Wabash Announces Second Quarter 2022 Results

July 27, 2022
  • Record quarterly revenue of $642.8 million on increasing new trailer shipments
  • Operating income of $35.9 million as operating margin continued improving to 5.6%
  • Diluted earnings per share of $0.46, within prior outlook range
  • Robust backlog of $2.3B sets second quarter record; increases 71% YoY
  • 2022 outlook for revenue and EPS maintained at $2.5B and $1.90, respectively

LAFAYETTE, Ind., July 27, 2022 (GLOBE NEWSWIRE) -- Wabash (NYSE: WNC), the innovation leader of connected solutions for the transportation, logistics and distribution industries, today reported results for the quarter ended June 30, 2022.

Net sales for the second quarter 2022 of $642.8 million increased 43.0% versus the prior year quarter as the Company continued to ramp production in light of strong customer demand. Consolidated gross profit was $78.0 million, or 12.1% of sales. Operating income was $35.9 million, or 5.6% of sales during the quarter. Diluted earnings per share was $0.46, within the range of the Company's prior quarterly outlook.

Total company backlog as of June 30, 2022 was approximately $2.3 billion, an increase of $1 billion compared to the same quarter last year. Wabash's backlog represents a second quarter record and exceeds the prior Q2 high by approximately 71%.

“During the second quarter, Wabash generated an all-time quarterly sales record of $643 million as demand for our portfolio of connected solutions remained robust," explained Brent Yeagy, president and chief executive officer. “Yet another quarter of sequential improvement in operating margins has brought our EBITDA generation back to levels not seen since mid-2019. Strengthening financial performance continues to give us confidence in achieving our full year EPS outlook of $1.90.”

For the full-year ending December 31, 2022, the company maintained its outlook for revenue of $2.5 billion and EPS of $1.90.

“Because of the heavily seasonal nature of trailer ordering, industry backlogs typically decline around 15 percent during the second quarter as shipments eat into the order book. Demand remains very strong as evidenced by our backlog remaining at $2.3 billion from the first quarter to the second quarter, particularly in light of record shipments during Q2," said Yeagy. "Beyond our productive conversations regarding 2023 build slots, I am particularly pleased by customers' willingness to think beyond next year's order cycle to engage in planning a shared vision for the longer term.”

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 2022 and 2021. A complete disclosure of the results by individual segment is included in the tables following this release.

    Wabash National Corporation        
Three Months Ended June 30,   2022   2021        
New Units Shipped                
Trailers     13,670       11,595          
Truck bodies     3,970       4,800          
                 
    Transportation Solutions   Parts & Services
Three Months Ended June 30,   2022   2021   2022   2021
    (Unaudited, dollars in thousands)
Net sales   $ 595,982     $ 402,177     $ 50,395     $ 48,752  
Gross profit   $ 66,055     $ 46,660     $ 11,830     $ 10,262  
Gross profit margin     11.1 %       11.6%       23.5 %       21.0%  
Income from operations   $ 47,973     $ 26,815     $ 8,138     $ 8,061  
Income from operations margin     8.0 %       6.7%       16.1 %       16.5%  
Adjusted income from operations   $ 47,973     $ 26,815     $ 8,138     $ 6,187  
Adjusted income from operations margin     8.0 %       6.7%       16.1 %       12.7%  

Transportation Solutions’ net sales for the second quarter were $596.0 million, an increase of 48.2%, as compared to the prior year quarter, as operations continued to scale up. Operating income was $48.0 million or 8.0% of sales during the quarter.

Parts & Services' net sales for the second quarter were $50.4 million, an increase of 3.4% as compared to the prior year quarter. Operating income was $8.1 million, or 16.1% of sales during the quarter. Parts & Services' second quarter 2021 financial results include Extract Technology, which was divested June 30, 2021.

