GlobeNewswire Inc | Nov 5, 2020 06:57AM EST

November 05, 2020

-- Third quarter revenue of $352M on stable shipment volumes -- Completion of $20M run-rate savings from reorganization actions deliver 13% decremental margins -- Net Income turns positive with $0.07 GAAP EPS or $0.09 adjusted non-GAAP EPS -- Substantial improvement in trough financial performance speaks to more resilient business model -- Third quarter backlog increased to $1 billion showing improved end-market sentiment for 2021

LAFAYETTE, Ind., Nov. 05, 2020 (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 September30, 2020.

Net sales for the third quarter 2020 were steady compared with prior quarters at $351.6 million as the Company continued to produce equipment to satisfy customer demand volumes. Consolidated gross margin of 12.3% was the strongest rate since Q4 of 2019 as the company continued to achieve greater efficiency operating within the constraints of COVID-19 protocols. Operating income of $8.4 million, or 2.4% of sales, on a GAAP basis, includes the positive impact of cost savings stemming from strategic organizational realignment actions completed during the quarter. The Company's previously announced target of $20M in run rate savings from these realignment actions has been completed ahead of schedule and helped to limit decremental margins to 13% during the third quarter. Earnings per share was $0.07 on a GAAP basis or $0.09 on an adjusted non-GAAP basis for the third quarter.

Total Company backlog as of September 30, 2020 was approximately $1.0 billion as new order activity markedly accelerated during the September time frame. Backlog rose 37% compared June 2020 and was 29% above September 2019.

We are pleased to deliver a profitable quarter that builds upon our purposeful financial management during the first half of 2020. We successfully executed strategic cost reductions that have not only preserved our organization's strength, but have enhanced our company's culture by eliminating silos and allowed us to provide a more seamless experience for customers who purchase across our unmatched portfolio of first to final mile solutions, said Brent Yeagy, president and chief executive officer.

Operating cash flow was $107.1 million and free cash flow was $93.4 million year to date at the close of the third quarter 2020, which compares to significant cash burn during each of the two prior economic recessions. Liquidity as of the end of the third quarter was $383 million with $216 million of cash and a fully untapped revolving credit line of $167 million. Following the successful refinancing of the Company's term loan, the Company's nearest material debt maturity is now October 2025.

"Our increased backlog reflects strong underpinnings within the freight markets as rebounding freight activity has contributed to significant gains in spot and contract rates. While we're looking forward to a demand environment that looks poised to improve into 2021, we also remain focused on executing in the final quarter of 2020 completing a year that we expect will demonstrate the benefits of our Company's diversification efforts over the last decade as well as actions over the past two years to significantly strengthen the management system of the Company." continued Yeagy. "Our broadened and synergistic portfolio has resulted in considerable improvement in trough performance across an array of key financial metrics like operating income, EBITDA, and free cash flow."

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 third quarter of 2020 and 2019. A complete disclosure of the results by individual segment is included in the tables following this release.

Commercial Trailer Diversified Products Final Mile Products ProductsThreeMonthsEnded 2020 2019 2020 2019 2020 2019 September30, (dollars in thousands)Newtrailers 7,975 13,700 475 750 ? ? shippedNet sales $ 226,516 $ 380,344 $ 72,020 $ 93,181 $ 55,348 $ 113,504 Gross $ 25,934 $ 43,960 $ 13,853 $ 18,042 $ 4,854 $ 16,763 profitGrossprofit 11.4% 11.6% 19.2% 19.4% 8.8% 14.8% marginIncome(loss) $ 19,659 $ 36,503 $ 4,188 $ 7,183 $ (4,442) $ 4,628 fromoperationsIncome(loss)from 8.7% 9.6% 5.8% 7.7% (8.0%) 4.1% operationsmargin

Commercial Trailer Products net sales for the third quarter were $226.5 million, a decrease of 40.4% as compared to the prior year quarter as a result of a reduction in market demand. Operating income was $19.7 million or 8.7% of sales during the quarter.

Diversified Products net sales for the third quarter were $72.0 million, a decrease of 22.7% as compared to the prior year as a result of lower market demand. Operating income was $4.2 million or 5.8% of sales during the quarter.

