Earnings call transcript Q4 2022

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Operator

Good morning, my name is Chris, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Wabash Fourth Quarter 2022 Earnings call. [Operator Instructions]

I would now like to hand the conference over to Ryan Reed, Senior Director, Investor Relations. Please go ahead.

Ryan Reed

you. Thank everyone. morning, Good us call. joining on for the Thanks With Executive Financial Officer; are Brent Officer. and Chief Yeagy, President and me today Mike Pettit, Chief

Couple we before of get items started.

addressing like is note Slide the release, X statements. refer deck all supplementing forward-looking any earnings recorded, this available please and presentation out for call in call Safe reconciliations First, I'd our our that slide Harbor also the to non-GAAP to today's earnings at point that Please disclosure being company's are ir.onewabash.com.

I hand to Brent. it off now

Brent Yeagy

Good morning, today. Ryan. everyone, Thanks for and joining thank us you

on Because the another we're this juncture wrapping conditions. how midst top bright an up in of company with our our market year where to record a prospects, starting recall performing record strategic while time arrived feels very and well like quarter of ideal we've year, at very is freight it a soft calendar review choices

added our enabled capability the several the to maybe critical importantly, company that has years, or as and chain distribution my current who trends legs the positioned The by performance. to allowed were logistics in me to the e-commerce surround in get only transportation, models and those to team logistics Rewinding Wabash bodies and our Wabash addition closer of cold decisions like still power to portfolio broadened I customers and CEO. product we've also, caused growth part rapid and trends last and and classes the role delighted am to in new support disruption of home more that across truck have brokerage. delivery, perspective grow serve to that stool in

months. of over that to to commercial and siloed services. progress made model suite taken the brought journey we've XX evidenced organizational customer-centric doing has of This by our across business model ease us has Our our customers, last us the product-centric prioritizes closer products a approach from a

The process to of find given solving the us the a was deployment philosophy the in ourselves required dynamic we System meet of problem has and that driven challenges Wabash today. Management culture environment

from a engagement of our tools construct, recurrent of key use the supply new agreement has improvements One the system vision our revenue been process rapid deployment long-term chain the management initiatives. and generating of derived of

modification with The our transparent pricing pass-through our model to serve of customers construct us a pricing. to better allows

construct under Our forms unworkable construct. the longer-term for which price a improved also groundwork our agreements would have fixed pricing been

capacity customers needs to be demand prioritize agreements their planning. multiyear longer-term our equipment collaborative to engage to in for able These conviction around forward

these table, game inevitably for Beyond strategic efforts from jointly customers collaborate annual on seat removing strategic the of these at a needs. equipment unmet address are without and additive be the as to we will chairs some product development relationships musical R&D left customers

organization an We very innovative pleased are partner. have as Hunt like JB our inaugural to

As to major relationships attention we demonstrate the suppliers. of structurally industry with the improve successfully have customers, key visionary attracted leadership required we

strengths the in making support agreements supply customers. Wabash aligning with respective to combine and Hydro with Ryerson us are XX-year order moves recognize our suppliers show, As is our and both to our

excited venture more focus strategic to spinning a transportation for for communities, service service Wabash initiative. is As joint our - and and shareholders will innovative synergistic act our potential leverage Quickly continues trailers our business our space, streamlined to only customers, our to the recurring Parts, revenue new to mechanism grow developing organization the like as for for support structure equipment. this value we're power major offerings distribution brokerage that parts its parts a more as create a collaborative up

Vista logistics, Broberg, that pharmaceutical operations and served Trent Director. tech, organization Australia. the Board industries all of will with us for directors consumer finance in edition pace strategy roles has of support in retail, We're supportive by new of been has Directors. evolution Board and continued incredibly in U.S., experience September capabilities serves Financial the goods Wabash adding Asia automotive the Directors keep Priyadarshi Keurig global our Walmart, Board and excited PepsiCo. Our with Pepper to at welcome the contributions and driving and Outdoor, Cipla with Flexport, the e-commerce, in continue packaged Board Mr. as our Acertus, of CEO further the support newest forward He a platform, After of an Chief as our extensive leader and previously Sudhanshu Dr is of with direction. Officer our to Priyadarshi logistics-as-a-service currently strategic of and

our onto Moving the year expectations $X.XX, performance, pricing, Between improved the which for increased to same all-time XX% and last the volumes EPS of record delivered our increased quarter. our team record million. quarter fourth quarter revenue from of financial $XXX exceeded an

out sequentially we as and like basis call XXX by margins continued gross Profitability to same to X.X% that the also points operating I our quarter strengthen year. achieved to XX.X% relative margin. last expanded operating margin

