SOURCE: Wabash National Corporation

February 12, 2007 17:11 ET

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

LAFAYETTE, IN -- (MARKET WIRE) -- February 12, 2007 -- Wabash National Corporation (NYSE: WNC) today announced results for the three and twelve month periods ended December 31, 2006. Net sales for the quarter were $354 million compared to $341 million for the same period last year. Net loss for the quarter was $5 million or $0.16 per diluted share, compared to net income of $20 million or $0.55 per diluted share for the year ago period. For the twelve months ended December 31, 2006, net sales were $1,312 million compared to $1,214 million for 2005. Net income for the twelve months of 2006 totaled $9 million or $0.30 per diluted share, compared to $111 million or $3.06 per diluted share for the prior year. Results in the 2006 quarter and year-to-date periods included a non-cash goodwill impairment charge in our retail business of $15 million and the reversal of a valuation allowance of deferred tax assets amounting to $5 million. Results in the 2005 quarter and year-to-date periods included reversals of a valuation allowance for deferred tax assets amounting to $1 million and $37 million, respectively.

Commenting, Dick Giromini, President and Chief Executive Officer, stated, "2006 was a year of transition and challenges. The organization was faced with continued commodity cost increases, competitive pricing pressures, the integration of an acquisition, implementation of an automated production line, and starting up an ERP system. While we have made significant progress, it is not yet reflected in our current operating results. We enter 2007 a more fundamentally sound organization that is well positioned to reap the rewards of our efforts."

"However, the weak freight environment in the latter part of 2006 has fleets approaching trailer purchases cautiously and we expect a slow start for 2007," Giromini added.

"Recent quote and order activity, while in line with seasonal patterns, was weaker than that of the prior year. The December 31, 2006 backlog amounts to $512 million, including $28 million for flatbeds, compared to $516 million at December 31, 2005. We continue to have great success in diversifying our customer base with over 550 new accounts closed in 2006."

Wabash National Corporation will conduct a conference call to review and discuss its fourth quarter results on Tuesday, February 13, 2007, at 9:00 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 8, 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
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands, except per share amounts)
                                (Unaudited)


                              Three Months             Twelve Months
                           Ended December 31,        Ended December 31,
                        ------------------------  ------------------------
                            2006         2005         2006         2005
                        -----------  -----------  -----------  -----------

NET SALES               $   354,199  $   340,789  $ 1,312,180  $ 1,213,711
COST OF SALES               325,882      306,866    1,207,687    1,079,196
                        -----------  -----------  -----------  -----------
  Gross profit               28,317       33,923      104,493      134,515
GENERAL AND ADMINISTRATIVE
 EXPENSES                    14,159        9,802       51,157       39,301
SELLING EXPENSES              4,624        3,448       15,070       15,220
IMPAIRMENT OF GOODWILL       15,373            -       15,373            -
                        -----------  -----------  -----------  -----------
  Income (Loss) from
   operations                (5,839)      20,673       22,893       79,994
OTHER INCOME (EXPENSE):
  Interest expense           (1,758)      (1,542)      (6,921)      (6,431)
  Foreign exchange gains
   and losses, net              (49)         (15)         (77)         231
  Other, net                    530         (716)         407          262
                        -----------  -----------  -----------  -----------
  Income (Loss) before
   income taxes              (7,116)      18,400       16,302       74,056
INCOME TAX (BENEFIT)
 EXPENSE                     (2,163)      (1,295)       6,882      (37,031)
                        -----------  -----------  -----------  -----------
  Net income (loss)     $    (4,953) $    19,695  $     9,420  $   111,087
                        ===========  ===========  ===========  ===========
COMMON STOCK DIVIDENDS
 DECLARED               $     0.045  $     0.045  $      0.18  $      0.18
                        ===========  ===========  ===========  ===========
BASIC NET INCOME (LOSS)
 PER SHARE              $     (0.16) $      0.63  $      0.30  $      3.57
                        ===========  ===========  ===========  ===========
DILUTED NET INCOME
 (LOSS) PER SHARE       $     (0.16) $      0.55  $      0.30  $      3.06
                        ===========  ===========  ===========  ===========
COMPREHENSIVE INCOME
 (LOSS)
  Net income (loss)     $    (4,953) $    19,695  $     9,420  $   111,087
  Foreign currency
   translation
   adjustment                  (226)          96          617          649
                        -----------  -----------  -----------  -----------
NET COMPREHENSIVE
 INCOME (LOSS)          $    (5,179) $    19,791  $    10,037  $   111,736
                        ===========  ===========  ===========  ===========



                                     Retail &
Three months ended  Manufacturing  Distribution  Eliminations     Total
------------------  -------------  ------------  ------------  -----------
           2006
           ----
  Net Sales         $     327,324  $     46,651  $    (19,776) $   354,199
  Income (Loss)
   from Operations  $       9,691  $    (15,579) $         49  $    (5,839)
           2005
           ----
  Net Sales         $     293,573  $     59,360  $    (12,144) $   340,789
  Income from
   Operations       $      17,823  $        484  $      2,366  $    20,673

Twelve months ended
-------------------
           2006
           ----
  Net Sales         $   1,197,683  $    191,463  $    (76,966) $ 1,312,180
  Income (Loss)
   from Operations  $      36,782  $    (13,487) $       (402) $    22,893
           2005
           ----
  Net Sales         $   1,071,357  $    245,292  $   (102,938) $ 1,213,711
  Income from
   Operations       $      75,385  $      2,827  $      1,782  $    79,994



