Actionable news
0
All posts from Actionable news
Actionable news in WNC: WABASH NATIONAL Corp,

Wabash National: Vice President, Finance & Investor Relations

The following excerpt is from the company's SEC filing.

(765) 771-5581

michael.pettit@wabashnational.com

Wabash National Corporation Announces First Quarter 2016 Results;

Reports Best First Quarter Performance in Company History and Increases Full-Year Outlook

First quarter GAAP and non-GAAP earnings of $0.42 per diluted share exceeds prior year period by 180 percent and 121 percent, respectively

Net sales of $448 million for first quarter 2016 represents best first quarter in company history

Record first quarter operating income of $48.2M increases 77 percent over prior year

Record gross margin and operating income margin of 17.8 percent and 10.8 percent, respectively

Non-GAAP full-year adjusted earnings guidance increases to $1.65 - $1.75 per diluted share representing a year over year improvement of 14 percent at the midpoint of the range

(NYSE: WNC), a diversified industrial manufacturer and North America’s leading producer of semi-trailers and liquid transportation systems, today reported results for the first quarter ended March 31, 2016.

Net income for the first quarter of 2016 was $27.5 million, or $0.42 per diluted share, compared to the first quarter 2015 net income of $10.5 million, or $0.15 per diluted share. First quarter 2016 non-GAAP adjusted earnings increased $14.0 million over the prior year period to $27.8 million, or $0.42 per diluted share. Non-GAAP adjusted earnings for the first quarter of 2016 includes an early extinguishment of debt charge of $0.5 million related to the Company’s repurchase of a portion of its outstanding convertible senior notes.

Net sales for the first quarter increased 2 percent to $448 million from $438 million in the prior year quarter while operating income increased 77 percent on improved pricing and operational execution to $48.2 million, compared to $27.3 million for the first quarter of 2015. Operating EBITDA, a non-GAAP measure that excludes the effects of certain recurring and non-recurring items, for the first quarter of 2016 was $59.8 million, an increase of $20.7 million, or 53 percent, compared to operating EBITDA for the prior year period. On a trailing twelve month basis, net sales exceeded $2.0 billion, generating Operating EBITDA of $250.1 million, or 12.3 percent of net sales. The continued year-over-year improvement in operating performance is attributable to the successful execution of the Company’s growth and diversification strategies, strong pricing environment within our Commercial Trailer Products segment and operational improvements across the Company’s manufacturing facilities.

The following is a summary of select operating and financial results for the past five quarters:

Three Months Ended

(Dollars in thousands, except

March 31,

June 30,

September 30,

December 31,

per share amounts)

Net Sales

437,597

514,831

531,350

543,711

447,676

Gross Profit Margin

Income from Operations

27,263

42,054

56,389

54,663

48,185

Income from Operations Margin

Net Income

10,474

28,649

31,880

33,286

27,524

Diluted EPS

Non-GAAP Measures

39,135

53,655

68,030

68,643

59,820

Operating EBITDA Margin

Adjusted Earnings

13,788

23,586

34,138

27,831

Adjusted Diluted EPS

Notes:

See “Non-GAAP Measures” below for explanation of the non-GAAP results included above.

Dick Giromini, president and chief executive officer, stated, “First quarter results represent the best in our Company’s history as we set first quarter records for sales, gross profit, income from operations and operating EBITDA. Furthermore, we established new records for gross profit margin and operating income margin of 17.8 percent and 10.8 percent, respectively. The momentum generated in 2015 has continued into the first quarter of 2016 with strong operational execution throughout the Company, along with margin enhancement through improved pricing and a continued strong demand environment within our Commercial Trailer Products segment.”

Mr. Giromini continued, “New trailer shipments for the first quarter were approximately 14,500, exceeding our previous guidance of 13,000 to 14,000 trailers driven by strong customer pick-ups and favorable weather conditions. A robust backlog of $1.1 billion; overall trailer market projections by ACT Research and FTR; customer commentary; and outstanding operational execution across the business, have put us on pace to deliver another record year in 2016, our fifth consecutive year of record performance. As such, we are increasing our full-year adjusted earnings guidance to $1.65 to $1.75 per diluted share.”

First Quarter 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 2016 and 2015, respectively. A complete disclosure of the results by individual segment is included in the tables following this release.

