SOURCE: Wabash National Corporation

February 08, 2006 17:17 ET

Wabash National Corporation Announces Fourth Quarter and Year End Results

LAFAYETTE, IN -- (MARKET WIRE) -- February 8, 2006 -- Wabash National Corporation (NYSE: WNC) announced today results for the three and twelve months ended December 31, 2005. Net sales for the fourth quarter were $340.8 million compared to $287.4 million for the same period last year. Net income for the quarter was $19.7 million, compared to $13.0 million for the same period last year. For the year ended December 31, 2005, net sales were $1.214 billion compared to $1.041 billion for 2004. Net income for the year totaled $111.1 million, compared to $58.4 million in 2004. Diluted income per share was $0.55 for the fourth quarter 2005, compared to $0.39 per share for prior year quarter. For the twelve months ended December 31, 2005 diluted earnings per share was $3.06 compared to $1.80 in 2004. Included in the 2005 fourth quarter and year results were reversals of a valuation allowance amounting to $1.4 million or $0.04 per diluted share and $37.3 million or $ 0.98 per diluted share, respectively.

Commenting on these results, William P. Greubel, Chief Executive Officer, stated, "2005 was a year of growth, transition and learning for Wabash. Results overall were solid and in many categories record setting however, operating execution issues we faced and solved during the course of the year limited our achievements. Our performance and strong balance sheet reflects that we are truly in a new phase in our development. We strengthened our leadership team and Dick Giromini assumed the role of President in addition to his COO responsibilities. We continued to build an expanding presence with the mid-market fleets and applied more rigorous definitions of quality and performance. We invested significant resources into reinventing our manufacturing process and support infrastructure which we expect will drive operational and quality improvements and reduce our overall costs. We approach 2006 with a sense of optimism regarding industry demand and our ability to reap the rewards of our investments despite competitive pricing and raw material costs pressures. We will continue to seek to create shareholder value by striving to improve the productivity of our plants and retail operations and growing our market share."

Wabash National Corporation designs, manufactures, and markets standard and customized truck trailers under the Wabash® brand name. The Company is one of the world's largest manufacturers of truck trailers and a leading manufacturer of composite trailers. The Company's wholly owned subsidiary, Wabash National Trailer Centers, is one of the leading retail distributors 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 dependence on lenders to agree to amend financial covenants on favorable term, increased competition, dependence on key management, reliance on certain customers and corporate partnerships, shortages of raw materials, dependence on industry trends, export sales and new markets, acceptance of new technology and products, and government regulation. 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
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                      (in thousands, except per share amounts)
                                    (Unaudited)

                                  Three Months           Twelve Months
                               Ended December 31,      Ended December 31,
                             ---------------------   ---------------------
                                2005        2004        2005       2004
                             ---------   ---------   ---------   ---------

NET SALES                   $  340,789  $  287,357  $1,213,711  $1,041,096
COST OF SALES                  306,866     258,250   1,079,196     915,310
                            ----------  ----------  ----------  ----------
 Gross profit                   33,923      29,107     134,515     125,786
GENERAL AND ADMINISTRATIVE
 EXPENSES                        9,802      10,674      39,301      42,026
SELLING EXPENSES                 3,448       3,576      15,220      14,977
                            ----------  ----------  ----------  ----------
 Income from operations         20,673      14,857      79,994      68,783
OTHER INCOME (EXPENSE):
 Interest expense               (1,542)     (2,199)     (6,431)    (10,809)
 Foreign exchange gains and
  losses, net                      (15)        522         231         463
 Loss on debt extinguishment         -        (607)          -        (607)
 Other, net                       (716)         98         262       1,175
                            ----------  ----------  ----------  ----------
 Income before income taxes     18,400      12,671      74,056      59,005
INCOME TAX (BENEFIT)EXPENSE     (1,295)       (319)    (37,031)        600
                            ----------  ----------  ----------  ----------
 Net income                 $   19,695  $   12,990  $  111,087  $   58,405
                            ==========  ==========  ==========  ==========
COMMON STOCK DIVIDENDS
 DECLARED                   $    0.045  $        -  $     0.18  $        -
                            ==========  ==========  ==========  ==========
BASIC NET INCOME PER SHARE  $     0.63  $     0.44  $     3.57  $     2.10
                            ==========  ==========  ==========  ==========
DILUTED NET INCOME PER
 SHARE                      $     0.55  $     0.39  $     3.06  $     1.80
                            ==========  ==========  ==========  ==========
COMPREHENSIVE INCOME
 Net income                 $   19,695  $   12,990  $  111,087  $   58,405
 Foreign currency
  translation adjustment            96         816         649       1,137
                            ----------  ----------  ----------  ----------
NET COMPREHENSIVE INCOME    $   19,791  $   13,806  $  111,736  $   59,542
                            ==========  ==========  ==========  ==========
                                        Retail &
Three months ended    Manufacturing  Distribution   Eliminations     Total
------------------    -------------  ------------   ------------ ---------
      2005
   Net Sales           $ 293,573     $59,360         $(12,144)    $340,789
   Operating Results   $  17,823        $484           $2,366      $20,673
      2004
   Net Sales           $ 257,272     $56,630         $(26,545)    $287,357
   Operating Results   $  17,349     $(1,332)         $(1,160)     $14,857

