Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (May 2012)
38 slides from Wabash National's investor presentation, May 30, 2012
Slide 1: Investor Update May 2012
INVESTOR UPDATE May 2012 Dick Giromini, President & CEO Mark Weber, CFO
Slide 2: Safe Harbor Statement
2 S AFE H ARBOR S TATEMENT This presentation will contain certain forward - looking statements, as defined by the Private Securities Litigation Reform Act of 1995 . These forward - looking statements are, however, subject to certain risks and uncertainties that could cause actual results to differ m
Slide 3: Investment Highlights
3 x Diversified manufacturer and industry leader in van and tank trailer production x Leading brands and longstanding relationships with blue - chip customer base x Recent acquisition of Walker Group Holdings accelerates diversification x Best - in - class, technologically innovative products x Truc
Slide 4: Company History
4 Acquired certain assets of Benson Intl: leading aluminum flatbed producer Founded as a start - up IPO ( NYSE : WNC ) Achieved leading industry position C OMPANY H ISTORY 1985 1991 1994 1996 1997 1999 2006 2008 2009 2011 2012 Introduced the DuraPlate ® Composite Dry Van Trailer Record trailer produ
Slide 5: Strategic Segments and Business Units
5 S TRATEGIC S EGMENTS AND B USINESS U NITS Commercial Trailer Products Wabash National Corporation Diversified Products Retail • Dry Vans • Refrigerated Vans • Platform Trailers • Fleet Used Trailers • Wabash Composites • Wabash Energy & Environmental Solutions • Walker Group Companies • Wabash Woo
Slide 6: Commercial Trailer Products
6 C OMMERCIAL T RAILER P RODUCTS Commercial Trailer Products Wabash National Corporation • Dry Vans • Refrigerated Vans • Platform Trailers • Fleet Used Trailers
Slide 7: Commercial Trailer Key Strengths
7 C OMMERCIAL T RAILER P RODUCTS : K EY S TRENGTHS x #1 in van and platform trailer production for 18 of the past 24 years* x #1 in dry van semi - trailer production* x #3 in refrigerated van semi - trailer production* x Top 3 in platform trailer production* x Blue - chip customer base x 60+ patents
Slide 8: Commercial Trailer: Long History of Innovation
8 C OMMERCIAL T RAILER P RODUCTS : L ONG H ISTORY OF I NNOVATION Leading the way in transportation technologies that deliver value Sheet & Post Trailer • Commodity • Versatile • High maintenance FRP Trailer • FRP (Fiberglass Reinforced Plywood) • Added interior width • Difficult to repair 1985 Alum.
Slide 9: Commercial Trailer Products: Comprehensive Product Line
9 C OMMERCIAL T RAILER P RODUCTS Dry Freight Vans: 83% / Total Refrigerated Vans: 12% / Total Platform Trailers: 4% / Total Specialty Equipment: 1% / Total Note: Percentages based on WNC shipments 2009 - 2011 DuraPlate® Vans 54% DuraPlate® HD Vans 18% ArcticLite® Refrigerated Vans 12% DuraPlate® Pup
Slide 10: Commercial Trailer Customers
10 C OMMERCIAL T RAILER P RODUCTS : C USTOMERS Wabash National Customers • 48% of Top 50 For - Hire Fleets • 32% of Top 100 For - Hire Fleets Preferred by the industry’s leading carriers Source: 2010 Transport Topics 100
Slide 11: Commercial Trailer Distribution
11 Extensive sales and support network with 200+ locations Wabash National Trailer Centers retail network Platform Dealer Dry/Refrigerated Dealer C OMMERCIAL T RAILER P RODUCTS : D ISTRIBUTION
Slide 12: Commercial Trailer Demand
12 C OMMERCIAL T RAILER P RODUCTS Source: ATA, DOT 90 95 100 105 110 115 120 125 130 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 ATA's Truck Tonnage Index (TTI) & DOT's Freight Transportation Services Index (TSI) TTI TSI C OMMERCIAL T RAILER P RODUCTS : D EMAND
Slide 13: 2012 Outlook: Industry Forecast
13 DRY VANS: Population & Average Age 1979 - 2016 ACT Research Co., LLC: Copyright 2012 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Population (000s) 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5 Age (in Years) POPULATION AVERAGE AGE 0 50,
