Wabash National Corporation Announces First Quarter 2014 Results

Wabash National Corporation Announces First Quarter 2014 Results

LAFAYETTE, Ind., April 28, 2014 (GLOBE NEWSWIRE) -- 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 first quarter ended March 31, 2014. Highlights
include:

  *Net sales of $358 million for first quarter 2014, up 10 percent over prior
    year
  *Operating income of $19.5 million for first quarter 2014, up 31 percent
    over prior year
  *Non-GAAP adjusted earnings per share improves 33 percent from prior year
    to $0.12 per diluted share

Net income for the first quarter of 2014 was $7.3 million, or $0.10 per
diluted share, compared to the first quarter 2013 net income of $5.7 million,
or $0.08 per diluted share. First quarter 2014 non-GAAP adjusted earnings were
$8.3 million, or $0.12 per diluted share, after excluding a $1.0 million
charge related to a change in statutory income tax rates. The Company's prior
year period results included the impact of one-time costs related to the
acquisitions of Walker Group Holdings, LLC ("Walker") in May 2012 and certain
assets of Beall Corporation ("Beall") in February 2013 totaling $0.6 million,
or $0.01 per diluted share. Excluding the impact of these items, non-GAAP
adjusted earnings for the quarter ended March 31, 2013 were $6.1 million, or
$0.09 per diluted share.

For the first quarter of 2014, the Company's net sales increased 10 percent to
$358 million from $324 million in the prior year quarter, and operating income
increased 31 percent to $19.5 million compared to operating income of $14.9
million for the first quarter of 2013. Operating EBITDA, a non-GAAP measure
that 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 first quarter of 2014 was $30.6 million, an increase of $3.5 million
compared to Operating EBITDA for the previous year period. On a trailing
twelve month basis, the Company's net sales increased to $1.7 billion
generating Operating EBITDA of $153.4 million, or 9.2 percent of net sales.
Continued improvement in operating performance is attributable to the
successful execution of the Company's growth and diversification strategy as
well as a disciplined approach to improving profitability. Through these
initiatives the Company has enhanced its growth and margin profile and now
derives its revenues and earnings from a broad array of products, customers,
end markets and geographies.

The following is a summary of select operating and financial results for the
past five quarters:

             Three Months Ended
             March 31,      June 30,       September      December    March 31,  
                                              30,             31,
(Dollars in   2013           2013           2013           2013        2014       
thousands)
                                                                            
Net Sales     $324,229     $413,126     $439,977     $458,354  $358,120 
                                                                            
Gross Profit  13.0%          14.2%          14.0%          11.5%       13.0%      
Margin
                                                                            
Income from   $14,856  ^(1) $30,452  ^(1) $33,830  ^(1) $24,053   $19,465  
Operations
                                                                            
Net Income    $5,735   ^(1) $14,135  ^(1) $16,236  ^(1) $10,423   $7,296   
                                                                            
Diluted EPS   $0.08        $0.20        $0.23        $0.15     $0.10    
                                                                            
Non-GAAP                                                                     
Measures^(2):
Operating     $27,134      $42,246      $44,873      $35,637   $30,618  
EBITDA
                                                                            
Operating     8.4%           10.2%          10.2%          7.8%        8.5%       
EBITDA Margin
                                                                            
Adjusted      $6,106       $14,697      $16,616      $10,770   $8,337   
Earnings
                                                                            
Adjusted      $0.09        $0.21        $0.24        $0.15     $0.12    
Diluted EPS

Notes:
(1) Quarterly Income from Operations and Net Income include charges of $0.6
million, $0.2 million and less than $0.1 million for the first, second and
third quarters of 2013, respectively, in connection with the Company's
acquisitions of Walker and certain assets of Beall.
(2) See "Non-GAAP Measures" below for explanation of the non-GAAP results
included above.

Dick Giromini, president and chief executive officer, stated, "We are very
pleased with our first quarter performance and the strong start to the current
year across all of our operating segments.We maintained the momentum we
generated in 2013 and further validated the transformative nature of our
growth and diversification initiatives.We generated strong growth and healthy
margins across each of our three operating segments, which gives us confidence
in our business as we look to the remainder of 2014."

