Wabash National Corporation (NYSE:WNC), a diversified industrial
manufacturer and North America’s leading producer of semi-trailers
and liquid transportation systems, today reported results for the
quarter ending September 30, 2017.
Net income for the third quarter of 2017 was
$18.9 million, or $0.30 per diluted share, compared to third
quarter 2016 net income of $33.4 million, or $0.51 per diluted
share. Third quarter 2017 non-GAAP adjusted earnings
decreased $11.7 million over the prior year period to $21.2
million, or $0.34 per diluted share. Non-GAAP adjusted
earnings for the third quarter of 2017 excludes one-time
acquisition expenses of $8.7 million related to the purchase of
Supreme Industries, Inc. (“Supreme”) on September 27, 2017 and
gains realized on the transition of former branch facilities to
third-party dealers. Non-GAAP adjusted earnings for the third
quarter of 2016 also excluded gains related to the transition of
branch locations.
Net sales for the third quarter of 2017 were
$425 million, a decrease of 8 percent as compared to the third
quarter of 2016. Operating income decreased 52 percent to
$26.6 million, due to lower trailer volume, compared to operating
income of $54.9 million for the third quarter of 2016.
Operating EBITDA, a non-GAAP measure that excludes the effects of
certain recurring and non-recurring items, for the third quarter of
2017 was $46.6 million, a decrease of $20.3 million, or 30 percent,
compared to Operating EBITDA for the prior year period. On a
trailing twelve month basis, net sales totaled $1.7 billion,
generating Operating EBITDA of $191.5 million, or 11.4 percent of
net sales.
The following is a summary of select operating
and financial results for the past five quarters:
|
|
Three Months Ended |
(Dollars in thousands, except per share amounts) |
|
September 30, |
|
December 31, |
|
March 31, |
|
June 30, |
|
September 30, |
|
|
2016 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ |
464,272 |
|
|
$ |
462,057 |
|
|
$ |
362,716 |
|
|
$ |
435,903 |
|
|
$ |
425,098 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
Margin |
|
|
18.0 |
% |
|
|
15.5 |
% |
|
|
16.4 |
% |
|
|
15.5 |
% |
|
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Income from
Operations |
|
$ |
54,855 |
|
|
$ |
40,621 |
|
|
$ |
30,264 |
|
|
$ |
38,668 |
|
|
$ |
26,591 |
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations
Margin |
|
|
11.8 |
% |
|
|
8.8 |
% |
|
|
8.3 |
% |
|
|
8.9 |
% |
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
33,378 |
|
|
$ |
23,000 |
|
|
$ |
20,173 |
|
|
$ |
22,945 |
|
|
$ |
18,947 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS |
|
$ |
0.51 |
|
|
$ |
0.36 |
|
|
$ |
0.32 |
|
|
$ |
0.36 |
|
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Measures(1): |
|
|
|
|
|
|
|
|
|
|
Operating EBITDA |
|
$ |
66,821 |
|
|
$ |
53,606 |
|
|
$ |
41,930 |
|
|
$ |
49,450 |
|
|
$ |
46,561 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating EBITDA
Margin |
|
|
14.4 |
% |
|
|
11.6 |
% |
|
|
11.6 |
% |
|
|
11.3 |
% |
|
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings |
|
$ |
32,901 |
|
|
$ |
24,213 |
|
|
$ |
19,517 |
|
|
$ |
23,189 |
|
|
$ |
21,214 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
|
$ |
0.50 |
|
|
$ |
0.38 |
|
|
$ |
0.31 |
|
|
$ |
0.37 |
|
|
$ |
0.34 |
|
Notes: (1) See “Non-GAAP
Measures” below for explanation of the non-GAAP results included
above.
Dick Giromini, chief executive officer, stated,
“Following prior year record performance is never easy, especially
when operating in a somewhat more challenging environment.
Throw in an acquisition, and the headlines get even more
muddied. That said, we are nonetheless pleased to have
delivered a historically solid performance in the third quarter,
but not up to the lofty standards that we have become accustomed to
in the past couple years. Looking forward, we are encouraged
by recent market demand trends, and excited about what next year
will bring as we integrate and leverage our newest addition,
Supreme Industries, into our family.”
“A number of factors in the third quarter,
including shipment pick-up delays impacted by the recent
hurricanes, ongoing investment in our molded structural composites
start-up, and a tighter labor market, and costs associated with our
acquisition of Supreme, all combined to create a veil over all of
the good things that are going on in the business that set us up
for a strong 2018. With backlog totaling $670 million,
excluding Supreme, as of September 30, 2017, we believe we are in a
solid position as the 2018 order season enters its strongest
period.”
