Exhibit 99.1
| | | | | |
Press Contact: Jim Hasty
VP, Marketing and Sales
(765) 771-5487 | |  | | Investor Relations:
(765) 771-5310 |
Wabash National Corporation Announces
Third Quarter and Year-To-Date Results
LAFAYETTE, Ind. — October 30, 2008 — Wabash National Corporation (NYSE: WNC) reported a net loss of $4.3 million, or $0.14 per share, for the third quarter of 2008 on net sales of $243.0 million. For the same quarter last year, the Company reported net income of $3.8 million, or $0.12 per share, on sales of $291.0 million. For the nine months ended September 30, 2008, the net loss totaled $13.9 million or $0.47 per share on sales of $605.5 million. For the comparable period of 2007, net income totaled $10.6 million, or $0.35 per share, on sales of $844.7 million.
Dick Giromini, President and Chief Executive Officer, stated, “Results for the quarter matched our previously stated expectations. We achieved noteworthy progress on our cost containment initiatives and improved production volume during the quarter. However, these gains were more than offset by unprecedented raw material price increases which adversely impacted gross margins during the quarter. We continue to expect that new trailer unit shipments for the year will be in the 32,000 to 33,000 unit range. However, the fourth quarter will be the most difficult of the year, as we expect the imbalance between raw material costs and selling prices to reach a peak. Additionally, given the holiday season and our annual year-end shutdown, we will operate with fewer production days during the fourth quarter. As of September 30, 2008, the Company’s backlog was approximately $283 million compared to $393 million at June 30, 2008.”
“We have been operating in an extremely challenging economic environment and we expect continued economic turbulence, specifically as it relates to raw material prices and demand levels. However, challenging times present opportunity. We continue to be well positioned in our industry with our strong customer relationships and market share, solid financial position, streamlined manufacturing footprint, and an unmatched suite of products. These important differentiators will help distance us from the competition. We will continue to successfully implement cost control and efficiency improvements, while we size the business to match demand. While our key strategic initiatives and cost management efforts have mitigated the effects of the downturn, they provide us with a leaner, more efficient foundation from which to grow long-term profitability.”
Wabash National Corporation will conduct a conference call to review and discuss its third quarter results on Thursday, October 30, 2008, at 10:00 a.m. EDT. The phone number to access the conference call is 877-407-8035. The call can also be accessed live on the company’s website atwww.wabashnational.com. For those unable to participate in the live webcast, the call will be archived atwww.wabashnational.com within three hours of the conclusion of the live call and will remain available through December 28, 2008.
Headquartered in Lafayette, Ind., Wabash National® Corporation (NYSE: WNC) is one of the leading manufacturers of semi trailers in North America. Established in 1985, the company specializes in the design and production of dry freight vans, refrigerated vans, flatbed trailers, drop deck trailers, dump trailers, truck bodies and intermodal equipment. Its innovative core products are sold under the DuraPlate®, ArcticLite®, FreightPro™ Eagle® and Benson™ brand names. The company operates two wholly-owned subsidiaries; Transcraft® Corporation, a manufacturer of flatbed, drop deck, dump trailers and truck bodies; and Wabash National Trailer Centers, trailer service centers and retail distributors of new and used trailers and aftermarket parts throughout the U.S.
This press release contains certain forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements including statements about the company’s expectations for improvement in future results are, however, subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Without limitation, these risks and uncertainties include increased competition, reliance on certain customers and corporate partnerships, risks of customer pick-up delays, shortages and costs of raw materials, risks in implementing and sustaining improvements in our manufacturing capacity and cost containment, and dependence on industry trends. Readers should review and consider the various disclosures made by the company in this press release and in the company’s reports to its stockholders and periodic reports on Forms 10-K and 10-Q.
