Wabash National Corporation Announces Fourth Quarter and Full Year 2017 Results

Wabash National Corporation (NYSE:WNC), a diversified industrial manufacturer and a leading producer of semi-trailers, truck bodies and liquid transportation systems, today reported results for the fourth quarter and full-year periods ending December 31, 2017.

Net income for the fourth quarter 2017 was $49.4 million, or $0.80 per diluted share, compared to the fourth quarter 2016 net income of $23.0 million, or $0.36 per diluted share. Fourth quarter 2017 non-GAAP adjusted earnings was $22.3 million, or $0.36 per diluted share, a $2.0 million decrease as compared to the prior year period. Non-GAAP adjusted earnings for the fourth quarter 2017 exclude the one-time tax benefit associated with both the adjustment of the Company’s net deferred income tax liability totaling $19.7 million as a result of the Tax Cuts and Jobs Act of 2017 and the reversal of reserves for uncertain tax positions of $12.6 million. In addition, the fourth quarter 2017 adjusted earnings excludes non-recurring expenses totaling $6.6 million primarily related to acquisition and integration expenses associated with the Company’s acquisition of Supreme Industries, Inc. (“Supreme”) in September 2017 and charges incurred related to the closing of former branch locations. Net sales for the fourth quarter increased 18 percent to $543 million from $462 million in the prior year quarter and operating income decreased 13 percent to $35.3 million compared to operating income of $40.6 million for the fourth quarter 2016. Operating EBITDA, a non-GAAP measure that excludes the effects of certain items, for the fourth quarter 2017 was $51.1 million, a decrease of $2.5 million compared to operating EBITDA for the previous year quarter.

For the twelve months ended December 31, 2017, the Company reported net income of $111.4 million, or $1.78 per diluted share, on net sales of $1.77 billion, compared to net income of $119.4 million, or $1.82 per diluted share, on net sales of $1.85 billion for the twelve months ended December 31, 2016. Full-year 2017 results included tax benefits associated with both the adjustment of the Company’s net deferred income tax liability totaling $19.7 million as a result of the Tax Cuts and Jobs Act of 2017 and the reversal of reserves for uncertain tax positions of $12.6 million. Full-year results also include charges totaling $9.5 million related to acquisition and integration related costs for Supreme and early extinguishment of debt incurred with the Company’s purchase of a portion of the outstanding convertible senior notes net of gains from the transition and sale of former branch locations. Excluding the impact of these items, non-GAAP adjusted earnings for the full-year 2017 were $86.2 million, or $1.38 per diluted share. Full-year 2016 results included charges totaling $3.3 million related to 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. 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. For the full-year 2017, the Company achieved operating EBITDA of $189.0 million, or 10.7 percent of net sales, as compared to $253.0 million, or 13.7 percent of net sales, for the previous year.

The following is a summary of select operating and financial results for the past five quarters:


Three Months Ended
(Dollars in thousands, except pershare amounts)	December 31,			March 31,			June 30,			September 30,			December 31,
(Dollars in thousands, except pershare amounts)	2016			2017			2017			2017			2017

Net Sales	$	462,057		$	362,716		$	435,903		$	425,098		$	543,444

Gross Profit Margin		15.5	%		16.4	%		15.5	%		14.3	%		13.4	%

Income from Operations	$	40,621		$	30,264		$	38,668		$	26,591		$	35,293

Income from Operations Margin		8.8	%		8.3	%		8.9	%		6.3	%		6.5	%

Net Income	$	23,000		$	20,173		$	22,945		$	18,947		$	49,356

Diluted EPS	$	0.36		$	0.32		$	0.36		$	0.30		$	0.80

Non-GAAP Measures(1):

Operating EBITDA	$	53,606		$	41,930		$	49,450		$	46,561		$	51,062

Operating EBITDA Margin		11.6	%		11.6	%		11.3	%		11.0	%		9.4	%

Adjusted Earnings	$	24,213		$	19,517		$	23,189		$	21,214		$	22,250

Adjusted Diluted EPS	$	0.38		$	0.31		$	0.37		$	0.34		$	0.36

Notes:

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, 2017:


Twelve Months Ended
(Dollars in thousands, except pershare amounts)	December 31,			December 31,			December 31,			December 31,			December 31,
(Dollars in thousands, except pershare amounts)	2013			2014			2015			2016			2017

