EX-99.1 2 c99291exv99w1.htm PRESS RELEASE exv99w1
 

EXHIBIT 99.1
           
 
        
Press Contact: Tom Rodak
Marketing and Communications Manager
(765) 771-5535
  (WABASH LOGO)     Investor Relations:
(765) 771-5310
WABASH NATIONAL CORPORATION ANNOUNCES
THIRD QUARTER AND YEAR-TO-DATE RESULTS
LAFAYETTE, Ind., — October 24, 2005 — Wabash National Corporation (NYSE: WNC) today announced results for the three and nine month periods ended September 30, 2005. Net sales for the quarter were $294 million compared to $277 million for the same period last year. Net income for the quarter was $24 million or $0.66 per diluted share, compared to $20 million or $0.62 per diluted share for the year ago period. For the nine months ended September 30, 2005, net sales were $873 million compared to $754 million for 2004. Net income for the nine months of 2005 totaled $91 million or $2.50 per diluted share, compared to $45 million or $1.42 per diluted share for the same period last year. Included in the 2005 quarter and year-to-date results were reversals of a valuation allowance for deferred tax assets amounting to $6 million or $0.17 per diluted share and $36 million or $0.94 per diluted share, respectively.
Commenting on the quarter, Bill Greubel, President and Chief Executive Officer, stated: “Results were adversely impacted by a shortfall in unit shipments, customer and product mix, and manufacturing performance. Units shipped were at the low end of the expected range as we and our customers confronted logistics and high fuel costs associated with the Gulf hurricanes. Product mix was skewed to lower margin product. Seasonally strong core accounts represented 42 percent of units sold. Although manufacturing productivity for the third quarter declined slightly compared to the second quarter, corrective actions initiated in June have gained significant traction beginning in early September and have since registered the highest levels of productivity and the lowest levels of overtime since June. Shippable units improved substantially over the course of the quarter with a corresponding decrease of in-process units in inventory. This improvement has continued in October. The retail side of our business recorded its third consecutive profitable quarter.”
“Quote and order activity during the quarter was stronger than seasonal patterns. Backlog grew over $100 million versus the previous quarter to $490 million. We continue to have great success in growing our customer base with over 500 new accounts closed through the first nine months of 2005. We intend to manage production, inventory and shipments throughout the quarter to achieve our customer requirements of 15,500 units.”
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“We have worked hard to improve our operations and I am pleased to thank our associates for their good effort in collectively raising the bar.”
Wabash will conduct a conference call to review and discuss its third quarter financial results on Tuesday, October 25, 2005, at 10:00 a.m. Eastern time. The phone number to access the conference call is 877-407-8035. The call can also be accessed live on the Company’s Internet website at http://www.wabashnational.com. For those unable to participate in the live webcast, the call will be archived at http://www.wabashnational.com within three hours of the conclusion of the live call and will remain available through November 15, 2005.
Wabash National Corporation designs, manufactures, and markets standard and customized truck trailers under the Wabash® brand name. The Company is one of the world’s largest manufacturers of truck trailers and a leading manufacturer of composite trailers. The Company’s wholly owned subsidiary, Wabash National Trailer Centers, is one of the leading retail distributors of new and used trailers and aftermarket parts throughout the U.S. and Canada.
This press release contains certain forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements 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, shortages and costs of raw materials, continued 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 its reports to its stockholders and periodic reports on Forms 10-K and 10-Q.
# # #

 

 

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
                                 
    Three Months     Nine Months  
    Ended September 30,     Ended September 30,  
    2005     2004     2005     2004  
 
                                
NET SALES
   $ 293,834     $ 277,243     $ 872,922     $ 753,739  
COST OF SALES
     263,749       240,321       772,330       657,060  
 
                        
Gross profit
     30,085       36,922       100,592       96,679  
GENERAL AND ADMINISTRATIVE EXPENSES
     10,068       10,569       29,499       31,352  
SELLING EXPENSES
     3,810       3,775       11,772       11,401  
 
                        
Income from operations
     16,207       22,578       59,321       53,926  
OTHER INCOME (EXPENSE):
                                
Interest expense
     (1,666 )     (2,944 )     (4,889 )     (8,610 )
Foreign exchange gains and losses, net
     698       486       246       (59 )
Other, net
     1,975       594       978       1,077  
 
                        
Income before income taxes
     17,214       20,714       55,656       46,334  
INCOME TAX (BENEFIT) EXPENSE
     (6,441 )     420       (35,736 )     919  
 
                        
Net income
   $ 23,655     $ 20,294     $ 91,392     $ 45,415  
 
                        
COMMON STOCK DIVIDENDS
   $ 0.045     $ —     $ 0.135     $ —  
 
                        
BASIC NET INCOME PER SHARE
   $ 0.76     $ 0.74     $ 2.94     $ 1.67  
 
                        
DILUTED NET INCOME PER SHARE
   $ 0.66     $ 0.62     $ 2.50     $ 1.42  
 
                        
COMPREHENSIVE INCOME
                                
Net income
   $ 23,655     $ 20,294     $ 91,392     $ 45,415  
Foreign currency translation adjustment
     934       1,143       553       321  
 
                        
NET COMPREHENSIVE INCOME
   $ 24,589     $ 21,437     $ 91,945     $ 45,736  
 
                        
                                 
            Retail &              
Three months ended   Manufacturing     Distribution     Eliminations     Total  
2005
                                
