- Achieved record quarter net sales of $613 million, a 41 percent increase from prior year
- Gross profit and operating income increased 26 percent and 19 percent, respectively, compared to the prior year
- Second quarter GAAP and non-GAAP earnings of $0.54 and $0.49 per diluted share, respectively
- Backlog increased 51 percent to $1.2 billion compared to the prior year
- Company updates full-year 2018 guidance for new trailer shipments of 60,000 to 62,000 trailers and GAAP and non-GAAP earnings to $2.06 to $2.12 per diluted share and $1.94 to $2.00 per diluted share, respectively
LAFAYETTE, Ind., July 31, 2018 (GLOBE NEWSWIRE) -- 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 ending June 30, 2018.
Net sales for the second quarter 2018 increased 41 percent to $613 million from $436 million in the prior year quarter. This increase reflects strong top-line growth in each of the Company’s three operating segments due to a continued healthy demand environment and the favorable impact of the inclusion of the results of Supreme Industries, Inc. (“Supreme”), acquired in the third quarter of 2017. Gross profit increased $17.6 million and profit margin decreased 160 basis points as compared to the prior year period. The decrease in the profit margin is due primarily to increased material costs, higher labor costs attributable to attracting and retaining a skilled workforce and supplier constraints for key materials leading to production inefficiencies. Operating income increased 19 percent to $46.0 million compared to operating income of $38.7 million for the second quarter 2017.
“We are pleased to have delivered a strong performance in the quarter, especially considering the challenging environment we faced, as we continue to execute our strategic plan to profitably grow and diversify,” stated Brent Yeagy, president and chief executive officer. “We achieved a new record for quarterly consolidated revenue at approximately $613 million, which is 13 percent higher than the previous record from the fourth quarter of 2015. This new record is directly attributable to the addition of the Supreme business and our Final Mile Products segment. Needless to say, we continue to believe our Final Mile Products business will help drive future growth for Wabash National. Overall, all three of our reporting segments continue to experience strong demand in most end markets and we expect a stronger second half of 2018.”
Mr. Yeagy continued, “Backlog totaling $1.2 billion as of June 30, 2018, remains seasonally and historically strong, increasing approximately 51 percent when compared to the prior year quarter. Trailer and truck body demand and orders have remained strong for the past several months continuing the trend from the first quarter and supporting our belief in the growing secular demand in e-commerce and home delivery. We continue to take steps to reduce the margin impact of U.S. tariff policy, raw material inflation, supply base disruptions and a very tight labor market on our business in 2018. As a result, we are updating our full-year guidance for 2018 new trailer shipments to 60,000 to 62,000 units and GAAP and non-GAAP earnings to $2.06 to $2.12 per diluted share and $1.94 to $2.00 per diluted share, respectively. With our focus on people, purpose and performance we will continue to drive ongoing productivity improvements throughout the organization and progress on our strategic initiatives.”
Net income for the second quarter 2018 was $31.9 million, or $0.54 per diluted share, compared to the second quarter 2017 net income of $22.9 million, or $0.36 per diluted share. Second quarter 2018 non-GAAP adjusted earnings were $29.2 million, or $0.49 per diluted share, a $6.0 million increase as compared to the prior year period. Non-GAAP adjusted earnings for the second quarter 2018 excludes net gains on sale of former facilities and acquisition and integration related activities associated with Supreme. Non-GAAP adjusted earnings for the second quarter 2017 includes charges related to the early extinguishment of debt in connection with the Company’s repurchase of a portion of its outstanding convertible senior notes, one-time executive severance costs and losses on closure of former facilities.
Operating EBITDA, a non-GAAP measure that excludes the effects of certain items, for the second quarter 2018 was $58.9 million, an increase of $9.4 million compared to operating EBITDA for the prior year period. On a trailing twelve month basis, net sales totaled $2.1 billion, generating operating EBITDA of $195.5 million, or 9.4 percent of net sales.
