Wabash National Corporation Announces First
Quarter Results
LAFAYETTE, Ind., April 24 Wabash National Corporation announced today results for the first
quarter ended March 31, 2001. Net sales for the first quarter were
$242.6 million, compared to $352.8 million for the same period last year. Net
loss for the quarter was $10.4 million before inventory and other nonrecurring
charges of $7.3 million (after tax), compared to $9.1 million in net income
for the same period last year. Diluted earnings per share were ($.45) for the
quarter before inventory and other nonrecurring charges of ($.34) compared to
$.38 for the same period last year.
Commenting on these results, Jerry Ehrlich, Chairman, President and Chief
Executive Officer, stated, "The transportation market continued to be severely
impacted by the reduced level of freight demand during the first quarter. As
previously announced, we have taken various actions to address this rapidly
changing environment, including the restructuring of our international
operations and the elimination of approximately 500 jobs. While these actions
had little affect on the first quarter, we believe these actions will reduce
our costs by over $35 million annually, beginning in the second quarter. In
addition, due to the deterioration in the market conditions, we believe we
must actively adjust our inventory levels to continue to reduce our total
costs. As a result, the Company will take an inventory charge on new and used
trailers held for sale through our retail distribution network of
approximately $9 million, pre-tax. We believe these actions will accelerate
the reduction of our retail stock inventories. We have recently seen some
signs of encouragement in industry conditions; therefore we are increasing our
production rate of DuraPlate trailers to meet current demand. However, we
remain cautious and will continue to pursue opportunities to further reduce
our costs. Our backlog as of March 31, 2001 was approximately $550 million,
which includes approximately $400 million for our proprietary DuraPlate(R)
composite trailer."
Wabash National Corporation designs, manufactures and markets standard and
customized truck trailers under the Wabash and Fruehauf trademarks. The
Company believes it is the world's largest manufacturer of truck trailers, the
leading manufacturer of composite trailers and through its RoadRailer(R)
products, the leading manufacturer of bimodal vehicles. The Company's wholly
owned subsidiary, Fruehauf Trailer Services, Inc., is one of the leading
retail distributors of new and used trailers and aftermarket parts, including
its Fruehauf and Pro-Par(R) brand products with approximately 45 locations
throughout the U.S. and Canada.
This press release contains certain forward-looking statements, as defined
by the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include specifically the statements about expected
future benefits from cost reductions and inventory charges taken and our
outlook for industry conditions and current demand. These 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 increased
competition, dependence on key management, reliance on certain customers and
corporate partnerships, shortages of raw materials, dependence on industry
trends, export sales and new markets, acceptance of new technology and
products, and government regulation. Readers should review and consider the
various disclosures made by the Company in this press release and in its
reports to its stockholders and periodic reports on Forms 10-K and 10-Q. We
specifically disclaim any duty to update any forward-looking statements made
herein, and the statements made herein speak only as the date of this release.
WABASH NATIONAL CORPORATION
RESULTS OF OPERATIONS
(Dollars in Thousands, except per share amounts)
Three Months Ended
March 31,
2001 2000
Net Sales $ 242,629 $ 352,848
Less:
Cost of Sales $ 235,274 $ 318,425
Inventory Charge $ 9,098 $ --
S, G&A $ 16,168 $ 13,140
Interest Expense $ 5,800 $ 4,129
Other (Income) Expense $ 1,954 $ 2,184
Equity in Losses of Wholly-Owned Subsidiary $ 2,489 $ --
Income (Loss) Before Taxes $ (28,154) $ 14,971
Net Income (Loss) $ (17,730) $ 9,132
Preferred Stock Dividends $ 476 $ 476
Net Income (Loss) Available to
Common Shareholders $ (18,206) $ 8,656
Basic Earnings Per Share $ (0.79) $ 0.38
Average Shares Outstanding 23,002,000 22,985,000
Diluted Earnings Per Share $ (0.79) $ 0.38
Average Shares and
Equivalents Outstanding 23,002,000 23,808,000
Results Before Inventory
and Other Nonrecurring Charges:
Income (Loss) Before Income Taxes $ (16,567) $ 14,971
Net Income (Loss) $ (10,437) $ 9,132
Diluted Earnings per Share $ (0.45) $ 0.38
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