Navistar International Corporation
Navistar International — Q3 2020 Earnings Presentation
21 slides from Navistar International's earnings presentation, Sep 9, 2020
Slide 1: Q3 2020 Earnings Presentation
Q3 2020 EARNINGS PRESENTATION September 9, 2020 Exhibit 99.2
Slide 2: Safe Harbor Statement and Other Cautionary Notes
Safe Harbor Statement and Other Cautionary Notes Information provided and statements contained in this presentation that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), Section 21E of the Securit
Slide 3: Third Quarter 2020 Summary
Third Quarter 2020 Summary Note:This slide contains non-GAAP information; please see the REG G in appendix for a detailed reconciliation. Persio Lisboa appointed President and CEO Q3 results lower YoY due to weaker industry conditions and COVID-19 Ended Q3 with strong manufacturing cash balance of $
Slide 4: Impact of COVID-19 Pandemic
Impact of COVID-19 Pandemic Safety measures enhanced to protect our employees, communities and operations Navistar 4.0 strategy remains focus Industry recovery underway following easing of states’ restrictions Navistar facilities remained open as an essential business Supply chain disruptions easing
Slide 5: Third Quarter 2020 Consolidated Results
Third Quarter 2020 Consolidated Results ($ in millions, except per share and units) Includes U.S. and Canada School buses and Class 6-8 trucks. Amounts attributable to Navistar International Corporation. Non-GAAP information; please see the REG G in appendix for a detailed reconciliation. Quarters E
Slide 6: Third Quarter 2020 Segments Results
Third Quarter 2020 Segments Results ($ in millions) Sales and Revenues Segment Profit (Loss) Quarters Ended July 31 Quarters Ended July 31 2020 2019 2020 2019 Truck $1,203 $2,387 $-22 $167 Parts 414 571 97 149 Global Operations 47 90 1 1 Financial Services 49 74 10 30
Slide 7: Strong Cash Balance, No Near-Term Manufacturing Debt Maturities
Strong Cash Balance, No Near-Term Manufacturing Debt Maturities Manufacturing Cash Balance(A) Note: This slide contains non-GAAP information; please see the REG G in appendix for a detailed reconciliation. Amounts include manufacturing cash, cash equivalents, and marketable securities. Q3 2020 conso
Slide 8: Appendix
Appendix 3 2020 Earnings ~ 9/9/2020 NYSE:NAV 8.
Slide 9: Days Sales Inventory On-Hand
Normal range is 80-120 days inventory on hand Includes US and Canada Class 6-8 company and dealer truck inventory, but does not include IC Bus *Calculation is based on the 3-month rolling average of inventory-to-retail sales ratio 140 Days Days Sales Inventory On-Hand
Slide 10: Retail Market Share in Commercial Vehicle Segments
Retail Market Share in Commercial Vehicle Segments Class 6/7 Medium-Duty Class 8 Severe Service Class 8 HeavyThree Months EndedJuly 31, 2020April 30, 2020January 31, 2020October 31, 2019July 31, 2019Core Markets (U.S. and Canada)Class 6 and 7 medium trucks22.1%22.9%20.3%25.9%26.8%Class 8 heavy truck
Slide 11: Worldwide Truck Chargeouts
Worldwide Truck Chargeouts _______________________ We define chargeouts as trucks that have been invoiced to customers. The units held in dealer inventory represent the principal difference between retail deliveries and chargeouts. The above table summarizes our approximate worldwide chargeouts. We
Slide 12: Financial Services Segment
Financial Services Segment 1 Navistar Financial Corporation (NFC) is the U.S. financial entity of Navistar’s Financial Services segment. Highlights Financial Services segment profit of $10M for Q3 2020 and $51M YTD 2020 Segment financing availability of $802M as of July 31, 2020 Financial Services d
Slide 13: Frequently Asked Questions
Frequently Asked Questions Q1: What is included in Corporate and Eliminations? A:The primary drivers of Corporate and Eliminations are Corporate SG&A, pension and OPEB expense (excluding amounts allocated to the segments), annual incentive, manufacturing interest expense, and the elimination of inte
Slide 14: Frequently Asked Questions
Frequently Asked Questions Q6:What is the current balance of net operating losses as compared to other deferred tax assets? A: As of October 31, 2019, the Company had deferred tax assets for U.S. federal NOLs valued at $465 million, state NOLs valued at $166 million, and foreign NOLs valued at $151
Slide 15: Frequently Asked Questions: Revenue by Product Type
Q10: What is your revenue by product type(A)? A: ___________________________ Includes other markets primarily consisting of Bus, Export Truck and Mexico. Retail financing revenues in the Financial Services segment include interest revenue of $13 million for the three months ended July 31, 2020, and
Slide 16: Outstanding Debt Balances
Outstanding Debt Balances($ in millions)July 31, 2020October 31, 2019Manufacturing operationsSenior Secured Term Loan Credit Agreement, due 2025, net of unamortized discount of $5 and $6, respectively, and unamortized debt issuance costs of $8 and $10, respectively$1,547$1,5569.5% Senior Secured Not
Slide 17: SEC Regulation G Non-GAAP Reconciliation
SEC Regulation G Non-GAAP Reconciliation SEC Regulation G Non-GAAP Reconciliation: The financial measures presented below are unaudited and not in accordance with, or an alternative for, financial measures presented in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-G
Slide 18: Manufacturing Cash, Cash Equivalents, and Marketable Securities Reconciliation
SEC Regulation G Non-GAAP Reconciliation Manufacturing Operations Cash, Cash Equivalents, and Marketable Securities Reconciliation: Jul. 31, Apr. 30, Jan. 31, Oct. 31, Jul. 31, ($ in millions) 2020 2020 2020 2019 2019 Manufacturing Operations: Cash and Cash Equivalents……………………………………………………… $ 1610 $
Slide 19: EBITDA Reconciliation
SEC Regulation G Non-GAAP Reconciliations Earnings (Loss) Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) Reconciliation ______________________ (A) Manufacturing interest expense is the net interest expense primarily generated for borrowings that support the Manufacturing and Corpo
Slide 20: Adjusted Income Reconciliation
SEC Regulation G Non-GAAP Reconciliation Adjusted Income Reconciliation: ____________________ For more detail on the items noted, please see the footnotes on slide 21. Quarters Ended July 31, ($ in millions) 2020 2019 Net income (loss) attributable to NIC $ -37 $ 156 Adjusted for significant items o
Slide 21: Footnotes to Non-GAAP Adjustments
(A) Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. Our warranty liability is generally affected by component failure rates
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