Wabash National Corporation · NYSE:WNC
Wabash National — Investor Presentation (May 2014)
30 slides from Wabash National's investor presentation, May 21, 2014
Slide 1: Investor Update Second Quarter 2014
WABASH NATIONAL CORPORATION Investor Update Second Quarter 2014 Dick Giromini, President & CEO Jeff Taylor, Senior Vice President & CFO
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: Company Background
3 Acquired assets of leading liquid tank and dry bulk trailer producer C OMPANY B ACKGROUND Acquired assets of leading aluminum flatbed producer Founded as a start - up IPO ( NYSE : WNC ) Achieved leading industry position Introduced the DuraPlate ® composite dry van trailer Record trailer productio
Slide 4: Wabash Segments
4 W ABASH S EGMENTS Wabash National Corporation Commercial Trailer Products 2013 Sales: $1.1B • Dry & Refrigerated Vans • Platform Trailers • Fleet Used Trailers Retail 2013 Sales: $ 181M • 18 Retail L ocations in U.S. • New & Used Trailer Sales • Parts & Service Tank Services Diversified Products 2
Slide 5: Geographic Footprint
5 G EOGRAPHIC F OOTPRINT Manufacturing Locations Corporate HQ Company - Owned Retail Locations Dealers / Service Centers
Slide 6: Commercial Trailer Products: Segment Profile
6 CTP Operating Income Up More Than $50 Million Since 2010 Key Statistics Recent Financial Performance - CTP Examples of Key Customers ▪ Comprehensive trailer products portfolio ▪ 2013 New Trailer Shipments: 43,800 ▪ Core products: dry vans, refrigerated vans, platform trailers ▪ Brands: Wabash Nati
Slide 7: Industry Forecasts
7 I NDUSTRY F ORECASTS ▪ In addition to fleet age and population, demand will be driven by government regulations (HOS, CSA, CARB and others) and recovery in specific industry sectors ▪ Strong demand above replacement levels forecast for next 5 years Strong D emand Forecasted for the Next Five Years
Slide 8: Trailer Market: Demand Drivers
8 T RAILER M ARKET : D EMAND D RIVERS Strong demand above replacement levels Demand Drivers: Fleet Age Source: ACT Fleet Age Remains Key Demand Driver ▪ Active fleet age increased from 7.2 years in 2006 to 8.3 years in 2011 following historically unprecedented trailer underbuy in 2008 - 10 ▪ In 2012
Slide 9: Commercial Trailer Products: Long History of Innovation
9 C OMMERCIAL T RAILER P RODUCTS : L ONG H ISTORY OF I NNOVATION Legacy of Industry Leadership in Value - Added Innovation Sheet & Post Trailer • Commodity • Versatile • High maintenance FRP Trailer • FRP (Fiberglass Reinforced Plywood) • Added interior width • Difficult to repair 1985 Alum. Plate T
Slide 10: Commercial Trailer Products Highlights
10 C OMMERCIAL T RAILER P RODUCTS H IGHLIGHTS x Industry leader in van and platform trailer manufacturing x Best - in - class, technologically innovative products x Leading brands and long - standing customer relationships x Trucking recovery and aging fleet equipment fuels trailer demand x Mature p
Slide 11: Diversified Products: Segment Profile
11 Broad Product Portfolio Serving Diverse Markets Key Statistics Recent Financial Performance Key Brands ▪ Walker Group, Wabash Composites, and Wabash Wood Products ▪ Diverse portfolio of products and services ▪ Broad customer, geographic, and end market diversification ▪ Higher growth and higher m
Slide 12: Walker Group Profile
12 Focused on Diversified, Higher M argin G rowth. Key Statistics Diversified Products Proforma Revenue Examples of Key Customers ▪ #1 manufacturer of Liquid T ank Trailers (3,000 trailers shipped in 2013) and leading manufacturer of Airplane R efuelers & Engineered P roducts ▪ High Gross Margin (>2
Slide 13: Walker Group: Industry Leadership
13 W ALKER G ROUP : I NDUSTRY L EADERSHIP End - Markets Geographies US, 87% Australia, 0% Asia, 5% Africa, 0% Latin America, 2% Mexico & Canada, 2% Europe, 3% Chemical, 31% Dairy, Food & Beverage, 27% Aviation, 15% Energy, 12% Pharmaceutical, 9% Defense, 4% Environmental, 2% Transportation Products
Slide 14: Wabash Composites Profile
14 Focused on Diversified, Higher M argin Growth Key Statistics Diversified Products Proforma Revenue Examples of Key Customers ▪ Growing Product P ortfolio ▪ Key Products : composite panels, aerodynamic trailer skirts, portable storage containers, truck body walls ▪ Brands : DuraPlate, AeroSkirt, W
Slide 15: Diversified Products Highlights
