WABASH NATIONAL Corp 8-K, filed Jul 24, 2024
WABASH NATIONAL Corp (WNC)
8-K
2024-07-24
For: 2024-07-24
View Original
Added on
April 08, 2026
About this 8-K
WABASH NATIONAL Corp filed this 8-K on July 24, 2024.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 24, 2024
(Exact Name of Registrant as Specified in its Charter)
| (State or other jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code: (765 ) 771-5310
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On July 24, 2024, Wabash National Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2024. A copy of the Company’s press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference. The press release and a teleconference visual presentation are also available on the Company's Investor Relations website at ir.wabashnational.com.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
EXHIBIT INDEX
| Exhibit No. | Description | |||||||
| 104 | Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| WABASH NATIONAL CORPORATION | ||||||||
| Date: July 24, 2024 | By: | /s/ Michael N. Pettit | ||||||
| Michael N. Pettit | ||||||||
| Senior Vice President and Chief Financial Officer | ||||||||
Media Contact:
Dana Stelsel
Director, Communications
(765) 771-5766
dana.stelsel@onewabash.com
Investor Relations:
Ryan Reed
VP, Corporate Development, IR and FP&A
(765) 490-5664
ryan.reed@onewabash.com
Wabash Announces Second Quarter 2024 Results
▪Quarterly revenue of $551 million; within prior quarterly outlook range
▪Operating income of $44 million with operating margin of 7.9%
▪Quarterly diluted earnings per share of $0.64 exceeds prior quarterly outlook range
▪Total backlog of $1.3B; Q2 sequential reduction slightly more than usual seasonality
▪2024 revenue and EPS outlook ranges reduced to $2.0B - $2.2B and $1.50 - $1.60, respectively
LAFAYETTE, Ind. – July 24, 2024 – Wabash (NYSE: WNC), the innovation leader of connected solutions for the transportation, logistics and distribution industries, today reported results for the quarter ended June 30, 2024.
The Company's net sales for the second quarter of 2024 were $550.6 million, reflecting a 19.8% decrease compared to the same quarter of the previous year. The Company achieved consolidated gross profit of $89.7 million, equivalent to 16.3% of sales. Operating income amounted to $43.8 million, representing 7.9% of sales for the quarter. Second quarter diluted earnings per share was $0.64.
As of June 30, 2024, total Company backlog stood at approximately $1.3 billion, a decrease of 28% compared to the first quarter of 2024 as new order activity slowed. While backlog has sequentially declined during the second quarter in each of the last five years, the reduction in 2024 was slightly more than prior years due to continued freight market weakness. Backlog expected to be shipped within the following 12-months amounted to approximately $1.0 billion as of June 30, 2024.
"While the demand environment has incrementally weakened during the first half of 2024, our team has executed well, as shown by second quarter EPS generation that exceeded our prior outlook range," said Brent Yeagy, president and chief executive officer. "We are in the process of demonstrating a new level of stability within our through-the-cycle financial performance thanks to the enhanced diversity of our first-to-final mile portfolio of transportation solutions and our complementary parts and services business. Our EPS outlook midpoint of $1.55 falls squarely in the middle of the financial performance of peak years like 2018 or 2019, reflecting the resilience we have built within our portfolio and the structural improvements we've made to our base business."
For the full-year ending December 31, 2024, the Company reduced its revenue outlook to a range of approximately $2.0 billion to $2.2 billion with a midpoint of $2.1 billion and reduced its EPS guidance to a range of $1.50 to $1.60 with a midpoint of $1.55.
“With greater information on customers' capital expenditure plans, we feel it's appropriate to reduce our full year guidance," explained Yeagy. "As we have continued to refine our financial outlook for the year, it's important to remember that the overarching theme remains unchanged: Wabash is on track to achieve the best financial performance on record during a correction in our industry. Furthermore, as we look to 2025, we anticipate that there is a wide range of potential market outcomes that will allow Wabash to generate year-on-year EPS growth given the strength we anticipate in TaaS specifically, Parts & Services more broadly, and our truck body business. Wabash has never been better positioned to capitalize on the next period of freight expansion. We are focused on continuing our progress toward achieving outsized strategic growth that is both more resilient and more profitable."
