SOURCE: Wabash National Corporation

October 31, 2007 17:42 ET

Wabash National Corporation Announces Third Quarter and Year-to-Date Results

LAFAYETTE, IN--(Marketwire - October 31, 2007) - Wabash National Corporation (NYSE: WNC) reported net income of $3.8 million, or $0.12 per diluted share for the third quarter of 2007 on sales of $291.0 million. For the same quarter last year, the company reported net income of $5.0 million, or $0.15 per diluted share, on sales of $362.3 million. For the nine months ended September 30, 2007, net income totaled $10.6 million, or $0.35 per diluted share on sales of $844.7 million. In the comparable period in 2006, the company reported net income of $14.4 million, or $0.44 per diluted share on sales of $958.0 million.

Third quarter new trailer sales totaled 12,100 units, a decrease of 3 percent from the second quarter; however, new trailer production for the period declined approximately 18 percent. The sequential reduction in production, coupled with costs associated with realigning operations, more than offset the continued performance improvements across the organization.

"A continuing soft freight market, related in part to the ongoing residential construction slump, is adversely impacting trucking companies' profitability and their need for new equipment," said Dick Giromini, president and chief executive officer. "As a result, we now anticipate total new trailer sales for the year to be approximately 46,000 units. Given our visibility into next quarter, this total is essentially booked. We believe we have taken the necessary measures to appropriately size our operations during this slowdown including plant idling, headcount reductions and spending restrictions. We continue to believe that we are well into the downturn of the cycle, and expect to begin seeing improving order rates in the second half of 2008."

As of September 30, 2007 the company's backlog was approximately $393 million.

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, and intermodal equipment. Its innovative core products are sold under the DuraPlate®, ArcticLite®, and Eagle® brand names. The company operates two wholly owned subsidiaries: Transcraft Corporation, a manufacturer of flatbed and drop deck trailers; and Wabash National Trailer Centers, a retail distributor 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
                 (in thousands, except per share amounts)
                                (Unaudited)


                                 Three Months            Nine Months
                              Ended September 30,     Ended September 30,
                            ----------------------  ----------------------
                               2007        2006        2007        2006
                            ----------  ----------  ----------  ----------

NET SALES                   $  291,017  $  362,290  $  844,720  $  957,981
COST OF SALES                  266,424     336,177     772,110     881,805
                            ----------  ----------  ----------  ----------
   Gross profit                 24,593      26,113      72,610      76,176
GENERAL AND ADMINISTRATIVE
 EXPENSES                       13,173      12,068      38,332      36,998
SELLING EXPENSES                 3,916       3,651      12,029      10,446
                            ----------  ----------  ----------  ----------
   Income from operations        7,504      10,394      22,249      28,732
OTHER INCOME (EXPENSE):
   Interest expense             (1,416)     (2,081)     (4,410)     (5,163)
   Foreign exchange, net            65         (28)        461         (28)
   Other, net                      (86)       (365)       (592)       (123)
                            ----------  ----------  ----------  ----------
   Income before income
    taxes                        6,067       7,920      17,708      23,418
INCOME TAX EXPENSE               2,289       2,931       7,059       9,045
                            ----------  ----------  ----------  ----------
NET INCOME                  $    3,778  $    4,989  $   10,649  $   14,373
                            ==========  ==========  ==========  ==========
COMMON STOCK DIVIDENDS
 DECLARED                   $    0.045  $    0.045  $    0.135  $    0.135
                            ==========  ==========  ==========  ==========
BASIC NET INCOME PER SHARE  $     0.13  $     0.16  $     0.35  $     0.46
                            ==========  ==========  ==========  ==========
DILUTED NET INCOME PER
 SHARE                      $     0.12  $     0.15  $     0.35  $     0.44
                            ==========  ==========  ==========  ==========

COMPREHENSIVE INCOME
   Net income               $    3,778  $    4,989  $   10,649  $   14,373
   Foreign currency
    translation adjustment         113          86         339         843
                            ----------  ----------  ----------  ----------
NET COMPREHENSIVE INCOME    $    3,891  $    5,075  $   10,988  $   15,216
                            ==========  ==========  ==========  ==========


                                        Retail and             Consolidated
                         Manufacturing Distribution Eliminations  Totals
                         ------------- ------------ ------------ ---------
Three months ended
 September 30,
------------------
               2007
               ----
   Net sales                $  270,054  $   34,714  $  (13,751) $  291,017
   Income (loss) from
    operations              $    8,165  $     (699) $       38  $    7,504
               2006
               ----
   Net sales                $  336,842  $   51,424  $  (25,976) $  362,290
   Income (loss) from
    operations              $    9,467  $    1,183  $     (256) $   10,394

Nine months ended
 September 30,
------------------
               2007
               ----
   Net sales                $  777,211  $  117,569  $  (50,060) $  844,720
   Income (loss) from
    operations              $   24,212  $   (1,337) $     (626) $   22,249
               2006
               ----
   Net sales                $  870,359  $  144,812  $  (57,190) $  957,981
   Income (loss) from
    operations              $   27,091  $    2,092  $     (451) $   28,732







