SOURCE: Wabash National Corporation

Wabash National Corporation

August 05, 2009 17:19 ET

Wabash National Corporation Announces Second Quarter Results

LAFAYETTE, IN--(Marketwire - August 5, 2009) - Wabash National Corporation (NYSE: WNC) reported a net loss of $17.9 million, or $0.59 per diluted share, for the second quarter of 2009 on net sales of $86 million. For the same quarter last year, the Company reported a net loss of $3.2 million, or $0.11 per diluted share. Second quarter new trailer sales totaled 3,200 units, which represents a 60% decline from the prior year period.

Dick Giromini, President and Chief Executive Officer, stated, "Following the quarter end, as previously announced, we completed the steps to strengthen our balance sheet and liquidity position, which provides us with additional financial flexibility to navigate the current environment. In addition, we reported a significantly reduced operating loss this quarter as compared to the prior two quarters despite the continuing depressed level of trailer demand, reflecting the flow through benefit of our cost reduction efforts. While we will continue to prudently manage the business in the near term, we remain committed to our long-term transformation initiatives and are now well-positioned for profitable growth as the economy recovers."

Sequential Improvement in Operating Results

Operating results for the 2009 second quarter were substantially improved compared to the results for the prior two quarters in spite of continued depressed demand for new trailers. Operating losses amounted to $16.7 million, $27.3 million and $87.2 million (including a goodwill impairment charge of $66.3 million) for the quarters ended June 30, 2009, March 31, 2009 and December 31, 2008, respectively. Contributors to this improvement include:

--  reductions in raw material and component costs, excluding the impact
    of unfavorable aluminum contracts,
--  cost reduction initiatives that include base pay reductions for all
    associates as well as salaried headcount reductions of approximately 130
    associates, and
--  substantial reductions in the manufacturing footprint through
    completion of the Lafayette Transformation project.
    

Securities Purchase Agreement and Amended Revolving Credit Facility

On August 3, 2009, the Company announced that Trailer Investments, LLC, an entity formed for this purpose by Lincolnshire Equity Fund III, L.P., a private equity investment fund managed by Lincolnshire Management, Inc., had invested $35 million in the Company. For its investment Trailer Investments received preferred stock and a warrant that is immediately exercisable at $0.01 per share for 24,762,636 newly issued shares of common stock representing 44.21% of the issued and outstanding common stock of the Company. Wabash National received cash, net of fees and expenses paid, of $33 million and will use the proceeds to reduce borrowings and for general corporate purposes.

Concurrently, the Company entered into an Amended and Restated Loan and Security Agreement, which amends and restates the Company's current revolving credit facility. The revolving credit facility, as amended, provides for borrowings of up to $100 million, subject to a borrowing base and applicable reserves. Additionally, the lenders have agreed to waive specified defaults previously incurred by the Company. As a result of the Securities Purchase Agreement and the Amended Revolving Credit Facility, the Company's liquidity, define as cash on hand and available borrowing capacity, on August 3, 2009, the date of closing, was approximately $42 million.

Second Quarter 2009 Conference Call

Wabash National Corporation will conduct a conference call to review and discuss its second quarter results on August 6, 2009, 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 October 29, 2009.

About Wabash National Corporation

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, dump trailers, truck bodies and intermodal equipment. Its innovative core products are sold under the DuraPlate®, ArcticLite®, FreightPro™, Eagle®, and BensonTM brand names. The company operates two wholly owned subsidiaries: Transcraft® Corporation, a manufacturer of flatbed, drop deck. dump trailers and truck bodies; and Wabash National Trailer Centers, trailer service centers and retail distributors of new and used trailers and aftermarket parts throughout the U.S.

Safe Harbor Statement

This press release contains certain forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements convey the Company's current expectations or forecasts of future events. All statements contained in this press release other than statements of historical fact are forward-looking statements. These forward-looking statements include, among other things, the sufficiency of the Company's capital structure, the needs of the Company in the future and whether profitability can be achieved. These and the Company's other forward-looking statements are 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 the current contraction in demand for transportation equipment associated with current economic conditions, increased competition, reliance on certain customers and corporate partnerships, risks of customer pick-up delays, shortages and costs of raw materials, risks in implementing and sustaining improvements in our manufacturing capacity and cost containment, uncertainty in the outcome of our discussions with lenders, and dependence on industry trends. Readers should review and consider the various disclosures made by the Company in this press release and in the Company's reports to its stockholders and periodic reports on Forms 10-K and 10-Q.