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WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| NET SALES | | $ | 242,953 | | | $ | 291,017 | | | $ | 605,498 | | | $ | 844,720 | |
| COST OF SALES | | | 233,965 | | | | 266,424 | | | | 579,832 | | | | 772,110 | |
| | | | | | | | | | | | | |
| Gross profit | | | 8,988 | | | | 24,593 | | | | 25,666 | | | | 72,610 | |
| GENERAL AND ADMINISTRATIVE EXPENSES | | | 10,060 | | | | 13,173 | | | | 32,016 | | | | 38,332 | |
| SELLING EXPENSES | | | 3,420 | | | | 3,916 | | | | 10,189 | | | | 12,029 | |
| | | | | | | | | | | | | |
| (Loss) Income from operations | | | (4,492 | ) | | | 7,504 | | | | (16,539 | ) | | | 22,249 | |
| OTHER INCOME (EXPENSE) | | | | | | | | | | | | | | | | |
| Interest expense | | | (1,154 | ) | | | (1,416 | ) | | | (3,349 | ) | | | (4,410 | ) |
| Foreign exchange, net | | | (85 | ) | | | 65 | | | | (91 | ) | | | 461 | |
| Gain on debt extinguishment | | | — | | | | — | | | | 151 | | | | — | |
| Other, net | | | 113 | | | | (86 | ) | | | (83 | ) | | | (592 | ) |
| | | | | | | | | | | | | |
| (Loss) Income before income taxes | | | (5,618 | ) | | | 6,067 | | | | (19,911 | ) | | | 17,708 | |
| INCOME TAX (BENEFIT) EXPENSE | | | (1,288 | ) | | | 2,289 | | | | (5,991 | ) | | | 7,059 | |
| | | | | | | | | | | | | |
| NET (LOSS) INCOME | | $ | (4,330 | ) | | $ | 3,778 | | | $ | (13,920 | ) | | $ | 10,649 | |
| | | | | | | | | | | | | |
| COMMON STOCK DIVIDENDS DECLARED | | $ | 0.045 | | | $ | 0.045 | | | $ | 0.135 | | | $ | 0.135 | |
| | | | | | | | | | | | | |
| BASIC NET (LOSS) INCOME PER SHARE | | $ | (0.14 | ) | | $ | 0.13 | | | $ | (0.47 | ) | | $ | 0.35 | |
| | | | | | | | | | | | | |
| DILUTED NET (LOSS) INCOME PER SHARE | | $ | (0.14 | ) | | $ | 0.12 | | | $ | (0.47 | ) | | $ | 0.35 | |
| | | | | | | | | | | | | |
| COMPREHENSIVE (LOSS) INCOME | | | | | | | | | | | | | | | | |
| Net (loss) income | | $ | (4,330 | ) | | $ | 3,778 | | | $ | (13,920 | ) | | $ | 10,649 | |
| Changes in fair value of derivatives (net of tax) | | $ | (140 | ) | | $ | — | | | $ | (140 | ) | | $ | — | |
| Foreign currency translation adjustment | | | — | | | | 113 | | | | — | | | | 339 | |
| | | | | | | | | | | | | |
| NET COMPREHENSIVE (LOSS) INCOME | | $ | (4,470 | ) | | $ | 3,891 | | | $ | (14,060 | ) | | $ | 10,988 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Retail & | | | | |
| | | Manufacturing | | Distribution | | Eliminations | | Total |
Three months ended September 30, | | | | | | | | | | | | | | | | |
2008 | | | | | | | | | | | | | | | | |
| Net sales | | $ | 217,657 | | | $ | 43,115 | | | $ | (17,819 | ) | | $ | 242,953 | |
| (Loss) Income from operations | | $ | (3,221 | ) | | $ | (1,381 | ) | | $ | 110 | | | $ | (4,492 | ) |
| New trailers shipped | | | 9,600 | | | | 900 | | | | (800 | ) | | $ | 9,700 | |
| | | | | | | | | | | | | | | | | |
2007 | | | | | | | | | | | | | | | | |
| Net sales | | $ | 270,054 | | | $ | 34,714 | | | $ | (13,751 | ) | | $ | 291,017 | |
| Income (loss) from operations | | $ | 8,165 | | | $ | (699 | ) | | $ | 38 | | | $ | 7,504 | |
| New trailers shipped | | | 12,100 | | | | 600 | | | | (600 | ) | | | 12,100 | |
