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Wabash National Corp.$14.80($.05)(.34%)

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 Wabash National Corporation Announces Third Quarter 2018 Results; Continued Strong Demand Drives Backlog to Record Levels
   Tuesday, October 30, 2018 4:40:00 PM ET
  • Net sales of $553 million is the second highest quarter in company history and a 30 percent increase from prior year
  • Backlog increased 80 percent to $1.3 billion compared to the prior year
  • Gross profit increased 7 percent compared to the prior year
  • Third quarter GAAP and non-GAAP earnings of $0.08 and $0.29 per diluted share, respectively
  • Company reaffirms full-year 2018 guidance for new trailer shipments of 60,000 to 62,000 trailers and GAAP and non-GAAP earnings of $1.41 to $1.46 per diluted share and $1.50 to $1.55 per diluted share, respectively

LAFAYETTE, Ind., Oct. 30, 2018 (GLOBE NEWSWIRE) --  Wabash National Corporation (NYSE: WNC), a diversified industrial manufacturer and a leading producer of semi-trailers, truck bodies and liquid transportation systems, today reported results for the quarter ending September 30, 2018.

Net sales for the third quarter 2018 increased 30 percent to $553 million from $425 million in the prior year quarter.  In addition to the favorable impact of the inclusion of Supreme Industries, Inc. (“Supreme”), acquired at the end of the third quarter of 2017, each of the Company’s three segments contributed to the strong top-line growth as market demand remained strong.  Gross profit increased $4.2 million and profit margin decreased 250 basis points as compared to the prior year period.  The decrease in the profit margin was due primarily to higher material and component costs, supplier disruptions leading to production inefficiencies and delays in shipments, and higher labor instability that continued to create additional cost pressures at many of the Company’s facilities.  Operating income decreased 38 percent to $16.5 million compared to operating income of $26.6 million for the third quarter 2017.  Excluding the impact of impairment charges in 2018 and acquisition expenses in 2017, operating income decreased 19 percent to $28.5 million compared to $35.3 million for the third quarter of 2017.

“The third quarter was a difficult quarter for the Company as a whole,” explained Brent Yeagy, president and chief executive officer. “All three of our reporting segments faced increasing operating pressures which negatively impacted our financial results.  Net sales and operating performance metrics were negatively impacted in the quarter by the strong freight demand market impacting shipments and availability of chassis and other components, as well as a higher commodity cost environment and the continued tight labor market in many of the locations we operate.  Despite these tough operating environments, we generated quarterly net sales of $553 million, which is 30 percent higher than the previous year and represents the second highest top-line performance in the Company’s 33-year history.  The year-over-year growth is primarily attributable to the addition of Supreme and strong market demand in all three segments.” 

Mr. Yeagy continued, “Overall, the continued strong market demand has driven our backlog to a new record level of $1.3 billion, an increase of 80 percent compared to the prior year quarter.  Trailer and truck body demand has remained strong continuing the trend from the previous quarters and supporting our belief in the growing secular demand in e-commerce and home delivery.  We continue to take steps to reduce the margin impact of U.S. tariff policy, raw material inflation, supply base disruptions and a very tight labor market on our business for the remainder of 2018 and into 2019.  Looking forward, we expect sequential improvement in the fourth quarter operating results as we manage the various challenges impacting our business, and as the core trailer business expects stronger pricing and a more favorable sales mix.  As a result, we are maintaining our full-year guidance for 2018 new trailer shipments to 60,000 to 62,000 units and GAAP and non-GAAP earnings of $1.41 to $1.46 per diluted share and $1.50 to $1.55 per diluted share, respectively.”

Net income for the third quarter 2018 was $4.7 million, or $0.08 per diluted share, compared to the third quarter 2017 net income of $18.9 million, or $0.30 per diluted share.  Third quarter 2018 non-GAAP adjusted earnings were $16.5 million, or $0.29 per diluted share, a $4.7 million decrease compared to the prior year period.  Non-GAAP adjusted earnings for the third quarter 2018 excludes a $12.0 million non-cash impairment charge related to goodwill and long-lived assets in our Diversified Products segment and discrete tax charges incurred related to the deductibility of executive compensation.  Non-GAAP adjusted earnings for the third quarter 2017 excludes $8.7 million of one-time acquisition expenses related to the purchase of Supreme and gains realized on the transition of former branch facilities to third-party dealers. 

