Wabash National Corporation (NYSE:WNC), a diversified
industrial manufacturer and North America’s leading producer of
semi-trailers and liquid transportation systems, today reported
results for the third quarter ended September 30, 2015.
Net income for the third quarter of 2015 was
$31.9 million, or $0.47 per diluted share, compared to third
quarter 2014 net income of $18.3 million, or $0.25 per diluted
share. Third quarter 2015 non-GAAP adjusted earnings
increased $13.3 million to $31.9 million, or $0.47 per diluted
share, from $18.6 million, or $0.26 per diluted share, for the
third quarter 2014. Non-GAAP adjusted earnings for the third
quarter of 2014 includes an early extinguishment of debt charge of
$0.5 million incurred with regards to the Company’s term loan
prepayment.
For the third quarter of 2015, the Company’s net
sales increased 8 percent to a record $531 million from $492
million in the prior year quarter, and operating income increased
61 percent to a record quarter of $56.4 million compared to
operating income of $34.9 million for the third quarter of
2014. Operating EBITDA, a non-GAAP measure that excludes the
effects of certain recurring and non-recurring items, for the third
quarter of 2015 was $68.0 million, an increase of $21.4 million
compared to the prior year period. On a trailing twelve month
basis through September 30, 2015, the Company’s net sales exceeded
$2.0 billion, net income totaled $90.1 million and Operating EBITDA
increased to $207.0 million, or 10.3 percent of net sales.
The following is a summary of select operating
and financial results for the past five quarters:
|
Three Months Ended |
|
(Dollars in thousands,
except per share amounts) |
September 30, |
|
December 31, |
|
March 31, |
|
June 30, |
|
September 30, |
|
|
2014 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
491,697 |
|
|
$ |
527,477 |
|
|
$ |
437,597 |
|
|
$ |
514,831 |
|
|
$ |
531,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
Margin |
|
12.5 |
% |
|
|
11.9 |
% |
|
|
13.1 |
% |
|
|
14.1 |
% |
|
|
16.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations |
$ |
34,929 |
|
|
$ |
34,137 |
|
|
$ |
27,263 |
|
|
$ |
42,054 |
|
|
$ |
56,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
18,307 |
|
|
$ |
19,088 |
|
|
$ |
10,474 |
|
|
$ |
28,649 |
|
|
$ |
31,880 |
|
|
|
Diluted EPS |
$ |
0.25 |
|
|
$ |
0.27 |
|
|
$ |
0.15 |
|
|
$ |
0.41 |
|
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Measures(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating EBITDA |
$ |
46,619 |
|
|
$ |
46,147 |
|
|
$ |
39,135 |
|
|
$ |
53,655 |
|
|
$ |
68,030 |
|
|
|
|
Operating EBITDA
Margin |
|
9.5 |
% |
|
|
8.7 |
% |
|
|
8.9 |
% |
|
|
10.4 |
% |
|
|
12.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings |
$ |
18,630 |
|
|
$ |
19,088 |
|
|
$ |
13,788 |
|
|
$ |
23,586 |
|
|
$ |
31,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
$ |
0.26 |
|
|
$ |
0.27 |
|
|
$ |
0.19 |
|
|
$ |
0.33 |
|
|
$ |
0.47 |
|
|
|
|
Notes:
- See “Non-GAAP Measures” below for a discussion of how the
Company uses and defines non-GAAP financial measures.
Dick Giromini, president and chief executive
officer, stated, “We are very pleased with the continued strong
performance and our ability to deliver third quarter results that
represent record achievement levels for net sales, gross profit,
income from operations, operating margin and Operating
EBITDA. The overall strength in the Company’s operating
performance demonstrates that both the operational improvement
initiatives and the transformative nature of our strategic growth
efforts are paying strong dividends. All segments contributed
significantly to the record performance this quarter as Commercial
Trailer Products’ ongoing commitment to margin improvement and
manufacturing excellence resulted in record level gross profit and
operating income while Diversified Products’ performance provided
significant year over year and sequential improvements.
Through the first nine months of 2015 we have continued the
momentum generated last year with strong operational execution and
an accelerated pace of improvement from our record breaking
2014.”
Mr. Giromini continued, “New trailer shipments
for the third quarter were approximately 16,500, just within the
range of our previous guidance of 16,500 to 17,500 trailers.
