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, 2016.
Net income for the fourth quarter of 2016 was
$23.0 million, or $0.36 per diluted share, compared to the fourth
quarter of 2015 net income of $33.3 million, or $0.50 per diluted
share. Fourth quarter 2016 non-GAAP adjusted earnings
decreased $9.9 million as compared to the prior year period to
$24.2 million, or $0.38 per diluted share. Non-GAAP adjusted
earnings for the fourth quarter of 2016 excludes an early
extinguishment of debt charge of $1.4 million incurred in
connection with the Company’s purchase of a portion of its
outstanding convertible senior notes and $0.5 million of expenses
incurred related to the closing of former branch locations.
Net sales for the fourth quarter decreased 15 percent to $462
million from $544 million in the prior year quarter and operating
income decreased 26 percent to $40.6 million compared to operating
income of $54.7 million for the fourth quarter of 2015.
Operating EBITDA, a non-GAAP measure that excludes the effects of
certain items, for the fourth quarter of 2016 was $53.6 million, a
decrease of $15.0 million compared to operating EBITDA for the
previous year quarter.
For the twelve months ended December 31, 2016,
the Company reported net income of $119.4 million, or $1.82 per
diluted share, on net sales of $1.85 billion, compared to net
income of $104.3 million, or $1.50 per diluted share, on net sales
of $2.03 billion for the twelve months ended December 31, 2015.
Full-year 2016 results included charges, net of tax, totaling $2.1
million, or $0.03 per diluted share, related to the early
extinguishment of debt incurred with the Company’s purchase of a
portion of the outstanding convertible senior notes and the
impairment of intangible assets in connection with the Company’s
segment realignment announced earlier this year. These
charges were slightly offset by gains from the transition and sale
of former branch locations. Excluding the impact of these
items, non-GAAP adjusted earnings for the full-year 2016 were
$121.5 million, or $1.85 per diluted share. Full-year 2015
results include 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.
For the full-year 2016, the Company achieved
record operating EBITDA of $253.0 million, or 13.7 percent of net
sales, as compared to $229.5 million, or 11.3 percent of net sales,
for the previous year. The year-over-year improvement in operating
performance is attributable to the continued strong demand and
outstanding operational execution within the Commercial Trailer
Products segment, effective cost management within the Diversified
Products segment, along with the realized impact of capital
investments in automation and productivity.
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, |
|
2015 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
543,711 |
|
|
$ |
447,676 |
|
|
$ |
471,438 |
|
|
$ |
464,272 |
|
|
$ |
462,057 |
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
Margin |
|
16.2 |
% |
|
|
17.8 |
% |
|
|
19.3 |
% |
|
|
18.0 |
% |
|
|
15.5 |
% |
|
|
|
|
|
|
|
|
|
|
Income from
Operations |
$ |
54,663 |
|
|
$ |
48,185 |
|
|
$ |
58,872 |
|
|
$ |
54,855 |
|
|
$ |
40,621 |
|
|
|
|
|
|
|
|
|
|
|
Income from Operations
Margin |
|
10.1 |
% |
|
|
10.8 |
% |
|
|
12.5 |
% |
|
|
11.8 |
% |
|
|
8.8 |
% |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
33,286 |
|
|
$ |
27,524 |
|
|
$ |
35,531 |
|
|
$ |
33,378 |
|
|
$ |
23,000 |
|
|
|
Diluted EPS |
$ |
0.50 |
|
|
$ |
0.42 |
|
|
$ |
0.53 |
|
|
$ |
0.51 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Measures(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating EBITDA |
$ |
68,643 |
|
|
$ |
59,820 |
|
|
$ |
72,752 |
|
|
$ |
66,821 |
|
|
$ |
53,606 |
|
|
|
Operating EBITDA
Margin |
|
12.6 |
% |
|
|
13.4 |
% |
|
|
15.4 |
% |
|
|
14.4 |
% |
|
|
11.6 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings |
$ |
34,138 |
|
|
$ |
27,831 |
|
|
$ |
36,610 |
|
|
$ |
32,901 |
|
|
$ |
24,213 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
$ |
0.51 |
|
|
$ |
0.42 |
|
|
$ |
0.55 |
|
|
$ |
0.50 |
|
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:(1) See “Non-GAAP Measures” below for
explanation of the non-GAAP results included above.
