Wabash National Corp. (NYSE:WNC) Q3 2019 Earnings Conference Call - Final Transcript
Nov 06, 2019 • 10:00 am ET
Good day, ladies and gentlemen, and welcome to the Q3 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, Ryan Reed, Director of Investor Relations, please go ahead.
Thank you, Lorie. Good morning, everyone, and thanks for joining us on this call. With me today are Brent Yeagy, President and Chief Executive Officer; and Jeff Taylor, Chief Financial Officer. A couple of items before we get started. Please note that this call is being recorded. I'd also like to point out that our earnings release, the slide presentation supplementing today's call and any non-GAAP reconciliations, are all available at ir.wabashnational.com. Please refer to Slide 2 in our earnings deck for the Company's Safe Harbor disclosure statement addressing forward-looking statements.
I'll now hand it over and ask that you please refer to Slide 3, as Brent gets us started with his highlights.
Thanks, Ryan. I'd like to begin by saying that we're pleased to report our strong 2019 performance continued through the third quarter. Sales reached the third quarter record of $581 million that represents 5% topline growth as compared to the previous year's third quarter with each business unit providing strong topline contribution. Wabash achieved operating margins of 6.6% during the third quarter which represents a 140 basis point improvement versus the same quarter just one year ago. Our commercial organization has done exceptional job of recovering the cost pressures we felt last year as evidenced by average selling prices that were up in excess of $2,000 per trailer. Within operations we continued to work across our supply chain to improve overall network stability and on-time delivery performance. In addition, we continue to improve our internal management system to drive enhanced tracking and visibility paired with enhanced sales and operations planning process to create better overall execution of our business. Our focus has helped to mitigate the impact created by continued stress supply chain and we will continue to drive ongoing improvement in Wabash operational performance as we become even more responsive to our customer. At the same time we've been focused on embedding the Wabash Management System into our culture and utilizing a growing set of enterprise lean tools in new business systems to drive breakthrough improvement across the Company. We're engaged in value stream mapping in kaizen activities in several areas of the business that further drives profitable growth. At this time, we've teams deployed in multiple truck body manufacturing locations, our tank manufacturing sites in Mexico and Wisconsin as well as several areas in our front office. I'm encouraged by the progress we've made since the beginning of our Wabash Management System journey in mid 2018. I'd like to thank our employees for their hard work in helping us to achieve these results. However, I'm most encouraged by growing understanding within Wabash that our Wabash Management System is not just about reducing cost, it's truly about enabling profitable