With three quarters now complete and a full order book for the
remainder of the year, we fully expect to finish 2015 with the
Company’s fourth consecutive year of record performance. As
such, we are now updating and tightening our full-year trailer
shipment guidance to 63,000 to 64,000 trailers and increasing our
adjusted earnings guidance to $1.38 to $1.43 per diluted
share. Longer term, supported by a healthy backlog of $1.1
billion, we believe the demand environment for trailers will remain
strong as customer profitability, fleet age and regulatory
compliance requirements all support an extended trailer cycle.
Additionally, we expect continued growth from our strategic
initiatives through new product introductions and market expansion
opportunities.”
Third Quarter Business Segment HighlightsThe
table below is a summary of select segment operating and financial
results prior to the elimination of intersegment sales for the
third quarter of 2015 and 2014, respectively. A complete
disclosure of the results by individual segment is included in the
tables following this release.
|
|
|
(dollars in
thousands) |
|
Commercial |
|
Diversified |
|
|
|
|
|
Trailer Products |
|
Products |
|
Retail |
Three
months ended September 30, |
|
|
|
|
|
|
|
2015 |
|
|
|
|
|
|
New
trailers shipped |
|
|
15,500 |
|
|
|
1,000 |
|
|
|
600 |
|
Net
sales |
|
$ |
387,032 |
|
|
$ |
120,219 |
|
|
$ |
41,911 |
|
Gross
profit |
|
$ |
52,497 |
|
|
$ |
28,857 |
|
|
$ |
5,310 |
|
Gross
profit margin |
|
|
13.6 |
% |
|
|
24.0 |
% |
|
|
12.7 |
% |
Income from
operations |
|
$ |
45,610 |
|
|
$ |
16,789 |
|
|
$ |
1,322 |
|
Income from
operations margin |
|
|
11.8 |
% |
|
|
14.0 |
% |
|
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
|
New
trailers shipped |
|
|
14,700 |
|
|
|
850 |
|
|
|
800 |
|
Net
sales |
|
$ |
351,951 |
|
|
$ |
115,838 |
|
|
$ |
45,166 |
|
Gross
profit |
|
$ |
30,994 |
|
|
$ |
24,691 |
|
|
$ |
4,896 |
|
Gross
profit margin |
|
|
8.8 |
% |
|
|
21.3 |
% |
|
|
10.8 |
% |
Income from
operations |
|
$ |
25,166 |
|
|
$ |
13,071 |
|
|
$ |
859 |
|
Income from
operations margin |
|
|
7.2 |
% |
|
|
11.3 |
% |
|
|
1.9 |
% |
|
|
|
|
|
|
|
|
Commercial Trailer Products achieved new
quarterly records for gross profit, operating income and operating
margin. Net sales were $387 million, an increase of $35
million, or 10.0 percent, on shipments of 15,500 trailers, or 800
more trailers than the prior year period. This increase in
revenue was primarily due to a 5.4 percent increase in trailer
shipments during the quarter as well as the ongoing commitment to
improve the financial performance within the core trailer
business. Driven by higher volumes, an improved pricing
environment and continued operational improvements, gross profit
and gross profit margin increased $21.5 million and 480 basis
points, respectively, as compared to the same period last
year. Operating income increased by $20.4 million from the
third quarter last year to $45.6 million.
Diversified Products’ net sales increased $4
million, or 3.8 percent, as compared to the previous year period as
the increase in tank trailer shipments was partially offset by
lower sales of aviation and other non-trailer equipment-related
offerings. Gross profit margin for the third quarter of 24.0
percent improved 270 basis points from the prior year period.
In addition, gross profit and operating income increased $4.2
million and $3.7 million, respectively, compared to the prior year
period. These year-over-year improvements are due primarily
to increased tank trailer shipments, strong demand for the
Company’s composite products, product mix and the successful
execution of diversification initiatives to profitably grow the
business.
Retail’s net sales of $42 million decreased 7.2
percent compared with the prior year period primarily due to lower
shipments of new trailers, which were partially offset by the
continued healthy demand for parts and service throughout the
quarter. Gross profit margin improved 190 basis points
compared to the prior year period due to a shift in product mix
favoring higher-margined parts and service sales. Operating
income of $1.3 million increased $0.5 million from the same period
last year.
Non-GAAP MeasuresIn addition to disclosing
financial results calculated in accordance with United States
generally accepted accounting principles (GAAP), the financial
information included in this release contain non-GAAP financial
measures, including Operating EBITDA, Operating EBITDA margin,
adjusted earnings and adjusted earnings per diluted share.
These non-GAAP measures should not be considered
a substitute for, or superior to, financial measures and results
calculated in accordance with GAAP, including net income, and
reconciliations to GAAP financial statements should be carefully
evaluated.
