- Record backlog of $2.5 billion up 31% sequentially and 70% year-over-year
- Fourth quarter revenue of $479.3 million
- Fourth quarter GAAP operating loss of $(18.6) million or operating income of $9.7 million on a non-GAAP adjusted basis
- Fourth quarter GAAP earnings per diluted share of $(0.51) or $0.07 on a non-GAAP adjusted basis
- 2022 EPS outlook maintained, updated for reduced amortization impact at $1.75
- Company announces move to unified Wabash branded offerings, retirement of legacy brand names
LAFAYETTE, Ind., Feb. 02, 2022 (GLOBE NEWSWIRE) -- Wabash (NYSE: WNC), the innovation leader of engineered solutions for the transportation, logistics and distribution industries, today reported results for the quarter and full year ended December 31, 2021.
For the fourth quarter 2021 net sales were $479.3 million as supply chain challenges persisted. Operating loss was $(18.6) million. On a non-GAAP basis, adjusting for a non-cash impairment of trade names and trademarks, operating income was $9.7 million or 2.0% of net sales. Net loss was $(25.3) million, or $(0.51) per diluted share. Adjusting for debt transactions costs and non-cash impairment of trade names and trademarks, fourth quarter net income was $3.7 million, or $0.07 per share on a non-GAAP basis.
For the full year 2021, revenue totaled $1.8 billion with operating income of $33.5 million. On a non-GAAP adjusted basis, operating income was $60.0 million or 3.3% of sales. Net income was $1.2 million or earnings per diluted share of $0.02. On a non-GAAP adjusted basis, net income was $29.1 million or earnings per diluted share of $0.56.
Operating EBITDA, a non-GAAP measure that excludes the effects of certain items, for the fourth quarter of 2021 was $22.8 million, or 4.8% of net sales, and full year operating EBITDA was $117.0 million, or 6.5% of net sales.
Total Company backlog as of December 31, 2021 was approximately $2.5 billion as new order activity continued to outpace shipments during the fourth quarter. Backlog rose 31% compared to September 2021 and was 70% above December 2020.
“After two years of accomplishments in our reorganization, new customer acquisition, and strategic growth as One Wabash, the culmination of our efforts is how we go to market with a powerful brand strategy designed to carry all of our legacy brands into the future," explained Brent Yeagy, president and chief executive officer. "Last quarter we communicated the modification of our corporate name to Wabash and today we're excited to follow on to announce the streamlining of our product brand architecture to further leverage the Wabash brand name. Moving to Wabash-branded offerings while retiring legacy product brand names will serve as the external manifestation of our One Wabash structure.”
Outlook
For the full year ending December 31, 2022, the company has issued guidance of approximately $2.3 billion in sales and earnings per diluted share of at least $1.75.
Mr. Yeagy continued, “As our guidance suggests, we remain optimistic about 2022 as our One Wabash organization has executed meaningful cost recovery within our order backlog, which grew to another record level during the fourth quarter. While our financial outlook assumes no improvement in supply chain conditions, other known changes including hiring activity and the initiation of pass-through pricing on commodities ensure a new level of margin stability and EPS certainty for Wabash in 2022. Longer-term we remain focused on bringing new products and technologies to market, building out adjacent revenue streams and growing beyond the equipment cycle.”
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 fourth quarter of 2021 and 2020. A complete disclosure of the results by individual segment is included in the tables following this release.
