Wabash National Corporation Announces Third Quarter 2020 Results

November 5, 2020 at 6:57 AM EST
  • Third quarter revenue of $352M on stable shipment volumes
  • Completion of $20M run-rate savings from reorganization actions deliver 13% decremental margins
  • Net Income turns positive with $0.07 GAAP EPS or $0.09 adjusted non-GAAP EPS
  • Substantial improvement in trough financial performance speaks to more resilient business model
  • Third quarter backlog increased to $1 billion showing improved end-market sentiment for 2021

LAFAYETTE, Ind., Nov. 05, 2020 (GLOBE NEWSWIRE) -- Wabash National Corporation (NYSE: WNC), the innovation leader of engineered solutions for the transportation, logistics and distribution industries, today reported results for the quarter ended September 30, 2020.

Net sales for the third quarter 2020 were steady compared with prior quarters at $351.6 million as the Company continued to produce equipment to satisfy customer demand volumes. Consolidated gross margin of 12.3% was the strongest rate since Q4 of 2019 as the company continued to achieve greater efficiency operating within the constraints of COVID-19 protocols. Operating income of $8.4 million, or 2.4% of sales, on a GAAP basis, includes the positive impact of cost savings stemming from strategic organizational realignment actions completed during the quarter. The Company's previously announced target of $20M in run rate savings from these realignment actions has been completed ahead of schedule and helped to limit decremental margins to 13% during the third quarter. Earnings per share was $0.07 on a GAAP basis or $0.09 on an adjusted non-GAAP basis for the third quarter.

Total Company backlog as of September 30, 2020 was approximately $1.0 billion as new order activity markedly accelerated during the September time frame. Backlog rose 37% compared June 2020 and was 29% above September 2019.

“We are pleased to deliver a profitable quarter that builds upon our purposeful financial management during the first half of 2020. We successfully executed strategic cost reductions that have not only preserved our organization's strength, but have enhanced our company's culture by eliminating silos and allowed us to provide a more seamless experience for customers who purchase across our unmatched portfolio of first to final mile solutions,” said Brent Yeagy, president and chief executive officer.

Operating cash flow was $107.1 million and free cash flow was $93.4 million year to date at the close of the third quarter 2020, which compares to significant cash burn during each of the two prior economic recessions. Liquidity as of the end of the third quarter was $383 million with $216 million of cash and a fully untapped revolving credit line of $167 million. Following the successful refinancing of the Company's term loan, the Company's nearest material debt maturity is now October 2025

"Our increased backlog reflects strong underpinnings within the freight markets as rebounding freight activity has contributed to significant gains in spot and contract rates. While we're looking forward to a demand environment that looks poised to improve into 2021, we also remain focused on executing in the final quarter of 2020 completing a year that we expect will demonstrate the benefits of our Company's diversification efforts over the last decade as well as actions over the past two years to significantly strengthen the management system of the Company." continued Yeagy. "Our broadened and synergistic portfolio has resulted in considerable improvement in trough performance across an array of key financial metrics like operating income, EBITDA, and free cash flow."

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 third quarter of 2020 and 2019. A complete disclosure of the results by individual segment is included in the tables following this release.

    Commercial Trailer Products   Diversified Products   Final Mile Products
Three Months Ended September 30,   2020     2019     2020     2019     2020     2019  
    (dollars in thousands)
New trailers shipped   7,975     13,700     475     750          
Net sales   $ 226,516     $ 380,344     $ 72,020     $ 93,181     $ 55,348     $ 113,504  
Gross profit   $ 25,934     $ 43,960     $ 13,853     $ 18,042     $ 4,854     $ 16,763  
Gross profit margin   11.4%     11.6%     19.2%     19.4%     8.8%     14.8%  
Income (loss) from operations   $ 19,659     $ 36,503     $ 4,188     $ 7,183     $ (4,442)     $ 4,628  
Income (loss) from operations margin   8.7%     9.6%     5.8%     7.7%     (8.0%)     4.1%  

Commercial Trailer Products’ net sales for the third quarter were $226.5 million, a decrease of 40.4% as compared to the prior year quarter as a result of a reduction in market demand. Operating income was $19.7 million or 8.7% of sales during the quarter.

