DIESEL | PROPANE | GASOLINE | CNG | ELECTRIC

THE
MOST TRUSTED
SCHOOL BUS
2019 ANNUAL REPORT
 WHAT WE STAND FOR
 E COME TO WORK EVERY DAY WITH ONE COMMON GOAL — TO DESIGN, BUILD,
W
SELL AND SERVICE THE WORLD’S FINEST SCHOOL BUS. THAT’S WHAT WE DO — NO
DISTRACTIONS, NO COMPETING PRIORITIES. WE ARE HEIRS TO A RICH LEGACY, ONE
OF LISTENING TO OUR CUSTOMERS, EMBRACING THEIR NEEDS, AND DELIVERING
INNOVATIONS THAT LEAD THE MARKET.
WE COMMIT OURSELVES TO FOUR DRIVING PRIORITIES — SAFETY, QUALITY, DURABILITY
AND SERVICEABILITY. WE EMBODY THE INTERESTS OF EVERY CHILD THAT RIDES US,
EVERY DRIVER THAT DRIVES US, EVERY SERVICE TECHNICIAN THAT SERVICES US AND
EVERY DISTRICT THAT BUYS US. MORE THAN A BUSINESS, THIS WORK IS OUR
HERITAGE, AND WE HAVE BEEN AT IT SINCE 1927 — THAT’S PURPOSE DRIVEN.

OUR WINNING CULTURE

Seize Opportunities Trust, Respect, One Team, One

and Always Strive to Honesty and Blue Bird: Common
Be Better Integrity Vision and Goals

BLUE BIRD CORPORATION

 LETTER FROM THE PRESIDENT AND CEO

DEAR FELLOW
SHAREHOLDERS,

We ended the decade with our best financial performance in more than ten years and are
positioned well for future growth. Our fiscal 2019 adjusted EBITDA of $82 million was
17% above last year and our net sales revenue exceeded $1 billion for the second
consecutive year, setting an all-time record for Blue Bird. Importantly, our average bus
selling price in fiscal 2019 was about $4,000, or 5%, above a year ago. We sold more than
11,000 buses for the second year in a row and we grew our alternative-fuel bus sales by
more than 20% in a strong, but flat industry. We continued our transformational initiatives
to improve our cost structure that began in 2018 and delivered cumulative cost savings
over the past two years of nearly $40 million – that’s an outstanding achievement by our
Blue Bird team! At the same time, we dealt with economic headwinds from the impact of
significant tariffs on purchased material by increasing prices across our entire product
range. Our three-pronged strategy – structural ongoing cost reductions, increased mix of
higher-margin alternative fuel-powered buses and pricing for economics, is the cornerstone
of our profit and margin growth plan. I am very pleased with our progress in 2019 … but
we have more to deliver and are just getting started!

 Easy to Do Skilled and Inspired

Business With Relentless Focus on Team Focused
and Understand Product Innovation: on Building a
Customer Needs Drive to Win Better Bus

2019 ANNUAL REPORT 1

 THE MOST TRUSTED SCHOOL BUS
Our Vision for Blue Bird says it all, “The
Most Trusted School Bus”. Nothing is
more important to us than delivering
this aspirational promise, represented by
unparalleled safety, best-in-industry quality
and durability, undisputed leadership in
alternative fuels, exciting and differentiated
products and features that customers want
and can afford, and outstanding service and
support after the sale. When we do all this
right, we build trust and loyalty and grow
shareholder value. These attributes drive
us every day, as we strive to build, sell and
service the world’s finest school bus.
A SAFER FUTURE
Our unrelenting passion for the work that we
do at Blue Bird is evident in my conversations
and meetings with our employees, our dealers
and our customers. Our products are different
from our competitors, and what’s more, our
products make a difference to the lives of
students, drivers and service technicians. Let
me explain why I make this bold statement.
First, I challenge anyone to say that
there is a safer bus on the road today
than Blue Bird. We build our buses to the
highest standard of safety, exceeding the
Federal Motor Vehicle Safety Standard. In our
mind, safety is not an option; it is the most
important and fundamental attribute of a
school bus. Every Blue Bird bus is certified
to meet the rigorous testing requirements of
Colorado Rack and Kentucky Pole certification.
These tests are designed to recreate impact
scenarios that are only faced in the worst
accident situations, such as rollovers and
massive impacts, and ensure the maximum
protection for the onboard passengers. Your
children’s safety is our business, that’s why
we build additional strengthening into every
Blue Bird bus – standard practice for us, but
optional equipment for our competitors.
Second, we don’t build a chassis for use
in both truck and school bus applications,
as we believe that could be a compromised
solution. Others do that, but we don’t. We
provide a purpose-built school bus from
the ground up, with safety and reliability
top of mind. As such, our bus is full of
unique features – from the steep rake of

