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 second quarter ended June 30, 2016.
Net income for the second quarter of 2016 was $35.5 million, or
$0.53 per diluted share, compared to the second quarter 2015 net
income of $28.6 million, or $0.41 per diluted share. Second
quarter 2016 non-GAAP adjusted earnings increased $13.0 million, or
55 percent, over the prior year period. Non-GAAP adjusted
earnings for the second quarter of 2016 excludes a non-recurring
charge of $1.7 million in connection with the Company’s segment
realignment announced during the quarter and effective for
reporting purposes beginning with the second quarter.
Non-GAAP adjusted earnings for the second quarter of 2015 excludes
$8.3 million of gains from the sale of two former branch locations
and a $0.3 million charge in connection with the refinancing of the
Company’s asset based lending facility.
Net sales for the second quarter decreased 8
percent to $471 million from $515 million in the prior year quarter
while operating income increased 40 percent on improved pricing and
operational execution to $58.9 million, compared to $42.1 million
for the second quarter of 2015. Operating EBITDA, a non-GAAP
measure that excludes the effects of certain recurring and
non-recurring items, for the second quarter of 2016 was $72.8
million, an increase of $19.1 million, or 36 percent, compared to
operating EBITDA for the prior year period. On a trailing
twelve month basis, net sales totaled $2.0 billion, generating
Operating EBITDA of $269.2 million, or 13.5 percent of net
sales. The continued year-over-year improvement in operating
performance is attributable to the successful execution of the
Company’s growth and diversification strategies, 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) |
June 30, |
|
September 30, |
|
December 31, |
|
March 31, |
|
June 30, |
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
514,831 |
|
|
$ |
531,350 |
|
|
$ |
543,711 |
|
|
$ |
447,676 |
|
|
$ |
471,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
Margin |
|
14.1 |
% |
|
|
16.2 |
% |
|
|
16.2 |
% |
|
|
17.8 |
% |
|
|
19.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations |
$ |
42,054 |
|
|
$ |
56,389 |
|
|
$ |
54,663 |
|
|
$ |
48,185 |
|
|
$ |
58,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations
Margin |
|
8.2 |
% |
|
|
10.6 |
% |
|
|
10.1 |
% |
|
|
10.8 |
% |
|
|
12.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
28,649 |
|
|
$ |
31,880 |
|
|
$ |
33,286 |
|
|
$ |
27,524 |
|
|
$ |
35,531 |
|
|
|
Diluted EPS |
$ |
0.41 |
|
|
$ |
0.47 |
|
|
$ |
0.50 |
|
|
$ |
0.42 |
|
|
$ |
0.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Measures(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating EBITDA |
$ |
53,655 |
|
|
$ |
68,030 |
|
|
$ |
68,643 |
|
|
$ |
59,819 |
|
|
$ |
72,754 |
|
|
|
Operating EBITDA
Margin |
|
10.4 |
% |
|
|
12.8 |
% |
|
|
12.6 |
% |
|
|
13.4 |
% |
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings |
$ |
23,586 |
|
|
$ |
31,880 |
|
|
$ |
34,138 |
|
|
$ |
27,831 |
|
|
$ |
36,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
$ |
0.33 |
|
|
$ |
0.47 |
|
|
$ |
0.51 |
|
|
$ |
0.42 |
|
|
$ |
0.55 |
|
|
Notes:(1) See “Non-GAAP Measures” below for explanation of the
non-GAAP results included above.
Dick Giromini, president and chief executive
officer, stated, “Second quarter results represent the best
performance in our Company’s history as we set records for gross
profit, income from operations and operating EBITDA. In
addition, we established new records for gross profit margin and
operating income margin of 19.3 percent and 12.5 percent,
respectively, far surpassing the previous records set in the first
quarter of 2016. The record financial performances of the
Company over the past several quarters further demonstrate our
commitment to operational excellence leveraging our long-standing
expertise in lean manufacturing and process improvements, our
continued strategy to favor margin over volume in the core trailer
business as well as a strong demand environment within our
Commercial Trailer Products segment.”