$X.XX. performance strategic of a $X.X through at. XXXX whole, and any financial performance enhance revenue to you choices improvement we've by demonstrated shine as For billion We're encouraged record I very capped look financial can EPS across of believe record indicator as of our

Moving and onto our conditions market backlog.

been freight rates of We markets. that ongoing are indicative in the freight mindful of correction have

to and rates this For numerous likely demand. not reasons, in that agree is forecasters reduction demand Between cyclical impact have influences, we trailer remain third-party structural strong. underlying equipment seen we with

substantial factors trailers into or structural those and demand demand chain of trailer in the consider alone. under just pools from activity year buys to years still of in we brokerage, significant like technology this implied scarcity XXXX, remains supply that's to formation power marketplace, advance. as hook for With constraint tailwind a before remaining is influences and drop the and would on autonomous likely support another coming as Adding we supply very only prior specific outstrip ramp be the to what from believe continues that for

at the agreement end an not until approximately agreement This a implies from billion figure. revenue. January, despite ended backlog, QX backlog of sequentially this for our reflected record of announced our $X.X total approximately announced quarter during Hunt are to in by additional transparency be billion, of outflow Turning the full inflow long-term with order to $X.X fourth up billion net QX. bookings JB although and $X.X And

the next of multiyear adding Given the expect portion of addition orders, months. we ship we are the backlog disclosure our within on to XX

million was reside Ending which QX, orders of the backlog somewhere implies that billion subset our $XXX beyond of of XXXX. range that in worth $X.X

we of Given range to EPS billion of the for provided are a we revenue no a as operating we visibility the where that outlook achieve reiterate to $X looking backlog, generation are $X.XX chain shows with $X. can our excellent income like EPS $X.X and XXXX at by supply an range improvement. financial if our I'd and even XXXX year revenue, initiating billion significant

outlook conditions our As improve. supply our do chain backlog to indicates, upside if have the we

we to well XXXX. throughout new performance on positioned while business. by With and and in day-to-day incredibly reiterating to organizational trusted the fundamentals XXXX testament like of comments pace on record This is and of level evidence business improvements our strategic my set margins, conclude executing a for the during backlog excitement a my of we've bar moves Wabash to to that a I'd are driving our of and in structural progress team for great has engagement the is our strategic of abate the able been achieve. execution who financial

Mike hand that, comments. With I it for his over to

Mike Pettit

Thanks Brent.

shipments Starting a XX,XXX and off revenue and trailer a On of our quarter new quarter fourth of with with basis, results. body truck was review million respectively. fourth financial X,XXX, consolidated $XXX

company. the As generation Brent mentioned, this another quarter yet was for record of revenue

XX.X% that ramping at really the XXX the its chain our Gross margin margin respectively. structure of X.X%. represents hit half XXXX of stride quarter while reduced was during cost feel margin and came operating and year-over-year sales surprises stabilized. during second We of points, basis facilities as inherently This improvement supply XXX in

$XX.X fourth year. or the the EBITDA of the a XXX prior which XX.X% Operating sales, for is improvement versus basis million quarter of was point fourth quarter

share. $XX.X per income for the or quarter, net million $X.XX Finally was diluted

