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
fourth quarter and full year periods ending December 31, 2015.
Net income for the fourth quarter of 2015 was
$33.3 million, or $0.50 per diluted share, compared to fourth
quarter 2014 net income of $19.1, or $0.27 per diluted share.
Fourth quarter 2015 non-GAAP adjusted earnings increased $15.0
million as compared to the prior year period to $34.1 million, or
$0.51 per diluted share. Non-GAAP adjusted earnings for the
fourth quarter of 2015 includes the impairment of certain
intangible assets of $1.1 million related to streamlining of
product branding and an early extinguishment of debt charge of $0.2
million incurred with regards to the Company’s repurchase of a
portion of the outstanding convertible senior notes. Net
sales for the fourth quarter increased 3 percent to a record $544
million from $527 million in the prior year quarter and operating
income increased 60 percent to $54.7 million compared to operating
income of $34.1 million for the fourth quarter of 2014.
Operating EBITDA, a non-GAAP measure that excludes the effects of
certain recurring and non-recurring items, for the fourth quarter
of 2015 was $68.6 million, an increase of $22.5 million compared to
operating EBITDA for the previous year quarter.
For the twelve months ended December 31, 2015,
the Company reported net income of $104.3 million, or $1.50 per
diluted share, on record net sales of $2.03 billion, compared to
net income of $60.9 million, or $0.85 per diluted share, on net
sales of $1.86 billion for the twelve months ended December 31,
2014. Full year 2015 results included the benefit for adjustments,
net of tax, totaling $0.9 million, or $0.01 per diluted share, as
gains realized on the sale of the Company’s former retail branch
locations were offset by charges for the impairment of certain
intangible assets related to streamlining of product branding and
the early extinguishment of debt incurred in connection with the
refinancing of the Company’s term loan credit facility and
repurchases of a portion of the outstanding convertible senior
notes. Excluding the impact of these items, non-GAAP adjusted
earnings for the full year 2015 were $103.4 million, or $1.49 per
diluted share. Full year 2014 results included one-time
charges net of tax totaling $2.0 million, or $0.03 per diluted
share, related to the early extinguishment of debt incurred with
the Company’s term loan prepayments, the transition of three Retail
branch locations to independent dealer facilities and the
revaluation of deferred income taxes due to changes in statutory
tax rates. Excluding the impact of these items, non-GAAP
adjusted earnings for the full year 2014 were $63.0 million, or
$0.89 per diluted share.
For full year 2015, the Company achieved record
operating EBITDA of $229.5 million, or 11.3 percent of net sales,
as compared to $169.0 million, or 9.1 percent of net sales, for the
previous year. The year-over-year improvement in operating
performance is attributable to the successful execution of the
Company’s growth and diversification strategies as well as
operational improvements across the Company’s manufacturing
facilities.
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)
|
December 31, |
|
March 31, |
|
June 30, |
|
September 30, |
|
December 31, |
|
|
2014 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
|
Net Sales |
$ |
527,477 |
|
|
$ |
437,597 |
|
|
$ |
514,831 |
|
|
$ |
531,350 |
|
|
$ |
543,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
Margin |
|
11.9 |
% |
|
|
13.1 |
% |
|
|
14.1 |
% |
|
|
16.2 |
% |
|
|
16.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations |
$ |
34,137 |
|
|
$ |
27,263 |
|
|
$ |
42,054 |
|
|
$ |
56,389 |
|
|
$ |
54,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations
Margin |
|
6.5 |
% |
|
|
6.2 |
% |
|
|
8.2 |
% |
|
|
10.6 |
% |
|
|
10.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
19,088 |
|
|
$ |
10,474 |
|
|
$ |
28,649 |
|
|
$ |
31,880 |
|
|
$ |
33,286 |
|
|
|
Diluted EPS |
$ |
0.27 |
|
|
$ |
0.15 |
|
|
$ |
0.41 |
|
|
$ |
0.47 |
|
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Measures(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating EBITDA |
$ |
46,147 |
|
|
$ |
39,135 |
|
|
$ |
53,655 |
|
|
$ |
68,030 |
|
|
$ |
68,643 |
|
|
|
Operating EBITDA
Margin |
|
8.7 |
% |
|
|
8.9 |
% |
|
|
10.4 |
% |
|
|
12.8 |
% |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings |
$ |
19,088 |
|
|
$ |
13,788 |
|
|
$ |
23,586 |
|
|
$ |
31,880 |
|
|
$ |
34,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
$ |
0.27 |
|
|
$ |
0.19 |
|
|
$ |
0.33 |
|
|
$ |
0.47 |
|
|
$ |
0.51 |
|
|
|
Notes:
(1) See “Non-GAAP Measures” below for explanation of the
non-GAAP results included above.
