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Wabash National Corporation Announces Fourth Quarter and Full Year 2017 Results

January 30, 2018 at 4:31 PM EST
  • Fourth quarter and full-year GAAP earnings of $0.80 and $1.78 per diluted share
  • Fourth quarter and full-year non-GAAP adjusted earnings of $0.36 and $1.38 per diluted share
  • Strong quote and order activity increases backlog to near record level of $1.2 billion
  • Company updates 2018 shipment guidance to 56,000 to 60,000 trailers and full-year earnings per diluted share guidance of $1.86 to $2.02

LAFAYETTE, Ind., Jan. 30, 2018 (GLOBE NEWSWIRE) -- Wabash National Corporation (NYSE:WNC), a diversified industrial manufacturer and a leading producer of semi-trailers, truck bodies and liquid transportation systems, today reported results for the fourth quarter and full-year periods ending December 31, 2017.

Net income for the fourth quarter 2017 was $49.4 million, or $0.80 per diluted share, compared to the fourth quarter 2016 net income of $23.0 million, or $0.36 per diluted share.  Fourth quarter 2017 non-GAAP adjusted earnings was $22.3 million, or $0.36 per diluted share, a $2.0 million decrease as compared to the prior year period.  Non-GAAP adjusted earnings for the fourth quarter 2017 exclude the one-time tax benefit associated with both the adjustment of the Company’s net deferred income tax liability totaling $19.7 million as a result of the Tax Cuts and Jobs Act of 2017 and the reversal of reserves for uncertain tax positions of $12.6 million.  In addition, the fourth quarter 2017 adjusted earnings excludes non-recurring expenses totaling $6.6 million primarily related to acquisition and integration expenses associated with the Company’s acquisition of Supreme Industries, Inc. (“Supreme”) in September 2017 and charges incurred related to the closing of former branch locations.  Net sales for the fourth quarter increased 18 percent to $543 million from $462 million in the prior year quarter and operating income decreased 13 percent to $35.3 million compared to operating income of $40.6 million for the fourth quarter 2016.  Operating EBITDA, a non-GAAP measure that excludes the effects of certain items, for the fourth quarter 2017 was $51.1 million, a decrease of $2.5 million compared to operating EBITDA for the previous year quarter.

For the twelve months ended December 31, 2017, the Company reported net income of $111.4 million, or $1.78 per diluted share, on net sales of $1.77 billion, compared to net income of $119.4 million, or $1.82 per diluted share, on net sales of $1.85 billion for the twelve months ended December 31, 2016. Full-year 2017 results included tax benefits associated with both the adjustment of the Company’s net deferred income tax liability totaling $19.7 million as a result of the Tax Cuts and Jobs Act of 2017 and the reversal of reserves for uncertain tax positions of $12.6 million.  Full-year results also include charges totaling $9.5 million related to acquisition and integration related costs for Supreme and early extinguishment of debt incurred with the Company’s purchase of a portion of the outstanding convertible senior notes net of gains from the transition and sale of former branch locations.  Excluding the impact of these items, non-GAAP adjusted earnings for the full-year 2017 were $86.2 million, or $1.38 per diluted share.  Full-year 2016 results included charges totaling $3.3 million related to early extinguishment of debt incurred with the Company’s purchase of a portion of the outstanding convertible senior notes and the impairment of intangible assets in connection with the Company’s segment realignment.  Excluding the impact of these items, non-GAAP adjusted earnings for the full-year 2016 were $121.5 million, or $1.85 per diluted share.  For the full-year 2017, the Company achieved operating EBITDA of $189.0 million, or 10.7 percent of net sales, as compared to $253.0 million, or 13.7 percent of net sales, for the previous year.

