SOURCE: Wabash National Corporation

August 24, 2006 08:55 ET

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

LAFAYETTE, IN -- (MARKET WIRE) -- August 24, 2006 --Wabash National Corporation (NYSE: WNC) today announced results for the three and six month periods ended June 30, 2006. Net sales for the quarter were $333.6 million compared to $323.0 million for the same period last year. Net income for the quarter was $5.0 million or $0.15 diluted earnings per share, compared to $49 million or $1.33 per diluted share for the same period last year. For the six months ended June 30, 2006, net sales were $595.7 million compared to $579.1 million for 2005. Net income for the first six months of 2006 totaled $9.4 million or $0.29 per diluted share, compared to $67.7 million or $1.85 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. The acquisition of Transcraft, completed March 3, 2006, added $36 million and $38 million to second quarter and year to date sales, respectively.

Commenting on these results, Bill Greubel, Chairman and Chief Executive Officer, stated, "The challenges of bringing on-stream our new ERP system had an adverse impact on second quarter sales and operating results. Considerable progress has been made in stabilizing the system and our operation; however, parts availability related to the materials planning issues will constrain van trailer production for the next several months and limit 2006 volume to approximately 55,000 van trailer units. We greatly appreciate the understanding and assistance of our customers and suppliers during this transition period.

"Quote and order activity for the quarter was in line with seasonal patterns and new account acquisition is meeting expectations. Progress continues on bringing alpha line production rates up to expectations in the fourth quarter. Transcraft's performance has been exceptional and they are on track for a great year."

Backlog at June 30, 2006 amounted to approximately $594 million.

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           Six Months
                                   Ended June 30,        Ended June 30,
                                --------------------  --------------------
                                  2006       2005       2006       2005
                                ---------  ---------  ---------  ---------

NET SALES                       $ 333,572  $ 322,983  $ 595,691  $ 579,088
COST OF SALES                     306,300    286,874    545,628    508,581
                                ---------  ---------  ---------  ---------
   Gross profit                    27,272     36,109     50,063     70,507
GENERAL AND ADMINISTRATIVE
 EXPENSES                          14,227     10,213     24,930     19,431
SELLING EXPENSES                    3,487      3,966      6,795      7,962
                                ---------  ---------  ---------  ---------
   Income from operations           9,558     21,930     18,338     43,114
OTHER INCOME (EXPENSE):
   Interest expense                (1,523)    (1,605)    (3,082)    (3,223)
   Foreign exchange gains and
    losses, net                       117       (310)         -       (452)
   Other, net                         185       (205)       242       (997)
                                ---------  ---------  ---------  ---------
   Income before income taxes       8,337     19,810     15,498     38,442
INCOME TAX (BENEFIT)  EXPENSE       3,290    (29,448)     6,114    (29,295)
                                ---------  ---------  ---------  ---------
   Net income                   $   5,047  $  49,258  $   9,384  $  67,737
                                =========  =========  =========  =========
COMMON STOCK DIVIDENDS          $   0.045  $   0.045  $    0.09  $    0.09
                                =========  =========  =========  =========
BASIC NET INCOME PER SHARE      $    0.16  $    1.58  $    0.30  $    2.18
                                =========  =========  =========  =========
DILUTED NET INCOME PER SHARE    $    0.15  $    1.33  $    0.29  $    1.85
                                =========  =========  =========  =========
COMPREHENSIVE INCOME
   Net income                   $   5,047  $  49,258  $   9,384  $  67,737
   Foreign currency translation
    adjustment                        665       (183)       757       (381)
                                ---------  ---------  ---------  ---------
NET COMPREHENSIVE INCOME        $   5,712  $  49,075  $  10,141  $  67,356
                                =========  =========  =========  =========




                                            Retail &
Three months ended June 30,     Manufactu- Distribut- Eliminat-
--------------------------         ring        ion       ions       Total
         2006                   ---------- ---------- ---------  ----------
   Net Sales                    $  291,543 $   48,019 $  (5,990) $  333,572
   Operating Results            $    7,031 $      724 $   1,803  $    9,558
         2005
   Net Sales                    $  288,014 $   61,367 $ (26,398) $  322,983
   Operating Results            $   20,927 $      869 $     134  $   21,930

Six months ended June 30,
         2006
   Net Sales                    $  533,517 $   93,388 $ (31,214) $  595,691
   Operating Results            $   17,624 $      909 $    (195) $   18,338
         2005
   Net Sales                    $  519,679 $  123,400 $ (63,991) $  579,088
   Operating Results            $   42,768 $    1,707 $  (1,361) $   43,114



