Wabash National Corporation (NYSE:WNC) Q2 2022 Earnings Conference Call July 27, 2022 11:00 AM ET Company Participants Ryan Reed - Director-Investor Relations Brent Yeagy - President and Chief Executive Officer Michael Pettit - Chief Financial Officer Conference Call Participants Justin Long - Stephens Inc. Michael Shlisky - D.A. Davidson Felix Boeschen - Raymond James Operator Hello, and welcome to Wabash Second Quarter 2022 Earnings Call. At this time, I would like to turn the call over to Ryan Reed for o ...

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 June 30, 2022 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 Incorpora ...

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, 2022 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 Performance - The company reported consolidated first quarter revenue of $547 million, with new trailer shipments of approximately 11,695 and new truck body shipments of 3,540 [27] - Revenue increased nearly 40% year-over-year, and gross margin was 10.6% of sales, while operating margins were 3.7% [16][28] - Net income for the quarter was $12.1 million, or $0.24 per diluted share [29] Business Segment Performance - Transportation solutions generated revenues of $502 million with operating income of $32 million, while Parts & Services generated revenue of $47 million and operating income of $6.8 million [29] - The Parts & Services segment is expected to chart a path of sustainable growth during 2022 [29] Market Conditions - The company has zero revenue exposure to Europe following the divestiture of Extract Technology in 2021, and its supply chain is highly leveraged in North America [17][19] - The backlog stood at a record $2.3 billion, representing a 50% increase compared to the same period last year [22] - The company expects continued strong demand driven by structural changes in logistics and e-commerce [21] Company Strategy and Industry Position - The company is focusing on sustainability and social responsibility as core elements of its strategy, with a commitment to providing innovative solutions for alternative powered vehicles [10][15] - A new technology alliance with Clarience Technologies aims to enhance trailer applications and connectivity as electric and autonomous vehicles come to market [13] - The company is positioned to benefit from structural changes in logistics driven by e-commerce, which is expected to create a higher tractor-trailer ratio across the logistics spectrum [47] Management Commentary on Future Outlook - The company raised its 2022 EPS outlook to $1.90, citing strong backlog and improved margin structure [23][24] - Management expressed confidence in the ability to ramp production and meet strong demand, with expectations for revenue of $2.5 billion in 2022 [33] - The company anticipates operating margins to improve to approximately 6% at the midpoint for the full year [34] Other Important Information - Year-to-date operating cash flow was negative $35 million, but the company expects a release of working capital as production ramps up [30] - The company has a liquidity position of $203 million as of March 31, 2022, with $73 million in cash and cash equivalents [31] Q&A Session Summary Question: Pricing on new trailers and cost offset - Management indicated that any price costs not covered in Q1 were due to backlog from 2021, and they expect improved margins moving forward with a full mix of 2022 priced units [40][41] Question: 2023 order books - Management noted that while order books for 2023 are not officially open, they are engaged in discussions with customers and expect to open them earlier than in 2022 [44] Question: Structural changes in trailer usage - Management confirmed that there are structural changes in logistics driven by e-commerce, leading to increased demand for trailers across various segments [47] Question: Monthly margin progression - Management observed a step-up in margins throughout Q1, with expectations for Q2 margins to return to pre-pandemic levels [56][59] Question: SG&A guidance - Management explained that the decrease in SG&A as a percentage of revenue is due to revenue growth and continued cost control measures [76] Question: Trailer deliveries and capacity addition - Management confirmed that the capacity addition plan remains intact and expects normal seasonality in trailer deliveries for the rest of the year [79][96] Question: Impact of spot rates on customer mix - Management indicated that their strategic customers are less affected by spot rate fluctuations and are optimistic about contract rates [63] Question: Changes in trailer configuration for EVs - Management discussed the need for advanced technology in trailer design to accommodate electric and autonomous vehicles, emphasizing their commitment to sustainability [106][110]

| --- | --- | --- | |--------|-------|-----------------------------------------| | | | | | WABASH | | | | | | First Quarter 2022 Earnings Release WNC | | | | LISTED | | | | NYSE | 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 future events. All statements con ...

| --- | --- | --- | |-------|----------------------------------------------------|-------| | | | | | | | | | | Raymond James Institutional Investors Conference | | | | Brent Yeagy | | | | President & CEO | | | | March 7, 2022 | | | | | | | | | | | --- ...