Net Sales	$	1,635,686		$	1,863,315		$	2,027,489		$	1,845,444		$	1,767,161

Gross Profit Margin		13.2	%		12.5	%		15.0	%		17.6	%		14.8	%

Income from Operations	$	103,191		$	122,386		$	180,369		$	202,532		$	130,816

Income from Operations Margin		6.3	%		6.6	%		8.9	%		11.0	%		7.4	%

Net Income	$	46,529		$	60,930		$	104,289		$	119,433		$	111,422

Diluted EPS	$	0.67		$	0.85		$	1.50		$	1.82		$	1.78

Non-GAAP Measures(2):

Operating EBITDA	$	149,890		$	169,048		$	229,464		$	253,002		$	189,004

Operating EBITDA Margin		9.2	%		9.1	%		11.3	%		13.7	%		10.7	%

Adjusted Earnings	$	48,190		$	62,992		$	103,392		$	121,538		$	86,166

Adjusted Diluted EPS	$	0.70		$	0.89		$	1.49		$	1.85		$	1.38

Notes:

See “Non-GAAP Measures” below for explanation of the non-GAAP results included above.

Dick Giromini, chief executive officer, stated, “We are pleased overall with the Company’s 2017 performance, as we successfully established a stronger foundation for further growth and productivity for the current year and beyond. The addition of the Supreme truck body business was a key accomplishment as it not only adds immediate revenue and profit opportunity, but also provides significant diversification into a high-growth segment driven by the ever-increasing adoption of e-commerce.”

Mr. Giromini continued, “Operationally, following our fifth consecutive record year of profitability in 2016, a small reset was seemingly inevitable at some point. Despite a somewhat more challenging year for parts of our core businesses, we are nonetheless proud of the team’s efforts in overcoming many of the headwinds throughout the year, leading us to the strong finish in the fourth quarter that positioned us for new levels of success in 2018. New trailer shipments of 55,050 for the year were near the top-end of our previous guidance and we begin 2018 with a historically strong backlog of orders totaling $1.2 billion, an increase of 64 percent compared to the previous quarter.”

2018 OutlookMr. Giromini stated, “Looking at the current year, we continue to believe the demand environment for trailers overall will remain healthy as fleet age, regulatory compliance requirements such as the ELD implementation, a strong economy and customer profitability all support a continuation of an extended trailer cycle. Adding to this belief is the significant turnaround in demand for both our platform and tank trailer businesses, leading to the strongest backlog in more than two years for those businesses. Those factors combined with the addition of the Supreme truck body business, impact of the new Tax Cuts and Jobs Act of 2017, and effects of cost and productivity improvement initiatives throughout the business create a great recipe for success. In 2018 we expect to ship in the range of 56,000 to 60,000 trailer units, along with 22,000 to 24,000 truck body units, for a revenue projection of $2.05 billion to $2.15 billion. While the first quarter will be slow out of the gate due to timing of shipments, we believe that pace will accelerate beginning in the second quarter and throughout the balance of the year. Based on those, and other demand and cost assumptions, we project full-year earnings of $1.86 to $2.02 per diluted share.”

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 2017 and 2016. As announced in the prior quarter, in the fourth quarter of 2017 the Company added a third reporting segment, Final Mile Products, which includes the results of our Supreme acquisition and the Company’s existing truck body growth and diversification initiative. 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						Final MileProducts

Three months ended December 31
		2017				2016			2017			2016			2017
New trailers shipped		15,500		#		14,600			650			550			-
Net sales	$	385,961			$	379,343		$	91,771		$	85,795		$	70,461
Gross profit	$	47,055			$	59,171		$	18,040		$	13,535		$	8,150
Gross profit margin		12.2	%			15.6	%		19.7	%		15.8	%		11.6	%
Income from operations	$	40,134			$	49,917		$	5,532		$	1,124		$	(2,098	)
Income from operations margin		10.4	%			13.2	%		6.0	%		1.3	%		-3.0	%

Twelve months ended December 31
		2017				2016			2017			2016			2017
New trailers shipped		52,800				58,850			2,250			2,100			-
Net sales	$	1,348,382			$	1,506,110		$	361,358		$	352,404		$	70,461
Gross profit	$	183,912			$	253,274		$	70,159		$	75,630		$	8,150
Gross profit margin		13.6	%			16.8	%		19.4	%		21.5	%		11.6	%
Income from operations	$	151,999			$	212,351		$	20,376		$	24,595		$	(2,098	)
Income from operations margin		11.3	%			14.1	%		5.6	%		7.0	%		-3.0	%

Commercial Trailer Products’ net sales for the fourth quarter were $386 million, an increase of $7 million, or 2 percent, as compared to the prior year. Gross profit margin for the fourth quarter decreased 340 basis points as compared to the prior year period primarily due to increases in commodity costs and continued labor constraints resulting in higher overtime requirements to meet current demand. Operating income decreased $9.8 million, or 20 percent, from the fourth quarter last year to $40.1 million, or 10.4 percent of net sales.

