• Wabash National Corporation Announces Third Quarter 2021 Results

    ソース: Nasdaq GlobeNewswire / 09 11 2021 06:58:01   America/New_York

    • Record backlog of $1.9 billion up 87% YoY
    • Revenue of $482.6 million on increasing new trailer shipments
    • Operating income of $18.3 million
    • Earnings per share of $0.22, exceeding prior outlook
    • 2022 EPS outlook of $1.70 on stronger production run-rates and pricing

    LAFAYETTE, Ind., Nov. 09, 2021 (GLOBE NEWSWIRE) -- Wabash National Corporation (NYSE: WNC), the innovation leader of engineered solutions for the transportation, logistics and distribution industries, today reported results for the quarter ended September 30, 2021.

    Net sales for the third quarter 2021 of $482.6 million increased 37.3% versus the prior year quarter as the company continued to scale its ability to serve strong customer demand. Consolidated gross profit was $51.0 million, or 10.6% of sales. Operating income was $18.3 million, or 3.8% of sales during the quarter. Earnings per share was $0.22 on both a GAAP and non-GAAP basis.

    Total company backlog as of September 30, 2021 was approximately $1.9 billion - an increase of $600 million sequentially from Q2 2021. Wabash National's backlog of $1.9 billion represents an increase of 87% compared to September of 2020 and is an all-time record for the Company.

    “Wabash continues to execute well in the midst of an uneven business and manufacturing environment,” explained Brent Yeagy, President and Chief Executive Officer. “Generating earnings per share exceeding our prior outlook speaks to our employees' agile performance and this management team's ability to provide credible guidance. We continue to monitor changes in the supply chain and offer our best look at future financial performance.”

    For the full year ending December 31, 2021, the company modified its EPS outlook to $0.60 to $0.65.

    “As we fine-tune our guidance for the remainder of 2021 to reflect increased supply chain and material cost headwinds, we are excited by the record strength in our order book and the opportunity for strong financial performance in 2022," said Yeagy. "Assuming little change in labor and supply chain conditions, the combination of a stronger jumping off point in build rates and a hard reset on pricing within our 2022 order book allows us to offer an initial EPS outlook of $1.70 for 2022.”

    Business Segment Highlights

    Effective in the third quarter of 2021, Wabash has updated its segment reporting structure to align with how the business is operated and how the company goes to market.

    "Following our One Wabash organizational changes, we are excited to present a refreshed segment view that is consistent with how we are now managing our business," said Mike Pettit, Senior Vice President and Chief Financial Officer. "Our new segmentation structure reflects our enhanced focus on new growth opportunities and also aligns how we discuss the business with how we operate the business. This will create enhanced transparency and a more simplified discussion of how and where value is created at Wabash for our employees, our customers, and our shareholders."

    The table below is a summary of select segment operating and financial results prior to the elimination of intersegment sales for the third quarter of 2021 and 2020. A complete disclosure of the results by individual segment is included in the tables following this release.

      Wabash National Corporation    
    Three Months Ended September 30, 2021 2020    
    New Units Shipped        
    Trailers 12,455  8,485     
    Truck bodies 3,780  3,600     
             
      Transportation Solutions Parts & Service
    Three Months Ended September 30, 2021 2020 2021 2020
      (dollars in thousands)
    Net sales $442,636  $307,357  $41,903  $47,258 
    Gross profit $44,705  $34,528  $8,268  $10,113 
    Gross profit margin 10.1%  11.2%  19.7%  21.4% 
    Income (loss) from operations $25,970  $13,522  $4,148  $5,878 
    Income (loss) from operations margin 5.9%  4.4%  9.9%  12.4% 
    Adjusted income (loss) from operations $25,970  $13,522  $4,148  $5,878 
    Adjusted income (loss) from operations margin 5.9%  4.4%  9.9%  12.4% 

    Transportation Solutions’ net sales for the third quarter were $442.6 million, an increase of 44.0% as compared to the prior year quarter, as operations scaled to meet improved customer demand. Operating income was $26.0 million or 5.9% of sales during the quarter.

    Parts & Service's net sales for the third quarter were $41.9 million, a decrease of 11.3% as compared to the prior year quarter, primarily due to the divestiture of Extract Technology on June 30, 2021. Operating income was $4.1 million, or 9.9% of sales during the quarter.