$XX of in call sales. growth XX% From a a Parts our to supply Services was when Solutions $X.X from net of sales. that segment was million a million, by $XXX I'd to was divested million was for continues of revenue Parts income inventory chain flow the segment quarter of operating as operating revenue cash adjusting and able Services to more of the XX.X% perspective, fourth XX% business & levels about strong or $XX.X & in income supplemented revenue strengthen. we operating million the in generated year-over-year $XXX lead generated and out our of million like are Transportation inventory mid-XXXX. income Year-to-date, efficient or as

our CapEx that our from disbursed XXXX the reflected expectations XXXX will on CapEx expansion Moving and our underspend to to payments expenditure, from spending. timing XXXX relative capital be in dry for XXXX van to some

to As XXXX generation I've cycle. capital during through cash to by be free on a flow take mentioned, it's XXXX, continues a strong our important think relative ramp followed the in cash view generation longer-term meaningful significant what in flow to I working

generate our Wabash exceed that a company with is over opportunity ROIC of historical of capital the our not committed cycle That said, when significantly are in investing is that significant I healthy cost cash maximizing long-term free annual also presented the exceeds build. both also best interest delivering the to business performance. to but that purposely flow believe measure the the of in simply returns but

sheet, in in as the which million comprises exist, to are the next CapEx X% the end balance and of couple revenue now of organic opportunities result, where see quarter. was of a percent years. over period liquidity we of and a the borrowings With to range as of We would investment both our to X% as regard accretive our expect cash of a revenue $XXX available

to Turning allocation. capital

$XX fourth the repurchase $X our paid of $XX in million dividend utilized projects, quarter, shares million. capital quarterly to million invested we and During

returned at million year, $XX.XX $XX million we an of $XX share For our dividend. average the a for via invested and price to repurchases in share shareholders $XX million CapEx,

allocation via prioritize As M&A. while our alongside focus maintaining capital growth spending, our for organic also stated dividend share opportunities repurchases to continues capital of earlier, and

$X.X financial $X.X remaining we expectations midpoint fill guidance This significant expect revenue billion. supported of Moving our ongoing allow. by backlog with for constraints our in production to while billion $X chain reasonable our outlook activity of a the supply for onto billion will XXXX, is

of also Ryerson production equipment ramp begin Hydro. van dry in from production we installation to our half lower and our announced later benefits the in that track addition. and expanded volume additions, capacity efficient and supply first on with complete agreements a system will are with significant will capacity come then of sale Like the rates become this the in QX all see and recently more We greater year XXXX of support as volume

midpoint supply the $X at From X.X%. in with to operating million of $X.XX or an that perspective, generate we a $X.XX expect to guidance outlook per to chain to continues reiterate I assume EPS This that per income share. continue share our persist. constraints to of resulted $XXX an like midpoint

enforce chain and opportunity supply As XXXX backlog Brent believe is conditions mentioned, improve. that clear we financial to our our should upside outlook, there

We within also of generated look forward Services to segment another & our Parts operating margins. growth which year accretive strong

as that capital $XX be planned between pushed $XXX spending van QX. million to EcoNex our QX dry of a result from expect mentioned the expenditures expansion to We previously as payments well XXXX van expansion, capacity expansion as and from million dry in

CapEx also revenue immediately our We invest program. expect trailers will service in generating be through that to

a not earmarked as guide, With continue than small we out to in the to trailers of using and sheet XXXX, way for CapEx take in half we finance ongoing for first of will traditional bites is call million evaluation the less this $XX best Our balance our but transparency. service of included expect the separately short-term. at to our the expansion

In everyone I and van that seasonality the be quarter would revenue will in this capacity. lowest typical to cost to QX be new generation. is terms for our XXXX, like remind ramp our of to compounded dry by it EPS

expectation for $X.XX per Our $XXX be EPS revenue share. quarter and and between is for million $XXX to between $X.XX million to come in and the first

$X.XX XXXX team Wabash a was pivot year generating for Investor and our and XXXX. I margins XX% financial to a remarkable step another This we record efforts out laid take our like in EPS for took EPS. revenue, those significant XXXX goals and excited in XXXX to as of we step also targets in share $X financial in of achieving meaningful Day, EBITDA We're billion their our sincerely our thank revenue at accomplished point a target major XXXX.

reaches transformed beyond. More and XXXX representing that by importantly, rebranded as by and that industry inspired took to the the and our giant We cultural our in purpose in the world faster that first to final enable change team is is unmatched Wabash a move team even leap how mile XXXX our to transformation powered driven in portfolio company, a and entered a you. us will

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

Operator

[Operator Instructions] from Our is Long Justin with first Stephens. question

Your line is open.

