Wabash National Corporation · NYSE:WNC
Wabash National — Q4 2018 Earnings Presentation
20 slides from Wabash National's earnings presentation, Jan 30, 2019
Slide 1: 2018 Q4 Earnings Release
WABASH NATIONAL CORPORATION 2018 Q4 Earnings Release
Slide 2: Safe Harbor Statement and Non-GAAP Financial Measures
SAFE HARBOR STATEMENT AND 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 the Company’s current expectations or forecasts of future events. All statements c
Slide 3: Highlights of Quarter and Full Year Results
HIGHLIGHTS OF QUARTER AND FULL YEAR RESULTS Important Year Leadership transition & key roles filled in WNC’s Excellent progress on Supreme integration progression Further portfolio upgrades Revenue grew 28% to record of $2.3B Key 2018 Backlog to $1.8B Financial Results Margins declined o
Slide 4: Operational Focus Items
OPERATIONAL FOCUS ITEMS Increasing communication with chassis suppliers Expanding relationships with stable suppliers Materials hedged more closely to quoted prices 2019 pricing increased to offset material cost inflation Prepared to push through any further market/tariff cost pressure L
Slide 5: Q4 2018 Consolidated Financial Performance
Q4 2018 CONSOLIDATED FINANCIAL PERFORMANCE Actual Robust Customer Demand +12% YoY Sales Growth Operating Result Lower than Expected $0.38 Adjusted EPS* 4Q17 Results Margins Pressured by Operating Environment 11.3% 13.4% Gross Margin Operating EBITDA $48M $51M Operating EBITDA Operating EBITDA Margin
Slide 6: Commercial Trailer Products
COMMERCIAL TRAILER PRODUCTS Revenue Operating Margin +13.7% -150bps $438.7 10.4% $386.0 8.9% Q4 2017 Q4 2018 Q4 2017 Q4 2018 6
Slide 7: Diversified Products Group
DIVERSIFIED PRODUCTS GROUP Adjusted Revenue +11.5% Operating Margin* +70bps $102.3 6.7% $91.8 6.0% Q4 2017 Q4 2018 Q4 2017 Q4 2018 *Q4 2018 DPG operating margin adjusted for asset impairment related to the sale of Aviation and Truck Equipment business 7
Slide 8: Final Mile Products
FINAL MILE PRODUCTS Adjusted Revenue +5.8% Operating Margin* -670bps 4.7% $74.5 -2.0% $70.5 Q4 2017 Q4 2018 Q4 2017 Q4 2018 *Q4 2017 operating margin adjusted for acquisition expenses and related charges 8
Slide 9: Cash Generation
CASH GENERATION Q4 2018 YTD Q4 2017 YTD Net Income $69.4M $111.4M Operating Cash Flow $112.5M $144.4M Capital Expenditure $34.0M $26.1M Free Cash Flow¹ $78.5M $118.3M Free Cash Flow Conversion² 113% 106% ¹Q4 2017 operating margin adjusted for acquisition expenses and related charges ²Free cash flow
Slide 10: 2018 Capital Allocation Results
2018 CAPITAL ALLOCATION RESULTS 13%+ Cash + Available Maintain Ample Liquidity and Borrowings % of Revenue Healthy Balance Sheet 9% Working Capital % 2.0x Net Debt/EBITDA of Revenue $34M Invest for Growth 2018 Capital Expenditures $18M 2018 Dividends Paid Return Capital to Shareholders $53M 2018 Sha
Slide 11: 2019 Guidance
2019 GUIDANCE Expected Trends Key Metrics CTP demand levels to remain historically strong in 2019 Sales Gross Margin 50 to 150 bps of Tank Trailer market to remain similar to 2018 $2.25B-$2.35B Improvement vs 2018 Truck Body market to continue secular growth trends Other Operational improvem
Slide 12: Key Messages
KEY MESSAGES Important Steps Made in Positioning Wabash for the Future Solid Cash Generation and Balanced Capital Allocation Continued Strength in Market Conditions Focused on Navigating Short-Term Operational Headwinds Excited for a Strong 2019 for Wabash National 12
Slide 13: Appendix
WABASH NATIONAL CORPORATION Appendix
Slide 14: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT ($ in thousands, except per share amounts) 14
Slide 15: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET ($ in thousands) 15
Slide 16: Consolidated Cash Flows
CONSOLIDATED CASH FLOWS ($ in thousands) 16
Slide 17: Segments and Related Information
SEGMENTS AND RELATED INFORMATION ($ in thousands) 17
Slide 18: Reconciliation of Adjusted Segment and Operating Income
RECONCILIATION OF ADJUSTED SEGMENT AND OPERATING INCOME ($ in thousands) 18
Slide 19: Reconciliation of Operating EBITDA, Adjusted Net Income & Adjusted EPS
RECONCILIATION OF OPERATING EBITDA, ADJUSTED NET INCOME & ADJUSTED EPS ($ in thousands) 19
Slide 20: Reconciliation of Free Cash Flow and Free Cash Flow Conversion
RECONCILIATION OF FREE CASH FLOW AND FREE CASH FLOW CONVERSION ($ in thousands) Twelve Months Ended December 31, 2018 2017 Net cash provided by operating activities $ 112,471 $ 144,379 Capital expenditures 34,009 26,056 Free cash flow $ 78,462 $ 118,323 Free cash flow $ 78,462 $ 118,323 Net income 6