Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (February 2013)
33 slides from Wabash National's investor presentation, Feb 12, 2013
Slide 1: Wabash National Corporation Investor Update February 2013
WABASH NATIONAL CORPORATION Investor Update February 2013 Dick Giromini, President & CEO Mark Weber, CFO
Slide 2: Safe Harbor Statement
2 S AFE H ARBOR S TATEMENT 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 m
Slide 3: Investment Highlights
3 x Diversified manufacturer and industry leader in van and tank trailer production x Leading brands and longstanding relationships with blue - chip customer base x Acquisition of Walker Group accelerates diversification x Recent acquisition of Beall assets creates industry’s broadest tank trailer p
Slide 4: Company History
4 Acquired assets of leading liquid tank and dry bulk producer C OMPANY H ISTORY Acquired assets of leading aluminum flatbed producer Founded as a start - up IPO ( NYSE : WNC ) Achieved leading industry position 1985 1991 1994 1996 1997 1999 2006 2008 2009 2011 2012 2013 Introduced the DuraPlate ® c
Slide 5: Strategic Segments and Business Units
5 S TRATEGIC S EGMENTS AND B USINESS U NITS Commercial Trailer Products Wabash National Corporation Diversified Products Retail • Dry Vans • Refrigerated Vans • Platform Trailers • Fleet Used Trailers • Walker Group • Wabash Composites • Wabash Wood Products • 18 retail locations in U.S. • New Trail
Slide 6: Commercial Trailer Products
6 C OMMERCIAL T RAILER P RODUCTS Commercial Trailer Products Wabash National Corporation • Dry Vans • Refrigerated Vans • Platform Trailers • Fleet Used Trailers
Slide 7: Commercial Trailer Key Strengths
7 C OMMERCIAL T RAILER P RODUCTS : K EY S TRENGTHS x #1 in van and platform trailer production for 18 of the past 25 years* x #1 in dry van semi - trailer production* x #3 in refrigerated van semi - trailer production* x Top 3 in platform semi - trailer production* x Blue - chip customer base x 60+
Slide 8: Commercial Trailer Long History of Innovation
8 C OMMERCIAL T RAILER P RODUCTS : L ONG H ISTORY OF I NNOVATION Leading the way in transportation technologies that deliver value Sheet & Post Trailer • Commodity • Versatile • High maintenance FRP Trailer • FRP (Fiberglass Reinforced Plywood) • Added interior width • Difficult to repair 1985 Alum.
Slide 9: Commercial Trailer Products
9 C OMMERCIAL T RAILER P RODUCTS Dry Freight Vans: 82% / Total Refrigerated Vans: 11% / Total Platform Trailers: 5% / Total Specialty Equipment: 2% / Total Note: Percentages based on WNC shipments 2010 - 2012
Slide 10: Commercial Trailer Customers
10 C OMMERCIAL T RAILER P RODUCTS : C USTOMERS Wabash National Customers • 50% of Top 50 For - Hire Fleets • 40% of Top 100 For - Hire Fleets Preferred by the industry’s leading carriers Source: 2011 Transport Topics 100
Slide 11: Commercial Trailer Distribution
11 Extensive sales and support network with 200+ locations Wabash National Trailer Centers retail network Platform Dealer Dry/Refrigerated Dealer C OMMERCIAL T RAILER P RODUCTS : D ISTRIBUTION
Slide 12: Commercial Trailer Demand
12 C OMMERCIAL T RAILER P RODUCTS Tonnage remains higher than pre - recession levels Source: ATA C OMMERCIAL T RAILER P RODUCTS : D EMAND -20% -15% -10% -5% 0% 5% 10% 15% 20% 90 95 100 105 110 115 120 125 130 2006 2007 2008 2009 2010 2011 2012 Truck Tonnage Index (ATA) TTI (Seas. Adjusted) Y/Y % Cha
Slide 13: Trailer cycle could be one of the longest and strongest in history
13 C OMMERCIAL T RAILER P RODUCTS T railer cycle could be one of the longest and strongest in history Source: ACT Research and FTR Associates. FTR numbers represent trailer production . ACT Forecast by Segment 2012 2013 2014 2015 2016 2017 Dry Van 129,543 141,750 150,000 140,000 125,000 140,000 Refr
Slide 14: 2013 Outlook: Industry Forecast
14 2013 O UTLOOK : I NDUSTRY F ORECAST Strong demand above replacement levels Short - /Mid - Term Demand Drivers Source: ACT Sources: 1974 - 1989:SMCC/TBB; 1989 - 2012: ACT • Age of equipment is at an all - time high of nearly 8.3 years • Equipment age profile: disproportionate number of aged units
Slide 15: Trucking boosts share of total tonnage to 70% by 2022
15 C OMMERCIAL T RAILER P RODUCTS Trucking boosts share of total tonnage to 70% by 2022 Source: ATA Freight Transportation Forecast to 2023 Overall Growth Trends • Total tonnage will increase an estimated 13.7B tons in 2011 to 16.6B tons in 2023 • Estimated Freight Increase ’12 - ’17 ’18 - ’23 Gener
Slide 16: Diversified Products
16 D IVERSIFIED P RODUCTS Wabash National Corporation Diversified Products • Walker Group • Wabash Composites • Wabash Wood Products
Slide 17: Diversified: Walker Group
17 D IVERSIFIED P RODUCTS : W ALKER G ROUP x #1 in Liquid Transportation Systems in North America x Complements Wabash National’s position as #1 van semi - trailer manufacturer in North America x Commonality of culture and history of innovation x Strong brand and premium products x Broadest tank tra
