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 Wabash National Corporation Announces Fourth Quarter and Full Year 2017 Results
   Tuesday, January 30, 2018 4:31:42 PM ET

-- Fourth quarter and full-year GAAP earnings of $0.80 and $1.78 per diluted share

-- Fourth quarter and full-year non-GAAP adjusted earnings of $0.36 and $1.38 per diluted share

-- Strong quote and order activity increases backlog to near record level of $1.2 billion

-- Company updates 2018 shipment guidance to 56,000 to 60,000 trailers and full-year earnings per diluted share guidance of $1.86 to $2.02

Wabash National Corporation (WNC ), a diversified industrial manufacturer and a leading producer of semi-trailers, truck bodies and liquid transportation systems, today reported results for the fourth quarter and full-year periods ending December 31, 2017.

Net income for the fourth quarter 2017 was $49.4 million, or $0.80 per diluted share, compared to the fourth quarter 2016 net income of $23.0 million, or $0.36 per diluted share. Fourth quarter 2017 non-GAAP adjusted earnings was $22.3 million, or $0.36 per diluted share, a $2.0 million decrease as compared to the prior year period. Non-GAAP adjusted earnings for the fourth quarter 2017 exclude the one-time tax benefit associated with both the adjustment of the Company’s net deferred income tax liability totaling $19.7 million as a result of the Tax Cuts and Jobs Act of 2017 and the reversal of reserves for uncertain tax positions of $12.6 million. In addition, the fourth quarter 2017 adjusted earnings excludes non-recurring expenses totaling $6.6 million primarily related to acquisition and integration expenses associated with the Company’s acquisition of Supreme Industries, Inc. ("Supreme") in September 2017 and charges incurred related to the closing of former branch locations. Net sales for the fourth quarter increased 18 percent to $543 million from $462 million in the prior year quarter and operating income decreased 13 percent to $35.3 million compared to operating income of $40.6 million for the fourth quarter 2016. Operating EBITDA, a non-GAAP measure that excludes the effects of certain items, for the fourth quarter 2017 was $51.1 million, a decrease of $2.5 million compared to operating EBITDA for the previous year quarter.

For the twelve months ended December 31, 2017, the Company reported net income of $111.4 million, or $1.78 per diluted share, on net sales of $1.77 billion, compared to net income of $119.4 million, or $1.82 per diluted share, on net sales of $1.85 billion for the twelve months ended December 31, 2016. Full-year 2017 results included tax benefits associated with both the adjustment of the Company’s net deferred income tax liability totaling $19.7 million as a result of the Tax Cuts and Jobs Act of 2017 and the reversal of reserves for uncertain tax positions of $12.6 million. Full-year results also include charges totaling $9.5 million related to acquisition and integration related costs for Supreme and early extinguishment of debt incurred with the Company’s purchase of a portion of the outstanding convertible senior notes net of gains from the transition and sale of former branch locations. Excluding the impact of these items, non-GAAP adjusted earnings for the full-year 2017 were $86.2 million, or $1.38 per diluted share. Full-year 2016 results included charges totaling $3.3 million related to early extinguishment of debt incurred with the Company’s purchase of a portion of the outstanding convertible senior notes and the impairment of intangible assets in connection with the Company’s segment realignment. Excluding the impact of these items, non-GAAP adjusted earnings for the full-year 2016 were $121.5 million, or $1.85 per diluted share. For the full-year 2017, the Company achieved operating EBITDA of $189.0 million, or 10.7 percent of net sales, as compared to $253.0 million, or 13.7 percent of net sales, for the previous year.

