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Wabash National Corporation Announces Fourth Quarter and Full Year 2010 Results


February 8, 2011 - Lafayette, IN

Wabash National Corporation (NYSE: WNC)reported year-over-year and sequential improvement across most financialand operating metrics. The Company reported operating income of $5.7million for the fourth quarter of 2010, compared to an operating loss of$11.9 million for the fourth quarter of 2009. For the twelve months endedDecember 31, the Company reported an operating loss of $15.4 million and$66.1 million for 2010 and 2009, respectively. The improvement inoperating income of $17.6 million and $50.7 million for the three andtwelve month periods, respectively, resulted from higher production andshipment volumes; as well as, cost and manufacturing optimizationenhancements implemented by the Company throughout 2008 and 2009. Inaddition, the fourth quarter and full year 2010 results benefited from thefavorable experience on trailer warranties which expired of $2.8 millionand $3.2 million, respectively.

The following is a summary of select operating and financial results forthe past five quarters:



Three Months Ended
---------------------------------------------------------
(Dollars in December March June September December
thousands) 31, 2009 31, 2010 30, 2010 30, 2010 31, 2010
-------- --------- -------- -------- --------
New Trailer Units
Sold 3,300 2,600 5,400 6,800 10,100
Net Sales $ 85,373 $ 78,274 $149,699 $170,848 $241,550
Gross Profit
Margin -2.2% -1.2% 3.5% 3.8% 7.2%
Income (Loss)
from Operations $(11,884) $ (11,232) $ (5,715) $ (4,206) $ 5,736
Net Income (Loss)$ 10,858(1) $(139,079)(1)$ (5,602)(1)$ (1,938)(1)$ 4,859
Operating EBITDA
(Non-GAAP) $ (6,255) $ (5,975) $ (493) $ 643 $ 10,752

Notes: (1) Quarterly Net Income (Loss) includes a non-cash benefit
(charge) of approximately $20.5 million, ($126.8) million,
$1.9 million and $3.3 million related to the change in the fair
value of the Company's warrant which was issued to a private
investor in 2009 and fully exercised in 2010 for the fourth quarter
of 2009 and the first, second, and third quarters of 2010,
respectively.

Dick Giromini, President and Chief Executive Officer, stated, "Ouroperating results improved sequentially each quarter during 2010,culminating in our operating results for the fourth quarter which were ourbest since 2007. Of note, the Company generated positive Operating EBITDAof $10.8 million in the fourth quarter which drove our full year 2010Operating EBITDA to a positive $4.9 million. Moreover, gross profit marginof 7.2%, represents a year-over-year improvement of 940 basis points. Theseresults were driven by our continued efforts throughout 2010 to optimizeour cost structure, improve operational efficiency, enhance our capitalstructure, and position the business to meet higher demand levels as theindustry recovered during the second half of the year."

Mr. Giromini continued, "New trailer shipments of 10,100 for the fourthquarter met and slightly exceeded the high-end of our guidance, reflectinga healthier demand environment and improved pick-up performance by ourcustomers during the quarter. Full year, new trailer shipments of 24,900,which were nearly double the level from 2009, combined with a backlog ofapproximately $480 million as of December 31, 2010, reinforces our beliefthat the recovery in our industry is well under way and that we are poisedto capitalize on the improvement in demand. In fact, both FTR and ACT haverecently increased their forecasts for 2011 industry trailer volumes to174,000 units and 191,000 units, respectively, representing an approximateincrease of 30 to 60 percent over 2010 levels."

Quarterly Operating EBITDA during 2010 showed sequential improvement andreached levels not experienced since 2007. On a non-GAAP basis, theCompany's Operating EBITDA of $10.8 million was better than the thirdquarter of 2010 by approximately $10.1 million on approximately 3,300additional new trailer shipments. A discussion of the Company's use ofOperating EBITDA as a non-GAAP measure is included below, and areconciliation of Operating EBITDA to net income (loss) is provided in thesupplemental schedules included in this release.

Financial Results

The Company reported net income of $4.9 million and $0.07 per diluted sharefor the fourth quarter of 2010 on net sales of $242 million. Results forthe three months ended December 31, 2010 include a benefit of $2.8 millionrelated to the favorable experience on trailer warranties which expired, oran impact of $0.04 per diluted share. For the same quarter last year, theCompany reported net income of $10.9 million, or $0.15 per diluted share,on net sales of $85 million. Results for the three months ended December31, 2009 include a non-cash benefit of $20.5 million related to thedecrease in the fair value of the Company's warrant which was issued in2009 to a private investor and fully exercised in the third quarter of2010, or an impact of $0.68 per diluted share.