(dollars in thousands)

Diversified

Retail

Three months ended March 31,

New trailers shipped

14,300

354,848

79,424

34,037

Gross profit

59,583

18,524

Gross profit margin

Income (Loss) from operations

52,060

Income (Loss) from operations margin

13,600

314,504

103,992

43,140

29,633

23,373

Income from operations

22,770

10,611

Income from operations margin

Commercial Trailer Products’ net sales increased $40 million, or 12.8 percent, on shipments of 14,300 trailers, or 700 more trailers than the prior year period. This increase in revenue was primarily due to an improved pricing environment, a 5.1 percent increase in trailer shipments and product mix. Supported by higher volumes, pricing and continued operational improvements, gross profit and gross profit margin increased $30.0 million and 740 basis points, respectively, as compared to the same period last year. Operating income increased $29.3 million, or 128.6 percent, from the first quarter last year to $52.1 million.

Diversified Products’ net sales decreased $25 million, or 23.6 percent, primarily the result of lower tank trailer shipments as compared to the previous year period. Demand for non-trailer truck mounted equipment, process systems and composite products were comparable with the previous year period. Gross profit and operating income declined $4.8 million and $4.0 million, respectively, compared to the prior year period, primarily due to lower overall net sales and pricing pressures on certain products. However, gross profit margin improved 80 basis points as compared to the prior year as a result of continued strong operational execution and product mix.

Retail’s net sales of $34 million decreased 21.1 percent compared with the prior year period primarily due to lower shipments of new trailers. Gross profit and operating income declined $1.1 million and $1.3 million, respectively, compared to the prior year period due to lower net sales. Gross profit margin of 11.1 percent was comparable with the prior year period despite lower sales due to a higher mix of parts and service product lines.

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, operating EBITDA margin, adjusted earnings and adjusted earnings per diluted share.

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 of intangibles and other non-operating income and expense. Management believes operating EBITDA provides useful information to investors regarding the Company’s results of operations. The Company provides this measure because we believe it is useful for investors to understand the Company’s performance period to period with the exclusion of the recurring and non-recurring items identified above. Management believes the presentation of operating EBITDA, when combined with the primary GAAP presentation of operating 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.

Adjusted earnings and adjusted earnings per diluted share for the first quarter of 2016 and 2015 reflect adjustments for charges related to the extinguishment of debt. For certain other periods presented, we have excluded from these measures income recognized on the sale of former retail branch locations as well as charges related to losses incurred in connection with the Company’s impairment of intangible assets. Management believes providing these measures and excluding these items facilitate comparisons to the Company’s prior year periods and, when combined with the primary GAAP presentation of net income and diluted net income per share, is beneficial to an investor’s understanding of the Company’s performance. A reconciliation of adjusted earnings and adjusted earnings per diluted share to net income and diluted net income per share is included in the tables following this release.

First Quarter 2016 Conference Call

Wabash National will conduct a conference call to review and discuss its first quarter results on April 27, 2016, at 10:00 a.m. EDT. Access to the live webcast will be available 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 July 20, 2016. Meeting access also will be available via conference call at 888-771-4371, participant code 42294454.

About Wabash National Corporation

Headquartered in Lafayette, Indiana, Wabash National Corporation (NYSE: WNC) is a diversified industrial manufacturer and North America’s leading producer of semi-trailers and liquid transportation systems. Established in 1985, the Company manufactures a diverse range of products including: dry freight and refrigerated trailers, platform trailers, bulk tank trailers, dry and refrigerated truck bodies, truck-mounted tanks, intermodal equipment, aircraft refueling equipment, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade and pharmaceutical equipment. Its innovative products are sold under the following brand names: Wabash National

, Beall

, Benson

, Brenner

Tank, Bulk Tank International, DuraPlate

, Extract Technology

, Garsite, Progress Tank, Transcraft

, Walker Engineered Products, and Walker Transport. Visit www.wabashnational.com to learn more.

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, the Company’s adjusted earnings guidance for 2016, statements regarding the Company’s outlook for trailer shipments, backlog, expectations regarding demand levels for trailers, non-trailer equipment and our other diversified products, pricing, profitability and earnings, cash flow and liquidity, opportunity to capture higher margin sales, new product innovations, and our growth and diversification strategies. 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 the 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, risks in implementing and sustaining improvements in the Company’s manufacturing capacity and cost containment, dependence on industry trends and timing 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 STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share amounts)

(Unaudited)

Three Months Ended March 31,

Cost of sales

368,150

380,400

79,526

57,197

General and administrative expenses

19,392

18,051

Selling expenses

Amortization of intangibles

Other income (expense):

