SOURCE:
Wabash National Corporation
2008-07-30 15:45:00
Wabash National Corporation Announces Second Quarter and Year-to-Date Results
LAFAYETTE, IN–(EMWNews – July 30, 2008) – Wabash National Corporation (
reported a net loss of $3.2 million, or $0.11 per share, for the second
quarter of 2008 on net sales of $201.5 million. For the same quarter last
year, the company reported net income of $5.9 million, or $0.18 per diluted
share, on revenue of $294.8 million. For the six months ended June 30,
2008, the net loss totaled $9.6 million, or $0.32 per share on sales of
$362.5 million. In the comparable period of 2007, the company reported net
income of $6.9 million or $0.22 per diluted share on sales of $553.7
million.
Dick Giromini, President and Chief Executive Officer, stated, “Our second
quarter results were generally in-line with our previously stated
expectations. Despite increasing raw material costs, we were able to
achieve incremental improvement in our gross margin when compared to the
first quarter of 2008. Our efforts to bring capacity in-line with demand,
right-size our operating footprint and optimize our strategic pricing and
sourcing efforts continue to positively impact our operating results.”
“The prolonged residential housing correction and macroeconomic and
industry-related headwinds continued to impact carrier and trailer demand
during the second quarter,” continued Giromini. “As a result, we now
anticipate new trailer sales for the year to be in the range of 32,000 to
33,000 units, of which we have shipped or have orders for delivery for 2008
of approximately 29,000 units. As of June 30, 2008 our backlog was
approximately $393 million compared to $537 million at March 31, 2008.”
“Despite the near-term challenges, we are beginning to see encouraging
signs for the future, such as the rightsizing of carrier capacity and an
improving rate environment which bode well for our customers and will
eventually increase demand for our core trailer product. More importantly,
we have made good progress on our strategic initiatives, designed to
diversify our business model to counter the cyclical nature of the trailer
industry.”
Wabash National Corporation will conduct a conference call to review and
discuss its first quarter results on Thursday, July 31, 2008, at 10:00 a.m.
EDT. The phone number to access the conference call is 877-407-8035. The
call can also be accessed live 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
October 23, 2008.
Headquartered in Lafayette, Ind., Wabash National® Corporation (
Established in 1985, the company specializes in the design and production
of dry freight vans, refrigerated vans, flatbed trailers, drop deck
trailers, dump trailers, truck bodies and intermodal equipment. Its
innovative core products are sold under the DuraPlate®, ArcticLite®,
Eagle® and Benson™ brand names. The company operates two wholly owned
subsidiaries: Transcraft® Corporation, a manufacturer of flatbed, drop
deck and dump trailers and truck bodies; and Wabash National Trailer
Centers, trailer service centers and retail distributors of new and used
trailers and aftermarket parts throughout the U.S.
This press release contains certain forward-looking statements, as defined
by the Private Securities Litigation Reform Act of 1995. These
forward-looking statements including statements about the company’s
expectations for improvement in future results 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, 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, and dependence on industry trends. 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 Six Months Ended
June 30, June 30,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
NET SALES $201,484 $294,849 $362,545 $553,703
COST OF SALES 190,711 267,017 345,867 505,686
-------- -------- -------- --------
Gross profit 10,773 27,832 16,678 48,017
GENERAL AND ADMINISTRATIVE EXPENSES 10,457 12,439 21,956 25,159
SELLING EXPENSES 3,326 3,963 6,769 8,113
-------- -------- -------- --------
(Loss) Income from operations (3,010) 11,430 (12,047) 14,745
OTHER INCOME (EXPENSE)
Interest expense (1,021) (1,448) (2,195) (2,994)
Foreign exchange, net 19 362 (6) 396
Gain on debt extinguishment 27 - 151 -
Other, net (228) (565) (196) (506)
-------- -------- -------- --------
(Loss) Income before income taxes (4,213) 9,779 (14,293) 11,641
INCOME TAX (BENEFIT) EXPENSE (1,010) 3,904 (4,703) 4,770
-------- -------- -------- --------
NET (LOSS) INCOME $ (3,203) $ 5,875 $ (9,590) $ 6,871
======== ======== ======== ========
COMMON STOCK DIVIDENDS DECLARED $ 0.045 $ 0.045 $ 0.09 $ 0.09
======== ======== ======== ========
BASIC NET (LOSS) INCOME PER SHARE $ (0.11) $ 0.19 $ (0.32) $ 0.23
======== ======== ======== ========
DILUTED NET (LOSS) INCOME PER SHARE $ (0.11) $ 0.18 $ (0.32) $ 0.22
======== ======== ======== ========
COMPREHENSIVE (LOSS) INCOME
Net (loss) income $ (3,203) $ 5,875 $ (9,590) $ 6,871
Foreign currency translation
adjustment - 206 - 226
-------- -------- -------- --------
NET COMPREHENSIVE (LOSS) INCOME $ (3,203) $ 6,081 $ (9,590) $ 7,097
======== ======== ======== ========
Retail &
Manufac- Distri- Elimina-
Three months ended June 30, turing bution tions Total
--------------------------- -------- -------- -------- --------
