Wabash Announces Fourth Quarter and Full Year 2022 Results

February 2, 2023
  • Quarterly revenue of $657.4 million  
  • Quarterly operating income of $57.7 million with operating margin of 8.8%
  • Quarterly earnings per diluted share of $0.84
  • Record backlog of $3.4 billion bolstered by the addition of long-term customer agreement
  • 2023 Outlook initiated with midpoints of $2.9 billion revenue and diluted earnings per share of $2.85

LAFAYETTE, Ind., Feb. 02, 2023 (GLOBE NEWSWIRE) -- Wabash (NYSE: WNC), the innovation leader of engineered solutions for the transportation, logistics and distribution industries, today reported results for the quarter and full year ended December 31, 2022.

For the fourth quarter of 2022, net sales were $657.4 million. Operating income was $57.7 million, or 8.8% of sales. Net income attributable to common stockholders was $41.5 million, or $0.84 per diluted share. Sales and EPS both reached record levels during the quarter. For the full year 2022, revenue totaled an annual record of $2.5 billion with operating income of $166.6 million, or 6.7% of sales. Full year net income attributable to common stockholders was $112.3 million, or $2.25 per diluted share. Full year 2022 achieved record levels for both sales and EPS.

Operating EBITDA, a non-GAAP measure that excludes the effects of certain items, for the fourth quarter of 2022 was $69.8 million, or 10.6% of net sales, and full year operating EBITDA was $224.0 million, or 9.0% of net sales.

Total Company backlog as of December 31, 2022 increased to approximately $3.4 billion as sequential new order activity substantially outpaced shipments, supported by a long-term agreement with J.B. Hunt that was executed during the fourth quarter. Backlog rose 46% compared to September 2022 and was 34% above December 2021. Backlog expected to be shipped within the following 12-months was $2.8 billion as of December 31, 2022.

“Although 2022 will go down as the most successful year of financial performance the Company has achieved so far, the groundwork to enable this execution has been in progress since 2019,” explained Brent Yeagy, President and Chief Executive Officer. “The changes to our strategy and the accompanying improvements to our organization that we've communicated in recent years have positioned us for this record performance, which we fully expect to expand upon in 2023.”

Outlook

For the full year ending December 31, 2023, the Company has issued guidance in the range of $2.8 to $3.0 billion in sales with a midpoint of $2.9 billion and earnings per diluted share of $2.70 to $3.00 with a midpoint of $2.85. 

Mr. Yeagy continued, “With the partnership of strategic customers like J.B. Hunt, we are jointly exercising a new level of control over our destiny. The commercial implications of this activity are clear from a total backlog of $3.4 billion, which blows away our prior backlog record by almost $1 billion and already provides significant visibility in 2024. What is less noticeable, but just as exciting, is how our Wabash team has embraced the level of change we have driven in recent years and is creating a future with more opportunity for organic growth than the Company has enjoyed at any point since its inception.”

Business Segment Highlights

The table below is a summary of select segment operating and financial results prior to the elimination of intersegment sales for the fourth quarter of 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 December 31,     2022       2021          
Units Shipped                
New trailers     13,310       11,655          
New truck bodies     3,250       3,230          
Used trailers     15       25          
                 
    Transportation Solutions   Parts & Services
Three Months Ended December 31,     2022       2021       2022       2021  
    (Unaudited, dollars in thousands)
Net sales   $ 611,088     $ 443,146     $ 49,645     $ 38,143  
Gross profit   $ 83,326     $ 36,854     $ 11,271     $ 7,958  
Gross profit margin     13.6 %     8.3 %     22.7 %     20.9 %
Income (loss) from operations   $ 66,998     $ (7,623 )   $ 7,899     $ 1,692  
Income (loss) from operations margin     11.0 %     (1.7 )%     15.9 %     4.4 %
Adjusted income from operations   $ 66,998     $ 17,996     $ 7,899     $ 4,419  
Adjusted income from operations margin     11.0 %     4.1 %     15.9 %     11.6 %

Transportation Solutions’ net sales for the fourth quarter were $611.1 million, an increase of 37.9% compared to the prior year quarter, as a result of robust customer demand and strong production. During the quarter, operating income was $67.0 million, or 11.0% of sales.

