Media Contact: Dana Stelsel Corporate Communications Manager (765) 771-5766 dana.stelsel@wabashnational.com |  |
| | |
Investor Relations: Jeff Taylor Senior Vice President and Chief Financial Officer (765) 771-5438 jeff.taylor@wabashnational.com | |
FOR IMMEIDATE RELEASE
Wabash National Corporation Announces First Quarter 2014 Results
LAFAYETTE, Ind. – April 28, 2014 – Wabash National Corporation (NYSE: WNC), a diversified industrial manufacturer and North America’s leading producer of semi-trailers and liquid transportation systems, today reported results for the first quarter ended March 31, 2014. Highlights include:
| · | Net sales of $358 million for first quarter 2014, up 10 percent over prior year |
| · | Operating income of $19.5 million for first quarter 2014, up 31 percent over prior year |
| · | Non-GAAP adjusted earnings per share improves 33 percent from prior year to $0.12 per diluted share |
Net income for the first quarter of 2014 was $7.3 million, or $0.10 per diluted share, compared to the first quarter 2013 net income of $5.7 million, or $0.08 per diluted share. First quarter 2014 non-GAAP adjusted earnings were $8.3 million, or $0.12 per diluted share, after excluding a $1.0 million charge related to a change in statutory income tax rates. The Company’s prior year period results included the impact of one-time costs related to the acquisitions of Walker Group Holdings, LLC (“Walker”) in May 2012 and certain assets of Beall Corporation (“Beall”) in February 2013 totaling $0.6 million, or $0.01 per diluted share. Excluding the impact of these items, non-GAAP adjusted earnings for the quarter ended March 31, 2013 were $6.1 million, or $0.09 per diluted share.
For the first quarter of 2014, the Company’s net sales increased 10 percent to $358 million from $324 million in the prior year quarter, and operating income increased 31 percent to $19.5 million compared to operating income of $14.9 million for the first quarter of 2013. Operating EBITDA, a non-GAAP measure that excludes the effects of costs related to the acquisitions of Walker and certain assets of Beall, as well as other recurring and non-recurring items, for the first quarter of 2014 was $30.6 million, an increase of $3.5 million compared to Operating EBITDA for the previous year period. On a trailing twelve month basis, the Company’s net sales increased to $1.7 billion generating Operating EBITDA of $153.4 million, or 9.2 percent of net sales. Continued improvement in operating performance is attributable to the successful execution of the Company’s growth and diversification strategy as well as a disciplined approach to improving profitability. Through these initiatives the Company has enhanced its growth and margin profile and now derives its revenues and earnings from a broad array of products, customers, end markets and geographies.
The following is a summary of select operating and financial results for the past five quarters:
| | | Three Months Ended | |
| | | March 31, | | | June 30, | | | September 30, | | | December 31, | | | March 31, | |
| (Dollars in thousands) | | 2013 | | | 2013 | | | 2013 | | | 2013 | | | 2014 | |
| | | | | | | | | | | | | | | | |
| Net Sales | | $ | 324,229 | | | $ | 413,126 | | | $ | 439,977 | | | $ | 458,354 | | | $ | 358,120 | |
| | | | | | | | | | | | | | | | | | | | | |
| Gross Profit Margin | | | 13.0 | % | | | 14.2 | % | | | 14.0 | % | | | 11.5 | % | | | 13.0 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Income from Operations | | $ | 14,856 | (1) | | $ | 30,452 | (1) | | $ | 33,830 | (1) | | $ | 24,053 | | | $ | 19,465 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Income | | $ | 5,735 | (1) | | $ | 14,135 | (1) | | $ | 16,236 | (1) | | $ | 10,423 | | | $ | 7,296 | |
| | | | | | | | | | | | | | | | | | | | | |
| Diluted EPS | | $ | 0.08 | | | $ | 0.20 | | | $ | 0.23 | | | $ | 0.15 | | | $ | 0.10 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-GAAP Measures(2): | | | | | | | | | | | | | | | | | | | | |
| Operating EBITDA | | $ | 27,134 | | | $ | 42,246 | | | $ | 44,873 | | | $ | 35,637 | | | $ | 30,618 | |
| | | | | | | | | | | | | | | | | | | | | |
| Operating EBITDA Margin | | | 8.4 | % | | | 10.2 | % | | | 10.2 | % | | | 7.8 | % | | | 8.5 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Adjusted Earnings | | $ | 6,106 | | | $ | 14,697 | | | $ | 16,616 | | | $ | 10,770 | | | $ | 8,337 | |