Fourth quarter new trailer sales totaled 10,100 units, an increase of 6,800units, or 206% from the prior year period. New trailer production for theperiod improved approximately 5% sequentially; however, shipments improvedapproximately 49% from the third quarter as customer delivery rates on newtrailers improved significantly.

Fourth Quarter 2010 Conference Call

Wabash National Corporation will conduct a conference call to review anddiscuss its fourth quarter results on February 9, 2011, at 10:00 a.m. EST.The phone number to access the conference call is 877-407-8035. The callcan also be accessed live on the Company's website atwww.wabashnational.com. For those unable to participate in the livewebcast, the call will be archived at www.wabashnational.com within threehours of the conclusion of the live call and will remain available throughApril 30, 2011.

Non-GAAP Measures

In addition to disclosing financial results calculated in accordance withUnited States generally accepted accounting principles (GAAP), thefinancial information regarding the results of the three and twelve monthsended December 31, 2010 contain the non-GAAP financial measure OperatingEBITDA that excludes, among other things, charges incurred as a result ofthe fair value accounting of the Company's warrant outstanding. The chargeor benefit associated with this warrant is presented separately withinOther Income and Expense on the Company's Condensed Consolidated Statementsof Operations for the twelve month period ended December 31, 2010.

Operating EBITDA should not be considered a substitute for, or superior to,financial measures and results calculated in accordance with GAAP,including net loss, and reconciliations to GAAP financial statements shouldbe carefully evaluated.

Operating EBITDA is defined as earnings before interest, taxes, preferredstock dividends, depreciation, amortization, stock-based compensation, andother non-operating income and expense, as well as, other non-cash chargesassociated with the Company's warrant issued in 2009 and fully exercised in2010. Management believes Operating EBITDA provides useful information toinvestors regarding our results of operations. We provide this because webelieve it is useful for investors to understand our performance period toperiod with the exclusion of the recurring and non-recurring itemsidentified above. Management believes the presentation of OperatingEBITDA, when combined with the primary GAAP presentation of operatingincome, is beneficial to an investor's complete understanding of ouroperating performance. A reconciliation of Operating EBITDA to net income(loss) is included in the tables following this release.

About Wabash National Corporation

Headquartered in Lafayette, Indiana, Wabash National® Corporation (NYSE: WNC) is one of the leading manufacturers of semi trailers in North America.Established in 1985, the Company specializes in the design and productionof dry freight vans, refrigerated vans, flatbed trailers, drop decktrailers, dump trailers, truck bodies and intermodal equipment. Itsinnovative core products are sold under the DuraPlate®, ArcticLite®,FreightProTM, Eagle® and BensonTM brand names. The Company operates twowholly owned subsidiaries: Transcraft® Corporation, a manufacturer offlatbed, drop deck and dump trailers as well as truck bodies; and WabashNational Trailer Centers, trailer service centers and retail distributorsof new and used trailers and aftermarket parts throughout the U.S.