Dick Giromini, president and chief executive
officer, stated, “We are extremely pleased with our results for
2015 as we set new records across several key financial
metrics. The overall strength in the Company’s operating
performance highlights the success of our growth and
diversification initiatives driven by our long-term strategic plan
to transform the Company into a diversified industrial manufacturer
with a higher growth and margin profile, while maintaining our
focus and expertise in lean and six sigma optimization
initiatives. This is demonstrated by the achievement of
record net sales and operating income for the fourth consecutive
year of $2.03 billion and $180.4 million, respectively, as well as
a 230 basis point improvement in operating income margin to a
record level of 8.9 percent. Our performance for the year
further substantiates the significant progress we have made in our
transformation efforts, and underscores our commitment to long-term
profitable growth.”
Mr. Giromini continued, “New trailer shipments
of 64,700 for the year exceeded our previous guidance due to strong
customer pick-up and represents an increase of 7,350 trailers, or
12.8 percent, as compared to the previous year. We look
forward to 2016 with a healthy backlog of orders totaling $1.2
billion, representing an increase of 10 percent as compared to the
prior year period, and a trailer demand expected to be well above
replacement levels for a fifth consecutive year. Fleet age,
customer profitability, used trailer values, regulatory compliance
and access to financing all support continued strong trailer demand
and provide a favorable pricing environment within specific product
lines.”
Fourth 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 fourth quarter of 2015 and 2014,
respectively. A more 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 December 31, |
|
|
|
|
|
|
|
2015 |
|
|
|
|
|
|
New
trailers shipped |
|
|
16,100 |
|
|
|
750 |
|
|
|
450 |
|
Net
sales |
|
$ |
413,329 |
|
|
$ |
105,872 |
|
|
$ |
36,774 |
|
Gross
profit |
|
$ |
58,513 |
|
|
$ |
24,974 |
|
|
$ |
4,405 |
|
Gross
profit margin |
|
|
14.2 |
% |
|
|
23.6 |
% |
|
|
12.0 |
% |
Income from
operations |
|
$ |
51,412 |
|
|
$ |
11,557 |
|
|
$ |
590 |
|
Income from
operations margin |
|
|
12.4 |
% |
|
|
10.9 |
% |
|
|
1.6 |
% |
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
|
New
trailers shipped |
|
|
15,750 |
|
|
|
1,050 |
|
|
|
900 |
|
Net
sales |
|
$ |
378,319 |
|
|
$ |
123,003 |
|
|
$ |
47,694 |
|
Gross
profit |
|
$ |
30,848 |
|
|
$ |
26,557 |
|
|
$ |
4,703 |
|
Gross
profit margin |
|
|
8.2 |
% |
|
|
21.6 |
% |
|
|
9.9 |
% |
Income from
operations |
|
$ |
25,193 |
|
|
$ |
14,236 |
|
|
$ |
595 |
|
Income from
operations margin |
|
|
6.7 |
% |
|
|
11.6 |
% |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
Commercial Trailer Products achieved new
quarterly records for revenues, gross profit, operating income and
operating margin. Net sales were $413 million, an increase of
$35 million, or 9.3 percent, on shipments of 16,100 trailers,
representing 350 more trailers than the prior year period.
This increase in revenue was primarily due to an improved pricing
environment and the 2.2 percent increase in new trailer shipments
during the quarter. Supported by the improved pricing environment,
continued strong demand and outstanding operational execution,
gross profit and gross profit margin increased $27.7 million and
600 basis points to $58.5 million and 14.2%, respectively, and
operating income increased by $26.2 million, or 104.1 percent, to
$51.4 million compared to the same period last year.
Diversified Products’ net sales decreased $17
million, or 13.9 percent, as compared to the previous year period
as decreases in tank trailer shipments were only partially offset
by increased sales of the Company’s aviation refuelers and
composite product offerings. Gross profit decreased $1.6
million, or 6.0 percent, on lower sales; however, gross profit
margin improved 200 basis points as compared to the prior year
period to 23.6 percent as a result of strong operational
execution. Operating income margin, excluding the charges for
impairment of intangible assets during the current quarter, was
11.9 percent, an improvement of 30 basis points as compared to the
prior year period.