The following is a summary of select operating and financial results for the past five quarters:
| Three Months Ended |
(Dollars in thousands, except per
share amounts) |
|
June 30, |
|
September 30, |
|
December 31, |
|
March 31, |
|
June 30, |
| |
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2018 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net Sales |
|
$ |
435,903 |
|
|
$ |
425,098 |
|
|
$ |
543,444 |
|
|
$ |
491,319 |
|
|
$ |
612,690 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Gross Profit Margin |
|
|
15.5 |
% |
|
|
14.3 |
% |
|
|
13.4 |
% |
|
|
13.1 |
% |
|
|
13.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Income from Operations |
|
$ |
38,668 |
|
|
$ |
26,591 |
|
|
$ |
35,293 |
|
|
$ |
25,656 |
|
|
$ |
46,041 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Income from Operations Margin |
|
|
8.9 |
% |
|
|
6.3 |
% |
|
|
6.5 |
% |
|
|
5.2 |
% |
|
|
7.5 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Net Income |
|
$ |
22,945 |
|
|
$ |
18,947 |
|
|
$ |
49,356 |
|
|
$ |
21,272 |
|
|
$ |
31,902 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Diluted EPS |
|
$ |
0.36 |
|
|
$ |
0.30 |
|
|
$ |
0.80 |
|
|
$ |
0.35 |
|
|
$ |
0.54 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Measures(1): |
|
|
|
|
|
|
|
|
|
|
| Operating EBITDA |
|
$ |
49,450 |
|
|
$ |
46,561 |
|
|
$ |
51,062 |
|
|
$ |
38,984 |
|
|
$ |
58,881 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Operating EBITDA Margin |
|
|
11.3 |
% |
|
|
11.0 |
% |
|
|
9.4 |
% |
|
|
7.9 |
% |
|
|
9.6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Adjusted Earnings |
|
$ |
23,189 |
|
|
$ |
21,214 |
|
|
$ |
22,250 |
|
|
$ |
16,857 |
|
|
$ |
29,186 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Adjusted Diluted EPS |
|
$ |
0.37 |
|
|
$ |
0.34 |
|
|
$ |
0.36 |
|
|
$ |
0.28 |
|
|
$ |
0.49 |
|
| |
|
|
|
|
|
Notes:
- See “Non-GAAP Measures” below for explanation of the non-GAAP results included above.
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 2018 and 2017. Final Mile Products segment did not exist as a separate segment in the second quarter of 2017; therefore, only 2018 highlights are shown. A complete disclosure of the results by individual segment is included in the tables following this release.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Commercial Trailer Products |
|
Diversified Products |
|
Final Mile
Products |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended June 30 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
| New trailers shipped |
|
|
15,650 |
|
|
|
13,600 |
|
|
|
650 |
|
|
|
550 |
|
|
|
- |
|
|
| Net sales |
|
$ |
402,507 |
|
|
$ |
348,140 |
|
|
$ |
94,085 |
|
|
$ |
90,827 |
|
|
$ |
121,209 |
|
|
| Gross profit |
|
$ |
47,513 |
|
|
$ |
50,882 |
|
|
$ |
16,692 |
|
|
$ |
17,149 |
|
|
$ |
20,923 |
|
|
| Gross profit margin |
|
|
11.8 |
% |
|
|
14.6 |
% |
|
|
17.7 |
% |
|
|
18.9 |
% |
|
|
17.3 |
% |
|
| Income from operations |
|
$ |
40,784 |
|
|
$ |
42,155 |
|
|
$ |
4,395 |
|
|
$ |
5,061 |
|
|
$ |
10,258 |
|
|
| Income from operations margin |
|
10.1 |
% |
|
|
12.1 |
% |
|
|
4.7 |
% |
|
|
5.6 |
% |
|
|
8.5 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Trailer Products’ net sales for the second quarter were $403 million, an increase of $54 million, or 16 percent, as compared to the prior year. Gross profit margin for the second quarter decreased 280 basis points as compared to the prior year period primarily due to increases in material costs due to tariff related inflation, short term labor costs required to meet current demand and supplier induced production interruptions. Operating income decreased $1.4 million, or 3 percent, from the second quarter last year to $40.8 million, or 10.1 percent of net sales.
