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, 2016.
Net income for the third quarter of 2016 was
$33.4 million, or $0.51 per diluted share, compared to the third
quarter 2015 net income of $31.9 million, or $0.47 per diluted
share. Third quarter 2016 non-GAAP adjusted earnings
increased $1.0 million, or 3 percent, over the prior year period to
$32.9 million. Non-GAAP adjusted earnings for the third
quarter of 2016 excludes a $0.7 million gain related to the
transition of a former branch location to a third-party dealer.
Net sales for the third quarter decreased 13
percent to $464 million from $531 million in the prior year quarter
while operating income decreased 3 percent to $54.9 million
compared to $56.4 million for the prior year period as favorable
pricing and operational execution across the business was offset by
lower volumes. Operating EBITDA, a non-GAAP measure that
excludes the effects of certain recurring and non-recurring items,
for the third quarter of 2016 was $66.8 million, a decrease of $1.2
million, or 2 percent, compared to operating EBITDA for the prior
year period. On a trailing twelve month basis, net sales
totaled $1.9 billion, generating Operating EBITDA of $268.0
million, or 13.9 percent of net sales. The continued strong
operating performances are attributable to the successful execution
of the Company’s growth and diversification strategy, strong demand
within the Commercial Trailer Products segment and outstanding
operational execution 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)
|
September 30, |
|
December 31, |
|
March 31, |
|
June 30, |
|
September 30, |
|
2015 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
531,350 |
|
|
$ |
543,711 |
|
|
$ |
447,676 |
|
|
$ |
471,438 |
|
|
$ |
464,272 |
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
Margin |
|
16.2 |
% |
|
|
16.2 |
% |
|
|
17.8 |
% |
|
|
19.3 |
% |
|
|
18.0 |
% |
|
|
|
|
|
|
|
|
|
|
Income from
Operations |
$ |
56,389 |
|
|
$ |
54,663 |
|
|
$ |
48,185 |
|
|
$ |
58,872 |
|
|
$ |
54,855 |
|
|
|
|
|
|
|
|
|
|
|
Income from Operations
Margin |
|
10.6 |
% |
|
|
10.1 |
% |
|
|
10.8 |
% |
|
|
12.5 |
% |
|
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
31,880 |
|
|
$ |
33,286 |
|
|
$ |
27,524 |
|
|
$ |
35,531 |
|
|
$ |
33,378 |
|
|
Diluted EPS |
$ |
0.47 |
|
|
$ |
0.50 |
|
|
$ |
0.42 |
|
|
$ |
0.53 |
|
|
$ |
0.51 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Measures(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating EBITDA |
$ |
68,030 |
|
|
$ |
68,643 |
|
|
$ |
59,819 |
|
|
$ |
72,754 |
|
|
$ |
66,822 |
|
|
Operating EBITDA
Margin |
|
12.8 |
% |
|
|
12.6 |
% |
|
|
13.4 |
% |
|
|
15.4 |
% |
|
|
14.4 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings |
$ |
31,880 |
|
|
$ |
34,138 |
|
|
$ |
27,831 |
|
|
$ |
36,610 |
|
|
$ |
32,901 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
$ |
0.47 |
|
|
$ |
0.51 |
|
|
$ |
0.42 |
|
|
$ |
0.55 |
|
|
$ |
0.50 |
|
Notes:(1) See “Non-GAAP Measures” below for explanation of the
non-GAAP results included above.
Dick Giromini, chief executive officer, stated,
“Third quarter results represent another quarter of delivering
strong financial results that validate our long-term strategic plan
and further demonstrate the progress we have made in executing that
plan to profitably grow and diversify the business. Despite
lower top-line revenues as compared to the prior year, we were able
to improve gross and operating profit margins by 180 basis points
and 120 basis points, respectively. The continued strong
financial performances of the Company over the past several
quarters further demonstrates our commitment to operational
excellence leveraging our long-standing expertise in lean
manufacturing and process improvements in addition to our ongoing
strategy to favor margin over volume in the core trailer
business.”
