Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (May 2015)
36 slides from Wabash National's investor presentation, May 27, 2015
Slide 1: Wabash National Corporation Investor Update May 2015
WABASH NATIONAL CORPORATION Investor Update May 2015
Slide 2: Safe Harbor Statement
2 This presentation contains certain forward - looking statements, as defined by the Private Securities Litigation Reform Act of 1995. All statements other than historical facts are forward - looking statements, including without limit, those regarding shipment outlook, Operating EBITDA, backlog, de
Slide 3: Strategic Segments
3 S TRATEGIC S EGMENTS Wabash National Corporation Commercial Trailer Products 2014 Sales: $ 1.3B • Dry & Refrigerated Vans • Platform Trailers • Fleet Used Trailers Diversified Products 2014 Sales: $466M • Tank Trailers • Truck - Mounted Tanks • Aircraft Refueling Equipment • Composite Panels & Pro
Slide 4: 2014 Segment Revenue and Product Mix
4 2014 S EGMENT R EVENUE AND P RODUCT M IX New Markets. New Innovation. New Growth. 2014 Consolidated Revenue: $1.86B
Slide 5: Leading Market Positions
5 L EADING M ARKET P OSITIONS DPG End Markets CTP End Markets DPG Market Positions #1 All liquid transportation systems in North America #1 Stainless steel liquid tank trailers in North America (chemical and food markets) #1 Aircraft refuelers worldwide* #1 Isolators and downflow booths worldwide *
Slide 6: Diversification Efforts Driving Results
6 2007 Higher Growth and Margin Profile, Less Cyclicality 2014 D IVERSIFICATION E FFORTS D RIVING R ESULTS Revenue Manufacturing Retail 14% 86% 24% Commercial Trailer Products Diversified Products Retail 66% 10% Operating Income Manufacturing Retail Diversified Products Commercial Trailer Products 3
Slide 7: Long-Term Growth Drivers
7 L ONG - T ERM G ROWTH D RIVERS ▪ Pricing discipline ▪ Operational efficiency / lean manufacturing ▪ Supply chain optimization Margin Expansion ▪ New end markets and geographies ▪ Product innovations / portfolio expansion ▪ Aftermarket p arts and s ervice capabilities Organic Growth ▪ Proven abilit
Slide 8: Segment Growth Initiatives
8 S EGMENT G ROWTH I NITIATIVES New Markets. New Innovation. New Growth. CTP DPG Retail ▪ Bonded Technology ▪ DuraPlate ® Nose ▪ Integrated Logistics ▪ Roof and Sidewall ▪ High Strength Steel Coupler ▪ MaxClearance ™ Door System ▪ Heavy Duty Truck Bodies ▪ First Mile/Last Mile Focus ▪ Cold Chain Dev
Slide 9: Transportation Sector Outlook
9 T RANSPORTATION S ECTOR O UTLOOK Strong demand above replacement levels ▪ Truck Tonnage at or near record levels ▪ Truck Loadings continue to rise ▪ Trucking Conditions outlook remains strong Positive Freight Trend and Trucking Conditions Trucking Indicators
Slide 10: Trailer Sector Outlook
10 ACT Forecast by Segment 2013 2014 2015 2016 2017 2018 2019 Dry Van 134,586 155,909 181,300 177,500 162,000 148,000 153,800 Refrigerated 35,879 38,616 43,000 39,000 37,500 38,000 40,000 Platform 22,122 25,749 32,000 31,000 27,500 24,000 23,000 Liquid Tanks 8,301 8,656 7,700 7,200 6,700 6,700 7,200
Slide 11: Trailer Demand Drivers
11 T RAILER D EMAND D RIVERS Strong demand above replacement levels Fleet Age and Regulations Driving Trailer D emand Fleet Equipment Dynamics ▪ Average age of equipment remains near record high ▪ 3 + years of significant underbuy (2008 - 2010) ▪ Improved access to financing ▪ Hours of Service (HOS)
Slide 12: Trailer Demand Drivers: Carrier Operating Environment
12 T RAILER D EMAND D RIVERS Fleets Benefitting from Tight Capacity, Freight Volumes ▪ Active truck utilization expected to stay high for several years due to regulatory impact ▪ Truckload rates elevated ▪ Fleet profitability near record levels Carrier Operating Environment