Operating EBITDA is defined as earnings before
interest, taxes, depreciation, amortization, stock-based
compensation, and other non-operating income and expense.
Management believes Operating EBITDA provides useful information to
investors regarding our results of operations. The Company
provides this measure because we believe it is useful for investors
to understand our performance period to period with the exclusion
of the recurring and non-recurring items identified above.
Management believes the presentation of Operating EBITDA, when
combined with the primary GAAP presentation of operating income, is
beneficial to an investor’s understanding of the Company’s
operating performance. A reconciliation of Operating EBITDA
to net income is included in the tables following this release.
Adjusted earnings and adjusted earnings per
diluted share reflect adjustments for non-recurring income
recognized on the sale of former retail branch locations as well as
charges related to losses incurred in connection with the Company’s
extinguishment of debt. Historically, we have excluded from
these measures the revaluation of deferred income tax assets due to
changes in statutory tax rates. Management believes providing
this measure and excluding these items facilitate comparisons to
the Company’s prior year periods and, when combined with the
primary GAAP presentation of net income and diluted net income per
share, is beneficial to an investor’s understanding of the
Company’s performance. A reconciliation of adjusted earnings
and adjusted earnings per diluted share to net income and diluted
net income per share is included in the tables following this
release.
Third Quarter 2015 Conference
CallWabash National will conduct a conference call to
review and discuss its third quarter results on October 28, 2015,
at 10:00 a.m. EDT. Access to the live webcast will be
available on the Company’s website at www.wabashnational.com.
For those unable to participate in the live webcast, the call will
be archived at www.wabashnational.com within three hours of the
conclusion of the live call and will remain available through
January 20, 2016. Meeting access also will be available via
conference call at 888-771-4371, participant code 40935749.
About Wabash National Corporation
Headquartered in Lafayette, Indiana, Wabash
National Corporation (NYSE:WNC) is a diversified industrial
manufacturer and North America’s leading producer of semi-trailers
and liquid transportation systems. Established in 1985, the company
manufactures a diverse range of products including: dry freight and
refrigerated trailers, platform trailers, bulk tank trailers,
truck-mounted tanks, intermodal equipment, aircraft refueling
equipment, structural composite panels and products, trailer
aerodynamic solutions, and specialty food grade and pharmaceutical
equipment. Its innovative products are sold under the following
brand names: Wabash National®, Beall®, Benson®, Brenner® Tank, Bulk
Tank International, DuraPlate®, Extract Technology®, Garsite,
Progress Tank, Transcraft®, TST®, Walker Barrier Systems, Walker
Engineered Products, and Walker Transport. Visit
www.wabashnational.com to learn more.
Safe Harbor StatementThis press release
contains certain forward-looking statements as defined by the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements convey the Company’s current expectations or forecasts
of future events. All statements contained in this press release
other than statements of historical fact are forward-looking
statements. These forward-looking statements include, among other
things, statements regarding the Company’s outlook for trailer
shipments, backlog, expectations regarding demand levels for
trailers, non-trailer equipment and our other engineered products,
profitability and earnings, opportunity to capture higher margin
sales, and the expectations regarding the Company’s growth and
diversification strategies. These and the Company’s other
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those implied by the forward-looking statements. Without
limitation, these risks and uncertainties include the uncertain
economic conditions including the possibility that demand
expectations may not result in order increases for us, increased
competition, reliance on certain customers and corporate
partnerships, risks of customer pick-up delays, shortages and costs
of raw materials, risks in implementing and sustaining improvements
in the Company’s manufacturing capacity and cost containment,
dependence on industry trends and timing and costs of
indebtedness. Readers should review and consider the various
disclosures made by the Company in this press release and in the
Company’s reports to its stockholders and periodic reports on Forms
10-K and 10-Q.
