- Record quarterly revenue of $655.2 million
- Operating income of $52.9 million with operating margin at 8.1%, up 430 basis points year-over-year
- Record earnings per share of $0.73, exceeding prior quarterly outlook range
- Robust backlog of $2.3B establishes a third quarter record; increases 20% year-over-year
- 2022 EPS outlook increased to $2.15
LAFAYETTE, Ind., Oct. 26, 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 September 30, 2022.
Net sales for the third quarter 2022 of $655.2 million increased 35.8% versus the prior year quarter as the Company continued to execute well on strong customer demand. Consolidated gross profit was $92.0 million, or 14.0% of sales. Operating income was $52.9 million, or 8.1% of sales during the quarter. Versus the same quarter last year, gross and operating margins expanded by 340 basis points and 430 basis points, respectively. Third quarter diluted earnings per share was $0.73, which exceeded the Company's prior quarterly outlook.
Total company backlog as of September 30, 2022 was approximately $2.3 billion, which is an increase of 20 percent versus the third quarter of 2021 and also represents an all-time third quarter record.
"During the third quarter, Wabash executed very well to generate record sales of $655.2 million as well as record quarterly EPS of $0.73," explained Brent Yeagy, president and chief executive officer. "This is a meaningful step forward in our financial performance and what makes the quarter even more exciting is the progress made against our strategic plan as we added new dealers, announced a new product line brand, and added additional strategically-aligned expertise to our board of directors that will support Wabash for years into the future."
For the full-year ending December 31, 2022, the company maintained its outlook for revenue of $2.5 billion and increased its EPS guidance to $2.15.
"Demand conditions remain strong as evidenced by our order book, which set a third quarter record at $2.3 billion and implies $1.7 billion of orders in 2023," said Yeagy. "Our process of booking orders has shifted from transactional to strategic as we engage with customers to plan for how Wabash can serve their needs from across our first to final mile portfolio for the next several years as opposed to the usual one-year out conversation and we expect to have updates on that front in the weeks and months to come."
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 third 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 September 30, | 2022 | 2021 | ||||||||||||||
| New Units Shipped | ||||||||||||||||
| Trailers | 13,365 | 12,455 | ||||||||||||||
| Truck bodies | 4,115 | 3,780 | ||||||||||||||
| Transportation Solutions | Parts & Services | |||||||||||||||
| Three Months Ended September 30, | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| (Unaudited, dollars in thousands) | ||||||||||||||||
| Net sales | $ | 611,779 | $ | 442,636 | $ | 46,728 | $ | 41,903 | ||||||||
| Gross profit | $ | 80,779 | $ | 44,705 | $ | 11,226 | $ | 8,268 | ||||||||
| Gross profit margin | 13.2 | % | 10.1 | % | 24.0 | % | 19.7 | % | ||||||||
| Income from operations | $ | 63,274 | $ | 25,970 | $ | 7,732 | $ | 4,148 | ||||||||
| Income from operations margin | 10.3 | % | 5.9 | % | 16.5 | % | 9.9 | % | ||||||||
Transportation Solutions' net sales for the third quarter were $611.8 million, an increase of 38.2%, as compared to the prior year quarter, as operations continued to scale up. Operating income was $63.3 million or 10.3% of sales during the quarter.
Parts & Services' net sales for the third quarter were $46.7 million, an increase of 11.5% as compared to the prior year quarter as the segment continued to achieve milestones along its path of strategic growth. Operating income was $7.7 million, or 16.5% 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 and margin, adjusted net income attributable to common stockholders, adjusted diluted 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 includes noncontrolling interest and 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, the most comparable GAAP financial measure, is included in the tables following this release.
Free cash flow is defined as net cash provided by (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, the most comparable GAAP financial measure, 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 attributable to common stockholders and adjusted diluted earnings per share reflect adjustments for debt transactions and the impact of sales and divestitures, and the related tax effects of these adjustments. 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. A reconciliation of adjusted net income attributable to common stockholders and adjusted diluted earnings per share to net income attributable to common stockholders and diluted earnings per share, the most comparable GAAP financial measures, are included in the tables following this release.