Mr. Giromini continued, “New trailer shipments
for the third quarter were approximately 15,450, just shy of
previous guidance of 15,500 to 16,500 trailers, driven by timing of
customer pick-ups and continued slow demand in our tank trailer
business. With three quarters now complete, a seasonally
strong backlog of $643 million and proven strong operational
execution, we look forward to completing 2016 as our fifth
consecutive year of record operating performance. In
addition, we also now expect 2016 total units to be at the low end
of our 60,000 to 62,000 shipment range communicated
previously. Longer term, while we do expect to see order
volumes moderate, we continue to believe the demand environment for
trailers will remain healthy as fleet age, regulatory compliance
requirements and customer profitability all support an extended
trailer cycle. Additionally, we expect continued efforts driving
productivity improvements throughout the business, developing
growth opportunities through new product introductions and market
expansion opportunities to contribute in growing our top line and
margins as well as in capitalizing on macro growth trends.”
Third Quarter Business Segment Highlights
The table below is a summary of select segment
operating and financial results prior to the elimination of
intersegment sales for the third quarters of 2016 and 2015,
respectively. As announced in the prior quarter, the Company
realigned its reporting segments effective in the second quarter of
2016. The former Retail segment will now be reported within
both Commercial Trailer Products and Diversified Products, as
applicable. The decision to strategically realign the Retail
segment was made to strengthen the alignment between the Company’s
manufacturing businesses and its retail sales and service
operations, improve profitability and capitalize on growth
opportunities. Prior year periods have been restated to
reflect this new segment alignment. 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 |
|
Three
months ended September 30, |
|
|
|
|
|
|
2016 |
|
|
|
|
|
New
trailers shipped |
|
|
14,900 |
|
|
|
550 |
|
|
Net
sales |
|
$ |
380,514 |
|
|
$ |
87,450 |
|
|
Gross
profit |
|
$ |
64,681 |
|
|
$ |
18,947 |
|
|
Gross
profit margin |
|
|
17.0 |
% |
|
|
21.7 |
% |
|
Income from
operations |
|
$ |
55,043 |
|
|
$ |
6,224 |
|
|
Income from
operations margin |
|
|
14.5 |
% |
|
|
7.1 |
% |
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
|
|
New
trailers shipped |
|
|
15,500 |
|
|
|
1,000 |
|
|
Net
sales |
|
$ |
406,410 |
|
|
$ |
127,787 |
|
|
Gross
profit |
|
$ |
55,355 |
|
|
$ |
30,978 |
|
|
Gross
profit margin |
|
|
13.6 |
% |
|
|
24.2 |
% |
|
Income from
operations |
|
$ |
45,789 |
|
|
$ |
17,601 |
|
|
Income from
operations margin |
|
|
11.3 |
% |
|
|
13.8 |
% |
|
|
|
|
|
|
|
|
Commercial Trailer Products’ net sales decreased
$26 million, or 6 percent, primarily due to a decline in new
trailer shipments as compared to the prior year period related to
the timing of customer pick-ups. Despite the lower revenues,
gross profit and gross profit margin increased $9.3 million and 340
basis points, respectively, as compared to the same period last
year due to continued execution of a pricing strategy committed to
favoring margin over volume, operational excellence within our
manufacturing facilities and continued material cost
optimization. Operating income increased $9.3 million, or 20
percent, from the third quarter last year to $55.0 million.
Diversified Products’ net sales decreased $40
million, or 32 percent, due primarily to the decline in tank
trailer shipments compared to the previous year period. The
decrease in tank trailer demand is primarily due to continued
softness in the chemical and energy end markets. As a result
of the lower demand levels, gross profit and gross profit as a
percentage of net sales decreased $12.0 million and 250 basis
points, respectively. Operating income for the third quarter
of 2016 was $6.2 million, or 7.1 percent of net sales, a decrease
of $11.4 million compared to the same period last year.
Non-GAAP Measures
In 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 goodwill and other intangible assets,
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 for the three- and nine-month periods ending
September 30, 2016 and 2015 reflect adjustments for non-recurring
charges incurred in connection with the impairment of goodwill and
other intangible assets, losses attributable to the Company’s
extinguishment of debt as well as income or losses recognized on
sale of former retail branch locations. Management believes
providing adjusted measures and excluding certain items facilitates
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 2016 Conference
Call
Wabash National will conduct a conference call
to review and discuss its third quarter results on October 25,
2016, 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 17, 2017. Meeting access also will be available via
conference call at 888-771-4371, participant code 43560432.
