Wabash National Corporation · NYSE:WNC
Wabash National — Q2 2020 Earnings Presentation
18 slides from Wabash National's earnings presentation, Jun 30, 2020
Slide 1: Wabash National Corporation 2020 Q2 Earnings Release
WABASH NATIONAL CORPORATION 2020 Q2 EARNING 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 Top Priority: ▪ Wabash pandemic response team managing changes to adapt to current environment Employee ▪ Redesigned how work is performed in our factories Safety ▪ COVID-19 did not significantly impact our operating capability in Q2 Status of ▪ Proactively managing supply chain threa
Slide 4: Change is Underway: Strategy, Organization & Culture
Change is Underway: Strategy, Organization & Culture Catalyst for Change: Helping our Customers Move Everything from First to Final Mile Strategy Focused • Strategic focus narrowed - able to scale core competencies by growing in and around core markets with known customers • Increased commitment to
Slide 5: Purpose, Vision, Mission & Values
Purpose, Vision, Mission & Values 5 Diversity & Inclusion is a key element to our improvement and our innovation 5
Slide 6: CFO Highlights
CFO HIGHLIGHTS ▪ Q2 2020 revenue of $339M Revenue ▪ Able to continue operations for most of Q2, customer pick-ups improved in Q2 ▪ April & May softer, uptick in June revenues; furloughs impacted revenue timing ▪ 10.1% gross margin, 1.8% operating margin in Q2 2020 Margins & Profitability ▪ SG&A lowe
Slide 7: Cash Flow & Liquidity Summary
Cash Flow & Liquidity Summary YTD Cash Generation Strengthening Liquidity Profile • $23M Operating Cash • $11M Capital Expenditures • $12M Free Cash Flow 7 7
Slide 8: Capital Allocation & Debt Structure
Capital Allocation & Debt Structure Q2 2020 Capital Allocation Debt Structure • $45M debt repayment (revolving line of credit) • $4.6M in capital projects • $4.3M in dividends Near-Term Capital Allocation Priorities • Estimating 2020 capex of approximately $20M • Maintain dividend • Assess opportuni
Slide 9: Key Messages
Key Messages ▪ Solid performance through a challenging period: 15% decremental margins ▪ Positive operating and free cash flow improve overall liquidity ▪ Potential to free cash from non-core assets ▪ Maintaining dividend and assessing opportunities for debt reduction ▪ Organizational redesign incre
Slide 10: Appendix
APPENDIX a
Slide 11: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - dollars in thousands June 30, 2020 December 31, 2019 Assets Current assets: Cash and cash equivalents $ 135,993 $ 140,516 Accounts receivable, net 123,952 172,737 Inventories 201,068 186,914 Prepaid expenses and other 41,836 41,222 Total current asse
Slide 12: Condensed Consolidated Statements of Operations
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited - dollars in thousands Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net sales $ 339,153 $ 626,053 $ 726,227 $ 1,159,227 Cost of sales 304,832 538,403 655,163 1,002,887 Gross profit 34,321 87,650 71,064 156,340 Gen
Slide 13: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - dollars in thousands Six Months Ended June 30, 2020 2019 Cash flows from operating activities Net (loss) income $ (106,793) $ 45,740 Adjustments to reconcile net (loss) income to net cash provided by operating activities Depreciation 11,657
Slide 14: Q2 QTD Segment Information
Q2 QTD SEGMENT INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Three Months Ended June 30, Trailer Products Products Products Eliminations Consolidated 2020 New trailers shipped 8,000 400 — — 8,400 Used trailers shipped 185 35 — — 220 New trailers $ 218,7
Slide 15: Q2 YTD Segment Information
Q2 YTD SEGMENT INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Six Months Ended June 30, Trailer Products Products Products Eliminations Consolidated 2020 New trailers shipped 16,525 1,050 — — 17,575 Used trailers shipped 220 70 — — 290 New trailers $ 456
Slide 16: Reconciliation of Adjusted Segment and Operating Income
RECONCILIATION OF ADJUSTED SEGMENT AND OPERATING INCOME Unaudited - dollars in thousands Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Commercial Trailer Products Income from operations $ 18,599 $ 39,918 $ 34,470 $ 66,239 Adjustments: Impairment — — 377 — Adjusted operati
Slide 17: Reconciliation of Adjusted Net (Loss) Income and Adjusted Earnings Per Share
RECONCILIATION OF ADJUSTED NET (LOSS) INCOME AND ADJUSTED EARNINGS PER SHARE Unaudited - dollars in thousands Adjusted Net (Loss) Income1: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net (loss) income $ (146) $ 30,960 $ (106,793) $ 45,740 Adjustments: Impairment — — 107
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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net (loss) income $ (146) $ 30,960 $ (106,793) $ 45,740 Income tax expense (benefit) 548 10,639 (9,013) 13,798 Interest