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 second quarter of 2024 and 2023. A complete disclosure of the results by individual segment is included in the tables following this release.
| Wabash National Corporation | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||
| New Units Shipped | ||||||||||||||||||||||||||||||||||||||
| Trailers | 9,245 | 11,825 | ||||||||||||||||||||||||||||||||||||
| Truck bodies | 3,925 | 4,025 | ||||||||||||||||||||||||||||||||||||
| Transportation Solutions | Parts & Services | |||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||
| (Unaudited, dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 498,705 | $ | 630,682 | $ | 54,901 | $ | 62,066 | ||||||||||||||||||||||||||||||
| Gross profit | $ | 74,675 | $ | 133,945 | $ | 14,969 | $ | 17,082 | ||||||||||||||||||||||||||||||
| Gross profit margin | 15.0% | 21.2% | 27.3% | 27.5% | ||||||||||||||||||||||||||||||||||
| Income from operations | $ | 56,918 | $ | 115,806 | $ | 12,087 | $ | 12,937 | ||||||||||||||||||||||||||||||
| Income from operations margin | 11.4% | 18.4% | 22.0% | 20.8% | ||||||||||||||||||||||||||||||||||
During the second quarter, Transportation Solutions generated net sales of $498.7 million, a decrease of 20.9% compared to the same quarter of the previous year. Operating income for the quarter amounted to $56.9 million, representing 11.4% of sales.
Parts & Services' net sales for the second quarter were $54.9 million, a decrease of 11.5% compared to the prior year quarter. Operating income for the quarter amounted to $12.1 million, or 22.0% of sales.
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 adjusted 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.
Adjusted EBITDA includes noncontrolling interest & excludes loss from unconsolidated entity 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 adjusted 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 adjusted 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 adjusted 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 minus expenditures for revenue generating assets. 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. Adjusted operating income margin is calculated by dividing adjusted operating income by total net sales. 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 no adjustments for any period presented. 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 & excludes loss from unconsolidated entity 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.
Information reconciling any forward-looking Adjusted EBITDA, Adjusted Operating Income, Adjusted Operating Income Margin, Free Cash Flow, Adjusted EBITDA Margin, and Adjusted EPS to GAAP financial measures is unavailable to us without unreasonable effort. We cannot provide reconciliations of the above noted forward looking non-GAAP measures to GAAP financial measures because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flows, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to us without unreasonable effort.
Second Quarter 2024 Conference Call
Wabash will discuss its results during its quarterly investor conference call on Wednesday, July 24, 2024, beginning at 12:00 p.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 (800) 715-9871, conference ID 9986205. 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 the highly cyclical nature of our business, uncertain economic conditions including the possibility that customer demand may not meet our expectations, our backlog may not reflect future sales of our products, 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, costs of indebtedness, and our ability to execute on our long-term strategic plan. 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)
| June 30, 2024 | December 31, 2023 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 77,285 | $ | 179,271 | |||||||
| Accounts receivable, net | 243,248 | 182,990 | |||||||||
| Inventories, net | 272,926 | 267,635 | |||||||||
| Prepaid expenses and other | 50,506 | 51,457 | |||||||||
