Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (February 2011)
26 slides from Wabash National's investor presentation, Feb 16, 2011
Slide 1: Investor Update February 2011
INVESTOR UPDATE Februar y 2011 Dick Giromini, President & CEO Mark Weber, CFO
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 materially
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS Leading market position as Number 1 dry van semi-trailer manufacturer in North America for the past five years Strong brand preference and longstanding relationshi ps with blue-chip customer base Best-in-class, technologically innovative products Trucking cycle recovery and agi
Slide 4: Company History 1985-2011
C OMPANY H ISTORY 1985-2011 • Headquartered in Lafayette , IN • 3,000 Associates Acquired specific assets of bankrupt • 2010 Trailer Shipments: 24,900 Fruehauf Trailer Corp. Founded as a start-up Major industry Major industry Gained and held downturn downturn leading industry Acquired Transcraft : 4
Slide 5: Leading North American Trailer Manufacturer
LEADING NORTH AMERICAN TRAILER MANUFACTURER Longstanding Market Share Leader • #1 in Total Trailer production for 17 of the past 23 years • #1 in Dry Van trailer production • #3 in Refrigerated Van trailer production • Top 3 in Platform trailer production • Strong brand recognition and brand prefere
Slide 6: Premier Carrier Relationships
PREMIER CARRIER RELATIONSHIPS Wabash National Customers • 48% of Top 50 For-Hire Fleets • 32% of Top 100 For-Hire Fleets Source: 2010 Transport Topics 100 Growing with the industry’s leading carriers
Slide 7: Comprehensive Product Line
COMPREHENSIVE PRODUCT LINE WNC Shipments by Product Type Dry Freight Vans: 77% / Total Sheet & Post Intermodal Vans 1% 3% Dump Trailers Platform 1% Trailers 6% DuraPlate® Vans DuraPlate® 47% Refrigerated Vans: 15% / Total Pups 12% ArcticLite® Refrigerated Vans 15% DuraPlate® HD Specialty Equipment:
Slide 8: Sales and Distribution
SALES AND DISTRIBUTION DRY AND REFRIGERATED VANS • Factory Direct Sales Force • Independent Dealers: 30 • Locations: 65 • Sales People: 100+ PLATFORM AND DUMP TRAILERS • Independent Dealers: 82 • Locations: 120 WABASH NATIONAL TRAILER CENTERS • Branch Locations: 14 (3 Used Trailer Centers) • Sales P
Slide 9: A Long History of Innovation
A LONG HISTORY OF INNOVATION • Wabash National holds 58 patents • Developed new technologies by working with the world’s largest truckload carriers • In 1996, the DuraPlate® dry van was introduced – the industry ’s first composite trailer design. Since that time, we have produced over 400,000 DuraPl
Slide 10: Recent Industry Innovations
RECENT INDUSTRY INNOVATIONS Launch Innovation Description 2009 TrustLock Plus® Proprietary door locking system with single lock mechanism 2009 DuraPlate AeroSkirt® Tested 5.6% fuel efficiency improvement 2009 Bonding Technologies Truck Body Sidewalls, Sky Lights, D-Rings 2010 Tire Hauler Proprietary
Slide 11: Attractive Point in the Trailer Cycle
ATTRACTIVE POINT IN THE TRAILER CYCLE • Previous two cycles lasted 58 and 67 months • The most recent cycle reached its low in Dec.'08, at month 89 • Trailer industry is 26 months into a new cycle as of Feb. 2011 N.A. Units Cycle Lows Units Feb. '91 7,555 Dec. '95 4,468 July '01 6,472 Dec. '08 2,598
Slide 12: Truck Tonnage Indicator
TRUCK TONNAGE INDICATOR Source: American Trucking Associations December TTI up 3.4% M/M & up 5.8% in 2010 vs. 2009
Slide 13: Trailer Loadings Indicator
TRAILER LOADINGS INDICATOR Expected to increase 4.3% and 4.6% in ‘11 and ‘12, respectively
Slide 14: Industry Outlook
