Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (May 2013)
40 slides from Wabash National's investor presentation, May 28, 2013
Slide 1: Wabash National Corporation Investor Update May 2013
WABASH NATIONAL CORPORATION Investor Update May 2013 Dick Giromini, President & CEO Mark Weber, SVP - CFO Jeff Taylor, VP Finance & IR
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: Company Background
3 Acquired assets of leading liquid tank and dry bulk trailer producer C OMPANY B ACKGROUND Acquired assets of leading aluminum flatbed producer Founded as a start - up IPO ( NYSE : WNC ) Achieved leading industry position Introduced the DuraPlate ® composite dry van trailer Record trailer productio
Slide 4: Wabash Segments
4 W ABASH S EGMENTS Wabash National Corporation Commercial Trailer Products 2012 Sales: $994M • Dry & Refrigerated Vans • Platform Trailers • Fleet Used Trailers Retail 2012 Sales: $157M • 18 Retail L ocations in U.S. • New & Used Trailer Sales • Parts & Service Tank Services Diversified Products 20
Slide 5: Geographic Footprint
5 G EOGRAPHIC F OOTPRINT Corporate HQ Manufacturing Locations Company - Owned Retail Locations Dealers / Service Centers
Slide 6: Commercial Trailer Products: Segment Profile
6 CTP Operating Income Up Nearly $50 Million Since 2010 Key Statistics Recent Financial Performance - CTP Examples of Key Customers ▪ Comprehensive trailer products portfolio ▪ 2012 New Trailer Shipments: 43,600 ▪ Core products: dry vans, refrigerated vans, platform trailers ▪ Brands: Wabash Nationa
Slide 7: Commercial Trailer Products
7 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 8: Industry Forecasts
8 I NDUSTRY F ORECASTS ▪ Divergence between industry forecasters has narrowed ▪ Strong demand above replacement levels forecast for next 5 years in all CTP segments ▪ CSA & CARB continue to drive demand Strong D emand Forecasted for the Next Five Years General Market Overview ACT Forecast by Segment
Slide 9: 2013 Outlook: Industry Forecast
9 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 ▪ HOS Rules (Hours of Service) ▪ 7 - day maximum driving time reduced from 82 to 70 hours ▪ Some customers expect a “5 % - 12%”
Slide 10: Commercial Trailer Products: Freight Trends
10 C OMMERCIAL T RAILER P RODUCTS 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 General freight 3.6% 1.2% Bulk freight 2.6% 0.9% Trucking T
Slide 11: Commercial Trailer Products: Long History of Innovation
11 C OMMERCIAL T RAILER P RODUCTS : L ONG H ISTORY OF I NNOVATION Legacy of Industry Leadership in Value - Added Innovation Sheet & Post Trailer • Commodity • Versatile • High maintenance FRP Trailer • FRP (Fiberglass Reinforced Plywood) • Added interior width • Difficult to repair 1985 Alum. Plate
Slide 12: Commercial Trailer Products: Customers
12 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 13: Commercial Trailer Products Highlights
13 C OMMERCIAL T RAILER P RODUCTS H IGHLIGHTS x Industry leader in van and platform trailer manufacturing x Best - in - class, technologically innovative products x Leading brands and long - standing customer relationships x Trucking recovery and aging fleet equipment fuels trailer demand x Mature p
Slide 14: Diversified Products Profile
14 Broad Product Portfolio Serving Diverse Markets Key Statistics Recent Financial Performance Key Brands ▪ Wabash Composites, Wabash Wood Products, and Walker Group ▪ Diverse portfolio of products and services ▪ Broad customer, geographic, and end market diversification ▪ Higher growth and higher m
Slide 15: Walker Group Profile