| Wabash | ||||||||||||||||
| Three Months Ended December 31, | 2021 | 2020 | ||||||||||||||
| Units Shipped | ||||||||||||||||
| New trailers | 11,655 | 10,585 | ||||||||||||||
| New truck bodies | 3,230 | 3,300 | ||||||||||||||
| Used trailers | 25 | 170 | ||||||||||||||
| Transportation Solutions | Parts & Service | |||||||||||||||
| Three Months Ended December 31, | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| (Unaudited, dollars in thousands) | ||||||||||||||||
| Net sales | $ | 443,146 | $ | 361,280 | $ | 38,143 | $ | 44,985 | ||||||||
| Gross profit | $ | 36,854 | $ | 36,119 | $ | 7,958 | $ | 10,848 | ||||||||
| Gross profit margin | 8.3 | % | 10.0 | % | 20.9 | % | 24.1 | % | ||||||||
| (Loss) income from operations | $ | (7,623 | ) | $ | 13,396 | $ | 1,692 | $ | 8,808 | |||||||
| (Loss) income from operations margin | (1.7 | )% | 3.7 | % | 4.4 | % | 19.6 | % | ||||||||
| Adjusted income from operations | $ | 17,996 | $ | 15,515 | $ | 4,419 | $ | 6,551 | ||||||||
| Adjusted income from operations margin | 4.1 | % | 4.3 | % | 11.6 | % | 14.6 | % | ||||||||
Transportation Solutions’ net sales for the fourth quarter were $443.1 million, an increase of 22.7% compared to the prior year quarter, as a result of strong customer demand and improving rates of production. During the quarter, GAAP operating loss was $7.6 million. Non-GAAP operating income was $18.0 million or 4.1% of sales when adjusting for a non-cash impairment of trade names and trademarks.
Parts & Service's net sales for the fourth quarter were $38.1 million, a decrease of 15.2% compared to the prior year quarter, primarily due to the divestiture of Extract Technology on June 30, 2021. Operating income was $1.7 million during the quarter. Adjusting for a non-cash impairment of trade names and trademarks, Parts and Services' fourth quarter non-GAAP operating income was $4.4 million, or 11.6% 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 (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, debt transactions (including losses on debt extinguishment and debt issuance costs expensed), 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 (used in) 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 and adjusted earnings per diluted share each reflect adjustments for sales of assets, non-cash impairment and debt transactions, 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 net income (loss) per share, is beneficial to an investor’s understanding of the Company’s performance. A reconciliation of adjusted net income and adjusted earnings per diluted share to net income (loss) and net income (loss) per diluted share is included in the tables following this release.
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.
Fourth Quarter 2021 Conference Call
Wabash will discuss its results during its quarterly investor conference call on Wednesday, February 2, beginning at 10:00 a.m. EST. The call and an accompanying slide presentation will be accessible on the "Investors" section of the Company’s website www.onewabash.com. 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
Wabash (NYSE: WNC) is the visionary leader of engineered 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 order 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
CONSOLIDATED BALANCE SHEETS
(Unaudited - dollars in thousands)
| December 31, 2021 | December 31, 2020 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 71,778 | $ | 217,677 | |||
