Exhibit 99.1
Contact: Mark R. Holden
(765) 771-5310
FOR IMMEDIATE RELEASE
WABASH NATIONAL CORPORATION ANNOUNCES
FOURTH QUARTER AND YEAR END RESULTS
LAFAYETTE, INDIANA, February 21, 2003 . . . Wabash National Corporation (NYSE: WNC) announced today results for the three and twelve months ended December 31, 2002. Net sales for the fourth quarter were $205.9 million compared to $166.6 million for the same period last year. Net loss for the quarter was $11.6 million, compared to a loss of $134.9 million for the same period last year. For the year ended December 31, 2002, net sales were $819.6 million compared to $863.4 million for 2001. Net loss for fiscal year 2002 totaled $56.2 million, compared to a net loss of $232.2 million in 2001. Diluted loss per share was ($0.46) for the fourth quarter 2002 compared to ($5.88) per share for the fourth quarter 2001. For the twelve months ended December 31, 2002 diluted loss per share was ($2.43) compared to ($10.17) in 2001. These results are subject to the completion of discussions between the Company and its lenders before March 31, 2003, as discussed below.
Commenting on these results, William P. Greubel, President and Chief Executive Officer, stated, “Industry conditions continue to be depressed due to overall economic activity and trucking conditions, but are beginning to show some signs of improvement. We are pleased with the progress made during the quarter toward improving our operations. Our results for the fourth quarter reflect lower production volumes due to our planned holiday shutdowns and the investments that were made to implement the various quality, productivity and process
improvements in our business. In addition, we are very pleased with our ability to repay $100 million in debt during 2002, a 22% reduction in our outstanding indebtedness.”
“Based upon our 2002 results, we do not expect to meet our financial covenants in 2003. Discussions with our lenders continue regarding the Company’s performance, its outstanding indebtedness and related financial covenants. We anticipate successfully completing discussions with our lenders prior to the filing of the Company’s Form 10K due March 31, 2003. However, in the event these discussions are not successful, there will be a profound impact on the balance sheet as of December 31, 2002 as a result of the need to record various debt obligations, totaling approximately $347 million, as current liabilities on the year-end balance sheet. The result of the bank discussions should not impact the Company’s Income Statement for the twelve months ended December 31, 2002. However, it would likely have an effect on our future operating results because the Company would be constrained from a liquidity perspective and customer and supplier relationships would likely be disrupted. We are optimistic that this will be avoided by the successful completion of the discussions with our lenders.”
Wabash National Corporation designs, manufactures, and markets standard and customized truck trailers under the Wabash™ and Fruehauf® brands. The Company believes it is one of the world’s largest manufacturers of truck trailers, the leading manufacturer of composite trailers and through its RoadRailer® products, the leading manufacturer of bimodal vehicles. The Company’s wholly owned subsidiary, Wabash National Trailer Centers, is one of the leading retail distributors of new and used trailers and aftermarket parts, including its Fruehauf® and Pro-Par® brand products with locations throughout the U.S. and Canada.
This press release contains certain forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements 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 dependence on lenders to agree to amend financial covenants on favorable term, increased competition, dependence on key management, reliance on certain customers and corporate partnerships, shortages of raw materials, dependence on industry trends, export sales and new markets, acceptance of new technology and products, and government regulation. Readers should review and consider the various disclosures made by the Company in this press release and in its reports to its stockholders and periodic reports on Forms 10-K and 10-Q.