Mr. Giromini continued, “In the near term, while
many of the aforementioned short-term operational issues are behind
us, others will linger throughout the balance of the year.
Based on the mix of these factors, we are updating our full-year
guidance for trailer shipments to 53,500 to 55,500 new trailers,
and adjusting our earnings guidance range to $1.33 to $1.37 per
diluted share.”
2018 Outlook“Looking forward to
next year, a strengthening economy driving increased trucking
demand, strong year-over-year backlog, increasing market interest
in our proprietary molded structural composite technology, the
addition of Supreme, and the upcoming payback from increased
investment in productivity-enhancing technologies in our van
operations, all have me excited about what we will deliver in 2018
and beyond. Overall demand for van trailers within our
Commercial Trailer Products segment is projected to remain
historically strong for next year, combined with a much-improved
demand environment for tank trailers and flatbed equipment.
This belief is further supported by several factors, including a
growing replacement cycle for 2004-2006 dry vans, a more stringent
regulatory environment influencing both carrier and driver
behaviors and the continued need to refresh equipment,” Mr.
Giromini explained. “In addition, we expect top- and
bottom-line improvements in our Diversified Products segment due to
the improving market conditions served by this segment as well as
realization of various productivity improvement initiatives in both
Commercial Trailer Products and Diversified Products
segments. Couple these growth and performance opportunities
with the addition of Supreme and our Final Mile Products segment,
we currently project full-year 2018 earnings expectation of $1.55
to $1.75 per share.”
Business Segment HighlightsThe
table below is a summary of select segment operating and financial
results prior to the elimination of intersegment sales for the
third quarter of 2017 and 2016. A complete disclosure of the
results by individual segment is included in the tables following
this release.
(dollars in thousands) |
|
Commercial Trailer Products |
|
|
Diversified Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
2017 |
|
|
|
2016 |
|
New
trailers shipped |
|
|
13,350 |
|
|
|
14,900 |
|
|
|
|
550 |
|
|
|
550 |
|
Net
sales |
|
$ |
339,492 |
|
|
$ |
380,514 |
|
|
|
$ |
88,850 |
|
|
$ |
87,450 |
|
Gross
profit |
|
$ |
43,849 |
|
|
$ |
64,681 |
|
|
|
$ |
17,378 |
|
|
$ |
18,947 |
|
Gross
profit margin |
|
|
12.9 |
% |
|
|
17.0 |
% |
|
|
|
19.6 |
% |
|
|
21.7 |
% |
Income from
operations |
|
$ |
36,319 |
|
|
$ |
55,043 |
|
|
|
$ |
5,179 |
|
|
$ |
6,224 |
|
Income from
operations margin |
|
10.7 |
% |
|
|
14.5 |
% |
|
|
|
5.8 |
% |
|
|
7.1 |
% |
Commercial Trailer Products’ net sales for the
third quarter were $339 million, a decrease of $41 million, or 11
percent, as compared to the prior year. Gross profit margin
for the third quarter decreased 410 basis points as compared to the
prior year period. The year-over-year declines in net sales
and gross profit margin were primarily due to lower new trailer
shipments, increases in commodity costs and labor shortages
resulting in higher levels of overtime to meet current production
levels. Operating income decreased $18.7 million, or 34
percent, from the third quarter of last year to $36.3 million, or
10.7 percent of net sales.
Diversified Products’ net sales for the third
quarter increased $1 million, or 2 percent, as compared to the
prior year period primarily due to increased demand for liquid tank
trailers and process systems businesses. Gross profit and
gross profit margin as compared to the prior year period decreased
$1.6 million and 210 basis points, respectively, as continued
softness within the chemical and energy end markets for tank
trailers and increases in commodity costs negatively impacted this
segment. Operating income for the third quarter of 2017 was
$5.2 million, or 5.8 percent of net sales, a decrease of $1.0
million compared to the same period last year.
