GlobeNewswire Inc | Apr 28, 2021 06:55AM EDT

April 28, 2021

-- Revenue of $392.0 million, which is within prior guidance range -- Operating income of $11.2 million and operating margin of 2.9% both show sequential improvement -- Net Income of $3.2 million or earnings per share of $0.06 -- Backlog of $1.5 billion up 57% YoY; outperforms normal sequential seasonality -- 2021 EPS outlook maintained at $0.75 per diluted share; range of $0.70 to $0.80

LAFAYETTE, Ind., April 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 March31, 2021.

Net sales for the first quarter 2021 of $392.0 million increased 1.3% versus the prior year quarter as the Company continued to scale its ability to serve strong customer demand. Consolidated gross profit was $47.2million, or 12.0% of sales. Operating income was $11.2 million, or 2.9% of sales. Earnings per share was $0.06.

Total Company backlog as of March31, 2021 was approximately $1.5 billion as new order activity slightly outpaced shipments despite seasonal trends showing a sequential softening in first quarter backlog three of the past five years. Backlog rose 4% compared to December 2020 and was 57% above March 2020.

During the first quarter, the Wabash team executed well to navigate the unprecedented labor and supply-chain challenges that have impacted our industry in addition to all U.S. manufacturing sectors, explained Brent Yeagy, president and chief executive officer. Freight activity in the United States remains exceptionally strong and we are focused on adding the system capacity to support our customers demand for equipment now and into the future.

For the full year ending December 31, 2021, the company increased its sales guidance to $1.95 billion to $2.05 billion and maintained its earnings per diluted share midpoint of $0.75 with a range of $0.70 to $0.80.

We remain focused on executing on solid demand conditions this year while simultaneously working to secure adequate labor and supply stability in order to achieve strong exit run rates by the end of 2021. We expect to be well positioned to maximize our factory capacity and achieve further operating margin expansion in 2022, particularly as we anniversary strong material cost headwinds in the current year. Our One Wabash approach has our businesses coming together in new and interesting ways and has accelerated conversations with key customers seeking strategic partners for solutions to support transportation, logistics and distribution.

Business Segment Highlights

The table below is a summary of select segment operating and financial results prior to the elimination of intersegment sales for the first quarter of 2021 and 2020. A complete disclosure of the results by individual segment is included in the tables following this release.

Commercial Trailer Diversified Products Final Mile Products ProductsThreeMonths 2021 2020 2021 2020 2021 2020 EndedMarch 31, (dollars in thousands)Newtrailers 9,250 8,525 420 625 ? ? shippedNet sales $ 247,709 $ 250,975 $ 74,008 $ 82,958 $ 77,065 $ 60,270 Gross $ 27,235 $ 23,843 $ 15,103 $ 15,141 $ 6,456 $ (244 )profitGross )profit 11.0 % 9.5 % 20.4 % 18.3 % 8.4 % (0.4 %marginIncome(loss) $ 20,865 $ 15,871 $ 6,089 $ (6,070 ) $ (3,947 ) $ (108,041 )fromoperationsIncome(loss) ) ) )from 8.4 % 6.3 % 8.2 % (7.3 % (5.1 % (179.3 %operationsmarginAdjustedincome(loss) $ 20,865 $ 16,248 $ 6,089 $ 4,901 $ (3,947 ) $ (12,275 )fromoperationsAdjustedincome(loss) 8.4 % 6.5 % 8.2 % 5.9 % (5.1 ) (20.4 )from % %operationsmargin

Commercial Trailer Products net sales for the first quarter were $247.7 million, a decrease of 1.3% as compared to the prior year quarter, as operations scale to meet improved customer demand. Operating income was $20.9 million or 8.4% of sales during the quarter.

Diversified Products net sales for the first quarter were $74.0 million, a decrease of 10.8% as compared to the prior year, as operations work to ramp up. Additionally, the revenue decline was influenced by a divestiture completed in the prior year. Operating income was $6.1 million, or 8.2% of sales during the quarter.

Final Mile Products net sales for the first quarter totaled $77.1 million, an increase of 27.9% as compared to the prior year, as operations scale to be able to satisfy stronger market demand. Operating loss was $3.9 million 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, impairment and other, net, and other non-operating income and expense. 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 (used in) 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 (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 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 loss (2020) and adjusted earnings per basic (2020) share reflect adjustments for non-cash impairment 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 loss and basic (2020) 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 (2021) and basic (2020) share to net income (loss) and net income (loss) per diluted (2021) and basic (2020) 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.

First Quarter 2021 Conference Call

Wabash National will discuss its results during its quarterly investor conference call on Wednesday, April28, 2021, 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 (833) 476-0947, conference ID 2497361. 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.

