Wabash National Corporation (NYSE: WNC), the innovation leader of
engineered solutions for the transportation, logistics and
distribution industries, today reported results for the full year
and quarter ended December 31, 2019.
Net sales for the fourth quarter 2019 were
$579.0 million while operating income was $31.8 million or 5.5
percent of net sales. For the full year of 2019, total revenue
reached a new record of $2.3 billion while generating operating
income of $142.8 million or 6.2 percent of net sales.
Net income for the fourth quarter 2019 was $18.4
million, or $0.34 per diluted share. For the full year of 2019, net
income was $89.6 million or earnings per diluted share of
$1.62. Operating EBITDA, a non-GAAP measure that excludes the
effects of certain items, for the fourth quarter 2019 was $44.2
million, or 7.6 percent of net sales, and full year operating
EBITDA of $194.2 million, or 8.4 percent of net sales.
“I’m pleased to achieve a new all-time
sales record of $2.3 billion in 2019 while also generating stronger
operating income, net income and EPS versus the prior year,"
explained Brent Yeagy, president and chief executive
officer. "Additionally, full year cash generation was
strong and I’m excited to add to our streak of what is
now 7 consecutive years of free cash conversion of 100% or
greater.”
Outlook
For the full year ending December 31, 2020,
the company has issued guidance of $2.05 to $2.15 billion in sales
and an earnings per diluted share midpoint of $1.20 with a
range of $1.10 to $1.30.
Mr. Yeagy continued, “Moderating trailer demand
in 2020 has been expected for some time and we've taken a proactive
approach toward strengthening our balance sheet and planning to
execute in such an environment. I am confident in our team's
ability to succeed in any phase of the cycle and also to continue
moving forward with our strategic initiatives under the guidance of
the Wabash Management System.”
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 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 December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(dollars in thousands) |
New trailers shipped |
|
14,300 |
|
|
16,750 |
|
|
650 |
|
|
750 |
|
|
— |
|
|
— |
|
Net sales |
|
$ |
399,288 |
|
|
$ |
438,667 |
|
|
$ |
94,661 |
|
|
$ |
102,322 |
|
|
$ |
92,740 |
|
|
$ |
74,532 |
|
Gross profit |
|
$ |
50,384 |
|
|
$ |
45,170 |
|
|
$ |
16,324 |
|
|
$ |
17,420 |
|
|
$ |
6,239 |
|
|
$ |
7,362 |
|
Gross profit margin |
|
12.6 |
% |
|
10.3 |
% |
|
17.2 |
% |
|
17.0 |
% |
|
6.7 |
% |
|
9.9 |
% |
Income (loss) from
operations |
|
$ |
43,135 |
|
|
$ |
39,075 |
|
|
$ |
5,610 |
|
|
$ |
(6,111 |
) |
|
$ |
(5,914 |
) |
|
$ |
(1,463 |
) |
Income (loss) from operations
margin |
|
10.8 |
% |
|
8.9 |
% |
|
5.9 |
% |
|
(6.0 |
)% |
|
(6.4 |
)% |
|
(2.0 |
)% |
Commercial Trailer Products’ net sales for the
fourth quarter totaled $399.3 million, a decrease of $39.4 million,
or 9.0 percent. Gross profit margin for the fourth quarter
increased 230 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 10.4 percent, from the fourth quarter last year to
$43.1 million, or 10.8 percent of net sales.
Diversified Products’ net sales for the fourth
quarter were $94.7 million, a decrease of $7.7 million, or 7.5
percent, as compared to the prior year quarter, due primarily to
the impact from the divestiture of a business. Gross profit margin
as compared to the prior year period increased 20 basis points,
primarily due to product and customer mix. Operating income in the
fourth quarter of 2019 was $5.6 million, or 5.9 percent of net
sales, compared to a loss of $6.1 million on a GAAP basis or income
of $6.9 million on a non-GAAP Adjusted basis during the fourth
quarter 2018.
Final Mile Products’ net sales for the fourth
quarter totaled $92.7 million, an increase of $18.2 million or 24.4
percent. Gross profit and gross profit margin for the fourth
quarter were $6.2 million and 6.7 percent, respectively. Operating
loss during the fourth quarter was $5.9 million, or 6.4 percent of
net sales. While the business saw continued growth, operating
results were negatively impacted during the quarter by operational
inefficiencies as the business encountered headwinds relating to
demand fluctuations and product mix.