Parts & Services' net sales for the fourth quarter were $49.6 million, an increase of 30.2% compared to the prior year quarter, as a result of enhanced organizational focus and the early success of Wabash Parts, the Company's parts distribution joint venture. Operating income was $7.9 million, or 15.9% 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. Adjusted operating income margin is calculated by dividing adjusted operating income by total net sales. 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 non-cash impairment, 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.

Information reconciling any forward-looking Operating EBITDA, Operating EBITDA Margin, Adjusted Operating Income, Adjusted Operating Income Margin, Free Cash Flow, Adjusted EBITDA Margin, and Adjusted EPS to GAAP financial measures is unavailable to us without unreasonable effort. We cannot provide reconciliations of the above noted forward looking non-GAAP measures to GAAP financial measures because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flows, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to us without unreasonable effort.

Fourth Quarter 2022 Conference Call

Wabash will discuss its results during its quarterly investor conference call on Thursday, February 2, beginning at 11:00 a.m. EST. 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

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 the highly cyclical nature of our business, uncertain economic conditions including the possibility that customer demand may not meet our expectations, our backlog may not reflect future sales of our products, 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, costs of indebtedness, and our ability to execute on our long-term strategic plan. 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
CONSOLIDATED BALANCE SHEETS
(Unaudited - dollars in thousands)

  December 31,
2022
  December 31,
2021
Assets      
Current assets:      
Cash and cash equivalents $ 58,245     $ 71,778  
Accounts receivable, net   255,577       176,511  
Inventories   243,870       237,621  
Prepaid expenses and other   34,927       43,795  
Total current assets   592,619       529,705  
Property, plant, and equipment, net   271,116       232,425  
Goodwill   188,434       188,443  
Intangible assets, net   99,231       114,441  
Other assets   52,123       42,057  
Total assets $ 1,203,523     $ 1,107,071  
Liabilities and Stockholders' Equity      
Current liabilities:      
Current portion of long-term debt $     $  
Current portion of finance lease obligations         59  
Accounts payable   189,141       173,950  
Other accrued liabilities   158,327       115,316  
Total current liabilities   347,468       289,325  
Long-term debt   395,818       428,315  
Deferred income taxes   27,758       36,019  
Other non-current liabilities   34,354       27,873  
Total liabilities   805,398       781,532  
Commitments and contingencies      
Noncontrolling interest   512        
Wabash National Corporation Stockholders' equity:      
Common stock, $0.01 par value: 200,000,000 shares authorized; 47,675,796 and 48,954,482 shares outstanding, respectively   766       759  
Additional paid-in capital   665,941       653,978  
Retained earnings   188,241       92,111  
Accumulated other comprehensive (loss) income   (882 )     859  
Treasury stock, at cost: 28,972,928 and 27,013,275 common shares, respectively   (456,453 )     (422,168 )
Total Wabash National Corporation stockholders' equity   397,613       325,539  
Total liabilities, noncontrolling interest, and equity $ 1,203,523     $ 1,107,071  


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

  Three Months Ended
December 31,
  Twelve Months Ended
December 31,
    2022       2021       2022       2021  
Net sales $ 657,449     $ 479,277     $ 2,502,129     $ 1,803,268  
Cost of sales   562,852       436,629       2,179,438       1,606,801  
Gross profit   94,597       42,648       322,691       196,467  
General and administrative expenses   27,962       22,067       113,083       88,807  
Selling expenses   5,733       5,371       27,070       23,691  
Amortization of intangible assets   3,185       5,630       15,211       22,858  
Impairment and other, net   (7 )     28,200       685       27,569  
Income (loss) from operations   57,724       (18,620 )     166,642       33,542  
Other income (expense):              
Interest expense   (5,184 )     (5,097 )     (20,525 )     (23,128 )
Other, net   895       (8,929 )     318       (9,124 )
Other expense, net   (4,289 )     (14,026 )     (20,207 )     (32,252 )
Income (loss) before income tax   53,435       (32,646 )     146,435       1,290  
Income tax expense (benefit)   11,834       (7,333 )     33,665       126  
Net income (loss)   41,601       (25,313 )     112,770       1,164  
Net income attributable to noncontrolling interest   139             512        
Net income (loss) attributable to common stockholders $ 41,462     $ (25,313 )   $ 112,258     $ 1,164  
               