The following is a summary of select operating and financial
results for each of the last five years ending December 31,
2016:
|
|
|
Twelve Months Ended |
(Dollars in thousands, except per share amounts) |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2012 |
|
|
|
2013 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
|
Net Sales |
|
$ |
1,461,854 |
|
|
$ |
1,635,686 |
|
|
$ |
1,863,315 |
|
|
$ |
2,027,489 |
|
|
$ |
1,845,444 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
Margin |
|
|
11.2 |
% |
|
|
13.2 |
% |
|
|
12.5 |
% |
|
|
15.0 |
% |
|
|
17.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations |
|
$ |
70,484 |
|
|
$ |
103,191 |
|
|
$ |
122,386 |
|
|
$ |
180,369 |
|
|
$ |
202,532 |
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations
Margin |
|
|
4.8 |
% |
|
|
6.3 |
% |
|
|
6.6 |
% |
|
|
8.9 |
% |
|
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
105,631 |
|
|
$ |
46,308 |
|
|
$ |
60,930 |
|
|
$ |
104,289 |
|
|
$ |
119,433 |
|
|
|
Diluted EPS |
|
$ |
1.53 |
|
|
$ |
0.67 |
|
|
$ |
0.85 |
|
|
$ |
1.50 |
|
|
$ |
1.82 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Measures(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating EBITDA |
|
$ |
118,507 |
|
|
$ |
149,890 |
|
|
$ |
169,048 |
|
|
$ |
229,464 |
|
|
$ |
253,002 |
|
|
|
Operating EBITDA
Margin |
|
|
8.1 |
% |
|
|
9.2 |
% |
|
|
9.1 |
% |
|
|
11.3 |
% |
|
|
13.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings |
|
$ |
64,849 |
|
|
$ |
48,190 |
|
|
$ |
62,992 |
|
|
$ |
103,392 |
|
|
$ |
121,538 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
|
$ |
0.95 |
|
|
$ |
0.70 |
|
|
$ |
0.89 |
|
|
$ |
1.49 |
|
|
$ |
1.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:(1) See “Non-GAAP Measures” below for explanation of the
non-GAAP results included above.
Dick Giromini, chief executive officer, stated,
“We are extremely pleased with our consolidated results for 2016 as
we set new records in gross profit, gross profit margin, operating
income and operating margin. The overall strength in the
Company’s operating performance highlights the significant progress
made through 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 leveraging our expertise in lean and six sigma
optimization initiatives. These efforts made possible the
achievement of record operating income for a fifth consecutive
year, at $202.5 million, as well as a 210 basis point improvement
in operating income margin to a record level of 11.0 percent.”
Mr. Giromini continued, “New trailer shipments
of 60,950 for the year exceeded our previous guidance, driven by
strong customer pick-up. We enter 2017 with a strong backlog
of orders totaling $802 million, an increase of 25 percent compared
to the previous quarter. While we expect order volumes to
moderate from the historically elevated levels experienced in 2016
and 2015, we continue to believe the demand environment for
trailers will remain healthy as fleet age, regulatory compliance
requirements and customer profitability all support a continuation
of an extended trailer cycle. That said, we remain laser-focused on
driving further productivity improvements throughout the business,
optimizing the cost structure and performance of our Diversified
Products segment, and developing new growth opportunities through
new product and market expansion efforts.”