Diversified Products’ net sales for the second quarter were $94 million, an increase of $3 million, or 4 percent, as compared to the prior year, due primarily to the increased demand for liquid tank trailers as compared to the previous year period. Gross profit and profit margins as compared to the prior year period decreased $0.5 million and 120 basis points, respectively, primarily due to increased material costs and short-term labor inefficiencies, including higher overtime levels in order to meet strong demand requirements. Operating income for the second quarter 2018 was $4.4 million, or 4.7 percent of net sales, a decrease of $0.7 million compared to the prior year.
Final Mile Products’ net sales for the second quarter totaled $121 million. This is the highest revenue quarter in Supreme’s history and is the result of a strong demand market in the truck body industry. Gross profit and gross profit margin for the second quarter were $20.9 million and 17.3 percent, respectively. Operating income for the second quarter 2018 totaled $10.3 million, or 8.5 percent of net sales.
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, charges incurred in connection with the acquisition and integration of Supreme, 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 earnings and adjusted earnings per diluted share for the three- and six-month periods ending June 30, 2018 and 2017 reflect adjustments for charges incurred in connection with acquisition and integration of Supreme, the losses attributable to the Company’s extinguishment of debt, executive severance costs and income or losses recognized on sale of former branch locations. Prior periods would also include adjustments related to tax benefits associated with the adjustment of the Company’s net deferred income tax liability as a result of the Tax Cuts and Jobs Act of 2017 and reversal of reserves for uncertain tax positions. 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 adjusted earnings 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 2018 Conference Call
Wabash National will conduct a conference call to review and discuss its second quarter results on August 1, 2018 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 24, 2018. Meeting access also will be available via conference call at 800-708-4539, participant code 47275547.
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, 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, 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, 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 CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Dollars in thousands, except per share amounts) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
| |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
| |
|
|
|
|
|
|
|
|
|
| Net sales |
|
$ |
612,690 |
|
|
$ |
435,903 |
|
|
$ |
1,104,009 |
|
|
$ |
798,619 |
|
| Cost of sales |
|
|
527,375 |
|
|
|
368,225 |
|
|
|
954,576 |
|
|
|
671,584 |
|
| |
Gross profit |
|
|
85,315 |
|
|
|
67,678 |
|
|
|
149,433 |
|
|
|
127,035 |
|
| |
|
|
|
|
|
|
|
|
|
| General and administrative expenses |
|
|
25,778 |
|
|
|
19,018 |
|
|
|
50,887 |
|
|
|