Net income (loss) attributable to common stockholders per share:              
Basic $ 0.86     $ (0.51 )   $ 2.31     $ 0.02  
Diluted $ 0.84     $ (0.51 )   $ 2.25     $ 0.02  
Weighted average common shares outstanding (in thousands):              
Basic   47,964       49,400       48,626       50,684  
Diluted   49,550       49,400       49,881       51,608  
               
Dividends declared per share $ 0.08     $ 0.08     $ 0.32     $ 0.32  


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

  Year Ended December 31,
    2022       2021  
Cash flows from operating activities:      
Net income $ 112,770     $ 1,164  
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Depreciation   31,758       25,984  
Amortization of intangibles   15,211       22,858  
Net gain on sale of property, plant and equipment and business divestiture   (635 )     (1,594 )
Loss on debt extinguishment         9,504  
Deferred income taxes   (7,614 )     (8,147 )
Stock-based compensation   9,746       7,059  
Non-cash interest expense   868       1,082  
Impairment   1,339       29,163  
Accounts receivable   (79,066 )     (80,879 )
Inventories   (6,249 )     (74,804 )
Prepaid expenses and other   1,069       8,570  
Accounts payable and accrued liabilities   46,085       54,862  
Other, net   (1,198 )     (2,292 )
Net cash provided by (used in) operating activities   124,084       (7,470 )
Cash flows from investing activities:      
Cash payments for capital expenditures   (57,086 )     (49,105 )
Proceeds from sale of assets and business divestiture   1,781       22,029  
Net cash used in investing activities   (55,305 )     (27,076 )
Cash flows from financing activities:      
Proceeds from exercise of stock options   2,224       2,228  
Borrowings under new senior notes         400,000  
Dividends paid   (16,020 )     (16,435 )
Borrowings under revolving credit facilities   72,549       50,823  
Payments under revolving credit facilities   (105,584 )     (17,788 )
Principal payments under finance lease obligations   (59 )     (319 )
Principal payments against old senior notes         (315,000 )
Principal payments under term loan credit facility         (138,835 )
Debt issuance costs paid   (1,137 )     (9,296 )
Stock repurchases   (34,285 )     (66,731 )
Net cash used in financing activities   (82,312 )     (111,353 )
Cash, cash equivalents, and restricted cash:      
Net decrease in cash, cash equivalents, and restricted cash   (13,533 )     (145,899 )
Cash, cash equivalents, and restricted cash at beginning of period   71,778       217,677  
Cash, cash equivalents, and restricted cash at end of period $ 58,245     $ 71,778  
Supplemental disclosures of cash flow information:      
Cash paid for interest $ 20,131     $ 22,040  
Net cash paid (refunds received) for income taxes $ 18,333     $ (467 )
Period end balance of payables for property, plant, and equipment $ 18,809     $ 3,785  


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

    Wabash National Corporation        
Three Months Ended December 31,     2022       2021        
Units Shipped                
New trailers     13,310       11,655        
New truck bodies     3,250       3,230        
Used trailers     15       25        
                 
Three Months Ended December 31,   Transportation
Solutions
  Parts &
Services
  Corporate and
Eliminations
  Consolidated
2022                
New trailers   $ 536,376     $ 330   $ (313 )   $ 536,393  
Used trailers           523           523  
Components, parts and service           34,554           34,554  
Equipment and other     74,712       14,238     (2,971 )     85,979  
Total net external sales   $ 611,088     $ 49,645   $ (3,284 )   $ 657,449  
Gross profit   $ 83,326     $ 11,271   $     $ 94,597  
Income (loss) from operations   $ 66,998     $ 7,899   $ (17,173 )   $ 57,724  
Adjusted income (loss) from operations1   $ 66,998     $ 7,899   $ (17,173 )   $ 57,724  
                 
