• Wabash National Corporation Announces Second Quarter 2021 Results

    Source: Nasdaq GlobeNewswire / 28 Jul 2021 06:58:01   America/New_York

    • Revenue of $449.4 million on increasing new trailer shipments
    • Operating income of $22.7 million on a GAAP basis or $20.8 million on a non-GAAP adjusted basis
    • Earnings per share of $0.24 on a GAAP basis or $0.21 on a non-GAAP adjusted basis
    • Backlog of $1.3 billion up 77% YoY; outperforms normal sequential seasonality
    • 2021 EPS outlook maintained, updated for divestiture impact at $0.72 per diluted share; range of $0.67 to $0.77

    LAFAYETTE, Ind., July 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 June 30, 2021.

    Net sales for the second quarter 2021 of $449.4 million increased 32.5% versus the prior year quarter as the company continued to scale its ability to serve strong customer demand. Consolidated gross profit was $55.6 million, or 12.4% of sales. Operating income was $22.7 million, or 5.0% of sales during the quarter. On a non-GAAP adjusted basis, operating income was $20.8 million. GAAP earnings per share were $0.24, or $0.21, on a non-GAAP adjusted basis.

    Total company backlog as of June 30, 2021 was approximately $1.3 billion. Normal seasonal order patterns generally dictate that the backlog declines sequentially in Q2; however, during the second quarter of 2021, the backlog softened less than usual and remained up 77% compared to June of 2020.

    “While the manufacturing environment continued to be broadly challenging during the second quarter, Wabash National is successfully navigating the issues created by labor scarcity and material cost increases compounded by exceptionally strong demand in our industry and in the economy as a whole,” explained Brent Yeagy, president and chief executive officer. “Our strong financial results are a testament to our employees' dedication to serve our customers as well as our diligent cost control through the year.”

    For the full year ending December 31, 2021, the company maintained its EPS outlook and updated it for the impact of the divestiture of Extract Technology, which closed on June 30, 2021. The midpoint for earnings per diluted share is anticipated to be $0.72 with a range of $0.67 to $0.77.

    “We are pleased that new trailer shipments remain on an upward trajectory and that the ramp in trailer production continues to meet our expectations. Freight markets remain very strong and our customers are looking to trailers as a way to address intensified driver shortages and network imbalances. We will continue to manage through short-term commodity headwinds and labor challenges as we work toward maximizing our factory capacity and positioning ourselves to capitalize on continued strong customer demand in 2021 and beyond.”

    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 second quarter of 2021 and 2020. A complete disclosure of the results by individual segment is included in the tables following this release.

      Commercial Trailer
    Products    		 Diversified Products Final Mile Products
    Three Months Ended June 30, 2021
    		 2020
    		 2021
    		 2020
    		 2021
    		 2020
      (dollars in thousands)
    New trailers shipped 11,090  8,000  500  400  —  — 
    Net sales $296,342  $232,254  $76,578  $63,951  $81,023  $50,832 
    Gross profit $38,623  $22,392  $12,151  $10,761  $6,147  $1,963 
    Gross profit margin 13.0%  9.6%  15.9%  16.8%  7.6%  3.9% 
    Income (loss) from operations $32,299  $18,599  $5,824  $2,242  $(3,247)  $(6,569) 
    Income (loss) from operations margin 10.9%  8.0%  7.6%  3.5%  (4.0)%  (12.9)% 
    Adjusted income (loss) from operations $32,299  $18,599  $3,950  $2,242  $(3,247)  $(6,569) 
    Adjusted income (loss) from operations margin 10.9%  8.0%  5.2%  3.5%  (4.0)%  (12.9)% 
                       

    Commercial Trailer Products’ net sales for the second quarter were $296.3 million, an increase of 27.6% as compared to the prior year quarter, as operations scaled to meet improved customer demand. Operating income was $32.3 million or 10.9% of sales during the quarter.

    Diversified Products’ net sales for the second quarter were $76.6 million, an increase of 19.7% as compared to the prior year quarter, as operations worked to ramp up. Revenue in this business was impacted by the divestiture of the Beall brand of tank trailers on December 31, 2020. Operating income was $5.8 million, or 7.6% of sales during the quarter.