Mr. Giromini continued, “New trailer shipments
for the second quarter were approximately 15,900, in-line with our
previous guidance of 15,500 to 16,500 trailers driven by strong
customer pick-ups. A healthy backlog of $860 million, overall
trailer market projections well above replacement levels for the
remainder of 2016 and outstanding operational execution across the
business, have put us on pace to deliver another record year in
2016, our fifth consecutive year of record performance. As
such, we are increasing our full-year adjusted earnings guidance to
$1.80 to $1.90 per diluted share, representing a year-over-year
improvement of 24 percent at the midpoint of this range.”
Second Quarter Business Segment
HighlightsThe table below is a summary of select segment
operating and financial results prior to the elimination of
intersegment sales for the second quarters of 2016 and 2015,
respectively. As previously announced, the Company has
realigned its reporting segments. 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 June 30, |
|
|
|
|
|
|
2016 |
|
|
|
|
|
New
trailers shipped |
|
|
15,350 |
|
|
|
550 |
|
|
Net
sales |
|
$ |
382,212 |
|
|
$ |
92,870 |
|
|
Gross
profit |
|
$ |
69,027 |
|
|
$ |
22,938 |
|
|
Gross
profit margin |
|
|
18.1 |
% |
|
|
24.7 |
% |
|
Income from
operations |
|
$ |
57,135 |
|
|
$ |
10,258 |
|
|
Income from
operations margin |
|
|
14.9 |
% |
|
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
|
|
New
trailers shipped |
|
|
16,100 |
|
|
|
800 |
|
|
Net
sales |
|
$ |
412,664 |
|
|
$ |
105,306 |
|
|
Gross
profit |
|
$ |
49,040 |
|
|
$ |
23,687 |
|
|
Gross
profit margin |
|
|
11.9 |
% |
|
|
22.5 |
% |
|
Income from
operations |
|
$ |
39,249 |
|
|
$ |
9,769 |
|
|
Income from
operations margin |
|
|
9.5 |
% |
|
|
9.3 |
% |
|
|
|
|
|
|
|
|
Commercial Trailer Products’ net sales decreased
$30 million, or 7 percent, primarily due to a decline in new
trailer shipments of 5 percent 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 $20.0
million and 620 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 and operational excellence
within our manufacturing facilities. Operating income
increased $17.9 million, or 46 percent, from the second quarter
last year to $57.1 million.
Diversified Products’ net sales decreased $12
million, or 12 percent, primarily the result of lower tank trailer
shipments and lower sales of non-trailer truck mounted equipment
which was partially offset by increased demand for process systems
and composite products as compared with the previous year
period. Gross profit and operating income were comparable to
the prior year period while gross profit margin and operating
margins improved 220 basis points and 170 basis points,
respectively, as compared to the prior year as a result of
continued strong operational execution and product mix.
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 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 six-month periods ending June 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 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.
This release also contains guidance for earnings
per diluted share that is estimated in accordance with the
Company’s expectations of its GAAP results, as well as adjusted
earnings per diluted share that excludes non-recurring charges
incurred in connection with the impairment of goodwill and other
and losses attributable to the Company’s extinguishment of
debt. A reconciliation of adjusted earnings and adjusted
earnings per diluted share to net income and diluted net income per
share, and of the earnings per share guidance for both net income
per diluted share and non-GAAP adjusted earnings per diluted share
is included in the tables following this release
Second Quarter 2016 Conference
CallWabash National will conduct a conference call to
review and discuss its second quarter results on July 27, 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
October 19, 2016. Meeting access also will be available via
conference call at 888-771-4371, participant code 42901491.
