Wabash National Corporation Announces Second Quarter 2021 Results

Lafayette, Indiana, UNITED STATES


  • Revenue of $449.4 million on increasing new trailer shipments
  • Operating income of $22.7 million on a GAAP basis or $20.8 million on a non-GAAP adjusted basis
  • Earnings per share of $0.24 on a GAAP basis or $0.21 on a non-GAAP adjusted basis
  • Backlog of $1.3 billion up 77% YoY; outperforms normal sequential seasonality
  • 2021 EPS outlook maintained, updated for divestiture impact at $0.72 per diluted share; range of $0.67 to $0.77

LAFAYETTE, Ind., July 28, 2021 (GLOBE NEWSWIRE) -- Wabash National Corporation (NYSE: WNC), the innovation leader of engineered solutions for the transportation, logistics and distribution industries, today reported results for the quarter ended June 30, 2021.

Net sales for the second quarter 2021 of $449.4 million increased 32.5% versus the prior year quarter as the company continued to scale its ability to serve strong customer demand. Consolidated gross profit was $55.6 million, or 12.4% of sales. Operating income was $22.7 million, or 5.0% of sales during the quarter. On a non-GAAP adjusted basis, operating income was $20.8 million. GAAP earnings per share were $0.24, or $0.21, on a non-GAAP adjusted basis.

Total company backlog as of June 30, 2021 was approximately $1.3 billion. Normal seasonal order patterns generally dictate that the backlog declines sequentially in Q2; however, during the second quarter of 2021, the backlog softened less than usual and remained up 77% compared to June of 2020.

“While the manufacturing environment continued to be broadly challenging during the second quarter, Wabash National is successfully navigating the issues created by labor scarcity and material cost increases compounded by exceptionally strong demand in our industry and in the economy as a whole,” explained Brent Yeagy, president and chief executive officer. “Our strong financial results are a testament to our employees' dedication to serve our customers as well as our diligent cost control through the year.”

For the full year ending December 31, 2021, the company maintained its EPS outlook and updated it for the impact of the divestiture of Extract Technology, which closed on June 30, 2021. The midpoint for earnings per diluted share is anticipated to be $0.72 with a range of $0.67 to $0.77.

“We are pleased that new trailer shipments remain on an upward trajectory and that the ramp in trailer production continues to meet our expectations. Freight markets remain very strong and our customers are looking to trailers as a way to address intensified driver shortages and network imbalances. We will continue to manage through short-term commodity headwinds and labor challenges as we work toward maximizing our factory capacity and positioning ourselves to capitalize on continued strong customer demand in 2021 and beyond.”

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 2021 and 2020. A complete disclosure of the results by individual segment is included in the tables following this release.

  Commercial Trailer
Products
 Diversified Products Final Mile Products
Three Months Ended June 30, 2021
 2020
 2021
 2020
 2021
 2020
  (dollars in thousands)
New trailers shipped 11,090  8,000  500  400     
Net sales $296,342  $232,254  $76,578  $63,951  $81,023  $50,832 
Gross profit $38,623  $22,392  $12,151  $10,761  $6,147  $1,963 
Gross profit margin 13.0%  9.6%  15.9%  16.8%  7.6%  3.9% 
Income (loss) from operations $32,299  $18,599  $5,824  $2,242  $(3,247)  $(6,569) 
Income (loss) from operations margin 10.9%  8.0%  7.6%  3.5%  (4.0)%  (12.9)% 
Adjusted income (loss) from operations $32,299  $18,599  $3,950  $2,242  $(3,247)  $(6,569) 
Adjusted income (loss) from operations margin 10.9%  8.0%  5.2%  3.5%  (4.0)%  (12.9)% 
                   

Commercial Trailer Products’ net sales for the second quarter were $296.3 million, an increase of 27.6% as compared to the prior year quarter, as operations scaled to meet improved customer demand. Operating income was $32.3 million or 10.9% of sales during the quarter.

