SOURCE: Wabash National Corporation

April 28, 2008 17:02 ET

Wabash National Corporation Announces First Quarter Results

LAFAYETTE, IN--(Marketwire - April 28, 2008) - Wabash National Corporation (NYSE: WNC) reported a net loss of $6.4 million or $0.21 per diluted share for the first quarter of 2008 on net sales of $161 million. For the same quarter last year, the company reported net income of $1.0 million or $0.03 per diluted share, on revenue of $259 million. First quarter new trailer sales totaled 6,300 units, which represents a 43% reduction from the prior year period. The volume decline reflects the current economic environment and the continuing recessionary conditions in the transportation industry.

Dick Giromini, President and Chief Executive Officer, stated, "The first quarter of 2008 reinforced our expectation that the year will be one of challenges, but also great opportunities. Through our cost management initiatives and efforts to right size the business to the current demand environment, we were able to optimize performance, thereby minimizing losses during the first quarter. However, near-term profitability will continue to be impacted by constrained demand for trailers resulting from a weak freight environment along with an imbalance between commodity costs and selling prices. Longer-term, our strategic opportunities are beginning to show great promise, as we have implemented the necessary steps to lay the foundation for our DuraPlate® Products Group, purchasing consortium and manufacturing restructuring initiatives."

"Given the current trailer demand environment, we now anticipate total new trailer sales for the year to be 38,000 units," continued Giromini. "Our backlog of orders at March 31, 2008 was approximately $537 million, compared to $336 million at December 31, 2007."

Wabash National Corporation will conduct a conference call to review and discuss its first quarter results on Tuesday, April 29, 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 July 22, 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, 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 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 economic conditions, 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)

                                                     Three Months Ended
                                                          March 31,
                                                   -----------------------
                                                      2008         2007
                                                   ----------   ----------

NET SALES                                          $  161,061   $  258,854
COST OF SALES                                         155,156      238,669
                                                   ----------   ----------
   Gross profit                                         5,905       20,185
GENERAL AND ADMINISTRATIVE EXPENSES                    11,499       12,720
SELLING EXPENSES                                        3,443        4,150
                                                   ----------   ----------
   (Loss) Income from operations                       (9,037)       3,315
OTHER INCOME (EXPENSE)
   Interest expense                                    (1,174)      (1,546)
   Foreign exchange, net                                  (25)          34
   Gain on debt extinguishment                            124            -
   Other, net                                              32           59
                                                   ----------   ----------
   (Loss) Income before income taxes                  (10,080)       1,862
INCOME TAX (BENEFIT) EXPENSE                           (3,693)         866
                                                   ----------   ----------
NET (LOSS) INCOME                                  $   (6,387)  $      996
                                                   ==========   ==========
COMMON STOCK DIVIDENDS DECLARED                    $    0.045   $    0.045
                                                   ==========   ==========
BASIC NET (LOSS) INCOME PER SHARE                  $    (0.21)  $     0.03
                                                   ==========   ==========
DILUTED NET (LOSS) INCOME PER SHARE                $    (0.21)  $     0.03
                                                   ==========   ==========
COMPREHENSIVE (LOSS) INCOME
   Net (loss) income                               $   (6,387)  $      996
   Foreign currency translation adjustment                  -           20
                                                   ----------   ----------
NET COMPREHENSIVE (LOSS) INCOME                    $   (6,387)  $    1,016
                                                   ==========   ==========


                                         Retail &
Three months ended      Manufacturing  Distribution  Eliminations   Total
------------------      -------------  ------------  ------------   -----
    2008
    ----
Net sales                  $  142,263  $   28,385  $   (9,587)  $  161,061
(Loss) Income from
 operations                $   (8,482) $   (1,003) $      448   $   (9,037)

    2007
    ----
Net sales                  $  238,505  $   42,300  $  (21,951)  $  258,854
Income (loss) from
 operations                $    4,101  $     (348) $     (438)  $    3,315



                                                     Three Months Ended
                                                          March 31,
                                                   -----------------------
                                                      2008         2007
                                                   ----------   ----------
Basic net (loss) income per share
     Net (loss) income applicable to common
      stockholders                                 $   (6,387)  $      996
                                                   ==========   ==========
     Weighted average common shares outstanding        29,880       30,293
                                                   ==========   ==========
     Basic net (loss) income per share             $    (0.21)  $     0.03
                                                   ==========   ==========

Diluted net (loss) income per share
     Net (loss) income applicable to common
      stockholders                                 $   (6,387)  $      996
     After-tax equivalent of interest on
      convertible notes                                     -            -
                                                   ----------   ----------
     Diluted net (loss) income applicable to
      common stockholders                          $   (6,387)  $      996

