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Wabash National Corporation Announces Third Quarter and Year-to-Date Results LAFAYETTE, IN--(MARKET WIRE)--Oct 29, 2008 -- Wabash National Corporation (NYSE:WNC - News)
reported a net loss of $4.3 million, or $0.14 per share,
for the third
quarter of 2008 on net sales of $243.0 million. For the
same quarter last
year, the Company reported net income of $3.8 million, or
$0.12 per share,
on sales of $291.0 million. For the nine months ended September
30, 2008,
the net loss totaled $13.9 million or $0.47 per share on
sales of $605.5
million. For the comparable period of 2007, net income totaled
$10.6
million, or $0.35 per share, on sales of $844.7 million.
Dick Giromini, President and Chief Executive Officer, stated, "Results for the quarter matched our previously stated expectations. We achieved noteworthy progress on our cost containment initiatives and improved production volume during the quarter. However, these gains were more than offset by unprecedented raw material price increases which adversely impacted gross margins during the quarter. We continue to expect that new trailer unit shipments for the year will be in the 32,000 to 33,000 unit range. However, the fourth quarter will be the most difficult of the year, as we expect the imbalance between raw material costs and selling prices to reach a peak. Additionally, given the holiday season and our annual year-end shutdown, we will operate with fewer production days during the fourth quarter. As of September 30, 2008, the Company's backlog was approximately $283 million compared to $393 million at June 30, 2008. "We have been operating in an extremely challenging economic environment and we expect continued economic turbulence, specifically as it relates to raw material prices and demand levels. However, challenging times present opportunity. We continue to be well positioned in our industry with our strong customer relationships and market share, solid financial position, streamlined manufacturing footprint, and an unmatched suite of products. These important differentiators will help distance us from the competition. We will continue to successfully implement cost control and efficiency improvements, while we size the business to match demand. While our key strategic initiatives and cost management efforts have mitigated the effects of the downturn, they provide us with a leaner, more efficient foundation from which to grow long-term profitability." Wabash National Corporation will conduct a conference call to review and discuss its third quarter results on Thursday, October 30, 2008, at 10:00 a.m. EDT. The phone number to access the conference call is 877-407-8035. The call can also be accessed live on the company's website at www.wabashnational.com. For those unable to participate in the live webcast, the call will be archived at www.wabashnational.com within three hours of the conclusion of the live call and will remain available through December 28, 2008. Headquartered in Lafayette, Ind., Wabash National® Corporation (NYSE:WNC - News) is one of the leading manufacturers of semi trailers in North America. Established in 1985, the company specializes in the design and production of dry freight vans, refrigerated vans, flatbed trailers, drop deck trailers, dump trailers, truck bodies and intermodal equipment. Its innovative core products are sold under the DuraPlate®, ArcticLite®, FreightPro(TM) Eagle® and Benson(TM) brand names. The company operates two wholly-owned subsidiaries; Transcraft ® Corporation, a manufacturer of flatbed, drop deck, dump trailers and truck bodies; and Wabash National Trailer Centers, trailer service centers and retail distributors of new and used trailers and aftermarket parts throughout the U.S. This press release contains certain forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements including statements about the company's expectations for improvement in future results are, however, 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 increased competition, reliance on certain customers and corporate partnerships, risks of customer pick-up delays, shortages and costs of raw materials, risks in implementing and sustaining improvements in our manufacturing capacity and cost containment, and dependence on industry trends. Readers should review and consider the various disclosures made by the company in this press release and in the company's reports to its stockholders and periodic reports on Forms 10-K and 10-Q.
