Wabash National Corporation (NYSE:WNC) Q2 2024 Earnings Conference Call July 24, 2024 12:00 PM ET Company Participants Ryan Reed - Vice President, Corporate Development, Investor Relations Brent Yeagy - President & Chief Executive Officer Mike Pettit - Chief Financial Officer Conference Call Participants Mike Shlisky - D.A. Davidson Jeff Kauffman - Vertical Research Partners Operator Thank you for standing by. I am Arista, and I will be a conference operator today. At this time I would like to welcome every ...

The following table presents the major components of Other accrued liabilities (in thousands): ® The Company offers a limited warranty for its products with a coverage period that ranges between 1 and 5 years, except that the coverage period for DuraPlate trailer panels is 10 years and the coverage period for steel main beams on flatbed trailer products exceeds 10 years. The Company passes through component manufacturers' warranties to our customers. The Company's policy is to accrue the estimated cost of w ...

Wabash National Corporation Three Months Ended June 30, 2024 2023 Units Shipped New trailers 9,245 11,825 New truck bodies 3,925 4,025 Used trailers 20 15 | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------|-------|-----------|-------|------------|-------|--------------|-------|--------------| | Three Months Ended June 30, \n2024 | | Solutions | Parts | & Services | | Eliminations | | Consolidated | | New Trailers | $ | 383,145 | $ | — | $ | (681) | $ | ...

LAFAYETTE, Ind., July 02, 2024 (GLOBE NEWSWIRE) -- Wabash (NYSE: WNC) today announced that it will webcast its quarterly earnings conference call to review and discuss its financial results for the second quarter 2024 on Wednesday, July 24, 2024 beginning at 12:00 p.m. ET. The call and an accompanying slide presentation will be accessible on the "Investors" section of Wabash's website, www.onewabash.com, under "Events & Presentations." The conference call will be accessible by dialing (800) 715-9871, confer ...

LAFAYETTE, Ind., July 02, 2024 (GLOBE NEWSWIRE) -- Wabash (NYSE: WNC) today announced that it will webcast its quarterly earnings conference call to review and discuss its financial results for the second quarter 2024 on Wednesday, July 24, 2024 beginning at 12:00 p.m. ET. The call and an accompanying slide presentation will be accessible on the "Investors" section of Wabash's website, www.onewabash.com, under "Events & Presentations." The conference call will be accessible by dialing (800) 715-9871, confer ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-10883 WABASH NATIONAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 52-1375208 (State of Incorpor ...

