Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (September 2018)
24 slides from Wabash National's investor presentation, Sep 14, 2018
Slide 1: Wabash National Corporation Investor Update September 2018
WABASH NATIONAL CORPORATION Investor Update September 2018
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: Strong, Disciplined Financial Performance
3 ▪ Earnings up over 45% since 2012 (Adjusted EPS $0.95/ sh in 2012 to $1.38/ sh in 2017) ▪ Free cash flow focused; $144M in Operating Cash Flow in 2017 ▪ $288M of liquidity or 14% of revenue as of 6/30/2018 ▪ 2.0x net debt leverage as of 6/30/2018 F INANCIAL H IGHLIGHTS Disciplined Balance Sheet Ma
Slide 4: Separate Final Mile Segment Increases Focus, Expands Reach
4 W ABASH N ATIONAL C ORPORATION 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 5: Our Identity Is Shifting From Primarily a Dry Van Manufacturer
5 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 Growing, Diversified Revenue Lowers Overall % of Dry Vans 202
Slide 6: Industry-Leading Product Portfolio: CTP End Markets
6 I NDUSTRY - L EADING P RODUCT P ORTFOLIO : CTP E ND M ARKETS * Based on industry estimates Note: All information based on 2017 revenues Sources for market positions: TTMA, ACT, Polk, Trailer/Body Builders Leadership Positions Drive Growth Potential for New Products Key Markets N.A. Market Position
Slide 7: Industry-Leading Product Portfolio: DPG End Markets
7 Food, Dairy, Beverage 31% Chemical 18% General Freight 16% Refined Fuel/O&G 8% Pharmaceutical 7% Aviation 6% Aerodynamic Devices 4% Defense, Parts & Other 10% I NDUSTRY - L EADING P RODUCT P ORTFOLIO : DPG E ND M ARKETS Leadership Positions Drive Growth Potential for New Products * Based on indust
Slide 8: Industry-Leading Product Portfolio: FMP End Markets
8 I NDUSTRY - L EADING P RODUCT P ORTFOLIO : FMP E ND M ARKETS Leadership Positions Drive Growth Potential for New Products * Based on management estimates Note: All information based on FY 2017 revenues for Supreme Corp. Sources for market positions: Specialty Transportation (2015 data) Key Markets
Slide 9: Significant Synergy Potential with Successful Integration History
9 S IGNIFICANT S YNERGY P OTENTIAL WITH S UCCESSFUL I NTEGRATION H ISTORY Expected Annual Run Rate Cost Synergies of ~$20M Within First 5 Years Supply Chain Savings Increased scale provides material purchasing savings SG&A Savings Public company costs and leveraging Wabash’s shared services Wabash M
Slide 10: Innovative Technology
10 I NNOVATIVE T ECHNOLOGY ▪ New material technologies will improve durability, reduce weight and grow sales ▪ Over 200 patents and patent applications in the U.S. and globally Our Technology Sets Us Apart from Other OEMs Honeycomb Core ▪ Exclusive license to continuous honeycomb process technology
Slide 11: Growth Drivers & Market Dynamics
WABASH NATIONAL CORPORATION Growth Drivers & Market Dynamics
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: Mega Trends Drive Growth Initiatives
13 M EGA T RENDS D RIVE G ROWTH I NITIATIVES * Investment announced since 2010 per the American Chemical Council with 34% already completed WNC is Poised to Capitalize on These Mega Trends • Low cost energy supports chemical production • $158B* of committed chemical production investment • Market sh
Slide 14: Market Drivers: Trailer Products
14 M ARKET D RIVERS : T RAILER P RODUCTS ▪ Strong demand above replacement levels forecast for next 4 years ▪ Fleet equipment dynamics and regulations key drivers of trailer demand Strong Demand Above Replacement Levels Trailer Demand Forecasts
Slide 15: Market Drivers: Final Mile Products
15 M ARKET D RIVERS : F INAL M ILE P RODUCTS Final Mile Logistics and Distribution Models are Transforming Dollars in Billions $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2015 2016 2017F 2018F 2019F 2020F 2015 - 2020E CAGR 1.4% Curtainside 4.3% Reefer 9.9% Walk - In 3.2% Parcel Delivery 3.2% Dry Freight $1.7B $2.