| | | | | | | | | | | | | | | | | | | | | |
| Adjusted Diluted EPS | | $ | 0.09 | | | $ | 0.21 | | | $ | 0.24 | | | $ | 0.15 | | | $ | 0.12 | |
Notes:
| (1) | Quarterly Income from Operations and Net Income include charges of $0.6 million, $0.2 million and less than $0.1 million for the first, second and third quarters of 2013, respectively, in connection with the Company’s acquisitions of Walker and certain assets of Beall. |
| (2) | See “Non-GAAP Measures” below for explanation of the non-GAAP results included above. |
Dick Giromini, president and chief executive officer, stated, “We are very pleased with our first quarter performance and the strong start to the current year across all of our operating segments. We maintained the momentum we generated in 2013 and further validated the transformative nature of our growth and diversification initiatives. We generated strong growth and healthy margins across each of our three operating segments, which gives us confidence in our business as we look to the remainder of 2014.”
Mr. Giromini continued, “New trailer shipments for the first quarter were approximately 9,900, at the top end of our previous guidance of 9,000 to 10,000 trailers. We were encouraged by the overall strength of the demand in the first quarter taking into account the difficulties most of our customers faced due to the extreme weather conditions throughout much of the country, which limited our ability to ship trailers in the quarter. The recent upward adjustments to total trailer shipments and production by ACT Research and FTR, respectively, further support the strength in trailer demand and substantiate our prior guidance for top line growth compared to last year. As such, we affirm our full-year trailer shipment guidance of 47,000 to 50,000 units. Our backlog remains healthy at approximately $791 million as of March 31, 2014, an increase of approximately $117 million, or 17 percent, from March 31, 2013. Additionally, current industry forecasts point to strong demand levels with projections well above replacement demand and exceeding previous year levels. Based on these factors coupled with direct customer feedback regarding their needs, we continue to believe 2014 has the potential to exceed the record performances achieved last year.”
First Quarter 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 first quarter of 2014 and 2013, respectively. A complete disclosure of the results by individual segment is included in the tables following this release.
| (dollars in thousands) | | Commercial | | | Diversified | | | | |
| | | Trailer Products | | | Products | | | Retail | |
| Three months ended March 31, | | | | | | | | | |
| 2014 | | | | | | | | | | | | |
| New trailers shipped | | | 9,200 | | | | 800 | | | | 800 | |
| Net sales | | $ | 227,450 | | | $ | 119,949 | | | $ | 45,636 | |
| Gross profit | | $ | 14,941 | | | $ | 25,439 | | | $ | 5,381 | |
| Gross profit margin | | | 6.6 | % | | | 21.2 | % | | | 11.8 | % |
| Income from operations | | $ | 8,931 | | | $ | 12,857 | | | $ | 1,050 | |
| Income from operations margin | | | 3.9 | % | | | 10.7 | % | | | 2.3 | % |
| | | | | | | | | | | | | |
| 2013 | | | | | | | | | | | | |
| New trailers shipped | | | 8,000 | | | | 600 | | | | 600 | |
| Net sales | | $ | 198,077 | | | $ | 111,994 | | | $ | 40,843 | |
| Gross profit | | $ | 11,634 | | | $ | 25,928 | | | $ | 4,880 | |
| Gross profit margin | | | 5.9 | % | | | 23.2 | % | | | 11.9 | % |
| Income from operations | | $ | 5,320 | | | $ | 13,519 | | | $ | 873 | |
| Income from operations margin | | | 2.7 | % | | | 12.1 | % | | | 2.1 | % |
Commercial Trailer Products’ net sales increased $29 million, or 14.8 percent, on shipments of 9,200 trailers, or 1,200 more trailers than the prior year period. This increase in revenue was primarily due to the 15.0 percent increase in trailer shipments during the quarter, offset by a 2.7 percent reduction in average selling prices compared to the prior year period due to customer and product mix. Driven by higher volumes, gross profit and gross profit margin increased $3.3 million and 70 basis points, respectively, as compared to the same period last year. Operating income increased by $3.6 million to $8.9 million from the first quarter last year, due to increased volume and continued operational improvements.