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 Statement
This 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
Company’s outlook for trailer shipments, backlog, expectations
regarding demand levels for trailers, non-trailer equipment and our
other diversified products, pricing, profitability and earnings,
cash flow and liquidity, opportunity to capture higher margin
sales, new product innovations, and our 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 September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
464,272 |
|
|
$ |
531,350 |
|
|
$ |
1,383,387 |
|
|
$ |
1,483,778 |
|
Cost of
sales |
|
|
380,813 |
|
|
|
445,328 |
|
|
|
1,129,338 |
|
|
|
1,268,153 |
|
|
Gross profit |
|
|
83,459 |
|
|
|
86,022 |
|
|
|
254,049 |
|
|
|
215,625 |
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses |
|
|
17,206 |
|
|
|
17,855 |
|
|
|
55,093 |
|
|
|
53,758 |
|
Selling
expenses |
|
|
6,415 |
|
|
|
6,462 |
|
|
|
20,421 |
|
|
|
20,216 |
|
Amortization of intangibles |
|
|
4,983 |
|
|
|
5,316 |
|
|
|
14,961 |
|
|
|
15,945 |
|
Impairment
of goodwill |
|
|
- |
|
|
|
- |
|
|
|
1,663 |
|
|
|
- |
|
|
Income from
operations |
|
|
54,855 |
|
|
|
56,389 |
|
|
|
161,911 |
|
|
|
125,706 |
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense): |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(3,906 |
) |
|
|
(4,784 |
) |
|
|
(11,938 |
) |
|
|
(14,759 |
) |
|
Other, net |
|
|
830 |
|
|
|
(187 |
) |
|
|
226 |
|
|
|
2,500 |
|
|
Income before income
taxes |
|
|
51,779 |
|
|
|
51,418 |
|
|
|
150,199 |
|
|
|
113,447 |
|
Income tax
expense |
|
|
18,401 |
|
|
|
19,538 |
|
|
|
53,766 |
|
|
|
42,445 |
|
Net
income |
|
$ |
33,378 |
|
|
$ |
31,880 |
|
|
$ |
96,433 |
|
|
$ |
71,002 |
|
Basic net
income per share |
|
$ |
0.52 |
|
|
$ |
0.48 |
|
|
$ |
1.50 |
|
|
$ |
1.05 |
|
Diluted net
income per share |
|
$ |
0.51 |
|
|
$ |
0.47 |
|
|
$ |
1.45 |
|
|
$ |
1.01 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
33,378 |
|
|
$ |
31,880 |
|
|
$ |
96,433 |
|
|
$ |
71,002 |
|
|
Foreign currency
translation adjustment |
|
|
(288 |
) |
|
|
(496 |
) |
|
|
(944 |
) |
|
|
(743 |
) |
Net
comprehensive income |
|
$ |
33,090 |
|
|
$ |
31,384 |
|
|
$ |
95,489 |
|
|
$ |
70,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income per share: |
|
|
|
|
|
|
|
|
|
Net income applicable
to common stockholders |
|
$ |
33,378 |
|
|
$ |
31,880 |
|
|
$ |
96,433 |
|
|
$ |
71,002 |
|
|
Weighted average common
shares outstanding |
|
|
63,604 |
|
|
|
66,524 |
|
|
|
64,488 |
|
|
|
67,608 |
|
|
Basic net income per
share |
|
$ |
0.52 |
|
|
$ |
0.48 |
|
|
$ |
1.50 |
|
|
$ |
1.05 |
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income per share: |
|
|
|
|
|
|
|
|
|
Net income applicable
to common stockholders |
|
$ |
33,378 |
|
|
$ |
31,880 |
|
|
$ |
96,433 |
|
|
$ |
71,002 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding |
|
|
63,604 |
|
|
|
66,524 |
|
|
|
64,488 |
|
|
|
67,608 |
|
|
Dilutive shares from
assumed conversion of convertible senior notes |
|
|
1,172 |
|
|
|
611 |
|
|
|
743 |
|
|
|
1,462 |
|
|
Dilutive stock options
and restricted stock |
|
|
1,256 |
|
|
|
907 |
|
|
|
1,222 |
|
|
|
1,019 |
|
|
Diluted weighted
average common shares outstanding |
|
|
66,032 |
|
|
|
68,042 |
|
|
|
66,453 |
|
|
|
70,089 |
|
|
Diluted net income per
share |
|
$ |
0.51 |
|
|
$ |
0.47 |