Operating EBITDA, a non-GAAP measure that excludes the effects of certain items, for the third quarter 2018 was $41.9 million, a decrease of $4.7 million compared to operating EBITDA for the prior year period.  On a trailing twelve-month basis, net sales totaled $2.2 billion, generating operating EBITDA of $190.8 million, or 8.7 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,
  2017   2017   2018   2018   2018 
           
Net Sales $  425,098  $  543,444  $  491,319  $  612,690  $  553,073  
           
Gross Profit Margin  14.3%  13.4%  13.1%  13.9%  11.8%
           
Income from Operations $  26,591  $  35,293  $  25,656  $  46,041  $  16,513  
           
Income from Operations Margin  6.3%  6.5%  5.2%  7.5%  3.0%
           
Net Income $  18,947  $  49,356  $  21,272  $  31,902  $  4,664  
           
Diluted EPS $  0.30  $  0.80  $  0.35  $  0.54  $  0.08  
           
Non-GAAP Measures(1):          
Operating EBITDA $  46,561  $  51,062  $  38,984  $  58,881  $  41,899  
           
Operating EBITDA Margin  11.0%  9.4%  7.9%  9.6%  7.6%
           
Adjusted Earnings $  21,214  $  22,250  $  16,857  $  29,186  $  16,509  
           
Adjusted Diluted EPS $  0.34  $  0.36  $  0.28  $  0.49  $  0.29  

Notes:

  1. See “Non-GAAP Measures” below for explanation of the non-GAAP results included above.

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 2018 and 2017.  Final Mile Products segment did not exist as a separate segment in the third quarter of 2017; therefore, only 2018 highlights are shown.  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 Final Mile
Products
            
Three months ended Septemeber 30  2018   2017   2018   2017   2018 
New trailers shipped    14,450      13,350     700      550     -  
Net sales $  368,342   $  339,492  $  102,361   $  88,850  $  87,049  
Gross profit $  39,137   $  43,849  $  17,018   $  17,378  $  8,954  
Gross profit margin  10.6%  12.9%  16.6%  19.6%  10.3%
Income (loss) from operations $  32,453   $  36,319  $  (6,346) $  5,178  $  (1,495)
Income (loss) from operations margin  8.8%  10.7%   (6.2)%  5.8%   (1.7)%

Commercial Trailer Products’ net sales for the third quarter increased $28.9 million, or 8 percent, to $368 million.  Gross profit margin for the third quarter decreased 230 basis points as compared to the prior year period primarily due to increases in material costs, higher labor costs due to tight labor markets, supplier induced production interruptions, and an unfavorable sales mix.  Operating income decreased $3.9 million, or 11 percent, from the third quarter last year to $32.5 million, or 8.8 percent of net sales.

Diversified Products’ net sales for the third quarter were $102 million, an increase of $13.5 million, or 15 percent, as compared to the prior year, due primarily to the increased demand for liquid tank trailers.  Gross profit and profit margins as compared to the prior year period decreased $0.4 million and 300 basis points, respectively, primarily due to increased material costs and labor inefficiencies, including higher overtime levels to meet strong demand requirements and supplier induced production interruptions.  Operating income in the third quarter of 2018, excluding the $12.0 million non-cash impairment charge, was $5.6 million, or 5.5 percent of net sales, representing an increase of $0.5 million as compared to the prior year period. 

Final Mile Products’ net sales for the third quarter totaled $87 million.  Gross profit and gross profit margin for the third quarter were $9.0 million and 10.3 percent, respectively.  Operating loss was $1.5 million, or 1.7 percent of net sales.  Operating results were negatively impacted during the quarter by higher material costs and chassis availability issues causing production inefficiencies and delayed shipments. 



