Wabash Announces First Quarter 2022 Results
- Revenue of $546.8 million on increasing new trailer shipments
- Operating income of $20.1 million
- Diluted earnings per share of $0.24, exceeding prior outlook
- Robust backlog of $2.3B sets first quarter record; increases 50%+ YoY
- 2022 outlook for revenue and EPS increased to $2.5B and $1.90, respectively
LAFAYETTE, Ind., April 27, 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 March 31, 2022.
Net sales for the first quarter 2022 of $546.8 million increased 39.5% versus the prior year quarter as the Company continued to scale its ability to serve strong customer demand. Consolidated gross profit was $58.1 million, or 10.6% of sales. Operating income was $20.1 million, or 3.7% of sales during the quarter. Diluted earnings per share was $0.24, exceeding the Company's prior quarterly outlook.
Total company backlog as of March 31, 2022 was approximately $2.3 billion, an increase of $800 million compared to the same quarter last year. Wabash's backlog represents a first quarter record and exceeds the prior Q1 high by 42%.
“Evidenced by record first quarter backlog, demand across our portfolio of solutions remains strong,” explained Brent Yeagy, President and Chief Executive Officer. “With our customer base and supply chain both overwhelmingly levered to the United States, we are largely insulated from international volatility and fortunately situated to benefit from improving labor market trends and new and existing customers that are utilizing trailers in new and interesting ways.”
For the full year ending December 31, 2022, the company increased its outlook for revenue by $200 million to $2.5 billion. Additionally, the Company increased its full year EPS outlook by $0.15 to $1.90.
“As we achieved strengthening financial results throughout the first quarter, our confidence in the trajectory for our full year has increased and we are excited to raise our EPS outlook by more than our first quarter out-performance," said Yeagy. "While our prospects for 2022 are bright, I am most enthusiastic about the increasing rate of change I see within the development of sustainable, customer-centric products and services throughout our portfolio. These are some of the solutions that will chart the course of our strategic growth over the next decade.”
Business Segment Highlights
The table below is a summary of select segment operating and financial results prior to the elimination of intersegment sales for the first quarter of 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 March 31, | 2022 | 2021 | ||||||||||||||
| New Units Shipped | ||||||||||||||||
| Trailers | 11,695 | 9,660 | ||||||||||||||
| Truck bodies | 3,540 | 4,760 | ||||||||||||||
| Transportation Solutions | Parts & Services | |||||||||||||||
| Three Months Ended March 31, | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| (Unaudited, dollars in thousands) | ||||||||||||||||
| Net sales | $ | 502,065 | $ | 345,119 | $ | 46,708 | $ | 48,595 | ||||||||
| Gross profit | $ | 47,682 | $ | 38,328 | $ | 10,522 | $ | 10,466 | ||||||||
| Gross profit margin | 9.5 | % | 11.1 | % | 22.5 | % | 21.5 | % | ||||||||
| Income from operations | $ | 31,697 | $ | 16,623 | $ | 6,789 | $ | 6,384 | ||||||||
| Income from operations margin | 6.3 | % | 4.8 | % | 14.5 | % | 13.1 | % | ||||||||
Transportation Solutions’ net sales for the first quarter were $502.1 million, an increase of 45.5%, as compared to the prior year quarter, as operations continued to scale up. Operating income was $31.7 million or 6.3% of sales during the quarter.
Parts & Services' net sales for the first quarter were $46.7 million, a decrease of 3.9% as compared to the prior year quarter, primarily due to the divestiture of Extract Technology on June 30, 2021. Operating income was $6.8 million, or 14.5% 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, adjusted net income, adjusted 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 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 is included in the tables following this release.
Free cash flow is defined as net cash 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 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 and adjusted earnings per diluted share reflects no adjustments for either 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.
Adjusted segment EBITDA, a non-GAAP financial measure, 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 is included in the tables following this release.
