Document
false0000879526 0000879526 2019-11-06 2019-11-06


 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
 Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported) November 6, 2019
 
WABASH NATIONAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
 
Delaware
001-10883
52-1375208
(State or other jurisdiction
of Incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
 
1000 Sagamore Parkway South
 
 
Lafayette
Indiana
 
47905
(Address of principal executive offices)
 
(Zip Code)
 
Registrant’s telephone number, including area code: (765771-5310
Not applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, $0.01 par value
 
WNC
 
New York Stock Exchange
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


 





Item 2.02 Results of Operations and Financial Condition.
 
On November 6, 2019, Wabash National Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2019. A copy of the Company’s press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference. The press release and a teleconference visual presentation are also available on the Company's Investor Relations website at ir.wabashnational.com.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
EXHIBIT INDEX
 
Exhibit No.
 
Description
 
 
 
 
104
 
Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document).






SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 

 
WABASH NATIONAL CORPORATION
 
 
 
Date: November 6, 2019
By:
/s/ Jeffery L. Taylor
 
 
Jeffery L. Taylor
 
 
Senior Vice President and Chief Financial Officer



Exhibit


https://cdn.kscope.io/1164b866ceb9035f0eb476bce3eec7b5-wnclogoa01.jpg  
Media Contact:
Dana Stelsel
Director, Corporate Communications
(765) 771-5766
dana.stelsel@wabashnational.com


Investor Relations:
Ryan Reed
Director, Investor Relations
(765) 771-5805
ryan.reed@wabashnational.com
 

Wabash National Corporation Announces Third Quarter 2019 Results
 
Revenue grew 5 percent year-over-year to $581M, a record level for the third quarter
Operating margin of 6.6 percent showed substantial year-over-year improvement
Final Mile Products grew 30% versus Q3 of 2018 while achieving margin expansion of 580 basis points
Earnings Per Share of $0.46
Full year 2019 EPS outlook raised to midpoint of $1.67, range narrowed to $1.64 to $1.70 per share

LAFAYETTE, Ind. – November 6, 2019 – 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, 2019.
Net sales for the third quarter 2019 increased 5 percent to $581 million from $553 million in the prior year quarter, as growth was led by the Company’s Final Mile Products and Commercial Trailer Products Segments. Operating income was $38.3 million and the Company achieved a consolidated operating margin of 6.6 percent during the third quarter of 2019, which represents a significant improvement from the third quarter of 2018, highlighting the success of both short and long-term initiatives targeting margin expansion.
“Q3 is a significant milestone of the process improvements we've implemented over the last year that have allowed us to stabilize challenges in the manufacturing environment and excel operationally," explained Brent Yeagy, president and chief executive officer. "Our team has executed on initiatives like supply chain optimization, transforming information flows from chassis OEM's and enhanced sales and operational planning to unlock capacity necessary for growth in Final Mile. In any environment, 140 basis points of overall operating margin improvement is a significant accomplishment. Similarly, 580 basis points of margin expansion in Final Mile Products shows considerable underlying improvements.”
Net income for the third quarter 2019 was $25.5 million, or 46 cents per diluted share, which compares to 8 cents in the third quarter of 2018 or 29 cents on a non-GAAP Adjusted basis. Operating EBITDA, a non-GAAP measure that excludes the effects of certain items, for the third quarter 2019 was $50.7 million, or 8.7 percent of net sales.
Mr. Yeagy continued, “We are raising the midpoint of our full-year EPS outlook to $1.67 based on our strong year to date performance. With one quarter left in the year, we are narrowing the range of our EPS outlook to $1.64 to $1.70.”





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 2019 and 2018. 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,
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
 
(dollars in thousands)
New trailers shipped
 
13,700

 
14,450

 
750

 
700

 

 

Net sales
 
$
380,344

 
$
368,342

 
$
93,181

 
$
102,361

 
$
113,504

 
$
87,049

Gross profit
 
$
43,960

 
$
39,137

 
$
18,042

 
$
17,018

 
$
16,763

 
$
8,954

Gross profit margin
 
11.6
%
 
10.6
%
 
19.4
%
 
16.6
 %
 
14.8
%
 
10.3
 %
Income (loss) from operations
 
$
36,503

 
$
32,453

 
$
7,183

 
$
(6,346
)
 