Mr. Giromini continued, "New trailer shipments for the first quarter were
approximately 9,900, at the top end of our previous guidance of 9,000 to
10,000 trailers.We were encouraged by the overall strength of the demand in
the first quarter taking into account the difficulties most of our customers
faced due to the extreme weather conditions throughout much of the country,
which limited our ability to ship trailers in the quarter.The recent upward
adjustments to total trailer shipments and production by ACT Research and FTR,
respectively, further support the strength in trailer demand and substantiate
our prior guidance for top line growth compared to last year.As such, we
affirm our full-year trailer shipment guidance of 47,000 to 50,000 units.Our
backlog remains healthy at approximately $791 million as of March 31, 2014, an
increase of approximately $117 million, or 17 percent, from March 31,
2013.Additionally, current industry forecasts point to strong demand levels
with projections well above replacement demand and exceeding previous year
levels.Based on these factors coupled with direct customer feedback regarding
their needs, we continue to believe 2014 has the potential to exceed the
record performances achieved last year."

First 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 first quarter of 2014
and 2013, respectively.A complete disclosure of the results by individual
segment is included in the tables following this release.

(dollars in thousands)        Commercial      Diversified 
                             Trailer Products Products    Retail
Three months ended March 31,                             
2014                                                     
New trailers shipped          9,200           800        800
Net sales                     $227,450       $119,949  $45,636
Gross profit                  $14,941        $25,439   $5,381
Gross profit margin           6.6%             21.2%       11.8%
Income from operations        $8,931         $12,857   $1,050
Income from operations margin 3.9%             10.7%       2.3%
                                                        
2013                                                     
New trailers shipped          8,000           600        600
Net sales                     $198,077       $111,994  $40,843
Gross profit                  $11,634        $25,928   $4,880
Gross profit margin           5.9%             23.2%       11.9%
Income from operations        $5,320         $13,519   $873
Income from operations margin 2.7%             12.1%       2.1%

Commercial Trailer Products' net sales increased $29 million, or 14.8 percent,
on shipments of 9,200 trailers, or 1,200 more trailers than the prior year
period.This increase in revenue was primarily due to the 15.0 percent
increase in trailer shipments during the quarter, offset by a 2.7 percent
reduction in average selling prices compared to the prior year period due to
customer and product mix.Driven by higher volumes, gross profit and gross
profit margin increased $3.3 million and 70 basis points, respectively, as
compared to the same period last year.Operating income increased by $3.6
million to $8.9 million from the first quarter last year, due to increased
volume and continued operational improvements.

Diversified Products' net sales increased $8 million, or 7.1 percent,
primarily attributed to increased tank trailer shipments as compared to the
previous year period.Gross profit and gross profit margin declined $0.5
million and 200 basis points, respectively, compared to the prior year period,
primarily due to higher raw material costs related to our wood flooring
operations.Operating income decreased $0.7 million as compared to the same
period last year due to higher material costs and increased intangible
amortization charges associated with the recent acquisitions of Walker and
certain assets of Beall.

Retail's net sales of $46 million increased 11.7 percent compared with the
prior year period, primarily due to increased shipments of new trailers, as
well as continued strong demand for parts and services.Gross profit margin of
11.8 percent was consistent with the previous year period as higher volumes
offset increased cost of services supporting our strategic growth
initiatives.Operating income increased $0.2 million during the first quarter
of 2014 as compared to the same period last year as increased volumes were
slightly offset by higher selling and administrative expenses related to our
strategic growth initiatives.

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, losses incurred in connection with the Company's
extinguishment of debt and revaluation of deferred income tax assets due to
changes in statutory tax rates.Management believes providing this measure and
excluding these items facilitate 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.

First Quarter 2014 Conference Call

Wabash National will conduct a conference call to review and discuss its first
quarter results on April 29, 2014, 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 July 22,
2014.Meeting access also will be available via conference call at
888-771-4371, participant code 37103303.

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 specializes in the design and production of dry freight vans,
refrigerated vans, platform trailers, liquid tank trailers, intermodal
equipment, engineered products, and composite products.Its innovative
products are sold under the following brand names: Wabash National^®,
Transcraft^®, Benson^®, DuraPlate^®, ArcticLite^®, Walker Transport, Walker
Defense Group, Walker Barrier Systems, Walker Engineered Products, Brenner^®
Tank, Beall^®, Garsite, Progress Tank, TST^®, Bulk Tank International and
Extract Technology^®. 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
trailer shipments, backlog, and the expectations regarding our growth and
diversification strategies, expectations regarding trailer demand levels, and
our belief that 2014 has the potential to exceed the record performances
achieved in the previous year.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
                                                         March 31,
                                                        2014       2013
                                                                  
Net sales                                                $358,120 $324,229
Cost of sales                                            311,448   282,043
Gross profit                                             46,672    42,186
                                                                  
General and administrative expenses                      14,472    13,675
Selling expenses                                         7,264     7,667
Amortization of intangibles                              5,471     5,370
Acquisition expenses                                     --        618
Income from operations                                   19,465    14,856
                                                                  
