Riding High: Blue Bird Corp.

Shares of Blue Bird Corp. (BLBD), which touched an all-time high of $20.75 on Friday, are up more than 32% year-to-date.

Blue Bird is a pure-play school bus manufacturer, and it manufactures Type C and Type D buses.

*The Type C school bus, often called a “conventional” bus, is designed for carrying more than 10 persons. The entire engine is in front of the windshield and the entrance door is behind the front wheels. The Type D, or “transit-style” school bus, is also designed for carrying more than 10 persons. But the engine is often behind the windshield and beside the driver’s seat (referred to as forward-engine or “FE”), or it may be at the rear of the bus, behind the rear wheels (rear-engine or “RE”). The entrance door is ahead of the front wheels. (*Source: AmericanBus).

Blue Bird operates in two segments – the Bus segment, which includes the manufacturing and assembly of buses to be sold to a variety of customers across the United States, Canada and in international markets, and the Parts segment, consisting primarily of the purchase of parts from third parties to be sold to dealers within the Company’s network.

The Company is also the market leader in alternative fuel bus solutions, having exclusive partnerships with Ford and ROUSH CleanTec to offer propane-powered buses. Its alternative-fuel powered bus sales represented 26% of all buses sold by Blue Bird in fiscal 2016. The Company’s fiscal year ends on October 1st.

Blue Bird has been delivering solid revenue growth and impressive profit growth since 2011, thanks to product initiatives and sales & marketing initiatives undertaken by the Company.

Let’s take a look at how the Company has fared in terms of sales and number of bus units sold over the years.

Metrics201120122013201420152016
Bus units6,5256,8828,6549,60410,37810,616
Sales$566Mln$598Mln$777Mln$856Mln$919Mln$932Mln

In the nine months ended July 1, 2017, the Company’s net income was $14.26 million or $0.46 per share on net sales of $677.92 million. This…

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