Non-GAAP Measures

In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), the financial information included in this release contains non-GAAP financial measures, including operating EBITDA, 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, charges incurred in connection with the acquisition and integration of Supreme, impairment charges, 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, 2018 and 2017 reflect adjustments for charges incurred in connection with acquisition and integration of Supreme, the losses attributable to the Company’s extinguishment of debt, impairment charges, executive severance costs, income or losses recognized on the sale of former branch locations, adjustments related to the Company’s deferred tax assets as a result of IRS guidance on application of the Tax Cuts and Jobs Act of 2017, and reversal of reserves for uncertain tax positions.  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.

The Company provides guidance on adjusted earnings per diluted share, a non-GAAP financial measure.  Adjusted earnings per diluted share reflect adjustments for certain costs, expenses, other charges, gains or income, that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities.  Included in the tables following this release is a reconciliation of the non-GAAP guidance provided to the most comparable GAAP measure. 

Third Quarter 2018 Conference Call
Wabash National will conduct a conference call to review and discuss its third quarter results on October 31, 2018 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, 2019.  Meeting access also will be available via conference call at 844-778-4139, participant code 1851979.

About Wabash National Corporation

Headquartered in Lafayette, Indiana, Wabash National Corporation (NYSE: WNC) is a diversified industrial manufacturer and a leading producer of semi-trailers, truck bodies 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 and truck body shipments, backlog, expectations regarding demand levels for trailers, truck bodies, non-trailer equipment and our other diversified product offerings, pricing, profitability and earnings, cash flow and liquidity, opportunity to capture higher margin sales, new product innovations, our growth and diversification strategies, our expectations for improved financial performance during the course of the year and our expectations with regards to capital allocation.  These and the Company’s other forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements.  Without limitation, these risks and uncertainties include the continued integration of Supreme into the Company’s business, adverse reactions to the transaction by customers, suppliers or strategic partners, uncertain economic conditions including the possibility that customer demand may not meet our expectations, increased competition, reliance on certain customers and corporate partnerships, risks of customer pick-up delays, shortages and costs of raw materials including the impact of tariffs or other international trade developments, risks in implementing and sustaining improvements in the Company’s manufacturing operations and cost containment, dependence on industry trends and timing, supplier constraints, labor costs and availability, customer acceptance of and reactions to pricing changes and costs of indebtedness.  Readers should review and consider the various disclosures made by the Company in this press release and in the Company’s reports to its stockholders and periodic reports on Forms 10-K and 10-Q.

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
          
   Three Months Ended
September 30,
 Nine Months Ended
September 30,
    2018   2017   2018   2017 
          
Net sales $  553,073  $  425,098  $  1,657,082  $  1,223,717 
Cost of sales    487,911     364,134     1,442,487     1,035,718 
 Gross profit    65,162     60,964     214,595     187,999 
                  
General and administrative expenses    23,033     16,075     73,920     53,511 
Selling expenses    8,690     5,497     25,591     17,568 
Amortization of intangibles    4,937     4,097     14,818     12,693 
Acquisition expenses    -      8,704     68     8,704 
Impairment    11,989     -      11,989     -  
 Income from operations    16,513     26,591     88,209     95,523 
                  
Other income (expense):                
 Interest expense    (7,044)    (3,187)    (21,649)    (9,065)
 Other, net    533     6,271     12,486     7,929 
 Income before income taxes    10,002     29,675     79,046     94,387 
Income tax expense    5,338     10,728     21,209     32,321 
Net income $  4,664  $  18,947  $  57,837  $  62,066 
Dividends declared per share $  0.075  $  0.06  $  0.225  $  0.18 
Basic net income per share $  0.08  $  0.32  $  1.01  $  1.04 
Diluted net income per share $  0.08  $  0.30  $  0.98  $  0.99 
                  
Comprehensive income (loss):                
 Net income $  4,664  $  18,947  $  57,837  $  62,066 
 Foreign currency translation adjustment    200     57     74     829 
 Unrealized holding loss on investments    6     -      (103)    
 Unrealized gain (loss) on derivative instruments    (31)    -      (31)    -  
Net comprehensive income $  4,839  $  19,004  $  57,777  $  62,895 
                  