Justin Long

think were agreements with a you had look this how quarter these and of to So about two the much was reflected collectively, the a help JB announced made comment customer talk you sounds the might way of long-term two? some Obviously, backlog maybe about like if But contribution we the about at Brent, LTAs that with point. Hunt, hear that and the you've backlog you was first us maybe those momentum some there additional another to at one to beyond is could start agreement there it more that to the agreements. about with in

Brent Yeagy

about possibly in XXXX us meet enough overall about in XX% as ballpark capacity a Yes, you of as somewhat XX% what within with that in backlog. we're requirements. through our that When to full you that gives backlog And in and thanks being for, XXXX shooting room we the of Justin. growing and have and supply general think gives if looking go still far of our we're plan the and XXXX other customers' agreements, long-term be our vision, gains,

and of reported of our can in the terms generally as extrapolate in thinking I it it 'XX. what a In add 'XX that you backlog frame just you into and would is see about reflective substantial QX backlog,

Justin Long

I'd backlog, more do with guess on get to going Okay, helpful. to getting comment momentum And XX% these close get to customers to first you are on two that. other to do back to front? the that's need additional color. of or LTAs additional in that the this that I order love LTAs

Brent Yeagy

in two demand have dealer to do what dealers of of going ongoing and then half to conclusion long-term conversations we're We'd coming And at XXXX. of love the body fulfillment we customers can up at the to to be well that are to forward. their an would with pick that concept to we least more and like looking positioned those also take market expand the especially advantage around our first

Justin Long

helpful. guidance up bodies give shift year, service? and key next maybe any you what million at at the for $XXX for when components of midpoint, growth relative color it's the you're Very can revenue the us one growth versus And and Mike, last versus I'll revenue that truck my about I look parts on to maybe additional expecting for trailers

Mike Pettit

Yes.

in and in see well. history business can I as tank say, part going streams on seeing the in In from value point, significant our the revenue talked that is growth the So trailers, trailer I XXXX in Wabash, about but growth We're long-term van like would we our side traditional we're agreements, best tank to dry of XXXX important also truck some about. business we're our of first which an believe in foremost, be growth some year across board. for seeing body less it's talked some the

board repeatable services the to but expect in more across about in growth parts and and would services Transportation all we're we do about. a and believe the the is we are are extra magnitude from revenue was it it provides we'll 'XX it going generally streams in excited very and and remarks, that we what 'XX, on front. do is XX% Solutions that We we growing, grow same really profile value to as the to and And of synergistic excited recurring, see 'XX similar I really see what saw my so mentioned parts in which 'XX to we're

Brent Yeagy

I is provide just reiterate focus. where management line parts pruning have the of forward. to us top more that we focus to want to and all and that now. have Results the and extreme improvement, system get that, that done area there we show we on is right existing service portfolio growth margin of to to-date no than our value based as the We've the have fact go continued streams

that aligns construct do we very said, So with what way is now. but it all in the purposeful Mike here a business

Justin Long

point? last Got drivers curious just are driving if strength for that I I'm one secular there now. business competitive in any your the cetera are the demand And anything this in landscape unchanged guess new at me, you adding change competitive right about hearing you it. and say landscape, essentially clearly are that that's resulting capacity, in backlog et competitors would or entrants, is

Brent Yeagy

at it labor on nine, most for capacity chain part operation, the see labor are others a still supply base Remember what our responding two it's of are I or that to and, speaking in place now. are we really to agreements six, the is right to overall know, still say, support on that that case where capacity XX traditionally XX-year labor is ones the we more same And see, ago, a positioned the but our that existed - to vans based months dry bit I'd little barriers this that capacity for adding as we're supply scale redeploying to specifically is the able unchanged, in call tank profound, we don't plus that and we're gains. yet do available. access we only added existing Mexico

