Wabash National Corporation · NYSE:WNC
Wabash National — Q4 2020 Earnings Presentation
19 slides from Wabash National's earnings presentation, Feb 3, 2021
Slide 1: Wabash National Corporation 2020 Q4 Earnings Release
WABASH NATIONAL CORPORATION 2020 Q4 EARNINGS RELEASE
Slide 2: Safe Harbor Statement & Non-GAAP Financial Measures
SAFE HARBOR STATEMENT & NON-GAAP FINANCIAL MEASURES 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 f
Slide 3: Highlights of Quarter & Year
HIGHLIGHTS OF QUARTER & YEAR ▪ Employees were undeterred by pandemic - continued to drive strategy forward 2020 ▪ Resilience of Wabash product portfolio and business processes well-demonstrated Perspective ▪ Took action in aligning business portfolio with strategy Product ▪ Finding opportunity for M
Slide 4: Q4 2020 Consolidated Financial Performance
Q4 2020 CONSOLIDATED FINANCIAL PERFORMANCE 4Q20 Results 4Q19 Results Strengthening customer demand to close the year $404M $579M Net Sales Net Sales New Trailer Shipments accelerate in Q4 10,610 14,950 New Trailer Shipments New Trailer Shipments Gross Margin shows continued manufacturing efficiency
Slide 5: Commercial Trailer Products
COMMERCIAL TRAILER PRODUCTS Revenue Adjusted Operating Margin* -29.1% -180 bps 10.8% $399.3 8.2% $283.0 Q4 2019 Q4 2020 Q4 2019 Q4 2020 5 *Q4 2020 CTP operating margin adjusted for gain on sale of former branch location. 5
Slide 6: Diversified Products Group
DIVERSIFIED PRODUCTS GROUP Revenue Adjusted Operating Margin* -20.6% -150 bps $94.7 5.9% $75.2 4.4% Q4 2019 Q4 2020 Q4 2019 Q4 2020 6 *Q4 2020 DPG operating margin adjusted for loss on divestiture of business. 6
Slide 7: Final Mile Products
FINAL MILE PRODUCTS Revenue Operating Margin -44.0% -230 bps $92.7 (6.4)% (8.7)% $51.9 Q4 2019 Q4 2020 Q4 2019 Q4 2020 7 7
Slide 8: Cash Generation
CASH GENERATION Full Year Full Year 2020 2019 Operating Cash Flow $124.1M $146.3M Capital Expenditure $20.1M $37.6M Free Cash Flow $104.0M $108.6M 8 8
Slide 9: 2021 Guidance
2021 GUIDANCE Expected Trends Key Metrics ▪ CTP demand levels to improve in 2021 Sales Operating Margin $1.9B-$2.0B 3.75% to 4.25% Midpoint: $1.95B Midpoint: 4.0% ▪ Tank Trailer market volumes to grow in 2021 ▪ Truck Body market to bounce back in 2021 Other EPS New Trailer Shipments: 46k-48k SG&A: $
Slide 10: Appendix
APPENDIX a
Slide 11: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS Unaudited - dollars in thousands December 31, 2020 December 31, 2019 Assets Current assets: Cash and cash equivalents $ 217,677 $ 140,516 Accounts receivable, net 101,301 172,737 Inventories 163,750 186,914 Prepaid expenses and other 63,036 41,222 Total current assets 545
Slide 12: Consolidated Statements of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited - dollars in thousands Three Months Ended December 31, Twelve Months Ended December 31, 2020 2019 2020 2019 Net sales $ 404,078 $ 579,001 $ 1,481,889 $ 2,319,136 Cost of sales 358,582 506,694 1,322,135 2,012,754 Gross profit 45,496 72,307 159,754 306,3
Slide 13: Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - dollars in thousands Year Ended December 31, 2020 2019 Cash flows from operating activities: Net (loss) income $ (97,412) $ 89,575 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation 25,989 21,886 Amo
Slide 14: Q4 QTD Segment Information
Q4 QTD SEGMENT INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Three Months Ended December 31, Trailer Products Products Products Eliminations Consolidated 2020 New trailers shipped 10,085 525 — — 10,610 Used trailers shipped 155 15 — — 170 New Trailers $
Slide 15: Q4 YTD Segment Information
Q4 YTD SEGMENT INFORMATION Unaudited - dollars in thousands Commercial Diversified Final Mile Corporate and Twelve Months Ended December 31, Trailer Products Products Products Eliminations Consolidated 2020 New trailers shipped 34,585 2,050 — — 36,635 Used trailers shipped 475 125 — — 600 New Traile
Slide 16: Reconciliation of Adjusted Segment Operating Income
RECONCILIATION OF ADJUSTED SEGMENT OPERATING INCOME Unaudited - dollars in thousands Three Months Ended December 31, Twelve Months Ended December 31, 2020 2019 2020 2019 Commercial Trailer Products Income from operations $ 25,533 $ 43,135 $ 79,662 $ 145,877 Adjustments: Impairment — — 377 — Gain on
Slide 17: Reconciliation of Adjusted Net Income and Adjusted Diluted EPS
RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE Unaudited - dollars in thousands Adjusted Net Income1: Three Months Ended December 31, Twelve Months Ended December 31, 2020 2019 2020 2019 Net income (loss) $ 5,494 $ 18,375 $ (97,412) $ 89,575 Adjustments: Debt transacti
Slide 18: Reconciliation of Operating EBITDA and Free Cash Flow
RECONCILIATION OF OPERATING EBITDA AND FREE CASH FLOW Unaudited - dollars in thousands Operating EBITDA1: Three Months Ended December 31, Twelve Months Ended December 31, 2020 2019 2020 2019 Net income (loss) $ 5,494 $ 18,375 $ (97,412) $ 89,575 Income tax (benefit) expense (1,504) 6,929 (11,802) 28
Slide 19: Reconciliation of Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin
RECONCILIATION OF ADJUSTED SEGMENT EBITDA1 AND ADJUSTED SEGMENT EBITDA MARGIN1 Unaudited - dollars in thousands Commercial Trailer Products Diversified Products Final Mile Products Three Months Ended December 31 2020 2019 2020 2019 2020 2019 Income (loss) from operations $ 25,533 $ 43,135 $ 1,203 $