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 and full year periods ending December 31, 2018.
Net sales for the fourth quarter 2018 increased
12 percent to $610 million from $543 million in the prior year
quarter while each of the Company’s three segments contributed to
the strong top-line growth as market demand remained strong. Gross
profit margin contracted 210 basis points as compared to the prior
year period as a result of continued cost pressures due to the
current operating environment. Operating income was $22.8 million
in the fourth quarter of 2018 or $36.4 million, on a non-GAAP
adjusted basis, after excluding a non-cash impairment charge of $13
million related to the sale of the Aviation and Truck Equipment
business in the Diversified Products reportable segment.
“In a quarter impacted by challenges in the
operating environment, we continued to strengthen long-term
relationships with our customers by shipping near-record volumes.
We generated quarterly net sales of $610 million in the fourth
quarter, a 12 percent increase versus the prior year quarter, and
full year sales of $2.3 billion, the highest in the Company’s
33-year history," explained Brent Yeagy, president and chief
executive officer. "Due in part to the strength in demand
conditions, all three of our reporting segments faced continued
operating pressures which negatively impacted our margins. We are
highly focused on reducing the cost pressures that included a
shortage of chassis and other components, as well as increased
labor and material costs. We have taken action to improve pricing
across all three business segments in order to recover higher
materials and manufacturing costs. We launched additional
productivity initiatives and bolstered supply chain effectiveness
through both resourcing and planning improvements. We are confident
that these actions will address the short-term operating pressures
to clear the way for improved margin performance in 2019.”
Net income for the fourth quarter 2018 was $11.6
million, or 21 cents per diluted share. Adjusted non-GAAP net
income for the fourth quarter was $21.5 million or 38 cents per
share, compared to 36 cents in the fourth quarter of 2017.
Operating EBITDA, a non-GAAP measure that
excludes the effects of certain items, for the fourth quarter 2018
was $47.6 million, or 7.8 percent of net sales, and full year
operating EBITDA of $186.9 million, or 8.2 percent of net
sales.
Mr. Yeagy continued, “While we expect strong
industry volumes in 2019, we also anticipate some level of
short-term supplier and cost challenges continuing into the new
year. I am confident in our team's ability to successfully navigate
these issues as we focus on mitigating supplier disruptions and
driving increased productivity. With strong market
conditions, a solid balance sheet and six consecutive years of
converting free cash flow in excess of net income, I expect 2019 to
be a strong year for Wabash National. We expect 2019 full-year
revenue to be between $2.25 billion to $2.35 billion based on our
current backlog and we feel it is prudent to revise our full-year
earnings outlook to $1.50 to $1.70 per diluted share based on the
carryover of supply disruption and cost pressures moving into
2019.”
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 of 2018 and 2017. 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 December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
(dollars in thousands) |
New trailers
shipped |
|
16,750 |
|
|
15,500 |
|
|
750 |
|
|
650 |
|
|
— |
|
|
— |
|
Net sales |
|
$ |
438,667 |
|
|
$ |
385,961 |
|
|
$ |
102,322 |
|
|
$ |
91,771 |
|
|
$ |
74,532 |
|
|
$ |
70,461 |
|
Gross profit |
|
$ |
45,170 |
|
|
$ |
47,055 |
|
|
$ |
17,420 |
|
|
$ |
18,040 |
|
|
$ |
7,362 |
|
|
$ |
8,150 |
|
Gross profit
margin |
|
10.3 |
% |
|
12.2 |
% |
|
17.0 |
% |
|
19.7 |
% |
|
9.9 |
% |
|
11.6 |
% |
Income (loss) from
operations |
|
$ |
39,075 |
|
|
$ |
40,134 |
|
|
$ |
(6,111 |
) |
|
$ |
5,532 |
|
|
$ |
(1,463 |
) |
|
$ |
(2,098 |
) |
Income (loss) from
operations margin |
|
8.9 |
% |
|
10.4 |
% |
|
(6.0 |
)% |
|
6.0 |
% |
|
(2.0 |
)% |
|
(3.0 |
)% |
Commercial Trailer Products’ net sales for the
fourth quarter increased $52.7 million, or 14 percent, to $439
million. Gross profit margin for the fourth quarter decreased 190
basis points as compared to the prior year period primarily due to
the impact of supplier disruptions, as well as increased labor and
material costs. Operating income decreased $1.1 million, or
2.6 percent, from the fourth quarter last year to $39.1 million, or
8.9 percent of net sales.