Adjusted segment EBITDA, a non-GAAP financial measure, includes noncontrolling interest and 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, the most comparable GAAP financial measure, is included in the tables following this release.
Third Quarter 2022 Conference Call
Wabash will discuss its results during its quarterly investor conference call on Wednesday, October 26, 2022, beginning at 11:00 a.m. EDT. The call and an accompanying slide presentation will be accessible on the "Investors" section of the Company's website at 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 www.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)
| September 30, 2022 | December 31, 2021 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 81,478 | $ | 71,778 | |||
| Accounts receivable, net | 248,086 | 176,511 | |||||
| Inventories, net | 309,701 | 237,621 | |||||
| Prepaid expenses and other | 35,251 | 43,795 | |||||
| Total current assets | 674,516 | 529,705 | |||||
| Property, plant, and equipment, net | 252,383 | 232,425 | |||||
| Goodwill | 188,441 | 188,443 | |||||
| Intangible assets, net | 102,415 | 114,441 | |||||
| Other assets | 51,560 | 42,057 | |||||
| Total assets | $ | 1,269,315 | $ | 1,107,071 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities: | |||||||
| Current portion of long-term debt | $ | - | $ | - | |||
| Current portion of finance lease obligations | - | 59 | |||||
| Accounts payable | 239,049 | 173,950 | |||||
| Other accrued liabilities | 158,315 | 115,316 | |||||
| Total current liabilities | 397,364 | 289,325 | |||||
| Long-term debt | 443,662 | 428,315 | |||||
| Deferred income taxes | 33,100 | 36,019 | |||||
| Other non-current liabilities | 34,714 | 27,873 | |||||
| Total liabilities | 908,840 | 781,532 | |||||
| Commitments and contingencies | |||||||
| Noncontrolling interest | 373 | - | |||||
| Wabash National Corporation stockholders' equity: | |||||||
| Common stock 200,000,000 shares authorized, $0.01 par value, 48,065,277 and 48,954,482 shares outstanding, respectively | 765 | 759 | |||||
| Additional paid-in capital | 662,581 | 653,978 | |||||
| Retained earnings | 150,943 | 92,111 | |||||
| Accumulated other comprehensive (loss) income | (7,474 | ) | 859 | ||||
| Treasury stock at cost, 28,509,690 and 27,013,275 common shares, respectively | (446,713 | ) | (422,168 | ) | |||
| Total Wabash National Corporation stockholders' equity | 360,102 | 325,539 | |||||
| Total liabilities, noncontrolling interest, and equity | $ | 1,269,315 | $ | 1,107,071 | |||
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - dollars in thousands, except per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net sales | $ | 655,150 | $ | 482,566 | $ | 1,844,680 | $ | 1,323,991 | |||||||
| Cost of sales | 563,145 | 431,521 | 1,616,586 | 1,170,172 | |||||||||||
| Gross profit | 92,005 | 51,045 | 228,094 | 153,819 | |||||||||||
| General and administrative expenses | 27,845 | 20,966 | 85,121 | 66,740 | |||||||||||
| Selling expenses | 7,752 | 5,590 | 21,337 | 18,320 | |||||||||||
| Amortization of intangible assets | 3,184 | 5,631 | 12,026 | 17,228 | |||||||||||
| Impairment and other, net | 349 | 595 | 692 | (631 | ) | ||||||||||
| Income from operations | 52,875 | 18,263 | 108,918 | 52,162 | |||||||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (5,210 | ) | (5,847 | ) | (15,341 | ) | (18,031 | ) | |||||||
| Other, net | (179 | ) | 232 | (577 | ) | (195 | ) | ||||||||
| Other expense, net | (5,389 | ) | (5,615 | ) | (15,918 | ) | (18,226 | ) | |||||||
| Income before income tax expense | 47,486 | 12,648 | 93,000 | 33,936 | |||||||||||
| Income tax expense | 11,130 | 1,640 | 21,831 | 7,459 | |||||||||||