Diversified Products’ net sales for the third quarter were $72.0 million, a decrease of 22.7% as compared to the prior year as a result of lower market demand. Operating income was $4.2 million or 5.8% of sales during the quarter.

Final Mile Products’ net sales for the third quarter totaled $55.3 million, a decrease of 51.2%, as compared to the prior year, due to softer market demand. Operating loss was $4.4 million during the quarter as a result of weaker volume leverage over fixed costs.

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, adjusted operating income (loss), adjusted net income (loss), adjusted earnings per share, adjusted segment EBITDA, and adjusted segment EBITDA margin. 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 (loss), and reconciliations to GAAP financial statements should be carefully evaluated.

Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, debt issuance costs expensed within General & administrative expenses related to the closing of the New Term Loan Credit Agreement, impairment and other, net, and other non-operating income and expense (which includes loss on debt extinguishment charges). 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 (loss) and net income (loss), is beneficial to an investor’s understanding of the Company’s operating performance. A reconciliation of operating EBITDA to net income (loss) is included in the tables following this release.

Free cash flow is defined as net cash provided by operating activities minus capital expenditures. Management believes providing free cash flow is useful for investors to understand the Company’s performance and results of cash generation period to period with the exclusion of the item identified above. Management believes the presentation of free cash flow, when combined with the GAAP presentations of cash provided by operating activities, is beneficial to an investor’s understanding of the Company’s operating performance. A reconciliation of free cash flow to cash provided by operating activities is included in the tables following this release.

Adjusted operating income (loss), a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities. Accordingly, the Company presents adjusted operating income (loss) excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating income (loss) to provide investors with a better understanding of the Company’s view of our results as compared to prior periods. A reconciliation of adjusted operating income (loss) to operating income (loss), the most comparable GAAP financial measure, is included in the tables following this release.

Adjusted net income and adjusted earnings per diluted share each reflect adjustments for non-cash impairment and debt transactions, and the related tax effects of these adjustments. 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 (loss) and diluted net income (loss) per share, is beneficial to an investor’s understanding of the Company’s performance. A reconciliation of adjusted net income and adjusted earnings per diluted share to net income (loss) and net income (loss) per diluted share is included in the tables following this release.

Adjusted segment EBITDA, a non-GAAP financial measure, is calculated by adding back segment depreciation and amortization expense to segment operating income (loss), and excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) under GAAP, but that management would not consider important in evaluating the quality of the Company’s segment operating results as they are not indicative of each segment's core operating results or may obscure trends useful in evaluating the segment's continuing activities. Adjusted segment EBITDA Margin is calculated by dividing Adjusted segment EBITDA by segment total net sales.  A reconciliation of adjusted segment EBITDA to income (loss) from operations is included in the tables following this release.

Third Quarter 2020 Conference Call

Wabash National will discuss its results during its quarterly investor conference call on Thursday, November 5, 2020, beginning at 10:00 a.m. EDT. The call and an accompanying slide presentation will be accessible on the "Investors" section of the Company’s website www.wabashnational.com. The conference call will also be accessible by dialing (844) 778-4139, conference ID 5580198. A replay of the call will be available on the site shortly after the conclusion of the presentation.

About Wabash National Corporation

As the innovation leader of engineered solutions for the transportation, logistics and distribution industries, Wabash National Corporation (NYSE: WNC) is changing how the world reaches you. Headquartered in Lafayette, Indiana, the company’s mission is to enable customers to succeed with breakthrough ideas and solutions that help them move everything from first to final mile. Wabash National designs and manufactures a diverse range of products, including: dry freight and refrigerated trailers, platform trailers, bulk tank trailers, dry and refrigerated truck bodies, 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®, 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, our expectations for improved financial performance during the course of the year 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 a continued or prolonged shutdown or reduction of our operations, substantially reduced customer orders or sales volumes and supply disruptions due to the coronavirus (COVID-19) outbreak, the continued 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 including the impact of tariffs or other international trade developments, risks in implementing and sustaining improvements in the Company’s manufacturing operations and cost containment, dependence on industry trends and timing, supplier constraints, labor costs and availability, customer acceptance of and reactions to pricing changes 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.