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

Three Months Ended
(Dollars in thousands, except per December 31,       March 31,        June 30,       September 30,      December 31,
share amounts)
                                  2016               2017             2017           2017               2017
Net Sales                         $    462,057       $   362,716      $  435,903     $    425,098       $    543,444
Gross Profit Margin                    15.5    %         16.4    %       15.5    %        14.3    %          13.4    %
Income from Operations            $    40,621        $   30,264       $  38,668      $    26,591        $    35,293
Income from Operations Margin          8.8     %         8.3     %       8.9     %        6.3     %          6.5     %
Net Income                        $    23,000        $   20,173       $  22,945      $    18,947        $    49,356
Diluted EPS                       $    0.36          $   0.32         $  0.36        $    0.30          $    0.80
Non-GAAP Measures:
Operating EBITDA                  $    53,606        $   41,930       $  49,450      $    46,561        $    51,062
Operating EBITDA Margin                11.6    %         11.6    %       11.3    %        11.0    %          9.4     %
Adjusted Earnings                 $    24,213        $   19,517       $  23,189      $    21,214        $    22,250
Adjusted Diluted EPS              $    0.38          $   0.31         $  0.37        $    0.34          $    0.36

Notes:

-- See "Non-GAAP Measures" below for explanation of the non-GAAP results included above.

The following is a summary of select operating and financial results for each of the last five years ending December 31, 2017:

Twelve Months Ended
(Dollars in thousands, except per December 31,         December 31,         December 31,         December 31,         December 31,
share amounts)
                                  2013                 2014                 2015                 2016                 2017
Net Sales                         $    1,635,686       $    1,863,315       $    2,027,489       $    1,845,444       $    1,767,161
Gross Profit Margin                    13.2      %          12.5      %          15.0      %          17.6      %          14.8      %
Income from Operations            $    103,191         $    122,386         $    180,369         $    202,532         $    130,816
Income from Operations Margin          6.3       %          6.6       %          8.9       %          11.0      %          7.4       %
Net Income                        $    46,529          $    60,930          $    104,289         $    119,433         $    111,422
Diluted EPS                       $    0.67            $    0.85            $    1.50            $    1.82            $    1.78
Non-GAAP Measures:
Operating EBITDA                  $    149,890         $    169,048         $    229,464         $    253,002         $    189,004
Operating EBITDA Margin                9.2       %          9.1       %          11.3      %          13.7      %          10.7      %
Adjusted Earnings                 $    48,190          $    62,992          $    103,392         $    121,538         $    86,166
Adjusted Diluted EPS              $    0.70            $    0.89            $    1.49            $    1.85            $    1.38

Notes:

Dick Giromini, chief executive officer, stated, "We are pleased overall with the Company’s 2017 performance, as we successfully established a stronger foundation for further growth and productivity for the current year and beyond. The addition of the Supreme truck body business was a key accomplishment as it not only adds immediate revenue and profit opportunity, but also provides significant diversification into a high-growth segment driven by the ever-increasing adoption of e-commerce."

Mr. Giromini continued, "Operationally, following our fifth consecutive record year of profitability in 2016, a small reset was seemingly inevitable at some point. Despite a somewhat more challenging year for parts of our core businesses, we are nonetheless proud of the team’s efforts in overcoming many of the headwinds throughout the year, leading us to the strong finish in the fourth quarter that positioned us for new levels of success in 2018. New trailer shipments of 55,050 for the year were near the top-end of our previous guidance and we begin 2018 with a historically strong backlog of orders totaling $1.2 billion, an increase of 64 percent compared to the previous quarter."

2018 Outlook

Mr. Giromini stated, "Looking at the current year, we continue to believe the demand environment for trailers overall will remain healthy as fleet age, regulatory compliance requirements such as the ELD implementation, a strong economy and customer profitability all support a continuation of an extended trailer cycle. Adding to this belief is the significant turnaround in demand for both our platform and tank trailer businesses, leading to the strongest backlog in more than two years for those businesses. Those factors combined with the addition of the Supreme truck body business, impact of the new Tax Cuts and Jobs Act of 2017, and effects of cost and productivity improvement initiatives throughout the business create a great recipe for success. In 2018 we expect to ship in the range of 56,000 to 60,000 trailer units, along with 22,000 to 24,000 truck body units, for a revenue projection of $2.05 billion to $2.15 billion. While the first quarter will be slow out of the gate due to timing of shipments, we believe that pace will accelerate beginning in the second quarter and throughout the balance of the year. Based on those, and other demand and cost assumptions, we project full-year earnings of $1.86 to $2.02 per diluted share."

