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Wabash National Corporation Announces Record Fourth Quarter and Full Year 2015 Results

02/02/2016

  • Fourth quarter and full year GAAP earnings of $0.50 and $1.50 per diluted share, up 85.2 percent and 76.5 percent, respectively, over prior year period
  • Fourth quarter and full year non-GAAP adjusted earnings of $0.51 and $1.49 per diluted share, up 88.9 percent and 67.4 percent, respectively over prior year period
  • New $100 million share repurchase program approved by Board of Directors   
  • Net sales of $2.03 billion, a record for the fourth consecutive year and up 9 percent over prior year
  • Record operating income for the fourth consecutive year of $180.4 million, up 47 percent over prior year
  • Record quarterly net sales of $544 million, up 3.1 percent over prior year period

LAFAYETTE, Ind., Feb. 02, 2016 (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 fourth quarter and full year periods ending December 31, 2015.

Net income for the fourth quarter of 2015 was $33.3 million, or $0.50 per diluted share, compared to fourth quarter 2014 net income of $19.1, or $0.27 per diluted share.  Fourth quarter 2015 non-GAAP adjusted earnings increased $15.0 million as compared to the prior year period to $34.1 million, or $0.51 per diluted share.  Non-GAAP adjusted earnings for the fourth quarter of 2015 includes the impairment of certain intangible assets of $1.1 million related to streamlining of product branding and an early extinguishment of debt charge of $0.2 million incurred with regards to the Company’s repurchase of a portion of the outstanding convertible senior notes.  Net sales for the fourth quarter increased 3 percent to a record $544 million from $527 million in the prior year quarter and operating income increased 60 percent to $54.7 million compared to operating income of $34.1 million for the fourth quarter of 2014.  Operating EBITDA, a non-GAAP measure that excludes the effects of certain recurring and non-recurring items, for the fourth quarter of 2015 was $68.6 million, an increase of $22.5 million compared to operating EBITDA for the previous year quarter.

For the twelve months ended December 31, 2015, the Company reported net income of $104.3 million, or $1.50 per diluted share, on record net sales of $2.03 billion, compared to net income of $60.9 million, or $0.85 per diluted share, on net sales of $1.86 billion for the twelve months ended December 31, 2014. Full year 2015 results included the benefit for adjustments, net of tax, totaling $0.9 million, or $0.01 per diluted share, as gains realized on the sale of the Company’s former retail branch locations were offset by charges for the impairment of certain intangible assets related to streamlining of product branding and the early extinguishment of debt incurred in connection with the refinancing of the Company’s term loan credit facility and repurchases of a portion of the outstanding convertible senior notes.  Excluding the impact of these items, non-GAAP adjusted earnings for the full year 2015 were $103.4 million, or $1.49 per diluted share.  Full year 2014 results included one-time charges net of tax totaling $2.0 million, or $0.03 per diluted share, related to the early extinguishment of debt incurred with the Company’s term loan prepayments, the transition of three Retail branch locations to independent dealer facilities and the revaluation of deferred income taxes due to changes in statutory tax rates.  Excluding the impact of these items, non-GAAP adjusted earnings for the full year 2014 were $63.0 million, or $0.89 per diluted share. 

For full year 2015, the Company achieved record operating EBITDA of $229.5 million, or 11.3 percent of net sales, as compared to $169.0 million, or 9.1 percent of net sales, for the previous year. The year-over-year improvement in operating performance is attributable to the successful execution of the Company’s growth and diversification strategies as well as operational improvements 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)   December 31,   March 31,   June 30,   September 30,   December 31,  
  2014       2015       2015       2015       2015    
   
Net Sales $   527,477     $   437,597     $   514,831     $   531,350     $   543,711    
                     
Gross Profit Margin   11.9 %     13.1 %     14.1 %     16.2 %     16.2 %  
                     
Income from Operations $   34,137     $   27,263     $   42,054     $   56,389     $   54,663    
                     
Income from Operations Margin   6.5 %     6.2 %     8.2 %     10.6 %     10.1 %  
                     
Net Income $   19,088     $   10,474     $   28,649     $   31,880     $   33,286    
 
Diluted EPS $   0.27     $   0.15     $   0.41     $   0.47     $   0.50    
                     
Non-GAAP Measures(1):                    
                                         
