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Wabash National Corporation Announces Third Quarter 2013 Results

Wabash National Corporation Announces Third Quarter 2013 Results 
Achieves Record Quarterly Net Sales, Operating Income and Operating
EBITDA; GAAP EPS of $0.23 and Non-GAAP Adjusted EPS of $0.24 per
Diluted Share 
LAFAYETTE, IN -- (Marketwired) -- 10/29/13 --  Wabash National
Corporation (NYSE: WNC) reported third quarter 2013 net income of
$16.2 million, or $0.23 per diluted share on net sales of $440
million compared to third quarter 2012 net income of $18.4 million,
or $0.27 per diluted share on net sales of $406 million. The
Company's third quarter 2013 results include the impact of an early
extinguishment of debt charge related to a $20 million term loan
prepayment made in September 2013 as well as other non-recurring
acquisition expenses, totaling $0.6 million. Excluding the impact of
these items, non-GAAP adjusted earnings for the quarter ended
September 30, 2013 were $16.6 million, or $0.24 per diluted share. In
comparison, the non-GAAP adjusted earnings for the quarter ended
September 30, 2012 were $20.9 million, or $0.30 per diluted share,
which excluded the impact of non-recurring charges related to the
Company's acquisition of Walker Group Holdings LLC ("Walker"),
totaling $2.4 million. If the tax rate used in computing prior period
results was 40.0 percent, consistent with the current period,
non-GAAP earnings per share for the third quarter of 2012 would have
been lower by $0.11 per diluted share. 
The Company reported operating income totaling $33.8 million for the
third quarter of 2013, compared to operating income of $27.2 million
for the third quarter of 2012. Non-GAAP operating EBITDA, which
excludes the effects of costs related to the acquisitions of Walker
and certain assets of Beall, as well as other recurring and
non-recurring items, for the third quarter of 2013 was $44.9 million,
an improvement of $7.2 million compared to the previous year period.
On a trailing twelve months basis, the Company's net sales increased
to approximately $1.59 billion, generating operating EBITDA of $153.1
million, or 9.6 percent of net sales. The improvement in operating
performance is attributed to the successful execution of the
Company's growth strategy and disciplined approach to improving
profitability, including an improved mix of higher-margin trailer
orders driven by its focus on margin over volume, diversification
into higher-margin opportunities through the acquisitions of Walker
and certain assets of Beall as well as organic growth of the
Diversified Products Group, and operational improvements in the
manufacturing facilities. 
The following is a summary of select operating and financial results
for the past five quarters: 


 
                                                                     
                                         Three Months Ended          
                               --------------------------------------
                               September 30,     December 31,        
(Dollars in thousands)              2012             2012            
                               -------------     ------------        
                                                                     
Net Sales                      $     405,917     $    415,847        
                                                                     
Gross Profit Margin                     12.3%            13.1%       
                                                                     
Income from Operations         $      27,236 (1) $     29,231 (1)    
                                                                     
Net Income                     $      18,441 (1) $     80,184 (1) (2)
                                                                     
Diluted EPS                    $        0.27     $       1.16        
                                                                     
Non-GAAP Measures(3):                                                
Operating EBITDA               $      37,695     $     38,834        
                                                                     
Operating EBITDA Margin                  9.3%             9.3%       
                                                                     
Adjusted Earnings              $      20,887     $     21,678        
                                                                     
Adjusted Diluted EPS           $        0.30     $       0.32        
                                                                     
 
                                                                            
                                            Three Months Ended              
                              ----------------------------------------------
                               March 31,      June 30,     September 30,    
(Dollars in thousands)            2013          2013            2013        
                               ---------     ---------     -------------    
                                                                            
Net Sales                      $ 324,229     $ 413,126     $     439,977    
                                                                            
Gross Profit Margin                 13.0%         14.2%             14.0%   
                                                                            
Income from Operations         $  14,856 (1) $  30,452 (1) $      33,830 (1)
                                                                            
