Wabash National Corporation · NYSE:WNC
Wabash National — Stephens Investment Conference 2021
25 slides from Wabash National's conference presentation, Dec 1, 2021
Slide 1: Stephens Investment Conference December 1, 2021
WABASH Stephens Investment Conference December 1, 2021
Slide 2: Forward-looking statements
2 2 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 future events. All statements contained in this p
Slide 3: Wabash – Changing How the World Reaches You: Key Messages
3 3 WABASH – CHANGING HOW THE WORLD REACHES YOU Key Messages Wabash is the leader in transportation solutions with a portfolio of equipment spanning from First to Final Mile. Refreshed vision, mission & purpose pair with organizational realignment to support strategy Focus on strategic initiat
Slide 4: Wabash at a Glance
4 4 WABASH AT A GLANCE (NYSE: WNC) 4 Leveraging the Industry’s Broadest Portfolio Across All Phases of Transportation 1985 Lafayette, IN ~$850M1 ~5,800 16 $1.8B 3.5% $104M Founded Headquarters Market-cap Global Employees Manufacturing Locations 2021F Revenue 2021F Adjusted Operating Margin² 2020 Fre
Slide 5: Refreshed Purpose, Vision, Mission
5 5 Purpose To change how the world reaches you Vision To be the innovation leader of engineered solutions for the transportation, logistics and distribution industries Mission To enable our customers to succeed with breakthrough ideas and solutions that help them move everything from first to final
Slide 6: New Customer-Centric Structure
6 6 New Customer-Centric Structure Collapses Silos to Surround Customer with Holistic Support Customer Operations R&D & Engineering Sales Customers • Streamlined commercial structure facilitates ease of interaction for purchasing across portfolio • Enhanced ability to innovate to support rapidly cha
Slide 7: Portfolio & Growth
7 7 PORTFOLIO & GROWTH Portfolio Trimming Complete Future Growth Focus Beall Tank Trailers Extract Technologies Garsite Aviation Refueling 2019 2020 thru 2022 Cold Chain eCommerce & Logistics Disruption Parts & Services • Expand share in markets driven by movement of goods through the temperature-co
Slide 8: Branding Update
8 8 BRANDING UPDATE Wabash National becomes…
Slide 9: Previous Structure, Drivers of Segment Change, New Structure
9 9 PREVIOUS STRUCTURE DRIVERS OF SEGMENT CHANGE NEW STRUCTURE Commercial Trailer Products Dry and Refrigerated Van Trailers, Platform Trailers, Aftermarket Parts and Service Diversified Products Group Tank Trailers and Truck-Mounted Tanks, Composite Panels and Products, Food and Beverage Equipment,
Slide 10: Market and Backlog Highlights
10 10 2019 2020 thru 2022 MARKET AND BACKLOG HIGHLIGHTS Robust Freight Conditions Create Strong Equipment Demand, Record WNC Backlog MARKET CONDITIONS Freight conditions remain robust Strong consumer, business demand combined with low inventories continue to support economy BACKLOG UPDATE Back
Slide 11: 2022 Outlook Highlights
11 11 2022 OUTLOOK HIGHLIGHTS • ≈$2.25 billion • Increase of 20%+¹ • ≈6.0 percent • Increase of 250 bps² • ≈$1.70 EPS • Increase of 175%³ EPSOperating MarginRevenue ¹Increase from 2021 Revenue Outlook. ²Increase from 2021 non-GAAP Operating Margin Outlook. 2021 Operating Margin includes an adjustmen
Slide 12: 2022 EPS Bridge
12 12 2022 EPS BRIDGE $0.62 $0.90 $0.60 $0.10 $0.52 $1.70 2021 Adjusted non- GAAP EPS Outlook* Increased Volume Enhanced Pricing Share Count & Interest Expense Fixed Overhead and SG&A 2022 EPS Outlook 2022 EPS Outlook Driven by Strong Run-Rate Production, Price/Cost Recovery, While Assuming No Impro
Slide 13: Strategic Capacity Update
13 13 Progress Update STRATEGIC CAPACITY UPDATE Dry Van Demand Evolution • Converting current refrigerated capacity to dry van capacity • Progress on-track for dry van production to begin January 2023 • Organizational restructuring to One Wabash commercial organization • Strengthened indirect channe
