WNC - Earnings call transcript Q2 2019 | Wabash National Corporation

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Operator

Good morning, ladies and gentlemen, and welcome to the Q2 2019 Wabash National Earnings Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Ryan Reed. yours. is floor The

Ryan Reed

Financial Good call. and Brent With Executive Taylor, and Rusty. before of us get we Yeagy, for on Chief started. Chief Jeff and this me Officer; A morning, you, couple thanks items everyone, joining President Officer. Thank today are

also any available release, note presentation the that I'd supplementing is non-GAAP out all point today's being call please to ir.wabashnational.com. that and reconciliations, slide at are First, recorded. call this like our earnings

earnings our disclosure in for X the statements. harbor Slide to refer safe deck statement company's Please forward-looking addressing

please it to us I'll and now hand over his with X, ask gets that Brent you refer as highlights. Slide started

Brent Yeagy

Final the Good to reached an building second van grew saying focus everyone. as our morning, million on non-dry versus to led like portfolio. all-time we're Wabash stronger same business high businesses. we Ryan. quarter the Products at report begin the by strong pleased our Products was year $XXX quarter, an more which by and during last quarter. Both Thanks, and that in resilient Sales I'd Diversified our continued even continue performance Mile

and address previous performance. of deployment level Wabash through pressures combination years the financial actions Wabash Management commercial the cost of sustainable periods in to operating achieved and create highest in experienced as breakthrough a well operating accelerating operating at margins two as to system

emerging, required believing, additional systems we Results Over we necessary drive people now year, plan, the business execute and resources started. and just to and getting and powerful that those past systematic the we are performance. are taken in manage have focus are committed enable change how steps

strategic detail each performance more of of the our business individual I will now give units. on

second the $XXX of business million quarter high Products second XXXX the from unit in Mile Final topping XX%. by the Our previous quarter, revenue of delivered

Mile on of bringing business Wabash We growth in business late XX%, board Final pace The the the our well initial beyond it have legacy our Supreme XXXX. since by expectations. in segment remains to grown National

of come X.X%, as managing of with are the We that pleased work costs with the also they as expected as quarter operating normal pressures and high levels through margins growth. integration business's second well

We are the broadening Mile force business of enable and structural into Final integrated that Final a Products within Group building Products Supreme focused profitably. and the on the improvements strategic continuing the and while logistics grow to Mile beyond implement to broad clearly Final Mile world distribution, transportation,

of structural We in safety management as of the culture An witnessed of commitment improvement trust of Products which every be area safety the and a example leading Mile positive the indicator performance, and operational also Final integrity overall in employee. to system their is we can value of change. that well-being within believe

in of with the values espouse. slowdown We overall in incident rate our OSHA have putting improved our XXXX in by we first organization momentum this no as people part XX% recordable and living

I move share Diversified will Products highlights. Group now on their our to and

of earlier line Diversified Group AVTE this top Our delivered year. growth, our revenue solid losing from divestiture the business despite Products

margin operating our the like and team in years the in for highest of points QX X basis X.X% I'd XXX delivering to commend margin DPG a operating above Additionally, XXXX. entire quarter, a

and manufacturing. product elements velocity-based team past operations specifically of of embraced a is lean the performance reflects deploying standardization, actively Wabash design that enhanced of elements has quarters the and and DPG's X planning System, the Management the sales

of their root Management are initial look excited have and as DPG system. positive their implementing visible. these continues to taken journey sharing are future Wabash the changes results We forward We results

line markets product quarter of levels This performance prior location. growth achieved within the the for of expectations. quarter. business, XX% of Kentucky and top outstanding the was an reflects highlight performance in assembly our commitment platforms high versus to in Trailer in Now growth our our year's team, our Products. all revenue with Commercial case Trailer Commercial line in delivered which specific revenue the Products A

challenges operating of efforts with QX margins cost successful CTP and in were Overall, in line faced XXXX. previous year, QX the QX counter to of reflecting

