Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (November 2002)
36 slides from Wabash National's investor presentation, Nov 12, 2002
Slide 1: Car Innovation Moves the World
® Car Innovation Moves the World”
Slide 2: Cautionary Statement
Cautionary Statement 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 f
Slide 3: Initial Assessment
Initial Assessment WNC Strength Lies In Customer Base, Products and Technology WNC Created These Issues and We Can Fix Them Don't Judge A Book By Its Cover Totally Aligned Supportive Board Of Directors Take Control.......Focus Only On Critical Issues
Slide 4: Goals
Goals Achieve The Numbers! Operational Excellence! Focus On Customer! Grow The Business! "DO IT NOW" KEEP IT SIMPLE
Slide 5: Critical Issues
Critical Issues Optimize & Generate Cash Continuous Improvement Schedule Attainment & Capacity Product Standardization Quality Branch Integration & Optimization Safety Operational Excellence & Financial Strength
Slide 6: Overview
Overview
Slide 7: Company History
Company History 1985 - Company founded 1991 - Purchased RoadRailer(r) technology and related patents 1991 - Initial Public Offering on NYSE (symbol WNC) 1997 - Acquired Fruehauf(r) assets 1997 - Introduced DuraPlate(r) trailer 2000 - Introduced Smart Trailer(tm) electronics suite 2001 - Acquired Can
Slide 8: Domestic Freight Transportation Market
Domestic Freight Transportation Market 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Truck 0.865 27.4 90 20.4 Rail 0.057 Rail Intermodal 0.01 Air 0.021 Water 0.014 Pipeline 0.032 Truck 86.5% Rail 5.7% Rail Intermodal 1.0% Air 2.1% Water 1.4% Pipeline 3.2% 1999 $562 Billion
Slide 9: Trucking Industry
Trucking Industry Insurance cost increases Fuel cost spikes, high fuel costs relative to historical averages Declining asset values Limited capital Economic recession - U.S. industrial output declines, significant ton-mile decreases Consolidation "THE PERFECT STORM"
Slide 10: Freight Tonnage
Freight Tonnage Data Source: American Trucking Association, Inc. Data Source: American Trucking Association, Inc.
Slide 11: Trailer Industry
Trailer Industry 2001 Shipments down 48% vs. 2000 Sharpest decline in industry history Further industry consolidation Trailmobile, Dorsey, Monon bankruptcies Great Dane - Strick capacity acquisition Wabash - Ft. Madison, IA and Scott Co., TN Closures Q-1-02 Build Rate annualized at 88,000, Q- 2-02 i
Slide 12: U.S. Trailer Industry Shipments 1991 - 2006
U.S. Trailer Industry Shipments 1991 - 2006 Data Source: ACT Publications 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 - F 2003 - F 2004 - F 2005 - F 2006 - F Total Trailers 179000 173000 164000 161000 161000 147677 120156 162881 185304 233189 279242 2029
Slide 13: Business Model
Business Model
Slide 14: Wabash National Business Model
Wabash National Business Model Strong Core Customers Proprietary Products Retail & Distribution Network
Slide 15: Truckload Market Consolidation
Truckload Market Consolidation 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Other 0.99 27.4 90 20.4 Top Ten Carriers 0.01 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Other 0.89 27.4 90 20.4 Top Ten Carriers 0.11 Other - 99% Top-10 Carriers - 1% 1980 2000 Other - 89% Top-10 Carriers - 11% Data Source: Eno Transportation Foun
Slide 16: Core customer logos
sommmenmenensoremenecl SCHNEIDER. =a: po AIONAL | | SPRCAUEED CARRER SP nUNT U.S. XPRESS ENTERPRISES, INC. nd ele ped eames
Slide 17: Patented Proprietary Products
Patented Proprietary Products DuraPlate(r) Trailer DuraPlate(r) Domestic Container RoadRailer(r) System Smart Trailer(tm) Systems
Slide 18: DuraPlate Trailer Production
