EX-99.1 2 c33907exv99w1.htm EX-99.1 EX-99.1
Exhibit 99.1
         
Press Contact: Jim Hasty
VP, Marketing and Sales
(765) 771-5487
  (WABASH LOGO)   Investor Relations:
(765) 771-5310
Wabash National Corporation Announces
Second Quarter and Year-To-Date Results
LAFAYETTE, Ind. — July 30, 2008 — Wabash National Corporation (NYSE: WNC) reported a net loss of $3.2 million, or $0.11 per share for the second quarter of 2008 on net sales of $201.5 million. For the same quarter last year, the company reported net income of $5.9 million or $0.18 per diluted share, on revenue of $294.8 million. For the six months ended June 30, 2008, the net loss totaled $9.6 million, or $0.32 per share on sales of $362.5 million. In the comparable period of 2007, the company reported net income of $6.9 million or $0.22 per diluted share on sales of $553.7 million.
Dick Giromini, President and Chief Executive Officer, stated, “Our second quarter results were generally in line with our previously stated expectations. Despite increasing raw material costs, we were able to achieve incremental improvement in our gross margin when compared to the first quarter of 2008. Our efforts to bring capacity in line with demand, right-size our operating footprint and optimize our strategic pricing and sourcing efforts continue to positively impact our operating results.”
“The prolonged residential housing correction and macroeconomic and industry-related headwinds continued to impact carrier and trailer demand during the second quarter,” continued Giromini. “As a result, we now anticipate new trailer sales for the year to be in the range of 32,000 to 33,000 units, of which we have shipped or have orders for delivery for 2008 of approximately 29,000 units. As of June 30, 2008 our backlog was approximately $393 million compared to $537 million at March 31, 2008.”
“Despite the near-term challenges, we are beginning to see encouraging signs for the future, such as the rightsizing of carrier capacity and an improving rate environment which bode well for our customers and will eventually increase demand for our core trailer product. More importantly, we have made good progress on our strategic initiatives, designed to diversify our business model to counter the cyclical nature of the trailer industry.”
Wabash National Corporation will conduct a conference call to review and discuss its second quarter results on Thursday, July 31, 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 October 23, 2008.

 

 

Headquartered in Lafayette, Ind., 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 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®, Eagle® and Benson™ brand names. The company operates two wholly owned subsidiaries; Transcraft® Corporation, a manufacturer of flatbed, drop deck and 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 June 30,     Six Months Ended June 30,  
    2008     2007     2008     2007  
NET SALES
   $ 201,484     $ 294,849     $ 362,545     $ 553,703  
COST OF SALES
     190,711       267,017       345,867       505,686  
 
                        
Gross profit
     10,773       27,832       16,678       48,017  
GENERAL AND ADMINISTRATIVE EXPENSES
     10,457       12,439       21,956       25,159  
SELLING EXPENSES
     3,326       3,963       6,769       8,113  
 
                        
(Loss) Income from operations
     (3,010 )     11,430       (12,047 )     14,745  
OTHER INCOME (EXPENSE)
                                
Interest expense
     (1,021 )     (1,448 )     (2,195 )     (2,994 )
Foreign exchange, net
     19       362       (6 )     396  
Gain on debt extinguishment
     27       —       151       —  
Other, net
     (228 )     (565 )     (196 )     (506 )
 
                        
(Loss) Income before income taxes
     (4,213 )     9,779       (14,293 )     11,641  
INCOME TAX (BENEFIT) EXPENSE
     (1,010 )     3,904       (4,703 )     4,770  
 
                        
NET (LOSS) INCOME
   $ (3,203 )   $ 5,875     $ (9,590 )   $ 6,871  
 
                        
COMMON STOCK DIVIDENDS DECLARED
   $ 0.045     $ 0.045     $ 0.09     $ 0.09  
 
                        
BASIC NET (LOSS) INCOME PER SHARE
   $ (0.11 )   $ 0.19     $ (0.32 )   $ 0.23  
 
                        
DILUTED NET (LOSS) INCOME PER SHARE
   $ (0.11 )   $ 0.18     $ (0.32 )   $ 0.22  
 
                        
COMPREHENSIVE (LOSS) INCOME
                                
Net (loss) income
   $ (3,203 )   $ 5,875     $ (9,590 )   $ 6,871  
Foreign currency translation adjustment
     —       206       —       226  
 
                        
NET COMPREHENSIVE (LOSS) INCOME
   $ (3,203 )   $ 6,081     $ (9,590 )   $ 7,097  
 
                        
                                 
            Retail &        
    Manufacturing   Distribution   Eliminations   Total
Three months ended June 30,
                                
2008
                                
Net sales
   $ 176,118     $ 40,829     $ (15,463 )   $ 201,484  
(Loss) Income from operations
   $ (2,910 )   $ (383 )   $ 283     $ (3,010 )
 
                                
2007
                                
Net sales
   $ 268,652     $ 40,555     $ (14,358 )   $ 294,849  
Income (Loss) from operations
   $ 11,946     $ (290 )   $ (226 )   $ 11,430  
 
                                
Six months ended June 30,
                                
2008
                                
Net sales
   $ 318,381     $ 69,214     $ (25,050 )   $ 362,545  
(Loss) Income from operations
   $ (11,392 )   $ (1,386 )   $ 731     $ (12,047 )
 
                                
2007
                                
Net sales
   $ 507,157     $ 82,855     $ (36,309 )   $ 553,703  
Income (Loss) from operations
   $ 16,047     $ (638 )   $ (664 )   $ 14,745  