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 Segment EBITDA, a non-GAAP financial
measure, is calculated by adding back segment depreciation and
amortization expense to segment operating income (loss), and
excludes certain costs, expenses, other charges, gains or income
that are included in the determination of operating income under
GAAP, but that management would not consider important in
evaluating the quality of the Company’s segment operating results
as they are not indicative of each segment's core operating results
or may obscure trends useful in evaluating the segment's continuing
activities. Adjusted Segment EBITDA Margin is calculated by
dividing Adjusted Segment EBITDA by segment total net sales.
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.
Fourth Quarter 2019 Conference
Call
Wabash National will discuss its results during
its quarterly investor conference call on Wednesday, February 12th,
beginning at 10:00 a.m. EST. 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, participant code
5877386. A replay of the call will be available on the site
shortly after the conclusion of the presentation.
About Wabash National
Corporation
As the innovation leader of engineered solutions
for the transportation, logistics and distribution industries,
Wabash National Corporation (NYSE:WNC) is changing how the world
reaches you. Headquartered in Lafayette, Indiana, the company’s
mission is to enable customers to succeed with breakthrough ideas
and solutions that help them move everything from first to final
mile. Wabash National designs and manufactures a diverse range of
products, including: dry freight and refrigerated trailers,
platform trailers, bulk tank trailers, dry and refrigerated truck
bodies, 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
CORPORATIONCONSOLIDATED BALANCE
SHEETS(Unaudited - dollars in thousands)
|
December 31, 2019 |
|
December 31, 2018 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
140,516 |
|
|
$ |
132,690 |
|
Accounts receivable, net |
172,737 |
|
|
181,064 |
|
Inventories |
186,914 |
|
|
184,404 |
|
Prepaid expenses and other |
41,222 |
|
|
51,261 |
|
Total current assets |
541,389 |
|
|
549,419 |
|
Property, plant, and
equipment, net |
221,346 |
|
|
206,991 |
|
Goodwill |
311,026 |
|
|
311,084 |
|
Intangible assets |
189,898 |
|
|
210,328 |
|
Other assets |
40,932 |
|
|
26,571 |
|
Total assets |
$ |
1,304,591 |
|
|
$ |
1,304,393 |
|
Liabilities and Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Current portion of long-term debt |
$ |
— |
|
|
$ |
1,880 |
|
Current portion of finance lease obligations |
327 |
|
|
299 |
|
Accounts payable |
134,821 |
|
|
153,113 |
|
Other accrued liabilities |
124,230 |
|
|
116,384 |
|
Total current liabilities |
259,378 |
|
|
271,676 |
|
Long-term debt |
455,386 |
|
|
503,018 |
|
Finance lease obligations |
378 |
|
|
714 |
|
Deferred income taxes |
37,576 |
|
|
34,905 |
|
Other non-current
liabilities |
30,885 |
|
|
20,231 |
|
Total liabilities |
783,603 |
|
|
830,544 |
|
Commitments and
contingencies |
|
|
|
Stockholders' equity: |
|
|
|
Common stock, $0.01 par value: 200,000,000 shares authorized;
53,473,620 and 55,135,788 shares outstanding, respectively |
750 |
|
|
744 |
|
Additional paid-in capital |
638,917 |
|
|
629,039 |
|
Retained earnings |
221,841 |
|
|
150,244 |
|
Accumulated other comprehensive loss |
(3,978 |
) |
|
(3,343 |
) |
Treasury stock, at cost: 21,640,109 and 19,372,735 common shares,
