SOURCE: Wabash National Corporation

February 16, 2009 18:40 ET

Wabash National Corporation Announces 2008 Fourth Quarter and Full Year Results

LAFAYETTE, IN--(Marketwire - February 16, 2009) - Wabash National Corporation (NYSE: WNC) reported a net loss of $110.7 million, or $3.69 per diluted share, for the fourth quarter of 2008 on net sales of $230.7 million. For the same quarter last year, the Company reported net income of $5.6 million, or $0.18 per diluted share, on net sales of $257.8 million. For the twelve months ending December 31, 2008, net losses totaled $124.7 million, or $4.16 per diluted share, on net sales of $836.2 million. For the comparable period in 2007, the Company reported net income of $16.3 million, or $0.52 per diluted share, on net sales of $1.1 billion.

Fourth quarter and full year 2008 results include previously announced non-cash charges related to a goodwill impairment of $66.3 million and a charge to income tax expense of approximately $23.1 million related to establishing a full valuation allowance on previously established net deferred tax assets. Results for the fourth quarter and full year 2007 include the recognition of $3.3 million of foreign currency gains related to the Company's sale of its Canadian branches and a gain of $0.5 million on the early retirement of long-term debt.

Dick Giromini, President and Chief Executive Officer, stated, "Today's operating environment within the markets we serve is as challenging as any in the history of Wabash National and the broader industry. As expected, the fourth quarter proved to be the most difficult quarter of the year, as margins were adversely impacted by the overhang of high raw material costs from prior periods, combined with a challenging pricing environment. To a lesser extent, our performance during the quarter was also impacted by fewer production days related to the holiday season and an extended annual shutdown. Despite these challenges, we nonetheless were successful in increasing our market share as a result of our industry-leading product offerings and the strength of our customer base. Additionally, our diversification efforts received a jumpstart with the award of the PODS® manufacturing agreement, and the ramp-up of our Cadiz, KY aluminum flatbed and dump acquisition.

"Our order backlog as of December 31, 2008 was approximately $110 million driven by slow order placement as customers continue to maintain a wait and see approach," continued Giromini. "In response to the near-term outlook for the broader economy, our industry, and for Wabash National, we continue to proactively and aggressively implement cost reduction actions to improve both our operating performance and our liquidity. Recent actions include:

--  Staffing reductions now totaling 180 salaried associates, bringing
    total salaried headcount reductions to over 30% since the beginning of the
    industry downturn in early 2007,
--  Base salary reductions of 10% for all Officers of the Company and
    temporary reductions of 10% of annualized base salary for all remaining
    salaried associates,
--  Continued close monitoring of the costs associated with hourly
    associates including the elimination of certain incentives,
--  Cancelled or delayed non-critical development and capital projects.
    

"We are successfully working with our suppliers on improved prices and terms, and we have initiated discussions with our bank group to modify our revolving credit facility to seek to assure continued availability at appropriate levels in light of current operating conditions. These discussions are at an early stage but members of our bank group were with us in the tough times earlier this decade and we feel we have a good and constructive relationship with the group. We are also exploring ways to strengthen our financial position through capital-raising or other steps.

"We will continue to closely monitor our cost structure going forward and will act decisively to right size the business further if market dynamics dictate. We are confident we are taking the necessary steps to prudently manage the business in spite of a very difficult operating environment."

Non-Cash Charges

During the fourth quarter, the Company recorded non-cash charges relating to goodwill impairment and income tax expense. After reviewing goodwill for impairment during the fourth quarter, the Company determined that its goodwill, related to its platform trailer (resulting from the acquisition of Transcraft) and wood products manufacturing operations, was impaired and recorded a charge of $66.3 million. The determination that goodwill was impaired was made after considering the current macroeconomic environment, the depressed market price of the Company's common stock, and the present value of expected future cash flows.

Additionally, the Company reported a fourth quarter charge to income tax expense of $23.1 related to establishing a full valuation allowance on its previously established net deferred tax assets. The Company considered all available evidence, both positive and negative, and concluded that it was no longer more likely than not that it would realize the value of its net deferred tax assets.

Director Resignation

Effective February 12, 2009, Mr. William Greubel resigned as a member of our Board of Directors. We thank Bill for his dedicated service to Wabash National since 2002 as President and CEO, Chairman of the Board of Directors, and most recently as Director.

Fourth Quarter and Full Year 2008 Conference Call

Wabash National Corporation will conduct a conference call to review and discuss its fourth quarter and full year results on Tuesday, February 17, 2009, at 10:00 a.m. EST. 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 May 12, 2009.

About Wabash National Corporation

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®, FreightPro™ Eagle® and Benson™ 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.

PODS® is a registered trademark of PODS Enterprises, Inc.

