Wabash National Corporation · NYSE:WNC
Wabash National — Q1 2019 Earnings Presentation
16 slides from Wabash National's earnings presentation, Mar 31, 2019
Slide 1: Wabash National Corporation 2019 Q1 Earnings Release
WABASH NATIONAL CORPORATION 2019 Q1 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: Highlights of Quarter
HIGHLIGHTS OF QUARTER ▪ Growth continues across all businesses Solid Start to ▪ Margin enhancement initiatives showing positive impact 2019 ▪ Operating environment remains challenging; remain focused on countermeasures ▪ Robust backlog of $1.6B Key Q1 Financial ▪ Revenue of $533M toward top end of Q
Slide 4: Q1 2019 Consolidated Financial Performance
Q1 2019 CONSOLIDATED FINANCIAL PERFORMANCE Actual Robust Customer Demand +9% YoY Sales Growth Operating Result Slightly Ahead of Expectations $0.27 Adjusted EPS* 1Q18 Results Margins Sequentially Improve from Q4 of 2018 12.9% 13.1% Gross Margin Operating EBITDA $38M $39M Operating EBITDA Operating E
Slide 5: Commercial Trailer Products
COMMERCIAL TRAILER PRODUCTS Revenue Operating Margin +4.2% -130bps 5 5
Slide 6: Diversified Products Group
DIVERSIFIED PRODUCTS GROUP Revenue Operating Margin +4.7% +280bps 6 6
Slide 7: Final Mile Products
FINAL MILE PRODUCTS Revenue Adjusted Operating +33.6% Margin¹ -10bps 7 7
Slide 8: Cash Generation
CASH GENERATION Q1 2019 YTD Q1 2018 YTD Net Income $14.8M $16.9M Operating Cash Flow $33.8M -$12.0M Capital Expenditure $6.8M $6.1M Free Cash Flow $27.0M -$18.1M Free Cash Flow Conversion1 182% N/A 1 Free cash flow conversion defined as free cash flow divided by net income 8 8
Slide 9: 2019 Guidance
2019 GUIDANCE Expected Trends Key Metrics ▪ CTP demand levels to remain historically strong in 2019 Gross Margin EPS ▪ Tank Trailer market to remain similar to 2018 50 to 150 bps of $1.50-1.70 Improvement vs 2018 ▪ Truck Body market to continue secular growth trends ▪ Operational improvement expecte
Slide 10: Appendix
APPENDIX a
Slide 11: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - dollars in thousands March 31, 2019 December 31, 2018 Assets Current assets: Cash and cash equivalents $ 151,916 $ 132,690 Accounts receivable, net 185,745 181,064 Inventories 256,980 184,404 Prepaid expenses and other 52,669 51,261 Total current ass
Slide 12: Condensed Consolidated Statements of Operations
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited - dollars in thousands Three Months Ended March 31, 2019 2018 Net sales $ 533,174 491,319 Cost of sales 464,484 427,200 Gross profit 68,690 64,119 General and administrative expenses 30,140 25,109 Selling expenses 8,223 8,345 Amortization of
Slide 13: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - dollars in thousands Three Months Ended March 31, 2019 2018 Cash flows from operating activities Net income $ 14,780 $ 21,272 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 5,420 5,163 Amortiza
Slide 14: Segments and Related Information
SEGMENTS AND RELATED INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Three Months Ended March 31, Trailer Products Products Products Eliminations Consolidated 2019 New trailers shipped 12,400 700 — — 13,100 Used trailers shipped 50 25 — — 75 New Trailers
Slide 15: Reconciliation of Adjusted Segment and Operating Income
RECONCILIATION OF ADJUSTED SEGMENT AND OPERATING INCOME Unaudited - dollars in thousands Three Months Ended March 31, 2019 2018 Commercial Trailer Products Income from operations $ 26,321 $ 29,481 Diversified Products Income from operations 8,044 5,028 Final Mile Products Income from operations 1,86
Slide 16: Reconciliation of Operating EBITDA, Adjusted Net Income, Adjusted EPS, and Free Cash Flow
RECONCILIATION OF OPERATING EBITDA, ADJUSTED NET INCOME, ADJUSTED EARNINGS PER SHARE, AND FREE CASH FLOW Unaudited - dollars in thousands Operating EBITDA1: Three Months Ended March 31, Adjusted Net Income2: Three Months Ended March 31, 2019 2018 2019 2018 Net income $ 14,780 $ 21,272 Net income $ 1