overall have calendar to at representing second last strong National backlog, the order versus continue X% outlooks. quarter strength also other Wabash the We in and which the while Wabash remainder for same effectively backlogs maintained our is an billion, of ended period CTP year. businesses increase $X.X the booked year,

not have within increased While remain the in order broader the and levels. order cancellations have phenomenon, same experienced recently, may cancellations industry we normal our

operating To the tackled put second and as seen weighed last raw months, challenges the quarter financial our second labor headwinds, X we've results of company's during material that XXXX. disruptions we of on context the improve the results margins the in quarter supplier

to stability QX business improve of recover operating the XX consolidated across in XXXX. National points quarter, systems offset have supplier margins Wabash us actions and Our allowed challenges expand margin by versus a price, transform strong experienced our and to basis

allocation. to capital now Moving

which repaying quarter. Our in have debt, acted we on the primary focus on remains

We business. capital have grow also repurchased shares maintain the our and funded funding and to continued dividend, expenditures

of capital the further our of current core our shareholder continuing balance capital allocation to deployment strengthen while forward, remains Going cash deliver strategy. sheet, to to return

hard mission the progress perseverance to our our stronger, eagerly and more We've look a road made diverse create We and I'd Wabash tremendous to tackle ahead every to continue thank like Wabash and and National. XXXX, employee their company. powerful to work, in for dedication

address I will XXXX. our now for outlook

a space, broaden consumer customer macroeconomic and we growing such Final the for and diverse the distribution and continued GDP, relationships We performance serve we for confidence XXXX. retail how see demand and U.S. The of fundamentals Mile basic remainder as Mile continue transportation, production logistics markets. improve expand as the supporting industrial to positive outlook robust been in the have sales, related products delivery relative Final to

and Tank had Demand within CTP, strengthen for the of the largest of business, Products runs the overall to customer experienced its within Trailer the their demand has remained continues DPG remainder full remains sentiment for its the the not visibility business calendar with broader realized cancellations Again, XXXX to strong backlogs stable. been year. and in in products market year for Trailer end unit. Commercial in

operating performance our during per are increase $X.XX. XXXX strong earnings our by midpoint adjusted revenue to guidance Given second quarter, $X.XX, for to pleased we share raising full the year and the

also tightening year We from EPS to our full raising $X.XX guidance and are $X.XX.

At earnings the midpoint the of of range, would per XX%. growth demonstrate share we year-over-year approximately

entire a focus implementing we that our our the balance financial As year we portfolio remain to positioned more strong Wabash earlier future, forward sheet, relentless and our XXXX Again, diverse we look System Management very this of future. and were our on look to meet to our expectations with our well powerful communicated corporation. businesses across

ask financial I'll both performance Jeff that, the our outlook. color provide third With on additional to second Jeff? and quarter quarter

Jeffery Taylor

Brent, good Thanks, morning, and everyone.

a On high on Slide was million, end a quarter an consolidated basis, start came XX,XXX $XXX Consolidated as Let's well quarter. in demand second of of $XX new prior increase within were during units at strong trailer Products Revenue revenue year-over-year. Mile -- I'll shipments guide our of as within Diversified approximately X.X% the Final result customer the million X. Products. or as growth

average our year. increases were the guidance quarter a revenue midpoint of our we selling prior cost While increased prices end from was manufacturing high of the guidance, recovered at as as have of the new at result trailer shipments second

non-trailer Additionally, as the Diversified well strong as Products revenue both during Final quarter. Group Mile Products, contributed

of XX% operating sales. execution points and for compares and cost for profit margin of XX by adjusted as to diluted $XX an System operating well structural consolidated the In as represents over of the the of gross stabilize to share long-term quarter. prior during quarter Management of million results, company of generated was as The quarter of improvements. Gross XX% $XX the million increase second margin second a base, increased of successful income XXXX $X.XX year-over-year operating the the year pricing X.X% company's terms the result supplier efforts quarter. per or share basis balancing per of earnings This Wabash