Part I [Business](index=6&type=section&id=Item%201%20Business) Wabash National Corporation, a leader in engineered solutions for transportation, logistics, and distribution, strategically realigned into two segments and rebranded in 2022, focusing on cold chain, e-commerce, and parts growth - In September 2021, the company realigned its operating structure from three segments into two new reportable segments: Transportation Solutions (TS) and Parts & Services (P&S)[20](index=20&type=chunk)[28](index=28&type=chunk)[298](index=298&type=chunk) - In January 2022, the company rebranded its entire portfolio under the single "Wabash" brand, discontinuing legacy names, which led to a **$28.3 million** non-cash impairment charge in Q4 2021[21](index=21&type=chunk)[24](index=24&type=chunk) - The company's strategic growth initiatives are focused on three key areas: expanding in the cold chain market, capitalizing on e-commerce and logistics disruption, and growing its parts and services offerings[33](index=33&type=chunk) Key Business Indicators | Indicator | Value (as of Dec 31, 2021) | Change (YoY) | | :--- | :--- | :--- | | **Order Backlog** | $2,526 million | +70% | | **Full-time Employees** | ~6,200 | N/A | | **US Patents (held/applied)** | 147 | N/A | | **Foreign Patents (held/applied)** | 152 | N/A | - The five largest customers accounted for approximately **30%** of aggregate net sales in 2021, with no single customer accounting for more than **10%** of net sales[60](index=60&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A%20Risk%20Factors) The company faces significant risks including the cyclical nature of the truck trailer industry, reliance on limited raw material suppliers, challenges in workforce attraction and retention, execution of strategic growth, and the ability to service its **$433.1 million** total indebtedness - Business & Operational Risks: The truck trailer manufacturing industry is highly cyclical, and demand is sensitive to economic conditions, with the company relying on a limited number of suppliers, facing risks of shortages and price volatility in key materials like foam insulation, steel, and aluminum[81](index=81&type=chunk)[83](index=83&type=chunk)[91](index=91&type=chunk) - Human Capital Risks: The inability to attract and retain key personnel or a sufficient manufacturing workforce, especially in a tight labor market, could materially impact operations and growth[93](index=93&type=chunk) - Strategic & Competitive Risks: The company's success depends on executing its strategic plan, including diversification into higher-margin products and services, while facing significant competition on product quality, innovation, and price[94](index=94&type=chunk)[95](index=95&type=chunk)[100](index=100&type=chunk) - Financial & Debt Risks: As of Dec 31, 2021, the company had **$433.1 million** in total indebtedness, with its ability to service this debt subject to operating performance and economic conditions, and debt agreements containing restrictive covenants that limit financial and operating flexibility[121](index=121&type=chunk)[125](index=125&type=chunk)[128](index=128&type=chunk) [Unresolved Staff Comments](index=29&type=section&id=Item%201B%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[133](index=133&type=chunk) [Properties](index=30&type=section&id=Item%202%20Properties) Wabash operates major manufacturing and corporate facilities across the United States and in Mexico, including key sites in Lafayette, IN, and Cadiz, KY, which are deemed adequate for current operations - The company has major manufacturing and retail operations throughout the United States and a facility in Mexico, with key locations including Lafayette, IN; Cadiz, KY; Fond du Lac, WI; Goshen, IN; and San Jose Iturbidé, Mexico[134](index=134&type=chunk)[135](index=135&type=chunk) [Legal Proceedings](index=31&type=section&id=Item%203%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, including two environmental cases as a potentially responsible party in South Carolina and Indiana, neither of which is expected to have a material financial impact - The company is a potentially responsible party (PRP) in two environmental cases: one in South Carolina (Philip Services Site) and one in Indiana (Lafayette site), with management not currently expecting either case to have a material adverse effect[137](index=137&type=chunk)[138](index=138&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=Item%204%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not Applicable[139](index=139&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%205%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Wabash common stock trades on the NYSE under 'WNC', maintains a quarterly dividend, and authorized a **$150 million** share repurchase program in August 2021, with **$136.1 million** remaining as of year-end - The