• Wabash Announces First Quarter 2022 Results

    Source: Nasdaq GlobeNewswire / 27 Apr 2022 05:55:00   America/Chicago

    • Revenue of $546.8 million on increasing new trailer shipments
    • Operating income of $20.1 million
    • Diluted earnings per share of $0.24, exceeding prior outlook
    • Robust backlog of $2.3B sets first quarter record; increases 50%+ YoY
    • 2022 outlook for revenue and EPS increased to $2.5B and $1.90, respectively

    LAFAYETTE, Ind., April 27, 2022 (GLOBE NEWSWIRE) -- Wabash (NYSE: WNC), the innovation leader of connected solutions for the transportation, logistics and distribution industries, today reported results for the quarter ended March 31, 2022.

    Net sales for the first quarter 2022 of $546.8 million increased 39.5% versus the prior year quarter as the Company continued to scale its ability to serve strong customer demand. Consolidated gross profit was $58.1 million, or 10.6% of sales. Operating income was $20.1 million, or 3.7% of sales during the quarter. Diluted earnings per share was $0.24, exceeding the Company's prior quarterly outlook.

    Total company backlog as of March 31, 2022 was approximately $2.3 billion, an increase of $800 million compared to the same quarter last year. Wabash's backlog represents a first quarter record and exceeds the prior Q1 high by 42%.

    “Evidenced by record first quarter backlog, demand across our portfolio of solutions remains strong,” explained Brent Yeagy, President and Chief Executive Officer. “With our customer base and supply chain both overwhelmingly levered to the United States, we are largely insulated from international volatility and fortunately situated to benefit from improving labor market trends and new and existing customers that are utilizing trailers in new and interesting ways.”

    For the full year ending December 31, 2022, the company increased its outlook for revenue by $200 million to $2.5 billion. Additionally, the Company increased its full year EPS outlook by $0.15 to $1.90.

    “As we achieved strengthening financial results throughout the first quarter, our confidence in the trajectory for our full year has increased and we are excited to raise our EPS outlook by more than our first quarter out-performance," said Yeagy. "While our prospects for 2022 are bright, I am most enthusiastic about the increasing rate of change I see within the development of sustainable, customer-centric products and services throughout our portfolio. These are some of the solutions that will chart the course of our strategic growth over the next decade.”

    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 2022 and 2021. A complete disclosure of the results by individual segment is included in the tables following this release.

      Wabash National Corporation    
    Three Months Ended March 31,  2022   2021     
    New Units Shipped        
    Trailers  11,695   9,660     
    Truck bodies  3,540   4,760     
             
      Transportation Solutions Parts & Services
    Three Months Ended March 31,  2022   2021   2022   2021 
      (Unaudited, dollars in thousands)
    Net sales $502,065  $345,119  $46,708  $48,595 
    Gross profit $47,682  $38,328  $10,522  $10,466 
    Gross profit margin  9.5%  11.1%  22.5%  21.5%
    Income from operations $31,697  $16,623  $6,789  $6,384 
    Income from operations margin  6.3%  4.8%  14.5%  13.1%


    Transportation Solutions’ net sales for the first quarter were $502.1 million, an increase of 45.5%, as compared to the prior year quarter, as operations continued to scale up. Operating income was $31.7 million or 6.3% of sales during the quarter.

    Parts & Services' net sales for the first quarter were $46.7 million, a decrease of 3.9% as compared to the prior year quarter, primarily due to the divestiture of Extract Technology on June 30, 2021. Operating income was $6.8 million, or 14.5% of sales during the quarter.

    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 contains non-GAAP financial measures, including operating EBITDA, free cash flow, adjusted operating income, adjusted net income, adjusted earnings per share, adjusted segment EBITDA, and adjusted segment EBITDA margin. 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, impairment and other, net, and other non-operating income and expense (including any loss on debt extinguishment charges). Management believes providing operating EBITDA is useful for investors to understand the Company’s performance and results of operations period to period with the exclusion of the items identified above. Management believes the presentation of operating EBITDA, when combined with the GAAP presentations of operating income and net 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.

    Free cash flow is defined as net cash used in operating activities minus cash payments for capital expenditures. Management believes providing free cash flow is useful for investors to understand the Company’s performance and results of cash generation period to period with the exclusion of the item identified above. Management believes the presentation of free cash flow, when combined with the GAAP presentations of cash provided by operating activities, is beneficial to an investor’s understanding of the Company’s operating performance. A reconciliation of free cash flow to cash used in operating activities is included in the tables following this release.

    Adjusted operating income and margin, non-GAAP financial measures, exclude certain costs, expenses, other charges, gains or income that are included in the determination of operating income under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities. Accordingly, the Company presents adjusted operating income and margin excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating income and margin to provide investors with a better understanding of the Company’s view of our results as compared to prior periods. A reconciliation of adjusted operating income to operating income, the most comparable GAAP financial measure, is included in the tables following this release.

