Wabash National (WNC) 8-K Wabash National Corporation Announces Second Quarter and Year-to-date Results

EXHIBIT 99.1

Press Contact: Tom Rodak
Marketing and Communications Manager
(765) 771-5535 Investor Relations:
(765) 771-5310

WABASH NATIONAL CORPORATION ANNOUNCES
SECOND QUARTER AND YEAR-TO-DATE RESULTS

LAFAYETTE, Ind., — July 20, 2005 — Wabash National Corporation (NYSE: WNC) today announced results for the three and six month periods ended June 30, 2005. Net sales for the quarter were $323 million compared to $255 million for the same period last year. Net income for the quarter was $49 million or $1.33 diluted earnings per share, compared to $18 million or $0.56 per diluted share for the same period last year. For the six months ended June 30, 2005, net sales were $579 million compared to $476 million for 2004. Net income for the first six months of 2005 totaled $68 million or $1.85 per diluted share, compared to $25 million or $0.80 per diluted share last year. Included in the results for the 2005 second quarter and year-to-date periods was a reversal of a valuation allowance for deferred tax assets amounting to $29 million or $0.77 per diluted share.

Commenting on the quarter, Bill Greubel, President and Chief Executive Officer, stated: “Against historic norms, we had a great quarter. Units shipped were at record levels, our customer base continues to grow substantially, and our retail side of the business was profitable for the second straight quarter. That said, we missed on some key operating metrics due in part due to the cancellation of a 2,000 unit order, which was to be produced in June and caused scheduling challenges. Additionally, we encountered production delays due to associate turnover and a sharper focus on quality. These issues created increased manufacturing cycle times and high levels of rework which reduced shippable units and compressed margins. Corrective actions initiated in June will continue in the third quarter. It’s been a painful process but we’re going to be a lot better off for this effort going forward.”

“Quote and order activity moderated during the quarter, in line with seasonal patterns. We expect to continue to grow our customer base through the year. However, given the large size of the cancellation taken in the quarter and our continuing efforts on the plant floor, our expectation for trailer shipments in 2005 is approximately 58,000 units versus our goal of 60,000 units. Currently, we have booked orders for approximately 90% of the 58,000 units.”

-More-

Backlog at June 30, 2005 amounted to approximately $380 million vs. $500 million at March 31, 2005 reflecting the normal cycle of order placement and production.

Wabash will conduct a conference call to review and discuss its second quarter financial results on Thursday, July 21, 2005, at 10:00 a.m. Eastern time. The phone number to access the conference call is 877-407-8035. The call can also be accessed live on the Company’s Internet website at http://www.wabashnational.com. For those unable to participate in the live webcast, the call will be archived at http://www.wabashnational.com within three hours of the conclusion of the live call and will remain available through August 11, 2005.

Wabash National Corporation designs, manufactures, and markets standard and customized truck trailers under the Wabash^® brand name. The Company is one of the world’s largest manufacturers of truck trailers and a leading manufacturer of composite trailers. 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 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 increased competition, reliance on certain customers and corporate partnerships, shortages and costs of raw materials, continued 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 its 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
(in thousands, except per share amounts)
(Unaudited)

	Three Months						Six Months
	Ended June 30,						Ended June 30,
	2005			2004			2005			2004
NET SALES	$	322,983		$	254,899		$	579,088		$	476,496
COST OF SALES		286,874			218,264			508,581			416,739
Gross profit		36,109			36,635			70,507			59,757
GENERAL AND ADMINISTRATIVE EXPENSES		10,213			10,309			19,431			20,782
SELLING EXPENSES		3,966			3,851			7,962			7,626
Income from operations		21,930			22,475			43,114			31,349
OTHER INCOME (EXPENSE):
Interest expense		(1,605	)		(2,769	)		(3,223	)		(5,666	)
Foreign exchange gains and losses, net		(310	)		(405	)		(452	)		(545	)
Other, net		(205	)		(540	)		(997	)		482
Income before income taxes		19,810			18,761			38,442			25,620
INCOME TAX (BENEFIT) EXPENSE		(29,448	)		499			(29,295	)		499
Net income	$	49,258		$	18,262		$	67,737		$	25,121
COMMON STOCK DIVIDENDS	$	0.045		$	—		$	0.09		$	—
BASIC NET INCOME PER SHARE	$	1.58		$	0.67		$	2.18		$	0.93
DILUTED NET INCOME PER SHARE	$	1.33		$	0.56		$	1.85		$	0.80
COMPREHENSIVE INCOME Net income	$	49,258		$	18,262		$	67,737		$	25,121
Foreign currency translation adjustment		(183	)		(593	)		(381	)		(822	)
NET COMPREHENSIVE INCOME	$	49,075		$	17,669		$	67,356		$	24,299

