Navistar International Corporation
Navistar International — Q1 2021 Earnings Presentation
20 slides from Navistar International's earnings presentation, Mar 9, 2021
Slide 1: Q1 2021 Earnings Presentation
Q1 2021 EARNINGS PRESENTATION March 9, 2021 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: First Quarter 2021 Summary
First Quarter 2021 Summary Operating results improve as truck revenues return to pre-COVID-impacted levels Q1 net loss of $81 million includes $86 million of tax-effected significant items; adjusted net income of $5 million Q1 adjusted EBITDA of $116 million, or 6.4% of revenues, up from $59 million
Slide 4: Strong Adjusted EBITDA Margin Improvement Year-Over-Year
Strong Adjusted EBITDA Margin Improvement Year-Over-Year ($ in millions, except per share and units) Note: This slide contains non-GAAP information; please see the REG G in appendix for a detailed reconciliation. Includes U.S. and Canada School buses and Class 6-8 trucks. Amounts attributable to Nav
Slide 5: First Quarter 2021 Segment Results
First Quarter 2021 Segment Results ($ in millions) During Q1 2021, the Truck segment recorded charges of $49 million related to pre-existing warranties and $47 million related to the disposition of the Melrose Park facility. (A) Sales and Revenues Segment Profit (Loss) Quarters Ended January 31, Qua
Slide 6: Strong First Quarter Cash Balance, No Near-Term Manufacturing Debt Maturities
Strong First Quarter Cash Balance, No Near-Term Manufacturing Debt Maturities ($ in millions) Manufacturing Cash Balance(A) Manufacturing Debt Maturities(B) 9.5% Senior Secured Notes Senior Secured Term Loan $2,152 (C ) Note: This slide contains non-GAAP information; please see the REG G in appendix
Slide 7: Merger with TRATON Tracking to Expectations
Merger with TRATON Tracking to Expectations The merger proposal was approved at Navistar’s annual stockholder meeting on March 2nd. HSR antitrust waiting period expired February 12th. Subject to regulatory approvals and the satisfaction of customary closing conditions. Targeting to complete transact
Slide 8: Appendix
Appendix NAVISTAR a Q1 2021 Earnings ~ 3/9/2021 NYSENAV 8.
Slide 9: Days Sales Inventory On-Hand
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 92 Days
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 EndedJanuary 31, 2021October 31, 2020July 31, 2020April 30, 2020January 31, 2020Core Markets (U.S. and Canada)Class 6 and 7 medium trucks21.7%19.0%22.1%22.9%20.3%Class 8 heavy tr
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 Highlights
Financial Services Segment Highlights Financial Services segment profit of $12M for Q1 2021 compared to $17M Q1 2020 Segment financing availability of $1.1B as of January 31, 2021 Financial Services debt/equity leverage of 2.3:1 as of January 31, 2021 New lease funding proceeds of $26M in Q1 2021 Re
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 and profit sharing, manufacturing interest expense, and the
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, 2020, the Company had deferred tax assets for U.S. federal NOLs valued at $495 million, state NOLs valued at $165 million, and foreign NOLs valued at $141
Slide 15: Frequently Asked Questions: Revenue by Product Type, Free Cash Flow
Q10: What is your revenue by product type(A)? A: ___________________________ Includes other markets primarily consisting of Bus, Export Truck and Mexico. Retail financing and Wholesale financing revenues in the Financial Services segment include interest revenue of $14 million and $6 million, respec
Slide 16: Outstanding Debt Balances
Outstanding Debt Balances($ in millions)January 31, 2021October 31, 2020Manufacturing operationsSenior Secured Term Loan Credit Agreement, due 2025, net of unamortized discount of $5 at both dates and unamortized debt issuance costs of $7 and $8, respectively$1,540$1,5439.5% Senior Secured Notes, du
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: SEC Regulation G Non-GAAP Reconciliation: Manufacturing Cash
SEC Regulation G Non-GAAP Reconciliation Manufacturing Operations Cash and Cash Equivalents Reconciliation: Manufacturing Cash and Cash Equivalents: Manufacturing cash and cash equivalents, and free cash flow represents the Company’s consolidated cash and cash equivalents, excluding cash and cash eq
Slide 19: SEC Regulation G Non-GAAP Reconciliations: EBITDA
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: SEC Regulation G Non-GAAP Reconciliation: Adjusted Net Income
SEC Regulation G Non-GAAP Reconciliation Adjusted Net Income Reconciliation: ____________________ Footnotes to significant items: 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
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