Slide 18: Diversified: Walker Group Market Position
18 D IVERSIFIED P RODUCTS : W ALKER G ROUP Market Position Products and Markets Market Share Brands # 1 ALL liquid - transportation systems in North America 33% # 1 Stainless - steel liquid - transportation systems in North America 63% # 1 Stainless - steel liquid - tank trailers for the North Ameri
Slide 19: Diversified: Walker Group Products
19 D IVERSIFIED P RODUCTS : W ALKER G ROUP Stainless - Steel Dairy Trailer Refined Petroleum Truck 7,000 Gallon Refueler Towable Hydrant Dispenser Liquid Tank Trailers Truck - Mounted Tanks Aviation Refuelers Carts and Hydrant Dispensers Stainless - Steel Vertical Silos WEP Processor Pharmair Contai
Slide 20: Diversified: Walker Group End-Markets and Geographies
20 D IVERSIFIED P RODUCTS : W ALKER G ROUP End - Markets Geographies Products and Services Blue - Chip Customer Base Oil, Gas & Energy Services Dairy, Food and Beverage Chemical Pharmaceuticals Aviation Defense Environmental Note: 1. All information based off of 2011 revenues US, 87% Australia, 0% A
Slide 21: Diversified: Wabash Composites
21 D IVERSIFIED P RODUCTS : W ABASH C OMPOSITES x Established parent company and brand x Preferred industry partner: DOT, EPA, etc. x Growing blue - chip customer base x Proven Performance: 460,000+ DuraPlate trailers on the road x Strong research and development x Flexible, scalable manufacturing f
Slide 22: Diversified: Wabash Composites Products
22 D IVERSIFIED P RODUCTS : W ABASH C OMPOSITES New product offerings constantly in evaluation and development DuraPlate® Composite Material • Pre - coated, galvanized steel skins • Foamed HDPE Core • Extremely strong • Light weight • Damage resistant • Multiple industrial applications Van Truck Bod
Slide 23: Diversified: Wabash Composites Demand Drivers
23 D IVERSIFIED P RODUCTS : W ABASH C OMPOSITES Demand Drivers • Forecasted growth in Truck Body market drives DuraPlate® panel sales growth • CARB (California Air Resource Board) compliance requirements continue to drive DuraPlate® AeroSkirt® demand • Housing Starts support potential moving and sto
Slide 24: Financials
FINANCIALS
Slide 25: Financial Highlights
25 0 500 1,000 1,500 2007 2008 2009 2010 2011 2012 $1,103 $836 $338 $640 $1,187 $1,462 - 12% - 8% - 4% 0% 4% 8% 12% 2007 2008 2009 2010 2011 2012 8% 3% - 7% 4% 6% 11% Revenue ($ millions) Gross Margin Net Working Capital as % of Revenue (3) (1) 2008 operating income excludes a non - cash impairment
Slide 26: TTM Revenue and Operating EBITDA
26 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 $1,462 ($60) ($40) ($20) $0 $20 $40 $60 $80 $100 $120 $140 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 $
Slide 27: Capital Structure and Liquidity
27 Capital Structure and Liquidity Strong Liquidity & Flexible Capital Structure 0 50 100 150 200 250 300 2013 2014 2015 2016 2017 2018 2019 ($ millions) Required Minimum Maturities (2)(3) Cost Effective Debt Structure • $150 Million ABL Revolving Facility – Sr. Secured, matures 5/2017, floating LIB
Slide 28: Appendix
APPENDIX
Slide 29: Consolidated Income Statement
29 C ONSOLIDATED I NCOME S TATEMENT ($ in thousands, except per share amounts) 2007 2008 2009 2010 2011 2012 Net sales 1,102,544$ 836,213$ 337,840$ 640,372$ 1,187,244$ 1,461,854$ Cost of sales 1,010,823 815,289 360,750 612,289 1,120,524 1,298,031 Gross profit 91,721$ 20,924$ (22,910)$ 28,083$ 66,720
Slide 30: Consolidated Balance Sheet
30 C ONSOLIDATED B ALANCE S HEET ($ in thousands) 2007 2008 2009 2010 2011 2012 ASSETS Current assets Cash and cash equivalents 41,224$ 29,766$ 1,108$ 21,200$ 19,976$ 81,449$ Accounts receivable 68,752 37,925 17,081 37,853 52,219 96,590 Inventories 113,125 92,896 51,801 110,850 189,533 189,487 Defer
Slide 31: Consolidated Cash Flows
31 C ONSOLIDATED C ASH F LOWS ($ in thousands) 2007 2008 2009 2010 2011 2012 Cash flows from operating activities Net income (loss) 16,285$ (125,826)$ (101,765)$ (141,760)$ 15,042$ 105,631$ Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreciation
Slide 32: Reconciliation of Non-GAAP Measures
32 R ECONCILIATION OF N ON - GAAP M EASURES Note: This table reconciles annual net income (loss) for the periods presented to the non - GAAP measure of Operating EBITDA ($ in millions) 2007 2008 2009 2010 2011 2012 Net income (loss) 16.3$ (125.8)$ (101.8)$ (141.8)$ 15.0$ 105.6$ Income tax expense (b
Slide 33: Reconciliation of Non-GAAP Measures (TTM)
33 Notes: R ECONCILIATION OF N ON - GAAP M EASURES ($ in millions) This table reconciles the trailing twelve month net income (loss) for the periods presented above to the non - GAAP measure of Operating EBITDA 2008 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net (loss) income (125.8)$ (147.7
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