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, free cash flow, adjusted operating income and margin, adjusted net income attributable to common stockholders, adjusted diluted earnings per share, adjusted segment EBITDA, and adjusted segment EBITDA margin. 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 includes noncontrolling interest and is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, impairment and other, net, and other non-operating income and expense (including any loss on debt extinguishment charges). 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.

Free cash flow is defined as net cash provided by (used in) operating activities minus cash payments for capital expenditures. Management believes providing free cash flow is useful for investors to understand the Company’s performance and results of cash generation period to period with the exclusion of the item identified above. Management believes the presentation of free cash flow, when combined with the GAAP presentations of cash provided by operating activities, is beneficial to an investor’s understanding of the Company’s operating performance. A reconciliation of free cash flow to cash used in operating activities is included in the tables following this release.

Adjusted operating income and margin, non-GAAP financial measures, exclude certain costs, expenses, other charges, gains or income that are included in the determination of operating income under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities. Accordingly, the Company presents adjusted operating income and margin excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating income and margin to provide investors with a better understanding of the Company’s view of our results as compared to prior periods. A reconciliation of adjusted operating income to operating income, the most comparable GAAP financial measure, is included in the tables following this release.

Adjusted net income attributable to common stockholders and adjusted diluted earnings per share reflect adjustments for debt transactions and the impact of sales and divestitures, and the related tax effects of these adjustments. 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.

Adjusted segment EBITDA, a non-GAAP financial measure, includes noncontrolling interest and is calculated by adding back segment depreciation and amortization expense to segment operating income, and excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income under GAAP, but that management would not consider important in evaluating the quality of the Company’s segment operating results as they are not indicative of each segment's core operating results or may obscure trends useful in evaluating the segment's continuing activities. Adjusted segment EBITDA Margin is calculated by dividing Adjusted segment EBITDA by segment total net sales. A reconciliation of adjusted segment EBITDA to income from operations is included in the tables following this release.

Second Quarter 2022 Conference Call

Wabash will discuss its results during its quarterly investor conference call on Wednesday, July 27, 2022, beginning at 11:00 a.m. EDT. The call and an accompanying slide presentation will be accessible on the "Investors" section of the Company’s website www.onewabash.com. The conference call will also be accessible by dialing (888) 440-6928, conference ID 6579482. A replay of the call will be available on the site shortly after the conclusion of the presentation.

About

Wabash (NYSE: WNC) is the visionary leader of connected solutions for the transportation, logistics and distribution industries that is Changing How the World Reaches You®. Headquartered in Lafayette, Indiana, the company enables customers to thrive by providing insight into tomorrow and delivering pragmatic solutions today to move everything from first to final mile. Wabash designs, manufactures, and services a diverse range of products, including: dry freight and refrigerated trailers, flatbed trailers, tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade processing equipment. Learn more at www.onewabash.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 a continued or prolonged shutdown or reduction of our operations, substantially reduced customer orders or sales volumes and supply disruptions due to the coronavirus (COVID-19) outbreak, the continued integration of Supreme into the Company’s business, adverse reactions to the transaction by customers, suppliers or strategic partners, uncertain economic conditions including the possibility that customer demand may not meet our expectations, increased competition, reliance on certain customers and corporate partnerships, risks of customer pick-up delays, shortages and costs of raw materials including the impact of tariffs or other international trade developments, risks in implementing and sustaining improvements in the Company’s manufacturing operations and cost containment, dependence on industry trends and timing, supplier constraints, labor costs and availability, customer acceptance of and reactions to pricing changes and costs of indebtedness. Readers should review and consider the various disclosures made by the Company in this press release and in the Company’s reports to its stockholders and periodic reports on Forms 10-K and 10-Q.

