Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (May 2011)
27 slides from Wabash National's investor presentation, May 23, 2011
Slide 1: May 2011
May 2011 Dick Giromini, President & CEO Mark Weber, CFO
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMEN 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 materially f
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS ¥ Leading market position as #1 dry van semi-trailer manufacturer in North America ¥ Strong brand preference and longstanding relationships with blue-chip customer base Y Best-in-class, technologically innovative products N Trucking cycle recovery and aging fleet equipment fuel
Slide 4: Company History
COMPANY HISTORY 1985 - 2011 * Headquartered in Lafayette, IN * 4,200 Associates Acquired specific * 2011 Estimated Trailer Shipments: assets of bankrupt 45,000 - 47,000 Fruehauf Trailer Corp. Founded as Pa oo a start-up : Major industry Major industry Gained and held downturn downturn Acquired Trans
Slide 5: Leading North American Trailer Manufacturer
LEADING NORTH AMERICAN TRAILER MANUFACTURER Longstanding Market Share Leader °#1 in Total Trailer production for 17 of the past 23 years °#1 in Dry Van trailer production °#3 in Refrigerated Van trailer production ¢Top 3 in Platform trailer production Strong brand recognition and brand preference DU
Slide 6: Premier Carrier Relationships
PREMIER CARRIER RELATIONSHIPS Wabash National Customers 48% of Top 50 For-Hire Fl cae ° % of Top or-Hire Fleets " ¢ 32% of Top 100 For-Hire Fleets SAFEWAY oO 2 OY SIGHT VY FedEx. Ceamm Eitinn, XTRA Source: 2010 Transport Topics 100 Growing with the industry’s leading carriers ‘
Slide 7: Comprehensive Product Line
COMPREHENSIVE PRODUCT LINE WNC Shipments by Product Type Dry Freight Vans: 77% / Total Sheet & Post. Bimodal Vans 1% 3% Dump Trailers Platform. an Trailers --—__ 6% DuraPlate® Vans ° A7% a Refrigerated Vans: 15% / Total 12% Arcticlite® A 4 Refrigerated Vans 15% DuraPlate® HD-~ Specialty Equipment: V
Slide 8: Sales and Distribution
SALES AND DISTRIBUTION ‘i = outnee Dry and Refrigerated Vans ° Factory Direct Sales Force ect DA ° Independent Dealers: 28 onan ¢ Locations: 64 ¢ Sales People: 100+ Platform and Dump Trailers We ¢ Independent Dealers: 82 cavsomaa) ¢ Locations: 120 Angeien® ‘sn Atomic ed J vk coon Wabash National Tra
Slide 9: Long History of Innovation
ONG HISTORY OF INNOVATION ¢ Wabash National holds 60 patents — and growing ¢ “Voice of customer” drives new technology development * In 1996, the DuraPlate® dry van was introduced — the industry’s first composite trailer design. Since that time, we have produced over 400,000 DuraPlate® trailers Shee
Slide 10: Industry-Leading Innovation
INDUSTRY-LEADING INNOVATION Innovation Description 2009 TrustLock® Plus Proprietary door locking system with single lock mechanism 2009-2011 Bonding Technologies Truck Body Sidewalls, Trailer Sidewalls, Logistics 2011 Tire Hauler Proprietary solution for cost-effective transport of 13’ tires 2011 Tr
Slide 11: Attractive Point in the Trailer Cycle
TTRACTIVE POINT IN THE TRAILER E ¢ Previous three cycles lasted 58, 67, and 89 months ¢ The most recent cycle reached its low in Dec.'08, at month 89 ¢ Trailer industry is 29 months into a new cycle as of May 2011 U.S. Monthly Trailer Net Orders, 3-Month Moving Average Pe eee N.A. Units Cycle Lows.