| Total current assets | 643,965 | 681,353 | |||||||||
| Property, plant, and equipment, net | 331,744 | 325,444 | |||||||||
| Goodwill | 188,423 | 188,409 | |||||||||
| Intangible assets, net | 80,269 | 86,418 | |||||||||
| Investment in unconsolidated entity | — | 1,647 | |||||||||
| Other assets | 94,911 | 79,543 | |||||||||
| Total assets | $ | 1,339,312 | $ | 1,362,814 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Current portion of long-term debt | $ | — | $ | — | |||||||
| Accounts payable | 175,483 | 156,608 | |||||||||
| Other accrued liabilities | 147,873 | 195,601 | |||||||||
| Total current liabilities | 323,356 | 352,209 | |||||||||
| Long-term debt | 396,800 | 396,465 | |||||||||
| Deferred income taxes | 13,219 | 17,013 | |||||||||
| Other non-current liabilities | 55,146 | 47,028 | |||||||||
| Total liabilities | 788,521 | 812,715 | |||||||||
| Commitments and contingencies | |||||||||||
| Noncontrolling interest | 366 | 603 | |||||||||
| Wabash National Corporation stockholders’ equity: | |||||||||||
| Common stock 200,000,000 shares authorized, $0.01 par value, 44,225,215 and 45,393,260 shares outstanding, respectively | 781 | 774 | |||||||||
| Additional paid-in capital | 684,504 | 677,886 | |||||||||
| Retained earnings | 443,734 | 403,923 | |||||||||
| Accumulated other comprehensive losses | (2,101) | (428) | |||||||||
| Treasury stock at cost, 33,904,416 and 32,128,755 common shares, respectively | (576,493) | (532,659) | |||||||||
| Total Wabash National Corporation stockholders' equity | 550,425 | 549,496 | |||||||||
| Total liabilities, noncontrolling interest, and equity | $ | 1,339,312 | $ | 1,362,814 | |||||||
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - dollars in thousands, except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net sales | $ | 550,610 | $ | 686,620 | $ | 1,065,886 | $ | 1,307,572 | |||||||||||||||
| Cost of sales | 460,952 | 535,593 | 899,782 | 1,040,518 | |||||||||||||||||||
| Gross profit | 89,658 | 151,027 | 166,104 | 267,054 | |||||||||||||||||||
| General and administrative expenses | 33,969 | 37,318 | 70,642 | 73,358 | |||||||||||||||||||
| Selling expenses | 7,936 | 7,194 | 14,978 | 14,078 | |||||||||||||||||||
| Amortization of intangible assets | 2,993 | 3,203 | 6,149 | 6,406 | |||||||||||||||||||
| Impairment and other, net | 997 | 2 | 997 | 2 | |||||||||||||||||||
| Income from operations | 43,763 | 103,310 | 73,338 | 173,210 | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest expense | (4,948) | (4,987) | (9,936) | (9,981) | |||||||||||||||||||
| Other, net | 1,572 | 475 | 3,181 | 862 | |||||||||||||||||||
| Other expense, net | (3,376) | (4,512) | (6,755) | (9,119) | |||||||||||||||||||
| Loss from unconsolidated entity | (1,415) | — | (2,901) | — | |||||||||||||||||||
| Income before income tax expense | 38,972 | 98,798 | 63,682 | 164,091 | |||||||||||||||||||
| Income tax expense | 9,768 | 24,324 | 16,191 | 38,221 | |||||||||||||||||||
| Net income | 29,204 | 74,474 | 47,491 | 125,870 | |||||||||||||||||||
| Net income attributable to noncontrolling interest | 246 | 146 | 366 | 329 | |||||||||||||||||||
| Net income attributable to common stockholders | $ | 28,958 | $ | 74,328 | $ | 47,125 | $ | 125,541 | |||||||||||||||
| Net income attributable to common stockholders per share: | |||||||||||||||||||||||
| Basic | $ | 0.65 | $ | 1.57 | $ | 1.04 | $ | 2.64 | |||||||||||||||
| Diluted | $ | 0.64 | $ | 1.54 | $ | 1.03 | $ | 2.58 | |||||||||||||||
| Weighted average common shares outstanding (in thousands): | |||||||||||||||||||||||
| Basic | 44,896 | 47,452 | 45,139 | 47,610 | |||||||||||||||||||
| Diluted | 45,365 | 48,373 | 45,751 | 48,737 | |||||||||||||||||||
| Dividends declared per share | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 | |||||||||||||||
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - dollars in thousands)
| Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income | $ | 47,491 | $ | 125,870 | |||||||
| Adjustments to reconcile net income to net cash (used in) provided by operating activities | |||||||||||