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - dollars in thousands)

  June 30,
2022
  December 31,
2021
Assets      
Current assets:      
Cash and cash equivalents $ 138,484     $ 71,778  
Accounts receivable, net   231,625       176,511  
Inventories, net   305,338       237,621  
Prepaid expenses and other   31,980       43,795  
Total current assets   707,427       529,705  
Property, plant, and equipment, net   242,636       232,425  
Goodwill   188,440       188,443  
Intangible assets, net   105,599       114,441  
Other assets   46,203       42,057  
Total assets $ 1,290,305     $ 1,107,071  
Liabilities and Stockholders’ Equity      
Current liabilities:      
Current portion of long-term debt $     $  
Current portion of finance lease obligations         59  
Accounts payable   304,761       173,950  
Other accrued liabilities   127,927       115,316  
Total current liabilities   432,688       289,325  
Long-term debt   454,506       428,315  
Deferred income taxes   33,864       36,019  
Other non-current liabilities   30,889       27,873  
Total liabilities   951,947       781,532  
Commitments and contingencies      
Noncontrolling interest   187        
Wabash National Corporation stockholders’ equity:      
Common stock 200,000,000 shares authorized, $0.01 par value, 48,701,087 and 48,954,482 shares outstanding, respectively   764       759  
Additional paid-in capital   659,355       653,978  
Retained earnings   118,771       92,111  
Accumulated other comprehensive (loss) income   (5,226 )     859  
Treasury stock at cost, 27,816,488 and 27,013,275 common shares, respectively   (435,493 )     (422,168 )
Total Wabash National Corporation stockholders' equity   338,171       325,539  
Total liabilities, noncontrolling interest, and equity $ 1,290,305     $ 1,107,071  

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - dollars in thousands, except per share amounts)

  Three Months Ended June 30,   Six Months Ended June 30,
  2022   2021   2022   2021
Net sales $ 642,769     $ 449,422     $ 1,189,530     $ 841,425  
Cost of sales   564,735       393,814       1,053,441       738,651  
Gross profit   78,034       55,608       136,089       102,774  
General and administrative expenses   30,944       22,907       57,276       45,774  
Selling expenses   7,376       6,065       13,585       12,730  
Amortization of intangible assets   3,803       5,799       8,842       11,597  
Impairment and other, net   3       (1,847 )     343       (1,226 )
Income from operations   35,908       22,684       56,043       33,899  
Other income (expense):              
Interest expense   (5,218 )     (6,034 )     (10,131 )     (12,184 )
Other, net   (327 )     (413 )     (398 )     (427 )
Other expense, net   (5,545 )     (6,447 )     (10,529 )     (12,611 )
Income before income tax expense   30,363       16,237       45,514       21,288  
Income tax expense   7,624       3,985       10,701       5,819  
Net income   22,739       12,252       34,813       15,469  
Net income attributable to noncontrolling interest   187             187        
Net income attributable to common stockholders $ 22,552     $ 12,252     $ 34,626     $ 15,469  
               
               
Net income attributable to common stockholders per share:              
Basic $ 0.46     $ 0.24     $ 0.71     $ 0.30  
Diluted $ 0.46     $ 0.24     $ 0.70     $ 0.29  
Weighted average common shares outstanding (in thousands):              
Basic   49,034       51,272       49,019       51,697  
Diluted   49,535       51,989       49,662       52,472  
               
Dividends declared per share $ 0.08     $ 0.08     $ 0.16     $ 0.16  

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - dollars in thousands)

