EXHIBIT 99.1
Contact: Robert J. Smith
FOR IMMEDIATE RELEASE (765) 771-5476
WABASH NATIONAL CORPORATION ANNOUNCES
FOURTH QUARTER AND YEAR END RESULTS
LAFAYETTE, INDIANA, February 9, 2005 . . . Wabash National Corporation
(NYSE: WNC) announced today results for the three and twelve months ended
December 31, 2004. Net sales for the fourth quarter were $287.4 million compared
to $219.8 million for the same period last year. Net income for the quarter was
$13 million, compared to a loss of $1.7 million for the same period last year.
For the year ended December 31, 2004, net sales were $1.041 billion compared to
$888 million for 2003. Net income for fiscal year 2004 totaled $58 million,
compared to a net loss of $57 million in 2003. Diluted income per share was
$0.39 for the fourth quarter 2004, compared to a loss of ($0.08) per share for
the fourth quarter 2003. For the twelve months ended December 31, 2004 diluted
earning per share was $1.80 compared to a loss of ($2.26) in 2003.
Commenting on these results, William P. Greubel, President and Chief
Executive Officer, stated, "Accomplishments for the year and quarter are very
gratifying as solid results were obtained despite dramatic increases in raw
materials prices. We successfully passed along the vast majority of these costs.
We have earned a substantial and growing presence with the mid market fleet
operators. We are positioned to undertake additional operational improvement
initiatives that will reduce our overall costs. Most gratifying of all was our
ability to pay down all of our bank debt by year-end, reducing debt by over $300
million in the last three years. We approach 2005 with equal amounts of optimism
and caution. Industry demand is strong and growing, but pricing concerns
continue. We will continue to seek to create shareholder value by striving to
improve the productivity of our plants and retail operations and growing our
market share."
Wabash National Corporation designs, manufactures, and markets standard
and customized truck trailers under the Wabash(R) 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 dependence on lenders to agree to
amend financial covenants on favorable term, increased competition, dependence
on key management, reliance on certain customers and corporate partnerships,
shortages of raw materials, dependence on industry trends, export sales and new
markets, acceptance of new technology and products, and government regulation.
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
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
-------------------------- --------------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
NET SALES $ 287,357 $ 219,751 $ 1,041,096 $ 887,940
COST OF SALES 258,250 203,597 915,310 806,963
LOSS ON ASSET IMPAIRMENT -- -- -- 28,500
----------- ----------- ----------- -----------
Gross profit 29,107 16,154 125,786 52,477
GENERAL AND ADMINISTRATIVE EXPENSES 10,527 9,317 41,600 41,635
SELLING EXPENSES 3,576 4,309 14,977 19,864
----------- ----------- ----------- -----------
Income (loss) from operations 15,004 2,528 69,209 (9,022)
OTHER INCOME (EXPENSE):
Interest expense (2,199) (3,554) (10,809) (31,184)
Foreign exchange gains and losses, net 522 (27) 463 5,291
Loss on debt extinguishment (607) (900) (607) (19,840)
Other, net (49) 205 749 (2,472)
----------- ----------- ----------- -----------
Income (loss) before income taxes 12,671 (1,748) 59,005 (57,227)
INCOME TAX PROVISION (319) -- 600 --
----------- ----------- ----------- -----------
Net income (loss) 12,990 (1,748) 58,405 (57,227)
PREFERRED STOCK DIVIDENDS -- 261 -- 1,053
----------- ----------- ----------- -----------
NET INCOME (LOSS) APPLICABLE TO COMMON
STOCKHOLDERS $ 12,990 $ (2,009) $ 58,405 $ (58,280)
=========== =========== =========== ===========
BASIC NET INCOME (LOSS) PER SHARE $ 0.44 $ (0.08) $ 2.10 $ (2.26)
=========== =========== =========== ===========
DILUTED NET INCOME (LOSS) PER SHARE $ 0.39 $ (0.08) $ 1.80 $ (2.26)
=========== =========== =========== ===========
COMPREHENSIVE INCOME (LOSS)
Net income (loss) $ 12,990 $ (1,748) $ 58,405 $ (57,227)
Foreign currency translation adjustment 816 1,020 1,137 1,256
----------- ----------- ----------- -----------
NET COMPREHENSIVE INCOME (LOSS) $ 13,806 $ (728) $ 59,542 $ (55,971)
=========== =========== =========== ===========
Retail &
Three months ended Manufacturing Distribution Eliminations Total
- ------------------ ------------- ------------ ------------ -----
2004
----
Net Sales $ 257,272 $ 56,630 $ (26,545) $ 287,357
Operating Results $ 17,496 $ (1,332) (1,160) 15,004
2003
----
Net Sales $ 185,352 $ 46,345 $ (11,946) $ 219,751