    Final Mile Products’ net sales for the second quarter totaled $81.0 million, an increase of 59.4% as compared to the prior year, as operations scaled to be able to satisfy stronger market demand. Operating loss was $3.2 million during the quarter while adjusted segment EBITDA improved to $1.3 million.

    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 Company’s 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 investor’s understanding of the Company’s 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 Company’s 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 investor’s understanding of the Company’s 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 Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s 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 Company’s 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 (loss) and adjusted earnings per diluted (2021) and basic (2020) share reflect adjustments for the impact of sales and divestitures, debt transactions, and non-cash impairment, and the related tax effects of these adjustments. Management believes providing adjusted measures and excluding certain items facilitates comparisons to the Company’s prior year periods and, when combined with the GAAP presentation of net income (loss) and diluted (2021) and basic (2020) net income (loss) per share, is beneficial to an investor’s understanding of the Company’s performance.

    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 Company’s 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.

    Second Quarter 2021 Conference Call

    Wabash National will discuss its results during its quarterly investor conference call on Wednesday, July 28, 2021, beginning at 10:00 a.m. EDT. The call and an accompanying slide presentation will be accessible on the "Investors" section of the Company’s website www.wabashnational.com. The conference call will also be accessible by dialing (833) 476-0947, conference ID 3994951. 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 company’s 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 equipment. Its innovative products are sold under the following brand names: Wabash National®, Benson®, Brenner® Tank, Bulk Tank International, DuraPlate®, 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 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, all statements regarding the Company’s 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 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 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 Company’s 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 Company’s 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 Company’s reports to its stockholders and periodic reports on Forms 10-K and 10-Q.


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

      June 30,
    2021    		 December 31,
    2020
    Assets    
    Current assets:    
    Cash and cash equivalents $134,375  $217,677 
    Accounts receivable, net 121,390  101,301 
    Inventories, net 252,550  163,750 
    Prepaid expenses and other 79,669  63,036 
    Total current assets 587,984  545,764 
    Property, plant, and equipment, net 207,369  209,676 
    Goodwill 188,438  199,560 
    Intangible assets, net 154,048  166,887 
    Other assets 42,661  39,583 
    Total assets $1,180,500  $1,161,470 
    Liabilities and Stockholders’ Equity    
    Current liabilities:    
    Current portion of long-term debt $—  $— 
    Current portion of finance lease obligations 206  348 
    Accounts payable 171,377  104,425 
    Other accrued liabilities 110,966  130,980 
    Total current liabilities 282,549  235,753 
    Long-term debt 418,900  447,979 
    Finance lease obligations —  30 
    Deferred income taxes 52,517  46,777 
    Other non-current liabilities 26,554  26,052 
    Total liabilities 780,520  756,591 
    Commitments and contingencies    
    Stockholders’ equity:    
    Common stock 200,000,000 shares authorized, $0.01 par value, 50,464,034 and 52,536,482 shares outstanding, respectively 758  755 
    Additional paid-in capital 650,358  644,695 
    Retained earnings 114,445  107,233 
    Accumulated other comprehensive income 31,158  7,633 
    Treasury stock at cost, 25,422,064 and 23,004,607 common shares, respectively (396,739) (355,437)
    Total stockholders' equity 399,980  404,879 
    Total liabilities and stockholders’ equity $1,180,500  $1,161,470 


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

      Three Months Ended June 30, Six Months Ended June 30,
      2021 2020 2021 2020
    Net sales $449,422  $339,153  $841,425  $726,227 
    Cost of sales 393,814  304,832  738,651  655,163 
    Gross profit 55,608  34,321  102,774  71,064 
    General and administrative expenses 22,907  19,633  45,774  45,825 
    Selling expenses 6,065  4,886  12,730  12,884 
    Amortization of intangible assets 5,799  5,493  11,597  10,988 
    Impairment and other, net (1,847) (1,690) (1,226) 105,424 
    Income (loss) from operations 22,684  5,999  33,899  (104,057)
    Other income (expense):        
    Interest expense (6,034) (5,882) (12,184) (12,154)
    Other, net (413) 285  (427) 405 
    Other expense, net (6,447) (5,597) (12,611) (11,749)
    Income (loss) before income tax expense (benefit) 16,237  402  21,288  (115,806)
    Income tax expense (benefit) 3,985  548  5,819  (9,013)
    Net income (loss) $12,252  $(146) $15,469  $(106,793)
             
