SOURCE: Wabash National Corporation

July 20, 2005 17:37 ET

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

LAFAYETTE, IN -- (MARKET WIRE) -- July 20, 2005 -- Wabash National Corporation (NYSE: WNC) today announced results for the three and six month periods ended June 30, 2005. Net sales for the quarter were $323 million compared to $255 million for the same period last year. Net income for the quarter was $49 million or $1.33 diluted earnings per share, compared to $18 million or $0.56 per diluted share for the same period last year. For the six months ended June 30, 2005, net sales were $579 million compared to $476 million for 2004. Net income for the first six months of 2005 totaled $68 million or $1.85 per diluted share, compared to $25 million or $0.80 per diluted share last year. Included in the results for the 2005 second quarter and year-to-date periods was a reversal of a valuation allowance for deferred tax assets amounting to $29 million or $0.77 per diluted share.

Commenting on the quarter, Bill Greubel, President and Chief Executive Officer, stated: "Against historic norms, we had a great quarter. Units shipped were at record levels, our customer base continues to grow substantially, and our retail side of the business was profitable for the second straight quarter. That said, we missed on some key operating metrics due in part due to the cancellation of a 2,000 unit order, which was to be produced in June and caused scheduling challenges. Additionally, we encountered production delays due to associate turnover and a sharper focus on quality. These issues created increased manufacturing cycle times and high levels of rework which reduced shippable units and compressed margins. Corrective actions initiated in June will continue in the third quarter. It's been a painful process but we're going to be a lot better off for this effort going forward."

"Quote and order activity moderated during the quarter, in line with seasonal patterns. We expect to continue to grow our customer base through the year. However, given the large size of the cancellation taken in the quarter and our continuing efforts on the plant floor, our expectation for trailer shipments in 2005 is approximately 58,000 units versus our goal of 60,000 units. Currently, we have booked orders for approximately 90% of the 58,000 units."

Backlog at June 30, 2005 amounted to approximately $380 million vs. $500 million at March 31, 2005, reflecting the normal cycle of order placement and production.

Wabash will conduct a conference call to review and discuss its second quarter financial results on Thursday, July 21, 2005, at 10:00 a.m. Eastern time. The phone number to access the conference call is 877-407-8035. The call can also be accessed live on the Company's Internet website at http://www.wabashnational.com. For those unable to participate in the live webcast, the call will be archived at http://www.wabashnational.com within three hours of the conclusion of the live call and will remain available through August 11, 2005.

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 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            Six Months
                                    Ended June 30,        Ended June 30,
                                    2005      2004       2005       2004
                                    ----      ----       ----       ----

NET SALES                        $322,983   $254,899   $579,088   $476,496
COST OF SALES                     286,874    218,264    508,581    416,739
                                 --------   --------   --------   --------
  Gross profit                     36,109     36,635     70,507     59,757
GENERAL AND ADMINISTRATIVE
 EXPENSES                          10,213     10,309     19,431     20,782
SELLING EXPENSES                    3,966      3,851      7,962      7,626
                                 --------   --------   --------   --------
  Income from operations           21,930     22,475     43,114     31,349
OTHER INCOME (EXPENSE):
  Interest expense                 (1,605)    (2,769)    (3,223)    (5,666)
  Foreign exchange gains
   and losses, net                   (310)      (405)      (452)      (545)
  Other, net                         (205)      (540)      (997)       482
                                 --------   --------   --------   --------
  Income before income taxes       19,810     18,761     38,442     25,620
INCOME TAX (BENEFIT) EXPENSE      (29,448)       499    (29,295)       499
                                 --------   --------   --------   --------
   Net income                    $ 49,258   $ 18,262   $ 67,737   $ 25,121
                                 ========   ========   ========   ========
COMMON STOCK DIVIDENDS           $  0.045   $      -   $   0.09   $      -
                                 ========   ========   ========   ========
BASIC NET INCOME PER SHARE       $   1.58   $   0.67   $   2.18   $   0.93
                                 ========   ========   ========   ========
DILUTED NET INCOME PER SHARE     $   1.33   $   0.56   $   1.85   $   0.80
                                 ========   ========   ========   ========
COMPREHENSIVE INCOME
  Net income                     $ 49,258   $ 18,262   $ 67,737   $ 25,121
  Foreign currency
   translation adjustment            (183)      (593)      (381)      (822)
                                 --------   --------   --------   --------
NET COMPREHENSIVE INCOME         $ 49,075   $ 17,669   $ 67,356   $ 24,299
                                 ========   ========   ========   ========


Three months ended  Manufacturing  Retail &      Eliminations     Total
                                   Distribution
     2005
 Net Sales          $ 288,014      $  61,367      $ (26,398)    $ 322,983
 Operating Results  $  20,927      $     869            134     $  21,930
     2004
 Net Sales          $ 227,839      $  61,185      $ (34,125)    $ 254,899
 Operating Results  $  24,933      $    (141)     $  (2,317)    $  22,475