15 x Industry leader in tank trailer and engineered products with the broadest portfolio x Leader in composite panel technology, solutions - driven product development strategy x Diversified platform serving a variety of attractive end markets x Low capital model leveraging existing intellect x Lead
Slide 16: Retail: Segment Profile
16 Brenner Tank Services Increases Geographic Footprint Key Statistics 2013 Recent Financial Performance 2013 Revenue Breakout R ETAIL : S EGMENT P ROFILE ▪ Dealership model, selling new and used trailers, aftermarket parts, and maintenance and repair services. ▪ 2013 New Trailer Shipments: 3,0 00 ▪
Slide 17: Retail: New Markets – Tank Parts & Service
17 R ETAIL : N EW M ARKETS – T ANK P ARTS & S ERVICE Capture Synergy of Brenner Tank Service Expertise Key Drivers ▪ Leverage Combined Footprint to Capture Higher - Margin Tank Parts & Service ▪ Low CapEx Investment Required for Wabash National Trailer Centers ▪ Support Walker, Brenner & Beall Brand
Slide 18: Retail Segment Highlights
18 x Strategic footprint providing national support x Platform which supports the broadest product range in the industry x Integrated with OEM to deliver best practices and innovation in the aftermarket x Value added reseller of new and used trailers & parts and service x Expansion into new markets
Slide 19: Financial Overview Second Quarter 2014
WABASH NATIONAL CORPORATION Financial Overview Second Quarter 2014
Slide 20: Financial Profile
20 $338 $640 $1,187 $1,462 1,636 $1,670 $200 $600 $1,000 $1,400 $1,800 12/09 12/10 12/11 12/12 12/13 3/14 ($ millions) ($ millions) Notes: 1. See Appendix for reconciliation of non - GAAP financial information F INANCIAL P ROFILE TTM Revenue FY 2013 Revenue & Operating EBITDA Set Record Levels TTM O
Slide 21: Diversification Efforts Gaining Traction
21 Expand Commercial Trailer Products Margins Grow Diversified Products Top Line ▪ Diversified Products Segment is Gaining Critical Mass ▪ Commercial Trailer Products & Diversified Products Are Nearly Equal Contributors to Company Performance ▪ Retail Segment Provides Support to Both Segments & Capt
Slide 22: Cost Effective Debt Structure; Strong Balance Sheet
22 $0 $50 $100 $150 $200 $250 $300 12/09 12/10 12/11 12/12 12/13 3/14 $21 $60 $126 $224 $254 $206 Cost Effective Debt Structure • $150 Million ABL Revolving Facility – Sr. Secured, matures 5/2017, floating LIBOR pricing 1.75% - 2.25% • $150 Million Convertible Notes – Sr. Unsecured, matures 5/2018,
Slide 23: Long-Term Strategic Objectives
23 L ONG - T ERM S TRATEGIC O BJECTIVES Notes: (1) Diversified Products segment revenues prior to eliminations Executing Against Our Strategic Plan x x Expectations 2011 2012 2013 Long - term Revenue $1.2B $1.5B $1.6B > $ 2.0B Diversified Products Revenue (1) $107M $356M $502M > $600M Consolidated G
Slide 24: Investment Highlights
24 New Markets. New Innovation. New Growth. I NVESTMENT H IGHLIGHTS x Diversified manufacturer and industry leader in van and tank trailer production x Leading brands and long - standing relationships with blue - chip customer base x Best - in - class, technologically innovative products x Trucking
Slide 25: Appendix
WABASH NATIONAL CORPORATION Appendix
Slide 26: Consolidated Income Statement
26 C ONSOLIDATED I NCOME S TATEMENT New Markets. New Innovation. New Growth. ($ in thousands, except per share amounts) 2009 2010 2011 2012 2013 Q1 2014 Net sales 337,840$ 640,372$ 1,187,244$ 1,461,854$ 1,635,686$ 358,120$ Cost of sales 360,750 612,289 1,120,524 1,298,031 1,420,563 311,448 Gross pro
Slide 27: Consolidated Balance Sheet
27 C ONSOLIDATED B ALANCE S HEET New Markets. New Innovation. New Growth. ($ in thousands) 2009 2010 2011 2012 2013 Q1 2014 ASSETS Current assets Cash and cash equivalents 1,108$ 21,200$ 19,976$ 81,449$ 113,262$ 65,736$ Accounts receivable 17,081 37,853 52,219 96,590 120,358 118,864 Inventories 51,8
Slide 28: Consolidated Cash Flows
28 C ONSOLIDATED C ASH F LOWS New Markets. New Innovation. New Growth. ($ in thousands) 2009 2010 2011 2012 2013 Q1 2014 Cash flows from operating activities Net (loss) income (101,765)$ (141,760)$ 15,042$ 105,631$ 46,529$ 7,296$ Adjustments to reconcile net (loss) income to net cash (used in) provi
Slide 29: Reconciliation of Non-GAAP Measures
29 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. Differences may exist in the calculation of Operating EBITDA due to round
Slide 30: Reconciliation of Non-GAAP Measures (TTM)
30 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