Acquisition of Supreme
On September 27, 2017, the Company completed the
previously announced acquisition of Supreme, a leading manufacturer
of truck bodies, following a cash tender offer by a subsidiary of
the Company for all outstanding shares of Supreme, for $21 per
share. Commenting on the transaction, Mr. Giromini said, “We
are excited to add the Supreme business to our Company in order to
leverage the urbanization and ecommerce trends which are fueling a
consumer preference for home delivery. Wabash intends to be
at the forefront of the final mile evolution in the transportation
market, and the addition of Supreme to our portfolio advances that
strategy.” The truck body and final mile industry continues
to demonstrate a healthy demand environment as the backlog of
Supreme at quarter end was $70 million, representing a 32 percent
increase as compared to the prior year period.
The Company financed the acquisition of Supreme
and related fees and expenses using the proceeds of the Company’s
offering of a $325 million aggregate principal amount senior
unsecured notes due 2025 (“Senior Notes”) and available cash and
cash equivalents. The Senior Notes will bear interest at a rate of
5.50% and were issued at par. As of September 30, 2017, the
Company had liquidity, or cash plus available borrowings, of
approximately $323 million.
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
adjusted operating income, operating EBITDA, operating EBITDA
margin, adjusted earnings and adjusted earnings per diluted
share.
These non-GAAP measures should not be considered
a substitute for, or superior to, financial measures and results
calculated in accordance with GAAP, including net income, and
reconciliations to GAAP financial statements should be carefully
evaluated.
Operating EBITDA is defined as earnings before
interest, taxes, depreciation, amortization, stock-based
compensation, acquisition expenses, impairment of goodwill and
other intangible assets and other non-operating income and
expense. Management believes providing operating EBITDA is
useful for investors to understand the Company’s performance and
results of operations period to period with the exclusion of the
items identified above. Management believes the presentation
of operating EBITDA, when combined with the GAAP presentations of
operating income and net income, is beneficial to an investor’s
understanding of the Company’s operating performance. A
reconciliation of operating EBITDA to net income is included in the
tables following this release.
Adjusted earnings and adjusted earnings per
diluted share for the three and nine month periods ending September
30, 2017 and 2016 reflect adjustments for charges incurred in
connection with acquisition related costs, the losses attributable
to the Company’s extinguishment of debt, income or losses
recognized on the sale and/or closure of former Company locations,
one-time executive severance costs and impairment of goodwill
charges. Management believes providing adjusted measures and
excluding certain items facilitates comparisons to the Company’s
prior year periods and, when combined with the GAAP presentation of
net income and diluted net income per share, is beneficial to an
investor’s understanding of the Company’s performance. A
reconciliation of adjusted earnings and adjusted earnings per
diluted share to net income and net income per diluted share is
included in the tables following this release.
Third quarter 2017 Conference Call
Wabash National will conduct a conference call
to review and discuss its third quarter results on November 1,
2017, at 10:00 a.m. EDT. Access to the live webcast will be
available on the Company’s website at www.wabashnational.com.
For those unable to participate in the live webcast, the call will
be archived at www.wabashnational.com within three hours of the
conclusion of the live call and will remain available through
January 23, 2018. Meeting access also will be available via
conference call at 800-708-4540, participant code 45791234.
About Wabash National Corporation
Headquartered in Lafayette, Indiana, Wabash
National Corporation (NYSE:WNC) is a diversified industrial
manufacturer and North America’s leading producer of semi-trailers
and liquid transportation systems. Established in 1985, the
Company manufactures a diverse range of products including: dry
freight and refrigerated trailers, platform trailers, bulk tank
trailers, dry and refrigerated truck bodies, truck-mounted tanks,
intermodal equipment, aircraft refueling equipment, structural
composite panels and products, trailer aerodynamic solutions, and
specialty food grade and pharmaceutical equipment. Its
innovative products are sold under the following brand names:
Wabash National®, Beall®, Benson®, Brenner® Tank, Bulk Tank
International, DuraPlate®, Extract Technology®, Garsite, Progress
Tank, Supreme®, Transcraft®, Walker Engineered Products, and Walker
Transport. Learn more at www.wabashnational.com.
Safe Harbor Statement
This press release contains certain
forward-looking statements as defined by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements convey
the Company’s current expectations or forecasts of future events.