                                    Three Months Ended  Nine Months Ended
                                      September 30,       September 30,
                                    ------------------- -------------------
                                      2007      2006      2007      2006
                                    --------- --------- --------- ---------
Basic net income per share:
  Net income applicable to common
   stockholders                     $   3,778 $   4,989 $  10,649 $  14,373
                                    ========= ========= ========= =========
  Weighted average common shares
   outstanding                         29,874    31,174    30,132    31,148
                                    ========= ========= ========= =========
  Basic net income per share        $    0.13 $    0.16 $    0.35 $    0.46
                                    ========= ========= ========= =========

Diluted net income per share:
  Net income applicable to common
   stockholders                     $   3,778 $   4,989 $  10,649 $  14,373
  After-tax equivalent of interest
   on convertible notes                   741       741     2,222     2,222
                                    --------- --------- --------- ---------
  Diluted net income applicable to
   common stockholders              $   4,519 $   5,730 $  12,871 $  16,595
                                    ========= ========= ========= =========

  Weighted average common shares
   outstanding                         29,874    31,174    30,132    31,148
  Dilutive stock options/shares           234       154       255       191
  Convertible notes equivalent
   shares                               6,692     6,619     6,675     6,598
                                    --------- --------- --------- ---------
  Diluted weighted average common
   shares outstanding                  36,800    37,947    37,062    37,937
                                    ========= ========= ========= =========
  Diluted net income per share      $    0.12 $    0.15 $    0.35 $    0.44
                                    ========= ========= ========= =========






                        WABASH NATIONAL CORPORATION
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (in thousands)


                                                September 30, December 31,
                                                    2007          2006
                                                ------------- -------------
                                                (Unaudited)
                          ASSETS
                          ------
CURRENT ASSETS:
   Cash and cash equivalents                    $      21,657 $      29,885
   Accounts receivable, net                           100,342       110,462
   Inventories                                        154,294       133,133
   Deferred income taxes                               22,423        26,650
   Prepaid expenses and other                           1,821         4,088
                                                ------------- -------------
      Total current assets                            300,537       304,218

PROPERTY, PLANT AND EQUIPMENT, net                    124,307       129,325

GOODWILL                                               66,317        66,692

INTANGIBLE ASSETS                                      33,384        35,998

OTHER ASSETS                                           19,057        20,250
                                                ------------- -------------
                                                $     543,602 $     556,483
                                                ============= =============

           LIABILITIES AND STOCKHOLDERS' EQUITY
           ------------------------------------
CURRENT LIABILITIES:
   Accounts payable                             $      77,493 $      90,632
   Other accrued liabilities                           56,086        58,706
                                                ------------- -------------
      Total current liabilities                       133,579       149,338

LONG-TERM DEBT                                        125,000       125,000

DEFERRED INCOME TAXES                                   3,550         1,556

OTHER NONCURRENT LIABILITIES AND CONTINGENCIES          3,608         2,634

STOCKHOLDERS' EQUITY                                  277,865       277,955
                                                ------------- -------------
                                                $     543,602 $     556,483
                                                ============= =============






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

                                                          Nine Months
                                                      Ended September 30,
                                                      --------------------
                                                        2007       2006
                                                      ---------  ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                          $  10,649  $  14,373
  Adjustments to reconcile net income to net cash
   provided by (used in) operating activities:
  Depreciation and amortization                          14,477     15,587
  Net loss on the sale of assets                            106         54
  Deferred income taxes                                   6,596      8,007
  Excess tax benefits from stock-based
   compensation                                             (33)      (339)
  Stock-based compensation                                3,213      3,029
  Changes in operating assets and liabilities:
     Accounts receivable                                 10,120    (25,380)
     Finance contracts                                        7      1,393
     Inventories                                        (21,211)   (56,987)
     Prepaid expenses and other                           2,260      2,394
     Accounts payable and accrued liabilities            (9,991)    30,727
     Other, net                                             819      1,464
                                                      ---------  ---------
         Net cash provided by (used in) operating
          activities                                     17,012     (5,678)
CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                                   (5,196)   (10,899)
  Acquisition, net of cash acquired                      (4,500)   (69,307)
  Proceeds from the sale of property, plant and
   equipment                                                124      1,890
                                                      ---------  ---------
         Net cash used in investing activities           (9,572)   (78,316)
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from exercise of stock options                    74        713
  Excess tax benefits from stock-based compensation          33        339
  Borrowings under revolving credit facilities           99,424    205,496
  Payments under revolving credit facilities            (99,424)  (168,521)
  Repurchases of common stock                           (11,668)      (507)
  Payments under long-term debt obligations                   -       (500)
  Common stock dividends paid                            (4,107)    (4,252)
                                                      ---------  ---------
         Net cash (used in) provided by financing
          activities                                    (15,668)    32,768
                                                      ---------  ---------
NET DECREASE IN CASH AND CASH EQUIVALENTS                (8,228)   (51,226)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD         29,885     67,437
                                                      ---------  ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD            $  21,657  $  16,211
                                                      =========  =========

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