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 and full-year periods of 2016 and 2015. As
announced in the prior quarter, the Company realigned its reporting
segments effective in the second quarter of 2016. The former
Retail segment is reported within both Commercial Trailer Products
and Diversified Products, as applicable. 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 Trailer Products |
|
|
Diversified Products |
Three
months ended December 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
2016 |
|
|
|
2015 |
|
New
trailers shipped |
|
|
14,600 |
|
|
|
16,200 |
|
|
|
|
550 |
|
|
|
750 |
|
Net
sales |
|
$ |
379,343 |
|
|
$ |
433,977 |
|
|
|
$ |
85,795 |
|
|
$ |
112,694 |
|
Gross
profit |
|
$ |
59,171 |
|
|
$ |
61,109 |
|
|
|
$ |
13,535 |
|
|
$ |
27,011 |
|
Gross
profit margin |
|
|
15.6 |
% |
|
|
14.1 |
% |
|
|
|
15.8 |
% |
|
|
24.0 |
% |
Income from
operations |
|
$ |
49,917 |
|
|
$ |
51,437 |
|
|
|
$ |
1,124 |
|
|
$ |
12,352 |
|
Income from
operations margin |
|
13.2 |
% |
|
|
11.9 |
% |
|
|
|
1.3 |
% |
|
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Twelve
months ended December 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
2016 |
|
|
|
2015 |
|
New
trailers shipped |
|
|
58,850 |
|
|
|
61,300 |
|
|
|
|
2,100 |
|
|
|
3,400 |
|
Net
sales |
|
$ |
1,506,110 |
|
|
$ |
1,582,241 |
|
|
|
$ |
352,404 |
|
|
$ |
456,927 |
|
Gross
profit |
|
$ |
253,274 |
|
|
$ |
197,777 |
|
|
|
$ |
75,630 |
|
|
$ |
107,023 |
|
Gross
profit margin |
|
|
16.8 |
% |
|
|
12.5 |
% |
|
|
|
21.5 |
% |
|
|
23.4 |
% |
Income from
operations |
|
$ |
212,351 |
|
|
$ |
159,385 |
|
|
|
$ |
24,595 |
|
|
$ |
51,078 |
|
Income from
operations margin |
|
14.1 |
% |
|
|
10.1 |
% |
|
|
|
7.0 |
% |
|
|
11.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Trailer Products’ gross profit margin
for the fourth quarter increased 150 basis points as compared to
the prior year period in spite of the $55 million, or 13 percent,
decrease in net sales. The year-over-year decline in net
sales is primarily due to lower new trailer shipments, while the
increase in gross profit margin is 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
decreased $1.5 million, or 3 percent, from the fourth quarter last
year to $49.9 million, or 13.2 percent of net sales.
Diversified Products’ net sales for the fourth
quarter decreased $27 million, or 24 percent, due primarily to the
decline in tank trailer shipments compared to the previous year
period. The decrease in tank trailer demand is attributed to
continued softness in the chemical and energy end markets. As
a result of the lower demand levels, gross profit and gross profit
margin decreased $13.5 million and 820 basis points,
respectively. Operating income for the fourth quarter of 2016
was $1.1 million, or 1.3 percent of net sales, a decrease of $11.2
million compared to the same period last year.
2017 Outlook“We enter 2017 with
great momentum from a record 2016, a healthy trailer demand
environment generating a strong backlog, continued excellence in
operational performance, and the potential for organic growth
through diversification and innovative new product introductions,”
Mr. Giromini explained. “Coupled with an industry demand
forecast that is meaningfully above replacement demand levels for a
fourth consecutive year, our full-year new trailer and earnings
guidance for 2017 is 51,000 to 55,000 units and $1.40 to $1.55 per
diluted share.”
Capital AllocationFor the three
and twelve month periods ending December 31, 2016, Wabash National
repurchased $38.8 million and $77.0 million, respectively, of
shares under the Company’s share repurchase program authorized by
the Board of Directors in February 2016. In addition, during
the fourth quarter of 2016 the Company purchased $46.9 million in
principal of its outstanding convertible notes and for the full
year purchased $82.0 million in principal. Furthermore, in
December 2016 the Company announced the reinstatement of a dividend
program by which it will pay a regular quarterly cash dividend to
the stockholders of its common stock.
Jeff Taylor, senior vice president and chief
financial officer, stated, "These actions demonstrate the
confidence in our financial outlook and our ability to generate
free cash flow, both near and long term, and reinforces our
commitment to deliver shareholder value while maintaining the
flexibility to continue to execute our strategic plan for
profitable growth and diversification.”
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 goodwill and other intangible assets,
and other non-operating income and expense. Management
believes providing operating EBITDA is useful for investors to
understand the Company’s performance and results of operations
period to period with the exclusion of the items identified
above. Management believes the presentation of operating
EBITDA, when combined with the GAAP presentations of operating
income and net 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 twelve-month periods ending
December 31, 2016 and 2015 reflect adjustments for charges incurred
in connection with the losses attributable to the Company’s
extinguishment of debt, impairment of goodwill and other intangible
assets, as well as income or losses recognized on sale of former
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 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 net income
per diluted share is included in the tables following this
release.
