Wabash National Corporation Announces First Quarter Results
2009-05-13 23:20:02 -
LAFAYETTE, IN -- (Marketwire) -- 05/13/09 -- Wabash National Corporation (NYSE: WNC) reported a net loss of $28.3 million, or $0.94 per diluted share, for the first quarter of 2009 on net sales of $77.9 million. For the same quarter last year, the Company reported a net loss of $6.4 million, or $0.21 per diluted share on net sales of $161.1 million. First quarter new trailer sales totaled 2,700 units, which represents a 57% reduction from the prior year period. The volume decline reflects the current economic environment and the continuing challenges facing the transportation industry.
Dick Giromini, President and Chief Executive Officer, stated, "Results for the first quarter of 2009, while disappointing, were not surprising. The challenging economic climate has resulted in weak production demand, and the carryover effect of very high raw material and component costs adversely impacted our operating results. As the year progresses, we expect an improving, albeit constrained demand environment for trailers and increasing benefits from our cost optimization initiatives, including the recently completed Lafayette transformation project. In addition, we will realize the effects of reduced raw material and component costs, with the exception of aluminum products, where unfavorable forward commitments are expected to continue to impact results until the fourth quarter."
"Our primary focus continues to be the prudent management of our cash flow and liquidity needs. To this end, we recently completed a Forbearance Agreement with our bank group and are working with our bank group on a longer-term resolution to our revolving credit facility and overall financial capitalization. In this regard, we continue to assess the strategic alternatives available to the Company, and have retained BB&T Capital Markets as the Company's exclusive financial advisor to assist in the consideration of various corporate strategic alternatives for maximizing shareholder value."
The Company will address first quarter results during the 2009 Annual Meeting of Stockholders Thursday, May 14, 2009, at 10:00 a.m. EDT. The Company will webcast the Meeting with live access available on the Company's website at www.wabashnational.com : www.wabashnational.com . The webcast will be archived at www.wabashnational.com : www.wabashnational.com within three hours of the conclusion of the meeting and will remain available through July 3, 2009. Meeting access also will be available via conference call at 877-407-8035.
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, dump trailers, truck bodies and intermodal equipment. Its innovative core products are sold under the DuraPlate®, ArcticLite®, FreightPro(TM), Eagle® and Benson(TM) brand names. The Company operates two wholly-owned subsidiaries; Transcraft ® Corporation, a manufacturer of flatbed, drop deck, dump trailers and truck bodies; and Wabash National Trailer Centers, trailer service centers and retail distributors of new and used trailers and aftermarket parts throughout the U.S.
Safe Harbor Statement
This press release contains certain forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including statements about projected trailer sales, the Company's efforts with respect to its revolving credit facility and the Company's consideration of strategic alternatives. There is no assurance that the Company's results will be as expected, that the Company will be able to enter into an amendment to its revolving credit facility or that the Company's consideration of strategic alternatives will result in any specific transaction. Furthermore, the forward-looking statements contained in this release 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 economic conditions, increased competition, reliance on certain customers and corporate partnerships, shortages and costs of raw materials, continued 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 its reports to its stockholders and periodic reports on Forms 10-K and 10-Q. The Company undertakes no obligation to update the forward-looking statements contained in this press release.
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended March 31,
-------------------------------------
2009 2008
----------- -----------
NET SALES $ 77,937 $ 161,061
COST OF SALES 93,413 155,156
----------- -----------
Gross profit (15,476) 5,905
GENERAL AND
ADMINISTRATIVE
EXPENSES 8,658 11,499
SELLING EXPENSES 3,185 3,443
----------- -----------
Loss from operations (27,319) (9,037)
OTHER INCOME (EXPENSE)
Interest expense (1,005) (1,174)
Gain on debt
extinguishment - 124
Other, net 55 7
----------- -----------
Loss before income
taxes (28,269) (10,080)
INCOME TAX EXPENSE
(BENEFIT) 15 (3,693)
----------- -----------
NET LOSS $ (28,284) $ (6,387)
=========== ===========
COMMON STOCK DIVIDENDS
DECLARED $ - $ 0.045
=========== ===========
BASIC NET LOSS PER
SHARE $ (0.94) $ (0.21)
=========== ===========
DILUTED NET LOSS PER
SHARE $ (0.94) $ (0.21)
=========== ===========
COMPREHENSIVE LOSS
Net loss $ (28,284) $ (6,387)