| Depreciation | 20,306 | 13,760 | |||||||||
| Amortization of intangibles | 6,149 | 6,406 | |||||||||
| Net loss on sale of property, plant and equipment | — | 2 | |||||||||
| Deferred income taxes | (3,763) | 6,653 | |||||||||
| Stock-based compensation | 6,618 | 5,681 | |||||||||
| Non-cash interest expense | 478 | 477 | |||||||||
| Equity in loss of unconsolidated entity | 2,901 | — | |||||||||
| Accounts receivable | (60,258) | 23,829 | |||||||||
| Inventories | (5,291) | (98,600) | |||||||||
| Prepaid expenses and other | 995 | (9,148) | |||||||||
| Accounts payable and accrued liabilities | (25,292) | 69,793 | |||||||||
| Other, net | 3,278 | 1,608 | |||||||||
| Net cash (used in) provided by operating activities | (6,388) | 146,331 | |||||||||
| Cash flows from investing activities | |||||||||||
| Cash payments for capital expenditures | (36,288) | (55,820) | |||||||||
| Expenditures for revenue generating assets | — | (3,244) | |||||||||
| Investment in unconsolidated entity | (7,100) | — | |||||||||
| Net cash used in investing activities | (43,388) | (59,064) | |||||||||
| Cash flows from financing activities | |||||||||||
| Proceeds from exercise of stock options | 7 | 155 | |||||||||
| Dividends paid | (7,775) | (8,366) | |||||||||
| Borrowings under revolving credit facilities | 431 | 103,731 | |||||||||
| Payments under revolving credit facilities | (431) | (103,731) | |||||||||
| Debt issuance costs paid | (5) | (102) | |||||||||
| Stock repurchases | (43,834) | (37,896) | |||||||||
| Distribution to noncontrolling interest | (603) | (512) | |||||||||
| Net cash used in financing activities | (52,210) | (46,721) | |||||||||
| Cash and cash equivalents: | |||||||||||
| Net (decrease) increase in cash, cash equivalents, and restricted cash | (101,986) | 40,546 | |||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 179,271 | 58,245 | |||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 77,285 | $ | 98,791 | |||||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Cash paid for interest | $ | 9,394 | $ | 9,545 | |||||||
| Net cash paid for income taxes | $ | 23,664 | $ | 40,905 | |||||||
| Period end balance of payables for property, plant, and equipment | $ | 5,474 | $ | 18,362 | |||||||
WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Unaudited - dollars in thousands)
| Wabash National Corporation | ||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | 2024 | 2023 | ||||||||||||||||||||||||||||||
| Units Shipped | ||||||||||||||||||||||||||||||||
| New trailers | 9,245 | 11,825 | ||||||||||||||||||||||||||||||
| New truck bodies | 3,925 | 4,025 | ||||||||||||||||||||||||||||||
| Used trailers | 20 | 15 | ||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Transportation Solutions | Parts & Services | Corporate and Eliminations | Consolidated | ||||||||||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||||||||
| New Trailers | $ | 383,145 | $ | — | $ | (681) | $ | 382,464 | ||||||||||||||||||||||||
| Used Trailers | — | 1,144 | — | 1,144 | ||||||||||||||||||||||||||||
| Components, parts and service | — | 34,453 | — | 34,453 | ||||||||||||||||||||||||||||
| Equipment and other | 115,560 | 19,304 | (2,315) | 132,549 | ||||||||||||||||||||||||||||
| Total net external sales | $ | 498,705 | $ | 54,901 | $ | (2,996) | $ | 550,610 | ||||||||||||||||||||||||
| Gross profit | $ | 74,675 | $ | 14,969 | $ | — | $ | 89,644 | ||||||||||||||||||||||||
| Income (loss) from operations | $ | 56,918 | $ | 12,087 | $ | (25,242) | $ | 43,763 | ||||||||||||||||||||||||
Adjusted income (loss) from operations1 | $ | 56,918 | $ | 12,087 | $ | (25,242) | $ | 43,763 | ||||||||||||||||||||||||
| 2023 | ||||||||||||||||||||||||||||||||
| New Trailers | $ | 523,537 | $ | — | $ | (2,002) | $ | 521,535 | ||||||||||||||||||||||||
| Used Trailers | — | 517 | — | 517 | ||||||||||||||||||||||||||||
| Components, parts and service | — | 39,794 | — | 39,794 | ||||||||||||||||||||||||||||
| Equipment and other | 107,145 | 21,755 | (4,126) | 124,774 | ||||||||||||||||||||||||||||