Fourth Quarter and Full-Year 2016
Conference CallWabash National will conduct a conference
call to review and discuss its fourth quarter and full-year results
on February 1, 2017 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 April 26, 2017.
Meeting access also will be available via conference call at
888-771-4371, participant code 44112814.
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
“2017 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
diversified product offerings, pricing, profitability and earnings,
cash flow and liquidity, opportunity to capture higher margin
sales, new product innovations, our growth and diversification
strategies and our expectations with regards to capital
allocation. 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 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 operations 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, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
462,057 |
|
|
$ |
543,711 |
|
|
$ |
1,845,444 |
|
|
$ |
2,027,489 |
|
Cost of
sales |
|
|
390,572 |
|
|
|
455,892 |
|
|
|
1,519,910 |
|
|
|
1,724,046 |
|
|
Gross profit |
|
|
71,485 |
|
|
|
87,819 |
|
|
|
325,534 |
|
|
|
303,443 |
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses |
|
|
19,036 |
|
|
|
19,738 |
|
|
|
74,129 |
|
|
|
73,495 |
|
Selling
expenses |
|
|
6,849 |
|
|
|
7,017 |
|
|
|
27,270 |
|
|
|
27,233 |
|
Amortization of intangibles |
|
|
4,979 |
|
|
|
5,314 |
|
|
|
19,940 |
|
|
|
21,259 |
|
Other
operating expenses |
|
|
- |
|
|
|
1,087 |
|
|
|
1,663 |
|
|
|
1,087 |
|
|
Income from
operations |
|
|
40,621 |
|
|
|
54,663 |
|
|
|
202,532 |
|
|
|
180,369 |
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense): |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(3,725 |
) |
|
|
(4,789 |
) |
|
|
(15,663 |
) |
|
|
(19,548 |
) |
|
Other, net |
|
|
(1,679 |
) |
|
|
(10 |
) |
|
|
(1,452 |
) |
|
|
2,490 |
|
|
Income before income
taxes |
|
|
35,217 |
|
|
|
49,864 |
|
|
|
185,417 |
|
|
|
163,311 |
|
Income tax
expense |
|
|
12,217 |
|
|
|
16,578 |
|
|
|
65,984 |
|
|
|
59,022 |
|
Net
income |
|
$ |
23,000 |
|
|
$ |
33,286 |
|
|
$ |
119,433 |
|
|
$ |
104,289 |
|
Basic net
income per share |
|
$ |
0.37 |
|
|
$ |
0.50 |
|
|
$ |
1.87 |
|
|
$ |
1.55 |
|
Diluted net
income per share |
|
$ |
0.36 |
|
|
$ |
0.50 |
|
|
$ |
1.82 |
|
|
$ |
1.50 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
23,000 |
|
|
$ |
33,286 |
|
|
$ |
119,433 |
|
|
$ |
104,289 |
|
|
Foreign currency
translation adjustment |
|
|
(403 |
) |
|
|
(121 |
) |
|
|
(1,347 |
) |
|
|
(863 |
) |
Net
comprehensive income |
|
$ |
22,597 |
|
|
$ |
33,165 |
|
|
$ |
118,086 |
|
|
$ |
103,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income per share: |
|
|
|
|
|
|
|
|
|
Net income applicable
to common stockholders |
|
$ |
23,000 |
|
|
$ |
33,286 |
|
|
$ |
119,433 |
|
|
$ |
104,289 |
|
|
Weighted average common
shares outstanding |
|
|
61,469 |
|
|
|
65,994 |
|
|
|
63,729 |
|
|
|
67,201 |
|
|
Basic net income per
share |
|
$ |
0.37 |
|
|
$ |
0.50 |
|
|
$ |
1.87 |
|
|
$ |
1.55 |
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income per share: |
|
|
|
|
|
|
|
|
|
Net income applicable
to common stockholders |
|
$ |
23,000 |
|
|
$ |
33,286 |
|
|
$ |
119,433 |
|
|
$ |