The following is a summary of select operating and financial results for the past five quarters:

   
Three Months Ended  
(Dollars in thousands, except per
share amounts)
December 31,   March 31,   June 30,   September 30,   December 31,  
2016   2017   2017   2017   2017  
                     
Net Sales $   462,057     $   362,716     $   435,903     $   425,098     $    543,444    
                     
Gross Profit Margin   15.5 %     16.4 %     15.5 %     14.3 %     13.4 %  
                     
Income from Operations $   40,621     $   30,264     $   38,668     $   26,591     $    35,293    
                     
Income from Operations Margin   8.8 %     8.3 %     8.9 %     6.3 %     6.5 %  
                     
Net Income $   23,000     $   20,173     $   22,945     $   18,947     $    49,356    
                     
Diluted EPS $   0.36     $   0.32     $   0.36     $   0.30     $    0.80    
                     
Non-GAAP Measures(1):                    
                     
Operating EBITDA $   53,606     $   41,930     $   49,450     $   46,561     $    51,062    
                     
Operating EBITDA Margin   11.6 %     11.6 %     11.3 %     11.0 %     9.4 %  
                     
Adjusted Earnings $   24,213     $   19,517     $   23,189     $   21,214     $    22,250    
                     
Adjusted Diluted EPS $   0.38     $   0.31     $   0.37     $   0.34     $    0.36    
                                         

Notes:

 

  1. See “Non-GAAP Measures” below for explanation of the non-GAAP results included above.


The following is a summary of select operating and financial results for each of the last five years ending December 31, 2017:

   
Twelve Months Ended  
(Dollars in thousands, except per
share amounts)
December 31,   December 31,   December 31,   December 31,   December 31,  
2013   2014   2015   2016   2017  
           
Net Sales $   1,635,686     $   1,863,315     $   2,027,489     $   1,845,444     $    1,767,161    
                     
Gross Profit Margin   13.2 %     12.5 %     15.0 %     17.6 %     14.8 %  
                     
Income from Operations $   103,191     $   122,386     $   180,369     $   202,532     $    130,816    
                     
Income from Operations Margin   6.3 %     6.6 %     8.9 %     11.0 %     7.4 %  
                     
Net Income $   46,529     $   60,930     $   104,289     $   119,433     $    111,422    
         
Diluted EPS $   0.67     $   0.85     $   1.50     $   1.82     $    1.78    
                     
Non-GAAP Measures(2):                    
                     
Operating EBITDA $   149,890     $   169,048     $   229,464     $   253,002     $    189,004    
         
Operating EBITDA Margin   9.2 %     9.1 %     11.3 %     13.7 %     10.7 %  
                     
Adjusted Earnings $   48,190     $   62,992     $   103,392     $   121,538     $    86,166    
                     
Adjusted Diluted EPS $   0.70     $   0.89     $   1.49     $   1.85     $    1.38    
 

Notes:

  1. See “Non-GAAP Measures” below for explanation of the non-GAAP results included above.

Dick Giromini, chief executive officer, stated, “We are pleased overall with the Company’s 2017 performance, as we successfully established a stronger foundation for further growth and productivity for the current year and beyond.  The addition of the Supreme truck body business was a key accomplishment as it not only adds immediate revenue and profit opportunity, but also provides significant diversification into a high-growth segment driven by the ever-increasing adoption of e-commerce.” 

Mr. Giromini continued, “Operationally, following our fifth consecutive record year of profitability in 2016, a small reset was seemingly inevitable at some point.  Despite a somewhat more challenging year for parts of our core businesses, we are nonetheless proud of the team’s efforts in overcoming many of the headwinds throughout the year, leading us to the strong finish in the fourth quarter that positioned us for new levels of success in 2018.  New trailer shipments of 55,050 for the year were near the top-end of our previous guidance and we begin 2018 with a historically strong backlog of orders totaling $1.2 billion, an increase of 64 percent compared to the previous quarter.”

2018 Outlook
Mr. Giromini stated, “Looking at the current year, we continue to believe the demand environment for trailers overall will remain healthy as fleet age, regulatory compliance requirements such as the ELD implementation, a strong economy and customer profitability all support a continuation of an extended trailer cycle.  Adding to this belief is the significant turnaround in demand for both our platform and tank trailer businesses, leading to the strongest backlog in more than two years for those businesses.  Those factors combined with the addition of the Supreme truck body business, impact of the new Tax Cuts and Jobs Act of 2017, and effects of cost and productivity improvement initiatives throughout the business create a great recipe for success.  In 2018 we expect to ship in the range of 56,000 to 60,000 trailer units, along with 22,000 to 24,000 truck body units, for a revenue projection of $2.05 billion to $2.15 billion.  While the first quarter will be slow out of the gate due to timing of shipments, we believe that pace will accelerate beginning in the second quarter and throughout the balance of the year.  Based on those, and other demand and cost assumptions, we project full-year earnings of $1.86 to $2.02 per diluted share.”