                                       Three Months Ended  Six Months Ended
                                           June 30,            June 30,
                                       -----------------  -----------------
                                         2006     2005      2006     2005
                                       -------- --------  -------- --------
Basic net income per share:
   Net income applicable to common
    stockholders                       $  5,047 $ 49,258  $  9,384 $ 67,737
                                       ======== ========  ======== ========
   Weighted average common shares
    outstanding                          31,154   31,194    31,134   31,055
                                       ======== ========  ======== ========
   Basic net income per share          $   0.16 $   1.58  $   0.30 $   2.18
                                       ======== ========  ======== ========

Diluted net income per share:
   Net income applicable to common
    stockholders                       $  5,047 $ 49,258  $  9,384 $ 67,737
   After-tax equivalent of interest
    on convertible notes                    741    1,234     1,482    2,445
                                       -------- --------  -------- --------
   Diluted net income applicable to
    common stockholders                $  5,788 $ 50,492  $ 10,866 $ 70,182
                                       ======== ========  ======== ========

   Weighted average common shares
    outstanding                          31,154   31,194    31,134   31,055
   Dilutive stock options/shares            205      243       210      374
   Convertible notes equivalent shares    6,597    6,510     6,588    6,510
                                       -------- --------  -------- --------
   Diluted weighted average common
    shares outstanding                   37,956   37,947    37,932   37,939
                                       ======== ========  ======== ========
   Diluted net income per share        $   0.15 $   1.33  $   0.29 $   1.85
                                       ======== ========  ======== ========


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


                                                    June 30,   December 31,
                                                      2006         2005
                                                  ------------ ------------

                 ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                       $     17,284 $     67,437
  Accounts receivable, net                             127,550      131,641
  Current portion of finance contracts                     145        1,472
  Inventories                                          180,038      108,044
  Deferred income taxes                                 24,693       40,550
  Prepaid expenses and other                             5,641        7,425
                                                  ------------ ------------
     Total current assets                              355,351      356,599

PROPERTY, PLANT AND EQUIPMENT, net                     134,370      131,561

EQUIPMENT LEASED TO OTHERS, net                          6,663        7,646

DEFERRED INCOME TAXES                                   13,384        3,050

GOODWILL                                                77,593       33,018

INTANGIBLE ASSETS                                       37,758        2,116

OTHER ASSETS                                            18,328       14,663
                                                  ------------ ------------
                                                  $    643,447 $    548,653
                                                  ============ ============


          LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                                $    146,407 $     84,147
  Current maturities of long-term debt                       -          500
  Other accrued liabilities                             55,271       58,751
                                                  ------------ ------------
    Total current liabilities                          201,678      143,398

LONG-TERM DEBT, net of current maturities              140,923      125,000

DEFERRED INCOME TAXES                                   10,559            -

OTHER NONCURRENT LIABILITIES AND CONTINGENCIES           1,190        1,553

STOCKHOLDERS' EQUITY                                   289,097      278,702
                                                  ------------ ------------
                                                  $    643,447 $    548,653
                                                  ============ ============


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

                                                         Six Months
                                                       Ended June 30,
                                                  ------------------------
                                                      2006         2005
                                                  -----------  -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                      $     9,384  $    67,737
  Adjustments to reconcile net income to net cash
   provided by (used in) operating activities:
    Depreciation and amortization                      10,599        8,276
    Net (gain) loss on the sale of assets                 (15)         684
    Deferred income taxes                               5,319      (29,304)
    Excess tax benefits from stock-based
     compensation                                        (328)           -
    Stock-based compensation                            1,739          607
    Change in operating assets and liabilities:
      Accounts receivable                               9,053      (22,110)
      Finance contracts                                 1,365        1,645
      Inventories                                     (67,237)     (45,302)
      Prepaid expenses and other                        1,628        1,087
      Accounts payable and accrued liabilities         42,546       21,067
      Other, net                                        1,372          294
                                                  -----------  -----------
        Net cash provided by operating
         activities                                    15,425        4,681

CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                                (10,324)     (13,796)
  Acquisition, net of cash acquired                   (69,307)           -
  Proceeds from the sale of property, plant and
   equipment                                              434        5,852
                                                  -----------  -----------
        Net cash used in investing activities         (79,197)      (7,944)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from exercise of stock options                 678        3,610
  Excess tax benefits from stock-based
   compensation                                           328            -
  Borrowings under revolving credit facilities         73,606       15,786
  Payments under revolving credit facilities          (57,683)     (15,786)
  Payments under long-term debt agreements               (500)      (1,000)
  Common stock dividends paid                          (2,810)      (1,406)
                                                  -----------  -----------
        Net cash provided by (used in) financing
         activities                                    13,619        1,204
                                                  -----------  -----------

NET DECREASE IN CASH AND CASH EQUIVALENTS             (50,153)      (2,059)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD       67,437       41,928
                                                  -----------  -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD        $    17,284  $    39,869
                                                  ===========  ===========

Contact Information

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

    Investor Relations:
    (765) 771I-5310