About Wabash National CorporationHeadquartered
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 Company’s adjusted earnings guidance for 2016,
statements regarding 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 June 30, |
|
Six Months Ended June 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
471,438 |
|
|
$ |
514,831 |
|
|
$ |
919,114 |
|
|
$ |
952,428 |
|
|
Cost of sales |
|
|
380,374 |
|
|
|
442,426 |
|
|
|
748,524 |
|
|
|
822,825 |
|
|
Gross
profit |
|
|
91,064 |
|
|
|
72,405 |
|
|
|
170,590 |
|
|
|
129,603 |
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses |
|
|
18,495 |
|
|
|
17,852 |
|
|
|
37,887 |
|
|
|
35,903 |
|
|
Selling expenses |
|
|
7,045 |
|
|
|
7,184 |
|
|
|
14,006 |
|
|
|
13,754 |
|
|
Amortization of
intangibles |
|
|
4,989 |
|
|
|
5,315 |
|
|
|
9,978 |
|
|
|
10,629 |
|
|
Impairment of
goodwill |
|
|
1,663 |
|
|
|
- |
|
|
|
1,663 |
|
|
|
- |
|
|
Income
from operations |
|
|
58,872 |
|
|
|
42,054 |
|
|
|
107,056 |
|
|
|
69,317 |
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(3,937 |
) |
|
|
(4,802 |
) |
|
|
(8,032 |
) |
|
|
(9,975 |
) |
|
Other,
net |
|
|
(207 |
) |
|
|
8,069 |
|
|
|
(604 |
) |
|
|
2,687 |
|
|
Income
before income taxes |
|
|
54,728 |
|
|
|
45,321 |
|
|
|
98,420 |
|
|
|
62,029 |
|
|
Income tax expense |
|
|
19,197 |
|
|
|
16,672 |
|
|
|
35,365 |
|
|
|
22,907 |
|
|
Net income |
|
$ |
35,531 |
|
|
$ |
28,649 |
|
|
$ |
63,055 |
|
|
$ |
39,122 |
|
|
Basic net income per
share |
|
$ |
0.55 |
|
|
$ |
0.42 |
|
|
$ |
0.97 |
|
|
$ |
0.57 |
|
|
Diluted net income per
share |
|
$ |
0.53 |
|
|
$ |
0.41 |
|
|
$ |
0.95 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income |
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
35,531 |
|
|
$ |
28,649 |
|
|
$ |
63,055 |
|
|
$ |
39,122 |
|
|
Foreign
currency translation adjustment |
|
|
(559 |
) |
|
|
56 |
|
|
|
(656 |
) |
|
|
(247 |
) |
|
Net comprehensive
income |
|
$ |
34,972 |
|
|
$ |
28,705 |
|
|
$ |
62,399 |
|
|
$ |
38,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share: |
|
|
|
|
|
|
|
|
|
Net
income applicable to common stockholders |
|
$ |
35,531 |
|
|
$ |
28,649 |
|
|
$ |
63,055 |
|
|
$ |
39,122 |
|
|
Weighted
average common shares outstanding |
|
|
64,834 |
|
|
|
67,591 |
|
|
|
64,936 |
|
|
|
68,158 |
|
|
Basic net
income per share |
|
$ |
0.55 |
|
|
$ |
0.42 |
|
|
$ |
0.97 |
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share: |
|
|
|
|
|
|
|
|
|
Net
income applicable to common stockholders |
|
$ |
35,531 |
|
|
$ |
28,649 |
|
|
$ |
63,055 |
|
|
$ |
39,122 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
|
64,834 |
|
|
|
67,591 |
|
|
|
64,936 |
|
|
|
68,158 |
|
|
Dilutive
shares from assumed conversion of convertible senior notes |
|
|
1,057 |
|
|
|
2,047 |
|
|
|
529 |
|
|
|
1,888 |
|
|
Dilutive
stock options and restricted stock |
|
|
1,224 |
|
|
|
1,056 |
|
|
|
1,205 |
|
|
|
1,076 |
|
|
Diluted
weighted average common shares outstanding |
|
|
67,115 |
|
|
|
70,694 |
|
|
|
66,670 |
|
|
|
71,122 |
|
|
Diluted
net income per share |
|
$ |
0.53 |
|
|
$ |
0.41 |
|
|
$ |
0.95 |
|
|
$ |
0.55 |
|
|
WABASH NATIONAL CORPORATION |
SEGMENTS AND RELATED INFORMATION |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
Diversified |
|
Corporate and |
|
|
Three Months
Ended June 30, |
|
Trailer Products |
|
Products |
|
Eliminations |
|
