SOURCE: Wabash National Corporation

November 09, 2006 16:15 ET

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

LAFAYETTE, IN -- (MARKET WIRE) -- November 9, 2006 -- Wabash National Corporation (NYSE: WNC) today announced results for the three and nine month periods ended September 30, 2006. Net sales for the quarter were $362 million compared to $294 million for the same period last year. Net income for the quarter was $5 million or $0.15 per diluted share, compared to $24 million or $0.66 per diluted share for the year ago period. For the nine months ended September 30, 2006, net sales were $958 million compared to $873 million for 2005. Net income for the nine months of 2006 totaled $14 million or $0.44 per diluted share, compared to $91 million or $2.50 per diluted share for 2005. Results in the 2005 quarter and year-to-date periods included reversals of a valuation allowance for deferred tax assets amounting to $6 million or $0.17 per diluted share and $36 million or $0.94 per diluted share, respectively.

Commenting on the quarter, Bill Greubel, Chairman and Chief Executive Officer, stated, "Van trailer shipments of 15,200 units were right in line with our expectations. However, as anticipated, results were adversely affected by the tailing effect of bringing our ERP system on-line. The majority of trailers shipped in the quarter were manufactured in June, July and August while we were combating the worst of the material shortages and consequent line outages. Operationally, we have made significant progress as process yield, hours per start, schedule attainment, and other key measures of performance have all exceeded pre-implementation levels. The number of trailers that had been built, but due to parts shortages, could not be completed and shipped was reduced from approximately 1,200 units as of June 30, 2006, to approximately 400 units as of September 30, 2006.

"Quote and order activity during the quarter, while in line with seasonal patterns, was weaker than that of the prior year, in part reflecting a weak freight environment. A backlog of $558 million is a decline of $36 million from June 30, 2006. We continue to have great success in growing our customer base with over 350 new accounts closed through the first nine months of 2006. We intend to manage production, inventory, and shipments throughout the quarter to achieve our target of 55,000 van trailer units for the year."

Wabash National Corporation will conduct a conference call to review and discuss its third quarter results on Monday, November 13, 2006, at 11:00 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 February 5, 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
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands, except per share amounts)
                                (Unaudited)

                                    Three Months          Nine Months
                                Ended September 30,   Ended September 30,
                                --------------------  --------------------
                                  2006       2005       2006       2005
                                ---------  ---------  ---------  ---------

NET SALES                       $ 362,290  $ 293,834  $ 957,981  $ 872,922
COST OF SALES                     336,177    263,749    881,805    772,330
                                ---------  ---------  ---------  ---------
    Gross profit                   26,113     30,085     76,176    100,592
GENERAL AND ADMINISTRATIVE
 EXPENSES                          12,068     10,068     36,998     29,499
SELLING EXPENSES                    3,651      3,810     10,446     11,772
                                ---------  ---------  ---------  ---------
    Income from operations         10,394     16,207     28,732     59,321
OTHER INCOME (EXPENSE):
    Interest expense               (2,081)    (1,666)    (5,163)    (4,889)
    Foreign exchange gains and
     losses, net                      (28)       698        (28)       246
    Other, net                       (365)     1,975       (123)       978
                                ---------  ---------  ---------  ---------
    Income before income taxes      7,920     17,214     23,418     55,656
INCOME TAX EXPENSE (BENEFIT)        2,931     (6,441)     9,045    (35,736)
                                ---------  ---------  ---------  ---------
NET INCOME                      $   4,989  $  23,655  $  14,373  $  91,392
                                =========  =========  =========  =========
COMMON STOCK DIVIDENDS DECLARED $   0.045  $   0.045  $   0.135  $   0.135
                                =========  =========  =========  =========
BASIC NET INCOME PER SHARE      $    0.16  $    0.76  $    0.46  $    2.94
                                =========  =========  =========  =========
DILUTED NET INCOME PER SHARE    $    0.15  $    0.66  $    0.44  $    2.50
                                =========  =========  =========  =========
COMPREHENSIVE INCOME
    Net income                  $   4,989  $  23,655  $  14,373  $  91,392
    Foreign currency translation
     adjustment                        86        934        843        553
                                ---------  ---------  ---------  ---------
NET COMPREHENSIVE INCOME        $   5,075  $  24,589  $  15,216  $  91,945
                                =========  =========  =========  =========





                                      Retail and               Consolidated
Three Months Ended     Manufacturing Distribution  Eliminations   Totals
------------------     ------------- ------------  ------------ -----------
              2006
              ----
   Net Sales             $   336,842  $    51,424  $  (25,976)  $   362,290
   Income (Loss) from
    Operations           $     9,467  $     1,183  $     (256)  $    10,394
              2005
              ----
   Net Sales             $   258,105  $    62,532  $  (26,803)  $   293,834
   Income from
    Operations           $    14,794  $       636  $      777   $    16,207

Nine Months Ended
-----------------
              2006
              ----
   Net Sales             $   870,359  $   144,812  $  (57,190)  $   957,981
   Income (Loss) from
    Operations           $    27,091  $     2,092  $     (451)  $    28,732
              2005
              ----
   Net Sales             $   777,784  $   185,932  $  (90,794)  $   872,922
   Income (Loss) from
    Operations           $    57,562  $     2,343  $     (584)  $    59,321




