• Wabash National Corporation Announces First Quarter 2021 Results

    ソース: Nasdaq GlobeNewswire / 28 4 2021 06:55:00   America/New_York

    • Revenue of $392.0 million, which is within prior guidance range
    • Operating income of $11.2 million and operating margin of 2.9% both show sequential improvement
    • Net Income of $3.2 million or earnings per share of $0.06
    • Backlog of $1.5 billion up 57% YoY; outperforms normal sequential seasonality
    • 2021 EPS outlook maintained at $0.75 per diluted share; range of $0.70 to $0.80

    LAFAYETTE, Ind., April 28, 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 March 31, 2021.

    Net sales for the first quarter 2021 of $392.0 million increased 1.3% versus the prior year quarter as the Company continued to scale its ability to serve strong customer demand. Consolidated gross profit was $47.2 million, or 12.0% of sales. Operating income was $11.2 million, or 2.9% of sales. Earnings per share was $0.06.

    Total Company backlog as of March 31, 2021 was approximately $1.5 billion as new order activity slightly outpaced shipments despite seasonal trends showing a sequential softening in first quarter backlog three of the past five years. Backlog rose 4% compared to December 2020 and was 57% above March 2020.

    “During the first quarter, the Wabash team executed well to navigate the unprecedented labor and supply-chain challenges that have impacted our industry in addition to all U.S. manufacturing sectors,” explained Brent Yeagy, president and chief executive officer. “Freight activity in the United States remains exceptionally strong and we are focused on adding the system capacity to support our customers’ demand for equipment now and into the future.”

    For the full year ending December 31, 2021, the company increased its sales guidance to $1.95 billion to $2.05 billion and maintained its earnings per diluted share midpoint of $0.75 with a range of $0.70 to $0.80.   

    “We remain focused on executing on solid demand conditions this year while simultaneously working to secure adequate labor and supply stability in order to achieve strong exit run rates by the end of 2021. We expect to be well positioned to maximize our factory capacity and achieve further operating margin expansion in 2022, particularly as we anniversary strong material cost headwinds in the current year. Our One Wabash approach has our businesses coming together in new and interesting ways and has accelerated conversations with key customers seeking strategic partners for solutions to support transportation, logistics and distribution.”

    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 first quarter of 2021 and 2020. 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 March 31, 2021  2020  2021  2020  2021  2020 
      (dollars in thousands)
    New trailers shipped 9,250  8,525  420  625  —  — 
    Net sales $247,709  $250,975  $74,008  $82,958  $77,065  $60,270 
    Gross profit $27,235  $23,843  $15,103  $15,141  $6,456  $(244)
    Gross profit margin 11.0% 9.5% 20.4% 18.3% 8.4% (0.4)%
    Income (loss) from operations $20,865  $15,871  $6,089  $(6,070) $(3,947) $(108,041)
    Income (loss) from operations margin 8.4% 6.3% 8.2% (7.3)% (5.1)% (179.3)%
    Adjusted income (loss) from operations $20,865  $16,248  $6,089  $4,901  $(3,947) $(12,275)
    Adjusted income (loss) from operations margin 8.4% 6.5% 8.2% 5.9% (5.1)% (20.4)%

    Commercial Trailer Products’ net sales for the first quarter were $247.7 million, a decrease of 1.3% as compared to the prior year quarter, as operations scale to meet improved customer demand. Operating income was $20.9 million or 8.4% of sales during the quarter.

    Diversified Products’ net sales for the first quarter were $74.0 million, a decrease of 10.8% as compared to the prior year, as operations work to ramp up. Additionally, the revenue decline was influenced by a divestiture completed in the prior year. Operating income was $6.1 million, or 8.2% of sales during the quarter.

    Final Mile Products’ net sales for the first quarter totaled $77.1 million, an increase of 27.9% as compared to the prior year, as operations scale to be able to satisfy stronger market demand. Operating loss was $3.9 million 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), 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. 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 loss (2020) and adjusted earnings per basic (2020) share reflect adjustments for 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 loss and basic (2020) net income loss per share, is beneficial to an investor’s understanding of the Company’s performance. A reconciliation of adjusted net income and adjusted earnings per diluted (2021) and basic (2020) share to net income (loss) and net income (loss) per diluted (2021) and basic (2020) share 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 (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.

