GlobeNewswire Inc | Feb 3, 2021 06:55AM EST

February 03, 2021

-- Strengthening demand drives fourth quarter revenue of $404.1 million -- Fourth quarter operating income of $10.0 million, decremental margin of 12 percent -- Fourth quarter earnings per diluted share of $0.10 -- Backlog shows $500M sequential increase to $1.5 billion -- 2021 EPS outlook initiated at $0.75 per diluted share; range of $0.70 to $0.80

LAFAYETTE, Ind., Feb. 03, 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 and full year ended December31, 2020.

Net sales for the fourth quarter 2020 were $404.1 million while operating income was $10.0 million or 2.5% of net sales. For the full year 2020, total revenue totaled $1.5 billion while generating an operating loss of $(85.6) million or operating income of $22.5 million on a non-GAAP adjusted basis.

Net income for the fourth quarter 2020 was $5.5 million, or $0.10 per diluted share. For the full year of 2020, net loss was $(97.4) million or earnings per diluted share of $(1.84). On a non-GAAP adjusted basis, full year 2020 net income was $7.8 million or earnings per diluted share of $0.15. Operating EBITDA, a non-GAAP measure that excludes the effects of certain items, for the fourth quarter 2020 was $25.2 million, or 6.2% of net sales, and full year operating EBITDA was $73.6 million, or 5.0% of net sales.

Total Company backlog as of December 31, 2020 was approximately $1.5 billion as new order activity remained strong during the fourth quarter. Backlog rose 43% compared to September 2020 and was 32% above December 2019.

While we're all looking forward to 2021 with optimism, I want to make sure we take time to highlight Wabash National's resilient financial performance during challenging market conditions in 2020, explainedBrent Yeagy, president and chief executive officer. Full year decremental margin of 14%, free cash flow generation of $104 million and maintaining our dividend through the cycle all show meaningful improvement in the company's financial performance.

Outlook

For the full year endingDecember 31, 2021, the company has issued guidance of $1.9 billion to $2.0 billion in sales and an earnings per diluted share midpoint of $0.75 with a range of$0.70 to $0.80.

Mr. Yeagy continued, Conditions strengthened throughout 2020 in many of our customers' end markets and equipment demand is poised to improve in 2021. While we are focused in the near-term on executing on this cyclical upturn, we also continue to work on strategic initiatives to profitably grow the company in the long-term. Bringing new technologies to market combined with our focus on building out adjacent revenue streams will provide us with opportunities for growth beyond what the cycle gives us.

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 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 2019December31, (Unaudited, dollars in thousands)Newtrailers 10,085 14,300 525 650 ? ? shippedNet sales $ 283,031 $ 399,288 $ 75,205 $ 94,661 $ 51,948 $ 92,740 Gross $ 29,387 $ 50,384 $ 13,178 $ 16,324 $ 4,400 $ 6,239 profitGrossprofit 10.4 % 12.6 % 17.5 % 17.2 % 8.5 % 6.7 %marginIncome(loss) $ 25,533 $ 43,135 $ 1,203 $ 5,610 $ (4,533 ) $ (5,914 )fromoperationsIncome(loss) ) )from 9.0 % 10.8 % 1.6 % 5.9 % (8.7 % (6.4 %operationsmarginAdjustedincome(loss) $ 23,276 $ 43,135 $ 3,322 $ 5,610 $ (4,533 ) $ (5,914 )fromoperationsAdjustedincome(loss) 8.2 % 10.8 % 4.4 % 5.9 % (8.7 ) (6.4 )from % %operationsmargin

Commercial Trailer Products net sales for the fourth quarter were $283.0 million, a decrease of 29.1% compared to the prior year quarter, as a result of demand coming off peak levels but rebounding throughout the year. Operating income was $25.5 million, or 9.0% of sales during the quarter. Adjusting for a gain on the sale of a former branch location, CTP's fourth quarter non-GAAP operating income was $23.3 million, or 8.2% of sales during the quarter.

Diversified Products net sales for the fourth quarter were $75.2 million, a decrease of 20.6% compared to the prior year quarter, as a result of reduced market demand. Operating income was $1.2 million, or 1.6% of sales during the quarter. Adjusting for a loss on the sale of a business, DPG's fourth quarter non-GAAP operating income was $3.3 million, or 4.4% of sales during the quarter.

Final Mile Products net sales for the fourth quarter totaled $51.9 million, a decrease of 44.0% due to building to scheduled production during the quarter, while ramping to accommodate improved 2021 demand. Operating loss during the fourth quarter was $4.5 million 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, 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 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 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 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.