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 fourth quarter and full-year periods of 2017 and 2016. As announced in the prior quarter, in the fourth quarter of 2017 the Company added a third reporting segment, Final Mile Products, which includes the results of our Supreme acquisition and the Company’s existing truck body growth and diversification initiative. 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 December 31
                                    2017                2016              2017           2016            2017
New trailers shipped                15,500      #       14,600            650            550             -
Net sales                     $     385,961         $   379,343        $  91,771      $  85,795      $   70,461
Gross profit                  $     47,055          $   59,171         $  18,040      $  13,535      $   8,150
Gross profit margin                 12.2      %         15.6      %       19.7    %      15.8    %       11.6   %
Income from operations        $     40,134          $   49,917         $  5,532       $  1,124       $   (2,098 )
Income from operations margin       10.4      %         13.2      %       6.0     %      1.3     %       -3.0   %
Twelve months ended December 31
                                    2017                2016              2017           2016            2017
New trailers shipped                52,800              58,850            2,250          2,100           -
Net sales                     $     1,348,382       $   1,506,110      $  361,358     $  352,404     $   70,461
Gross profit                  $     183,912         $   253,274        $  70,159      $  75,630      $   8,150
Gross profit margin                 13.6      %         16.8      %       19.4    %      21.5    %       11.6   %
Income from operations        $     151,999         $   212,351        $  20,376      $  24,595      $   (2,098 )
Income from operations margin       11.3      %         14.1      %       5.6     %      7.0     %       -3.0   %

Commercial Trailer Products’ net sales for the fourth quarter were $386 million, an increase of $7 million, or 2 percent, as compared to the prior year. Gross profit margin for the fourth quarter decreased 340 basis points as compared to the prior year period primarily due to increases in commodity costs and continued labor constraints resulting in higher overtime requirements to meet current demand. Operating income decreased $9.8 million, or 20 percent, from the fourth quarter last year to $40.1 million, or 10.4 percent of net sales.

Diversified Products’ net sales for the fourth quarter increased $6 million, or 7 percent, due primarily to the increased demand for liquid tank trailers and process systems products as compared to the previous year period. Gross profit and profit margins as compared to the prior year period increased $4.5 million and 390 basis points, respectively, primarily due to increased demand levels and the execution of cost management initiatives. Operating income for the fourth quarter 2017 was $5.5 million, or 6.0 percent of net sales, an increase of $4.4 million compared to the prior year.

Final Mile Products’ net sales for the fourth quarter totaled $70 million. Gross profit and gross profit margin for the fourth quarter were $8.1 million and 11.6 percent, respectively. Excluding non-recurring acquisition and integration related costs, gross profit and operating margins for the fourth quarter were 17.6 percent and 3.9 percent, respectively. Truck body demand continues to be strong as backlog increased 33 percent compared to the prior year.

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 of goodwill and other intangible assets, and other non-operating income and expense. Management believes providing operating EBITDA is useful for investors to understand the Company’s performance and results of operations period to period with the exclusion of the items identified above. Management believes the presentation of operating EBITDA, when combined with the GAAP presentations of operating income and net income, is beneficial to an investor’s understanding of the Company’s operating performance. A reconciliation of operating EBITDA to net income is included in the tables following this release.

Adjusted earnings and adjusted earnings per diluted share for the three- and twelve-month periods ending December 31, 2017 and 2016 reflect adjustments for charges incurred in connection with acquisition and integration of Supreme, the losses attributable to the Company’s extinguishment of debt, impairment of goodwill and other intangible assets, executive severance costs, income or losses recognized on sale of former branch locations as well as tax benefits associated with the adjustment of the Company’s net deferred income tax liability as a result 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.

Fourth Quarter and Full-Year 2017 Conference Call

Wabash National will conduct a conference call to review and discuss its fourth quarter and full-year results on January 31, 2018 at 10:00 a.m. EST. 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 April 25, 2018. Meeting access also will be available via conference call at 800-708-4540, participant code 46320733.