| Net income | 36,356 | 11,008 | 71,169 | 26,477 | |||||||||||
| Net income attributable to noncontrolling interest | 186 | - | 373 | - | |||||||||||
| Net income attributable to common stockholders | $ | 36,170 | $ | 11,008 | $ | 70,796 | $ | 26,477 | |||||||
| Net income attributable to common stockholders per share: | |||||||||||||||
| Basic | $ | 0.75 | $ | 0.22 | $ | 1.45 | $ | 0.52 | |||||||
| Diluted | $ | 0.73 | $ | 0.22 | $ | 1.43 | $ | 0.51 | |||||||
| Weighted average common shares outstanding (in thousands): | |||||||||||||||
| Basic | 48,515 | 49,974 | 48,849 | 51,116 | |||||||||||
| Diluted | 49,402 | 50,581 | 49,651 | 51,785 | |||||||||||
| Dividends declared per share | $ | 0.08 | $ | 0.08 | $ | 0.24 | $ | 0.24 | |||||||
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - dollars in thousands)
| Nine Months Ended September 30, | |||||||
| 2022 | 2021 | ||||||
| Cash flows from operating activities | |||||||
| Net income | $ | 71,169 | $ | 26,477 | |||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||||||
| Depreciation | 25,239 | 19,593 | |||||
| Amortization of intangibles | 12,026 | 17,228 | |||||
| Net gain on sale of property, plant and equipment and business divestiture | (635 | ) | (1,447 | ) | |||
| Loss on debt extinguishment | - | 452 | |||||
| Deferred income taxes | (178 | ) | (1,756 | ) | |||
| Stock-based compensation | 7,367 | 5,889 | |||||
| Impairment | 1,339 | 817 | |||||
| Non-cash interest expense | 644 | 882 | |||||
| Accounts receivable | (71,575 | ) | (118,176 | ) | |||
| Inventories | (72,080 | ) | (96,818 | ) | |||
| Prepaid expenses and other | (716 | ) | 1,054 | ||||
| Accounts payable and accrued liabilities | 101,101 | 65,424 | |||||
| Other, net | (1,545 | ) | 6,152 | ||||
| Net cash provided by (used in) operating activities | 72,156 | (74,229 | ) | ||||
| Cash flows from investing activities | |||||||
| Cash payments for capital expenditures | (42,304 | ) | (20,192 | ) | |||
| Proceeds from the sale of assets | 1,445 | 21,967 | |||||
| Net cash (used in) provided by investing activities | (40,859 | ) | 1,775 | ||||
| Cash flows from financing activities | |||||||
| Proceeds from exercise of stock options | 1,241 | 1,949 | |||||
| Dividends paid | (12,176 | ) | (12,470 | ) | |||
| Borrowings under revolving credit facilities | 72,244 | 347 | |||||
| Payments under revolving credit facilities | (57,279 | ) | (347 | ) | |||
| Principal payments under finance lease obligations | (59 | ) | (259 | ) | |||
| Principal payments under term loan credit facility | - | (30,000 | ) | ||||
| Debt issuance costs paid | (1,023 | ) | (50 | ) | |||
| Stock repurchases | (24,545 | ) | (55,019 | ) | |||
| Net cash used in financing activities | (21,597 | ) | (95,849 | ) | |||
| Cash and cash equivalents: | |||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 9,700 | (168,303 | ) | ||||
| Cash, cash equivalents, and restricted cash at beginning of period | 71,778 | 217,677 | |||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 81,478 | $ | 49,374 | |||
WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Unaudited - dollars in thousands)
| Wabash National Corporation | |||||||||||||
| Three Months Ended September 30, | 2022 | 2021 | |||||||||||
| Units Shipped | |||||||||||||
| New trailers | 13,365 | 12,455 | |||||||||||
| New truck bodies | 4,115 | 3,780 | |||||||||||
| Used trailers | 20 | 15 | |||||||||||
| Three Months Ended September 30, | Transportation S olutions | Parts & Services | Corporate and Eliminations | Consolidated | |||||||||
| 2022 | |||||||||||||
| New Trailers | $ | 529,659 | $ | 1,150 | $ | (301 | ) | $ | 530,508 | ||||
| Used Trailers | - | 693 | - | 693 | |||||||||
