Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (November 2011)
29 slides from Wabash National's investor presentation, Nov 15, 2011
Slide 1: Investor Update November 2011
INVESTOR UPDATE November 2011 Dick Giromini, President & CEO Mark Weber, CFO
Slide 2: Safe Harbor Statement
2 S AFE H ARBOR S TATEMENT 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 m
Slide 3: Investment Highlights
3 I NVESTMENT H IGHLIGHTS x Leading market position as #1 dry van semi - trailer manufacturer in North America x Strong brand preference and longstanding relationships with blue - chip customer base x Best - in - class, technologically innovative products x Trucking cycle recovery and aging fleet eq
Slide 4: Company History
4 C OMPANY H ISTORY Founded as a start - up Achieved leading industry position Acquired specific assets of bankrupt Fruehauf Trailer Corp. Introduced the DuraPlate® Composite Dry Van Trailer Major industry downturn Company returned to profitability Acquired Transcraft : leading steel flatbed produce
Slide 5: Leading North American Trailer Manufacturer
5 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 preference L EADING N ORTH A MERICAN T RAILER M A
Slide 6: Premier Carrier Relationships
6 P REMIER C ARRIER R ELATIONSHIPS Wabash National Customers • 48% of Top 50 For - Hire Fleets • 32% of Top 100 For - Hire Fleets Preferred by the industry’s leading carriers Source: 2010 Transport Topics 100
Slide 7: Comprehensive Product Line
7 C OMPREHENSIVE P RODUCT L INE Dry Freight Vans: 77% / Total Refrigerated Vans: 15% / Total Platform Trailers: 6% / Total Specialty Equipment: 2% / Total Note: Percentages based on WNC shipments 2008 - 2010 DuraPlate® Vans 47% DuraPlate® HD Vans 15 % ArcticLite® Refrigerated Vans 15% DuraPlate® Pup
Slide 8: Sales and Distribution
8 S ALES AND D ISTRIBUTION Dry and Refrigerated Vans • Factory Direct Sales Force • Independent Dealers: 26 − Locations: 63 − Sales People: 100+ Platform Trailers • Total Dealers: 95 − Independent Dealers: 71 − WN Independent Dealers: 13 − WNTC Branches: 11 − Locations : 139 Wabash National Trailer
Slide 9: A Long History of Trailer Innovation
9 A L ONG H ISTORY OF T RAILER I NNOVATION • Holder of 60 patents – and growing • “Voice of the customer” drives new technology development • In 1996, the DuraPlate® dry van was introduced – the industry’s original composite trailer design. Since that time, we have produced over 400,000 DuraPlate® t
Slide 10: Industry-Leading Product Innovation
10 I NDUSTRY - L EADING P RODUCT I NNOVATION Customer - focused commercialization process Launch Innovation Description 2009 TrustLock® Plus Proprietary door locking system with single lock mechanism 2009 DuraPlate ® AeroSkirt ® Aerodynamic side - faring that delivers 6% fuel savings 2009 - 2011 Bon
Slide 11: Attractive Point in the Trailer Cycle
11 A TTRACTIVE P OINT IN THE T RAILER C YCLE Cycle recovery progressing: Recent orders reflect normal seasonality • Previous three cycles lasted 58, 67, and 89 months • The most recent cycle reached its low in Dec.'08, at month 89 • Trailer industry is 35 months into a new cycle as of November 2011
Slide 12: Truck Tonnage Indicator
12 T RUCK T ONNAGE I NDICATOR September TTI up 1.6% M/M & 5.9% Y/Y; overall trend positive - 30% - 20% - 10% 0% 10% 20% 30% 50 60 70 80 90 100 110 120 130 2003 2004 2005 2006 2007 2008 2009 2010 2011 Truck Tonnage Index (ATA) TTI (Seas. Adjusted) Y/Y % Change Source: American Trucking Associations
Slide 13: Forecasted Trucking Growth
13 F ORECASTED T RUCKING G ROWTH Trucking boosts share of total tonnage to 70% by 2022 67.2% 14.1% 1.2% 6.7% 10.7% 0.1% 2010 Truck Rail Carload Rail Intermodal Water Pipeline Air 70.0% 12.8% 1.8% 6.1% 9.2% 0.1% 2022 Truck Rail Carload Rail Intermodal Water Pipeline Air Source: American Trucking Asso
Slide 14: Industry Outlook
14 I NDUSTRY O UTLOOK Currently in very early innings of trailer rebound cycle Source: ACT Research and FTR Associates. FTR numbers represent trailer production . Dry Van Shipments: Forecast 2009 2010 2011 2012 2013 2014 2015 ACT 29,950 60,227 113,500 133,000 162,000 145,000 118,000 Total Trailer De
Slide 15: 2011 Outlook: Industry Forecast