INDUSTRY OUTLOOK • Trailer demand is forecasted to grow to 251K in 2013 • WNC is well-positioned to capitalize on the expected increase in dry van demand over the next five years Total Trailer Shipments: Forecast 2010 2011 2012 2013 2014 2015 ACT 119 , 889 195 , 400 236 , 000 251 , 550 221 , 450 229
Slide 15: Industry Outlook: Demand Drivers
INDUSTRY OUTLOOK: DEMAND DRIVERS Short-/Mid-Term Demand Drivers • Age of equipment is at 8+ years, an all‐time high • Equipment age profile: disproportionate number of aged units in fleets • 3 years of significant under-buy • Tax Act of 2010: Bonus Depreciation provides for 100% write off of capital
Slide 16: Leveraging DuraPlate Technology: New Markets
LEVERAGING DURAPLATE® TECHNOLOGY : NEW MARKETS DuraPlate® Products Group Secure a leadership position through developing a comprehensive product offering and IP portfolio addressing target markets Establish partnerships and/or alliances with customers where we can add value to provide a custom solut
Slide 17: Financials
FINANCIALS
Slide 18: Financial Highlights
F INANCIAL H IGHLIGHTS (1) 2008 operating income excludes a non-cash impairment for goodwill of $66.3 million (2) A reconciliation of Operating EBITDA to net income (loss) for the periods presented is included in the Appendix to this presentation Revenue $1,312 1,400 $1,214 $1,103 1,200 ns) 1,000 $8
Slide 19: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS Revenue $243 250 $242 $231 $202 200 $171 $161 $150 150 $78 $86 $88 $85 millions) 100 $78 $ ( 50 0 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 Operating EBITDA (1) $10.8 5.0 $3.5 $1 . 9 $0.6 0.0 ($0.5) illions) (5.0) ($3.0) ($4.6) ($6.3)($6.0) m (10 . 0) $ ( ($10.7) (15.0) ($13.5) (2
Slide 20: Capitalization and Liquidity
C APITALIZATION AND L IQUIDITY $MM March 31, 2010 December 31, 2010 Cash 1.4 21.2 Total Debt & Capital Leases 47.2 59.6 Preferred Stock 24.3 - - Stockholders ’ Equity (86.8) 129.0 Total Capitalization (15.3) 188.6 Liquidity 29.0 60.4 Notes: (1) Excludes fair value of the warran t of $173.4MM as of M
Slide 21: Appendix
APPENDIX
Slide 22: Consolidated Income Statement
C ONSOLIDATED I NCOME S TATEMENT 2005 2006 2007 2008 2009 2010 NET SALES $ 1,213,711 $ 1,312,180 $ 1,102,544 $ 836,213 $ 337,840 $ 640,372 COST OF SALES 1,079,196 1,207,687 1,010,823 815,289 360,750 612,289 Gross profit 134,515 104,493 91,721 20,924 (22,910) 28,083 % of Sales 11.1% 8.0% 8.3% 2.5% -6
Slide 23: Consolidated Balance Sheet
C ONSOLIDATED B ALANCE S HEET 2005 2006 2007 2008 2009 2010 Assets CURRENT ASSETS Cash and cash equivalents $ 67,437 $ 29,885 $ 41,224 $ 29,766 $ 1,108 $ 21,200 Accounts receivable, net 131,671 110,462 68,752 37,925 17,081 37,853 Inventories 108,044 133,133 113,125 92,896 51,801 110,850 Deferred tax
Slide 24: Consolidated Cash Flows
C ONSOLIDATED C ASH F LOWS 2005 2006 2007 2008 2009 2010 Cash flows from operating activities Net income (loss) $ 111,087 $ 9,420 $ 16,285 $ (125,826) $ (101,765) $ (141,760) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreciation and amortizati
Slide 25: Reconciliation of Non-GAAP Measures
R ECONCILIATION OF N ON -GAAP M EASURES 2005 2006 2007 2008 2009 2010 Net income (loss) $ 111.1 $ 9.4 $ 16.3 $ (125.8) $ (101.8) $ (141.8) Income tax (benefit) expense (37.0) 6.9 8.4 17.1 (3.0) (0.1) Increase in fair value of warrant - - - - 33.4 121.6 Interest expense 6.4 6.9 5.8 4.7 4.4 4.1 Deprec
Slide 26: Reconciliation of Non-GAAP Measures (Quarterly)
R ECONCILIATION OF N ON -GAAP M EASURES ($ in millions) Three Months Ended March 31, June 30, September 30, December 31, 2010 2010 2010 2010 Net (loss) income $ (139.1) $ (5.6) $ (1.9) $ 4.9 Income tax expense (benefit) 0.1 - - (0.2) Increase (Decrease) in fair value of warrant 126.8 (1.9) (3.3) -In
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