Diversified Products’ net sales increased $8 million, or 7.1 percent, primarily attributed to increased tank trailer shipments as compared to the previous year period. Gross profit and gross profit margin declined $0.5 million and 200 basis points, respectively, compared to the prior year period, primarily due to higher raw material costs related to our wood flooring operations. Operating income decreased $0.7 million as compared to the same period last year due to higher material costs and increased intangible amortization charges associated with the recent acquisitions of Walker and certain assets of Beall.
Retail’s net sales of $46 million increased 11.7 percent compared with the prior year period, primarily due to increased shipments of new trailers, as well as continued strong demand for parts and services. Gross profit margin of 11.8 percent was consistent with the previous year period as higher volumes offset increased cost of services supporting our strategic growth initiatives. Operating income increased $0.2 million during the first quarter of 2014 as compared to the same period last year as increased volumes were slightly offset by higher selling and administrative expenses related to our strategic growth initiatives.
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 contain non-GAAP financial measures, including Operating EBITDA, Operating EBITDA margin, adjusted earnings 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, and other non-operating income and expense, as well as certain charges in connection with the Company’s acquisitions of Walker and certain assets of Beall. Management believes Operating EBITDA provides useful information to investors regarding our results of operations. The Company provides this measure because we believe it is useful for investors to understand our performance period to period with the exclusion of the recurring and non-recurring items identified above. Management believes the presentation of Operating EBITDA, when combined with the primary GAAP presentation of operating 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 earnings and adjusted earnings per diluted share reflect adjustments for non-recurring charges related to the Company’s acquisitions of Walker and certain assets of Beall, losses incurred in connection with the Company’s extinguishment of debt and revaluation of deferred income tax assets due to changes in statutory tax rates. Management believes providing this measure and excluding these items facilitate comparisons to the Company’s prior year periods and, when combined with the primary 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 adjusted earnings and adjusted earnings per diluted share to net income and diluted net income per share is included in the tables following this release.
First Quarter 2014 Conference Call
Wabash National will conduct a conference call to review and discuss its first quarter results on April 29, 2014, at 10:00 a.m. EDT. Access to the live webcast will be available 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 July 22, 2014. Meeting access also will be available via conference call at 888-771-4371, participant code 37103303.