respectively |
(336,542 |
) |
|
(302,835 |
) |
Total stockholders' equity |
520,988 |
|
|
473,849 |
|
Total liabilities and stockholders' equity |
$ |
1,304,591 |
|
|
$ |
1,304,393 |
|
WABASH NATIONAL
CORPORATIONCONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited - dollars in thousands, except per
share amounts)
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net sales |
$ |
579,001 |
|
|
$ |
610,196 |
|
|
$ |
2,319,136 |
|
|
$ |
2,267,278 |
|
Cost of sales |
506,694 |
|
|
541,140 |
|
|
2,012,754 |
|
|
1,983,627 |
|
Gross profit |
72,307 |
|
|
69,056 |
|
|
306,382 |
|
|
283,651 |
|
General and administrative
expenses |
26,272 |
|
|
21,194 |
|
|
108,274 |
|
|
95,114 |
|
Selling expenses |
9,136 |
|
|
7,455 |
|
|
34,851 |
|
|
33,046 |
|
Amortization of intangible
assets |
5,118 |
|
|
4,650 |
|
|
20,471 |
|
|
19,468 |
|
Acquisition expenses |
— |
|
|
— |
|
|
— |
|
|
68 |
|
Impairment |
— |
|
|
12,979 |
|
|
— |
|
|
24,968 |
|
Income from operations |
31,781 |
|
|
22,778 |
|
|
142,786 |
|
|
110,987 |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest expense |
(6,517 |
) |
|
(7,110 |
) |
|
(27,340 |
) |
|
(28,759 |
) |
Other, net |
40 |
|
|
1,290 |
|
|
2,285 |
|
|
13,776 |
|
Other expense, net |
(6,477 |
) |
|
(5,820 |
) |
|
(25,055 |
) |
|
(14,983 |
) |
Income before income tax |
25,304 |
|
|
16,958 |
|
|
117,731 |
|
|
96,004 |
|
Income tax expense |
6,929 |
|
|
5,374 |
|
|
28,156 |
|
|
26,583 |
|
Net income |
$ |
18,375 |
|
|
$ |
11,584 |
|
|
$ |
89,575 |
|
|
$ |
69,421 |
|
Net income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.34 |
|
|
$ |
0.21 |
|
|
$ |
1.64 |
|
|
$ |
1.22 |
|
Diluted |
$ |
0.34 |
|
|
$ |
0.21 |
|
|
$ |
1.62 |
|
|
$ |
1.19 |
|
Weighted average
common shares outstanding (in thousands): |
|
|
|
|
|
|
|
Basic |
53,917 |
|
|
55,543 |
|
|
54,695 |
|
|
56,996 |
|
Diluted |
54,613 |
|
|
56,290 |
|
|
55,290 |
|
|
58,430 |
|
|
|
|
|
|
|
|
|
Dividends declared per
share |
$ |
0.080 |
|
|
$ |
0.080 |
|
|
$ |
0.320 |
|
|
$ |
0.305 |
|
WABASH NATIONAL
CORPORATIONCONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited - dollars in thousands)
|
Year Ended December 31, |
|
2019 |
|
2018 |
Cash flows from operating activities |
|
|
|
Net income |
$ |
89,575 |
|
|
$ |
69,421 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation |
21,886 |
|
|
21,215 |
|
Amortization of intangibles |
20,471 |
|
|
19,468 |
|
Net gain on sale of property, plant and equipment |
(109 |
) |
|
(10,148 |
) |
Loss on debt extinguishment |
165 |
|
|
280 |
|
Deferred income taxes |
2,671 |
|
|
(2,976 |
) |
Stock-based compensation |
9,036 |
|
|
10,169 |
|
Non-cash interest expense |
1,045 |
|
|
1,745 |
|
Impairment of goodwill and other long-lived assets |
— |
|
|
24,968 |
|
Accounts receivable |
8,327 |
|
|
(39,539 |
) |
Inventories |
(2,510 |
) |
|
(18,713 |
) |
Prepaid expenses and other |
(2,536 |
) |
|
4,548 |
|
Accounts payable and accrued liabilities |
(2,887 |
) |
|
32,653 |
|
Other, net |
1,150 |
|
|
(620 |
) |
Net cash provided by operating activities |
146,284 |
|
|
112,471 |
|
Cash flows from investing activities |
|
|
|
Capital expenditures |
(37,645 |
) |
|
(34,009 |
) |
Proceeds from sale of property, plant and equipment |
785 |
|
|
17,776 |
|
Acquisitions, net of cash acquired |
— |
|
|
— |
|
Other, net |
— |
|
|
3,060 |
|
Net cash used in investing activities |
(36,860 |
) |
|
(13,173 |
) |
Cash flows from financing activities |
|
|
|
Proceeds from exercise of stock options |
848 |
