Wabash National Corporation · NYSE:WNC
Wabash National — Shareholder Meeting (May 2018)
25 slides from Wabash National's shareholder meeting presentation, May 16, 2018
Slide 1: Annual Shareholders Meeting
ANNUAL SHAREHOLDERS MEETING May 16, 2018 Dick Giromini Chief Executive Officer
Slide 2: Safe Harbor Statement
2 This presentation contains certain forward - looking statements, as defined by the Private Securities Litigation Reform Act of 1995. All statements other than historical facts are forward - looking statements, including without limit, those regarding shipment outlook, Operating EBITDA, backlog, de
Slide 3: Wabash National Corporation: New Markets. New Innovation. New Growth.
3 W ABASH N ATIONAL C ORPORATION New Markets. New Innovation. New Growth. Wabash welcomes a new team in Little Falls, MN (October 2017)
Slide 4: The Wabash Journey
4 1 Focus • Operational Excellence • People • Customer • Innovation • Growth T HE W ABASH J OURNEY New Markets. New Innovation. New Growth.
Slide 5: The Wabash Journey: Focus on Lean Manufacturing
5 1 2 Focus Emphasis on Lean Manufacturing • Safety • Product Quality • On - Time Delivery • Productivity • Cost Reduction T HE W ABASH J OURNEY New Markets. New Innovation. New Growth.
Slide 6: The Wabash Journey: Shift in Company Culture
6 1 2 3 Shift in Company Culture • Vision, Mission & Values • Integrity, Trust & Mutual Respect • Safety is Our #1 Priority Focus Emphasis on Lean Manufacturing T HE W ABASH J OURNEY New Markets. New Innovation. New Growth.
Slide 7: Cultural and Lean Transformation Results
7 T HE W ABASH J OURNEY New Markets. New Innovation. New Growth. Wabash National’s cultural and lean transformation… • Reduced inventory by 60% • Reduced fork truck traffic by 150 miles per shift • Reduced warehouse costs by $ 20M • Improved productivity by 48% in first 18 months
Slide 8: 2017 Company Highlights
8 5th Year as IW 50 Best 2017 C OMPANY H IGHLIGHTS Conexus Indiana Touchstone Award Winner Two TTMA Plant Safety Awards Kentucky Governor’s Safety and Health Award New Markets. New Innovation. New Growth.
Slide 9: 2017 Company Highlights: ISO 14001 Registrations
9 Earned ISO 14001 Registrations for Environmental Management at Two More Locations 2017 C OMPANY H IGHLIGHTS Guanajuato, Mexico, Operation New! Portland, OR New! Guanajuato, Mexico New Markets. New Innovation. New Growth.
Slide 10: 2017 Company Highlights: Community Support
10 Over $1 Million to Support Our Communities 2017 C OMPANY H IGHLIGHTS Military Appreciation Event with Donations Supporting the Wounded Warrior Project Fond du Lac, WI (November 10, 2017) New Markets. New Innovation. New Growth.
Slide 11: Execution of a Strategic Plan for Growth and Diversification
11 1 2 3 4 Execution of a Strategic Plan for Growth and Diversification Shift in Company Culture Focus Emphasis on Lean Manufacturing T HE W ABASH J OURNEY New Markets. New Innovation. New Growth.