Diversified Products’ net sales for the fourth quarter increased $6 million, or 7 percent, due primarily to the increased demand for liquid tank trailers and process systems products as compared to the previous year period. Gross profit and profit margins as compared to the prior year period increased $4.5 million and 390 basis points, respectively, primarily due to increased demand levels and the execution of cost management initiatives. Operating income for the fourth quarter 2017 was $5.5 million, or 6.0 percent of net sales, an increase of $4.4 million compared to the prior year.

Final Mile Products’ net sales for the fourth quarter totaled $70 million. Gross profit and gross profit margin for the fourth quarter were $8.1 million and 11.6 percent, respectively. Excluding non-recurring acquisition and integration related costs, gross profit and operating margins for the fourth quarter were 17.6 percent and 3.9 percent, respectively. Truck body demand continues to be strong as backlog increased 33 percent compared to the prior 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, charges incurred in connection with the acquisition and integration of Supreme, 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, 2017 and 2016 reflect adjustments for charges incurred in connection with acquisition and integration of Supreme, the losses attributable to the Company’s extinguishment of debt, impairment of goodwill and other intangible assets, executive severance costs, income or losses recognized on sale of former branch locations as well as tax benefits associated with the adjustment of the Company’s net deferred income tax liability as a result of the Tax Cuts and Jobs Act of 2017 and reversal of reserves for uncertain tax positions. 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 2017 Conference CallWabash National will conduct a conference call to review and discuss its fourth quarter and full-year results on January 31, 2018 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 25, 2018. Meeting access also will be available via conference call at 800-708-4540, participant code 46320733.

About Wabash National Corporation

Headquartered in Lafayette, Indiana, Wabash National Corporation (NYSE:WNC) is a diversified industrial manufacturer and a leading producer of semi-trailers, truck bodies 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, Supreme®, Transcraft®, Walker Engineered Products, and Walker Transport. Learn more at www.wabashnational.com.

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, all statements regarding the Company’s outlook for trailer and truck body shipments, backlog, expectations regarding demand levels for trailers, truck bodies, 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 the successful integration of Supreme into the Company’s business, adverse reactions to the transaction by customers, suppliers or strategic partners, 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,
		2017			2016			2017			2016

Net sales		$	543,444		$	462,057		$	1,767,161		$	1,845,444
Cost of sales			470,568			390,572			1,506,286			1,519,910
	Gross profit		72,876			71,485			260,875			325,534

General and administrative expenses			24,314			19,036			77,825			74,129
Selling expenses			8,020			6,849			25,588			27,270
Amortization of intangibles			4,348			4,979			17,041			19,940
Acquisition Expenses			901			-			9,605			-
Impairment of goodwill			-			-			-			1,663
	Income from operations		35,293			40,621			130,816			202,532

Other income (expense):
	Interest expense		(7,335	)		(3,725	)		(16,400	)		(15,663	)
	Other, net		194			(1,679	)		8,122			(1,452	)
	Income before income taxes		28,152			35,217			122,538			185,417
Income tax (benefit) expense			(21,204	)		12,217			11,116			65,984
Net income		$	49,356		$	23,000		$	111,422		$	119,433
Dividends declared per share		$	0.075		$	0.060		$	0.255		$	0.060
Basic net income per share		$	0.84		$	0.37		$	1.88		$	1.87
Diluted net income per share		$	0.80		$	0.36		$	1.78		$	1.82

Comprehensive income
	Net income	$	49,356		$	23,000		$	111,422		$	119,433
	Foreign currency translation adjustment		(342	)		(403	)		487			(1,347	)
Net comprehensive income		$	49,014		$	22,597		$	111,909		$	118,086


Basic net income per share:
	Net income applicable to common stockholders	$	49,356		$	23,000		$	111,422		$	119,433
	Weighted average common shares outstanding		58,416			61,469			59,358			63,729
	Basic net income per share	$	0.84		$	0.37		$	1.88		$	1.87

Diluted net income per share:
	Net income applicable to common stockholders	$	49,356		$	23,000		$	111,422		$	119,433

	Weighted average common shares outstanding		58,416			61,469			59,358			63,729
	Dilutive shares from assumed conversion of convertible senior notes		1,672			945			1,726			794
	Dilutive stock options and restricted stock		1,479			1,287			1,514			1,239
	Diluted weighted average common shares outstanding		61,567			63,701			62,598			65,762
	Diluted net income per share	$	0.80		$	0.36		$	1.78		$	1.82


WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Dollars in thousands)
(Unaudited)

		Commercial		Diversified		Final Mile			Corporate and
Three Months Ended December 31,		Trailer Products		Products		Products			Eliminations			Consolidated
	2017
New trailers shipped			15,500		650		-			-			16,150
Used trailers shipped			550		50		-			-			600

New Trailers		$	367,526	$	40,895	$	-		$	-		$	408,421
Used Trailers		$	5,352	$	821	$	-		$	-			6,173
Components, parts and service		$	9,908	$	23,931	$	1,877		$	(4,749	)		30,967
Equipment and other		$	3,175	$	26,124	$	68,584		$	-			97,883
	Total net external sales	$	385,961	$	91,771	$	70,461		$	(4,749	)	$	543,444

Gross profit		$	47,055	$	18,040	$	8,150		$	(369	)	$	72,876
Income (Loss) from operations		$	40,134	$	5,532	$	(2,098	)	$	(8,275	)	$	35,293

	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

Twelve Months Ended December 31,
	2017
New trailers shipped			52,800		2,250		-			-			55,050
Used trailers shipped			1,050		100		-			-			1,150

New Trailers		$	1,273,584	$	140,105	$	-		$	-		$	1,413,689
Used Trailers		$	10,720	$	3,278	$	-		$	-			13,998
Components, parts and service		$	48,008	$	117,681	$	1,877		$	(13,040	)		154,526
Equipment and other		$	16,070	$	100,294	$	68,584		$	-			184,948
	Total net external sales	$	1,348,382	$	361,358	$	70,461		$	(13,040	)	$	1,767,161

Gross profit		$	183,912	$	70,159	$	8,150		$	(1,346	)	$	260,875
Income (Loss) from operations		$	151,999	$	20,376	$	(2,098	)	$	(39,461	)	$	130,816

	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


WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

			December 31,		December 31,
			2017		2016
			(Unaudited)
ASSETS
Current assets
	Cash and cash equivalents		$	191,521	$	163,467
	Accounts receivable			146,836		153,634
	Inventories			180,735		139,953
	Prepaid expenses and other			57,299		24,351
		Total current assets	$	576,391	$	481,405

Property, plant and equipment				195,363		134,138

Deferred income taxes				-		20,343

Goodwill				317,464		148,367

Intangible assets				237,030		94,405

Other assets				25,265		20,075
			$	1,351,513	$	898,733

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
	Current portion of long-term debt		$	46,020	$	2,468
	Current portion of capital lease obligations			290		494
	Accounts payable			108,448		71,338
	Other accrued liabilities			128,910		92,314
		Total current liabilities	$	283,668	$	166,614

Long-term debt				504,091		233,465

Capital lease obligations				1,012		1,409

Deferred income taxes				36,955		499

Other noncurrent liabilities				19,724		24,355

Stockholders' equity				506,063		472,391
			$	1,351,513	$	898,733


WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)

					Twelve Months Ended
					December 31,
					2017			2016

Cash flows from operating activities
	Net income				$	111,422		$	119,433
	Adjustments to reconcile net income to net cash provided by operating activities
		Depreciation				18,012			16,830
		Amortization of intangibles				17,041			19,940
		Net (gain) loss on the sale of property, plant and equipment				(8,046	)		101
		Deferred income taxes				(14,814	)		4,044
		Loss on debt extinguishment				799			1,895
		Stock-based compensation				10,429			12,038
		Impairment of goodwill				-			1,663
		Non-cash interest expense				2,258			3,475
		Changes in operating assets and liabilities
			Accounts receivable			31,943			(809	)
			Inventories			(13,158	)		24,969
			Prepaid expenses and other			(2,014	)		(10,147	)
			Accounts payable and accrued liabilities			(963	)		(13,002	)
			Other, net			(8,530	)		(1,680	)
				Net cash provided by operating activities	$	144,379		$	178,750

Cash flows from investing activities
	Capital expenditures					(26,056	)		(20,342	)
	Proceeds from the sale of property, plant, and equipment					10,860			19
	Acquisition, net of cash acquired					(323,487	)		-
	Other, net					6,443			3,014
				Net cash used in investing activities	$	(332,240	)	$	(17,309	)