| Accounts receivable, net | 176,511 | 101,301 | |||||
| Inventories | 237,621 | 163,750 | |||||
| Prepaid expenses and other | 43,795 | 63,036 | |||||
| Total current assets | 529,705 | 545,764 | |||||
| Property, plant, and equipment, net | 232,425 | 209,676 | |||||
| Goodwill | 188,443 | 199,560 | |||||
| Intangible assets | 114,441 | 166,887 | |||||
| Other assets | 42,057 | 39,583 | |||||
| Total assets | $ | 1,107,071 | $ | 1,161,470 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities: | |||||||
| Current portion of long-term debt | $ | — | $ | — | |||
| Current portion of finance lease obligations | 59 | 348 | |||||
| Accounts payable | 173,950 | 104,425 | |||||
| Other accrued liabilities | 115,316 | 130,980 | |||||
| Total current liabilities | 289,325 | 235,753 | |||||
| Long-term debt | 428,315 | 447,979 | |||||
| Finance lease obligations | — | 30 | |||||
| Deferred income taxes | 36,019 | 46,777 | |||||
| Other non-current liabilities | 27,873 | 26,052 | |||||
| Total liabilities | 781,532 | 756,591 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity: | |||||||
| Common stock, $0.01 par value: 200,000,000 shares authorized; 48,954,482 and 52,536,482 shares outstanding, respectively | 759 | 755 | |||||
| Additional paid-in capital | 653,978 | 644,695 | |||||
| Retained earnings | 92,111 | 107,233 | |||||
| Accumulated other comprehensive income | 859 | 7,633 | |||||
| Treasury stock, at cost: 27,013,275 and 23,004,607 common shares, respectively | (422,168 | ) | (355,437 | ) | |||
| Total stockholders' equity | 325,539 | 404,879 | |||||
| Total liabilities and stockholders' equity | $ | 1,107,071 | $ | 1,161,470 | |||
WABASH
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - dollars in thousands, except per share amounts)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net sales | $ | 479,277 | $ | 404,078 | $ | 1,803,268 | $ | 1,481,889 | |||||||
| Cost of sales | 436,629 | 358,582 | 1,606,801 | 1,322,135 | |||||||||||
| Gross profit | 42,648 | 45,496 | 196,467 | 159,754 | |||||||||||
| General and administrative expenses | 22,067 | 24,166 | 88,807 | 92,740 | |||||||||||
| Selling expenses | 5,371 | 5,686 | 23,691 | 25,080 | |||||||||||
| Amortization of intangible assets | 5,630 | 5,497 | 22,858 | 21,981 | |||||||||||
| Impairment and other, net | 28,200 | 106 | 27,569 | 105,561 | |||||||||||
| Income (loss) from operations | (18,620 | ) | 10,041 | 33,542 | (85,608 | ) | |||||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (5,097 | ) | (6,291 | ) | (23,128 | ) | (24,194 | ) | |||||||
| Other, net | (8,929 | ) | 240 | (9,124 | ) | 588 | |||||||||
| Other expense, net | (14,026 | ) | (6,051 | ) | (32,252 | ) | (23,606 | ) | |||||||
| Income (loss) before income tax | (32,646 | ) | 3,990 | 1,290 | (109,214 | ) | |||||||||
| Income tax (benefit) expense | (7,333 | ) | (1,504 | ) | 126 | (11,802 | ) | ||||||||
| Net income (loss) | $ | (25,313 | ) | $ | 5,494 | $ | 1,164 | $ | (97,412 | ) | |||||
| Net income (loss) per share: | |||||||||||||||
| Basic | $ | (0.51 | ) | $ | 0.10 | $ | 0.02 | $ | (1.84 | ) | |||||
| Diluted | $ | (0.51 | ) | $ | 0.10 | $ | 0.02 | $ | (1.84 | ) | |||||
| Weighted average common shares outstanding (in thousands): | |||||||||||||||
| Basic | 49,400 | 52,840 | 50,684 | 52,945 | |||||||||||
| Diluted | 49,400 | 53,831 | 51,608 | 52,945 | |||||||||||