 

 

                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2008     2007     2008     2007  
Basic net (loss) income per share
                                
Net (loss) income applicable to common stockholders
   $ (3,203 )   $ 5,875     $ (9,590 )   $ 6,871  
 
                        
Weighted average common shares outstanding
     29,927       30,233       29,903       30,263  
 
                        
Basic net (loss) income per share
   $ (0.11 )   $ 0.19     $ (0.32 )   $ 0.23  
 
                        
 
                                
Diluted net (loss) income per share
                                
Net (loss) income applicable to common stockholders
   $ (3,203 )   $ 5,875     $ (9,590 )   $ 6,871  
After-tax equivalent of interest on convertible notes
     —       741       —       1,482  
 
                        
Diluted net (loss) income applicable to common stockholders
   $ (3,203 )   $ 6,616     $ (9,590 )   $ 8,353  
 
                                
Weighted average common shares outstanding
     29,927       30,233       29,903       30,263  
Dilutive stock options/shares
     —       306       —       265  
Convertible notes equivalent shares
     —       6,676       —       6,667  
 
                        
Diluted weighted average common shares outstanding
     29,927       37,215       29,903       37,195  
 
                        
Diluted net (loss) income per share
   $ (0.11 )   $ 0.18     $ (0.32 )   $ 0.22  
 
                        
Average diluted shares outstanding for the three and six month periods ended June 30, 2008 exclude the antidilutive effects of the Company’s Convertible Notes. For the three and six month periods ended June 30, 2008, the after-tax equivalent of interest on Convertible Notes was $0.2 million and $0.7 million, respectively, and the Convertible Notes equivalent shares were 1.6 million and 3.2 million, respectively. Diluted shares outstanding for the three and six month periods ended June 30, 2008 also exclude the antidilutive effects of potentially dilutive stock options totaling approximately 83,000 and 99,000 shares of common stock, respectively.

 

 

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
                 
    June 30,     December 31,  
    2008     2007  
    (Unaudited)          
ASSETS
CURRENT ASSETS
                
Cash and cash equivalents
   $ 27,777     $ 41,224  
Accounts receivable, net
     49,009       68,752  
Inventories
     133,264       113,125  
Deferred income taxes
     14,377       14,514  
Prepaid expenses and other
     2,595       4,046  
 
            
Total current assets
     227,022       241,661  
 
                
PROPERTY, PLANT AND EQUIPMENT, net
     118,041       122,063  
 
                
DEFERRED INCOME TAXES
     7,393       2,772  
 
                
GOODWILL
     66,317       66,317  
 
                
INTANGIBLE ASSETS
     30,772       32,498  
 
                
OTHER ASSETS
     16,985       18,271  
 
            
 
   $ 466,530     $ 483,582  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
                
Accounts payable
     65,150       40,787  
Other accrued liabilities
     47,143       54,258  
 
            
Total current liabilities
     112,293       95,045  
 
                
LONG-TERM DEBT
     80,407       104,500  
 
                
OTHER NONCURRENT LIABILITIES AND CONTINGENCIES
     4,082       4,108  
 
                
STOCKHOLDERS’ EQUITY
     269,748       279,929  
 
            
 
   $ 466,530     $ 483,582  
 
            

 

 

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
                 
    Six Months Ended June 30,  
    2008     2007  
CASH FLOWS FROM OPERATING ACTIVITIES
                
Net (loss) income
   $ (9,590 )   $ 6,871  
Adjustments to reconcile net (loss) income to net cash provided by operating activities
                
Depreciation and amortization
     10,381       9,623  
Net loss (gain) on the sale of assets
     315       (81 )
Gain on debt extinguishment
     (151 )     —  
Deferred income taxes
     (4,484 )     4,478  
Excess tax benefits from stock-based compensation
     (5 )     (33 )
Stock-based compensation
     2,170       1,967  
Changes in operating assets and liabilities
                
Accounts receivable
     19,743       18,444  
Inventories
     (20,139 )     (46,378 )
Prepaid expenses and other
     1,452       1,207  
Accounts payable and accrued liabilities
     17,005       12,190  
Other, net
     (61 )     393  
 
            
Net cash provided by operating activities
     16,636       8,681  
 
                
CASH FLOWS FROM INVESTING ACTIVITIES
                
Capital expenditures
     (3,746 )     (4,017 )
Acquisition, net of cash acquired
     —       (4,500 )
Proceeds from the sale of property, plant and equipment
     47       95  
 
            
Net cash used in investing activities
     (3,699 )     (8,422 )
 
                
CASH FLOWS FROM FINANCING ACTIVITIES
                
Proceeds from exercise of stock options
     81       74  
Excess tax benefits from stock-based compensation
     5       33  
Borrowings under revolving credit facilities
     82,184       86,619  
Payments under revolving credit facilities
     (28,184 )     (86,619 )
Payments under long-term debt obligations
     (77,726 )     —  
Repurchases of common stock
     —       (8,210 )
Common stock dividends paid
     (2,744 )     (2,767 )
 
            
Net cash used in financing activities
     (26,384 )     (10,870 )
 
            
 
                
NET DECREASE IN CASH AND CASH EQUIVALENTS
     (13,447 )     (10,611 )
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
     41,224       29,885  
 
            
CASH AND CASH EQUIVALENTS AT END OF PERIOD
   $ 27,777     $ 19,274