Cash flows from financing activities
	Proceeds from exercise of stock options					5,790			4,831
	Borrowings under senior notes					325,000			-
	Dividends paid					(15,315	)		-
	Borrowings under revolving credit facilities					713			618
	Payments under revolving credit facilities					(713	)		(618	)
	Principal payments under capital lease obligations					(600	)		(779	)
	Proceeds from issuance of term loan credit facility					377,519			-
	Principal payments under term loan credit facilities					(386,577	)		(1,928	)
	Principal payments under industrial revenue bond					(583	)		(473	)
	Debt issuance costs paid					(6,783	)		-
	Stock repurchase					(74,491	)		(98,922	)
	Convertible senior notes repurchase					(8,045	)		(79,556	)
				Net cash used in financing activities	$	215,915		$	(176,827	)

Net increase in cash and cash equivalents					$	28,054		$	(15,386	)
Cash and cash equivalents at beginning of period						163,467			178,853
Cash and cash equivalents at end of period					$	191,521		$	163,467


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,
	2017			2016			2017			2016
Net income	$	49,356		$	23,000		$	111,422		$	119,433
Income tax expense		(21,204	)		12,217			11,116			65,984
Interest expense		7,335			3,725			16,400			15,663
Depreciation and amortization		9,651			9,565			35,053			36,769
Stock-based compensation		2,117			3,420			10,429			12,038
Impairment of intangibles		-			-			-			1,663
Acquisition expenses and related charges		4,002			-			12,706			-
Other non-operating (income) expense		(194	)		1,679			(8,122	)		1,452
Operating EBITDA	$	51,062		$	53,606		$	189,004		$	253,002


	Three Months Ended
	March 31, 2017			June 30, 2017			September 30, 2017
Net income	$	20,173		$	22,945		$	18,947
Income tax expense		8,434			13,160			10,728
Interest expense		2,990			2,888			3,187
Depreciation and amortization		8,704			8,315			8,386
Stock-based compensation		2,963			2,467			2,881
Acquisition expenses and related charges		-			-			8,704
Other non-operating (income) expense		(1,333	)		(325	)		(6,271	)
Operating EBITDA	$	41,930		$	49,450		$	46,561


Adjusted Earnings2:
	Three Months Ended December 31,												Twelve Months Ended December 31,
	2017						2016						2017						2016
	$			Per Share			$			Per Share			$			Per Share			$			Per Share

Net Income	$	49,356		$	0.80		$	23,000		$	0.36		$	111,422		$	1.78		$	119,433		$	1.82

Adjustments:
Facility transactions3		274			-			450			0.01			(6,546	)		(0.10	)		(290	)		-
Impairment of goodwill and other intangibles		-			-			-			-			-			-			1,663			0.03
Loss on debt extinguishment		32			-			1,408			0.02			800			0.01			1,895			0.03
Executive severance expense		-			-			-			-			238			-			-			-
Acquisition expenses and related charges		6,308			0.10			-			-			15,012			0.24			-			-
Tax effect of aforementioned items		(2,381	)		(0.04	)		(645	)		(0.01	)		(3,421	)		(0.05	)		(1,163	)		(0.02	)
Tax reform and other discrete tax adjustments		(31,339	)		(0.51	)		-			-			(31,339	)		(0.50	)		-			-

Adjusted earnings	$	22,250		$	0.36		$	24,213		$	0.38		$	86,166		$	1.38		$	121,538		$	1.85

Weighted Average # of Diluted Shares O/S		61,567						63,701						62,598						65,762


	Three Months Ended
	March 31, 2017						June 30, 2017						September 30, 2017
	$			Per Share			$			Per Share			$			Per Share

Net Income	$	20,173		$	0.32		$	22,945		$	0.36		$	18,947			0.30

Adjustments:
Facility transactions3		(1,665	)		(0.03	)		18			-			(5,165	)		(0.08	)
Loss on debt extinguishment		640			0.01			125			-			3			-
Executive severance expense		-			-			238			-						-
Acquisition expenses and related charges		-			-			-			-			8,704			0.14
Tax effect of aforementioned items		369			0.01			(137	)		-			(1,275	)		(0.02	)

Adjusted earnings	$	19,517		$	0.31		$	23,189		$	0.37		$	21,214		$	0.34

Weighted Average # of Diluted Shares O/S		63,390						63,207						62,236

1Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, acquisition expenses and related charges, impairment of goodwill and other intangibles, and other non-operating income and expense.

2Adjusted earnings and adjusted earnings per diluted share reflect adjustments for charges incurred in connection with acquistion expense and related costs, the losses attributable to the Company's extinguishment of debt, income or losses recognized on the sale and/or closure of former Company locations, one-time executive severance costs and impairment of goodwill or other intangible asset charges.

3Facility transactions in 2016 and 2017 relate to gains and/or losses incurred for the sale or closure of the Company's retail branch locations.