About Wabash National Corporation
Headquartered in Lafayette, Indiana, Wabash National Corporation (NYSE: WNC) is a diversified industrial manufacturer and North America’s leading producer of semi trailers and liquid transportation systems. Established in 1985, the Company specializes in the design and production of dry freight vans, refrigerated vans, platform trailers, liquid tank trailers, intermodal equipment, engineered products, and composite products. Its innovative products are sold under the following brand names: Wabash National®, Transcraft®, Benson®, DuraPlate®, ArcticLite®, Walker Transport, Walker Defense Group, Walker Barrier Systems, Walker Engineered Products, Brenner® Tank, Beall®, Garsite, Progress Tank, TST®, Bulk Tank International and Extract Technology®. To learn more, visit 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, statements regarding our outlook for trailer shipments, backlog, and the expectations regarding our growth and diversification strategies, expectations regarding trailer demand levels, and our belief that 2014 has the potential to exceed the record performances achieved in the previous year. 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 uncertain economic conditions including the possibility that demand expectations may not result in order increases for us, 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, dependence on industry trends and timing, costs of indebtedness incurred in connection with the acquisition of Walker and the failure to achieve the benefit of the Walker acquisition and Beall asset purchase. 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 STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
| | | Three Months Ended
March 31, | |
| | | 2014 | | | 2013 | |
| | | | | | | |
| Net sales | | $ | 358,120 | | | $ | 324,229 | |
| Cost of sales | | | 311,448 | | | | 282,043 | |
| Gross profit | | | 46,672 | | | | 42,186 | |
| | | | | | | | | |
| General and administrative expenses | | | 14,472 | | | | 13,675 | |
| Selling expenses | | | 7,264 | | | | 7,667 | |
| Amortization of intangibles | | | 5,471 | | | | 5,370 | |
| Acquisition expenses | | | - | | | | 618 | |
| Income from operations | | | 19,465 | | | | 14,856 | |
| | | | | | | | | |
| Other income (expense): | | | | | | | | |
| Interest expense | | | (5,717 | ) | | | (7,535 | ) |
| Other, net | | | 32 | | | | 2,238 | |
| Income before income taxes | | | 13,780 | | | | 9,559 | |
| Income tax expense | | | 6,484 | | | | 3,824 | |
| Net income | | $ | 7,296 | | | $ | 5,735 | |
| Basic net income per share | | $ | 0.11 | | | $ | 0.08 | |
| Diluted net income per share | | $ | 0.10 | | | $ | 0.08 | |
| | | | | | | | | |
| Comprehensive income | | | | | | | | |
| Net income | | $ | 7,296 | | | $ | 5,735 | |
| Foreign currency translation adjustment | | | 161 | | | | (255 | ) |
| Net comprehensive income | | $ | 7,457 | | | $ | 5,480 | |
| | | | | | | | | |
| Basic net income per share: | | | | | | | | |
| Net income applicable to common stockholders | | $ | 7,296 | | | $ | 5,735 | |
| Undistributed earnings allocated to participating securities | | | (61 | ) | | | (51 | ) |
| Net income applicable to common stockholders excluding amounts applicable to participating securities | | $ | 7,235 | | | $ | 5,684 | |
| Weighted average common shares outstanding | | | 68,669 | | | | 68,395 | |
| Basic net income per share | | $ | 0.11 | | | $ | 0.08 | |
| | | | | | | | | |