|
|
$ |
1.45 |
|
|
$ |
1.01 |
|
WABASH NATIONAL CORPORATION |
|
SEGMENTS AND RELATED INFORMATION |
|
(Dollars in thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
Diversified |
|
Corporate and |
|
|
|
Three Months Ended September 30, |
|
Trailer Products |
|
Products |
|
Eliminations |
|
Consolidated |
|
|
2016 |
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
14,900 |
|
|
|
550 |
|
|
|
- |
|
|
|
15,450 |
|
|
Used
trailers shipped |
|
|
200 |
|
|
|
50 |
|
|
|
- |
|
|
|
250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
360,023 |
|
|
$ |
32,280 |
|
|
$ |
(89 |
) |
|
$ |
392,214 |
|
|
Used
Trailers |
|
|
2,923 |
|
|
|
621 |
|
|
|
- |
|
|
|
3,544 |
|
|
Components,
parts and service |
|
|
14,038 |
|
|
|
29,308 |
|
|
|
(3,603 |
) |
|
|
39,743 |
|
|
Equipment
and other |
|
|
3,530 |
|
|
|
25,241 |
|
|
|
- |
|
|
|
28,771 |
|
|
|
Total net external
sales |
|
$ |
380,514 |
|
|
$ |
87,450 |
|
|
$ |
(3,692 |
) |
|
$ |
464,272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
64,681 |
|
|
$ |
18,947 |
|
|
$ |
(169 |
) |
|
$ |
83,459 |
|
|
Income
(Loss) from operations |
|
$ |
55,043 |
|
|
$ |
6,224 |
|
|
$ |
(6,412 |
) |
|
$ |
54,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
15,500 |
|
|
|
1,000 |
|
|
|
- |
|
|
|
16,500 |
|
|
Used
trailers shipped |
|
|
450 |
|
|
|
50 |
|
|
|
- |
|
|
|
500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
377,892 |
|
|
$ |
64,358 |
|
|
$ |
- |
|
|
$ |
442,250 |
|
|
Used
Trailers |
|
|
8,441 |
|
|
|
921 |
|
|
|
- |
|
|
|
9,362 |
|
|
Components,
parts and service |
|
|
16,067 |
|
|
|
32,715 |
|
|
|
(2,847 |
) |
|
|
45,935 |
|
|
Equipment
and other |
|
|
4,010 |
|
|
|
29,793 |
|
|
|
- |
|
|
|
33,803 |
|
|
|
Total net external
sales |
|
$ |
406,410 |
|
|
$ |
127,787 |
|
|
$ |
(2,847 |
) |
|
$ |
531,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
55,355 |
|
|
$ |
30,978 |
|
|
$ |
(311 |
) |
|
$ |
86,022 |
|
|
Income
(Loss) from operations |
|
$ |
45,789 |
|
|
$ |
17,601 |
|
|
$ |
(7,001 |
) |
|
$ |
56,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
44,250 |
|
|
|
1,600 |
|
|
|
|
|
45,850 |
|
|
Used
trailers shipped |
|
|
750 |
|
|
|
100 |
|
|
|
|
|
850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
1,061,819 |
|
|
$ |
96,285 |
|
|
$ |
(89 |
) |
|
$ |
1,158,015 |
|
|
Used
Trailers |
|
|
10,202 |
|
|
|
2,615 |
|
|
|
|
|
12,817 |
|
|
Components,
parts and service |
|
|
43,108 |
|
|
|
88,653 |
|
|
|
(9,900 |
) |
|
|
121,861 |
|
|
Equipment
and other |
|
|
11,638 |
|
|
|
79,056 |
|
|
|
|
|
90,694 |
|
|
|
Total net external
sales |
|
$ |
1,126,767 |
|
|
$ |
266,609 |
|
|
$ |
(9,989 |
) |
|
$ |
1,383,387 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
194,104 |
|
|
$ |
62,095 |
|
|
$ |
(2,150 |
) |
|
$ |
254,049 |
|
|
Income
(Loss) from operations |
|
$ |
162,435 |
|
|
$ |
23,471 |
|
|
$ |
(23,995 |
) |
|
$ |
161,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
45,100 |
|
|
|
2,650 |
|
|
|
- |
|
|
|
47,750 |
|
|
Used
trailers shipped |
|
|
1,350 |
|
|
|
100 |
|
|
|
- |
|
|
|
1,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
1,069,588 |
|
|
$ |
169,612 |
|
|
$ |
- |
|
|
$ |
1,239,200 |
|
|
Used
Trailers |
|
|
22,081 |
|
|
|
3,413 |
|
|
|
- |
|
|
|
25,494 |
|
|
Components,
parts and service |
|
|
45,686 |
|
|
|
93,632 |
|
|
|
(8,670 |
) |
|
|
130,648 |
|
|
Equipment
and other |
|
|