Diversified Products’ net sales for the fourth
quarter were $102 million, an increase of $10.6 million, or 11
percent, as compared to the prior year, due primarily to the
increased demand for liquid tank trailers. Gross profit and profit
margin as compared to the prior year period decreased $0.6 million
and 270 basis points, respectively, primarily due to increased
material and labor costs, including higher overtime levels to meet
strong demand requirements and supplier induced production
interruptions. Operating income in the fourth quarter of 2018,
excluding a $13.0 million non-cash impairment charge, was $6.9
million, or 6.7 percent of net sales, representing an increase of
$1.3 million as compared to the prior year period.
Final Mile Products’ net sales for the fourth
quarter totaled $75 million. Gross profit and gross profit margin
for the fourth quarter were $7.4 million and 9.9 percent,
respectively. Operating loss was $1.5 million, or 2.0 percent of
net sales. Operating results were negatively impacted during the
quarter by chassis supply issues and other supplier shortages
causing operating inefficiencies as well as higher labor costs.
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 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, impairments, 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 acquisition expenses,
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.
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.
Fourth Quarter 2018 Conference
Call
Wabash National will discuss its results during
its quarterly investor conference call on Wednesday, January 30th,
starting at 10:00 a.m. EST. The call and an accompanying
slide presentation will be webcast on the "Investors" section of
the Company’s website www.wabashnational.com. A replay of the
webcast will be available in the same section of Wabash National's
website shortly after the conclusion of the call and will remain
available for approximately 3 months. 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, 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) |
|
|
December 31, 2018 |
|
December 31, 2017 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
132,690 |
|
|
$ |
191,521 |
|
Accounts
receivable, net |
181,064 |
|
|
146,836 |
|
Inventories |
184,404 |
|
|
180,735 |
|
Prepaid
expenses and other |
51,261 |
|
|
57,299 |
|
Total
current assets |
549,419 |
|
|
576,391 |
|
Property, plant, and
equipment, net |
206,991 |
|
|
195,363 |
|
Deferred income
taxes |
— |
|
|
— |
|
Goodwill |
311,084 |
|
|
317,464 |
|
Intangible assets |
210,328 |
|
|
237,030 |
|
Other assets |
26,571 |
|
|
25,265 |
|
Total
assets |
$ |
1,304,393 |
|
|
$ |
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 |
299 |
|
|
290 |
|
Accounts
payable |
153,113 |
|
|
108,448 |
|
Other
accrued liabilities |
116,384 |
|
|
128,910 |
|
Total
current liabilities |
271,676 |
|
|
283,668 |
|
Long-term debt |
503,018 |
|
|
504,091 |
|
Capital lease
obligations |
714 |
|
|
1,012 |
|
Deferred income
taxes |
34,905 |
|
|
36,955 |
|
Other non-current
liabilities |
20,231 |
|
|
19,724 |
|
Total
liabilities |
830,544 |
|
|
845,450 |
|
Commitments and
contingencies |
|
|
|
Stockholders'
equity: |
|
|
|
Common