| Dividends declared per share | $ | 0.08 | $ | 0.08 | $ | 0.32 | $ | 0.32 | |||||||
WABASH
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - dollars in thousands)
| Year Ended December 31, | |||||||
| 2021 | 2020 | ||||||
| Cash flows from operating activities: | |||||||
| Net income (loss) | $ | 1,164 | $ | (97,412 | ) | ||
| Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | |||||||
| Depreciation | 25,984 | 25,989 | |||||
| Amortization of intangibles | 22,858 | 21,981 | |||||
| Net (gain) loss on sale of assets and business divestiture | (1,594 | ) | (1,567 | ) | |||
| Loss on debt extinguishment | 9,504 | 396 | |||||
| Deferred income taxes | (8,147 | ) | 5,016 | ||||
| Stock-based compensation | 7,059 | 4,509 | |||||
| Non-cash interest expense | 1,082 | 1,112 | |||||
| Impairment | 29,163 | 107,114 | |||||
| Accounts receivable | (80,879 | ) | 71,436 | ||||
| Inventories | (74,804 | ) | 21,099 | ||||
| Prepaid expenses and other | 8,570 | (2,875 | ) | ||||
| Accounts payable and accrued liabilities | 54,862 | (28,266 | ) | ||||
| Other, net | (2,292 | ) | (4,398 | ) | |||
| Net cash (used in) provided by operating activities | (7,470 | ) | 124,134 | ||||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (49,105 | ) | (20,131 | ) | |||
| Proceeds from sale of assets and business divestiture | 22,029 | 17,115 | |||||
| Net cash used in investing activities | (27,076 | ) | (3,016 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from exercise of stock options | 2,228 | 1,273 | |||||
| Borrowings under new senior notes | 400,000 | — | |||||
| Borrowings under term loan credit facility, net of original issuance discount | — | 148,500 | |||||
| Dividends paid | (16,435 | ) | (17,324 | ) | |||
| Borrowings under revolving credit facilities | 50,823 | 45,794 | |||||
| Payments under revolving credit facilities | (17,788 | ) | (45,794 | ) | |||
| Principal payments under finance lease obligations | (319 | ) | (327 | ) | |||
| Principal payments against old senior notes | (315,000 | ) | (10,000 | ) | |||
| Principal payments under term loan credit facility | (138,835 | ) | (146,393 | ) | |||
| Debt issuance costs paid | (9,296 | ) | (791 | ) | |||
| Stock repurchases | (66,731 | ) | (18,895 | ) | |||
| Net cash used in financing activities | (111,353 | ) | (43,957 | ) | |||
| Cash, cash equivalents, and restricted cash: | |||||||
| Net (decrease) increase in cash, cash equivalents, and restricted cash | (145,899 | ) | 77,161 | ||||
| Cash, cash equivalents, and restricted cash at beginning of period | 217,677 | 140,516 | |||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 71,778 | $ | 217,677 | |||
WABASH
SEGMENTS AND RELATED INFORMATION
(Unaudited - dollars in thousands)
| Wabash | |||||||||||||||
| Three Months Ended December 31, | 2021 | 2020 | |||||||||||||
| Units Shipped | |||||||||||||||
| New trailers | 11,655 | 10,585 | |||||||||||||
| New truck bodies | 3,230 | 3,300 | |||||||||||||
| Used trailers | 25 | 170 | |||||||||||||
| Three Months Ended December 31, | Transportation Solutions | Parts & Service | Corporate and Eliminations | Consolidated | |||||||||||
| 2021 | |||||||||||||||
| New Trailers and truck bodies | $ | 388,182 | $ | 179 | $ | (181 | ) | $ | 388,180 | ||||||
| Used Trailers | — | 659 | — | 659 | |||||||||||
| Components, parts and service | — | 30,182 | (1,831 | ) | 28,351 | ||||||||||
| Equipment and other | 54,964 | 7,123 | — | 62,087 | |||||||||||