Changes in fair
value of
derivatives (net of
tax) 118 -
----------- -----------
NET COMPREHENSIVE LOSS $ (28,166) $ (6,387)
=========== ===========
Three months ended
March 31, Retail &
2009 Manufacturing Distribution Eliminations Total
----------- ----------- ----------- -----------
Net sales $ 60,638 $ 20,683 $ (3,384) $ 77,937
(Loss) Income from
operations $ (24,264) $ (3,106) $ 51 $ (27,319)
2008
Net sales $ 142,263 $ 28,385 $ (9,587) $ 161,061
(Loss) Income from
operations $ (8,482) $ (1,003) $ 448 $ (9,037)
Three Months Ended
March 31,
--------------------
2009 2008
--------- ---------
Basic net loss per share
Net loss applicable to common stockholders $ (28,284) $ (6,387)
Dividends paid on unvested restricted shares - (30)
--------- ---------
Net loss applicable to common stockholders
excluding amounts applicable to unvested
restricted shares $ (28,284) $ (6,417)
========= =========
Weighted average common shares outstanding 30,050 29,880
========= =========
Basic net loss per share $ (0.94) $ (0.21)
========= =========
Diluted net loss per share
Net loss applicable to common stockholders $ (28,284) $ (6,387)
After-tax equivalent of interest on convertible
notes - -
--------- ---------
Diluted net loss applicable to common
stockholders $ (28,284) $ (6,387)
========= =========
Weighted average common shares outstanding 30,050 29,880
Dilutive stock options/shares - -
Convertible notes equivalent shares - -
--------- ---------
Diluted weighted average common shares
outstanding 30,050 29,880
========= =========
Diluted net loss per share $ (0.94) $ (0.21)
========= =========
Average diluted shares outstanding for the three months ended March 31,
2008 exclude the antidilutive effects of the Company’s Convertible
Notes. The after-tax equivalent of interest on Convertible Notes was
$0.5 million and the Convertible Notes equivalent shares were 4.8
million. Diluted shares outstanding for the three months ended March
31, 2009 and 2008 also exclude the antidilutive effects of potentially
dilutive stock options and restricted stock totaling less than 0.1
million and 0.1 million shares of common stock, respectively. For the
three month period ending March 31, 2009 and 2008, the computation of
diluted earnings per share excludes options to purchase 2.3 million and
2.1 million shares of common stock, respectively, because the impact of
these shares would have been antidilutive.
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
March 31, December 31,
2009 2008
------------- -------------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 4,828 $ 29,766
Accounts receivable, net 17,248 37,925
Inventories 84,619 92,896
Prepaid expenses and other 4,215 5,307
------------- -------------
Total current assets 110,910 165,894
PROPERTY, PLANT AND EQUIPMENT, net 119,111 122,035
INTANGIBLE ASSETS 28,289 29,089
OTHER ASSETS 13,964 14,956
------------- -------------
$ 272,274 $ 331,974
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $ 52,962 $ 80,008
Current portion of capital lease obligation 337 337
Accounts payable 39,457 42,798
Other accrued liabilities 45,347 45,449
------------- -------------
Total current liabilities 138,103 168,592
CAPITAL LEASE OBLIGATION 4,722 4,803
OTHER NONCURRENT LIABILITIES AND CONTINGENCIES 3,222 5,142
STOCKHOLDERS' EQUITY 126,227 153,437
------------- -------------
$ 272,274 $ 331,974
============= =============
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Three Months Ended
March 31,
-----------------------
2009 2008
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (28,284) $ (6,387)
Adjustments to reconcile net loss to net cash
used in operating activities
Depreciation and amortization 4,796 5,187
Net loss on the sale of assets 6 -
Gain on debt extinguishment - (124)
Deferred income taxes - (3,530)
Stock-based compensation 965 863
Changes in operating assets and liabilities
Accounts receivable 20,677 3,266
Inventories 8,278 (20,100)
Prepaid expenses and other 1,092 878
Accounts payable and accrued liabilities (4,724) 13,572
Other, net (84) 101
---------- ----------
Net cash provided by (used in) operating
activities 2,722 (6,274)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (539) (1,741)
Proceeds from the sale of property, plant and
equipment 6 4
---------- ----------
Net cash used in investing activities (533) (1,737)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options - 4
Borrowings under revolving credit facilities 18,529 45,265
Payments under revolving credit facilities (45,575) (12,430)
Payments under long-term debt obligations - (58,412)
Principal payments under capital lease obligation (81) -
Common stock dividends paid - (1,363)
---------- ----------
Net cash used in financing activities (27,127) (26,936)
---------- ----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (24,938) (34,947)
CASH AND CASH EQUIVALENTS AT BEGINNING OF QUARTER 29,766 41,224
---------- ----------
CASH AND CASH EQUIVALENTS AT END OF QUARTER $ 4,828 $ 6,277
========== ==========
Press Contact:
Jim Hasty
VP, Marketing & Sales Administration
(765) 771-5487
Investor Relations:
(765) 771-5310