Retail’s net sales of $37 million decreased 22.9
percent compared with the prior year period primarily due to lower
shipments of new trailers as a result of channel optimization
activities and early depletion of build slots, which were partially
offset by the continued strong demand for parts and service
activities. Gross profit margin increased 210 basis points
compared to the prior year period to 12.0 percent due to a shift in
product mix favoring the higher-margined parts and service
sales. Operating income for the fourth quarter of 2015 was
$0.6 million, consistent with the same period last year.
2016 OutlookMr. Giromini
further commented, “We enter 2016 with great momentum from a record
2015, a strong trailer demand environment generating a strong
backlog, continued excellence in operational performance across all
business segments and the potential for organic growth through
diversification and innovative new product introductions.
With that backdrop, coupled with a strong industry demand forecast,
our current expectations are for 2016 to deliver a very strong
year.”
Capital AllocationDuring the fourth quarter,
Wabash National repurchased $19 million of shares and fully
exhausted the $60 million share repurchase program authorized by
the Board of Directors in December 2014. Additionally, in
December 2015 the Company entered into agreements with existing
holders of a portion of its outstanding Convertible Senior Notes
due 2018 to purchase up to $54.2 million in principal, of which
$19.0 million was purchased in December 2015, with the remaining
amount to be acquired in February 2016. Jeff Taylor, senior
vice president and chief financial officer, said, "Our continuing
strong business performance, solid backlog and outlook, and
financial position provided us the opportunity to take these
actions as part of our ongoing commitment to prudently manage the
overall financial risks of the Company, returning capital to our
shareholders and deleveraging our balance sheet. The actions
taken during 2015 will lower our overall balance sheet risk while
maintaining the flexibility to continue to execute our
strategy.”
New Stock Repurchase ProgramAs previously
announced, the Company’s Board of Directors approved the repurchase
of up to an additional $100 million of its common stock over a
two-year period as the previously authorized repurchase program in
December 2014 has been completed. Stock repurchases under
this program may be made in the open market or in private
transactions at times and in amounts determined by the
Company. The Company, at its sole discretion, may limit or
terminate the stock repurchase program at any time based on market
conditions, liquidity needs or other factors. The program is
intended to enhance shareholder value by reducing the overall
number of outstanding shares, including by offsetting dilution
resulting from stock-based compensation programs.
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 contains 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, impairment of intangibles and other non-operating
income and expense. Management believes operating EBITDA
provides useful information to investors regarding the Company’s
results of operations. The Company provides this measure
because we believe it is useful for investors to understand the
Company’s 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 income recognized on the sale
of former retail branch locations as well as charges related to
losses incurred in connection with the Company’s impairment of
intangible assets and the 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.