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

March 31, December 31, 2021 2020Assets Current assets: Cash and cash equivalents $ 168,887 $ 217,677 Accounts receivable, net 134,360 101,301 Inventories, net 227,172 163,750 Prepaid expenses and other 90,225 63,036 Total current assets 620,644 545,764 Property, plant, and equipment, net 206,598 209,676 Goodwill 199,552 199,560 Intangible assets, net 161,097 166,887 Other assets 38,463 39,583 Total assets $ 1,226,354 $ 1,161,470 Liabilities and Stockholders? Equity Current liabilities: Current portion of long-term debt $ ? $ ? Current portion of finance lease obligations 293 348 Accounts payable 170,961 104,425 Other accrued liabilities 127,324 130,980 Total current liabilities 298,578 235,753 Long-term debt 448,214 447,979 Finance lease obligations ? 30 Deferred income taxes 52,333 46,777 Other non-current liabilities 24,927 26,052 Total liabilities 824,052 756,591 Commitments and contingencies Stockholders? equity: Common stock 200,000,000 shares authorized, $0.01par value, 51,711,291 and 757 755 52,536,482 shares outstanding, respectivelyAdditional paid-in capital 647,960 644,695 Retained earnings 106,483 107,233 Accumulated other comprehensive income 21,860 7,633 Treasury stock at cost, 24,111,035 and 23,004,607 (374,758 ) (355,437 )common shares, respectivelyTotal stockholders' equity 402,302 404,879 Total liabilities and stockholders? equity $ 1,226,354 $ 1,161,470

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

Three Months Ended March 31, 2021 2020Net sales $ 392,003 $ 387,074 Cost of sales 344,837 350,331 Gross profit 47,166 36,743 General and administrative expenses 22,867 26,192 Selling expenses 6,665 7,998 Amortization of intangible assets 5,798 5,495 Impairment and other, net 621 107,114 Income (loss) from operations 11,215 (110,056 )Other income (expense): Interest expense (6,150 ) (6,272 )Other, net (14 ) 120 Other expense, net (6,164 ) (6,152 )Income (loss) before income tax expense (benefit) 5,051 (116,208 )Income tax expense (benefit) 1,834 (9,561 )Net income (loss) $ 3,217 $ (106,647 ) Net income (loss) per share: Basic $ 0.06 $ (2.01 )Diluted $ 0.06 $ (2.01 )Weighted average common shares outstanding (in thousands):Basic 52,126 53,156 Diluted 53,044 53,156 Dividends declared per share $ 0.08 $ 0.08

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

Three Months Ended March 31, 2021 2020Cash flows from operating activities Net income (loss) $ 3,217 $ (106,647 )Adjustments to reconcile net income (loss) to net cash used in operating activitiesDepreciation 6,432 5,624 Amortization of intangibles 5,798 5,495 Net gain on sale of property, plant and equipment (193 ) (3 )Deferred income taxes 661 (1,849 )Stock-based compensation 2,032 (917 )Impairment 817 107,114 Non-cash interest expense 296 265 Accounts receivable (33,059 ) 34,522 Inventories (63,422 ) (59,001 )Prepaid expenses and other (7,031 ) (838 )Accounts payable and accrued liabilities 61,789 8,235 Other, net 259 (2,054 )Net cash used in operating activities $ (22,404 ) $ (10,054 )Cash flows from investing activities Capital expenditures (4,165 ) (6,278 )Proceeds from the sale of property, plant, and 203 25 equipmentNet cash used in investing activities $ (3,962 ) $ (6,253 )Cash flows from financing activities Proceeds from exercise of stock options 1,235 ? Dividends paid (4,253 ) (4,482 )Borrowings under revolving credit facilities 114 45,040 Payments under revolving credit facilities (114 ) (40 )Principal payments under finance lease obligations (85 ) (80 )Debt issuance costs paid ? (9 )Stock repurchases (19,321 ) (10,051 )Net cash (used in) provided by financing activities $ (22,424 ) $ 30,378 Cash and cash equivalents: Net (decrease) increase in cash, cash equivalents, $ (48,790 ) $ 14,071 and restricted cashCash, cash equivalents and restricted cash at 217,677 140,516 beginning of periodCash, cash equivalents, and restricted cash at end $ 168,887 $ 154,587 of period

