StockSelector.com
  Research, Select, & Monitor Tuesday, October 27, 2020 11:30:29 AM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Wabash National Corp.$14.62($.23)(1.55%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Wabash National Corporation Announces Third Quarter 2019 Results
   Wednesday, November 06, 2019 6:53:00 AM ET
  • Revenue grew 5 percent year-over-year to $581M, a record level for the third quarter
  • Operating margin of 6.6 percent showed substantial year-over-year improvement
  • Final Mile Products grew 30% versus Q3 of 2018 while achieving margin expansion of 580 basis points
  • Earnings Per Share of $0.46
  • Full year 2019 EPS outlook raised to midpoint of $1.67, range narrowed to $1.64 to $1.70 per share

LAFAYETTE, Ind., Nov. 06, 2019 (GLOBE NEWSWIRE) -- Wabash National Corporation (NYSE: WNC), the innovation leader of engineered solutions for the transportation, logistics and distribution industries, today reported results for the quarter ended September 30, 2019.

Net sales for the third quarter 2019 increased 5 percent to $581 million from $553 million in the prior year quarter, as growth was led by the Company’s Final Mile Products and Commercial Trailer Products Segments. Operating income was $38.3 million and the Company achieved a consolidated operating margin of 6.6 percent during the third quarter of 2019, which represents a significant improvement from the third quarter of 2018, highlighting the success of both short and long-term initiatives targeting margin expansion.

“Q3 is a significant milestone of the process improvements we've implemented over the last year that have allowed us to stabilize challenges in the manufacturing environment and excel operationally," explained Brent Yeagy, president and chief executive officer. "Our team has executed on initiatives like supply chain optimization, transforming information flows from chassis OEMs and enhanced sales and operational planning to unlock capacity necessary for growth in Final Mile.  In any environment, 140 basis points of overall operating margin improvement is a significant accomplishment.  Similarly, 580 basis points of margin expansion in Final Mile Products shows considerable underlying improvements.”

Net income for the third quarter 2019 was $25.5 million, or 46 cents per diluted share, which compares to 8 cents in the third quarter of 2018 or 29 cents on a non-GAAP Adjusted basis. Operating EBITDA, a non-GAAP measure that excludes the effects of certain items, for the third quarter 2019 was $50.7 million, or 8.7 percent of net sales.

Mr. Yeagy continued, “We are raising the midpoint of our full-year EPS outlook to $1.67 based on our strong year to date performance.  With one quarter left in the year, we are narrowing the range of our EPS outlook to $1.64 to $1.70.”

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 2019 and 2018. A complete disclosure of the results by individual segment is included in the tables following this release.

  Commercial Trailer Products Diversified Products Final Mile Products
Three Months Ended September 30, 2019 2018 2019 2018 2019 2018
  (dollars in thousands)
New trailers shipped 13,700  14,450  750  700     
Net sales $380,344  $368,342  $93,181  $102,361  $113,504  $87,049 
Gross profit $43,960  $39,137  $18,042  $17,018  $16,763  $8,954 
Gross profit margin 11.6% 10.6% 19.4% 16.6% 14.8% 10.3%
Income (loss) from operations $36,503  $32,453  $7,183  $(6,346) $4,628  $(1,495)
Income (loss) from operations margin 9.6% 8.8% 7.7% (6.2)% 4.1% (1.7)%
                   

Commercial Trailer Products’ net sales for the third quarter were $380 million, an increase of $12.0 million, or 3.3 percent as compared to the prior year quarter. Gross profit margin for the third quarter increased 100 basis points as compared to the prior year period primarily due to successful efforts to recover cost pressures as well as product and customer mix.  Operating income increased $4.1 million, or 12.5 percent, from the third quarter last year to $36.5 million, or 9.6 percent of net sales.

Diversified Products’ net sales for the third quarter were $93 million, a decrease of $9.2 million, or 9.0 percent, as compared to the prior year, due to impact from the divestiture of a business, partially offset by increased demand for tank trailers. Gross profit and profit margin as compared to the prior year period increased $1.0 million and 280 basis points, respectively, as the segment benefited from cost recovery as well as operational cost improvements driven by the Wabash Management System. Operating income in the third quarter of 2019 was $7.2 million, or 7.7 percent of net sales, representing an increase of $13.5 million as compared to the third quarter of 2018 or $1.5 million with the impact of a non-GAAP adjustment in the prior year period.