Operating EBITDA $   46,147     $   39,135     $   53,655     $   68,030     $   68,643    
 
Operating EBITDA Margin   8.7 %     8.9 %     10.4 %     12.8 %     12.6 %  
                     
Adjusted Earnings $   19,088     $   13,788     $   23,586     $   31,880     $   34,138    
                     
Adjusted Diluted EPS $   0.27     $   0.19     $   0.33     $   0.47     $   0.51    
 

Notes: 

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

Dick Giromini, president and chief executive officer, stated, “We are extremely pleased with our results for 2015 as we set new records across several key financial metrics.  The overall strength in the Company’s operating performance highlights the success of our growth and diversification initiatives driven by our long-term strategic plan to transform the Company into a diversified industrial manufacturer with a higher growth and margin profile, while maintaining our focus and expertise in lean and six sigma optimization initiatives.  This is demonstrated by the achievement of record net sales and operating income for the fourth consecutive year of $2.03 billion and $180.4 million, respectively, as well as a 230 basis point improvement in operating income margin to a record level of 8.9 percent.  Our performance for the year further substantiates the significant progress we have made in our transformation efforts, and underscores our commitment to long-term profitable growth.”

Mr. Giromini continued, “New trailer shipments of 64,700 for the year exceeded our previous guidance due to strong customer pick-up and represents an increase of 7,350 trailers, or 12.8 percent, as compared to the previous year.  We look forward to 2016 with a healthy backlog of orders totaling $1.2 billion, representing an increase of 10 percent as compared to the prior year period, and a trailer demand expected to be well above replacement levels for a fifth consecutive year.  Fleet age, customer profitability, used trailer values, regulatory compliance and access to financing all support continued strong trailer demand and provide a favorable pricing environment within specific product lines.”

Fourth 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 fourth quarter of 2015 and 2014, respectively.  A more complete disclosure of the results by individual segment is included in the tables following this release.

     
(dollars in thousands)   Commercial    Diversified    
      Trailer Products   Products   Retail 
Three months ended December 31,              
  2015            
New trailers shipped       16,100         750         450  
Net sales   $   413,329     $   105,872     $   36,774  
Gross profit   $   58,513     $   24,974     $   4,405  
Gross profit margin     14.2 %     23.6 %     12.0 %
Income from operations   $   51,412     $   11,557     $   590  
Income from operations margin     12.4 %     10.9 %     1.6 %
               
  2014            
New trailers shipped       15,750         1,050         900  
Net sales   $   378,319     $   123,003     $   47,694  
Gross profit   $   30,848     $   26,557     $   4,703  
Gross profit margin     8.2 %     21.6 %     9.9 %
Income from operations   $   25,193     $   14,236     $   595  
Income from operations margin     6.7 %     11.6 %     1.2 %
               

 

Commercial Trailer Products achieved new quarterly records for revenues, gross profit, operating income and operating margin.  Net sales were $413 million, an increase of $35 million, or 9.3 percent, on shipments of 16,100 trailers, representing 350 more trailers than the prior year period.  This increase in revenue was primarily due to an improved pricing environment and the 2.2 percent increase in new trailer shipments during the quarter. Supported by the improved pricing environment, continued strong demand and outstanding operational execution, gross profit and gross profit margin increased $27.7 million and 600 basis points to $58.5 million and 14.2%, respectively, and operating income increased by $26.2 million, or 104.1 percent, to $51.4 million compared to the same period last year.

Diversified Products’ net sales decreased $17 million, or 13.9 percent, as compared to the previous year period as decreases in tank trailer shipments were only partially offset by increased sales of the Company’s aviation refuelers and composite product offerings.  Gross profit decreased $1.6 million, or 6.0 percent, on lower sales; however, gross profit margin improved 200 basis points as compared to the prior year period to 23.6 percent as a result of strong operational execution.  Operating income margin, excluding the charges for impairment of intangible assets during the current quarter, was 11.9 percent, an improvement of 30 basis points as compared to the prior year period.

Retail’s net sales of $37 million decreased 22.9 percent compared with the prior year period primarily due to lower shipments of new trailers as a result of channel optimization activities and early depletion of build slots, which were partially offset by the continued strong demand for parts and service activities.  Gross profit margin increased 210 basis points compared to the prior year period to 12.0 percent due to a shift in product mix favoring the higher-margined parts and service sales.  Operating income for the fourth quarter of 2015 was $0.6 million, consistent with the same period last year.

