Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (September 2014)
32 slides from Wabash National's investor presentation, Sep 4, 2014
Slide 1: Wabash National Corporation Investor Update September 2014
WABASH NATIONAL CORPORATION Investor Update September 2014
Slide 2: Safe Harbor Statement
2 This presentation contains certain forward - looking statements, as defined by the Private Securities Litigation Reform Act of 1995. All statements other than historical facts are forward - looking statements, including without limit, those regarding shipment outlook, Operating EBITDA, backlog, de
Slide 3: Strategic Segments
3 S TRATEGIC S EGMENTS Wabash National Corporation Commercial Trailer Products 2013 Sales: $1.1B • Dry & Refrigerated Vans • Platform Trailers • Fleet Used Trailers Diversified Products 2013 Sales: $502M • Walker Group • Wabash Composites • Wabash Wood Products New Markets. New Innovation. New Growt
Slide 4: 2013 Segment Revenue and Product Mix
4 2013 S EGMENT R EVENUE AND P RODUCT M IX New Markets. New Innovation. New Growth. 2013 Consolidated Revenue: $1.6B
Slide 5: Walker and Beall Acquisitions Accelerate Diversification
5 W ALKER AND B EALL A CQUISITIONS A CCELERATE D IVERSIFICATION End - Markets Geographies Transportation Products Leader Engineered Products Leader 80% of Total Revenues 20% of Total Revenues Position Products Est. Share # 1 ALL liquid - transportation systems in North America 30% # 1 Stainless - st
Slide 6: Diversification Efforts Driving Results
6 2007 Higher Growth and Margin Profile, Less Cyclicality 2013 D IVERSIFICATION E FFORTS D RIVING R ESULTS Revenue Manufacturing Retail 14% 86% 28% Commercial Trailer Products Diversified Products Retail 62% 10% Operating Income Manufacturing Retail Diversified Products Commercial Trailer Products 5
Slide 7: Long-Term Growth Drivers
7 L ONG - T ERM G ROWTH D RIVERS ▪ Pricing discipline ▪ Operational efficiency / lean manufacturing ▪ Supply chain optimization Margin Expansion ▪ New end markets and geographies ▪ Product innovations / portfolio expansion ▪ Aftermarket p arts and s ervice capabilities Organic Growth ▪ Proven abilit
Slide 8: Segment Growth Initiatives
8 S EGMENT G ROWTH I NITIATIVES New Markets. New Innovation. New Growth. CTP DPG Retail ▪ TrustLock® Plus System ▪ MaxClearance ™ Door System ▪ EZ - Adjust™ Tensioning System ▪ ID/Aux Stop Light System ▪ Pneumatic Door Seals ▪ Tire and Coil Haul Trailers ▪ DuraPlate XD - 35® Model ▪ Total Cost of Ow
Slide 9: Transportation Sector Outlook
9 T RANSPORTATION S ECTOR O UTLOOK Strong demand above replacement levels ▪ Truck Tonnage at or near record levels ▪ Truck Loadings continue to rise ▪ Trucking Conditions outlook remains strong Positive Freight Trend & Trucking Conditions Trucking Indicators
Slide 10: Trailer Sector Outlook
10 T RAILER S ECTOR O UTLOOK Strong demand above replacement levels Strong Demand Projected Throughout Forecast Period ▪ Strong demand above replacement levels forecast for next 5 years ▪ Fleet equipment dynamics and regulations key drivers of trailer demand ▪ ACT forecasts for 2016 – 2018 include a
Slide 11: Trailer Demand Drivers
11 T RAILER D EMAND D RIVERS Strong demand above replacement levels Fleet Age and Regulations Driving Trailer D emand Fleet Equipment Dynamics ▪ Average age of equipment remains near record high ▪ 3 + years of significant underbuy (2008 - 2010) ▪ Improved access to financing ▪ Hours of Service (HOS)
Slide 12: Trailer Demand Drivers: Fleet Rates
12 T RAILER D EMAND D RIVERS Fleet Rates Increase with Tightening Capacity ▪ Active truck utilization has reached 99%, expected to stay elevated for several years due to regulatory impact ▪ Truckload rates increasing ▪ Fleet profitability near record levels Carrier Operating Environment
Slide 13: Commercial Trailer Products Intermodal Growth: Minimal Impact to Truck Freight
13 C OMMERCIAL T RAILER P RODUCTS I NTERMODAL G ROWTH : M INIMAL I MPACT TO T RUCK F REIGHT Trucking Boosts Share of Total Tonnage to 71% by 2025 Overall Freight Trends • Total tonnage projected to increase from 14B tons in 2013 to 16.3B tons in 2019 • Total freight revenue projected to increase fro
Slide 14: Trailer Order-to-Shipment Cycle
14 T RAILER O RDER - TO - S HIPMENT C YCLE Order - to - Shipment Cycle Trends Show Distinct Seasonality Q1 Q2 Q3 Q4 Net Orders Backlog Builds Shipments Reflects Order - to - Shipment Cycles: 2011 - 2013 Source: ACT
Slide 15: Segment Outlook: Diversified Products
15 S EGMENT O UTLOOK : D IVERSIFIED P RODUCTS ▪ Projected growth in Truck Body market drives DuraPlate® panel sales growth ▪ CARB compliance requirements continue to drive DuraPlate ® AeroSkirt ® demand ▪ Housing Starts support potential moving and storage growth and need for portable storage contai
Slide 16: Segment Outlook: Diversified Products
16 S EGMENT O UTLOOK : D IVERSIFIED P RODUCTS ▪ Growing milk production supports demand for dairy silos, mixers and food - grade tank trailers ▪ Pharmaceutical R&D is expected to increase through 2018 ▪ Lower cost access to natural gas driving energy demand Source: U.S. Energy Information Administra
Slide 17: Segment Outlook: Diversified Products
17 S EGMENT O UTLOOK : D IVERSIFIED P RODUCTS ▪ World air passenger traffic is projected to steadily increase over the next 20 years ▪ World air cargo traffic is projected to more than double over the next 20 years RTK: Revenue Ton K ilometers Source : Boeing, World Air Cargo Forecast 2012 - 2013
Slide 18: Value Proposition
18 V ALUE P ROPOSITION New Markets. New Innovation. New Growth. Superior Product ▪ Leading producer of semi - trailers and liquid transportation systems for 14 of the past 20 years* ▪ Long history of innovation with nearly 100 patents ▪ Customer - focused solutions ▪ Products that revolutionize the
Slide 19: Long-Term Strategic Objectives
19 L ONG - T ERM S TRATEGIC O BJECTIVES Expectations 2011 2012 2013 Long - term Revenue $1.2B $1.5B $1.6B > $ 2.0B Diversified Products Revenue (1) $107M $356M $502M > $600M Consolidated Gross Margins 5.6% 11.2% 13.2% > 13% CTP Gross Margins 3.6% 6.6% 7.2% > 10% Operating EBITDA Margins 3.3% 8.1% 9.