Final Mile Products’ net sales for the third quarter totaled $114 million, an increase of $26.5 million, or 30.4 percent, as compared to the prior year, due to strong market and customer demand. Gross profit margin for the third quarter increased 450 basis points as compared to the prior year period primarily due to improved volume, cost recovery and improved operational efficiency. Operating income was $4.6 million, or 4.1 percent of net sales, compared to a loss of $1.5 million, or -1.7 percent of net sales in the prior year period.



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, adjusted operating income, adjusted net income and adjusted earnings per diluted share.  These non-GAAP measures should not be considered a substitute for, or superior to, financial measures and results calculated in accordance with GAAP, including net income, and reconciliations to GAAP financial statements should be carefully evaluated.

Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, acquisition expenses and related 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 operating income, a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities. Accordingly, the Company presents adjusted operating income excluding these Special Items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating income to provide investors with a better understanding of the Company’s view of our results as compared to prior periods.  A reconciliation of adjusted operating income to operating income, the most comparable GAAP financial measure, is included in the tables following this press release.

Adjusted net income and adjusted earnings per diluted share, each reflect adjustments for income or losses recognized on the sale and/or closure of former Company locations, the losses attributable to the Company's extinguishment of debt, a non-cash impairment of assets, acquisition expenses and related charges, and tax reform and other discrete tax adjustments. Management believes providing adjusted measures and excluding certain items facilitates comparisons to the Company’s prior year periods and, when combined with the GAAP presentation of net income and diluted net income per share, is beneficial to an investor’s understanding of the Company’s performance. A reconciliation of each of adjusted net income and adjusted earnings per diluted share to net income and net income per diluted share is included in the tables following this release.

Third Quarter 2019 Conference Call

Wabash National will discuss its results during its quarterly investor conference call on Wednesday, November 6, 2019, beginning at 10:00 a.m. EDT.  The call and an accompanying slide presentation will be accessible on the "Investors" section of the Company’s website www.wabashnational.com . The conference call will also be accessible by dialing (844) 778-4139, conference ID 5094114.  A replay of the call will be available on the site shortly after the conclusion of the presentation.

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, 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®, 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 BALANCE SHEETS
(Unaudited - dollars in thousands)

 September 30,
2019
 December 31,
2018
Assets   
Current assets:   
Cash and cash equivalents$120,873  $132,690 
Accounts receivable, net171,393  181,064 
Inventories274,273  184,404 
Prepaid expenses and other54,847  51,261 
Total current assets621,386  549,419 
Property, plant, and equipment, net210,963  206,991 
Goodwill311,134  311,084 
Intangible assets194,934  210,328 
Other assets40,186  26,571 
Total assets$1,378,603  $1,304,393 
Liabilities and Stockholders' Equity   
Current liabilities:   
Current portion of long-term debt$  $1,880 
Current portion of finance lease obligations322  299 
Accounts payable188,911  153,113 
Other accrued liabilities136,429  116,384 
Total current liabilities325,662  271,676 
Long-term debt475,122  503,018 
Finance lease obligations461  714 
Deferred income taxes32,454  34,905 
Other non-current liabilities29,846  20,231 
Total liabilities863,545  830,544 
Commitments and contingencies   
Stockholders' equity:   
Common stock 200,000,000 shares authorized, $0.01 par value, 54,122,624 and 55,135,788 shares outstanding, respectively750  744 
Additional paid-in capital636,756  629,039 
Retained earnings207,934  150,244 
Accumulated other comprehensive loss(4,895) (3,343)
Treasury stock at cost, 20,923,252 and 19,372,735 common shares, respectively(325,487) (302,835)
Total stockholders' equity515,058  473,849 
Total liabilities and stockholders' equity$1,378,603  $1,304,393 
        

