World News: 11:30 GMT Friday 12th October 2018. [Wabash National Corporation via Globe Newswire via SPi World News]
LAFAYETTE, Ind., Oct. 12, 2018 (GLOBE NEWSWIRE) -- Wabash National Corporation (the “Company”) (NYSE: WNC), a diversified industrial manufacturer and a leading producer of semi-trailers, truck bodies and liquid transportation systems, today announced certain preliminary results for the quarter ending September 30, 2018. The preliminary results are subject to adjustment and finalization by the Company.
Net sales for the third quarter 2018 are expected to be between $550 million and $555 million compared to $425 million for the prior year quarter. Operating income is expected to be between $15.5 million and $17.5 million compared to $26.6 million for the prior year quarter.
The Company expects net income for the third quarter 2018 to be between $3.5 million and $5.5 million, or between $0.06 and $0.09 per diluted share, compared to the third quarter 2017 net income of $18.9 million, or $0.30 per diluted share. Third quarter 2018 non-GAAP adjusted earnings per diluted share are expected to be between $0.27 and $0.30, compared to the third quarter 2017 non-GAAP adjusted earnings per diluted share of $0.34. Non-GAAP adjusted earnings per diluted share for the third quarter 2018 excludes a non-cash asset impairment charge of $12.0 million associated with the Company’s Diversified Products reporting segment and discrete tax charges incurred related to the deductibility of executive compensation. Non-GAAP adjusted earnings per diluted share for the third quarter of 2017 excluded one-time acquisition expenses of $8.7 million related to the purchase of Supreme Industries, Inc. (“Supreme”) and gains realized on the transition of former branch facilities to third-party dealers.
“The third quarter was a challenging and difficult quarter for the Company as a whole,” explained Brent Yeagy, president and chief executive officer. “All three of our reporting segments faced increasing operating pressures which negatively impacted our financial results. Total new trailer shipments and revenues were below our prior guidance due to our customers’ inability to pick up units as a result of the robust freight market and chassis availability within our Final Mile Products business. On the cost side of the business, higher commodity and component costs impacted the quarterly results as raw material costs continued to escalate. Supplier disruptions increased across the Company during the quarter, most notably within the Final Mile Products segment related to chassis delivery, resulting in production and labor inefficiencies as well as shipment delays. Lastly, labor instability continued to create operating cost pressures at many of our locations. Those labor cost pressures resulted in higher levels of overtime and lower productivity.”
Mr. Yeagy continued, “Despite the tough operating environment and preliminary results reflecting a very challenging third quarter, we continue to see strong overall market demand for our products and we are taking proactive steps to reduce the margin impact of U.S. tariff policy, raw material inflation, supply base disruptions and a very tight labor market for the remainder of 2018 and 2019. As a result, we are maintaining our full-year guidance for 2018 new trailer shipments of 60,000 to 62,000 units, while we are updating our GAAP and non-GAAP earnings to $1.41 to $1.46 per diluted share and $1.50 to $1.55 per diluted share, respectively.”
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.
Adjusted earnings per diluted share for the three-month periods ending September 30, 2018 and 2017 and the twelve-month periods ending December 31, 2018 and 2017 reflect adjustments for charges incurred in connection with the acquisition and integration of Supreme, impairment of goodwill and other long-lived assets, the losses attributable to the Company’s extinguishment of debt, income or losses recognized on the sale of former branch locations and adjustments related to the Company’s deferred tax assets as a result of IRS guidance on application of the Tax Cuts and Jobs Act of 2017. 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 and diluted net income per share, is beneficial to an investor’s understanding of the Company’s performance. A reconciliation of adjusted earnings per diluted share to net income per diluted share is included in the table following this release.
Globe Newswire: 11:30 GMT Friday 12th October 2018
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