$
4,628

 
$
(1,495
)
Income (loss) from operations margin
 
9.6
%
 
8.8
%
 
7.7
%
 
(6.2
)%
 
4.1
%
 
(1.7
)%
Commercial Trailer Products’ net sales for the third quarter were $380 million, an increase of $12.0 million, or 3.3 percent as compared to the prior year quarter. Gross profit margin for the third quarter increased 100 basis points as compared to the prior year period primarily due to successful efforts to recover cost pressures as well as product and customer mix. Operating income increased $4.1 million, or 12.5 percent, from the third quarter last year to $36.5 million, or 9.6 percent of net sales.
Diversified Products’ net sales for the third quarter were $93 million, a decrease of $9.2 million, or 9.0 percent, as compared to the prior year, due to impact from the divestiture of a business, partially offset by increased demand for tank trailers. Gross profit and profit margin as compared to the prior year period increased $1.0 million and 280 basis points, respectively, as the segment benefited from cost recovery as well as operational cost improvements driven by the Wabash Management System. Operating income in the third quarter of 2019 was $7.2 million, or 7.7 percent of net sales, representing an increase of $13.5 million as compared to the third quarter of 2018 or $1.5 million with the impact of a non-GAAP adjustment in the prior year period.
Final Mile Products’ net sales for the third quarter totaled $114 million, an increase of $26.5 million, or 30.4 percent, as compared to the prior year, due to strong market and customer demand. Gross profit margin for the third quarter increased 450 basis points as compared to the prior year period primarily due to improved volume, cost recovery and improved operational efficiency. Operating income was $4.6 million, or 4.1 percent of net sales, compared to a loss of $1.5 million, or -1.7 percent of net sales in the prior year period.
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, adjusted net income 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, acquisition expenses and related charges, 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 operating income, a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income 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 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 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 to operating income, the most comparable GAAP financial measure, is included in the tables following this press release.
Adjusted net income and adjusted earnings per diluted share, each reflect adjustments for income or losses recognized on the sale and/or closure of former Company locations, the losses attributable to the Company's extinguishment of debt, a non-cash impairment of assets, acquisition expenses and related charges, and tax reform and other discrete tax 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 and diluted net income per share, is beneficial to an investor’s understanding of the Company’s performance. A reconciliation of each of adjusted net income and adjusted earnings per diluted share to net income and net income per diluted share is included in the tables following this release.
Third Quarter 2019 Conference Call
Wabash National will discuss its results during its quarterly investor conference call on Wednesday, November 6, 2019, 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 5094114. A replay of the call will be available on the site shortly after the conclusion of the presentation.
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, 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 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.
# # #





WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - dollars in thousands)
 
 
September 30,
2019
 
December 31,
2018
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
120,873

 
$
132,690

Accounts receivable, net
171,393

 
181,064

Inventories
274,273

 
184,404

Prepaid expenses and other
54,847

 
51,261

Total current assets
621,386

 
549,419

Property, plant, and equipment, net
210,963

 
206,991

Goodwill
311,134

 
311,084

Intangible assets
194,934

 
210,328

Other assets
40,186

 
26,571

Total assets
$
1,378,603

 
$
1,304,393

Liabilities and Stockholders' Equity
 
 
 
Current liabilities:
 
 
 
Current portion of long-term debt
$

 
$
1,880

Current portion of finance lease obligations
322

 
299

Accounts payable
188,911

 
153,113

Other accrued liabilities
136,429

 
116,384

Total current liabilities
325,662

 
271,676

Long-term debt
475,122

 
503,018

Finance lease obligations
461

 
714

Deferred income taxes
32,454

 
34,905

Other non-current liabilities
29,846

 
20,231

Total liabilities
863,545

 
830,544

Commitments and contingencies
 
 
 
Stockholders' equity:
 
 
 
Common stock 200,000,000 shares authorized, $0.01 par value, 54,122,624 and 55,135,788 shares outstanding, respectively
750

 
744

Additional paid-in capital
636,756

 
629,039

Retained earnings
207,934

 
150,244

Accumulated other comprehensive loss
(4,895
)
 
(3,343
)
Treasury stock at cost, 20,923,252 and 19,372,735 common shares, respectively
(325,487
)
 
(302,835
)
Total stockholders' equity
515,058

 
473,849

Total liabilities and stockholders' equity
$
1,378,603

 
$
1,304,393







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,
 
2019
 
2018
 
2019
 
2018
Net sales
$
580,908

 
$
553,073

 
$
1,740,135

 
$
1,657,082

Cost of sales
503,173

 
487,911

 
1,506,060

 
1,442,487

Gross profit
77,735

 
65,162

 
234,075

 
214,595

General and administrative expenses
25,353

 
23,033

 
82,002

 
73,920

Selling expenses
8,998

 
8,690

 
25,715

 
25,591

Amortization of intangible assets
5,115

 
4,937

 
15,353

 
14,818

Acquisition expenses

 

 

 
68

Impairment

 
11,989

 

 
11,989

Income from operations
38,269

 
16,513

 
111,005

 
88,209

Other income (expense):
 
 
 
 
 
 
 
Interest expense
(6,713
)
 
(7,044
)
 
(20,823
)
 
(21,649
)
Other, net
1,333

 
533

 
2,245

 
12,486

Other expense, net
(5,380
)
 
(6,511
)
 