Safety Comes Standard

It’s in Our DNA

At Blue Bird, every bus we produce

exceeds the Federal Motor Vehicle
Safety Standard for school buses.
Stringent Colorado Rack and Kentucky Pole
tests are standard on Blue Bird buses, but
optional for our competitors. That makes
Blue Bird the safest and toughest bus in the
market. Nothing is more important to us
than safely transporting the most precious
cargo on the planet.

To learn more about our standard testing, visit

www.blue-bird.com/standardsafetyfeatures.

2 BLUE BIRD CORPORATION

 our hood that ensures best-in-class forward
vision for the driver, to the extensive use of
special fasteners that never need torquing
throughout the life of the bus. That’s safety
built-in!

Third, we care about the environment and

the future of our planet and will continue
to invest in innovation that provides a cleaner
world for our children. Our leadership in
alternative fuels is a testament to this – with
our top 10 dealers alone, the propane buses
they sold in 2019 reduced NOx emissions
by over 1.2 million pounds! What’s more,
our exclusive propane buses are certified to
NOx levels at one tenth of the EPA’s and our
competitors’ standard. With over 40% growth
in our propane bus sales last year, our message
is being heard – with Blue Bird propane, you
can have the safest, cleanest and lowest-cost-
of-ownership of any bus in the market. But
that’s not all. In 2019, we launched the most
extensive range of zero-emission, electric-
powered school buses in North America
covering all body styles, and have secured over
100 orders to date. We believe in providing
innovative products that are both affordable
and safe.
We ended the decade with
our best financial result in more
than ten years and are positioned
well for future growth. Our three-
pronged strategy -- structural
ongoing cost reductions, increased
mix of higher-margin alternative
fuel-powered buses and pricing for
economics -- is the cornerstone of
our profit and margin growth
plan.
PHIL HORLOCK
President & CEO
POWERED BY

CNG

Alternative Fuels
The Undisputed Leader POWERED BY POWERED BY

CNG PROPANE

Blue Bird offers the widest range of

alternative-to-diesel products in the POWERED BY POWERED BY
POWERED BY
POWERED BY

market: propane, gasoline, electric and PROPANE CNG ELECTRICITY GASOLINE

CNG across all body styles.

Our exclusive ultra-low-NOx propane and

POWERED BY POWERED BY
all-new zero-emission electric buses make the POWERED BY

environment cleaner and our children safer. With GASOLINE PROPANE PROPANE
thousands more alternative-fueled vehicles on
the road than all of our competitors combined,
we are the undisputed leader in the fastest-grow-
ing segment of the market.
POWERED BY POWERED BY
GASOLINE GASOLINE

2019 ANNUAL REPORT 3

 We make
investments to
generate great returns.
From our new automotive-
grade paint facility, to restructuring
our quality processes in our plant, we
continue to lead the way in efficient
bus manufacturing. Big things are
coming, and we look forward to
continuing to deliver the most trusted
school bus to customers around the
world.

