Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (February 2018)
26 slides from Wabash National's investor presentation, Feb 13, 2018
Slide 1: Wabash National Corporation Investor Update February 2018
WABASH NATIONAL CORPORATION Investor Update February 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: Financial Highlights: Strong, Disciplined Financial Performance
3 ▪ Earnings up over 45% since 2012 (Adjusted EPS $0.95/ sh in 2012 to $1.38/ sh in 2017) ▪ Strong free cash flow; $144M in Operating Cash Flow in 2017 ▪ $ 361M of liquidity or 20% of revenue as of 12/31/2017 ▪ 1.9x net debt leverage as of 12/31/2017 F INANCIAL H IGHLIGHTS Disciplined Balance Sheet
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: Acquisition of Supreme Completed September 7th: Company Overview
5 A CQUISITION OF S UPREME C OMPLETED S EPTEMBER 27 TH , 2017 Company Overview Employees 1,450 Key Statistics (2016) Revenue $299M Gross Profit $67M (22%) Operating Income $29M (10%) Operating EBITDA $33M (11%) With Supreme, not only can Wabash National accelerate organic growth with our innovative
Slide 6: Significant Synergy Potential with Successful Integration History
6 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 7: Our Identity Is Shifting From Primarily a Dry Van Manufacturer
7 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 8: Industry-Leading Product Portfolio: CTP End Markets
8 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 9: Industry-Leading Product Portfolio: DPG End Markets
9 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 10: Industry-Leading Product Portfolio: FMP End Markets
10 Retail Customers 48% Fleet Customers 32% Lease Customers 16% Other 4% I NDUSTRY - L EADING P RODUCT P ORTFOLIO : FMP E ND M ARKETS Leadership Positions Drive Growth Potential for New Products * Based on industry and management estimates Note: All information based on FY 2017 revenues for Supreme
Slide 11: Innovative Technology
11 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 12: Growth Drivers & Market Dynamics
WABASH NATIONAL CORPORATION Growth Drivers & Market Dynamics
Slide 13: Growth Initiatives Driving Record Results
13 All Other Products Dry Vans 2005 2017 Consolidated Revenue 2005 vs. 2017 $1.8B $ 1.2B D ry Vans ~50% of total Revenue 77% of total Revenue 60% of total Revenue D ry Vans $1.0B D ry Vans $1.1B G ROWTH I NITIATIVES D RIVING R ECORD R ESULTS 2006: Transcraft Acquisition 2012/13: Walker Group and Bea
Slide 14: Mega Trends Drive Growth Initiatives
14 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 15: Market Drivers: Trailer Products
15 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 16: Market Drivers: Final Mile Products
16 M ARKET D RIVERS : F INAL M ILE P RODUCTS Final Mile Logistics and Distribution Models are Transforming Source: Forrester Research, Business Insider, Specialty Transportation.net, Inbound Logistics, Trucking Info 7.6% 8.2% 8.9% 10.0% 12.0% 13.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% $0 $100
Slide 17: Our Financial Outlook
WABASH NATIONAL CORPORATION Our Financial Outlook
Slide 18: Financial Performance: FY 2017 Another Strong Year
18 F INANCIAL P ERFORMANCE Annual Revenue Annual Operating Income & Gross Margin $1,462 $1,636 $1,863 $2,027 $1,845 $1,767 $2,113 $0 $500 $1,000 $1,500 $2,000 $2,500 2012 2013 2014 2015 2016 2017 2018 Consensus ($ mils) $70 $103 $122 $180 $203 $131 $185 11.2% 13.2% 12.5% 15.0% 17.6% 14.8% 15.8% 0% 5
Slide 19: Key Financial Outlook
19 K EY F INANCIAL O UTLOOK 2017 FY Results 2018 FY Outlook Shipments Trailers Truck Bodies 55,050 Units 56,000 – 60,000 Units 22,000 – 24,000 Units Revenue $1.77B $2.05B – 2.15B 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 - $50M
Slide 20: Appendix
WABASH NATIONAL CORPORATION Appendix
Slide 21: Income Statement Summary 2011-2017
21 2011 2012 2013 2014 2015 2016 2017 Net sales 1,187,244$ 1,461,854$ 1,635,686$ 1,863,315$ 2,027,489$ 1,845,444$ 1,767,161$ Cost of sales 1,120,524 1,298,031 1,420,563 1,630,681 1,724,046 1,519,910 1,506,286 Gross profit 66,720$ 163,823$ 215,123$ 232,634$ 303,443$ 325,534$ 260,875$ % of sales 5.6%
Slide 22: Balance Sheet 2011-2017
22 2011 2012 2013 2014 2015 2016 2017 ASSETS Current assets Cash and cash equivalents 19,976$ 81,449$ 113,262$ 146,113$ 178,853$ 163,467$ 191,521$ Accounts receivable 52,219 96,590 120,358 135,206 152,824 153,634 146,836 Inventories 189,533 189,487 184,173 177,144 166,982 139,953 180,735 Deferred in
Slide 23: Cash Flow Statement 2011-2017
23 2011 2012 2013 2014 2015 2016 2017 Cash flows from operating activities Net income 15,042$ 105,631$ 46,529$ 60,930$ 104,289$ 119,433$ 111,422$ Adjustments to reconcile net income to net cash provided by operating activities Depreciation 12,636 14,975 16,550 16,951 16,739 16,830 18,012 Amortizatio
Slide 24: Reconciliation of Non-GAAP Measures
24 2011 2012 2013 2014 2015 2016 2017 Net income 15.0$ 105.6$ 46.5$ 60.9$ 104.3$ 119.4$ 111.4$ Income tax (benefit) expense 0.2 (57.1) 31.1 37.5 59.0 66.0 11.1 Interest expense 4.1 21.7 26.3 22.2 19.5 15.7 16.4 Depreciation and amortization 15.6 25.6 38.3 38.8 38.0 36.8 35.1 Stock-based compensation
Slide 25: Adjusted Earnings Per Share Reconciliation
25 $ Per Share $ Per Share $ Per Share $ Per Share $ Per Share $ Per Share Net Income 105,631$ 1.54$ 46,529$ 0.67$ 60,930$ 0.86$ 104,289$ 1.50$ 119,433$ 1.82$ 111,422$ 1.78$ Adjustments: Acquisition expenses and related charges 18,209 0.27 883 0.01 - - - - - - 15,012 0.24 Revaluation of net deferred
Slide 26: Potential Dilutive Impact of Senior Convertible Notes
26 Hypothetical Quarterly Average Share Price (NYSE: WNC) (1) Potential Incremental Shares for Diluted EPS (in 000s shares) (2) 11.00$ - 12.00$ 94 13.00$ 379 14.00$ 624 15.00$ 836 16.00$ 1,022 17.00$ 1,186 18.00$ 1,332 19.00$ 1,462 20.00$ 1,579 21.00$ 1,685 22.00$ 1,782 23.00$ 1,870 24.00$ 1,950 25.
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