    Net income (loss) per share:        
    Basic $0.24  $0.00  $0.30  $(2.01)
    Diluted $0.24  $0.00  $0.29  $(2.01)
    Weighted average common shares outstanding (in thousands):        
    Basic 51,272  52,874  51,697  53,015 
    Diluted 51,989  52,874  52,472  53,015 
             
    Dividends declared per share $0.08  $0.08  $0.16  $0.16 


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

      Six Months Ended June 30,
      2021 2020
    Cash flows from operating activities    
    Net income (loss) $15,469  $(106,793)
    Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities    
    Depreciation 12,881  11,657 
    Amortization of intangibles 11,597  10,988 
    Net gain on sale of property, plant and equipment and business divestiture (2,043) (1,690)
    Loss on debt extinguishment 452  — 
    Deferred income taxes (1,799) (2,648)
    Stock-based compensation 4,216  416 
    Impairment 817  107,114 
    Non-cash interest expense 591  535 
    Accounts receivable (25,758) 48,785 
    Inventories (89,733) (14,154)
    Prepaid expenses and other 2,500  (8,195)
    Accounts payable and accrued liabilities 56,074  (22,126)
    Other, net 1,650  (1,235)
    Net cash (used in) provided by operating activities $(13,086) $22,654 
    Cash flows from investing activities    
    Capital expenditures (11,063) (10,921)
    Proceeds from the sale of assets and business divestiture 20,978  2,725 
    Net cash provided by (used in) investing activities $9,915  $(8,196)
    Cash flows from financing activities    
    Proceeds from exercise of stock options 1,450  — 
    Dividends paid (8,437) (8,742)
    Borrowings under revolving credit facilities 232  45,449 
    Payments under revolving credit facilities (232) (45,449)
    Principal payments under finance lease obligations (172) (162)
    Principal payments under term loan credit facility (30,000) — 
    Debt issuance costs paid —  (12)
    Stock repurchases (41,302) (10,065)
    Net cash used in financing activities $(78,461) $(18,981)
    Cash and cash equivalents:    
    Net decrease in cash, cash equivalents, and restricted cash $(81,632) $(4,523)
    Cash, cash equivalents, and restricted cash at beginning of period 217,677  140,516 
    Cash, cash equivalents, and restricted cash at end of period $136,045  $135,993 


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

    Three Months Ended June 30, Commercial
    Trailer Products    		 Diversified
    Products    		 Final Mile
    Products    		 Corporate and
    Eliminations    		 Consolidated
    2021          
    New trailers shipped 11,090  500  —  —  11,590 
    Used trailers shipped —  15  —  —  15 
               
    New Trailers $287,741  $34,090  $—  $—  $321,831 
    Used Trailers 19  359  —  —  378 
    Components, parts and service 5,529  27,544  3,965  (4,282) 32,756 
    Equipment and other 3,053  14,585  77,058  (239) 94,457 
    Total net external sales $296,342  $76,578  $81,023  $(4,521) $449,422 
    Gross profit $38,623  $12,151  $6,147  $(1,313) $55,608 
    Income (loss) from operations $32,299  $5,824  $(3,247) $(12,192) $22,684 
    Adjusted income (loss) from operations1 $32,299  $3,950  $(3,247) $(12,192) $20,810 
               
    2020          
    New trailers shipped  8,000   400  —  —  8,400 
    Used trailers shipped  185   35  —  —  220 
               
    New Trailers $218,753  $28,176  $—  $—  $246,929 
    Used Trailers 2,273  1,323  —  —  3,596 
    Components, parts and service 9,571  22,166  2,453  (7,884) 26,306 
    Equipment and other 1,657  12,286  48,379  —  62,322 
    Total net external sales $232,254  $63,951  $50,832  $(7,884) $339,153 
    Gross profit $22,392  $10,761  $1,963  $(795) $34,321 
    Income (loss) from operations $18,599  $2,242  $(6,569) $(8,273) $5,999 
    Adjusted income (loss) from operations1 $18,599  $2,242  $(6,569) $(8,273) $5,999 

    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 Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s 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 Company’s view of our results as compared to prior periods.