WABASH NATIONAL CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Dollars in thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
531,350 |
|
|
$ |
491,697 |
|
|
$ |
1,483,778 |
|
|
$ |
1,335,838 |
|
Cost of
sales |
|
|
445,328 |
|
|
|
430,069 |
|
|
|
1,268,153 |
|
|
|
1,165,925 |
|
|
Gross profit |
|
|
86,022 |
|
|
|
61,628 |
|
|
|
215,625 |
|
|
|
169,913 |
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses |
|
|
17,855 |
|
|
|
14,957 |
|
|
|
53,758 |
|
|
|
44,890 |
|
Selling
expenses |
|
|
6,462 |
|
|
|
6,271 |
|
|
|
20,216 |
|
|
|
20,361 |
|
Amortization of intangibles |
|
|
5,316 |
|
|
|
5,471 |
|
|
|
15,945 |
|
|
|
16,413 |
|
|
Income from
operations |
|
|
56,389 |
|
|
|
34,929 |
|
|
|
125,706 |
|
|
|
88,249 |
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense): |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(4,784 |
) |
|
|
(5,454 |
) |
|
|
(14,759 |
) |
|
|
(16,904 |
) |
|
Other, net |
|
|
(187 |
) |
|
|
(610 |
) |
|
|
2,500 |
|
|
|
(1,626 |
) |
|
Income before income
taxes |
|
|
51,418 |
|
|
|
28,865 |
|
|
|
113,447 |
|
|
|
69,719 |
|
Income tax
expense |
|
|
19,538 |
|
|
|
10,558 |
|
|
|
42,445 |
|
|
|
27,877 |
|
Net
income |
|
$ |
31,880 |
|
|
$ |
18,307 |
|
|
$ |
71,002 |
|
|
$ |
41,842 |
|
Basic net
income per share |
|
$ |
0.48 |
|
|
$ |
0.26 |
|
|
$ |
1.05 |
|
|
$ |
0.60 |
|
Diluted net
income per share |
|
$ |
0.47 |
|
|
$ |
0.25 |
|
|
$ |
1.01 |
|
|
$ |
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
31,880 |
|
|
$ |
18,307 |
|
|
$ |
71,002 |
|
|
$ |
41,842 |
|
|
Foreign currency
translation adjustment |
|
|
(496 |
) |
|
|
(295 |
) |
|
|
(743 |
) |
|
|
(45 |
) |
Net
comprehensive income |
|
$ |
31,384 |
|
|
$ |
18,012 |
|
|
$ |
70,259 |
|
|
$ |
41,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income per share: |
|
|
|
|
|
|
|
|
|
Net income applicable
to common stockholders |
|
$ |
31,880 |
|
|
$ |
18,307 |
|
|
$ |
71,002 |
|
|
$ |
41,842 |
|
|
Undistributed earnings
allocated to participating securities |
|
|
- |
|
|
|
(103 |
) |
|
|
- |
|
|
|
(340 |
) |
|
Net income applicable
to common stockholders excluding amounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
applicable to participating
securities |
|
$ |
31,880 |
|
|
$ |
18,204 |
|
|
$ |
71,002 |
|
|
$ |
41,502 |
|
|
Weighted average common
shares outstanding |
|
|
66,524 |
|
|
|
68,976 |
|
|
|
67,608 |
|
|
|
68,862 |
|
|
Basic net income per
share |
|
$ |
0.48 |
|
|
$ |
0.26 |
|
|
$ |
1.05 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income per share: |
|
|
|
|
|
|
|
|
|
Net income applicable
to common stockholders |
|
$ |
31,880 |
|
|
$ |
18,307 |
|
|
$ |
71,002 |
|
|
$ |
41,842 |
|
|
Undistributed earnings
allocated to participating securities |
|
|
- |
|
|
|
(103 |
) |
|
|
- |
|
|
|
(340 |
) |
|
Net income applicable
to common stockholders excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
amounts applicable to participating
securities |
|
$ |
31,880 |
|
|
$ |
18,204 |
|
|
$ |
71,002 |
|
|
$ |
41,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding |
|
|
66,524 |
|
|
|
68,976 |
|
|
|
67,608 |
|
|
|
68,862 |
|
|
Dilutive shares from
assumed conversion of convertible senior notes |
|
|
611 |
|
|
|
1,949 |
|
|
|
1,462 |
|
|
|
1,806 |
|
|
Dilutive stock options
and restricted stock |
|
|
907 |
|
|
|
994 |
|
|
|
1,019 |
|
|
|
855 |
|
|
Diluted weighted