Operating Results $ 6,626 $ (4,211) $ 113 $ 2,528
Twelve months ended
- -------------------
2004
----
Net Sales $ 913,678 $ 237,078 $ (109,660) $ 1,041,096
Operating Results $ 73,898 $ (2,879) $ (1,810) 69,209
2003
----
Net Sales $ 672,292 $ 268,698 $ (53,050) $ 887,940
Operating Results $ 27,828 $ (37,283) 433 (9,022)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------------
2004 2003 2004 2003
-------- -------- -------- --------
Basic earnings (loss) per share:
Net income (loss) applicable to common stockholders $ 12,990 $ (2,009) $ 58,405 $(58,280)
======== ======== ======== ========
Weighted average common shares outstanding 29,527 25,947 27,748 25,778
======== ======== ======== ========
Basic earnings (loss) per share $ 0.44 $ (0.08) $ 2.10 $ (2.26)
======== ======== ======== ========
Diluted earnings (loss) per share:
Net income (loss) applicable to common stockholders $ 12,990 $ (2,009) $ 58,405 $(58,280)
After-tax equivalent of interest on convertible notes 1,210 -- 4,828 --
-------- -------- -------- --------
Diluted net income (loss) applicable to common
stockholders $ 14,200 $ (2,009) $ 63,233 $(58,280)
======== ======== ======== ========
Weighted average common shares outstanding 29,527 25,947 27,748 25,778
Dilutive stock options 720 -- 832 --
Convertible notes equivalent shares 6,510 -- 6,510 --
-------- -------- -------- --------
Diluted weighted average common shares outstanding 36,757 25,947 35,090 25,778
======== ======== ======== ========
Diluted earnings (loss) per share $ 0.39 $ (0.08) $ 1.80 $ (2.26)
======== ======== ======== ========
WABASH NATIONAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
Unaudited
December 31, December 31,
2004 2003
------------ ------------
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $ 41,928 $ 12,552
Accounts receivable, net 87,512 66,641
Current portion of finance contracts 2,185 4,727
Inventories 94,600 84,996
Prepaid expenses and other 16,313 10,249
-------- --------
Total current assets 242,538 179,165
PROPERTY, PLANT AND EQUIPMENT, net 123,626 130,594
EQUIPMENT LEASED TO OTHERS, net 14,030 21,187
FINANCE CONTRACTS, net of current portion 3,319 6,155
GOODWILL, net 33,698 36,045
OTHER ASSETS 14,835 23,890
-------- --------
$432,046 $397,036
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Current maturities of long-term debt $ 2,000 $ 7,337
Accounts payable 78,107 68,437
Other accrued liabilities 52,442 61,421
-------- --------
Total current liabilities 132,549 137,195
LONG-TERM DEBT, net of current maturities 125,500 219,979
OTHER NONCURRENT LIABILITIES AND CONTINGENCIES 9,423 17,700
STOCKHOLDERS' EQUITY 164,574 22,162
-------- --------
$432,046 $397,036
======== ========
WABASH NATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Twelve Months
Ended December 31,
-------------------------
2004 2003
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 58,405 $ (57,227)
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization 19,441 23,788
Net (gain) loss on the sale of assets (2,089) 723
Provision for losses on accounts receivable and finance contracts (231) 474
Cash used for restructuring activities (3,007) (3,372)
Used trailer valuation charges 448 2,562
Loss on debt extinguishment 607 19,840
Loss on asset impairment -- 28,500
Change in operating assets and liabilities:
Accounts receivable (20,640) (40,749)
Finance contracts 5,070 16,469
Inventories (8,485) 51,416
Refundable income taxes (258) 824
Prepaid expenses and other (458) 5,009
Accounts payable and accrued liabilities 5,081 11,286
Other, net 3,040 (1,280)
--------- ---------
Net cash provided by operating activities 56,924 58,263
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (15,495) (6,518)
Proceeds from the sale of assets 6,800 66,838
--------- ---------
Net cash (used in) provided by investing activities (8,695) 60,320
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of debt -- 260,309
Proceeds from issuance of common stock 75,702 --
Proceeds from exercise of stock options 5,261 4,804
Net payments under trade receivables and revolving credit facilities (60,357) (27,851)
Payments under long-term debt and capital lease obligations (39,459) (367,089)
Preferred stock dividends paid -- (1,584)
Debt issuance costs paid -- (10,279)
--------- ---------
Net cash used in financing activities (18,853) (141,690)
--------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 29,376 (23,107)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 12,552 35,659
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 41,928 $ 12,552
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