Navistar International Corporation
Navistar International — Q4 2020 Earnings Presentation
22 slides from Navistar International's earnings presentation, Dec 17, 2020
Slide 1: Q4 2020 Earnings Presentation
Q4 2020 EARNINGS PRESENTATION December 17, 2020 Exhibit 99.2
Slide 2: Safe Harbor Statement and Other Cautionary Notes
Safe Harbor Statement and Other Cautionary Notes Information provided and statements contained in this presentation that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), Section 21E of the Securit
Slide 3: Fourth Quarter 2020 Summary
Fourth Quarter 2020 Summary Note:This slide contains non-GAAP information; please see the REG G in appendix for a detailed reconciliation. Operating results improved sequentially, reflecting stronger economic and truck industry conditions Q4 net loss of $236 million includes $297 million of tax-effe
Slide 4: 2020 Accomplishments
Tremendous business accomplishments despite COVID-19 pandemic Effectively maintained employee health and safety through enhanced protocols Broke ground on capital investments in San Antonio and Huntsville Formed new partnerships to provide customer solutions for emerging technologies Plans to announ
Slide 5: Fourth Quarter and Annual 2020 Consolidated Results
Fourth Quarter and Annual 2020 Consolidated Results ($ in millions, except per share and units) Note: This slide contains non-GAAP information; please see the REG G in appendix for a detailed reconciliation. Includes U.S. and Canada School buses and Class 6-8 trucks. Amounts attributable to Navistar
Slide 6: Fourth Quarter 2020 Segment Results
Fourth Quarter 2020 Segment Results ($ in millions) During Q4 2020, the Truck segment recorded a charge of $58 million, including $8 million of legal and other fees, related to the Department of Justice litigation settlement. (A) Sales and Revenues Segment Profit (Loss) Quarters Ended October 31 Qua
Slide 7: Annual 2020 Segment Results
Annual 2020 Segment Results ($ in millions) (A) (B) During 2020, the Truck segment recorded a charge of $58 million, including $8 million of legal and other fees, related to the Department of Justice litigation settlement. During 2019, the Truck segment recognized a net charge of $129 million relate
Slide 8: Strong Cash Balance, No Near-Term Manufacturing Debt Maturities
Strong Cash Balance, No Near-Term Manufacturing Debt Maturities ($ in millions) Manufacturing Cash Balance(A) Manufacturing Debt Maturities(B) Note: This slide contains non-GAAP information; please see the REG G in appendix for a detailed reconciliation. Amounts include manufacturing cash and cash e
Slide 9: (Q4 2020 Earnings ~ 12/17/2020
(Q4 2020 Earnings ~ 12/17/2020 NYSE:NAV 9.
Slide 10: Days Sales Inventory On-Hand
Days Sales Inventory On-Hand Normal range is 80-120 days inventory on hand Includes US and Canada Class 6-8 company and dealer truck inventory, but does not include IC Bus *Calculation is based on the 3-month rolling average of inventory-to-retail sales ratio 100 Days
Slide 11: Retail Market Share in Commercial Vehicle Segments
Retail Market Share in Commercial Vehicle Segments Class 6/7 Medium-Duty Class 8 Severe Service Class 8 Heavy Years Ended October 31, 2020 2019 2018 Core Markets (U.S. and Canada) School buses…........................…............ 0.378 0.35799999999999998 0.33200000000000002 Class 6 and 7 medium tr
Slide 12: Worldwide Truck Chargeouts
Worldwide Truck Chargeouts _______________________ We define chargeouts as trucks that have been invoiced to customers. The units held in dealer inventory represent the principal difference between retail deliveries and chargeouts. The above table summarizes our approximate worldwide chargeouts. We
Slide 13: Financial Services Segment Highlights
Financial Services Segment Highlights Financial Services segment profit of $14M for Q4 2020 and $65M 2020 Segment financing availability of $814M as of October 31, 2020 Financial Services debt/equity leverage of 2.8:1 as of October 31, 2020 Repaid $300M two-year dealer funding notes that matured in
Slide 14: Frequently Asked Questions
Frequently Asked Questions Q1: What is included in Corporate and Eliminations? A:The primary drivers of Corporate and Eliminations are Corporate SG&A, pension and OPEB expense (excluding amounts allocated to the segments), annual incentive and profit sharing, manufacturing interest expense, and the
Slide 15: Frequently Asked Questions
Frequently Asked Questions Q6:What is the current balance of net operating losses as compared to other deferred tax assets? A: As of October 31, 2020, the Company had deferred tax assets for U.S. federal NOLs valued at $495 million, state NOLs valued at $165 million, and foreign NOLs valued at $141
Slide 16: Frequently Asked Questions: Revenue by Product Type, Free Cash Flow
Q10: What is your revenue by product type(A)? A: ___________________________ Includes other markets primarily consisting of Bus, Export Truck and Mexico. Retail financing and Wholesale financing revenues in the Financial Services segment include interest revenue of $58 million and $31 million, respe
Slide 17: Outstanding Debt Balances
Outstanding Debt Balances($ in millions)October 31, 2020October 31, 2019Financial Services operationsAsset-backed debt issued by consolidated SPEs, at fixed and variable rates, due serially through 2022, net of unamortized debt issuance costs of $3 and $4, respectively$ 724$991Bank credit facilities
Slide 18: SEC Regulation G Non-GAAP Reconciliation
SEC Regulation G Non-GAAP Reconciliation SEC Regulation G Non-GAAP Reconciliation: The financial measures presented below are unaudited and not in accordance with, or an alternative for, financial measures presented in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-G
Slide 19: Manufacturing Operations Cash and Cash Equivalents Reconciliation
SEC Regulation G Non-GAAP Reconciliation Manufacturing Operations Cash and Cash Equivalents Reconciliation:
Slide 20: SEC Regulation G Non-GAAP Reconciliations: EBITDA
SEC Regulation G Non-GAAP Reconciliations Earnings (Loss) Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) Reconciliation ______________________ (A) Manufacturing interest expense is the net interest expense primarily generated for borrowings that support the Manufacturing and Corpo
Slide 21: Adjusted Net Income Reconciliation
SEC Regulation G Non-GAAP Reconciliation Adjusted Net Income Reconciliation: ____________________ For more detail on the items noted, please see the footnotes on slide 22. Quarter Ended, Oct 31 Year Ended, Oct 31 ($ in millions) 2020 2019 2020 2019 2018 Net income from continuing operations attribut
Slide 22: Footnotes to Non-GAAP Adjustments
(A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historical and expected trends. Our warranty liability is generally affected by component failure rat
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