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

 Three Months Ended September 30, Nine Months Ended September 30,
 2019 2018 2019 2018
Net sales$580,908  $553,073  $1,740,135  $1,657,082 
Cost of sales503,173  487,911  1,506,060  1,442,487 
Gross profit77,735  65,162  234,075  214,595 
General and administrative expenses25,353  23,033  82,002  73,920 
Selling expenses8,998  8,690  25,715  25,591 
Amortization of intangible assets5,115  4,937  15,353  14,818 
Acquisition expenses      68 
Impairment  11,989    11,989 
Income from operations38,269  16,513  111,005  88,209 
Other income (expense):       
Interest expense(6,713) (7,044) (20,823) (21,649)
Other, net1,333  533  2,245  12,486 
Other expense, net(5,380) (6,511) (18,578) (9,163)
Income before income tax32,889  10,002  92,427  79,046 
Income tax expense7,429  5,338  21,227  21,209 
Net income$25,460  $4,664  $71,200  $57,837 
Net income per share:       
Basic$0.47  $0.08  $1.30  $1.01 
Diluted$0.46  $0.08  $1.28  $0.98 
Weighted average common shares outstanding (in thousands):       
Basic54,413  56,798  54,975  57,486 
Diluted55,019  57,742  55,502  59,218 
        
Dividends declared per share$0.080  $0.075  $0.240  $0.225 
                

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

 Nine Months Ended September 30,
 2019 2018
Cash flows from operating activities:   
Net income$71,200  $57,837 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation16,258  15,701 
Amortization of intangibles15,353  14,818 
Net loss (gain) on sale of property, plant and equipment(40) (10,164)
Loss on debt extinguishment104  174 
Deferred income taxes(2,451) (122)
Stock-based compensation7,362  8,479 
Impairment  11,989 
Non-cash interest expense783  1,426 
Changes in operating assets and liabilities   
Accounts receivable9,671  (48,531)
Inventories(89,869) (66,089)
Prepaid expenses and other(2,368) (3,265)
Accounts payable and accrued liabilities57,750  76,602 
Other, net(7,535) (2,171)
Net cash provided by operating activities76,218  56,684 
Cash flows from investing activities:   
Capital expenditures(22,244) (20,344)
Proceeds from sale of property, plant and equipment785  17,775 
Other, net  3,060 
Net cash (used in) provided by investing activities(21,459) 491 
Cash flows from financing activities:   
Proceeds from exercise of stock options361  961 
Dividends paid(13,443) (13,566)
Borrowings under revolving credit facilities446  582 
Payments under revolving credit facilities(446) (582)
Principal payments under finance lease obligations(230) (216)
Principal payments under term loan credit facility(30,470) (1,410)
Principal payments under industrial revenue bond  (93)
Debt issuance costs paid(142)  
Convertible senior notes repurchase  (80,200)
Stock repurchase(22,652) (44,433)
Net cash used in financing activities(66,576) (138,957)
Cash, cash equivalents, and restricted cash:   
Net increase (decrease) for the period(11,817) (81,782)
At beginning of period132,690  191,521 
At end of period$120,873  $109,739 
Supplemental disclosures of cash flow information:   
Cash paid for interest$15,639  $16,263 
Cash paid for income taxes$18,965  $23,588 
        

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

Three Months Ended September 30, Commercial
Trailer Products
 Diversified
Products
 Final Mile
Products
 Corporate and
Eliminations
 Consolidated
2019          
New trailers shipped 13,700  750      14,450 
Used trailers shipped 25  10      35 
           
New Trailers $366,938  $51,697  $  $  $418,635 
Used Trailers 86  417      503 
Components, parts and service 10,039  23,790  4,302  (5,960) 32,171 
Equipment and other 3,281  17,277  109,202  (161) 129,599 
Total net external sales $380,344  $93,181  $113,504  $(6,121) $580,908 
Gross profit $43,960  $18,042  $16,763  $(1,030) $77,735 
Income (Loss) from operations $36,503  $7,183  $4,628  $(10,045) $38,269 
           
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 
                     


Nine Months Ended September 30, Commercial
Trailer Products
 Diversified
Products
 Final Mile
Products
 Corporate and
Eliminations
 Consolidated
2019          
New trailers shipped 40,350  2,200      42,550 
Used trailers shipped 50  60      110 
           
New Trailers $1,078,599  $146,821  $  $  $1,225,420 
Used Trailers 236  1,743      1,979 
Components, parts and service 30,994  88,681  12,165  (20,455) 111,385 
Equipment and other 12,424  52,610  337,005  (688) 401,351 
Total net external sales $1,122,253  $289,855  $349,170  $(21,143) $1,740,135 
Gross profit $126,806  $58,264  $51,576  $(2,571) $234,075 
Income (Loss) from operations $102,742  $24,138  $15,718  $(31,593) $111,005 
           
