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Wabash National Corporation Enhances Indirect Distribution Channel with Retail Segment Realignment and Consolidation

LAFAYETTE, Ind., June 22, 2016 (GLOBE NEWSWIRE) -- Wabash National Corporation (NYSE:WNC), a diversified industrial manufacturer and North America’s leading producer of semi-trailers and liquid transportation systems, announced today it is realigning its Retail segment under Commercial Trailer Products and Diversified Products, in conjunction with transitioning a company-owned retail store to an independent dealer.

Dick Giromini, president and chief executive officer, explained, “We have made great strides in our ongoing efforts to transform Wabash National into a diversified industrial manufacturer to reduce cyclicality, improve profitability and drive higher growth. The decision to strategically realign and consolidate our retail locations and transition a company-owned store to an independent dealer will further these efforts and allow us to expand upon an already impressive network of independent dealers.”

Wabash National Trailer Centers in Ohio, Pennsylvania, Florida, Colorado and Texas will become part of the Commercial Trailer Products segment, while the Brenner Tank Services locations in Wisconsin, Illinois, Arkansas, Kentucky, Louisiana and Texas will join the Diversified Products segment.

“We believe this change in segment structure provides enhanced alignment between our business segments and their channel partners while supporting our strategic objective to grow the areas of our business that offer the most attractive margins and returns on invested capital,” added Mr. Giromini.

Mark Weber, group president of Diversified Products, commented, “This move will enable our tank trailer business to provide full service and aftermarket support to its Beall®, Brenner®, Bulk and Walker customers.  The tank parts and service business model complements our existing businesses as well as delivers attractive margins in a capital-efficient manner.”

In addition to realigning the Retail segment, Wabash National has finalized an agreement with Portland-based TEC Equipment, Inc. to provide sales, parts and service for Wabash National®, Transcraft® and Benson® brand trailers in Arizona, New Mexico and portions of Idaho. During July 2016, the Wabash National Trailer Center in Phoenix, Arizona, will be transitioned to an independent dealer facility operated by TEC Equipment.

“This latest agreement with TEC Equipment is one more step in executing our strategic growth plan to further enhance the indirect distribution channel as we expand access and service in the western United States,” explained Brent Yeagy, group president of Commercial Trailer Products.

Mr. Yeagy continued, “This agreement was a natural follow-up to the successful transition of three former branch locations in Oregon and California to TEC Equipment in 2014. TEC Equipment has proven to be a best-in-class dealer that provides excellent service to our mutual customers and a business partner that represents the Wabash brand very well.”

“We have demonstrated over the past several years that we are committed to optimizing business results,” Mr. Giromini added. “We continually focus our efforts to grow margins, strengthen the balance sheet and create shareholder value.”

As a result of the realignment, the former Retail segment will no longer be reported as a separate business segment in Wabash National’s financial statements. Wabash National will begin reporting the realigned segments effective with its second quarter 2016 Form 10-Q filed with the Securities Exchange Commission. For additional information on Wabash National's reporting segments as they will be presented, see the table following this release for unaudited operating results for the three- and twelve-month periods ending December 31, 2015 and 2014, as well as the three-month period ending March 31, 2016. 

About Wabash National Corporation
Headquartered in Lafayette, Indiana, Wabash National Corporation (NYSE:WNC) is a diversified industrial manufacturer and North America’s leading producer of semi-trailers 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, Transcraft®, Walker Engineered Products, and Walker Transport. Visit www.wabashnational.com to learn more.

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, statements about ongoing efforts to transform Wabash National into a diversified industrial manufacturer to reduce cyclicality, improve profitability and drive higher growth, statements regarding the effect of the segment realignment to enable our tank trailer business to provide full service and aftermarket support to its Beall®, Brenner®, Bulk and Walker customers and our other statements about our growth and diversification strategies.  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 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 capacity 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
SUPPLEMENTAL SEGMENT DISCLOSURES
(Dollars in thousands)
(Unaudited)
                                                 
    2014   2015   2016
                                                 
    Twelve Months Ended December 31, 2014   Twelve Months Ended December 31, 2015   Three Months Ended March 31, 2016
    Commercial Trailer
Products
  Diversified Products   Corporate & Eliminations   Consolidated   Commercial Trailer
Products
  Diversified Products   Corporate & Eliminations   Consolidated   Commercial Trailer
Products
  Diversified Products   Corporate & Eliminations   Consolidated
New Trailer Shipments     53,800       3,550       -       57,350       61,300       3,400       -       64,700       14,000       500       -       14,500  
Used Trailer Shipments     4,700       150       -       4,850       1,900       150       -       2,050       250       50       -       300  
        .                                        
Net Sales   $ 1,380,623     $ 494,992     $ (12,300 )   $ 1,863,315     $ 1,582,240     $ 456,927     $ (11,679 )   $ 2,027,489     $ 364,040     $ 86,431     $ (2,795 )   $ 447,676  
                                                 
Gross Profit     117,734       111,298       3,601       232,634       197,777       107,023       (1,356 )     303,443       60,396       20,210       (1,080 )     79,526  
Gross Profit %     8.5 %     22.5 %         12.5 %     12.5 %     23.4 %         15.0 %     16.6 %     23.4 %         17.8 %
                                                 
Income (Loss) from Operations     82,290       57,635       (17,539 )     122,386       159,385       51,079       (30,094 )     180,369       50,257       6,990       (9,062 )     48,185  
Operating Margin     6.0 %     11.6 %         6.6 %     10.1 %     11.2 %         8.9 %     13.8 %     8.1 %         10.8 %
                                                 