2016 Outlook
Mr. Giromini further commented, “We enter 2016 with great momentum from a record 2015, a strong trailer demand environment generating a strong backlog, continued excellence in operational performance across all business segments and the potential for organic growth through diversification and innovative new product introductions.  With that backdrop, coupled with a strong industry demand forecast, our current expectations are for 2016 to deliver a very strong year.”

Capital Allocation
During the fourth quarter, Wabash National repurchased $19 million of shares and fully exhausted the $60 million share repurchase program authorized by the Board of Directors in December 2014.  Additionally, in December 2015 the Company entered into agreements with existing holders of a portion of its outstanding Convertible Senior Notes due 2018 to purchase up to $54.2 million in principal, of which $19.0 million was purchased in December 2015, with the remaining amount to be acquired in February 2016.  Jeff Taylor, senior vice president and chief financial officer, said, "Our continuing strong business performance, solid backlog and outlook, and financial position provided us the opportunity to take these actions as part of our ongoing commitment to prudently manage the overall financial risks of the Company, returning capital to our shareholders and deleveraging our balance sheet.  The actions taken during 2015 will lower our overall balance sheet risk while maintaining the flexibility to continue to execute our strategy.”

New Stock Repurchase Program
As previously announced, the Company’s Board of Directors approved the repurchase of up to an additional $100 million of its common stock over a two-year period as the previously authorized repurchase program in December 2014 has been completed.  Stock repurchases under this program may be made in the open market or in private transactions at times and in amounts determined by the Company.  The Company, at its sole discretion, may limit or terminate the stock repurchase program at any time based on market conditions, liquidity needs or other factors.  The program is intended to enhance shareholder value by reducing the overall number of outstanding shares, including by offsetting dilution resulting from stock-based compensation programs. 

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, impairment of intangibles 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 reflect adjustments for income recognized on the sale of former retail branch locations as well as charges related to losses incurred in connection with the Company’s impairment of intangible assets and the 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.

Fourth Quarter 2015 Conference Call
Wabash National will conduct a conference call to review and discuss its fourth quarter results on February 3, 2016, 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 May 3, 2016.  Meeting access also will be available via conference call at 888-771-4371, participant code 41621715.

About Wabash National Corporation

Headquartered in Lafayette, Indiana, Wabash National Corporation (NYSE:WNC) is a diversified industrial manufacturer and North America’s leading producer of semi-trailers and liquid transportation systems. Established in 1985, the Company manufactures a diverse range of products including: dry freight and refrigerated trailers, platform trailers, bulk tank trailers, dry and refrigerated truck bodies, truck-mounted tanks, intermodal equipment, aircraft refueling equipment, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade and pharmaceutical equipment. Its innovative products are sold under the following brand names: Wabash National®, Beall®, Benson®, Brenner® Tank, Bulk Tank International, DuraPlate®, Extract Technology®, Garsite, Progress Tank, Transcraft®, Walker Engineered Products, and Walker Transport. Visit www.wabashnational.com to learn more.

Safe Harbor 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, the statements above under “2016 Outlook” as well as all statements regarding the Company’s outlook for trailer shipments, backlog, expectations regarding demand levels for trailers, non-trailer equipment and our other engineered products, pricing, profitability and earnings, cash flow and liquidity, opportunity to capture higher margin sales, new product innovations, execution of our capital allocation strategy and the Company’s ability to repurchase shares of common stock of the Company 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 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
December 31,
  Twelve Months Ended
December 31,
        2015       2014       2015       2014  
                   
Net sales   $   543,711     $   527,477     $   2,027,489     $   1,863,315  
Cost of sales       455,892         464,756         1,724,046         1,630,681  
    Gross profit       87,819         62,721         303,443         232,634  
                   
General and administrative expenses       19,738         16,804         73,495         61,694  
Selling expenses       7,017         6,315         27,233         26,676  
Amortization of intangibles       5,314         5,465         21,259         21,878  
Other operating expenses       1,087         -          1,087         -   
  Income from operations       54,663         34,137         180,369         122,386  
                   
