Wabash National Corporation · NYSE:WNC
Wabash National — Shareholder Meeting (June 2003)
18 slides from Wabash National's shareholder meeting presentation, Jun 2, 2003
Slide 1: Annual Meeting of Stockholders June 2003
(r) Annual Meeting of Stockholders June 2003
Slide 2: Cautionary Statement
Cautionary Statement 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 materially f
Slide 3: Goals
Goals Achieve The Numbers! Operational Excellence! Focus On Customer! Grow The Business! EXECUTION IS CRITICAL KEEP IT SIMPLE
Slide 4: Critical Issues
Critical Issues Cash Generation Safety Quality Schedule Attainment & Capacity Product & Process Standardization Branch Integration & Optimization Continuous Improvement Everywhere Operational Excellence & Financial Strength
Slide 5: Overview
Overview . ws
Slide 6: Trucking Industry: 2000 to 20??
Trucking Industry: 2000 to 20?? Fuel cost spikes Rising insurance costs Declining asset values Limited capital Economic recession Record failures Consolidation "THE PERFECT STORM"
Slide 7: Trailer Industry
Trailer Industry Sharpest decline in industry history 2000 down 15% 2001 down 48% 2002 down 1% Industry bottomed in Q-1-02 at annualized build rate of 88,000 units (versus >300,000 in '99) 2002 engine prebuy Industry capacity consolidation Trailmobile, Dorsey, Monon bankruptcies Great Dane - Strick
Slide 8: The Worst Is Over
The Worst Is Over 28 consecutive month over month declines. Data Source: ACT Publications Data Source: ACT Publications
Slide 9: Total TL, LTL and Other Truck Capital Expenditure Comparison
Total TL, LTL and Other Truck Capital Expenditure Comparison 2002 Actual 2003 Estimated Tractors 56.68 45.8 Trailers 25.02 44.51 Other 17.55 27.47 Tractors, $56.68 57.1% Tractors, $45.80 38.9% Trailers, $25.02 25.2% Trailers, $44.51 37.8% Other, $27.47 23.3% Other, $17.55 17.7% Data Source: Bear, St
Slide 10: U.S. Trailer Industry Shipments 1991 - 2006
U.S. Trailer Industry Shipments 1991 - 2006 Data Source: ACT Publications 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 - F 2004 - F 2005 - F 2006 - F Total Trailers 179000 173000 164000 161000 161000 147677 120156 162881 185304 233189 279242 202952 2
Slide 11: Wabash National Business Model
Wabash National Business Model Strong Core Customers Proprietary Products Retail, Service & Distribution Network
Slide 12: Truckload Market Consolidation
Truckload Market Consolidation 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Other 0.99 27.4 90 20.4 Top Ten Carriers 0.01 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Other 0.89 27.4 90 20.4 Top Ten Carriers 0.11 Other - 99% Top-10 Carriers - 1% 1980 2000 Other - 89% Top-10 Carriers - 11% Data Source: Eno Transportation Foun
Slide 13: Core Customers
Sania WERNER ENTERPRISES: = as )) SAFEWAY ; Core Customers SS J.B. HUNT Ss
Slide 14: DuraPlate Trailer Production
DuraPlate(r) Trailer Production 1997 1998 1999 2000 2001 2002 East 7288 17983 36649 36755 24782 27275 West 15.1 29.5 52.5 55.5 78.2 78.6 In Units Percentage % Low maintenance Excellent long-term durability Excellent trade-in value 25% of dry freight market uses DuraPlate(r) trailers Growing at 3-5%
Slide 15: Retail & Distribution Strategy
Retail & Distribution Strategy Combines largest retail & dealer network with largest fleet business Higher margin opportunities (parts, service) Used trailer remarketing capacity Focus on small, mid- sized regional fleets sized regional fleets sized regional fleets sized regional fleets sized region
Slide 16: Results (in millions)
Results (in millions) Revenues Q-1-02 Q-1-03 East -26.5 1.4 Q-1-02 Q-1-03 East 162 222.5 Pre-Tax Income (Loss) First profitable quarter since Q-3-00 Peak margins (Gross & EBITDA) at 60% of peak volumes EBITDA of $16.0 million
Slide 17: Total Debt Levels
Total Debt Levels $110 million (24%) Debt Reduction $100 million in debt reduction in 2002 $100 million debt reduction goal for 2003
Slide 18: Summary
Summary Increased liquidity: $51 million Working capital: YOY inventory reduction: $55 million Safety: TRIR improved by 48% Quality: First pass yield improved > 100% Schedule Attainment: 100% attainment Capacity: Up 23% since July Product Standardization: Reduced options by 54% CI Events Annualized