Fourth Quarter 2015 Conference CallWabash
National will conduct a conference call to review and discuss its
fourth quarter results on February 3, 2016, at 10:00 a.m.
EST. 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 May 3, 2016.
Meeting access also will be available via conference call at
888-771-4371, participant code 41621715.
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, dry
and refrigerated truck bodies, 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®, 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, the statements above under “2016 Outlook” as well as all
statements regarding the Company’s outlook for trailer shipments,
backlog, expectations regarding demand levels for trailers,
non-trailer equipment and our other engineered products, pricing,
profitability and earnings, cash flow and liquidity, opportunity to
capture higher margin sales, new product innovations, execution of
our capital allocation strategy and the Company’s ability to
repurchase shares of common stock of the Company 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 customer demand may not meet our
expectations, 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 December 31, |
|
Twelve Months Ended December 31, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
543,711 |
|
|
$ |
527,477 |
|
|
$ |
2,027,489 |
|
|
$ |
1,863,315 |
|
Cost of
sales |
|
|
455,892 |
|
|
|
464,756 |
|
|
|
1,724,046 |
|
|
|
1,630,681 |
|
|
Gross profit |
|
|
87,819 |
|
|
|
62,721 |
|
|
|
303,443 |
|
|
|
232,634 |
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses |
|
|
19,738 |
|
|
|
16,804 |
|
|
|
73,495 |
|
|
|
61,694 |
|
Selling
expenses |
|
|
7,017 |
|
|
|
6,315 |
|
|
|
27,233 |
|
|
|
26,676 |
|
Amortization of intangibles |
|
|
5,314 |
|
|
|
5,465 |
|
|
|
21,259 |
|
|
|
21,878 |
|
Other
operating expenses |
|
|
1,087 |
|
|
|
- |
|
|
|
1,087 |
|
|
|
- |
|
|
Income from
operations |
|
|
54,663 |
|
|
|
34,137 |
|
|
|
180,369 |
|
|
|
122,386 |
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense): |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(4,789 |
) |
|
|
(5,261 |
) |
|
|
(19,548 |
) |
|
|
(22,165 |
) |
|
Other, net |
|
|
(10 |
) |
|
|
(133 |
) |
|
|
2,490 |
|
|
|
(1,759 |
) |
|
Income before income
taxes |
|
|
49,864 |
|
|
|
28,743 |
|
|
|
163,311 |
|
|
|
98,462 |
|
Income tax
expense |
|
|
16,578 |
|
|
|
9,655 |
|
|
|
59,022 |
|
|
|
37,532 |
|
Net
income |
|
$ |
33,286 |
|
|
$ |
19,088 |
|
|
$ |
104,289 |
|
|
$ |
60,930 |
|
Basic net
income per share |
|
$ |
0.50 |
|
|
$ |
0.28 |
|
|
$ |
1.55 |
|
|
$ |
0.88 |
|
Diluted net
income per share |
|
$ |
0.50 |
|
|
$ |
0.27 |
|
|
$ |
1.50 |
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
33,286 |
|
|
$ |
19,088 |
|
|
$ |
104,289 |
|
|
$ |
60,930 |
|
|
Foreign currency
translation adjustment |
|
|
(121 |
) |
|
|
(574 |
) |
|
|
(863 |
) |
|
|
(619 |
) |
Net
comprehensive income |
|
$ |
33,165 |
|
|
$ |
18,514 |
|
|
$ |
103,426 |
|
|
$ |
60,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income per share: |
|
|
|
|
|
|
|
|
|
Net income applicable
to common stockholders |
|
$ |
33,286 |
|
|
$ |
19,088 |
|
|
$ |
104,289 |
|
|
$ |
60,930 |
|
|
Undistributed earnings
allocated to participating securities |
|
|
- |
|
|
|
(98 |
) |
|
|
- |
|
|
|
(481 |
) |
|
Net income applicable
to common stockholders excluding amounts |
|
|
|
|
|
|
|
|
|
applicable to participating securities |
|
$ |
33,286 |
|
|
$ |
18,990 |
|
|
$ |
104,289 |
|
|
$ |
60,449 |
|
|
Weighted average common
shares outstanding |
|
|
65,994 |
|
|
|
68,993 |
|
|
|
67,201 |
|
|
|
68,895 |
|
|
Basic net income per
share |
|
$ |
0.50 |
|
|
$ |
0.28 |
|
|