Other income (expense):                                            
Interest expense                                         (5,717)   (7,535)
Other, net                                               32        2,238
Income before income taxes                               13,780    9,559
Income tax expense                                       6,484     3,824
Net income                                              $7,296   $5,735
Basic net income per share                               $0.11    $0.08
Diluted net income per share                             $0.10    $0.08
                                                                  
Comprehensive income                                               
Net income                                               $7,296   $5,735
Foreign currency translation adjustment                  161       (255)
Net comprehensive income                                 $7,457   $5,480
                                                                  
                                                                  
Basic net income per share:                                        
Net income applicable to common stockholders             $7,296   $5,735
Undistributed earnings allocated to participating        (61)      (51)
securities
Net income applicable to common stockholders excluding   $7,235   $5,684
amounts applicable to participating securities
Weighted average common shares outstanding               68,669    68,395
Basic net income per share                               $0.11    $0.08
                                                                  
Diluted net income per share:                                      
Net income applicable to common stockholders             $7,296   $5,735
Undistributed earnings allocated to participating        (61)      (51)
securities
Net income applicable to common stockholders excluding             
amounts applicable to participating securities           $7,235   $5,684
                                                                  
Weighted average common shares outstanding               68,669    68,395
Dilutive shares from assumed conversion of convertible   1,591     --
senior notes
Dilutive stock options and restricted stock              828       433
Diluted weighted average common shares outstanding       71,088    68,828
Diluted net income per share                             $0.10    $0.08
                                                                  
                                                                  

WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Dollars in thousands)
(Unaudited)
                                                             
                 Commercial Diversified          Corporate and 
Three Months      Trailer     Products    Retail   Eliminations  Consolidated
Ended March 31,   Products
2014                                                          
New trailers      9,200      800        800      (900)        9,900
shipped
Used trailers     1,700      --        400      --          2,100
shipped
                                                             
New Trailers      $213,436  $54,847   $20,271 $(20,436)   $268,118
Used Trailers     11,248     1,178      3,639    --          16,065
Components, parts 617        23,210     20,973   (3,102)      41,698
and service
Equipment and     2,149      40,714     753      (11,377)     32,239
other
Total net         $227,450  $119,949  $45,636 $(34,915)   $358,120
external sales
                                                             
Gross profit      $14,941   $25,439   $5,381  $911        $46,672
Income (Loss)     $8,931    $12,857   $1,050  $(3,373)    $19,465
from operations
                                                             
2013                                                          
New trailers      8,000      600        600      (600)        8,600
shipped
Used trailers     700        --        300      --          1,000
shipped
                                                             
New Trailers      $188,979  $43,521   $16,943 $(13,976)   $235,467
Used Trailers     5,050      949        2,653    (5)          8,647
Components, parts 2,819      21,061     19,963   (2,558)      41,285
and service
Equipment and     1,229      46,463     1,284    (10,146)     38,830
other
Total net         $198,077  $111,994  $40,843 $(26,685)   $324,229
external sales
                                                             
Gross profit      $11,634   $25,928   $4,880  $(256)      $42,186
Income (Loss)     $5,320    $13,519   $873    $(4,856)    $14,856
from operations
                                                             
                                                             

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
                                                       
                                            March 31,   December 31,
                                            2014        2013
                                            (Unaudited) 
ASSETS                                                  
Current assets                                          
Cash and cash equivalents                    $65,736   $113,262
Accounts receivable                          118,864    120,358
Inventories                                  262,915    184,173
Deferred income taxes                        16,902     21,576
Prepaid expenses and other                   11,197     9,632
Total current assets                         $475,614  $449,001
                                                       
Property, plant and equipment                140,254    142,082
                                                       
Deferred income taxes                        1,044      1,401
                                                       
Goodwill                                     149,950    149,967
                                                       
Intangible assets                            153,746    159,181
                                                       
Other assets                                 11,425     10,613
                                            $932,033  $912,245
                                                       
LIABILITIES AND STOCKHOLDERS' EQUITY                    
Current liabilities                                     
Current portion of long-term debt            $3,250    $3,245
Current portion of capital lease obligations 1,529      1,609
Accounts payable                             129,316    112,151
Other accrued liabilities                    91,008     99,358
Total current liabilities                    $225,103  $216,363
                                                       
Long-term debt                               359,270    358,890
                                                       
Capital lease obligations                    6,584      6,851
                                                       
Deferred income taxes                        2,191      1,234
                                                       
Other noncurrent liabilities                 7,504      6,528
                                                       
Commitments and contingencies                           
                                                       
Stockholders' equity                         331,381    322,379
                                            $932,033  $912,245
                                                       
                                                       

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
                                                                 
                                                 Three Months Ended March 31,
                                                 2014             2013
                                                                 