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WABASH NATIONAL CORPORATION
RESULTS OF OPERATIONS
(Dollars in Thousands, except per share amounts)
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| | | | | Three Months Ended | | Year Ended |
| | | | | December 31, (unaudited) | | December 31, (unaudited) |
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| | | | | 2002 | | 2001 | | 2002 | | 2001 |
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| Net Sales | | $ | 205,891 | | | $ | 166,646 | | | $ | 819,568 | | | $ | 863,392 | |
| Less: | | | | | | | | | | | | | | | | |
| | | Cost of Sales | | $ | 193,437 | | | $ | 251,356 | | | $ | 779,117 | | | $ | 982,605 | |
| | General & Administrative Expenses | | $ | 12,862 | | | $ | 18,870 | | | $ | 53,897 | | | $ | 56,955 | |
| | Selling Expenses | | $ | 5,948 | | | $ | 5,983 | | | $ | 23,501 | | | $ | 25,370 | |
| | Restructuring Charge | | $ | 96 | | | $ | 1,042 | | | $ | 1,813 | | | $ | 37,864 | |
| | Interest Expense | | $ | 8,861 | | | $ | 4,821 | | | $ | 30,873 | | | $ | 21,292 | |
| | Other (Income) Expense | | $ | (377 | ) | | $ | 3,757 | | | $ | 1,835 | | | $ | 6,663 | |
| | Equity in Losses of Wholly-Owned | | | | | | | | | | | | | | | | |
| | Subsidiary | | $ | 0 | | | $ | 1,535 | | | $ | 0 | | | $ | 7,668 | |
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| Income (Loss) Before Income Taxes | | $ | (14,936 | ) | | $ | (120,718 | ) | | $ | (71,468 | ) | | $ | (275,025 | ) |
| Income Tax Expense (Benefit) | | $ | (3,331 | ) | | $ | 14,230 | | | $ | (15,278 | ) | | $ | (42,857 | ) |
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| Net Income (Loss) | | $ | (11,605 | ) | | $ | (134,948 | ) | | $ | (56,190 | ) | | $ | (232,168 | ) |
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| Preferred Stock Dividends | | $ | 268 | | | $ | 442 | | | $ | 1,563 | | | $ | 1,845 | |
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| Net Income (Loss) Available to | | | | | | | | | | | | | | | | |
| Common Shareholders | | $ | (11,873 | ) | | $ | (135,390 | ) | | $ | (57,753 | ) | | $ | (234,013 | ) |
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| Basic Earnings (Loss) Per Share | | $ | (0.46 | ) | | $ | (5.88 | ) | | $ | (2.43 | ) | | $ | (10.17 | ) |
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| Weighted Average Shares Outstanding | | | 25,644,000 | | | | 23,010,000 | | | | 23,791,000 | | | | 23,006,000 | |
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| Diluted Earnings (Loss) Per Share | | $ | (0.46 | ) | | $ | (5.88 | ) | | $ | (2.43 | ) | | $ | (10.17 | ) |
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| Weighted Average Shares and | | | | | | | | | | | | | | | | |
| Equivalents Outstanding | | | 25,644,000 | | | | 23,010,000 | | | | 23,791,000 | | | | 23,006,000 | |
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| Other Data: | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | $ | 6,753 | | | $ | 7,047 | | | $ | 28,450 | | | $ | 32,143 | |
| Capital Expenditures | | | 3,004 | | | | 680 | | | | 5,705 | | | | 5,899 | |
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
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| | | | | | | December 31, | | December 31, |
| | | | | | | 2002 | | 2001 |
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| | | | ASSETS | | | | | | | | |
| CURRENT ASSETS: | | | | | | | | |
| | Cash and cash equivalents | | $ | 35,659 | | | $ | 11,135 | |
| | Accounts receivable, net | | | 38,124 | | | | 58,358 | |
| | Current portion of finance contracts | | | 9,528 | | | | 10,646 | |
| | Inventories | | | 134,872 | | | | 191,094 | |
| | Refundable income taxes | | | 911 | | | | 25,673 | |
| | Prepaid expenses and other | | | 17,388 | | | | 17,231 | |
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| | | Total current assets | | | 236,482 | | | | 314,137 | |
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| PROPERTY, PLANT AND EQUIPMENT, net | | | 145,703 | | | | 170,330 | |
| EQUIPMENT LEASED TO OTHERS, net | | | 100,837 | | | | 109,265 | |
| FINANCE CONTRACTS, net of current portion | | | 22,488 | | | | 40,187 | |
| INTANGIBLE ASSETS, net | | | 40,646 | | | | 43,777 | |
| OTHER ASSETS | | | 23,141 | | | | 14,808 | |
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| | | | | | | $ | 569,297 | | | $ | 692,504 | |
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| | | | LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
| CURRENT LIABILITIES: | | | | | | | | |
| | Current maturities of long-term debt | | $ | 61,021 | | | $ | 60,682 | |
| | Current maturities of capital lease obligations | | | 12,860 | | | | 21,559 | |
| | Accounts payable | | | 60,457 | | | | 51,351 | |
| | Accrued liabilities | | | 65,246 | | | | 69,246 | |
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| | | Total current liabilities | | | 199,584 | | | | 202,838 | |
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| LONG-TERM DEBT, net of current maturities | | | 220,983 | | | | 274,021 | |
| LONG-TERM CAPITAL LEASE OBLIGATIONS, net of current maturities | | | 51,993 | | | | 55,755 | |
| OTHER NONCURRENT LIABILITIES AND CONTINGENCIES | | | 22,847 | | | | 28,905 | |
| STOCKHOLDERS’ EQUITY | | | 73,890 | | | | 130,985 | |
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| | | | | | | $ | 569,297 | | | $ | 692,504 | |
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