About Wabash National Corporation

Headquartered in Lafayette, Indiana, Wabash National Corporation (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 and our expectations with regards to capital allocation. These and the Company’s other forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Without limitation, these risks and uncertainties include the successful integration of Supreme into the Company’s business, adverse reactions to the transaction by customers, suppliers or strategic partners, uncertain economic conditions including the possibility that customer demand may not meet our expectations, increased competition, reliance on certain customers and corporate partnerships, risks of customer pick-up delays, shortages and costs of raw materials, risks in implementing and sustaining improvements in the Company’s manufacturing operations and cost containment, dependence on industry trends and timing and costs of indebtedness. Readers should review and consider the various disclosures made by the Company in this press release and in the Company’s reports to its stockholders and periodic reports on Forms 10-K and 10-Q.

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
                                                                                       Three Months Ended            Twelve Months Ended
                                                                                       December 31,                  December 31,
                                                                                       2017           2016           2017             2016
Net sales                                                                              $  543,444     $  462,057     $  1,767,161     $  1,845,444
Cost of sales                                                                             470,568        390,572        1,506,286        1,519,910
                  Gross profit                                                            72,876         71,485         260,875          325,534
General and administrative expenses                                                       24,314         19,036         77,825           74,129
Selling expenses                                                                          8,020          6,849          25,588           27,270
Amortization of intangibles                                                               4,348          4,979          17,041           19,940
Acquisition Expenses                                                                      901            -              9,605            -
Impairment of goodwill                                                                    -              -              -                1,663
                  Income from operations                                                  35,293         40,621         130,816          202,532
Other income (expense):
                  Interest expense                                                        (7,335  )      (3,725  )      (16,400   )      (15,663   )
                  Other, net                                                              194            (1,679  )      8,122            (1,452    )
                  Income before income taxes                                              28,152         35,217         122,538          185,417
Income tax (benefit) expense                                                              (21,204 )      12,217         11,116           65,984
Net income                                                                             $  49,356      $  23,000      $  111,422       $  119,433
Dividends declared per share                                                           $  0.075       $  0.060       $  0.255         $  0.060
Basic net income per share                                                             $  0.84        $  0.37        $  1.88          $  1.87
Diluted net income per share                                                           $  0.80        $  0.36        $  1.78          $  1.82
Comprehensive income
                  Net income                                                           $  49,356      $  23,000      $  111,422       $  119,433
                  Foreign currency translation adjustment                                 (342    )      (403    )      487              (1,347    )
Net comprehensive income                                                               $  49,014      $  22,597      $  111,909       $  118,086
Basic net income per share:
                  Net income applicable to common stockholders                         $  49,356      $  23,000      $  111,422       $  119,433
                  Weighted average common shares outstanding                              58,416         61,469         59,358           63,729
                  Basic net income per share                                           $  0.84        $  0.37        $  1.88          $  1.87
Diluted net income per share:
                  Net income applicable to common stockholders                         $  49,356      $  23,000      $  111,422       $  119,433
                  Weighted average common shares outstanding                              58,416         61,469         59,358           63,729
                  Dilutive shares from assumed conversion of convertible senior notes     1,672          945            1,726            794
                  Dilutive stock options and restricted stock                             1,479          1,287          1,514            1,239
                  Diluted weighted average common shares outstanding                      61,567         63,701         62,598           65,762
                  Diluted net income per share                                         $  0.80        $  0.36        $  1.78          $  1.82
WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Dollars in thousands)
(Unaudited)
                                           Commercial          Diversified    Final Mile      Corporate and
Three Months Ended December 31,            Trailer Products    Products       Products        Eliminations       Consolidated
                 2017
New trailers shipped                                15,500           650          -                -                    16,150
Used trailers shipped                               550              50           -                -                    600
New Trailers                               $        367,526    $     40,895   $   -           $    -             $      408,421
Used Trailers                              $        5,352      $     821      $   -           $    -                    6,173
Components, parts and service              $        9,908      $     23,931   $   1,877       $    (4,749  )            30,967
Equipment and other                        $        3,175      $     26,124   $   68,584      $    -                    97,883
                 Total net external sales  $        385,961    $     91,771   $   70,461      $    (4,749  )     $      543,444
Gross profit                               $        47,055     $     18,040   $   8,150       $    (369    )     $      72,876
Income (Loss) from operations              $        40,134     $     5,532    $   (2,098 )    $    (8,275  )     $      35,293
                 2016
New trailers shipped                                14,600           550          -                -                    15,150
Used trailers shipped                               150              -            -                -                    150