average common shares outstanding |
|
|
68,042 |
|
|
|
71,919 |
|
|
|
70,089 |
|
|
|
71,523 |
|
|
Diluted net income per
share |
|
$ |
0.47 |
|
|
$ |
0.25 |
|
|
$ |
1.01 |
|
|
$ |
0.58 |
|
WABASH NATIONAL CORPORATION |
|
SEGMENTS AND RELATED INFORMATION |
|
(Dollars in thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
Diversified |
|
|
|
Corporate and |
|
|
|
Three Months Ended September 30, |
|
Trailer Products |
|
Products |
|
Retail |
|
Eliminations |
|
Consolidated |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
15,500 |
|
|
1,000 |
|
|
|
600 |
|
|
|
(600 |
) |
|
|
16,500 |
|
|
Used
trailers shipped |
|
|
250 |
|
|
50 |
|
|
|
250 |
|
|
|
(50 |
) |
|
|
500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
375,999 |
|
$ |
64,360 |
|
|
$ |
15,456 |
|
|
$ |
(13,565 |
) |
|
$ |
442,250 |
|
|
Used
Trailers |
|
|
5,397 |
|
|
921 |
|
|
|
3,785 |
|
|
|
(741 |
) |
|
|
9,362 |
|
|
Components,
parts and service |
|
|
1,658 |
|
|
25,289 |
|
|
|
21,856 |
|
|
|
(3,172 |
) |
|
|
45,631 |
|
|
Equipment
and other |
|
|
3,978 |
|
|
29,649 |
|
|
|
814 |
|
|
|
(334 |
) |
|
|
34,107 |
|
|
|
Total net external
sales |
|
$ |
387,032 |
|
$ |
120,219 |
|
|
$ |
41,911 |
|
|
$ |
(17,812 |
) |
|
$ |
531,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
52,497 |
|
$ |
28,857 |
|
|
$ |
5,310 |
|
|
$ |
(642 |
) |
|
$ |
86,022 |
|
|
Income
(Loss) from operations |
|
$ |
45,610 |
|
$ |
16,789 |
|
|
$ |
1,322 |
|
|
$ |
(7,332 |
) |
|
$ |
56,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
14,700 |
|
|
850 |
|
|
|
800 |
|
|
|
(750 |
) |
|
|
15,600 |
|
|
Used
trailers shipped |
|
|
200 |
|
|
50 |
|
|
|
350 |
|
|
|
- |
|
|
|
600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
344,416 |
|
$ |
53,689 |
|
|
$ |
20,701 |
|
|
$ |
(17,737 |
) |
|
$ |
401,069 |
|
|
Used
Trailers |
|
|
1,956 |
|
|
908 |
|
|
|
4,164 |
|
|
|
- |
|
|
|
7,028 |
|
|
Components,
parts and service |
|
|
954 |
|
|
24,220 |
|
|
|
19,430 |
|
|
|
(3,623 |
) |
|
|
40,981 |
|
|
Equipment
and other |
|
|
4,625 |
|
|
37,021 |
|
|
|
871 |
|
|
|
102 |
|
|
|
42,619 |
|
|
|
Total net external
sales |
|
$ |
351,951 |
|
$ |
115,838 |
|
|
$ |
45,166 |
|
|
$ |
(21,258 |
) |
|
$ |
491,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
30,994 |
|
$ |
24,691 |
|
|
$ |
4,896 |
|
|
$ |
1,047 |
|
|
$ |
61,628 |
|
|
Income
(Loss) from operations |
|
$ |
25,166 |
|
$ |
13,071 |
|
|
$ |
859 |
|
|
$ |
(4,167 |
) |
|
$ |
34,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
45,250 |
|
|
2,650 |
|
|
|
2,050 |
|
|
|
(2,200 |
) |
|
|
47,750 |
|
|
Used
trailers shipped |
|
|
650 |
|
|
100 |
|
|
|
750 |
|
|
|
(50 |
) |
|
|
1,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
1,067,326 |
|
$ |
169,612 |
|
|
$ |
54,431 |
|
|
$ |
(52,168 |
) |
|
$ |
1,239,201 |
|
|
Used
Trailers |
|
|
13,588 |
|
|
3,412 |
|
|
|
10,650 |
|
|
|
(2,157 |
) |
|
|
25,493 |
|
|
Components,
parts and service |
|
|
4,629 |
|
|
72,047 |
|
|
|
63,362 |
|
|
|
(9,391 |
) |
|
|
130,647 |
|
|
Equipment
and other |
|
|
10,511 |
|
|
77,077 |
|
|
|
2,072 |
|
|
|
(1,223 |
) |
|
|
88,437 |
|
|
|
Total net external
sales |
|
$ |
1,096,054 |
|
$ |
322,148 |
|
|
$ |
130,515 |
|
|
$ |
(64,939 |
) |
|
$ |
1,483,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
128,259 |
|
$ |
73,864 |
|
|
$ |
15,468 |
|
|
$ |
(1,966 |
) |
|
$ |
215,625 |
|
|
Income
(Loss) from operations |