Slide 20: Financial Overview
WABASH NATIONAL CORPORATION Financial Overview
Slide 21: Financial Performance
21 $338 $640 $1,187 $1,462 $1,636 $1,742 $200 $600 $1,000 $1,400 $1,800 12/09 12/10 12/11 12/12 12/13 6/14 ($ millions) F INANCIAL P ERFORMANCE Trailing Twelve Month (TTM) Revenue FY 2013 Revenue & Operating Income Levels Set Record ($ millions) TTM Operating Income and Gross Margin Significantly im
Slide 22: Financial Performance: EBITDA, Net Leverage, Liquidity
22 F INANCIAL P ERFORMANCE TTM EBITDA at $157M and Net Leverage <2.0 Net Leverage Ratio Improved top line and margins lead to: ▪ FY EBITDA at best ever level in 2013 and on - track to set new record in 2014 ▪ Cash generation leading to lower net debt leverage and significantly improved liquidity ($4
Slide 23: Appendix
WABASH NATIONAL CORPORATION Appendix
Slide 24: Segment Profile: Commercial Trailer Products
24 Best - in - Class , Technologically Innovative Products Financial Performance ▪ 2013 New Trailer Shipments: 43,800 ▪ Comprehensive portfolio: dry vans, refrigerated vans, platform trailers ▪ Leading brands and long - standing customer relationships ▪ Industry leader in van and platform trailer ma
Slide 25: Segment Profile: Diversified Products
25 Broadest Tank Trailer Portfolio in the Industry Financial Performance Key Brands ▪ Walker Group, Wabash Composites and Wabash Wood Products ▪ Diverse portfolio of products serving a variety of customers and attractive end markets ▪ Leading brands and long - standing relationships with blue - chip
Slide 26: Segment Profile: Retail
26 Company - Owned Retail Locations Strategic Footprint Providing National Support Financial Performance ▪ Dealership model, selling new and used trailers, aftermarket parts, and maintenance and repair services ▪ Integrated with OEM to deliver best practices and innovation in the aftermarket ▪ Expan
Slide 27: Key Customers
27 K EY C USTOMERS Large & Diverse Customer Profile Wabash Composites Commercial Trailer Products Walker Group
Slide 28: Consolidated Income Statement
28 C ONSOLIDATED I NCOME S TATEMENT New Markets. New Innovation. New Growth. ($ in thousands, except per share amounts) 2009 2010 2011 2012 2013 YTD Q2 2014 Net sales 337,840$ 640,372$ 1,187,244$ 1,461,854$ 1,635,686$ 844,141$ Cost of sales 360,750 612,289 1,120,524 1,298,031 1,420,563 735,856 Gross
Slide 29: Consolidated Balance Sheet
29 C ONSOLIDATED B ALANCE S HEET New Markets. New Innovation. New Growth. ($ in thousands) 2009 2010 2011 2012 2013 6/30/2014 ASSETS Current assets Cash and cash equivalents 1,108$ 21,200$ 19,976$ 81,449$ 113,262$ 82,332$ Accounts receivable 17,081 37,853 52,219 96,590 120,358 131,525 Inventories 51
Slide 30: Consolidated Cash Flows
30 C ONSOLIDATED C ASH F LOWS New Markets. New Innovation. New Growth. ($ in thousands) 2009 2010 2011 2012 2013 YTD Q2 2014 Cash flows from operating activities Net (loss) income (101,765)$ (141,760)$ 15,042$ 105,631$ 46,529$ 23,535$ Adjustments to reconcile net (loss) income to net cash (used in)
Slide 31: Reconciliation of Non-GAAP Measures
31 R ECONCILIATION OF N ON - GAAP M EASURES New Markets. New Innovation. New Growth. ($ in millions) Note: This table reconciles annual net income (loss) for the periods presented to the non - GAAP measure of Operating EBITDA. Differences may exist in the calculation of Operating EBITDA due to round
Slide 32: Reconciliation of Non-GAAP Measures
32 R ECONCILIATION OF N ON - GAAP M EASURES ($ in millions) Note: This table reconciles the trailing twelve month net income (loss) for the periods presented above to the non - GAAP measure of Operating EBITDA. Differences may exist in the calculation of Operating EBITDA due to rounding. New Markets
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