term SG&A second the Interest consistent the offset our second prior million, of amortization loan sales, as second seasonally for full $XX than for Intangible year expected convertible bond our the or quarter a of line the debt year somewhat over million of with of our million, roughly second slightly sales the expense the by period quarter was amortization approximately the prior floating was or revenue $X $XX our percentage modest X.X% during the to higher totaled the of decrease was for with in expense quarter. was quarter due Operating debt. expectations. $X.X partially quarter stronger and quarter rate year a which retirement interest lower in on sales. result the EBITDA for excluding of million XXXX, X.X% the

anticipated than second the tax expense discrete slightly $XX.X effective We lower of as XX.X%, recognized in tax rate of a income quarter, items. was the result million

XXXX $X.XX was per per quarter. the $XX XX% net EPS compares the quarter, GAAP represents quarter year for diluted This or share. and prior of of over diluted adjusted to of an share increase Finally the $X.XX income million second

move to Trailer segments. Let's Slide look on X, at Products. Commercial the

on which XX,XXX million $XXX units. shipments Second million, trailer sales represents were $X.X decrease X.X% net a new quarter or year-over-year of

tank and product mix. points margin Diversified XX to business. for in per as sales to by price, selling and Group, million on average a well prior of of X.X% primarily actions prior Commercial XX%, margins Products operating quarter, or year compared and primarily Products mitigate increase the gross pricing operating year selling $X.X driven the the in was of period X, net to trailer customer million, XX.X% and more produced second than by of Process as costs. prices Operating increase period, impact growth New material ASP, higher year-over-year Trailer average and due Slide our $XX unit $X,XXX respectively. or an down basis Systems increased recorded over shipments trailer the

Products year X.X% margin operating by System. and growth Transportation and percentage quarter. divestiture Management as growth. business mid- and the the but in product margin Diversified the As to a factors, Aviation Diversified to point single-digit improvement was Products also basis initiatives mix the which of Equipment Wabash -high as of generate such The drag was XXX of and on XX.X% made rate implementation driven of year-over-year second cost, margin to on progress compared to in Brent during a of price successful prior DPG's solid tied despite mentioned, gross period longer-term represents point operating revenue the mid-January, posted able the

were a higher mix, product year employee-related basis point advantages Net the last for operating margin versus driven second Final X.X%, Mile and the for market amortization same operational FMP's quarter margin $XXX the and second result technology ago appreciate costs customers XX.X% versus same Gross The expense quarter of in million, quarter operating a as and year. contraction the respectively. and quarter XXX truck who was higher by the demand the to sales from market. conditions as strong well X. brings Slide body Wabash totaled products,

Slide to of X through shows free income via cash invested on the converted a approximately With of cash has million million million, walk second flow year-to-date XXX% $XX conversion $XX flow year-to-date been free of at which expenditure, roughly quarter. $XX leaving net the flow, capital operating basis. cash

sheet on strategy. Moving capital allocation balance to our and

plus capital regard capital to XX% million liquidity $XXX the loan borrowings June or as in deployed was XX-month we cash of Our $X.X or term available million invested With reduction on quarter, million projects. allocation for trailing debt the during of $XX XX and revenue.

under remaining from the repurchase up quarter, shareholders payable. finished authorization. dividend the million. of we prior $X.X share capital repurchases Additionally, of a approximately of accounts $XX in $XX.X million a about the million working result via primarily share $XX $XX.X At quarter as million million of to payment returned quarter, had the end second the quarterly and decrease of capital Net our we

quarter X.X% and for trailing with second ended Working finished ratios respectively. gross the and debt capital We X.Xx, at at revenue. leverage the net XX-month of quarter X.Xx

outlook our to on with X Moving Slide for XXXX.