|
$ |
107,394 |
|
$ |
36,383 |
|
|
$ |
3,811 |
|
|
$ |
(21,882 |
) |
|
$ |
125,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
37,800 |
|
|
2,550 |
|
|
|
2,500 |
|
|
|
(2,400 |
) |
|
|
40,450 |
|
|
Used
trailers shipped |
|
|
3,050 |
|
|
100 |
|
|
|
1,300 |
|
|
|
- |
|
|
|
4,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
880,541 |
|
$ |
162,626 |
|
|
$ |
65,283 |
|
|
$ |
(54,681 |
) |
|
$ |
1,053,769 |
|
|
Used
Trailers |
|
|
21,788 |
|
|
3,345 |
|
|
|
12,970 |
|
|
|
- |
|
|
|
38,103 |
|
|
Components,
parts and service |
|
|
2,404 |
|
|
81,360 |
|
|
|
61,562 |
|
|
|
(10,809 |
) |
|
|
134,517 |
|
|
Equipment
and other |
|
|
11,112 |
|
|
95,904 |
|
|
|
2,571 |
|
|
|
(138 |
) |
|
|
109,449 |
|
|
|
Total net external
sales |
|
$ |
915,845 |
|
$ |
343,235 |
|
|
$ |
142,386 |
|
|
$ |
(65,628 |
) |
|
$ |
1,335,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
73,952 |
|
$ |
76,822 |
|
|
$ |
16,025 |
|
|
$ |
3,114 |
|
|
$ |
169,913 |
|
|
Income
(Loss) from operations |
|
$ |
55,948 |
|
$ |
40,643 |
|
|
$ |
3,190 |
|
|
$ |
(11,532 |
) |
|
$ |
88,249 |
|
|
WABASH NATIONAL CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
(Unaudited) |
|
|
ASSETS |
Current
assets |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
197,187 |
|
|
$ |
146,113 |
|
|
Accounts
receivable |
|
|
138,950 |
|
|
|
135,206 |
|
|
Inventories |
|
|
227,510 |
|
|
|
177,144 |
|
|
Deferred
income taxes |
|
|
19,772 |
|
|
|
16,993 |
|
|
Prepaid
expenses and other |
|
|
18,265 |
|
|
|
10,203 |
|
|
|
Total current
assets |
|
$ |
601,684 |
|
|
$ |
485,659 |
|
|
|
|
|
|
|
|
Property,
plant and equipment |
|
|
136,533 |
|
|
|
142,892 |
|
|
|
|
|
|
|
|
Deferred
income taxes |
|
|
1,429 |
|
|
|
- |
|
|
|
|
|
|
|
|
Goodwill |
|
|
|
149,676 |
|
|
|
149,603 |
|
|
|
|
|
|
|
|
Intangible
assets |
|
|
121,081 |
|
|
|
137,100 |
|
|
|
|
|
|
|
|
Other
assets |
|
|
13,968 |
|
|
|
13,397 |
|
|
|
|
|
$ |
1,024,371 |
|
|
$ |
928,651 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current
liabilities |
|
|
|
|
|
Current
portion of long-term debt |
|
$ |
2,440 |
|
|
$ |
496 |
|
|
Current
portion of capital lease obligations |
|
|
853 |
|
|
|
1,458 |
|
|
Accounts
payable |
|
|
131,513 |
|
|
|
96,213 |
|
|
Other
accrued liabilities |
|
|
111,855 |
|
|
|
88,690 |
|
|
|
Total current
liabilities |
|
$ |
246,661 |
|
|
$ |
186,857 |
|
|
|
|
|
|
|
|
Long-term
debt |
|
|
327,639 |
|
|
|
324,777 |
|
|
|
|
|
|
|
|
Capital
lease obligations |
|
|
2,065 |
|
|
|
5,796 |
|
|
|
|
|
|
|
|
Deferred
income taxes |
|
|
1,764 |
|
|
|
2,349 |
|
|
|
|
|
|
|
|
Other
noncurrent liabilities |
|
|
19,551 |
|
|
|
18,040 |
|
|
|
|
|
|
|
|
Commitments
and contingencies |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
426,691 |
|
|
|
390,832 |
|
|
|
|
|
$ |
1,024,371 |
|
|
$ |
928,651 |
|
WABASH NATIONAL CORPORATION |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(Dollars in thousands) |
|
(Unaudited) |
|
|
|
|
Nine Months Ended September 30, |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
|
Net
income |
$ |
71,002 |
|
|
$ |
41,842 |
|
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities |
|
|
|
|
|
Depreciation |
|
12,514 |
|
|
|
12,730 |
|
|
|
|
Amortization of intangibles |
|
15,945 |
|
|
|
16,413 |
|
|
|
|
Net gain on
the sale of assets |
|
(8,315 |
) |
|
|
(43 |
) |
|
|
|
Deferred
income taxes |
|
(4,772 |
) |
