Wabash National Corporation Announces Fourth Quarter and Year End Results
LAFAYETTE, Ind., Feb. 9, 2004 -- Wabash National Corporation announced today results for the three and twelve months ended December 31, 2003. Net sales for the fourth quarter were $219.8 million compared to $205.9 million for the same period last year. Net loss for the quarter was $1.7 million, including losses of $4.1 million incurred on the sale of finance contracts, compared to a loss of $11.6 million for the same period last year. For the year ended December 31, 2003, net sales were $887.9 million compared to $819.6 million for 2002. Net loss for fiscal year 2003 totaled $57.2 million, compared to a net loss of $56.2 million in 2002. Diluted loss per share was ($0.08) for the fourth quarter 2003, including losses of ($0.16) incurred on the sale of finance contracts, compared to ($0.46) per share for the fourth quarter 2002. For the twelve months ended December 31, 2003 diluted loss per share was ($2.26) compared to ($2.43) in 2002.
Commenting on these results, William P. Greubel, President and Chief Executive Officer, stated, "We are very pleased with the accomplishments achieved during the fourth quarter and for the full year of 2003. We finished the year on a very strong note with excellent momentum continuing into the new year. There was over $500 million in shareholder value created by the Company during 2003. Our goal in 2004 is to maintain this value and build upon it. The financial crisis of the Company has been fixed and we have significantly improved our operations. As we transition from a turnaround story, we are focused on earnings and cash flow. Given accelerating industry demand, we look forward to 2004 and beyond with great expectations. These expectations are consistent with our recent accomplishments."
Wabash National Corporation designs, manufactures, and markets standard and customized truck trailers under the Wabash(TM) brand name. The Company is one of the world's largest manufacturers of truck trailers and a leading manufacturer of composite trailers. The Company's wholly owned subsidiary, Wabash National Trailer Centers, is one of the leading retail distributors of new and used trailers and aftermarket parts 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 are, however, 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 dependence on lenders to agree to amend financial covenants on favorable term, 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.
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
Unaudited
Three Months Twelve Months
Ended December 31, Ended December 31,
2003 2002 2003 2002
NET SALES $219,751 $205,891 $887,940 $819,568
COST OF SALES 204,492 191,437 810,746 777,117
LOSS ON ASSET IMPAIRMENT - 2,000 28,500 2,000
Gross Profit 15,259 12,454 48,694 40,451
GENERAL AND
ADMINISTRATIVE EXPENSES 8,352 12,862 37,383 53,897
SELLING EXPENSES 4,379 5,948 20,333 23,501
RESTRUCTURING CHARGE - 96 - 1,813
Income (loss) from
operations 2,528 (6,452) (9,022) (38,760)
OTHER INCOME (EXPENSE):
Interest expense (3,554) (8,861) (30,162) (30,873)
Foreign exchange gains
and losses, net (27) (128) 5,291 5
Loss on debt extinguishment (900) - (19,840) (1,314)
Other, net 205 505 (3,494) (526)
Loss before income taxes (1,748) (14,936) (57,227) (71,468)
INCOME TAX BENEFIT - (3,331) - (15,278)
Net loss (1,748) (11,605) (57,227) (56,190)
PREFERRED STOCK DIVIDENDS 261 268 1,053 1,563
NET LOSS APPLICABLE TO
COMMON STOCKHOLDERS $(2,009) $(11,873) $(58,280) $(57,753)
BASIC AND DILUTED NET LOSS
PER SHARE $(0.08) $(0.46) $(2.26) $(2.43)
BASIC AND DILUTED SHARES
OUTSTANDING 25,947 25,644 25,778 23,791
COMPREHENSIVE LOSS
Net loss $(1,748) $(11,605) $(57,227) $(56,190)
Foreign currency
translation adjustment 1,020 11 1,256 42
NET COMPREHENSIVE LOSS $(728) $(11,594) $(55,971) $(56,148)
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
Unaudited
SEGMENT INFORMATION Retail &