|
|
961 |
|
Borrowings under senior notes |
— |
|
|
— |
|
Dividends paid |
(17,797 |
) |
|
(17,768 |
) |
Borrowings under revolving credit facilities |
619 |
|
|
937 |
|
Payments under revolving credit facilities |
(619 |
) |
|
(937 |
) |
Principal payments under finance lease obligations |
(308 |
) |
|
(290 |
) |
Proceeds from issuance of term loan credit facility |
— |
|
|
— |
|
Principal payments under term loan credit facility |
(50,470 |
) |
|
(1,880 |
) |
Principal payments under industrial revenue bond |
— |
|
|
(93 |
) |
Debt issuance costs paid |
(164 |
) |
|
(476 |
) |
Convertible senior notes repurchase |
— |
|
|
(80,200 |
) |
Stock repurchase |
(33,707 |
) |
|
(58,383 |
) |
Net cash (used in) provided by financing activities |
(101,598 |
) |
|
(158,129 |
) |
Cash and cash equivalents: |
|
|
|
Net increase (decrease) in cash, cash equivalents, and restricted
cash |
7,826 |
|
|
(58,831 |
) |
Cash, cash equivalents, and restricted cash at beginning of
year |
132,690 |
|
|
191,521 |
|
Cash, cash equivalents, and restricted cash at end of year |
$ |
140,516 |
|
|
$ |
132,690 |
|
WABASH NATIONAL
CORPORATIONSEGMENTS AND RELATED
INFORMATION(Unaudited - dollars in thousands)
Three Months Ended December 31, |
|
Commercial Trailer Products |
|
Diversified Products |
|
Final Mile Products |
|
Corporate and Eliminations |
|
Consolidated |
2019 |
|
|
|
|
|
|
|
|
|
|
New trailers shipped |
|
14,300 |
|
|
650 |
|
|
— |
|
|
— |
|
|
14,950 |
|
Used trailers shipped |
|
25 |
|
|
15 |
|
|
— |
|
|
— |
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
386,037 |
|
|
$ |
51,222 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
437,259 |
|
Used Trailers |
|
199 |
|
|
301 |
|
|
— |
|
|
— |
|
|
500 |
|
Components, parts and service |
|
9,350 |
|
|
24,343 |
|
|
2,858 |
|
|
(7,447 |
) |
|
29,104 |
|
Equipment and other |
|
3,702 |
|
|
18,795 |
|
|
89,882 |
|
|
(241 |
) |
|
112,138 |
|
Total net external sales |
|
$ |
399,288 |
|
|
$ |
94,661 |
|
|
$ |
92,740 |
|
|
$ |
(7,688 |
) |
|
$ |
579,001 |
|
Gross profit |
|
$ |
50,384 |
|
|
$ |
16,324 |
|
|
$ |
6,239 |
|
|
$ |
(640 |
) |
|
$ |
72,307 |
|
Income (Loss) from operations |
|
$ |
43,135 |
|
|
$ |
5,610 |
|
|
$ |
(5,914 |
) |
|
$ |
(11,050 |
) |
|
$ |
31,781 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Twelve Months Ended December 31, |
|
Commercial Trailer Products |
|
Diversified Products |
|
Final Mile Products |
|
Corporate and Eliminations |
|
Consolidated |
2019 |
|
|
|
|
|
|
|
|
|
|
New trailers shipped |
|
54,650 |
|
|
2,850 |
|
|
— |
|
|
— |
|
|
57,500 |
|
Used trailers shipped |
|
75 |
|
|
75 |
|
|
— |
|
|
— |
|
|
150 |
|
|
|
|
|
|
|
|
|
|
|
|
New Trailers |
|
$ |
1,464,636 |
|
|
$ |
198,043 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,662,679 |
|
Used Trailers |
|
435 |
|
|
2,044 |
|
|
— |
|
|
— |
|
|
2,479 |
|
Components, parts and service |
|
40,344 |
|
|
113,024 |
|
|
15,023 |
|
|
(27,902 |
) |
|
140,489 |
|
Equipment and other |
|
16,126 |
|
|
71,405 |
|
|
426,887 |
|
|
(929 |
) |
|
513,489 |
|
Total net external sales |
|
$ |
1,521,541 |
|
|
$ |
384,516 |
|
|
$ |
441,910 |
|
|
$ |
(28,831 |
) |
|
$ |
2,319,136 |
|
Gross profit |
|
$ |
177,190 |
|
|
$ |
74,588 |
|
|
$ |
57,815 |
|
|
$ |
(3,211 |
) |
|
$ |
306,382 |
|
Income (Loss) from operations |
|
$ |
145,877 |
|
|
$ |
29,748 |
|
|
$ |
9,804 |
|
|
$ |
(42,643 |
) |
|
$ |
142,786 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
WABASH NATIONAL
CORPORATIONSEGMENT and COMPANY FINANCIAL