| Total net external sales | $ | 630,682 | $ | 62,066 | $ | (6,128) | $ | 686,620 | ||||||||||||||||||||||||
| Gross profit | $ | 133,945 | $ | 17,082 | $ | — | $ | 151,027 | ||||||||||||||||||||||||
| Income (loss) from operations | $ | 115,806 | $ | 12,937 | $ | (25,433) | $ | 103,310 | ||||||||||||||||||||||||
Adjusted income (loss) from operations1 | $ | 115,806 | $ | 12,937 | $ | (25,433) | $ | 103,310 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | 2024 | 2023 | ||||||||||||||||||||||||||||||
| Units Shipped | ||||||||||||||||||||||||||||||||
| New trailers | 17,745 | 23,610 | ||||||||||||||||||||||||||||||
| New truck bodies | 7,615 | 7,835 | ||||||||||||||||||||||||||||||
| Used trailers | 35 | 30 | ||||||||||||||||||||||||||||||
| Six Months Ended June 30, | Transportation Solutions | Parts & Services | Corporate and Eliminations | Consolidated | ||||||||||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||||||||
| New Trailers | $ | 749,303 | $ | — | $ | (1,501) | $ | 747,802 | ||||||||||||||||||||||||
| Used Trailers | — | 2,488 | — | 2,488 | ||||||||||||||||||||||||||||
| Components, parts and service | — | 70,083 | — | 70,083 | ||||||||||||||||||||||||||||
| Equipment and other | 219,830 | 31,564 | (5,881) | 245,513 | ||||||||||||||||||||||||||||
| Total net external sales | $ | 969,133 | $ | 104,135 | $ | (7,382) | $ | 1,065,886 | ||||||||||||||||||||||||
| Gross profit | $ | 137,800 | $ | 28,304 | $ | — | $ | 166,104 | ||||||||||||||||||||||||
| Income (loss) from operations | $ | 101,173 | $ | 22,607 | $ | (50,442) | $ | 73,338 | ||||||||||||||||||||||||
Adjusted income (loss) from operations1 | $ | 101,173 | $ | 22,607 | $ | (50,442) | $ | 73,338 | ||||||||||||||||||||||||
| 2023 | ||||||||||||||||||||||||||||||||
| New Trailers | $ | 1,008,785 | $ | — | $ | (2,364) | $ | 1,006,421 | ||||||||||||||||||||||||
| Used Trailers | — | 1,056 | — | 1,056 | ||||||||||||||||||||||||||||
| Components, parts and service | — | 75,476 | — | 75,476 | ||||||||||||||||||||||||||||
| Equipment and other | 199,968 | 32,674 | (8,023) | 224,619 | ||||||||||||||||||||||||||||
| Total net external sales | $ | 1,208,753 | $ | 109,206 | $ | (10,387) | $ | 1,307,572 | ||||||||||||||||||||||||
| Gross profit | $ | 237,549 | $ | 29,505 | $ | — | $ | 267,054 | ||||||||||||||||||||||||
| Income (loss) from operations | $ | 202,922 | $ | 22,146 | $ | (51,858) | $ | 173,210 | ||||||||||||||||||||||||
Adjusted income (loss) from operations1 | $ | 202,922 | $ | 22,146 | $ | (51,858) | $ | 173,210 | ||||||||||||||||||||||||
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 June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Transportation Solutions | |||||||||||||||||||||||
| Income from operations | $ | 56,918 | $ | 115,806 | $ | 101,173 | $ | 202,922 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| N/A | — | — | — | — | |||||||||||||||||||
| Adjusted operating income | 56,918 | 115,806 | 101,173 | 202,922 | |||||||||||||||||||
| Parts & Services | |||||||||||||||||||||||
| Income from operations | 12,087 | 12,937 | 22,607 | 22,146 | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| N/A | — | — | — | — | |||||||||||||||||||
| Adjusted operating income | 12,087 | 12,937 | 22,607 | 22,146 | |||||||||||||||||||
| Corporate | |||||||||||||||||||||||
| Loss from operations | (25,242) | (25,433) | (50,442) | (51,858) | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| N/A | — | — | — | — | |||||||||||||||||||
| Adjusted operating loss | (25,242) | (25,433) | (50,442) | (51,858) | |||||||||||||||||||
| Consolidated | |||||||||||||||||||||||
| Income from operations | 43,763 | 103,310 | 73,338 | 173,210 | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| N/A | — | — | — | — | |||||||||||||||||||
| Adjusted operating income | $ | 43,763 | $ | 103,310 | $ | 73,338 | $ | 173,210 | |||||||||||||||
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)
Adjusted EBITDA1: | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net income | $ | 29,204 | $ | 74,474 | $ | 47,491 | $ | 125,870 | |||||||||||||||