Three months ended Manufacturing Distribution Eliminations Total
2003
Net Sales $185,352 $46,345 $(11,946) $219,751
Operating Results $6,626 $(4,211) $113 $2,528
2002
Net Sales $150,418 $73,324 $(17,851) $205,891
Operating Results $(3,655) $(2,313) $(484) $(6,452)
Twelve months ended
2003
Net Sales $672,292 $268,698 $(53,050) $887,940
Operating Results $27,828 $(37,283) $433 $(9,022)
2002
Net Sales $530,060 $331,489 $(41,981) $819,568
Operating Results $(16,566) $(22,287) $93 $(38,760)
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
Unaudited
December 31, December 31,
2003 2002
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $12,552 $35,659
Accounts receivable, net 66,641 34,396
Current portion of finance contracts 4,727 9,528
Inventories 84,996 134,872
Prepaid expenses and other 10,249 18,299
Total current assets 179,165 232,754
PROPERTY, PLANT AND EQUIPMENT, net 130,594 145,703
EQUIPMENT LEASED TO OTHERS, net 21,187 100,837
FINANCE CONTRACTS, net of current portion 6,155 22,488
GOODWILL, net 36,045 34,652
OTHER ASSETS 23,890 29,135
$397,036 $565,569
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $7,337 $42,961
Current maturities of capital
lease obligations - 12,860
Accounts payable 68,437 60,457
Other accrued liabilities 61,421 61,424
Total current liabilities 137,195 177,702
LONG-TERM DEBT, net of current maturities 219,979 239,043
LONG-TERM CAPITAL LEASE OBLIGATIONS,
net of current maturities - 51,993
OTHER NONCURRENT LIABILITIES AND CONTINGENCIES 17,700 22,847
STOCKHOLDERS' EQUITY 22,162 73,984
$397,036 $565,569
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Years Ended December 31,
2003 2002
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(57,227) $(56,190)
Adjustments to reconcile net cash
provided by (used in) operating activities:
Depreciation and amortization 23,788 28,626
Net (gain) loss on the sale of assets 723 (1,322)
Provision for losses on accounts
receivable and finance contracts 474 9,773
Cash used for restructuring activities (3,372) (373)
Restructuring and other related charges - 1,813
Used trailer valuation charges 2,562 5,443
Loss contingencies - 2,831
Loss on debt extinguishment 19,840 1,314
Loss on asset impairments 28,500 2,000
Change in operating assets and liabilities:
Accounts receivable (40,749) 19,695
Inventories 51,416 58,335
Refundable income taxes 824 24,762
Prepaid expenses and other 5,009 (4,016)
Accounts payable and
accrued liabilities 11,286 9,776
Other, net (1,280) 1,815
Net cash provided by (used in)
operating activities 41,794 104,282
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (6,518) (5,703)
Additions to equipment leased to others - (9,792)
Additions to finance contracts - (7,718)
Proceeds from asset sales 53,479 -
Proceeds from sale of leased equipment
and finance contracts 15,189 5,337
Principal payments received on
finance contracts 7,778 13,278
Proceeds from the sale of property,
plant and equipment 6,861 16,617
Net cash provided by (used in)
investing activities 76,789 12,019
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of bank term loan
and revolving credit facility 135,309 80,402
Proceeds from convertible senior notes 125,000 -
Proceeds from exercise of stock options 4,804 351
Borrowings under trade receivables and
revolving credit facilities 197,650 56,798
Payments under trade receivables and
revolving credit facilities (225,501) (146,491)
Payments under long-term debt and
capital lease obligations (367,089) (78,589)
Preferred stock dividends paid (1,584) (443)
Debt issuance costs paid (10,279) (3,805)
Net cash provided by (used in)
financing activities (141,690) (91,777)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (23,107) 24,524
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 35,659 11,135
CASH AND CASH EQUIVALENTS AT END OF PERIOD $12,552 $35,659
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $21,774 $27,913
Income taxes refunded, net $(832) $(38,153)