Wabash Announces Third Quarter 2022 Results

October 26, 2022
  • Record quarterly revenue of $655.2 million
  • Operating income of $52.9 million with operating margin at 8.1% , up 430 basis points year-over-year
  • Record earnings per share of $0.73 , exceeding prior quarterly outlook range
  • Robust backlog of $2.3B establishes a third quarter record; increases 20% year-over-year
  • 2022 EPS outlook increased to $2.15

LAFAYETTE, Ind., Oct. 26, 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 September 30, 2022.

Net sales for the third quarter 2022 of $655.2 million increased 35.8% versus the prior year quarter as the Company continued to execute well on strong customer demand. Consolidated gross profit was $92.0 million, or 14.0% of sales. Operating income was $52.9 million, or 8.1% of sales during the quarter. Versus the same quarter last year, gross and operating margins expanded by 340 basis points and 430 basis points, respectively. Third quarter diluted earnings per share was $0.73, which exceeded the Company's prior quarterly outlook.

Total company backlog as of September 30, 2022 was approximately $2.3 billion, which is an increase of 20 percent versus the third quarter of 2021 and also represents an all-time third quarter record.

“During the third quarter, Wabash executed very well to generate record sales of $655.2 million as well as record quarterly EPS of $0.73," explained Brent Yeagy, president and chief executive officer. “This is a meaningful step forward in our financial performance and what makes the quarter even more exciting is the progress made against our strategic plan as we added new dealers, announced a new product line brand, and added additional strategically-aligned expertise to our board of directors that will support Wabash for years into the future.”

For the full-year ending December 31, 2022, the company maintained its outlook for revenue of $2.5 billion and increased its EPS guidance to $2.15.

“Demand conditions remain strong as evidenced by our order book, which set a third quarter record at $2.3 billion and implies $1.7 billion of orders in 2023," said Yeagy. "Our process of booking orders has shifted from transactional to strategic as we engage with customers to plan for how Wabash can serve their needs from across our first to final mile portfolio for the next several years as opposed to the usual one-year out conversation and we expect to have updates on that front in the weeks and months to come.”

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 third 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 September 30,     2022       2021          
New Units Shipped                
Trailers     13,365       12,455          
Truck bodies     4,115       3,780          
                 
    Transportation Solutions   Parts & Services
Three Months Ended September 30,     2022       2021       2022       2021  
    (Unaudited, dollars in thousands)
Net sales   $ 611,779     $ 442,636     $ 46,728     $ 41,903  
Gross profit   $ 80,779     $ 44,705     $ 11,226     $ 8,268  
Gross profit margin     13.2 %     10.1 %     24.0 %     19.7 %
Income from operations   $ 63,274     $ 25,970     $ 7,732     $ 4,148  
Income from operations margin     10.3 %     5.9 %     16.5 %     9.9 %
                                 

Transportation Solutions’ net sales for the third quarter were $611.8 million, an increase of 38.2%, as compared to the prior year quarter, as operations continued to scale up. Operating income was $63.3 million or 10.3% of sales during the quarter.

Parts & Services' net sales for the third quarter were $46.7 million, an increase of 11.5% as compared to the prior year quarter as the segment continued to achieve milestones along its path of strategic growth. Operating income was $7.7 million, or 16.5% of sales during the quarter.

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, the most comparable GAAP financial measure, 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, the most comparable GAAP financial measure, 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. A reconciliation of adjusted net income attributable to common stockholders and adjusted diluted earnings per share to net income attributable to common stockholders and diluted earnings per share, the most comparable GAAP financial measures, are included in the tables following this release.

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, the most comparable GAAP financial measure, is included in the tables following this release.