company pays a regular quarterly cash dividend, which was reinstated in December 2016[141](index=141&type=chunk) - In August 2021, the Board approved a new three-year, **$150 million** share repurchase program, with **$136.1 million** remaining available as of December 31, 2021[146](index=146&type=chunk) Share Repurchase Activity | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Amount Remaining Under Program ($M) | | :--- | :--- | :--- | :--- | :--- | | **Q4 2021 Total** | **655,128** | **$17.88** | **649,630** | **$136.1** | [Reserved](index=33&type=section&id=Item%206%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%207%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2021, Wabash achieved a significant recovery with **21.7%** net sales growth to **$1.80 billion**, improved operating income, and executed a **$400 million** debt refinancing, though operations faced supply chain and labor constraints leading to **$7.5 million** cash used in operations Consolidated Financial Highlights | Metric | 2021 ($M) | 2020 ($M) | % Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $1,803.3 | $1,481.9 | 21.7% | | **Gross Profit** | $196.5 | $159.8 | 23.0% | | **Gross Margin** | 10.9% | 10.8% | +10 bps | | **Income (Loss) from Operations** | $33.5 | ($85.6) | N/A | | **Net Income (Loss)** | $1.2 | ($97.4) | N/A | | **Diluted EPS** | $0.02 | ($1.84) | N/A | - Net sales growth was driven by a **23.9%** increase in new trailer shipments and a **23.3%** increase in new truck body shipments, reflecting stronger market demand[185](index=185&type=chunk)[186](index=186&type=chunk) - The company recorded a **$28.3 million** non-cash impairment charge in Q4 2021 related to the discontinuation of certain trade names as part of its rebranding initiative[197](index=197&type=chunk)[253](index=253&type=chunk) - In October 2021, the company refinanced its debt by issuing **$400 million** of 4.50% Senior Notes due 2028 and used the proceeds to redeem its 5.50% Senior Notes due 2025 and repay its New Term Loan Credit Agreement, resulting in a **$9.1 million** debt extinguishment charge[204](index=204&type=chunk)[210](index=210&type=chunk)[346](index=346&type=chunk) - Cash used in operating activities was **$7.5 million**, a significant decrease from **$124.1 million** provided in 2020, primarily due to a **$94.5 million** increase in working capital as inventories and receivables grew with higher demand and supply chain constraints[239](index=239&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=55&type=section&id=Item%207A%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages market risks from commodity prices, interest rates, and foreign exchange, with a hypothetical **10%** commodity price change impacting COGS by **$13.0 million** and interest rate risk tied to **$33.0 million** in floating-rate debt - The company is exposed to commodity price fluctuations for materials like aluminum, steel, and lumber, managing this risk via fixed-price contracts and derivatives, where a hypothetical **10%** price change would impact COGS by about **$13.0 million**[267](index=267&type=chunk) - Interest rate risk is linked to the **$33.0 million** of floating-rate debt under the Revolving Facility, where a **100 basis-point** change in rates would change annual interest expense by approximately **$0.3 million**[268](index=268&type=chunk) [Financial Statements and Supplementary Data](index=56&type=section&id=Item%208%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements and Ernst & Young LLP's unqualified opinion on both financial statements and internal controls, detailing segment realignment, a **$28.3 million** impairment charge, and debt refinancing - The financial statements were audited by Ernst & Young LLP, which issued an unqualified opinion on the financial statements and internal controls over financial reporting[274](index=274&type=chunk)[275](index=275&type=chunk) - The critical audit matter identified was the valuation of goodwill due to the significant estimation required in determining the fair values of reporting units, which are sensitive to assumptions like discount rates and EBITDA margins[278](index=278&type=chunk)[279](index=279&type=chunk)[280](index=280&type=chunk) Consolidated Balance Sheet Highlights | Balance Sheet Item | Dec 31, 2021 ($M) | Dec 31, 2020 ($M) | | :--- | :--- | :--- | | Total Current Assets | 529.7 | 545.8 | | Total Assets | 1,107.1 | 1,161.5 | | Total Current Liabilities | 289.3 | 235.8 | | Total Liabilities | 781.5 | 756.6 | | Total Stockholders' Equity | 325.5 | 404.9 | - Note 5 details the **$28.3 million** non-cash impairment charge in Q4 2021 for trade name and trademark intangible assets due to the company's rebranding initiative[329](index=329&type=chunk) - Note 19 explains the realignment from three former segments into two new segments, Transportation Solutions (TS) and