Twelve months ended
------------------
      2005
   Net Sales          $1,071,357    $245,292        $(102,938)  $1,213,711
   Operating Results     $75,385      $2,827           $1,782      $79,994
      2004
   Net Sales           $ 913,678    $237,078        $(109,660)  $1,041,096
   Operating Results    $ 73,472     $(2,879)         $(1,810)     $68,783

                                   Three Months Ended   Twelve Months Ended
                                      December 31,          December 31,
                                      -----------           -----------
                                    2005      2004       2005        2004
                                 --------   --------   --------   --------
Basic net income per share:
  Net income                     $ 19,695   $ 12,990   $111,087   $ 58,405
                                 ========   ========   ========   ========
  Weighted average common
   shares outstanding              31,194     29,527     31,139     27,748
                                 ========   ========   ========   ========
  Basic net income per share     $   0.63   $   0.44   $   3.57   $   2.10
                                 ========   ========   ========   ========

Diluted net income per share:
  Net income                     $ 19,695   $ 12,990   $111,087   $ 58,405
  After-tax equivalent of
   interest on convertible notes    1,235      1,210      4,914      4,828
                                 --------   --------   --------   --------
  Diluted net income             $ 20,930   $ 14,200   $116,001   $ 63,233
                                 ========   ========   ========   ========

  Weighted average common
   shares outstanding              31,194     29,527     31,139     27,748
  Dilutive stock options/shares       165        720        276        832
  Convertible notes equivalent
   shares                           6,563      6,510      6,542      6,510
                                 --------   --------   --------   --------
  Diluted weighted average
   common shares outstanding       37,922     36,757     37,957     35,090
                                 ========   ========   ========   ========
  Diluted net income per share   $   0.55   $   0.39   $   3.06   $   1.80
                                 ========   ========   ========   ========
                       WABASH NATIONAL CORPORATION
                       CONSOLIDATED BALANCE SHEETS
                            (in thousands)
                              (Unaudited)
                                            December 31,    December 31,
                                               2005             2004
                                            ----------       ----------

                          ASSETS
                          ------
CURRENT ASSETS:
    Cash and cash equivalents               $   67,437       $   41,928
    Accounts receivable, net                   131,241           87,512
    Current portion of finance contracts         1,472            2,185
    Inventories                                108,044           94,600
    Deferred income taxes                       40,550                -
    Prepaid expenses and other                   7,855           14,425
                                            ----------       ----------
       Total current assets                    356,599          240,650

PROPERTY, PLANT AND EQUIPMENT, net             131,561          124,701

EQUIPMENT LEASED TO OTHERS, net                  7,646           14,030

FINANCE CONTRACTS, net of current portion           32            3,319

GOODWILL                                        33,018           34,511

DEFERRED INCOME TAXES                            3,050                -

OTHER ASSETS                                    16,747           14,835
                                            ----------       ----------
                                            $  548,653       $  432,046
                                            ==========       ==========

           LIABILITIES AND STOCKHOLDERS' EQUITY
           ------------------------------------
CURRENT LIABILITIES:
    Accounts payable                        $   84,147       $   78,107
    Current maturities of long-term debt           500            2,000
    Other accrued liabilities                   58,751           52,442
                                            ----------       ----------
       Total current liabilities               143,398          132,549

LONG-TERM DEBT, net of current maturities      125,000          125,500

OTHER NONCURRENT LIABILITIES AND CONTINGENCIES   1,553            9,423

STOCKHOLDERS' EQUITY                           278,702          164,574
                                            ----------       ----------
                                            $  548,653       $  432,046
                                            ==========       ==========

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

                                                Years Ended December 31,
                                               --------------------------
                                                   2005          2004
                                               ------------  ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                   $    111,087  $     58,405
  Adjustments to reconcile net income to net
   cash provided by operating activities:
     Depreciation and amortization                   15,547        19,441
     Net loss (gain) on the sale of assets              344        (2,089)
     Deferred income taxes                          (37,347)            -
     Cash used for restructuring activities               -        (3,007)
     Trailer valuation charges                          195           448
     Loss on debt extinguishments                         -           607
     Change in operating assets and
      liabilities:
        Accounts receivable                         (43,565)      (20,871)
        Finance contracts                             3,623         5,070
        Inventories                                 (13,899)       (8,485)
        Prepaid expenses and other                     (141)         (716)
        Accounts payable and accrued
         liabilities                                 12,395         5,081
        Other, net                                    2,261         3,040
                                               ------------  ------------
           Net cash provided by operating
            activities                               50,500        56,924
CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                              (30,880)      (15,495)
  Proceeds from the sale of property, plant and
   equipment                                         11,736         6,800
                                               ------------  ------------
           Net cash used in investing
            activities                              (19,144)       (8,695)
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from exercise of stock options             3,755         5,261
  Proceeds from issuance of common stock                  -        75,702
  Borrowings under revolving credit facilities       15,414       667,522
  Payments under revolving credit facilities        (15,414)     (727,879)
  Payments under long-term debt obligations          (2,000)      (39,459)
  Repurchase of common stock                         (3,366)            -
  Common stock dividends paid                        (4,236)            -
                                               ------------  ------------
           Net cash used in financing
            activities                               (5,847)      (18,853)
                                               ------------  ------------
NET INCREASE IN CASH AND CASH EQUIVALENTS            25,509        29,376
CASH AND CASH EQUIVALENTS AT BEGINNING OF
 PERIOD                                              41,928        12,552
                                               ------------  ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD     $     67,437  $     41,928
                                               ============  ============

Contact Information

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

    Investor Relations:
    (765) 771-5310