Third Quarter 2022 Conference Call

Wabash will discuss its results during its quarterly investor conference call on Wednesday, October 26, 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 at 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)

  September 30,
2022
  December 31,
2021
Assets      
Current assets:      
Cash and cash equivalents $ 81,478     $ 71,778  
Accounts receivable, net   248,086       176,511  
Inventories, net   309,701       237,621  
Prepaid expenses and other   35,251       43,795  
Total current assets   674,516       529,705  
Property, plant, and equipment, net   252,383       232,425  
Goodwill   188,441       188,443  
Intangible assets, net   102,415       114,441  
Other assets   51,560       42,057  
Total assets $ 1,269,315     $ 1,107,071  
Liabilities and Stockholders’ Equity      
Current liabilities:      
Current portion of long-term debt $     $  
Current portion of finance lease obligations         59  
Accounts payable   239,049       173,950  
Other accrued liabilities   158,315       115,316  
Total current liabilities   397,364       289,325  
Long-term debt   443,662       428,315  
Deferred income taxes   33,100       36,019  
Other non-current liabilities   34,714       27,873  
Total liabilities   908,840       781,532  
Commitments and contingencies      
Noncontrolling interest   373        
Wabash National Corporation stockholders’ equity:      
Common stock 200,000,000 shares authorized, $0.01 par value, 48,065,277 and 48,954,482 shares outstanding, respectively   765       759  
Additional paid-in capital   662,581       653,978  
Retained earnings   150,943       92,111  
Accumulated other comprehensive (loss) income   (7,474 )     859  
Treasury stock at cost, 28,509,690 and 27,013,275 common shares, respectively   (446,713 )     (422,168 )
Total Wabash National Corporation stockholders' equity   360,102       325,539  
Total liabilities, noncontrolling interest, and equity $ 1,269,315     $ 1,107,071  
 
 

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

  Three Months Ended September 30,   Nine Months Ended September 30,
    2022       2021       2022       2021  
Net sales $ 655,150     $ 482,566     $ 1,844,680     $ 1,323,991  
Cost of sales   563,145       431,521       1,616,586       1,170,172  
Gross profit   92,005       51,045       228,094       153,819  
General and administrative expenses   27,845       20,966       85,121       66,740  
Selling expenses   7,752       5,590       21,337       18,320  
Amortization of intangible assets   3,184       5,631       12,026       17,228  
Impairment and other, net   349       595       692       (631 )
Income from operations   52,875       18,263       108,918       52,162  
Other income (expense):              
Interest expense   (5,210 )     (5,847 )     (15,341 )     (18,031 )
Other, net   (179 )     232       (577 )     (195 )
Other expense, net   (5,389 )     (5,615 )     (15,918 )     (18,226 )
Income before income tax expense   47,486       12,648       93,000       33,936  
Income tax expense   11,130       1,640       21,831       7,459  
Net income   36,356       11,008       71,169       26,477  
Net income attributable to noncontrolling interest   186             373        
Net income attributable to common stockholders $ 36,170     $ 11,008     $ 70,796     $ 26,477  
               
               
Net income attributable to common stockholders per share:              
Basic $ 0.75     $ 0.22     $ 1.45     $ 0.52  
Diluted $ 0.73     $ 0.22     $ 1.43     $ 0.51  
Weighted average common shares outstanding (in thousands):              
Basic   48,515       49,974       48,849       51,116  
Diluted   49,402       50,581       49,651       51,785  
               
Dividends declared per share $ 0.08     $ 0.08     $ 0.24     $ 0.24  
                               
                               

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

  Nine Months Ended September 30,
    2022       2021  
Cash flows from operating activities      
Net income $ 71,169     $ 26,477  
Adjustments to reconcile net income to net cash provided by (used in) operating activities      
Depreciation   25,239       19,593  
Amortization of intangibles   12,026       17,228  
Net gain on sale of property, plant and equipment and business divestiture   (635 )     (1,447 )
Loss on debt extinguishment         452  
Deferred income taxes   (178 )     (1,756 )
Stock-based compensation   7,367       5,889  
Impairment   1,339       817  
Non-cash interest expense   644       882  
Accounts receivable   (71,575 )     (118,176 )
Inventories   (72,080 )     (96,818 )
Prepaid expenses and other   (716 )     1,054  
Accounts payable and accrued liabilities   101,101       65,424  
Other, net   (1,545 )     6,152  
Net cash provided by (used in) operating activities   72,156       (74,229 )
Cash flows from investing activities      
Cash payments for capital expenditures   (42,304 )     (20,192 )
Proceeds from the sale of assets   1,445       21,967  
Net cash (used in) provided by investing activities   (40,859 )     1,775  
Cash flows from financing activities      
Proceeds from exercise of stock options   1,241       1,949  
Dividends paid   (12,176 )     (12,470 )
Borrowings under revolving credit facilities   72,244       347  
Payments under revolving credit facilities   (57,279 )     (347 )
Principal payments under finance lease obligations   (59 )     (259 )
Principal payments under term loan credit facility         (30,000 )
Debt issuance costs paid   (1,023 )     (50 )
Stock repurchases   (24,545 )     (55,019 )
Net cash used in financing activities   (21,597 )     (95,849 )
Cash and cash equivalents:      
Net increase (decrease) in cash, cash equivalents, and restricted cash   9,700       (168,303 )
Cash, cash equivalents, and restricted cash at beginning of period   71,778       217,677  
Cash, cash equivalents, and restricted cash at end of period $ 81,478     $ 49,374  
 