Parts & Services (P&S), effective September 2021[418](index=418&type=chunk)[421](index=421&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=89&type=section&id=Item%209%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[430](index=430&type=chunk) [Controls and Procedures](index=89&type=section&id=Item%209A%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2021, with no material changes during Q4 2021 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2021[430](index=430&type=chunk) - Management assessed the effectiveness of internal control over financial reporting based on the COSO 2013 framework and concluded it was effective as of December 31, 2021[434](index=434&type=chunk) - There were no changes in internal control over financial reporting during Q4 2021 that materially affected, or are reasonably likely to materially affect, internal controls[431](index=431&type=chunk) [Other Information](index=91&type=section&id=Item%209B%20Other%20Information) The company reports no other information - None[443](index=443&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=92&type=section&id=Item%209C%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) This section is not applicable to the company - Not applicable[444](index=444&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=92&type=section&id=Item%2010%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the company's definitive Proxy Statement for its 2022 Annual Meeting of Stockholders - This section incorporates information by reference from the company's definitive Proxy Statement to be filed within 120 days of fiscal year-end[445](index=445&type=chunk)[446](index=446&type=chunk) [Executive Compensation](index=92&type=section&id=Item%2011%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive Proxy Statement for its 2022 Annual Meeting of Stockholders - This section incorporates information by reference from the company's definitive Proxy Statement to be filed within 120 days of fiscal year-end[448](index=448&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=92&type=section&id=Item%2012%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of beneficial owners and management, including equity compensation plans, is incorporated by reference from the company's definitive Proxy Statement - This section incorporates information by reference from the company's definitive Proxy Statement to be filed within 120 days of fiscal year-end[449](index=449&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=92&type=section&id=Item%2013%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the company's definitive Proxy Statement - This section incorporates information by reference from the company's definitive Proxy Statement to be filed within 120 days of fiscal year-end[450](index=450&type=chunk) [Principal Accounting Fees and Services](index=92&type=section&id=Item%2014%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the company's definitive Proxy Statement - This section incorporates information by reference from the company's definitive Proxy Statement to be filed within 120 days of fiscal year-end[451](index=451&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=92&type=section&id=Item%2015%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements included in Item 8 and provides an index of all exhibits filed with or incorporated by reference into the Annual Report - Refers to the Exhibit Index for a list of all exhibits filed with the report[453](index=453&type=chunk) [Form 10-K Summary](index=93&type=section&id=Item%2016%20Form%2010-K%20Summary) The company provides no summary in this section - None[454](index=454&type=chunk)

| --- | --- | --- | |--------|-------|-------------------------------------------| | | | | | WABASH | | | | | | Fourth Quarter 2021 Earnings Release WNC | | | | LISTED | | | | NYSE | 2 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 future events. All statement ...

Wabash National Corporation (NYSE:WNC) Q4 2021 Earnings Conference Call February 2, 2022 10:00 AM ET Company Participants Ryan Reed - Director, Investor Relations Brent Yeagy - President and Chief Executive Officer Mike Pettit - Chief Financial Officer Conference Call Participants Felix Boeschen - Raymond James Justin Long - Stephens Mike Shlisky - D.A. Davidson Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript a ...

Wabash National Corp (NYSE:WNC) Q3 2021 Earnings Conference Call November 9, 2021 11:00 AM ET Company Participants Ryan Reed - Director, IR Brent Yeagy - President, CEO & Director Michael Pettit - SVP & CFO Conference Call Participants Justin Long - Stephens Inc. Joel Tiss - BMO Capital Markets Jeff Kauffman - Vertical Research Partners Operator Good day and thank you for standing-by. Welcome to Wabash National Corporation Third Quarter 2021 Earnings Call. [Operator Instructions] I would like to hand the ca ...