remains consistent guidance. with margin prior for our outlook Our

slightly continue XX a expect X% points expected SG&A XXXX. of full to improvement. to XXX gross between to percent in We above year as be margin of XXXX basis is revenue

year XX%, would tax lower rate effective first approximately each remaining given of quarters to bring the the tax full approximately the which estimating tax to half. rate effective rate be our currently are to XX% effective for during XX%, the We

previous XXXX to pipeline year is identified continue to be our product business XXXX $XX as support In productivity to capital the Full and across million. expected estimate and be we we spending $XX total, commercialization new segments. compared spending to million capital between higher in of projects years

of we With are full the are guidance we financial also the to that of business X mentioned, Brent year to Final of our seasonality, the Wabash quarter. into to $X.XX raise As year significant $X.XX due seasonality portfolio, business, to in heading books, has quarters profile as we this clear be in and part to influenced outlook full Mile margins down normal able National sales a pleased quarter. of EPS $X.XX now by performance a by EPS addition been it's our second and step the the a to in With to expect narrowing our midpoint see the range result strong third our $X.XX.

third million shipments to $XXX of $XXX quarter for in new between million is expectation Our XX,XXX trailer to revenue XX,XXX with to units. come

on total company Moving profitability. to

with expect on operating the year XXX margin of basis increase the basis pleased and we're to XXX We to improvement. XXXX. longer-term to performance strong year-over-year points is of operating In to third combined progress as of the summary, start from margin remains demand our quarter generate short-term third with the in XXXX robust, points range initiatives in quarter the

cash our balanced business to proceed invest We allocation our that and and while generate maintaining debt continue strong to strategy payment, with free we'll in dividend. capital prioritizes conversion, flow continuing the

laid Day, we out As the longer-term for at opportunities. our we're excited Investor

building and communicate look XXXX more financial company. resilient We We achievements, have throughout appreciate to for on having to on our National executing strategy to and beyond. and our interest forward a on support the becoming Wabash goals continue and stronger, your opportunity further progress our

call to and Thank it now back up you. turn for the we'll I'll open Rusty, questions.

Operator

Instructions]. [Operator

comes Long of from Stephens. question from first line Our the Justin

Justin Long

the quarter. on Congrats

Brent Yeagy

Thank you, it. Appreciate Justin.

Justin Long

little start, to came noticed a maybe XXXX. that guidance for So trailer I shipment down bit

offset going trailer what And delivery the decline? since drove if what wondering, about outlook can that up went was within I more that that guidance the number? was despite EPS than shipment outlook could you the address revised down, you upwardly talk trailer weaker So to

Jeffery Taylor

Justin, shipment down on trailer We pull the there. the this is high I'll Jeff. those range. end comment of did X guidance pieces

of we did the effectively with of the that's the consistent in year. half and perform QX for for outlooks year I think consistent to the second continuing with the level at remainder

outlook we feel that's consistent this up point with as like to well. outside the with So we've what delivered and

that's it, perspective. terms In our year. business strong performance outlook of obviously, decision for maintained the in of full second half was profitability our overall, And a the the the from outlook to second for our included biggest our of performance we've the performance increase a quarter and piece

Justin Long

there expect quarter. on sequentially on third Okay. margin Jeff, segment level can the gave to expect margins, any of provide year? you color you color And Great. how you by the the over half some margins you in But is progress the back

Jeffery Taylor

be mix, across I units. then consistent will in individual the margins. some also in pattern quarter, seasonality consistent Final direct see and then to will think they you'll of half generally -- QX. And segments second once there years, pull X times is where seen perform second a you if impact again, the the exhibits generally They to they're few because CTP their with have channel performance of the QX and it seasonality, going behavior. is continue some seasonality are. have over back higher slightly we've mix with business And strongest in in which coming DPG Mile at slightly similar of the the year, will Products past them

feel quarters. the for we've we the and very for what next given consistent businesses So with like past expect the that we two is performance guidance

Justin Long

quickly, on today, leverage thoughts mentioned And year? ending where you next leverage lastly, multiples then Okay, year? initial And leverage any of maybe at this updated but any end thoughts great. the on see on your you

Jeffery Taylor

have with We're in very leverage move business work to that our the to with continue leverage. decrease comfortable the comfortable We sheet want liquidity But our balance to we're is, we and on we'll today. very that. continue to also our where