Net Income                     $   5,735 (1) $  14,135 (1) $      16,236 (1)
                                                                            
Diluted EPS                    $    0.08     $    0.20     $        0.23    
                                                                            
Non-GAAP Measures(3):                                                       
Operating EBITDA               $  27,134     $  42,246     $      44,873    
                                                                            
Operating EBITDA Margin              8.4%         10.2%             10.2%   
                                                                            
Adjusted Earnings              $   6,106     $  14,697     $      16,616    
                                                                            
Adjusted Diluted EPS           $    0.09     $    0.21     $        0.24    
                                                                            
Notes:                                                                      
  (1)  Quarterly Income from Operations and Net Income include charges of   
       $2.4 million, $0.5 million, $0.6 million, $0.2 million and less than 
       $0.1 million for the quarterly periods beginning with the third      
       quarter of 2012 and ending with the third quarter of 2013,           
       respectively, in connection with the Company's acquisitions of Walker
       and certain assets of Beall.                                         
  (2)  Net income for the fourth quarter of 2012 includes an income tax     
       benefit of $59.0 million primarily related to the reversal of a U.S. 
       valuation allowance against its deferred tax assets.                 
  (3)  See "Non-GAAP Measures" below for explanation of the non-GAAP results
       included above.                                                      

 
Dick Giromini, president and chief executive officer, stated, "We are
extremely pleased with the financial and operating results across all
our strategic segments. The record performances achieved in the third
quarter again validate the significant progress we have made in our
long-term strategy to transform Wabash National into a diversified
manufacturer while continuing to implement operational improvements
throughout the business and further enhance our long-term margin and
growth profile through the integration of strategic acquisitions. In
particular, our Commercial Trailer Products segment reported another
strong quarter achieving our highest levels of gross profit and
profit margin since the second quarter of 2007. In addition, our
Diversified Products segment, representing higher-margin specialty
products, achieved near record levels for both net sales and gross
profit as we continue to realize benefits from both our organic and
strategic diversification efforts." 
Mr. Giromini continued, "New trailer shipments for the third quarter
were approximately 12,600, consistent with our previous guidance of
12,500 to 13,500 trailers. We anticipate continued strong demand for
our products as well as an improvement in customer pickups during the
fourth quarter with full year trailer shipments forecast to be
between 46,000 and 47,000 units. As expected, our backlog decreased
sequentially but remains at a seasonally healthy level of
approximately $563 million as of September 30, 2013. Longer term, we
believe the demand environment for trailers remains strong as fleet
age, customer profitability, used trailer values, regulatory
compliance and access to financing all support continued demand for
new trailers." 
Third Quarter 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 2013 and 2012, respectively. A complete
disclosure of the results by individual segment is included in the
tables following this release. 


 
                                                                            
(dollars in thousands)                Commercial                            
                                       Trailer      Diversified             
                                       Products       Products      Retail  
                                    -------------  -------------  --------- 
Three months ended September 30,                                            
  2013                                                                      
New trailers shipped                       11,700            800        800 
Net sales                           $     293,510  $     132,131  $  45,996 
Gross profit                        $      23,619  $      31,314  $   5,225 
Gross profit margin                           8.0%          23.7%      11.4%
Income from operations              $      17,323  $      18,538  $     743 
Income from operations margin                 5.9%          14.0%       1.6%
                                                                            
  2012                                                                      
New trailers shipped                       11,400            700        900 
Net sales                           $     281,131  $     108,876  $  47,633 
Gross profit                        $      20,342  $      24,188  $   5,256 
Gross profit margin                           7.2%          22.2%      11.0%
Income from operations              $      14,634  $      14,867  $   1,400 
Income from operations margin                 5.2%          13.7%       2.9%