$ |
1.55 |
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income per share: |
|
|
|
|
|
|
|
|
|
Net income applicable
to common stockholders |
|
$ |
33,286 |
|
|
$ |
19,088 |
|
|
$ |
104,289 |
|
|
$ |
60,930 |
|
|
Undistributed earnings
allocated to participating securities |
|
|
- |
|
|
|
(98 |
) |
|
|
- |
|
|
|
(481 |
) |
|
Net income applicable
to common stockholders excluding |
|
|
|
|
|
|
|
|
|
amounts applicable to participating securities |
|
$ |
33,286 |
|
|
$ |
18,990 |
|
|
$ |
104,289 |
|
|
$ |
60,449 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding |
|
|
65,994 |
|
|
|
68,993 |
|
|
|
67,201 |
|
|
|
68,895 |
|
|
Dilutive shares from
assumed conversion of convertible senior notes |
|
|
125 |
|
|
|
- |
|
|
|
1,128 |
|
|
|
1,354 |
|
|
Dilutive stock options
and restricted stock |
|
|
1,099 |
|
|
|
692 |
|
|
|
1,039 |
|
|
|
814 |
|
|
Diluted weighted
average common shares outstanding |
|
|
67,218 |
|
|
|
69,685 |
|
|
|
69,368 |
|
|
|
71,063 |
|
|
Diluted net income per
share |
|
$ |
0.50 |
|
|
$ |
0.27 |
|
|
$ |
1.50 |
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WABASH NATIONAL CORPORATION |
|
SEGMENTS AND RELATED INFORMATION |
|
(Dollars in thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
Diversified |
|
|
|
Corporate and |
|
|
|
Three Months Ended December 31, |
|
Trailer Products |
|
Products |
|
Retail |
|
Eliminations |
|
Consolidated |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
16,100 |
|
|
|
750 |
|
|
|
450 |
|
|
|
(350 |
) |
|
|
16,950 |
|
|
Used
trailers shipped |
|
|
350 |
|
|
|
- |
|
|
|
200 |
|
|
|
- |
|
|
|
550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
399,706 |
|
|
$ |
48,416 |
|
|
$ |
13,208 |
|
|
$ |
(8,300 |
) |
|
$ |
453,030 |
|
|
Used
Trailers |
|
|
6,374 |
|
|
|
1,145 |
|
|
|
2,971 |
|
|
|
(404 |
) |
|
|
10,086 |
|
|
Components,
parts and service |
|
|
1,670 |
|
|
|
21,204 |
|
|
|
19,753 |
|
|
|
(3,254 |
) |
|
|
39,373 |
|
|
Equipment
and other |
|
|
5,579 |
|
|
|
35,107 |
|
|
|
842 |
|
|
|
(306 |
) |
|
|
41,222 |
|
|
|
Total net external
sales |
|
$ |
413,329 |
|
|
$ |
105,872 |
|
|
$ |
36,774 |
|
|
$ |
(12,264 |
) |
|
$ |
543,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
58,513 |
|
|
$ |
24,974 |
|
|
$ |
4,405 |
|
|
$ |
(73 |
) |
|
$ |
87,819 |
|
|
Income
(Loss) from operations |
|
$ |
51,412 |
|
|
$ |
11,557 |
|
|
$ |
590 |
|
|
$ |
(8,896 |
) |
|
$ |
54,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
15,750 |
|
|
|
1,050 |
|
|
|
900 |
|
|
|
(850 |
) |
|
|
16,850 |
|
|
Used
trailers shipped |
|
|
100 |
|
|
|
50 |
|
|
|
250 |
|
|
|
- |
|
|
|
400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
369,724 |
|
|
$ |
64,755 |
|
|
$ |
23,758 |
|
|
$ |
(18,181 |
) |
|
$ |
440,056 |
|
|
Used
Trailers |
|
|
1,788 |
|
|
|
1,248 |
|
|
|
3,976 |
|
|
|
- |
|
|
|
7,012 |
|
|
Components,
parts and service |
|
|
1,071 |
|
|
|
19,405 |
|
|
|
18,971 |
|
|
|
(3,375 |
) |
|
|
36,072 |
|
|
Equipment
and other |
|
|
5,736 |
|
|
|
37,595 |
|
|
|
989 |
|
|
|
17 |
|
|
|
44,337 |
|
|
|
Total net external
sales |
|
$ |
378,319 |
|
|
$ |
123,003 |
|
|
$ |
47,694 |
|
|
$ |
(21,539 |
) |
|
$ |
527,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
30,848 |
|
|
$ |
26,557 |
|
|
$ |
4,703 |
|
|
$ |
613 |
|
|
$ |
62,721 |
|
|
Income
(Loss) from operations |
|
$ |
25,193 |
|
|
$ |
14,236 |
|
|
$ |
595 |
|
|
$ |
(5,887 |
) |
|
$ |
34,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
61,350 |
|
|
|
3,400 |
|
|
|
2,500 |
|
|
|
(2,550 |
) |
|
|
64,700 |
|
|
Used
trailers shipped |
|
|
1,000 |
|
|
|
150 |
|
|
|
950 |
|
|
|
(50 |
) |
|
|
2,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
1,467,029 |
|
|