    Adjusted net income and adjusted earnings per diluted share reflects no adjustments for either period presented. Management believes providing adjusted measures and excluding certain items facilitates comparisons to the Company’s prior year periods and, when combined with the GAAP presentation of net income and diluted net income per share, is beneficial to an investor’s understanding of the Company’s performance.

    Adjusted segment EBITDA, a non-GAAP financial measure, is calculated by adding back segment depreciation and amortization expense to segment operating income, and excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income under GAAP, but that management would not consider important in evaluating the quality of the Company’s segment operating results as they are not indicative of each segment's core operating results or may obscure trends useful in evaluating the segment's continuing activities. Adjusted segment EBITDA Margin is calculated by dividing Adjusted segment EBITDA by segment total net sales. A reconciliation of adjusted segment EBITDA to income from operations is included in the tables following this release.

    First Quarter 2022 Conference Call

    Wabash will discuss its results during its quarterly investor conference call on Wednesday, April 27, 2022, beginning at 10:00 a.m. EDT. The call and an accompanying slide presentation will be accessible on the "Investors" section of the Company’s website www.onewabash.com. The conference call will also be accessible by dialing (888) 440-6928, conference ID 6579482. A replay of the call will be available on the site shortly after the conclusion of the presentation.

    About

    Wabash (NYSE: WNC) is the visionary leader of connected solutions for the transportation, logistics and distribution industries that is Changing How the World Reaches You™. Headquartered in Lafayette, Indiana, the company enables customers to thrive by providing insight into tomorrow and delivering pragmatic solutions today to move everything from first to final mile. Wabash designs, manufactures, and services a diverse range of products, including: dry freight and refrigerated trailers, flatbed trailers, tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade processing equipment. Learn more at onewabash.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, all statements regarding the Company’s outlook for trailer and truck body shipments, backlog, expectations regarding demand levels for trailers, truck bodies, non-trailer equipment and our other diversified product offerings, pricing, profitability and earnings, cash flow and liquidity, opportunity to capture higher margin sales, new product innovations, our growth and diversification strategies, our expectations for improved financial performance during the course of the year and our expectations with regards to capital allocation. 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 a continued or prolonged shutdown or reduction of our operations, substantially reduced customer orders or sales volumes and supply disruptions due to the coronavirus (COVID-19) outbreak, the continued integration of Supreme into the Company’s business, adverse reactions to the transaction by customers, suppliers or strategic partners, uncertain economic conditions including the possibility that customer demand may not meet our expectations, increased competition, reliance on certain customers and corporate partnerships, risks of customer pick-up delays, shortages and costs of raw materials including the impact of tariffs or other international trade developments, risks in implementing and sustaining improvements in the Company’s manufacturing operations and cost containment, dependence on industry trends and timing, supplier constraints, labor costs and availability, customer acceptance of and reactions to pricing changes and costs of indebtedness. 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 BALANCE SHEETS
    (Unaudited - dollars in thousands)

     March 31,
    2022    		 December 31,
    2021
    Assets   
    Current assets:   
    Cash and cash equivalents$72,794  $71,778 
    Accounts receivable, net 290,035   176,511 
    Inventories, net 286,734   237,621 
    Prepaid expenses and other 46,374   43,795 
    Total current assets 695,937   529,705 
    Property, plant, and equipment, net 232,037   232,425 
    Goodwill 188,438   188,443 
    Intangible assets, net 109,402   114,441 
    Other assets 41,043   42,057 
    Total assets$1,266,857  $1,107,071 
    Liabilities and Stockholders’ Equity   
    Current liabilities:   
    Current portion of long-term debt$—  $— 
    Current portion of finance lease obligations —   59 
    Accounts payable 258,643   173,950 
    Other accrued liabilities 114,017   115,316 
    Total current liabilities 372,660   289,325 
    Long-term debt 484,354   428,315 
    Deferred income taxes 40,510   36,019 
    Other non-current liabilities 27,080   27,873 
    Total liabilities 924,604   781,532 
    Commitments and contingencies   
    Stockholders’ equity:   
    Common stock 200,000,000 shares authorized, $0.01 par value, 49,032,640 and 48,954,482 shares outstanding, respectively 764   759 
    Additional paid-in capital 656,863   653,978 
    Retained earnings 100,120   92,111 
    Accumulated other comprehensive income 14,687   859 
    Treasury stock at cost, 27,454,978 and 27,013,275 common shares, respectively (430,181)  (422,168)
    Total stockholders' equity 342,253   325,539 
    Total liabilities and stockholders’ equity$1,266,857  $1,107,071 