Final Mile Products net sales for the third quarter totaled $55.3 million, a decrease of 51.2%, as compared to the prior year, due to softer market demand. Operating loss was $4.4 million during the quarter as a result of weaker volume leverage over fixed costs.

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, 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 issuance costs expensed within General & administrative expenses related to the closing of the New Term Loan Credit Agreement, impairment and other, net, and other non-operating income and expense (which includes loss on debt extinguishment charges). Management believes providing operating EBITDA is useful for investors to understand the Companys 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 investors understanding of the Companys 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 provided by operating activities minus capital expenditures. Management believes providing free cash flow is useful for investors to understand the Companys 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 investors understanding of the Companys operating performance. A reconciliation of free cash flow to cash 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 Companys operating results as they are not indicative of the Companys core operating results or may obscure trends useful in evaluating the Companys 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 Companys 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 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 Companys 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 investors understanding of the Companys 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 Companys 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.

Third Quarter 2020 Conference Call

Wabash National will discuss its results during its quarterly investor conference call on Thursday, November5, 2020, beginning at 10:00 a.m. EDT.The call and an accompanying slide presentation will be accessible on the "Investors" section of the Companys website www.wabashnational.com. The conference call will also be accessible by dialing (844) 778-4139, conference ID 5580198. 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 companys 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, bulk tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade and pharmaceutical equipment. Its innovative products are sold under the following brand names: Wabash National, Beall, Benson, Brenner Tank, Bulk Tank International, DuraPlate, Extract Technology, 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 Companys 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 Companys 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 Companys 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 Companys 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 Companys 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 Companys reports to its stockholders and periodic reports on Forms 10-K and 10-Q.

Media Contact:Dana StelselDirector, Corporate Communications(765) 771-5766dana.stelsel@wabashnational.com

Investor Relations:Ryan ReedDirector, Investor Relations(765) 490-5664ryan.reed@wabashnational.com

WABASH NATIONAL CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited - dollars in thousands)

September 30, December 31, 2020 2019Assets Current assets: Cash and cash equivalents $ 215,822 $ 140,516 Accounts receivable, net 104,642 172,737 Inventories, net 201,510 186,914 Prepaid expenses and other 44,534 41,222 Total current assets 566,508 541,389 Property, plant, and equipment, net 214,900 221,346 Goodwill 204,351 311,026 Intangible assets, net 173,384 189,898 Other assets 36,939 40,932 Total assets $ 1,196,082 $ 1,304,591 Liabilities and Stockholders? Equity Current liabilities: Current portion of long-term debt $ 1,500 $ ? Current portion of finance lease obligations 342 327 Accounts payable 145,393 134,821 Other accrued liabilities 132,556 124,230 Total current liabilities 279,791 259,378 Long-term debt 457,222 455,386 Finance lease obligations 119 378 Deferred income taxes 36,080 37,576 Other non-current liabilities 25,505 30,885 Total liabilities 798,717 783,603 Commitments and contingencies Stockholders? equity: Common stock 200,000,000 shares authorized,$0.01 par value, 52,912,988 and 53,473,620 753 750 shares outstanding, respectivelyAdditional paid-in capital 641,236 638,917 Retained earnings 106,118 221,841 Accumulated other comprehensive losses (4,135 ) (3,978 ) Treasury stock at cost, 22,500,750 and (346,607 ) (336,542 ) 21,640,109 common shares, respectivelyTotal stockholders' equity 397,365 520,988 Total liabilities and stockholders? equity $ 1,196,082 $ 1,304,591

WABASH NATIONAL CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited - dollars in thousands, except per share amounts)