But debt perspective, a something this an should we example debt from the at in time, think in want that at in full be year. give I end I this reduction manage. think at year this we to I that $XX be of time, you point and the our million point and reduction that is comment range, would million would $XX of to where the actively

Operator

of comes from Dyer from line Steve question the Craig-Hallum. Our next

Steven Dyer

of we're kind like order getting manufacturers we Just I books to as opened it forward closer. know XXXX, most but have not look curious, sounds yet,

color given are you're speaking, hearing into 'XX from what some is pretty where customers appetite that? maybe on Just generally that just around more with And up? booked you XXXX, well

Brent Yeagy

is Sure. Steve, Yes. this Brent. I'll that take one.

So over that half the order second in They're their we'll the I simple. order see in mid-September book why? of more what more the early traditional trailer And think book will through we we're mid-summer the -- then market. it's experienced the right the for we've of and in the of capital experiencing -- -- up to we're CTP, balance be. specifically timeout deceleration headlines, a the of as order now a book in to of years. business, to a traditional up the or open XX The start year, move taking -- XX level last just needs experiencing the understand see

to we to And off we we're to We see the of nothing going there. relationship know their surprising there's nothing ACT in move how peak surprising see market traditional up is again, the a we levels. we're line line think expectations. XXXX this experiencing There's, in the with Everything demand is So and period about that. that. in is lining to world world. more of with how And in FTR, our

These right levels in our now? In on are XXXX, market to to which relative specific it's their what a again, with it high their about specifically our Wabash reading we're down ability their operating maintaining active levels They're to not cash around of dialogue of stable They're just I I'll terms say, right now will our customers, purchase would relative talk still of exact margin. high hone expectations customers part. necessarily equipment. the are be. trying customers, that fleets perspective how still concerned larger are generation,

say line generally be, as with we in expect, we're and we So I'd it's what surprised. again, not XXXX to see

Steven Dyer

very my some as well, just, you're level. had indicated not the that's same And seeing cancellation the you then and you it other obviously, it, helpful, spiking one Got mentioned had Brent. in levels industry,

for due up is holding any line, color two, you, is specific yours, that it product a not you for around that what account do or as customer give curious, that of, -- to guys sort Just the better? to

Brent Yeagy

Sure. Well, the reflected entire we've little numbers. year, higher predominantly, of has And time Why dry really seen are affecting vans dry a their half that's there frame. industry broad I from think the out a a ACT trailer bit in general cancellations the in the first specifically tanks. some through industry, Well, a in that and little bit we'll June that's it's van, platforms rate refrigerating saying it, in in call platforms, of spot we and perspective. customers in that? phenomenon, smaller,

think that I of in that try And reset fall is costs. into a thing people understand market decided XXXX. higher as went you're XXXX a get the seeing their to that order our to other seeing you're needs as some of maybe be level as what that speculative competition in take well will material

in when prudent were at We I broad we it backlog. manner. was it's from more expecting of a off think our dynamic, to a manage standpoint, that industry manage sort So our but backlog much we that we how -- look

We the and base robustness medium-sized a the and CTP minimizes to dealer been of we designed plan traded part our the strength a we're small within order last the allows of over be have effect It's company. stable. portfolio manage back. X-plus happen. larger Our the firm of customer more positive differently pulling to customers exactly experiencing the always it's as which stronger, we've that what seeing publicly that And is created and the of years

short So and of I guess, that's the long it.

Operator

Our comes BMO. from of question the line Tiss next Joel from

Joel Tiss

Group chemicals or bit there? Like you are Diversified color where on if stronger? on can strength, I a little what's that a going parts the of it little little is wonder is color on just the the Products give a us

Brent Yeagy

major Products call we'll Group. look Well, X we our Diversified there's -- at that areas Sure. within

process Wabash have our and business our tank systems We trailer or Composites.