Diversified Products’ net sales for the second quarter were $76.6 million, an increase of 19.7% as compared to the prior year quarter, as operations worked to ramp up. Revenue in this business was impacted by the divestiture of the Beall brand of tank trailers on December 31, 2020. Operating income was $5.8 million, or 7.6% of sales during the quarter.

Final Mile Products’ net sales for the second quarter totaled $81.0 million, an increase of 59.4% as compared to the prior year, as operations scaled to be able to satisfy stronger market demand. Operating loss was $3.2 million during the quarter while adjusted segment EBITDA improved to $1.3 million.

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 (loss), adjusted net income (loss), 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 (loss), 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. 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 (loss) and net income (loss), is beneficial to an investor’s understanding of the Company’s operating performance. A reconciliation of operating EBITDA to net income (loss) is included in the tables following this release.

Free cash flow is defined as net cash (used in) provided by operating activities minus 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) provided by operating activities is included in the tables following this release.

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. A reconciliation of adjusted operating income (loss) to operating income (loss), the most comparable GAAP financial measure, is included in the tables following this release.

Adjusted net income (loss) and adjusted earnings per diluted (2021) and basic (2020) share reflect adjustments for the impact of sales and divestitures, debt transactions, and non-cash impairment, 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 (loss) and diluted (2021) and basic (2020) net income (loss) 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 (loss), and excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) 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 (loss) from operations is included in the tables following this release.

Second Quarter 2021 Conference Call

Wabash National will discuss its results during its quarterly investor conference call on Wednesday, July 28, 2021, 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 www.wabashnational.com. The conference call will also be accessible by dialing (833) 476-0947, conference ID 3994951. A replay of the call will be available on the site shortly after the conclusion of the presentation.

About Wabash National Corporation

As the innovation leader of engineered solutions for the transportation, logistics and distribution industries, Wabash National Corporation (NYSE:WNC) is Changing How the World Reaches You™. Headquartered in Lafayette, Indiana, the company’s mission is to enable customers to succeed with breakthrough ideas and solutions that help them move everything from first to final mile. Wabash National designs and manufactures a diverse range of products, including: dry freight and refrigerated trailers, platform trailers, liquid tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions and specialty food grade equipment. Its innovative products are sold under the following brand names: Wabash National®, Benson®, Brenner® Tank, Bulk Tank International, DuraPlate®, Supreme®, Transcraft®, Walker Engineered Products, and Walker Transport. Learn more at www.wabashnational.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)

  June 30,
2021
 December 31,
2020
Assets    
Current assets:    
Cash and cash equivalents $134,375  $217,677 
Accounts receivable, net 121,390  101,301 
Inventories, net 252,550  163,750 
Prepaid expenses and other 79,669  63,036 
Total current assets 587,984  545,764 
Property, plant, and equipment, net 207,369  209,676 
Goodwill 188,438  199,560 
Intangible assets, net 154,048  166,887 
Other assets 42,661  39,583 
Total assets $1,180,500  $1,161,470 
Liabilities and Stockholders’ Equity    
Current liabilities:    
Current portion of long-term debt $  $ 
Current portion of finance lease obligations 206  348 
Accounts payable 171,377  104,425 
Other accrued liabilities 110,966  130,980 
Total current liabilities 282,549  235,753 
Long-term debt 418,900  447,979 
Finance lease obligations   30 
Deferred income taxes 52,517  46,777 
Other non-current liabilities 26,554  26,052 
Total liabilities 780,520  756,591 
Commitments and contingencies    
Stockholders’ equity:    
Common stock 200,000,000 shares authorized, $0.01 par value, 50,464,034 and 52,536,482 shares outstanding, respectively 758  755 
Additional paid-in capital 650,358  644,695 
Retained earnings 114,445  107,233 
Accumulated other comprehensive income 31,158  7,633 
Treasury stock at cost, 25,422,064 and 23,004,607 common shares, respectively (396,739) (355,437)
Total stockholders' equity 399,980  404,879 
Total liabilities and stockholders’ equity $1,180,500  $1,161,470 