stock, $0.01 par value: 200,000,000 shares authorized;
55,135,788 and 57,564,493 shares outstanding, respectively |
744 |
|
|
737 |
|
Additional paid-in capital |
629,039 |
|
|
653,435 |
|
Retained
earnings |
150,244 |
|
|
98,728 |
|
Accumulated other comprehensive loss |
(3,343 |
) |
|
(2,385 |
) |
Treasury
stock, at cost: 19,372,735 and 16,207,740 common shares,
respectively |
(302,835 |
) |
|
(244,452 |
) |
Total
stockholders' equity |
473,849 |
|
|
506,063 |
|
Total
liabilities and stockholders' equity |
$ |
1,304,393 |
|
|
$ |
1,351,513 |
|
|
WABASH NATIONAL CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Unaudited - dollars in thousands, except per share
amounts) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net sales |
$ |
610,196 |
|
|
$ |
543,444 |
|
|
$ |
2,267,278 |
|
|
$ |
1,767,161 |
|
Cost of sales |
541,140 |
|
|
470,568 |
|
|
1,983,627 |
|
|
1,506,286 |
|
Gross
profit |
69,056 |
|
|
72,876 |
|
|
283,651 |
|
|
260,875 |
|
General and
administrative expenses |
21,194 |
|
|
24,314 |
|
|
95,114 |
|
|
77,825 |
|
Selling expenses |
7,455 |
|
|
8,020 |
|
|
33,046 |
|
|
25,588 |
|
Amortization of
intangible assets |
4,650 |
|
|
4,348 |
|
|
19,468 |
|
|
17,041 |
|
Acquisition
expenses |
— |
|
|
901 |
|
|
68 |
|
|
9,605 |
|
Impairment |
12,979 |
|
|
— |
|
|
24,968 |
|
|
— |
|
Income
from operations |
22,778 |
|
|
35,293 |
|
|
110,987 |
|
|
130,816 |
|
Other income
(expense): |
|
|
|
|
|
|
|
Interest
expense |
(7,110 |
) |
|
(7,335 |
) |
|
(28,759 |
) |
|
(16,400 |
) |
Other,
net |
1,290 |
|
|
194 |
|
|
13,776 |
|
|
8,122 |
|
Other
expense, net |
(5,820 |
) |
|
(7,141 |
) |
|
(14,983 |
) |
|
(8,278 |
) |
Income before income
tax |
16,958 |
|
|
28,152 |
|
|
96,004 |
|
|
122,538 |
|
Income tax expense |
5,374 |
|
|
(21,204 |
) |
|
26,583 |
|
|
11,116 |
|
Net income |
$ |
11,584 |
|
|
$ |
49,356 |
|
|
$ |
69,421 |
|
|
$ |
111,422 |
|
Net income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.21 |
|
|
$ |
0.84 |
|
|
$ |
1.22 |
|
|
$ |
1.88 |
|
Diluted |
$ |
0.21 |
|
|
$ |
0.80 |
|
|
$ |
1.19 |
|
|
$ |
1.78 |
|
Weighted
average common shares outstanding (in thousands): |
|
|
|
|
|
|
|
Basic |
55,543 |
|
|
58,416 |
|
|
56,996 |
|
|
59,358 |
|
Diluted |
56,290 |
|
|
61,567 |
|
|
58,430 |
|
|
62,599 |
|
|
|
|
|
|
|
|
|
Dividends declared per
share |
$ |
0.080 |
|
|
$ |
0.075 |
|
|
$ |
0.305 |
|
|
$ |
0.255 |
|
|
WABASH NATIONAL CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited - dollars in thousands) |
|
|
Year Ended December 31, |
|
2018 |
|
2017 |
|
2016 |
Cash flows from
operating activities: |
|
|
|
|
|
Net income |
$ |
69,421 |
|
|
$ |
111,422 |
|
|
$ |
119,433 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
Depreciation |
21,215 |
|
|
18,012 |
|
|
16,830 |
|
Amortization of intangibles |
19,468 |
|
|
17,041 |
|
|
19,940 |
|
Net
(gain) loss on sale of property, plant and equipment |
(10,148 |
) |
|
(8,046 |
) |
|
101 |
|
Loss on
debt extinguishment |
280 |
|
|
799 |
|
|
1,895 |
|
Deferred
income taxes |
(1,984 |
) |
|
(14,682 |
) |
|
4,044 |
|
Stock-based compensation |
10,169 |
|
|
10,429 |
|
|
12,038 |
|
Non-cash
interest expense |
1,745 |
|
|
2,258 |
|
|
3,475 |
|
Impairment |
24,968 |
|
|
— |
|
|
1,663 |
|
Changes
