Wabash National Corporation · NYSE:WNC
Wabash National — BB&T 21st Annual Transportation Services Conference (February 2006)
21 slides from Wabash National's conference presentation, Feb 15, 2006
Slide 1: BB&T 21st Annual Transportation Services Conference
(r) BB&T 21st Annual Transportation Services Conference - February 15, 2006 William P. Greubel, CEO Robert J. Smith, Sr. VP & CFO
Slide 2: Forward-Looking Statements
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 from those implied by
Slide 3: Company Overview
Founded as start-up in 1985 Rapid sales growth throughout 1990s Leading industry position since 1994 Annual trailer production: 56,000 2005 (1 plant @ 16/5) ~61,000 2006 estimate (1 plant @ 16/5) ~70,000 peak in 1999 (3 plants @ 24/7) Dramatic turnaround in operating margins Strong balance sheet Wab
Slide 4: Wabash Today: Well-Positioned for Sustained Growth
Wabash Today: Well-Positioned for Sustained Growth Manufacturing turnaround completed 2005 operational issues behind us Branch operations turnaround complete Well-positioned to capture top-line growth & bottom-line profitability Market leadership Strong brand recognition "Best-in-class" technology B
Slide 5: Recognized Leader in Trailer Industry
Well-Positioned for Sustained Growth: Recognized Leader in Trailer Industry Market leadership No. 1 in van trailers (29% market share in 2005) No. 2 in total trailers (20% market share in 2005) Number 1 or 2 in each of the last 10 years Most well-known brands in the industry
Slide 6: Comprehensive Product Offering & Innovations
Well-Positioned for Sustained Growth: Comprehensive Product Offering & Innovations Product line: Dry Vans Pups Refrigerated Flatbeds Intermodal Innovations: LED Mini- Marker EZ-7(r) Plug WP Axle DuraPlate Door(r) SolarGuard Roof(r)
Slide 7: Leader in Technological Innovation - DuraPlate
Proprietary composite trailers offer several advantages vs. standardized equipment Longer trailer life Low maintenance cost Increased durability Enhanced trade in values Well-Positioned for Sustained Growth: Leader in Technological Innovation - DuraPlate(r) DuraPlate(r) Volume % of Total Units Signi
Slide 8: Solid, Long-Standing Customer Relationships
Well-Positioned for Sustained Growth: Solid, Long-Standing Customer Relationships
Slide 9: "Mid-Market" - Proven Growth Engine
Well-Positioned for Sustained Growth: "Mid-Market" - Proven Growth Engine Non-Partner Partner East 0.39 0.61 Others Top 10 Carriers Mid-Market East 0.38 0.11 0.52 2000 Top 10 Carriers: 11% (Historic focus) Other: 38% Mid-market: 52% Current Focus Non-Partner Accounts Partner Accounts Non-Partner Par
Slide 10: No matter what your fleet size...
‘No matter what your fleet size. .. (DURAPLATE]
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Slide 12: Industry Outlook: Freight Tonnage Growth
Industry Outlook: Freight Tonnage Growth ATA's Truck Tonnage Index (Seasonally Adjusted; 2000=100) Truck Tonnage 1/1/2000 107 2/1/2000 105.6 3/1/2000 98.8 4/1/2000 97.4 5/1/2000 99 6/1/2000 100 7/1/2000 98.4 8/1/2000 99.9 9/1/2000 98.2 10/1/2000 98.9 11/1/2000 99.1 12/1/2000 98 1/1/2001 99.4 2/1/200
Slide 13: Industry Outlook: Wabash Net Orders Trend Upward
1/1/2003 4/1/2003 7/1/2003 10/1/2003 1/1/2004 4/1/2004 7/1/2004 10/4/2005 1/1/2005 4/1/2005 7/1/2005 10/1/2005 1/1/2006 Industry 43.1 48.6 47.3 42.1 81.5 64.6 57.7 55.6 78.8 64.4 48.4 50 81 WNC 10.1 7.2 10 7.1 17.1 10.4 11 12.6 14 23.4 10 8.9 16 Industry Outlook: Wabash Net Orders Trend Upward Units
Slide 14: Industry Outlook: Wabash Current Order Dynamics
Industry Outlook: Wabash Current Order Dynamics ASP ^ Flat Raw material and component pricing - mixed Aluminum ^ - reopening backlog Steel ^ ^ Tires ^ - surcharge Class 8 capex. Smaller mid sized fleets indecision Core / large fleets in or finalizing 2006 requirements Recent survey showed fleets wou
Slide 15: Industry Outlook: Positive Industry Momentum
1999 2000 2001 2002 2003 2004 2005 2006E 2007E 2008E 2009E 2010E Class 8 Trucks 280722 206555 118682 148236 141429 216521 272226 274861 160411 282673 260862 160000 Total Trailers 318788 275223 140100 142658 183162 235953 253200 259700 259400 269400 257200 280800 Industry Outlook: Positive Industry M
Slide 16: Van Trailer Forecast and Wabash Market Share
Industry Outlook: Van Trailer Forecast and Wabash Market Share Middle market initiative driving increased share in a growing market Wait until DuraPlate(r) replacement kicks in Source: Van projections based on ACT Research Industry Production (Units) Trailer Replacement Dry Vans WNC Market Share Ree
Slide 17: Financial Highlights
Financial Highlights ($ in millions) 2003* 2004 2005 Sales $829 $1,041 $1,214 Gross Profit $ 67 $ 126 $ 135 % Margin 8% 12% 11% EBITDA $ 38 $ 89 $ 96 % Margin 5% 9% 8% EBIT $ 17 $ 70 $ 80 % Margin 2% 7% 7% * Note pro forma for effect of asset sale and refinancing Focus on profitability Capex program
Slide 18: Financial Highlights
Financial Highlights * Note pro forma for effect of asset sale and refinancing High cash flow generation Strong balance sheet with no bank debt ($ in millions) 2003* 2004 2005 EBIT $ 17 $ 70 $ 80 D&A $ 21 $ 19 $ 16 Capex $ 7 $ 15 $ 31 EBITDA - Capex $ 31 $ 74 $ 65 Cash $ 13 $ 42 $ 67 Debt (Inc. Conv
Slide 19: Multiple Earnings Growth Catalysts
Multiple Earnings Growth Catalysts Improving / lengthening cycle Share gain / mid-market DuraPlate(r) and reefer growth Continuous improvement - labor, materials & line rate Automated assembly lines Supply Chain - alternative sourcing New ERP system Component rationalization Product design standardi
Slide 20: Structural Margin Improvement
Structural Margin Improvement Achieving peak margins at only 75% of peak volumes despite commodity price headwinds Source: ACT Research and WNC estimates Automation / share growth / material sourcing Prior Peak 1999 2005 Future Industry Build 306 K 254K 275 K - 290 K Wabash Build 70 K 52K 65 K - 75
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