     Weighted average common shares outstanding        29,880       30,293
     Dilutive stock options/shares                          -          224
     Convertible notes equivalent shares                    -            -
     Diluted weighted average common shares
      outstanding                                      29,880       30,517
                                                   ==========   ==========
     Diluted net (loss) income per share           $    (0.21)  $     0.03
                                                   ==========   ==========

     Average diluted shares outstanding for the three months ended
     March 31, 2008 and 2007 exclude the antidilutive effects of the
     Company's Senior Convertible Notes (Convertible Notes). The after-tax
     equivalent of interest on Convertible Notes was $0.5 million and
     $0.7 million, respectively, and the Convertible Notes equivalent
     shares were 4.8 million and 6.7 million, respectively. Diluted shares
     outstanding for the three months ended March 31, 2008 also exclude the
     antidilutive effects of potentially dilutive stock options totaling
     approximately 115,000 shares of common stock.



                       WABASH NATIONAL CORPORATION
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (in thousands)


                                                   March 31,   December 31,
                                                      2008        2007
                                                   ----------  -----------
                                                   (Unaudited)
                          ASSETS
                          ------
CURRENT ASSETS
   Cash and cash equivalents                       $    6,277   $   41,224
   Accounts receivable, net                            65,486       68,752
   Inventories                                        133,225      113,125
   Deferred income taxes                               14,884       14,514
   Prepaid expenses and other                           3,168        4,046
                                                   ----------   ----------
      Total current assets                            223,040      241,661

PROPERTY, PLANT AND EQUIPMENT, net                    120,028      122,063

DEFERRED INCOME TAXES                                   5,932        2,772

GOODWILL                                               66,317       66,317

INTANGIBLE ASSETS                                      31,628       32,498

OTHER ASSETS                                           17,449       18,271
                                                   ----------   ----------
                                                   $  464,394   $  483,582
                                                   ==========   ==========


           LIABILITIES AND STOCKHOLDERS' EQUITY
           ------------------------------------
CURRENT LIABILITIES
   Accounts payable                                    59,634       40,787
   Other accrued liabilities                           49,229       54,258
                                                   ----------   ----------
      Total current liabilities                       108,863       95,045

LONG-TERM DEBT                                         78,629      104,500

OTHER NONCURRENT LIABILITIES AND CONTINGENCIES          4,149        4,108

STOCKHOLDERS' EQUITY                                  272,753      279,929
                                                   ----------   ----------
                                                   $  464,394   $  483,582
                                                   ==========   ==========



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

                                                     Three Months Ended
                                                          March 31,
                                                   -----------------------
                                                     2008          2007
                                                   ----------   ----------
CASH FLOWS FROM OPERATING ACTIVITIES
 Net (loss) income                                 $   (6,387)  $      996
 Adjustments to reconcile net (loss) income to
  net cash used in operating activities
    Depreciation and amortization                       5,187        4,743
    Gain on debt extinguishment                          (124)           -
    Deferred income taxes                              (3,530)         654
    Excess tax benefits from stock-based
     compensation                                           -          (65)
    Stock-based compensation                              863        1,083
    Changes in operating assets and liabilities
      Accounts receivable                               3,266          992
      Inventories                                     (20,100)     (37,367)
      Prepaid expenses and other                          878          194
      Accounts payable and accrued liabilities         13,572       20,662
      Other, net                                          101         (425)
                                                   ----------   ----------
        Net cash used in operating activities          (6,274)      (8,533)

CASH FLOWS FROM INVESTING ACTIVITIES
 Capital expenditures                                  (1,741)      (1,832)
 Proceeds from the sale of property, plant and
  equipment                                                 4            -
                                                   ----------   ----------
        Net cash used in investing activities          (1,737)      (1,832)

CASH FLOWS FROM FINANCING ACTIVITIES
 Proceeds from exercise of stock options                    4           35
 Excess tax benefits from stock-based
  compensation                                              -           65
 Borrowings under revolving credit facilities          45,265       44,650
 Payments under revolving credit facilities           (12,430)     (40,800)
 Payments under long-term debt obligations            (58,412)           -
 Repurchase of common stock                                 -       (4,658)
 Common stock dividends paid                           (1,363)      (1,393)
                                                   ----------   ----------
        Net cash used in financing activities         (26,936)      (2,101)
                                                   ----------   ----------

NET DECREASE IN CASH AND CASH EQUIVALENTS             (34,947)     (12,466)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
 QUARTER                                               41,224       29,885
                                                   ----------   ----------
CASH AND CASH EQUIVALENTS AT END OF QUARTER        $    6,277   $   17,419
                                                   ==========   ==========

Contact Information

  • Press Contact:
    Jim Hasty
    VP, Marketing & Sales Administration
    (765) 771-5487

    Investor Relations:
    (765) 771-5310