Slide 14: Trucking boosts share of total tonnage to 70% by 2022
14 C OMMERCIAL T RAILER P RODUCTS Trucking boosts share of total tonnage to 70% by 2022 67.2% 14.1% 1.2% 6.7% 10.7% 0.1% 2010 Truck Rail Carload Rail Intermodal Water Pipeline Air 70.0% 12.8% 1.8% 6.1% 9.2% 0.1% 2022 Truck Rail Carload Rail Intermodal Water Pipeline Air Source: American Trucking Ass
Slide 15: Diversified Products
15 D IVERSIFIED P RODUCTS : Wabash National Corporation Diversified Products • Wabash Composites • Wabash Energy & Environmental Solutions • Walker Group Companies • Wabash Wood Products
Slide 16: Diversified: Walker Group
16 D IVERSIFIED P RODUCTS : W ALKER G ROUP x #1 in Liquid Transportation Systems in North America x Complements Wabash National’s position as #1 van semi - trailer manufacturer in North America x Commonality of culture and history of innovation x Strong brand and premium products x Blue - chip and n
Slide 17: Walker Group Market Position
17 D IVERSIFIED P RODUCTS : W ALKER G ROUP Market Position Products and Markets Market Share Brands # 1 ALL liquid - transportation systems in North America 33% # 1 Stainless - steel liquid - transportation systems in North America 61% # 1 Stainless - steel liquid - tank trailers for the North Ameri
Slide 18: Walker Group Products
18 D IVERSIFIED P RODUCTS : W ALKER G ROUP Stainless - Steel Dairy Trailer Refined Petroleum Truck 7,000 Gallon Refueler Towable Hydrant Dispenser Liquid Tank Trailers Truck - Mounted Tanks Aviation Refuelers Carts and Hydrant Dispensers Stainless - Steel Vertical Silos WEP Processor Pharmair Contai
Slide 19: Walker Group End-Markets and Geographies
19 D IVERSIFIED P RODUCTS : W ALKER G ROUP End - Markets Geographies Products and Services Blue - Chip Customer Base Oil, Gas & Energy Services Dairy, Food and Beverage Chemical Pharmaceuticals Aviation Defense Environmental Note: 1. All information based off of 2011 revenues US, 87% Australia, 0% A
Slide 20: Diversified: Wabash Composites
20 D IVERSIFIED P RODUCTS : W ABASH C OMPOSITES x Established parent company and brand x Preferred industry partner: DOT, DOE, Navistar, etc. x Growing blue - chip customer base x Proven Performance: 400,000+ DuraPlate trailers on the road x Strong research and development x Flexible, scalable manuf
Slide 21: Wabash Composites: New Product Offerings
21 D IVERSIFIED P RODUCTS : W ABASH C OMPOSITES New product offerings constantly in evaluation and development DuraPlate® Composite Material • Pre - coated, galvanized steel skins • Foamed HDPE Core • Extremely strong • Light weight • Damage resistant • Multiple industrial applications Steel Skins H
Slide 22: Wabash Composites Demand Drivers
22 D IVERSIFIED P RODUCTS : W ABASH C OMPOSITES Demand Drivers • Forecasted growth in Truck Body market drives DuraPlate® panel sales growth • CARB (California Air Resource Board) compliance requirements continue to drive DuraPlate ® AeroSkirt ® demand • Housing Starts support potential moving and s
Slide 23: Wabash Energy & Environmental Solutions
23 D IVERSIFIED P RODUCTS : W ABASH E NERGY & E NVIRONMENTAL S OLUTIONS x Leveraged existing physical assets for expedited market entry x Well - established best practices and continuous improvement x Corporate purchasing leverage for greater economies of scale x Extensive experience with raw materi
Slide 24: Expanding Energy & Environmental Product Portfolio
24 D IVERSIFIED P RODUCTS : W ABASH E NERGY & E NVIRONMENTAL Rapidly expanding our Energy & Environmental product portfolio Further Penetration of Energy Sector • Leverage industrial expertise in welding, forming, fabrication, and assembly into products outside of our traditional trailer business •
Slide 25: Numerous Opportunities Being Evaluated and Pursued