TREY JENKINS
Chief Operating Officer

Robotic Paint Facility

Automotive-Grade & Zero-Waste

Blue Bird’s all-new 60,000-square-foot

bus-painting facility provides best-in-class
paint application, drives efficiencies and
implements a zero-to-landfill waste program.

Automotive-grade technology provides

outstanding quality through consistent and
repeatable application of paint. The outcome
is a thicker coat of paint, flawless application
and less paint required.

4 BLUE BIRD CORPORATION

 +407 11,017 21%
Growth in alternative-fuel
New alternative-fuel C & D Buses sold
customers 14,337 including Micro Bird powered bus sales

TRANSFORMATIONAL INITIATIVES cost savings that began in the second half

Since 2010, we have nearly doubled our
production while halving our plant facilities,
thanks to the experience and capabilities of
our outstanding workforce in Fort Valley,
Georgia. In 2018, we began a new wave of
transformational initiatives to support future
growth and to drive continuous improvement
in quality and efficiencies.
Over the past year, our team worked
diligently on three key initiatives:
Attacking the total cost of material and
services, evaluating how and what we buy,
from insurance to steel to safety goggles.
This systematic approach, along with tenacity
and sheer hard work, has yielded significant
of 2018. We continued to drive out costs in
2019, achieving further savings of $18 million
and we are well-positioned going forward to
capture more savings from our pipeline of
innovative ideas.
Building an all-new 60,000 sq. ft,
robotic, climate-controlled paint facility.
This state-of-the-art, automotive-grade
facility addresses our key capacity bottleneck
and ensures premium paint quality over
the lifetime of our buses. The paint facility
reached full production in late 2019 and is
a great example of Blue Bird investing in
innovation to benefit our customers.

The Most Trusted Bus

You Can Have It All

For nearly a century, Blue Bird has led

the industry with a reputation for
innovation, safety and affordability.

No-one builds a bus like Blue Bird. We

surpass industry standards in safety and
durability, and are passionate about a safer,
greener world with our alternative-fuel
technologies. We don’t do this because we
are required to—but because it is the right
thing to do.

2019 ANNUAL REPORT 5


$4,000
Significant increase
in selling price per bus
48%
Record alternative
fuels unit-sales mix
21%
Increase in
4,428
alt fuel unit sales
2018
Our Dealers
School Bus Specialists
Our exclusive, franchised dealer
network services the United States,
Canada and countries across Central
and South America.
Our 2019 Dealer of the Year was Canyon
State Bus Sales. With over 50% market
share, our Arizona-based dealer is a perennial
stellar performer. With its all-new and
expansive facility launched in 2016, Canyon
State epitomizes the “All-In” commitment
we expect from our Blue Bird dealers!
6 BLUE BIRD CORPORATION
Modernizing our production line, rigorously
optimizing nearly 250 manufacturing stations.
This process examines each in-station process,
from the tools our people use to opportunities
for automation, to the way that inventory is
delivered to each station. Benefits from these
exciting improvements will be realized in 2020
and beyond.
CLARITY OF 2020 VISION!
The school bus industry continues to flourish.
In fiscal 2019, the North American school bus
market yet again reached a near-record level of
around 34,000 units, the fourth-highest sales
6000
year since 1985. With new grants available for
5,343
alternative fuels, a stable outlook for housing
5000
prices and property taxes, and increasing
customer interest in replacing aging diesel-
4000
powered school buses, we are confident in
3000
a continued strong school bus market. We
expect the 2020 industry to be another year of
2000
close-to-record school bus sales.
1000
2020 should be another big year for Blue
Bird too. With the implementation of our all-
0
2019 new, robotic-paint facility, as well as ongoing
updates to operations and processes in our
 manufacturing plant, we expect and demand
continuous improvement in the quality of
our buses. We will also be launching new
alternative-fuel offerings, as we continue
to set the standard for the fastest-growing
segment in the industry. We have a proven
track record in alternative fuels with more
than 65% market share, and we celebrated
industry-leading milestones with the delivery
of our 15,000th propane bus and 5,000th
gasoline bus in 2019. We have a long runway
for future growth with our exclusive best-in-
class products. Together with annual pricing-
to-recover economics, our transformational
cost reductions and increased sales of
alternative fuels are the foundation of our
plan for continued profit and margin growth.
We grew both Gross Margin and EBITDA
Margin by more than a percentage point
in 2019. We remain confident and focused
in our plans to do so again in 2020, as we
move toward our near-term goal of 10%+
EBITDA margin. All this is driven by our vision
to provide our customers with, “The Most
Trusted School Bus”.
We are pleased that you are with us on
this journey, and I would like to take this
opportunity to thank all of our customers,
employees, dealers, suppliers and shareholders
for their continued support.
One Team…One Focus…One Blue Bird