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

Investor Relations:
Ryan Reed
Director, Investor Relations
(765) 490-5664
ryan.reed@wabashnational.com


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

  September 30,
2020
  December 31,
2019
Assets      
Current assets:      
Cash and cash equivalents $ 215,822       $ 140,516    
Accounts receivable, net 104,642       172,737    
Inventories, net 201,510       186,914    
Prepaid expenses and other 44,534       41,222    
Total current assets 566,508       541,389    
Property, plant, and equipment, net 214,900       221,346    
Goodwill 204,351       311,026    
Intangible assets, net 173,384       189,898    
Other assets 36,939       40,932    
Total assets $ 1,196,082       $ 1,304,591    
Liabilities and Stockholders’ Equity      
Current liabilities:      
Current portion of long-term debt $ 1,500       $    
Current portion of finance lease obligations 342       327    
Accounts payable 145,393       134,821    
Other accrued liabilities 132,556       124,230    
Total current liabilities 279,791       259,378    
Long-term debt 457,222       455,386    
Finance lease obligations 119       378    
Deferred income taxes 36,080       37,576    
Other non-current liabilities 25,505       30,885    
Total liabilities 798,717       783,603    
Commitments and contingencies      
Stockholders’ equity:      
Common stock 200,000,000 shares authorized, $0.01 par value, 52,912,988 and 53,473,620 shares outstanding, respectively 753       750    
Additional paid-in capital 641,236       638,917    
Retained earnings 106,118       221,841    
Accumulated other comprehensive losses (4,135 )     (3,978 )  
Treasury stock at cost, 22,500,750 and 21,640,109 common shares, respectively (346,607 )     (336,542 )  
Total stockholders' equity 397,365       520,988    
Total liabilities and stockholders’ equity $ 1,196,082       $ 1,304,591    
                   



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

  Three Months Ended September 30,   Nine Months Ended September 30,
  2020   2019   2020   2019
Net sales $ 351,584       $ 580,908       $ 1,077,811       $ 1,740,135    
Cost of sales 308,390       503,173       963,553       1,506,060    
Gross profit 43,194       77,735       114,258       234,075    
General and administrative expenses 22,749       25,353       68,574       82,002    
Selling expenses 6,510       8,998       19,394       25,715    
Amortization of intangible assets 5,496       5,115       16,484       15,353    
Impairment and other, net 31             105,455          
Income (loss) from operations 8,408       38,269       (95,649 )     111,005    
Other income (expense):              
Interest expense (5,749 )     (6,713 )     (17,903 )     (20,823 )  
Other, net (57 )     1,333       348       2,245    
Other expense, net (5,806 )     (5,380 )     (17,555 )     (18,578 )  
Income (loss) before income tax (benefit) expense 2,602       32,889       (113,204 )     92,427    
Income tax (benefit) expense (1,285 )     7,429       (10,298 )     21,227    
Net income (loss) $ 3,887       $ 25,460       $ (102,906 )     $ 71,200    
               
Net income (loss) per share:              
Basic $ 0.07       $ 0.47       $ (1.94 )     $ 1.30    
Diluted $ 0.07       $ 0.46       $ (1.94 )     $ 1.28    
Weighted average common shares outstanding (in thousands):              
Basic 52,912       54,413       52,980       54,975    
Diluted 53,380       55,019       52,980       55,502    
               