DuraPlate(r) Trailer Production 1997 1998 1999 2000 2001 2002 YTD East 7288 17983 36649 36755 24782 11448 West 15.1 29.5 52.5 55.5 78.2 82.4 In Units Percentage %
Slide 19: 1996 Truck Transportation Market
1996 Truck Transportation Market $230 Billion Source: Cass Information Systems, excludes local market. Wabash National excludes leasing and intermodal. 1997 Private Fleet 0.52 Full Truckload Carriers 0.3 Less than Truck 0.08 Package Carriers 0.1 Less-than-truckload Carriers (LTL) 0.09 Private Fleet
Slide 20: Retail & Distribution Strategy
Retail & Distribution Strategy Combines largest retail network with largest fleet business Most recognized product brand names Higher margin opportunities (parts, service) Used trailer remarketing capacity Leasing and Rental 2001 expansion - 10 Canadian Locations
Slide 21: Market Share of Existing Trailers
Market Share of Existing Trailers Total Great Dane 0.1 Stoughton 0.07 Strick 0.01 Trailmobile 0.05 Utility 0.06 Wabash 0.42 Other 0.28 % of Units Owned (source: Merrill Lynch Survey of 240 Trucking Companies)
Slide 22: Market Share of Planned 2000 Purchases
Market Share of Planned 2000 Purchases Great Dane Stoughton Strick Trailmobile Utility Wabash Other 7% 3% 0% 6% 3% 74% 7% 4% 28% 0% 4% 12% 17% 35% 29% 6% 0% 26% 5% 4% 30% 10% 21% 1% 21% 21% 3% 24% 4% 0% 0% 2% 1% 89% 3% 7% 3% 0% 4% 3% 79% 5% 13% 0% 3% 25% 3% 1% 57% Total 1-10 Trucks 11-50 Trucks 51-1
Slide 23: Performance Initiatives
Performance Initiatives Change in Management Rationalized Manufacturing Capacity Normalized Used Trailer Inventories Reduced Manufacturing Costs Divested International Operations Refinanced & Restructured Debt Increased Liquidity
Slide 24: YTD Results - 6/30
YTD Results - 6/30 (in millions) Revenues 18% Decline 2001 2002 East -46 -14.2 2001 2002 East 454.8 372.2 Normalized Loss 69% Improvement $ $
Slide 25: Normalized Results — 6/30
Normalized Results — 6/30 ‘$000's 2001 2002 Pre-tax Loss: ($57,071) ($48,213) Non-operating Items: WNEC Portfolio Charges =, $13,400 Used Trailer Legacy $9,600 Debt Restructuring & Refinancing $5,800 Add'l Bad Debt Chg = Severance $2,200 Other, net $3,000 Normalized Loss ($46,047) = ($14,213) Normal
Slide 26: EBITD
EBITD (in millions) \ \ \ \ . LA \/ \ \/7 4
Slide 27: Consolidated Balance Sheets
Consolidated Balance Sheets
Slide 28: Liquidity
Liquidity
Slide 29: Consolidated Balance Sheets
Consolidated Balance Sheets
Slide 30: Total Debt Levels 2002
Total Debt Levels 2002
Slide 31: Capital Structure
Capital Structure $125MM Revolver and $72MM of senior notes refinanced into term loan maturing March 30, 2004 Remaining $120MM of senior notes maturing between 2004 and 2008 remain in place $110MM A/R Securitization (On B/S) $75MM Synthetic Lease (On B/S)
Slide 32: Debt Maturity Timeline
Debt Maturity Timeline (in millions)
Slide 33: Potential Deleveraging Activities
Potential Deleveraging Activities Estimated Description Proceeds ($'s in millions) Sale of rental & leasing fleet ? Sale of Wabash Wood Products ? Sale of NTF receivables portfolio ? Sale of airplane ? Sale of Misc. Idle Properties ? Sale of RoadRailer technology ? Sale/Leaseback Unwind ? Canadian F
Slide 34: Capital Expenditures
Capital Expenditures 1997 1998 1999 2000 2001 2002 YTD 20.1 31 68.1 60.3 5.5 1.8 (in millions) $20.1 $31.0 $68.1 $60.3 $5.5 $1.8
Slide 35: Summary
Summary
Slide 36: We Control Our Destiny
We Control Our Destiny Major Critical Issues Are Within Our Control Customer Base & Cycle Is Positive No Real Push-back Except Skill Base & Bench Strength Numbers Must Be Achieved - No Excuses! Organization & Position Changes Will Continue to Evolve Focus Only on Critical Issues Operational Excellen
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