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
NET SALES $ 242,953 $ 291,017 $ 605,498 $ 844,720
COST OF SALES 233,965 266,424 579,832 772,110
---------- ---------- ---------- ----------
Gross profit 8,988 24,593 25,666 72,610
GENERAL AND ADMINISTRATIVE
EXPENSES 10,060 13,173 32,016 38,332
SELLING EXPENSES 3,420 3,916 10,189 12,029
---------- ---------- ---------- ----------
(Loss) Income from
operations (4,492) 7,504 (16,539) 22,249
OTHER INCOME (EXPENSE)
Interest expense (1,154) (1,416) (3,349) (4,410)
Foreign exchange, net (85) 65 (91) 461
Gain on debt
extinguishment - - 151 -
Other, net 113 (86) (83) (592)
---------- ---------- ---------- ----------
(Loss) Income before
income taxes (5,618) 6,067 (19,911) 17,708
INCOME TAX (BENEFIT)
EXPENSE (1,288) 2,289 (5,991) 7,059
---------- ---------- ---------- ----------
NET (LOSS) INCOME $ (4,330) $ 3,778 $ (13,920) $ 10,649
========== ========== ========== ==========
COMMON STOCK DIVIDENDS
DECLARED $ 0.045 $ 0.045 $ 0.135 $ 0.135
========== ========== ========== ==========
BASIC NET (LOSS) INCOME PER
SHARE $ (0.14) $ 0.13 $ (0.47) $ 0.35
========== ========== ========== ==========
DILUTED NET (LOSS) INCOME
PER SHARE $ (0.14) $ 0.12 $ (0.47) $ 0.35
========== ========== ========== ==========
COMPREHENSIVE (LOSS) INCOME
Net (loss) income $ (4,330) $ 3,778 $ (13,920) $ 10,649
Changes in fair value of
derivatives (net of tax)$ (140) $ - $ (140) $ -
Foreign currency
translation adjustment - 113 - 339
---------- ---------- ---------- ----------
NET COMPREHENSIVE (LOSS)
INCOME $ (4,470) $ 3,891 $ (14,060) $ 10,988
========== ========== ========== ==========
Three months ended Retail &
September 30, Manufacturing Distribution Eliminations Total
2008 ---------- ---------- ---------- ----------
----
Net sales $ 217,657 $ 43,115 $ (17,819) $ 242,953
(Loss) Income from
operations $ (3,221) $ (1,381) $ 110 $ (4,492)
New trailers shipped 9,600 900 (800) $ 9,700
2007
----
Net sales $ 270,054 $ 34,714 $ (13,751) $ 291,017
Income (loss) from
operations $ 8,165 $ (699) $ 38 $ 7,504
New trailers shipped 12,100 600 (600) 12,100
Nine months ended
September 30,
2008
----
Net sales $ 536,038 $ 112,329 $ (42,869) $ 605,498
(Loss) Income from
operations $ (14,613) $ (2,767) $ 841 $ (16,539)
New trailers shipped 23,900 2,000 (1,900) $ 24,000
2007
----
Net sales $ 777,211 $ 117,569 $ (50,060) $ 844,720
Income (loss) from
operations $ 24,212 $ (1,337) $ (626) $ 22,249
New trailers shipped 35,600 2,300 (2,300) 35,600
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2008 2007 2008 2007
--------- ---------- --------- ----------
Basic net (loss) income per
share
Net (loss) income
applicable to common
stockholders $ (4,330) $ 3,778 $ (13,920) $ 10,649
========= ========== ========= ==========
Weighted average common
shares outstanding 29,993 29,874 29,933 30,132
========= ========== ========= ==========
Basic net (loss) income per
share $ (0.14) $ 0.13 $ (0.47) $ 0.35
========= ========== ========= ==========
Diluted net (loss) income per
share
Net (loss) income
applicable to common
stockholders $ (4,330) $ 3,778 $ (13,920) $ 10,649
After-tax equivalent of
interest on convertible
notes - 741 - 2,222
--------- ---------- --------- ----------
Diluted net (loss) income
applicable to common
stockholders $ (4,330) $ 4,519 $ (13,920) $ 12,871
Weighted average common
shares outstanding 29,993 29,874 29,933 30,132
Dilutive stock
options/shares - 234 - 255
Convertible notes
equivalent shares - 6,692 - 6,675
--------- ---------- --------- ----------
Diluted weighted average
common shares outstanding 29,993 36,800 29,933 37,062
========= ========== ========= ==========
Diluted net (loss) income
per share $ (0.14) $ 0.12 $ (0.47) $ 0.35
========= ========== ========= ==========
Average diluted shares outstanding for the three and nine month periods
ended September 30, 2008 exclude the antidilutive effects of the
Company’s Convertible Notes. For the three and nine month periods
ended September 30, 2008, the after-tax equivalent of interest on
Convertible Notes was $0.1 million and $0.8 million, respectively, and
the Convertible Notes equivalent shares were 0.5 million and 2.3
million, respectively. Diluted shares outstanding for the three and
nine month periods ended September 30, 2008 also exclude the
antidilutive effects of potentially dilutive stock options and
restricted stock totaling approximately 125,000 and 107,000 shares of
common stock, respectively.