                                       Three Months Ended Nine Months Ended
                                          September 30,     September 30,
                                       ------------------ -----------------
                                          2006     2005     2006     2005
                                        -------- -------- -------- --------
Basic net income per share:
   Net income applicable to common
    stockholders                        $  4,989 $ 23,655 $ 14,373 $ 91,392
                                        ======== ======== ======== ========
   Weighted average common shares
    outstanding                           31,174   31,249   31,148   31,121
                                        ======== ======== ======== ========
   Basic net income per share           $   0.16 $   0.76 $   0.46 $   2.94
                                        ======== ======== ======== ========

Diluted net income per share:
   Net income applicable to common
    stockholders                        $  4,989 $ 23,655 $ 14,373 $ 91,392
   After-tax equivalent of interest on
    convertible notes                        741    1,234    2,222    3,679
                                        -------- -------- -------- --------
   Diluted net income applicable to
    common stockholders                 $  5,730 $ 24,889 $ 16,595 $ 95,071
                                        ======== ======== ======== ========

   Weighted average common shares
    outstanding                           31,174   31,249   31,148   31,121
   Dilutive stock options/shares             154      196      191      314
   Convertible notes equivalent shares     6,619    6,548    6,598    6,534
                                        -------- -------- -------- --------
   Diluted weighted average common
    shares outstanding                    37,947   37,993   37,937   37,969
                                        ======== ======== ======== ========
   Diluted net income per share         $   0.15 $   0.66 $   0.44 $   2.50
                                        ======== ======== ======== ========




                      WABASH NATIONAL CORPORATION
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (in thousands)

                                                 September 30, December 31,
                                                      2006        2005
                                                 ------------  -----------
                                                  (Unaudited)
                              ASSETS
CURRENT ASSETS:
    Cash and cash equivalents                      $   16,211   $   67,437
    Accounts receivable, net                          161,983      131,671
    Current portion of finance contracts                   51        1,472
    Inventories                                       169,788      108,044
    Deferred income taxes                              27,920       40,550
    Prepaid expenses and other                          3,401        7,425
                                                   ----------   ----------
        Total current assets                          379,354      356,599

PROPERTY, PLANT AND EQUIPMENT, net                    131,518      131,561

EQUIPMENT LEASED TO OTHERS, net                         6,264        7,646

DEFERRED INCOME TAXES                                       -        3,050

GOODWILL                                               77,670       33,018

INTANGIBLE ASSETS                                      36,863        2,116

OTHER ASSETS                                           17,776       14,663
                                                   ----------   ----------
                                                   $  649,445   $  548,653
                                                   ==========   ==========

         LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
    Accounts payable                               $  134,719   $   84,147
    Current maturities of long-term debt               36,974          500
    Other accrued liabilities                          55,129       58,751
                                                   ----------   ----------
        Total current liabilities                     226,822      143,398

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

DEFERRED INCOME TAXES                                   3,090            -

OTHER NONCURRENT LIABILITIES AND CONTINGENCIES            972        1,553

STOCKHOLDERS' EQUITY                                  293,561      278,702
                                                   ----------   ----------
                                                   $  649,445   $  548,653
                                                   ==========   ==========


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

                                                        Nine Months Ended
                                                          September 30,
                                                        ------------------
                                                          2006      2005
                                                        --------  --------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                            $ 14,373  $ 91,392
  Adjustments to reconcile net cash (used in) provided
   by operating activities:
    Depreciation and amortization                         15,587    11,864
    Net loss (gain) on the sale of assets                     54    (1,069)
    Recovery of losses on accounts receivable and
     finance contracts                                         -       (23)
    Deferred income taxes                                  8,007   (35,986)
    Trailer valuation charges                                  -       161
    Excess tax benefits from stock-based compensation       (339)        -
    Stock-based compensation                               3,029     1,000
    Changes in operating assets and liabilities:
      Accounts receivable                                (25,380)  (31,139)
      Finance contracts                                    1,393     3,254
      Inventories                                        (56,987)  (70,212)
      Prepaid expenses and other                           2,394     1,697
      Accounts payable and accrued liabilities            30,727    29,048
      Other, net                                           1,464       652
                                                        --------  --------
        Net cash (used in) provided by operating
         activities                                       (5,678)      639
CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                                   (10,899)  (22,989)
  Acquisition, net of cash acquired                      (69,307)        -
  Proceeds from the sale of property, plant and
   equipment                                               1,890     9,623
                                                        --------  --------
        Net cash used in investing activities            (78,316)  (13,366)
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from exercise of stock options                    713     3,752
  Excess tax benefits from stock-based compensation          339         -
  Purchase of treasury stock                                (507)        -
  Borrowings under revolving credit facility             205,496    15,286
  Payments under revolving credit facility              (168,521)  (15,286)
  Payments under long-term debt obligations                 (500)   (1,500)
  Common stock dividends paid                             (4,252)   (2,820)
                                                        --------  --------
        Net cash provided by (used in) financing
         activities                                       32,768      (568)
                                                        --------  --------
NET DECREASE IN CASH AND CASH EQUIVALENTS                (51,226)  (13,295)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD          67,437    41,928
                                                        --------  --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD              $ 16,211  $ 28,633
                                                        ========  ========

Contact Information

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

    Investor Relations:
    (765) 771-5310