Safe Harbor Statement

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 the current contraction in demand for transportation equipment associated with current economic conditions, 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, uncertainty in the outcome of our discussions with lenders, risks that we may be unable to raise capital if needed 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                Twelve Months
                        Ended December 31,          Ended December 31,
                   ---------------------------  --------------------------
                       2008           2007          2008          2007
                   -------------  ------------  ------------  ------------

NET SALES          $     230,715  $    257,824  $    836,213  $  1,102,544
COST OF SALES            234,916       238,713       814,748     1,010,823
                   -------------  ------------  ------------  ------------
  Gross profit            (4,201)       19,111        21,465        91,721
GENERAL AND
 ADMINISTRATIVE
 EXPENSES                 11,575        11,180        43,591        49,512
SELLING EXPENSES           3,973         3,714        14,162        15,743
IMPAIRMENT OF
 GOODWILL                 66,317             -        66,317             -
                   -------------  ------------  ------------  ------------
  (Loss) Income
   from operations       (86,066)        4,217      (102,605)       26,466
OTHER INCOME
 (EXPENSE)
  Interest
   expense                (1,308)       (1,345)       (4,657)       (5,755)
  Foreign
   exchange, net             (65)        3,357          (156)        3,818
  Gain on debt
   extinguishment              -           546           151           546
  Other, net                (240)          205          (323)         (387)
                   -------------  ------------  ------------  ------------
  (Loss) Income
   before income
   taxes                 (87,679)        6,980      (107,590)       24,688
INCOME TAX EXPENSE        23,055         1,344        17,064         8,403
                   -------------  ------------  ------------  ------------
NET (LOSS) INCOME  $    (110,734) $      5,636  $   (124,654) $     16,285
                   =============  ============  ============  ============
COMMON STOCK
 DIVIDENDS
 DECLARED          $           -  $      0.045  $      0.135  $      0.180
                   =============  ============  ============  ============
BASIC NET (LOSS)
 INCOME PER SHARE  $       (3.69) $       0.19  $      (4.16) $       0.54
                   =============  ============  ============  ============
DILUTED NET (LOSS)
 INCOME PER SHARE  $       (3.69) $       0.18  $      (4.16) $       0.52
                   =============  ============  ============  ============

COMPREHENSIVE
 (LOSS) INCOME
  Net (loss)
   income          $    (110,734) $      5,636  $   (124,654) $     16,285
  Changes in fair
   value of
   derivatives
   (net of tax)           (1,376)            -        (1,516)            -
  Reclassification
   adjustment for
   foreign exchange
   gains included
   in net income               -        (3,322)            -        (3,322)
  Foreign
   currency
   translation
   adjustment                  -             8             -           347
                   -------------  ------------  ------------  ------------
NET COMPREHENSIVE
 (LOSS) INCOME     $    (112,110) $      2,322  $   (126,170) $     13,310
                   =============  ============  ============  ============

                                   Retail and                 Consolidated
                   Manufacturing  Distribution  Eliminations     Totals
                   -------------  ------------  ------------  ------------
Three months ended
 December 31,
    2008
Net sales          $     208,861  $     29,729  $     (7,875) $    230,715
(Loss) Income from
 operations        $     (83,126) $     (3,153) $        213  $    (86,066)
New trailers
 shipped                   9,200           500          (300)        9,400

    2007
Net sales          $     237,758  $     32,921  $    (12,855) $    257,824
Income (Loss) from
 operations        $       6,356  $     (2,219) $         80  $      4,217
New trailers
 shipped                  10,800           700          (600)       10,900

Twelve months ended
 December 31,
    2008
Net sales          $     744,899  $    142,058  $    (50,744) $    836,213
(Loss) Income from
 operations        $     (97,739) $     (5,920) $      1,054  $   (102,605)
New trailers
 shipped                  33,100         2,500        (2,300)       33,300

    2007
Net sales          $   1,014,969  $    150,490  $    (62,915) $  1,102,544
Income (Loss) from
 operations        $      30,568  $     (3,556) $       (546) $     26,466
New trailers
 shipped                  46,300         3,000        (2,900)       46,400







                              Three Months Ended      Twelve Months Ended
                                 December 31,            December 31,
                            ----------------------  ----------------------
                               2008        2007        2008        2007
                            ----------  ----------- ----------  -----------
Basic net (loss) income per
 share
  Net (loss) income
   applicable to common
   stockholders             $ (110,734) $     5,636 $ (124,654) $    16,285
                            ==========  =========== ==========  ===========
  Weighted average common
   shares outstanding           30,016       29,843     29,954       30,060
                            ==========  =========== ==========  ===========
  Basic net (loss) income
   per share                $    (3.69) $      0.19 $    (4.16) $      0.54
                            ==========  =========== ==========  ===========

Diluted net (loss) income
 per share
  Net (loss) income
   applicable to common
   stockholders             $ (110,734) $     5,636 $ (124,654) $    16,285
  After-tax equivalent of
   interest on convertible
   notes                             -          683          -        2,905
                            ----------  ----------- ----------  -----------
  Diluted net (loss) income
   applicable to common
   stockholders             $ (110,734) $     6,319 $ (124,654) $    19,190
                            ==========  =========== ==========  ===========

