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
quarter ended June 30, 2019.
Net sales for the second quarter 2019 increased
2 percent to $626 million from $613 million in the prior year
quarter, as growth was led by the Company’s Final Mile and
Diversified Products Group Segments. Operating income was $47.5
million in the second quarter of 2019 and the Company achieved a
consolidated operating margin of 7.6 percent during the second
quarter of 2019, which represents an improvement of 10 basis points
from the second quarter of 2018, highlighting the success of both
short and long-term initiatives targeting margin expansion.
“I am very pleased with our operating
performance during the second quarter. We delivered revenue
of $626 million which is an all-time record for Wabash National and
we generated our strongest operating margins in two years, driven
by the Wabash Management System," explained Brent Yeagy, president
and chief executive officer. "The strength of our free cash
generation allowed us the flexibility not only to pay our regular
quarterly dividend and make progress on debt-reduction, but also to
repurchase shares during the quarter.”
Net income for the second quarter 2019 was $31.0
million, or 56 cents per diluted share, which compares to 54
cents in the second quarter of 2018 or 49 cents on a Non-GAAP
Adjusted basis. Operating EBITDA, a non-GAAP measure that excludes
the effects of certain items, for the second quarter 2019 was $61.0
million, or 9.7 percent of net sales.
Mr. Yeagy continued, “We are pleased to raise
the midpoint of our full-year EPS outlook by 5 cents to $1.65 based
on our strong second quarter performance. The midpoint of our
outlook for the second half of the year remains unchanged as our
stable backlogs give us visibility to strong revenue.”
Business Segment Highlights
The table below is a summary of select segment
operating and financial results prior to the elimination of
intersegment sales for the second quarter of 2019 and 2018. A
complete disclosure of the results by individual segment is
included in the tables following this release.
|
|
Commercial TrailerProducts |
|
Diversified Products |
|
Final Mile Products |
Three Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
New trailers shipped |
|
14,250 |
|
|
15,650 |
|
|
750 |
|
|
650 |
|
|
— |
|
|
— |
|
Net sales |
|
$ |
400,864 |
|
|
$ |
402,507 |
|
|
$ |
97,026 |
|
|
$ |
94,085 |
|
|
$ |
134,817 |
|
|
$ |
121,209 |
|
Gross profit |
|
$ |
46,906 |
|
|
$ |
47,513 |
|
|
$ |
20,123 |
|
|
$ |
16,692 |
|
|
$ |
21,289 |
|
|
$ |
20,923 |
|
Gross profit margin |
|
11.7 |
% |
|
11.8 |
% |
|
20.7 |
% |
|
17.7 |
% |
|
15.8 |
% |
|
17.3 |
% |
Income (loss) from
operations |
|
$ |
39,918 |
|
|
$ |
40,784 |
|
|
$ |
8,911 |
|
|
$ |
4,395 |
|
|
$ |
9,221 |
|
|
$ |
10,258 |
|
Income (loss) from operations
margin |
|
10.0 |
% |
|
10.1 |
% |
|
9.2 |
% |
|
4.7 |
% |
|
6.8 |
% |
|
8.5 |
% |
Commercial Trailer Products’ net sales for the
second quarter was $401 million, a decrease of $1.6 million, or 0.4
percent as compared to the prior year quarter. Gross profit margin
for the second quarter decreased 10 basis points as compared to the
prior year period primarily due to product and customer mix.
Operating income decreased $0.9 million, or 2.1 percent, from the
second quarter last year to $39.9 million, or 10.0 percent of net
sales.
Diversified Products’ net sales for the second
quarter were $97 million, an increase of $2.9 million, or 3.1
percent, as compared to the prior year, due primarily to increased
demand for liquid tank trailers. Gross profit and profit margin as
compared to the prior year period increased $3.4 million and 300
basis points, respectively, as the segment benefited from product
mix and cost recovery among other internal initiatives driven by
the Wabash Management System. Operating income in the second
quarter of 2019 was $8.9 million, or 9.2 percent of net sales,
representing an increase of $4.5 million as compared to the prior
year period.
Final Mile Products’ net sales for the second
quarter totaled $135 million, an increase of $13.6 million, or 11.2
percent, as compared to the prior year, due to strong market and
customer demand. Gross profit margin for the second quarter
decreased 150 basis points as compared to the prior year period
primarily due to product mix and higher employee-related costs.