Net Sales
   $ 258,105     $ 62,532     $ (26,803 )   $ 298,834  
Operating Results
   $ 14,794     $ 636     $ 777     $ 16,207  
2004
                                
Net Sales
   $ 240,371     $ 61,721     $ (24,849 )   $ 277,243  
Operating Results
   $ 20,419     $ 509     $ 1,650     $ 22,578  
 
                                
Nine months ended
                                
2005
                                
Net Sales
   $ 777,784     $ 185,932     $ (90,794 )   $ 872,922  
Operating Results
   $ 57,562     $ 2,343     $ (584 )   $ 59,321  
2004
                                
Net Sales
   $ 656,406     $ 180,448     $ (83,115 )   $ 753,739  
Operating Results
   $ 56,123     $ (1,547 )   $ (650 )   $ 53,926  

 

 

                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2005     2004     2005     2004  
 
                                
Basic net income per share:
                                
Net income
   $ 23,655     $ 20,294     $ 91,392     $ 45,415  
 
                        
Weighted average common shares outstanding
     31,249       27,314       31,121       27,150  
 
                        
Basic net income per share
   $ 0.76     $ 0.74     $ 2.94     $ 1.67  
 
                        
 
                                
Diluted net income per share:
                                
Net income
   $ 23,655     $ 20,294     $ 91,392     $ 45,415  
After-tax equivalent of interest on convertible notes
     1,234       1,210       3,679       3,618  
 
                        
Diluted net income
   $ 24,889     $ 21,504     $ 95,071     $ 49,033  
 
                        
 
                                
Weighted average common shares outstanding
     31,249       27,314       31,121       27,150  
Dilutive stock options/shares
     196       721       314       870  
Convertible notes equivalent shares
     6,548       6,510       6,534       6,510  
 
                        
Diluted weighted average common shares outstanding
     37,993       34,545       37,969       34,530  
 
                        
Diluted net income per share
   $ 0.66     $ 0.62     $ 2.50     $ 1.42  
 
                        

 

 

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
                 
    September 30, 2005     December 31, 2004  
ASSETS
CURRENT ASSETS:
                
Cash and cash equivalents
   $ 28,633     $ 41,928  
Accounts receivable, net
     118,838       87,512  
Current portion of finance contracts
     1,618       2,185  
Inventories
     164,703       94,600  
Deferred income taxes
     8,253       —  
Prepaid expenses and other
     5,732       14,425  
 
            
Total current assets
     327,777       240,650  
 
                
PROPERTY, PLANT AND EQUIPMENT, net
     130,025       124,701  
 
                
EQUIPMENT LEASED TO OTHERS, net
     7,741       14,030  
 
                
FINANCE CONTRACTS, net of current portion
     382       3,319  
 
                
GOODWILL
     34,984       34,511  
 
                
DEFERRED INCOME TAXES
     34,341       —  
 
                
OTHER ASSETS
     20,188       14,835  
 
            
 
   $ 555,438     $ 432,046  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
                
Current maturities of long-term debt
   $ 1,000     $ 2,000  
Accounts payable
     111,057       78,107  
Other accrued liabilities
     45,780       52,442  
 
            
Total current liabilities
     157,837       132,549  
 
                
LONG-TERM DEBT, net of current maturities
     125,000       125,500  
 
                
OTHER NONCURRENT LIABILITIES AND CONTINGENCIES
     9,116       9,423  
 
                
STOCKHOLDERS’ EQUITY
     263,485       164,574  
 
            
 
   $ 555,438     $ 432,046  
 
            

 

 

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
                 
    Nine Months  
    Ended September 30,  
    2005     2004  
CASH FLOWS FROM OPERATING ACTIVITIES:
                
Net income
   $ 91,392     $ 45,415  
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
                
Depreciation and amortization
     11,864       14,745  
Net gain on the sale of assets
     (1,069 )     (405 )
Recovery of losses on accounts receivable and finance contracts
     (23 )     (30 )
Deferred income taxes
     (35,986 )     —  
Cash used for restructuring activities
     —       (2,993 )
Trailer valuation charges
     161       415  
Change in operating assets and liabilities:
                
Accounts receivable
     (31,139 )     (67,370 )
Finance contracts
     3,254       4,039  
Inventories
     (70,212 )     (26,989 )
Prepaid expenses and other
     1,697       1,274  
Accounts payable and accrued liabilities
     29,048       15,844  
Other, net
     1,652       1,145  
 
            
Net cash provided by (used in) operating activities
     639       (14,910 )
CASH FLOWS FROM INVESTING ACTIVITIES:
                
Capital expenditures
     (22,989 )     (5,760 )
Proceeds from the sale of property, plant and equipment
     9,623       2,116  
 
            
Net cash used in investing activities
     (13,366 )     (3,644 )
CASH FLOWS FROM FINANCING ACTIVITIES:
                
Proceeds from exercise of stock options
     3,752       5,187  
Borrowings under revolving credit facilities
     15,286       534,916  
Payments under revolving credit facilities
     (15,286 )     (511,999 )
Payments under long-term debt agreements
     (1,500 )     (7,270 )
Common stock dividends paid
     (2,820 )     —  
 
            
Net cash (used in) provided by financing activities
     (568 )     20,834  
 
            
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
     (13,295 )     2,280  
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
     41,928       12,552  
 
            
CASH AND CASH EQUIVALENTS AT END OF PERIOD
   $ 28,633     $ 14,832