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,
  2021 2020 2021 2020
Net sales $449,422  $339,153  $841,425  $726,227 
Cost of sales 393,814  304,832  738,651  655,163 
Gross profit 55,608  34,321  102,774  71,064 
General and administrative expenses 22,907  19,633  45,774  45,825 
Selling expenses 6,065  4,886  12,730  12,884 
Amortization of intangible assets 5,799  5,493  11,597  10,988 
Impairment and other, net (1,847) (1,690) (1,226) 105,424 
Income (loss) from operations 22,684  5,999  33,899  (104,057)
Other income (expense):        
Interest expense (6,034) (5,882) (12,184) (12,154)
Other, net (413) 285  (427) 405 
Other expense, net (6,447) (5,597) (12,611) (11,749)
Income (loss) before income tax expense (benefit) 16,237  402  21,288  (115,806)
Income tax expense (benefit) 3,985  548  5,819  (9,013)
Net income (loss) $12,252  $(146) $15,469  $(106,793)
         
Net income (loss) per share:        
Basic $0.24  $0.00  $0.30  $(2.01)
Diluted $0.24  $0.00  $0.29  $(2.01)
Weighted average common shares outstanding (in thousands):        
Basic 51,272  52,874  51,697  53,015 
Diluted 51,989  52,874  52,472  53,015 
         
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,
  2021 2020
Cash flows from operating activities    
Net income (loss) $15,469  $(106,793)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities    
Depreciation 12,881  11,657 
Amortization of intangibles 11,597  10,988 
Net gain on sale of property, plant and equipment and business divestiture (2,043) (1,690)
Loss on debt extinguishment 452   
Deferred income taxes (1,799) (2,648)
Stock-based compensation 4,216  416 
Impairment 817  107,114 
Non-cash interest expense 591  535 
Accounts receivable (25,758) 48,785 
Inventories (89,733) (14,154)
Prepaid expenses and other 2,500  (8,195)
Accounts payable and accrued liabilities 56,074  (22,126)
Other, net 1,650  (1,235)
Net cash (used in) provided by operating activities $(13,086) $22,654 
Cash flows from investing activities    
Capital expenditures (11,063) (10,921)
Proceeds from the sale of assets and business divestiture 20,978  2,725 
Net cash provided by (used in) investing activities $9,915  $(8,196)
Cash flows from financing activities    
Proceeds from exercise of stock options 1,450   
Dividends paid (8,437) (8,742)
Borrowings under revolving credit facilities 232  45,449 
Payments under revolving credit facilities (232) (45,449)
Principal payments under finance lease obligations (172) (162)
Principal payments under term loan credit facility (30,000)  
Debt issuance costs paid   (12)
Stock repurchases (41,302) (10,065)
Net cash used in financing activities $(78,461) $(18,981)
Cash and cash equivalents:    
Net decrease in cash, cash equivalents, and restricted cash $(81,632) $(4,523)
Cash, cash equivalents, and restricted cash at beginning of period 217,677  140,516 
Cash, cash equivalents, and restricted cash at end of period $136,045  $135,993 


WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Unaudited - dollars in thousands)

Three Months Ended June 30, Commercial
Trailer Products
 Diversified
Products
 Final Mile
Products
 Corporate and
Eliminations
 Consolidated
2021          
New trailers shipped 11,090  500      11,590 
Used trailers shipped   15      15 
           
New Trailers $287,741  $34,090  $  $  $321,831 
Used Trailers 19  359      378 
Components, parts and service 5,529  27,544  3,965  (4,282) 32,756 
Equipment and other 3,053  14,585  77,058  (239) 94,457 
Total net external sales $296,342  $76,578  $81,023  $(4,521) $449,422 
Gross profit $38,623  $12,151  $6,147  $(1,313) $55,608 
Income (loss) from operations $32,299  $5,824  $(3,247) $(12,192) $22,684 
Adjusted income (loss) from operations1 $32,299  $3,950  $(3,247) $(12,192) $20,810 
           