37,436 |
|
| Selling expenses |
|
|
8,556 |
|
|
|
5,897 |
|
|
|
16,901 |
|
|
|
12,070 |
|
| Amortization of intangibles |
|
|
4,940 |
|
|
|
4,095 |
|
|
|
9,881 |
|
|
|
8,597 |
|
| Acquisition expenses |
|
|
- |
|
|
|
- |
|
|
|
68 |
|
|
|
- |
|
| |
Income from operations |
|
|
46,041 |
|
|
|
38,668 |
|
|
|
71,696 |
|
|
|
68,932 |
|
| |
|
|
|
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
| |
Interest expense |
|
|
(7,151 |
) |
|
|
(2,888 |
) |
|
|
(14,605 |
) |
|
|
(5,878 |
) |
| |
Other, net |
|
|
4,037 |
|
|
|
325 |
|
|
|
11,953 |
|
|
|
1,657 |
|
| |
Income before income taxes |
|
|
42,927 |
|
|
|
36,105 |
|
|
|
69,044 |
|
|
|
64,711 |
|
| Income tax expense |
|
|
11,025 |
|
|
|
13,160 |
|
|
|
15,870 |
|
|
|
21,593 |
|
| Net income |
|
$ |
31,902 |
|
|
$ |
22,945 |
|
|
$ |
53,174 |
|
|
$ |
43,118 |
|
| Dividends declared per share |
|
$ |
0.075 |
|
|
$ |
0.06 |
|
|
$ |
0.15 |
|
|
$ |
0.12 |
|
| Basic net income per share |
|
$ |
0.55 |
|
|
$ |
0.38 |
|
|
$ |
0.92 |
|
|
$ |
0.72 |
|
| Diluted net income per share |
|
$ |
0.54 |
|
|
$ |
0.36 |
|
|
$ |
0.89 |
|
|
$ |
0.68 |
|
| |
|
|
|
|
|
|
|
|
|
| Comprehensive income (loss): |
|
|
|
|
|
|
|
|
| |
Net income |
|
$ |
31,902 |
|
|
$ |
22,945 |
|
|
$ |
53,174 |
|
|
$ |
43,118 |
|
| |
Foreign currency translation adjustment |
|
|
(600 |
) |
|
|
294 |
|
|
|
(127 |
) |
|
|
772 |
|
| |
Unrealized holding loss on investments |
|
|
(44 |
) |
|
|
- |
|
|
|
(109 |
) |
|
|
- |
|
| Net comprehensive income |
|
$ |
31,258 |
|
|
$ |
23,239 |
|
|
$ |
52,938 |
|
|
$ |
43,890 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Basic net income per share: |
|
|
|
|
|
|
|
|
| |
Net income applicable to common stockholders |
|
$ |
31,902 |
|
|
$ |
22,945 |
|
|
$ |
53,174 |
|
|
$ |
43,118 |
|
| |
Weighted average common shares outstanding |
|
|
57,879 |
|
|
|
59,902 |
|
|
|
57,836 |
|
|
|
60,022 |
|
| |
Basic net income per share |
|
$ |
0.55 |
|
|
$ |
0.38 |
|
|
$ |
0.92 |
|
|
$ |
0.72 |
|
| |
|
|
|
|
|
|
|
|
|
| Diluted net income per share: |
|
|
|
|
|
|
|
|
| |
Net income applicable to common stockholders |
|
$ |
31,902 |
|
|
$ |
22,945 |
|
|
$ |
53,174 |
|
|
$ |
43,118 |
|
| |
|
|
|
|
|
|
|
|
|
| |
Weighted average common shares outstanding |
|
|
57,879 |
|
|
|
59,902 |
|
|
|
57,836 |
|
|
|
60,022 |
|
| |
Dilutive shares from assumed conversion of convertible senior notes |
|
|
435 |
|
|
|
1,831 |
|
|
|
1,073 |
|
|
|
1,762 |
|
| |
Dilutive stock options and restricted stock |
|
|
960 |
|
|
|
1,474 |
|
|
|
1,114 |
|
|
|
1,519 |
|
| |
Diluted weighted average common shares outstanding |
|
|
59,274 |
|
|
|
63,207 |
|
|
|
60,023 |
|
|
|
63,303 |
|
| |
Diluted net income per share |
|
$ |
0.54 |
|
|
$ |
0.36 |
|
|
$ |
0.89 |
|
|
$ |
0.68 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WABASH NATIONAL CORPORATION |
| SEGMENTS AND RELATED INFORMATION |
| (Dollars in thousands) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Commercial |
|
Diversified |
|
Final Mile |
|
Corporate and |
|
|
| Three Months Ended June 30, |
|
Trailer Products |
|
Products |
|
Products |
|
Eliminations |
|
Consolidated |
| |
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 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