    First Quarter 2021 Conference Call

    Wabash National will discuss its results during its quarterly investor conference call on Wednesday, April 28, 2021, beginning at 10:00 a.m. EDT. The call and an accompanying slide presentation will be accessible on the "Investors" section of the Company’s website www.wabashnational.com. The conference call will also be accessible by dialing (833) 476-0947, conference ID 2497361. 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 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)

     March 31,
    2021    		 December 31,
    2020
    Assets   
    Current assets:   
    Cash and cash equivalents$168,887  $217,677 
    Accounts receivable, net134,360  101,301 
    Inventories, net227,172  163,750 
    Prepaid expenses and other90,225  63,036 
    Total current assets620,644  545,764 
    Property, plant, and equipment, net206,598  209,676 
    Goodwill199,552  199,560 
    Intangible assets, net161,097  166,887 
    Other assets38,463  39,583 
    Total assets$1,226,354  $1,161,470 
    Liabilities and Stockholders’ Equity   
    Current liabilities:   
    Current portion of long-term debt$—  $— 
    Current portion of finance lease obligations293  348 
    Accounts payable170,961  104,425 
    Other accrued liabilities127,324  130,980 
    Total current liabilities298,578  235,753 
    Long-term debt448,214  447,979 
    Finance lease obligations—  30 
    Deferred income taxes52,333  46,777 
    Other non-current liabilities24,927  26,052 
    Total liabilities824,052  756,591 
    Commitments and contingencies   
    Stockholders’ equity:   
    Common stock 200,000,000 shares authorized, $0.01 par value, 51,711,291 and
    52,536,482 shares outstanding, respectively    		757  755 
    Additional paid-in capital647,960  644,695 
    Retained earnings106,483  107,233 
    Accumulated other comprehensive income21,860  7,633 
    Treasury stock at cost, 24,111,035 and 23,004,607 common shares, respectively(374,758) (355,437)
    Total stockholders' equity402,302  404,879 
    Total liabilities and stockholders’ equity$1,226,354  $1,161,470 


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

     Three Months Ended March 31,
     2021 2020
    Net sales$392,003  $387,074 
    Cost of sales344,837  350,331 
    Gross profit47,166  36,743 
    General and administrative expenses22,867  26,192 
    Selling expenses6,665  7,998 
    Amortization of intangible assets5,798  5,495 
    Impairment and other, net621  107,114 
    Income (loss) from operations11,215  (110,056)
    Other income (expense):   
    Interest expense(6,150) (6,272)
    Other, net(14) 120 
    Other expense, net(6,164) (6,152)
    Income (loss) before income tax expense (benefit)5,051  (116,208)
    Income tax expense (benefit)1,834  (9,561)
    Net income (loss)$3,217  $(106,647)
        
    Net income (loss) per share:   
    Basic$0.06  $(2.01)
    Diluted$0.06  $(2.01)
    Weighted average common shares outstanding (in thousands):   
    Basic52,126  53,156 
    Diluted53,044  53,156 
        
    Dividends declared per share$0.08  $0.08 


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

     Three Months Ended March 31,
     2021 2020
    Cash flows from operating activities   
    Net income (loss)$3,217  $(106,647)
    Adjustments to reconcile net income (loss) to net cash used in operating activities   
    Depreciation6,432  5,624 
    Amortization of intangibles5,798  5,495 
    Net gain on sale of property, plant and equipment(193) (3)
    Deferred income taxes661  (1,849)
    Stock-based compensation2,032  (917)
    Impairment817  107,114 
    Non-cash interest expense296  265 
    Accounts receivable(33,059) 34,522 
    Inventories(63,422) (59,001)
    Prepaid expenses and other(7,031) (838)
    Accounts payable and accrued liabilities61,789  8,235 
    Other, net259  (2,054)
    Net cash used in operating activities$(22,404) $(10,054)
    Cash flows from investing activities   
    Capital expenditures(4,165) (6,278)
    Proceeds from the sale of property, plant, and equipment203  25 
    Net cash used in investing activities$(3,962) $(6,253)
    Cash flows from financing activities   
    Proceeds from exercise of stock options1,235  — 
    Dividends paid(4,253) (4,482)
    Borrowings under revolving credit facilities114  45,040 
    Payments under revolving credit facilities(114) (40)
    Principal payments under finance lease obligations(85) (80)
    Debt issuance costs paid—  (9)
    Stock repurchases(19,321) (10,051)
    Net cash (used in) provided by financing activities$(22,424) $30,378 
    Cash and cash equivalents:   
    Net (decrease) increase in cash, cash equivalents, and restricted cash$(48,790) $14,071 
    Cash, cash equivalents and restricted cash at beginning of period217,677  140,516 
    Cash, cash equivalents, and restricted cash at end of period$168,887  $154,587 


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

    Three Months Ended March 31, Commercial
    Trailer Products    		 Diversified
    Products    		 Final Mile
    Products    		 Corporate and
    Eliminations    		 Consolidated
    2021          
    New trailers shipped 9,250  420  —  —  9,670 
    Used trailers shipped 15  25  —  —  40 
               
