SOURCE: Wabash National Corporation

April 30, 2007 16:43 ET

Wabash National Corporation Announces First Quarter Results

LAFAYETTE, IN -- (MARKET WIRE) -- April 30, 2007 -- Wabash National Corporation (NYSE: WNC) today announced results for the three months ended March 31, 2007. Net sales for the quarter were $259 million compared to $262 million for the same period last year. Net Income for the quarter was $1.0 million or $0.03 per diluted share, compared to net income of $4.3 million or $0.13 per diluted share for the year ago period.

Commenting, Dick Giromini, President and Chief Executive Officer, stated, "In most respects the first quarter developed in line with our expectations for a slow start due to the weak freight environment. New trailer shipments totaled 11,000 units, as the addition of Transcraft Corporation's platform trailer sales (acquired in March 2006) offset reduced van trailer sales. We were successful in maintaining price increases implemented in the latter part of 2006, and manufacturing performance registered gains in process yield and productivity year over year. Margin performance was constrained in part due to a year-end shut down that continued through the first week of January and a three day outage resulting from a February blizzard."

"Recent quote activity is good; however, order conversion remains constrained as customers continue to monitor economic conditions. We currently have approximately 75% of our 52,000 unit target for 2007 booked. The March 31, 2007 backlog amounts to $558 million, including $33 million for flatbeds, compared to $512 million, which included $28 million for flatbeds, at December 31, 2006."

Wabash National Corporation will conduct a conference call to review and discuss its first quarter results on Tuesday, May 1, 2007, 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 July 23, 2007.

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. 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
                                                      Ended March 31,
                                                  ------------------------
                                                      2007         2006
                                                  -----------  -----------

NET SALES                                         $   258,854  $   262,119
COST OF SALES                                         238,669      239,328
                                                  -----------  -----------
  Gross profit                                         20,185       22,791
GENERAL AND ADMINISTRATIVE EXPENSES                    12,720       10,703
SELLING EXPENSES                                        4,150        3,308
                                                  -----------  -----------
  Income from operations                                3,315        8,780
OTHER INCOME (EXPENSE):
  Interest expense                                     (1,546)      (1,559)
  Foreign exchange gains and losses, net                   34         (117)
  Other, net                                               59           57
                                                  -----------  -----------
  Income before income taxes                            1,862        7,161

INCOME TAX EXPENSE                                        866        2,824
                                                  -----------  -----------
NET INCOME                                        $       996  $     4,337
                                                  ===========  ===========
COMMON STOCK DIVIDENDS DECLARED                   $     0.045  $     0.045
                                                  ===========  ===========
BASIC NET INCOME PER SHARE                        $      0.03  $      0.14
                                                  ===========  ===========
DILUTED NET INCOME PER SHARE                      $      0.03  $      0.13
                                                  ===========  ===========
COMPREHENSIVE INCOME
  Net income                                      $       996  $     4,337
  Foreign currency translation adjustment                  20           92
                                                  -----------  -----------
NET COMPREHENSIVE INCOME                          $     1,016  $     4,429
                                                  ===========  ===========



                                      Retail &
Three months ended   Manufacturing  Distribution  Eliminations    Total
                     -------------  ------------  ------------  -----------
     2007
Net sales            $     238,505  $     42,300  $    (21,951)  $  258,854
Income (loss) from
 operations          $       4,101  $       (348) $       (438)  $    3,315

     2006
Net sales            $     241,974  $     45,369  $    (25,224)  $  262,119
Income (loss) from
 operations          $      10,593  $        185  $     (1,998)  $    8,780



                                                     Three Months Ended
                                                          March 31,
                                                  -------------------------
                                                      2007         2006
                                                  ------------ ------------
Basic net income per share:
  Net income applicable to common stockholders    $        996 $      4,337
                                                  ============ ============
  Weighted average common shares outstanding            30,293       31,114
                                                  ============ ============
  Basic net income per share                      $       0.03 $       0.14
                                                  ============ ============

Diluted net income per share:
  Net income applicable to common stockholders    $        996 $      4,337
  After-tax equivalent of interest on
   convertible notes                                         -          741
                                                  ------------ ------------
  Diluted net income applicable to common
   stockholders                                   $        996 $      5,078
                                                  ============ ============

  Weighted average common shares outstanding            30,293       31,114
  Dilutive stock options/shares                            224          215
  Convertible notes equivalent shares                        -        6,578
                                                  ------------ ------------
  Diluted weighted average common shares
   outstanding                                          30,517       37,907
                                                  ============ ============
  Diluted net income per share                    $       0.03 $       0.13
                                                  ============ ============



Diluted per share amount in the 2007 period excludes the antidilutive
 effects of the convertible notes.



