Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (March 2015)
31 slides from Wabash National's investor presentation, Mar 3, 2015
Slide 1: Wabash National Corporation Investor Update March 2015
WABASH NATIONAL CORPORATION Investor Update March 2015
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: Strategic Segments
3 S TRATEGIC S EGMENTS Wabash National Corporation Commercial Trailer Products 2014 Sales: $ 1.3B • Dry & Refrigerated Vans • Platform Trailers • Fleet Used Trailers Diversified Products 2014 Sales: $466M • Walker Group • Wabash Composites New Markets. New Innovation. New Growth. Retail 2014 Sales:
Slide 4: 2014 Segment Revenue and Product Mix
4 2014 S EGMENT R EVENUE AND P RODUCT M IX New Markets. New Innovation. New Growth. 2014 Consolidated Revenue: $1.86B
Slide 5: Walker and Beall Acquisitions Accelerate Diversification
5 W ALKER AND B EALL A CQUISITIONS A CCELERATE D IVERSIFICATION End Markets Geographies Transportation Products Leader Engineered Products Leader 80% of Total Revenues 20% of Total Revenues Position Products Est. Share # 1 ALL liquid - transportation systems in North America 40% # 1 Stainless - stee
Slide 6: Diversification Efforts Driving Results
6 2007 Higher Growth and Margin Profile, Less Cyclicality 2014 D IVERSIFICATION E FFORTS D RIVING R ESULTS Revenue Manufacturing Retail 14% 86% 24% Commercial Trailer Products Diversified Products Retail 66% 10% Operating Income Manufacturing Retail Diversified Products Commercial Trailer Products 3
Slide 7: Long-Term Growth Drivers
7 L ONG - T ERM G ROWTH D RIVERS ▪ Pricing discipline ▪ Operational efficiency / lean manufacturing ▪ Supply chain optimization Margin Expansion ▪ New end markets and geographies ▪ Product innovations / portfolio expansion ▪ Aftermarket p arts and s ervice capabilities Organic Growth ▪ Proven abilit
Slide 8: Segment Growth Initiatives
8 S EGMENT G ROWTH I NITIATIVES New Markets. New Innovation. New Growth. CTP DPG Retail ▪ TrustLock® Plus System ▪ MaxClearance ™ Door System ▪ EZ - Adjust™ Tensioning System ▪ ID/Aux Stop Light System ▪ Pneumatic Door Seals ▪ Tire and Coil Haul Trailers ▪ DuraPlate XD - 35® Model ▪ Total Cost of Ow
Slide 9: Transportation Sector Outlook
9 T RANSPORTATION S ECTOR O UTLOOK Strong demand above replacement levels ▪ Truck Tonnage at or near record levels ▪ Truck Loadings continue to rise ▪ Trucking Conditions outlook remains strong Positive Freight Trend and Trucking Conditions Trucking Indicators
Slide 10: Trailer Sector Outlook
10 ACT Forecast by Segment 2013 2014 2015 2016 2017 2018 2019 Dry Van 134,586 155,909 181,000 177,500 162,000 148,000 153,800 Refrigerated 35,879 38,616 43,000 39,000 37,500 38,000 40,000 Platform 22,122 26,355 30,000 31,000 27,500 24,000 23,000 Liquid Tanks 8,301 8,678 8,400 7,200 6,700 6,700 7,200
Slide 11: Trailer Demand Drivers
11 T RAILER D EMAND D RIVERS Strong demand above replacement levels Fleet Age and Regulations Driving Trailer D emand Fleet Equipment Dynamics ▪ Average age of equipment remains near record high ▪ 3 + years of significant underbuy (2008 - 2010) ▪ Improved access to financing ▪ Hours of Service (HOS)
Slide 12: Trailer Demand Drivers: Fleet Rates Increase
12 T RAILER D EMAND D RIVERS Fleet Rates Increase with Tightening Capacity ▪ Active truck utilization has reached 99%, expected to stay elevated for several years due to regulatory impact ▪ Truckload rates increasing ▪ Fleet profitability near record levels Carrier Operating Environment
Slide 13: Commercial Trailer Products Intermodal Growth
13 C OMMERCIAL T RAILER P RODUCTS I NTERMODAL G ROWTH : M INIMAL I MPACT TO T RUCK F REIGHT Trucking Boosts Share of Total Tonnage to 71% by 2025 Overall Freight Trends • Total tonnage projected to increase from 14B tons in 2013 to 16.3B tons in 2019 • Total freight revenue projected to increase fro
Slide 14: Segment Outlook: Diversified Products
14 S EGMENT O UTLOOK : D IVERSIFIED P RODUCTS ▪ Projected growth in Truck Body market drives DuraPlate® panel sales growth ▪ CARB compliance requirements continue to drive demand for aerodynamic products ▪ Housing Starts support potential moving and storage growth and need for portable storage conta
Slide 15: Segment Outlook: Diversified Products
15 S EGMENT O UTLOOK : D IVERSIFIED P RODUCTS ▪ Growing milk production supports demand for dairy silos, mixers and food - grade tank trailers ▪ Pharmaceutical R&D is expected to increase through 2018 ▪ Lower cost access to natural gas driving energy demand Source: U.S. Energy Information Administra
Slide 16: Segment Outlook: Diversified Products
