EXHIBIT 99.1
Contact: Investor Relations
FOR IMMEDIATE RELEASE (765) 771-5310
WABASH NATIONAL CORPORATION ANNOUNCES
THIRD QUARTER AND YEAR TO DATE RESULTS
LAFAYETTE, INDIANA, October 20, 2004 . . . Wabash National Corporation
(NYSE: WNC) announced today results for the three and nine month periods ended
September 30, 2004. Net sales for the quarter were $277 million compared to $215
million for the same period last year. Net income for the quarter was $20
million or $0.62 per share, compared to a loss of $(30) million or $(1.16) per
share for the same period last year. For the nine months ended September 30,
2004, net sales were $754 million compared to $668 million for 2003. Net income
for the first nine months of 2004 totaled $45 million or $1.42 per share,
compared to a net loss of $(55) million or $(2.19) per share last year. Sales
for the three and nine month periods ending September 30, 2003 included $18
million and $59 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 the third quarter of
2003 also include a $19 million debt extinguishment charge equal to ($0.74) per
share.
Commenting on the quarter, Bill Greubel, President and Chief Executive
Officer, stated, "We continue to execute our business plan reporting solid
results despite challenging supply conditions. We are also grateful to report
that our retail and distribution segment reported profitability in the third
quarter. Relative to supply issues we encountered key raw material price and
availability issues that were accentuated by an unanticipated sharp jump in
steel pricing mid-way through the quarter which we were unable to pass through
to our customers in a timely manner. Manufacturing productivity, while
continuing to improve, was somewhat adversely effected due to product mix and
supply chain constraints. Working capital for the quarter increased as we
adjusted inventory levels. We are becoming more comfortable that our supply
chain will be able to support steady growth in this segment. Quote and order
patterns continue to register year over year gains during the seasonally slow
summer period of the year and into the fourth quarter. Fleet utilization levels
remain high, suggesting continued demand for both growth and replacement
equipment."
New trailer unit sales amounted to 13,700 units and 37,500 units for
the three and nine month periods of 2004, respectively, compared to 9,900 and
29,700 units for the comparable 2003 periods. Backlog at September 30, 2004
amounted to $283 million.
Wabash will conduct a conference call to review and discuss its third
quarter financial results on Thursday, October 21, 2004, at 10:00 AM Eastern
time. The phone number to access the conference call is 800-443-7192. 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
November 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 Nine Months
Ended September 30, Ended September 30,
------------------------ ------------------------
2004 2003 2004 2003
--------- --------- --------- ---------
NET SALES $ 277,243 $ 215,450 $ 753,739 $ 668,189
COST OF SALES 240,321 198,438 657,060 603,366
LOSS ON ASSET IMPAIRMENT -- -- -- 28,500
--------- --------- --------- ---------
Gross profit 36,922 17,012 96,679 36,323
GENERAL AND ADMINISTRATIVE EXPENSES 10,389 11,792 31,073 32,318
SELLING EXPENSES 3,775 4,627 11,401 15,555
--------- --------- --------- ---------
Income (loss) from operations 22,758 593 54,205 (11,550)
OTHER INCOME (EXPENSE):
Interest expense (2,944) (8,746) (8,610) (27,630)
Foreign exchange gains and losses, net 486 (271) (59) 5,318
Loss on debt extinguishment -- (18,940) -- (18,940)
Other, net 414 (2,277) 798 (2,677)
--------- --------- --------- ---------
Income (loss) before income taxes 20,714 (29,641) 46,334 (55,479)
INCOME TAX PROVISION 420 -- 919 --
--------- --------- --------- ---------
Net income (loss) 20,294 (29,641) 45,415 (55,479)
PREFERRED STOCK DIVIDENDS -- 264 -- 792
--------- --------- --------- ---------
NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS $ 20,294 $ (29,905) $ 45,415 $ (56,271)
========= ========= ========= =========
BASIC NET INCOME (LOSS) PER SHARE $ 0.74 $ (1.16) $ 1.67 $ (2.19)
========= ========= ========= =========
DILUTED NET INCOME (LOSS) PER SHARE
COMPREHENSIVE INCOME (LOSS) $ 0.62 $ (1.16) $ 1.42 $ (2.19)
========= ========= ========= =========
Net income (loss) $ 20,294 $ (29,641) $ 45,415 $ (55,479)
Foreign currency translation adjustment 1,143 (208) 321 236
--------- --------- --------- ---------
NET COMPREHENSIVE INCOME (LOSS) $ 21,437 $ (29,849) $ 45,736 $ (55,243)
========= ========= ========= =========
Retail &
Three months ended Manufacturing Distribution Eliminations Total
- ------------------ ------------- ------------ ------------ ---------
2004
----
Net Sales $ 240,371 $ 61,721 $ (24,849) $ 277,243
Operating Results $ 20,599 $ 509 $ 1,650 $ 22,758