Operator

Shlisky with next question Davidson. is The Mike D.A. from

open. is line Your

Mike Shlisky

last down number keep morning off shipped, with supply weeks two body chassis Yes, I'll question from OEM's for December. we hi. They units taking start truck business. the bit the but and the got Good that quarter-over-quarter the better were of hearing thanks a my on question. during of a in

year the half to growth looks some would Wabash, you if on first good in comment wondering that the you out to get XXXX? of truck number and door how see was here of the to at I the customers body supply could you start So in expect

Brent Yeagy

alluded on we of was, improving when call And that in improving. flow to but Yes. Thanks, look talked chassis last like chassis improving. it's are and right right about wasn't our question. of they actual chassis substantially what signs great We time early yes, it the supply flow terms did the

saw So and chassis supply body get sitting to across unable that match entire the flow. and was on chain to product lot truck in industry what finished a we flowing

our great shipments. for of terms a means the what less not flow to and is business that through to get So the in yard on chassis customers those ability

that's have the we to get as quarter What quarter and expect and we the actual the we seeing that targeted through on chassis right on-time the sequencing to seen the as confident we in delivery, are and into we're should beginning fourth improvement body up why starting we're where growth come XXXX. show track first we're the that back the see in truck

Mike Shlisky

& That's like XXXX And - got you've really in helped here, Service, & expansion the Brent. Service, quarter as onto well. great Parts it liked plans so you've good Parts for pretty mix some moving then got how you the I fourth sounds

whether see that you in maybe churn good that's segment, coming you the year? if comment can there margins So in could expand on constant in growth

Mike Pettit

target What and growth Mike profitable is we're scale. some trying really to here get

for able improving business those can think think really we So the margins, we really we're more at overall but in the and give guiding base the maintain than 'XX you the maintain add add that and as mission we but year margins We've some grew to scale we're initiatives, we can margins Solutions significantly is revenue is. higher the on that will to mentioned because margin margins profile really excited line we & top Transportation 'XX, get you the specific Parts through the business. XXXX, not top. to as be corporation's improve the and scale some and maintain then that's got in which significant as We'll to Services guidance we

Mike Shlisky

be years your of top answer parts couple my you If maybe are getting early, a targets, hit out or maybe $X to us Mike. obviously there a that yet. margins billion there of Could margin EPS top get a upside at you've given the about might not moving you in outline today just to some last things the in bit talked on line works be XXXX Great. either other initiatives couple maybe zoom getting $X.XX XXXX actually a About of I could question could do a out line, there, playing to think for $X.XX and $X and you that might how XXXX billion whether know your that you in what for you point? key number your that

Mike Pettit

May of three-year one at of Investor when in revenue. launched XXXX, of targets which Yes, said driver drivers expansion would plan we we several be a we dry the of front-loaded Day our van the so outlined would and be as be the in those capacity will our

to so So, have maybe to achieving quicker first a little now, to of focused to But believe allowing XXXX margin to the as and we number given could be back the and period. in right scaling XXXX our but at not hit could guide can in certainly us consistent to mentioned, that us we're that supply million those we & we've than guided $XXX We're a Parts happen targets growth in lead the of that ramp before foremost, maintain also that I chain us rather XXXX. facility get time that May as would quicker. what the which XXXX we expecting overall profile Services, bit on it

XXXX, I we were get the to that but to what summarize, it quicker if components happen more now billion our to foresee for to could and volume don't maybe period, the in happen, dry supply be get I XXXX. get $X would van out had could door right than quicker come think ability that and the than So planned

Brent Yeagy

walls your is capability Mike earlier and really four the with scale to on XXXX. in parts scale and when part additional business, is thing would add first talked getting adding one Yes, the about inside question that I the that parcel what our initial is about is,

targets that of Mike areas that, the ends as propels able As one to, would we additional to it. that for so we're forward, that XXXX, give that think was capability down feedback of it comes those that us on be both but said, XXXX we'll really all into us focused pull how I to on on be is growing opportunity throughout execute another why