15 0 50,000 100,000 150,000 200,000 250,000 300,000 2006 2007 2008 2009 2010 2011F 2012F 2013F 2014F 2015F 2016F U.S. Trailer Forecasts: Shipments (ACT) & Production (FTR) ACT FTR 2011 O UTLOOK : I NDUSTRY F ORECAST Strong demand above replacement levels • Age of equipment is at an all - time high o
Slide 16: 2011 and Beyond
16 2011 AND B EYOND Potential Demand Drivers • CARB Regulations (California Air Resource Board) on emissions/fuel efficiency • Proposed increase in GVWR (Gross Vehicle Weight Restriction) from 80,000 to 97,000 lbs • Proposed changes to HOS Rules (Hours of Service) from 11 to 10 hours • Proposed requ
Slide 17: DuraPlate Products: Exceeding Expectations
17 D URA P LATE ® P RODUCTS : E XCEEDING E XPECTATIONS New product offerings being developed as we speak… DuraPlate® Composite Material • Pre - coated, galvanized steel skins • Foamed HDPE Core • Extremely strong • Light weight • Damage resistant • Multiple industrial applications Steel Skins HDPE C
Slide 18: Allied Products: Energy Sector
18 A LLIED P RODUCTS : E NERGY S ECTOR One of many diversification opportunities being evaluated and pursued… $70M+ Frac Tank Agreement • Entry into the Energy and Environmental Services Markets • Leverage industrial expertise in welding, forming, fabrication, and assembly into products outside of o
Slide 19: Financials
FINANCIALS
Slide 20: Financial Highlights
20 0 200 400 600 800 1,000 1,200 1,400 2006 2007 2008 2009 2010 3Q11 YTD $1,312 $1,103 $836 $338 $640 $846 -8% -4% 0% 4% 8% 12% 2006 2007 2008 2009 2010 3Q11 YTD 8% 8% 3% - 7% 4% 5% -16% -12% -8% -4% 0% 4% 8% 12% 2006 2007 2008 2009 2010 3Q11 YTD 5% 5% - 1% - 13% 1% 3% Revenue ($ millions) Gross Mar
Slide 21: Quarterly Revenue and Operating EBITDA
21 0 50 100 150 200 250 300 350 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 $161 $202 $243 $231 $78 $86 $88 $85 $78 $150 $171 $242 $222 $287 $336 (25.0) (20.0) (15.0) (10.0) (5.0) 0.0 5.0 10.0 15.0 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 ($3.0) $3.5 $1.9 ($13.5) ($21.6) ($10.7) ($4.6) ($6.3) ($6.0) ($0.
Slide 22: Backlog
22 22 Backlog Solid backlog remains entering 2012 order season $0 $100 $200 $300 $400 $500 $600 $700 $800 Q110 Q210 Q310 Q410 Q111 Q211 Q311 $295 $377 $344 $480 $731 $736 $513 ($ millions)
Slide 23: Capital Structure and Liquidity
Capital Structure and Liquidity Improved Capital Structure $4 $175 $110 0 25 50 75 100 125 150 175 200 2011 2012 2013 2014 2015 2016 ($ millions) Maturities $175M Revolver Credit Facility • Enhanced debt maturity profile - 2016 • Enhanced liquidity position • Lowered financing costs • Expandable to
Slide 24: Appendix
APPENDIX
Slide 25: Consolidated Income Statement
25 C ONSOLIDATED I NCOME S TATEMENT ($ in thousands) 2006 2007 2008 2009 2010 YTD Q3 2011 NET SALES 1,312,180$ 1,102,544$ 836,213$ 337,840$ 640,372$ 845,512$ COST OF SALES 1,207,687 1,010,823 815,289 360,750 612,289 799,451 Gross profit 104,493 91,721 20,924 (22,910) 28,083 46,061 % of sales 8.0% 8.
Slide 26: Consolidated Balance Sheet
26 C ONSOLIDATED B ALANCE S HEET ($ in thousands) 2006 2007 2008 2009 2010 9/30/2011 ASSETS Current assets Cash and cash equivalents 29,885$ 41,224$ 29,766$ 1,108$ 21,200$ 47,993$ Accounts receivable 110,462 68,752 37,925 17,081 37,853 45,892 Inventories 133,133 113,125 92,896 51,801 110,850 199,986
Slide 27: Consolidated Cash Flows
27 C ONSOLIDATED C ASH F LOWS ($ in thousands) 2006 2007 2008 2009 2010 YTD Q3 2011 Cash flows from operating activities Net income (loss) 9,420$ 16,285$ (125,826)$ (101,765)$ (141,760)$ 7,591$ Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Deprecia
Slide 28: Reconciliation of Non-GAAP Measures
28 R ECONCILIATION OF N ON - GAAP M EASURES Note: This table reconciles annual net income (loss) for the periods presented to the non - GAAP measure of Operating EBITDA ($ in millions) 2006 2007 2008 2009 2010 YTD Q3 2011 Net income (loss) 9.4$ 16.3$ (125.8)$ (101.8)$ (141.8)$ 7.6$ Income tax expens
Slide 29: Reconciliation of Non-GAAP Measures (Quarterly)
29 Notes: R ECONCILIATION OF N ON - GAAP M EASURES ($ in millions) This table reconciles quarterly net income (loss) for the periods presented to the non - GAAP measure of Operating EBITDA The sum of the individual quarters may not equal the annual EBITDA calculation due to rounding Q1 Q2 Q3 Q4 Q1 Q
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