2003
----
Net Sales $ 152,800 $ 68,622 $ (5,972) $ 215,450
Operating Results $ 2,387 $ (1,815) 21 $ 593
Nine months ended
- -----------------
2004
----
Net Sales $ 656,406 $ 180,448 $ (83,115) $ 753,739
Operating Results $ 56,402 $ (1,547) (650) $ 54,205
----
2003
Net Sales $ 486,940 $ 222,353 $ (41,104) $ 668,189
Operating Results $ 21,202 $ (33,072) $ 320 $ (11,550)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2004 2003 2004 2003
-------- -------- -------- --------
Basic earnings (loss) per share:
Net income (loss) applicable to common stockholders $ 20,294 $(29,905) $ 45,415 $(56,271)
======== ======== ======== ========
Weighted average common shares outstanding 27,314 25,802 27,150 25,721
======== ======== ======== ========
Basic earnings (loss) per share $ 0.74 $ (1.16) $ 1.67 $ (2.19)
======== ======== ======== ========
Diluted earnings (loss) per share:
Net income (loss) applicable to common stockholders $ 20,294 $(29,905) $ 45,415 $(56,271)
After-tax equivalent of interest on convertible notes 1,210 -- 3,618 --
-------- -------- -------- --------
Diluted net income (loss) applicable to common stockholders $ 21,504 $(29,905) $ 49,033 $(56,271)
======== ======== ======== ========
Weighted average common shares outstanding 27,314 25,802 27,150 25,721
Dilutive stock options 721 -- 870 --
Convertible notes equivalent shares 6,510 -- 6,510 --
-------- -------- -------- --------
Diluted weighted average common shares outstanding 34,545 25,802 34,530 25,721
======== ======== ======== ========
Diluted earnings (loss) per share $ 0.62 $ (1.16) $ 1.42 $ (2.19)
======== ======== ======== ========
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
Unaudited
September 30, December 31,
2004 2003
------------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 14,832 $ 12,552
Accounts receivable, net 134,041 66,641
Current portion of finance contracts 2,680 4,727
Inventories 113,120 84,996
Prepaid expenses and other 7,400 10,249
-------- --------
Total current assets 272,073 179,165
PROPERTY, PLANT AND EQUIPMENT, net 125,893 130,594
EQUIPMENT LEASED TO OTHERS, net 15,354 21,187
FINANCE CONTRACTS, net of current portion 3,785 6,155
GOODWILL, net 36,063 36,045
OTHER ASSETS 16,589 23,890
-------- --------
$469,757 $397,036
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 8,729 $ 7,337
Accounts payable 89,348 68,437
Other accrued liabilities 53,341 61,421
-------- --------
Total current liabilities 151,418 137,195
LONG-TERM DEBT, net of current maturities 234,234 219,979
OTHER NONCURRENT LIABILITIES AND CONTINGENCIES 9,476 17,700
STOCKHOLDERS' EQUITY 74,629 22,162
-------- --------
$469,757 $397,036
======== ========
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Nine Months
Ended September 30,
------------------------
2004 2003
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 45,415 $ (55,479)
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization 14,745 19,115
Net (gain) loss on the sale of assets (405) 652
Provision for losses on accounts receivable and finance (30) 1,011
contracts
Cash used for restructuring activities (2,993) (229)
Trailer valuation charges 415 2,261
Loss on debt extinguishment -- 18,940
Loss on asset impairment -- 28,500
Change in operating assets and liabilities:
Accounts receivable (67,370) (53,771)
Inventories (26,989) 22,732
Refundable income taxes 72 921
Prepaid expenses and other 1,202 4,328
Accounts payable and accrued liabilities 15,844 7,630
Other, net 1,145 1,526
--------- ---------
Net cash used in operating activities (18,949) (1,863)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (5,760) (3,747)
Proceeds from asset sales -- 53,479
Proceeds from sale of leased equipment and finance contracts -- 5,305
Principal payments received on finance contracts 4,039 5,969
Proceeds from the sale of property, plant and equipment 2,116 1,762
--------- ---------
Net cash provided by investing activities 395 62,768
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of bank term loan and revolving credit facility -- 135,309
Proceeds from issuance of convertible senior notes -- 125,000
Proceeds from exercise of stock options 5,187 1,687
Borrowings under trade receivables and revolving credit facilities 534,916 109,618
Payments under trade receivables and revolving credit facilities (511,999) (109,618)
Payments under long-term debt and capital lease obligations (7,270) (344,322)
Preferred stock dividends -- (1,584)
Debt issuance costs -- (10,077)
--------- ---------
Net cash provided by (used) in financing activities 20,834 (93,987)
--------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,280 (33,082)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 12,552 35,659
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 14,832 $ 2,577
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