Mike Shlisky

do Minnesota coming like also point, 'XX margin 'XX online reefer this the your feel own in be in driver capacity goal? you At towards and and would positive goals your a

Brent Yeagy

count I a advantage 'XX-'XX is hitting cold going timeframe part targeted but to is would us positive. the as to narrow a very opportunity would chain could it that it is get is us top But what's the to absolutely grow as for say, has minimum that core for 'XX more absolutely overall, At Minnesota. pull I way, in that potential in taking that scale, line forward. be relative of targets another something to on

Mike Pettit

add more loaded I strategic to going our key period. would initiatives, Yes, say, planned be the one I like back-end that's to in three to that's that, of

through the So will & of in you of 'XX-'XX some growth nice can vans plan. the period, that time where the and that disruption the we earlier logistics real see of in Parts in Services more dry periods some see

Operator

Partners. is with Kauffman Jeff Vertical next from The Research question

is Your open. line

Jeff Kauffman

you very Thank much.

come in nice starts congratulations, been for of all, been and when to time investing you've long everything coming First it's a together. it's

that's So fantastic.

million a and assume the in we slowly new a to up And model I on revenue ramp I midpoint. the there here, the the billion maybe get but $X.X slightly, if at is trailer assume little I in follow-up tinkering there, guidance two-thirds about halfway ASP's Just terms of the billion way the with revenue a there. capacity questions, to $XXX I'm increase of basically couple getting number, $X

higher the in could these to even be ASP $X.X just billion? year trying continues than because the we and I'm $X billion to get outlook the the nature close to of backlog, contracts the move that jump pricing So that's long-term of to expected is jump in outlook or idea the on for the units our that that producing XX,XXX to based is

Mike Pettit

increase believe called we I there your probably expect we've year-over-year, would that we missing in which wouldn't growth. with truck expect nice bodies do price through out tank saw. in growth could as earlier, a pretty ASP we've of you business in inflation got we significant drive that coming cost mentioned mentioned, also maybe significant the as some piece a And some as that wasn't trailer I be feel I good of have growth well, some our the which model. aligned we that

while we'll wouldn't a in opportunities capacity you driver, truck bodies plus that second So our of expansion always get some look van at maybe dry Services. and revenue Parts out from tailwinds huge trailers coming half be &

Jeff Kauffman

Okay.

So your could just point on up more based a is ASP could issue be mix be but trailers? that tank

Mike Pettit

than a much driving. Correct. At they're higher ASP

Jeff Kauffman

we to capacity that going what - have. that use through you you and right. obviously hire of 'XX of thoughts to the 'XX are units and But is choogle all where about kinds you on of bringing we into on capacity, that. capacity, All right think we as basis up a XX,XXX secondly, can the won't get or employees saw of 'XX on and can think I new you're that in capacity know I go be you this growth? head production Well, and we van in unit enough we a 'XX and bit you there XX,XXX ramp a do governor the then your units dry year, new

Brent Yeagy

into was question. primarily the a When producing units with plant the South is dry productivity very take which in simple of but Lafayette. dry and on XX,XXX refrigerated which we initiative, our great you to vans, approximately of straightforward that, then we have baseline the surge conversion rest now on Yes, of adding plant number gains additional top XX, the and capacity then manufacturing and here of gains talked van

produce, and a have a barrier labor it's think we'll on mix be us a little a can the that you just the with XX,XXX to higher easily significant units. pushing above then to to bit existing on of would factor operations. slightly it, gains I productivity be that, XX So, not for ability as call Based with able XX we based get

Mike Pettit

just mentioned, to year. little bit to we'll a dial like XXXX, it you for throughout rate up probably closer Jeff, the ramp line in full

goes a that looking X,XXX in So that Brent XX,XXX. this half, then and year all little units longer term of running like of facility - half, we're said, slower a for at little second in a XXXX figuring little the about that out the faster first we're to