    WABASH NATIONAL CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited - dollars in thousands, except per share amounts)

     Three Months Ended March 31,
      2022   2021 
    Net sales$546,761  $392,003 
    Cost of sales 488,706   344,837 
    Gross profit 58,055   47,166 
    General and administrative expenses 26,332   22,867 
    Selling expenses 6,209   6,665 
    Amortization of intangible assets 5,039   5,798 
    Impairment and other, net 340   621 
    Income from operations 20,135   11,215 
    Other income (expense):   
    Interest expense (4,913)  (6,150)
    Other, net (71)  (14)
    Other expense, net (4,984)  (6,164)
    Income before income tax expense 15,151   5,051 
    Income tax expense 3,077   1,834 
    Net income$12,074  $3,217 
        
    Net income per share:   
    Basic$0.25  $0.06 
    Diluted$0.24  $0.06 
    Weighted average common shares outstanding (in thousands):   
    Basic 49,004   52,126 
    Diluted 49,730   53,044 
        
    Dividends declared per share$0.08  $0.08 



    WABASH NATIONAL CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited - dollars in thousands)

     Three Months Ended March 31,
      2022   2021 
    Cash flows from operating activities   
    Net income$12,074  $3,217 
    Adjustments to reconcile net income to net cash used in operating activities   
    Depreciation 8,225   6,432 
    Amortization of intangibles 5,039   5,798 
    Net gain on sale of property, plant and equipment (645)  (193)
    Deferred income taxes (50)  661 
    Stock-based compensation 2,277   2,032 
    Impairment 986   817 
    Non-cash interest expense 213   296 
    Accounts receivable (113,524)  (33,059)
    Inventories (49,113)  (63,422)
    Prepaid expenses and other 2,913   (7,031)
    Accounts payable and accrued liabilities 98,284   61,789 
    Other, net (1,246)  259 
    Net cash used in operating activities$(34,567) $(22,404)
    Cash flows from investing activities   
    Cash payments for capital expenditures (9,949)  (4,165)
    Proceeds from the sale of assets 1,445   203 
    Net cash used in investing activities$(8,504) $(3,962)
    Cash flows from financing activities   
    Proceeds from exercise of stock options 613   1,235 
    Dividends paid (4,337)  (4,253)
    Borrowings under revolving credit facilities 56,284   114 
    Payments under revolving credit facilities (318)  (114)
    Principal payments under finance lease obligations (59)  (85)
    Debt issuance costs paid (83)  — 
    Stock repurchases (8,013)  (19,321)
    Net cash provided by (used in) financing activities$44,087  $(22,424)
    Cash and cash equivalents:   
    Net increase (decrease) in cash, cash equivalents, and restricted cash$1,016  $(48,790)
    Cash, cash equivalents, and restricted cash at beginning of period 71,778   217,677 
    Cash, cash equivalents, and restricted cash at end of period$72,794  $168,887 



    WABASH NATIONAL CORPORATION
    SEGMENTS AND RELATED INFORMATION
    (Unaudited - dollars in thousands)

      Wabash National Corporation    
    Three Months Ended March 31,  2022   2021     
    Units Shipped        
    New trailers  11,695   9,660     
    New truck bodies  3,540   4,760     
    Used trailers  20   40     
             
    Three Months Ended March 31, Transportation
    Solutions    		 Parts &
    Services    		 Corporate and
    Eliminations    		 Consolidated
    2022        
    New Trailers $437,963  $54  $(311) $437,706 
    Used Trailers  —   569   —   569 
    Components, parts and service  —   33,564   (1,701)  31,863 
    Equipment and other  64,102   12,521   —   76,623 
    Total net external sales $502,065  $46,708  $(2,012) $546,761 
    Gross profit $47,682  $10,522  $(149) $58,055 
    Income (loss) from operations $31,697  $6,789  $(18,351) $20,135 
             
    2021        
    New Trailers $268,931  $—  $—  $268,931 
    Used Trailers  165   847   —   1,012 
    Components, parts and service  —   35,498   (1,711)  33,787 
    Equipment and other  76,023   12,250   —   88,273 
    Total net external sales $345,119  $48,595  $(1,711) $392,003 
    Gross profit $38,328  $10,466  $(1,628) $47,166 
    Income (loss) from operations $16,623  $6,384  $(11,792) $11,215 



    WABASH NATIONAL CORPORATION
    SEGMENT AND COMPANY FINANCIAL INFORMATION
    (Unaudited - dollars in thousands)

    Adjusted Operating Income1Three Months Ended
    March 31,
      2022   2021 
    Transportation Solutions   
    Income from operations$31,697  $16,623 
    Adjustments:   
    N/A —   — 
    Adjusted operating income 31,697   16,623 
        
    Parts & Services   
    Income from operations 6,789   6,384 
    Adjustments:   
    N/A —   — 
    Adjusted operating income 6,789   6,384 
        
    Corporate   
    Loss from operations (18,351)  (11,792)
    Adjustments:   
    N/A —   — 
    Adjusted operating loss (18,351)  (11,792)
        
    Consolidated   
    Income from operations 20,135   11,215 
    Adjustments:   
    N/A —   — 
    Adjusted operating income$20,135  $11,215 

    1 Adjusted operating income, a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities. Accordingly, the Company presents adjusted operating income excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating income to provide investors with a better understanding of the Company’s view of our results as compared to prior periods.