Financial Data and Key Metrics Changes - In Q1 2024, consolidated revenue was $515 million, with net income attributable to common stockholders at $18.2 million, or $0.39 per diluted share [25][26] - Gross margin was 14.8% of sales, while operating margin was 5.7% [26] - Operating EBITDA for the quarter was $46 million, or 8.8% of sales [26] Business Line Data and Key Metrics Changes - Transportation Solutions generated revenue of $470 million with an operating income of $44 million [27] - Parts and Services generated revenue of $49 million and operating income of $10.5 million [27] - Year-to-date operating cash was an outflow of $17 million, typical for Q1 [27] Market Data and Key Metrics Changes - At the end of Q1, the company had a backlog of $1.8 billion, with $1.5 billion expected to be shipped in the next 12 months [20] - The company noted a challenging freight environment but observed leading indicators like the ISM index rising above 50, indicating potential expansion in manufacturing [17] Company Strategy and Development Direction - The company is enhancing its network with 78 dealer locations and launched the Wabash Marketplace to deliver customer-centric solutions [7][8] - The focus is on developing a comprehensive digital platform to streamline the supply chain experience and improve access to parts and services [9][10] - The company is investing in strategic growth initiatives during a down year in the trailer industry, emphasizing resilience in its portfolio [11][12] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about improvements in the freight market, citing a reduction in capacity and positive macroeconomic indicators [18][19] - The company reiterated its full-year 2024 guidance of $2.3 billion in revenue and a midpoint EPS of $2.25, supported by a stable backlog [21][30] - Management highlighted the importance of employee engagement and a culture of continuous improvement to enhance financial performance [13][16] Other Important Information - The company invested $19 million in capital projects, repurchased $16 million in shares, and paid $4.2 million in dividends during Q1 [28][29] - The anticipated capital expenditures for 2024 are between $75 million and $85 million to support strategic growth initiatives [32] Q&A Session Summary Question: Was the pickup and logistical issue an industry-wide phenomenon? - Management confirmed that the delays in customer pickups were a normal industry issue, particularly during a down year for dry vans [36][37] Question: How should Trailer as a Service be modeled? - Management explained that it will show up as a lease-type expense, with monthly revenue and associated expenses reflected in cash flow statements [38][39] Question: What needs to improve in the market for orders to increase? - Management indicated that improvements are already occurring, with gross manufacturing activity and capacity leaving the market [40][41] Question: Can you quantify the delayed pickups in Q1? - Management noted that the disconnect in guidance was largely due to delayed pickups, with expectations for a catch-up in Q2 [44][45] Question: What is the expected cadence of operating margins for the year? - Management expects operating margins to improve as revenue increases, particularly from Parts and Services in the second half of the year [49][50] Question: What is the outlook for truck bodies and tank trailers? - Management anticipates year-over-year growth in truck bodies, while tank trailers are expected to see less of a pullback compared to dry vans [52][53] Question: What is the sustainability of the strong margins in Parts & Services? - Management stated that while Q1 margins were strong, they would not guide above 20% for the future, maintaining a high-teens to 20% range [63][64]

| --- | --- | |------------------------------------------------------------------------------------------|-------| | | | | | | | | | | April 24, 2024 First Quarter 2024 Earnings Release Changing How the World Reaches You ® | | 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 ...

Media Contact: Dana Stelsel Director, Communications (765) 771-5766 dana.stelsel@onewabash.com Investor Relations: Ryan Reed VP, Corporate Development, IR and FP&A (765) 490-5664 ryan.reed@onewabash.com Wabash Announces First Quarter 2024 Results LAFAYETTE, Ind. – April 24, 2024 – Wabash (NYSE: WNC), the innovation leader of connected solutions for the transportation, logistics and distribution industries, today reported results for the quarter ended March 31, 2024. The Company's net sales for the first qua ...