10,908 |
|
|
|
77,576 |
|
|
|
(48 |
) |
|
|
88,436 |
|
|
|
Total net external
sales |
|
$ |
1,148,263 |
|
|
$ |
344,233 |
|
|
$ |
(8,718 |
) |
|
$ |
1,483,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
136,667 |
|
|
$ |
80,010 |
|
|
$ |
(1,052 |
) |
|
$ |
215,625 |
|
|
Income
(Loss) from operations |
|
$ |
107,948 |
|
|
$ |
38,725 |
|
|
$ |
(20,967 |
) |
|
$ |
125,706 |
|
|
WABASH NATIONAL CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
(Unaudited) |
|
|
ASSETS |
Current
assets |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
189,641 |
|
|
$ |
178,853 |
|
|
Accounts
receivable |
|
|
157,941 |
|
|
|
152,824 |
|
|
Inventories |
|
|
195,149 |
|
|
|
166,982 |
|
|
Deferred
income taxes |
|
|
- |
|
|
|
22,431 |
|
|
Prepaid
expenses and other |
|
|
19,438 |
|
|
|
8,417 |
|
|
|
Total current
assets |
|
$ |
562,169 |
|
|
$ |
529,507 |
|
|
|
|
|
|
|
|
Property,
plant and equipment |
|
|
139,456 |
|
|
|
140,438 |
|
|
|
|
|
|
|
|
Deferred
income taxes |
|
|
23,261 |
|
|
|
1,358 |
|
|
|
|
|
|
|
|
Goodwill |
|
|
|
148,285 |
|
|
|
149,718 |
|
|
|
|
|
|
|
|
Intangible
assets |
|
|
99,487 |
|
|
|
114,616 |
|
|
|
|
|
|
|
|
Other
assets |
|
|
19,159 |
|
|
|
14,033 |
|
|
|
|
|
$ |
991,817 |
|
|
$ |
949,670 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current
liabilities |
|
|
|
|
|
Current
portion of long-term debt |
|
$ |
2,462 |
|
|
$ |
37,611 |
|
|
Current
portion of capital lease obligations |
|
|
568 |
|
|
|
806 |
|
|
Accounts
payable |
|
|
104,549 |
|
|
|
79,618 |
|
|
Other
accrued liabilities |
|
|
83,647 |
|
|
|
93,042 |
|
|
|
Total current
liabilities |
|
$ |
191,226 |
|
|
$ |
211,077 |
|
|
|
|
|
|
|
|
Long-term
debt |
|
|
278,027 |
|
|
|
274,885 |
|
|
|
|
|
|
|
|
Capital
lease obligations |
|
|
1,480 |
|
|
|
1,875 |
|
|
|
|
|
|
|
|
Deferred
income taxes |
|
|
543 |
|
|
|
1,497 |
|
|
|
|
|
|
|
|
Other
noncurrent liabilities |
|
|
23,607 |
|
|
|
20,525 |
|
|
|
|
|
|
|
|
Commitments
and contingencies |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
496,934 |
|
|
|
439,811 |
|
|
|
|
|
$ |
991,817 |
|
|
$ |
949,670 |
|
WABASH NATIONAL CORPORATION |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(Dollars in thousands) |
|
(Unaudited) |
|
|
|
|
Nine Months Ended September 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
|
Net
income |
$ |
96,433 |
|
|
$ |
71,002 |
|
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities |
|
|
|
|
|
Depreciation |
|
12,241 |
|
|
|
12,514 |
|
|
|
|
Amortization of intangibles |
|
14,961 |
|
|
|
15,945 |
|
|
|
|
Net
loss/(gain) on the sale of assets |
|
|
|
40 |
|
|
|
(8,315 |
) |
|
|
|
Deferred
income taxes |
|
(935 |
) |
|
|
(4,772 |
) |
|
|
|
Excess tax
benefits from stock-based compensation |
|
(509 |
) |
|
|
- |
|
|
|
|
Loss on
debt extinguishment |
|
487 |
|
|
|
5,620 |
|
|
|
|
Stock-based
compensation |
|
8,618 |
|
|
|
6,655 |
|
|
|
|
Impairment
of goodwill |
|
1,663 |
|
|
|
- |
|
|
|
|
Non-cash interest expense |
|
2,718 |
|
|
|
3,366 |
|
|
|
Changes in
operating assets and liabilities |
|
|
|
|
|
Accounts
receivable |
|
(5,117 |
) |
|
|
(3,744 |
) |
|
|
Inventories |
|
(29,587 |
) |
|
|
(50,366 |
) |
|
|
Prepaid
expenses and other |
|
(11,021 |
) |
|
|
(2,704 |
) |
|
|
Accounts
payable and accrued liabilities |
|
15,478 |
|
|
|
58,465 |
|
|
|
Other,
net |
|
496 |
|
|
|
1,025 |
|
|
|
Net cash