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

    Six Months Ended June 30, Commercial
    Trailer Products    		 Diversified
    Products    		 Final Mile
    Products    		 Corporate and
    Eliminations    		 Consolidated
    2021          
    New trailers shipped 20,340  920  —  —  21,260 
    Used trailers shipped 15  40  —  —  55 
               
    New Trailers $526,406  $64,356  $—  $—  $590,762 
    Used Trailers 184  1,206  —  —  1,390 
    Components, parts and service 11,470  57,510  7,688  (10,125) 66,543 
    Equipment and other 5,991  27,514  150,400  (1,175) 182,730 
    Total net external sales $544,051  $150,586  $158,088  $(11,300) $841,425 
    Gross profit $65,858  $27,254  $12,603  $(2,941) $102,774 
    Income (loss) from operations $53,164  $11,913  $(7,194) $(23,984) $33,899 
    Adjusted income (loss) from operations1 $53,164  $10,039  $(7,194) $(23,984) $32,025 
               
    2020          
    New trailers shipped 16,525  1,050  —  —  17,575 
    Used trailers shipped 220  70  —  —  290 
               
    New Trailers $456,654  $71,488  $—  $—  $528,142 
    Used Trailers 2,591  2,533  —  —  5,124 
    Components, parts and service 18,843  48,248  6,175  (14,984) 58,282 
    Equipment and other 5,141  24,640  104,927  (29) 134,679 
    Total net external sales $483,229  $146,909  $111,102  $(15,013) $726,227 
    Gross profit $46,235  $25,902  $1,719  $(2,792) $71,064 
    Income (loss) from operations $34,470  $(3,828) $(114,610) $(20,089) $(104,057)
    Adjusted income (loss) from operations1 $34,847  $7,143  $(18,844) $(20,089) $3,057 

    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 Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s 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 Company’s view of our results as compared to prior periods.


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

    Adjusted Operating Income (Loss)1 Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
      2021 2020 2021 2020
    Commercial Trailer Products        
    Income from operations $32,299  $18,599  $53,164  $34,470 
    Adjustments:        
    Impairment —  —  —  377 
    Adjusted operating income $32,299  $18,599  $53,164  $34,847 
             
    Diversified Products        
    Income (loss) from operations 5,824  2,242  11,913  (3,828)
    Adjustments:        
    Impairment —  —  —  10,971 
    Gain on divestiture of Extract Technology (1,874) —  (1,874) — 
    Adjusted operating income 3,950  2,242  10,039  7,143 
             
    Final Mile Products        
    Loss from operations (3,247) (6,569) (7,194) (114,610)
    Adjustments:        
    Impairment —  —  —  95,766 
    Adjusted operating loss (3,247) (6,569) (7,194) (18,844)
             
    Corporate        
    Loss from operations (12,192) (8,273) (23,984) (20,089)
             
    Consolidated        
    Income (loss) from operations 22,684  5,999  33,899  (104,057)
    Adjustments:        
    Impairment —  —  —  107,114 
    Gain on divestiture of Extract Technology (1,874) —  (1,874) — 
    Adjusted operating income $20,810  $5,999  $32,025  $3,057 

    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 Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s 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 Company’s view of our results as compared to prior periods.


    WABASH NATIONAL CORPORATION
    RECONCILIATION OF GAAP FINANCIAL MEASURES TO
    NON-GAAP FINANCIAL MEASURES
    (Unaudited - dollars in thousands, except per share amounts)

    Operating EBITDA1: Three Months Ended June 30, Six Months Ended June 30,
      2021 2020 2021 2020
    Net income (loss) $12,252  $(146) $15,469  $(106,793)
    Income tax expense (benefit) 3,985  548  5,819  (9,013)
    Interest expense 6,034  5,882  12,184  12,154 
    Depreciation and amortization 12,248  11,526  24,478  22,645 
    Stock-based compensation 2,184  1,333  4,216  416 
    Impairment and other, net (1,847) (1,690) (1,226) 105,424 
    Other, net 413  (285) 427  (405)
    Operating EBITDA $35,269  $17,168  $61,367  $24,428 