2017 |
|
|
|
|
|
|
|
|
|
|
| New trailers shipped |
|
|
13,600 |
|
|
550 |
|
|
- |
|
|
- |
|
|
|
14,150 |
| Used trailers shipped |
|
|
50 |
|
|
50 |
|
|
- |
|
|
- |
|
|
|
100 |
| |
|
|
|
|
|
|
|
|
|
|
|
| New Trailers |
|
$ |
329,405 |
|
$ |
33,290 |
|
$ |
- |
|
$ |
- |
|
|
$ |
362,695 |
| Used Trailers |
|
|
1,236 |
|
|
637 |
|
|
- |
|
|
- |
|
|
|
1,873 |
| Components, parts and service |
|
|
13,102 |
|
|
32,194 |
|
|
- |
|
|
(3,064 |
) |
|
|
42,232 |
| Equipment and other |
|
|
4,398 |
|
|
24,705 |
|
|
- |
|
|
- |
|
|
|
29,103 |
| |
Total net external sales |
|
$ |
348,140 |
|
$ |
90,827 |
|
$ |
- |
|
$ |
(3,064 |
) |
|
$ |
435,903 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
$ |
50,882 |
|
$ |
17,149 |
|
$ |
- |
|
$ |
(352 |
) |
|
$ |
67,678 |
| Income (Loss) from operations |
|
$ |
42,154 |
|
$ |
5,062 |
|
$ |
- |
|
$ |
(8,548 |
) |
|
$ |
38,668 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Six Months Ended June 30, |
|
|
|
|
|
|
|
|
|
|
| |
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 |
|
$ |
(1,047 |
) |
|
$ |
149,434 |
| Income (Loss) from operations |
|
$ |
70,265 |
|
$ |
9,423 |
|
$ |
10,867 |
|
$ |
(18,859 |
) |
|
$ |
71,696 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
2017 |
|
|
|
|
|
|
|
|
|
|
| New trailers shipped |
|
|
24,000 |
|
|
1,050 |
|
|
- |
|
|
- |
|
|
|
25,050 |
| Used trailers shipped |
|
|
150 |
|
|
50 |
|
|
- |
|
|
- |
|
|
|
200 |
| |
|
|
|
|
|
|
|
|
|
|
|
| New Trailers |
|
$ |
586,595 |
|
$ |
63,985 |
|
$ |
- |
|
$ |
- |
|
|
$ |
650,580 |
| Used Trailers |
|
|
2,123 |
|
|
1,856 |
|
|
- |
|
|
- |
|
|
|
3,979 |
| Components, parts and service |
|
|
25,845 |
|
|
65,869 |
|
|
- |
|
|
(5,047 |
) |
|
|
86,667 |
| Equipment and other |
|
|
8,367 |
|
|
49,026 |
|
|
- |
|
|
- |
|
|
|
57,393 |
| |
Total net external sales |
|
$ |
622,929 |
|
$ |
180,737 |
|
$ |
- |
|
$ |
(5,047 |
) |
|
$ |
798,619 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
$ |
93,008 |
|
$ |
34,742 |
|
$ |
- |
|
$ |
(715 |
) |
|
$ |
127,035 |
| Income (Loss) from operations |
|
$ |
75,546 |
|
$ |
9,666 |
|
$ |
- |
|
$ |
(16,280 |
) |
|
$ |
68,932 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WABASH NATIONAL CORPORATION |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Dollars in thousands) |
| |
|
|
|
|
|
|
| |
|
|
|
June 30, |
|
December 31, |
| |
|
|
|
2018 |
|
2017 |
| |
|
|
|
(Unaudited) |
|
|
| ASSETS |
| Current assets |
|
|
|
|
| |
Cash and cash equivalents |
|
$ |
119,215 |
|
$ |
191,521 |
| |
Accounts receivable |
|
|
193,450 |
|
|
146,836 |
| |
Inventories |
|
|
234,122 |
|
|
180,735 |
| |
Prepaid expenses and other |
|
|
57,343 |
|
|
57,299 |
| |
|
Total current assets |
|
$ |
604,130 |
|
$ |
576,391 |
| |
|
|
|
|
|
|
| Property, plant and equipment |
|
|
195,546 |
|
|
195,363 |
| |
|
|
|
|
|
|
| Goodwill |
|
|
|
315,977 |
|
|
317,464 |
| |
|
|
|
|
|
|
| Intangible assets |
|
|
226,618 |
|
|
237,030 |
| |
|
|
|
|
|
|
| Other assets |
|
|
26,860 |
|
|
25,265 |
| |
|
|
|
$ |
1,369,131 |
|
$ |
1,351,513 |
| |
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
| Current liabilities |
|
|
|
|
| |