Fourth Quarter 2020 Conference Call

Wabash National will discuss its results during its quarterly investor conference call on Wednesday, February 3, beginning at 10:00 a.m. EST.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 (833) 476-0947, conference ID 1619249. 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, liquid 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, 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 order 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.

WABASH NATIONAL CORPORATIONCONSOLIDATED BALANCE SHEETS(Unaudited - dollars in thousands)

December 31, December 31, 2020 2019Assets Current assets: Cash and cash equivalents $ 217,677 $ 140,516 Accounts receivable, net 101,301 172,737 Inventories 163,750 186,914 Prepaid expenses and other 63,036 41,222 Total current assets 545,764 541,389 Property, plant, and equipment, net 209,676 221,346 Goodwill 199,560 311,026 Intangible assets 166,887 189,898 Other assets 39,583 40,932 Total assets $ 1,161,470 $ 1,304,591 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ ? $ ? Current portion of finance lease obligations 348 327 Accounts payable 104,425 134,821 Other accrued liabilities 130,980 124,230 Total current liabilities 235,753 259,378 Long-term debt 447,979 455,386 Finance lease obligations 30 378 Deferred income taxes 46,777 37,576 Other non-current liabilities 26,052 30,885 Total liabilities 756,591 783,603 Commitments and contingencies Stockholders' equity: Common stock, $0.01 par value: 200,000,000shares authorized; 52,536,482 and 53,473,620 755 750 shares outstanding, respectivelyAdditional paid-in capital 644,695 638,917 Retained earnings 107,233 221,841 Accumulated other comprehensive (income) loss 7,633 (3,978 )Treasury stock, at cost: 23,004,607 and (355,437 ) (336,542 )21,640,109 common shares, respectivelyTotal stockholders' equity 404,879 520,988 Total liabilities and stockholders' equity $ 1,161,470 $ 1,304,591

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

Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019Net sales $ 404,078 $ 579,001 $ 1,481,889 $ 2,319,136 Cost of sales 358,582 506,694 1,322,135 2,012,754 Gross profit 45,496 72,307 159,754 306,382 General andadministrative 24,166 26,272 92,740 108,274 expensesSelling expenses 5,686 9,136 25,080 34,851 Amortization of 5,497 5,118 21,981 20,471 intangible assetsImpairment and 106 ? 105,561 ? other, netIncome (loss) from 10,041 31,781 (85,608 ) 142,786 operationsOther income (expense):Interest expense (6,291 ) (6,517 ) (24,194 ) (27,340 )Other, net 240 40 588 2,285 Other expense, net (6,051 ) (6,477 ) (23,606 ) (25,055 )Income (loss) 3,990 25,304 (109,214 ) 117,731 before income taxIncome tax (1,504 ) 6,929 (11,802 ) 28,156 (benefit) expenseNet income (loss) $ 5,494 $ 18,375 $ (97,412 ) $ 89,575 Net income (loss) per share:Basic $ 0.10 $ 0.34 $ (1.84 ) $ 1.64 Diluted $ 0.10 $ 0.34 $ (1.84 ) $ 1.62 Weighted averagecommon shares outstanding (inthousands):Basic 52,840 53,917 52,945 54,695 Diluted 53,831 54,613 52,945 55,290 Dividends declared $ 0.08 $ 0.08 $ 0.32 $ 0.32 per share

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

Year Ended December 31, 2020 2019Cash flows from operating activities: Net (loss) income $ (97,412 ) $ 89,575 Adjustments to reconcile net (loss) income to net cash provided by operating activities:Depreciation 25,989 21,886 Amortization of intangibles 21,981 20,471 Net (gain) loss on sale of assets and business (1,567 ) (109 )divestitureLoss on debt extinguishment 396 165 Deferred income taxes 5,016 3,420 Stock-based compensation 4,509 9,036 Non-cash interest expense 1,112 1,045 Impairment 107,114 ? Accounts receivable 71,436 8,327 Inventories 21,099 (2,510 )Prepaid expenses and other (2,875 ) (3,809 )Accounts payable and accrued liabilities (28,266 ) (817 )Other, net (4,398 ) (396 )Net cash provided by operating activities 124,134 146,284 Cash flows from investing activities: Capital expenditures (20,131 ) (37,645 )Proceeds from sale of assets and business 17,115 785 divestitureNet cash used in investing activities (3,016 ) (36,860 )Cash flows from financing activities: Proceeds from exercise of stock options 1,273 848 Borrowings under term loan credit facility, net of 148,500 ? original issuance discountDividends paid (17,324 ) (17,797 )Borrowings under revolving credit facilities 45,794 619 Payments under revolving credit facilities (45,794 ) (619 )Principal payments under finance lease obligations (327 ) (308 )Principal payments against senior notes (10,000 ) ? Principal payments under term loan credit facility (146,393 ) (50,470 )Debt issuance costs paid (791 ) (164 )Stock repurchases (18,895 ) (33,707 )Net cash used in financing activities (43,957 ) (101,598 )Cash, cash equivalents, and restricted cash: Net increase (decrease) in cash, cash equivalents, 77,161 7,826 and restricted cashCash, cash equivalents, and restricted cash at 140,516 132,690 beginning of periodCash, cash equivalents, and restricted cash at end $ 217,677 $ 140,516 of period

