 company or the industry in which it operates, to
Board of Directors differ materially from any future results,
General Investor Inquiries performance or achievements implied by such
Kevin Penn—Chairman forward-looking statements.
Managing Director Blue Bird Investor Relations
American Securities LLC 3920 Arkwright Road, 2nd Floor Statements in this report that are forwardlooking in
Macon, GA 31210 nature are based on the company’s current beliefs
Gurminder Bedi Phone: (478) 822-2315 regarding a large number of factors affecting the
Former Vice President E-mail: investors@blue-bird.com company’s business. Actual results may differ
Ford Motor Company materially from expected results. There can be no
assurance that (i) the company has correctly
Chan Galbato Transfer Agent identified or assessed all of the factors affecting its
Chief Executive Officer, Cerberus Continental Stock Transfer & business or the extent of their likely impact, (ii) the
Operations & Advisory Company, LLC Trust Company publicly available information on which the
1 State Street company’s analysis is based is complete or accurate,
Adam Gray (iii) the company’s analysis is correct, or (iv) the
Managing Partner 30th Floor
company’s strategy, which is based in part on this
Coliseum Capital Management, LLC New York, NY 10004
analysis, will be successful.
Phone: (800) 509-5586
Douglas Grimm Email: cstmail@continentalstock.com
Owner and President About Blue Bird Corporation
Blue Bird (NASDAQ: BLBD) is recognized as a
V-to-X, LLC Independent Registered Public technology leader and innovator of school buses
Phil Horlock Accounting Firm since its founding in 1927. Our dedicated team
Former President and Chief Executive Officer, BDO USA, LLP members design, engineer and manufacture school
Blue Bird Corporation buses with a singular focus on safety, reliability, and
1100 Peachtree Street NE, Suite 700
durability. Blue Bird buses carry the most precious
Kathleen M. Shaw, Ph.D. Atlanta, GA 30309-4516 cargo in the world–the majority of 25 million
Senior Affiliate, ACM Strategists children twice a day–making us the most trusted
Legal Counsel brand in the industry. The company is the proven
Alan Schumacher Smith, Gambrell & Russell, LLP leader in low- and zero-emission school buses with
Former Member, Federal Accounting 1105 W. Peachtree Street, NE Suite #1000 more than 20,000 propane, natural gas, and
Standards Advisory Board Atlanta, GA 30309 electric powered buses in operation today. Blue
Bird is transforming the student transportation
industry through cleaner energy solutions. For
more information on Blue Bird’s complete product
and service portfolio, visit www.blue-bird.com. For
Blue Bird’s line of emission-free electric buses, visit
www.bluebirdelectricbus.com.

2021 Dealer Network

LEGEND
Headquarters
Blue Bird Dealer
Authorized Service Center
LISTED ON NASDAQ: BLBD

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