2021                
New trailers   $ 388,182     $ 179   $ (181 )   $ 388,180  
Used trailers           659           659  
Components, parts and service           30,182           30,182  
Equipment and other     54,964       7,123     (1,831 )     60,256  
Total net external sales   $ 443,146     $ 38,143   $ (2,012 )   $ 479,277  
Gross profit   $ 36,854     $ 7,958   $ (2,164 )   $ 42,648  
(Loss) income from operations   $ (7,623 )   $ 1,692   $ (12,689 )   $ (18,620 )
Adjusted income (loss) from operations1   $ 17,996     $ 4,419   $ (12,689 )   $ 9,726  

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        
Twelve Months Ended December 31,     2022     2021        
Units Shipped                
New trailers     52,035     45,365        
New truck bodies     14,800     16,560        
Used trailers     95     95        
                 
Twelve Months Ended December 31,   Transportation
Solutions
  Parts &
Services
  Corporate and
Eliminations
  Consolidated
2022                
New trailers   $ 2,012,428   $ 1,722   $ (1,286 )   $ 2,012,864
Used trailers         2,905           2,905
Components, parts and service         139,762           139,762
Equipment and other     308,486     49,087     (10,975 )     346,598
Total net external sales   $ 2,320,914   $ 193,476   $ (12,261 )   $ 2,502,129
Gross profit   $ 277,842   $ 44,849   $     $ 322,691
Income (loss) from operations   $ 209,942   $ 30,558   $ (73,858 )   $ 166,642
Adjusted income (loss) from operations1   $ 209,942   $ 30,558   $ (73,858 )   $ 166,642
                 
2021                
New trailers   $ 1,354,375   $ 179   $ (181 )   $ 1,354,373
Used trailers     165     2,349           2,514
Components, parts and service         131,929           131,929
Equipment and other     278,779     42,709     (7,036 )     314,452
Total net external sales   $ 1,633,319   $ 177,166   $ (7,217 )   $ 1,803,268
Gross profit   $ 166,630   $ 36,870   $ (7,033 )   $ 196,467
Income (loss) from operations   $ 61,869   $ 20,201   $ (48,528 )   $ 33,542
Adjusted income (loss) from operations1   $ 87,488   $ 21,054   $ (48,528 )   $ 60,014

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)

  Three Months Ended
December 31,
  Twelve Months Ended
December 31,
    2022       2021       2022       2021  
Transportation Solutions              
Income (loss) from operations $ 66,998     $ (7,623 )   $ 209,942     $ 61,869  
Adjustments:              
Trade names & trademarks impairment         25,619             25,619  
Adjusted operating income   66,998       17,996       209,942       87,488  
Adjusted operating income margin   11.0 %     4.1 %     9.0 %     5.4 %
               
Parts & Services              
Income from operations   7,899       1,692       30,558       20,201  
Adjustments:              
Trade names & trademarks impairment         2,727             2,727  
Gain on divestiture of Extract Technology                     (1,874 )
Adjusted operating income   7,899       4,419       30,558       21,054  
Adjusted operating income margin   15.9 %     11.6 %     15.8 %     11.9 %
               
Corporate              
Loss from operations   (17,173 )     (12,689 )     (73,858 )     (48,528 )
Adjustments:              
N/A                      
Adjusted operating loss   (17,173 )     (12,689 )     (73,858 )     (48,528 )
               
Consolidated              
Income (loss) from operations   57,724       (18,620 )     166,642       33,542  
Adjustments:              
Trade names & trademarks impairment         28,346             28,346  
Gain on divestiture of Extract Technology                     (1,874 )
Adjusted operating income $ 57,724     $ 9,726     $ 166,642     $ 60,014  
Adjusted operating income margin   8.8 %     2.0 %     6.7 %     3.3 %

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. Adjusted operating income margin is calculated by dividing adjusted operating income by total net sales.


