Wabash National Corporation · NYSE:WNC
Wabash National — Q3 2021 Earnings Presentation
24 slides from Wabash National's earnings presentation, Nov 9, 2021
Slide 1: Wabash National Corporation 2021 Q3 Earnings Release
WABASH NATIONAL CORPORATION 2021 Q3 EARNINGS 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: Organization Now Structured to Support First to Final Mile Strategy
ORGANIZATION NOW STRUCTURED TO SUPPORT FIRST TO FINAL MILE STRATEGY New Customer-Centric Structure Collapses Silos to Surround Customer with Holistic Support Operations R&D & Sales Engineering Customer Benefits Employees Customers Shareholders • Broader span of control, reducing • Streamlined commer
Slide 4: Portfolio & Growth
PORTFOLIO & GROWTH Portfolio Trimming Complete Future Growth Focus 2019 2020 thru 2022 • Expand share in markets driven by movement of goods through the temperature-controlled cold chain Cold Chain • Bring differentiated solutions to create customer value by leveraging innovative technology offering
Slide 5: Branding Update: Wabash National becomes…
BRANDING UPDATE Wabash National becomes… 5 5
Slide 6: New GAAP Reportable Segments
NEW GAAP REPORTABLE SEGMENTS PREVIOUS STRUCTURE DRIVERS OF SEGMENT CHANGE NEW STRUCTURE Commercial Trailer Products STEMMING FROM STRATEGY REFRESH Transportation Dry and Refrigerated Van Trailers, Solutions Platform Trailers, Aftermarket Commercial Structure • Dry and Refrigerated Van Trailers Parts
Slide 7: Strategic Capacity Update
STRATEGIC CAPACITY UPDATE Progress Update Dry Van Demand Evolution Future State: Refrigerated • Converting current refrigerated • Organizational restructuring to One Wabash • Transitioning conventional capacity to dry van capacity commercial organization refrigerated van product to • Progress on-tra
Slide 8: Market, Backlog & Outlook Highlights
MARKET, BACKLOG & OUTLOOK HIGHLIGHTS Market Conditions WNC Q3 Backlog 2022 Outlook • Freight conditions remain robust • All-time record backlog of • Backlog strength allows initial • Strong consumer spending and $1.9B ending Q3 2021 EPS outlook for 2022 business investment continue to • Sequential i
Slide 9: Q3 2021 Consolidated Financial Performance
Q3 2021 CONSOLIDATED FINANCIAL PERFORMANCE 3Q21 Results 3Q20 Results Revenue grows as operations ramp $483M $352M Net Sales Net Sales New Trailer Shipments increase 47% YoY 12,455 8,485 New Trailer Shipments New Trailer Shipments Gross Margin pressured by short-term price/cost 10.6% 12.3% Gross Marg
Slide 10: Cash Flow, Balance Sheet & Capital Allocation Summary
CASH FLOW, BALANCE SHEET & CAPITAL ALLOCATION SUMMARY YTD Cash Generation Balance Sheet • $(74)M Operating Cash • $49M Cash • $20M Capital Expenditure • $220M Revolver • $(94)M Free Cash Flow1 • $269M Total Liquidity Capital Allocation Q3 2021 Moving Forward • $14M Share Repurchase • Capex • $9M Cap
Slide 11: Guidance
GUIDANCE 2021 Key Metrics 2022 Key Metrics Adjusted Sales Operating Margin¹ Sales Operating Margin $1.80B-$1.85B ~$2.25B ~6.0% 3.4% to 3.6% Midpoint: $1.83B Midpoint: 3.5% Other Other Adjusted EPS² SG&A: $112-116M Intangibles Amortization: ~$23M EPS SG&A: high-6% range of sales Intangibles Amortizat
Slide 12: 2022 EPS Bridge
2022 EPS BRIDGE $0.10 $0.52 $0.60 $0.90 $1.70 $0.62 2021 Adjusted non- Increased Volume Enhanced Pricing Share Count & Interest Fixed Overhead and 2022 EPS Outlook GAAP EPS Outlook* Expense SG&A 2022 EPS Outlook Driven by Strong Run-Rate Production, Price/Cost Recovery, While Assuming No Improvement
Slide 13: Q&A
Q&A a al
Slide 14: Appendix
APPENDIX a al
Slide 15: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - dollars in thousands September 30, 2021 December 31, 2020 Assets Current assets: Cash and cash equivalents $ 49,374 $ 217,677 Accounts receivable, net 213,808 101,301 Inventories, net 259,635 163,750 Prepaid expenses and other 59,347 63,036 Total cur
Slide 16: Condensed Consolidated Statements of Operations
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited - dollars in thousands Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net sales $ 482,566 $ 351,584 $ 1,323,991 $ 1,077,811 Cost of sales 431,521 308,390 1,170,172 963,553 Gross profit 51,045 43,194 153,8
Slide 17: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - dollars in thousands Nine Months Ended September 30, 2021 2020 Cash flows from operating activities Net income (loss) $ 26,477 $ (102,906) Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities Dep
Slide 18: Q3 QTD Segment Information
Q3 QTD SEGMENT INFORMATION Wabash National Corporation Three Months Ended September 30, 2021 2020 Units Shipped New trailers 12,455 8,485 New truck bodies 3,780 3,600 Used trailers 15 140 Unaudited - dollars in thousands Transportation Corporate and Three Months Ended September 30, Solutions Parts &
Slide 19: Q3 YTD Segment Information
Q3 YTD SEGMENT INFORMATION Wabash National Corporation Nine Months Ended September 30, 2021 2020 Units Shipped New trailers 33,710 26,030 New truck bodies 13,330 10,130 Used trailers 70 430 Unaudited - dollars in thousands Transportation Corporate and Nine Months Ended September 30, Solutions Parts
Slide 20: Reconciliation of Adjusted Segment and Operating Income
RECONCILIATION OF ADJUSTED SEGMENT AND OPERATING INCOME1 Unaudited - dollars in thousands Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Transportation Solutions Income (loss) from operations $ 25,970 $ 13,522 $ 69,492 $ (43,098) Adjustments: Impairment — — — 68
Slide 21: Reconciliation of Adjusted Net Income and Adjusted Earnings Per Share
RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE Unaudited - dollars in thousands Adjusted Net Income1: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income (loss) $ 11,008 $ 3,887 $ 26,477 $ (102,906) Adjustments: Debt transactions — 1
Slide 22: 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income (loss) $ 11,008 $ 3,887 $ 26,477 $ (102,906) Income tax expense (benefit) 1,640 (1,285) 7,459 (10,
Slide 23: Reconciliation of Adjusted Segment EBITDA and Margin
RECONCILIATION OF ADJUSTED SEGMENT EBITDA1 AND ADJUSTED SEGMENT EBITDA MARGIN1 Unaudited - dollars in thousands Transportation Solutions Parts & Service Three Months Ended September 30, 2021 2021 2020 2021 2020 Income from operations $ 25,970 $ 13,522 $ 4,148 $ 5,878 Depreciation and amortization 10
Slide 24: Transportation Solutions and Parts & Service Segments - Selected Data
TRANSPORTATION SOLUTIONS AND PARTS & SERVICE SEGMENTS - SELECTED DATA Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 REVENUE Transportation Solutions $ 442,636 $ 402,300 $ 345,236 $ 361,279 $ 307,358 $ 302,687 $ 344,104 $ 533,640 $ 533,385 $ 572,376 $ 475,408