| Total net external sales | $ | 443,146 | $ | 38,143 | $ | (2,012 | ) | $ | 479,277 | ||||||
| Gross profit | $ | 36,854 | $ | 7,958 | $ | (2,164 | ) | $ | 42,648 | ||||||
| (Loss) income from operations | $ | (7,623 | ) | $ | 1,692 | $ | (12,689 | ) | $ | (18,620 | ) | ||||
| Adjusted income (loss) from operations1 | $ | 17,996 | $ | 4,419 | $ | (12,689 | ) | $ | 9,726 | ||||||
| 2020 | |||||||||||||||
| New Trailers and truck bodies | $ | 306,481 | $ | 289 | $ | (155 | ) | $ | 306,615 | ||||||
| Used Trailers | 698 | 603 | — | 1,301 | |||||||||||
| Components, parts and service | — | 31,017 | (2,032 | ) | 28,985 | ||||||||||
| Equipment and other | 54,101 | 13,076 | — | 67,177 | |||||||||||
| Total net external sales | $ | 361,280 | $ | 44,985 | $ | (2,187 | ) | $ | 404,078 | ||||||
| Gross profit | $ | 36,119 | $ | 10,848 | $ | (1,471 | ) | $ | 45,496 | ||||||
| Income (loss) from operations | $ | 13,396 | $ | 8,808 | $ | (12,163 | ) | $ | 10,041 | ||||||
| Adjusted income (loss) from operations1 | $ | 15,515 | $ | 6,551 | $ | (12,163 | ) | $ | 9,903 | ||||||
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
SEGMENTS AND RELATED INFORMATION
(Unaudited - dollars in thousands)
| Wabash | ||||||||||||||||
| Twelve Months Ended December 31, | 2021 | 2020 | ||||||||||||||
| Units Shipped | ||||||||||||||||
| New trailers | 45,365 | 36,615 | ||||||||||||||
| New truck bodies | 16,560 | 13,430 | ||||||||||||||
| Used trailers | 95 | 600 | ||||||||||||||
| Twelve Months Ended December 31, | Transportation Solutions | Parts & Service | Corporate and Eliminations | Consolidated | ||||||||||||
| 2021 | ||||||||||||||||
| New Trailers and truck bodies | $ | 1,354,375 | $ | 179 | $ | (181 | ) | $ | 1,354,373 | |||||||
| Used Trailers | 165 | 2,349 | — | 2,514 | ||||||||||||
| Components, parts and service | — | 131,929 | (7,036 | ) | 124,893 | |||||||||||
| Equipment and other | 278,779 | 42,709 | — | 321,488 | ||||||||||||
| Total net external sales | $ | 1,633,319 | $ | 177,166 | $ | (7,217 | ) | $ | 1,803,268 | |||||||
| Gross profit | $ | 166,630 | $ | 36,870 | $ | (7,033 | ) | $ | 196,467 | |||||||
| Income (loss) from operations | $ | 61,869 | $ | 20,201 | $ | (48,528 | ) | $ | 33,542 | |||||||
| Adjusted income (loss) from operations1 | $ | 87,488 | $ | 21,054 | $ | (48,528 | ) | $ | 60,014 | |||||||
| 2020 | ||||||||||||||||
| New Trailers and truck bodies | $ | 1,087,978 | $ | 3,387 | $ | (3,545 | ) | $ | 1,087,820 | |||||||
| Used Trailers | 3,677 | 4,709 | — | 8,386 | ||||||||||||
| Components, parts and service | — | 123,517 | (9,469 | ) | 114,048 | |||||||||||
| Equipment and other | 223,774 | 47,861 | — | 271,635 | ||||||||||||
| Total net external sales | $ | 1,315,429 | $ | 179,474 | $ | (13,014 | ) | $ | 1,481,889 | |||||||
| Gross profit | $ | 123,314 | $ | 42,149 | $ | (5,709 | ) | $ | 159,754 | |||||||
| (Loss) income from operations | $ | (29,702 | ) | $ | (12,658 | ) | $ | (43,248 | ) | $ | (85,608 | ) | ||||
| Adjusted income (loss) from operations1 | $ | 40,674 | $ | 23,942 | $ | (42,092 | ) | $ | 22,524 | |||||||
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
SEGMENT and COMPANY FINANCIAL INFORMATION
(Unaudited - dollars in thousands)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Transportation Solutions | |||||||||||||||
| (Loss) income from operations | $ | (7,623 | ) | $ | 13,396 | $ | 61,869 | $ | (29,702 | ) | |||||