|
|
14,571 |
|
|
|
|
Loss on
debt extinguishment |
|
5,620 |
|
|
|
1,042 |
|
|
|
|
Stock-based
compensation |
|
6,655 |
|
|
|
5,509 |
|
|
|
|
Accretion
of debt discount |
|
3,366 |
|
|
|
3,624 |
|
|
|
Changes in
operating assets and liabilities |
|
|
|
|
|
Accounts
receivable |
|
(3,744 |
) |
|
|
(31,263 |
) |
|
|
Inventories |
|
(50,366 |
) |
|
|
(79,534 |
) |
|
|
Prepaid
expenses and other |
|
(2,704 |
) |
|
|
2,721 |
|
|
|
Accounts
payable and accrued liabilities |
|
58,465 |
|
|
|
25,094 |
|
|
|
Other,
net |
|
1,025 |
|
|
|
2,004 |
|
|
|
Net cash
provided by operating activities |
$ |
104,691 |
|
|
$ |
14,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
|
Capital
expenditures |
|
(12,554 |
) |
|
|
(9,017 |
) |
|
|
Proceeds
from the sale of property, plant & equipment |
|
|
13,180 |
|
|
|
86 |
|
|
|
Other,
net |
|
(5,358 |
) |
|
|
4,142 |
|
|
|
Net cash
used in investing activities |
$ |
(4,732 |
) |
|
$ |
(4,789 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
|
Proceeds
from exercise of stock options |
|
1,959 |
|
|
|
1,789 |
|
|
|
Borrowings
under revolving credit facilities |
|
665 |
|
|
|
565 |
|
|
|
Payments
under revolving credit facilities |
|
(613 |
) |
|
|
(565 |
) |
|
|
Principal
payments under capital lease obligations |
|
(3,964 |
) |
|
|
(1,492 |
) |
|
|
Proceeds
from issuance of term loan credit facility |
|
192,845 |
|
|
|
- |
|
|
|
Principal
payments under term loan credit facility |
|
(193,809 |
) |
|
|
(42,078 |
) |
|
|
Principal
payments under industrial revenue bond |
|
(370 |
) |
|
|
(354 |
) |
|
|
Debt
issuance costs paid |
|
(2,581 |
) |
|
|
- |
|
|
|
Stock
repurchase |
|
(43,017 |
) |
|
|
(1,497 |
) |
|
|
Net cash
used in financing activities |
$ |
(48,885 |
) |
|
$ |
(43,632 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents |
$ |
51,074 |
|
|
$ |
(33,711 |
) |
|
Cash and
cash equivalents at beginning of period |
|
146,113 |
|
|
|
113,262 |
|
|
Cash and
cash equivalents at end of period |
$ |
197,187 |
|
|
$ |
79,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WABASH NATIONAL CORPORATION |
RECONCILIATION OF GAAP FINANCIAL MEASURES
TO |
NON-GAAP FINANCIAL MEASURES |
(Dollars in thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
EBITDA1: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
31,880 |
|
|
$ |
18,307 |
|
|
$ |
71,002 |
|
|
$ |
41,842 |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
19,538 |
|
|
|
10,558 |
|
|
|
42,445 |
|
|
|
27,877 |
|
|
|
|
|
|
|
|
|
Interest expense |
|
4,784 |
|
|
|
5,454 |
|
|
|
14,759 |
|
|
|
16,904 |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
9,525 |
|
|
|
9,779 |
|
|
|
28,459 |
|
|
|
29,143 |
|
|
|
|
|
|
|
|
|
Stock-based
compensation |
|
2,116 |
|
|
|
1,911 |
|
|
|
6,655 |
|
|
|
5,509 |
|
|
|
|
|
|
|
|
|
Other non-operating
(income) expense |
|
187 |
|
|
|
610 |
|
|
|
(2,500 |
) |
|
|
1,626 |
|
|
|
|
|
|
|
|
|
Operating EBITDA |
$ |
68,030 |
|
|
$ |
46,619 |
|
|
$ |
160,820 |
|
|
$ |
122,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
TrailingTwelveMonths |
|
|
|
|
|
|
|
December 31, 2014 |
|
March 31, 2015 |
|
June 30, 2015 |
|
September 30, 2015 |
|
September 30, 2015 |
|
|
|
|
|
|
Net income |
$ |
19,088 |
|
|
$ |
10,474 |
|
|
$ |
28,649 |
|
|
$ |
31,880 |
|
|
$ |
90,091 |
|
|
|
|
|
|
|
Income tax expense |
|
9,655 |
|
|
|
6,234 |
|
|
|
16,672 |
|
|
|
19,538 |
|
