Wabash National Corporation · NYSE:WNC
Wabash National — Q2 2021 Earnings Presentation
21 slides from Wabash National's earnings presentation, Jul 28, 2021
Slide 1: Wabash National Corporation 2021 Q2 Earnings Release
WABASH NATIONAL CORPORATION 2021 Q2 EARNINGS RELEASE
Slide 2: Safe Harbor Statement & Non-GAAP Financial Measures
SAFE HARBOR STATEMENT & NON-GAAP FINANCIAL MEASURES This presentation contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements convey Wabash National Corporation's (the "Company") current expectations or forecasts of f
Slide 3: CEO Highlights
CEO HIGHLIGHTS ▪ Pleased with results for the quarter Q2 2021 Perspective ▪ Wabash navigating well through a difficult manufacturing environment ▪ Q2 EPS above our expectations ▪ New organizational structure increasing collaboration and coordination Org Structure & Strategy ▪ Extract Technology dive
Slide 4: Strategic Capacity Update
Strategic Capacity Update • Demand frequently exceeded physical capacity Past State • Overtime and weekend work required from workforce • Unable to fully satisfy customer requirements Demand • Long-term trend of trailer demand growth as carriers use assets to maximize driver time Evolution • Strengt
Slide 5: Q2 2021 Consolidated Financial Performance
Q2 2021 CONSOLIDATED FINANCIAL PERFORMANCE 2Q21 Results 2Q20 Results Revenue grows as operations ramp $449M $339M Net Sales Net Sales New Trailer Shipments increase 38% YoY 11,590 8,400 New Trailer Shipments New Trailer Shipments Gross Margin shows year over year expansion 12.4% 10.1% Gross Margin G
Slide 6: Commercial Trailer Products
COMMERCIAL TRAILER PRODUCTS Revenue Operating Margin +28% +290 bps 6 6
Slide 7: Diversified Products Group
DIVERSIFIED PRODUCTS GROUP Revenue Adjusted Operating +20% Margin* +170 bps *Q2 2021 operating margin reflects an adjustment for the gain on the divestiture of Extract Technology. A reconciliation of adjusted operating income to operating income is included in the appendix to this presentation. 7 7
Slide 8: Final Mile Products
FINAL MILE PRODUCTS Revenue Operating Margin +59% +890 bps 8 8
Slide 9: Cash Flow, Balance Sheet & Capital Allocation Summary
Cash Flow, Balance Sheet & Capital Allocation Summary Q2 Cash Generation Balance Sheet • $9.3M Operating Cash • $136M Cash* • $6.9M Capital Expenditure • $168M Revolver • $2.4M Free Cash Flow • $304M Total Liquidity Capital Allocation Q2 2021 Moving Forward • $30M Debt Reduction • Capex • $22M Share
Slide 10: 2021 Guidance
2021 GUIDANCE Key Metrics Sales Operating Margin $1.9B-$2.0B 3.65% to 4.15% Midpoint: $1.95B Midpoint: 3.9% Other EPS New Trailer Shipments: 47k-49k SG&A: $118-122M Range: $0.67-0.77 Intangibles Amortization: ~$24M Interest Expense: ~$24M Midpoint: $0.72 CapEx: $55-60M Tax Rate: 27-28% 10 10
Slide 11: Appendix
APPENDIX a al
Slide 12: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - dollars in thousands June 30, 2021 December 31, 2020 Assets Current assets: Cash and cash equivalents $ 134,375 $ 217,677 Accounts receivable, net 121,390 101,301 Inventories, net 252,550 163,750 Prepaid expenses and other 79,669 63,036 Total current
Slide 13: Condensed Consolidated Statements of Operations
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited - dollars in thousands Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net sales $ 449,422 $ 339,153 $ 841,425 $ 726,227 Cost of sales 393,814 304,832 738,651 655,163 Gross profit 55,608 34,321 102,774 71,064 General
Slide 14: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - dollars in thousands Six Months Ended June 30, 2021 2020 Cash flows from operating activities Net income (loss) $ 15,469 $ (106,793) Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities Depreciat
Slide 15: Q2 QTD Segment Information
Q2 QTD SEGMENT INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Three Months Ended June 30, Trailer Products Products Products Eliminations Consolidated 2021 New trailers shipped 11,090 500 — — 11,590 Used trailers shipped — 15 — — 15 New trailers $ 287,74
Slide 16: Q2 YTD Segment Information
Q2 YTD SEGMENT INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Six Months Ended June 30, Trailer Products Products Products Eliminations Consolidated 2021 New trailers shipped 20,340 920 — — 21,260 Used trailers shipped 15 40 — — 55 New trailers $ 526,406
Slide 17: Reconciliation of Adjusted Segment and Operating Income
RECONCILIATION OF ADJUSTED SEGMENT AND OPERATING INCOME1 Unaudited - dollars in thousands Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Commercial Trailer Products Income from operations $ 32,299 $ 18,599 $ 53,164 $ 34,470 Adjustments: Impairment — — — 377 Adjusted operat
Slide 18: Reconciliation of Adjusted Net Income and Adjusted Earnings Per Share
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED EARNINGS PER SHARE Unaudited - dollars in thousands Adjusted Net Income (Loss)1: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income (loss) $ 12,252 $ (146) $ 15,469 $ (106,793) Adjustments: Loss on debt extin
Slide 19: Reconciliation of Operating EBITDA and Free Cash Flow
RECONCILIATION OF OPERATING EBITDA AND FREE CASH FLOW Unaudited - dollars in thousands Operating EBITDA1: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income (loss) $ 12,252 $ (146) $ 15,469 $ (106,793) Income tax expense (benefit) 3,985 548 5,819 (9,013) Interest ex
Slide 20: Reconciliation of Adjusted Segment EBITDA and Margin
RECONCILIATION OF ADJUSTED SEGMENT EBITDA1 AND ADJUSTED SEGMENT EBITDA MARGIN1 Unaudited - dollars in thousands Commercial Trailer Products Diversified Products Final Mile Products Three Months Ended June 30, 2021 2021 2020 2021 2020 2021 2020 Income (loss) from operations $ 32,299 $ 18,599 $ 5,824
Slide 21: Reconciliation of Adjusted Segment EBITDA and Margin
RECONCILIATION OF ADJUSTED SEGMENT EBITDA1 AND ADJUSTED SEGMENT EBITDA MARGIN1 Unaudited - dollars in thousands Commercial Trailer Products Diversified Products Final Mile Products Three Months Ended June 30, 2021 2021 2020 2021 2020 2021 2020 Income (loss) from operations $ 32,299 $ 18,599 $ 5,824