    WABASH NATIONAL CORPORATION
    RECONCILIATION OF GAAP FINANCIAL MEASURES TO
    NON-GAAP FINANCIAL MEASURES
    (Unaudited - dollars in thousands, except per share amounts)

    Operating EBITDA1:Three Months Ended March 31,
      2022   2021 
    Net income$12,074  $3,217 
    Income tax expense 3,077   1,834 
    Interest expense 4,913   6,150 
    Depreciation and amortization 13,264   12,230 
    Stock-based compensation 2,277   2,032 
    Impairment and other, net 340   621 
    Other, net 71   14 
    Operating EBITDA$36,016  $26,098 


    Adjusted Net Income2:Three Months Ended March 31,
      2022   2021 
    Net income$12,074  $3,217 
    Adjustments:   
    N/A —   — 
    Adjusted net income$12,074  $3,217 


    Adjusted Diluted Earnings Per Share2:Three Months Ended March 31,
      2022   2021 
    Diluted earnings per share$0.24  $0.06 
    Adjustments:   
    N/A —   — 
    Adjusted diluted earnings per share$0.24  $0.06 
        
    Weighted average diluted shares outstanding (in thousands) 49,730   53,044 

    1 Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, impairment and other, net, and other non-operating income and expense (including any loss on debt extinguishment charges). Management believes providing operating EBITDA is useful for investors to understand the Company’s performance and results of operations period to period with the exclusion of the items identified above. Management believes the presentation of operating EBITDA, when combined with the GAAP presentations of operating income and net income, is beneficial to an investor’s understanding of the Company’s operating performance.

    2 Adjusted net income and adjusted earnings per diluted share reflects no adjustments in either period presented. However, management believes providing adjusted measures and excluding certain items facilitates comparisons to the Company’s prior year periods and, when combined with the GAAP presentation of net income and diluted net income per share, is beneficial to an investor’s understanding of the Company’s performance.



    WABASH NATIONAL CORPORATION
    RECONCILIATION OF FREE CASH FLOW1
    (Unaudited - dollars in thousands)

     Three Months Ended March 31,
      2022   2021 
    Net cash used in operating activities$(34,567) $(22,404)
    Cash payments for capital expenditures (9,949)  (4,165)
    Free cash flow1$(44,516) $(26,569)

    1 Free cash flow is defined as net cash used in operating activities minus cash payments for capital expenditures. Management believes providing free cash flow is useful for investors to understand the Company’s performance and results of cash generation period to period with the exclusion of the item identified above. Management believes the presentation of free cash flow, when combined with the GAAP presentations of cash used in operating activities, is beneficial to an investor’s understanding of the Company’s operating performance.



    WABASH NATIONAL CORPORATION
    RECONCILIATION OF ADJUSTED SEGMENT EBITDA1
    AND ADJUSTED SEGMENT EBITDA MARGIN1
    (Unaudited - dollars in thousands)

     Transportation Solutions Parts & Services
    Three Months Ended March 31, 2022 2022   2021   2022   2021 
    Income from operations$31,697  $16,623  $6,789  $6,384 
    Depreciation and amortization 11,533   10,386   1,036   1,315 
    Impairment and other, net (621)  818   (10)  (197)
    Adjusted segment EBITDA$42,609  $27,827  $7,815  $7,502 
            
    Adjusted segment EBITDA margin 8.5%  8.1%  16.7%  15.4%

    1 Adjusted segment EBITDA, a non-GAAP financial measure, is calculated by adding back segment depreciation and amortization expense to segment operating income, and excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income under GAAP, but that management would not consider important in evaluating the quality of the Company’s segment operating results as they are not indicative of each segment's core operating results or may obscure trends useful in evaluating the segment's continuing activities. Adjusted segment EBITDA margin is calculated by dividing Adjusted segment EBITDA by segment total net sales.

    Media Contact:
    Dana Stelsel
    Director, Communications
    (765) 771-5766
    dana.stelsel@onewabash.com

    Investor Relations:
    Ryan Reed
    Sr Director, Corporate Development & Investor Relations
    (765) 490-5664
    ryan.reed@onewabash.com


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