2020          
New trailers shipped  8,000   400      8,400 
Used trailers shipped  185   35      220 
           
New Trailers $218,753  $28,176  $  $  $246,929 
Used Trailers 2,273  1,323      3,596 
Components, parts and service 9,571  22,166  2,453  (7,884) 26,306 
Equipment and other 1,657  12,286  48,379    62,322 
Total net external sales $232,254  $63,951  $50,832  $(7,884) $339,153 
Gross profit $22,392  $10,761  $1,963  $(795) $34,321 
Income (loss) from operations $18,599  $2,242  $(6,569) $(8,273) $5,999 
Adjusted income (loss) from operations1 $18,599  $2,242  $(6,569) $(8,273) $5,999 

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)

Six Months Ended June 30, Commercial
Trailer Products
 Diversified
Products
 Final Mile
Products
 Corporate and
Eliminations
 Consolidated
2021          
New trailers shipped 20,340  920      21,260 
Used trailers shipped 15  40      55 
           
New Trailers $526,406  $64,356  $  $  $590,762 
Used Trailers 184  1,206      1,390 
Components, parts and service 11,470  57,510  7,688  (10,125) 66,543 
Equipment and other 5,991  27,514  150,400  (1,175) 182,730 
Total net external sales $544,051  $150,586  $158,088  $(11,300) $841,425 
Gross profit $65,858  $27,254  $12,603  $(2,941) $102,774 
Income (loss) from operations $53,164  $11,913  $(7,194) $(23,984) $33,899 
Adjusted income (loss) from operations1 $53,164  $10,039  $(7,194) $(23,984) $32,025 
           
2020          
New trailers shipped 16,525  1,050      17,575 
Used trailers shipped 220  70      290 
           
New Trailers $456,654  $71,488  $  $  $528,142 
Used Trailers 2,591  2,533      5,124 
Components, parts and service 18,843  48,248  6,175  (14,984) 58,282 
Equipment and other 5,141  24,640  104,927  (29) 134,679 
Total net external sales $483,229  $146,909  $111,102  $(15,013) $726,227 
Gross profit $46,235  $25,902  $1,719  $(2,792) $71,064 
Income (loss) from operations $34,470  $(3,828) $(114,610) $(20,089) $(104,057)
Adjusted income (loss) from operations1 $34,847  $7,143  $(18,844) $(20,089) $3,057 

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 Income (Loss)1 Three Months Ended
June 30,
 Six Months Ended
June 30,
  2021 2020 2021 2020
Commercial Trailer Products        
Income from operations $32,299  $18,599  $53,164  $34,470 
Adjustments:        
Impairment       377 
Adjusted operating income $32,299  $18,599  $53,164  $34,847 
         
Diversified Products        
Income (loss) from operations 5,824  2,242  11,913  (3,828)
Adjustments:        
Impairment       10,971 
Gain on divestiture of Extract Technology (1,874)   (1,874)  
Adjusted operating income 3,950  2,242  10,039  7,143 
         
Final Mile Products        
Loss from operations (3,247) (6,569) (7,194) (114,610)
Adjustments:        
Impairment       95,766 
Adjusted operating loss (3,247) (6,569) (7,194) (18,844)
         
Corporate        
Loss from operations (12,192) (8,273) (23,984) (20,089)
         
Consolidated        
Income (loss) from operations 22,684  5,999  33,899  (104,057)
Adjustments:        
Impairment       107,114 
Gain on divestiture of Extract Technology (1,874)   (1,874)  
Adjusted operating income $20,810  $5,999  $32,025  $3,057 

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 June 30, Six Months Ended June 30,
  2021 2020 2021 2020
Net income (loss) $12,252  $(146) $15,469  $(106,793)
Income tax expense (benefit) 3,985  548  5,819  (9,013)
Interest expense 6,034  5,882  12,184  12,154 
Depreciation and amortization 12,248  11,526  24,478  22,645 
Stock-based compensation 2,184  1,333  4,216  416 
Impairment and other, net (1,847) (1,690) (1,226) 105,424 
Other, net 413  (285) 427  (405)
Operating EBITDA $35,269  $17,168  $61,367  $24,428 