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

ThreeMonths Commercial Diversified Final Mile Corporate andEnded Trailer Products Products Eliminations ConsolidatedDecember Products31,2020 Newtrailers 10,085 525 ? ? 10,610 shippedUsedtrailers 155 15 ? ? 170 shipped New $ 269,669 $ 36,945 $ ? $ ? $ 306,614 TrailersUsed 728 573 ? ? 1,301 TrailersComponents,parts and 8,698 23,155 3,239 (6,107 ) 28,985 serviceEquipment 3,936 14,532 48,709 1 67,178 and otherTotal netexternal $ 283,031 $ 75,205 $ 51,948 $ (6,106 ) $ 404,078 salesGross $ 29,387 $ 13,178 $ 4,400 $ (1,469 ) $ 45,496 profitIncome(loss) from $ 25,533 $ 1,203 $ (4,533 ) $ (12,162 ) $ 10,041 operations 2019 Newtrailers 14,300 650 ? ? 14,950 shippedUsedtrailers 25 15 ? ? 40 shipped New $ 386,037 $ 51,222 $ ? $ ? $ 437,259 TrailersUsed 199 301 ? ? 500 TrailersComponents,parts and 9,350 24,343 2,858 (7,447 ) 29,104 serviceEquipment 3,702 18,795 89,882 (241 ) 112,138 and otherTotal netexternal $ 399,288 $ 94,661 $ 92,740 $ (7,688 ) $ 579,001 salesGross $ 50,384 $ 16,324 $ 6,239 $ (640 ) $ 72,307 profitIncome(loss) from $ 43,135 $ 5,610 $ (5,914 ) $ (11,050 ) $ 31,781 operations

TwelveMonths Commercial Diversified Final Mile Corporate andEnded Trailer Products Products Eliminations ConsolidatedDecember Products31,2020 Newtrailers 34,585 2,050 ? ? 36,635 shippedUsedtrailers 475 125 ? ? 600 shipped New $ 941,932 $ 145,888 $ ? $ ? $ 1,087,820 TrailersUsed 3,841 4,545 ? ? 8,386 TrailersComponents,parts and 36,912 88,010 12,517 (23,391 ) 114,048 serviceEquipment 10,091 55,691 205,881 (28 ) 271,635 and otherTotal netexternal $ 992,776 $ 294,134 $ 218,398 $ (23,419 ) $ 1,481,889 salesGross $ 101,556 $ 52,933 $ 10,973 $ (5,708 ) $ 159,754 profitIncome(loss) from $ 79,662 $ 1,563 $ (123,585 ) $ (43,248 ) $ (85,608 )operations 2019 Newtrailers 54,650 2,850 ? ? 57,500 shippedUsedtrailers 75 75 ? ? 150 shipped New $ 1,464,636 $ 198,043 $ ? $ ? $ 1,662,679 TrailersUsed 435 2,044 ? ? 2,479 TrailersComponents,parts and 40,344 113,024 15,023 (27,902 ) 140,489 serviceEquipment 16,126 71,405 426,887 (929 ) 513,489 and otherTotal netexternal $ 1,521,541 $ 384,516 $ 441,910 $ (28,831 ) $ 2,319,136 salesGross $ 177,190 $ 74,588 $ 57,815 $ (3,211 ) $ 306,382 profitIncome(loss) from $ 145,877 $ 29,748 $ 9,804 $ (42,643 ) $ 142,786 operations

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

Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019Commercial Trailer Products Income from operations $ 25,533 $ 43,135 $ 79,662 $ 145,877 Impairment ? ? 377 ? Gain on sale of Columbus (2,257 ) ? (2,257 ) ? branchAdjusted operating income $ 23,276 $ 43,135 $ 77,782 $ 145,877 Diversified Products Income from operations 1,203 5,610 1,563 29,748 Adjustments: Impairment ? ? 10,971 ? Loss on divestiture of Beall 2,119 ? 2,119 ? brandAdjusted operating income 3,322 5,610 14,653 29,748 Final Mile Products (Loss) income from operations (4,533 ) (5,914 ) (123,585 ) 9,804 Adjustments: Impairment ? ? 95,766 ? Adjusted operating (loss) (4,533 ) (5,914 ) (27,819 ) 9,804 income Corporate Loss from operations (12,162 ) (11,050 ) (43,248 ) (42,643 )Adjustments: Debt transactions ? ? 1,156 ? Adjusted operating loss (12,162 ) (11,050 ) (42,092 ) (42,643 ) Consolidated Income (loss) from operations 10,041 31,781 (85,608 ) 142,786 Adjustments: Impairment ? ? 107,114 ? Gain on sale of Columbus (2,257 ) ? (2,257 ) ? branchLoss on divestiture of Beall 2,119 ? 2,119 ? brandDebt transactions ? ? 1,156 ? Adjusted operating income $ 9,903 $ 31,781 $ 22,524 $ 142,786