$ |
218,028 |
|
|
$ |
67,639 |
|
|
$ |
(60,467 |
) |
|
$ |
1,692,229 |
|
|
Used
Trailers |
|
|
19,962 |
|
|
|
4,558 |
|
|
|
13,622 |
|
|
|
(2,562 |
) |
|
|
35,580 |
|
|
Components,
parts and service |
|
|
6,300 |
|
|
|
93,251 |
|
|
|
83,115 |
|
|
|
(12,646 |
) |
|
|
170,020 |
|
|
Equipment
and other |
|
|
16,089 |
|
|
|
112,184 |
|
|
|
2,915 |
|
|
|
(1,528 |
) |
|
|
129,660 |
|
|
|
Total net external
sales |
|
$ |
1,509,380 |
|
|
$ |
428,021 |
|
|
$ |
167,291 |
|
|
$ |
(77,203 |
) |
|
$ |
2,027,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
186,772 |
|
|
$ |
98,839 |
|
|
$ |
19,871 |
|
|
$ |
(2,039 |
) |
|
$ |
303,443 |
|
|
Income
(Loss) from operations |
|
$ |
158,805 |
|
|
$ |
47,940 |
|
|
$ |
4,401 |
|
|
$ |
(30,777 |
) |
|
$ |
180,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
53,550 |
|
|
|
3,550 |
|
|
|
3,450 |
|
|
|
(3,200 |
) |
|
|
57,350 |
|
|
Used
trailers shipped |
|
|
3,150 |
|
|
|
150 |
|
|
|
1,550 |
|
|
|
- |
|
|
|
4,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
1,250,264 |
|
|
$ |
227,382 |
|
|
$ |
89,041 |
|
|
$ |
(72,862 |
) |
|
$ |
1,493,825 |
|
|
Used
Trailers |
|
|
23,576 |
|
|
|
4,593 |
|
|
|
16,946 |
|
|
|
- |
|
|
|
45,115 |
|
|
Components,
parts and service |
|
|
3,475 |
|
|
|
100,764 |
|
|
|
80,533 |
|
|
|
(14,183 |
) |
|
|
170,589 |
|
|
Equipment
and other |
|
|
16,849 |
|
|
|
133,499 |
|
|
|
3,560 |
|
|
|
(122 |
) |
|
|
153,786 |
|
|
|
Total net external
sales |
|
$ |
1,294,164 |
|
|
$ |
466,238 |
|
|
$ |
190,080 |
|
|
$ |
(87,167 |
) |
|
$ |
1,863,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
104,800 |
|
|
$ |
103,379 |
|
|
$ |
20,728 |
|
|
$ |
3,727 |
|
|
$ |
232,634 |
|
|
Income
(Loss) from operations |
|
$ |
81,141 |
|
|
$ |
54,879 |
|
|
$ |
3,785 |
|
|
$ |
(17,419 |
) |
|
$ |
122,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WABASH NATIONAL CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
(Unaudited) |
|
|
ASSETS |
Current
assets |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
178,853 |
|
|
$ |
146,113 |
|
|
Accounts
receivable |
|
|
152,824 |
|
|
|
135,206 |
|
|
Inventories |
|
|
166,982 |
|
|
|
177,144 |
|
|
Deferred
income taxes |
|
|
22,431 |
|
|
|
16,993 |
|
|
Prepaid
expenses and other |
|
|
8,417 |
|
|
|
10,203 |
|
|
|
Total current
assets |
|
$ |
529,507 |
|
|
$ |
485,659 |
|
|
|
|
|
|
|
|
Property,
plant and equipment |
|
|
140,438 |
|
|
|
142,892 |
|
|
|
|
|
|
|
|
Deferred
income taxes |
|
|
1,358 |
|
|
|
- |
|
|
|
|
|
|
|
|
Goodwill |
|
|
|
149,718 |
|
|
|
149,603 |
|
|
|
|
|
|
|
|
Intangible
assets |
|
|
114,616 |
|
|
|
137,100 |
|
|
|
|
|
|
|
|
Other
assets |
|
|
14,489 |
|
|
|
13,397 |
|
|
|
|
|
$ |
950,126 |
|
|
$ |
928,651 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current
liabilities |
|
|
|
|
|
Current
portion of long-term debt |
|
$ |
37,611 |
|
|
$ |
496 |
|
|
Current
portion of capital lease obligations |
|
|
806 |
|
|
|
1,458 |
|
|
Accounts
payable |
|
|
79,618 |
|
|
|
96,213 |
|
|
Other
accrued liabilities |
|
|
93,042 |
|
|
|
88,690 |
|
|
|
Total current
liabilities |
|
$ |
211,077 |
|
|
$ |
186,857 |
|
|
|
|
|
|
|
|
Long-term
debt |
|
|
275,341 |
|
|
|
324,777 |
|
|
|
|
|
|
|
|
Capital
lease obligations |
|
|
1,875 |
|
|
|
5,796 |
|
|
|
|
|
|
|
|
Deferred
income taxes |
|
|
1,497 |
|
|
|
2,349 |
|
|
|
|
|
|
|
|
Other
noncurrent liabilities |
|
|
20,525 |
|
|
|
18,040 |
|
|
|
|
|
|
|
|
Commitments
and contingencies |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
439,811 |
|
|
|
390,832 |
|
|
|
|
|
$ |
950,126 |
|
|
$ |
928,651 |
|
|
|
|
|
|
|
|
|
|
|
|
WABASH NATIONAL CORPORATION |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(Dollars in thousands) |