New Trailers                               $        359,767    $     33,353   $   -           $    -             $      393,120
Used Trailers                                       1,796            562          -                -                    2,358
Components, parts and service                       13,082           22,867       -                (3,055  )            32,894
Equipment and other                                 4,698            29,013       -                (26     )            33,685
                 Total net external sales  $        379,343    $     85,795   $   -           $    (3,081  )     $      462,057
Gross profit                               $        59,171     $     13,535   $   -           $    (1,221  )     $      71,485
Income (Loss) from operations              $        49,917     $     1,124    $   -           $    (10,420 )     $      40,621
Twelve Months Ended December 31,
                 2017
New trailers shipped                                52,800           2,250        -                -                    55,050
Used trailers shipped                               1,050            100          -                -                    1,150
New Trailers                               $        1,273,584  $     140,105  $   -           $    -             $      1,413,689
Used Trailers                              $        10,720     $     3,278    $   -           $    -                    13,998
Components, parts and service              $        48,008     $     117,681  $   1,877       $    (13,040 )            154,526
Equipment and other                        $        16,070     $     100,294  $   68,584      $    -                    184,948
                 Total net external sales  $        1,348,382  $     361,358  $   70,461      $    (13,040 )     $      1,767,161
Gross profit                               $        183,912    $     70,159   $   8,150       $    (1,346  )     $      260,875
Income (Loss) from operations              $        151,999    $     20,376   $   (2,098 )    $    (39,461 )     $      130,816
                 2016
New trailers shipped                                58,850           2,100        -                -                    60,950
Used trailers shipped                               950              100          -                -                    1,050
New Trailers                               $        1,421,586  $     129,639  $   -           $    (89     )     $      1,551,136
Used Trailers                                       11,998           3,176        -                -                    15,174
Components, parts and service                       56,191           111,519      -                (12,955 )            154,755
Equipment and other                                 16,335           108,070      -                (26     )            124,379
                 Total net external sales  $        1,506,110  $     352,404  $   -           $    (13,070 )     $      1,845,444
Gross profit                               $        253,274    $     75,630   $   -           $    (3,370  )     $      325,534
Income (Loss) from operations              $        212,351    $     24,595   $   -           $    (34,414 )     $      202,532
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
                                                            December 31,      December 31,
                                                            2017              2016
                                                            (Unaudited)
ASSETS
Current assets
          Cash and cash equivalents                         $      191,521    $      163,467
          Accounts receivable                                      146,836           153,634
          Inventories                                              180,735           139,953
          Prepaid expenses and other                               57,299            24,351
                                 Total current assets       $      576,391    $      481,405
Property, plant and equipment                                      195,363           134,138
Deferred income taxes                                              -                 20,343
Goodwill                                                           317,464           148,367
Intangible assets                                                  237,030           94,405
Other assets                                                       25,265            20,075
                                                            $      1,351,513  $      898,733
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
          Current portion of long-term debt                 $      46,020     $      2,468
          Current portion of capital lease obligations             290               494
          Accounts payable                                         108,448           71,338
          Other accrued liabilities                                128,910           92,314
                                 Total current liabilities  $      283,668    $      166,614
Long-term debt                                                     504,091           233,465
Capital lease obligations                                          1,012             1,409
Deferred income taxes                                              36,955            499
Other noncurrent liabilities                                       19,724            24,355
Stockholders’ equity                                               506,063           472,391
                                                            $      1,351,513  $      898,733
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
                                                                                                 Twelve Months Ended
                                                                                                 December 31,
                                                                                                 2017            2016
Cash flows from operating activities
      Net income                                                                                 $  111,422      $  119,433
      Adjustments to reconcile net income to net cash provided by operating activities
                 Depreciation                                                                       18,012          16,830
                 Amortization of intangibles                                                        17,041          19,940
                 Net (gain) loss on the sale of property, plant and equipment                       (8,046   )      101
                 Deferred income taxes                                                              (14,814  )      4,044
                 Loss on debt extinguishment                                                        799             1,895
                 Stock-based compensation                                                           10,429          12,038
                 Impairment of goodwill                                                             -               1,663
                 Non-cash interest expense                                                          2,258           3,475
                 Changes in operating assets and liabilities
                            Accounts receivable                                                     31,943          (809     )
                            Inventories                                                             (13,158  )      24,969
                            Prepaid expenses and other                                              (2,014   )      (10,147  )