                        WABASH NATIONAL CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (Dollars in thousands, except per share amounts)
                                (Unaudited)


                Three Months Ended June 30,     Six Months Ended June 30,
                ----------------------------  ----------------------------
                    2009           2008           2009           2008
                -------------  -------------  -------------  -------------

NET SALES       $      86,206  $     201,484  $     164,143  $     362,545
COST OF SALES          91,437        190,711        184,850        345,867
                -------------  -------------  -------------  -------------
  Gross profit         (5,231)        10,773        (20,707)        16,678
GENERAL AND
 ADMINISTRATIVE
 EXPENSES               8,515         10,457         17,173         21,956
SELLING
 EXPENSES               2,918          3,326          6,103          6,769
                -------------  -------------  -------------  -------------
  Loss from
   operations         (16,664)        (3,010)       (43,983)       (12,047)
OTHER INCOME
 (EXPENSE)
  Interest
   expense             (1,306)        (1,021)        (2,311)        (2,195)
  Gain on debt
   extinguishment           -             27              -            151
  Other, net               34           (209)            89           (202)
                -------------  -------------  -------------  -------------
  Loss before
   income taxes       (17,936)        (4,213)       (46,205)       (14,293)
INCOME TAX
 (BENEFIT)
 EXPENSE                   (1)        (1,010)            14         (4,703)
                -------------  -------------  -------------  -------------
NET LOSS        $     (17,935) $      (3,203) $     (46,219) $      (9,590)
                =============  =============  =============  =============
COMMON STOCK
 DIVIDENDS
 DECLARED       $           -  $       0.045  $           -  $       0.090
                =============  =============  =============  =============
BASIC NET LOSS
 PER SHARE      $       (0.59) $       (0.11) $       (1.53) $       (0.32)
                =============  =============  =============  =============
DILUTED NET
 LOSS PER SHARE $       (0.59) $       (0.11) $       (1.53) $       (0.32)
                =============  =============  =============  =============
COMPREHENSIVE
 LOSS
  Net loss      $     (17,935) $      (3,203) $     (46,219) $      (9,590)
  Reclassification
   adjustment for
   interest rate
   swaps included
   in net income          231              -            231              -
  Changes in
   fair value
   of
   derivatives
   (net of tax)             -              -            118              -
                -------------  -------------  -------------  -------------
NET
 COMPREHENSIVE
 LOSS           $     (17,704) $      (3,203) $     (45,870) $      (9,590)
                =============  =============  =============  =============



Three months                      Retail &
 ended June 30, Manufacturing   Distribution   Eliminations      Total
  2009          -------------  -------------  -------------  -------------

Net sales       $      70,887  $      18,199  $      (2,880) $      86,206
(Loss) Income
 from
 operations     $     (15,440) $      (1,308) $          84  $     (16,664)
New trailers
 shipped                3,100            200           (100)         3,200

  2008
Net sales       $     176,118  $      40,829  $     (15,463) $     201,484
(Loss) Income
 from
 operations     $      (2,910) $        (383) $         283  $      (3,010)
New trailers
 shipped                7,900            800           (700)         8,000

Six months
 ended June 30,
  2009
Net sales       $     131,525  $      38,882  $      (6,264) $     164,143
(Loss) Income
 from
 operations     $     (39,829) $      (4,289) $         135  $     (43,983)
New trailers
 shipped                5,800            300           (200)         5,900

  2008
Net sales       $     318,381  $      69,214  $     (25,050) $     362,545
(Loss) Income
 from
 operations     $     (11,392) $      (1,386) $         731  $     (12,047)
New trailers
 shipped               14,300          1,200         (1,200)        14,300




                                 Three Months Ended     Six Months Ended
                                      June 30,              June 30,
                                --------------------  --------------------
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Basic net loss per share
    Net loss applicable to
     common stockholders        $ (17,935) $  (3,203) $ (46,219) $  (9,590)
    Dividends paid on unvested
     restricted shares                  -        (36)         -        (66)
                                ---------  ---------  ---------  ---------
    Net loss applicable to
     common stockholders
     excluding amounts
     applicable to unvested
     restricted shares          $ (17,935) $  (3,239) $ (46,219) $  (9,656)
                                =========  =========  =========  =========

    Weighted average common
     shares outstanding            30,198     29,927     30,127     29,903
                                =========  =========  =========  =========
    Basic net loss per share    $   (0.59) $   (0.11) $   (1.53) $   (0.32)
                                =========  =========  =========  =========

Diluted net loss per share
    Net loss applicable to
     common stockholders        $ (17,935) $  (3,203) $ (46,219) $  (9,590)

    After-tax equivalent of
     interest on convertible
     notes                              -          -          -          -
                                ---------  ---------  ---------  ---------
    Diluted net loss applicable
     to common stockholders     $ (17,935) $  (3,203) $ (46,219) $  (9,590)
                                =========  =========  =========  =========
    Weighted average common
     shares outstanding            30,198     29,927     30,127     29,903
    Dilutive stock
     options/shares                     -          -          -          -
    Convertible notes
     equivalent shares                  -          -          -          -
                                ---------  ---------  ---------  ---------
    Diluted weighted average
     common shares outstanding     30,198     29,927     30,127     29,903
                                =========  =========  =========  =========
    Diluted net loss per share  $   (0.59) $   (0.11) $   (1.53) $   (0.32)
                                =========  =========  =========  =========