Consolidated |
2016 |
|
|
|
|
|
|
|
|
New trailers
shipped |
|
|
15,350 |
|
|
|
550 |
|
|
|
- |
|
|
|
15,900 |
|
Used trailers
shipped |
|
|
300 |
|
|
|
50 |
|
|
|
- |
|
|
|
350 |
|
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
359,763 |
|
|
$ |
34,229 |
|
|
$ |
- |
|
|
$ |
393,992 |
|
Used Trailers |
|
|
3,427 |
|
|
|
1,093 |
|
|
|
- |
|
|
|
4,520 |
|
Components, parts and
service |
|
|
14,869 |
|
|
|
31,958 |
|
|
|
(3,644 |
) |
|
|
43,183 |
|
Equipment and
other |
|
|
4,153 |
|
|
|
25,590 |
|
|
|
- |
|
|
|
29,743 |
|
Total net
external sales |
|
$ |
382,212 |
|
|
$ |
92,870 |
|
|
$ |
(3,644 |
) |
|
$ |
471,438 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
69,027 |
|
|
$ |
22,938 |
|
|
$ |
(901 |
) |
|
$ |
91,064 |
|
Income (Loss) from
operations |
|
$ |
57,135 |
|
|
$ |
10,258 |
|
|
$ |
(8,521 |
) |
|
$ |
58,872 |
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
|
|
|
|
|
New trailers
shipped |
|
|
16,100 |
|
|
|
800 |
|
|
|
- |
|
|
|
16,900 |
|
Used trailers
shipped |
|
|
600 |
|
|
|
50 |
|
|
|
- |
|
|
|
650 |
|
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
384,442 |
|
|
$ |
51,236 |
|
|
$ |
- |
|
|
$ |
435,678 |
|
Used Trailers |
|
|
9,226 |
|
|
|
1,323 |
|
|
|
- |
|
|
|
10,549 |
|
Components, parts and
service |
|
|
15,616 |
|
|
|
30,723 |
|
|
|
(3,139 |
) |
|
|
43,200 |
|
Equipment and
other |
|
|
3,380 |
|
|
|
22,024 |
|
|
|
- |
|
|
|
25,404 |
|
Total net
external sales |
|
$ |
412,664 |
|
|
$ |
105,306 |
|
|
$ |
(3,139 |
) |
|
$ |
514,831 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
49,040 |
|
|
$ |
23,687 |
|
|
$ |
(322 |
) |
|
$ |
72,405 |
|
Income (Loss) from
operations |
|
$ |
39,249 |
|
|
$ |
9,769 |
|
|
$ |
(6,964 |
) |
|
$ |
42,054 |
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30, |
|
|
|
|
|
|
|
|
2016 |
|
|
|
|
|
|
|
|
New trailers
shipped |
|
|
29,350 |
|
|
|
1,050 |
|
|
|
- |
|
|
|
30,400 |
|
Used trailers
shipped |
|
|
550 |
|
|
|
50 |
|
|
|
- |
|
|
|
600 |
|
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
701,796 |
|
|
$ |
64,005 |
|
|
$ |
- |
|
|
$ |
765,801 |
|
Used Trailers |
|
|
7,279 |
|
|
|
1,994 |
|
|
|
- |
|
|
|
9,273 |
|
Components, parts and
service |
|
|
29,070 |
|
|
|
59,345 |
|
|
|
(6,297 |
) |
|
|
82,118 |
|
Equipment and
other |
|
|
8,107 |
|
|
|
53,815 |
|
|
|
- |
|
|
|
61,922 |
|
Total net
external sales |
|
$ |
746,252 |
|
|
$ |
179,159 |
|
|
$ |
(6,297 |
) |
|
$ |
919,114 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
129,423 |
|
|
$ |
43,148 |
|
|
$ |
(1,981 |
) |
|
$ |
170,590 |
|
Income (Loss) from
operations |
|
$ |
107,392 |
|
|
$ |
17,247 |
|
|
$ |
(17,583 |
) |
|
$ |
107,056 |
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
|
|
|
|
|
New trailers
shipped |
|
|
29,550 |
|
|
|
1,700 |
|
|
|
- |
|
|
|
31,250 |
|
Used trailers
shipped |
|
|
900 |
|
|
|
100 |
|
|
|
- |
|
|
|
1,000 |
|
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
691,696 |
|
|
$ |
105,254 |
|
|
$ |
- |
|
|
$ |
796,950 |
|
Used Trailers |
|
|
13,640 |
|
|
|
2,492 |
|
|
|
- |
|
|
|
16,132 |
|
Components, parts and
service |
|
|
29,619 |
|
|
|
60,917 |
|
|
|
(5,823 |
) |
|
|
84,713 |
|
Equipment and
other |
|
|
6,898 |
|
|
|
47,783 |
|
|
|
(48 |
) |
|
|
54,633 |
|
Total net
external sales |
|
$ |
741,853 |
|
|
$ |
216,446 |
|
|
$ |
(5,871 |
) |
|
$ |
952,428 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
