EXHIBIT 99.1
Contact: Investor Relations
FOR IMMEDIATE RELEASE (765) 771-5310
WABASH NATIONAL CORPORATION ANNOUNCES
SECOND QUARTER AND YEAR TO DATE RESULTS
LAFAYETTE, INDIANA, July 20, 2004 . . . Wabash National Corporation
(NYSE: WNC) announced today results for the three and six month periods ended
June 30, 2004. Net sales for the quarter were $255 million compared to $230
million for the same period last year. Net income for the quarter was $18
million or $0.56 diluted earnings per share, compared to a loss of $(27) million
or $(1.07) per share for the same period last year. For the six months ended
June 30, 2004, net sales were $476 million compared to $453 million for 2003.
Net income for the first six months of 2004 totaled $25 million or $0.80 per
share, compared to a net loss of $(26) million or $(1.03) per share last year.
Sales for the three and six month periods of 2003 included $21 million and $41
million, respectively, of sales associated with certain assets of our trailer
rental and leasing and wholesale aftermarket parts distribution businesses which
were sold in September 2003. Results for both of the 2003 periods include a $29
million asset impairment charge related to those businesses equal to $(1.11) per
share.
Commenting on the quarter, Bill Greubel, President and Chief Executive
Officer, stated, "We were successful in obtaining price increases to more than
offset rapidly escalating prices for key raw materials. Results for the quarter
clearly demonstrate both the capability of our manufacturing organization to
leverage higher value on increased volume and the value of our technology
complimenting an expanding market presence throughout the industry.
Manufacturing cycle time reductions and cost containment actions contributed to
expanded margins. Retail distribution operations continued to improve but have
yet to achieve profitability. Quote and order patterns moderated from the pace
observed earlier in the year; however they remain sufficiently strong to
maintain our increased production rates. Going forward we believe the industry
will continue to see increased demand both from an accelerating replacement
cycle and growth associated with high fleet utilization levels."
Wabash will conduct a conference call to review and discuss its first
quarter financial results on Wednesday, July 21, 2004, at 10:00 AM Eastern time.
The phone number to access the conference call is 800-633-8680. 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, 2004.
Wabash National Corporation designs, manufactures, and markets standard
and customized truck trailers under the Wabash(TM) 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.
***
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,
--------------------------- ---------------------------
2004 2003 2004 2003
--------- --------- --------- ---------
NET SALES $ 254,899 $ 230,231 $ 476,496 $ 452,739
COST OF SALES 218,264 205,586 416,739 404,928
LOSS ON ASSET IMPAIRMENT -- 28,500 -- 28,500
--------- --------- --------- ---------
Gross profit (loss) 36,635 (3,855) 59,757 19,311
GENERAL AND ADMINISTRATIVE EXPENSES 10,260 8,906 20,684 20,526
SELLING EXPENSES 3,851 5,966 7,626 10,928
--------- --------- --------- ---------
Income (loss) from operations 22,524 (18,727) 31,447 (12,143)
OTHER INCOME (EXPENSE):
Interest expense (2,769) (10,794) (5,666) (18,884)
Foreign exchange gains and losses, net (405) 2,733 (545) 5,589
Other, net
(589) (480) 384 (400)
--------- --------- --------- ---------
Income (loss) before income taxes 18,761 (27,268) 25,620 (25,838)
INCOME TAX PROVISION 499 -- 499 --
--------- --------- --------- ---------
Net income (loss) 18,262 (27,268) 25,121 (25,838)
PREFERRED STOCK DIVIDENDS -- 264 -- 528
--------- --------- --------- ---------
NET INCOME (LOSS) APPLICABLE TO COMMON
STOCKHOLDERS $ 18,262 $ (27,532) $ 25,121 $ (26,366)
========= ========= ========= =========
BASIC NET INCOME (LOSS) PER SHARE $ 0.67 $ (1.07) $ 0.93 $ (1.03)
========= ========= ========= =========
DILUTED NET INCOME (LOSS) PER SHARE $ 0.56 $ (1.07) $ 0.80 $ (1.03)
========= ========= ========= =========
COMPREHENSIVE INCOME (LOSS)
Net income (loss) $ 18,262 $ (27,268) $ 25,121 $ (25,838)
Foreign currency translation adjustment (593) 243 (822) 444
--------- --------- --------- ---------
NET COMPREHENSIVE INCOME (LOSS) $ 17,669 $ (27,025) $ 24,299 $ (25,394)
========= ========= ========= =========
Retail &
Three months ended Manufacturing Distribution Eliminations Total
- ------------------ ------------- ------------ ------------ -----
2004
----
Net Sales $ 227,839 $ 61,185 $ (34,125) $ 254,899