|
(Unaudited) |
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
|
Net
income |
$ |
104,289 |
|
|
$ |
60,930 |
|
|
|
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities |
|
|
|
|
|
Depreciation |
|
16,739 |
|
|
|
16,951 |
|
|
|
|
Amortization of intangibles |
|
21,259 |
|
|
|
21,878 |
|
|
|
|
Net (gain)
loss on the sale of assets |
|
(8,299 |
) |
|
|
13 |
|
|
|
|
Deferred
income taxes |
|
(7,749 |
) |
|
|
16,573 |
|
|
|
|
Loss on
debt extinguishment |
|
5,808 |
|
|
|
1,042 |
|
|
|
|
Stock-based
compensation |
|
10,010 |
|
|
|
7,833 |
|
|
|
|
Non-cash
interest expense |
|
5,222 |
|
|
|
5,994 |
|
|
|
|
Impairment
of intangibles |
|
1,087 |
|
|
|
- |
|
|
|
Changes in
operating assets and liabilities |
|
|
|
|
|
Accounts
receivable |
|
(17,618 |
) |
|
|
(14,848 |
) |
|
|
Inventories |
|
10,162 |
|
|
|
3,116 |
|
|
|
Prepaid
expenses and other |
|
1,786 |
|
|
|
(571 |
) |
|
|
Accounts
payable and accrued liabilities |
|
(12,243 |
) |
|
|
(26,787 |
) |
|
|
Other,
net |
|
1,342 |
|
|
|
511 |
|
|
|
Net cash
provided by operating activities |
$ |
131,795 |
|
|
$ |
92,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
|
Capital
expenditures |
|
(20,847 |
) |
|
|
(19,957 |
) |
|
|
Proceeds
from the sale of property, plant & equipment |
|
|
13,203 |
|
|
|
87 |
|
|
|
Other,
net |
|
- |
|
|
|
4,113 |
|
|
|
Net cash
(used in) investing activities |
$ |
(7,644 |
) |
|
$ |
(15,757 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
|
Proceeds
from exercise of stock options |
|
2,012 |
|
|
|
1,921 |
|
|
|
Borrowings
under revolving credit facilities |
|
1,134 |
|
|
|
806 |
|
|
|
Payments
under revolving credit facilities |
|
(1,134 |
) |
|
|
(806 |
) |
|
|
Principal
payments under capital lease obligations |
|
(4,201 |
) |
|
|
(1,898 |
) |
|
|
Proceeds
from issuance of term loan credit facility |
|
192,845 |
|
|
|
- |
|
|
|
Principal
payments under term loan credit facility |
|
(194,291 |
) |
|
|
(42,078 |
) |
|
|
Principal
payments under industrial revenue bond |
|
(496 |
) |
|
|
(475 |
) |
|
|
Debt
issuance costs paid |
|
(2,587 |
) |
|
|
- |
|
|
|
Convertible
notes repurchase |
|
(22,936 |
) |
|
|
- |
|
|
|
Stock
repurchase |
|
(61,757 |
) |
|
|
(1,497 |
) |
|
|
Net cash
(used in) financing activities |
$ |
(91,411 |
) |
|
$ |
(44,027 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents |
$ |
32,740 |
|
|
$ |
32,851 |
|
|
Cash and
cash equivalents at beginning of period |
|
146,113 |
|
|
|
113,262 |
|
|
Cash and
cash equivalents at end of period |
$ |
178,853 |
|
|
$ |
146,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, |
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
33,286 |
|
|
$ |
19,088 |
|
|
$ |
104,289 |
|
|
$ |
60,930 |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
16,578 |
|
|
|
9,655 |
|
|
|
59,022 |
|
|
|
37,532 |
|
|
|
|
|
|
|
|
|
Interest expense |
|
4,789 |
|
|
|
5,261 |
|
|
|
19,548 |
|
|
|
22,165 |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
9,538 |
|
|
|
9,686 |
|
|
|
37,997 |
|
|
|
38,829 |
|
|
|
|
|
|
|
|
|
Stock-based
compensation |
|
3,355 |
|
|
|
2,324 |
|
|
|
10,010 |
|
|
|
7,833 |
|
|
|
|
|
|
|
|
|
Impairment of
intangibles |
|
1,087 |
|
|
|
- |
|
|
|
1,087 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Other non-operating
(income) expense |
|
10 |
|
|
|
133 |
|
|
|
(2,490 |
) |
|
|
1,759 |
|
|
|
|
|
|
|
|
|
Operating EBITDA |
$ |
68,643 |
|
|
$ |
46,147 |
|
|
$ |
229,463 |
|
|
$ |
169,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
March 31, 2015 |
|
June 30, 2015 |
|
September 30, 2015 |
|
December 31, 2015 |
|
|
|
|
|
|
|
|
Net income |
$ |
10,474 |
|
|
$ |
28,649 |
|
|
$ |
31,880 |
|
|