Slide 13: Commercial Trailer Products Intermodal Growth
13 C OMMERCIAL T RAILER P RODUCTS I NTERMODAL G ROWTH : M INIMAL I MPACT TO T RUCK F REIGHT Trucking Boosts Share of Total Tonnage to 71% by 2025 Overall Freight Trends • Total tonnage projected to increase from 14B tons in 2013 to 17.3B tons in 2025 • Total freight revenue projected to increase fro
Slide 14: Industry-Wide Trailer Order-to-Shipment Cycle
14 I NDUSTRY - W IDE T RAILER O RDER - TO - S HIPMENT C YCLE Order - to - Shipment Cycle Trends Show Distinct Seasonality Reflects Order - to - Shipment Cycles: 2010 - 2014 Source: ACT 0 10,000 20,000 30,000 40,000 50,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Net Orders 0 5,000 10,000 15,0
Slide 15: Market Demand Drivers
15 M ARKET D EMAND D RIVERS ▪ Projected growth in Truck Body market drives DuraPlate® panel sales growth ▪ CARB compliance requirements continue to drive demand for aerodynamic products ▪ Housing starts support potential moving and storage growth and need for portable storage containers
Slide 16: Segment Outlook: Diversified Products
16 S EGMENT O UTLOOK : D IVERSIFIED P RODUCTS ▪ Growing milk production supports demand for dairy silos, mixers and food - grade tank trailers ▪ Pharmaceutical R&D is expected to increase through 2018 ▪ Lower cost access to natural gas driving increased capital spending and output in the domestic ch
Slide 17: Segment Outlook: Diversified Products
17 S EGMENT O UTLOOK : D IVERSIFIED P RODUCTS ▪ World air passenger traffic is projected to steadily increase over the next 20 years ▪ World air cargo traffic is projected to more than double over the next 20 years RTK: Revenue Ton Kilometers (a single ton of goods that is transported for one kilome
Slide 18: Value Proposition
18 V ALUE P ROPOSITION New Markets. New Innovation. New Growth. Superior Product ▪ Leading producer of semi - trailers and liquid transportation systems for 14 of the past 21 years* ▪ Long history of innovation with over 200 patents ▪ Customer - focused solutions ▪ Products that revolutionize the tr
Slide 19: Long-Term Strategic Objectives
19 L ONG - T ERM S TRATEGIC O BJECTIVES Expectations 2011 2012 2013 2014 Stated Goals (3) Revenue $1.2B $1.5B $1.6B $1.9B > $ 2.0B Diversified Products Revenue (1) $63M $321M (2) $459M (2) $466M (2) > $600M Consolidated Gross Margins 5.6% 11.2% 13.2% 12.5% > 13% CTP Gross Margins 3.8% 7.1% 7.8% 8.1%
Slide 20: Financial Overview
WABASH NATIONAL CORPORATION Financial Overview
Slide 21: Financial Performance
21 $338 $640 $1,187 $1,462 $1,636 $1,863 $1,943 $0 $300 $600 $900 $1,200 $1,500 $1,800 $2,100 12/09 12/10 12/11 12/12 12/13 12/14 3/15 ($ millions) F INANCIAL P ERFORMANCE Trailing Twelve Month (TTM) Revenue FY 2014 Revenue and Operating Income Set New Records ($ millions) Significantly improved fin
Slide 22: Financial Performance: Operating EBITDA and Net Leverage
22 F INANCIAL P ERFORMANCE TTM Operating EBITDA at $178M and Net Leverage of 1.3x Net Leverage Ratio Improved top - line and margins lead to: ▪ Record level FY Operating EBITDA in 2014 ▪ Cash generation leading to lower net debt leverage and significantly improved liquidity ($43) $5 $39 $119 $150 $1
Slide 23: Financial Performance – Adjusted EPS Growth
23 F INANCIAL P ERFORMANCE – A DJUSTED EPS G ROWTH 2011 – 2015 Adjusted EPS CAGR is 71% a) 2011 Reported Non - GAAP EPS was $0.23. Adjusted EPS as shown of $ 0.14 has been tax effected @40% as the tax rate for 2011 was impacted by full valuation allowances on our NOLS. Adjustment made to enable comp
Slide 24: Appendix
WABASH NATIONAL CORPORATION Appendix
Slide 25: Segment Profile: Commercial Trailer Products