Current portion of long-term debt |
|
$ |
1,880 |
|
$ |
46,020 |
| |
Current portion of capital lease obligations |
|
|
281 |
|
|
290 |
| |
Accounts payable |
|
|
183,966 |
|
|
108,448 |
| |
Other accrued liabilities |
|
|
122,552 |
|
|
128,910 |
| |
|
Total current liabilities |
|
$ |
308,679 |
|
$ |
283,668 |
| |
|
|
|
|
|
|
| Long-term debt |
|
|
503,576 |
|
|
504,091 |
| |
|
|
|
|
|
|
| Capital lease obligations |
|
|
879 |
|
|
1,012 |
| |
|
|
|
|
|
|
| Deferred income taxes |
|
|
36,808 |
|
|
36,955 |
| |
|
|
|
|
|
|
| Other noncurrent liabilities |
|
|
19,974 |
|
|
19,724 |
| |
|
|
|
|
|
|
| Stockholders' equity |
|
|
499,215 |
|
|
506,063 |
| |
|
|
|
$ |
1,369,131 |
|
$ |
1,351,513 |
| |
|
|
|
|
|
|
|
|
| WABASH NATIONAL CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Dollars in thousands) |
| (Unaudited) |
| |
| |
Six Months Ended June 30, |
| |
|
2018 |
|
|
|
2017 |
|
| |
|
|
|
| Cash flows from operating activities |
|
|
|
|
|
| |
Net income |
$ |
53,174 |
|
|
$ |
43,118 |
|
| |
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
| |
Depreciation |
|
10,330 |
|
|
|
8,412 |
|
| |
|
Amortization of intangibles |
|
9,881 |
|
|
|
8,597 |
|
| |
|
Net gain on the sale of assets |
|
|
|
(9,743 |
) |
|
|
(2,502 |
) |
| |
|
Deferred income taxes |
|
(81 |
) |
|
|
45 |
|
| |
|
Loss on debt extinguishment |
|
174 |
|
|
|
764 |
|
| |
Stock-based compensation |
|
5,390 |
|
|
|
5,430 |
|
| |
|
Non-cash interest expense |
|
1,110 |
|
|
|
1,042 |
|
| |
Changes in operating assets and liabilities |
|
|
|
| |
Accounts receivable |
|
(46,564 |
) |
|
|
30,656 |
|
| |
Inventories |
|
(56,057 |
) |
|
|
(60,748 |
) |
| |
Prepaid expenses and other |
|
1,756 |
|
|
|
3,998 |
|
| |
Accounts payable and accrued liabilities |
|
72,792 |
|
|
|
35,285 |
|
| |
Other, net |
|
(1,691 |
) |
|
|
1,147 |
|
| |
Net cash provided by operating activities |
$ |
40,471 |
|
|
$ |
75,244 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from investing activities |
|
|
|
|
|
| |
Capital expenditures |
|
(11,117 |
) |
|
|
(10,856 |
) |
| |
Proceeds from the sale of property, plant, and equipment |
|
|
16,426 |
|
|
|
3,736 |
|
| |
Other, net |
|
|
|
|
|
3,060 |
|
|
|
1,220 |
|
| |
Net cash provided by (used in) investing activities |
$ |
8,369 |
|
|
$ |
(5,900 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from financing activities |
|
|
|
|
|
| |
Proceeds from exercise of stock options |
|
|
|
910 |
|
|
|
5,630 |
|
| |
Dividends paid |
|
|
|
|
|
(9,271 |
) |
|
|
(7,767 |
) |
| |
Borrowings under revolving credit facilities |
|
|
423 |
|
|
|
371 |
|
| |
Payments under revolving credit facilities |
|
|
|
(423 |
) |
|
|
(371 |
) |
| |
Principal payments under capital lease obligations |
|
|
(143 |
) |
|
|
(303 |
) |
| |
Proceeds from issuance of term loan credit facility |
|
|
- |
|
|
|
189,470 |
|
| |
Principal payments under term loan credit facility |
|
|
(940 |
) |
|
|
(190,418 |
) |
| |
Principal payments under industrial revenue bond |
|
|
(92 |
) |
|
|
(311 |
) |
| |
Debt issuance costs paid |
|
|
|
|
- |
|
|
|
(354 |
) |
| |
Stock repurchase |
|
|
|
|
|
(21,413 |
) |
|
|
(42,794 |
) |
| |
Convertible senior notes repurchase |