Jeff Kauffman

a Okay is math worked I that fantastic. but buy with way. don't Well, for I this so you've to around wish there. had see on stock. fantastic everything your awesome this tell I you helps got is I see. to hard my That's to coming rating the

congratulations. So

Brent Yeagy

Jeff. Thanks

Operator

[Operator Felix The with next Boeschen is from James. Instructions] Raymond question

line Your open. is

Felix Boeschen

I just to some CapEx provide maybe dissect then of, able maintenance quickly that the close say, projects some you other dry context it, EcoNex, if spillover, you're follow-up I'm to capacity maybe on van just between, wanted to call CapEx growth in have there? million. curious the to $XXX and

Mike Pettit

in big of there far of Falls beyond. doing we've one that as flow drivers of some significant XX% then million-ish would are driver main benefits through those XX% going within next I the CapEx. our to will got the there's - Services initiatives some but always Yes, 'XX, business technology expansion. are facilities, that's XX in would mentioned three be by capacity some be those plant there's initiatives and really the biggest maintain EcoNex next in in from growth spend of drivers will that help the the us addition in And And Little & - of Parts the that our somewhere cost and with 'XX, growth to be 'XX number, $XX manufacturing the to that ramp that be

Felix Boeschen

on the just that, from and the wondering should as baked that much bridge we contribution parts longer-term year-over-year I coming this I'm appreciate at then on of and in of EPS a story? about the out And strong as it. service or just a point think more being there is Got services. trailer

Mike Pettit

maintain and I our Parts network trying Felix, the trailers trailers will the longer-term how big I'd as to in services But as story Yes, Services product probably does you're helps within And a our that we're interesting service view in actual and - develop we're our way more a it's it view field. going a trying as to growth a be offering 'XX because our to & what mentioned, and dealer trailers see beyond. ability to support we that customers. because as synergistic

We year on EPS upcoming but do in calls. will about more sheet, a and do of then be few beyond. as the we generation we leasing we talk half did and the a will the big mentioned, I in million this - XXXX this revenue from first driver come the from year say perspective we'll a balance trailers,

Felix Boeschen

capacity multiyear go that just trying from you and long-term might change a understand where perspective time? mix to these today direct business that channel if it, us okay. this And in it, then trailer I'm I dealer curious but might over know expansion. Got post maybe call you the, think understand if versus is can help don't Brent, agreement just the the I'm best the for changes all just mix

Brent Yeagy

Yes.

numbers that side agreements of XX% a have van nice long-term mix So today we're able or capacity see we would of to to fit well. love to approximately really of we in think side this play now, the direct channel vision, our split that of to subgroup and market roughly a about say, and respect, within long-term going or if us XX% a a purposely dry about that'd you and customers I'd closer to what indirect want a from direct set talking result Wabash dry number XX% in and that is And on be allocation. And it see, XX% let's the indirect. or direct of to allocation nice between is increasing be that that the that van XX-XX specifically think for about real indirect dealers

Felix Boeschen

there of of incrementally long-term agreements. pools, does trying to implications in out Brent? long-term got what those customers understand And agreements, through these last I'm one, trailer mix of up, I'm out customers really you, rise be just trying to call to just that are today. Okay, mostly to interest build and existing to brokers and with open my What it. degree, customers just would new then they think completely the power long-term it, only type is just

Brent Yeagy

Yes.

across had more think they agreements, about long-term a to portfolio when those that today So buy and final traditional they are customers to our primarily we predisposed they view, first mile to have a the industry we on That's business the it on. from are how a standpoint and based going well today. positioned changes leadership model outgrow overall at structural look we

scale And of and will future the as that only, that constructs cultivating grow to and when to in 'XX the a absolutely of a customers organization. we're subset today, much service, that core we're we material in we bringing our right more we're digital be the today become bear that brokerage new the part you purposely way think capacity allocating as And are capabilities of about beyond. that power trailers think not as going a commercial and systems and

Operator

further over We questions remarks. for to closing at have any I'll no this Mr. turn Reed it time.

Ryan Reed

everyone today. quarter. to thanks Thanks the forward following We look for Chris, us and up joining during

Operator

today's and conference Ladies call. this concludes gentlemen, Thank participating. for you

may disconnect. You now

Wabash National (WNC) 2 Feb 232022 Q4 Earnings call transcript