    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, free cash flow, adjusted operating income (loss), adjusted net income (loss), adjusted earnings per share, adjusted segment EBITDA, and adjusted segment EBITDA margin. 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 (loss), and reconciliations to GAAP financial statements should be carefully evaluated.

    Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, impairment and other, net, 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 (loss) and net income (loss), is beneficial to an investor’s understanding of the Company’s operating performance. A reconciliation of operating EBITDA to net income (loss) is included in the tables following this release.

    Free cash flow is defined as net cash (used in) provided by operating activities minus capital expenditures. Management believes providing free cash flow is useful for investors to understand the Company’s performance and results of cash generation period to period with the exclusion of the item identified above. Management believes the presentation of free cash flow, when combined with the GAAP presentations of cash provided by operating activities, is beneficial to an investor’s understanding of the Company’s operating performance. A reconciliation of free cash flow to cash (used in) provided by operating activities is included in the tables following this release.

    Adjusted operating income (loss) and margin, non-GAAP financial measures, exclude certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) 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 (loss) and margin 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 (loss) and margin 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 (loss) to operating income (loss), the most comparable GAAP financial measure, is included in the tables following this release.

    Adjusted net income (loss) and adjusted earnings per diluted share reflect adjustments for the impact of sales and divestitures, debt transactions, and non-cash impairment, and the related tax effects of these 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 (loss) and diluted net income (loss) per share, is beneficial to an investor’s understanding of the Company’s performance.

    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 (loss) 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. A reconciliation of adjusted segment EBITDA to income (loss) from operations is included in the tables following this release.

    Third Quarter 2021 Conference Call

    Wabash National will discuss its results during its quarterly investor conference call on Tuesday, November 9, 2021, 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 (833) 476-0947, conference ID 3504758. 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, liquid tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions and specialty food grade equipment. Its innovative products are sold under the following brand names: Wabash National®, Benson®, Brenner® Tank, Bulk Tank International, DuraPlate®, 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 a continued or prolonged shutdown or reduction of our operations, substantially reduced customer orders or sales volumes and supply disruptions due to the coronavirus (COVID-19) outbreak, the continued integration of Supreme into the Company’s business, adverse reactions to the transaction by customers, suppliers or strategic partners, uncertain economic conditions including the possibility that customer demand may not meet our expectations, increased competition, reliance on certain customers and corporate partnerships, risks of customer pick-up delays, shortages and costs of raw materials including the impact of tariffs or other international trade developments, risks in implementing and sustaining improvements in the Company’s manufacturing operations and cost containment, dependence on industry trends and timing, supplier constraints, labor costs and availability, customer acceptance of and reactions to pricing changes and costs of indebtedness. Readers should review and consider the various disclosures made by the Company in this press release and in the Company’s reports to its stockholders and periodic reports on Forms 10-K and 10-Q.


    WABASH NATIONAL CORPORATION
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited - dollars in thousands)
     
     September 30,
    2021    		 December 31,
    2020
    Assets   
    Current assets:   
    Cash and cash equivalents$49,374   $217,677  
    Accounts receivable, net213,808   101,301  
    Inventories, net259,635   163,750  
    Prepaid expenses and other59,347   63,036  
    Total current assets582,164   545,764  
    Property, plant, and equipment, net208,456   209,676  
    Goodwill188,443   199,560  
    Intangible assets, net148,418   166,887  
    Other assets43,859   39,583  
    Total assets$1,171,340   $1,161,470  
    Liabilities and Stockholders’ Equity   
    Current liabilities:   
    Current portion of long-term debt$—   $—  
    Current portion of finance lease obligations119   348  
    Accounts payable181,251   104,425  
    Other accrued liabilities106,607   130,980  
    Total current liabilities287,977   235,753  
    Long-term debt419,130   447,979  
    Finance lease obligations—   30  
    Deferred income taxes49,465   46,777  
    Other non-current liabilities28,574   26,052  
    Total liabilities785,146   756,591  
    Commitments and contingencies   
    Stockholders’ equity:   
    Common stock 200,000,000 shares authorized, $0.01 par value, 49,574,651 and 52,536,482 shares outstanding, respectively759   755  
    Additional paid-in capital652,530   644,695  
    Retained earnings121,495   107,233  
    Accumulated other comprehensive income21,866   7,633  
    Treasury stock at cost, 26,358,147 and 23,004,607 common shares, respectively(410,456) (355,437)
    Total stockholders' equity386,194   404,879  
    Total liabilities and stockholders’ equity$1,171,340   $1,161,470  