Adjusted Net Income (Loss)2: Three Months Ended June 30, Six Months Ended June 30,
  2021 2020 2021 2020
Net income (loss) $12,252  $(146) $15,469  $(106,793)
Adjustments:        
Loss on debt extinguishment 452    452   
Impairment       107,114 
Gain on divestiture of Extract Technology (1,874)   (1,874)  
Tax effect of aforementioned items 327    327  (2,786)
Adjusted net income (loss) $11,157  $(146) $14,374  $(2,465)


Adjusted Diluted (2021) and Basic (2020) Earnings Per Share2: Three Months Ended June 30, Six Months Ended June 30,
  2021 2020 2021 2020
Diluted (2021) and basic (2020) earnings per share $0.24  $0.00  $0.29  $(2.01)
Adjustments:        
Loss on debt extinguishment 0.01    0.01   
Impairment       2.01 
Gain on divestiture of Extract Technology (0.04)   (0.04)  
Tax effect of aforementioned items     0.01  (0.05)
Adjusted diluted (2021) and basic (2020) earnings per share $0.21  $0.00  $0.27  $(0.05)
         
Weighted average diluted (2021) and basic (2020) shares outstanding (in thousands) 51,989  52,874  52,472  53,015 

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. 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 (loss) and net income (loss), is beneficial to an investor’s understanding of the Company’s operating performance.
2 Adjusted net income (loss) and adjusted earnings per diluted (2021) and basic (2020) share reflect adjustments for the impact of sales and divestitures, debt transactions, and non-cash impairment, 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 (loss) and diluted (2021) and basic (2020) net income (loss) 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)

  Six Months Ended June 30,
  2021 2020
Net cash (used in) provided by operating activities $(13,086) $22,654 
Capital expenditures (11,063) (10,921)
Free cash flow1 $(24,149) $11,733 

1 Free cash flow is defined as net cash (used in) provided by operating activities minus 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.


WABASH NATIONAL CORPORATION
RECONCILIATION OF ADJUSTED SEGMENT EBITDA1
AND ADJUSTED SEGMENT EBITDA MARGIN1
(Unaudited - dollars in thousands)

  Commercial Trailer Products Diversified Products Final Mile Products
Three Months Ended June 30, 2021 2021 2020 2021 2020 2021 2020
Income (loss) from operations $32,299  $18,599  $5,824  $2,242  $(3,247) $(6,569)
Depreciation and amortization 3,211  2,946  3,961  4,613  4,577  3,577 
Impairment and other, net (4) (1,767) (1,841)   1  80 
Adjusted segment EBITDA $35,506  $19,778  $7,944  $6,855  $1,331  $(2,912)
             
Adjusted segment EBITDA margin 12.0% 8.5% 10.4% 10.7% 1.6% (5.7)%


  Commercial Trailer Products Diversified Products Final Mile Products
Six Months Ended June 30, 2021 2021 2020 2021 2020 2021 2020
Income (loss) from operations $53,164  $34,470  $11,913  $(3,828) $(7,194) $(114,610)
Depreciation and amortization 6,248  5,679  8,061  9,114  9,141  7,132 
Impairment and other, net 181  (1,394) (1,413) 10,971  6  95,847 
Adjusted segment EBITDA $59,593  $38,755  $18,561  $16,257  $1,953  $(11,631)
             
Adjusted segment EBITDA margin 11.0% 8.0% 12.3% 11.1% 1.2% (10.5)%

1 Adjusted segment EBITDA, a non-GAAP financial measure, is calculated by adding back segment depreciation and amortization expense to segment operating income (loss), and excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) 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, Corporate Communications
(765) 771-5766
dana.stelsel@wabashnational.com

Investor Relations:
Ryan Reed
Director, Corporate Development & Investor Relations
(765) 490-5664
ryan.reed@wabashnational.com