  Average diluted shares outstanding for the three and six month periods
   ending June 30, 2008 exclude the antidilutive effects of the Company's
   Senior Convertible Notes (Convertible Notes) due August 1, 2008.  For
   the three and six month periods ending June 30, 2008, the after-tax
   equivalent of interest on Convertible Notes was $0.2 million and $0.7
   million, respectively, and the Convertible Notes equivalent shares were
   1.6 million and 3.2 million, respectively.  Diluted shares outstanding
   for the three and six month periods ending June 30, 2009 and 2008
   exclude the antidilutive effects of potentially dilutive stock options
   and restricted stock totaling less than 0.1 million shares of common
   stock in both 2009 periods and 0.1 million shares of common stock in
   the 2008 periods.

  For the three month periods ending June 30, 2009 and 2008, the
   computation of diluted earnings per share excludes options to purchase
   2.2 million and 1.5 million shares of common stock, respectively,
   because the impact of these shares would have been antidilutive.  For
   the six month periods ending June 30, 2009 and 2008, the computation of
   diluted earnings per share excludes options to purchase 2.2 million and
   1.7 million shares of common stock, respectively, because the impact of
   these shares would have been antidilutive.




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



                                                  June 30,   December 31,
                                                    2009         2008
                                                ------------ --------------
                                                (Unaudited)
                    ASSETS
CURRENT ASSETS
  Cash and cash equivalents                     $      6,737 $       29,766
  Accounts receivable, net                            17,994         37,925
  Inventories                                         67,720         92,896
  Prepaid expenses and other                           3,670          5,307
                                                ------------ --------------
    Total current assets                              96,121        165,894

PROPERTY, PLANT AND EQUIPMENT, net                   115,789        122,035

INTANGIBLE ASSETS                                     27,509         29,089

OTHER ASSETS                                          13,699         14,956
                                                ------------ --------------
                                                $    253,118 $      331,974
                                                ============ ==============

      LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
  Current portion of long-term debt             $          - $       80,008
  Current portion of capital lease obligation            337            337
  Accounts payable                                    33,744         42,798
  Other accrued liabilities                           38,613         45,449
                                                ------------ --------------
    Total current liabilities                         72,694        168,592

LONG-TERM DEBT                                        62,331              -

CAPITAL LEASE OBLIGATION                               4,637          4,803

OTHER NONCURRENT LIABILITIES AND CONTINGENCIES         3,508          5,142

STOCKHOLDERS' EQUITY                                 109,948        153,437
                                                ------------ --------------
                                                $    253,118 $      331,974
                                                ============ ==============




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


                                                        Six Months Ended
                                                            June 30,
                                                      --------------------
                                                        2009       2008
                                                      ---------  ---------
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                            $ (46,219) $  (9,590)
  Adjustments to reconcile net loss to net cash (used
   in) provided by operating activities
    Depreciation and amortization                         9,600     10,381
    Net (gain) loss on the sale of assets                    (7)       315
    Gain on debt extinguishment                               -       (151)
    Deferred income taxes                                     -     (4,484)
    Excess tax benefits from stock-based compensation         -         (5)
    Stock-based compensation                              2,138      2,170
    Changes in operating assets and liabilities
      Accounts receivable                                19,931     19,743
      Inventories                                        25,176    (20,139)
      Prepaid expenses and other                          1,637      1,452
      Accounts payable and accrued liabilities          (16,373)    17,005
      Other, net                                            135        (61)
                                                      ---------  ---------
        Net cash (used in) provided by operating
         activities                                      (3,982)    16,636

CASH FLOWS FROM INVESTING ACTIVITIES
  Capital expenditures                                     (628)    (3,746)
  Proceeds from the sale of property, plant and
   equipment                                                  7         47
                                                      ---------  ---------
        Net cash used in investing activities              (621)    (3,699)

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from exercise of stock options                     -         81
  Excess tax benefits from stock-based compensation           -          5
  Borrowings under revolving credit facilities           86,118     82,184
  Payments under revolving credit facilities           (103,795)   (28,184)
  Payments under long-term debt obligations                   -    (77,726)
  Principal payments under capital lease obligation        (166)         -
  Debt issuance costs paid                                 (583)         -
  Common stock dividends paid                                 -     (2,744)
                                                      ---------  ---------
        Net cash used in financing activities           (18,426)   (26,384)
                                                      ---------  ---------

NET DECREASE IN CASH AND CASH EQUIVALENTS               (23,029)   (13,447)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD         29,766     41,224
                                                      ---------  ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD            $   6,737  $  27,777
                                                      =========  =========


Contact Information

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

    Investor Relations:
    (765) 771-5310