| Components, parts and service | - | 34,171 | - | 34,171 | |||||||||
| Equipment and other | 82,120 | 10,714 | (3,056 | ) | 89,778 | ||||||||
| Total net external sales | $ | 611,779 | $ | 46,728 | $ | (3,357 | ) | $ | 655,150 | ||||
| Gross profit | $ | 80,779 | $ | 11,226 | $ | - | $ | 92,005 | |||||
| Income (loss) from operations | $ | 63,274 | $ | 7,732 | $ | (18,131 | ) | $ | 52,875 | ||||
| Adjusted income (loss) from operations1 | $ | 63,274 | $ | 7,732 | $ | (18,131 | ) | $ | 52,875 | ||||
| 2021 | |||||||||||||
| New Trailers | $ | 375,430 | $ | - | $ | - | $ | 375,430 | |||||
| Used Trailers | - | 465 | - | 465 | |||||||||
| Components, parts and service | - | 31,974 | - | 31,974 | |||||||||
| Equipment and other | 67,206 | 9,464 | (1,973 | ) | 74,697 | ||||||||
| Total net external sales | $ | 442,636 | $ | 41,903 | $ | (1,973 | ) | $ | 482,566 | ||||
| Gross profit | $ | 44,705 | $ | 8,268 | $ | (1,928 | ) | $ | 51,045 | ||||
| Income (loss) from operations | $ | 25,970 | $ | 4,148 | $ | (11,855 | ) | $ | 18,263 | ||||
| Adjusted income (loss) from operations1 | $ | 25,970 | $ | 4,148 | $ | (11,855 | ) | $ | 18,263 | ||||
1 Adjusted operating income (loss), a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) 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 (loss) 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 (loss) to provide investors with a better understanding of the Company's view of our results as compared to prior periods.
WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Unaudited - dollars in thousands)
| Wabash National Corporation | |||||||||||||
| Nine Months Ended September 30, | 2022 | 2021 | |||||||||||
| Units Shipped | |||||||||||||
| New trailers | 38,910 | 33,710 | |||||||||||
| New truck bodies | 11,550 | 13,330 | |||||||||||
| Used trailers | 80 | 70 | |||||||||||
| Nine Months Ended September 30, | Transportation Solutions | Parts & Services | Corporate and Eliminations | Consolidated | |||||||||
| 2022 | |||||||||||||
| New Trailers | $ | 1,476,052 | $ | 1,392 | $ | (973 | ) | $ | 1,476,471 | ||||
| Used Trailers | - | 2,382 | - | 2,382 | |||||||||
| Components, parts and service | - | 105,208 | - | 105,208 | |||||||||
| Equipment and other | 233,774 | 34,849 | (8,004 | ) | 260,619 | ||||||||
| Total net external sales | $ | 1,709,826 | $ | 143,831 | $ | (8,977 | ) | $ | 1,844,680 | ||||
| Gross profit | $ | 194,516 | $ | 33,578 | $ | - | $ | 228,094 | |||||
| Income (loss) from operations | $ | 142,944 | $ | 22,659 | $ | (56,685 | ) | $ | 108,918 | ||||
| Adjusted income (loss) from operations1 | $ | 142,944 | $ | 22,659 | $ | (56,685 | ) | $ | 108,918 | ||||
| 2021 | |||||||||||||
| New Trailers | $ | 966,193 | $ | - | $ | - | $ | 966,193 | |||||
| Used Trailers | 165 | 1,690 | - | 1,855 | |||||||||
| Components, parts and service | - | 101,747 | - | 101,747 | |||||||||
| Equipment and other | 223,815 | 35,586 | (5,205 | ) | 254,196 | ||||||||
| Total net external sales | $ | 1,190,173 | $ | 139,023 | $ | (5,205 | ) | $ | 1,323,991 | ||||
| Gross profit | $ | 129,776 | $ | 28,912 | $ | (4,869 | ) | $ | 153,819 | ||||
| Income (loss) from operations | $ | 69,492 | $ | 18,509 | $ | (35,839 | ) | $ | 52,162 | ||||
| Adjusted income (loss) from operations1 | $ | 69,492 | $ | 16,635 | $ | (35,839 | ) | $ | 50,288 | ||||
1 Adjusted operating income (loss), a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) 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 (loss) 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 (loss) to provide investors with a better understanding of the Company's view of our results as compared to prior periods.