First Quarter 2022 Conference Call
Wabash will discuss its results during its quarterly investor conference call on Wednesday, April 27, 2022, beginning at 10:00 a.m. EDT. The call and an accompanying slide presentation will be accessible on the "Investors" section of the Company’s website 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 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)
| March 31, 2022 | December 31, 2021 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 72,794 | $ | 71,778 | |||
| Accounts receivable, net | 290,035 | 176,511 | |||||
| Inventories, net | 286,734 | 237,621 | |||||
| Prepaid expenses and other | 46,374 | 43,795 | |||||
| Total current assets | 695,937 | 529,705 | |||||
| Property, plant, and equipment, net | 232,037 | 232,425 | |||||
| Goodwill | 188,438 | 188,443 | |||||
| Intangible assets, net | 109,402 | 114,441 | |||||
| Other assets | 41,043 | 42,057 | |||||
| Total assets | $ | 1,266,857 | $ | 1,107,071 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Current portion of long-term debt | $ | — | $ | — | |||
| Current portion of finance lease obligations | — | 59 | |||||
| Accounts payable | 258,643 | 173,950 | |||||
| Other accrued liabilities | 114,017 | 115,316 | |||||
| Total current liabilities | 372,660 | 289,325 | |||||
| Long-term debt | 484,354 | 428,315 | |||||
| Deferred income taxes | 40,510 | 36,019 | |||||
| Other non-current liabilities | 27,080 | 27,873 | |||||
| Total liabilities | 924,604 | 781,532 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Common stock 200,000,000 shares authorized, $0.01 par value, 49,032,640 and 48,954,482 shares outstanding, respectively | 764 | 759 | |||||
| Additional paid-in capital | 656,863 | 653,978 | |||||
| Retained earnings | 100,120 | 92,111 | |||||
| Accumulated other comprehensive income | 14,687 | 859 | |||||
| Treasury stock at cost, 27,454,978 and 27,013,275 common shares, respectively | (430,181 | ) | (422,168 | ) | |||
| Total stockholders' equity | 342,253 | 325,539 | |||||
| Total liabilities and stockholders’ equity | $ | 1,266,857 | $ | 1,107,071 | |||
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - dollars in thousands, except per share amounts)
| Three Months Ended March 31, | |||||||
| 2022 | 2021 | ||||||
| Net sales | $ | 546,761 | $ | 392,003 | |||
| Cost of sales | 488,706 | 344,837 | |||||
| Gross profit | 58,055 | 47,166 | |||||
| General and administrative expenses | 26,332 | 22,867 | |||||
| Selling expenses | 6,209 | 6,665 | |||||
| Amortization of intangible assets | 5,039 | 5,798 | |||||
| Impairment and other, net | 340 | 621 | |||||
| Income from operations | 20,135 | 11,215 | |||||
| Other income (expense): | |||||||
| Interest expense | (4,913 | ) | (6,150 | ) | |||
| Other, net | (71 | ) | (14 | ) | |||
| Other expense, net | (4,984 | ) | (6,164 | ) | |||
| Income before income tax expense | 15,151 | 5,051 | |||||
| Income tax expense | 3,077 | 1,834 | |||||
| Net income | $ | 12,074 | $ | 3,217 | |||
| Net income per share: | |||||||
| Basic | $ | 0.25 | $ | 0.06 | |||
| Diluted | $ | 0.24 | $ | 0.06 | |||
| Weighted average common shares outstanding (in thousands): | |||||||
| Basic | 49,004 | 52,126 | |||||
| Diluted | 49,730 | 53,044 | |||||
| Dividends declared per share | $ | 0.08 | $ | 0.08 | |||
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - dollars in thousands)
| Three Months Ended March 31, | |||||||
| 2022 | 2021 | ||||||
| Cash flows from operating activities | |||||||
| Net income | $ | 12,074 | $ | 3,217 | |||
