Blue Bird Corporation has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations. The company, founded in 1927 and headquartered in Macon, Georgia, is a leading designer, engineer, manufacturer, and seller of school buses in the United States, Canada, and internationally. Blue Bird operates through two segments, Bus and Parts, offering a range of school buses, including Type C, Type D, and specialty buses, with alternative power options such as propane, gasoline, compressed natural gas, and electric-powered buses. In addition, the company provides replacement bus parts, financing services, and extended warranties.
The 10-K report discusses the impact of supply chain constraints on the company's business, particularly during the second half of fiscal 2021 and the first half of fiscal 2022, due to the COVID-19 pandemic. The report highlights the significant supply chain disruptions, resulting from labor shortages, increased consumer demand for certain materials, and the global lockdowns. However, the company saw improvements in manufacturing efficiencies and production of buses during fiscal 2023, although higher costs continued to impact operations.
Furthermore, the report addresses the impact of Russia's invasion of Ukraine on Blue Bird's operations, cash flows, and results, primarily due to indirect factors such as the disruption in the supply of materials like ferroalloy for steel and the volatility in oil prices. These factors led to increased inventory purchase costs and freight costs, negatively impacting the company's gross profit and cash flows.
The 10-K report also outlines the factors affecting Blue Bird's revenues, including property tax revenues, student enrollment and learning delivery mechanisms, revenue mix, strength of the dealer network, pricing, buying patterns of major fleets, and seasonality. These factors collectively drive the company's revenues, with fluctuations based on market dynamics and regulatory environments.
As a result of these announcements, the company's shares have moved -5.6% on the market, and are now trading at a price of $40.42. For more information, read the company's full 10-K submission here.