 
Commercial Trailer Products' net sales increased $12 million or 4.4
percent, on 11,700 trailers, or 300 more trailers than the prior year
period. This increase was primarily due to the increase in trailer
shipments during the quarter as well as the Company's continued
efforts to improve product pricing and recapture lost margins. The
Company's average selling prices increased $200, or 0.9 percent
compared to the prior year period. As a result, gross margin improved
80 basis points to 8.0 percent compared to the prior year period.
Operating income increased to $17.3 million, or $2.7 million higher
than the third quarter last year due to improved pricing and
continued operational improvements. 
Diversified Products' net sales increased $23 million, or 21.4
percent, driven by the continued strong demand for both our composite
and Walker product offerings, as well as the acquisition of certain
assets of Beall earlier this year. Gross profit improved $7.1 million
compared to the prior year period, while gross margin increased 150
basis points from 22.2 percent to 23.7 percent, primarily attributed
to the favorable mix of products within our composite product
offerings. Operating income increased 24.7 percent, or $3.7 million,
as compared to the same period last year, primarily due to increased
net sales.   
Retail's net sales decreased $2 million, or 3.4 percent, primarily
due to a 100 unit decrease in new trailer shipments. However, gross
profit margins improved 40 basis points to 11.4 percent as a larger
percentage of net sales was generated from higher margin parts and
services activities. Operating income decreased $0.7 million during
the third quarter of 2013 as compared to the same period last year
due to lower net sales and higher selling and administrative
expenses.  
Term Loan Voluntary Partial Prepayment 
The Company made its second voluntary term loan partial prepayment in
the amount of $20 million on September 25. At current interest rate
levels, these partial payments in addition to the closing of the
amendment and repricing of the term loan facility in May 2013, have
successfully reduced the Company's annual cash interest costs by
approximately $6 million. Jeff Taylor, vice president and acting
chief financial officer commented, "We are pleased with our strong
financial performance and our ability to generate cash flow which
provided us the flexibility to voluntarily prepay a portion of our
outstanding balances on our term loan facility. As we have previously
stated, managing our capital structure is a priority and the third
quarter debt payment, our second $20 million voluntary prepayment of
2013, demonstrates our continued commitment to execute against our
plan."   
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 contain non-GAAP
financial measures, including Operating EBITDA, Operating EBITDA
margin, adjusted earnings and adjusted earnings per diluted share. 
These non-GAAP measures should not be considered a substitute for, or
superior to, financial measures and results calculated in accordance
with GAAP, including net income, and reconciliations to GAAP
financial statements should be carefully evaluated.  
Operating EBITDA is defined as earnings before interest, taxes,
depreciation, amortization, stock-based compensation, and other
non-operating income and expense, as well as certain charges in
connection with the Company's acquisitions of Walker and certain
assets of Beall. Management believes Operating EBITDA provides useful
information to investors regarding our results of operations. The
Company provides this measure because we believe it is useful for
investors to understand our performance period to period with the
exclusion of the recurring and non-recurring items identified above.
Management believes the presentation of Operating EBITDA, when
combined with the primary GAAP presentation of operating 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 reflect
adjustments for non-recurring charges related to the Company's
acquisitions of Walker and certain assets of Beall, the impact of the
release of the valuation allowances recorded against the Company's
net deferred tax assets as well as one-time costs related to losses
incurred on the early extinguishment of debt for the term loan
prepayments made in May and September 2013. Management believes
providing this measure and excluding the impact of the non-recurring
expenses attributable to the acquisitions of Walker and certain
assets of Beall, the impact of the release of the valuation
allowances and early extinguishment of debt costs facilitates
comparisons to the Company's prior year periods and, when combined
with the primary 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 diluted net
income per share is included in the tables following this release.  
Third Quarter 2013 Conference Call 
Wabash National will conduct a conference call to review and discuss
its third quarter results on October 30, 2013, 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 22, 2014. Meeting access also will be
available via conference call at 888-771-4371, participant code
35893120. 
About Wabash National Corporation 
Headquartered in Lafayette, Indiana, Wabash National Corporation
(NYSE: WNC) is a diversified manufacturer and North America's leading
producer of semi trailers and liquid transportation systems.
Established in 1985, the Company specializes in the design and
production of dry freight vans, refrigerated vans, platform trailers,
intermodal equipment, liquid tank trailers, frac tanks, engineered
products, and composite products. Wabash National operates three
wholly-owned subsidiaries: Transcraft Corporation, Walker Group
Holdings LLC, and Wabash National Trailer Centers, Inc. Its
innovative products are sold under the following brand names: Wabash
National(R), Transcraft(R), Benson(R), DuraPlate(R), ArcticLite(R),
Walker Transport, Walker Stainless Equipment, Walker Defense Group,
Walker Barrier Systems, Walker Engineered Products, Brenner(R) Tank,
Garsite, Progress Tank, TST, Bulk Tank International, Beall(R) and
Extract Technology(R). To learn more, visit 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, statements regarding our outlook for new trailer shipments
and Operating EBITDA, backlog, expectations regarding trailer demand
levels, improved profitability and earnings capacity, ability to
manage the capital structure, customer pickup expectations,
opportunity to capture higher margin sales, and the benefits of the
acquisitions of Walker and certain assets of Beall. 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
uncertain economic conditions including the possibility that demand
expectations may not result in order increases for us, 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 our manufacturing capacity and cost containment, dependence on
industry trends and timing, costs of indebtedness incurred in
connection with the acquisition of Walker and the failure to achieve
the benefit of the Walker acquisition and Beall asset purchase.
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       Nine Months Ended   
                                  September 30,           September 30,     
                             ----------------------  ---------------------- 
                                2013        2012        2013        2012    
                             ----------  ----------  ----------  ---------- 
                                                                            