Safe Harbor Statement

This press release contains certain forward-looking statements as definedby the Private Securities Litigation Reform Act of 1995. Forward-lookingstatements convey the Company's current expectations or forecasts of futureevents. All statements contained in this press release other thanstatements of historical fact are forward-looking statements. Theseforward-looking statements include, among other things, statementsregarding our outlook for new trailer shipments and Operating EBITDA,backlog, expectations regarding increases in trailer demand levels, thesufficiency of the Company's capital structure, the needs of the Company inthe future, whether profitability can be achieved and encouraging signs inthe macroeconomic landscape. These and the Company's other forward-lookingstatements are subject to certain risks and uncertainties that could causeactual results to differ materially from those implied by theforward-looking statements. Without limitation, these risks anduncertainties include the uncertain economic conditions including thepossibility that demand expectations may not result in order increases forus, increased competition, reliance on certain customers and corporatepartnerships, risks of customer pick-up delays, shortages and costs of rawmaterials, risks in implementing and sustaining improvements in ourmanufacturing capacity and cost containment, and dependence on industrytrends. Readers should review and consider the various disclosures made bythe Company in this press release and in the Company's reports to itsstockholders 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) Three Months Ended Twelve Months Ended December 31, December 31, ------------------------ ------------------------ 2010 2009 2010 2009 ----------- ----------- ----------- ----------- (Unaudited) (Unaudited) (Unaudited)Net sales $ 241,550 $ 85,373 $ 640,372 $ 337,840Cost of sales 224,259 87,255 612,289 360,750 ----------- ----------- ----------- ----------- Gross profit 17,291 (1,882) 28,083 (22,910)General and administrative expenses 8,582 7,495 32,831 31,988Selling expenses 2,973 2,507 10,669 11,176 ----------- ----------- ----------- ----------- Income (Loss) from operations 5,736 (11,884) (15,417) (66,074)Other income (expense): Decrease (Increase) in fair value of warrant - 20,536 (121,587) (33,447) Interest expense (1,092) (920) (4,140) (4,379) Other, net 65 166 (667) (866) ----------- ----------- ----------- ----------- Income (Loss) before income taxes 4,709 7,898 (141,811) (104,766)Income tax benefit (150) (2,960) (51) (3,001) ----------- ----------- ----------- ----------- Net income (loss) 4,859 10,858 (141,760) (101,765)Preferred stock dividends and early extinguishment - 2,224 25,454 3,320 ----------- ----------- ----------- -----------Net income (loss) applicable to common stockholders $ 4,859 $ 8,634 $ (167,214) $ (105,085) =========== =========== =========== ===========Basic and diluted net income (loss) per share $ 0.07 $ 0.15 $ (3.36) $ (3.48) =========== =========== =========== ===========Comprehensive income (loss) Net income (loss) $ 4,859 $ 10,858 $ (141,760) $ (101,765) Reclassification adjustment for interest rate swaps included in net income (loss) - - - 1,398 Changes in fair value of derivatives, net of tax - - - 118 ----------- ----------- ----------- -----------Net comprehensive income (loss) $ 4,859 $ 10,858 $ (141,760) $ (100,249) =========== =========== =========== =========== Three months ended Retail & December 31, Manufacturing Distribution Eliminations Total ----------- ----------- ----------- ----------- 2010Net sales $ 225,736 $ 25,519 $ (9,705) $ 241,550Income (Loss) from operations $ 5,388 $ 428 $ (80) $ 5,736New trailers shipped 10,100 400 (400) 10,100 2009Net sales $ 72,622 $ 17,007 $ (4,256) $ 85,373(Loss) Income from operations $ (9,385) $ (2,577) $ 78 $ (11,884)New trailers shipped 3,200 300 (200) 3,300 Twelve months ended December 31, 2010Net sales $ 575,803 $ 98,356 $ (33,787) $ 640,372(Loss) Income from operations $ (15,532) $ 297 $ (182) $ (15,417)New trailers shipped 24,900 1,500 (1,500) 24,900 2009Net sales $ 279,518 $ 72,299 $ (13,977) $ 337,840(Loss) Income from operations $ (57,459) $ (8,827) $ 212 $ (66,074)New trailers shipped 12,600 800 (600) 12,800 Three Months Ended Twelve Months Ended December 31, December 31, -------------------- -------------------- 2010 2009 2010 2009 --------- --------- --------- ---------Basic net income (loss) per share: Net income (loss) applicable to common stockholders $ 4,859 $ 8,634 $(167,214) $(105,085) Undistributed earnings allocated to participating securities (29) (3,929) - - --------- --------- --------- --------- Net income (loss) applicable to common stockholders excluding amounts applicable to participating securities $ 4,830 $ 4,705 $(167,214) $(105,085) ========= ========= ========= ========= Weighted average common shares outstanding 67,874 30,359 49,819 30,237 ========= ========= ========= ========= Basic net income (loss) per share $ 0.07 $ 0.15 $ (3.36) $ (3.48) ========= ========= ========= ========= Diluted net income (loss) per share: Net income (loss) applicable to common stockholders $ 4,859 $ 8,634 $(167,214) $(105,085) Undistributed earnings allocated to participating securities (29) (3,929) - - --------- --------- --------- --------- Net income (loss) applicable to common stockholders excluding amounts applicable to participating securities $ 4,830 $ 4,705 $(167,214) $(105,085) ========= ========= ========= ========= Weighted average common shares outstanding 