    Adjusted Net Income (Loss)2: Three Months Ended June 30, Six Months Ended June 30,
      2021 2020 2021 2020
    Net income (loss) $12,252  $(146) $15,469  $(106,793)
    Adjustments:        
    Loss on debt extinguishment 452  —  452  — 
    Impairment —  —  —  107,114 
    Gain on divestiture of Extract Technology (1,874) —  (1,874) — 
    Tax effect of aforementioned items 327  —  327  (2,786)
    Adjusted net income (loss) $11,157  $(146) $14,374  $(2,465)


    Adjusted Diluted (2021) and Basic (2020) Earnings Per Share2: Three Months Ended June 30, Six Months Ended June 30,
      2021 2020 2021 2020
    Diluted (2021) and basic (2020) earnings per share $0.24  $0.00  $0.29  $(2.01)
    Adjustments:        
    Loss on debt extinguishment 0.01  —  0.01  — 
    Impairment —  —  —  2.01 
    Gain on divestiture of Extract Technology (0.04) —  (0.04) — 
    Tax effect of aforementioned items —  —  0.01  (0.05)
    Adjusted diluted (2021) and basic (2020) earnings per share $0.21  $0.00  $0.27  $(0.05)
             
    Weighted average diluted (2021) and basic (2020) shares outstanding (in thousands) 51,989  52,874  52,472  53,015 

    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 Company’s 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 investor’s understanding of the Company’s operating performance.
    2 Adjusted net income (loss) and adjusted earnings per diluted (2021) and basic (2020) share reflect adjustments for the impact of sales and divestitures, debt transactions, and non-cash impairment, and the related tax effects of these adjustments. Management believes providing adjusted measures and excluding certain items facilitates comparisons to the Company’s prior year periods and, when combined with the GAAP presentation of net income (loss) and diluted (2021) and basic (2020) net income (loss) per share, is beneficial to an investor’s understanding of the Company’s performance.


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

      Six Months Ended June 30,
      2021 2020
    Net cash (used in) provided by operating activities $(13,086) $22,654 
    Capital expenditures (11,063) (10,921)
    Free cash flow1 $(24,149) $11,733 

    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 Company’s 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 investor’s understanding of the Company’s operating performance.


    WABASH NATIONAL CORPORATION
    RECONCILIATION OF ADJUSTED SEGMENT EBITDA1
    AND ADJUSTED SEGMENT EBITDA MARGIN1
    (Unaudited - dollars in thousands)

      Commercial Trailer Products Diversified Products Final Mile Products
    Three Months Ended June 30, 2021 2021 2020 2021 2020 2021 2020
    Income (loss) from operations $32,299  $18,599  $5,824  $2,242  $(3,247) $(6,569)
    Depreciation and amortization 3,211  2,946  3,961  4,613  4,577  3,577 
    Impairment and other, net (4) (1,767) (1,841) —  1  80 
    Adjusted segment EBITDA $35,506  $19,778  $7,944  $6,855  $1,331  $(2,912)
                 
    Adjusted segment EBITDA margin 12.0% 8.5% 10.4% 10.7% 1.6% (5.7)%


      Commercial Trailer Products Diversified Products Final Mile Products
    Six Months Ended June 30, 2021 2021 2020 2021 2020 2021 2020
    Income (loss) from operations $53,164  $34,470  $11,913  $(3,828) $(7,194) $(114,610)
    Depreciation and amortization 6,248  5,679  8,061  9,114  9,141  7,132 
    Impairment and other, net 181  (1,394) (1,413) 10,971  6  95,847 
    Adjusted segment EBITDA $59,593  $38,755  $18,561  $16,257  $1,953  $(11,631)
                 
    Adjusted segment EBITDA margin 11.0% 8.0% 12.3% 11.1% 1.2% (10.5)%

    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 Company’s 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 Stelsel
    Director, Corporate Communications
    (765) 771-5766
    dana.stelsel@wabashnational.com

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


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