Three Months Ended September Nine Months Ended September 30, 30, 2020 2019 2020 2019Net sales $ 351,584 $ 580,908 $ 1,077,811 $ 1,740,135 Cost of sales 308,390 503,173 963,553 1,506,060 Gross profit 43,194 77,735 114,258 234,075 General andadministrative 22,749 25,353 68,574 82,002 expensesSelling 6,510 8,998 19,394 25,715 expensesAmortizationof intangible 5,496 5,115 16,484 15,353 assetsImpairment and 31 ? 105,455 ? other, netIncome (loss)from 8,408 38,269 (95,649 ) 111,005 operationsOther income (expense):Interest (5,749 ) (6,713 ) (17,903 ) (20,823 ) expenseOther, net (57 ) 1,333 348 2,245 Other expense, (5,806 ) (5,380 ) (17,555 ) (18,578 ) netIncome (loss)before income 2,602 32,889 (113,204 ) 92,427 tax (benefit)expenseIncome tax(benefit) (1,285 ) 7,429 (10,298 ) 21,227 expenseNet income $ 3,887 $ 25,460 $ (102,906 ) $ 71,200 (loss) Net income(loss) per share:Basic $ 0.07 $ 0.47 $ (1.94 ) $ 1.30 Diluted $ 0.07 $ 0.46 $ (1.94 ) $ 1.28 Weightedaverage commonshares outstanding(inthousands):Basic 52,912 54,413 52,980 54,975 Diluted 53,380 55,019 52,980 55,502 Dividendsdeclared per $ 0.08 $ 0.08 $ 0.24 $ 0.24 share

WABASH NATIONAL CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited - dollars in thousands)

Nine Months Ended September 30, 2020 2019Cash flows from operating activities Net (loss) income $ (102,906 ) $ 71,200 Adjustments to reconcile net (loss) income to net cash provided by operating activitiesDepreciation 18,656 16,258 Amortization of intangibles 16,484 15,353 Net (gain) loss on sale of property, plant and (1,669 ) (40 ) equipmentLoss on debt extinguishment 219 104 Deferred income taxes (753 ) (2,451 ) Stock-based compensation 2,278 7,362 Impairment 107,114 ? Non-cash interest expense 807 783 Accounts receivable 68,095 9,671 Inventories (14,596 ) (89,869 ) Prepaid expenses and other (3,086 ) (2,368 ) Accounts payable and accrued liabilities 20,128 57,750 Other, net (3,672 ) (7,535 ) Net cash provided by operating activities $ 107,099 $ 76,218 Cash flows from investing activities Capital expenditures (13,719 ) (22,244 ) Proceeds from the sale of property, plant, and 2,726 785 equipmentNet cash used in investing activities $ (10,993 ) $ (21,459 ) Cash flows from financing activities Proceeds from exercise of stock options 44 361 Dividends paid (13,015 ) (13,443 ) Borrowings under revolving credit facilities 45,584 446 Payments under revolving credit facilities (45,584 ) (446 ) Principal payments under finance lease (244 ) (230 ) obligationsBorrowings under term loan credit facility, net 148,500 ? of original issuance discountPrincipal payments under term loan credit (135,228 ) (30,470 ) facilityPrincipal payments against senior notes (10,000 ) ? Debt issuance costs paid (792 ) (142 ) Stock repurchases (10,065 ) (22,652 ) Net cash used in financing activities $ (20,800 ) $ (66,576 ) Cash and cash equivalents: Net increase (decrease) in cash, cash $ 75,306 $ (11,817 ) equivalents, and restricted cashCash, cash equivalents and restricted cash at 140,516 132,690 beginning of periodCash, cash equivalents, and restricted cash at $ 215,822 $ 120,873 end of period

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

ThreeMonths Commercial Diversified Final Mile Corporate andEnded Trailer Products Products Eliminations ConsolidatedSeptember Products30,2020 Newtrailers 7,975 475 ? ? 8,450 shippedUsedtrailers 100 40 ? ? 140 shipped New $ 215,609 $ 37,455 $ ? $ ? $ 253,064 TrailersUsed 522 1,439 ? ? 1,961 TrailersComponents,parts and 9,371 16,607 3,103 (2,300 ) 26,781 serviceEquipment 1,014 16,519 52,245 ? 69,778 and otherTotal netexternal $ 226,516 $ 72,020 $ 55,348 $ (2,300 ) $ 351,584 salesGross $ 25,934 $ 13,853 $ 4,854 $ (1,447 ) $ 43,194 profitIncome(loss) from $ 19,659 $ 4,188 $ (4,442 ) $ (10,997 ) $ 8,408 operations 2019 Newtrailers 13,700 750 ? ? 14,450 shippedUsedtrailers 25 10 ? ? 35 shipped New $ 366,938 $ 51,697 $ ? $ ? $ 418,635 TrailersUsed 86 417 ? ? 503 TrailersComponents,parts and 10,039 23,790 4,302 (5,960 ) 32,171 serviceEquipment 3,281 17,277 109,202 (161 ) 129,599 and otherTotal netexternal $ 380,344 $ 93,181 $ 113,504 $ (6,121 ) $ 580,908 salesGross $ 43,960 $ 18,042 $ 16,763 $ (1,030 ) $ 77,735 profitIncome(loss) from $ 36,503 $ 7,183 $ 4,628 $ (10,045 ) $ 38,269 operations