                        WABASH NATIONAL CORPORATION
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (in thousands)


                                                March 31,     December 31,
                                                  2007           2006
                                             --------------  --------------
                                              (Unaudited)
                            ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                  $       17,419  $       29,885
  Accounts receivable, net                          109,470         110,462
  Inventories                                       170,513         133,133
  Deferred income taxes                              26,206          26,650
  Prepaid expenses and other                          3,893           4,088
                                             --------------  --------------
    Total current assets                            327,501         304,218

PROPERTY, PLANT AND EQUIPMENT, net                  127,675         129,325

EQUIPMENT LEASED TO OTHERS, net                       1,143           1,302

GOODWILL                                             66,692          66,692

INTANGIBLE ASSETS                                    35,131          35,998

OTHER ASSETS                                         19,404          18,948
                                             --------------  --------------
                                             $      577,546  $      556,483
                                             ==============  ==============

      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                           $      109,414  $       90,632
  Other accrued liabilities                          59,101          58,706
                                             --------------  --------------
    Total current liabilities                       168,515         149,338

LONG-TERM DEBT                                      128,850         125,000

DEFERRED INCOME TAXES                                 1,766           1,556

OTHER NONCURRENT LIABILITIES AND
 CONTINGENCIES                                        2,892           2,634

STOCKHOLDERS' EQUITY                                275,523         277,955
                                             --------------  --------------
                                             $      577,546  $      556,483
                                             ==============  ==============



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

                                                   Three Months Ended
                                                       March 31,
                                             -----------------------------
                                                 2007            2006
                                             -------------   -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                 $         996   $       4,337
  Adjustments to reconcile net income to net
   cash (used in) provided by
   operating activities:
    Depreciation and amortization                    4,743           4,122
    Net gain on the sale of assets                       -             (16)
    Deferred income taxes                              654           2,812
    Excess tax benefits from stock-based
     compensation                                      (65)           (176)
    Stock-based compensation                         1,083             867
    Change in operating assets and
     liabilities:
      Accounts receivable                              992          65,505
      Inventories                                  (37,367)        (41,085)
      Prepaid expenses and other                       194           1,232
      Accounts payable and accrued
       liabilities                                  20,662          11,934
      Other, net                                      (425)            942
                                             -------------   -------------
        Net cash (used in) provided by
         operating activities                       (8,533)         50,474
CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                              (1,832)         (5,711)
  Acquisitions, net of cash acquired                     -         (71,550)
  Proceeds from the sale of property, plant
   and equipment                                         -             347
                                             -------------   -------------
    Net cash used in investing activities           (1,832)        (76,914)
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from exercise of stock options               35             385
  Excess tax benefits from stock-based
   compensation                                         65             176
  Borrowings under revolving credit
   facilities                                       44,650             106
  Payments under revolving credit facilities       (40,800)           (106)
  Payments under long-term debt obligations              -            (500)
  Repurchase of common stock                        (4,658)              -
  Common stock dividends paid                       (1,393)         (1,407)
                                             -------------   -------------
    Net cash used in financing activities           (2,101)         (1,346)
                                             -------------   -------------

NET DECREASE IN CASH AND CASH EQUIVALENTS          (12,466)        (27,786)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
 QUARTER                                            29,885          67,437
                                             -------------   -------------
CASH AND CASH EQUIVALENTS AT END OF QUARTER  $      17,419   $      39,651
                                             =============   =============

Contact Information

  • Press Contact:
    Tom Rodak
    Marketing and Communications Manager
    (765) 771-5535

    Investor Relations:
    (765) 771-5310