| Income tax expense | 9,768 | 24,324 | 16,191 | 38,221 | |||||||||||||||||||
| Interest expense | 4,948 | 4,987 | 9,936 | 9,981 | |||||||||||||||||||
| Depreciation and amortization | 13,719 | 10,470 | 26,455 | 20,166 | |||||||||||||||||||
| Stock-based compensation | 3,372 | 2,915 | 6,618 | 5,681 | |||||||||||||||||||
| Impairment and other, net | 997 | 2 | 997 | 2 | |||||||||||||||||||
| Other, net | (1,572) | (475) | (3,181) | (862) | |||||||||||||||||||
| Loss from unconsolidated entity | 1,415 | — | 2,901 | — | |||||||||||||||||||
| Adjusted EBITDA | $ | 61,851 | $ | 116,697 | $ | 107,408 | $ | 199,059 | |||||||||||||||
Adjusted Net Income Attributable to Common Stockholders2: | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net income attributable to common stockholders | $ | 28,958 | $ | 74,328 | $ | 47,125 | $ | 125,541 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Adjusted net income attributable to common stockholders | $ | 28,958 | $ | 74,328 | $ | 47,125 | $ | 125,541 | |||||||||||||||
Adjusted Diluted Earnings Per Share2: | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Diluted earnings per share | $ | 0.64 | $ | 1.54 | $ | 1.03 | $ | 2.58 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 0.64 | $ | 1.54 | $ | 1.03 | $ | 2.58 | |||||||||||||||
| Weighted average diluted shares outstanding (in thousands) | 45,365 | 48,373 | 45,751 | 48,737 | |||||||||||||||||||
1 Adjusted EBITDA includes noncontrolling interest & excludes loss from unconsolidated entity 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 adjusted 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 adjusted 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 no adjustments for any period presented.
WABASH NATIONAL CORPORATION
RECONCILIATION OF FREE CASH FLOW1
(Unaudited - dollars in thousands)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 11,022 | $ | 76,847 | $ | (6,388) | $ | 146,331 | |||||||||||||||
| Cash payments for capital expenditures | (17,103) | (24,397) | (36,288) | (55,820) | |||||||||||||||||||
| Expenditures for revenue generating assets | — | (3,244) | — | (3,244) | |||||||||||||||||||
Free cash flow1 | $ | (6,081) | $ | 49,206 | $ | (42,676) | $ | 87,267 | |||||||||||||||
1 Free cash flow is defined as net cash provided by (used in) operating activities minus cash payments for capital expenditures minus expenditures for revenue generating assets. 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) provided by 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 June 30, | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||
| Income from operations | $ | 56,918 | $ | 115,806 | $ | 12,087 | $ | 12,937 | |||||||||||||||||||||||||||
| Depreciation and amortization | 12,093 | 9,379 | 529 | 553 | |||||||||||||||||||||||||||||||
| Impairment and other, net | (4) | 2 | — | — | |||||||||||||||||||||||||||||||
| Other, net | — | — | (14) | — | |||||||||||||||||||||||||||||||
| Adjusted segment EBITDA | $ | 69,007 | $ | 125,187 | $ | 12,602 | $ | 13,490 | |||||||||||||||||||||||||||
| Adjusted segment EBITDA margin | 13.8 | % | 19.8 | % | 23.0 | % | 21.7 | % | |||||||||||||||||||||||||||
| Transportation Solutions | Parts & Services | ||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||
| Income from operations | $ | 101,173 | $ | 202,922 | $ | 22,607 | $ | 22,146 | |||||||||||||||||||||||||||
| Depreciation and amortization | 23,411 | 18,007 | 1,075 | 1,049 | |||||||||||||||||||||||||||||||
| Impairment and other, net | (4) | 2 | — | — | |||||||||||||||||||||||||||||||
| Other, net | 14 | — | (13) | — | |||||||||||||||||||||||||||||||
| Adjusted segment EBITDA | $ | 124,594 | $ | 220,931 | $ | 23,669 | $ | 23,195 | |||||||||||||||||||||||||||
| Adjusted segment EBITDA margin | 12.9 | % | 18.3 | % | 22.7 | % | 21.2 | % | |||||||||||||||||||||||||||
1 Adjusted segment EBITDA, a non-GAAP financial measure, includes noncontrolling interest & excludes loss from unconsolidated entity 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.