All statements contained in this press release other than
statements of historical fact are forward-looking statements. These
forward-looking statements include, among other things, all
statements regarding the Company’s outlook for trailer shipments,
backlog, expectations regarding demand levels for trailers,
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 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 successful 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, risks in implementing and
sustaining improvements in the Company’s manufacturing operations
and cost containment, dependence on industry trends and timing and
costs of indebtedness. Readers should review and consider the
various disclosures made by the Company in this press release and
in the Company’s reports to its stockholders and periodic reports
on Forms 10-K and 10-Q.
|
WABASH NATIONAL CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Dollars in thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
425,098 |
|
|
$ |
464,272 |
|
|
$ |
1,223,717 |
|
|
$ |
1,383,387 |
|
Cost of sales |
|
364,134 |
|
|
380,813 |
|
|
1,035,718 |
|
|
1,129,338 |
|
Gross
profit |
|
60,964 |
|
|
83,459 |
|
|
187,999 |
|
|
254,049 |
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses |
|
16,075 |
|
|
17,206 |
|
|
53,511 |
|
|
55,093 |
|
Selling expenses |
|
5,497 |
|
|
6,415 |
|
|
17,568 |
|
|
20,421 |
|
Amortization of
intangibles |
|
4,097 |
|
|
4,983 |
|
|
12,693 |
|
|
14,961 |
|
Acquisition
Expenses |
|
8,704 |
|
|
- |
|
|
8,704 |
|
|
- |
|
Impairment of
goodwill |
|
- |
|
|
- |
|
|
- |
|
|
1,663 |
|
Income
from operations |
|
26,591 |
|
|
54,855 |
|
|
95,523 |
|
|
161,911 |
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
Interest
expense |
|
(3,187 |
) |
|
(3,906 |
) |
|
(9,065 |
) |
|
(11,938 |
) |
Other,
net |
|
6,271 |
|
|
830 |
|
|
7,929 |
|
|
226 |
|
Income
before income taxes |
|
29,675 |
|
|
51,779 |
|
|
94,387 |
|
|
150,199 |
|
Income tax expense |
|
10,728 |
|
|
18,401 |
|
|
32,321 |
|
|
53,766 |
|
Net income |
|
$ |
18,947 |
|
|
$ |
33,378 |
|
|
$ |
62,066 |
|
|
$ |
96,433 |
|
Dividends declared per
share |
|
$ |
0.06 |
|
|
- |
|
|
$ |
0.18 |
|
|
- |
|
Basic net income per
share |
|
$ |
0.32 |
|
|
$ |
0.52 |
|
|
$ |
1.04 |
|
|
$ |
1.50 |
|
Diluted net income per
share |
|
$ |
0.30 |
|
|
$ |
0.51 |
|
|
$ |
0.99 |
|
|
$ |
1.45 |
|
|
|
|
|
|
|
|
|
|
Comprehensive
income |
|
|
|
|
|
|
|
|
Net
income |
|
$ |
18,947 |
|
|
$ |
33,378 |
|
|
$ |
62,066 |
|
|
$ |
96,433 |
|
Foreign
currency translation adjustment |
|
57 |
|
|
(288 |
) |
|
829 |
|
|
(944 |
) |
Net comprehensive
income |
|
$ |
19,004 |
|
|
$ |
33,090 |
|
|
$ |
62,895 |
|
|
$ |
95,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share: |
|
|
|
|
|
|
|
|
Net
income applicable to common stockholders |
|
$ |
18,947 |
|
|
$ |
33,378 |
|
|
$ |
62,066 |
|
|
$ |
96,433 |
|
Weighted
average common shares outstanding |
|
58,994 |
|
|
63,604 |
|
|
59,675 |
|
|
64,488 |
|
Basic net
income per share |
|
$ |
0.32 |
|
|
$ |
0.52 |
|
|
$ |
1.04 |
|
|
$ |
1.50 |
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share: |
|
|
|
|
|
|
|
|
Net
income applicable to common stockholders |
|
$ |
18,947 |
|
|
$ |
33,378 |
|
|
$ |
62,066 |
|
|
$ |
96,433 |
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
58,994 |
|
|
63,604 |
|
|
59,675 |
|
|
64,488 |
|
Dilutive
shares from assumed conversion of convertible senior notes |
|
1,701 |
|
|
1,172 |