16 S EGMENT O UTLOOK : D IVERSIFIED P RODUCTS ▪ World air passenger traffic is projected to steadily increase over the next 20 years ▪ World air cargo traffic is projected to more than double over the next 20 years RTK: Revenue Ton K ilometers Source : Boeing, World Air Cargo Forecast 2012 - 2013
Slide 17: Value Proposition
17 V ALUE P ROPOSITION New Markets. New Innovation. New Growth. Superior Product ▪ Leading producer of semi - trailers and liquid transportation systems for 14 of the past 20 years* ▪ Long history of innovation with nearly 100 patents ▪ Customer - focused solutions ▪ Products that revolutionize the
Slide 18: Long-Term Strategic Objectives
18 L ONG - T ERM S TRATEGIC O BJECTIVES Expectations 2011 2012 2013 2014 Long - term Revenue $1.2B $1.5B $1.6B $1.9B > $ 2.0B Diversified Products Revenue (1) $63M $321M $459M $466M > $600M Consolidated Gross Margins 5.6% 11.2% 13.2% 12.5% > 13% CTP Gross Margins 3.8% 7.1% 7.8% 8.1% > 10% Operating
Slide 19: Financial Overview
WABASH NATIONAL CORPORATION Financial Overview
Slide 20: Financial Performance
20 $338 $640 $1,187 $1,462 $1,636 $1,863 $0 $400 $800 $1,200 $1,600 $2,000 12/09 12/10 12/11 12/12 12/13 12/14 ($ millions) F INANCIAL P ERFORMANCE Trailing Twelve Month (TTM) Revenue FY 2014 Revenue and Operating Income Set New Records ($ millions) Significantly improved financial results : ▪ TTM r
Slide 21: Financial Performance: TTM Operating EBITDA and Net Leverage
21 F INANCIAL P ERFORMANCE TTM Operating EBITDA at $169M and Net Leverage of 1.2x Net Leverage Ratio Improved top - line and margins lead to: ▪ FY Operating EBITDA achieved best ever level in 2014 ▪ Cash generation leading to lower net debt leverage and significantly improved liquidity ($43) $5 $39
Slide 22: Appendix
WABASH NATIONAL CORPORATION Appendix
Slide 23: Segment Profile: Commercial Trailer Products
23 Best - in - Class , Technologically Innovative Products Financial Performance ▪ 2014 New Trailer Shipments: 53,550 ▪ Comprehensive portfolio: dry vans, refrigerated vans, platform trailers ▪ Leading brands and long - standing customer relationships ▪ Industry leader in van and platform trailer ma
Slide 24: Segment Profile: Diversified Products
24 Broadest Tank Trailer Portfolio in the Industry Financial Performance Key Brands ▪ Walker Group and Wabash Composites ▪ Diverse portfolio of products serving a variety of customers and attractive end markets ▪ Leading brands and long - standing relationships with blue - chip customer base ▪ Highe
Slide 25: Segment Profile: Retail
25 Company - Owned Retail Locations Strategic Footprint Providing National Support Financial Performance ▪ Dealership model, selling new and used trailers, aftermarket parts, and maintenance and repair services ▪ Integrated with OEM to deliver best practices and innovation in the aftermarket ▪ Expan
Slide 26: Key Customers
26 K EY C USTOMERS Large and Diverse Customer Profile Wabash Composites Commercial Trailer Products Walker Group
Slide 27: Consolidated Income Statement
27 C ONSOLIDATED I NCOME S TATEMENT New Markets. New Innovation. New Growth. ($ in thousands, except per share amounts) 2009 2010 2011 2012 2013 2014 Net sales 337,840$ 640,372$ 1,187,244$ 1,461,854$ 1,635,686$ 1,863,315$ Cost of sales 360,750 612,289 1,120,524 1,298,031 1,420,563 1,630,681 Gross pr
Slide 28: Consolidated Balance Sheet
28 C ONSOLIDATED B ALANCE S HEET New Markets. New Innovation. New Growth. ($ in thousands) 2009 2010 2011 2012 2013 2014 ASSETS Current assets Cash and cash equivalents 1,108$ 21,200$ 19,976$ 81,449$ 113,262$ 146,113$ Accounts receivable 17,081 37,853 52,219 96,590 120,358 135,206 Inventories 51,801
Slide 29: Consolidated Cash Flows
29 C ONSOLIDATED C ASH F LOWS New Markets. New Innovation. New Growth. ($ in thousands) 2009 2010 2011 2012 2013 2014 Cash flows from operating activities Net (loss) income (101,765)$ (141,760)$ 15,042$ 105,631$ 46,529$ 60,930$ Adjustments to reconcile net (loss) income to net cash (used in) provide
Slide 30: Reconciliation of Non-GAAP Measures
30 R ECONCILIATION OF N ON - GAAP M EASURES New Markets. New Innovation. New Growth. ($ in millions) Note: This table reconciles annual net income (loss) for the periods presented to the non - GAAP measure of Operating EBITDA. Di fferences may exist in the calculation of Operating EBITDA due to roun
Slide 31: Reconciliation of Non-GAAP Measures
31 R ECONCILIATION OF N ON - GAAP M EASURES ($ in millions) Note: This table reconciles the trailing twelve month net income (loss) for the periods presented above to the non - GAAP measure of Operating EBITDA. Differences may exist in the calculation of Operating EBITDA due to rounding. New Markets