    WABASH NATIONAL CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited - dollars in thousands, except per share amounts)
     
     Three Months Ended September 30, Nine Months Ended September 30,
     2021 2020 2021 2020
    Net sales$482,566  $351,584  $1,323,991  $1,077,811 
    Cost of sales431,521  308,390  1,170,172  963,553 
    Gross profit51,045  43,194  153,819  114,258 
    General and administrative expenses20,966  22,749  66,740  68,574 
    Selling expenses5,590  6,510  18,320  19,394 
    Amortization of intangible assets5,631  5,496  17,228  16,484 
    Impairment and other, net595  31  (631) 105,455 
    Income (loss) from operations18,263  8,408  52,162  (95,649)
    Other income (expense):       
    Interest expense(5,847) (5,749) (18,031) (17,903)
    Other, net232  (57) (195) 348 
    Other expense, net(5,615) (5,806) (18,226) (17,555)
    Income (loss) before income tax expense (benefit)12,648  2,602  33,936  (113,204)
    Income tax expense (benefit)1,640  (1,285) 7,459  (10,298)
    Net income (loss)$11,008  $3,887  $26,477  $(102,906)
            
    Net income (loss) per share:       
    Basic$0.22  $0.07  $0.52  $(1.94)
    Diluted$0.22  $0.07  $0.51  $(1.94)
    Weighted average common shares outstanding (in thousands):       
    Basic49,974  52,912  51,116  52,980 
    Diluted50,581  53,380  51,785  52,980 
            
    Dividends declared per share$0.08  $0.08  $0.24  $0.24 


    WABASH NATIONAL CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited - dollars in thousands)
     
     Nine Months Ended September 30,
     2021 2020
    Cash flows from operating activities   
    Net income (loss)$26,477  $(102,906)
    Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities   
    Depreciation19,593  18,656 
    Amortization of intangibles17,228  16,484 
    Net gain on sale of property, plant and equipment and business divestiture(1,447) (1,669)
    Loss on debt extinguishment452  219 
    Deferred income taxes(1,756) (753)
    Stock-based compensation5,889  2,278 
    Impairment817  107,114 
    Non-cash interest expense882  807 
    Accounts receivable(118,176) 68,095 
    Inventories(96,818) (14,596)
    Prepaid expenses and other1,054  (3,086)
    Accounts payable and accrued liabilities65,424  20,128 
    Other, net6,152  (3,672)
    Net cash (used in) provided by operating activities$(74,229) $107,099 
    Cash flows from investing activities   
    Capital expenditures(20,192) (13,719)
    Proceeds from the sale of assets and business divestiture21,967  2,726 
    Net cash provided by (used in) investing activities$1,775  $(10,993)
    Cash flows from financing activities   
    Proceeds from exercise of stock options1,949  44 
    Dividends paid(12,470) (13,015)
    Borrowings under revolving credit facilities347  45,584 
    Payments under revolving credit facilities(347) (45,584)
    Principal payments under finance lease obligations(259) (244)
    Borrowings under term loan credit facility, net of original issuance discount—  148,500 
    Principal payments under term loan credit facility(30,000) (135,228)
    Principal payments against senior notes—  (10,000)
    Debt issuance costs paid(50) (792)
    Stock repurchases(55,019) (10,065)
    Net cash used in financing activities$(95,849) $(20,800)
    Cash and cash equivalents:   
    Net (decrease) increase in cash, cash equivalents, and restricted cash$(168,303) $75,306 
    Cash, cash equivalents, and restricted cash at beginning of period217,677  140,516 
    Cash, cash equivalents, and restricted cash at end of period$49,374  $215,822 


    WABASH NATIONAL CORPORATION
    SEGMENTS AND RELATED INFORMATION
    (Unaudited - dollars in thousands)
     
