Wabash National Corporation · NYSE:WNC
Wabash National — Q3 2020 Earnings Presentation
19 slides from Wabash National's earnings presentation, Nov 5, 2020
Slide 1: Wabash National Corporation 2020 Q3 Earnings Release
WABASH NATIONAL CORPORATION 2020 Q3 EARNINGS RELEASE
Slide 2: Safe Harbor Statement & Non-GAAP Financial Measures
SAFE HARBOR STATEMENT & NON-GAAP FINANCIAL MEASURES This presentation contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements convey Wabash National Corporation's (the "Company") current expectations or forecasts of f
Slide 3: CEO Highlights
CEO HIGHLIGHTS ▪ Collaborative culture has allowed us to quickly adapt to necessary changes 2020 ▪ Trough financial performance clearly best in WNC history Perspective ▪ Taking steps to prepare to meet customer demand in 2021 Status of ▪ Supply chain understands growth ahead, taking steps to ramp pr
Slide 4: Q3 2020 Consolidated Financial Performance
Q3 2020 CONSOLIDATED FINANCIAL PERFORMANCE 3Q20 Results 3Q19 Results Revenue reflects lower 2020 demand trends $352M $581M Net Sales Net Sales New Trailer Shipments consistent with prior quarters 8,450 14,450 New Trailer Shipments New Trailer Shipments Gross Margin shows relative manufacturing effic
Slide 5: Commercial Trailer Products
COMMERCIAL TRAILER PRODUCTS Revenue Operating Margin (40)% -90 bps $380 9.6% 8.7% $227 Q3 2019 Q3 2020 Q3 2019 Q3 2020 5 5
Slide 6: Diversified Products Group
DIVERSIFIED PRODUCTS GROUP Revenue Operating Margin (23)% -190 bps 7.7% $93 5.8% $72 Q3 2019 Q3 2020 Q3 2019 Q3 2020 6 6
Slide 7: Final Mile Products
FINAL MILE PRODUCTS Revenue Operating Margin (51)% -1,210 bps 4.1% $114 (8.0)% $55 Q3 2019 Q3 2020 Q3 2019 Q3 2020 7 7
Slide 8: Cash Flow, Balance Sheet & Capital Allocation Summary
Cash Flow, Balance Sheet & Capital Allocation Summary YTD Cash Generation Balance Sheet Debt Structure • $107M Operating Cash • $216M Cash • New Term Loan $150M • $14M Capital Expenditure • $167M Revolver • No material financial covenants • $93M Free Cash Flow • $383M Total Liquidity • Pushes 2022 m
Slide 9: Q4 2020 Guidance
Q4 2020 GUIDANCE Key Metrics Decremental Sales Margin (Operating) Similar to Q3 Mid-Teens Other EPS SG&A: ~$30M Intangibles Amortization: ~$5.5M Interest Expense: ~$6M Near Breakeven CapEx: ~$10M Tax Rate: 26-27% 9 9
Slide 10: Appendix
APPENDIX a
Slide 11: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - dollars in thousands September 30, 2020 December 31, 2019 Assets Current assets: Cash and cash equivalents $ 215,822 $ 140,516 Accounts receivable, net 104,642 172,737 Inventories, net 201,510 186,914 Prepaid expenses and other 44,534 41,222 Total cu
Slide 12: Condensed Consolidated Statements of Operations
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited - dollars in thousands Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net sales $ 351,584 $ 580,908 $ 1,077,811 $ 1,740,135 Cost of sales 308,390 503,173 963,553 1,506,060 Gross profit 43,194 77,735 114,2
Slide 13: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - dollars in thousands Nine Months Ended September 30, 2020 2019 Cash flows from operating activities Net (loss) income $ (102,906) $ 71,200 Adjustments to reconcile net (loss) income to net cash provided by operating activities Depreciation
Slide 14: Q3 QTD Segment Information
Q3 QTD SEGMENT INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Three Months Ended September 30, Trailer Products Products Products Eliminations Consolidated 2020 New trailers shipped 7,975 475 — — 8,450 Used trailers shipped 100 40 — — 140 New trailers $
Slide 15: Q3 YTD Segment Information
Q3 YTD SEGMENT INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Nine Months Ended September 30, Trailer Products Products Products Eliminations Consolidated 2020 New trailers shipped 24,500 1,525 — — 26,025 Used trailers shipped 320 110 — — 430 New trailer
Slide 16: Reconciliation of Adjusted Segment and Operating Income
RECONCILIATION OF ADJUSTED SEGMENT AND OPERATING INCOME Unaudited - dollars in thousands Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Commercial Trailer Products Income from operations $ 19,659 $ 36,503 $ 54,129 $ 102,742 Adjustments: Impairment — — 377 — Adju
Slide 17: Reconciliation of Adjusted Net Income (Loss) and Adjusted Earnings Per Share
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED EARNINGS PER SHARE Unaudited - dollars in thousands Adjusted Net Income1: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net income (loss) $ 3,887 $ 25,460 $ (102,906) $ 71,200 Adjustments: Debt transacti
Slide 18: Reconciliation of Operating EBITDA and Free Cash Flow
RECONCILIATION OF OPERATING EBITDA AND FREE CASH FLOW Unaudited - dollars in thousands Operating EBITDA1: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net income (loss) $ 3,887 $ 25,460 $ (102,906) $ 71,200 Income tax (benefit) expense (1,285) 7,429 (10,298) 2
Slide 19: Reconciliation of Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin
RECONCILIATION OF ADJUSTED SEGMENT EBITDA1 AND ADJUSTED SEGMENT EBITDA MARGIN1 Unaudited - dollars in thousands Commercial Trailer Products Diversified Products Final Mile Products Three Months Ended September 30, 2020 2019 2020 2019 2020 2019 Income (loss) from operations $ 19,659 $ 36,503 $ 4,188