81,312 |
|
|
$ |
49,032 |
|
|
$ |
(741 |
) |
|
$ |
129,603 |
|
Income (Loss) from
operations |
|
$ |
62,159 |
|
|
$ |
21,124 |
|
|
$ |
(13,966 |
) |
|
$ |
69,317 |
|
WABASH NATIONAL CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Dollars in thousands) |
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
(Unaudited) |
|
|
ASSETS |
Current assets |
|
|
|
|
Cash and
cash equivalents |
|
$ |
187,600 |
|
|
$ |
178,853 |
|
Accounts
receivable |
|
|
131,951 |
|
|
|
152,824 |
|
Inventories |
|
|
213,016 |
|
|
|
166,982 |
|
Deferred
income taxes |
|
|
- |
|
|
|
22,431 |
|
Prepaid
expenses and other |
|
|
25,328 |
|
|
|
8,417 |
|
Total
current assets |
|
$ |
557,895 |
|
|
$ |
529,507 |
|
|
|
|
|
|
Property, plant and
equipment |
|
|
137,722 |
|
|
|
140,438 |
|
|
|
|
|
|
Deferred income
taxes |
|
|
20,500 |
|
|
|
1,358 |
|
|
|
|
|
|
|
|
|
148,229 |
|
|
|
149,718 |
|
|
|
|
|
|
Intangible assets |
|
|
104,541 |
|
|
|
114,616 |
|
|
|
|
|
|
Other assets |
|
|
17,706 |
|
|
|
14,033 |
|
|
|
$ |
986,593 |
|
|
$ |
949,670 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current
liabilities |
|
|
|
|
Current
portion of long-term debt |
|
$ |
2,457 |
|
|
$ |
37,611 |
|
Current
portion of capital lease obligations |
|
|
629 |
|
|
|
806 |
|
Accounts
payable |
|
|
109,388 |
|
|
|
79,618 |
|
Other
accrued liabilities |
|
|
89,115 |
|
|
|
93,042 |
|
Total
current liabilities |
|
$ |
201,589 |
|
|
$ |
211,077 |
|
|
|
|
|
|
Long-term debt |
|
|
277,853 |
|
|
|
274,885 |
|
|
|
|
|
|
Capital lease
obligations |
|
|
1,609 |
|
|
|
1,875 |
|
|
|
|
|
|
Deferred income
taxes |
|
|
583 |
|
|
|
1,497 |
|
|
|
|
|
|
Other noncurrent
liabilities |
|
|
22,719 |
|
|
|
20,525 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Stockholders'
equity |
|
|
482,240 |
|
|
|
439,811 |
|
|
|
$ |
986,593 |
|
|
$ |
949,670 |
|
WABASH NATIONAL CORPORATION |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(Dollars in thousands) |
|
(Unaudited) |
|
|
|
|
Six Months Ended June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
Net income |
$ |
63,055 |
|
|
$ |
39,122 |
|
|
Adjustments to reconcile net income to net cash provided by
(used in) operating activities |
|
|
|
|
Depreciation |
|
8,173 |
|
|
|
8,305 |
|
|
Amortization of intangibles |
|
9,978 |
|
|
|
10,629 |
|
|
Net loss/(gain) on the sale of assets |
|
|
|
17 |
|
|
|
(8,326 |
) |
|
Deferred income taxes |
|
1,770 |
|
|
|
(218 |
) |
|
Excess tax benefits from stock-based compensation |
|
(605 |
) |
|
|
- |
|
|
Loss on debt extinguishment |
|
487 |
|
|
|
5,620 |
|
|
Stock-based compensation |
|
5,702 |
|
|
|
4,539 |
|
|
Impairment of goodwill |
|
1,663 |
|
|
|
- |
|
|
Non-cash interest expense |
|
1,830 |
|
|
|
2,262 |
|
|
Changes in operating assets and liabilities |
|
|
|
|
Accounts receivable |
|
20,873 |
|
|
|
(7,106 |
) |
|
Inventories |
|
(46,034 |
) |
|
|
(66,756 |
) |
|
Prepaid expenses and other |
|
(16,911 |
) |
|
|
(3,593 |
) |
|
Accounts payable and accrued liabilities |
|
25,154 |
|
|
|
57,362 |
|
|
Other, net |
|
1,113 |
|
|
|
619 |
|
|
Net cash provided by operating activities |
$ |
76,265 |
|
|
$ |
42,459 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
Capital expenditures |
|
(8,115 |
) |
|
|
(5,350 |
) |
|
Proceeds from the sale of property, plant and equipment |
|
17 |
|
|
|
13,168 |
|
|
Other, net |