Net sales                    $  439,977  $  405,917  $1,177,332  $1,046,007 
Cost of sales                   378,480     355,843   1,014,796     936,523 
                             ----------  ----------  ----------  ---------- 
  Gross profit                   61,497      50,074     162,536     109,484 
                                                                            
General and administrative                                                  
 expenses                        14,559      12,548      43,208      30,870 
Selling expenses                  7,628       7,134      23,029      16,112 
Amortization of intangibles       5,454       2,984      16,278       7,175 
Acquisition expenses                 26         172         883      14,074 
                             ----------  ----------  ----------  ---------- 
Income from operations           33,830      27,236      79,138      41,253 
                                                                            
Other income (expense):                                                     
  Interest expense               (6,252)     (7,760)    (20,364)    (13,934)
  Loss on debt                                                              
   extinguishment                  (605)          -      (1,304)          - 
  Other, net                          -         211       2,604         151 
                             ----------  ----------  ----------  ---------- 
  Income before income taxes     26,973      19,687      60,074      27,470 
Income tax expense               10,737       1,246      23,968       2,023 
                             ----------  ----------  ----------  ---------- 
Net income                   $   16,236  $   18,441  $   36,106  $   25,447 
                             ==========  ==========  ==========  ========== 
Basic net income per share   $     0.24  $     0.27  $     0.52  $     0.37 
                             ==========  ==========  ==========  ========== 
Diluted net income per share $     0.23  $     0.27  $     0.52  $     0.37 
                             ==========  ==========  ==========  ========== 
                                                                            
Comprehensive income                                                        
  Net income                 $   16,236  $   18,441  $   36,106  $   25,447 
  Foreign currency                                                          
   translation adjustment           191         207        (152)        313 
                             ----------  ----------  ----------  ---------- 
Net comprehensive income     $   16,427  $   18,648  $   35,954  $   25,760 
                             ==========  ==========  ==========  ========== 
                                                                            