Operating income was $9.2 million, or 6.8 percent of net sales,
compared to $10.3 million, or 8.5 percent of net sales in the prior
year period.
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, adjusted operating income, adjusted net income
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, acquisition expenses and related charges, 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 operating income, a non-GAAP financial
measure, excludes certain costs, expenses, other charges, gains or
income that are included in the determination of operating income
under U.S. GAAP, but that management would not consider important
in evaluating the quality of the Company’s operating results as
they are not indicative of the Company’s core operating results or
may obscure trends useful in evaluating the Company’s continuing
activities. Accordingly, the Company presents adjusted operating
income excluding these Special Items to help investors evaluate our
operating performance and trends in our business consistent with
how management evaluates such performance and trends. Further, the
Company presents adjusted operating income to provide investors
with a better understanding of the Company’s view of our results as
compared to prior periods. A reconciliation of adjusted
operating income to operating income, the most comparable GAAP
financial measure, is included in the tables following this press
release.
Adjusted net income and adjusted earnings per
diluted share, each reflect adjustments for acquisition expenses,
the losses attributable to the Company’s extinguishment of debt,
income or losses recognized on the sale and/or closure of former
Company 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 each of adjusted net income and
adjusted earnings per diluted share to net income and net income
per diluted share is included in the tables following this
release.
Second Quarter 2019 Conference
Call
Wabash National will discuss its results during
its quarterly investor conference call on Wednesday, July 31,
2019, beginning at 10:00 a.m. EDT. The call and an
accompanying slide presentation will be accessible on the
"Investors" section of the Company’s website
www.wabashnational.com. The conference call will also be accessible
by dialing (844) 778-4139, conference ID 7848058. A replay of
the call will be available on the site shortly after the conclusion
of the presentation.
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, 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®, 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, our expectations for improved financial performance
during the course of the year 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 continued 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 including the impact
of tariffs or other international trade developments, risks in
implementing and sustaining improvements in the Company’s
manufacturing operations and cost containment, dependence on
industry trends and timing, supplier constraints, labor costs and
availability, customer acceptance of and reactions to pricing
changes 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
CORPORATIONCONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited - dollars in thousands)
|
June 30, 2019 |
|
December 31, 2018 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
140,155 |
|
|
$ |
132,690 |
|
Accounts receivable, net |
170,177 |
|
|
181,064 |
|
Inventories |
264,567 |
|
|
184,404 |
|
Prepaid expenses and other |