| Adjustments: | |||||||||||||||
| Trade names & trademarks impairment | 25,619 | — | 25,619 | — | |||||||||||
| Impairment | — | — | — | 68,257 | |||||||||||
| Loss on divestiture of Beall brand | — | 2,119 | — | 2,119 | |||||||||||
| Adjusted operating income | $ | 17,996 | $ | 15,515 | $ | 87,488 | $ | 40,674 | |||||||
| Parts & Service | |||||||||||||||
| Income (loss) from operations | 1,692 | 8,808 | 20,201 | (12,658 | ) | ||||||||||
| Adjustments: | |||||||||||||||
| Trade names & trademarks impairment | 2,727 | — | 2,727 | — | |||||||||||
| Gain on divestiture of Extract Technology | — | — | (1,874 | ) | — | ||||||||||
| Impairment | — | — | — | 38,857 | |||||||||||
| Gain on sale of Columbus branch | — | (2,257 | ) | — | (2,257 | ) | |||||||||
| Adjusted operating income | 4,419 | 6,551 | 21,054 | 23,942 | |||||||||||
| Corporate | |||||||||||||||
| Loss from operations | (12,689 | ) | (12,163 | ) | (48,528 | ) | (43,248 | ) | |||||||
| Adjustments: | |||||||||||||||
| Debt transactions | — | — | — | 1,156 | |||||||||||
| Adjusted operating loss | (12,689 | ) | (12,163 | ) | (48,528 | ) | (42,092 | ) | |||||||
| Consolidated | |||||||||||||||
| (Loss) income from operations | (18,620 | ) | 10,041 | 33,542 | (85,608 | ) | |||||||||
| Adjustments: | |||||||||||||||
| Trade names & trademarks impairment | 28,346 | — | 28,346 | — | |||||||||||
| Gain on divestiture of Extract Technology | — | — | (1,874 | ) | — | ||||||||||
| Impairment | — | — | — | 107,114 | |||||||||||
| Loss on divestiture of Beall brand | — | 2,119 | — | 2,119 | |||||||||||
| Gain on sale of Columbus branch | — | (2,257 | ) | — | (2,257 | ) | |||||||||
| Debt transactions | — | — | — | 1,156 | |||||||||||
| Adjusted operating income | $ | 9,726 | $ | 9,903 | $ | 60,014 | $ | 22,524 | |||||||
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
RECONCILIATION OF GAAP FINANCIAL MEASURES TO
NON-GAAP FINANCIAL MEASURES
(Unaudited - dollars in thousands, except per share amounts)
| Operating EBITDA1: | Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net income (loss) | $ | (25,313 | ) | $ | 5,494 | $ | 1,164 | $ | (97,412 | ) | |||||
| Income tax (benefit) expense | (7,333 | ) | (1,504 | ) | 126 | (11,802 | ) | ||||||||
| Interest expense | 5,097 | 6,291 | 23,128 | 24,194 | |||||||||||
| Depreciation and amortization | 12,021 | 12,830 | 48,842 | 47,970 | |||||||||||
| Stock-based compensation | 1,170 | 2,231 | 7,059 | 4,509 | |||||||||||
| Debt transactions1 | 9,052 | — | 9,504 | 1,552 | |||||||||||
| Impairment and other, net | 28,200 | 106 | 27,569 | 105,561 | |||||||||||
| Other, net | (123 | ) | (240 | ) | (380 | ) | (984 | ) | |||||||
| Operating EBITDA | $ | 22,771 | $ | 25,208 | $ | 117,012 | $ | 73,588 | |||||||
| Adjusted Net Income2: | Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net income (loss) | $ | (25,313 | ) | $ | 5,494 | $ | 1,164 | $ | (97,412 | ) | |||||
| Adjustments: | |||||||||||||||
| Trade names & trademarks impairment | 28,346 | — | 28,346 | — | |||||||||||
| Gain on divestiture of Extract Technology | — | — | (1,874 | ) | — | ||||||||||
| Debt transactions3 | 9,052 | 177 | 9,504 | 1,552 | |||||||||||
| Impairment | — | — | — | 107,114 | |||||||||||
| Loss on divestiture of Beall brand | — | 2,119 | — | 2,119 | |||||||||||
| Gain on sale of Columbus branch | — | (2,257 | ) | — | (2,257 | ) | |||||||||
| Tax effect of aforementioned items | (8,415 | ) | (15 | ) | (8,087 | ) | (3,365 | ) | |||||||