|
- |
|
|
|
(10,000 |
) |
|
Net cash (used in) investing activities |
$ |
(8,098 |
) |
|
$ |
(2,182 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
Proceeds from exercise
of stock options |
|
1,397 |
|
|
|
1,847 |
|
|
Excess tax benefits
from stock-based compensation |
|
|
605 |
|
|
|
- |
|
|
Borrowings under
revolving credit facilities |
|
316 |
|
|
|
416 |
|
|
Payments under
revolving credit facilities |
|
(316 |
) |
|
|
(416 |
) |
|
Principal payments
under capital lease obligations |
|
(443 |
) |
|
|
(746 |
) |
|
Proceeds from issuance
of term loan credit facility |
|
- |
|
|
|
192,845 |
|
|
Principal payments
under term loan credit facility |
|
(964 |
) |
|
|
(193,327 |
) |
|
Principal payments
under industrial revenue bond |
|
(256 |
) |
|
|
(246 |
) |
|
Debt issuance costs
paid |
|
- |
|
|
|
(2,467 |
) |
|
Stock repurchase |
|
(17,698 |
) |
|
|
(41,653 |
) |
|
Convertible senior
notes repurchase |
|
(42,061 |
) |
|
|
- |
|
|
Other, net |
|
- |
|
|
|
(3,079 |
) |
|
Net cash (used in) financing activities |
$ |
(59,420 |
) |
|
$ |
(46,826 |
) |
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents |
$ |
8,747 |
|
|
$ |
(6,549 |
) |
|
Cash and
cash equivalents at beginning of period |
|
178,853 |
|
|
|
146,113 |
|
|
Cash and
cash equivalents at end of period |
$ |
187,600 |
|
|
$ |
139,564 |
|
|
|
|
|
|
|
|
|
|
|
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 June 30, |
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
35,531 |
|
|
$ |
28,649 |
|
|
$ |
63,055 |
|
|
$ |
39,122 |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
19,197 |
|
|
|
16,672 |
|
|
|
35,365 |
|
|
|
22,907 |
|
|
|
|
|
|
|
|
|
Interest expense |
|
3,937 |
|
|
|
4,802 |
|
|
|
8,032 |
|
|
|
9,975 |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
8,987 |
|
|
|
9,482 |
|
|
|
18,151 |
|
|
|
18,934 |
|
|
|
|
|
|
|
|
|
Stock-based
compensation |
|
3,232 |
|
|
|
2,119 |
|
|
|
5,702 |
|
|
|
4,539 |
|
|
|
|
|
|
|
|
|
Impairment of
goodwill |
|
1,663 |
|
|
|
- |
|
|
|
1,663 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Other non-operating
(income) expense |
|
207 |
|
|
|
(8,069 |
) |
|
|
604 |
|
|
|
(2,687 |
) |
|
|
|
|
|
|
|
|
Operating EBITDA |
$ |
72,754 |
|
|
$ |
53,655 |
|
|
$ |
132,572 |
|
|
$ |
92,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Trailing Twelve Months |
|
|
|
|
|
|
|
September 30, 2015 |
|
December 31, 2015 |
|
March 31, 2016 |
|
June 30, 2016 |
|
June 30, 2016 |
|
|
|
|
|
|
Net income |
$ |
31,880 |
|
|
$ |
33,286 |
|
|
$ |
27,524 |
|
|
$ |
35,531 |
|
|
$ |
128,221 |
|
|
|
|
|
|
|
Income tax expense |
|
19,538 |
|
|
|
16,578 |
|
|
|
16,168 |
|
|
|
19,197 |
|
|
|
71,481 |
|
|
|
|
|
|
|
Interest expense |
|
4,784 |
|
|
|
4,789 |
|
|
|
4,095 |
|
|
|
3,937 |
|
|
|
17,605 |
|
|
|
|
|
|
|
Depreciation and
amortization |
|
9,525 |
|
|
|
9,538 |
|
|
|
9,164 |
|
|
|
8,987 |
|
|
|
37,214 |
|
|
|
|
|
|
|
Stock-based
compensation |
|
2,116 |
|
|
|
3,355 |
|
|
|
2,470 |
|
|
|
3,232 |
|
|
|
11,173 |
|
|
|
|
|
|
|
Impairment of
goodwill |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,663 |
|
|
|
1,663 |
|
|
|
|
|
|
|
Impairment of
intangibles |
|
- |
|
|
|
1,087 |
|
|
|
- |
|
|
|
- |
|
|
|
1,087 |
|
|
|
|
|
|
|
Other non-operating
(income) expense |
|
187 |
|
|
|
10 |
|
|
|
398 |
|
|
|
207 |
|
|
|
802 |
|
|
|
|
|
|
|
Operating EBITDA |
$ |