GROWING SHAREHOLDER VALUE

Our free cash flow generation continues to
Phil Horlock
be an outstanding feature of our business
model, where we typically turn at least 50%
of our EBITDA into cash. This allows us to
President & Chief Executive Officer
make investment choices that provide our
shareholders with attractive returns on their
investment and we will continue to pursue
opportunities.

Our Employees
One Team, One Blue Bird

With over 2,200 employees, we are proud

to have the most skilled, experienced,
professional and passionate workforce in
the school bus industry.

From our fabricators, to our welders, to our

corporate staff, we are all working together
toward one common goal: to design and build
the most trusted school bus in the market.
One team... One Focus... One Blue Bird!

2019 ANNUAL REPORT 7

 2019 BLUE BIRD

FINANCIAL HIGHLIGHTS
Bus Unit Sales Net Sales Adjusted EBITDA1 Adjusted Free Cash Flow1
(in millions) (in millions) (in millions)
Parts Adjusted EBITDA Margin
Bus Adjusted EBITDA

11,649 $82
11,317 11,017
10,378 10,616 $70 $72 $70 $45 $44
$69
$991 $1,025 $1,019 $40
$919 $932
$36
$62 $67
$60 $33
$57 $56 8% 8% 8%
7% 7%

$862 $876 $931 $963 $952

2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

12000 2019 STOCK PRICE PERFORMANCE2 50

BLBD Russell 2000 Index
1200
10000
1000 40
80%
8000 800
70% 30
6000 600
60%
65% 20
4000 400
50%
10
2000 200
40%

0 0 +31%
0 30%

20% 80
70
10%
60 8
0 50 7
9/28/18 -10% 40 6
30 5
09/30/2016 03/31/17 09/31/17
2003/31/18 09/30/18
4
03/31/19 09/27/19

10
1 Reconciliation of non-GAAP measures is contained in the appendix following the 10-K.
3
2Stock performance based on daily weighted average stock price from Bloomberg 0 2
with 0% representing BLBD adjusted close price on 10/02/16, the first day of FY2017.
Note that FY2017, FY2018 and FY2019 ended on September 30, 2017, September 29, 2018 and September 28, 2019, respectively.
6

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8 BLUE BIRD CORPORATION

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This Annual Report on Form 10-K (this “Report”) of Blue Bird Corporation (“Blue Bird” or the “Company”) contains forward-
looking statements. Except as otherwise indicated by the context, references in this Report to “we,” “us” and “our” are to the
consolidated business of the Company. All statements in this Report, including those made by the management of the Company, other
than statements of historical fact, are forward-looking statements. These forward-looking statements are based on management’s
estimates, projections and assumptions as of the date hereof and include the assumptions that underlie such statements. Forward-
looking statements may contain words such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “estimate,” “project,”
“forecast,” “seek,” “target,” “anticipate,” “believe,” “estimate,” “predict,” “potential” and “continue,” the negative of these terms,
or other comparable terminology. Examples of forward-looking statements include statements regarding the Company’s future
financial results, research and trial results, regulatory approvals, operating results, business strategies, projected costs, products,
competitive positions, management’s plans and objectives for future operations, and industry trends. These forward-looking statements
relate to expectations for future financial performance, business strategies or expectations for our business. Specifically, forward-
looking statements may include statements relating to:
‡ the future financial performance of the Company;
‡ changes in the market for Blue Bird products; and
‡ expansion plans and opportunities.