|
|
1,713 |
|
|
743 |
|
Dilutive
stock options and restricted stock |
|
1,541 |
|
|
1,256 |
|
|
1,526 |
|
|
1,222 |
|
Diluted
weighted average common shares outstanding |
|
62,236 |
|
|
66,032 |
|
|
62,914 |
|
|
66,453 |
|
Diluted
net income per share |
|
$ |
0.30 |
|
|
$ |
0.51 |
|
|
$ |
0.99 |
|
|
$ |
1.45 |
|
|
WABASH NATIONAL CORPORATION |
SEGMENTS AND RELATED INFORMATION |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
Diversified |
|
Corporate and |
|
|
Three Months
Ended September 30, |
|
Trailer Products |
|
Products |
|
Eliminations |
|
Consolidated |
2017 |
|
|
|
|
|
|
|
|
New trailers
shipped |
|
13,350 |
|
550 |
|
- |
|
|
13,900 |
Used trailers
shipped |
|
300 |
|
50 |
|
- |
|
|
350 |
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
319,463 |
|
$ |
35,225 |
|
$ |
- |
|
|
$ |
354,688 |
Used Trailers |
|
$ |
3,245 |
|
$ |
601 |
|
$ |
- |
|
|
3,846 |
Components, parts and
service |
|
$ |
12,255 |
|
$ |
27,881 |
|
$ |
(3,244 |
) |
|
36,892 |
Equipment and
other |
|
$ |
4,529 |
|
$ |
25,143 |
|
$ |
- |
|
|
29,672 |
Total net
external sales |
|
$ |
339,492 |
|
$ |
88,850 |
|
$ |
(3,244 |
) |
|
$ |
425,098 |
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
43,849 |
|
$ |
17,378 |
|
$ |
(263 |
) |
|
$ |
60,964 |
Income (Loss) from
operations |
|
$ |
36,319 |
|
$ |
5,179 |
|
$ |
(14,907 |
) |
|
$ |
26,591 |
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
|
|
|
|
|
New trailers
shipped |
|
14,900 |
|
550 |
|
- |
|
|
15,450 |
Used trailers
shipped |
|
200 |
|
50 |
|
- |
|
|
250 |
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
360,023 |
|
$ |
32,280 |
|
$ |
(89 |
) |
|
$ |
392,214 |
Used Trailers |
|
2,923 |
|
621 |
|
- |
|
|
3,544 |
Components, parts and
service |
|
14,038 |
|
29,308 |
|
(3,603 |
) |
|
39,743 |
Equipment and
other |
|
3,530 |
|
25,241 |
|
- |
|
|
28,771 |
Total net
external sales |
|
$ |
380,514 |
|
$ |
87,450 |
|
$ |
(3,692 |
) |
|
$ |
464,272 |
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
64,681 |
|
$ |
18,947 |
|
$ |
(169 |
) |
|
$ |
83,459 |
Income (Loss) from
operations |
|
$ |
55,043 |
|
$ |
6,224 |
|
$ |
(6,412 |
) |
|
$ |
54,855 |
|
|
|
|
|
|
|
|
|
Nine Months
Ended September 30, |
|
|
|
|
|
|
|
|
2017 |
|
|
|
|
|
|
|
|
New trailers
shipped |
|
37,300 |
|
1,600 |
|
- |
|
|
38,900 |
Used trailers
shipped |
|
450 |
|
100 |
|
- |
|
|
550 |
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
906,058 |
|
$ |
99,210 |
|
$ |
- |
|
|
$ |
1,005,268 |
Used Trailers |
|
$ |
5,368 |
|
$ |
2,457 |
|
$ |
- |
|
|
7,825 |
Components, parts and
service |
|
$ |
38,100 |
|
$ |
93,750 |
|
$ |
(8,291 |
) |
|
123,559 |
Equipment and
other |
|
$ |
12,895 |
|
$ |
74,170 |
|
$ |
- |
|
|
87,065 |
Total net
external sales |
|
$ |
962,421 |
|
$ |
269,587 |
|
$ |
(8,291 |
) |
|
$ |
1,223,717 |
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
136,857 |
|
$ |
52,120 |
|
$ |
(978 |
) |
|
$ |
187,999 |
Income (Loss) from
operations |
|
$ |
111,865 |
|
$ |
14,844 |
|
$ |
(31,186 |
) |
|
$ |
95,523 |
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
|
|
|
|
|
New trailers
shipped |
|
44,250 |
|
1,600 |
|
- |
|
|
45,850 |
Used trailers
shipped |
|
750 |
|
100 |
|
- |
|
|
850 |
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
1,061,819 |
|
$ |
96,285 |
|
$ |
(89 |
) |
|
$ |
1,158,015 |
Used Trailers |
|
10,202 |
|
2,615 |
|
- |
|
|
12,817 |
Components, parts and
service |
|
43,108 |
|
88,653 |
|
(9,900 |
) |
|
121,861 |
Equipment and