                                                                            
Basic net income per share:                                                 
  Net income applicable to                                                  
   common stockholders       $   16,236  $   18,441  $   36,106  $   25,447 
  Undistributed earnings                                                    
   allocated to                                                             
   participating securities        (117)       (166)       (293)       (218)
                             ----------  ----------  ----------  ---------- 
  Net income applicable to                                                  
   common stockholders                                                      
   excluding amounts                                                        
   applicable to                                                            
   participating securities  $   16,119  $   18,275  $   35,813  $   25,229 
                             ==========  ==========  ==========  ========== 
  Weighted average common                                                   
   shares outstanding            68,487      68,357      68,442      68,308 
                             ==========  ==========  ==========  ========== 
  Basic net income per share $     0.24  $     0.27  $     0.52  $     0.37 
                             ==========  ==========  ==========  ========== 
                                                                            
Diluted net income per                                                      
 share:                                                                     
  Net income applicable to                                                  
   common stockholders       $   16,236  $   18,441  $   36,106  $   25,447 
  Undistributed earnings                                                    
   allocated to                                                             
   participating securities        (117)       (166)       (293)       (218)
                             ----------  ----------  ----------  ---------- 
  Net income applicable to                                                  
   common stockholders                                                      
   excluding amounts                                                        
   applicable to                                                            
   participating securities  $   16,119  $   18,275  $   35,813  $   25,229 
                             ==========  ==========  ==========  ========== 
                                                                            
  Weighted average common                                                   
   shares outstanding            68,487      68,357      68,442      68,308 
  Dilutive stock options and                                                
   restricted stock                 524         159         458         234 
                             ----------  ----------  ----------  ---------- 
  Diluted weighted average                                                  
   common shares outstanding     69,011      68,516      68,900      68,542 
                             ==========  ==========  ==========  ========== 
  Diluted net income per                                                    
   share                     $     0.23  $     0.27  $     0.52  $     0.37 
                             ==========  ==========  ==========  ========== 
                                                                            
                                                                            
                                                                            
                         WABASH NATIONAL CORPORATION                        
                      SEGMENTS AND RELATED INFORMATION                      
                           (Dollars in thousands)                           
                                 (Unaudited)                                
                                                                            
                                                                            
Three Months      Commercial                        Corporate               
 Ended September    Trailer  Diversified               and                  
 30,               Products    Products   Retail  Eliminations  Consolidated
                  ---------- ----------- -------- ------------  ------------
  2013                                                                      
New trailers                                                                
 shipped              11,700         800      800         (700)       12,600
Used trailers                                                               
 shipped               1,000           -      400            -         1,400
                                                                            
New Trailers      $  280,006 $    55,997 $ 20,899 $    (16,988) $    339,914
Used Trailers          9,092         792    3,442            -        13,326
Components, parts                                                           
 and service           1,186      30,212   20,674       (4,148)       47,924
Equipment and                                                               
 other                 3,226      45,130      981      (10,524)       38,813
                  ---------- ----------- -------- ------------  ------------
  Total net                                                                 
   external sales $  293,510 $   132,131 $ 45,996 $    (31,660) $    439,977
                                                                            
Gross profit      $   23,619 $    31,314 $  5,225 $      1,339  $     61,497
Income (Loss)                                                               
 from operations  $   17,323 $    18,538 $    743 $     (2,774) $     33,830
                                                                            
  2012                                                                      
New trailers                                                                
 shipped              11,400         700      900         (900)       12,100
Used trailers                                                               
 shipped               1,000           -      400            -         1,400
                                                                            
New Trailers      $  270,871 $    51,546 $ 23,925 $    (21,044) $    325,298
Used Trailers          7,644       1,007    3,903            -        12,554
Components, parts                                                           
 and service             990      17,755   18,737       (4,002)       33,480
Equipment and                                                               
 other                 1,626      38,568    1,068       (6,677)       34,585
                  ---------- ----------- -------- ------------  ------------
  Total net                                                                 
   external sales $  281,131 $   108,876 $ 47,633 $    (31,723) $    405,917
                                                                            