WABASH NATIONAL CORPORATION
SEGMENT AND COMPANY FINANCIAL INFORMATION
(Unaudited - dollars in thousands)
| Adjusted Operating Income1 | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Transportation Solutions | |||||||||||||||
| Income from operations | $ | 63,274 | $ | 25,970 | $ | 142,944 | $ | 69,492 | |||||||
| Adjustments: | |||||||||||||||
| N/A | - | - | - | - | |||||||||||
| Adjusted operating income | 63,274 | 25,970 | $ | 142,944 | $ | 69,492 | |||||||||
| Parts & Services | |||||||||||||||
| Income from operations | 7,732 | 4,148 | 22,659 | 18,509 | |||||||||||
| Adjustments: | |||||||||||||||
| Gain on divestiture of Extract Technology | - | - | - | (1,874 | ) | ||||||||||
| Adjusted operating income | 7,732 | 4,148 | 22,659 | 16,635 | |||||||||||
| Corporate | |||||||||||||||
| Loss from operations | (18,131 | ) | (11,855 | ) | (56,685 | ) | (35,839 | ) | |||||||
| Adjustments: | |||||||||||||||
| N/A | - | - | - | - | |||||||||||
| Adjusted operating loss | (18,131 | ) | (11,855 | ) | (56,685 | ) | (35,839 | ) | |||||||
| Consolidated | |||||||||||||||
| Income from operations | 52,875 | 18,263 | $ | 108,918 | $ | 52,162 | |||||||||
| Adjustments: | |||||||||||||||
| Gain on divestiture of Extract Technology | - | - | - | (1,874 | ) | ||||||||||
| Adjusted operating income | $ | 52,875 | $ | 18,263 | $ | 108,918 | $ | 50,288 | |||||||
1 Adjusted operating income (loss), a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) 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 (loss) 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 (loss) 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 September 30, | Nine Months Ended September 30, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Net income | $ | 36,356 | $ | 11,008 | $ | 71,169 | $ | 26,477 | |||||
| Income tax expense | 11,130 | 1,640 | 21,831 | 7,459 | |||||||||
| Interest expense | 5,210 | 5,847 | 15,341 | 18,031 | |||||||||
| Depreciation and amortization | 11,941 | 12,343 | 37,265 | 36,821 | |||||||||
| Stock-based compensation | 2,720 | 1,673 | 7,367 | 5,889 | |||||||||
| Impairment and other, net | 349 | 595 | 692 | (631 | ) | ||||||||
| Other, net | 179 | (232 | ) | 577 | 195 | ||||||||
| Operating EBITDA | $ | 67,885 | $ | 32,874 | $ | 154,242 | $ | 94,241 | |||||
| Adjusted Net Income Attributable to Common Stockholders2: | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Net income attributable to common stockholders | $ | 36,170 | $ | 11,008 | $ | 70,796 | $ | 26,477 | ||||
| Adjustments: | ||||||||||||
| Loss on debt extinguishment | - | - | - | 452 | ||||||||
| Gain on divestiture of Extract Technology | - | - | - | (1,874 | ) | |||||||
| Tax effect of aforementioned items | - | - | - | 327 | ||||||||
| Adjusted net income attributable to common stockholders | $ | 36,170 | $ | 11,008 | $ | 70,796 | $ | 25,382 | ||||