Dividends declared per share $ 0.08       $ 0.08       $ 0.24       $ 0.24    



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

  Nine Months Ended September 30,
  2020   2019
Cash flows from operating activities      
Net (loss) income $ (102,906 )     $ 71,200    
Adjustments to reconcile net (loss) income to net cash provided by operating activities      
Depreciation 18,656       16,258    
Amortization of intangibles 16,484       15,353    
Net (gain) loss on sale of property, plant and equipment (1,669 )     (40 )  
Loss on debt extinguishment 219       104    
Deferred income taxes (753 )     (2,451 )  
Stock-based compensation 2,278       7,362    
Impairment 107,114          
Non-cash interest expense 807       783    
Accounts receivable 68,095       9,671    
Inventories (14,596 )     (89,869 )  
Prepaid expenses and other (3,086 )     (2,368 )  
Accounts payable and accrued liabilities 20,128       57,750    
Other, net (3,672 )     (7,535 )  
Net cash provided by operating activities $ 107,099       $ 76,218    
Cash flows from investing activities      
Capital expenditures (13,719 )     (22,244 )  
Proceeds from the sale of property, plant, and equipment 2,726       785    
Net cash used in investing activities $ (10,993 )     $ (21,459 )  
Cash flows from financing activities      
Proceeds from exercise of stock options 44       361    
Dividends paid (13,015 )     (13,443 )  
Borrowings under revolving credit facilities 45,584       446    
Payments under revolving credit facilities (45,584 )     (446 )  
Principal payments under finance lease obligations (244 )     (230 )  
Borrowings under term loan credit facility, net of original issuance discount 148,500          
Principal payments under term loan credit facility (135,228 )     (30,470 )  
Principal payments against senior notes (10,000 )        
Debt issuance costs paid (792 )     (142 )  
Stock repurchases (10,065 )     (22,652 )  
Net cash used in financing activities $ (20,800 )     $ (66,576 )  
Cash and cash equivalents:      
Net increase (decrease) in cash, cash equivalents, and restricted cash $ 75,306       $ (11,817 )  
Cash, cash equivalents and restricted cash at beginning of period 140,516       132,690    
Cash, cash equivalents, and restricted cash at end of period $ 215,822       $ 120,873    
                   



WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Unaudited - dollars in thousands)

Three Months Ended September 30,   Commercial
Trailer Products
  Diversified
Products
  Final Mile
Products
  Corporate and
Eliminations
  Consolidated
2020                    
New trailers shipped   7,975     475                 8,450  
Used trailers shipped   100     40                 140  
                     
New Trailers   $ 215,609     $ 37,455     $       $       $ 253,064  
Used Trailers   522     1,439                 1,961  
Components, parts and service   9,371     16,607     3,103       (2,300 )     26,781  
Equipment and other   1,014     16,519     52,245             69,778  
Total net external sales   $ 226,516     $ 72,020     $ 55,348       $ (2,300 )     $ 351,584  
Gross profit   $ 25,934     $ 13,853     $ 4,854       $ (1,447 )     $ 43,194  
Income (loss) from operations   $ 19,659     $ 4,188     $ (4,442 )     $ (10,997 )     $ 8,408  
                     
2019                    
New trailers shipped   13,700   750               14,450  
Used trailers shipped   25   10               35  
                     
New Trailers   $ 366,938     $ 51,697     $       $       $ 418,635  
Used Trailers   86     417                 503  
Components, parts and service   10,039     23,790     4,302       (5,960 )     32,171  
Equipment and other   3,281     17,277     109,202       (161 )     129,599  
Total net external sales   $ 380,344     $ 93,181     $ 113,504       $ (6,121 )     $ 580,908  
Gross profit   $ 43,960     $ 18,042     $ 16,763       $ (1,030 )     $ 77,735  
Income (loss) from operations   $ 36,503     $ 7,183     $ 4,628       $ (10,045 )     $ 38,269  


Nine Months Ended September 30,   Commercial
Trailer Products
  Diversified
Products
  Final Mile
Products
  Corporate and
Eliminations
  Consolidated
2020                    
New trailers shipped   24,500     1,525                 26,025  
Used trailers shipped   320     110                 430  
                     