Operating Results $ 24,982 $ (141) $ (2,317) $ 22,524
2003
----
Net Sales $ 167,483 $ 75,375 $ (12,627) $ 230,231
Operating Results $ 10,592 $ (29,595) $ 276 $ (18,727)
Six months ended
- ----------------
2004
----
Net Sales $ 416,035 $ 118,727 $ (58,266) $ 476,496
Operating Results $ 35,803 $ (2,056) $ (2,300) $ 31,447
2003
----
Net Sales $ 334,140 $ 153,731 $ (35,132) $ 452,739
Operating Results $ 18,815 $ (31,257) $ 299 $ (12,143)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------ ------------------------
2004 2003 2004 2003
--------- --------- -------- --------
Basic earnings (loss) per share:
Net income (loss) applicable to common stockholders $ 18,262 $(27,532) $ 25,121 $(26,366)
======== ======== ======== ========
Weighted average common shares outstanding 27,145 25,705 27,067 25,680
======== ======== ======== ========
Basic earnings (loss) per share $ 0.67 $ (1.07) $ 0.93 $ (1.03)
======== ======== ======== ========
Diluted earnings (loss) per share:
Net income (loss) applicable to common stockholders $ 18,262 $(27,532) $ 25,121 $(26,366)
After-tax equivalent of interest on convertible notes 1,204 -- 2,408 --
-------- -------- -------- --------
Diluted net income (loss) applicable to common
stockholders $ 19,466 $(27,532) $ 27,529 $(26,366)
======== ======== ======== ========
Weighted average common shares outstanding 27,145 25,705 27,067 25,680
Dilutive stock options 906 -- 946 --
Convertible notes equivalent shares 6,510 -- 6,510 --
-------- -------- -------- --------
Diluted weighted average common shares outstanding 34,561 25,705 34,523 25,680
======== ======== ======== ========
Diluted earnings (loss) per share $ 0.56 $ (1.07) $ 0.80 $ (1.03)
======== ======== ======== ========
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
Unaudited
June 30, December 31,
2004 2003
-------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 5,645 $ 12,552
Accounts receivable, net 94,750 66,641
Current portion of finance contracts 3,092 4,727
Inventories 107,608 84,996
Prepaid expenses and other 8,300 10,249
-------- --------
Total current assets 219,395 179,165
PROPERTY, PLANT AND EQUIPMENT, net 127,342 130,594
EQUIPMENT LEASED TO OTHERS, net 15,999 21,187
FINANCE CONTRACTS, net of current portion 4,349 6,155
GOODWILL, net 35,187 36,045
OTHER ASSETS 18,081 23,890
-------- --------
$420,353 $397,036
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 8,729 $ 7,337
Accounts payable 88,036 68,437
Other accrued liabilities 57,249 61,421
-------- --------
Total current liabilities 154,014 137,195
LONG-TERM DEBT, net of current maturities 204,075 219,979
OTHER NONCURRENT LIABILITIES AND CONTINGENCIES 11,278 17,700
STOCKHOLDERS' EQUITY 50,986 22,162
-------- --------
$420,353 $397,036
======== ========
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Six Months
Ended June 30,
----------------------------
2004 2003
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 25,121 $ (25,838)
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization 9,895 13,327
Net gain on the sale of assets (473) (429)
Provision for losses on accounts receivable and finance (134) 940
contracts
Cash used for restructuring activities (889) (159)
Trailer valuation charges 169 2,057
Loss on asset impairment -- 28,500
Change in operating assets and liabilities:
Accounts receivable (27,975) (52,104)
Inventories (20,530) 2,823
Refundable income taxes 71 886
Prepaid expenses and other 303 3,792
Accounts payable and accrued liabilities 17,714 2,479
Other, net 798 (1,224)
--------- ---------
Net cash provided by (used in) operating activities 4,070 (24,950)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (3,936) (3,460)
Proceeds from sale of leased equipment and finance contracts -- 4,805
Principal payments received on finance contracts 2,204 4,389
Proceeds from the sale of property, plant and equipment 2,104 1,749
--------- ---------
Net cash provided by investing activities 372 7,483
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options 3,163 756
Borrowings under trade receivables and revolving credit facilities 331,975 56,418
Payments under trade receivables and revolving credit facilities (341,399) (18,649)
Payments under long-term debt and capital lease obligations (5,088) (48,571)
Debt issuance costs -- (1,531)
--------- ---------
Net cash used in financing activities (11,349) (11,577)
--------- ---------
NET DECREASE IN CASH AND CASH EQUIVALENTS (6,907) (29,044)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 12,552 35,659
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 5,645 $ 6,615
========= =========