Gross profit      $   20,342 $    24,188 $  5,256 $        288  $     50,074
Income (Loss)                                                               
 from operations  $   14,634 $    14,867 $  1,400 $     (3,665) $     27,236
                                                                            
Nine Months Ended                                                           
 September 30,                                                              
  2013                                                                      
New trailers                                                                
 shipped              30,400       2,200    2,300       (2,300)       32,600
Used trailers                                                               
 shipped               2,400         100    1,000            -         3,500
                                                                            
New Trailers      $  723,659 $   150,750 $ 60,706 $    (52,790) $    882,325
Used Trailers         20,407       2,412    9,752           (5)       32,566
Components, parts                                                           
 and service           6,603      85,035   60,862      (10,387)      142,113
Equipment and                                                               
 other                 6,751     141,417    3,655      (31,495)      120,328
                  ---------- ----------- -------- ------------  ------------
  Total net                                                                 
   external sales $  757,420 $   379,614 $134,975 $    (94,677) $  1,177,332
                                                                            
Gross profit      $   56,376 $    88,986 $ 15,624 $      1,550  $    162,536
Income (Loss)                                                               
 from operations  $   37,197 $    51,320 $  2,877 $    (12,256) $     79,138
                                                                            
  2012                                                                      
New trailers                                                                
 shipped              33,500       1,200    1,900       (2,100)       34,500
Used trailers                                                               
 shipped               2,300         100    1,200            -         3,600
                                                                            
New Trailers      $  778,611 $    72,554 $ 50,329 $    (47,942) $    853,552
Used Trailers         16,617       1,300   11,634            -        29,551
Components, parts                                                           
 and service           2,665      57,604   46,876       (9,637)       97,508
Equipment and                                                               
 other                 7,347      81,129    2,086      (25,166)       65,396
                  ---------- ----------- -------- ------------  ------------
  Total net                                                                 
   external sales $  805,240 $   212,587 $110,925 $    (82,745) $  1,046,007
                                                                            
Gross profit      $   50,919 $    47,194 $ 11,868 $       (497) $    109,484
Income (Loss)                                                               
 from operations  $   34,557 $    29,335 $  2,554 $    (25,193) $     41,253
                                                                            
                                                                            
                                                                            
                         WABASH NATIONAL CORPORATION                        
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                           (Dollars in thousands)                           
                                                                            
                                                September 30,  December 31, 
                                                    2013           2012     
                                               -------------- --------------
                                                 (Unaudited)                
                                   ASSETS                                   
Current assets                                                              
  Cash                                         $       65,880 $       81,449
  Accounts receivable                                 130,086         96,590
  Inventories                                         239,606        189,487
  Deferred income taxes                                36,979         42,330
  Prepaid expenses and other                            3,951          8,239
                                               -------------- --------------
    Total current assets                       $      476,502 $      418,095
                                                                            
Property, plant and equipment                         139,735        132,146
                                                                            
Deferred income taxes                                   4,614         21,894
                                                                            
Goodwill                                              150,277        146,444
                                                                            
Intangible assets                                     164,559        171,990
                                                                            
Other assets                                           10,141         12,057
                                               -------------- --------------
                                               $      945,828 $      902,626
                                               ============== ==============
                                                                            
                    LIABILITIES AND STOCKHOLDERS' EQUITY                    
Current liabilities                                                         
  Current portion of long-term debt            $        3,240 $        3,381
  Current portion of capital lease obligations          1,706          1,140
  Accounts payable                                    138,009         87,299
  Other accrued liabilities                            88,733        104,873
                                               -------------- --------------
    Total current liabilities                  $      231,688 $      196,693
                                                                            
Long-term debt                                        378,037        416,849
                                                                            
Capital lease obligations                               7,064          3,781
                                                                            
Deferred income taxes                                   1,993          1,065
                                                                            
Other noncurrent liabilities                           17,086         15,511
                                                                            
Commitments and contingencies                                               
                                                                            
Stockholders' equity                                  309,960        268,727
                                               -------------- --------------
                                               $      945,828 $      902,626
                                               ============== ==============
                                                                            