  Six Months Ended June 30,
  2022   2021
Cash flows from operating activities      
Net income $ 34,813     $ 15,469  
Adjustments to reconcile net income to net cash provided by (used in) operating activities      
Depreciation   16,482       12,881  
Amortization of intangibles   8,842       11,597  
Net gain on sale of property, plant and equipment and business divestiture   (642 )     (2,043 )
Loss on debt extinguishment         452  
Deferred income taxes   (139 )     (1,799 )
Stock-based compensation   4,647       4,216  
Impairment   986       817  
Non-cash interest expense   426       591  
Accounts receivable   (55,114 )     (25,758 )
Inventories   (67,717 )     (89,733 )
Prepaid expenses and other   814       2,500  
Accounts payable and accrued liabilities   142,869       56,074  
Other, net   (3,593 )     1,650  
Net cash provided by (used in) operating activities $ 82,674     $ (13,086 )
Cash flows from investing activities      
Cash payments for capital expenditures   (22,369 )     (11,063 )
Proceeds from the sale of assets   1,445       20,978  
Net cash (used in) provided by investing activities $ (20,924 )   $ 9,915  
Cash flows from financing activities      
Proceeds from exercise of stock options   735       1,450  
Dividends paid   (8,278 )     (8,437 )
Borrowings under revolving credit facilities   56,739       232  
Payments under revolving credit facilities   (30,773 )     (232 )
Principal payments under finance lease obligations   (59 )     (172 )
Principal payments under term loan credit facility         (30,000 )
Debt issuance costs paid   (83 )      
Stock repurchases   (13,325 )     (41,302 )
Net cash provided by (used in) financing activities $ 4,956     $ (78,461 )
Cash and cash equivalents:      
Net increase (decrease) in cash, cash equivalents, and restricted cash $ 66,706     $ (81,632 )
Cash, cash equivalents, and restricted cash at beginning of period   71,778       217,677  
Cash, cash equivalents, and restricted cash at end of period $ 138,484     $ 136,045  

WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Unaudited - dollars in thousands)

    Wabash National Corporation        
Three Months Ended June 30,   2022   2021        
Units Shipped                
New trailers     13,670     11,595        
New truck bodies     3,970     4,800        
Used trailers     40     15        
                 
Three Months Ended June 30,   Transportation
Solutions
  Parts &
Services
  Corporate and
Eliminations
  Consolidated
2022                
New Trailers   $ 508,430   $ 188   $ (361 )   $ 508,257
Used Trailers         1,120           1,120
Components, parts and service         37,473           37,473
Equipment and other     87,552     11,614     (3,247 )     95,919
Total net external sales   $ 595,982   $ 50,395   $ (3,608 )   $ 642,769
Gross profit   $ 66,055   $ 11,830   $ 149     $ 78,034
Income (loss) from operations   $ 47,973   $ 8,138   $ (20,203 )   $ 35,908
Adjusted income (loss) from operations1   $ 47,973   $ 8,138   $ (20,203 )   $ 35,908
                 
2021                
New Trailers   $ 321,833   $   $     $ 321,833
Used Trailers         378           378
Components, parts and service         34,260           34,260
Equipment and other     80,344     14,114     (1,507 )     92,951
Total net external sales   $ 402,177   $ 48,752   $ (1,507 )   $ 449,422
Gross profit   $ 46,660   $ 10,262   $ (1,314 )   $ 55,608
Income (loss) from operations   $ 26,815   $ 8,061   $ (12,192 )   $ 22,684
Adjusted income (loss) from operations1   $ 26,815   $ 6,187   $ (12,192 )   $ 20,810

1 Adjusted operating income (loss), a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities. Accordingly, the Company presents adjusted operating income (loss) excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating income (loss) to provide investors with a better understanding of the Company’s view of our results as compared to prior periods.

WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Unaudited - dollars in thousands)

    Wabash National Corporation        
Six Months Ended June 30,   2022   2021        
Units Shipped                
New trailers     25,545     21,255        
New truck bodies     7,510     9,570        
Used trailers     60     55        
                 
Six Months Ended June 30,   Transportation
Solutions
  Parts &
Services
  Corporate and
Eliminations
  Consolidated
2022                
New Trailers   $ 946,393   $ 242   $ (672 )   $ 945,963
Used Trailers         1,689           1,689
Components, parts and service         71,037           71,037
Equipment and other     151,654     24,135     (4,948 )     170,841
Total net external sales   $ 1,098,047   $ 97,103   $ (5,620 )   $ 1,189,530
Gross profit   $ 113,737   $ 22,352   $     $ 136,089
Income (loss) from operations   $ 79,670   $ 14,927   $ (38,554 )   $ 56,043
Adjusted income (loss) from operations1   $ 79,670   $ 14,927   $ (38,554 )   $ 56,043
                 