25 Best - in - Class , Technologically Innovative Products Financial Performance ▪ 2014 New Trailer Shipments: 53,550 ▪ Comprehensive portfolio: dry vans, refrigerated vans, platform trailers ▪ Leading brands and long - standing customer relationships ▪ Industry leader in van and platform trailer ma
Slide 26: Segment Profile: Diversified Products
26 Broadest Tank Trailer Portfolio in the Industry Financial Performance Key Brands ▪ Walker Group and Wabash Composites ▪ Diverse portfolio of products serving a variety of customers and attractive end markets ▪ Leading brands and long - standing relationships with blue - chip customer base ▪ Highe
Slide 27: Segment Profile: Retail
27 Company - Owned Retail Locations Strategic Footprint Providing National Support Financial Performance ▪ Dealership model, selling new and used trailers, aftermarket parts, and maintenance and repair services ▪ Integrated with OEM to deliver best practices and innovation in the aftermarket ▪ Expan
Slide 28: Key Customers
28 K EY C USTOMERS Large and Diverse Customer Profile Commercial Trailer Products Diversified Products Group
Slide 29: Consolidated End Markets
29 C ONSOLIDATED E ND M ARKETS Note: All information based on 2014 revenues New Markets. New Innovation. New Growth.
Slide 30: Consolidated Income Statement
30 C ONSOLIDATED I NCOME S TATEMENT New Markets. New Innovation. New Growth. ($ in thousands, except per share amounts) 2009 2010 2011 2012 2013 2014 Q1 2015 Net sales 337,840$ 640,372$ 1,187,244$ 1,461,854$ 1,635,686$ 1,863,315$ 437,597$ Cost of sales 360,750 612,289 1,120,524 1,298,031 1,420,563 1
Slide 31: Consolidated Balance Sheet
31 C ONSOLIDATED B ALANCE S HEET New Markets. New Innovation. New Growth. ($ in thousands) 2009 2010 2011 2012 2013 2014 Q1 2015 ASSETS Current assets Cash and cash equivalents 1,108$ 21,200$ 19,976$ 81,449$ 113,262$ 146,113$ 125,609$ Accounts receivable 17,081 37,853 52,219 96,590 120,358 135,206 1
Slide 32: Consolidated Cash Flows
32 C ONSOLIDATED C ASH F LOWS New Markets. New Innovation. New Growth. ($ in thousands) 2009 2010 2011 2012 2013 2014 Q1 2015 Cash flows from operating activities Net (loss) income (101,765)$ (141,760)$ 15,042$ 105,631$ 46,529$ 60,930$ 10,474$ Adjustments to reconcile net (loss) income to net cash (
Slide 33: Reconciliation of Non-GAAP Measures
33 R ECONCILIATION OF N ON - GAAP M EASURES New Markets. New Innovation. New Growth. ($ in millions) Note: This table reconciles annual net income (loss) for the periods presented to the non - GAAP measure of Operating EBITDA. Di fferences may exist in the calculation of Operating EBITDA due to roun
Slide 34: Reconciliation of Non-GAAP Measures
34 R ECONCILIATION OF N ON - GAAP M EASURES ($ in millions) Note: This table reconciles the trailing twelve month net income (loss) for the periods presented above to the non - GAAP measure of Operating EBITDA. Differences may exist in the calculation of Operating EBITDA due to rounding. New Markets
Slide 35: Reconciliation of Non-GAAP Measures
35 R ECONCILIATION OF N ON - GAAP M EASURES Note: This table reconciles annual net income for the periods presented to the non - GAAP measure of adjusted earnings and adjust ed earnings per share. Differences may exist in the calculation of adjusted earnings per share due to rounding. $ Per Share $
Slide 36: Potential Dilutive Impact of Senior Convertible Notes
36 Hypothetical Quarterly Average Share Price (NYSE: WNC) (1) Potential Incremental Shares for Diluted EPS (in 000s shares) (2) 11.50$ - 12.00$ 316 12.50$ 816 13.00$ 1,277 13.50$ 1,704 14.00$ 2,101 14.50$ 2,471 15.00$ 2,816 15.50$ 3,138 16.00$ 3,441 16.50$ 3,725 17.00$ 3,992 17.50$ 4,244 18.00$ 4,48