New Trailers   $ 672,263     $ 108,943     $       $       $ 781,206  
Used Trailers   3,113     3,972                 7,085  
Components, parts and service   28,214     64,855     9,278       (17,284 )     85,063  
Equipment and other   6,155     41,159     157,172       (29 )     204,457  
Total net external sales   $ 709,745     $ 218,929     $ 166,450       $ (17,313 )     $ 1,077,811  
Gross profit   $ 72,169     $ 39,755     $ 6,573       $ (4,239 )     $ 114,258  
Income (loss) from operations   $ 54,129     $ 360     $ (119,052 )     $ (31,086 )     $ (95,649 )
                     
2019                    
New trailers shipped   40,350     2,200                 42,550  
Used trailers shipped   50     60                 110  
                     
New Trailers   $ 1,078,599     $ 146,821     $       $       $ 1,225,420  
Used Trailers   236     1,743                 1,979  
Components, parts and service   30,994     88,681     12,165       (20,455 )     111,385  
Equipment and other   12,424     52,610     337,005       (688 )     401,351  
Total net external sales   $ 1,122,253     $ 289,855     $ 349,170       $ (21,143 )     $ 1,740,135  
Gross profit   $ 126,806     $ 58,264     $ 51,576       $ (2,571 )     $ 234,075  
Income (loss) from operations   $ 102,742     $ 24,138     $ 15,718       $ (31,593 )     $ 111,005  



WABASH NATIONAL CORPORATION
SEGMENT AND COMPANY FINANCIAL INFORMATION
(Unaudited - dollars in thousands)

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2020   2019   2020   2019
Commercial Trailer Products              
Income from operations $ 19,659       $ 36,503       $ 54,129       $ 102,742    
Adjustments:              
Impairment             377          
Adjusted operating income $ 19,659       $ 36,503       $ 54,506       $ 102,742    
               
Diversified Products              
Income from operations 4,188       7,183       360       24,138    
Adjustments:              
Impairment             10,971          
Adjusted operating income 4,188       7,183       11,331       24,138    
               
Final Mile Products              
(Loss) income from operations (4,442 )     4,628       (119,052 )     15,718    
Adjustments:              
Impairment             95,766          
Adjusted operating (loss) income (4,442 )     4,628       (23,286 )     15,718    
               
Corporate              
Loss from operations (10,997 )     (10,045 )     (31,086 )     (31,593 )  
Adjustments:              
Debt transactions 1,156             1,156          
Adjusted operating loss (9,841 )     (10,045 )     (29,930 )     (31,593 )  
               
Consolidated              
Income (loss) from operations 8,408       38,269       (95,649 )     111,005    
Adjustments:              
Impairment             107,114          
Debt transactions 1,156             1,156          
Adjusted operating income $ 9,564       $ 38,269       $ 12,621       $ 111,005    
                                       



WABASH NATIONAL CORPORATION
RECONCILIATION OF GAAP FINANCIAL MEASURES TO
NON-GAAP FINANCIAL MEASURES
(Unaudited - dollars in thousands, except per share amounts)

Operating EBITDA1: Three Months Ended September 30,   Nine Months Ended September 30,
  2020   2019   2020   2019
Net income (loss) $ 3,887       $ 25,460     $ (102,906 )     $ 71,200  
Income tax (benefit) expense (1,285 )     7,429     (10,298 )     21,227  
Interest expense 5,749       6,713     17,903       20,823  
Depreciation and amortization 12,495       10,416     35,140       31,611  
Stock-based compensation 1,862       1,985     2,278       7,362  
Debt issuance costs expensed 1,156           1,156        
Impairment and other, net 31           105,455        
Other, net 57       (1,333 )   (348 )     (2,245 )
Operating EBITDA $ 23,952       $ 50,670     $ 48,380       $ 149,978  
                                   