Six months ended
     2005
 Net Sales          $ 519,679      $ 123,400      $  (63,991)   $ 579,088
 Operating Results  $  42,768      $   1,707      $   (1,361)   $  43,114
     2004
 Net Sales          $ 416,035      $ 118,727      $  (58,266)   $ 476,496
 Operating Results  $  35,705      $  (2,056)     $   (2,300)   $  31,349


                                     Three Months Ended   Six Months Ended
                                          June 30,            June 30,
                                       2005      2004      2005      2004
                                       ----      ----      ----      ----
Basic net income per share:
 Net income applicable
  to common stockholders             $49,258   $18,262   $67,737   $25,121
                                     =======   =======   =======   =======
 Weighted average common
  shares outstanding                  31,194    27,145    31,055    27,067
                                     =======   =======   =======   =======
 Basic net income per share          $  1.58   $  0.67   $  2.18   $  0.93
                                     =======   =======   =======   =======

Diluted net income per share:
 Net income applicable to
  common stockholders                $49,258   $18,262   $67,737   $25,121
 After-tax equivalent of interest
  on convertible notes                 1,234     1,204     2,445     2,408
                                     -------   -------   -------   -------
 Diluted net income applicable to
  common stockholders                $50,492   $19,466   $70,182   $27,529
                                     =======   =======   =======   =======

 Weighted average common shares
  outstanding                         31,194    27,145    31,055    27,067
 Dilutive stock options/shares           243       906       375       946
 Convertible notes equivalent shares   6,510     6,510     6,510     6,510
                                     -------   -------   -------   -------
 Diluted weighted average common
  shares outstanding                  37,947    34,561    37,940    34,523
                                     =======   =======   =======   =======
 Diluted net income per share        $  1.33   $  0.56   $  1.85   $  0.80
                                     =======   =======   =======   =======


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

                                              June 30,       December 31,
                                                2005            2004
                                              --------        --------

                          ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                   $ 39,869        $ 41,928
  Accounts receivable, net                     109,674          87,512
  Current portion of finance contracts           2,196           2,185
  Inventories                                  139,954          94,600
  Deferred income taxes                          8,253               -
  Prepaid expenses and other                     7,961          14,425
                                              --------        --------
    Total current assets                       307,907         240,650

PROPERTY, PLANT AND EQUIPMENT, net             125,443         124,701

EQUIPMENT LEASED TO OTHERS, net                  9,892          14,030

FINANCE CONTRACTS, net of current portion        1,549           3,319

GOODWILL                                        34,193          34,511

DEFERRED INCOME TAXES                           27,289               -

OTHER ASSETS                                    18,894          14,835
                                              --------        --------
                                              $525,167        $432,046
                                              ========        ========

        LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Current maturities of long-term debt       $   1,500        $  2,000
  Accounts payable                             102,434          78,107
  Other accrued liabilities                     47,305          52,442
                                              --------        --------
    Total current liabilities                  151,239         132,549

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

OTHER NONCURRENT LIABILITIES
 AND CONTINGENCIES                               9,128           9,423

STOCKHOLDERS' EQUITY                           239,800         164,574
                                              --------        --------
                                              $525,167        $432,046
                                              ========        ========


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

                                                    Six Months
                                                   Ended June 30,
                                               2005             2004
                                            ----------      ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                $   67,737      $   25,121
  Adjustments to reconcile net income
   to net cash provided by (used in)
   operating activities:
    Depreciation and amortization                8,276           9,895
    Net (gain) loss on the sale of assets          684            (473)
    Recovery of losses on accounts
     receivable and finance contracts              (84)           (134)
    Deferred income taxes                      (29,304)              -
    Trailer valuation charges                      103             169
    Change in operating assets
     and liabilities:
      Accounts receivable                      (22,078)        (27,975)
      Finance contracts                          1,645           2,204
      Inventories                              (45,405)        (20,530)
      Prepaid expenses and other                 1,139             374
      Accounts payable and accrued
       liabilities                              21,067          17,714
      Other, net                                   901             (91)
                                            ----------      ----------
        Net cash provided by operating
         activities                              4,681           6,274
CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                         (13,796)         (3,936)
  Proceeds from the sale of property,
   plant and equipment                           5,852           2,104
                                            ----------      ----------
        Net cash used in investing
         activities                             (7,944)         (1,832)
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from exercise of stock options        3,610           3,163
  Borrowings under revolving credit
   facilities                                   15,786         331,975
  Payments under revolving credit
   facilities                                  (15,786)       (341,399)
  Payments under long-term debt
   agreements                                   (1,000)         (5,088)
  Common stock dividends paid                   (1,406)              -
                                            ----------      ----------
        Net cash provided by (used in)
         financing activities                    1,204         (11,349)
                                            ----------      ----------
NET DECREASE IN CASH AND CASH
 EQUIVALENTS                                    (2,059)         (6,907)
CASH AND CASH EQUIVALENTS AT
 BEGINNING OF PERIOD                            41,928          12,552
                                            ----------      ----------
CASH AND CASH EQUIVALENTS AT
 END OF PERIOD                              $   39,869      $    5,645
                                            ----------      ----------

Contact Information

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

    Investor Relations:
    (765) 771-5310