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September December
30, 31,
2008 2007
----------- -----------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 12,345 $ 41,224
Accounts receivable, net 75,856 68,752
Inventories 132,841 113,125
Deferred income taxes 15,248 14,514
Prepaid expenses and other 3,715 4,046
----------- -----------
Total current assets 240,005 241,661
PROPERTY, PLANT AND EQUIPMENT, net 122,221 122,063
DEFERRED INCOME TAXES 7,887 2,772
GOODWILL 66,317 66,317
INTANGIBLE ASSETS 29,925 32,498
OTHER ASSETS 16,536 18,271
----------- -----------
$ 482,891 $ 483,582
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of capital lease obligation $ 590 $ -
Accounts payable 80,496 40,787
Other accrued liabilities 48,496 54,258
----------- -----------
Total current liabilities 129,582 95,045
LONG-TERM DEBT 79,000 104,500
CAPITAL LEASE OBLIGATION 4,636 -
OTHER NONCURRENT LIABILITIES AND CONTINGENCIES 4,481 4,108
STOCKHOLDERS' EQUITY 265,192 279,929
----------- -----------
$ 482,891 $ 483,582
=========== ===========
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Nine Months Ended
September 30,
--------------------
2008 2007
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income $ (13,920) $ 10,649
Adjustments to reconcile net (loss) income to net
cash provided by operating activities
Depreciation and amortization 15,535 14,477
Net loss on the sale of assets 236 106
Gain on early debt extinguishment (151) -
Deferred income taxes (5,849) 6,596
Excess tax benefits from stock-based compensation (6) (33)
Stock-based compensation 3,452 3,213
Changes in operating assets and liabilities
Accounts receivable (7,104) 10,120
Inventories (19,716) (21,211)
Prepaid expenses and other 2,028 2,260
Accounts payable and accrued liabilities 33,705 (9,991)
Other, net 81 826
--------- ---------
Net cash provided by operating activities 8,291 17,012
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (8,037) (5,196)
Acquisition, net of cash acquired - (4,500)
Proceeds from the sale of property, plant and
equipment 131 124
--------- ---------
Net cash used in investing activities (7,906) (9,572)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options 97 74
Excess tax benefits from stock-based compensation 6 33
Borrowings under revolving credit facilities 139,250 99,424
Payments under revolving credit facilities (60,250) (99,424)
Payments under long-term obligations (104,133) -
Principal payments under capital lease obligation (107) -
Repurchases of common stock - (11,668)
Common stock dividends paid (4,127) (4,107)
--------- ---------
Net cash used in financing activities (29,264) (15,668)
--------- ---------
NET DECREASE IN CASH AND CASH EQUIVALENTS (28,879) (8,228)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 41,224 29,885
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 12,345 $ 21,657
========= =========Contact: Press Contact:
Jim Hasty
VP, Marketing and Sales
(765) 771-5487
Investor Relations:
(765) 771-5310
Source: Wabash National Corporation
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