INFORMATION(Unaudited - dollars in thousands)
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Commercial Trailer
Products |
|
|
|
|
|
|
|
Income from operations |
$ |
43,135 |
|
|
$ |
39,077 |
|
|
$ |
145,877 |
|
|
$ |
141,795 |
|
|
|
|
|
|
|
|
|
Diversified
Products |
|
|
|
|
|
|
|
Income from operations |
5,610 |
|
|
(6,111 |
) |
|
29,748 |
|
|
(3,033 |
) |
Adjustments: |
|
|
|
|
|
|
|
Impairment |
— |
|
|
12,979 |
|
|
— |
|
|
24,968 |
|
Adjusted operating income |
5,610 |
|
|
6,868 |
|
|
29,748 |
|
|
21,935 |
|
|
|
|
|
|
|
|
|
Final Mile
Products |
|
|
|
|
|
|
|
Income from operations |
(5,914 |
) |
|
(1,465 |
) |
|
9,804 |
|
|
7,907 |
|
Adjustments: |
|
|
|
|
|
|
|
Acquisition expenses and related charges |
— |
|
|
— |
|
|
— |
|
|
751 |
|
Adjusted operating income |
(5,914 |
) |
|
(1,465 |
) |
|
9,804 |
|
|
8,658 |
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
Income from operations |
(11,050 |
) |
|
(8,723 |
) |
|
(42,643 |
) |
|
(35,682 |
) |
Adjustments: |
|
|
|
|
|
|
|
Acquisition expenses and related charges |
— |
|
|
— |
|
|
— |
|
|
68 |
|
Executive severance |
— |
|
|
180 |
|
|
— |
|
|
180 |
|
Facility transactions |
— |
|
|
413 |
|
|
— |
|
|
413 |
|
Adjusted operating income |
(11,050 |
) |
|
(8,130 |
) |
|
(42,643 |
) |
|
(35,021 |
) |
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
Income from operations |
31,781 |
|
|
22,778 |
|
|
142,786 |
|
|
110,987 |
|
Adjustments: |
|
|
|
|
|
|
|
Impairment |
— |
|
|
12,979 |
|
|
— |
|
|
24,968 |
|
Acquisition expenses and related charges |
— |
|
|
— |
|
|
— |
|
|
819 |
|
Executive severance |
— |
|
|
180 |
|
|
— |
|
|
180 |
|
Facility transactions |
— |
|
|
413 |
|
|
— |
|
|
413 |
|
Adjusted operating income |
$ |
31,781 |
|
|
$ |
36,350 |
|
|
$ |
142,786 |
|
|
$ |
137,367 |
|
WABASH NATIONAL
CORPORATIONRECONCILIATION OF GAAP FINANCIAL
MEASURES TONON-GAAP FINANCIAL
MEASURES(Unaudited - dollars in thousands, except per
share amounts)
Operating
EBITDA1: |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net income |
$ |
18,375 |
|
|
$ |
11,584 |
|
|
$ |
89,575 |
|
|
$ |
69,421 |
|
Income tax expense |
6,929 |
|
|
5,374 |
|
|
28,156 |
|
|
26,583 |
|
Interest expense |
6,517 |
|
|
7,110 |
|
|
27,340 |
|
|
28,759 |
|
Depreciation and
amortization |
10,746 |
|
|
10,164 |
|
|
42,357 |
|
|
40,683 |
|
Stock-based compensation |
1,674 |
|
|
1,690 |
|
|
9,036 |
|
|
10,169 |
|
Impairment |
— |
|
|
12,979 |
|
|
— |
|
|
24,968 |
|
Acquisition expenses |
— |
|
|
— |
|
|
— |
|
|
68 |
|
Other non-operating
income |
(40 |
) |
|
(1,290 |
) |
|
(2,285 |
) |
|
(13,776 |
) |
Operating EBITDA |
$ |
44,201 |
|
|
$ |
47,611 |
|
|
$ |
194,179 |
|
|
$ |
186,875 |
|
Adjusted Net
Income2: |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net income |
$ |
18,375 |
|
|
$ |
11,584 |
|
|
$ |
89,575 |
|
|
$ |
69,421 |
|
Adjustments: |
|
|
|
|
|
|
|
Facility transactions3 |
— |
|
|
194 |
|
|
— |
|
|
(10,585 |
) |
Loss on debt extinguishment |
— |
|
|
106 |
|
|
— |
|
|
280 |
|
Impairment |
— |
|
|
12,979 |
|
|
— |
|
|
24,968 |
|
Acquisition expenses and related charges |
— |
|
|
— |
|
|
— |
|
|
819 |
|
Executive severance expense |
— |
|
|
180 |
|
|
— |
|
|
180 |
|
Tax effect of aforementioned items |
— |
|
|
(3,499 |
) |
|
— |
|
|
(4,072 |
) |
Tax reform and other discrete tax adjustments |
— |
|
|
— |
|
|
— |
|
|
3,084 |
|
Adjusted net income |
$ |
18,375 |
|
|
$ |
21,544 |
|
|
$ |
89,575 |
|
|
$ |
84,095 |
|
Adjusted Diluted