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  $(995) $214,595 
Income (Loss) from operations $102,718  $3,078  $9,372  $(26,959) $88,209 
                     

WABASH NATIONAL CORPORATION
SEGMENT AND COMPANY FINANCIAL INFORMATION
(Unaudited - dollars in thousands)

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
 2019 2018 2019 2018
Commercial Trailer Products       
Income from operations$36,503  $32,453  $102,742  $102,718 
        
Diversified Products       
Income from operations7,183  (6,346) 24,138  3,078 
Adjustments:       
Impairment  11,989    11,989 
Adjusted operating income7,183  5,643  24,138  15,067 
        
Final Mile Products       
Income from operations4,628  (1,495) 15,718  9,372 
Adjustments:       
Acquisition expenses and related charges      751 
Adjusted operating income4,628  (1,495) 15,718  10,123 
        
Corporate       
Income from operations(10,045) (8,099) (31,593) (26,959)
Adjustments:       
Acquisition expenses and related charges      68 
Adjusted operating income(10,045) (8,099) (31,593) (26,891)
        
Consolidated       
Income from operations38,269  16,513  111,005  88,209 
Adjustments:       
Impairment  11,989    11,989 
Acquisition expenses and related charges      819 
Adjusted operating income$38,269  $28,502  $111,005  $101,017 
                


WABASH NATIONAL CORPORATION
RECONCILIATION OF GAAP FINANCIAL MEASURES TO
NON-GAAP FINANCIAL MEASURES
(Unaudited - dollars in thousands, except per share amounts)

Operating EBITDA1:Three Months Ended September 30, Nine Months Ended September 30,
 2019 2018 2019 2018
Net income$25,460  $4,664  $71,200  $57,837 
Income tax expense7,429  5,338  21,227  21,209 
Interest expense6,713  7,044  20,823  21,649 
Depreciation and amortization10,416  10,308  31,611  30,519 
Stock-based compensation1,985  3,089  7,362  8,479 
Acquisition expenses      68 
Impairment  11,989    11,989 
Other non-operating income(1,333) (533) (2,245) (12,486)
Operating EBITDA$50,670  $41,899  $149,978  $139,264 


Adjusted Net Income2:Three Months Ended September 30, Nine Months Ended September 30,
 2019 2018 2019 2018
Net income$25,460  $4,664  $71,200  $57,837 
Adjustments:       
Facility transactions3  (150)   (10,779)
Loss on debt extinguishment      174 
Impairment  11,989    11,989 
Acquisition expenses and related charges      819 
Tax effect of aforementioned items  (3,078)   (573)
Tax reform and other discrete tax adjustments  3,084    3,084 
Adjusted net income$25,460  $16,509  $71,200  $62,551 


Adjusted Diluted Earnings Per Share2:Three Months Ended September 30, Nine Months Ended September 30,
 2019 2018 2019 2018
Diluted earnings per share$0.46  $0.08  $1.28  $0.98 
Adjustments:       
Facility transactions3      (0.17)
Loss on debt extinguishment       
Impairment  0.21    0.20 
Acquisition expenses and related charges      0.01 
Tax effect of aforementioned items  (0.05)   (0.01)
Tax reform and other discrete tax adjustments  0.05    0.05 
Adjusted diluted earnings per share$0.46  $0.29  $1.28  $1.06 
        
Weighted average number of diluted shares outstanding (in thousands)55,019  57,742  55,502  59,218 
            

1Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, acquisition expenses and related charges, and other non-operating income and expense.
2Adjusted net income and adjusted earnings per diluted share reflect adjustments for acquisition expenses, the losses attributable to the Company’s extinguishment of debt, income or losses recognized on the sale and/or closure of former Company locations, a non-cash impairment of assets, and tax reform and other discrete tax adjustments.
3Facility transactions in 2018 and 2019 relate to gains and/or losses incurred for the sale or closure of former Company locations.

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

Investor Relations:
Ryan Reed
Director, Investor Relations
(765) 771-5805
ryan.reed@wabashnational.com

Wabash National Corporation Logo

Source: Wabash National Corporation


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2020 StockSelector.com. All rights reserved.