Business Segment Highlights
The table below is a summary of select segment operating and financial results prior to the elimination of intersegment sales for the fourth quarter and full-year periods of 2017 and 2016.  As announced in the prior quarter, in the fourth quarter of 2017 the Company added a third reporting segment, Final Mile Products, which includes the results of our Supreme acquisition and the Company’s existing truck body growth and diversification initiative.  A complete disclosure of the results by individual segment is included in the tables following this release. 

                         
(dollars in thousands)   Commercial Trailer Products   Diversified Products   Final Mile
Products
 
                         
Three months ended December 31                  
        2017       2016       2017       2016       2017    
New trailers shipped       15,500   #     14,600         650         550         -    
Net sales   $    385,961     $   379,343     $    91,771     $   85,795     $    70,461    
Gross profit   $    47,055     $   59,171     $    18,040     $   13,535     $    8,150    
Gross profit margin     12.2 %     15.6 %     19.7 %     15.8 %     11.6 %  
Income from operations   $    40,134     $   49,917     $    5,532     $   1,124     $    (2,098 )  
Income from operations margin   10.4 %     13.2 %     6.0 %     1.3 %     -3.0 %  
                         
Twelve months ended December 31                  
        2017       2016       2017       2016       2017    
New trailers shipped       52,800         58,850         2,250         2,100         -     
Net sales   $    1,348,382     $   1,506,110     $    361,358     $   352,404     $    70,461    
Gross profit   $    183,912     $   253,274     $    70,159     $   75,630     $    8,150    
Gross profit margin     13.6 %     16.8 %     19.4 %     21.5 %     11.6 %  
Income from operations   $    151,999     $   212,351     $    20,376     $   24,595     $    (2,098 )  
Income from operations margin   11.3 %     14.1 %     5.6 %     7.0 %     -3.0 %  
                                         

Commercial Trailer Products’ net sales for the fourth quarter were $386 million, an increase of $7 million, or 2 percent, as compared to the prior year.  Gross profit margin for the fourth quarter decreased 340 basis points as compared to the prior year period primarily due to increases in commodity costs and continued labor constraints resulting in higher overtime requirements to meet current demand.  Operating income decreased $9.8 million, or 20 percent, from the fourth quarter last year to $40.1 million, or 10.4 percent of net sales.

Diversified Products’ net sales for the fourth quarter increased $6 million, or 7 percent, due primarily to the increased demand for liquid tank trailers and process systems products as compared to the previous year period.  Gross profit and profit margins as compared to the prior year period increased $4.5 million and 390 basis points, respectively, primarily due to increased demand levels and the execution of cost management initiatives.  Operating income for the fourth quarter 2017 was $5.5 million, or 6.0 percent of net sales, an increase of $4.4 million compared to the prior year. 

Final Mile Products’ net sales for the fourth quarter totaled $70 million.  Gross profit and gross profit margin for the fourth quarter were $8.1 million and 11.6 percent, respectively.  Excluding non-recurring acquisition and integration related costs, gross profit and operating margins for the fourth quarter were 17.6 percent and 3.9 percent, respectively.  Truck body demand continues to be strong as backlog increased 33 percent compared to the prior year.

Non-GAAP Measures

In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), the financial information included in this release contains non-GAAP financial measures, including operating EBITDA, operating EBITDA margin, adjusted earnings and adjusted earnings per diluted share.

These non-GAAP measures should not be considered a substitute for, or superior to, financial measures and results calculated in accordance with GAAP, including net income, and reconciliations to GAAP financial statements should be carefully evaluated.

Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, charges incurred in connection with the acquisition and integration of Supreme, impairment of goodwill and other intangible assets, and other non-operating income and expense.  Management believes providing operating EBITDA is useful for investors to understand the Company’s performance and results of operations period to period with the exclusion of the items identified above.  Management believes the presentation of operating EBITDA, when combined with the GAAP presentations of operating income and net income, is beneficial to an investor’s understanding of the Company’s operating performance.  A reconciliation of operating EBITDA to net income is included in the tables following this release.

