Wabash National Corporation · NYSE:WNC
Wabash National — Q3 2019 Earnings Presentation
18 slides from Wabash National's earnings presentation, Sep 30, 2019
Slide 1: Wabash National Corporation 2019 Q3 Earnings Release
WABASH NATIONAL CORPORATION 2019 Q3 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 ▪ Record third quarter revenue Performance ▪ Substantial margin enhancement Continues in Q3 ▪ Wabash Management System unlocking margin enhancement opportunities Key Q3 ▪ Backlog of $800M, early in order season Financial ▪ Revenue of $581M, growth of 5.0% Results ▪ Opera
Slide 4: Q3 2019 Consolidated Financial Performance
Q3 2019 CONSOLIDATED FINANCIAL PERFORMANCE Actual Sales Higher than Year-Ago Quarter +5% YoY Sales Growth Q3 EPS Strength Allows Raise to Full Year Outlook $0.46 Earnings Per Share 3Q18 Results Gross Margin Shows Considerable YoY Improvement 13.4% 11.8% Gross Margin Operating Income Grew 34% $38M $2
Slide 5: Commercial Trailer Products
COMMERCIAL TRAILER PRODUCTS Revenue Operating Margin +3.3% +80 bps 9.6% 8.8% $380.3 $368.3 Q3 2018 Q3 2019 Q3 2018 Q3 2019 5 5
Slide 6: Diversified Products Group
DIVERSIFIED PRODUCTS GROUP Revenue Adjusted Operating (9.0)% Margin1 +220 bps $102.4 $93.2 7.7% 5.5% Q3 2018 Q3 2019 Q3 2018 Q3 2019 1 6 Q3 2018 DPG operating income adjusted for non-cash asset impairment charge 6
Slide 7: Final Mile Products
FINAL MILE PRODUCTS Revenue Operating Margin +30.4% +580 bps $113.5 4.1% $87.0 (1.7)% Q3 2018 Q3 2019 Q3 2018 Q3 2019 7 7
Slide 8: Cash Generation
CASH GENERATION Q3 2019 YTD Q3 2018 YTD Net Income $71.2M $57.8M Operating Cash Flow $76.2M $56.7M Capital Expenditure $22.2M $20.3M Free Cash Flow $54.0M $36.3M Free Cash Flow Conversion1 76% 63% 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 2019 Gross Margin EPS Range: $1.64-1.70 50 to 150 bps of ▪ Tank Trailer 2H 2019 market volumes to move more in line with Improvement vs 2018 Midpoint: $1.67 2H 2018 ▪ Truck Body market to continue secular growth tr
Slide 10: Appendix
APPENDIX a
Slide 11: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - dollars in thousands September 30, 2019 December 31, 2018 Assets Current assets: Cash and cash equivalents $ 120,873 $ 132,690 Accounts receivable, net 171,393 181,064 Inventories 274,273 184,404 Prepaid expenses and other 54,847 51,261 Total current
Slide 12: Condensed Consolidated Statements of Operations
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited - dollars in thousands Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net sales $ 580,908 $ 553,073 $ 1,740,135 $ 1,657,082 Cost of sales 503,173 487,911 1,506,060 1,442,487 Gross profit 77,735 65,162 234
Slide 13: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - dollars in thousands Nine Months Ended September 30, 2019 2018 Cash flows from operating activities Net income $ 71,200 $ 57,837 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 16,258 15,701 Amo
Slide 14: Q3 Segment Information
Q3 SEGMENT INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Three Months Ended September 30, Trailer Products Products Products Eliminations Consolidated 2019 New trailers shipped 13,700 750 — — 14,450 Used trailers shipped 25 10 — — 35 New trailers $ 366,
Slide 15: Q3 YTD Segment Information
Q3 YTD SEGMENT INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Nine Months Ended September 30, Trailer Products Products Products Eliminations Consolidated 2019 New trailers shipped 40,350 2,200 — — 42,550 Used trailers shipped 50 60 — — 110 New trailers
Slide 16: Reconciliation of Adjusted Segment and Operating Income
RECONCILIATION OF ADJUSTED SEGMENT AND OPERATING INCOME Three Months Ended Nine Months Ended Unaudited - dollars in thousands September 30, September 30, 2019 2018 2019 2018 Commercial Trailer Products Income from operations $ 36,503 $ 32,453 $ 102,742 $ 102,718 Diversified Products Income from oper
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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income $ 25,460 $ 4,664 $ 71,200 $ 57,837 Adjustments: Facility transactions2 — (150)
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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income $ 25,460 $ 4,664 $ 71,200 $ 57,837 Income tax expense 7,429 5,338 21,227 21,209 Interest expense 6