(18,578
)
 
(9,163
)
Income before income tax
32,889

 
10,002

 
92,427

 
79,046

Income tax expense
7,429

 
5,338

 
21,227

 
21,209

Net income
$
25,460

 
$
4,664

 
$
71,200

 
$
57,837

Net income per share:
 
 
 
 
 
 
 
Basic
$
0.47

 
$
0.08

 
$
1.30

 
$
1.01

Diluted
$
0.46

 
$
0.08

 
$
1.28

 
$
0.98

Weighted average common shares outstanding (in thousands):
 
 
 
 
 
 
 
Basic
54,413

 
56,798

 
54,975

 
57,486

Diluted
55,019

 
57,742

 
55,502

 
59,218

 
 
 
 
 
 
 
 
Dividends declared per share
$
0.080

 
$
0.075

 
$
0.240

 
$
0.225






WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - dollars in thousands)
 
Nine Months Ended September 30,
 
2019
 
2018
Cash flows from operating activities:
 
 
 
Net income
$
71,200

 
$
57,837

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation
16,258

 
15,701

Amortization of intangibles
15,353

 
14,818

Net loss (gain) on sale of property, plant and equipment
(40
)
 
(10,164
)
Loss on debt extinguishment
104

 
174

Deferred income taxes
(2,451
)
 
(122
)
Stock-based compensation
7,362

 
8,479

Impairment

 
11,989

Non-cash interest expense
783

 
1,426

Changes in operating assets and liabilities
 
 
 
Accounts receivable
9,671

 
(48,531
)
Inventories
(89,869
)
 
(66,089
)
Prepaid expenses and other
(2,368
)
 
(3,265
)
Accounts payable and accrued liabilities
57,750

 
76,602

Other, net
(7,535
)
 
(2,171
)
Net cash provided by operating activities
76,218

 
56,684

Cash flows from investing activities:
 
 
 
Capital expenditures
(22,244
)
 
(20,344
)
Proceeds from sale of property, plant and equipment
785

 
17,775

Other, net

 
3,060

Net cash (used in) provided by investing activities
(21,459
)
 
491

Cash flows from financing activities:
 
 
 
Proceeds from exercise of stock options
361

 
961

Dividends paid
(13,443
)
 
(13,566
)
Borrowings under revolving credit facilities
446

 
582

Payments under revolving credit facilities
(446
)
 
(582
)
Principal payments under finance lease obligations
(230
)
 
(216
)
Principal payments under term loan credit facility
(30,470
)
 
(1,410
)
Principal payments under industrial revenue bond

 
(93
)
Debt issuance costs paid
(142
)
 

Convertible senior notes repurchase

 
(80,200
)
Stock repurchase
(22,652
)
 
(44,433
)
Net cash used in financing activities
(66,576
)
 
(138,957
)
Cash, cash equivalents, and restricted cash:
 
 
 
Net increase (decrease) for the period
(11,817
)
 
(81,782
)
At beginning of period
132,690

 
191,521

At end of period
$
120,873

 
$
109,739

Supplemental disclosures of cash flow information:
 
 
 
Cash paid for interest
$
15,639

 
$
16,263

Cash paid for income taxes
$
18,965

 
$
23,588






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
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

 
 
 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
 
 
New trailers shipped
 
14,450
 
700
 

 

 
15,150

Used trailers shipped
 
150
 
50
 

 

 
200

 
 

 

 

 

 


New Trailers
 
$
354,003

 
$
44,399

 
$

 
$

 
$
398,402

Used Trailers
 
1,888

 
775

 

 

 
2,663

Components, parts and service
 
8,090

 
29,064

 
2,304

 
(4,676
)
 
34,782

Equipment and other
 
4,361

 
28,123

 
84,745

 
(3
)
 
117,226

Total net external sales
 
$
368,342

 
$
102,361

 
$
87,049

 
$
(4,679
)
 
$
553,073

Gross profit
 
$
39,137

 
$
17,018

 
$
8,954

 
$
53

 
$
65,162

Income (Loss) from operations
 
$
32,453

 
$
(6,346
)
 
$
(1,495
)
 
$
(8,099
)
 
$
16,513

Nine Months Ended September 30,
 
Commercial
Trailer Products
 
Diversified
Products
 
Final Mile
Products
 
Corporate and
Eliminations
 
Consolidated
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

 
 
 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
 
 
New trailers shipped
 
42,750

 
1,900

 

 

 
44,650

Used trailers shipped
 
850

 
100

 

 

 
950

 
 
 
 
 
 
 
 
 
 
 
New Trailers
 
$
1,049,452

 
$
115,840

 
$

 
$

 
$
1,165,292

Used Trailers
 
8,794

 
2,489

 

 

 
11,283

Components, parts and service
 
25,780

 
94,958

 
7,340

 
(16,529
)
 
