Wabash National Corporation · NYSE:WNC
Wabash National — Loop Capital Markets Transportation, Logistics and Materials Conference 2020
17 slides from Wabash National's conference presentation, Feb 13, 2020
Slide 1: Wabash National Corporation – Loop Capital Markets Conference
Wabash National Corporation Loop Capital Markets Transportation, Logistics and Materials Conference February 13th | Coral Gables, FL Brent Yeagy – President & Chief Executive Officer
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements convey the Company’s current expectations or forecasts of future events. All statements contained in this presentation ot
Slide 3: Wabash National – Changing How the World Reaches You: Key Messages
Wabash National – Changing How the World Reaches You Key Messages ▪ Wabash National has grown to be a more diverse company over the last decade with a more resilient portfolio of businesses ▪ Final Mile business is growing rapidly, also changing the nature of discussions with customers ▪ Focused on
Slide 4: Wabash at a Glance
Wabash at a Glance (NYSE: WNC) 1985 Lafayette, IN ~$700M1 ~6,900 17 $2.3B 6.2% $109M Founded Headquarters Market-cap Global Employees Manufacturing 2019 Revenue 2019 Operating 2019 Free Cash Locations Margin Flow 2019 Revenue by Segment 19% Commercial Trailer Products 16% Diversified Products 65% Fi
Slide 5: Portfolio of Engineered Solutions
Portfolio of Engineered Solutions COMMERCIAL TRAILER DIVERSIFIED PRODUCTS FINAL MILE $1.5B1 $385M1 $442M1 PRODUCTS (CTP) GROUP (DPG) PRODUCTS (FMP) ▪ Dry and Refrigerated Van Trailers ▪ Tank Trailers and Truck-Mounted Tanks ▪ Truck-Mounted Dry Bodies ▪ Platform Trailers ▪ Composite Panels and Produc
Slide 6: Broadening Exposure Across Transportation, Logistics and Distribution
Broadening Exposure Across Transportation, Logistics and Distribution FIRST MILE MIDDLE MILE FINAL MILE ▪ Long-haul routes of goods ▪ Products moved into or redistributed ▪ Delivery of goods to home or final among fulfillment centers destination ▪ Driven by freight activity ▪ Driven by strategic pos
Slide 7: Our Sustainable Competitive Advantages
Our Sustainable Competitive Advantages Industry-leading Innovative Operational Strong Customer Product Portfolio Technology Excellence Relationships ▪ Leverage our 30+ years of ▪ Customer-focused engineered ▪ Emphasizing manufacturing ▪ Built on industry-leading, engineering and mfg. solutions in al
Slide 8: Our Future Will be Built as One Wabash
Our Future Will be Built as One Wabash Purpose To change how the world reaches you To be the innovation leader of engineered solutions for the transportation, Vision logistics and distribution industries To enable our customers to succeed with breakthrough ideas and solutions Mission that help them
Slide 9: WMS is Creating a Transformed Wabash National
WMS is Creating a Transformed Wabash National Extending Lean Thinking from Shop Floor to Enterprise Standardizing Processes Across All Portfolio Businesses Freeing Resources to Accelerate Growth and Innovation 9 9
Slide 10: Mega Trends Driving Growth
Mega Trends Driving Growth Energy & Chemical Urbanization, Final Mile & Expansion of Cold Chain & Increased Regulation Production, Storage & Home Delivery Food Equipment (GHG1, ELDs2, Food Safety) Transportation ▪ New and existing designs ▪ New patent-pending ▪ Low cost energy supports ▪ Advanced li
Slide 11: Strategic Path Forward both in the Near- and Long-term
Strategic Path Forward both in the Near- and Long-term ▪ Continue innovation leadership INNOVATE ▪ Develop new capabilities and capacity to enable growth ▪ Improve durability and reduce weight with material technologies ▪ Margin enhancement through integration, alignment and shared services activiti
Slide 12: Historical Financial Performance
Historical Financial Performance $2,267 $2,319 $2,028 $1,863 $1,845 $1,767 $1,636 $1,462 $1,214 $1,312 $1,187 $1,041 $1,103 Annual $836 ($M) $640 Revenue $338 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $204 $182 $146 $143 $122 $137 $103 Annual Adjusted $69 $80 $8
Slide 13: Historical Financial Performance: Free Cash Flow Conversion
Historical Financial Performance 237% 133% 119% 121% Free Cash Flow 113% 106% 106% Conversion¹ 2013 2014 2015 2016 2017 2018 2019 7-Year Track Record of 100%+ Free Cash Flow Conversion 13 13 1 Free Cash Flow Conversion defined as Free Cash Flow/Net Income. Please see appendix for reconciliation
Slide 14: Balanced Capital Allocation Strategy
Balanced Capital Allocation Strategy LIQUIDITY Managing the business for the long-term DEBT Target net debt leverage of 1.0x to 3.0x MANAGEMENT Focus on debt reduction and lowering net debt leverage to ~1.0x REINVEST FOR Capital expenditures / R&D to support organic growth and commercialization GROW
Slide 15: 2020 Guidance
2020 Guidance 2020 Guidance Guidance Assumptions ▪ Trailer market to moderate REVENUE $2.05 – 2.15B $2.1B midpoint ▪ Truck body market growth to moderate OPERATING MARGIN 5.1 – 5.7% ▪ ~$24M interest expense 5.4% midpoint ▪ 26-27% tax rate $1.10 – 1.30 ▪ Flat share count ARNINGS ER HARE E P S $1.20 m
Slide 16: Reconciliation of Adjusted Consolidated Operating Income
Reconciliation of Adjusted Consolidated Operating Income Unaudited ($M) 2008 2012 2013 2014 2015 2016 2017 2018 2019 Income from Operations $ (103.8) $ 70.5 $ 103.2 $ 122.4 $ 180.4 $ 202.5 $ 130.8 $ 111.0 $ 142.8 Adjustments: Impairment 66.3 - - - 1.1 1.7 - 25.0 - Acquisition expenses and related ch
Slide 17: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow Unaudited ($M) 2013 2014 2015 2016 2017 2018 2019 Net cash provided by operating activities $ 128.7 $ 92.6 $ 131.8 $ 178.8 $ 144.4 $ 112.5 $ 146.3 Capital expenditures 18.4 20.0 20.8 20.3 26.1 34.0 37.6 Free cash flow $ 110.3 $ 72.6 $ 111.0 $ 158.5 $ 118.3 $ 78.5 $ 1