|
|
|
(80,200 |
) |
|
|
(7,331 |
) |
| |
Net cash used in financing activities |
$ |
(111,149 |
) |
|
$ |
(54,178 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net (decrease) increase in cash, cash equivalents, and restricted cash |
$ |
(62,309 |
) |
|
$ |
15,166 |
|
| Cash, cash equivalents, and restricted cash at beginning of period |
|
191,521 |
|
|
|
163,467 |
|
| Cash, cash equivalents, and restricted cash at end of period |
$ |
129,212 |
|
|
$ |
178,633 |
|
| |
|
|
|
|
|
|
|
| WABASH NATIONAL CORPORATION |
|
|
|
| RECONCILIATION OF GAAP FINANCIAL MEASURES TO |
|
|
|
| NON-GAAP FINANCIAL MEASURES |
|
|
|
| (Dollars in thousands, except per share amounts) |
|
|
|
| (Unaudited) |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating EBITDA1: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
|
|
|
|
|
|
|
| |
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
| Net income |
$ |
31,902 |
|
|
$ |
22,945 |
|
|
$ |
53,174 |
|
|
$ |
43,118 |
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
11,025 |
|
|
|
13,160 |
|
|
|
15,870 |
|
|
|
21,593 |
|
|
|
|
|
|
|
|
|
| Interest expense |
|
7,151 |
|
|
|
2,888 |
|
|
|
14,605 |
|
|
|
5,878 |
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
10,107 |
|
|
|
8,315 |
|
|
|
20,211 |
|
|
|
17,009 |
|
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
2,733 |
|
|
|
2,467 |
|
|
|
5,390 |
|
|
|
5,430 |
|
|
|
|
|
|
|
|
|
| Acquisition expenses |
|
- |
|
|
|
- |
|
|
|
68 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
| Other non-operating income |
|
(4,037 |
) |
|
|
(325 |
) |
|
|
(11,953 |
) |
|
|
(1,657 |
) |
|
|
|
|
|
|
|
|
| Operating EBITDA |
$ |
58,881 |
|
|
$ |
49,450 |
|
|
$ |
97,365 |
|
|
$ |
91,371 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Trailing Twelve Months |
|
|
|
|
|
|
| |
September 30,
2017 |
|
December 31,
2017 |
|
March 31,
2018 |
|
June 30,
2018 |
|
June 30,
2018 |
|
|
|
|
|
|
| Net income |
$ |
18,947 |
|
|
$ |
49,356 |
|
|
$ |
21,272 |
|
|
$ |
31,902 |
|
|
$ |
121,477 |
|
|
|
|
|
|
|
| Income tax expense |
|
10,728 |
|
|
|
(21,204 |
) |
|
|
4,846 |
|
|
|
11,025 |
|
|
|
5,395 |
|
|
|
|
|
|
|
| Interest expense |
|
3,187 |
|
|
|
7,335 |
|
|
|
7,454 |
|
|
|
7,151 |
|
|
|
25,127 |
|
|
|
|
|
|
|
| Depreciation and amortization |
|
8,386 |
|
|
|
9,651 |
|
|
|
10,104 |
|
|
|
10,107 |
|
|
|
38,248 |
|
|
|
|
|
|
|
| Stock-based compensation |
|
2,881 |
|
|
|
2,117 |
|
|
|
2,657 |
|
|
|
2,733 |
|
|
|
10,388 |
|
|
|
|
|
|
|
| Acquisition expenses |
|
8,704 |
|
|
|
4,002 |
|
|
|
567 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
| Other non-operating income |
|
(6,271 |
) |
|
|
(194 |
) |
|
|
(7,916 |
) |
|
|
(4,037 |
) |
|
|
(18,418 |
) |
|
|
|
|
|
|
| Operating EBITDA |
$ |
46,561 |
|
|
$ |
51,062 |
|
|
$ |
38,984 |
|
|
$ |
58,881 |
|
|
$ |
195,488 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Earnings2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
| |
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Income |
$ |
31,902 |
|
|
$ |
0.54 |
|
|
$ |
22,945 |
|
|
$ |
0.36 |
|
|
$ |
53,174 |
|
|
$ |
0.89 |
|
|
$ |
43,118 |
|
|
$ |
0.68 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Facility transactions3 |