104,289 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding |
|
|
61,469 |
|
|
|
65,994 |
|
|
|
63,729 |
|
|
|
67,201 |
|
|
Dilutive
shares from assumed conversion of convertible senior notes |
|
945 |
|
|
|
125 |
|
|
|
794 |
|
|
|
1,128 |
|
|
Dilutive stock options
and restricted stock |
|
|
1,287 |
|
|
|
1,099 |
|
|
|
1,239 |
|
|
|
1,039 |
|
|
Diluted weighted
average common shares outstanding |
|
|
63,701 |
|
|
|
67,218 |
|
|
|
65,762 |
|
|
|
69,368 |
|
|
Diluted net income per
share |
|
$ |
0.36 |
|
|
$ |
0.50 |
|
|
$ |
1.82 |
|
|
$ |
1.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WABASH NATIONAL CORPORATION |
SEGMENTS AND RELATED INFORMATION |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
Diversified |
|
Corporate and |
|
|
Three Months Ended December 31, |
|
Trailer Products |
|
Products |
|
Eliminations |
|
Consolidated |
|
2016 |
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
14,600 |
|
|
550 |
|
|
- |
|
|
|
15,150 |
Used
trailers shipped |
|
|
150 |
|
|
- |
|
|
- |
|
|
|
150 |
|
|
|
|
|
|
|
|
|
|
New
trailers |
|
$ |
359,767 |
|
$ |
33,353 |
|
$ |
- |
|
|
$ |
393,120 |
Used
trailers |
|
|
1,796 |
|
|
562 |
|
|
- |
|
|
|
2,358 |
Components,
parts and service |
|
|
13,082 |
|
|
22,867 |
|
|
(3,055 |
) |
|
|
32,894 |
Equipment
and other |
|
|
4,698 |
|
|
29,013 |
|
|
(26 |
) |
|
|
33,685 |
|
Total net external
sales |
|
$ |
379,343 |
|
$ |
85,795 |
|
$ |
(3,081 |
) |
|
$ |
462,057 |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
59,171 |
|
$ |
13,535 |
|
$ |
(1,221 |
) |
|
$ |
71,485 |
Income
(Loss) from operations |
|
$ |
49,917 |
|
$ |
1,124 |
|
$ |
(10,420 |
) |
|
$ |
40,621 |
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
16,200 |
|
|
750 |
|
|
- |
|
|
|
16,950 |
Used
trailers shipped |
|
|
550 |
|
|
50 |
|
|
- |
|
|
|
600 |
|
|
|
|
|
|
|
|
|
|
New
trailers |
|
$ |
404,615 |
|
$ |
48,416 |
|
$ |
- |
|
|
$ |
453,031 |
Used
trailers |
|
|
8,941 |
|
|
1,145 |
|
|
- |
|
|
|
10,086 |
Components,
parts and service |
|
|
14,798 |
|
|
27,534 |
|
|
(2,960 |
) |
|
|
39,372 |
Equipment
and other |
|
|
5,623 |
|
|
35,599 |
|
|
- |
|
|
|
41,222 |
|
Total net external
sales |
|
$ |
433,977 |
|
$ |
112,694 |
|
$ |
(2,960 |
) |
|
$ |
543,711 |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
61,109 |
|
$ |
27,011 |
|
$ |
(304 |
) |
|
$ |
87,816 |
Income
(Loss) from operations |
|
$ |
51,437 |
|
$ |
12,352 |
|
$ |
(9,127 |
) |
|
$ |
54,662 |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
58,850 |
|
|
2,100 |
|
|
- |
|
|
|
60,950 |
Used
trailers shipped |
|
|
950 |
|
|
100 |
|
|
- |
|
|
|
1,050 |
|
|
|
|
|
|
|
|
|
|
New
trailers |
|
$ |
1,421,586 |
|
$ |
129,639 |
|
$ |
(89 |
) |
|
$ |
1,551,136 |
Used
trailers |
|
|
11,998 |
|
|
3,176 |
|
|
- |
|
|
|
15,174 |
Components,
parts and service |
|
|
56,191 |
|
|
111,519 |
|
|
(12,955 |
) |
|
|
154,755 |
Equipment
and other |
|
|
16,335 |
|
|
108,070 |
|
|
(26 |
) |
|
|
124,379 |
|
Total net external
sales |
|
$ |
1,506,110 |
|
$ |
352,404 |
|
$ |
(13,070 |
) |
|
$ |
1,845,444 |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
253,274 |
|
$ |
75,630 |
|
$ |
(3,370 |
) |
|
$ |
325,534 |
Income
(Loss) from operations |
|
$ |
212,351 |
|
$ |
24,595 |
|
$ |
(34,414 |
) |
|
$ |
202,532 |