      Wabash National Corporation    
    Three Months Ended September 30, 2021 2020    
    Units Shipped        
    New trailers 12,455  8,485     
    New truck bodies 3,780  3,600     
    Used trailers 15  140     
             
    Three Months Ended September 30, Transportation
    Solutions    		 Parts & Service Corporate and
    Eliminations    		 Consolidated
    2021        
    New Trailers $375,430  $—  $—  $375,430 
    Used Trailers —  465  —  465 
    Components, parts and service —  31,974  (1,973) 30,001 
    Equipment and other 67,206  9,464  —  76,670 
    Total net external sales $442,636  $41,903  $(1,973) $482,566 
    Gross profit $44,705  $8,268  $(1,928) $51,045 
    Income (loss) from operations $25,970  $4,148  $(11,855) $18,263 
    Adjusted income (loss) from operations1 $25,970  $4,148  $(11,855) $18,263 
             
    2020        
    New Trailers $251,998  $1,510  $(444) $253,064 
    Used Trailers 505  1,456  —  1,961 
    Components, parts and service —  29,369  (2,587) 26,782 
    Equipment and other 54,854  14,923  —  69,777 
    Total net external sales $307,357  $47,258  $(3,031) $351,584 
    Gross profit $34,528  $10,113  $(1,447) $43,194 
    Income (loss) from operations $13,522  $5,878  $(10,992) $8,408 
    Adjusted income (loss) from operations1 $13,522  $5,878  $(9,836) $9,564 

    1 Adjusted operating income (loss), a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) 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 (loss) 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 (loss) to provide investors with a better understanding of the Company’s view of our results as compared to prior periods.


    WABASH NATIONAL CORPORATION
    SEGMENTS AND RELATED INFORMATION
    (Unaudited - dollars in thousands)
     
      Wabash National Corporation    
    Nine Months Ended September 30, 2021 2020    
    Units Shipped        
    New trailers 33,710  26,030     
    New truck bodies 13,330  10,130     
    Used trailers 70  430     
             
    Nine Months Ended September 30, Transportation
    Solutions    		 Parts & Service Corporate and
    Eliminations    		 Consolidated
    2021        
    New Trailers $966,193  $—  $—  $966,193 
    Used Trailers 165  1,690  —  1,855 
    Components, parts and service —  101,747  (5,205) 96,542 
    Equipment and other 223,815  35,586  —  259,401 
    Total net external sales $1,190,173  $139,023  $(5,205) $1,323,991 
    Gross profit $129,776  $28,912  $(4,869) $153,819 
    Income (loss) from operations $69,492  $18,509  $(35,839) $52,162 
    Adjusted income (loss) from operations1 $69,492  $16,635  $(35,839) $50,288 
             
    2020        
    New Trailers $781,497  $3,098  $(3,390) $781,205 
    Used Trailers 2,979  4,106  —  7,085 
    Components, parts and service —  92,500  (7,437) 85,063 
    Equipment and other 169,673  34,785  —  204,458 
    Total net external sales $954,149  $134,489  $(10,827) $1,077,811 
    Gross profit $87,195  $31,301  $(4,238) $114,258 
    Loss from operations $(43,098) $(21,466) $(31,085) $(95,649)
    Adjusted income (loss) from operations1 $25,159  $17,391  $(29,929) $12,621 

    1 Adjusted operating income (loss), a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) 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 (loss) 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 (loss) to provide investors with a better understanding of the Company’s view of our results as compared to prior periods.


    WABASH NATIONAL CORPORATION
    SEGMENT AND COMPANY FINANCIAL INFORMATION
    (Unaudited - dollars in thousands)
     
    Adjusted Operating Income (Loss)1Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
     2021 2020 2021 2020
    Transportation Solutions       
    Income (loss) from operations$25,970  $13,522  $69,492  $(43,098)
    Adjustments:       
    Impairment—  —  —  68,257 
    Adjusted operating income$25,970  $13,522  $69,492  $25,159 
            
    Parts & Service       
    Income (loss) from operations4,148  5,878  18,509  (21,466)
    Adjustments:       
    Impairment—  —  —  38,857 
    Gain on divestiture of Extract Technology—  —  (1,874) — 
    Adjusted operating income4,148  5,878  16,635  17,391 
            