                  
Basic net income per share:                
 Net income applicable to common stockholders $  4,664  $  18,947  $  57,837  $  62,066 
 Weighted average common shares outstanding    56,798     58,994     57,486     59,675 
 Basic net income per share $  0.08  $  0.32  $  1.01  $  1.04 
                  
Diluted net income per share:                
 Net income applicable to common stockholders $  4,664  $  18,947  $  57,837  $  62,066 
                  
 Weighted average common shares outstanding    56,798     58,994     57,486     59,675 
 Dilutive shares from assumed conversion of convertible senior notes    -      1,701     676     1,713 
 Dilutive stock options and restricted stock    944     1,541     1,056     1,526 
 Diluted weighted average common shares outstanding    57,742     62,236     59,218     62,914 
 Diluted net income per share $  0.08  $  0.30  $  0.98  $  0.99 
                  


WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Dollars in thousands)
(Unaudited)
            
   Commercial  Diversified Final Mile Corporate and  
Three Months Ended September 30, Trailer Products Products Products Eliminations Consolidated
 2018          
New trailers shipped    14,450    700     -      -      15,150
Used trailers shipped    150    50     -      -      200
            
New Trailers $  354,003 $  44,399  $  -   $  -   $  398,402
Used Trailers    1,888    775     -      -      2,663
Components, parts and service    8,090    29,064     2,304     (4,676)    34,782
Equipment and other    4,361    28,123     84,745     (3)    117,226
 Total net external sales $  368,342 $  102,361  $  87,049  $  (4,679) $  553,073
                    
Gross profit $  39,137 $  17,018  $  8,954  $  53  $  65,162
Income (Loss) from operations $  32,453 $  (6,346) $  (1,495) $  (8,099) $  16,513
                    
 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 $  5,178  $  -   $  (14,906) $  26,591
                    
Nine Months Ended September 30,                  
 2018                  
New trailers shipped    42,750    1,900     -      -      44,650
Used trailers shipped    850    100     -      -      950
                    
New Trailers $  1,049,452 $  115,840  $  -   $  -   $  1,165,292
Used Trailers    8,794    2,489     -      -      11,283
Components, parts and service    25,780    94,958     7,340     (16,529)    111,549
Equipment and other    14,245    78,362     276,377     (26)    368,958
 Total net external sales $  1,098,271 $  291,649  $  283,717  $  (16,555) $  1,657,082
            
Gross profit $  123,173 $  51,008  $  41,409  $  (994) $  214,596
Income (Loss) from operations $  102,718 $  3,078  $  9,372  $  (26,959) $  88,209
                    
 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


WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
       
    September 30, December 31,
     2018  2017
    (Unaudited)  
ASSETS
Current assets    
 Cash and cash equivalents $  104,121 $  191,521
 Accounts receivable    187,558    146,836
 Inventories    232,450    180,735
 Prepaid expenses and other  72,558  57,299
  Total current assets  596,687  576,391
         
Property, plant and equipment  198,876  195,363
         
Goodwill   311,044  317,464
         
Intangible assets  215,136  237,030
         
Other assets  28,464  25,265
    $1,350,207 $1,351,513
         
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities      
 Current portion of long-term debt $1,880 $46,020
 Current portion of capital lease obligations  294  290
 Accounts payable  185,938  108,448
 Other accrued liabilities  120,310  128,910
  Total current liabilities  308,422  283,668
         