2021                
New Trailers   $ 590,763   $   $     $ 590,763
Used Trailers     165     1,225           1,390
Components, parts and service         26,362           26,362
Equipment and other     156,368     69,760     (3,218 )     222,910
Total net external sales   $ 747,296   $ 97,347   $ (3,218 )   $ 841,425
Gross profit   $ 84,988   $ 20,728   $ (2,942 )   $ 102,774
Income (loss) from operations   $ 43,438   $ 14,445   $ (23,984 )   $ 33,899
Adjusted income (loss) from operations1   $ 43,438   $ 12,571   $ (23,984 )   $ 32,025

1 Adjusted operating income (loss), a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities. Accordingly, the Company presents adjusted operating income (loss) excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating income (loss) to provide investors with a better understanding of the Company’s view of our results as compared to prior periods.

WABASH NATIONAL CORPORATION
SEGMENT AND COMPANY FINANCIAL INFORMATION
(Unaudited - dollars in thousands)

Adjusted Operating Income 1 Three Months Ended
June 30,
  Six Months Ended
June 30,
  2022   2021   2022   2021
Transportation Solutions              
Income from operations $ 47,973     $ 26,815     $ 79,670     $ 43,438  
Adjustments:              
N/A                      
Adjusted operating income   47,973       26,815     $ 79,670     $ 43,438  
               
Parts & Services              
Income from operations   8,138       8,061       14,927       14,445  
Adjustments:              
Gain on divestiture of Extract Technology         (1,874 )           (1,874 )
Adjusted operating income   8,138       6,187       14,927       12,571  
               
Corporate              
Loss from operations   (20,203 )     (12,192 )     (38,554 )     (23,984 )
Adjustments:              
N/A                      
Adjusted operating loss   (20,203 )     (12,192 )     (38,554 )     (23,984 )
               
Consolidated              
Income from operations   35,908       22,684     $ 56,043     $ 33,899  
Adjustments:              
Gain on divestiture of Extract Technology         (1,874 )           (1,874 )
Adjusted operating income $ 35,908     $ 20,810     $ 56,043     $ 32,025  

1 Adjusted operating income (loss), a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities. Accordingly, the Company presents adjusted operating income (loss) excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating income (loss) to provide investors with a better understanding of the Company’s view of our results as compared to prior periods.

WABASH NATIONAL CORPORATION
RECONCILIATION OF GAAP FINANCIAL MEASURES TO
NON-GAAP FINANCIAL MEASURES
(Unaudited - dollars in thousands, except per share amounts)

Operating EBITDA 1 : Three Months Ended June 30,   Six Months Ended June 30,
  2022   2021   2022   2021
Net income $ 22,739   $ 12,252     $ 34,813   $ 15,469  
Income tax expense   7,624     3,985       10,701     5,819  
Interest expense   5,218     6,034       10,131     12,184  
Depreciation and amortization   12,060     12,248       25,324     24,478  
Stock-based compensation   2,370     2,184       4,647     4,216  
Impairment and other, net   3     (1,847 )     343     (1,226 )
Other, net   327     413       398     427  
Operating EBITDA $ 50,341   $ 35,269     $ 86,357   $ 61,367  

 

Adjusted Net Income Attributable to Common Stockholders 2 : Three Months Ended June 30,   Six Months Ended June 30,
  2022   2021   2022   2021
Net income attributable to common stockholders $ 22,552   $ 12,252     $ 34,626   $ 15,469  
Adjustments:              
Loss on debt extinguishment       452           452  
Gain on divestiture of Extract Technology       (1,874 )         (1,874 )
Tax effect of aforementioned items       327           327  
Adjusted net income attributable to common stockholders $ 22,552   $ 11,157     $ 34,626   $ 14,374  

 

