Wabash National Corporation · NYSE:WNC
Wabash National — Shareholder Meeting (May 2016)
21 slides from Wabash National's shareholder meeting presentation, May 12, 2016
Slide 1: Annual Shareholders Meeting
ANNUAL SHAREHOLDERS MEETING May 12, 2016 Dick Giromini, President & CEO Wabash National Corporation
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: Wabash National Corporation: 30 Years of Innovation Leadership
3 W ABASH N ATIONAL C ORPORATION 30 Years of Innovation Leadership
Slide 4: Our Vision, Mission & Values Drive Everything We Do
4 Mission To provide ever - increasing value to all of our stakeholders, including customers, shareholders, associates, suppliers, and our community. Based on core values of integrity, trust and mutual respect , we will drive continuous improvement, thus assuring leadership positions in: ▪ safety pe
Slide 5: Strategic Segments
5 S TRATEGIC S EGMENTS Wabash National Corporation Commercial Trailer Products 2015 Sales: $ 1.5B • Dry & Refrigerated Vans • Platform Trailers • Dry & Refrigerated Truck Bodies • Fleet Used Trailers Diversified Products 2015 Sales: $428M • Tank Trailers • Truck - Mounted Tanks • Aircraft Refueling
Slide 6: DPG – Business Profiles
6 Clearly defined business structure DPG – B USINESS P ROFILES Diversified Products Group Tank Trailers 55% of Total • Chemical • Sanitary • Refined Fuel • Crude Oil • Corrosive Materials • Asphalt • Agriculture • Dry Bulk • Used Trailers • Parts Aviation & Truck Equip. Process Systems Composites 11
Slide 7: 2015 Company Highlights
7 ▪ Record Revenue , Operating Income, Gross Profit and Operating EBITDA ▪ # 1 market share position among trailer manufacturers in North America ▪ Named a “50 Best U.S. Manufacturer” for third year 2015 C OMPANY H IGHLIGHTS
Slide 8: 2015 Company Highlights
8 ▪ Earned ISO 14001:2004 registrations for environmental management at Cadiz , Kentucky, and San José Iturbide, Mexico, operations ▪ Raised a record $ 723,000 in community impact for the United Way 2015 C OMPANY H IGHLIGHTS
Slide 9: 2015 Business Unit Highlights
9 ▪ Launched first line of dry and refrigerated truck bodies for the Class 5 - 7 medium - duty market ▪ Expanded operations in Frankfort, Indiana, for Composites business ▪ Launched 4 aerodynamic trailer solutions ▪ Expanded stationary silo production to San José Iturbide, Mexico ▪ Expanded operatio
Slide 10: Strategic Plan Goals & Objectives
10 S TRATEGIC P LAN G OALS & O BJECTIVES Focus on High - Margin Opportunities Diversify the Business Operational Excellence Grow the Business Objectives Goals Enhanced Shareholder Value Reduce Cyclicality Improve Profitability Drive Top - Line Growth
Slide 11: 2015 Segment Revenue and Product Mix
11 2015 S EGMENT R EVENUE AND P RODUCT M IX New Markets. New Innovation. New Growth. 2015 Consolidated Revenue: $2.0B
Slide 12: Financial Performance: TTM Revenue
12 $338 $640 $1,187 $1,462 $1,636 $1,863 $2,027 $2,038 $0 $300 $600 $900 $1,200 $1,500 $1,800 $2,100 12/09 12/10 12/11 12/12 12/13 12/14 12/15 3/16 ($ millions) F INANCIAL P ERFORMANCE Trailing Twelve Month (TTM) Revenue FY 2015 Set New Records Across Multiple Metrics ($ millions) Significantly impr
Slide 13: Financial Performance: TTM Operating EBITDA and Net Leverage
13 F INANCIAL P ERFORMANCE TTM Operating EBITDA at $ 250M and Net Leverage of 0.5x Net Leverage Ratio Improved top - line and margins lead to: ▪ Record FY Operating EBITDA and year end liquidity in 2015 ▪ Cash generation leading to lower net debt leverage ($43) $5 $39 $119 $150 $169 $230 $250 ($100)
Slide 14: Diversification Efforts Driving Results
14 2007 Higher Growth and Margin Profile, Less Cyclicality 2015 D IVERSIFICATION E FFORTS D RIVING R ESULTS Revenue Manufacturing Retail 14% 86% 20% Commercial Trailer Products Diversified Products Retail 72% 8% Operating Income Manufacturing Retail Diversified Products Commercial Trailer Products 2
Slide 15: Wabash National – Financial Highlights
15 2007 2015 TTM ▪ Gross Margin 8.3 % 15.0 % 16.0% ▪ Operating Margin 2.4% 8.9 % 9.9% ▪ Earnings up 187% since 2007 ($ 0.52/ sh in ‘07. to $1.49/sh . i n ‘15) ▪ Strong free cash flow with > 100% cash conversion ▪ TTM ROIC 21.8% as of 3/31/2016 ▪ $ 338M of liquidity or 17% of revenue as of 3/31/2016
Slide 16: Long-Term Growth Drivers
16 L ONG - T ERM G ROWTH D RIVERS ▪ Pricing discipline ▪ Operational Excellence / 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 abili
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Slide 18: Annual Shareholders Meeting Appendix
ANNUAL SHAREHOLDERS MEETING Appendix
Slide 19: Reconciliation of Non-GAAP Measures
19 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 20: Reconciliation of Non-GAAP Measures
20 R ECONCILIATION OF N ON - GAAP M EASURES a.) Branch Transactions are comprised of the sale of assets for three West Coast Retail branches in 2014 and the real estate ass ociated with the three West Coast Retail branches in 2015 Note : This table reconciles annual net income for the periods presen
Slide 21: Potential Dilutive Impact of Senior Convertible Notes
21 P OTENTIAL D ILUTIVE I MPACT OF S ENIOR C ONVERTIBLE N OTES (UNAUDITED) Table below illustrates the potential dilutive shares that would be included in the calculation of the Company’s reported earnings per share in a future period assuming various hypothetical quarterly average market prices for