provided by operating activities |
$ |
105,966 |
|
|
$ |
104,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
|
Capital
expenditures |
|
(15,045 |
) |
|
|
(12,554 |
) |
|
|
Proceeds
from the sale of property, plant and equipment |
|
14 |
|
|
|
13,180 |
|
|
|
Other,
net |
|
2,268 |
|
|
|
(5,358 |
) |
|
|
Net cash
used in investing activities |
$ |
(12,763 |
) |
|
$ |
(4,732 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
|
Proceeds
from exercise of stock options |
|
2,341 |
|
|
|
1,959 |
|
|
|
Excess tax
benefits from stock-based compensation |
|
|
509 |
|
|
|
- |
|
|
|
Borrowings
under revolving credit facilities |
|
455 |
|
|
|
665 |
|
|
|
Payments
under revolving credit facilities |
|
(455 |
) |
|
|
(613 |
) |
|
|
Principal
payments under capital lease obligations |
|
(633 |
) |
|
|
(3,964 |
) |
|
|
Proceeds
from issuance of term loan credit facility |
|
- |
|
|
|
192,845 |
|
|
|
Principal
payments under term loan credit facility |
|
(1,446 |
) |
|
|
(193,809 |
) |
|
|
Principal
payments under industrial revenue bond |
|
(386 |
) |
|
|
(370 |
) |
|
|
Debt
issuance costs paid |
|
- |
|
|
|
(2,581 |
) |
|
|
Stock
repurchase |
|
(40,739 |
) |
|
|
(43,017 |
) |
|
|
Convertible
senior notes repurchase |
|
(42,061 |
) |
|
|
- |
|
|
|
Net cash
used in financing activities |
$ |
(82,415 |
) |
|
$ |
(48,885 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase in cash and cash equivalents |
$ |
10,788 |
|
|
$ |
51,074 |
|
|
Cash and
cash equivalents at beginning of period |
|
178,853 |
|
|
|
146,113 |
|
|
Cash and
cash equivalents at end of period |
$ |
189,641 |
|
|
$ |
197,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
33,378 |
|
|
$ |
31,880 |
|
|
$ |
96,433 |
|
|
$ |
71,002 |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
18,401 |
|
|
|
19,538 |
|
|
|
53,766 |
|
|
|
42,445 |
|
|
|
|
|
|
|
|
|
Interest expense |
|
3,906 |
|
|
|
4,784 |
|
|
|
11,938 |
|
|
|
14,759 |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
9,052 |
|
|
|
9,525 |
|
|
|
27,202 |
|
|
|
28,459 |
|
|
|
|
|
|
|
|
|
Stock-based
compensation |
|
2,915 |
|
|
|
2,116 |
|
|
|
8,618 |
|
|
|
6,655 |
|
|
|
|
|
|
|
|
|
Impairment of
goodwill |
|
- |
|
|
|
- |
|
|
|
1,663 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Other non-operating
(income) expense |
|
(830 |
) |
|
|
187 |
|
|
|
(226 |
) |
|
|
(2,500 |
) |
|
|
|
|
|
|
|
|
Operating EBITDA |
$ |
66,822 |
|
|
$ |
68,030 |
|
|
$ |
199,394 |
|
|
$ |
160,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Trailing Twelve Months |
|
|
|
|
|
|
|
December 31, 2015 |
|
March 31, 2016 |
|
June 30, 2016 |
|
September 30, 2016 |
|
September 30, 2016 |
|
|
|
|
|
|
Net income |
$ |
33,286 |
|
|
$ |
27,524 |
|
|
$ |
35,531 |
|
|
$ |
33,378 |
|
|
$ |
129,719 |
|
|
|
|
|
|
|
Income tax expense |
|
16,578 |
|
|
|
16,168 |
|
|
|
19,197 |
|
|
|
18,401 |
|
|
|
70,344 |
|
|
|
|
|
|
|
Interest expense |
|
4,789 |
|
|
|
4,095 |
|
|
|
3,937 |
|
|
|
3,906 |
|
|
|
16,727 |
|
|
|
|
|
|
|
Depreciation and
amortization |
|
9,538 |
|
|
|
9,164 |
|
|
|
8,987 |
|
|
|
9,052 |
|
|
|
36,741 |
|
|
|
|
|
|
|
Stock-based
compensation |
|
3,355 |
|
|
|
2,470 |
|
|
|
3,232 |
|
|
|
2,915 |
|
|
|
11,972 |
|
|
|
|
|
|
|
Impairment of
goodwill |
|
- |
|
|
|
- |
|
|
|
1,663 |
|
|
|
- |
|
|
|
1,663 |
|
|
|
|
|
|
|
Impairment of
intangibles |
|