| Adjustments to reconcile net income to net cash used in operating activities | |||||||
| Depreciation | 8,225 | 6,432 | |||||
| Amortization of intangibles | 5,039 | 5,798 | |||||
| Net gain on sale of property, plant and equipment | (645 | ) | (193 | ) | |||
| Deferred income taxes | (50 | ) | 661 | ||||
| Stock-based compensation | 2,277 | 2,032 | |||||
| Impairment | 986 | 817 | |||||
| Non-cash interest expense | 213 | 296 | |||||
| Accounts receivable | (113,524 | ) | (33,059 | ) | |||
| Inventories | (49,113 | ) | (63,422 | ) | |||
| Prepaid expenses and other | 2,913 | (7,031 | ) | ||||
| Accounts payable and accrued liabilities | 98,284 | 61,789 | |||||
| Other, net | (1,246 | ) | 259 | ||||
| Net cash used in operating activities | $ | (34,567 | ) | $ | (22,404 | ) | |
| Cash flows from investing activities | |||||||
| Cash payments for capital expenditures | (9,949 | ) | (4,165 | ) | |||
| Proceeds from the sale of assets | 1,445 | 203 | |||||
| Net cash used in investing activities | $ | (8,504 | ) | $ | (3,962 | ) | |
| Cash flows from financing activities | |||||||
| Proceeds from exercise of stock options | 613 | 1,235 | |||||
| Dividends paid | (4,337 | ) | (4,253 | ) | |||
| Borrowings under revolving credit facilities | 56,284 | 114 | |||||
| Payments under revolving credit facilities | (318 | ) | (114 | ) | |||
| Principal payments under finance lease obligations | (59 | ) | (85 | ) | |||
| Debt issuance costs paid | (83 | ) | — | ||||
| Stock repurchases | (8,013 | ) | (19,321 | ) | |||
| Net cash provided by (used in) financing activities | $ | 44,087 | $ | (22,424 | ) | ||
| Cash and cash equivalents: | |||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | $ | 1,016 | $ | (48,790 | ) | ||
| Cash, cash equivalents, and restricted cash at beginning of period | 71,778 | 217,677 | |||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 72,794 | $ | 168,887 | |||
WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Unaudited - dollars in thousands)
| Wabash National Corporation | ||||||||||||||||
| Three Months Ended March 31, | 2022 | 2021 | ||||||||||||||
| Units Shipped | ||||||||||||||||
| New trailers | 11,695 | 9,660 | ||||||||||||||
| New truck bodies | 3,540 | 4,760 | ||||||||||||||
| Used trailers | 20 | 40 | ||||||||||||||
| Three Months Ended March 31, | Transportation Solutions | Parts & Services | Corporate and Eliminations | Consolidated | ||||||||||||
| 2022 | ||||||||||||||||
| New Trailers | $ | 437,963 | $ | 54 | $ | (311 | ) | $ | 437,706 | |||||||
| Used Trailers | — | 569 | — | 569 | ||||||||||||
| Components, parts and service | — | 33,564 | (1,701 | ) | 31,863 | |||||||||||
| Equipment and other | 64,102 | 12,521 | — | 76,623 | ||||||||||||
| Total net external sales | $ | 502,065 | $ | 46,708 | $ | (2,012 | ) | $ | 546,761 | |||||||
| Gross profit | $ | 47,682 | $ | 10,522 | $ | (149 | ) | $ | 58,055 | |||||||
| Income (loss) from operations | $ | 31,697 | $ | 6,789 | $ | (18,351 | ) | $ | 20,135 | |||||||
| 2021 | ||||||||||||||||
| New Trailers | $ | 268,931 | $ | — | $ | — | $ | 268,931 | ||||||||
| Used Trailers | 165 | 847 | — | 1,012 | ||||||||||||
| Components, parts and service | — | 35,498 | (1,711 | ) | 33,787 | |||||||||||
| Equipment and other | 76,023 | 12,250 | — | 88,273 | ||||||||||||
| Total net external sales | $ | 345,119 | $ | 48,595 | $ | (1,711 | ) | $ | 392,003 | |||||||
| Gross profit | $ | 38,328 | $ | 10,466 | $ | (1,628 | ) | $ | 47,166 | |||||||
| Income (loss) from operations | $ | 16,623 | $ | 6,384 | $ | (11,792 | ) | $ | 11,215 | |||||||