Cash flows from operating activities                              
Net income                                        $7,296         $5,735
Adjustments to reconcile net income to net cash used in operating  
activities
Depreciation                                      4,042           4,406
Amortization of intangibles                       5,471           5,370
Deferred income taxes                             5,988           3,790
Stock-based compensation                          1,640           1,884
Accretion of debt discount                        1,195           1,126
Changes in operating assets and liabilities                       
Accounts receivable                               1,494           (4,593)
Inventories                                       (78,742)        (46,580)
Prepaid expenses and other                        (1,565)         (83)
Accounts payable and accrued liabilities          8,815           19,563
Other, net                                        311             1,716
Net cash used in operating activities             $(44,055)      $(7,666)
                                                                 
Cash flows from investing activities                              
Capital expenditures                              (2,078)         (2,564)
Acquisition                                       --             (13,860)
Other                                             --             2,418
Net cash used in investing activities             $(2,078)       $(14,006)
                                                                 
Cash flows from financing activities                              
Proceeds from exercise of stock options           1,517           161
Borrowings under revolving credit facilities      175             223
Payments under revolving credit facilities        (175)           (223)
Principal payments under capital lease            (603)           (441)
obligations
Principal payments under term loan credit         (693)           (750)
facility
Principal payments under industrial revenue bond  (117)           (38)
Debt issuance costs paid                          --             (41)
Stock repurchase                                  (1,497)         (35)
Net cash used in financing activities             $(1,393)       $(1,144)
                                                                 
Net decrease in cash and cash equivalents         $(47,526)      $(22,816)
Cash and cash equivalents at beginning of period  113,262         81,449
Cash and cash equivalents at end of period        $65,736        $58,633
                                                                 
                                                                 

WABASH NATIONAL CORPORATION
RECONCILIATION OF GAAP FINANCIAL MEASURES TO
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share amounts)
(Unaudited)
                                                                 
Operating EBITDA:                                                 
                     Three Months Ended                            
                      March 31,
                     2014      2013                                
Net income            $7,296  $5,735                            
Income tax expense    6,484    3,824                              
Interest expense      5,717    7,535                              
Depreciation and      9,513    9,776                              
amortization
Stock-based           1,640    1,884                              
compensation
Acquisition expenses  --      618                                
Other non-operating   (32)     (2,238)                            
income
Operating EBITDA      $30,618 $27,134                           
                                                                 
                                                                 
                     Three Months Ended                             
                     June 30,  September December                   
                                30,       31,
                     2013      2013      2013                       
Net income           $14,135 $16,236 $10,423                  
Income tax expense    9,407    10,737   7,126                     
Interest expense      6,577    6,252    5,944                     
Depreciation and      9,531    9,400    9,629                     
amortization
Stock-based           2,024    1,617    1,955                     
compensation
Acquisition expenses  239      26       --                       
Other non-operating   333      605      560                       
expense
Operating EBITDA      $42,246 $44,873 $35,637                  
                                                                 
                                                                 
Adjusted Earnings:                                                
                     Three Months Ended March 31,                    
                     2014                2013                        
                     $         Per Share $          Per              
                                                     Share
                                                                 
Net Income            $7,296  $0.10   $5,735   $0.08          
                                                                 
Adjustments:                                                      
Revaluation of net
deferred income tax
assets  due to        1,041    0.01     --       --             
changes in statutory
tax rates
Acquisition expenses, --      --      371       0.01            
net of taxes
                                                                 
Adjusted earnings     $8,337  $0.12   $6,106   $0.09          
                                                                 
Weighted Average # of 71,088            68,828                    
Diluted Shares O/S
                                                                 
                                                                 
                     Three Months Ended
                     June 30, 2013       September 30, 2013 December 31, 2013
                     $         Per Share $          Per     $         Per
                                                     Share             Share
                                                                 
Net Income            $14,135 $0.21   $16,236  $0.24 $10,423 $0.15
                                                                 
Adjustments:                                                      
Loss on debt
extinguishment, net   419      0.01     364       0.01   347      --
of taxes
Acquisition expenses, 143      --      16        --    --      --
net of taxes
                                                                 
Adjusted earnings     $14,697 $0.21   $16,616  $0.24 $10,770 $0.15
                                                                 
Weighted Average # of 68,858            69,011           69,625   
Diluted Shares O/S
                                                                 

CONTACT: Media Contact:
         Dana Stelsel
         Corporate Communications Manager
         (765) 771-5766
         dana.stelsel@wabashnational.com
        
         Investor Relations:
         Jeff Taylor
         Senior Vice President and Chief Financial Officer
         (765) 771-5438
         jeff.taylor@wabashnational.com

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