40,550 |
|
|
51,261 |
|
Total current assets |
615,449 |
|
|
549,419 |
|
Property, plant, and
equipment, net |
208,718 |
|
|
206,991 |
|
Goodwill |
311,085 |
|
|
311,084 |
|
Intangible assets |
200,089 |
|
|
210,328 |
|
Other assets |
39,488 |
|
|
26,571 |
|
Total assets |
$ |
1,374,829 |
|
|
$ |
1,304,393 |
|
Liabilities and Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Current portion of long-term debt |
$ |
— |
|
|
$ |
1,880 |
|
Current portion of finance lease obligations |
317 |
|
|
299 |
|
Accounts payable |
200,641 |
|
|
153,113 |
|
Other accrued liabilities |
120,356 |
|
|
116,384 |
|
Total current liabilities |
321,314 |
|
|
271,676 |
|
Long-term debt |
489,865 |
|
|
503,018 |
|
Finance lease obligations |
544 |
|
|
714 |
|
Deferred income taxes |
32,691 |
|
|
34,905 |
|
Other non-current
liabilities |
28,850 |
|
|
20,231 |
|
Total liabilities |
873,264 |
|
|
830,544 |
|
Commitments and
contingencies |
|
|
|
Stockholders' equity: |
|
|
|
Common stock 200,000,000 shares authorized, $0.01 par value,
54,675,691 and 55,135,788 shares outstanding, respectively |
749 |
|
|
744 |
|
Additional paid-in capital |
634,465 |
|
|
629,039 |
|
Retained earnings |
186,934 |
|
|
150,244 |
|
Accumulated other comprehensive loss |
(3,896 |
) |
|
(3,343 |
) |
Treasury stock at cost, 20,331,511 and 19,372,735 common shares,
respectively |
(316,687 |
) |
|
(302,835 |
) |
Total stockholders' equity |
501,565 |
|
|
473,849 |
|
Total liabilities and stockholders' equity |
$ |
1,374,829 |
|
|
$ |
1,304,393 |
|
WABASH NATIONAL
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited - dollars in thousands, except per
share amounts)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net sales |
$ |
626,053 |
|
|
$ |
612,690 |
|
|
$ |
1,159,227 |
|
|
$ |
1,104,009 |
|
Cost of sales |
538,403 |
|
|
527,375 |
|
|
1,002,887 |
|
|
954,576 |
|
Gross profit |
87,650 |
|
|
85,315 |
|
|
156,340 |
|
|
149,433 |
|
General and administrative
expenses |
26,509 |
|
|
25,778 |
|
|
56,649 |
|
|
50,887 |
|
Selling expenses |
8,494 |
|
|
8,556 |
|
|
16,717 |
|
|
16,901 |
|
Amortization of intangible
assets |
5,109 |
|
|
4,940 |
|
|
10,238 |
|
|
9,881 |
|
Acquisition expenses |
— |
|
|
— |
|
|
— |
|
|
68 |
|
Income from operations |
47,538 |
|
|
46,041 |
|
|
72,736 |
|
|
71,696 |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest expense |
(7,020 |
) |
|
(7,151 |
) |
|
(14,110 |
) |
|
(14,605 |
) |
Other, net |
1,081 |
|
|
4,037 |
|
|
912 |
|
|
11,953 |
|
Other expense, net |
(5,939 |
) |
|
(3,114 |
) |
|
(13,198 |
) |
|
(2,652 |
) |
Income before income tax |
41,599 |
|
|
42,927 |
|
|
59,538 |
|
|
69,044 |
|
Income tax expense |
10,639 |
|
|
11,025 |
|
|
13,798 |
|
|
15,870 |
|
Net income |
$ |
30,960 |
|
|
$ |
31,902 |
|
|
$ |
45,740 |
|
|
$ |
53,174 |
|
Net income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.56 |
|
|
$ |
0.55 |
|
|
$ |
0.83 |
|
|
$ |
0.92 |
|
Diluted |
$ |
0.56 |
|
|
$ |
0.54 |
|
|
$ |
0.82 |
|
|
$ |
0.89 |
|
Weighted average
common shares outstanding (in thousands): |
|
|
|
|
|
|
|
Basic |
55,197 |
|
|
57,879 |
|
|
55,233 |
|
|
57,836 |
|
Diluted |
55,668 |
|
|
59,274 |
|
|
55,719 |
|
|
60,023 |
|
|
|
|
|
|
|
|
|
Dividends declared per
share |
$ |
0.080 |
|
|
$ |
0.075 |
|
|
$ |
0.160 |
|
|
$ |
0.150 |
|
WABASH NATIONAL
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(Unaudited - dollars in thousands)
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
45,740 |
|
|
$ |
53,174 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