    Corporate       
    Loss from operations(11,855) (10,992) (35,839) (31,085)
    Adjustments:       
    Debt transactions—  1,156  —  1,156 
    Adjusted operating loss(11,855) (9,836) (35,839) (29,929)
            
    Consolidated       
    Income (loss) from operations$18,263  $8,408  $52,162  $(95,649)
    Adjustments:       
    Impairment—  —  —  107,114 
    Gain on divestiture of Extract Technology—  —  (1,874) — 
    Debt transactions—  1,156  —  1,156 
    Adjusted operating income$18,263  $9,564  $50,288  $12,621 

    1 Adjusted operating income (loss), a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) 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 (loss) 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 (loss) to provide investors with a better understanding of the Company’s view of our results as compared to prior periods.


    WABASH NATIONAL CORPORATION
    RECONCILIATION OF GAAP FINANCIAL MEASURES TO
    NON-GAAP FINANCIAL MEASURES
    (Unaudited - dollars in thousands, except per share amounts)
     
    Operating EBITDA1:Three Months Ended September 30, Nine Months Ended September 30,
     2021 2020 2021 2020
    Net income (loss)$11,008  $3,887  $26,477  $(102,906)
    Income tax expense (benefit)1,640  (1,285) 7,459  (10,298)
    Interest expense5,847  5,749  18,031  17,903 
    Depreciation and amortization12,343  12,495  36,821  35,140 
    Stock-based compensation1,673  1,862  5,889  2,278 
    Debt issuance costs expensed—  1,156  —  1,156 
    Impairment and other, net595  31  (631) 105,455 
    Other, net(232) 57  195  (348)
    Operating EBITDA$32,874  $23,952  $94,241  $48,380 


    Adjusted Net Income2:Three Months Ended September 30, Nine Months Ended September 30,
     2021 2020 2021 2020
    Net income (loss)$11,008  $3,887  $26,477  $(102,906)
    Adjustments:       
    Debt transactions3—  1,375  452  1,375 
    Impairment—  —  —  107,114 
    Gain on divestiture of Extract Technology—  —  (1,874) — 
    Tax effect of aforementioned items—  (564) 327  (3,350)
    Adjusted net income$11,008  $4,698  $25,382  $2,233 


    Adjusted Diluted Earnings Per Share2:Three Months Ended September 30, Nine Months Ended September 30,
     2021 2020 2021 2020
    Diluted earnings per share$0.22  $0.07  $0.51  $(1.94)
    Adjustments:       
    Debt transactions3—  0.03  0.01  0.03 
    Impairment—  —  —  2.02 
    Gain on divestiture of Extract Technology—  —  (0.04) — 
    Tax effect of aforementioned items—  (0.01) 0.01  (0.06)
    Adjusted diluted earnings per share$0.22  $0.09  $0.49  $0.04 
            
    Weighted average diluted shares outstanding (in thousands)50,581  53,380  51,785  53,299 

    1 Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, debt issuance costs expensed within General & administrative expenses related to the closing of the New Term Loan Credit Agreement, impairment and other, net, 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 (loss) and net income (loss), is beneficial to an investor’s understanding of the Company’s operating performance.

    2 Adjusted net income and adjusted earnings per diluted share reflect adjustments for the impact of sales and divestitures, debt transactions, and non-cash impairment, and the related tax effects of these 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 (loss) and diluted net income (loss) per share, is beneficial to an investor’s understanding of the Company’s performance.

    3 Debt transactions include debt issuance costs within General & administrative expenses related to the closing of the New Term Loan Credit Agreement and loss on debt extinguishment charges included in Other, net.


    WABASH NATIONAL CORPORATION
    RECONCILIATION OF FREE CASH FLOW1
    (Unaudited - dollars in thousands)
     
     Nine Months Ended September 30,
     2021 2020
    Net cash (used in) provided by operating activities$(74,229) $107,099  
    Capital expenditures(20,192) (13,719)
    Free cash flow1$(94,421) $93,380  

    1 Free cash flow is defined as net cash (used in) provided by operating activities minus capital expenditures. Management believes providing free cash flow is useful for investors to understand the Company’s performance and results of cash generation period to period with the exclusion of the item identified above. Management believes the presentation of free cash flow, when combined with the GAAP presentations of cash provided by operating activities, is beneficial to an investor’s understanding of the Company’s operating performance.