in operating assets and liabilities |
|
|
|
|
|
Accounts
receivable |
(39,539 |
) |
|
31,943 |
|
|
(809 |
) |
Inventories |
(18,713 |
) |
|
(13,158 |
) |
|
24,969 |
|
Prepaid
expenses and other |
4,548 |
|
|
(2,014 |
) |
|
(10,147 |
) |
Accounts
payable and accrued liabilities |
32,653 |
|
|
(963 |
) |
|
(13,002 |
) |
Other,
net |
(1,612 |
) |
|
(8,662 |
) |
|
(1,680 |
) |
Net cash
provided by operating activities |
112,471 |
|
|
144,379 |
|
|
178,750 |
|
Cash flows from
investing activities: |
|
|
|
|
|
Capital
expenditures |
(34,009 |
) |
|
(26,056 |
) |
|
(20,342 |
) |
Proceeds
from sale of property, plant and equipment |
17,776 |
|
|
10,860 |
|
|
19 |
|
Acquisitions, net of cash acquired |
— |
|
|
(323,487 |
) |
|
— |
|
Other,
net |
3,060 |
|
|
6,443 |
|
|
3,014 |
|
Net cash
used in investing activities |
(13,173 |
) |
|
(332,240 |
) |
|
(17,309 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
Proceeds
from exercise of stock options |
961 |
|
|
5,790 |
|
|
4,831 |
|
Borrowings under senior notes |
— |
|
|
325,000 |
|
|
— |
|
Dividends
paid |
(17,768 |
) |
|
(15,315 |
) |
|
— |
|
Borrowings under revolving credit facilities |
937 |
|
|
713 |
|
|
618 |
|
Payments
under revolving credit facilities |
(937 |
) |
|
(713 |
) |
|
(618 |
) |
Principal
payments under capital lease obligations |
(290 |
) |
|
(600 |
) |
|
(779 |
) |
Proceeds
from issuance of term loan credit facility |
— |
|
|
377,519 |
|
|
— |
|
Principal
payments under term loan credit facility |
(1,880 |
) |
|
(386,577 |
) |
|
(1,928 |
) |
Principal
payments under industrial revenue bond |
(93 |
) |
|
(583 |
) |
|
(473 |
) |
Debt
issuance costs paid |
(476 |
) |
|
(6,783 |
) |
|
— |
|
Convertible senior notes repurchase |
(80,200 |
) |
|
(8,045 |
) |
|
(98,922 |
) |
Stock
repurchase |
(58,383 |
) |
|
(74,491 |
) |
|
(79,556 |
) |
Net cash
(used in) provided by financing activities |
(158,129 |
) |
|
215,915 |
|
|
(176,827 |
) |
Cash, cash
equivalents, and restricted cash: |
|
|
|
|
|
Net
(decrease) increase for the period |
(58,831 |
) |
|
28,054 |
|
|
(15,386 |
) |
At
beginning of period |
191,521 |
|
|
163,467 |
|
|
178,853 |
|
At end of
period |
$ |
132,690 |
|
|
$ |
191,521 |
|
|
$ |
163,467 |
|
Supplemental
disclosures of cash flow information: |
|
|
|
|
|
Cash paid
for interest |
$ |
16,975 |
|
|
$ |
8,394 |
|
|
$ |
12,656 |
|
Cash paid
for income taxes |
$ |
24,243 |
|
|
$ |
41,391 |
|
|
$ |
68,870 |
|
|
WABASH NATIONAL CORPORATION |
SEGMENTS AND RELATED INFORMATION |
(Unaudited - dollars in thousands) |
|
Three Months Ended December 31, |
|
CommercialTrailer
Products |
|
DiversifiedProducts |
|
Final
MileProducts |
|
Corporate
andEliminations |
|
Consolidated |
2018 |
|
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
16,750 |
|
|
750 |
|
|
— |
|
|
— |
|
|
17,500 |
|
Used
trailers shipped |
|
100 |
|
|
50 |
|
|
— |
|
|
— |
|
|
150 |
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
424,131 |
|
|
$ |
48,950 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
473,081 |
|
Used
Trailers |
|
824 |
|
|
1,025 |
|
|
— |
|
|
— |
|
|
1,849 |
|
Components, parts and service |
|
9,214 |
|
|
27,141 |
|
|
2,628 |
|
|
(5,282 |
) |
|
33,701 |
|
Equipment
and other |
|
4,498 |
|
|
25,206 |
|
|