Adjusted earnings and adjusted earnings per diluted share for the three- and twelve-month periods ending December 31, 2017 and 2016 reflect adjustments for charges incurred in connection with acquisition and integration of Supreme, the losses attributable to the Company’s extinguishment of debt, impairment of goodwill and other intangible assets, executive severance costs, income or losses recognized on sale of former branch locations as well as tax benefits associated with the adjustment of the Company’s net deferred income tax liability as a result of the Tax Cuts and Jobs Act of 2017 and reversal of reserves for uncertain tax positions.  Management believes providing adjusted measures and excluding certain items facilitates comparisons to the Company’s prior year periods and, when combined with the GAAP presentation of net income and diluted net income per share, is beneficial to an investor’s understanding of the Company’s performance.  A reconciliation of adjusted earnings and adjusted earnings per diluted share to net income and net income per diluted share is included in the tables following this release.

Fourth Quarter and Full-Year 2017 Conference Call
Wabash National will conduct a conference call to review and discuss its fourth quarter and full-year results on January 31, 2018 at 10:00 a.m. EST.  Access to the live webcast will be available 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 April 25, 2018.  Meeting access also will be available via conference call at 800-708-4540, participant code 46320733.

About Wabash National Corporation

Headquartered in Lafayette, Indiana, Wabash National Corporation (NYSE:WNC) is a diversified industrial manufacturer and a leading producer of semi-trailers, truck bodies and liquid transportation systems. Established in 1985, the Company manufactures a diverse range of products including: dry freight and refrigerated trailers, platform trailers, bulk tank trailers, dry and refrigerated truck bodies, truck-mounted tanks, intermodal equipment, aircraft refueling equipment, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade and pharmaceutical equipment. Its innovative products are sold under the following brand names: Wabash National®, Beall®, Benson®, Brenner® Tank, Bulk Tank International, DuraPlate®, Extract Technology®, Garsite, Progress Tank, Supreme®, Transcraft®, Walker Engineered Products, and Walker Transport. Learn more at www.wabashnational.com.

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, all statements regarding the Company’s outlook for trailer and truck body shipments, backlog, expectations regarding demand levels for trailers, truck bodies, non-trailer equipment and our other diversified product offerings, pricing, profitability and earnings, cash flow and liquidity, opportunity to capture higher margin sales, new product innovations, our growth and diversification strategies and our expectations with regards to capital allocation.  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 successful integration of Supreme into the Company’s business, adverse reactions to the transaction by customers, suppliers or strategic partners, uncertain economic conditions including the possibility that customer demand may not meet our expectations, 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 the Company’s manufacturing operations and cost containment, dependence on industry trends and timing and costs of indebtedness.  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
December 31,
  Twelve Months Ended
December 31,
      2017   2016   2017   2016
                   
Net sales   $   543,444     $   462,057     $   1,767,161     $   1,845,444  
Cost of sales       470,568         390,572         1,506,286         1,519,910  
  Gross profit       72,876         71,485         260,875         325,534  
                   
General and administrative expenses       24,314         19,036         77,825         74,129  
Selling expenses       8,020         6,849         25,588         27,270  
Amortization of intangibles       4,348         4,979         17,041         19,940  
Acquisition Expenses       901         -          9,605         -   
Impairment of goodwill       -          -          -          1,663  
  Income from operations       35,293         40,621         130,816         202,532  
                   
Other income (expense):                
  Interest expense       (7,335 )       (3,725 )       (16,400 )       (15,663 )
  Other, net       194         (1,679 )       8,122         (1,452 )
  Income before income taxes       28,152         35,217         122,538         185,417  
Income tax (benefit) expense       (21,204 )       12,217         11,116         65,984  
Net income    $   49,356     $   23,000     $   111,422     $   119,433  
Dividends declared per share   $   0.075     $   0.060     $   0.255     $   0.060  
Basic net income per share   $   0.84     $   0.37     $   1.88     $   1.87  
Diluted net income per share   $   0.80     $   0.36     $   1.78     $   1.82  
                                   
Comprehensive income                
  Net income   $   49,356     $   23,000     $   111,422     $   119,433  
  Foreign currency translation adjustment       (342 )       (403 )       487         (1,347 )
Net comprehensive income   $   49,014     $   22,597     $   111,909     $   118,086  
                                   
                   
Basic net income per share:                
  Net income applicable to common stockholders   $   49,356     $   23,000     $   111,422     $   119,433  
  Weighted average common shares outstanding       58,416         61,469         59,358         63,729  
  Basic net income per share   $   0.84     $   0.37     $   1.88     $   1.87  
                                   