Depreciation |
10,957 |
|
|
10,330 |
|
Amortization of intangibles |
10,238 |
|
|
9,881 |
|
Net loss (gain) on sale of property, plant and equipment |
481 |
|
|
(9,743 |
) |
Loss on debt extinguishment |
53 |
|
|
174 |
|
Deferred income taxes |
(2,214 |
) |
|
(81 |
) |
Stock-based compensation |
5,377 |
|
|
5,390 |
|
Non-cash interest expense |
523 |
|
|
1,110 |
|
Changes in operating assets and liabilities |
|
|
|
Accounts receivable |
10,886 |
|
|
(46,564 |
) |
Inventories |
(80,163 |
) |
|
(56,057 |
) |
Prepaid expenses and other |
(325 |
) |
|
1,756 |
|
Accounts payable and accrued liabilities |
58,210 |
|
|
72,792 |
|
Other, net |
1,210 |
|
|
(1,691 |
) |
Net cash provided by operating activities |
60,973 |
|
|
40,471 |
|
Cash flows from
investing activities: |
|
|
|
Capital expenditures |
(14,995 |
) |
|
(11,117 |
) |
Proceeds from sale of property, plant and equipment |
38 |
|
|
16,426 |
|
Other, net |
— |
|
|
3,060 |
|
Net cash (used in) provided by investing activities |
(14,957 |
) |
|
8,369 |
|
Cash flows from
financing activities: |
|
|
|
Proceeds from exercise of stock options |
55 |
|
|
910 |
|
Dividends paid |
(9,061 |
) |
|
(9,271 |
) |
Borrowings under revolving credit facilities |
288 |
|
|
423 |
|
Payments under revolving credit facilities |
(288 |
) |
|
(423 |
) |
Principal payments under finance lease obligations |
(152 |
) |
|
(143 |
) |
Principal payments under term loan credit facility |
(15,470 |
) |
|
(940 |
) |
Principal payments under industrial revenue bond |
— |
|
|
(92 |
) |
Debt issuance costs paid |
(71 |
) |
|
— |
|
Convertible senior notes repurchase |
— |
|
|
(80,200 |
) |
Stock repurchase |
(13,852 |
) |
|
(21,413 |
) |
Net cash used in financing activities |
(38,551 |
) |
|
(111,149 |
) |
Cash, cash
equivalents, and restricted cash: |
|
|
|
Net increase (decrease) for the period |
7,465 |
|
|
(62,309 |
) |
At beginning of period |
132,690 |
|
|
191,521 |
|
At end of period |
$ |
140,155 |
|
|
$ |
129,212 |
|
Supplemental
disclosures of cash flow information: |
|
|
|
Cash paid for interest |
$ |
13,661 |
|
|
$ |
14,071 |
|
Cash paid for income taxes |
$ |
10,567 |
|
|
$ |
12,700 |
|
WABASH NATIONAL
CORPORATIONSEGMENTS AND RELATED
INFORMATION(Unaudited - dollars in thousands)
Three Months Ended June 30, |
|
CommercialTrailer Products |
|
DiversifiedProducts |
|
Final MileProducts |
|
Corporate andEliminations |
|
Consolidated |
2019 |
|
|
|
|
|
|
|
|
|
|
New trailers shipped |
|
14,250 |
|
|
750 |
|
|
— |
|
|
— |
|
|
15,000 |
|
Used trailers shipped |
|
— |
|
|
25 |
|
|
— |
|
|
— |
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
385,842 |
|
|
$ |
49,325 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
435,167 |
|
Used Trailers |
|
13 |
|
|
739 |
|
|
— |
|
|
— |
|
|
752 |
|
Components, parts and service |
|
10,622 |
|
|
29,007 |
|
|
4,447 |
|
|
(6,575 |
) |
|
37,501 |
|
Equipment and other |
|
4,387 |
|
|
17,955 |
|
|
130,370 |
|
|
(79 |
) |
|
152,633 |
|
Total net external sales |
|
$ |
400,864 |
|
|
$ |
97,026 |
|
|
$ |
134,817 |
|
|
$ |
(6,654 |
) |
|
$ |
626,053 |
|
Gross profit |
|
$ |
46,906 |
|
|
$ |
20,123 |
|
|
$ |
21,289 |
|
|
$ |
(668 |
) |
|
$ |
87,650 |
|
Income (Loss) from operations |
|
$ |
39,918 |
|
|
$ |
8,911 |
|
|
$ |
9,221 |
|
|
$ |
(10,512 |
) |
|
$ |
47,538 |
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
New trailers shipped |
|
|
15,650 |
|
|
650 |
|
|
— |
|
|
— |
|
|
16,300 |
|
Used trailers shipped |
|
250 |
|
|
50 |
|
|
— |
|
|
— |
|
|
300 |
|
|
|