1,087 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,087 |
|
|
|
|
|
|
|
Other non-operating
expense (income) |
|
10 |
|
|
|
398 |
|
|
|
207 |
|
|
|
(830 |
) |
|
|
(215 |
) |
|
|
|
|
|
|
Operating EBITDA |
$ |
68,643 |
|
|
$ |
59,819 |
|
|
$ |
72,754 |
|
|
$ |
66,822 |
|
|
$ |
268,038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Earnings2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
33,378 |
|
|
$ |
0.51 |
|
|
$ |
31,880 |
|
|
$ |
0.47 |
|
|
$ |
96,433 |
|
|
$ |
1.45 |
|
|
$ |
71,002 |
|
|
$ |
1.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branch transactions |
|
(740 |
) |
|
|
(0.01 |
) |
|
|
- |
|
|
|
- |
|
|
|
(740 |
) |
|
|
(0.01 |
) |
|
|
(8,345 |
) |
|
|
(0.12 |
) |
Loss on debt extinguishment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
487 |
|
|
|
0.01 |
|
|
|
5,619 |
|
|
|
0.08 |
|
Impairment of goodwill |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,663 |
|
|
|
0.03 |
|
|
|
- |
|
|
|
- |
|
Tax effect on aforementioned
items |
|
263 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(505 |
) |
|
|
(0.01 |
) |
|
|
977 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings |
$ |
32,901 |
|
|
$ |
0.50 |
|
|
$ |
31,880 |
|
|
$ |
0.47 |
|
|
$ |
97,338 |
|
|
$ |
1.46 |
|
|
$ |
69,253 |
|
|
$ |
0.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average # of
Diluted Shares O/S |
|
66,032 |
|
|
|
|
|
68,042 |
|
|
|
|
|
66,453 |
|
|
|
|
|
70,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
December 31, 2015 |
|
March 31, 2016 |
|
June 30, 2016 |
|
|
|
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
33,286 |
|
|
$ |
0.50 |
|
|
$ |
27,524 |
|
|
$ |
0.42 |
|
|
$ |
35,531 |
|
|
$ |
0.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on debt extinguishment |
|
188 |
|
|
|
- |
|
|
|
487 |
|
|
|
0.01 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Impairment of goodwill |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,663 |
|
|
|
0.02 |
|
|
|
|
|
Impairment of intangibles |
|
1,087 |
|
|
|
0.02 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Branch transactions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Tax effect on aforementioned
items |
|
(423 |
) |
|
|
(0.01 |
) |
|
|
(180 |
) |
|
|
- |
|
|
|
(584 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings |
$ |
34,138 |
|
|
$ |
0.51 |
|
|
$ |
27,831 |
|
|
$ |
0.42 |
|
|
$ |
36,610 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average # of
Diluted Shares O/S |
|
67,218 |
|
|
|
|
|
66,224 |
|
|
|
|
|
67,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Operating EBITDA is defined as earnings before interest,
taxes, depreciation, amortization, stock-based compensation, other
operating income and expense and other non-operating income and
expense. |
2Adjusted earnings and adjusted earnings per diluted share
reflect adjustments for non-recurring gains on transition of retail
branch locations to third-party dealers. Historically, we
have also excluded income recognized on the sale of former retail
branch locations, as well as charges incurred for extinguishment of
debt and impairment of goodwill and other intangible assets. |
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
Wabash National (NYSE:WNC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Wabash National (NYSE:WNC)
Historical Stock Chart
From Apr 2023 to Apr 2024