Slide 12: Truck Tonnage Indicator
TRUCK TONNAGE INDICATOR ATA’s Truck Tonnage Index (TTI) 125 120 110 % Janot Jan “ Jan3 fo Sands fo Jans Jan06 fo Jano? Jan08 fmm Jan f= Jant0 ‘Source: American Trucking Associations M TTI up 1.9% M/M & up 6.5% Y/Y; overall trend positive »
Slide 13: Industry Outlook
INDUSTRY OUTLOOK ¢ Trailer demand is forecasted to grow to 265K — 280K in 2013 ¢ WNC is well-positioned to capitalize on the expected increase in dry van demand over the next several years Total Trailer Shipments: Forecast 2009 2010 2011 2012 2013 2014 2015 ACT 79,027 124,162 208,050 258,900 264,800
Slide 14: Outlook: Industry Forecast
11 OUTLOOK: INDUSTRY FORECAST US. Trailer Forecasts: Short-/Mid-Term Dema vers soo00 ‘Shipments (ACT) & Production (FTR) ° Age of equipment is at 8+ years, an _ all-time high 150000 ¢ Equipment age profile: 100.000 disproportionate number of aged sane | units in fleets @ I 2005 2005 2007 2008 2009 2
Slide 15: And Beyond: Potential Demand Drivers
11 AND BEYOND | Potential Demand Drivers ¢ CARB Regulations (California Air Resource Board) on emissions/fuel efficiency ¢ Proposed increase in GVWR (Gross Vehicle Weight Restriction) from 80,000 to 97,000 Ibs ° Proposed changes to HOS Rules (Hours of Service) from 11 to 10 hours ¢ Proposed requirem
Slide 16: DuraPlate Products: Continued Growth
DURAPLATE® PRODUCTS: CONTINUED GROWTH Revenue: Start Up $10M $24M $40-50M $70-90M DuraPlate® Composite Truck Body & Material Cargo Trailers Semi-Trailer Commercial Sc steel skins (LEGIT Thar never esis, = ake || - Ri" , HDPE Core DuraPlate AeroSkirt® Portable Storage *Pre-coated, galvanized steel sk
Slide 17: Diversification: Energy Sector
S: ENERGY SEC Frac Tank Agreement ¢ Entry into the Energy and Environmental Services Markets ¢ Leverage industrial expertise in welding, forming, fabrication, and assembly into products outside of our traditional trailer business ¢ Producing Frac Tanks on behalf of Sabre Manufacturing: 2,500 units o
Slide 18: Financials
FINANCIALS
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS Revenue Gross Margin 1,400 — 12% $1,103 1,200 8% 8% 1%. @ 1,000 $836 ov d Wl 7 ’ AY 5 = 800 4% 3% | E600 0% i] ~ 400 200 Ae 0 RT 2006 ©2007 +2008 2009 2010 1Q11 2006 2007 2008 2009 2010 1011 YTD Operating Income“) YTD Operating EBITDA Margin?) © gong $265 12% 20 - Pee 8% 5% 5% 4
Slide 20: Quarterly Financial Highlights
ARTERLY FINANCIAL HIGHLIGH Revenue $243 imi: 250 _ 242 Cpanel a & Productivity Initiatives g Lafayette Enhancements: = $78 $86-S88_$85__57g * Consolidatedsix lines to S three flexible, mix-model capable production lines * Consolidated 10 material warehouses into one 1908 = 3Q08- 1Q09 3Q09.ss 1010 3Q
Slide 21: Investment Highlights
INVESTMENT HIGHLIGHTS ¥ Leading market position as #1 dry van semi-trailer manufacturer in North America ¥ Strong brand preference and longstanding relationships with blue-chip customer base Y Best-in-class, technologically innovative products N Trucking cycle recovery and aging fleet equipment fuel
Slide 22: Appendix
APPENDIX
Slide 23: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT 2006 2007 2008 2009 2010 YTD Q12011 NET SALES $ 1312180 $1102 S44 § 926,213 $ 337840 $ 640,372 $ 21984 COST OF SALES 1,207,687 1010323 815,289 360,750 612289 205,483 Gross profit, 104,493 917A mg24 @2910) 28,083 16,501 % of Sdes 8.0% 83% 1% 6.3% 44% 1.4% GENERAL & ADMIN
Slide 24: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Assets CURRENT ASSETS Cash and cash equivalents Accounts receivable Inventories Defined tues Prepaid expenses and other Totalcunent assets PROPERTY, PLANT AND EQUIPMENT GOODWILL DEFERREDINCOME TAXES INTANGIBLES OTHER ASSETS Total assets Lishilifies and Sinckhalders" Equity
Slide 25: Consolidated Cash Flows
CONSOLIDATED CASH FLOWS 00s 007. 00s. 002. re YTD SrO1t Cash fbws fomeperting actrees Net ncame (bss) 5 9g 6785 asm aDIzes) § Gsm) § 3,97 ‘Adjismmente to ricomcik net income Goes)to met cash provided by (used in) operating actirties Depreciation ad motion 20,398 ger ager 19385 135 34s Nat bes (Gu) o
Slide 26: Reconciliation of Non-GAAP Measure
RECONCILIATION OF NON-GAAP MEASURE 2006 2007 2008 2009. 2010 ‘Net income loss) $ 94 § 63 $5) $$) Income tax(henefit) expense 69 a4 ican fen) on Increasein fir value of warant : e : 334 116 Interest expense 69 58 47 44 41 Depreciation and annrtization 206 195 15 19.6 169 Stoclchased compensation 40 4
Slide 27: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES (5 in millions) 2008. 2009 2010 2011 a2 2 @ @ 2 2 @ @ 2 2 @ @ a ‘Net oss) income S GS GDS GDS AIH $ GHS AHS CHS wo Ss aEHs GHS aMs 48 S$ 32 Income tax(bensfi) panes eo a9 a3 a" - oy 6H on . - 02) = Increase Decense) nf vale of want : : 7" ? - 2 40 mss a) Ge 3 Inte