Organizational Structure and Strategy - Wabash National Corporation reported a significant transformation in its organizational structure, establishing two operating segments: Transportation Solutions (TS) and Parts & Services (P&S) to enhance customer service and long-term growth [25]. - The company aims to leverage its Wabash Management System (WMS) to drive continuous improvement and innovation across its operations, enhancing customer satisfaction and operational efficiency [22]. - The company emphasizes the importance of lean thinking and standardized processes in achieving its strategic objectives, which are integral to its One Wabash approach [22]. - The company’s One Wabash organizational structure focuses on value streams, streamlined processes, and product innovation to enhance customer experience and drive long-term growth [24]. - The company has established a new legal entity, Linq Venture Holdings LLC, to develop a digital marketplace for parts and services in the transportation industry [59]. - The company is expanding its parts and services operating segment to diversify operations and enhance profitability [101]. Product Development and Innovation - The TS segment includes a diverse range of products such as dry and refrigerated van trailers, platform trailers, and EcoNex™ Technology products, which are aimed at improving quality and consistency in the transportation industry [27]. - Wabash has developed a new composite technology that is expected to deliver significant value to customers, reflecting the company's commitment to product innovation [21]. - The company continues to develop new products and explore markets for its proprietary EcoNex Technology, which is expected to enhance performance and efficiency [75]. - The EcoNex Technology provides up to a 28% improvement in thermal performance over conventional refrigerated trailers, reducing operational costs and resource use [50]. - The introduction of Acutherm Refrigerated Truck Bodies with EcoNex Technology is expected in late 2024, targeting sustainable thermal delivery solutions [54]. - DuraPlate trailers utilize proprietary technology with a composite sandwich panel wall for increased durability and strength [54]. - The DuraPlate Cell Core reduces the weight of a conventional 53-foot DuraPlate trailer by 300 pounds, enhancing durability and strength [54]. Financial Performance and Capital Allocation - The company aims to enhance its capital allocation strategy by maintaining liquidity, managing debt, and reinvesting for growth, while also maintaining regular dividends for the past seven years [33]. - The company has approximately $400.0 million in total indebtedness as of December 31, 2023, with an additional $339.9 million available under the Revolving Credit Agreement [133]. - The company currently pays a quarterly dividend of $0.08 per share, totaling approximately $4.0 million per quarter [133]. - The company’s capital allocation strategy includes maintaining liquidity, managing debt, reinvesting for growth, and maintaining regular dividends, which have been paid for the last seven consecutive years [33]. Market and Industry Insights - The U.S. trucking industry was estimated to be a $940.8 billion market in 2022, reflecting a 7.5% increase from 2021 [34]. - Total U.S. trailer production in 2022 was approximately 308,000 trailers, with estimates for 2023 production at 311,000 and 322,000 trailers, representing increases of 1% and 4.4% respectively [36]. - International sales accounted for less than 10% of net sales for each of the last three years, indicating a focus on domestic markets [65]. - The truck trailer manufacturing industry is cyclical, and economic downturns could lead to reduced demand and lower sales volumes [89]. Workforce and Diversity - In 2023, 66% of total hourly hires and 47% of total salaried hires were women and/or minorities, reflecting the company's commitment to diversity [46]. - The company has approximately 6,700 full-time employees as of December 31, 2023, with nearly all being non-union [39]. - Over 400 front line leaders have been trained since the launch of the special development program in 2022 [42]. - Wabash's ongoing efforts in training and development have resulted in over 225 graduates from its WMS University Champion program, enhancing internal capabilities [23]. Community Engagement and Corporate Responsibility - In 2023, Wabash donated over $755,000 to nonprofit organizations, including Feeding America and the Cystic Fibrosis Foundation, through corporate gifts and employee donations [48]. - Approximately 10% of Wabash's workforce dedicated over 5,000 hours to volunteer work in 2023, supporting various community initiatives [48]. Safety and Compliance - The company reported a Total Recordable Incident Rate (TRIR) of 4.32 in 2023, marking one of its best years for safety performance [42]. - The company maintains an ISO 14001 registration for its Environmental Management System at four facilities, emphasizing its commitment to sustainability [51]. - The company is subject to extensive governmental regulations, which could materially impact financial results and operational costs [117]. Risks and Challenges - The company recognizes the need to adapt to economic conditions and market demands, which are critical for maintaining its competitive edge in the transportation and logistics sectors [10]. - Economic conditions, including inflation and labor costs, have led to increased operational costs, which may impact gross margins and profitability [97]. - The ongoing global supply chain disruptions have resulted in increased transportation costs and significant order backlogs [99]. - The company is facing challenges in attracting and retaining key personnel, which could disrupt operations and affect consumer demand [100]. - The company is highly reliant on a limited number of suppliers for raw materials, and any disruptions could adversely affect its ability to meet product demand [98]. Cybersecurity and Risk Management - The Company has not experienced a material information security breach in the last three years [157]. - The Company's cybersecurity program is integrated into its overall enterprise risk management (ERM) approach, with a focus on governance and risk identification [147]. - The Company employs a variety of security-focused training practices, including monthly phishing simulations, to enhance employee awareness of cybersecurity threats [152]. - The Company has established and regularly tests incident response plans to address cybersecurity incidents [150]. - Cybersecurity threats have not materially affected the Company's business strategy or financial condition [158].