                            Accounts payable and accrued liabilities                                (963     )      (13,002  )
                            Other, net                                                              (8,530   )      (1,680   )
                                       Net cash provided by operating activities                 $  144,379      $  178,750
Cash flows from investing activities
      Capital expenditures                                                                          (26,056  )      (20,342  )
      Proceeds from the sale of property, plant, and equipment                                      10,860          19
      Acquisition, net of cash acquired                                                             (323,487 )      -
      Other, net                                                                                    6,443           3,014
                                       Net cash used in investing activities                     $  (332,240 )   $  (17,309  )
Cash flows from financing activities
      Proceeds from exercise of stock options                                                       5,790           4,831
      Borrowings under senior notes                                                                 325,000         -
      Dividends paid                                                                                (15,315  )      -
      Borrowings under revolving credit facilities                                                  713             618
      Payments under revolving credit facilities                                                    (713     )      (618     )
      Principal payments under capital lease obligations                                            (600     )      (779     )
      Proceeds from issuance of term loan credit facility                                           377,519         -
      Principal payments under term loan credit facilities                                          (386,577 )      (1,928   )
      Principal payments under industrial revenue bond                                              (583     )      (473     )
      Debt issuance costs paid                                                                      (6,783   )      -
      Stock repurchase                                                                              (74,491  )      (98,922  )
      Convertible senior notes repurchase                                                           (8,045   )      (79,556  )
                                       Net cash used in financing activities                     $  215,915      $  (176,827 )
Net increase in cash and cash equivalents                                                        $  28,054       $  (15,386  )
Cash and cash equivalents at beginning of period                                                    163,467         178,853
Cash and cash equivalents at end of period                                                       $  191,521      $  163,467
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                                                        Twelve Months Ended
                                              December 31,                                                              December 31,
                                              2017                                 2016                                 2017                                 2016
Net income                                    $                49,356              $                23,000              $                111,422             $                119,433
Income tax expense                                             (21,204          )                   12,217                               11,116                               65,984
Interest expense                                               7,335                                3,725                                16,400                               15,663
Depreciation and amortization                                  9,651                                9,565                                35,053                               36,769
Stock-based compensation                                       2,117                                3,420                                10,429                               12,038
Impairment of intangibles                                      -                                    -                                    -                                    1,663
Acquisition expenses and related charges                       4,002                                -                                    12,706                               -
Other non-operating (income) expense                           (194             )                   1,679                                (8,122           )                   1,452
Operating EBITDA                              $                51,062              $                53,606              $                189,004             $                253,002
                                              Three Months Ended
                                              March 31,                            June 30,                             September 30,
                                              2017                                 2017                                 2017
Net income                                    $                20,173              $                22,945              $                18,947
Income tax expense                                             8,434                                13,160                               10,728
Interest expense                                               2,990                                2,888                                3,187
Depreciation and amortization                                  8,704                                8,315                                8,386
Stock-based compensation                                       2,963                                2,467                                2,881
Acquisition expenses and related charges                       -                                    -                                    8,704
Other non-operating (income) expense                           (1,333           )                   (325             )                   (6,271           )
Operating EBITDA                              $                41,930              $                49,450              $                46,561
Adjusted Earnings:
                                              Three Months Ended December 31,                                                                                                                     Twelve Months Ended December 31,
                                              2017                                                                      2016                                                                      2017                                                                                                                                                                                                            2016
                                              $                                    Per Share                            $                                    Per Share                            $                                    Per Share                                                                                                                                                                  $              Per Share