| Adjusted Diluted Earnings Per Share2: | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Diluted earnings per share | $ | 0.73 | $ | 0.22 | $ | 1.43 | $ | 0.51 | ||||
| Adjustments: | ||||||||||||
| Loss on debt extinguishment | - | - | - | 0.01 | ||||||||
| Gain on divestiture of Extract Technology | - | - | - | (0.04 | ) | |||||||
| Tax effect of aforementioned items | - | - | - | 0.01 | ||||||||
| Adjusted diluted earnings per share | $ | 0.73 | $ | 0.22 | $ | 1.43 | $ | 0.49 | ||||
| Weighted average diluted shares outstanding (in thousands) | 49,402 | 50,581 | 49,651 | 51,785 | ||||||||
1 Operating EBITDA includes noncontrolling interest and 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 attributable to common stockholders and adjusted diluted earnings per share reflect adjustments for debt transactions and the impact of sales and divestitures, and the related tax effects of these adjustments.
WABASH NATIONAL CORPORATION
RECONCILIATION OF FREE CASH FLOW1
(Unaudited - dollars in thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net cash provided by (used in) operating activities | $ | (10,518 | ) | $ | (61,143 | ) | $ | 72,156 | $ | (74,229 | ) | ||||
| Cash payments for capital expenditures | (19,935 | ) | (9,129 | ) | (42,304 | ) | (20,192 | ) | |||||||
| Free cash flow1 | $ | (30,453 | ) | $ | (70,272 | ) | $ | 29,852 | $ | (94,421 | ) | ||||
| Twelve Months Ended December 31, | |||||||
| 2021 | 2020 | ||||||
| Net cash (used in) provided by operating activities | $ | (7,470 | ) | $ | 124,134 | ||
| Cash payments for capital expenditures | (49,105 | ) | (20,131 | ) | |||
| Free cash flow1 | $ | (56,575 | ) | $ | 104,003 | ||
1 Free cash flow is defined as net cash provided by (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 September 30, | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Income from operations | $ | 63,274 | $ | 25,970 | $ | 7,732 | $ | 4,148 | |||||||
| Depreciation and amortization | 10,491 | 10,617 | 559 | 1,062 | |||||||||||
| Impairment and other, net | 258 | 109 | 15 | 492 | |||||||||||
| Adjusted segment EBITDA | $ | 74,023 | $ | 36,696 | $ | 8,306 | $ | 5,702 | |||||||
| Adjusted segment EBITDA margin | 12.1 | % | 8.3 | % | 17.8 | % | 13.6 | % | |||||||
| Transportation Solutions | Parts & Services | ||||||||||||||
| Nine Months Ended September 30, | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Income from operations | $ | 142,944 | $ | 69,492 | $ | 22,659 | $ | 18,509 | |||||||
| Depreciation and amortization | 32,729 | 31,455 | 2,237 | 3,674 | |||||||||||
| Impairment and other, net | (360 | ) | 935 | 5 | (1,560 | ) | |||||||||
| Adjusted segment EBITDA | $ | 175,313 | $ | 101,882 | $ | 24,901 | $ | 20,623 | |||||||
| Adjusted segment EBITDA margin | 10.3 | % | 8.6 | % | 17.3 | % | 14.8 | % | |||||||
1 Adjusted segment EBITDA, a non-GAAP financial measure, includes noncontrolling interest and 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