Slide 14: Extending Our Materials-Based Competitive Advantage
14 14 2020 thru 2022 EXTENDING OUR MATERIALS-BASED COMPETITIVE ADVANTAGE Our Innovative Products Provide Customers with Operating Efficiency and Reduced Environmental Impact MOLDED STRUCTURAL COMPOSITE (MSC) REFRIGERATED VAN • Transformative design features lighter-weight and improved thermal effici
Slide 15: Appendix
APPENDIX ert
Slide 16: Condensed Consolidated Balance Sheets
16 16 CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - dollars in thousands September 30, 2021 December 31, 2020 Assets Current assets: Cash and cash equivalents $ 49,374 $ 217,677 Accounts receivable, net 213,808 101,301 Inventories, net 259,635 163,750 Prepaid expenses and other 59,347 63,036 Tot
Slide 17: Condensed Consolidated Statements of Operations
17 17 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited - dollars in thousands Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net sales $ 482,566 $ 351,584 $ 1,323,991 $ 1,077,811 Cost of sales 431,521 308,390 1,170,172 963,553 Gross profit 51,045 43,194
Slide 18: Condensed Consolidated Statements of Cash Flows
18 18 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - dollars in thousands Nine Months Ended September 30, 2021 2020 Cash flows from operating activities Net income (loss) $ 26,477 $ (102,906) Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activiti
Slide 19: Q3 QTD Segment Information
19 19 Q3 QTD SEGMENT INFORMATION Wabash National Corporation Three Months Ended September 30, 2021 2020 Units Shipped New trailers 12,455 8,485 New truck bodies 3,780 3,600 Used trailers 15 140 Unaudited - dollars in thousands Three Months Ended September 30, Transportation Solutions Parts & Service
Slide 20: Q3 YTD Segment Information
20 20 Q3 YTD SEGMENT INFORMATION Wabash National Corporation Nine Months Ended September 30, 2021 2020 Units Shipped New trailers 33,710 26,030 New truck bodies 13,330 10,130 Used trailers 70 430 Unaudited - dollars in thousands Nine Months Ended September 30, Transportation Solutions Parts & Servic
Slide 21: Reconciliation of Adjusted Segment and Operating Income
21 21 RECONCILIATION OF ADJUSTED SEGMENT AND OPERATING INCOME1 Unaudited - dollars in thousands Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Transportation Solutions Income (loss) from operations $ 25,970 $ 13,522 $ 69,492 $ (43,098) Adjustments: Impairment —
Slide 22: Reconciliation of Adjusted Net Income and Adjusted EPS
22 22 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, 2021 2020 2021 2020 Net income (loss) $ 11,008 $ 3,887 $ 26,477 $ (102,906) Adjustments: Debt transactio
Slide 23: Reconciliation of Operating EBITDA and Free Cash Flow
23 23 RECONCILIATION OF OPERATING EBITDA AND FREE CASH FLOW Unaudited - dollars in thousands Operating EBITDA1: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income (loss) $ 11,008 $ 3,887 $ 26,477 $ (102,906) Income tax expense (benefit) 1,640 (1,285) 7,45
Slide 24: Reconciliation of Adjusted Segment EBITDA and Margin
24 24 RECONCILIATION OF ADJUSTED SEGMENT EBITDA1 AND ADJUSTED SEGMENT EBITDA MARGIN1 Unaudited - dollars in thousands Transportation Solutions Parts & Service Three Months Ended September 30, 2021 2021 2020 2021 2020 Income from operations $ 25,970 $ 13,522 $ 4,148 $ 5,878 Depreciation and amortizat
Slide 25: Transportation Solutions and Parts & Service Segments - Selected Data
25 25 TRANSPORTATION SOLUTIONS AND PARTS & SERVICE SEGMENTS - SELECTED DATA 1 Adjusted operating income (loss), a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) under U.S. GAAP, but that m
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