News Details

• Net sales of $515 million for second quarter 2015, up 6 percent year over year
• Record operating income of $42.1 million, up 24 percent year over year
• GAAP earnings of $0.41 per diluted share improves 78 percent year over year
• Non-GAAP adjusted earnings of $0.33 per diluted share improves 38 percent year over year
• Non-GAAP adjusted earnings guidance for full year 2015 increases to $1.25 - $1.35 per diluted share, a year over year improvement of 46 percent at the midpoint of the range     
   
  
  

LAFAYETTE, Ind., July 28, 2015 (GLOBE NEWSWIRE) -- 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, 2015. 

Net income for the second quarter of 2015 was $28.6 million, or $0.41 per diluted share, compared to second quarter 2014 net income of $16.2 million, or $0.23 per diluted share.  Second quarter 2015 non-GAAP adjusted earnings increased $6.7 million to $23.6 million, or $0.33 per diluted share, from $16.9 million, or $0.24 per diluted share, for the second quarter 2014.  Non-GAAP adjusted earnings for the second quarter of 2015 excludes $8.3 million of gains from the sale of two former Retail locations during the quarter and a $0.3 million charge in connection with the refinancing of the Company’s asset based lending facility in June 2015.  Non-GAAP adjusted earnings for the second quarter of 2014 includes charges totaling $1.1 million related to the early extinguishment of debt and the transition of three Retail locations to independent dealer facilities.

For the second quarter of 2015, the Company’s net sales increased 6 percent to $515 million from $486 million in the prior year quarter, and operating income increased 24 percent to a record quarter of $42.1 million compared to operating income of $33.9 million for the second quarter of 2014.  Operating EBITDA, a non-GAAP measure that excludes the effects of certain recurring and non-recurring items, for the second quarter of 2015 was $53.7 million, an increase of $8.0 million compared to Operating EBITDA for the previous year period.  On a trailing twelve month basis, the Company’s net sales were $2.0 billion, generating Operating EBITDA of $185.6 million, or 9.4 percent of net sales.  Continued improvement in operating performance is attributable to the successful execution of the Company’s growth and diversification strategy.

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

Dick Giromini, president and chief executive officer, stated, “We are very pleased with the ongoing progress and our ability to deliver second quarter results that represent record achievement levels for gross profit and income from operations.  Sustained improvement in the Company’s overall operating performance demonstrates and validates the transformative nature of our strategic growth efforts as our diversification and operational improvement initiatives are paying strong dividends.  While all segments contributed positively to the record performances this quarter, Commercial Trailer Products lead the way with its ongoing commitment to margin improvement and manufacturing excellence.  Through the first six months of 2015 we have continued the momentum generated last year with strong operational execution and an accelerated pace of improvement from our record breaking 2014.”

Mr. Giromini continued, “New trailer shipments for the second quarter were approximately 16,900, coming in at the top-end of our previous guidance of 16,000 to 17,000 trailers.  The year-over-year increase in total trailer demand as evidenced by our strong backlog of $1.1 billion, along with ongoing demand strength being projected by both ACT Research and FTR, provides us even greater confidence that 2015 will prove to be our fourth consecutive year of record performance.  As such, we are now increasing our full-year shipment and adjusted earnings guidance to 63,000 to 66,000 trailers and $1.25 to $1.35 per diluted share, respectively.”

Second Quarter Business Segment Highlights

The table below is a summary of select segment operating and financial results prior to the elimination of intersegment sales for the second quarter of 2015 and 2014, respectively.  A complete disclosure of the results by individual segment is included in the tables following this release.

Commercial Trailer Products’ achieved new quarterly records for net sales, gross margin and operating income.  Net sales were $395 million, an increase of $59 million, or 17.4 percent, on shipments of 16,150 trailers, or 2,250 more trailers than the prior year period.  This increase in revenue was primarily due to a 16.2 percent increase in trailer shipments during the quarter as well as the ongoing commitment to improve the financial performance within the core trailer business.  Driven by higher volumes, an improved pricing environment and continued operational improvements, gross profit and gross profit margin increased $18.2 million and 340 basis points, respectively, as compared to the same period last year.  Operating income increased by $17.0 million to $39.0 million from the second quarter last year.