                                                                            
                                                                            
                        WABASH NATIONAL CORPORATION                         
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS               
                           (Dollars in thousands)                           
                                (Unaudited)                                 
                                                                            
                                                        Nine Months Ended   
                                                          September 30,     
                                                     ---------------------- 
                                                        2013        2012    
                                                     ----------  ---------- 
                                                                            
Cash flows from operating activities                                        
  Net income                                         $   36,106  $   25,447 
  Adjustments to reconcile net income to net cash                           
   provided by operating activities                                         
    Depreciation                                         12,429      10,660 
    Amortization of intangibles                          16,278       7,175 
    Loss on debt extinguishment                           1,304           - 
    Deferred income taxes                                23,559       1,666 
    Stock-based compensation                              5,525       3,611 
    Accretion of debt discount                            3,455       1,865 
    Changes in operating assets and liabilities                             
      Accounts receivable                               (33,419)       (551)
      Inventories                                       (49,173)     (1,097)
      Prepaid expenses and other                          1,788         170 
      Accounts payable and accrued liabilities           33,315     (20,558)
      Other, net                                          2,593        (855)
                                                     ----------  ---------- 
        Net cash provided by operating activities    $   53,760  $   27,533 
                                                                            
Cash flows from investing activities                                        
  Capital expenditures                                  (11,566)     (9,013)
  Acquisition, net of cash acquired                     (15,985)   (364,012)
  Other                                                   2,500           - 
                                                     ----------  ---------- 
        Net cash used in investing activities        $  (25,051) $ (373,025)
                                                                            
Cash flows from financing activities                                        
  Proceeds from exercise of stock options                   447         340 
  Borrowings under revolving credit facilities              910     205,786 
  Payments under revolving credit facilities               (910)   (270,786)
  Principal payments under capital lease obligations     (1,309)     (1,388)
  Proceeds from issuance of convertible senior notes          -     145,500 
  Proceeds from issuance of term loan credit                                
   facility, net of issuance costs                            -     292,500 
  Principal payments under term loan credit facility    (42,135)     (1,500)
  Principal payments under industrial revenue bond         (265)          - 
  Debt issuance costs paid                                 (981)     (5,065)
  Stock repurchase                                          (35)       (564)
                                                     ----------  ---------- 
        Net cash (used in) provided by financing                            
         activities                                  $  (44,278) $  364,823 
                                                     ----------  ---------- 
                                                                            
Net (decrease) increase in cash                      $  (15,569) $   19,331 
Cash at beginning of period                              81,449      19,976 
                                                     ----------  ---------- 
Cash at end of period                                $   65,880  $   39,307 
                                                     ==========  ========== 
                                                                            
                                                                            
                                                                            
                         WABASH NATIONAL CORPORATION                        
                RECONCILIATION OF GAAP FINANCIAL MEASURES TO                
                         NON-GAAP FINANCIAL MEASURES                        
              (Dollars in thousands, except per share amounts)              
                                 (Unaudited)                                
                                                                            
Operating EBITDA:                                                           
                                                                  Twelve    
                      Three Months Ended   Nine Months Ended   Months Ended 
                         September 30,       September 30,    September 30, 
                      ------------------  ------------------  ------------- 
                         2013     2012      2013      2012         2013     
                      --------- --------  --------  --------  ------------- 
Net income            $  16,236 $ 18,441  $ 36,106  $ 25,447  $     116,290 
Income tax expense                                                          
 (benefit)               10,737    1,246    23,968     2,023        (35,023)
Interest expense          6,252    7,760    20,364    13,934         28,154 
Depreciation and                                                            
 amortization             9,400    7,003    28,707    17,835         36,437 
Stock-based                                                                 
 compensation             1,617    1,460     5,525     3,611          7,063 
Acquisition expenses                                                        
 and related charges         26    1,996       883    16,974          1,218 
Other non-operating                                                         
 expense (income)           605     (211)   (1,300)     (151)        (1,052)
                      --------- --------  --------  --------  ------------- 
Operating EBITDA      $  44,873 $ 37,695  $114,253  $ 79,673  $     153,087 
                      ========= ========  ========  ========  ============= 
                                                                            