2008
----
Net sales $176,118 $ 40,829 $(15,463) $201,484
(Loss) Income from operations $ (2,910) $ (383) $ 283 $ (3,010)
2007
----
Net sales $268,652 $ 40,555 $(14,358) $294,849
Income (Loss) from operations $ 11,946 $ (290) $ (226) $ 11,430
Six months ended June 30,
-------------------------
2008
----
Net sales $318,381 $ 69,214 $(25,050) $362,545
(Loss) Income from operations $(11,392) $ (1,386) $ 731 $(12,047)
2007
----
Net sales $507,157 $ 82,855 $(36,309) $553,703
Income (Loss) from operations $ 16,047 $ (638) $ (664) $ 14,745
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2008 2007 2008 2007
-------- --------- -------- ---------
Basic net (loss) income per share
Net (loss) income applicable
to common stockholders $ (3,203) $ 5,875 $ (9,590) $ 6,871
======== ========= ======== =========
Weighted average common shares
outstanding 29,927 30,233 29,903 30,263
======== ========= ======== =========
Basic net (loss) income per
share $ (0.11) $ 0.19 $ (0.32) $ 0.23
======== ========= ======== =========
Diluted net (loss) income per share
Net (loss) income applicable to
common stockholders $ (3,203) $ 5,875 $ (9,590) $ 6,871
After-tax equivalent of
interest on convertible notes - 741 - 1,482
-------- --------- -------- ---------
Diluted net (loss) income
applicable to common
stockholders $ (3,203) $ 6,616 $ (9,590) $ 8,353
Weighted average common shares
outstanding 29,927 30,233 29,903 30,263
Dilutive stock options/shares - 306 - 265
Convertible notes equivalent
shares - 6,676 - 6,667
-------- --------- -------- ---------
Diluted weighted average common
shares outstanding 29,927 37,215 29,903 37,195
======== ========= ======== =========
Diluted net (loss) income per
share $ (0.11) $ 0.18 $ (0.32) $ 0.22
======== ========= ======== =========
Average diluted shares outstanding for the three and six month periods
ended June 30, 2008 exclude the antidilutive effects of the Company's
Convertible Notes. For the three and six month periods ended June 30, 2008,
the after-tax equivalent of interest on Convertible Notes was $0.2 million
and $0.7 million, respectively, and the Convertible Notes equivalent shares
were 1.6 million and 3.2 million, respectively. Diluted shares outstanding
for the three and six month periods ended June 30, 2008 also exclude the
antidilutive effects of potentially dilutive stock options totaling
approximately 83,000 and 99,000 shares of common stock, respectively.
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
June 30, December 31,
2008 2007
----------- -----------
(Unaudited)
ASSETS
------
CURRENT ASSETS
Cash and cash equivalents $ 27,777 $ 41,224
Accounts receivable, net 49,009 68,752
Inventories 133,264 113,125
Deferred income taxes 14,377 14,514
Prepaid expenses and other 2,595 4,046
----------- -----------
Total current assets 227,022 241,661
PROPERTY, PLANT AND EQUIPMENT, net 118,041 122,063
DEFERRED INCOME TAXES 7,393 2,772
GOODWILL 66,317 66,317
INTANGIBLE ASSETS 30,772 32,498
OTHER ASSETS 16,985 18,271
----------- -----------
$ 466,530 $ 483,582
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Accounts payable 65,150 40,787
Other accrued liabilities 47,143 54,258
----------- -----------
Total current liabilities 112,293 95,045
LONG-TERM DEBT 80,407 104,500
OTHER NONCURRENT LIABILITIES AND CONTINGENCIES 4,082 4,108
STOCKHOLDERS' EQUITY 269,748 279,929
----------- -----------
$ 466,530 $ 483,582
=========== ===========
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Six Months Ended June 30,
-----------------------
2008 2007
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income $ (9,590) $ 6,871
Adjustments to reconcile net (loss) income to net
cash provided by operating activities
Depreciation and amortization 10,381 9,623
Net loss (gain) on the sale of assets 315 (81)
Gain on debt extinguishment (151) -
Deferred income taxes (4,484) 4,478
Excess tax benefits from stock-based
compensation (5) (33)
Stock-based compensation 2,170 1,967
Changes in operating assets and liabilities
Accounts receivable 19,743 18,444
Inventories (20,139) (46,378)
Prepaid expenses and other 1,452 1,207
Accounts payable and accrued liabilities 17,005 12,190
Other, net (61) 393
---------- ----------
Net cash provided by operating activities 16,636 8,681
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (3,746) (4,017)
Acquisition, net of cash acquired - (4,500)
Proceeds from the sale of property, plant and
equipment 47 95
---------- ----------
Net cash used in investing activities (3,699) (8,422)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options 81 74
Excess tax benefits from stock-based compensation 5 33
Borrowings under revolving credit facilities 82,184 86,619
Payments under revolving credit facilities (28,184) (86,619)
Payments under long-term debt obligations (77,726) -
Repurchases of common stock - (8,210)
Common stock dividends paid (2,744) (2,767)
---------- ----------
Net cash used in financing activities (26,384) (10,870)
---------- ----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (13,447) (10,611)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 41,224 29,885
---------- ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 27,777 $ 19,274
========== ==========
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