25 D IVERSIFIED P RODUCTS : W ABASH E NERGY & E NVIRONMENTAL Numerous opportunities being evaluated and pursued… Sample Types of Equipment Used in the Oil and Gas Production Process Production Drilling Wellbore Preparation Fracking Production Vacuum Boxes Roll - Off Containers Mixers Container Trail
Slide 26: Energy Sector Projects Long-Term Strength
26 D IVERSIFIED P RODUCTS : W ABASH E NERGY & E NVIRONMENTAL Energy sector projects long - term strength Source: U.S. Energy Information Administration Source: BMO Capital Markets, Baker Hughes Inc. Source: BMO Capital Markets, Baker Hughes Inc. Source: U.S. Energy Information Administration
Slide 27: Financials
FINANCIALS
Slide 28: Financial Highlights
28 0 200 400 600 800 1,000 1,200 2007 2008 2009 2010 2011 Q1 2012 $1,103 $836 $338 $640 $1,187 $278 -8% -4% 0% 4% 8% 12% 2007 2008 2009 2010 2011 Q1 2012 8% 3% - 7% 4% 6% 7% Revenue ($ millions) Gross Margin Net Working Capital as % of Revenue (1) 2008 operating income excludes a non - cash impairme
Slide 29: TTM Revenue and Operating EBITDA; Optimization Initiatives
29 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 $836 $753 $638 $483 $338 $338 $402 $484 $640 $784 $921 $1,087 $1,187 $1,243 ($80) ($60) ($40) ($20) $0 $20 $40 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
Slide 30: Capital Structure and Liquidity
1 Capital Structure and Liquidity Strong Liquidity & Flexible Capital Structure 0 50 100 150 200 250 300 2012 2013 2014 2015 2016 2017 2018 2019 ($ millions) Required Minimum Maturities (3)(4) $150M Revolver Credit Facility • Extended maturity by one year (May 2017) • Liquidity to be used primarily
Slide 31: Wabash & Walker Financial Information
31 240 257 344 20.6% 19.4% 21.0% 0 100 200 300 400 2009 2010 2011 19% 20% 21% 22% Walker Wabash & Walker Financial Information Revenue Adj. EBITDA Adj. EBITDA Margin EBIT EBIT Margin Capex Employees $1,187MM $344MM $39MM $53MM 3.3% 15.4% $19MM $39MM 1.6% 11.2% $7MM $3MM 4,200 1,200 Wabash National C
Slide 32: Appendix
APPENDIX
Slide 33: Consolidated Income Statement
33 C ONSOLIDATED I NCOME S TATEMENT ($ in thousands, except per share amounts) 2007 2008 2009 2010 2011 YTD Q1 2012 Net sales 1,102,544$ 836,213$ 337,840$ 640,372$ 1,187,244$ 277,682$ Cost of sales 1,010,823 815,289 360,750 612,289 1,120,524 257,953 Gross profit 91,721$ 20,924$ (22,910)$ 28,083$ 66,
Slide 34: Consolidated Balance Sheet
34 C ONSOLIDATED B ALANCE S HEET ($ in thousands) 2007 2008 2009 2010 2011 3/31/2012 ASSETS Current assets Cash and cash equivalents 41,224$ 29,766$ 1,108$ 21,200$ 19,976$ 6,146$ Accounts receivable 68,752 37,925 17,081 37,853 52,219 62,955 Inventories 113,125 92,896 51,801 110,850 189,533 215,374 D
Slide 35: Consolidated Cash Flows
35 C ONSOLIDATED C ASH F LOWS ($ in thousands) 2007 2008 2009 2010 2011 YTD Q1 2012 Cash flows from operating activities Net income (loss) 16,285$ (125,826)$ (101,765)$ (141,760)$ 15,042$ 5,064$ Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreci
Slide 36: Reconciliation of Non-GAAP Measures
36 R ECONCILIATION OF N ON - GAAP M EASURES Note: This table reconciles annual net income (loss) for the periods presented to the non - GAAP measure of Operating EBITDA ($ in millions) 2007 2008 2009 2010 2011 Net income (loss) 16.3$ (125.8)$ (101.8)$ (141.8)$ 15.0$ Income tax expense (benefit) 8.4
Slide 37: Reconciliation of Non-GAAP Measures (TTM)
37 Notes: R ECONCILIATION OF N ON - GAAP M EASURES ($ in millions) This table reconciles the trailing twelve month net income (loss) for the periods presented above to the non - GAAP measure of Operating EBITDA 2008 2012 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net (loss) income (125.8)$ (147.7)$ (
Slide 38: Reconciliation of Non-GAAP Measures – Walker
38 R ECONCILIATION OF N ON - GAAP M EASURES – W ALKER ($ in millions) Note: This table reconciles annual net income for the periods presented to the non - GAAP measure of Adjusted EBITDA (1) 2009 includes charges related to prior acquisitions, an asset impairment, restructuring and the relocation of