Wabash National Corporation · NYSE:WNC
Wabash National — Q4 2019 Earnings Presentation
20 slides from Wabash National's earnings presentation, Dec 31, 2019
Slide 1: Wabash National Corporation 2019 Q4 Earnings Release
WABASH NATIONAL CORPORATION 2019 Q4 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 & Year
HIGHLIGHTS OF QUARTER & YEAR ▪ All-time record revenue of $2.3B Strong Full Year ▪ Increased operating income, net income and EPS vs prior year 2019 ▪ Major strides made in transforming Wabash in line with strategic vision ▪ Strong revenue of $579M Key Q4 Financial ▪ Operating Margin of 5.5% Results
Slide 4: Refreshed Purpose, Vision, Mission & Values
Refreshed Purpose, Vision, Mission & Values 4 4
Slide 5: Q4 2019 Consolidated Financial Performance
Q4 2019 CONSOLIDATED FINANCIAL PERFORMANCE Actual Strong Customer Demand $579M Net Sales Operating Result Lower than Expected $0.34 Earnings Per Share 4Q18 Results YoY Gross Margin Improvement on Price Recovery 12.5% 11.3% Gross Margin Gross Margin $32M $36M Operating Income Modestly Lower YoY Opera
Slide 6: Commercial Trailer Products
COMMERCIAL TRAILER PRODUCTS Revenue Operating Margin -9.0% +190 bps $438.7 10.8% $399.3 8.9% Q4 2018 Q4 2019 Q4 2018 Q4 2019 6 6
Slide 7: Diversified Products Group
DIVERSIFIED PRODUCTS GROUP Revenue Adjusted Operating -7.5% Margin* -80 bps $102.3 6.7% $94.7 5.9% Q4 2018 Q4 2019 Q4 2018 Q4 2019 7 *Q4 2018 DPG operating margin adjusted for asset impairment related to the sale of Aviation and Truck Equipment business 7
Slide 8: Final Mile Products
FINAL MILE PRODUCTS Revenue Operating Margin +24.4% -440 bps $92.7 (2.0)% $74.5 (6.4)% Q4 2018 Q4 2019 Q4 2018 Q4 2019 8 8
Slide 9: Cash Generation
CASH GENERATION Full year Full year 2019 2018 Net Income $89.6M $69.4M Operating Cash Flow $146.3M $112.5M Capital Expenditure $37.6M $34.0M Free Cash Flow $108.6M $78.5M Free Cash Flow Conversion1 121% 113% 1 Free cash flow conversion defined as free cash flow divided by net income 9 9
Slide 10: 2020 Guidance
2020 GUIDANCE Expected Trends Key Metrics ▪ CTP demand levels to moderate in 2020 Sales Operating Margin $2.05B-$2.15B 5.1% to 5.7% ▪ Tank Trailer market volumes to soften in 2020 Midpoint: $2.1B Midpoint: 5.4% ▪ Truck Body market to continue secular growth trends, at a slower pace in 2020 Other ▪ M
Slide 11: Appendix
APPENDIX a
Slide 12: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS Unaudited - dollars in thousands December 31, 2019 December 31, 2018 Assets Current assets: Cash and cash equivalents $ 140,516 $ 132,690 Accounts receivable, net 172,737 181,064 Inventories 186,914 184,404 Prepaid expenses and other 41,222 51,261 Total current assets 541
Slide 13: Consolidated Statements of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited - dollars in thousands Three Months Ended December 31, Twelve Months Ended December 31, 2019 2018 2019 2018 Net sales $579,001 $610,196 $2,319,136 $2,267,278 Cost of sales 506,694 541,140 2,012,754 1,983,627 Gross profit 72,307 69,056 306,382 283,651 G
Slide 14: Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - dollars in thousands Year Ended December 31, 2019 2018 Cash flows from operating activities: Net income $ 89,575 $ 69,421 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 21,886 21,215 Amortization of int
Slide 15: Q4 QTD Segment Information
Q4 QTD SEGMENT INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Three Months Ended December 31, Trailer Products Products Products Eliminations Consolidated 2019 New trailers shipped 14,300 650 0 0 14,950 Used trailers shipped 25 15 0 0 40 New Trailers $ 3
Slide 16: Q4 YTD Segment Information
Q4 YTD SEGMENT INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Twelve Months Ended December 31, Trailer Products Products Products Eliminations Consolidated 2019 New trailers shipped 54,650 2,850 0 0 57,500 Used trailers shipped 75 75 0 0 150 New Trailers
Slide 17: Reconciliation of Adjusted Segment Operating Income
RECONCILIATION OF ADJUSTED SEGMENT OPERATING INCOME Unaudited - dollars in thousands Three Months Ended December 31, Twelve Months Ended December 31, 2019 2018 2019 2018 Commercial Trailer Products Income from operations $ 43,135 $ 39,077 $ 145,877 $ 141,795 Diversified Products Income from operatio
Slide 18: 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 Income (1): Three Months Ended December 31, Twelve Months Ended December 31, 2019 2018 2019 2018 Net income $ 18,375 $ 11,584 $ 89,575 $ 69,421 Adjustments: Facility transactions (2) —
Slide 19: Reconciliation of Operating EBITDA and Free Cash Flow
RECONCILIATION OF OPERATING EBITDA AND FREE CASH FLOW Unaudited - dollars in thousands Operating EBITDA (1) Three Months Ended December 31, Twelve Months Ended December 31, 2019 2018 2019 2018 Net income $ 18,375 $ 11,584 $ 89,575 $ 69,421 Income tax expense 6,929 5,374 28,156 26,583 Interest expens
Slide 20: Reconciliation of Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin
RECONCILIATION OF ADJUSTED SEGMENT EBITDA1 AND ADJUSTED SEGMENT EBITDA MARGIN1 Commercial Trailer Unaudited - dollars in thousands Products Diversified Products Final Mile Products Twelve Months Ended December 31, 2019 2018 2019 2018 2019 2018 Income (Loss) from operations $ 145,877 $ 141,795 $ 29,7