| Diluted net income per share: | | | | | | | | |
| Net income applicable to common stockholders | | $ | 7,296 | | | $ | 5,735 | |
| Undistributed earnings allocated to participating securities | | | (61 | ) | | | (51 | ) |
| Net income applicable to common stockholders excluding amounts applicable to participating securities | | $ | 7,235 | | | $ | 5,684 | |
| | | | | | | | | |
| Weighted average common shares outstanding | | | 68,669 | | | | 68,395 | |
| Dilutive shares from assumed conversion of convertible senior notes | | | 1,591 | | | | - | |
| Dilutive stock options and restricted stock | | | 828 | | | | 433 | |
| Diluted weighted average common shares outstanding | | | 71,088 | | | | 68,828 | |
| Diluted net income per share | | $ | 0.10 | | | $ | 0.08 | |
WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Dollars in thousands)
(Unaudited)
| | | Commercial | | | Diversified | | | | | | Corporate and | | | | |
| Three Months Ended March 31, | | Trailer Products | | | Products | | | Retail | | | Eliminations | | | Consolidated | |
| 2014 | | | | | | | | | | | | | | | | | | | | |
| New trailers shipped | | | 9,200 | | | | 800 | | | | 800 | | | | (900 | ) | | | 9,900 | |
| Used trailers shipped | | | 1,700 | | | | - | | | | 400 | | | | - | | | | 2,100 | |
| | | | | | | | | | | | | | | | | | | | | |
| New Trailers | | $ | 213,436 | | | $ | 54,847 | | | $ | 20,271 | | | $ | (20,436 | ) | | $ | 268,118 | |
| Used Trailers | | | 11,248 | | | | 1,178 | | | | 3,639 | | | | - | | | | 16,065 | |
| Components, parts and service | | | 617 | | | | 23,210 | | | | 20,973 | | | | (3,102 | ) | | | 41,698 | |
| Equipment and other | | | 2,149 | | | | 40,714 | | | | 753 | | | | (11,377 | ) | | | 32,239 | |
| Total net external sales | | $ | 227,450 | | | $ | 119,949 | | | $ | 45,636 | | | $ | (34,915 | ) | | $ | 358,120 | |
| | | | | | | | | | | | | | | | | | | | | |
| Gross profit | | $ | 14,941 | | | $ | 25,439 | | | $ | 5,381 | | | $ | 911 | | | $ | 46,672 | |
| Income (Loss) from operations | | $ | 8,931 | | | $ | 12,857 | | | $ | 1,050 | | | $ | (3,373 | ) | | $ | 19,465 | |
| | | | | | | | | | | | | | | | | | | | | |
| 2013 | | | | | | | | | | | | | | | | | | | | |
| New trailers shipped | | | 8,000 | | | | 600 | | | | 600 | | | | (600 | ) | | | 8,600 | |
| Used trailers shipped | | | 700 | | | | - | | | | 300 | | | | - | | | | 1,000 | |
| | | | | | | | | | | | | | | | | | | | | |
| New Trailers | | $ | 188,979 | | | $ | 43,521 | | | $ | 16,943 | | | $ | (13,976 | ) | | $ | 235,467 | |
| Used Trailers | | | 5,050 | | | | 949 | | | | 2,653 | | | | (5 | ) | | | 8,647 | |
| Components, parts and service | | | 2,819 | | | | 21,061 | | | | 19,963 | | | | (2,558 | ) | | | 41,285 | |
| Equipment and other | | | 1,229 | | | | 46,463 | | | | 1,284 | | | | (10,146 | ) | | | 38,830 | |
| Total net external sales | | $ | 198,077 | | | $ | 111,994 | | | $ | 40,843 | | | $ | (26,685 | ) | | $ | 324,229 | |
| | | | | | | | | | | | | | | | | | | | | |
| Gross profit | | $ | 11,634 | | | $ | 25,928 | | | $ | 4,880 | | | $ | (256 | ) | | $ | 42,186 | |
| Income (Loss) from operations | | $ | 5,320 | | | $ | 13,519 | | | $ | 873 | | | $ | (4,856 | ) | | $ | 14,856 | |
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
| | | March 31, | | | December 31, | |
| | | 2014 | | | 2013 | |
| | | (Unaudited) | | | | |
| ASSETS | | | | | | | | |
| Current assets | | | | | | | | |
| Cash and cash equivalents | | $ | 65,736 | | | $ | 113,262 | |