Long-term debt  503,309  504,091
         
Capital lease obligations  792  1,012
         
Deferred income taxes  36,766  36,955
         
Other noncurrent liabilities  21,031  19,724
         
Stockholders' equity  479,887  506,063
    $1,350,207 $1,351,513
         


WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
 
 Nine Months Ended September 30,
  2018   2017 
    
Cash flows from operating activities     
 Net income$  57,837  $  62,066 
 Adjustments to reconcile net income to net cash provided by operating activities   
 Depreciation   15,701     12,709 
  Amortization of intangibles   14,818     12,693 
  Net gain on the sale of assets     (10,164)    (8,060)
  Deferred income taxes   (122)    59 
  Loss on debt extinguishment   174     767 
 Stock-based compensation   8,479     8,311 
  Impairment       11,989     -  
  Non-cash interest expense   1,426     1,569 
 Changes in operating assets and liabilities   
 Accounts receivable   (48,531)    26,185 
 Inventories   (66,089)    (77,923)
 Prepaid expenses and other   (3,265)    (187)
 Accounts payable and accrued liabilities   76,602     23,702 
 Other, net (2,171)  (772)
 Net cash provided by operating activities$56,684  $61,119 
                
Cash flows from investing activities         
 Capital expenditures (20,344)  (15,401)
 Proceeds from the sale of property, plant, and equipment  17,775   12,608 
 Acquisition, net of cash acquired   -   (323,487)
 Other, net     3,060   6,230 
 Net cash provided by (used in) investing activities$491  $(320,050)
                
Cash flows from financing activities         
 Proceeds from exercise of stock options   961   5,781 
 Borrowings under senior notes   -   325,000 
 Dividends paid     (13,566)  (11,547)
 Borrowings under revolving credit facilities  582   520 
 Payments under revolving credit facilities   (582)  (520)
 Principal payments under capital lease obligations  (216)  (416)
 Proceeds from issuance of term loan credit facility  -   189,470 
 Principal payments under term loan credit facility  (1,410)  (198,058)
 Principal payments under industrial revenue bond  (93)  (446)
 Debt issuance costs paid    -   (6,472)
 Stock repurchase     (44,433)  (46,633)
 Convertible senior notes repurchase     (80,200)    (7,513)
 Net cash (used in) provided by financing activities$(138,957) $249,166 
                
Net decrease in cash, cash equivalents, and restricted cash$  (81,782) $  (9,765)
Cash, cash equivalents, and restricted cash at beginning of period 191,521   163,467 
Cash, cash equivalents, and restricted cash at end of period$109,739  $153,702 
                


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,
        
  2018   2017   2018   2017         
Net income$  4,664  $  18,947  $  57,837  $  62,066         
Income tax expense   5,338     10,728     21,209     32,321         
Interest expense   7,044     3,187     21,649     9,065         
Depreciation and amortization   10,308     8,386     30,519     25,402         
Stock-based compensation   3,089     2,881     8,479     8,311         
Acquisition expenses   -      8,704     68     8,704         
Impairment   11,989     -      11,989     -          
Other non-operating income (533)  (6,271)  (12,486)  (7,929)        
Operating EBITDA$41,899  $46,561  $139,264  $137,941         
                
                
 Three Months Ended Trailing
Twelve
Months
      
 December 31,
2017
 March 31,
2018
 June 30,
2018
 September 30,
2018
 September 30,
2018
      
Net income$49,356  $21,272  $31,902  $4,664   107,194       
Income tax expense (21,204)  4,846   11,025   5,338   5       
Interest expense 7,335   7,454   7,151   7,044   28,984       
Depreciation and amortization 9,651   10,104   10,107   10,308   40,170       
Stock-based compensation 2,117   2,657   2,733   3,089   10,596       
Acquisition expenses 4,002   567   -   -   4,569       
Impairment -   -   -   11,989   11,989       
Other non-operating income (194)  (7,916)  (4,037)  (533)  (12,680)      
Operating EBITDA$51,062  $38,984  $58,881  $41,899  $190,826       
                
                
Adjusted Earnings2:               
 Three Months Ended September 30, Nine Months Ended September 30,
  2018   2017   2018   2017 
 $ Per Share $ Per Share $ Per Share $ Per Share
                
Net income$  4,664  $  0.08  $  18,947  $  0.30  $  57,837  $  0.98  $  62,066  $  0.99 
                