                                                 
    Three Months Ended March 31, 2014   Three Months Ended March 31, 2015   Three Months Ended March 31, 2016
    Commercial Trailer
Products
  Diversified Products   Corporate & Eliminations   Consolidated   Commercial Trailer
Products
  Diversified Products   Corporate & Eliminations   Consolidated   Commercial Trailer
Products
  Diversified Products   Corporate & Eliminations   Consolidated
New Trailer Shipments     9,150       800       -       9,950       13,500       850       -       14,350       14,000       500       -       14,500  
Used Trailer Shipments     2,100       50       -       2,150       300       50       -       350       250       50       -       300  
                                                 
Net Sales   $ 245,534     $ 115,084     $ (2,498 )   $ 358,120     $ 329,189     $ 111,140     $ (2,732 )   $ 437,597     $ 364,040     $ 86,431     $ (2,795 )   $ 447,676  
                                                 
Gross Profit     18,266       27,692       714       46,672       32,272       25,345       (420 )     57,197       60,396       20,210       (1,080 )     79,526  
Gross Profit %     7.4 %     24.1 %         13.0 %     9.8 %     22.8 %         13.1 %     16.6 %     23.4 %         17.8 %
                                                 
Income (Loss) from Operations     8,965       14,069       (3,570 )     19,465       22,910       11,355       (7,002 )     27,263       50,257       6,990       (9,062 )     48,185  
Operating Margin     3.7 %     12.2 %         5.4 %     7.0 %     10.2 %         6.2 %     13.8 %     8.1 %         10.8 %
                                                 
                                                 
    Three Months Ended June 30, 2014   Three Months Ended June 30, 2015                
    Commercial Trailer
Products
  Diversified Products   Corporate & Eliminations   Consolidated   Commercial Trailer
Products
  Diversified Products   Corporate & Eliminations   Consolidated                
New Trailer Shipments     14,100       850       -       14,950       16,100       800       -       16,900                  
Used Trailer Shipments     1,700       50       -       1,750       600       50       -       650                  
                                                 
Net Sales   $ 363,105     $ 126,801     $ (3,885 )   $ 486,021     $ 412,664     $ 105,306     $ (3,139 )   $ 514,831                  
                                                 
Gross Profit     31,809       28,443       1,361       61,613       49,040       23,687       (323 )     72,405                  
Gross Profit %     8.8 %     22.4 %         12.7 %     11.9 %     22.5 %         14.1 %                
                                                 
Income (Loss) from Operations     22,669       14,972       (3,785 )     33,855       39,249       9,769       (6,964 )     42,054                  
Operating Margin     6.2 %     11.8 %         7.0 %     9.5 %     9.3 %         8.2 %                
                                                 
                                                 
    Three Months Ended September 30, 2014   Three Months Ended September 30, 2015                
    Commercial Trailer
Products
  Diversified Products   Corporate & Eliminations   Consolidated   Commercial Trailer
Products
  Diversified Products   Corporate & Eliminations   Consolidated                
New Trailer Shipments     14,750       850       -       15,600       15,500       1,000       -       16,500                  
Used Trailer Shipments     550       50       -       600       450       50       -       500                  
                                                 
Net Sales   $ 371,582     $ 123,189     $ (3,073 )   $ 491,697     $ 406,409     $ 127,787     $ (2,847 )   $ 531,350                  
                                                 
Gross Profit     33,812       26,715       1,101       61,628       55,355       30,978       (311 )     86,022                  
Gross Profit %     9.1 %     21.7 %         12.5 %     13.6 %     24.2 %         16.2 %                
                                                 
Income (Loss) from Operations     25,249       13,791       (4,111 )     34,929       45,789       17,601       (7,001 )     56,389                  
Operating Margin     6.8 %     11.2 %         7.1 %     11.3 %     13.8 %         10.6 %                
                                                 
                                                 
    Three Months Ended December 31, 2014   Three Months Ended December 31, 2015                
    Commercial Trailer
Products
  Diversified Products   Corporate & Eliminations   Consolidated   Commercial Trailer
Products
  Diversified Products   Corporate & Eliminations   Consolidated                
New Trailer Shipments     15,800       1,050       -       16,850       16,200       750       -       16,950                  
Used Trailer Shipments     350       50       -       400       550       -       -       550                  
                                                 
Net Sales   $ 400,402     $ 129,918     $ (2,844 )   $ 527,477     $ 433,977     $ 112,694     $ (2,961 )   $ 543,711                  
                                                 
Gross Profit     33,846       28,449       426       62,721       61,110       27,013       (303 )     87,819                  
Gross Profit %     8.5 %     21.9 %         11.9 %     14.1 %     24.0 %         16.2 %                
                                                 
Income (Loss) from Operations     25,407       14,803       (6,072 )     34,137       51,438       12,354       (9,128 )     54,663                  
Operating Margin     6.3 %     11.4 %         6.5 %     11.9 %     11.0 %         10.1 %                
                                                 
                                                 
Note: The sum of shipments by quarter may not equal full year shipments due to rounding.
 
Media Contact:
Dana Stelsel
Corporate Communications Manager
(765) 771-5766
dana.stelsel@wabashnational.com

Investor Relations:
Mike Pettit
Vice President – Finance and Investor Relations
(765) 771-5581
michael.pettit@wabashnational.com

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