15 Focused on Diversified, Higher M argin G rowth. Key Statistics Diversified Products Proforma Revenue Key Customers ▪ #1 Manufacturer of Liquid T ank Trailers (3,000+ trailers shipped in 2012), A irplane R efuelers & Engineered P roducts ▪ High Gross Margin (>20%) and Stable, Solid Cash Generation
Slide 16: Walker Group: Industry Leadership
16 W ALKER G ROUP : I NDUSTRY L EADERSHIP Position Products Est. 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 American chemical market 64
Slide 17: Walker Group: Diversification
17 W ALKER G ROUP : D IVERSIFICATION 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% Asia, 5
Slide 18: Walker Group: New Innovation - Transportation Products
18 W ALKER G ROUP : N EW I NNOVATION – T RANSPORTATION P RODUCTS • Expanding the use of Lean Duplex tank trailers to include the most common corrosives, such as sulphuric acid. Industry Leader in Innovation / New Product Development Lean Duplex » First to Market with DOT Approved Lean Duplex » Impro
Slide 19: Walker Group: Growth - M&A Beall
19 Beall Acquisition Creates Broadest Tank Trailer Portfolio W ALKER G ROUP : G ROWTH - M&A B EALL Beall Aluminum Petroleum Tank Trailer (406) Beall Aluminum Dry Bulk Trailer (Pneumatic) Trailer Type Non - Code Code 406 Code 407 Code 407 Special Permit Food Grade Sanitary Code 412 High Pressure 338/
Slide 20: Wabash Composites Profile
20 Focused on Diversified, Higher M argin Growth. Key Statistics Diversified Products Proforma Revenue Key Customers - Examples ▪ Growing Product P ortfolio ▪ Key Products : composite panels, aerodynamic trailer skirts, portable storage containers, truck bodies walls ▪ Brands : DuraPlate, AeroSkirt,
Slide 21: Wabash Composites Product Platforms
21 W ABASH C OMPOSITES P RODUCT P LATFORMS - S TRATEGIC G ROWTH I NITIATIVES Constant Process of Developing New Products and Markets. New Composite Technologies COMPOSITE PANELS New Aero Devices AERODYNAMICS Shelters, Offices, & Trailers MOBILE SOLUTIONS Innovative Solutions CUSTOM SOLUTIONS
Slide 22: Wabash Composites - Industry Dynamics
22 W ABASH C OMPOSITES - I NDUSTRY D YNAMICS Demand Drivers • Forecasted growth in Truck Body market drives DuraPlate® panel sales growth. • Housing Starts support potential moving and storage growth and need for portable storage containers. • CARB (California Air Resource Board) compliance requirem
Slide 23: Diversified Products Highlights
23 x Industry leader in tank trailer and engineered products with the broadest portfolio x Leader in composite panel technology, solutions - driven product development strategy x Diversified platform serving a variety of attractive end markets x Low capital model leveraging existing intellect x Lead
Slide 24: Retail: Segment Profile
24 Brenner Tank Services Increases Geographic Footprint Key Statistics 2012 Recent Financial Performance 2012 Revenue Breakout R ETAIL : S EGMENT P ROFILE -2 -1 0 1 2 3 4 0 50 100 150 200 2010 2011 2012 Operating Income (M$) Revenue (M$) Revenue Op. Income ▪ Dealership model, selling new and used tr
Slide 25: Retail: Trailer Centers + Brenner Tank Services
25 R ETAIL : W ABASH N ATIONAL T RAILER C ENTERS + B RENNER T ANK S ERVICES Strategic Footprint Providing Service Nationally
Slide 26: Retail: New Markets - Tank Parts & Service
26 R ETAIL : N EW M ARKETS – T ANK P ARTS & S ERVICE Capture Synergy of Brenner Tank Service Expertise Key Drivers ▪ Leverage Combined Footprint to Capture Higher - Margin Tank Parts & Service ▪ Low CapEx Investment Required for Wabash National Trailer Centers ▪ Support Walker Brand Products Nationa
Slide 27: Retail Segment Highlights
27 x Strategic footprint providing national support x Platform which supports the broadest product range in the industry x Integrated with OEM to deliver best practices and innovation in the aftermarket x Value added reseller of new and used trailers & parts and service x Expansion into new markets