111,549

Equipment and other
 
14,245

 
78,362

 
276,377

 
(26
)
 
368,958

Total net external sales
 
$
1,098,271

 
$
291,649

 
$
283,717

 
$
(16,555
)
 
$
1,657,082

Gross profit
 
$
123,173

 
$
51,008

 
$
41,409

 
$
(995
)
 
$
214,595

Income (Loss) from operations
 
$
102,718

 
$
3,078

 
$
9,372

 
$
(26,959
)
 
$
88,209







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


 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2019
 
2018
 
2019
 
2018
Commercial Trailer Products
 
 
 
 
 
 
 
Income from operations
$
36,503

 
$
32,453

 
$
102,742

 
$
102,718

 
 
 
 
 
 
 
 
Diversified Products
 
 
 
 
 
 
 
Income from operations
7,183

 
(6,346
)
 
24,138

 
3,078

Adjustments:
 
 
 
 
 
 
 
Impairment

 
11,989

 

 
11,989

Adjusted operating income
7,183

 
5,643

 
24,138

 
15,067

 
 
 
 
 
 
 
 
Final Mile Products
 
 
 
 
 
 
 
Income from operations
4,628

 
(1,495
)
 
15,718

 
9,372

Adjustments:
 
 
 
 
 
 
 
Acquisition expenses and related charges

 

 

 
751

Adjusted operating income
4,628

 
(1,495
)
 
15,718

 
10,123

 
 
 
 
 
 
 
 
Corporate
 
 
 
 
 
 
 
Income from operations
(10,045
)
 
(8,099
)
 
(31,593
)
 
(26,959
)
Adjustments:
 
 
 
 
 
 
 
Acquisition expenses and related charges

 

 

 
68

Adjusted operating income
(10,045
)
 
(8,099
)
 
(31,593
)
 
(26,891
)
 
 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
 
Income from operations
38,269

 
16,513

 
111,005

 
88,209

Adjustments:
 
 
 
 
 
 
 
Impairment

 
11,989

 

 
11,989

Acquisition expenses and related charges

 

 

 
819

Adjusted operating income
$
38,269

 
$
28,502

 
$
111,005

 
$
101,017







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,
 
2019
 
2018
 
2019
 
2018
Net income
$
25,460

 
$
4,664

 
$
71,200

 
$
57,837

Income tax expense
7,429

 
5,338

 
21,227

 
21,209

Interest expense
6,713

 
7,044

 
20,823

 
21,649

Depreciation and amortization
10,416

 
10,308

 
31,611

 
30,519

Stock-based compensation
1,985

 
3,089

 
7,362

 
8,479

Acquisition expenses

 

 

 
68

Impairment

 
11,989

 

 
11,989

Other non-operating income
(1,333
)
 
(533
)
 
(2,245
)
 
(12,486
)
Operating EBITDA
$
50,670

 
$
41,899

 
$
149,978

 
$
139,264

Adjusted Net Income2:
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Net income
$
25,460

 
$
4,664

 
$
71,200

 
$
57,837

Adjustments:
 
 
 
 
 
 
 
Facility transactions3

 
(150
)
 

 
(10,779
)
Loss on debt extinguishment

 

 

 
174

Impairment

 
11,989

 

 
11,989

Acquisition expenses and related charges

 

 

 
819

Tax effect of aforementioned items

 
(3,078
)
 

 
(573
)
Tax reform and other discrete tax adjustments

 
3,084

 

 
3,084

Adjusted net income
$
25,460

 
$
16,509

 
$
71,200

 
$
62,551

Adjusted Diluted Earnings Per Share2:
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Diluted earnings per share
$
0.46

 
$
0.08

 
$
1.28

 
$
0.98

Adjustments:
 
 
 
 
 
 
 
Facility transactions3

 

 

 
(0.17
)
Loss on debt extinguishment

 

 

 

Impairment

 
0.21

 

 
0.20

Acquisition expenses and related charges

 

 

 
0.01

Tax effect of aforementioned items

 
(0.05
)
 

 
(0.01
)
Tax reform and other discrete tax adjustments

 
0.05

 

 
0.05

Adjusted diluted earnings per share
$
0.46

 
$
0.29

 
$
1.28

 
$
1.06

 


 


 


 


Weighted average number of diluted shares outstanding (in thousands)
55,019

 
57,742

 
55,502

 
59,218

1Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, acquisition expenses and related charges, and other non-operating income and expense.  
2Adjusted net income and adjusted earnings per diluted share reflect adjustments for acquisition expenses, the losses attributable to the Company’s extinguishment of debt, income or losses recognized on the sale and/or closure of former Company locations, a non-cash impairment of assets, and tax reform and other discrete tax adjustments. 
3Facility transactions in 2018 and 2019 relate to gains and/or losses incurred for the sale or closure of former Company locations.