    WABASH NATIONAL CORPORATION
    RECONCILIATION OF ADJUSTED SEGMENT EBITDA1
    AND ADJUSTED SEGMENT EBITDA MARGIN1
    (Unaudited - dollars in thousands)
     
     Transportation Solutions Parts & Service
    Three Months Ended September 30, 20212021 2020 2021 2020
    Income from operations$25,970  $13,522  $4,148  $5,878 
    Depreciation and amortization10,617  10,278  1,062  1,337 
    Impairment and other, net109  108  492  (156)
    Adjusted segment EBITDA$36,696  $23,908  $5,702  $7,059 
            
    Adjusted segment EBITDA margin8.3% 7.8% 13.6% 14.9%


     Transportation Solutions Parts & Service
    Nine Months Ended September 30, 20212021 2020 2021 2020
    Income (loss) from operations$69,492  $(43,098) $18,509  $(21,466)
    Depreciation and amortization31,455  29,437  3,674  4,024 
    Impairment and other, net935  66,231  (1,560) 39,229 
    Adjusted segment EBITDA$101,882  $52,570  $20,623  $21,787 
            
    Adjusted segment EBITDA margin8.6% 5.5% 14.8% 16.2%

    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 (loss) 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.


    WABASH NATIONAL CORPORATION
    TRANSPORTATION SOLUTIONS AND PARTS & SERVICE SEGMENTS - SELECTED DATA
    (Unaudited - dollars in thousands)
                          
     Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019
    REVENUE                      
    Transportation Solutions$442,636  $402,300  $345,236  $361,279  $307,358  $302,687  $344,104  $533,640  $533,385  $572,376  $475,408 
    Parts & Service$41,903  $48,633  $48,487  $44,985  $47,258  $40,354  $46,877  $50,023  $51,814  $60,224  $63,958 
                          
    OPERATING INCOME (LOSS) AND ADJUSTED OPERATING INCOME1
                          
    Transportation Solutions                     
    Operating income (loss)$25,970  $26,848  $16,674  $13,396  $13,522  $9,069  $(65,689) $37,475  $41,687  $48,769  $25,958 
    Adjustments:                     
    Loss on divestiture of Beall brand$—  $—  $—  $2,119  $—  $—  $—  $—  $—  $—  $— 
    Impairment$—  $—  $—  $—  $—  $—  $68,257  $—  $—  $—  $— 
    Adjusted operating income1$25,970  $26,848  $16,674  $15,515  $13,522  $9,069  $2,568  $37,475  $41,687  $48,769  $25,958 
                          
    Parts & Service                     
    Operating income (loss)$4,148  $8,028  $6,333  $8,807  $5,878  $5,132  $(32,476) $5,356  $6,609  $9,275  $10,282 
    Adjustments:                     
    Gain on divestiture of Extract Technology$—  $(1,874) $—  $—  $—  $—  $—  $—  $—  $—  $— 
    Gain on sale of Columbus branch$—  $—  $—  $(2,257) $—  $—  $—  $—  $—  $—  $— 
    Impairment$—  $—  $—  $—  $—  $—  $38,857  $—  $—  $—  $— 
    Adjusted operating income1$4,148  $6,154  $6,333  $6,550  $5,878  $5,132  $6,381  $5,356  $6,609  $9,275  $10,282 
                          
    UNITS                     
    New trailers12,455 11,595 9,660 10,585 8,485 8,425 9,120 14,980 14,470 14,965 13,095
    New truck bodies3,780 4,790 4,760 3,300 3,600 3,025 3,505 5,090 6,460 8,060 6,225
    Used trailers15 15 40 170 140 220 70 40 35 30 45

    1 Adjusted operating income (loss), a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) 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 (loss) 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 (loss) to provide investors with a better understanding of the Company’s view of our results as compared to prior periods.

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

    Investor Relations:
    Ryan Reed
    Director, Corporate Development & Investor Relations
    (765) 490-5664
    ryan.reed@wabashnational.com


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