68,030 |
|
|
$ |
68,643 |
|
|
$ |
59,819 |
|
|
$ |
72,754 |
|
|
$ |
269,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Earnings2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
35,531 |
|
|
$ |
0.53 |
|
|
$ |
28,649 |
|
|
$ |
0.41 |
|
|
$ |
63,055 |
|
|
$ |
0.95 |
|
|
$ |
39,122 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branch transactions, net of
taxes |
|
- |
|
|
|
- |
|
|
|
(5,274 |
) |
|
|
(0.07 |
) |
|
|
- |
|
|
|
- |
|
|
|
(5,274 |
) |
|
|
(0.07 |
) |
Loss on debt extinguishment, net of
taxes |
|
- |
|
|
|
- |
|
|
|
211 |
|
|
|
- |
|
|
|
307 |
|
|
|
- |
|
|
|
3,525 |
|
|
|
0.05 |
|
Impairment of goodwill, net of
taxes |
|
1,079 |
|
|
|
0.02 |
|
|
|
- |
|
|
|
- |
|
|
|
1,079 |
|
|
|
0.02 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings |
$ |
36,610 |
|
|
$ |
0.55 |
|
|
$ |
23,586 |
|
|
$ |
0.33 |
|
|
$ |
64,441 |
|
|
$ |
0.97 |
|
|
$ |
37,373 |
|
|
$ |
0.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average # of
Diluted Shares O/S |
|
67,115 |
|
|
|
|
|
70,694 |
|
|
|
|
|
66,670 |
|
|
|
|
|
71,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
September 30, 2015 |
|
December 31, 2015 |
|
March 31, 2016 |
|
|
|
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
31,880 |
|
|
$ |
0.47 |
|
|
$ |
33,286 |
|
|
$ |
0.50 |
|
|
$ |
27,524 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on debt extinguishment, net of
taxes |
|
- |
|
|
|
- |
|
|
|
126 |
|
|
|
- |
|
|
|
307 |
|
|
|
- |
|
|
|
|
|
Impairment of goodwill, net of
taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Impairment of intangibles, net of
taxes |
|
- |
|
|
|
- |
|
|
|
726 |
|
|
|
0.01 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Branch transactions, net of
taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings |
$ |
31,880 |
|
|
$ |
0.47 |
|
|
$ |
34,138 |
|
|
$ |
0.51 |
|
|
$ |
27,831 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average # of
Diluted Shares O/S |
|
68,042 |
|
|
|
|
|
67,218 |
|
|
|
|
|
66,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
Earnings Guidance3: |
|
|
|
|
|
|
|
|
|
|
Range |
|
|
|
|
|
|
|
Low Estimate |
|
High Estimate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Full-Year Net
Income per Diluted Share |
|
1.78 |
|
|
|
1.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on debt extinguishment, net of
taxes |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill, net of
taxes |
|
0.02 |
|
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Full-Year
Adjusted Earnings per Diluted Share |
$ |
1.80 |
|
|
$ |
1.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 charges related
to losses incurred in connection with the Company’s impairment of
goodwill. 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
intangible assets. |
|
|
|
|
|
|
3Forward-looking estimates of net income per diluted share
does not reflect certain future charges and/or credits that are
inherently difficult to predict and estimate due to their
uncertainty in timing and amount. This would include but not
be limited to losses incurred for extinguishment of debt, sale or
impairment of Company assets, gains or losses on transition of
branch activities as well as other unknown items at the time of
this release. |
|
|
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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