other |
|
11,638 |
|
79,056 |
|
- |
|
|
90,694 |
Total net
external sales |
|
$ |
1,126,767 |
|
$ |
266,609 |
|
$ |
(9,989 |
) |
|
$ |
1,383,387 |
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
194,104 |
|
$ |
62,095 |
|
$ |
(2,150 |
) |
|
$ |
254,049 |
Income (Loss) from
operations |
|
$ |
162,435 |
|
$ |
23,471 |
|
$ |
(23,995 |
) |
|
$ |
161,911 |
|
WABASH NATIONAL CORPORATION |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(Dollars in thousands) |
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2017 |
|
2016 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and
cash equivalents |
|
$ |
153,702 |
|
$ |
163,467 |
Accounts
receivable |
|
152,603 |
|
153,634 |
Inventories |
|
245,674 |
|
139,953 |
Prepaid
expenses and other |
|
33,453 |
|
24,351 |
Total
current assets |
|
$ |
585,432 |
|
$ |
481,405 |
|
|
|
|
|
Property, plant and
equipment |
|
196,275 |
|
134,138 |
|
|
|
|
|
Deferred income
taxes |
|
20,265 |
|
20,343 |
|
|
|
|
|
|
|
313,626 |
|
148,367 |
|
|
|
|
|
Intangible assets |
|
239,867 |
|
94,405 |
|
|
|
|
|
Other assets |
|
23,662 |
|
20,075 |
|
|
$ |
1,379,127 |
|
$ |
898,733 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
Current
portion of long-term debt |
|
$ |
46,081 |
|
$ |
2,468 |
Current
portion of capital lease obligations |
|
375 |
|
494 |
Accounts
payable |
|
129,744 |
|
71,338 |
Other
accrued liabilities |
|
112,886 |
|
92,314 |
Total
current liabilities |
|
$ |
289,086 |
|
$ |
166,614 |
|
|
|
|
|
Long-term debt |
|
504,620 |
|
233,465 |
|
|
|
|
|
Capital lease
obligations |
|
1,112 |
|
1,409 |
|
|
|
|
|
Deferred income
taxes |
|
66,879 |
|
499 |
|
|
|
|
|
Other noncurrent
liabilities |
|
29,702 |
|
24,355 |
|
|
|
|
|
Stockholders'
equity |
|
$ |
487,728 |
|
472,391 |
|
|
$ |
1,379,127 |
|
$ |
898,733 |
|
WABASH NATIONAL CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
|
Nine Months Ended |
|
September 30, |
|
2017 |
|
2016 |
|
|
|
|
Cash flows from
operating activities |
|
|
|
Net
income |
$ |
62,066 |
|
|
$ |
96,433 |
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
Depreciation |
12,709 |
|
|
12,241 |
|
Amortization of intangibles |
12,693 |
|
|
14,961 |
|
Net
(gain) loss on the sale of assets |
(8,060 |
) |
|
40 |
|
Deferred
income taxes |
59 |
|
|
(935 |
) |
Excess
tax benefits from stock-based compensation |
- |
|
|
(509 |
) |
Loss on
debt extinguishment |
767 |
|
|
487 |
|
Stock-based compensation |
8,311 |
|
|
8,618 |
|
Impairment of goodwill |
- |
|
|
1,663 |
|
Non-cash
interest expense |
1,569 |
|
|
2,718 |
|
Changes
in operating assets and liabilities |
|
|
|
Accounts receivable |
26,185 |
|
|
(5,117 |
) |
Inventories |
(77,923 |
) |
|
(29,587 |
) |
Prepaid expenses and other |
(187 |
) |
|
(11,021 |
) |
Accounts payable and accrued liabilities |
23,702 |
|
|
15,478 |
|
Other, net |
(772 |
) |
|
496 |
|
Net cash
provided by operating activities |
$ |
61,119 |
|
|
$ |
105,966 |
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
Capital
expenditures |
(15,401 |
) |
|
(15,045 |
) |
Proceeds
from the sale of property, plant, and equipment |
12,608 |
|
|
14 |
|
Acquisition, net of cash acquired |
(323,487 |
) |
|
- |
|
Other,
net |
6,230 |
|
|
2,268 |
|
Net cash
used in investing activities |
$ |
(320,050 |
) |
|
$ |
(12,763 |
) |
|
|
|
|
Cash flows from
financing activities |
|
|
|
Proceeds
from exercise of stock options |
5,781 |
|
|
2,341 |
|
Borrowings under senior notes |
325,000 |
|
|
- |
|