| | | | | | | | | | | | | | | | | |
Nine months ended September 30, | | | | | | | | | | | | | | | | |
2008 | | | | | | | | | | | | | | | | |
| Net sales | | $ | 536,038 | | | $ | 112,329 | | | $ | (42,869 | ) | | $ | 605,498 | |
| (Loss) Income from operations | | $ | (14,613 | ) | | $ | (2,767 | ) | | $ | 841 | | | $ | (16,539 | ) |
| New trailers shipped | | | 23,900 | | | | 2,000 | | | | (1,900 | ) | | $ | 24,000 | |
| | | | | | | | | | | | | | | | | |
2007 | | | | | | | | | | | | | | | | |
| Net sales | | $ | 777,211 | | | $ | 117,569 | | | $ | (50,060 | ) | | $ | 844,720 | |
| Income (loss) from operations | | $ | 24,212 | | | $ | (1,337 | ) | | $ | (626 | ) | | $ | 22,249 | |
| New trailers shipped | | | 35,600 | | | | 2,300 | | | | (2,300 | ) | | | 35,600 | |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | September 30, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| Basic net (loss) income per share | | | | | | | | | | | | | | | | |
| Net (loss) income applicable to common stockholders | | $ | (4,330 | ) | | $ | 3,778 | | | $ | (13,920 | ) | | $ | 10,649 | |
| | | | | | | | | | | | | |
| Weighted average common shares outstanding | | | 29,993 | | | | 29,874 | | | | 29,933 | | | | 30,132 | |
| | | | | | | | | | | | | |
| Basic net (loss) income per share | | $ | (0.14 | ) | | $ | 0.13 | | | $ | (0.47 | ) | | $ | 0.35 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Diluted net (loss) income per share | | | | | | | | | | | | | | | | |
| Net (loss) income applicable to common stockholders | | $ | (4,330 | ) | | $ | 3,778 | | | $ | (13,920 | ) | | $ | 10,649 | |
| After-tax equivalent of interest on convertible notes | | | — | | | | 741 | | | | — | | | | 2,222 | |
| | | | | | | | | | | | | |
| Diluted net (loss) income applicable to common stockholders | | $ | (4,330 | ) | | $ | 4,519 | | | $ | (13,920 | ) | | $ | 12,871 | |
| |
| Weighted average common shares outstanding | | | 29,993 | | | | 29,874 | | | | 29,933 | | | | 30,132 | |
| Dilutive stock options/shares | | | — | | | | 234 | | | | — | | | | 255 | |
| Convertible notes equivalent shares | | | — | | | | 6,692 | | | | — | | | | 6,675 | |
| | | | | | | | | | | | | |
| Diluted weighted average common shares outstanding | | | 29,993 | | | | 36,800 | | | | 29,933 | | | | 37,062 | |
| | | | | | | | | | | | | |
| Diluted net (loss) income per share | | $ | (0.14 | ) | | $ | 0.12 | | | $ | (0.47 | ) | | $ | 0.35 | |
| | | | | | | | | | | | | |
Average diluted shares outstanding for the three and nine month periods ended September 30, 2008 exclude the antidilutive effects of the Company’s Convertible Notes. For the three and nine month periods ended September 30, 2008, the after-tax equivalent of interest on Convertible Notes was $0.1 million and $0.8 million, respectively, and the Convertible Notes equivalent shares were 0.5 million and 2.3 million, respectively. Diluted shares outstanding for the three and nine month periods ended September 30, 2008 also exclude the antidilutive effects of potentially dilutive stock options and restricted stock totaling approximately 125,000 and 107,000 shares of common stock, respectively.