| Accounts receivable | | | 118,864 | | | | 120,358 | |
| Inventories | | | 262,915 | | | | 184,173 | |
| Deferred income taxes | | | 16,902 | | | | 21,576 | |
| Prepaid expenses and other | | | 11,197 | | | | 9,632 | |
| Total current assets | | $ | 475,614 | | | $ | 449,001 | |
| | | | | | | | | |
| Property, plant and equipment | | | 140,254 | | | | 142,082 | |
| | | | | | | | | |
| Deferred income taxes | | | 1,044 | | | | 1,401 | |
| | | | | | | | | |
| Goodwill | | | 149,950 | | | | 149,967 | |
| | | | | | | | | |
| Intangible assets | | | 153,746 | | | | 159,181 | |
| | | | | | | | | |
| Other assets | | | 11,425 | | | | 10,613 | |
| | | $ | 932,033 | | | $ | 912,245 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| Current liabilities | | | | | | | | |
| Current portion of long-term debt | | $ | 3,250 | | | $ | 3,245 | |
| Current portion of capital lease obligations | | | 1,529 | | | | 1,609 | |
| Accounts payable | | | 129,316 | | | | 112,151 | |
| Other accrued liabilities | | | 91,008 | | | | 99,358 | |
| Total current liabilities | | $ | 225,103 | | | $ | 216,363 | |
| | | | | | | | | |
| Long-term debt | | | 359,270 | | | | 358,890 | |
| | | | | | | | | |
| Capital lease obligations | | | 6,584 | | | | 6,851 | |
| | | | | | | | | |
| Deferred income taxes | | | 2,191 | | | | 1,234 | |
| | | | | | | | | |
| Other noncurrent liabilities | | | 7,504 | | | | 6,528 | |
| | | | | | | | | |
| Commitments and contingencies | | | | | | | | |
| | | | | | | | | |
| Stockholders' equity | | | 331,381 | | | | 322,379 | |
| | | $ | 932,033 | | | $ | 912,245 | |
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
| | | Three Months Ended March 31, | |
| | | 2014 | | | 2013 | |
| | | | | | | |
| Cash flows from operating activities | | | | | | | | |
| Net income | | $ | 7,296 | | | $ | 5,735 | |
| Adjustments to reconcile net income to net cash used in operating activities | | | | | | | | |
| Depreciation | | | 4,042 | | | | 4,406 | |
| Amortization of intangibles | | | 5,471 | | | | 5,370 | |
| Deferred income taxes | | | 5,988 | | | | 3,790 | |
| Stock-based compensation | | | 1,640 | | | | 1,884 | |
| Accretion of debt discount | | | 1,195 | | | | 1,126 | |
| Changes in operating assets and liabilities | | | | | | | | |
| Accounts receivable | | | 1,494 | | | | (4,593 | ) |
| Inventories | | | (78,742 | ) | | | (46,580 | ) |
| Prepaid expenses and other | | | (1,565 | ) | | | (83 | ) |
| Accounts payable and accrued liabilities | | | 8,815 | | | | 19,563 | |
| Other, net | | | 311 | | | | 1,716 | |
| Net cash used in operating activities | | $ | (44,055 | ) | | $ | (7,666 | ) |
| | | | | | | | | |
| Cash flows from investing activities | | | | | | | | |
| Capital expenditures | | | (2,078 | ) | | | (2,564 | ) |
| Acquisition | | | - | | | | (13,860 | ) |
| Other | | | - | | | | 2,418 | |
| Net cash used in investing activities | | $ | (2,078 | ) | | $ | (14,006 | ) |
| | | | | | | | | |
| Cash flows from financing activities | | | | | | | | |
| Proceeds from exercise of stock options | | | 1,517 | | | | 161 | |
| Borrowings under revolving credit facilities | | | 175 | | | | 223 | |
| Payments under revolving credit facilities | | | (175 | ) | | | (223 | ) |
| Principal payments under capital lease obligations | | | (603 | ) | | | (441 | ) |
| Principal payments under term loan credit facility | | | (693 | ) | | | (750 | ) |
| Principal payments under industrial revenue bond | | | (117 | ) | | | (38 | ) |