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
|
|
|
|
|
New
trailers shipped |
|
|
61,300 |
|
|
3,400 |
|
|
- |
|
|
|
64,700 |
Used
trailers shipped |
|
|
1,900 |
|
|
150 |
|
|
- |
|
|
|
2,050 |
|
|
|
|
|
|
|
|
|
|
New
trailers |
|
$ |
1,474,201 |
|
$ |
218,028 |
|
$ |
- |
|
|
$ |
1,692,229 |
Used
trailers |
|
|
31,022 |
|
|
4,558 |
|
|
- |
|
|
|
35,580 |
Components,
parts and service |
|
|
60,482 |
|
|
119,696 |
|
|
(11,628 |
) |
|
|
168,550 |
Equipment
and other |
|
|
16,536 |
|
|
114,645 |
|
|
(51 |
) |
|
|
131,130 |
|
Total net external
sales |
|
$ |
1,582,241 |
|
$ |
456,927 |
|
$ |
(11,679 |
) |
|
$ |
2,027,489 |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
197,777 |
|
$ |
107,023 |
|
$ |
(1,356 |
) |
|
$ |
303,444 |
Income
(Loss) from operations |
|
$ |
159,385 |
|
$ |
51,078 |
|
$ |
(30,094 |
) |
|
$ |
180,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WABASH NATIONAL CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
(Unaudited) |
|
|
ASSETS |
Current
assets |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
163,467 |
|
$ |
178,853 |
|
Accounts
receivable |
|
|
153,634 |
|
|
152,824 |
|
Inventories |
|
|
139,953 |
|
|
166,982 |
|
Deferred
income taxes |
|
|
- |
|
|
22,431 |
|
Prepaid
expenses and other |
|
|
24,351 |
|
|
8,417 |
|
|
Total current
assets |
|
$ |
481,405 |
|
$ |
529,507 |
|
|
|
|
|
|
|
Property,
plant and equipment |
|
|
134,138 |
|
|
140,438 |
|
|
|
|
|
|
|
Deferred
income taxes |
|
|
20,343 |
|
|
1,358 |
|
|
|
|
|
|
|
Goodwill |
|
|
|
148,367 |
|
|
149,718 |
|
|
|
|
|
|
|
Intangible
assets |
|
|
94,405 |
|
|
114,616 |
|
|
|
|
|
|
|
Other
assets |
|
|
20,075 |
|
|
14,033 |
|
|
|
|
$ |
898,733 |
|
$ |
949,670 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current
liabilities |
|
|
|
|
|
Current
portion of long-term debt |
|
$ |
2,468 |
|
$ |
37,611 |
|
Current
portion of capital lease obligations |
|
|
494 |
|
|
806 |
|
Accounts
payable |
|
|
71,338 |
|
|
79,618 |
|
Other
accrued liabilities |
|
|
92,314 |
|
|
93,042 |
|
|
Total current
liabilities |
|
$ |
166,614 |
|
$ |
211,077 |
|
|
|
|
|
|
|
Long-term
debt |
|
|
233,465 |
|
|
274,885 |
|
|
|
|
|
|
|
Capital
lease obligations |
|
|
1,409 |
|
|
1,875 |
|
|
|
|
|
|
|
Deferred
income taxes |
|
|
499 |
|
|
1,497 |
|
|
|
|
|
|
|
Other
noncurrent liabilities |
|
|
24,355 |
|
|
20,525 |
|
|
|
|
|
|
|
Commitments
and contingencies |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
472,391 |
|
|
439,811 |
|
|
|
|
$ |
898,733 |
|
$ |
949,670 |
|
|
|
|
|
|
|
|
|
WABASH NATIONAL CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Dollars in thousands) |
(Unaudited) |
|
|
Twelve Months Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
Net
income |
$ |
119,433 |
|
|
$ |
104,289 |
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities |
|
|
|
|
Depreciation |
|
16,830 |
|
|
|
16,739 |
|
|
|
Amortization of intangibles |
|
19,940 |
|
|
|
21,259 |
|
|
|
Net loss
(gain) on the sale of assets |
|
101 |
|
|
|
(8,299 |
) |
|
|
Deferred
income taxes |
|
2,448 |
|
|
|
(7,749 |
) |
|
|
Loss on
debt extinguishment |
|
1,895 |
|
|
|
5,808 |
|
|
|
Stock-based
compensation |
|
12,038 |
|
|
|
10,010 |
|
|
|
Non-cash
interest expense |
|
3,475 |
|
|
|
5,222 |
|
|
|
Impairment
of goodwill and other intangibles |