Nine Months CommercialEnded Trailer Diversified Final Mile Corporate and ConsolidatedSeptember Products Products Products Eliminations30,2020 Newtrailers 24,500 1,525 ? ? 26,025 shippedUsedtrailers 320 110 ? ? 430 shipped New $ 672,263 $ 108,943 $ ? $ ? $ 781,206 TrailersUsed 3,113 3,972 ? ? 7,085 TrailersComponents,parts and 28,214 64,855 9,278 (17,284 ) 85,063 serviceEquipment 6,155 41,159 157,172 (29 ) 204,457 and otherTotal netexternal $ 709,745 $ 218,929 $ 166,450 $ (17,313 ) $ 1,077,811 salesGross $ 72,169 $ 39,755 $ 6,573 $ (4,239 ) $ 114,258 profitIncome(loss) from $ 54,129 $ 360 $ (119,052 ) $ (31,086 ) $ (95,649 )operations 2019 Newtrailers 40,350 2,200 ? ? 42,550 shippedUsedtrailers 50 60 ? ? 110 shipped New $ 1,078,599 $ 146,821 $ ? $ ? $ 1,225,420 TrailersUsed 236 1,743 ? ? 1,979 TrailersComponents,parts and 30,994 88,681 12,165 (20,455 ) 111,385 serviceEquipment 12,424 52,610 337,005 (688 ) 401,351 and otherTotal netexternal $ 1,122,253 $ 289,855 $ 349,170 $ (21,143 ) $ 1,740,135 salesGross $ 126,806 $ 58,264 $ 51,576 $ (2,571 ) $ 234,075 profitIncome(loss) from $ 102,742 $ 24,138 $ 15,718 $ (31,593 ) $ 111,005 operations

WABASH NATIONAL CORPORATIONSEGMENT AND COMPANY FINANCIAL INFORMATION(Unaudited - dollars in thousands)

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019Commercial Trailer ProductsIncome from operations $ 19,659 $ 36,503 $ 54,129 $ 102,742 Adjustments: Impairment ? ? 377 ? Adjusted operating income $ 19,659 $ 36,503 $ 54,506 $ 102,742 Diversified Products Income from operations 4,188 7,183 360 24,138 Adjustments: Impairment ? ? 10,971 ? Adjusted operating income 4,188 7,183 11,331 24,138 Final Mile Products (Loss) income from (4,442 ) 4,628 (119,052 ) 15,718 operationsAdjustments: Impairment ? ? 95,766 ? Adjusted operating (loss) (4,442 ) 4,628 (23,286 ) 15,718 income Corporate Loss from operations (10,997 ) (10,045 ) (31,086 ) (31,593 ) Adjustments: Debt transactions 1,156 ? 1,156 ? Adjusted operating loss (9,841 ) (10,045 ) (29,930 ) (31,593 ) Consolidated Income (loss) from 8,408 38,269 (95,649 ) 111,005 operationsAdjustments: Impairment ? ? 107,114 ? Debt transactions 1,156 ? 1,156 ? Adjusted operating income $ 9,564 $ 38,269 $ 12,621 $ 111,005

WABASH NATIONAL CORPORATIONRECONCILIATION OF GAAP FINANCIAL MEASURES TONON-GAAP FINANCIAL MEASURES(Unaudited - dollars in thousands, except per share amounts)