| Debt issuance costs paid | | | - | | | | (41 | ) |
| Stock repurchase | | | (1,497 | ) | | | (35 | ) |
| Net cash used in financing activities | | $ | (1,393 | ) | | $ | (1,144 | ) |
| | | | | | | | | |
| Net decrease in cash and cash equivalents | | $ | (47,526 | ) | | $ | (22,816 | ) |
| Cash and cash equivalents at beginning of period | | | 113,262 | | | | 81,449 | |
| Cash and cash equivalents at end of period | | $ | 65,736 | | | $ | 58,633 | |
WABASH NATIONAL CORPORATION
RECONCILIATION OF GAAP FINANCIAL MEASURES TO
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share amounts)
(Unaudited)
Operating EBITDA:
| | | Three Months Ended
March 31, | |
| | | 2014 | | | 2013 | |
| Net income | | $ | 7,296 | | | $ | 5,735 | |
| Income tax expense | | | 6,484 | | | | 3,824 | |
| Interest expense | | | 5,717 | | | | 7,535 | |
| Depreciation and amortization | | | 9,513 | | | | 9,776 | |
| Stock-based compensation | | | 1,640 | | | | 1,884 | |
| Acquisition expenses | | | - | | | | 618 | |
| Other non-operating income | | | (32 | ) | | | (2,238 | ) |
| Operating EBITDA | | $ | 30,618 | | | $ | 27,134 | |
| | | Three Months Ended | |
| | | June 30,
2013 | | | September 30,
2013 | | | December 31,
2013 | |
| Net income | | $ | 14,135 | | | $ | 16,236 | | | $ | 10,423 | |
| Income tax expense | | | 9,407 | | | | 10,737 | | | | 7,126 | |
| Interest expense | | | 6,577 | | | | 6,252 | | | | 5,944 | |
| Depreciation and amortization | | | 9,531 | | | | 9,400 | | | | 9,629 | |
| Stock-based compensation | | | 2,024 | | | | 1,617 | | | | 1,955 | |
| Acquisition expenses | | | 239 | | | | 26 | | | | - | |
| Other non-operating expense | | | 333 | | | | 605 | | | | 560 | |
| Operating EBITDA | | $ | 42,246 | | | $ | 44,873 | | | $ | 35,637 | |
Adjusted Earnings:
| | | Three Months Ended March 31, | |
| | | 2014 | | | 2013 | |
| | | $ | | | Per Share | | | $ | | | Per Share | |
| | | | | | | | | | | | | |
| Net Income | | $ | 7,296 | | | $ | 0.10 | | | $ | 5,735 | | | $ | 0.08 | |
| | | | | | | | | | | | | | | | | |
| Adjustments: | | | | | | | | | | | | | | | | |
| Revaluation of net deferred income tax assets | | | | | | | | | | | | | | | | |
| due to changes in statutory tax rates | | | 1,041 | | | | 0.01 | | | | - | | | | - | |
| Acquisition expenses, net of taxes | | | - | | | | - | | | | 371 | | | | 0.01 | |
| | | | | | | | | | | | | | | | | |
| Adjusted earnings | | $ | 8,337 | | | $ | 0.12 | | | $ | 6,106 | | | $ | 0.09 | |
| | | | | | | | | | | | | | | | | |
| Weighted Average # of Diluted Shares O/S | | | 71,088 | | | | | | | | 68,828 | | | | | |
| | | Three Months Ended | |
| | | June 30, 2013 | | | September 30, 2013 | | | December 31, 2013 | |
| | | $ | | | Per Share | | | $ | | | Per Share | | | $ | | | Per Share | |
| | | | | | | | | | | | | | | | | | | |
| Net Income | | $ | 14,135 | | | $ | 0.21 | | | $ | 16,236 | | | $ | 0.24 | | | $ | 10,423 | | | $ | 0.15 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
| Loss on debt extinguishment, net of taxes | | | 419 | | | | 0.01 | | | | 364 | | | | 0.01 | | | | 347 | | | | - | |
| Acquisition expenses, net of taxes | | | 143 | | | | - | | | | 16 | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjusted earnings | | $ | 14,697 | | | $ | 0.21 | | | $ | 16,616 | | | $ | 0.24 | | | $ | 10,770 | | | $ | 0.15 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Weighted Average # of Diluted Shares O/S | | | 68,858 | | | | | | | | 69,011 | | | | | | | | 69,625 | | | | | |