Other income (expense):                
  Interest expense       (4,789 )       (5,261 )       (19,548 )       (22,165 )
  Other, net       (10 )       (133 )       2,490         (1,759 )
  Income before income taxes       49,864         28,743         163,311         98,462  
Income tax expense       16,578         9,655         59,022         37,532  
Net income    $   33,286     $   19,088     $   104,289     $   60,930  
Basic net income per share   $   0.50     $   0.28     $   1.55     $   0.88  
Diluted net income per share   $   0.50     $   0.27     $   1.50     $   0.85  
                   
Comprehensive income                
  Net income   $   33,286     $   19,088     $   104,289     $   60,930  
    Foreign currency translation adjustment       (121 )       (574 )       (863 )       (619 )
Net comprehensive income   $   33,165     $   18,514     $   103,426     $   60,311  
                   
                   
Basic net income per share:                
  Net income applicable to common stockholders   $   33,286     $   19,088     $   104,289     $   60,930  
  Undistributed earnings allocated to participating securities       -         (98 )       -         (481 )
  Net income applicable to common stockholders excluding amounts                
    applicable to participating securities   $   33,286     $   18,990     $   104,289     $   60,449  
  Weighted average common shares outstanding       65,994         68,993         67,201         68,895  
  Basic net income per share   $   0.50     $   0.28     $   1.55     $   0.88  
                   
Diluted net income per share:                
  Net income applicable to common stockholders   $   33,286     $   19,088     $   104,289     $   60,930  
  Undistributed earnings allocated to participating securities       -         (98 )       -         (481 )
  Net income applicable to common stockholders excluding                
    amounts applicable to participating securities   $   33,286     $   18,990     $   104,289     $   60,449  
                   
  Weighted average common shares outstanding       65,994         68,993         67,201         68,895  
  Dilutive shares from assumed conversion of convertible senior notes       125         -         1,128         1,354  
  Dilutive stock options and restricted stock       1,099         692         1,039         814  
  Diluted weighted average common shares outstanding       67,218         69,685         69,368         71,063  
  Diluted net income per share   $   0.50     $   0.27     $   1.50     $   0.85  
                                   

 

   
WABASH NATIONAL CORPORATION  
SEGMENTS AND RELATED INFORMATION  
(Dollars in thousands)  
(Unaudited)  
                         
      Commercial    Diversified       Corporate and      
Three Months Ended December 31,   Trailer Products   Products   Retail    Eliminations   Consolidated  
  2015                      
New trailers shipped       16,100         750         450         (350 )       16,950    
Used trailers shipped       350         -         200         -         550    
                         
New Trailers   $   399,706     $   48,416     $   13,208     $   (8,300 )   $   453,030    
Used Trailers       6,374         1,145         2,971         (404 )       10,086    
Components, parts and service       1,670         21,204         19,753         (3,254 )       39,373    
Equipment and other       5,579         35,107         842         (306 )       41,222    
    Total net external sales   $   413,329     $   105,872     $   36,774     $   (12,264 )   $   543,711    
                         
Gross profit   $   58,513     $   24,974     $   4,405     $   (73 )   $   87,819    
Income (Loss) from operations   $   51,412     $   11,557     $   590     $   (8,896 )   $   54,663    
                         
  2014                      
New trailers shipped       15,750         1,050         900         (850 )       16,850    
Used trailers shipped       100         50         250         -         400    
                         
New Trailers   $   369,724     $   64,755     $   23,758     $   (18,181 )   $   440,056    
Used Trailers       1,788         1,248         3,976         -         7,012    
Components, parts and service       1,071         19,405         18,971         (3,375 )       36,072    
Equipment and other       5,736         37,595         989         17         44,337    
  Total net external sales   $   378,319     $   123,003     $   47,694     $   (21,539 )   $   527,477    
                         
Gross profit   $   30,848     $   26,557     $   4,703     $   613     $   62,721    
Income (Loss) from operations   $   25,193     $   14,236     $   595     $   (5,887 )   $   34,137    
                         
Twelve Months Ended December 31,                        
  2015                      
New trailers shipped       61,350         3,400         2,500         (2,550 )       64,700    
Used trailers shipped       1,000         150         950         (50 )       2,050    
                         
New Trailers   $   1,467,029     $   218,028     $   67,639     $   (60,467 )   $   1,692,229    
Used Trailers       19,962         4,558         13,622         (2,562 )       35,580    
Components, parts and service       6,300         93,251         83,115         (12,646 )       170,020    
Equipment and other       16,089         112,184         2,915         (1,528 )       129,660    
  Total net external sales   $   1,509,380     $   428,021     $   167,291     $   (77,203 )   $   2,027,489    
                         