|
1,663 |
|
|
|
1,087 |
|
|
Changes in
operating assets and liabilities |
|
|
|
|
Accounts
receivable |
|
(809 |
) |
|
|
(17,618 |
) |
|
Inventories |
|
24,969 |
|
|
|
10,162 |
|
|
Prepaid
expenses and other |
|
(10,147 |
) |
|
|
1,786 |
|
|
Accounts
payable and accrued liabilities |
|
(13,002 |
) |
|
|
(12,243 |
) |
|
Other,
net |
|
(84 |
) |
|
|
1,342 |
|
|
Net cash
provided by operating activities |
$ |
178,750 |
|
|
$ |
131,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
Capital
expenditures |
|
(20,342 |
) |
|
|
(20,847 |
) |
|
Proceeds
from the sale of property, plant & equipment |
|
|
19 |
|
|
|
13,203 |
|
|
Other,
net |
|
3,014 |
|
|
|
- |
|
|
Net cash
used in investing activities |
$ |
(17,309 |
) |
|
$ |
(7,644 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
Proceeds
from exercise of stock options |
|
4,831 |
|
|
|
2,012 |
|
|
Borrowings
under revolving credit facilities |
|
618 |
|
|
|
1,134 |
|
|
Payments
under revolving credit facilities |
|
(618 |
) |
|
|
(1,134 |
) |
|
Principal
payments under capital lease obligations |
|
(779 |
) |
|
|
(4,201 |
) |
|
Proceeds
from issuance of term loan credit facility |
|
- |
|
|
|
192,845 |
|
|
Principal
payments under term loan credit facility |
|
(1,928 |
) |
|
|
(194,291 |
) |
|
Principal
payments under industrial revenue bond |
|
(473 |
) |
|
|
(496 |
) |
|
Debt
issuance costs paid |
|
- |
|
|
|
(2,587 |
) |
|
Convertible
notes repurchase |
|
(98,922 |
) |
|
|
(22,936 |
) |
|
Stock
repurchase |
|
(79,556 |
) |
|
|
(61,757 |
) |
|
Net cash
used in financing activities |
$ |
(176,827 |
) |
|
$ |
(91,411 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
(decrease) increase in cash and cash equivalents |
$ |
(15,386 |
) |
|
$ |
32,740 |
|
Cash and
cash equivalents at beginning of period |
|
178,853 |
|
|
|
146,113 |
|
Cash and
cash equivalents at end of period |
$ |
163,467 |
|
|
$ |
178,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
23,000 |
|
|
$ |
33,286 |
|
|
$ |
119,433 |
|
|
$ |
104,289 |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
12,217 |
|
|
|
16,578 |
|
|
|
65,984 |
|
|
|
59,022 |
|
|
|
|
|
|
|
|
|
Interest expense |
|
3,725 |
|
|
|
4,789 |
|
|
|
15,663 |
|
|
|
19,548 |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
9,565 |
|
|
|
9,538 |
|
|
|
36,769 |
|
|
|
37,998 |
|
|
|
|
|
|
|
|
|
Stock-based
compensation |
|
3,420 |
|
|
|
3,355 |
|
|
|
12,038 |
|
|
|
10,010 |
|
|
|
|
|
|
|
|
|
Impairment of goodwill
and other intangibles |
|
- |
|
|
|
1,087 |
|
|
|
1,663 |
|
|
|
1,087 |
|
|
|
|
|
|
|
|
|
Other non-operating
expense (income) |
|
1,679 |
|
|
|
10 |
|
|
|
1,452 |
|
|
|
(2,490 |
) |
|
|
|
|
|
|
|
|
Operating EBITDA |
$ |
53,606 |
|
|
$ |
68,643 |
|
|
$ |
253,002 |
|
|
$ |
229,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
March 31, 2016 |
|
June 30, 2016 |
|
September 30, 2016 |
|
December 31, 2016 |
|
|
|
|
|
|
|
|
Net income |
$ |
27,524 |
|
|
$ |
35,531 |
|
|
$ |
33,378 |
|
|
$ |
23,000 |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
16,166 |
|
|
|
19,197 |
|
|
|
18,401 |
|
|
|
12,217 |
|
|
|
|
|
|
|
|
|
Interest expense |
|
4,095 |
|
|
|
3,937 |
|
|
|
3,906 |
|
|
|
3,725 |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
9,165 |
|
|
|
8,986 |
|
|
|
9,052 |