71,904 |
|
|
(43 |
) |
|
101,565 |
|
Total net
external sales |
|
$ |
438,667 |
|
|
$ |
102,322 |
|
|
$ |
74,532 |
|
|
$ |
(5,325 |
) |
|
$ |
610,196 |
|
Gross
profit |
|
$ |
45,170 |
|
|
$ |
17,420 |
|
|
$ |
7,362 |
|
|
$ |
(896 |
) |
|
$ |
69,056 |
|
Income
(Loss) from operations |
|
$ |
39,075 |
|
|
$ |
(6,111 |
) |
|
$ |
(1,463 |
) |
|
$ |
(8,723 |
) |
|
$ |
22,778 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Twelve Months Ended December 31, |
|
CommercialTrailer
Products |
|
DiversifiedProducts |
|
Final
MileProducts |
|
Corporate
andEliminations |
|
Consolidated |
2018 |
|
|
|
|
|
|
|
|
|
|
New
trailers shipped |
|
59,500 |
|
|
2,650 |
|
|
— |
|
|
— |
|
|
62,150 |
|
Used
trailers shipped |
|
950 |
|
|
150 |
|
|
— |
|
|
— |
|
|
1,100 |
|
|
|
|
|
|
|
|
|
|
|
|
New
Trailers |
|
$ |
1,473,583 |
|
|
$ |
164,790 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,638,373 |
|
Used
Trailers |
|
9,618 |
|
|
3,514 |
|
|
— |
|
|
— |
|
|
13,132 |
|
Components, parts and service |
|
34,994 |
|
|
122,099 |
|
|
9,968 |
|
|
(21,811 |
) |
|
145,250 |
|
Equipment
and other |
|
18,743 |
|
|
103,568 |
|
|
348,281 |
|
|
(69 |
) |
|
470,523 |
|
Total net
external sales |
|
$ |
1,536,938 |
|
|
$ |
393,971 |
|
|
$ |
358,249 |
|
|
$ |
(21,880 |
) |
|
$ |
2,267,278 |
|
Gross
profit |
|
$ |
168,343 |
|
|
$ |
68,428 |
|
|
$ |
48,771 |
|
|
$ |
(1,891 |
) |
|
$ |
283,651 |
|
Income
(Loss) from operations |
|
$ |
141,793 |
|
|
$ |
(3,033 |
) |
|
$ |
7,909 |
|
|
$ |
(35,682 |
) |
|
$ |
110,987 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
WABASH NATIONAL CORPORATION |
SEGMENT and COMPANY FINANCIAL
INFORMATION |
(Unaudited - dollars in thousands) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Commercial
Trailer Products |
|
|
|
|
|
|
|
Income
from operations |
$ |
39,075 |
|
|
$ |
40,134 |
|
|
$ |
141,793 |
|
|
$ |
151,999 |
|
|
|
|
|
|
|
|
|
Diversified
Products |
|
|
|
|
|
|
|
Income
from operations |
(6,111 |
) |
|
5,532 |
|
|
(3,033 |
) |
|
20,376 |
|
Adjustments: |
|
|
|
|
|
|
|
Impairment |
12,979 |
|
|
— |
|
|
24,968 |
|
|
— |
|
Adjusted
operating income |
6,868 |
|
|
5,532 |
|
|
21,935 |
|
|
20,376 |
|
|
|
|
|
|
|
|
|
Final Mile
Products |
|
|
|
|
|
|
|
Income
from operations |
(1,463 |
) |
|
(2,098 |
) |
|
7,909 |
|
|
(2,098 |
) |
Adjustments: |
|
|
|
|
|
|
|
Acquisition expenses and related charges |
— |
|
|
5,407 |
|
|
751 |
|
|
5,407 |
|
Adjusted
operating income |
(1,463 |
) |
|
3,309 |
|
|
8,660 |
|
|
3,309 |
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
Income
from operations |
(8,723 |
) |
|
(8,275 |
) |
|
(35,682 |
) |
|
(39,461 |
) |
Adjustments: |
|
|
|
|
|
|
|
Acquisition expenses and related charges |
— |
|
|
901 |
|
|
68 |
|
|
9,605 |
|
Executive
severance |
180 |
|
|
— |
|
|
180 |
|
|
238 |
|
Facility
transactions |
413 |
|
|
— |
|
|
413 |
|
|
— |
|
Adjusted
operating income |
(8,130 |
) |
|
(7,374 |
) |
|
(35,021 |
) |
|
(29,618 |
) |
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
Income
from operations |
22,778 |
|
|
35,293 |
|
|
110,987 |
|
|
130,816 |
|
Adjustments: |
|
|
|
|
|
|
|
Impairment |
12,979 |
|
|
— |
|
|
24,968 |
|
|
— |
|
Acquisition expenses and related charges |
— |
|
|
6,308 |
|
|
819 |
|
|
15,012 |
|
Executive