Interest expense

(4,095

(5,173

Other, net

(5,382

Income before income taxes

43,692

16,708

Income tax expense

16,168

Basic net income per share

Diluted net income per share

Comprehensive income

Foreign currency translation adjustment

Net comprehensive income

27,427

10,171

Basic net income per share:

Net income applicable to common stockholders

Weighted average common shares outstanding

65,037

68,731

Diluted net income per share:

Dilutive shares from assumed conversion of convertible senior notes

Dilutive stock options and restricted stock

Diluted weighted average common shares outstanding

66,224

71,555

SEGMENTS AND RELATED INFORMATION

(Dollars in thousands)

Three Months Ended March 31,

Trailer Products

Products

Corporate and

Eliminations

Consolidated

Used trailers shipped

New Trailers

347,582

29,776

11,839

(17,388

371,809

Used Trailers

Components, parts and service

20,522

19,768

(2,985

38,935

Equipment and other

28,225

32,179

Total net external sales

(20,633

(2,366

(10,348

14,350

307,680

54,018

19,857

(20,283

361,272

23,463

19,941

(3,282

41,513

25,342

29,229

(24,039

(7,244

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31,

ASSETS

Current assets

Cash and cash equivalents

168,411

178,853

Accounts receivable

159,443

152,824

Inventories

208,209

166,982

Deferred income taxes

22,431

Prepaid expenses and other

12,180

Total current assets

548,243

529,507

Property, plant and equipment

138,722

140,438

14,255

Goodwill

149,768

149,718

Intangible assets

109,548

114,616

Other assets

15,134

14,033

975,670

949,670

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Current portion of long-term debt

37,611

Current portion of capital lease obligations

Accounts payable

123,720

79,618

Other accrued liabilities

95,256

93,042

Total current liabilities

222,135

211,077

Long-term debt

277,690

274,885

Capital lease obligations

Other noncurrent liabilities

21,473

20,525

Commitments and contingencies

Stockholders' equity

451,975

439,811

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Cash flows from operating activities

Adjustments to reconcile net income to net cash provided by (used in) operating activities

Depreciation

Excess tax benefits from stock-based compensation

(1,090

Loss on debt extinguishment

Stock-based compensation

Non-cash interest expense

Changes in operating assets and liabilities

(6,619

(21,686

(41,227

(65,843

(3,763

Accounts payable and accrued liabilities

46,316

57,625

Net cash provided by (used in) operating activities

42,904

Cash flows from investing activities

Capital expenditures

(2,976

(2,975

Net cash provided by (used in) investing activities

Cash flows from financing activities

Proceeds from exercise of stock options

Borrowings under revolving credit facilities

Payments under revolving credit facilities

Principal payments under capital lease obligations

Proceeds from issuance of term loan credit facility

192,845

Principal payments under term loan credit facility

(192,845

Principal payments under industrial revenue bond

Debt issuance costs paid

(1,994

Stock repurchase

(8,757

(19,929

Convertible senior notes repurchase

(42,061

Net cash provided by (used in) financing activities

(50,370

(21,758

Net increase (decrease) in cash and cash equivalents

(10,442

(20,504

Cash and cash equivalents at beginning of period

146,113

Cash and cash equivalents at end of period

125,609

RECONCILIATION OF GAAP FINANCIAL MEASURES TO

NON-GAAP FINANCIAL MEASURES

Operating EBITDA

Depreciation and amortization

Impairment of Intangibles

Other non-operating (income) expense

59,819

Trailing Twelve Months

June 30,

September 30,

121,338

16,672

19,538

16,578

68,957

18,470

37,709

10,060

(8,069

(7,474

250,147

Adjusted Earnings

Three Months Ended March 31,

Per Share

Adjustments:

Loss on debt extinguishment, net of taxes

Weighted Average # of Diluted Shares O/S

71,557

June 30, 2015

September 30, 2015

December 31, 2015

Per Share

Loss on debt extinguishment, net of taxes

Impairment of intangibles, net of taxes

Branch Transactions, net of taxes

(5,274

70,694

68,042

67,218

Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, and other non-operating income and expense.

Adjusted earnings and adjusted earnings per diluted share reflect adjustments for non-recurring charges related to losses incurred in connection with the Company’s extinguishment of debt. Historically, we have also excluded income recognized on the sale of former retail branch locations as well as an impairment of intangibles.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

To receive a free e-mail notification whenever Wabash National Corporation makes a similar move, sign up!

Other recent filings from the company include the following:

Quarterly report [Sections 13 or 15(d)] - April 26, 2016
Wabash National Corporation releases salary data. CEO sees compensation rise 32% - March 31, 2016