group So diversified it's that's and Products multiple a covers again, very the end Group. Diversified that it's markets why called

execute shopboard at I specific They at were a that of X strength strengthened the allowed margin, has only margin So from given, what I They've organization, margin and when point. parts. that generation not we but that would the all implemented that seeing all better. across across relative commercial dynamics of a has areas at think activity, execution System level this Wabash call, them we're all higher -- look the driving Management it to

and trailers sales together. is Group food margin fashion a their and costs planning standpoint within Now his reflection tank Systems terms XXXX. cylinders team has And put line level that in accordingly. has executed at understanding specifically from would Wabash than And better strength all that's of, Dave well translate that the higher market is Nick a executed our on the really pricing in in I driving the flow outstanding much within of has dairy an a growing top Dave specifically say, tank input allowed understanding in through, trailers they to of global what market very a that in and the Hill have to Composites and regard. executing in beverage Process operations

Joel Tiss

there look a to as driver big that's that I we of XXXX lot more over, Is that a goals. to guess, going business your fair? in Is be go

Brent Yeagy

levels Yes. Management as performance would the aspects implement opportunities say higher What the Wabash I System. drive have is of businesses of all to all our we that of

as We performance. have go increase a long we journey to

operating there's -- over be to the intent Diversified But and to of to opportunities this to our they on for the relative of it period perform discussion, grow least it and out they margin and of accordingly specifically seasonality, take grow exactly on those downs yes, some down at communicated going a to we them. target. fast to go But in with moving somewhat the -- advantage to same-same -- yes, the ups and front So we of the path unlock is they can how able will sake a opportunity continue the that organizations is be if that on continue narrow XXXX, volume have Products. would

Joel Tiss

then a of the behind remind just sort the customers the bit -- the call in you the want us structural last, it summertime. like of picture, big And dynamics you to whatever -- uncertainty the Can the age when big demand and the the the of X X from some a drivers -- the of look years, fleet kind and replacement of are structural out standpoint? kind you what what of to

Brent Yeagy

situation put that on can with happens they the on depending policy, all or if Yes. with things turn I'd down, election timing. be say, term, understand that's a say, more they negative of are a net And term, I can that, a fed, and to go, really impact. great odds reality, both, question. in global succinct around favorable, means. of we'll and I'm Vice way try near the of And any to These trade these not as very on to parts certain as can months, next obviously turn those I we're turn specifically. much an X A say what what to to going shape corner, say, the and somewhat how out, when candid, dime that's lot it that versa, and call how a watching depending on add I'm is to can. right would certain that now. years or let's just I'll those macroeconomic being a that's XX what out national near try be I harder up going

based better on us, to control do how today. be that's of We're going whatever we throws it. what our position do it we're than going able to we And at to kind the manage business it and market we

In change somewhere has the look, specifically to to that we business up shifted how it general in spec units. XX We're van replacement for fray, result. that versus see -- various call in the is we'll terms XXX,XXX of what that management from within as a We XXX,XXX be going above ago. today think we fleets going within to reasons, it that years in everything the asset-light the realities was

things the we So then some And continue on there. grow. are to there just think will going population

I a over shifted they young to cycles how age, Yes, we downturn, business a the but their last moderated the X manage result. of has by the have coming and out X again think a as trade that's years lot

pieces So the it. with those are big part of

dynamic now And necessarily we've the chassis business of right FMP off we're other that on proxy take from see continue our that's anything have could We that's why don't the account. called that's think within we that positioned going logistics, where you just the I asset And business, then accordingly. economic of models traditional and that going medium-duty That's this far to growth And everything bigger exceeds in that experiencing right output. the type change Final and grow diverge. to drive to going that distribution asset think thing we whole Mile. mix now -- to growth transportation, than into

hope a I given free that's ask So feel and follow-up if to needed. some color

Operator

Instructions]. [Operator

of from Jeff comes Kauffman Loop question the from line Next Markets. Capital

Jeffrey Kauffman

structural I CapEx on composite? give to was the what's I that come guidance little notice me down molded wondering, everyone. And you congratulations, an with going seem update a on did bit. did if can

if as is follow-up a guess, from? where I in with to going what's So coming a there on it MSC, capital was reduction spending,

Brent Yeagy

of molded phenomenon capital nothing capital want with planned timing would before I available that so resource composites. to It's deployment mainly just a was spending to in this the more point a from of do near There to Jeff, at in term how reduction has we terms project. little structural capital. say, nothing the deploy

going right, to in be So terribly I'm our not overall about it's specific plan, just a change it.