Adjusted Diluted Earnings Per Share 2 : Three Months Ended June 30,   Six Months Ended June 30,
  2022   2021   2022   2021
Diluted earnings per share $ 0.46   $ 0.24     $ 0.70   $ 0.29  
Adjustments:              
Loss on debt extinguishment       0.01           0.01  
Gain on divestiture of Extract Technology       (0.04 )         (0.04 )
Tax effect of aforementioned items                 0.01  
Adjusted diluted earnings per share $ 0.46   $ 0.21     $ 0.70   $ 0.27  
               
Weighted average diluted shares outstanding (in thousands)   49,535     51,989       49,662     52,472  

1 Operating EBITDA includes noncontrolling interest and is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, impairment and other, net, and other non-operating income and expense (including any loss on debt extinguishment charges). 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.

2 Adjusted net income attributable to common stockholders and adjusted diluted earnings per share reflect adjustments for debt transactions and the impact of sales and divestitures, and the related tax effects of these adjustments.

WABASH NATIONAL CORPORATION
RECONCILIATION OF FREE CASH FLOW 1
(Unaudited - dollars in thousands)

  Three Months Ended June 30,   Six Months Ended June 30,
  2022   2021   2022   2021
Net cash provided by (used in) operating activities $ 117,241     $ 9,318     $ 82,674     $ (13,086 )
Cash payments for capital expenditures   (12,420 )     (6,898 )     (22,369 )     (11,063 )
Free cash flow1 $ 104,821     $ 2,420     $ 60,305     $ (24,149 )

1 Free cash flow is defined as net cash provided by (used in) operating activities minus cash payments for capital expenditures. Management believes providing free cash flow is useful for investors to understand the Company’s performance and results of cash generation period to period with the exclusion of the item identified above. Management believes the presentation of free cash flow, when combined with the GAAP presentations of cash used in operating activities, is beneficial to an investor’s understanding of the Company’s operating performance.

WABASH NATIONAL CORPORATION
RECONCILIATION OF ADJUSTED SEGMENT EBITDA 1
AND ADJUSTED SEGMENT EBITDA MARGIN 1
(Unaudited - dollars in thousands)

  Transportation Solutions   Parts & Services
Three Months Ended June 30, 2022   2021   2022   2021
Income from operations $ 47,973     $ 26,815     $ 8,138     $ 8,061  
Depreciation and amortization   10,705       10,452       643       1,298  
Impairment and other, net   2       7             (1,855 )
Adjusted segment EBITDA $ 58,680     $ 37,274     $ 8,781     $ 7,504  
               
Adjusted segment EBITDA margin   9.8 %     9.3 %     17.4 %     15.4 %

 

  Transportation Solutions   Parts & Services
Six Months Ended June 30, 2022   2021   2022   2021
Income from operations $ 79,670     $ 43,438     $ 14,927     $ 14,445  
Depreciation and amortization   22,238       20,837       1,678       2,613  
Impairment and other, net   (619 )     826       (10 )     (2,052 )
Adjusted segment EBITDA $ 101,289     $ 65,101     $ 16,595     $ 15,006  
               
Adjusted segment EBITDA margin   9.2 %     8.7 %     17.1 %     15.4 %

1 Adjusted segment EBITDA, a non-GAAP financial measure, includes noncontrolling interest and is calculated by adding back segment depreciation and amortization expense to segment operating income, and excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income under GAAP, but that management would not consider important in evaluating the quality of the Company’s segment operating results as they are not indicative of each segment's core operating results or may obscure trends useful in evaluating the segment's continuing activities. Adjusted segment EBITDA margin is calculated by dividing Adjusted segment EBITDA by segment total net sales.


Media Contact:
Dana Stelsel
Director, Communications
(765) 771-5766
dana.stelsel@onewabash.com

Investor Relations:
Ryan Reed
Sr Director, Corporate Development & Investor Relations
(765) 490-5664
ryan.reed@onewabash.com


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Source: Wabash