|
|
|
9,565 |
|
|
|
|
|
|
|
|
|
Stock-based
compensation |
|
2,470 |
|
|
|
3,232 |
|
|
|
2,915 |
|
|
|
3,420 |
|
|
|
|
|
|
|
|
|
Impairment of goodwill
and other intangibles |
|
- |
|
|
|
1,663 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Other non-operating
expense (income) |
|
398 |
|
|
|
206 |
|
|
|
(831 |
) |
|
|
1,679 |
|
|
|
|
|
|
|
|
|
Operating EBITDA |
$ |
59,818 |
|
|
$ |
72,752 |
|
|
$ |
66,821 |
|
|
$ |
53,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Earnings2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
23,000 |
|
|
$ |
0.36 |
|
|
$ |
33,286 |
|
|
$ |
0.50 |
|
|
$ |
119,433 |
|
|
$ |
1.82 |
|
|
$ |
104,289 |
|
|
$ |
1.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branch
transactions3 |
|
450 |
|
|
|
0.01 |
|
|
|
- |
|
|
|
- |
|
|
|
(290 |
) |
|
|
- |
|
|
|
(8,345 |
) |
|
|
(0.12 |
) |
Impairment of goodwill and other intangibles |
|
- |
|
|
|
- |
|
|
|
1,087 |
|
|
|
0.02 |
|
|
|
1,663 |
|
|
|
0.03 |
|
|
|
1,087 |
|
|
|
0.02 |
|
Loss on
debt extinguishment |
|
1,408 |
|
|
|
0.02 |
|
|
|
188 |
|
|
|
- |
|
|
|
1,895 |
|
|
|
0.03 |
|
|
|
5,807 |
|
|
|
0.08 |
|
Tax
effect of aforementioned items |
|
(645 |
) |
|
|
(0.01 |
) |
|
|
(423 |
) |
|
|
(0.01 |
) |
|
|
(1,163 |
) |
|
|
(0.02 |
) |
|
|
554 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings |
$ |
24,213 |
|
|
$ |
0.38 |
|
|
$ |
34,138 |
|
|
$ |
0.51 |
|
|
$ |
121,538 |
|
|
$ |
1.85 |
|
|
$ |
103,392 |
|
|
$ |
1.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average # of
Diluted Shares O/S |
|
63,701 |
|
|
|
|
|
67,218 |
|
|
|
|
|
65,762 |
|
|
|
|
|
69,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
March 31, 2016 |
|
June 30, 2016 |
|
September 30, 2016 |
|
|
|
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
27,524 |
|
|
$ |
0.42 |
|
|
$ |
35,531 |
|
|
$ |
0.53 |
|
|
$ |
33,378 |
|
|
$ |
0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branch
transactions3 |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(740 |
) |
|
|
(0.01 |
) |
|
|
|
|
Impairment of goodwill and other intangibles |
|
- |
|
|
|
- |
|
|
|
1,663 |
|
|
|
0.02 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Loss on
debt extinguishment |
|
487 |
|
|
|
0.01 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Tax
effect of aforementioned items |
|
(180 |
) |
|
|
- |
|
|
|
(584 |
) |
|
|
(0.01 |
) |
|
|
263 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings |
$ |
27,831 |
|
|
$ |
0.42 |
|
|
$ |
36,610 |
|
|
$ |
0.55 |
|
|
$ |
32,901 |
|
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average # of
Diluted Shares O/S |
|
66,224 |
|
|
|
|
|
67,115 |
|
|
|
|
|
66,032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 income (loss) 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
and impairment of goodwill or other intangible assets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Branch transactions in 2016 relate to gains (losses)
incurred for sale of our branch locations in Phoenix, Denver and
Miami. Branch transactions for 2015 are comprised of the sale
of assets for three West Coast branches in 2014 and the real estate
associated with these same branches in 2015. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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