                              Three Months Ended                            
                      ----------------------------------                    
                      December 31,  March 31,   June 30,                    
                          2012         2013       2013                      
                      ------------  ---------  ---------                    
Net income            $     80,184  $   5,735  $  14,135                    
Income tax (benefit)                                                        
 expense                   (58,991)     3,824      9,407                    
Interest expense             7,790      7,535      6,577                    
Depreciation and                                                            
 amortization                7,730      9,776      9,531                    
Stock-based                                                                 
 compensation                1,538      1,884      2,024                    
Acquisition expenses                                                        
 and related charges           335        618        239                    
Other non-operating                                                         
 expense (income)              248     (2,238)       333                    
                      ------------  ---------  ---------                    
Operating EBITDA      $     38,834  $  27,134  $  42,246                    
                      ============  =========  =========                    
Adjusted Earnings:                                                          
                          Three Months Ended     Nine Months Ended September
                            September 30,                    30,            
                     --------------------------- ---------------------------
                          2013          2012          2013          2012    
                     ------------- ------------- ------------- -------------
                              Per           Per           Per           Per 
                        $    Share    $    Share    $    Share    $    Share
                     ------- ----- ------- ----- ------- ----- ------- -----
                                                                            
Net Income           $16,236 $0.24 $18,441 $0.27 $36,106 $0.52 $25,447 $0.37
                                                                            
Adjustments:                                                                
  Loss on debt                                                              
   extinguishment,                                                          
   net of taxes          364  0.01       -     -     784  0.01       -     -
  Acquisition                                                               
   expenses, net of                                                         
   taxes                  16     -     172     -     531  0.01  14,074  0.21
  Impact of acquired                                                        
   profit in                                                                
   inventories and                                                          
   short term                                                               
   intangible                                                               
   amortization            -     -   2,274  0.03       -     -   3,650  0.05
                     ------- ----- ------- ----- ------- ----- ------- -----
                                                                            
Adjusted earnings    $16,616 $0.24 $20,887 $0.30 $37,421 $0.54 $43,171 $0.63
                     ======= ===== ======= ===== ======= ===== ======= =====
                                                                            
                                         Three Months Ended                 
                        ----------------------------------------------------
                         December 31, 2012   March 31, 2013   June 30, 2013 
                        ------------------  --------------- ----------------
                                     Per              Per              Per  
                            $       Share      $     Share     $      Share 
                        ---------  -------  ------- ------- ------- --------
                                                                            
Net Income              $  80,184  $  1.17  $ 5,735 $  0.08 $14,135 $   0.21
                                                                            
Adjustments:                                                                
  Income tax benefit      (58,991)   (0.86)       -       -       -        -
  Loss on debt                                                              
   extinguishment, net                                                      
   of taxes                     -        -        -       -     419     0.01
  Acquisition expenses,                                                     
   net of taxes               335        -      371    0.01     143        -
  Impact of acquired                                                        
   profit in inventories                                                    
   and short term                                                           
   intangible                                                               
   amortization               150        -        -       -       -        -
                        ---------  -------  ------- ------- ------- --------
                                                                            
Adjusted earnings       $  21,678  $  0.32  $ 6,106 $  0.09 $14,697 $   0.21
                        =========  =======  ======= ======= ======= ========

  
Press Contact:
Dana Stelsel
Corporate Communications Manager
(765) 771-5766 
Investor Relations:
Jeff Taylor
Vice President, Acting CFO & Treasurer
(765) 771-5310 
 
 
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