|
|
52,099 |
|
|
|
|
|
|
|
Interest expense |
|
5,261 |
|
|
|
5,173 |
|
|
|
4,802 |
|
|
|
4,784 |
|
|
|
20,020 |
|
|
|
|
|
|
|
Depreciation and
amortization |
|
9,686 |
|
|
|
9,452 |
|
|
|
9,482 |
|
|
|
9,525 |
|
|
|
38,145 |
|
|
|
|
|
|
|
Stock-based
compensation |
|
2,324 |
|
|
|
2,420 |
|
|
|
2,119 |
|
|
|
2,116 |
|
|
|
8,979 |
|
|
|
|
|
|
|
Other non-operating
(income) expense |
|
133 |
|
|
|
5,382 |
|
|
|
(8,069 |
) |
|
|
187 |
|
|
|
(2,367 |
) |
|
|
|
|
|
|
Operating EBITDA |
$ |
46,147 |
|
|
$ |
39,135 |
|
|
$ |
53,655 |
|
|
$ |
68,030 |
|
|
$ |
206,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Earnings2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
31,880 |
|
|
$ |
0.47 |
|
|
$ |
18,307 |
|
|
$ |
0.25 |
|
|
$ |
71,002 |
|
|
$ |
1.01 |
|
|
$ |
41,842 |
|
|
$ |
0.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation of net deferred income
tax assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
due to changes in statutory tax
rates |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,041 |
|
|
|
0.01 |
|
Branch Transactions, net of
taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5,274 |
) |
|
|
(0.08 |
) |
|
|
365 |
|
|
|
0.01 |
|
Loss on debt extinguishment, net of
taxes |
|
- |
|
|
|
- |
|
|
|
323 |
|
|
|
- |
|
|
|
3,525 |
|
|
|
0.05 |
|
|
|
625 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings |
$ |
31,880 |
|
|
$ |
0.47 |
|
|
$ |
18,630 |
|
|
$ |
0.26 |
|
|
$ |
69,253 |
|
|
$ |
0.99 |
|
|
$ |
43,873 |
|
|
$ |
0.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average # of
Diluted Shares O/S |
|
68,042 |
|
|
|
|
|
71,919 |
|
|
|
|
|
70,089 |
|
|
|
|
|
71,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
December 31, 2014 |
|
March 31, 2015 |
|
June 30, 2015 |
|
|
|
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
19,088 |
|
|
$ |
0.27 |
|
|
$ |
10,474 |
|
|
$ |
0.15 |
|
|
$ |
28,649 |
|
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on debt extinguishment, net of
taxes |
|
- |
|
|
|
- |
|
|
|
3,314 |
|
|
|
0.05 |
|
|
|
211 |
|
|
|
- |
|
|
|
|
|
Branch Transactions, net of
taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5,274 |
) |
|
|
(0.07 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings |
$ |
19,088 |
|
|
$ |
0.27 |
|
|
$ |
13,788 |
|
|
$ |
0.19 |
|
|
$ |
23,586 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average # of
Diluted Shares O/S |
|
69,685 |
|
|
|
|
|
71,557 |
|
|
|
|
|
70,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Operating EBITDA is defined as earnings before interest,
taxes, depreciation, amortization, stock-based compensation, and
other non-operating income and expense. |
|
|
2Adjusted earnings and adjusted earnings per
diluted share reflect adjustments for non-recurring income
recognized on the sale of former retail branch locations as well as
charges related to losses incurred in connection with the Company’s
extinguishment of debt. Historically, we have excluded from
these measures the revaluation of deferred income tax assets due to
changes in statutory tax rates. |
|
|
|
|
|
|
Media Contact:
Dana Stelsel
Corporate Communications Manager
(765) 771-5766
dana.stelsel@wabashnational.com
Investor Relations:
Mike Pettit
Vice President, Finance & Investor Relations
(765) 771-5581
michael.pettit@wabashnational.com
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