Gross profit   $   186,772     $   98,839     $   19,871     $   (2,039 )   $   303,443    
Income (Loss) from operations   $   158,805     $   47,940     $   4,401     $   (30,777 )   $   180,369    
                         
  2014                      
New trailers shipped       53,550         3,550         3,450         (3,200 )       57,350    
Used trailers shipped       3,150         150         1,550         -         4,850    
                         
New Trailers   $   1,250,264     $   227,382     $   89,041     $   (72,862 )   $   1,493,825    
Used Trailers       23,576         4,593         16,946         -         45,115    
Components, parts and service       3,475         100,764         80,533         (14,183 )       170,589    
Equipment and other       16,849         133,499         3,560         (122 )       153,786    
  Total net external sales   $   1,294,164     $   466,238     $   190,080     $   (87,167 )   $   1,863,315    
                         
Gross profit   $   104,800     $   103,379     $   20,728     $   3,727     $   232,634    
Income (Loss) from operations   $   81,141     $   54,879     $   3,785     $   (17,419 )   $   122,386    
                                           

 

 
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
             
        December 31,   December 31,
          2015       2014  
        (Unaudited)    
ASSETS
Current assets        
  Cash and cash equivalents   $   178,853     $   146,113  
  Accounts receivable       152,824         135,206  
  Inventories       166,982         177,144  
  Deferred income taxes       22,431         16,993  
  Prepaid expenses and other       8,417         10,203  
    Total current assets   $   529,507     $   485,659  
             
Property, plant and equipment       140,438         142,892  
             
Deferred income taxes       1,358         -  
             
Goodwill         149,718         149,603  
             
Intangible assets       114,616         137,100  
             
Other assets       14,489         13,397  
        $   950,126     $   928,651  
             
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities        
  Current portion of long-term debt   $   37,611     $   496  
  Current portion of capital lease obligations       806         1,458  
  Accounts payable       79,618         96,213  
  Other accrued liabilities       93,042         88,690  
    Total current liabilities   $   211,077     $   186,857  
             
Long-term debt       275,341         324,777  
             
Capital lease obligations       1,875         5,796  
             
Deferred income taxes       1,497         2,349  
             
Other noncurrent liabilities       20,525         18,040  
             
Commitments and contingencies        
             
Stockholders' equity       439,811         390,832  
        $   950,126     $   928,651  
                     

 

WABASH NATIONAL CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
(Dollars in thousands)  
(Unaudited)  
   
  Twelve Months Ended December 31,  
    2015       2014    
         
Cash flows from operating activities            
  Net income $   104,289     $   60,930    
  Adjustments to reconcile net income to net cash provided by (used in) operating activities          
  Depreciation     16,739         16,951    
    Amortization of intangibles     21,259         21,878    
    Net (gain) loss on the sale of assets     (8,299 )       13    
    Deferred income taxes     (7,749 )       16,573    
    Loss on debt extinguishment     5,808         1,042    
    Stock-based compensation     10,010         7,833    
    Non-cash interest expense     5,222         5,994    
    Impairment of intangibles     1,087         -    
  Changes in operating assets and liabilities        
  Accounts receivable     (17,618 )       (14,848 )  
  Inventories     10,162         3,116    
  Prepaid expenses and other     1,786         (571 )  
  Accounts payable and accrued liabilities     (12,243 )       (26,787 )  
  Other, net     1,342         511    
  Net cash provided by operating activities $   131,795     $   92,635    
                         
Cash flows from investing activities            
  Capital expenditures     (20,847 )       (19,957 )  
  Proceeds from the sale of property, plant & equipment       13,203         87    
  Other, net     -         4,113    
  Net cash (used in) investing activities $   (7,644 )   $   (15,757 )  
                         
Cash flows from financing activities            
  Proceeds from exercise of stock options     2,012         1,921    
  Borrowings under revolving credit facilities     1,134         806    
  Payments under revolving credit facilities     (1,134 )       (806 )  
  Principal payments under capital lease obligations     (4,201 )       (1,898 )  
  Proceeds from issuance of term loan credit facility     192,845         -    
  Principal payments under term loan credit facility     (194,291 )       (42,078 )  
  Principal payments under industrial revenue bond     (496 )       (475 )  
  Debt issuance costs paid     (2,587 )       -    
  Convertible notes repurchase     (22,936 )       -    
  Stock repurchase     (61,757 )       (1,497 )  
  Net cash (used in) financing activities $   (91,411 )   $   (44,027 )  
                         