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
December 31,
  Twelve Months Ended
December 31,
    2022       2021       2022       2021  
Net income (loss) $ 41,601     $ (25,313 )   $ 112,770     $ 1,164  
Income tax expense (benefit)   11,834       (7,333 )     33,665       126  
Interest expense   5,184       5,097       20,525       23,128  
Depreciation and amortization   9,704       12,021       46,969       48,842  
Stock-based compensation   2,379       1,170       9,746       7,059  
Debt transactions3         9,052             9,504  
Impairment and other, net   (7 )     28,200       685       27,569  
Other, net   (895 )     (123 )     (318 )     (380 )
Operating EBITDA $ 69,800     $ 22,771     $ 224,042     $ 117,012  

 

Adjusted Net Income Attributable to Common Stockholders 2 : Three Months Ended December 31,   Twelve Months Ended December 31,
    2022     2021       2022     2021  
Net income (loss) attributable to common stockholders $ 41,462   $ (25,313 )   $ 112,258   $ 1,164  
Adjustments:              
Trade names & trademarks impairment       28,346           28,346  
Gain on divestiture of Extract Technology                 (1,874 )
Debt transactions3       9,052           9,504  
Tax effect of aforementioned items       (8,415 )         (8,087 )
Adjusted net income attributable to common stockholders $ 41,462   $ 3,670     $ 112,258   $ 29,053  

 

Adjusted Diluted Earnings Per Share 2 : Three Months Ended December 31,   Twelve Months Ended December 31,
    2022     2021       2022     2021  
Diluted earnings per share $ 0.84   $ (0.51 )   $ 2.25   $ 0.02  
Adjustments:              
Trade names & trademarks impairment       0.57           0.56  
Gain on divestiture of Extract Technology                 (0.04 )
Debt transactions3       0.18           0.18  
Tax effect of aforementioned items       (0.17 )         (0.16 )
Adjusted diluted earnings per share $ 0.84   $ 0.07     $ 2.25   $ 0.56  
               
Weighted average diluted shares outstanding (in thousands)   49,550     50,436       49,881     51,608  

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 non-cash impairment, debt transactions, and the impact of sales and divestitures, and the related tax effects of these adjustments.

3 Debt transactions include losses on debt extinguishment.

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

  Twelve Months Ended
December 31,
    2022       2021  
Net cash provided by (used in) operating activities $ 124,084     $ (7,470 )
Cash payments for capital expenditures   (57,086 )     (49,105 )
Free cash flow1 $ 66,998     $ (56,575 )

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 December 31   2022       2021       2022       2021  
Income (loss) from operations $ 66,998     $ (7,623 )   $ 7,899     $ 1,692  
Depreciation and amortization   8,458       10,364       480       1,107  
Impairment and other, net   (1 )     25,619       (5 )     2,585  
Adjusted segment EBITDA $ 75,455     $ 28,360     $ 8,374     $ 5,384  
               
Adjusted segment EBITDA margin   12.3 %     6.4 %     16.9 %     14.1 %

 

  Transportation Solutions   Parts & Services
Twelve Months Ended December 31   2022       2021       2022       2021  
Income from operations $ 209,942     $ 61,869     $ 30,558     $ 20,201  
Depreciation and amortization   41,187       41,819       2,717       4,781  
Impairment and other, net   (361 )     26,554             1,025  
Adjusted segment EBITDA $ 250,768     $ 130,242     $ 33,275     $ 26,007  
               
Adjusted segment EBITDA Margin   10.8 %     8.0 %     17.2 %     14.7 %

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, Corporate Communications
(765) 771-5766
[email protected]

Investor Relations:
Ryan Reed
Sr Director, Corporate Development & Investor Relations
(765) 490-5664
[email protected]


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Source: Wabash