 

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

    Wabash National Corporation        
Three Months Ended September 30,     2022     2021        
Units Shipped                
New trailers     13,365     12,455        
New truck bodies     4,115     3,780        
Used trailers     20     15        
                 
Three Months Ended September 30,   Transportation S
olutions
  Parts & Services   Corporate and
Eliminations
  Consolidated
2022                
New Trailers   $ 529,659   $ 1,150   $ (301 )   $ 530,508
Used Trailers         693           693
Components, parts and service         34,171           34,171
Equipment and other     82,120     10,714     (3,056 )     89,778
Total net external sales   $ 611,779   $ 46,728   $ (3,357 )   $ 655,150
Gross profit   $ 80,779   $ 11,226   $     $ 92,005
Income (loss) from operations   $ 63,274   $ 7,732   $ (18,131 )   $ 52,875
Adjusted income (loss) from operations1   $ 63,274   $ 7,732   $ (18,131 )   $ 52,875
                 
2021                
New Trailers   $ 375,430   $   $     $ 375,430
Used Trailers         465           465
Components, parts and service         31,974           31,974
Equipment and other     67,206     9,464     (1,973 )     74,697
Total net external sales   $ 442,636   $ 41,903   $ (1,973 )   $ 482,566
Gross profit   $ 44,705   $ 8,268   $ (1,928 )   $ 51,045
Income (loss) from operations   $ 25,970   $ 4,148   $ (11,855 )   $ 18,263
Adjusted income (loss) from operations1   $ 25,970   $ 4,148   $ (11,855 )   $ 18,263
                           

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        
Nine Months Ended September 30,     2022     2021        
Units Shipped                
New trailers     38,910     33,710        
New truck bodies     11,550     13,330        
Used trailers     80     70        
                 
Nine Months Ended September 30,   Transportation
Solutions
  Parts & Services   Corporate and
Eliminations
  Consolidated
2022                
New Trailers   $ 1,476,052   $ 1,392   $ (973 )   $ 1,476,471
Used Trailers         2,382           2,382
Components, parts and service         105,208           105,208
Equipment and other     233,774     34,849     (8,004 )     260,619
Total net external sales   $ 1,709,826   $ 143,831   $ (8,977 )   $ 1,844,680
Gross profit   $ 194,516   $ 33,578   $     $ 228,094
Income (loss) from operations   $ 142,944   $ 22,659   $ (56,685 )   $ 108,918
Adjusted income (loss) from operations1   $ 142,944   $ 22,659   $ (56,685 )   $ 108,918
                 
2021                
New Trailers   $ 966,193   $   $     $ 966,193
Used Trailers     165     1,690           1,855
Components, parts and service         101,747           101,747
Equipment and other     223,815     35,586     (5,205 )     254,196
Total net external sales   $ 1,190,173   $ 139,023   $ (5,205 )   $ 1,323,991
Gross profit   $ 129,776   $ 28,912   $ (4,869 )   $ 153,819
Income (loss) from operations   $ 69,492   $ 18,509   $ (35,839 )   $ 52,162
Adjusted income (loss) from operations1   $ 69,492   $ 16,635   $ (35,839 )   $ 50,288
                           

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
September 30,
  Nine Months Ended
September 30,
    2022       2021       2022       2021  
Transportation Solutions              
Income from operations $ 63,274     $ 25,970     $ 142,944     $ 69,492  
Adjustments:              
N/A                      
Adjusted operating income   63,274       25,970     $ 142,944     $ 69,492  
               
