News Details

• 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:

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.

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.

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