					Retail &
Three months ended			Manufacturing		Distribution			Eliminations			Total
		2005
	Net Sales		$	288,014	$	61,367		$	(26,398	)	$	322,983
	Operating Results		$	20,927	$	869		$	134		$	21,930
		2004
	Net Sales		$	227,839	$	61,185		$	(34,125	)	$	254,899
	Operating Results		$	24,933	$	(141	)	$	(2,317	)	$	22,475
Six months ended
		2005
	Net Sales		$	519,679	$	123,400		$	(63,991	)	$	579,088
	Operating Results		$	42,768	$	1,707		$	(1,361	)	$	43,114
		2004
	Net Sales		$	416,035	$	118,727		$	(58,266	)	$	476,496
	Operating Results		$	35,705	$	(2,056	)	$	(2,300	)	$	31,349

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2005		2004		2005		2004
Basic net income per share:
Net income applicable to common stockholders	$	49,258	$	18,262	$	67,737	$	25,121
Weighted average common shares outstanding		31,194		27,145		31,055		27,067
Basic net income per share	$	1.58	$	0.67	$	2.18	$	0.93
Diluted net income per share:
Net income applicable to common stockholders	$	49,258	$	18,262	$	67,737	$	25,121
After-tax equivalent of interest on convertible notes		1,234		1,204		2,445		2,408
Diluted net income applicable to common stockholders	$	50,492	$	19,466	$	70,182	$	27,529
Weighted average common shares outstanding		31,194		27,145		31,055		27,067
Dilutive stock options/shares		243		906		375		946
Convertible notes equivalent shares		6,510		6,510		6,510		6,510
Diluted weighted average common shares outstanding		37,947		34,561		37,940		34,523
Diluted net income per share	$	1.33	$	0.56	$	1.85	$	0.80

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

	June 30, 2005		December 31, 2004
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	39,869	$	41,928
Accounts receivable, net		109,674		87,512
Current portion of finance contracts		2,196		2,185
Inventories		139,954		94,600
Deferred income taxes		8,253		—
Prepaid expenses and other		7,961		14,425
Total current assets		307,907		240,650
PROPERTY, PLANT AND EQUIPMENT, net		125,443		124,701
EQUIPMENT LEASED TO OTHERS, net		9,892		14,030
FINANCE CONTRACTS, net of current portion		1,549		3,319
GOODWILL		34,193		34,511
DEFERRED INCOME TAXES		27,289		—
OTHER ASSETS		18,894		14,835
	$	525,167	$	432,046
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt	$	1,500	$	2,000
Accounts payable		102,434		78,107
Other accrued liabilities		47,305		52,442
Total current liabilities		151,239		132,549
LONG-TERM DEBT, net of current maturities		125,000		125,500
OTHER NONCURRENT LIABILITIES AND CONTINGENCIES		9,128		9,423
STOCKHOLDERS’ EQUITY		239,800		164,574
	$	525,167	$	432,046

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

	Six Months
	Ended June 30,
	2005			2004
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	67,737		$	25,121
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		8,276			9,895
Net (gain) loss on the sale of assets		684			(473	)
Recovery of losses on accounts receivable and finance contracts		(84	)		(134	)
Deferred income taxes		(29,304	)		—
Trailer valuation charges		103			169
Change in operating assets and liabilities:
Accounts receivable		(22,078	)		(27,975	)
Finance contracts		1,645			2,204
Inventories		(45,405	)		(20,530	)
Prepaid expenses and other		1,139			374
Accounts payable and accrued liabilities		21,067			17,714
Other, net		901			(91	)
Net cash provided by operating activities		4,681			6,274
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(13,796	)		(3,936	)
Proceeds from the sale of property, plant and equipment		5,852			2,104
Net cash used in investing activities		(7,944	)		(1,832	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		3,610			3,163
Borrowings under revolving credit facilities		15,786			331,975
Payments under revolving credit facilities		(15,786	)		(341,399	)
Payments under long-term debt agreements		(1,000	)		(5,088	)
Common stock dividends paid		(1,406	)		—
Net cash provided by (used in) financing activities		1,204			(11,349	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(2,059	)		(6,907	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		41,928			12,552
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	39,869		$	5,645