WABASH NATIONAL CORPORATION
SEGMENT AND COMPANY FINANCIAL INFORMATION
(Unaudited - dollars in thousands)
| Adjusted Operating Income1 | Three Months Ended March 31, | ||||||
| 2022 | 2021 | ||||||
| Transportation Solutions | |||||||
| Income from operations | $ | 31,697 | $ | 16,623 | |||
| Adjustments: | |||||||
| N/A | — | — | |||||
| Adjusted operating income | 31,697 | 16,623 | |||||
| Parts & Services | |||||||
| Income from operations | 6,789 | 6,384 | |||||
| Adjustments: | |||||||
| N/A | — | — | |||||
| Adjusted operating income | 6,789 | 6,384 | |||||
| Corporate | |||||||
| Loss from operations | (18,351 | ) | (11,792 | ) | |||
| Adjustments: | |||||||
| N/A | — | — | |||||
| Adjusted operating loss | (18,351 | ) | (11,792 | ) | |||
| Consolidated | |||||||
| Income from operations | 20,135 | 11,215 | |||||
| Adjustments: | |||||||
| N/A | — | — | |||||
| Adjusted operating income | $ | 20,135 | $ | 11,215 | |||
1 Adjusted operating income, a non-GAAP financial measure, excludes 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 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 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 March 31, | ||||||
| 2022 | 2021 | ||||||
| Net income | $ | 12,074 | $ | 3,217 | |||
| Income tax expense | 3,077 | 1,834 | |||||
| Interest expense | 4,913 | 6,150 | |||||
| Depreciation and amortization | 13,264 | 12,230 | |||||
| Stock-based compensation | 2,277 | 2,032 | |||||
| Impairment and other, net | 340 | 621 | |||||
| Other, net | 71 | 14 | |||||
| Operating EBITDA | $ | 36,016 | $ | 26,098 | |||
| Adjusted Net Income2: | Three Months Ended March 31, | ||||||
| 2022 | 2021 | ||||||
| Net income | $ | 12,074 | $ | 3,217 | |||
| Adjustments: | |||||||
| N/A | — | — | |||||
| Adjusted net income | $ | 12,074 | $ | 3,217 | |||
| Adjusted Diluted Earnings Per Share2: | Three Months Ended March 31, | ||||||
| 2022 | 2021 | ||||||
| Diluted earnings per share | $ | 0.24 | $ | 0.06 | |||
| Adjustments: | |||||||
| N/A | — | — | |||||
| Adjusted diluted earnings per share | $ | 0.24 | $ | 0.06 | |||
| Weighted average diluted shares outstanding (in thousands) | 49,730 | 53,044 | |||||
1 Operating EBITDA 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 and adjusted earnings per diluted share reflects no adjustments in either period presented. However, 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.
WABASH NATIONAL CORPORATION
RECONCILIATION OF FREE CASH FLOW1
(Unaudited - dollars in thousands)
| Three Months Ended March 31, | |||||||
| 2022 | 2021 | ||||||
| Net cash used in operating activities | $ | (34,567 | ) | $ | (22,404 | ) | |
| Cash payments for capital expenditures | (9,949 | ) | (4,165 | ) | |||
| Free cash flow1 | $ | (44,516 | ) | $ | (26,569 | ) | |
1 Free cash flow is defined as net cash 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 March 31, 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Income from operations | $ | 31,697 | $ | 16,623 | $ | 6,789 | $ | 6,384 | |||||||
| Depreciation and amortization | 11,533 | 10,386 | 1,036 | 1,315 | |||||||||||
| Impairment and other, net | (621 | ) | 818 | (10 | ) | (197 | ) | ||||||||
| Adjusted segment EBITDA | $ | 42,609 | $ | 27,827 | $ | 7,815 | $ | 7,502 | |||||||
| Adjusted segment EBITDA margin | 8.5 | % | 8.1 | % | 16.7 | % | 15.4 | % | |||||||
1 Adjusted segment EBITDA, a non-GAAP financial measure, 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
Investor Relations:
Ryan Reed
Sr Director, Corporate Development & Investor Relations
(765) 490-5664