These forward-looking statements are based on information available as of the date of this Report (or, in the case of forward-looking
statements incorporated herein by reference, as of the date of the applicable filed document), and current expectations, forecasts and
assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied
upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking
statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or
otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and
uncertainties, our actual results or performance may be materially different than those expressed or implied by these forward-looking
statements.

Any expectations based on these forward-looking statements are subject to risks and uncertainties and other important factors,
including those discussed in this Report, particularly the sections titled “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations.” Other risks and uncertainties are and will be disclosed in the Company’s prior and
future SEC filings. The following information should be read in conjunction with the financial statements included in this Report.

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Factors Affecting Our Revenues

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Factors Affecting Our Expenses and Other Items

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Total cash used in financing activities

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2019 BLUE BIRD

CORPORATE INFORMATION
MANAGEMENT TEAM Alan Schumacher DISCLAIMER
Former Member, Federal Accounting
Phil Horlock The information contained in this report has been
Standards Advisory Board prepared or obtained by the company from its
President and Chief Executive Officer
Connor Wentzell books and records and other sources that the
Phil Tighe
Vice President, American Securities LLC company believes to be reasonably accurate and
Chief Financial Officer reliable. However, such information necessarily
Trey Jenkins incorporates significant assumptions and estimates
Chief Operating Officer Corporate Office
including, but not limited to, forward-looking
Blue Bird Corporation projections and other statements, that involve
Tom Roberts
3920 Arkwright Road, Suite 200 known and unknown risks, uncertainties and
Chief Administrative Officer
Macon, Georgia 31210 other important factors that could cause the
Mark Terry (478) 825-2021 actual results, performance or achievements of
Chief Commercial Officer the company or the industry in which it operates,
Paul Yousif General Investor Inquiries
to differ materially from any future results,
General Counsel and Blue Bird Investor Relations performance or achievements implied by such
Corporate Treasurer 3920 Arkwright Road, Suite 200 forward-looking statements.
Macon, Georgia 31210
Statements in this report that are forward-looking
Phone: (478) 822-2315
BOARD OF DIRECTORS E-mail: investors@blue-bird.com
in nature are based on the company’s current
beliefs regarding a large number of factors
Kevin Penn—Chairman affecting the company’s business. Actual results
Transfer Agent
Managing Director, may differ materially from expected results.
American Securities LLC Continental Stock Transfer &
There can be no assurance that (i) the company
Trust Company
Gurminder Bedi has correctly identified or assessed all of the
1 State Street, 30th Floor factors affecting its business or the extent of their
Former Vice President, New York, New York 10004 likely impact, (ii) the publicly available information
Ford Motor Company Phone: (800) 509-5586 on which the company’s analysis is based is
Chan Galbato Email: cstmail@continentalstock.com complete or accurate, (iii) the company’s analysis
Chief Executive Officer, Cerberus is correct, or (iv) the company’s strategy, which is
Independent Registered Public
Operations & Advisory Company, LLC based in part on this analysis, will be successful.
Accounting Firm
Douglas Grimm BDO USA, LLP
Owner and President, 1100 Peachtree Street NE, Suite 700
V-to-X, LLC Atlanta, Georgia 30309-4516
Phil Horlock Legal Counsel
President and Chief Executive Officer, Smith, Gambrell & Russell, LLP
Blue Bird Corporation 1230 Peachtree Street NE #3100
Kathleen M. Shaw, Ph.D. Atlanta, Georgia 30309
Executive Director
Research for Action

LEGEND
OUR DEALER NETWORK Blue Bird Dealer

Authorized Service Center

3920 Arkwright Road, Suite 200, Macon, Georgia 31210
(478) 825-2021
www.blue-bird.com

LISTED ON NASDAQ: BLBD