Diluted net income per share:                
  Net income applicable to common stockholders   $   49,356     $   23,000     $   111,422     $   119,433  
                   
  Weighted average common shares outstanding       58,416         61,469         59,358         63,729  
  Dilutive shares from assumed conversion of convertible senior notes       1,672         945         1,726         794  
  Dilutive stock options and restricted stock       1,479         1,287         1,514         1,239  
  Diluted weighted average common shares outstanding       61,567         63,701         62,598         65,762  
  Diluted net income per share   $   0.80     $   0.36     $   1.78     $   1.82  
                                   

 

   
WABASH NATIONAL CORPORATION  
SEGMENTS AND RELATED INFORMATION  
(Dollars in thousands)  
(Unaudited)  
                         
      Commercial    Diversified   Final Mile   Corporate and      
Three Months Ended December 31,   Trailer Products   Products   Products   Eliminations   Consolidated  
  2017                      
New trailers shipped       15,500       650       -          -          16,150  
Used trailers shipped       550       50       -          -          600  
                         
New Trailers   $   367,526   $   40,895   $   -      $   -      $   408,421  
Used Trailers   $   5,352   $   821   $   -      $   -          6,173  
Components, parts and service   $   9,908   $   23,931   $   1,877     $   (4,749 )       30,967  
Equipment and other   $   3,175   $   26,124   $   68,584     $   -          97,883  
  Total net external sales   $   385,961   $   91,771   $   70,461     $   (4,749 )   $   543,444  
                         
Gross profit   $   47,055   $   18,040   $   8,150     $   (369 )   $   72,876  
Income (Loss) from operations   $   40,134   $   5,532   $   (2,098 )   $   (8,275 )   $   35,293  
                         
  2016                      
New trailers shipped       14,600       550       -          -          15,150  
Used trailers shipped       150       -        -          -          150  
                         
New Trailers   $   359,767   $   33,353   $   -      $   -      $   393,120  
Used Trailers       1,796       562       -          -          2,358  
Components, parts and service       13,082       22,867       -          (3,055 )       32,894  
Equipment and other       4,698       29,013       -          (26 )       33,685  
  Total net external sales   $   379,343   $   85,795   $   -      $   (3,081 )   $   462,057  
                         
Gross profit   $   59,171   $   13,535   $   -      $   (1,221 )   $   71,485  
Income (Loss) from operations   $   49,917   $   1,124   $   -      $   (10,420 )   $   40,621  
                         
Twelve Months Ended December 31,                      
  2017                      
New trailers shipped       52,800       2,250       -          -          55,050  
Used trailers shipped       1,050       100       -          -          1,150  
                         
New Trailers   $   1,273,584   $   140,105   $   -      $   -      $   1,413,689  
Used Trailers   $   10,720   $   3,278   $   -      $   -          13,998  
Components, parts and service   $   48,008   $   117,681   $   1,877     $   (13,040 )       154,526  
Equipment and other   $   16,070   $   100,294   $   68,584     $   -          184,948  
  Total net external sales   $   1,348,382   $   361,358   $   70,461     $   (13,040 )   $   1,767,161  
                         
Gross profit   $   183,912   $   70,159   $   8,150     $   (1,346 )   $   260,875  
Income (Loss) from operations   $   151,999   $   20,376   $   (2,098 )   $   (39,461 )   $   130,816  
                         
  2016                      
New trailers shipped       58,850       2,100       -          -          60,950  
Used trailers shipped       950       100       -          -          1,050  
                         
New Trailers   $   1,421,586   $   129,639   $   -      $   (89 )   $   1,551,136  
Used Trailers       11,998       3,176       -          -          15,174  
Components, parts and service       56,191       111,519       -          (12,955 )       154,755  
Equipment and other       16,335       108,070       -          (26 )       124,379  
  Total net external sales   $   1,506,110   $   352,404   $   -      $   (13,070 )   $   1,845,444  
                         
Gross profit   $   253,274   $   75,630   $   -      $   (3,370 )   $   325,534  
Income (Loss) from operations   $   212,351   $   24,595   $   -      $   (34,414 )   $   202,532  
                                     

 

   
WABASH NATIONAL CORPORATION  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(Dollars in thousands)  
               
