Wabash National Corporation Announces Third Quarter 2015 Results; Achieves Record Profitability and Increases Full-Year Outlook

• Record net sales of $531 million for third quarter 2015, up 8 percent year over year
• Record operating income of $56.4 million, up 61 percent year over year
• Both GAAP earnings and non-GAAP adjusted earnings of $0.47 per diluted share reflect improvements year over year of 88 percent and 81 percent, respectively
• Non-GAAP adjusted earnings guidance for full year 2015 increases to $1.38 - $1.43 per diluted share, which would represent a year over year improvement of 58 percent at the midpoint of the range    

LAFAYETTE, Ind., Oct. 27, 2015 (GLOBE NEWSWIRE) --  Wabash National Corporation WNC, a diversified industrial manufacturer and North America's leading producer of semi-trailers and liquid transportation systems, today reported results for the third quarter ended September 30, 2015. 

Net income for the third quarter of 2015 was $31.9 million, or $0.47 per diluted share, compared to third quarter 2014 net income of $18.3 million, or $0.25 per diluted share.  Third quarter 2015 non-GAAP adjusted earnings increased $13.3 million to $31.9 million, or $0.47 per diluted share, from $18.6 million, or $0.26 per diluted share, for the third quarter 2014.  Non-GAAP adjusted earnings for the third quarter of 2014 includes an early extinguishment of debt charge of $0.5 million incurred with regards to the Company's term loan prepayment.

For the third quarter of 2015, the Company's net sales increased 8 percent to a record $531 million from $492 million in the prior year quarter, and operating income increased 61 percent to a record quarter of $56.4 million compared to operating income of $34.9 million for the third quarter of 2014.  Operating EBITDA, a non-GAAP measure that excludes the effects of certain recurring and non-recurring items, for the third quarter of 2015 was $68.0 million, an increase of $21.4 million compared to the prior year period.  On a trailing twelve month basis through September 30, 2015, the Company's net sales exceeded $2.0 billion, net income totaled $90.1 million and Operating EBITDA increased to $207.0 million, or 10.3 percent of net sales.

The following is a summary of select operating and financial results for the past five quarters:

Notes:

1. See "Non-GAAP Measures" below for a discussion of how the Company uses and defines non-GAAP financial measures.

Dick Giromini, president and chief executive officer, stated, "We are very pleased with the continued strong performance and our ability to deliver third quarter results that represent record achievement levels for net sales, gross profit, income from operations, operating margin and Operating EBITDA.  The overall strength in the Company's operating performance demonstrates that both the operational improvement initiatives and the transformative nature of our strategic growth efforts are paying strong dividends.  All segments contributed significantly to the record performance this quarter as Commercial Trailer Products' ongoing commitment to margin improvement and manufacturing excellence resulted in record level gross profit and operating income while Diversified Products' performance provided significant year over year and sequential improvements.  Through the first nine months of 2015 we have continued the momentum generated last year with strong operational execution and an accelerated pace of improvement from our record breaking 2014."

Mr. Giromini continued, "New trailer shipments for the third quarter were approximately 16,500, just within the range of our previous guidance of 16,500 to 17,500 trailers.  With three quarters now complete and a full order book for the remainder of the year, we fully expect to finish 2015 with the Company's fourth consecutive year of record performance.  As such, we are now updating and tightening our full-year trailer shipment guidance to 63,000 to 64,000 trailers and increasing our adjusted earnings guidance to $1.38 to $1.43 per diluted share.  Longer term, supported by a healthy backlog of $1.1 billion, we believe the demand environment for trailers will remain strong as customer profitability, fleet age and regulatory compliance requirements all support an extended trailer cycle. Additionally, we expect continued growth from our strategic initiatives through new product introductions and market expansion opportunities."

Third Quarter 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 2015 and 2014, respectively.  A complete disclosure of the results by individual segment is included in the tables following this release.

Commercial Trailer Products achieved new quarterly records for gross profit, operating income and operating margin.  Net sales were $387 million, an increase of $35 million, or 10.0 percent, on shipments of 15,500 trailers, or 800 more trailers than the prior year period.  This increase in revenue was primarily due to a 5.4 percent increase in trailer shipments during the quarter as well as the ongoing commitment to improve the financial performance within the core trailer business.  Driven by higher volumes, an improved pricing environment and continued operational improvements, gross profit and gross profit margin increased $21.5 million and 480 basis points, respectively, as compared to the same period last year.  Operating income increased by $20.4 million from the third quarter last year to $45.6 million.

