Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (May 2002)
36 slides from Wabash National's investor presentation, May 31, 2002
Slide 1: Our Innovation Moves the World
Our Innovation Moves the World (r)
Slide 2: Cautionary Statement
Cautionary Statement 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: 1999 Domestic Freight Transportation Market
1999 Domestic Freight Transportation Market 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Truck 0.82 27.4 90 20.4 Rail 0.07 Air 0.05 Water 0.04 Pipeline 0.02 Truck 82% Rail 7% Air 5% Water 4% Pipeline 2% $562 Billion Data Source: Eno Transportation Foundation
Slide 4: Industry Status
Industry Status
Slide 5: Truck Transportation Status 2000-2001
Truck Transportation Status 2000-2001 Insurance cost increases Fuel cost spikes, high fuel costs relative to historical averages Declining asset values Limited Capital Economic recession - U.S. industrial output declines, significant ton-mile decreases "THE PERFECT STORM"
Slide 6: Freight Tonnage
Freight Tonnage Data Source: American Trucking Association, Inc. Data Source: American Trucking Association, Inc.
Slide 7: Trailer Industry Status
Trailer Industry Status 2001 Shipments down 48% vs. 2000 Sharpest decline in industry history Further industry consolidation Trailmobile, Dorsey, Monon (?) bankruptcies Great Dane - Strick capacity acquisition Wabash - Ft. Madison, IA and Scott Co., TN Closures Q-1-02 build annualized at 88,000 unit
Slide 8: Tractor/Trailer Backlogs 1990-2001
Tractor/Trailer Backlogs 1990-2001 1990-2001 1990-2001 Source: A.C.T. Research. Van trailers include dry van and reefers.
Slide 9: Trailer-to-Tractor Order Rates 1991-2001
Trailer-to-Tractor Order Rates 1991-2001 Source: A.C.T. Research. Figures are monthly. Trailers include all types of trailers and containers, while trucks are Class 8 HDD. This ratio is trailer and container orders to Class 8 net truck orders.
Slide 10: U.S. Trailer Industry Shipments 1991-2006
U.S. Trailer Industry Shipments 1991 - 2006 Data Source: ACT Publications 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 - F 2003 - F 2004 - F 2005 - F 2006 - F Total Trailers 179000 173000 164000 161000 161000 147677 120156 162881 185304 233189 279242 2029
Slide 11: Business Model
Business Model
Slide 12: Wabash National Business Model
Wabash National Business Model Strong Core Customers Proprietary Products Retail & Distribution Network
Slide 13: Truckload Market Consolidation
Truckload Market Consolidation 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Other 0.99 27.4 90 20.4 Top Ten Carriers 0.01 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Other 0.89 27.4 90 20.4 Top Ten Carriers 0.11 Other - 99% Top-10 Carriers - 1% 1980 2000 Other - 89% Top-10 Carriers - 11% Data Source: Eno Transportation Foun
Slide 14: Customers and Partners
[SE HUAT | gies Heatare? HOT est Bae oS PARTNERS Tr ple Crown
Slide 15: Patented Proprietary Products
Patented Proprietary Products DuraPlate(r) Trailer DuraPlate(r) Domestic Container RoadRailer(r) System Smart Trailer(tm) Systems
Slide 16: DuraPlate Trailer Production
DuraPlate(r) Trailer Production 1997 1998 1999 2000 2001 East 7288 17983 36649 36755 24782 West 15.1 29.5 52.5 55.5 78.2 In Units Percentage %
Slide 17: 1996 Truck Transportation Market
1996 Truck Transportation Market $230 Billion Source: Cass Information Systems, excludes local market. Wabash National excludes leasing and intermodal. 1997 Private Fleet 0.52 Full Truckload Carriers 0.3 Less than Truck 0.08 Package Carriers 0.1 Less-than-truckload Cariers (LTL) 0.09 Private Fleet (
Slide 18: Retail & Distribution Strategy