                                    Three Months Ended  Twelve Months Ended
                                       December 31,        December 31,
                                    ------------------  -------------------
                                      2006      2005      2006      2005
                                    --------  --------- --------- ---------
Basic net income (loss) per share:
  Net income (loss) applicable to
   common stockholders              $ (4,953) $  19,695 $   9,420 $ 111,087
                                    ========  ========= ========= =========
  Weighted average common shares
   outstanding                        30,968     31,194    31,102    31,139
                                    ========  ========= ========= =========
  Basic net income (loss) per share $  (0.16) $    0.63 $    0.30 $    3.57
                                    ========  ========= ========= =========

Diluted net income per share:
  Net income applicable to common
   stockholders                               $  19,695 $   9,420 $ 111,087
  After-tax equivalent of interest
   on convertible notes                           1,235         -     4,914
                                              --------- --------- ---------
  Diluted net income applicable to
   common stockholders                        $  20,930 $   9,420 $ 116,001
                                              ========= ========= =========

  Weighted average common shares
   outstanding                                   31,194    31,102    31,139
  Dilutive stock options/shares                     165       189       276
  Convertible notes equivalent
   shares                                         6,563         -     6,542
                                              --------- --------- ---------
  Diluted weighted average common
   shares outstanding                            37,922    31,291    37,957
                                              ========= ========= =========
  Diluted net income (loss) per
   share                            $  (0.16) $    0.55 $    0.30 $    3.06
                                    ========  ========= ========= =========

Diluted per share amounts in the 2006 periods exclude the effect of the
convertible notes as it would be anti-dilutive.



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

                                              December 31,   December 31,
                                                  2006           2005
                                              -------------  -------------

                              ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                   $      29,885  $      67,437
  Accounts receivable, net                          110,462        131,671
  Inventories                                       133,133        108,044
  Deferred income taxes                              26,650         40,550
  Prepaid expenses and other                          4,088          8,897
                                              -------------  -------------
    Total current assets                            304,218        356,599

PROPERTY, PLANT AND EQUIPMENT, net                  129,325        131,561

EQUIPMENT LEASED TO OTHERS, net                       1,302          7,646

DEFERRED INCOME TAXES                                     -          3,050

GOODWILL                                             66,692         33,018

INTANGIBLE ASSETS                                    35,998          2,116

OTHER ASSETS                                         18,948         14,663
                                              -------------  -------------
                                              $     556,483  $     548,653
                                              =============  =============

         LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                            $      90,632  $      84,147
  Current maturities of long-term debt                    -            500
  Other accrued liabilities                          58,706         58,751
                                              -------------  -------------
    Total current liabilities                       149,338        143,398

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

DEFERRED INCOME TAXES                                 1,556              -

OTHER NONCURRENT LIABILITIES AND
 CONTINGENCIES                                        2,634          1,553

STOCKHOLDERS' EQUITY                                277,955        278,702
                                              -------------  -------------
                                              $     556,483  $     548,653
                                              =============  =============



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

                                                 Twelve Months Ended
                                                     December 31,
                                              -------------------------
                                                  2006          2005
                                              -----------   -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                  $     9,420   $   111,087
  Adjustments to reconcile net cash provided
   by operating activities:
    Depreciation and amortization                  20,598        15,547
    Net (gain) loss on the sale of assets            (796)          344
    Deferred income taxes                           7,744       (37,347)
    Excess tax benefits from exercised
     stock-based compensation                        (352)            -
    Stock-based compensation                        3,978         1,547
    Impairment of goodwill                         15,373             -
    Changes in operating assets and
     liabilities:
      Accounts receivable                          26,141       (43,565)
      Finance contracts                             1,497         3,623
      Inventories                                 (20,332)      (13,704)
      Prepaid expenses and other                    1,716          (141)
      Accounts payable and accrued liabilities    (15,649)       12,395
      Other, net                                    2,431           714
                                              -----------   -----------
        Net cash provided by operating
         activities                                51,769        50,500
CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                            (12,931)      (30,880)
  Acquisition, net of cash required               (69,307)            -
  Proceeds from the sale of property, plant
   and equipment                                    7,121        11,736
                                              -----------   -----------
        Net cash used in investing activities     (75,117)      (19,144)
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from exercise of stock options             762         3,755
  Excess tax benefits from stock-based
   compensation                                       352             -
  Borrowings under revolving credit
   facilities                                     243,313        15,414
  Payments under revolving credit facilities     (243,313)      (15,414)
  Payments under long-term debt obligations          (500)       (2,000)
  Repurchase of common stock                       (9,164)       (3,366)
  Common stock dividends paid                      (5,654)       (4,236)
                                              -----------   -----------
        Net cash used in financing activities     (14,204)       (5,847)
                                              -----------   -----------
NET (DECREASE) INCREASE IN CASH AND CASH
 EQUIVALENTS                                      (37,552)       25,509
CASH AND CASH EQUIVALENTS AT BEGINNING OF
 PERIOD                                            67,437        41,928
                                              -----------   -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD    $    29,885   $    67,437
                                              ===========   ===========

Contact Information

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

    Investor Relations:
    (765) 771-5310