| Adjusted net income | $ | 3,670 | $ | 5,518 | $ | 29,053 | $ | 7,751 | |||||||
| Adjusted Diluted Earnings Per Share2: | Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Diluted earnings per share | $ | (0.51 | ) | $ | 0.10 | $ | 0.02 | $ | (1.84 | ) | |||||
| Adjustments: | |||||||||||||||
| Trade names & trademarks impairment | 0.57 | — | 0.56 | — | |||||||||||
| Gain on divestiture of Extract Technology | — | — | (0.04 | ) | — | ||||||||||
| Debt transactions3 | 0.18 | — | 0.18 | 0.03 | |||||||||||
| Impairment | — | — | — | 2.01 | |||||||||||
| Loss on divestiture of Beall brand | — | 0.04 | — | 0.04 | |||||||||||
| Gain on sale of Columbus branch | — | (0.04 | ) | — | (0.04 | ) | |||||||||
| Tax effect of aforementioned items | (0.17 | ) | — | (0.16 | ) | (0.05 | ) | ||||||||
| Adjusted diluted earnings per share | $ | 0.07 | $ | 0.10 | $ | 0.56 | $ | 0.15 | |||||||
| Weighted Average # of Diluted Shares O/S | 50,436 | 53,831 | 51,608 | 53,446 | |||||||||||
1Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, debt transactions (including losses on debt extinguishment and debt issuance costs expensed), impairment and other, net, and other non-operating income and expense.
2Adjusted net income and adjusted diluted earnings per share reflect adjustments for non-cash impairment, debt transactions, and the impact of sales and divestitures, and the related tax effects of these adjustments.
3Debt transactions include losses on debt extinguishment and debt issuance costs expensed.
WABASH
RECONCILIATION OF FREE CASH FLOW
(Unaudited - dollars in thousands)
| Twelve Months Ended December 31, | |||||||
| 2020 | 2019 | ||||||
| Net cash (used in) provided by operating activities | $ | (7,470 | ) | $ | 124,134 | ||
| Capital expenditures | (49,105 | ) | (20,131 | ) | |||
| Free cash flow1 | $ | (56,575 | ) | $ | 104,003 | ||
1 Free cash flow is defined as net cash (used in) provided by operating activities minus capital expenditures.
WABASH
RECONCILIATION OF ADJUSTED SEGMENT EBITDA1
AND ADJUSTED SEGMENT EBITDA MARGIN1
(Unaudited - dollars in thousands)
| Transportation Solutions | Parts & Service | ||||||||||||||
| Three Months Ended December 31 | 2021 | 2020 | 2021 | 2020 | |||||||||||
| (Loss) income from operations | $ | (7,623 | ) | $ | 13,396 | $ | 1,692 | $ | 8,808 | ||||||
| Depreciation and amortization | 10,364 | 10,799 | 1,107 | 1,488 | |||||||||||
| Impairment and other, net | 25,619 | 2,369 | 2,585 | (2,263 | ) | ||||||||||
| Adjusted segment EBITDA | $ | 28,360 | $ | 26,564 | $ | 5,384 | $ | 8,033 | |||||||
| Adjusted segment EBITDA margin | 6.4 | % | 7.4 | % | 14.1 | % | 17.9 | % | |||||||
| Transportation Solutions | Parts & Service | ||||||||||||||
| Twelve Months Ended December 31 | 2021 | 2020 | 2021 | 2020 | |||||||||||
| Income (loss) from operations | $ | 61,869 | $ | (29,702 | ) | $ | 20,201 | $ | (12,658 | ) | |||||
| Depreciation and amortization | 41,819 | 40,236 | 4,781 | 5,512 | |||||||||||
| Impairment and other, net | 26,554 | 68,600 | 1,025 | 36,966 | |||||||||||
| Adjusted segment EBITDA | $ | 130,242 | $ | 79,134 | $ | 26,007 | $ | 29,820 | |||||||
| Adjusted segment EBITDA Margin | 8.0 | % | 6.0 | % | 14.7 | % | 16.6 | % | |||||||
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@onewabash.com
Investor Relations:
Ryan Reed
Director, Corporate Development & Investor Relations
(765) 490-5664
ryan.reed@onewabash.com