Retail & Distribution Strategy Combines largest retail network with largest fleet business Most recognized product brand names Higher margin opportunities (parts, service) Used trailer remarketing capacity Lease, rental, finance operations 2001 expansion - 10 Canadian Locations
Slide 19: Historical Retail Gross Margins
Historical Retail Gross Margins New Trailer Used Trailer Aftermarket Parts Service Rental Corporate Retail Margin 0.082 0.043 0.211 0.603 0.613 0.09 Factory Margin 0.1 0.06
Slide 20: Retail Locations
Retail Locations Retail Locations
Slide 21: Financial Summary
Financial Summary
Slide 22: Earnings by Year
5 Year Earnings 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 0.13 1.895 1.312 3.555 4.269 4.809 6.789 8.931 15.555 23.925 25.407 3.638 15.214 26.071 38.8 -6.7 -234 (in millions) $15.2 $26.0 $38.8 ($6.7) ($234.1)
Slide 23: 2001 Supplemental Items
2001 Supplemental Items Pre-tax loss before charges ($ 275,025) Supplemental Items Used trailer market value adjustments / losses $ 88,000 Scott County / Ft. Madison Mfg. Operations $ 40,500 Rental fleet $ 34,000 Deferred tax asset $ 15,000 Accounts receivable / Lease contingencies $ 12,500 Warranty
Slide 24: Performance Initiatives
Performance Initiatives Normalized Used Trailer Inventories Rationalized Manufacturing Capacity Reduced Manufacturing Costs Divested International Operations Restructured Debt Increased Liquidity Maintained Shareholder Value
Slide 25: Used Trailer Inventory
Used Trailer Inventory Wabash National Corporation Used Trailer Inventory
Slide 26: Used Trailer Sales History
Used Trailer Sales History Wabash National Corporation Used Trailer Sales & Margin History $12,000,000 20.0% $10,000,000 10.0% 0.0% $8,000,000 10.0% $6,000,000 -20.0% $4,000,000 -30.0% $2,000,000 40.0% 60.0% Tm Revenues = Margin
Slide 27: WNC 1st Quarter Results
WNC 1st Quarter Results ($ in Millions) Revenues 33% Decline 2001 2002 East -17.7 -14.6 2001 2002 East 242 162 Net Loss 17% Improvement $ $
Slide 28: Current WNC Capital Structure
Current WNC Capital Structure $125MM Revolver and & 72MM of senior notes refinanced into term loan maturing March 30, 2004 Remaining $120MM of senior notes maturing between 2004 and 2008 remain in place $$110MM A/R Securitization (On B/S) $75MM Synthetic Lease (On B/S)
Slide 29: Liquidity
Wabash National Corporation Liquidity Liquidity Liquidity
Slide 30: Capital Expenditures
5 Year Capital Expenditures 1997 1998 1999 2000 2001 20.1 31 68.1 60.3 5.5 (in millions) $20.1 $31.0 $68.1 $60.3 $5.5
Slide 31: Mission - Bill Greubel, President & CEO
Mission Bill Greubel President & CEO
Slide 32: Initial Observations
Initial Observations Brand, Technology & Market Leadership Entrepreneurial Business Structural Challenges Leadership & Skill-Set Issues Common Focus Resilient Motivated Work Force Strong Foundation To Build On As Cycle Is Poised For Recovery
Slide 33: Wabash National Business Objectives
Wabash National Business Objectives Hit the Numbers Operational Excellence Focus On The Customer Grow The Business Keep it Simple Focus on the Critical Few Get Every One Actively Engaged Execute!
Slide 34: Near Term Goals
Near Term Goals Build Leadership Team Focus On Controllables Cash Optimization Process and Cost Improvement (CI) Asset Sales Trade-In Policy SG&A Optimization Integrate and Optimize NATC Create Lean Manufacturing Capability Get Our House In Order Optimize Profitability As Cycle Turns
Slide 35: Closing Remarks
Closing Remarks Business On The Mend Mindful of Timing & Covenant Challenges Focus On Critical Issues Will Start Showing Incremental Improvement In Q3 Goal for Shareholders: Constant Quarterly Improvement Cash Productivity Top & Bottom Line Growth
Slide 36: Our Innovation Moves the World
Our Innovation Moves the World Wabash National Trucks