$ |
33,286 |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
6,234 |
|
|
|
16,672 |
|
|
|
19,538 |
|
|
|
16,578 |
|
|
|
|
|
|
|
|
|
Interest expense |
|
5,173 |
|
|
|
4,802 |
|
|
|
4,784 |
|
|
|
4,789 |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
9,452 |
|
|
|
9,482 |
|
|
|
9,525 |
|
|
|
9,538 |
|
|
|
|
|
|
|
|
|
Stock-based
compensation |
|
2,420 |
|
|
|
2,119 |
|
|
|
2,116 |
|
|
|
3,355 |
|
|
|
|
|
|
|
|
|
Impairment of
intangibles |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,087 |
|
|
|
|
|
|
|
|
|
Other non-operating
(income) expense |
|
5,382 |
|
|
|
(8,069 |
) |
|
|
187 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
Operating EBITDA |
$ |
39,135 |
|
|
$ |
53,655 |
|
|
$ |
68,030 |
|
|
$ |
68,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Earnings2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
33,286 |
|
|
$ |
0.50 |
|
|
$ |
19,088 |
|
|
$ |
0.27 |
|
|
$ |
104,289 |
|
|
$ |
1.50 |
|
|
$ |
60,930 |
|
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation of net deferred income
tax assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
due to changes in statutory
tax rates |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,041 |
|
|
|
0.01 |
|
Branch Transactions, net of
taxes3 |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5,274 |
) |
|
|
(0.07 |
) |
|
|
376 |
|
|
|
0.01 |
|
Impairment of intangibles, net of
taxes |
|
726 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
726 |
|
|
|
0.01 |
|
|
|
- |
|
|
|
- |
|
Loss on debt extinguishment, net of
taxes |
|
126 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,651 |
|
|
|
0.05 |
|
|
|
645 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings |
$ |
34,138 |
|
|
$ |
0.51 |
|
|
$ |
19,088 |
|
|
$ |
0.27 |
|
|
$ |
103,392 |
|
|
$ |
1.49 |
|
|
$ |
62,992 |
|
|
$ |
0.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average # of
Diluted Shares O/S |
|
67,218 |
|
|
|
|
|
69,685 |
|
|
|
|
|
69,368 |
|
|
|
|
|
71,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
March 31, 2015 |
|
June 30, 2015 |
|
September 30, 2015 |
|
|
|
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
10,474 |
|
|
$ |
0.15 |
|
|
$ |
28,649 |
|
|
$ |
0.41 |
|
|
$ |
31,880 |
|
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on debt extinguishment, net of
taxes |
|
3,314 |
|
|
|
0.05 |
|
|
|
211 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Branch Transactions, net of
taxes |
|
- |
|
|
|
- |
|
|
|
(5,274 |
) |
|
|
(0.07 |
) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings |
$ |
13,788 |
|
|
$ |
0.19 |
|
|
$ |
23,586 |
|
|
$ |
0.33 |
|
|
$ |
31,880 |
|
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average # of
Diluted Shares O/S |
|
71,557 |
|
|
|
|
|
70,694 |
|
|
|
|
|
68,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Operating EBITDA is defined as earnings before interest,
taxes, depreciation, amortization, stock-based compensation,
impairment of intangibles 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 impairment of
intangible assets and the extinguishment of debt.
Historically, we have excluded from these measures the revaluation
of deferred income tax assets due to changes in statutory tax
rates. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Branch Transactions are comprised of the sale of
assets for three West Coast Retail branches in 2014 and the real
estate associated with these same branches in 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media Contact:
Dana Stelsel
Corporate Communications Manager Marketing
(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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