Slide 28: Financial Overview May 2013
WABASH NATIONAL CORPORATION Financial Overview May 2013
Slide 29: Financial Profile
29 338 640 1,187 1,462 324 200 500 800 1,100 1,400 1,700 2009 2010 2011 2012 Q1 2013 ($ millions) ($ millions) 27 5 119 39 (43) (60) (30) 0 30 60 90 120 150 2009 2010 2011 2012 Q1 2013 Notes: 1. See Appendix for reconciliation of non - GAAP financial information F INANCIAL P ROFILE Revenues 2012 Rev
Slide 30: Diversification Efforts Gaining Traction
30 Expand Commercial Trailer Products Margins Grow Diversified Products Top Line ▪ Diversified Products Segment is Gaining Critical Mass ▪ Commercial Trailer Products & Diversified Products Are Nearly Equal Contributors to Company Performance ▪ Retail Segment Provides Support to Both Segments & Capt
Slide 31: Capital Structure and Liquidity
31 Capital Structure and Liquidity Cost Effective Debt Structure • $150 Million ABL Revolving Facility – Sr. Secured, matures 5/2017, floating LIBOR pricing 1.75% - 2.25% • $150 Million Convertible Notes – Sr. Unsecured, matures 5/2018, semiannual interest payment of 3.375% • $300 Million Term Loan
Slide 32: Strong Operational Platforms Positioned for Future Growth
32 Strong Operational Platforms Positioned for Future Growth Wabash National Corporation Diversified Products Retail Commercial Trailer Products • Customer focused total cost of ownership through best in class product offerings • Lean manufacturing focus and productivity improvements • Enhanced prod
Slide 33: Long-Term Strategic Objectives
33 L ONG - T ERM S TRATEGIC O BJECTIVES Expectations 2011 2012 Long - term Revenue $1.2B $1.5B >$ 2.0B Diversified Products Revenue (1) $107M $356M > $600M Gross Margins 5.6% 11.0% > 13% EBITDA Margins 3.3% 8.1% > 10% Net Leverage 1.3x 3.1x < 2.0x Notes: (1) Diversified Products segment revenues pri
Slide 34: Investment Highlights
34 New Markets. New Innovation. New Growth. I NVESTMENT H IGHLIGHTS x Diversified manufacturer and industry leader in van and tank trailer production x Leading brands and longstanding relationships with blue - chip customer base x Best - in - class, technologically innovative products x Trucking rec
Slide 35: Appendix
WABASH NATIONAL CORPORATION Appendix
Slide 36: Consolidated Income Statement
36 C ONSOLIDATED I NCOME S TATEMENT ($ in thousands, except per share amounts) 2009 2010 2011 2012 Q1 2013 Net sales 337,840$ 640,372$ 1,187,244$ 1,461,854$ 324,229$ Cost of sales 360,750 612,289 1,120,524 1,298,031 282,043 Gross profit (22,910)$ 28,083$ 66,720$ 163,823$ 42,186$ % of sales -6.8% 4.4
Slide 37: Consolidated Balance Sheet
37 C ONSOLIDATED B ALANCE S HEET ($ in thousands) 2009 2010 2011 2012 Q1 2013 ASSETS Current assets Cash 1,108$ 21,200$ 19,976$ 81,449$ 58,633$ Accounts receivable 17,081 37,853 52,219 96,590 101,260 Inventories 51,801 110,850 189,533 189,487 237,013 Deferred income taxes - - - 42,330 40,755 Prepaid
Slide 38: Consolidated Cash Flows
38 C ONSOLIDATED C ASH F LOWS ($ in thousands) 2009 2010 2011 2012 Q1 2013 Cash flows from operating activities Net (loss) income (101,765)$ (141,760)$ 15,042$ 105,631$ 5,735$ Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities Depreciation 16,630 13,900
Slide 39: Reconciliation of Non-GAAP Measures
39 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) 2009 2010 2011 2012 Q1 2013 Net (loss) income (101.8)$ (141.8)$ 15.0$ 105.6$ 5.7$ Income tax (benefit) expense (3.0
Slide 40: Reconciliation of Non-GAAP Measures (trailing twelve months)
40 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 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net (loss) income (147.7)$ (162.4