|
(3,506 |
) |
|
|
(0.06 |
) |
|
|
18 |
|
|
|
- |
|
|
|
(10,629 |
) |
|
|
(0.18 |
) |
|
|
(1,655 |
) |
|
|
(0.03 |
) |
| Loss on debt extinguishment |
|
- |
|
|
|
- |
|
|
|
125 |
|
|
|
- |
|
|
|
174 |
|
|
|
- |
|
|
|
765 |
|
|
|
0.01 |
|
| Acquisition expenses and related charges |
|
(164 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
819 |
|
|
|
0.01 |
|
|
|
- |
|
|
|
- |
|
| Executive severance expense |
|
- |
|
|
|
- |
|
|
|
238 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
238 |
|
|
|
- |
|
| Tax effect of aforementioned items |
|
954 |
|
|
|
0.02 |
|
|
|
(137 |
) |
|
|
- |
|
|
|
2,505 |
|
|
|
0.04 |
|
|
|
235 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted earnings |
$ |
29,186 |
|
|
$ |
0.49 |
|
|
$ |
23,189 |
|
|
$ |
0.37 |
|
|
$ |
46,043 |
|
|
$ |
0.77 |
|
|
$ |
42,701 |
|
|
$ |
0.67 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted Average # of Diluted Shares O/S |
|
59,274 |
|
|
|
|
|
63,207 |
|
|
|
|
|
60,023 |
|
|
|
|
|
63,303 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
|
|
|
| |
September 30, 2017 |
|
December 31, 2017 |
|
March 31, 2018 |
|
|
|
|
| |
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Income |
$ |
18,947 |
|
|
$ |
0.30 |
|
|
$ |
49,356 |
|
|
$ |
0.80 |
|
|
$ |
21,272 |
|
|
$ |
0.35 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Facility transactions3 |
|
(5,165 |
) |
|
|
(0.08 |
) |
|
|
274 |
|
|
|
- |
|
|
|
(7,123 |
) |
|
|
(0.12 |
) |
|
|
|
|
| Loss on debt extinguishment |
|
3 |
|
|
|
- |
|
|
|
32 |
|
|
|
- |
|
|
|
174 |
|
|
|
- |
|
|
|
|
|
| Acquisition expenses and related charges |
|
8,704 |
|
|
|
0.14 |
|
|
|
6,308 |
|
|
|
0.10 |
|
|
|
983 |
|
|
|
0.02 |
|
|
|
|
|
| Tax effect of aforementioned items |
|
(1,275 |
) |
|
|
(0.02 |
) |
|
|
(2,381 |
) |
|
|
(0.04 |
) |
|
|
1,551 |
|
|
|
0.03 |
|
|
|
|
|
| Tax reform and other discrete tax adjustments |
|
- |
|
|
|
- |
|
|
|
(31,339 |
) |
|
|
(0.51 |
) |
|
|
- |
|
|
|
- |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted earnings |
$ |
21,214 |
|
|
$ |
0.34 |
|
|
$ |
22,250 |
|
|
$ |
0.36 |
|
|
$ |
16,857 |
|
|
$ |
0.28 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted Average # of Diluted Shares O/S |
|
62,236 |
|
|
|
|
|
61,567 |
|
|
|
|
|
60,850 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 earnings and adjusted earnings per diluted share reflect adjustments for charges incurred in connection with acquisition expense and related costs, the losses attributable to the Company's extinguishment of debt, income or losses recognized on the sale and/or closure of former Company locations, and one-time executive severance costs. |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3Facility transactions in 2017 and 2018 relate to gains and/or losses incurred for the sale or closure of former Company locations. |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media Contact:
Dana Stelsel
Director, Corporate Communications
(765) 771-5766
dana.stelsel@wabashnational.com
Investor Relations:
Jeff Taylor
Senior Vice President, Chief Financial Officer
(765) 771-5310
jeff.taylor@wabashnational.com
Source: Wabash National Corporation