Diversified Products' net sales increased $4 million, or 3.8 percent, as compared to the previous year period as the increase in tank trailer shipments was partially offset by lower sales of aviation and other non-trailer equipment-related offerings.  Gross profit margin for the third quarter of 24.0 percent improved 270 basis points from the prior year period.  In addition, gross profit and operating income increased $4.2 million and $3.7 million, respectively, compared to the prior year period.  These year-over-year improvements are due primarily to increased tank trailer shipments, strong demand for the Company's composite products, product mix and the successful execution of diversification initiatives to profitably grow the business.

Retail's net sales of $42 million decreased 7.2 percent compared with the prior year period primarily due to lower shipments of new trailers, which were partially offset by the continued healthy demand for parts and service throughout the quarter.  Gross profit margin improved 190 basis points compared to the prior year period due to a shift in product mix favoring higher-margined parts and service sales.  Operating income of $1.3 million increased $0.5 million from the same period last year.

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 contain non-GAAP financial measures, including Operating EBITDA, Operating EBITDA margin, adjusted earnings and adjusted earnings per diluted share.

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, and reconciliations to GAAP financial statements should be carefully evaluated.

Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, and other non-operating income and expense.  Management believes Operating EBITDA provides useful information to investors regarding our results of operations.  The Company provides this measure because we believe it is useful for investors to understand our performance period to period with the exclusion of the recurring and non-recurring items identified above.  Management believes the presentation of Operating EBITDA, when combined with the primary GAAP presentation of operating income, is beneficial to an investor's understanding of the Company's operating performance.  A reconciliation of Operating EBITDA to net income is included in the tables following this release.

Adjusted earnings and adjusted earnings per diluted share reflect adjustments for non-recurring income recognized on the sale of former retail branch locations as well as charges related to losses incurred in connection with the Company's extinguishment of debt.  Historically, we have excluded from these measures the revaluation of deferred income tax assets due to changes in statutory tax rates.  Management believes providing this measure and excluding these items facilitate comparisons to the Company's prior year periods and, when combined with the primary GAAP presentation of net income and diluted net income per share, is beneficial to an investor's understanding of the Company's performance.  A reconciliation of adjusted earnings and adjusted earnings per diluted share to net income and diluted net income per share is included in the tables following this release.

Third Quarter 2015 Conference Call
Wabash National will conduct a conference call to review and discuss its third quarter results on October 28, 2015, at 10:00 a.m. EDT.  Access to the live webcast will be available on the Company's website at www.wabashnational.com.  For those unable to participate in the live webcast, the call will be archived at www.wabashnational.com within three hours of the conclusion of the live call and will remain available through January 20, 2016.  Meeting access also will be available via conference call at 888-771-4371, participant code 40935749.

About Wabash National Corporation

Headquartered in Lafayette, Indiana, Wabash National Corporation WNC is a diversified industrial manufacturer and North America's leading producer of semi-trailers and liquid transportation systems. Established in 1985, the company manufactures a diverse range of products including: dry freight and refrigerated trailers, platform trailers, bulk tank trailers, truck-mounted tanks, intermodal equipment, aircraft refueling equipment, 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^®, Garsite, Progress Tank, Transcraft^®, TST^®, Walker Barrier Systems, Walker Engineered Products, and Walker Transport. Visit www.wabashnational.com to learn more.

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, statements regarding the Company's outlook for trailer shipments, backlog, expectations regarding demand levels for trailers, non-trailer equipment and our other engineered products, profitability and earnings, opportunity to capture higher margin sales, and the expectations regarding the Company's growth and diversification strategies.  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 the uncertain economic conditions including the possibility that demand expectations may not result in order increases for us, increased competition, reliance on certain customers and corporate partnerships, risks of customer pick-up delays, shortages and costs of raw materials, risks in implementing and sustaining improvements in the Company's manufacturing capacity and cost containment, dependence on industry trends and timing 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.