Slide 16: Our Financial Outlook
WABASH NATIONAL CORPORATION Our Financial Outlook
Slide 17: Financial Performance
17 F INANCIAL P ERFORMANCE Annual Revenue Annual Operating Income & Gross Margin $1,462 $1,636 $1,863 $2,027 $1,845 $1,767 $2,073 $0 $500 $1,000 $1,500 $2,000 $2,500 2012 2013 2014 2015 2016 2017 Q2 2018 (TTM) ($ mils) $70 $103 $122 $180 $203 $131 $134 11.2% 13.2% 12.5% 15.0% 17.6% 14.8% 13.7% 0% 5%
Slide 18: Key Financial Outlook
18 K EY F INANCIAL O UTLOOK 2017 FY Results 2018 FY Outlook Shipments Trailers Truck Bodies 55,050 Units 60,000 – 62,000 Units > 24,000 Units Revenue $1.77B $2.3B (1) GM% 14.8% No Guidance OM% 7.4% No Guidance SGA% (ex. Amor.) as % of Revenue 5.9% Flat to 2017, ~6% CapEx $26M ~ $40M Tax Rate 9.1% (2
Slide 19: Appendix
WABASH NATIONAL CORPORATION Appendix
Slide 20: 2012 2013 2014 2015 2016 2017 Q2 2018 TTM Net sales 1,461,854$ 1,635,686$ 1,863,315$
20 2012 2013 2014 2015 2016 2017 Q2 2018 TTM Net sales 1,461,854$ 1,635,686$ 1,863,315$ 2,027,489$ 1,845,444$ 1,767,161$ 2,072,551$ Cost of sales 1,298,031 1,420,563 1,630,681 1,724,046 1,519,910 1,506,286 1,789,278 Gross profit 163,823$ 215,123$ 232,634$ 303,443$ 325,534$ 260,875$ 283,273$ % of sal
Slide 21: 2012 2013 2014 2015 2016 2017 Q2 2018 ASSETS Current assets Cash and cash
21 2012 2013 2014 2015 2016 2017 Q2 2018 ASSETS Current assets Cash and cash equivalents 81,449$ 113,262$ 146,113$ 178,853$ 163,467$ 191,521$ 119,215$ Accounts receivable 96,590 120,358 135,206 152,824 153,634 146,836 193,450 Inventories 189,487 184,173 177,144 166,982 139,953 180,735 234,122 Deferr
Slide 22: 2012 2013 2014 2015 2016 2017 Q2 2018 TTM Cash flows from operating activities
22 2012 2013 2014 2015 2016 2017 Q2 2018 TTM Cash flows from operating activities Net income 105,631$ 46,529$ 60,930$ 104,289$ 119,433$ 111,422$ 121,478$ Adjustments to reconcile net income to net cash provided by operating activities Depreciation 14,975 16,550 16,951 16,739 16,830 18,012 19,930 Amo
Slide 23: Reconciliation of Non-GAAP Measures
23 2012 2013 2014 2015 2016 2017 Q2 2018 TTM Net income 105.6$ 46.5$ 60.9$ 104.3$ 119.4$ 111.4$ 121.5$ Income tax (benefit) expense (57.1) 31.1 37.5 59.0 66.0 11.1 5.4 Interest expense 21.7 26.3 22.2 19.5 15.7 16.4 25.1 Depreciation and amortization 25.6 38.3 38.8 38.0 36.8 35.1 38.2 Stock-based com
Slide 24: Adjusted Earnings Per Share Reconciliation
24 $ Per Share $ Per Share $ Per Share $ Per Share $ Per Share $ Per Share Net Income 46,529$ 0.67$ 60,930$ 0.86$ 104,289$ 1.50$ 119,433$ 1.82$ 111,422$ 1.78$ 121,478$ 1.99$ Adjustments: Acquisition expenses and related charges 883 0.01 - - - - - - 15,012 0.24 15,831 0.26 Revaluation of net deferred
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