Slide 12: Growth Initiatives Driving Record Results
12 G ROWTH I NITIATIVES D RIVING R ECORD R ESULTS 2006: Transcraft Acquisition 2012/13: Walker Group and Beall Acquisition 2008: Wabash Composites Launch and Benson Acquisition 2015: Truck Bodies Launch 2017: Little Falls Facility Acquisition 2017: Supreme Industries, Inc. Acquisition Growing, Diver
Slide 13: Financial Performance
13 F INANCIAL P ERFORMANCE Annual Revenue Annual Operating Income & Gross Margin $1,462 $1,636 $1,863 $2,027 $1,845 $1,767 $2,241 $0 $500 $1,000 $1,500 $2,000 $2,500 2012 2013 2014 2015 2016 2017 2018 Consensus ($ mils) $70 $103 $122 $180 $203 $131 $185 11.2% 13.2% 12.5% 15.0% 17.6% 14.8% 15.3% 0% 5
Slide 14: Our Identity Is Shifting From Primarily a Dry Van Manufacturer
14 O UR I DENTITY I S S HIFTING F ROM P RIMARILY A D RY V AN M ANUFACTURER We are a diversified industrial manufacturer that is less dependent on dry vans 2007 $1.1B Dry Vans Dry Van Trailers Other Specialty Trailers Non - Trailer Products 2020 Dry Vans Non - Trailer Other Trailer Types 69% 26% 5% R
Slide 15: The Next Chapter: Welcome Incoming CEO Brent Yeagy
15 T HE N EXT C HAPTER Welcome Incoming CEO Brent Yeagy New Markets. New Innovation. New Growth. ▪ Joined Wabash in 2003 as Vice President of Manufacturing ▪ Vice President and General Manager of Commercial Trailer Products (2010 - 2013) ▪ Group President, Commercial Trailer Products ( 2013 - 2016)
Slide 16: Annual Shareholders Meeting: Brent Yeagy
ANNUAL SHAREHOLDERS MEETING May 16, 2018 Brent Yeagy President & Chief Operating Officer
Slide 17: The Path Forward Builds on Our Legacy
17 T HE P ATH F ORWARD B UILDS ON O UR L EGACY New Markets. New Innovation. New Growth.
Slide 18: Strong, Disciplined Financial Performance
18 S TRONG , D ISCIPLINED F INANCIAL P ERFORMANCE 1 2 3 4 Balanced Capital Allocation Margin Expansion Disciplined Balance Sheet Management Strong Earnings & Cash Generation New Markets. New Innovation. New Growth.
Slide 19: Mega Trends Drive Growth Initiatives
19 M EGA T RENDS D RIVE G ROWTH I NITIATIVES Urbanization, Final Mile & Home Delivery Expansion of Cold Chain/ Food Equipment Energy and Chemical Production, Storage & Transportation Increased Regulation (GHG, ELDs, Food Safety) New Markets. New Innovation. New Growth.
Slide 20: Strategic Growth Momentum: Innovative Technology
20 S TRATEGIC G ROWTH M OMENTUM ▪ New material technologies will improve durability, reduce weight and grow sales Honeycomb Core Molded Structural Composites ( MSC) Cell Core Our Innovative Technology Sets Us Apart from Other OEMs New Little Falls, MN, Operation Serves as Supplier Facility for MSC ▪
Slide 21: Strategic Growth Momentum: Separate Final Mile Segment
21 S TRATEGIC G ROWTH M OMENTUM Separate “Final Mile” Segment Increases Focus, Expands Reach Leading Brands in Diverse End Markets and Industries ▪ Dry and Refrigerated Van Trailers ▪ Platform Trailers ▪ Fleet Used Trailers ▪ Aftermarket Parts and Service ▪ Tank Trailers and Truck - Mounted Tanks ▪
Slide 22: The Next Chapter Starts with People
22 1 2 3 4 Fostering Our Relentless Drive for Success Empowerment Alignment with the Mission Greater Investment in Our Human Capital T HE N EXT C HAPTER S TARTS WITH P EOPLE New Markets. New Innovation. New Growth.
Slide 23: 23 New Markets. New Innovation. New Growth.
23 New Markets. New Innovation. New Growth.
Slide 24: Annual Shareholders Meeting Appendix
ANNUAL SHAREHOLDERS MEETING Appendix
Slide 25: Reconciliation of Non-GAAP Measures
25 2011 2012 2013 2014 2015 2016 2017 Net income 15.0$ 105.6$ 46.5$ 60.9$ 104.3$ 119.4$ 111.4$ Income tax (benefit) expense 0.2 (57.1) 31.1 37.5 59.0 66.0 11.1 Interest expense 4.1 21.7 26.3 22.2 19.5 15.7 16.4 Depreciation and amortization 15.6 25.6 38.3 38.8 38.0 36.8 35.1 Stock-based compensation