        December 31,   December 31,  
        2017   2016  
        (Unaudited)      
ASSETS  
Current assets          
  Cash and cash equivalents   $   191,521   $   163,467  
  Accounts receivable       146,836       153,634  
  Inventories       180,735       139,953  
  Prepaid expenses and other       57,299       24,351  
    Total current assets   $   576,391   $   481,405  
               
Property, plant and equipment       195,363       134,138  
               
Deferred income taxes       -        20,343  
               
Goodwill         317,464       148,367  
               
Intangible assets       237,030       94,405  
               
Other assets       25,265       20,075  
        $   1,351,513   $   898,733  
               
LIABILITIES AND STOCKHOLDERS' EQUITY  
Current liabilities          
  Current portion of long-term debt   $   46,020   $   2,468  
  Current portion of capital lease obligations       290       494  
  Accounts payable       108,448       71,338  
  Other accrued liabilities       128,910       92,314  
    Total current liabilities   $   283,668   $   166,614  
               
Long-term debt       504,091       233,465  
               
Capital lease obligations       1,012       1,409  
               
Deferred income taxes       36,955       499  
               
Other noncurrent liabilities       19,724       24,355  
               
Stockholders' equity       506,063       472,391  
        $   1,351,513   $   898,733  
       

 

   
WABASH NATIONAL CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
(Dollars in thousands)  
(Unaudited)  
                         
                  Twelve Months Ended  
                  December 31,  
                  2017   2016  
                         
Cash flows from operating activities            
  Net income $   111,422     $   119,433    
  Adjustments to reconcile net income to net cash provided by operating activities        
  Depreciation     18,012         16,830    
    Amortization of intangibles     17,041         19,940    
    Net (gain) loss on the sale of property, plant and equipment     (8,046 )       101    
    Deferred income taxes     (14,814 )       4,044    
    Loss on debt extinguishment     799         1,895    
  Stock-based compensation     10,429         12,038    
    Impairment of goodwill           -          1,663    
    Non-cash interest expense     2,258         3,475    
  Changes in operating assets and liabilities        
  Accounts receivable     31,943         (809 )  
  Inventories     (13,158 )       24,969    
  Prepaid expenses and other   (2,014
      (10,147 )  
  Accounts payable and accrued liabilities     (963 )       (13,002 )  
  Other, net     (8,530 )       (1,680 )  
  Net cash provided by operating activities $   144,379     $   178,750    
                         
Cash flows from investing activities            
  Capital expenditures     (26,056 )       (20,342 )  
  Proceeds from the sale of property, plant, and equipment       10,860         19    
  Acquisition, net of cash acquired         (323,487 )       -     
  Other, net            6,443         3,014    
  Net cash used in investing activities $   (332,240 )   $   (17,309 )  
                         
Cash flows from financing activities            
  Proceeds from exercise of stock options         5,790         4,831    
  Borrowings under senior notes         325,000         -     
  Dividends paid             (15,315 )       -     
  Borrowings under revolving credit facilities       713         618    
  Payments under revolving credit facilities         (713 )       (618 )  
  Principal payments under capital lease obligations       (600 )       (779 )  
  Proceeds from issuance of term loan credit facility       377,519         -     
  Principal payments under term loan credit facilities       (386,577 )       (1,928 )  
  Principal payments under industrial revenue bond       (583 )       (473 )  
  Debt issuance costs paid           (6,783 )       -     
  Stock repurchase             (74,491 )       (98,922 )  
  Convertible senior notes repurchase         (8,045 )       (79,556 )  
  Net cash used in financing activities $   215,915     $   (176,827 )  
                                 
Net increase in cash and cash equivalents $   28,054     $   (15,386 )  
Cash and cash equivalents at beginning of period     163,467         178,853    
Cash and cash equivalents at end of period $   191,521     $   163,467    
                 

 

         
WABASH NATIONAL CORPORATION        
RECONCILIATION OF GAAP FINANCIAL MEASURES TO        
NON-GAAP FINANCIAL MEASURES        
(Dollars in thousands, except per share amounts)        
(Unaudited)        
                                 
Operating EBITDA1:                                
  Three Months Ended
December 31,
  Twelve Months Ended
December 31,
                 