Net Income                                    $                49,356              $                0.80                $                23,000              $                0.36                $                111,422             $                1.78                                                                                                                                                      $  119,433     $   1.82
Adjustments:
Facility transactions                                          274                                  -                                    450                                  0.01                                 (6,546           )                   (0.10            )                                                                                                                                           (290    )       -
Impairment of goodwill and other intangibles                   -                                    -                                    -                                    -                                    -                                    -                                                                                                                                                            1,663           0.03
Loss on debt extinguishment                                    32                                   -                                    1,408                                0.02                                 800                                  0.01                                                                                                                                                         1,895           0.03
Executive severance expense                                    -                                    -                                    -                                    -                                    238                                  -                                                                                                                                                            -               -
Acquisition expenses and related charges                       6,308                                0.10                                 -                                    -                                    15,012                               0.24                                                                                                                                                         -               -
Tax effect of aforementioned items                             (2,381           )                   (0.04            )                   (645             )                   (0.01            )                   (3,421           )                   (0.05            )                                                                                                                                           (1,163  )       (0.02 )
Tax reform and other discrete tax adjustments                  (31,339          )                   (0.51            )                   -                                    -                                    (31,339          )                   (0.50            )                                                                                                                                           -               -
Adjusted earnings                             $                22,250              $                0.36                $                24,213              $                0.38                $                86,166              $                1.38                                                                                                                                                      $  121,538     $   1.85
Weighted Average # of Diluted Shares O/S                       61,567                                                                    63,701                                                                    62,598                                                                                                                                                                                            65,762
                                              Three Months Ended
                                              March 31, 2017                                                            June 30, 2017                                                             September 30, 2017
                                              $                                    Per Share                            $                                    Per Share                            $                                    Per Share
Net Income                                    $                20,173              $                0.32                $                22,945              $                0.36                $                18,947                               0.30
Adjustments:
Facility transactions                                          (1,665           )                   (0.03            )                   18                                   -                                    (5,165           )                   (0.08            )
Loss on debt extinguishment                                    640                                  0.01                                 125                                  -                                    3                                    -
Executive severance expense                                    -                                    -                                    238                                  -                                                                         -
Acquisition expenses and related charges                       -                                    -                                    -                                    -                                    8,704                                0.14
Tax effect of aforementioned items                             369                                  0.01                                 (137             )                   -                                    (1,275           )                   (0.02            )
Adjusted earnings                             $                19,517              $                0.31                $                23,189              $                0.37                $                21,214              $                0.34
Weighted Average # of Diluted Shares O/S                       63,390                                                                    63,207                                                                    62,236
Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, acquisition expenses and related charges, impairment of goodwill and other intangibles, and other non-operating income and expense.
Adjusted earnings and adjusted earnings per diluted share reflect adjustments for charges incurred in connection with acquistion expense and related costs, the losses attributable to the Company’s extinguishment of debt, income or losses recognized on the sale and/or closure of former Company locations, one-time executive severance costs and impairment of goodwill or other intangible asset charges.
Facility transactions in 2016 and 2017 relate to gains and/or losses incurred for the sale or closure of the Company’s retail branch locations.

Media Contact:

Dana Stelsel

Corporate Communications Manager

(765) 771-5766

dana.stelsel@wabashnational.com

Investor Relations:

Jeff Taylor

Senior Vice President, Chief Financial Officer

(765) 771-5310

jeff.taylor@wabashnational.com

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