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 Twelve Months Ended December 31, December 31, 2020 2019 2020 2019Net income (loss) $ 5,494 $ 18,375 $ (97,412 ) $ 89,575 Income tax (benefit) (1,504 ) 6,929 (11,802 ) 28,156 expenseInterest expense 6,291 6,517 24,194 27,340 Depreciation and 12,830 10,746 47,970 42,357 amortizationStock-based 2,231 1,674 4,509 9,036 compensationDebt issuance costs ? ? 1,156 ? expensedImpairment and other, 106 ? 105,561 ? netOther, net (240 ) (40 ) (588 ) (2,285 )Operating EBITDA $ 25,208 $ 44,201 $ 73,588 $ 194,179

Adjusted Net Income^2: Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019Net income (loss) $ 5,494 $ 18,375 $ (97,412 ) $ 89,575 Adjustments: Debt transactions^3 177 ? 1,552 ? Impairment ? ? 107,114 ? Gain on sale of Columbus (2,257 ) ? (2,257 ) ? branchLoss on divestiture of 2,119 ? 2,119 ? Beall brandTax effect of (15 ) ? (3,365 ) ? aforementioned itemsAdjusted net income $ 5,518 $ 18,375 $ 7,751 $ 89,575

Adjusted Diluted Earnings Three Months Ended Twelve Months EndedPer Share^2: December 31, December 31, 2020 2019 2020 2019Diluted earnings per share $ 0.10 $ 0.34 $ (1.84 ) $ 1.62 Adjustments: Debt transactions^3 ? ? 0.03 ? Impairment ? ? 2.01 ? Gain on sale of Columbus (0.04 ) ? (0.04 ) ? branchLoss on divestiture of 0.04 ? 0.04 ? Beall brandTax effect of ? ? (0.05 ) ? aforementioned itemsAdjusted diluted earnings $ 0.10 $ 0.34 $ 0.15 $ 1.62 per share Weighted Average # of 53,831 54,613 53,446 55,290 Diluted Shares O/S

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).Adjusted 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.Debt 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 FLOW(Unaudited - dollars in thousands)

Twelve Months Ended December 31, 2020 2019Net cash provided by operating activities $ 124,134 $ 146,284 Capital expenditures (20,131 ) (37,645 )Free cash flow^1 $ 104,003 $ 108,639

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

WABASH NATIONAL CORPORATIONRECONCILIATION OF ADJUSTED SEGMENT EBITDAAND ADJUSTED SEGMENT EBITDA MARGIN(Unaudited - dollars in thousands)

Commercial Trailer Diversified Products Final Mile Products ProductsThree MonthsEnded 2020 2019 2020 2019 2020 2019December 31Income(loss) from $ 25,533 $ 43,135 $ 1,203 $ 5,610 $ (4,533 ) $ (5,914 )operationsDepreciationand 3,021 2,750 5,358 4,526 3,909 2,887 amortizationImpairmentand other, (2,102 ) ? 2,208 ? ? ? netAdjustedsegment $ 26,452 $ 45,885 $ 8,769 $ 10,136 $ (624 ) $ (3,027 )EBITDA Adjustedsegment 9.3 % 11.5 % 11.7 % 10.7 % (1.2 ) (3.3 )EBITDA % %margin

Commercial Trailer Diversified Products Final Mile Products ProductsTwelveMonths Ended 2020 2019 2020 2019 2020 2019December 31Income(loss) from $ 79,662 $ 145,877 $ 1,563 $ 29,748 $ (123,585 ) $ 9,804 operationsDepreciationand 11,557 10,667 19,300 18,621 14,891 11,361 amortizationImpairmentand other, (3,660 ) ? 13,197 ? 96,028 ? netAdjustedsegment $ 87,559 $ 156,544 $ 34,060 $ 48,369 $ (12,666 ) $ 21,165 EBITDA Adjustedsegment 8.8 % 10.3 % 11.6 % 12.6 % (5.8 ) 4.8 %EBITDA %Margin

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.

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

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