  2017   2016   2017   2016                  
Net income $   49,356     $   23,000     $   111,422     $   119,433                    
Income tax expense     (21,204 )       12,217         11,116         65,984                    
Interest expense     7,335         3,725         16,400         15,663                    
Depreciation and amortization     9,651         9,565         35,053         36,769                    
Stock-based compensation     2,117         3,420         10,429         12,038                    
Impairment of intangibles     -          -          -          1,663                    
Acquisition expenses and related charges     4,002         -          12,706         -                     
Other non-operating (income) expense     (194 )       1,679         (8,122 )       1,452                    
Operating EBITDA $   51,062     $   53,606     $   189,004     $   253,002                    
                                                 
                                 
  Three Months Ended                      
  March 31,
2017
  June 30,
2017
  September 30,
2017
                     
Net income  $   20,173     $   22,945     $   18,947                        
Income tax expense     8,434         13,160         10,728                        
Interest expense     2,990         2,888         3,187                        
Depreciation and amortization     8,704         8,315         8,386                        
Stock-based compensation     2,963         2,467         2,881                        
Acquisition expenses and related charges     -          -          8,704                        
Other non-operating (income) expense     (1,333 )       (325 )       (6,271 )                      
Operating EBITDA $   41,930     $   49,450     $   46,561                        
                                             
                                 
Adjusted Earnings2:                                
  Three Months Ended December 31,   Twelve Months Ended December 31,  
  2017   2016   2017   2016  
  $   Per Share   $   Per Share   $   Per Share   $   Per Share  
                                 
Net Income $   49,356     $   0.80     $   23,000     $   0.36     $   111,422     $   1.78     $   119,433     $   1.82    
                                 
Adjustments:                                
Facility transactions3     274         -          450         0.01         (6,546 )       (0.10 )       (290 )       -     
Impairment of goodwill and other intangibles     -          -          -          -          -          -          1,663         0.03    
Loss on debt extinguishment     32         -          1,408         0.02         800         0.01         1,895         0.03    
Executive severance expense     -          -          -          -          238         -          -          -     
  Acquisition expenses and related charges     6,308         0.10         -          -          15,012         0.24         -          -     
Tax effect of aforementioned items     (2,381 )       (0.04 )       (645 )       (0.01 )       (3,421 )       (0.05 )       (1,163 )       (0.02 )  
Tax reform and other discrete tax adjustments     (31,339 )       (0.51 )       -          -          (31,339 )       (0.50 )       -          -     
                                                                 
Adjusted earnings $   22,250     $   0.36     $   24,213     $   0.38     $   86,166     $   1.38     $   121,538     $   1.85    
                                                                 
Weighted Average # of Diluted Shares O/S     61,567             63,701             62,598             65,762        
                                                 
                                 
  Three Months Ended          
  March 31, 2017   June 30, 2017   September 30, 2017          
  $   Per Share   $   Per Share   $   Per Share          
                                 
Net Income $   20,173     $   0.32     $   22,945     $   0.36     $   18,947         0.30            
                                 
Adjustments:                                
Facility transactions3     (1,665 )       (0.03 )       18         -          (5,165 )       (0.08 )          
Loss on debt extinguishment     640         0.01         125         -          3         -             
Executive severance expense     -          -          238         -              -             
  Acquisition expenses and related charges     -          -          -          -          8,704         0.14            
Tax effect of aforementioned items     369         0.01         (137 )       -          (1,275 )       (0.02 )          
                                                         
Adjusted earnings $   19,517     $   0.31     $   23,189     $   0.37     $   21,214     $   0.34            
                                                         
Weighted Average # of Diluted Shares O/S     63,390             63,207             62,236                
                                             
1Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, acquisition expenses and related charges, impairment of goodwill and other intangibles, and other non-operating income and expense.         
                                 
2Adjusted earnings and adjusted earnings per diluted share reflect adjustments for charges incurred in connection with acquistion expense and related costs, the losses attributable to the Company's extinguishment of debt, income or losses recognized on the sale and/or closure of former Company locations, one-time executive severance costs and impairment of goodwill or other intangible asset charges.         
                                 
3Facility transactions in 2016 and 2017 relate to gains and/or losses incurred for the sale or closure of the Company's retail branch locations.        
                                 

 

Media Contact:
Dana Stelsel
Corporate Communications Manager
(765) 771-5766
dana.stelsel@wabashnational.com

Investor Relations:
Jeff Taylor
Senior Vice President, Chief Financial Officer
(765) 771-5310
jeff.taylor@wabashnational.com

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Wabash National Corporation