Published:
Wabash National Corporation Announces Second Quarter and Year-to-Date Results
Wabash National Corporation (NYSE: WNC)
reported net income of $5.9 million, or $0.18 per diluted share for the
second quarter of 2007 on net sales of $294.8 million. For the same quarter
last year, the company reported net income of $5.0 million, or $0.15 per
diluted share, on revenue of $333.6 million. For the six months ended June
30, 2007, net income totaled $6.9 million, or $0.22 per diluted share on
sales of $553.7 million. In the comparable period of 2006, the company
reported net income of $9.4 million or $0.29 per diluted share on sales of
$595.7 million.
Dick Giromini, president and chief executive officer, stated, "We are
pleased with our progress this quarter despite a challenging environment.
The performance of our manufacturing organization, complemented by our
aggressive strategic sourcing and pricing initiatives, has allowed us to
achieve our best gross margin percentage since the first quarter of 2006.
While the continued weak freight environment constrained new trailer sales
to 12,500 units for the quarter, it represents a 14% increase from the
prior quarter."
"As truck transportation companies continue to face macro-economic and
industry related headwinds, we anticipate total new trailer sales for the
year to be approximately 48,000 units of which approximately 90% are
already booked. We are taking the necessary measures to optimize our
business during this soft period, including a hiring freeze, staff cutbacks
and spending restrictions. We believe we are well into the trough of the
cycle, and expect to see improving order rates in the second half of 2008."
As of June 30, 2007 the company's backlog was approximately $515 million.
Headquartered in Lafayette, Ind., Wabash National® Corporation (NYSE: WNC) is one of the leading manufacturers of semi trailers in North America.
Established in 1985, the company specializes in the design and production
of dry freight vans, refrigerated vans, flatbed trailers, drop deck
trailers, and intermodal equipment. Its innovative core products are sold
under the DuraPlate®, ArcticLite®, and Eagle® brand names. The
company operates two wholly owned subsidiaries: Transcraft Corporation, a
manufacturer of flatbed and drop deck trailers; and Wabash National Trailer
Centers, a retail distributor of new and used trailers and aftermarket
parts throughout the U.S. and Canada.
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
(in thousands, except per share amounts)
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
-------------------- --------------------
2007 2006 2007 2006
--------- --------- --------- ---------
NET SALES $ 294,849 $ 333,572 $ 553,703 $ 595,691
COST OF SALES 267,017 306,300 505,686 545,628
--------- --------- --------- ---------
Gross profit 27,832 27,272 48,017 50,063
GENERAL AND ADMINISTRATIVE
EXPENSES 12,439 14,227 25,159 24,930
SELLING EXPENSES 3,963 3,487 8,113 6,795
--------- --------- --------- ---------
Income from operations 11,430 9,558 14,745 18,338
OTHER INCOME (EXPENSE)
Interest expense (1,448) (1,523) (2,994) (3,082)
Foreign exchange gains and
losses, net 362 117 396 -
Other, net (565) 185 (506) 242
--------- --------- --------- ---------
Income before income taxes 9,779 8,337 11,641 15,498
INCOME TAX EXPENSE 3,904 3,290 4,770 6,114
Net income $ 5,875 $ 5,047 $ 6,871 $ 9,384
========= ========= ========= =========
COMMON STOCK DIVIDENDS DECLARED $ 0.045 $ 0.045 $ 0.09 $ 0.09
========= ========= ========= =========
BASIC NET INCOME PER SHARE $ 0.19 $ 0.16 $ 0.23 $ 0.30
========= ========= ========= =========
DILUTED NET INCOME PER SHARE $ 0.18 $ 0.15 $ 0.22 $ 0.29
========= ========= ========= =========
COMPREHENSIVE INCOME
Net income $ 5,875 $ 5,047 $ 6,871 $ 9,384
Foreign currency translation
adjustment 206 665 226 757
--------- --------- --------- ---------
NET COMPREHENSIVE INCOME $ 6,081 $ 5,712 $ 7,097 $ 10,141
========= ========= ========= =========
Three months ended Retail &
June 30, Manufacturing Distribution Eliminations Total
------------- ------------ ------------ ------------
2007
Net sales $ 268,652 $ 40,555 $ (14,358) $ 294,849
Income (loss) from
operations $ 11,946 $ (290) $ (226) $ 11,430
2006
Net sales $ 291,543 $ 48,019 $ (5,990) $ 333,572
Income from
operations $ 7,031 $ 724 $ 1,803 $ 9,558
Six months ended June
30, 2007
Net sales $ 507,157 $ 82,855 $ (36,309) $ 553,703
Income (loss) from
operations $ 16,047 $ (638) $ (664) $ 14,745