67,874 30,359 49,819 30,237 Dilutive stock options and restricted stock 455 - - - --------- --------- --------- --------- Diluted weighted average common shares outstanding 68,329 30,359 49,819 30,237 ========= ========= ========= ========= Diluted net income (loss) per share $ 0.07 $ 0.15 $ (3.36) $ (3.48) ========= ========= ========= ========= WABASH NATIONAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) December 31, December 31, 2010 2009 ------------- ------------- (Unaudited) ASSETSCurrent assets Cash $ 21,200 $ 1,108 Accounts receivable, net 37,853 17,081 Inventories 110,850 51,801 Prepaid expenses and other 2,155 6,877 ------------- ------------- Total current assets $ 172,058 $ 76,867 Property, plant and equipment, net 98,834 108,802 Intangible assets 22,863 25,952 Other assets 9,079 12,156 ------------- ------------- $ 302,834 $ 223,777 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of capital lease obligations $ 590 $ 337 Accounts payable 71,145 30,201 Other accrued liabilities 38,896 34,583 Warrant - 46,673 ------------- ------------- Total current liabilities $ 110,631 $ 111,794 Long-term debt 55,000 28,437 Capital lease obligations 3,964 4,469 Other noncurrent liabilities and contingencies 4,214 3,258 Preferred stock, net of discount, 25,000,000 shares authorized, $0.01 par value, 0 and 35,000 shares issued and outstanding, respectively - 22,334 Stockholders' equity 129,025 53,485 ------------- ------------- $ 302,834 $ 223,777 ============= ============= WABASH NATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) Twelve Months Ended December 31, -------------------------- 2010 2009 ------------ ------------ (Unaudited) Cash flows from operating activities Net loss $ (141,760) $ (101,765) Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization 16,855 19,585 Loss on early debt extinguishment - 303 Increase in fair value of warrant 121,587 33,447 Stock-based compensation 3,489 3,382 Changes in operating assets and liabilities Accounts receivable (20,772) 20,845 Inventories (59,062) 41,095 Prepaid expenses and other 3,024 (1,570) Accounts payable and accrued liabilities 45,251 (22,666) Other, net 697 330 ------------ ------------ Net cash used in operating activities $ (30,691) $ (7,014) Cash flows from investing activities Capital expenditures (1,782) (981) Proceeds from the sale of property, plant and equipment 1,813 300 ------------ ------------ Net cash provided by (used in) investing activities $ 31 $ (681) Cash flows from financing activities Proceeds from issuance of common stock, net of expenses 71,948 - Proceeds from exercise of stock options 504 - Borrowings under revolving credit facilities 712,491 276,853 Payments under revolving credit facilities (685,928) (328,424) Principal payments under capital lease obligations (352) (334) Proceeds from issuance of preferred stock and warrant - 35,000 Payments under redemption of preferred stock (47,791) - Debt issuance costs paid - (1,420) Preferred stock issuance costs paid (120) (2,638) ------------ ------------ Net cash provided by (used in) financing activities $ 50,752 $ (20,963) ------------ ------------ Net increase (decrease) in cash $ 20,092 $ (28,658)Cash at beginning of year 1,108 29,766 ------------ ------------Cash at end of year $ 21,200 $ 1,108 ============ ============ WABASH NATIONAL CORPORATION RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (Dollars in thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, -------------------- -------------------- 2010 2009 2010 2009 --------- --------- --------- ---------Net income (loss) $ 4,859 $ 10,858 $(141,760) $(101,765)Income tax benefit (150) (2,960) (51) (3,001)(Decrease) Increase in fair value of warrant - (20,536) 121,587 33,447Interest expense 1,092 920 4,140 4,379Depreciation and amortization 3,993 5,153 16,855 19,585Stock-based compensation 1,023 476 3,489 3,382Other non-operating (income) expense (65) (166) 667 866 --------- --------- --------- ---------Operating EBITDA $ 10,752 $ (6,255) $ 4,927 $ (43,107) ========= ========= ========= ========= Three Months Ended ------------------------------------------ March June September December 31, 30, 30, 31, 2010 2010 2010 2010 --------- --------- --------- ---------Net (loss) income $(139,079) $ (5,602) $ (1,938) $ 4,859Income tax expense (benefit) 87 - 12 (150)Increase (Decrease) in fair value of warrant 126,765 (1,913) (3,265) -Interest expense 1,027 998 1,023 1,092Depreciation and amortization 4,428 4,295 4,139 3,993Stock-based compensation 829 927 710 1,023Other non-operating (income) expense (32) 802 (38) (65) --------- --------- --------- ---------Operating EBITDA $ (5,975) $ (493) $ 643 $ 10,752 ========= ========= ========= ========= Three Months Ended ------------------------------------------ March June September December 31, 30, 30, 31, 2009 2009 2009 2009 --------- --------- --------- ---------Net (loss) income $ (28,284) $ (17,935) $ (66,404) $ 10,858Income tax expense (benefit) 15 (1) (55) (2,960)Increase (Decrease) in fair value of warrant - - 53,983 (20,536)Interest expense 1,005 1,306 1,148 920Depreciation and amortization 4,796 4,804 4,832 5,153Stock-based compensation 965 1,173 768 476Other non-operating (income) expense (55) (34) 1,121 (166) --------- --------- --------- ---------Operating EBITDA $ (21,558) $ (10,687) $ (4,607) $ (6,255) ========= ========= ========= =========

Press Contact:
Allison Henk
Marketing Communications Manager
(765) 771-5674

Investor Relations:
(765) 771-5310

MarketWire

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