Press Contact: Jim Hasty VP, Marketing & Sales Administration (765) 771-5487 | | Investor Relations: (765) 771-5310 |
FOR IMMEDIATE RELEASE
Wabash National Corporation Announces
Second Quarter Results
LAFAYETTE, Ind. – August 5, 2009 – Wabash National Corporation (NYSE: WNC) reported a net loss of $17.9 million, or $0.59 per diluted share, for the second quarter of 2009 on net sales of $86 million. For the same quarter last year, the Company reported a net loss of $3.2 million, or $0.11 per diluted share. Second quarter new trailer sales totaled 3,200 units, which represents a 60% decline from the prior year period.
Dick Giromini, President and Chief Executive Officer, stated, “Following the quarter end, as previously announced, we completed the steps to strengthen our balance sheet and liquidity position, which provides us with additional financial flexibility to navigate the current environment. In addition, we reported a significantly reduced operating loss this quarter as compared to the prior two quarters despite the continuing depressed level of trailer demand, reflecting the flow through benefit of our cost reduction efforts. While we will continue to prudently manage the business in the near term, we remain committed to our long-term transformation initiatives and are now well-positioned for profitable growth as the economy recovers.”
Sequential Improvement in Operating Results
Operating results for the 2009 second quarter were substantially improved compared to the results for the prior two quarters in spite of continued depressed demand for new trailers. Operating losses amounted to $16.7 million, $27.3 million and $87.2 million (including a goodwill impairment charge of $66.3 million) for the quarters ended June 30, 2009, March 31, 2009 and December 31, 2008, respectively. Contributors to this improvement include:
• reductions in raw material and component costs, excluding the impact of unfavorable aluminum contracts,
• cost reduction initiatives that include base pay reductions for all associates as well as salaried headcount reductions of approximately 130 associates, and
• substantial reductions in the manufacturing footprint through completion of the Lafayette Transformation project.
Securities Purchase Agreement and Amended Revolving Credit Facility
On August 3, 2009, the Company announced that Trailer Investments, LLC, an entity formed for this purpose by Lincolnshire Equity Fund III, L.P., a private equity investment fund managed by Lincolnshire Management, Inc., had invested $35 million in the Company. For its investment Trailer Investments received preferred stock and a warrant that is immediately exercisable at $0.01 per share for 24,762,636 newly issued shares of common stock representing 44.21% of the issued and outstanding common stock of the Company. Wabash National received cash, net of fees and expenses paid, of $33 million and will use the proceeds to reduce borrowings and for general corporate purposes.
Concurrently, the Company entered into an Amended and Restated Loan and Security Agreement, which amends and restates the Company’s current revolving credit facility. The revolving credit facility, as amended, provides for borrowings of up to $100 million, subject to a borrowing base and applicable reserves. Additionally, the lenders have agreed to waive specified defaults previously incurred by the Company. As a result of the Securities Purchase Agreement and the Amended Revolving Credit Facility, the Company’s liquidity, define as cash on hand and available borrowing capacity, on August 3, 2009, the date of closing, was approximately $42 million.
Second Quarter 2009 Conference Call
Wabash National Corporation will conduct a conference call to review and discuss its second quarter results on August 6, 2009, 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 at www.wabashnational.com. For those unable to participate in the live webcast, the call will be archived at www.wabashnational.com within three hours of the conclusion of the live call and will remain available through October 29, 2009.
About Wabash National Corporation
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®, FreightProTM, Eagle®, and BensonTM 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.
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, the sufficiency of the Company’s capital structure, the needs of the Company in the future and whether profitability can be achieved. 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 current contraction in demand for transportation equipment associated with current economic conditions, 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, uncertainty in the outcome of our discussions with lenders, 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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