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
| | | | | | | | | |
| | | September 30, | | | December 31, | |
| | | 2008 | | | 2007 | |
| | | (Unaudited) | | | | | |
ASSETS
|
| CURRENT ASSETS | | | | | | | | |
| Cash and cash equivalents | | $ | 12,345 | | | $ | 41,224 | |
| Accounts receivable, net | | | 75,856 | | | | 68,752 | |
| Inventories | | | 132,841 | | | | 113,125 | |
| Deferred income taxes | | | 15,248 | | | | 14,514 | |
| Prepaid expenses and other | | | 3,715 | | | | 4,046 | |
| | | | | | | |
| Total current assets | | | 240,005 | | | | 241,661 | |
| | | | | | | | | |
| PROPERTY, PLANT AND EQUIPMENT, net | | | 122,221 | | | | 122,063 | |
| | | | | | | | | |
| DEFERRED INCOME TAXES | | | 7,887 | | | | 2,772 | |
| | | | | | | | | |
| GOODWILL | | | 66,317 | | | | 66,317 | |
| | | | | | | | | |
| INTANGIBLE ASSETS | | | 29,925 | | | | 32,498 | |
| | | | | | | | | |
| OTHER ASSETS | | | 16,536 | | | | 18,271 | |
| | | | | | | |
| | | $ | 482,891 | | | $ | 483,582 | |
| | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| CURRENT LIABILITIES | | | | | | | | |
| Current portion of capital lease obligation | | $ | 590 | | | $ | — | |
| Accounts payable | | | 80,496 | | | | 40,787 | |
| Other accrued liabilities | | | 48,496 | | | | 54,258 | |
| | | | | | | |
| Total current liabilities | | | 129,582 | | | | 95,045 | |
| | | | | | | | | |
| LONG-TERM DEBT | | | 79,000 | | | | 104,500 | |
| | | | | | | | | |
| CAPITAL LEASE OBLIGATION | | | 4,636 | | | | — | |
| | | | | | | | | |
| OTHER NONCURRENT LIABILITIES AND CONTINGENCIES | | | 4,481 | | | | 4,108 | |
| | | | | | | | | |
| STOCKHOLDERS’ EQUITY | | | 265,192 | | | | 279,929 | |
| | | | | | | |
| | | $ | 482,891 | | | $ | 483,582 | |
| | | | | | | |
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
| | | | | | | | | |
| | | Nine Months Ended September 30, | |
| | | 2008 | | | 2007 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | |
| Net (loss) income | | $ | (13,920 | ) | | $ | 10,649 | |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities | | | | | | | | |
| Depreciation and amortization | | | 15,535 | | | | 14,477 | |
| Net loss on the sale of assets | | | 236 | | | | 106 | |
| Gain on early debt extinguishment | | | (151 | ) | | | — | |
| Deferred income taxes | | | (5,849 | ) | | | 6,596 | |
| Excess tax benefits from stock-based compensation | | | (6 | ) | | | (33 | ) |
| Stock-based compensation | | | 3,452 | | | | 3,213 | |
| Changes in operating assets and liabilities | | | | | | | | |
| Accounts receivable | | | (7,104 | ) | | | 10,120 | |
| Inventories | | | (19,716 | ) | | | (21,211 | ) |
| Prepaid expenses and other | | | 2,028 | | | | 2,260 | |
| Accounts payable and accrued liabilities | | | 33,705 | | | | (9,991 | ) |
| Other, net | | | 81 | | | | 826 | |
| | | | | | | |
| Net cash provided by operating activities | | | 8,291 | | | | 17,012 | |
| | | | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | |
| Capital expenditures | | | (8,037 | ) | | | (5,196 | ) |
| Acquisition, net of cash acquired | | | — | | | | (4,500 | ) |
| Proceeds from the sale of property, plant and equipment | | | 131 | | | | 124 | |
| | | | | | | |
| Net cash used in investing activities | | | (7,906 | ) | | | (9,572 | ) |
| | | | | | | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | |
| Proceeds from exercise of stock options | | | 97 | | | | 74 | |
| Excess tax benefits from stock-based compensation | | | 6 | | | | 33 | |
| Borrowings under revolving credit facilities | | | 139,250 | | | | 99,424 | |
| Payments under revolving credit facilities | | | (60,250 | ) | | | (99,424 | ) |
| Payments under long-term obligations | | | (104,133 | ) | | | — | |
| Principal payments under capital lease obligation | | | (107 | ) | | | — | |
| Repurchases of common stock | | | — | | | | (11,668 | ) |
| Common stock dividends paid | | | (4,127 | ) | | | (4,107 | ) |
| | | | | | | |
| Net cash used in financing activities | | | (29,264 | ) | | | (15,668 | ) |
| | | | | | | |
| | | | | | | | | |
| NET DECREASE IN CASH AND CASH EQUIVALENTS | | | (28,879 | ) | | | (8,228 | ) |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | | | 41,224 | | | | 29,885 | |
| | | | | | | |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | | $ | 12,345 | | | $ | 21,657 | |
| | | | | | | |
