Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (February 2012)
26 slides from Wabash National's investor presentation, Feb 15, 2012
Slide 1: Investor Update February 2012
INVESTOR UPDATE February 2012 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 18 of the past 24 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: 83% / Total Refrigerated Vans: 12% / Total Platform Trailers: 4% / Total Specialty Equipment: 1% / Total Note: Percentages based on WNC shipments 2009 - 2011 DuraPlate® Vans 54% DuraPlate® HD Vans 18% ArcticLite® Refrigerated Vans 12% DuraPlate® Pups
Slide 8: Sales and Distribution
8 Dry and Refrigerated Vans • Factory Direct Sales Force • Independent Dealers: 27 − Locations: 63 − Sales People: 100+ Platform Trailers • Total Dealers: 84 − Independent Dealers: 59 − WN Independent Dealers: 14 − WNTC Branches: 11 − Locations : 144 Wabash National Trailer Centers • Branch Location
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 Bondi
Slide 11: Truck Tonnage Indicator
11 T RUCK T ONNAGE I NDICATOR December TTI up 6.6% M/M, 2011 up 5.9% Y/Y; trend is positive Source: American Trucking Associations -40% -30% -20% -10% 0% 10% 20% 30% 40% 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 % C
Slide 12: Industry Outlook
12 I NDUSTRY O UTLOOK Early innings of trailer cycle that could be one of the longest and strongest in history Source: ACT Research and FTR Associates. FTR numbers represent trailer production . Dry Van Shipments: Forecast 2010 2011 2012 2013 2014 2015 2016 ACT 60,227 116,618 137,500 160,000 145,000
Slide 13: 2012 Outlook: Industry Forecast
13 DRY VANS: Population & Average Age 1979 - 2016 ACT Research Co., LLC: Copyright 2012 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Population (000s) 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5 Age (in Years) POPULATION AVERAGE AGE 0 50,
Slide 14: Forecasted Trucking Growth
14 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 15: DuraPlate Products: Exceeding Expectations
15 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 16: Energy & Environmental Services Growth Opportunities
16 E NERGY & E NVIRONMENTAL S ERVICES G ROWTH O PPORTUNITIES 90% of all oil and gas wells use hydraulic fracturing $70M+ Frac Tank Agreement • Entry into the Energy and Environmental Services Markets • Leverage industrial expertise in welding, forming, fabrication, and assembly into products outside
Slide 17: Energy & Environmental Services Growth Opportunities
17 E NERGY & E NVIRONMENTAL S ERVICES G ROWTH O PPORTUNITIES Frac tanks are one of many opportunities being evaluated and pursued… Sample Types of Equipment Used in the Oil and Gas Production Process Production Drilling Wellbore Preparation Fracturing Production Vacuum Boxes Roll - Off Containers Mi
Slide 18: Financials
FINANCIALS
Slide 19: Financial Highlights
19 0 200 400 600 800 1,000 1,200 1,400 2006 2007 2008 2009 2010 2011 $1,312 $1,103 $836 $338 $640 $1,187 -8% -4% 0% 4% 8% 12% 2006 2007 2008 2009 2010 2011 8% 8% 3% - 7% 4% 6% -16% -12% -8% -4% 0% 4% 8% 12% 2006 2007 2008 2009 2010 2011 5% 5% - 1% - 13% 1% 3% Revenue ($ millions) Gross Margin Operat
Slide 20: TTM Revenue and Operating EBITDA; Optimization Initiatives
20 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 $836 $753 $638 $483 $338 $338 $402 $484 $640 $784 $921 $1,087 $1,187 ($80) ($60) ($40) ($20) $0 $20 $40 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 ($11.0)
Slide 21: Appendix
APPENDIX
Slide 22: Consolidated Income Statement
22 C ONSOLIDATED I NCOME S TATEMENT ($ in thousands, except per share amounts) 2006 2007 2008 2009 2010 2011 Net sales 1,312,180$ 1,102,544$ 836,213$ 337,840$ 640,372$ 1,187,244$ Cost of sales 1,207,687 1,010,823 815,289 360,750 612,289 1,120,524 Gross profit 104,493$ 91,721$ 20,924$ (22,910)$ 28,08
Slide 23: Consolidated Balance Sheet
23 C ONSOLIDATED B ALANCE S HEET ($ in thousands) 2006 2007 2008 2009 2010 2011 ASSETS Current assets Cash and cash equivalents 29,885$ 41,224$ 29,766$ 1,108$ 21,200$ 19,976$ Accounts receivable 110,462 68,752 37,925 17,081 37,853 52,219 Inventories 133,133 113,125 92,896 51,801 110,850 189,533 Defe
Slide 24: Consolidated Cash Flows
24 C ONSOLIDATED C ASH F LOWS ($ in thousands) 2006 2007 2008 2009 2010 2011 Cash flows from operating activities Net income (loss) 9,420$ 16,285$ (125,826)$ (101,765)$ (141,760)$ 15,042$ Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreciation a
Slide 25: Reconciliation of Non-GAAP Measures
25 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 2011 Net income (loss) 9.4$ 16.3$ (125.8)$ (101.8)$ (141.8)$ 15.0$ Income tax expense (ben
Slide 26: Reconciliation of Non-GAAP Measures (TTM)
26 Note: R ECONCILIATION OF N ON - GAAP M EASURES ($ in millions) This table reconciles the trailing twelve month net income (loss) for the periods ending above to the non - GAAP measure of Operating EBITDA 2008 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net (loss) income (125.8)$ (147.7)$ (162.4)$ (224
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