    New Trailers $238,665  $30,266  $—  $—  $268,931 
    Used Trailers 165  847  —  —  1,012 
    Components, parts and service 5,941  29,966  3,723  (5,843) 33,787 
    Equipment and other 2,938  12,929  73,342  (936) 88,273 
    Total net external sales $247,709  $74,008  $77,065  $(6,779) $392,003 
    Gross profit $27,235  $15,103  $6,456  $(1,628) $47,166 
    Income (loss) from operations $20,865  $6,089  $(3,947) $(11,792) $11,215 
               
    2020          
    New trailers shipped 8,525  625  —  —  9,150 
    Used trailers shipped 35  35  —  —  70 
               
    New Trailers $237,901  $43,312  $—  $—  $281,213 
    Used Trailers 318  1,210  —  —  1,528 
    Components, parts and service 9,272  26,082  3,722  (7,100) 31,976 
    Equipment and other 3,484  12,354  56,548  (29) 72,357 
    Total net external sales $250,975  $82,958  $60,270  $(7,129) $387,074 
    Gross profit $23,843  $15,141  $(244) $(1,997) $36,743 
    Income (loss) from operations $15,871  $(6,070) $(108,041) $(11,816) $(110,056)


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

    Adjusted Operating Income (Loss)1Three Months Ended
    March 31,
     2021 2020
    Commercial Trailer Products   
    Income from operations$20,865  $15,871 
    Adjustments:   
    Impairment—  377 
    Adjusted operating income$20,865  $16,248 
        
    Diversified Products   
    Income (loss) from operations6,089  (6,070)
    Adjustments:   
    Impairment—  10,971 
    Adjusted operating income6,089  4,901 
        
    Final Mile Products   
    Loss from operations(3,947) (108,041)
    Adjustments:   
    Impairment—  95,766 
    Adjusted operating loss(3,947) (12,275)
        
    Corporate   
    Loss from operations(11,792) (11,816)
        
    Consolidated   
    Income (loss) from operations11,215  (110,056)
    Adjustments:   
    Impairment—  107,114 
    Adjusted operating income (loss)$11,215  $(2,942)

    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 March 31,
     2021 2020
    Net income (loss)$3,217  $(106,647)
    Income tax expense (benefit)1,834  (9,561)
    Interest expense6,150  6,272 
    Depreciation and amortization12,230  11,119 
    Stock-based compensation2,032  (917)
    Impairment and other, net621  107,114 
    Other, net14  (120)
    Operating EBITDA$26,098  $7,260 


    Adjusted Net Income2:Three Months Ended March 31,
     2021 2020
    Net income (loss)$3,217  $(106,647)
    Adjustments:   
    Impairment—  107,114 
    Tax effect of aforementioned items—  (2,786)
    Adjusted net income (loss)$3,217  $(2,319)


    Adjusted Diluted (2021) and Basic (2020) Earnings Per Share2:Three Months Ended March 31,
     2021 2020
    Diluted (2021) and basic (2020) earnings per share$0.06  $(2.01)
    Adjustments:   
    Impairment—  2.02 
    Tax effect of aforementioned items—  (0.05)
    Adjusted diluted (2021) and basic (2020) earnings per share$0.06  $(0.04)
        
    Weighted average diluted (2021) and basic (2020) shares outstanding (in thousands)53,044  53,156 

    1 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.

    2 Adjusted net loss (2020) and adjusted earnings per basic (2020) share reflect adjustments for 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 loss and basic (2020) net income loss per share, is beneficial to an investor’s understanding of the Company’s performance.


    WABASH NATIONAL CORPORATION
    RECONCILIATION OF FREE CASH FLOW1
    (Unaudited - dollars in thousands)

     Three Months Ended March 31,
     2021 2020
    Net cash used in operating activities$(22,404) $(10,054)
    Capital expenditures(4,165) (6,278)
    Free cash flow1$(26,569) $(16,332)

    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)

     Commercial Trailer Products Diversified Products Final Mile Products
    Three Months Ended March 31,2021 2020 2021 2020 2021 2020
    Income (loss) from operations$20,865  $15,871  $6,089  $(6,070) $(3,947) $(108,041)
    Depreciation and amortization3,038  2,732  4,099  4,499  4,564  3,555 
    Impairment and other, net186  377  432  10,971  4  95,766 
    Adjusted segment EBITDA$24,089  $18,980  $10,620  $9,400  $621  $(8,720)
                
    Adjusted segment EBITDA margin9.7% 7.6% 14.3% 11.3% 0.8% (14.5)%

    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.

    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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