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
385,131 |
|
|
$ |
37,602 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
422,733 |
|
Used Trailers |
|
2,499 |
|
|
628 |
|
|
— |
|
|
— |
|
|
3,127 |
|
Components, parts and service |
|
9,042 |
|
|
31,926 |
|
|
2,623 |
|
|
(5,091 |
) |
|
38,500 |
|
Equipment and other |
|
5,835 |
|
|
23,929 |
|
|
118,586 |
|
|
(20 |
) |
|
148,330 |
|
Total net external sales |
|
$ |
402,507 |
|
|
$ |
94,085 |
|
|
$ |
121,209 |
|
|
$ |
(5,111 |
) |
|
$ |
612,690 |
|
Gross profit |
|
$ |
47,513 |
|
|
$ |
16,692 |
|
|
$ |
20,923 |
|
|
$ |
187 |
|
|
$ |
85,315 |
|
Income (Loss) from operations |
|
$ |
40,784 |
|
|
$ |
4,395 |
|
|
$ |
10,258 |
|
|
$ |
(9,396 |
) |
|
$ |
46,041 |
|
Six Months Ended June 30, |
|
CommercialTrailer Products |
|
DiversifiedProducts |
|
Final MileProducts |
|
Corporate andEliminations |
|
Consolidated |
2019 |
|
|
|
|
|
|
|
|
|
|
New trailers shipped |
|
26,650 |
|
|
1,450 |
|
|
— |
|
|
— |
|
|
28,100 |
|
Used trailers shipped |
|
50 |
|
|
50 |
|
|
— |
|
|
— |
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
711,661 |
|
|
$ |
95,124 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
806,785 |
|
Used Trailers |
|
150 |
|
|
1,326 |
|
|
— |
|
|
— |
|
|
1,476 |
|
Components, parts and service |
|
20,955 |
|
|
64,891 |
|
|
7,863 |
|
|
(14,495 |
) |
|
79,214 |
|
Equipment and other |
|
9,143 |
|
|
35,333 |
|
|
227,803 |
|
|
(527 |
) |
|
271,752 |
|
Total net external sales |
|
$ |
741,909 |
|
|
$ |
196,674 |
|
|
$ |
235,666 |
|
|
$ |
(15,022 |
) |
|
$ |
1,159,227 |
|
Gross profit |
|
$ |
82,846 |
|
|
$ |
40,222 |
|
|
$ |
34,813 |
|
|
$ |
(1,541 |
) |
|
$ |
156,340 |
|
Income (Loss) from operations |
|
$ |
66,239 |
|
|
$ |
16,955 |
|
|
$ |
11,090 |
|
|
$ |
(21,548 |
) |
|
$ |
72,736 |
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
New trailers shipped |
|
28,300 |
|
|
1,200 |
|
|
— |
|
|
— |
|
|
29,500 |
|
Used trailers shipped |
|
750 |
|
|
50 |
|
|
— |
|
|
— |
|
|
800 |
|
|
|
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
695,449 |
|
|
$ |
71,441 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
766,890 |
|
Used Trailers |
|
6,906 |
|
|
1,714 |
|
|
— |
|
|
— |
|
|
8,620 |
|
Components, parts and service |
|
17,690 |
|
|
65,894 |
|
|
5,036 |
|
|
(11,853 |
) |
|
76,767 |
|
Equipment and other |
|
9,884 |
|
|
50,239 |
|
|
191,632 |
|
|
(23 |
) |
|
251,732 |
|
Total net external sales |
|
$ |
729,929 |
|
|
$ |
189,288 |
|
|
$ |
196,668 |
|
|
$ |
(11,876 |
) |
|
$ |
1,104,009 |
|
Gross profit |
|
$ |
84,036 |
|
|
$ |
33,990 |
|
|
$ |
32,455 |
|
|
$ |
(1,048 |
) |
|
$ |
149,433 |
|
Income (Loss) from operations |
|
$ |
70,265 |
|
|
$ |
9,423 |
|
|
$ |
10,867 |
|
|
$ |
(18,859 |
) |
|
$ |
71,696 |
|
WABASH NATIONAL
CORPORATIONSEGMENT AND COMPANY FINANCIAL
INFORMATION(Unaudited - dollars in thousands)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Commercial Trailer
Products |
|
|
|
|
|
|
|
Income from operations |
$ |
39,918 |
|
|
$ |
40,784 |
|
|
$ |
66,239 |
|
|
$ |
70,265 |
|
|
|
|
|
|
|
|
|
Diversified
Products |
|
|
|
|
|
|
|
Income from operations |
8,911 |
|
|
4,395 |
|
|
16,955 |
|
|
9,423 |
|
|
|
|
|
|
|
|
|
Final Mile
Products |
|
|
|
|
|
|
|
Income from operations |
9,221 |
|
|
10,258 |
|
|
11,090 |
|
|
10,867 |
|
Adjustments: |
|
|
|
|
|
|
|
Acquisition expenses and related charges |
— |
|
|
(164 |
) |
|
— |
|
|
751 |
|
Adjusted operating income |
9,221 |
|
|
10,094 |
|
|
11,090 |
|
|
11,618 |
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
Income from operations |