Jeffery Taylor

correct. That's

Brent Yeagy

is on the air initial right you real in we're pre-commercialization standpoint, our feedback now coming off-gassing, so road would tell testing. leakage, I have thermal is a We're end thermals list really it's has real X that's over and again validation demonstrated mean, the by still XXXX as No for and on The out path, of of the efficiency, molded into road a with From miles what composite structural the amount now, points I validation year. field of been significant this by terms doing million item. on expectations -- XXXX right, product exceeded validated on forth, in throughout so wish as various of the there.

time. molded application-specific be to that necessarily composite into making continue itself to that more the proving move design within the the done product, It's out of We only sure in phase, product that's we the and with not validate of a can technology refine the commercialization structural spades. designs base

amount we're road, the going to constrained necessarily day grows, we're of at not that the by and process, it to is demand. constrained meet Wabash National grow So the verification the change this -- to on within what how plays the requirements a being it Wabash product -- we potential design structural National positioned, is by and customer This at a that's being increase is for the continuing every going It's in a pace call, has to it. though, long-term which properly play. reefer of a market

a going gains. This for sake We investment, is short-term to and we're are acting of long-term fast go not the accordingly.

Jeffrey Kauffman

follow-up. Okay. And one just

the you term, mentioned your Tiss were Joel to answer longer in in You specs about seeing broader industry. term, changing how

in the curious, So is change weaker we I can seeing kind given we're starting environment? any are occurring kind how trailer specs slightly to in was specs, truck of just see differentiate versus you a structural of shift trailer what

Brent Yeagy

unpack to let Well, me that. try

businesses. Final to final Products and of Mile this one think I'm now middle moving mile. through with one that's is as to need not change well all These is This I X now ecosystem. that. understand first, because general, People set this with in different a X are bridge connected about when logistics phases, trailer specs, So disruptors going

that put back let's a to to it. side So I'll come second, the for

XX we terms dry downturn, X-year thing that that years cycles seeing on or started right? that cycle, coming real that 'XX, high to when terribly There of a asset different, industry, in in started about warranty engineered just right? in range, different the The of is and XX move methods change more would We've this accordingly, asset that from turns, is a XX-year out not going a more seen right? not across to are and took XX-year But that talking their replacement truck, to to but longer a fleets, that management board. one really play would towards group it's like in other Matching the specs, was of and 'XX change other again thousands that we we still that van, maintain year, thousands XXXX, Wabash, volumes. the of XX where pick trailers products saw XX roadshow X we're ago big out we that, spec, the the

change, that have -- as things and exactly values how their that to saw cycle coming out going So affects next figure these we kind due we're with to we through replacement of a X, the on also XXs, that And think when next coming going about into you a to XX have maybe life, will shorter be round XX-year going this you then period. cycle. to are

to lot of the is kind some uncertainty. in A middle there. of going going flush on out this All of economic

things side at are as on applications, to where like models the shorter higher got Product you've higher as on the that, FMP the Mile side, side -- and percentages, or of changes lift changing. we well logistic as disruption hauls, truck up are go and different popping the and top Final gates shorter both On

You're more seeing through is Does the assets, now. come in help? that specs flexible begin life in right terms underway different of shift in general, to real

Jeffrey Kauffman

was And fantastic. that Yes.

Operator

further no to I are this will there time, now back turn at call As Ryan Reed. the questions

Ryan Reed

for to Thanks, today. joining quarter. We'll Rusty. following look the And thanks, everyone, forward during us up

Operator

participation, conference. today's for concludes Thank wonderful have this you day. your and gentlemen, and Ladies a

disconnect. You may all

Wabash National (WNC) 1 Aug 192019 Q2 Earnings call transcript