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

Three Commercial CorporateMonths Trailer Diversified Final Mile and ConsolidatedEnded March Products Products Products Eliminations31,2021 Newtrailers 9,250 420 ? ? 9,670 shippedUsedtrailers 15 25 ? ? 40 shipped New $ 238,665 $ 30,266 $ ? $ ? $ 268,931 TrailersUsed 165 847 ? ? 1,012 TrailersComponents,parts and 5,941 29,966 3,723 (5,843 ) 33,787 serviceEquipment 2,938 12,929 73,342 (936 ) 88,273 and otherTotal netexternal $ 247,709 $ 74,008 $ 77,065 $ (6,779 ) $ 392,003 salesGross $ 27,235 $ 15,103 $ 6,456 $ (1,628 ) $ 47,166 profitIncome(loss) from $ 20,865 $ 6,089 $ (3,947 ) $ (11,792 ) $ 11,215 operations 2020 Newtrailers 8,525 625 ? ? 9,150 shippedUsedtrailers 35 35 ? ? 70 shipped New $ 237,901 $ 43,312 $ ? $ ? $ 281,213 TrailersUsed 318 1,210 ? ? 1,528 TrailersComponents,parts and 9,272 26,082 3,722 (7,100 ) 31,976 serviceEquipment 3,484 12,354 56,548 (29 ) 72,357 and otherTotal netexternal $ 250,975 $ 82,958 $ 60,270 $ (7,129 ) $ 387,074 salesGross $ 23,843 $ 15,141 $ (244 ) $ (1,997 ) $ 36,743 profitIncome(loss) from $ 15,871 $ (6,070 ) $ (108,041 ) $ (11,816 ) $ (110,056 )operations

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

Adjusted Operating Income (Loss)^1 Three Months Ended March 31, 2021 2020Commercial Trailer Products Income from operations $ 20,865 $ 15,871 Adjustments: Impairment ? 377 Adjusted operating income $ 20,865 $ 16,248 Diversified Products Income (loss) from operations 6,089 (6,070 )Adjustments: Impairment ? 10,971 Adjusted operating income 6,089 4,901 Final Mile Products Loss from operations (3,947 ) (108,041 )Adjustments: Impairment ? 95,766 Adjusted operating loss (3,947 ) (12,275 ) Corporate Loss from operations (11,792 ) (11,816 ) Consolidated Income (loss) from operations 11,215 (110,056 )Adjustments: Impairment ? 107,114 Adjusted operating income (loss) $ 11,215 $ (2,942 )

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 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.

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 March 31, 2021 2020Net income (loss) $ 3,217 $ (106,647 )Income tax expense (benefit) 1,834 (9,561 )Interest expense 6,150 6,272 Depreciation and amortization 12,230 11,119 Stock-based compensation 2,032 (917 )Impairment and other, net 621 107,114 Other, net 14 (120 )Operating EBITDA $ 26,098 $ 7,260

Adjusted Net Income^2: Three Months Ended March 31, 2021 2020Net income (loss) $ 3,217 $ (106,647 )Adjustments: Impairment ? 107,114 Tax effect of aforementioned items ? (2,786 )Adjusted net income (loss) $ 3,217 $ (2,319 )

Adjusted Diluted (2021) and Basic (2020) Earnings Per Three Months EndedShare^2: March 31, 2021 2020Diluted (2021) and basic (2020) earnings per share $ 0.06 $ (2.01 )Adjustments: Impairment ? 2.02 Tax effect of aforementioned items ? (0.05 )Adjusted diluted (2021) and basic (2020) earnings per $ 0.06 $ (0.04 )share Weighted average diluted (2021) and basic (2020) shares 53,044 53,156 outstanding (in thousands)

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 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.

2 Adjusted net loss (2020) and adjusted earnings per basic (2020) share reflect adjustments for non-cash impairment 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 loss and basic (2020) net income loss per share, is beneficial to an investors understanding of the Companys performance.

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

Three Months Ended March 31, 2021 2020Net cash used in operating activities $ (22,404 ) $ (10,054 )Capital expenditures (4,165 ) (6,278 )Free cash flow^1 $ (26,569 ) $ (16,332 )

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 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.

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

Commercial Trailer Diversified Products Final Mile Products ProductsThree MonthsEnded March 2021 2020 2021 2020 2021 202031,Income(loss) from $ 20,865 $ 15,871 $ 6,089 $ (6,070 ) $ (3,947 ) $ (108,041 )operationsDepreciationand 3,038 2,732 4,099 4,499 4,564 3,555 amortizationImpairmentand other, 186 377 432 10,971 4 95,766 netAdjustedsegment $ 24,089 $ 18,980 $ 10,620 $ 9,400 $ 621 $ (8,720 )EBITDA Adjustedsegment 9.7 % 7.6 % 14.3 % 11.3 % 0.8 % (14.5 )%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.

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