Excess tax benefits from stock-based compensation |
- |
|
|
509 |
|
Dividends paid |
(11,547 |
) |
|
- |
|
Borrowings under revolving credit facilities |
520 |
|
|
455 |
|
Payments
under revolving credit facilities |
(520 |
) |
|
(455 |
) |
Principal
payments under capital lease obligations |
(416 |
) |
|
(633 |
) |
Proceeds
from issuance of term loan credit facility |
189,470 |
|
|
- |
|
Principal
payments under term loan credit facilities |
(198,058 |
) |
|
(1,446 |
) |
Principal
payments under industrial revenue bond |
(446 |
) |
|
(386 |
) |
Debt
issuance costs paid |
(6,472 |
) |
|
- |
|
Stock
repurchase |
(46,633 |
) |
|
(40,739 |
) |
Convertible senior notes repurchase |
(7,513 |
) |
|
(42,061 |
) |
Net cash
used in financing activities |
$ |
249,166 |
|
|
$ |
(82,415 |
) |
|
|
|
|
Net increase in cash
and cash equivalents |
$ |
(9,765 |
) |
|
$ |
10,788 |
|
Cash and cash
equivalents at beginning of period |
163,467 |
|
|
178,853 |
|
Cash and cash
equivalents at end of period |
$ |
153,702 |
|
|
$ |
189,641 |
|
|
|
|
|
WABASH NATIONAL CORPORATION |
|
|
|
RECONCILIATION OF GAAP FINANCIAL MEASURES
TO |
|
|
|
NON-GAAP FINANCIAL MEASURES |
|
|
|
(Dollars in thousands, except per share amounts) |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
EBITDA1: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
Net income |
|
$ |
18,947 |
|
|
$ |
33,378 |
|
|
$ |
62,066 |
|
|
$ |
96,433 |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
10,728 |
|
|
18,401 |
|
|
32,321 |
|
|
53,766 |
|
|
|
|
|
|
|
|
|
Interest expense |
|
3,187 |
|
|
3,906 |
|
|
9,065 |
|
|
11,938 |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
8,386 |
|
|
9,052 |
|
|
25,402 |
|
|
27,202 |
|
|
|
|
|
|
|
|
|
Stock-based
compensation |
|
2,881 |
|
|
2,915 |
|
|
8,311 |
|
|
8,618 |
|
|
|
|
|
|
|
|
|
Impairment of
intangibles |
|
- |
|
|
- |
|
|
- |
|
|
1,663 |
|
|
|
|
|
|
|
|
|
Acquisition
expenses |
|
8,704 |
|
|
- |
|
|
8,704 |
|
|
- |
|
|
|
|
|
|
|
|
|
Other non-operating
(income) expense |
|
(6,271 |
) |
|
(830 |
) |
|
(7,929 |
) |
|
(226 |
) |
|
|
|
|
|
|
|
|
Operating EBITDA |
|
$ |
46,561 |
|
|
$ |
66,822 |
|
|
$ |
137,941 |
|
|
$ |
199,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Trailing Twelve Months |
|
|
|
|
|
|
|
|
December 31, 2016 |
|
March 31, 2017 |
|
June 30, 2017 |
|
September 30, 2017 |
|
September 30, 2017 |
|
|
|
|
|
|
Net income |
|
$ |
23,000 |
|
|
$ |
20,173 |
|
|
$ |
22,945 |
|
|
$ |
18,947 |
|
|
$ |
85,065 |
|
|
|
|
|
|
|
Income tax expense |
|
12,217 |
|
|
8,434 |
|
|
13,160 |
|
|
10,728 |
|
|
44,539 |
|
|
|
|
|
|
|
Interest expense |
|
3,725 |
|
|
2,990 |
|
|
2,888 |
|
|
3,187 |
|
|
12,790 |
|
|
|
|
|
|
|
Depreciation and
amortization |
|
9,565 |
|
|
8,704 |
|
|
8,315 |
|
|
8,386 |
|
|
34,970 |
|
|
|
|
|
|
|
Stock-based
compensation |
|
3,420 |
|
|
2,963 |
|
|
2,467 |
|
|
2,881 |
|
|
11,731 |
|
|
|
|
|
|
|
Acquisition
expenses |
|
- |
|
|
- |
|
|
- |
|
|
8,704 |
|
|
8,704 |
|
|
|
|
|
|
|
Other non-operating
(income) expense |
|
1,679 |
|
|
(1,333 |
) |
|
(325 |
) |
|
(6,271 |
) |
|
(6,250 |
) |
|
|
|
|
|
|
Operating EBITDA |
|
$ |
53,606 |
|
|
$ |
41,930 |
|
|
$ |
49,450 |
|
|
$ |
46,561 |
|
|
$ |
191,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Earnings2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
18,947 |
|
|
$ |
0.30 |
|
|
$ |
33,378 |
|
|
$ |
0.51 |
|
|
$ |
62,066 |
|
|
$ |
0.99 |
|
|
$ |
96,433 |
|
|
$ |
1.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Facility