Parts & Services              
Income from operations   7,732       4,148       22,659       18,509  
Adjustments:              
Gain on divestiture of Extract Technology                     (1,874 )
Adjusted operating income   7,732       4,148       22,659       16,635  
               
Corporate              
Loss from operations   (18,131 )     (11,855 )     (56,685 )     (35,839 )
Adjustments:              
N/A                      
Adjusted operating loss   (18,131 )     (11,855 )     (56,685 )     (35,839 )
               
Consolidated              
Income from operations   52,875       18,263     $ 108,918     $ 52,162  
Adjustments:              
Gain on divestiture of Extract Technology                     (1,874 )
Adjusted operating income $ 52,875     $ 18,263     $ 108,918     $ 50,288  
 

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 September 30,   Nine Months Ended September 30,
    2022     2021       2022     2021  
Net income $ 36,356   $ 11,008     $ 71,169   $ 26,477  
Income tax expense   11,130     1,640       21,831     7,459  
Interest expense   5,210     5,847       15,341     18,031  
Depreciation and amortization   11,941     12,343       37,265     36,821  
Stock-based compensation   2,720     1,673       7,367     5,889  
Impairment and other, net   349     595       692     (631 )
Other, net   179     (232 )     577     195  
Operating EBITDA $ 67,885   $ 32,874     $ 154,242   $ 94,241  

 

Adjusted Net Income Attributable to Common Stockholders 2 : Three Months Ended September 30,   Nine Months Ended September 30,
    2022     2021     2022     2021  
Net income attributable to common stockholders $ 36,170   $ 11,008   $ 70,796   $ 26,477  
Adjustments:              
Loss on debt extinguishment               452  
Gain on divestiture of Extract Technology               (1,874 )
Tax effect of aforementioned items               327  
Adjusted net income attributable to common stockholders $ 36,170   $ 11,008   $ 70,796   $ 25,382  

 

Adjusted Diluted Earnings Per Share 2 : Three Months Ended September 30,   Nine Months Ended September 30,
    2022     2021     2022     2021  
Diluted earnings per share $ 0.73   $ 0.22   $ 1.43   $ 0.51  
Adjustments:              
Loss on debt extinguishment               0.01  
Gain on divestiture of Extract Technology               (0.04 )
Tax effect of aforementioned items               0.01  
Adjusted diluted earnings per share $ 0.73   $ 0.22   $ 1.43   $ 0.49  
               
Weighted average diluted shares outstanding (in thousands)   49,402     50,581     49,651     51,785  
 

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 September 30,   Nine Months Ended September 30,
    2022       2021       2022       2021  
Net cash provided by (used in) operating activities $ (10,518 )   $ (61,143 )   $ 72,156     $ (74,229 )
Cash payments for capital expenditures   (19,935 )     (9,129 )     (42,304 )     (20,192 )
Free cash flow1 $ (30,453 )   $ (70,272 )   $ 29,852     $ (94,421 )

 

  Twelve Months Ended
December 31,
    2021       2020  
Net cash (used in) provided by operating activities $ (7,470 )   $ 124,134  
Cash payments for capital expenditures   (49,105 )     (20,131 )
Free cash flow1 $ (56,575 )   $ 104,003  
 

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 September 30,   2022       2021       2022       2021  
Income from operations $ 63,274     $ 25,970     $ 7,732     $ 4,148  
Depreciation and amortization   10,491       10,617       559       1,062  
Impairment and other, net   258       109       15       492  
Adjusted segment EBITDA $ 74,023     $ 36,696     $ 8,306     $ 5,702  
               
Adjusted segment EBITDA margin   12.1 %     8.3 %     17.8 %     13.6 %

 

  Transportation Solutions   Parts & Services
Nine Months Ended September 30,   2022       2021       2022       2021  
Income from operations $ 142,944     $ 69,492     $ 22,659     $ 18,509  
Depreciation and amortization   32,729       31,455       2,237       3,674  
Impairment and other, net   (360 )     935       5       (1,560 )
Adjusted segment EBITDA $ 175,313     $ 101,882     $ 24,901     $ 20,623  
               
Adjusted segment EBITDA margin   10.3 %     8.6 %     17.3 %     14.8 %
                               

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