severance |
180 |
|
|
— |
|
|
180 |
|
|
238 |
|
Facility
transactions |
413 |
|
|
— |
|
|
413 |
|
|
— |
|
Adjusted
operating income |
$ |
36,350 |
|
|
$ |
41,601 |
|
|
$ |
137,367 |
|
|
$ |
146,066 |
|
|
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 December 31, |
|
Twelve Months Ended December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net income |
$ |
11,584 |
|
|
$ |
49,356 |
|
|
$ |
69,421 |
|
|
$ |
111,422 |
|
Income tax expense |
5,374 |
|
|
(21,204 |
) |
|
26,583 |
|
|
11,116 |
|
Interest expense |
7,110 |
|
|
7,335 |
|
|
28,759 |
|
|
16,400 |
|
Depreciation and
amortization |
10,163 |
|
|
9,651 |
|
|
40,682 |
|
|
35,053 |
|
Stock-based
compensation |
1,690 |
|
|
2,117 |
|
|
10,169 |
|
|
10,429 |
|
Acquisition
expenses |
— |
|
|
4,002 |
|
|
68 |
|
|
12,706 |
|
Impairment |
12,979 |
|
|
— |
|
|
24,968 |
|
|
— |
|
Other non-operating
income |
(1,289 |
) |
|
(194 |
) |
|
(13,775 |
) |
|
(8,122 |
) |
Operating EBITDA |
$ |
47,611 |
|
|
$ |
51,063 |
|
|
$ |
186,875 |
|
|
$ |
189,004 |
|
Adjusted Net
Income2: |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net income |
$ |
11,584 |
|
|
$ |
49,356 |
|
|
$ |
69,421 |
|
|
$ |
111,422 |
|
Adjustments: |
|
|
|
|
|
|
|
Facility
transactions3 |
194 |
|
|
274 |
|
|
(10,585 |
) |
|
(6,546 |
) |
Loss on
debt extinguishment |
106 |
|
|
32 |
|
|
280 |
|
|
800 |
|
Impairment |
12,979 |
|
|
— |
|
|
24,968 |
|
|
— |
|
Acquisition expenses and related charges |
— |
|
|
6,308 |
|
|
819 |
|
|
15,012 |
|
Executive
severance expense |
180 |
|
|
— |
|
|
180 |
|
|
238 |
|
Tax
effect of aforementioned items |
(3,499 |
) |
|
(2,381 |
) |
|
(4,072 |
) |
|
(3,421 |
) |
Tax
reform and other discrete tax adjustments |
— |
|
|
(31,339 |
) |
|
3,084 |
|
|
(31,339 |
) |
Adjusted net
income |
$ |
21,544 |
|
|
$ |
22,250 |
|
|
$ |
84,095 |
|
|
$ |
86,166 |
|
Adjusted
Diluted Earnings Per Share2: |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Diluted earnings per
share |
$ |
0.21 |
|
|
$ |
0.80 |
|
|
$ |
1.19 |
|
|
$ |
1.78 |
|
Adjustments: |
|
|
|
|
|
|
|
Facility
transactions3 |
— |
|
|
0.01 |
|
|
(0.18 |
) |
|
(0.10 |
) |
Loss on
debt extinguishment |
— |
|
|
— |
|
|
0.01 |
|
|
0.01 |
|
Impairment |
0.23 |
|
|
— |
|
|
0.43 |
|
|
|
Acquisition expenses and related charges |
— |
|
|
0.10 |
|
|
0.01 |
|
|
0.24 |
|
Executive
severance expense |
— |
|
|
— |
|
|
— |
|
|
— |
|
Tax
effect of aforementioned items |
(0.06 |
) |
|
(0.04 |
) |
|
(0.07 |
) |
|
(0.05 |
) |
Tax
reform and other discrete tax adjustments |
— |
|
|
(0.51 |
) |
|
0.05 |
|
|
(0.50 |
) |
Adjusted diluted
earnings per share |
$ |
0.38 |
|
|
$ |
0.36 |
|
|
$ |
1.44 |
|
|
$ |
1.38 |
|
|
|
|
|
|
|
|
|
Weighted Average # of
Diluted Shares O/S |
56,290 |
|
|
61,567 |
|
|
58,430 |
|
|
62,599 |
|
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 net income and adjusted earnings
per diluted share reflect adjustments for acquisition expenses, 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.
Media Contact:Dana StelselDirector, Corporate
Communications(765) 771-5766dana.stelsel@wabashnational.com
Investor Relations:Ryan ReedDirector of
Investor Relations(765) 771-5805ryan.reed@wabashnational.com
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