Net increase (decrease) in cash and cash equivalents $   32,740     $   32,851    
Cash and cash equivalents at beginning of period     146,113         113,262    
Cash and cash equivalents at end of period $   178,853     $   146,113    
                         

 

 
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,
               
    2015       2014       2015       2014                  
Net income $   33,286     $   19,088     $   104,289     $   60,930                  
Income tax expense     16,578         9,655         59,022         37,532                  
Interest expense     4,789         5,261         19,548         22,165                  
Depreciation and amortization     9,538         9,686         37,997         38,829                  
Stock-based compensation     3,355         2,324         10,010         7,833                  
Impairment of intangibles     1,087         -         1,087         -                  
Other non-operating (income) expense     10         133         (2,490 )       1,759                  
Operating EBITDA $   68,643     $   46,147     $   229,463     $   169,048                  
                               
                               
  Three Months Ended                
  March 31,
2015
  June 30,
2015
  September 30,
2015
  December 31,
2015
               
Net income  $   10,474     $   28,649     $   31,880     $   33,286                  
Income tax expense     6,234         16,672         19,538         16,578                  
Interest expense     5,173         4,802         4,784         4,789                  
Depreciation and amortization     9,452         9,482         9,525         9,538                  
Stock-based compensation     2,420         2,119         2,116         3,355                  
Impairment of intangibles     -         -         -         1,087                  
Other non-operating (income) expense     5,382         (8,069 )       187         10                  
Operating EBITDA $   39,135     $   53,655     $   68,030     $   68,643                  
                               
                               
Adjusted Earnings2:                              
  Three Months Ended December 31,   Twelve Months Ended December 31,
    2015       2014       2015       2014  
  $   Per Share   $   Per Share   $   Per Share   $   Per Share
                               
Net Income $   33,286     $   0.50     $   19,088     $   0.27     $   104,289     $   1.50     $   60,930     $  0.86  
                               
Adjustments:                              
Revaluation of net deferred income tax assets                              
  due to changes in statutory tax rates   -         -         -         -         -         -         1,041        0.01  
Branch Transactions, net of taxes3     -         -         -         -         (5,274 )       (0.07 )       376        0.01  
Impairment of intangibles, net of taxes     726         -         -         -         726         0.01         -         -  
Loss on debt extinguishment, net of taxes     126         -         -         -         3,651         0.05         645        0.01  
                               
Adjusted earnings $   34,138     $   0.51     $   19,088     $   0.27     $   103,392     $   1.49     $   62,992     $  0.89  
                               
Weighted Average # of Diluted Shares O/S     67,218             69,685             69,368             71,063      
                               
                               
  Three Months Ended        
  March 31, 2015   June 30, 2015   September 30, 2015        
  $   Per Share   $   Per Share   $   Per Share        
                               
Net Income $   10,474     $   0.15     $   28,649     $   0.41     $   31,880     $   0.47          
                               
Adjustments:                              
Loss on debt extinguishment, net of taxes     3,314         0.05         211         -         -         -          
Branch Transactions, net of taxes     -         -         (5,274 )       (0.07 )       -         -          
                               
Adjusted earnings $   13,788     $   0.19     $   23,586     $   0.33     $   31,880     $   0.47          
                               
Weighted Average # of Diluted Shares O/S     71,557             70,694             68,042              
                               
1Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, impairment of intangibles and other non-operating income and expense. 
                                                           
2Adjusted earnings and adjusted earnings per diluted share reflect adjustments for non-recurring income recognized on the sale of former retail branch locations as well as charges related to losses incurred in connection with the Company’s impairment of intangible assets and the extinguishment of debt.  Historically, we have excluded from these measures the revaluation of deferred income tax assets due to changes in statutory tax rates. 
                                                           
3 Branch  Transactions are comprised of the sale of assets for three West Coast Retail branches in 2014 and the real estate associated with these same branches in 2015
                                                           


Media Contact:
Dana Stelsel
Corporate Communications Manager Marketing
(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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