2006
Net sales $ 533,517 $ 93,388 $ (31,214) $ 595,691
Income (loss) from
operations $ 17,624 $ 909 $ (195) $ 18,338
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Basic net income per share:
Net income applicable to
common stockholders $ 5,875 $ 5,047 $ 6,871 $ 9,384
========== ========== ========== ==========
Weighted average common
shares outstanding 30,233 31,154 30,263 31,134
========== ========== ========== ==========
Basic net income per share $ 0.19 $ 0.16 $ 0.23 $ 0.30
========== ========== ========== ==========
Diluted net income per share:
Net income applicable to
common stockholders $ 5,875 $ 5,047 $ 6,871 $ 9,384
After-tax equivalent of
interest on convertible
notes 741 741 1,482 1,482
---------- ---------- ---------- ----------
Diluted net income
applicable to common
stockholders $ 6,616 $ 5,788 $ 8,353 $ 10,866
========== ========== ========== ==========
Weighted average common
shares outstanding 30,233 31,154 30,263 31,134
Dilutive stock
options/shares 306 205 265 210
Convertible notes equivalent
shares 6,676 6,597 6,667 6,588
---------- ---------- ---------- ----------
Diluted weighted average
common shares outstanding 37,215 37,956 37,195 37,932
========== ========== ========== ==========
Diluted net income per share $ 0.18 $ 0.15 $ 0.22 $ 0.29
========== ========== ========== ==========
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
June 30, December 31,
2007 2006
----------------- -----------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 19,274 $ 29,885
Accounts receivable, net 92,018 110,462
Inventories 179,524 133,133
Deferred income taxes 20,788 26,650
Prepaid expenses and other 2,874 4,088
----------------- -----------------
Total current assets 314,478 304,218
PROPERTY, PLANT AND EQUIPMENT, net 126,512 129,325
EQUIPMENT LEASED TO OTHERS, net 1,103 1,302
GOODWILL 66,692 66,692
INTANGIBLE ASSETS 34,266 35,998
OTHER ASSETS 18,684 18,948
----------------- -----------------
$ 561,735 $ 556,483
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 105,003 $ 90,632
Other accrued liabilities 51,139 58,706
----------------- -----------------
Total current liabilities 156,142 149,338
LONG-TERM DEBT 125,000 125,000
DEFERRED INCOME TAXES 172 1,556
OTHER NONCURRENT LIABILITIES AND
CONTINGENCIES 3,209 2,634
STOCKHOLDERS' EQUITY 277,212 277,955
----------------- -----------------
$ 561,735 $ 556,483
================= =================
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Six Months
Ended June 30,
--------------------------------
2007 2006
--------------- ---------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 6,871 $ 9,384
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 9,623 10,599
Net gain on the sale of assets (81) (15)
Deferred income taxes 4,478 5,319
Excess tax benefits from stock-based
compensation (33) (328)
Stock-based compensation 1,967 1,739
Change in operating assets and
liabilities:
Accounts receivable 18,444 9,053
Finance contracts 7 1,365
Inventories (46,378) (67,237)
Prepaid expenses and other 1,207 1,628
Accounts payable and accrued
liabilities 12,190 42,546
Other, net 386 1,372
--------------- ---------------
Net cash provided by operating
activities 8,681 15,425
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (4,017) (10,324)
Acquisition, net of cash acquired (4,500) (69,307)
Proceeds from the sale of property,
plant and equipment 95 434
--------------- ---------------
Net cash used in investing
activities (8,422) (79,197)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options 74 678
Excess tax benefits from stock-based
compensation 33 328
Borrowings under revolving credit
facilities 86,619 73,606
Payments under revolving credit
facilities (86,619) (57,683)
Payments under long-term debt
obligations - (500)
Repurchases of common stock (8,210) -
Common stock dividends paid (2,767) (2,810)
--------------- ---------------
Net cash (used in) provided by
financing activities (10,870) 13,619
--------------- ---------------
NET DECREASE IN CASH AND CASH EQUIVALENTS (10,611) (50,153)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 29,885 67,437
--------------- ---------------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD $ 19,274 $ 17,284
=============== ===============
Copyright © 2008, MarketWire
Copyright © 2008, NewsBlaze,
Daily NewsTags: ,Transportation and Logistics:Trucking, TransportationandLogistics:RailroadsandIntermodal, ,NYSE0001,NYSE0001,NYSE0001,IN,LAFAYETTE, IN
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