Wabash National Corporation · NYSE:WNC
Wabash National — Q2 2019 Earnings Presentation
18 slides from Wabash National's earnings presentation, Jun 30, 2019
Slide 1: Wabash National Corporation 2019 Q2 Earnings Release
WABASH NATIONAL CORPORATION 2019 Q2 EARNING 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: Highlights of Quarter
HIGHLIGHTS OF QUARTER Strong ▪ All-time record quarterly revenue Performance ▪ Operating margin strongest in 2 years Continues in Q2 ▪ Wabash Management System unlocking margin enhancement opportunities Key Q2 ▪ Strong and stable backlog of $1.2B Financial ▪ Revenue of $626M at top end of quarterly
Slide 4: Q2 2019 Consolidated Financial Performance
Q2 2019 CONSOLIDATED FINANCIAL PERFORMANCE Actual Strong Customer Demand +2% YoY Sales Growth Operating Result Ahead of Expectations $0.56 Earnings Per Share 2Q18 Results Margins Show Year over Year Improvement 14.0% 13.9% Gross Margin Operating Income Growth $48M $46M Operating Income Operating Mar
Slide 5: Commercial Trailer Products
COMMERCIAL TRAILER PRODUCTS Revenue Operating Margin -0.4% -10 bps 5 5
Slide 6: Diversified Products Group
DIVERSIFIED PRODUCTS GROUP Revenue Operating Margin +3.1% +450 bps 6 6
Slide 7: Final Mile Products
FINAL MILE PRODUCTS Revenue Adjusted Operating +11.2% Margin¹ -150 bps 1 7 Q2 2018 FMP operating margin adjusted for acquisition expenses and related charges 7
Slide 8: Cash Generation
CASH GENERATION Q2 2019 YTD Q2 2018 YTD Net Income $45.7M $53.2M Operating Cash Flow $61.0M $40.5M Capital Expenditure $15.0M $11.1M Free Cash Flow $46.0M $29.4M Free Cash Flow Conversion1 101% 55% 1 Free cash flow conversion defined as free cash flow divided by net income 8 8
Slide 9: 2019 Guidance
2019 GUIDANCE Expected Trends Key Metrics ▪ CTP demand levels to remain solid through 2H 2019 Gross Margin EPS Range: $1.58-1.72 50 to 150 bps of ▪ Tank Trailer 2H 2019 market volumes to move more in line with Improvement vs 2018 Midpoint: $1.65 2H 2018 ▪ Truck Body market to continue secular growth
Slide 10: Appendix
APPENDIX a
Slide 11: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - dollars in thousands June 30, 2019 December 31, 2018 Assets Current assets: Cash and cash equivalents $ 140,155 $ 132,690 Accounts receivable, net 170,177 181,064 Inventories 264,567 184,404 Prepaid expenses and other 40,550 51,261 Total current asse
Slide 12: Condensed Consolidated Statements of Operations
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited - dollars in thousands Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net sales $ 626,053 612,690 $ 1,159,227 1,104,009 Cost of sales 538,403 527,375 1,002,887 954,576 Gross profit 87,650 85,315 156,340 149,433 Gene
Slide 13: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - dollars in thousands Six Months Ended June 30, 2019 2018 Cash flows from operating activities Net income $ 45,740 $ 53,174 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 10,957 10,330 Amortizat
Slide 14: Q2 Segment Information
Q2 SEGMENT INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Three Months Ended June 30, Trailer Products Products Products Eliminations Consolidated 2019 New trailers shipped 14,250 750 — — 15,000 Used trailers shipped — 25 — — 25 New trailers $ 385,842 $
Slide 15: 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 2019 New trailers shipped 26,650 1,450 — — 28,100 Used trailers shipped 50 50 — — 100 New trailers $ 711,
Slide 16: Reconciliation of Adjusted Segment and Operating Income
RECONCILIATION OF ADJUSTED SEGMENT AND OPERATING INCOME Unaudited - dollars in thousands Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Commercial Trailer Products Income from operations $ 39,918 $ 40,784 $ 66,239 $ 70,265 Diversified Products Income from operations 8,911
Slide 17: Reconciliation of Adjusted Net Income and Adjusted Earnings Per Share
RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE Unaudited - dollars in thousands Adjusted Net Income1: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income $ 30,960 $ 31,902 $ 45,740 $ 53,174 Adjustments: Facility transactions2 — (3,506) — (10,62
Slide 18: 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, 2019 2018 2019 2018 Net income $ 30,960 $ 31,902 $ 45,740 $ 53,174 Income tax expense 10,639 11,025 13,798 15,870 Interest expense 7,020 7,1