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

Wabash National Corporation Announces First Quarter 2016 Results; Reports Best First Quarter Performance in Company History and Increases Full-Year Outlook

Press Release

LAFAYETTE, Ind., Apr 26, 2016 (GLOBE NEWSWIRE via COMTEX) --

  • 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

Wabash National Corporation 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 per share amounts) March 31, June 30, September 30, December 31, March 31,
2015 2015 2015 2015 2016
Net Sales $ 437,597 $ 514,831 $ 531,350 $ 543,711 $ 447,676
Gross Profit Margin 13.1 % 14.1 % 16.2 % 16.2 % 17.8 %
Income from Operations $ 27,263 $ 42,054 $ 56,389 $ 54,663 $ 48,185
Income from Operations Margin 6.2 % 8.2 % 10.6 % 10.1 % 10.8 %
Net Income $ 10,474 $ 28,649 $ 31,880 $ 33,286 $ 27,524
Diluted EPS $ 0.15 $ 0.41 $ 0.47 $ 0.50 $ 0.42
Non-GAAP Measures [(1)] :
Operating EBITDA $ 39,135 $ 53,655 $ 68,030 $ 68,643 $ 59,820
Operating EBITDA Margin 8.9 % 10.4 % 12.8 % 12.6 % 13.4 %
Adjusted Earnings $ 13,788 $ 23,586 $ 31,880 $ 34,138 $ 27,831
Adjusted Diluted EPS $ 0.19 $ 0.33 $ 0.47 $ 0.51 $ 0.42
` `

Notes:

(1) 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) Commercial Diversified
Trailer Products Products Retail
Three months ended March 31,
2016
New trailers shipped 14,300 500 400
Net sales $ 354,848 $ 79,424 $ 34,037
Gross profit $ 59,583 $ 18,524 $ 3,785
Gross profit margin 16.8 % 23.3 % 11.1 %
Income (Loss) from operations $ 52,060 $ 6,622 $ (149 )
Income (Loss) from operations margin 14.7 % 8.3 % -0.4 %
2015
New trailers shipped 13,600 850 750
Net sales $ 314,504 $ 103,992 $ 43,140
Gross profit $ 29,633 $ 23,373 $ 4,853
Gross profit margin 9.4 % 22.5 % 11.2 %
Income from operations $ 22,770 $ 10,611 $ 1,126
Income from operations margin 7.2 % 10.2 % 2.6 %

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...


More