Diversified Products’ net sales decreased $21 million, or 17.9 percent, as compared to the previous year period primarily due to reduced demand for composite product offerings and non-trailer related equipment as well as fewer tank trailer shipments due to delays in customer pick-ups.  Gross profit margin for the second quarter of 22.1 percent remained consistent with the previous year period, however, gross profit and operating income declined $4.7 million and $5.2 million, respectively, compared to the prior year period, primarily due to lower overall net sales and continued competitive market pressures on certain products.

Retail’s net sales of $45 million decreased 11.9 percent compared with the prior year period, primarily due to fewer retail locations resulting from the transition of three West Coast locations to independent dealers in May 2014 as demand for trailers and parts and service remained healthy throughout the quarter.  On a same store basis, net sales increased $2 million, or 5.0 percent, compared with the prior year period.  Gross profit margin of 11.7 percent improved from 11.1 percent in the prior year period primarily due to a shift in product mix favoring higher-margined parts and service sales.  Operating income of $1.4 million increased $0.1 million from the same period last year and increased $0.3 million on a same store basis.

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 contain 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, and other non-operating income and expense.  Management believes Operating EBITDA provides useful information to investors regarding our results of operations.  The Company provides this measure because we believe it is useful for investors to understand our 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 reflect adjustments for non-recurring income recognized on sale of former retail branch locations as well as charges related to losses incurred in connection with the Company’s extinguishment of debt.  Historically, we have excluded from these measures the revaluation of deferred income tax assets due to changes in statutory tax rates.  Management believes providing this measure and excluding these items facilitate comparisons to the Company’s prior year periods and, when combined with the primary GAAP presentation of net income and diluted net income per share, is beneficial to an investor’s understanding of the Company’s performance.  A reconciliation of adjusted earnings and adjusted earnings per diluted share to net income and diluted net income per share is included in the tables following this release.

Second Quarter 2015 Conference Call

Wabash National will conduct a conference call to review and discuss its second quarter results on July 29, 2015, 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 21, 2015.  Meeting access also will be available via conference call at 855-307-2551, participant code 82028551.

Wabash National Analyst / Investor Day

Wabash National Corporation will host an investor event for institutional investors and analysts on August 18, 2015 at the Company’s headquarters in Lafayette, Indiana.  As a diversified industrial manufacturer and North America’s leading producer of semi-trailers, Wabash National’s investor event will provide an in-depth look at the Company with a focus on its long-term strategy in addition to its key growth and diversification initiatives.

The Wabash National Analyst / Investor Day will begin with a dinner hosted by Wabash National’s management team on Monday, August 17 at 6:30 PM EDT at the Company’s Ehrlich Innovation Center.  On Tuesday, August 18 beginning at 7:45 AM EDT attendees will be provided with a tour of Lafayette manufacturing operations, product displays as well as presentations by members of Wabash National’s executive team, including president and chief executive officer Dick Giromini.  Following the presentations and plant tour in Lafayette, the event will conclude with a tour of the Company’s newest manufacturing operations for composite products in Frankfort, Indiana.  To register or request additional information regarding this event, please contact Mike Pettit at investor.relations@wabashnational.com.

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 specializes in the design and production of dry freight vans, refrigerated vans, platform trailers, liquid tank trailers, intermodal equipment, engineered products, and composite products.  Its innovative products are sold under the following brand names: Wabash National^®, Transcraft^®, Benson^®, DuraPlate^®, ArcticLite^®, Walker Transport, Walker Defense Group, Walker Barrier Systems, Walker Engineered Products, Brenner^® Tank, Beall^®, Garsite, Progress Tank, TST^®, Bulk Tank International and Extract Technology^®. To learn more, visit 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, statements regarding the Company’s outlook for trailer shipments, backlog, expectations regarding demand levels for trailers, non-trailer equipment and our other engineered products, profitability and earnings, opportunity to capture higher margin sales, and the expectations regarding the Company’s 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 demand expectations may not result in order increases for us, 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.

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