  Weighted average common
   shares outstanding           30,016       29,843     29,954       30,060
  Dilutive stock
   options/shares                    -           63          -          207
  Convertible notes
   equivalent shares                 -        6,173          -        6,549
                            ----------  ----------- ----------  -----------
  Diluted weighted average
   common shares
   outstanding                  30,016       36,079     29,954       36,816
                            ==========  =========== ==========  ===========
  Diluted net (loss) income
   per share                $    (3.69) $      0.18 $    (4.16) $      0.52
                            ==========  =========== ==========  ===========

Average diluted shares outstanding for the three month period ended
December 31, 2008 excludes any effects of the Company's Senior Convertible
Notes as all outstanding balances were purchased and retired on or before
August 1, 2008. For the twelve month period ended December 31, 2008, the
after-tax equivalent of interest on the Senior Convertible Notes was $0.8
million and the Senior Convertible Notes equivalent shares were 1.7
million. Diluted shares outstanding for the three and twelve month periods
ended December 31, 2008 also exclude the antidilutive effects of
potentially dilutive stock options and restricted stock totaling less than
0.1 million shares of common stock.







                        WABASH NATIONAL CORPORATION
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                          (Dollars in thousands)
                                (Unaudited)


                                                December 31,  December 31,
                                                    2008          2007
                                                ------------- -------------
                     ASSETS
CURRENT ASSETS
   Cash and cash equivalents                    $      29,766 $      41,224
   Accounts receivable, net                            37,925        68,752
   Inventories                                         92,896       113,125
   Deferred income taxes                                    -        14,514
   Prepaid expenses and other                           5,307         4,046
                                                ------------- -------------
      Total current assets                            165,894       241,661

PROPERTY, PLANT AND EQUIPMENT, net                    122,035       122,063

DEFERRED INCOME TAXES                                       -         2,772

GOODWILL                                                    -        66,317

INTANGIBLE ASSETS                                      29,089        32,498

OTHER ASSETS                                           14,956        18,271
                                                ------------- -------------
                                                $     331,974 $     483,582
                                                ============= =============

      LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
   Current portion of capital lease obligation  $         337 $           -
   Accounts payable                                    42,798        40,787
   Other accrued liabilities                           44,277        54,258
                                                ------------- -------------
      Total current liabilities                        87,412        95,045

LONG-TERM DEBT                                         80,008       104,500

CAPITAL LEASE OBLIGATION                                4,803             -

OTHER NONCURRENT LIABILITIES AND CONTINGENCIES          5,142         4,108

STOCKHOLDERS' EQUITY                                  154,609       279,929
                                                ------------- -------------
                                                $     331,974 $     483,582
                                                ============= =============








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


                                                   Years Ended December 31,
                                                    ----------------------
                                                       2008        2007
                                                    ----------  ----------
CASH FLOWS FROM OPERATING ACTIVITIES
  Net (loss) income                                 $ (124,654) $   16,285
  Adjustments to reconcile net (loss) income to net
   cash provided by operating activities
    Depreciation and amortization                       21,467      19,467
    Net loss on the sale of assets                         606         116
    Foreign exchange gain on disposition of
     Canadian subsidiary                                     -      (3,322)
    Gain on early debt extinguishment                     (151)       (546)
    Deferred income taxes                               17,286       8,182
    Excess tax benefits from stock-based
     compensation                                           (6)        (33)
    Stock-based compensation                             4,990       4,358
    Impairment of goodwill                              66,317           -
    Changes in operating assets and liabilities
      Accounts receivable                               30,827      41,717
      Inventories                                       20,229      19,958
      Prepaid expenses and other                           436           6
      Accounts payable and accrued liabilities          (6,829)    (48,487)
      Other, net                                           149       1,625
                                                    ----------  ----------
        Net cash provided by operating activities   $   30,667  $   59,326

CASH FLOWS FROM INVESTING ACTIVITIES
  Capital expenditures                                 (12,613)     (6,714)
  Acquisition, net of cash acquired                          -      (4,500)
  Proceeds from the sale of property, plant and
   equipment                                               213         147
                                                    ----------  ----------
        Net cash used in investing activities       $  (12,400) $  (11,067)

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         202,908     103,721
  Payments under revolving credit facilities          (122,900)   (103,721)
  Payments under long-term debt obligations           (104,133)    (19,852)
  Principal payments under capital lease obligation       (193)          -
  Repurchase of common stock                                 -     (11,668)
  Common stock dividends paid                           (5,510)     (5,507)
                                                    ----------  ----------
        Net cash used in financing activities       $  (29,725) $  (36,920)
                                                    ----------  ----------

NET (DECREASE) INCREASE IN CASH AND CASH
 EQUIVALENTS                                        $  (11,458) $   11,339
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD        41,224      29,885
                                                    ----------  ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD          $   29,766  $   41,224
                                                    ==========  ==========


Contact Information

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

    Investor Relations:
    (765) 771-5310