Adjusted Net Income2: Three Months Ended September 30,   Nine Months Ended September 30,
  2020   2019   2020   2019
Net income (loss) $ 3,887       $ 25,460     $ (102,906 )     $ 71,200  
Adjustments:                                  
Debt transactions3 1,375           1,375        
Impairment           107,114        
Tax effect of aforementioned items (564 )         (3,350 )      
Adjusted net income $ 4,698       $ 25,460     $ 2,233       $ 71,200  
                                   


Adjusted Diluted Earnings Per Share2: Three Months Ended September 30,   Nine Months Ended September 30,
  2020   2019   2020   2019
Diluted earnings per share $ 0.07       $ 0.46     $ (1.94 )     $ 1.28  
Adjustments:              
Debt transactions3 0.03           0.03        
Impairment           2.02        
Tax effect of aforementioned items (0.01 )         (0.06 )      
Adjusted diluted earnings per share $ 0.09       $ 0.46     $ 0.04       $ 1.28  
               
Weighted average diluted shares outstanding (in thousands) 53,380       55,019     52,980       55,502  
                           

1Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, debt issuance costs expensed within General & administrative expenses related to the closing of the New Term Loan Credit Agreement, impairment and other, net, and other non-operating income and expense (which includes loss on debt extinguishment charges).

2Adjusted net income and adjusted diluted earnings per share reflect adjustments for non-cash impairment and debt transactions, and the related tax effects of these adjustments.

3Debt transactions include debt issuance costs within General & administrative expenses related to the closing of the New Term Loan Credit Agreement and loss on debt extinguishment charges included in Other, net.



WABASH NATIONAL CORPORATION
RECONCILIATION OF FREE CASH FLOW1
(Unaudited - dollars in thousands)

  Nine Months Ended September 30,
  2020   2019
Net cash provided by operating activities $ 107,099       $ 76,218    
Capital expenditures (13,719 )     (22,244 )  
Free cash flow1 $ 93,380       $ 53,974    
                   

1 Free cash flow is defined as net cash provided by operating activities minus capital expenditures.



WABASH NATIONAL CORPORATION
RECONCILIATION OF ADJUSTED SEGMENT EBITDA1
AND ADJUSTED SEGMENT EBITDA MARGIN1
(Unaudited - dollars in thousands)

  Commercial Trailer Products   Diversified Products   Final Mile Products
Three Months Ended September 30,
2020
2020   2019   2020   2019   2020   2019
Income (loss) from operations $ 19,659       $ 36,503     $ 4,188     $ 7,183     $ (4,442 )     $ 4,628  
Depreciation and amortization 2,858       2,701     4,828     4,462     3,850       2,861  
Impairment and other, net (168 )         18         182        
Adjusted segment EBITDA $ 22,349       $ 39,204     $ 9,034     $ 11,645     $ (410 )     $ 7,489  
                       
Adjusted segment EBITDA margin 9.9   %   10.3 %   12.5 %   12.5 %   (0.7 ) %   6.6 %


  Commercial Trailer Products   Diversified Products   Final Mile Products
Nine Months Ended September 30, 2020 2020   2019   2020   2019   2020   2019
Income (loss) from operations $ 54,129       $ 102,742     $ 360     $ 24,138     $ (119,052 )     $ 15,718  
Depreciation and amortization 8,536       7,917     13,942     14,095     10,982       8,474  
Impairment and other, net (1,558 )         10,989         96,028        
Adjusted segment EBITDA $ 61,107       $ 110,659     $ 25,291     $ 38,233     $ (12,042 )     $ 24,192  
                       
Adjusted segment EBITDA margin 8.6   %   9.9 %   11.6 %   13.2 %   (7.2 ) %   6.9 %

1 Adjusted segment EBITDA, a non-GAAP financial measure, is calculated by adding back segment depreciation and amortization expense to segment operating income (loss), and excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) under GAAP, but that management would not consider important in evaluating the quality of the Company’s segment operating results as they are not indicative of each segment's core operating results or may obscure trends useful in evaluating the segment's continuing activities. Adjusted segment EBITDA margin is calculated by dividing Adjusted segment EBITDA by segment total net sales.

 


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Source: Wabash National Corporation