Adjustments:               
Facility transactions3   (150)    -      (5,165)    (0.08)    (10,779)    (0.18)    (6,820)    (0.11)
Loss on debt extinguishment   -      -      3     -      174     -      768     0.01 
  Acquisition expenses and related charges   -      -      8,704     0.14     819     0.01     8,704     0.14 
Impairment   11,989     0.21     -      -      11,989     0.20     
Executive severance expense   -      -      -      -      -      -      238     -  
Tax effect of aforementioned items   (3,078)    (0.05)    (1,275)    (0.02)    (573)    (0.01)    (1,040)    (0.02)
Tax reform and other discrete tax adjustments   3,084     0.05     -      -      3,084     0.05     -      -  
                
Adjusted earnings$16,509  $0.29  $21,214  $0.34  $62,551  $1.06  $63,916  $1.02 
                
Weighted Average # of Diluted Shares O/S 57,742     62,236     59,209     62,914   
                
                
 Three Months Ended    
 December 31, 2017 March 31, 2018 June 30, 2018    
 $ Per Share $ Per Share $ Per Share    
                
Net income$49,356  $0.80  $21,272  $0.35  $31,902  $0.54     
                
Adjustments:               
Facility transactions3 274   -   (7,123)  (0.12)  (3,506)  (0.06)    
Loss on debt extinguishment 32   -   174   -   -   -     
Acquisition expenses and related charges 6,308   0.10   983   0.02   (164)  -     
Tax effect of aforementioned items (2,381)  (0.04)  1,551   0.03   -   -     
Tax reform and other discrete tax adjustments (31,339)  (0.51)  -   -   954   0.02     
                
Adjusted earnings$22,250  $0.36  $16,857  $0.28  $29,186  $0.49     
                
Weighted Average # of Diluted Shares O/S 61,567     60,850     59,274       
                
1Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, acquisition expenses and related charges, impairments, and other non-operating income and expense.     
                
2Adjusted earnings and adjusted earnings per diluted share reflect adjustments for charges incurred in connection with acquisition and integration of Supreme, the losses attributable to the Company’s extinguishment of debt, impairment charges, executive severance costs, income or losses recognized on the sale and/or closure of former Company locations, adjustments related to the Company’s deferred tax assets as a result of IRS guidance on application of the Tax Cuts and Jobs Act of 2017, and reversal of reserves for uncertain tax positions.   
                
3Facility transactions in 2017 and 2018 relate to gains and/or losses incurred for the sale or closure of former Company locations.   


WABASH NATIONAL CORPORATION
RECONCILIATION OF GAAP FINANCIAL MEASURES TO
NON-GAAP FINANCIAL MEASURES
(Unaudited)
        
Adjusted Earnings Guidance4:       
     The Twelve Months Ending
December 31, 2018
   Per Share Range
     Low High
Earnings per diluted share    $  1.41  $  1.46 
        
Adjustments:       
Facility transactions       (0.17)    (0.17)
Impairment of goodwill and other long-lived assets       0.21     0.21 
Acquisition expenses and related charges       0.01     0.01 
Tax effect of aforementioned items       (0.01)    (0.01)
Tax reform and other discrete tax adjustments     0.05   0.05 
        
Adjusted earnings per diluted share    $1.50  $1.55 
        
   
        
        
4The Company provides guidance on adjusted earnings per diluted share, a  non-GAAP financial measure.  Adjusted earnings per diluted share reflect adjustments for certain costs, expenses, other charges, gains or income, that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities.  The following reconciles adjusted earnings per share to the most comparable GAAP measure.  Adjustments reflected in the adjusted earnings per share guidance presented include charges incurred in connection with acquisition and integration of Supreme, impairment charges, income or losses recognized on the sale and/or closure of former Company locations, adjustments related to the Company’s deferred tax assets as a result of IRS guidance on application of the Tax Cuts and Jobs Act of 2017, and reversal of reserves for uncertain tax positions.

Media Contact:
Dana Stelsel
Director, Corporate Communications
(765) 771-5766
dana.stelsel@wabashnational.com

Investor Relations:
Jeff Taylor
Senior Vice President, Chief Financial Officer
(765) 771-5310
jeff.taylor@wabashnational.com

Wabash National Corporation Logo

Source: Wabash National Corporation


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