(10,512 |
) |
|
(9,396 |
) |
|
(21,548 |
) |
|
(18,859 |
) |
Adjustments: |
|
|
|
|
|
|
|
Acquisition expenses and related charges |
— |
|
|
— |
|
|
— |
|
|
68 |
|
Adjusted operating income |
(10,512 |
) |
|
(9,396 |
) |
|
(21,548 |
) |
|
(18,791 |
) |
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
Income from operations |
47,538 |
|
|
46,041 |
|
|
72,736 |
|
|
71,696 |
|
Adjustments: |
|
|
|
|
|
|
|
Acquisition expenses and related charges |
— |
|
|
(164 |
) |
|
— |
|
|
819 |
|
Adjusted operating income |
$ |
47,538 |
|
|
$ |
45,877 |
|
|
$ |
72,736 |
|
|
$ |
72,515 |
|
WABASH NATIONAL
CORPORATIONRECONCILIATION OF GAAP FINANCIAL
MEASURES TONON-GAAP FINANCIAL
MEASURES(Unaudited - dollars in thousands, except per
share amounts)
Operating
EBITDA1: |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net income |
$ |
30,960 |
|
|
$ |
31,902 |
|
|
$ |
45,740 |
|
|
$ |
53,174 |
|
Income tax expense |
10,639 |
|
|
11,025 |
|
|
13,798 |
|
|
15,870 |
|
Interest expense |
7,020 |
|
|
7,151 |
|
|
14,110 |
|
|
14,605 |
|
Depreciation and
amortization |
10,646 |
|
|
10,107 |
|
|
21,195 |
|
|
20,211 |
|
Stock-based compensation |
2,791 |
|
|
2,733 |
|
|
5,377 |
|
|
5,390 |
|
Acquisition expenses |
— |
|
|
— |
|
|
— |
|
|
68 |
|
Other non-operating
income |
(1,081 |
) |
|
(4,037 |
) |
|
(912 |
) |
|
(11,953 |
) |
Operating EBITDA |
$ |
60,975 |
|
|
$ |
58,881 |
|
|
$ |
99,308 |
|
|
$ |
97,365 |
|
Adjusted Net
Income2: |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net income |
$ |
30,960 |
|
|
$ |
31,902 |
|
|
$ |
45,740 |
|
|
$ |
53,174 |
|
Adjustments: |
|
|
|
|
|
|
|
Facility transactions3 |
— |
|
|
(3,506 |
) |
|
— |
|
|
(10,629 |
) |
Loss on debt extinguishment |
— |
|
|
— |
|
|
— |
|
|
174 |
|
Acquisition expenses and related charges |
— |
|
|
(164 |
) |
|
— |
|
|
819 |
|
Tax effect of aforementioned items |
— |
|
|
954 |
|
|
— |
|
|
2,505 |
|
Adjusted net income |
$ |
30,960 |
|
|
$ |
29,186 |
|
|
$ |
45,740 |
|
|
$ |
46,043 |
|
Adjusted Diluted
Earnings Per Share2: |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Diluted earnings per share |
$ |
0.56 |
|
|
$ |
0.54 |
|
|
$ |
0.82 |
|
|
$ |
0.89 |
|
Adjustments: |
|
|
|
|
|
|
|
Facility transactions3 |
— |
|
|
(0.06 |
) |
|
— |
|
|
(0.18 |
) |
Acquisition expenses and related charges |
— |
|
|
— |
|
|
— |
|
|
0.01 |
|
Tax effect of aforementioned items |
— |
|
|
0.02 |
|
|
— |
|
|
0.04 |
|
Adjusted diluted earnings per
share |
$ |
0.56 |
|
|
$ |
0.49 |
|
|
$ |
0.82 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
Weighted average number of
diluted shares outstanding (in thousands) |
55,668 |
|
|
59,274 |
|
|
55,719 |
|
|
60,023 |
|
1Operating EBITDA is defined as
earnings before interest, taxes, depreciation, amortization,
stock-based compensation, acquisition expenses and related charges,
and other non-operating income and expense.
2Adjusted net income and
adjusted earnings per diluted share reflect adjustments for
acquisition expenses, the losses attributable to the Company’s
extinguishment of debt, income or losses recognized on the sale
and/or closure of former Company locations.
3Facility transactions in 2018
and 2019 relate to gains and/or losses incurred for the sale or
closure of former Company locations.
Media Contact:Dana StelselDirector, Corporate
Communications(765) 771-5766dana.stelsel@wabashnational.com
Investor Relations:Ryan ReedDirector, Investor
Relations(765) 771-5805ryan.reed@wabashnational.com
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