Operating EBITDA^1: Three Months Ended Nine Months Ended September September 30, 30, 2020 2019 2020 2019Net income (loss) $ 3,887 $ 25,460 $ (102,906 ) $ 71,200 Income tax (benefit) (1,285 ) 7,429 (10,298 ) 21,227 expenseInterest expense 5,749 6,713 17,903 20,823 Depreciation and 12,495 10,416 35,140 31,611 amortizationStock-based 1,862 1,985 2,278 7,362 compensationDebt issuance costs 1,156 ? 1,156 ? expensedImpairment and other, 31 ? 105,455 ? netOther, net 57 (1,333 ) (348 ) (2,245 )Operating EBITDA $ 23,952 $ 50,670 $ 48,380 $ 149,978

Adjusted Net Income^2: Three Months Ended Nine Months Ended September September 30, 30, 2020 2019 2020 2019Net income (loss) $ 3,887 $ 25,460 $ (102,906 ) $ 71,200 Adjustments: Debt transactions^3 1,375 ? 1,375 ? Impairment ? ? 107,114 ? Tax effect of (564 ) ? (3,350 ) ? aforementioned itemsAdjusted net income $ 4,698 $ 25,460 $ 2,233 $ 71,200

Adjusted Diluted Earnings Per Three Months Ended Nine Months EndedShare^2: September 30, September 30, 2020 2019 2020 2019Diluted earnings per share $ 0.07 $ 0.46 $ (1.94 ) $ 1.28 Adjustments: Debt transactions^3 0.03 ? 0.03 ? Impairment ? ? 2.02 ? Tax effect of aforementioned (0.01 ) ? (0.06 ) ? itemsAdjusted diluted earnings per $ 0.09 $ 0.46 $ 0.04 $ 1.28 share Weighted average diluted shares 53,380 55,019 52,980 55,502 outstanding (in thousands)

1Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, debt issuance costs expensed within General & administrative expenses related to the closing of the New Term Loan Credit Agreement, impairment and other, net, and other non-operating income and expense (which includes loss on debt extinguishment charges).

2Adjusted net income and adjusted diluted earnings per share reflect adjustments for non-cash impairment and debt transactions, and the related tax effects of these adjustments.

3Debt transactions include debt issuance costs within General & administrative expenses related to the closing of the New Term Loan Credit Agreement and loss on debt extinguishment charges included in Other, net.

WABASH NATIONAL CORPORATIONRECONCILIATION OF FREE CASH FLOW1(Unaudited - dollars in thousands)

Nine Months Ended September 30, 2020 2019Net cash provided by operating activities $ 107,099 $ 76,218 Capital expenditures (13,719 ) (22,244 ) Free cash flow^1 $ 93,380 $ 53,974

1 Free cash flow is defined as net cash provided by operating activities minus capital expenditures.

WABASH NATIONAL CORPORATIONRECONCILIATION OF ADJUSTED SEGMENT EBITDA1AND ADJUSTED SEGMENT EBITDA MARGIN1(Unaudited - dollars in thousands)

Commercial Trailer Diversified Products Final Mile Products ProductsThree MonthsEndedSeptember 2020 2019 2020 2019 2020 201930,2020Income(loss) from $ 19,659 $ 36,503 $ 4,188 $ 7,183 $ (4,442 ) $ 4,628 operationsDepreciationand 2,858 2,701 4,828 4,462 3,850 2,861 amortizationImpairmentand other, (168 ) ? 18 ? 182 ? netAdjustedsegment $ 22,349 $ 39,204 $ 9,034 $ 11,645 $ (410 ) $ 7,489 EBITDA Adjustedsegment 9.9 % 10.3 % 12.5 % 12.5 % (0.7 ) % 6.6 %EBITDAmargin

Commercial Trailer Diversified Products Final Mile Products ProductsNine MonthsEnded 2020 2019 2020 2019 2020 2019September30, 2020Income(loss) from $ 54,129 $ 102,742 $ 360 $ 24,138 $ (119,052 ) $ 15,718 operationsDepreciationand 8,536 7,917 13,942 14,095 10,982 8,474 amortizationImpairmentand other, (1,558 ) ? 10,989 ? 96,028 ? netAdjustedsegment $ 61,107 $ 110,659 $ 25,291 $ 38,233 $ (12,042 ) $ 24,192 EBITDA Adjustedsegment 8.6 % 9.9 % 11.6 % 13.2 % (7.2 ) % 6.9 %EBITDAmargin

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 Companys 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.