Earnings Per Share2: |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Diluted earnings per share |
$ |
0.34 |
|
|
$ |
0.21 |
|
|
$ |
1.62 |
|
|
$ |
1.19 |
|
Adjustments: |
|
|
|
|
|
|
|
Facility transactions3 |
— |
|
|
— |
|
|
— |
|
|
(0.18 |
) |
Loss on debt extinguishment |
— |
|
|
— |
|
|
— |
|
|
0.01 |
|
Impairment |
— |
|
|
0.23 |
|
|
— |
|
|
0.43 |
|
Acquisition expenses and related charges |
— |
|
|
— |
|
|
— |
|
|
0.01 |
|
Executive severance expense |
— |
|
|
— |
|
|
— |
|
|
— |
|
Tax effect of aforementioned items |
— |
|
|
(0.06 |
) |
|
— |
|
|
(0.07 |
) |
Tax reform and other discrete tax adjustments |
— |
|
|
— |
|
|
— |
|
|
0.05 |
|
Adjusted diluted earnings per
share |
$ |
0.34 |
|
|
$ |
0.38 |
|
|
$ |
1.62 |
|
|
$ |
1.44 |
|
|
|
|
|
|
|
|
|
Weighted Average # of Diluted
Shares O/S |
54,613 |
|
|
56,290 |
|
|
55,290 |
|
|
58,430 |
|
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 2018
relate to gains and/or losses incurred for the sale or closure of
former Company locations.
WABASH NATIONAL
CORPORATIONRECONCILIATION OF FREE CASH FLOW
ANDFREE CASH FLOW CONVERSION(Unaudited -
dollars in thousands)
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
Net cash provided by operating activities |
$ |
146,284 |
|
|
$ |
112,471 |
|
Capital expenditures |
(37,645 |
) |
|
(34,009 |
) |
Free cash flow1 |
$ |
108,639 |
|
|
$ |
78,462 |
|
|
|
|
|
Free cash flow |
$ |
108,639 |
|
|
$ |
78,462 |
|
Divided by: Net income |
$ |
89,575 |
|
|
$ |
69,421 |
|
Free cash flow
conversion2 |
121 |
% |
|
113 |
% |
1 Free cash flow is defined as net cash provided by operating
activities minus capital expenditures.2 Free cash flow conversion
is defined as free cash flow divided by net income.
WABASH NATIONAL
CORPORATIONRECONCILIATION OF ADJUSTED SEGMENT
EBITDA1AND ADJUSTED SEGMENT EBITDA
MARGIN1(Unaudited - dollars in thousands)
|
Commercial Trailer Products |
|
Diversified Products |
|
Final Mile Products |
Twelve Months Ended
December 31, |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Income (Loss) from operations |
$ |
145,877 |
|
|
$ |
141,795 |
|
|
$ |
29,748 |
|
|
$ |
(3,033 |
) |
|
$ |
9,804 |
|
|
$ |
7,907 |
|
Depreciation and
amortization |
10,667 |
|
|
9,631 |
|
|
18,621 |
|
|
21,177 |
|
|
11,361 |
|
|
8,314 |
|
Impairment |
— |
|
|
— |
|
|
— |
|
|
24,968 |
|
|
— |
|
|
— |
|
Acquisition expenses and
related charges |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
751 |
|
Adjusted Segment EBITDA |
$ |
156,544 |
|
|
$ |
151,426 |
|
|
$ |
48,369 |
|
|
$ |
43,112 |
|
|
$ |
21,165 |
|
|
$ |
16,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment EBITDA
Margin |
10.3 |
% |
|
9.9 |
% |
|
12.6 |
% |
|
10.9 |
% |
|
4.8 |
% |
|
4.7 |
% |
1 Adjusted Segment EBITDA, a non-GAAP financial
measure, is calculated by adding back segment depreciation and
amortization expense to segment operating income (loss), and
excludes certain costs, expenses, other charges, gains or income
that are included in the determination of operating income under
GAAP, but that management would not consider important in
evaluating the quality of the Company’s segment operating results
as they are not indicative of each segment's core operating results
or may obscure trends useful in evaluating the segment's continuing
activities. Adjusted Segment EBITDA Margin is calculated by
dividing Adjusted Segment EBITDA by segment total net sales.
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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