transactions3 |
|
(5,165 |
) |
|
(0.08 |
) |
|
(740 |
) |
|
(0.01 |
) |
|
(6,820 |
) |
|
(0.11 |
) |
|
(740 |
) |
|
(0.01 |
) |
Impairment of goodwill and other intangibles |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,663 |
|
|
0.03 |
|
Loss on
debt extinguishment |
|
3 |
|
|
- |
|
|
- |
|
|
- |
|
|
768 |
|
|
0.01 |
|
|
487 |
|
|
0.01 |
|
Executive
severance expense |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
238 |
|
|
- |
|
|
- |
|
|
- |
|
Acquisition expenses |
|
8,704 |
|
|
0.14 |
|
|
- |
|
|
- |
|
|
8,704 |
|
|
0.14 |
|
|
- |
|
|
- |
|
Tax
effect of aforementioned items |
|
(1,275 |
) |
|
(0.02 |
) |
|
263 |
|
|
- |
|
|
(1,040 |
) |
|
(0.02 |
) |
|
(505 |
) |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings |
|
$ |
21,214 |
|
|
$ |
0.34 |
|
|
$ |
32,901 |
|
|
$ |
0.50 |
|
|
$ |
63,916 |
|
|
$ |
1.02 |
|
|
$ |
97,338 |
|
|
$ |
1.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average # of
Diluted Shares O/S |
|
62,236 |
|
|
|
|
66,032 |
|
|
|
|
62,914 |
|
|
|
|
66,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
December 31, 2016 |
|
March 31, 2017 |
|
June 30, 2017 |
|
|
|
|
|
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
$ |
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
23,000 |
|
|
$ |
0.36 |
|
|
$ |
20,173 |
|
|
$ |
0.32 |
|
|
$ |
22,945 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Facility
transactions3 |
|
450 |
|
|
0.01 |
|
|
(1,665 |
) |
|
(0.03 |
) |
|
18 |
|
|
- |
|
|
|
|
|
Loss on
debt extinguishment |
|
1,408 |
|
|
0.02 |
|
|
640 |
|
|
0.01 |
|
|
125 |
|
|
- |
|
|
|
|
|
Executive
severance expense |
|
|
|
|
|
|
|
|
|
238 |
|
|
- |
|
|
|
|
|
Tax
effect of aforementioned items |
|
(645 |
) |
|
(0.01 |
) |
|
369 |
|
|
0.01 |
|
|
(137 |
) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings |
|
$ |
24,213 |
|
|
$ |
0.38 |
|
|
$ |
19,517 |
|
|
$ |
0.31 |
|
|
$ |
23,189 |
|
|
$ |
0.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average # of
Diluted Shares O/S |
|
63,701 |
|
|
|
|
63,390 |
|
|
|
|
63,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Operating EBITDA is defined as earnings before interest,
taxes, depreciation, amortization, stock-based compensation,
acquisition expenses, impairment of goodwill and other intangibles,
and other non-operating income and expense. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Adjusted earnings and adjusted earnings per diluted share
reflect adjustments for charges incurred in connection with
acquisition related costs, the losses attributable to the Company's
extinguishment of debt, income or losses recognized on the sale
and/or closure of former Company locations, one-time executive
severance costs and impairment of goodwill or other intangible
asset charges. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Facility transactions in 2016 and 2017 relate to gains and/or
losses incurred for the sale or closure of our locations in
Phoenix, Denver, Miami, Findlay, Dallas, and San
Antonio. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media Contact: Dana
StelselCorporate Communications Manager (765)
771-5766dana.stelsel@wabashnational.com
Investor Relations: Mike PettitVice President,
Finance & Investor Relations (765) 771-5581
michael.pettit@wabashnational.com
Wabash National (NYSE:WNC)
Historical Stock Chart
From Apr 2024 to May 2024
Wabash National (NYSE:WNC)
Historical Stock Chart
From May 2023 to May 2024