Wabash National Q3 Loss Widens

Press Release

LAFAYETTE, IN-- - Wabash National Corporation (NYSE: WNC) reported sequential operating improvements across several key financial and operating metrics. The Company reported an operating loss of $10.2 million for the third quarter of 2009, compared to an operating loss of $16.7 million for the second quarter of 2009. For the third quarter last year the Company reported an operating loss of $4.5 million. For the nine months ended September 30, the Company reported an operating loss of $54.2 million and $16.5 million for 2009 and 2008, respectively.

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

Operating results for the 2009 third quarter continued the trend of sequential improvement despite the depressed overall demand for new trailers. On a non-GAAP basis, Operating EBITDA (Earnings before interest, taxes, preferred stock dividends, depreciation, amortization, stock based compensation, and other non-operating income and expense; as well as, any other non-cash special charges) improved by over 50% for the second consecutive quarter to a loss of $4.6 million. The continued improvements in operating results and Operating EBITDA are reflective of cost reduction initiatives that have been implemented throughout the year, improved raw material costs, and the impact of improved manufacturing operations achieved from the Lafayette Transformation Project, which eliminated three dry van production lines. A discussion of the Company's use of Operating EBITDA as a non-GAAP measure is included below, and a reconciliation of Operating EBITDA to net loss is provided in the supplemental schedules included in this release.

Dick Giromini, President and Chief Executive Officer, stated, "For the third quarter, our operating loss has now shown improvement for three straight quarters at $10.2 million and Operating EBITDA improved by 57% versus the second quarter to a loss of $4.6 million. In addition, net sales improved for the second straight quarter. We are encouraged by these results despite the challenging demand environment and remain committed to returning the Company to profitability as quickly as possible. These results, combined with enhanced liquidity which as of September 30th was $36 million, give us confidence that we can weather the current cycle and build upon a stronger, more efficient foundation when market conditions improve."

Giromini continued, "Looking ahead, we see several encouraging signs in the macroeconomic landscape. Total manufacturing inventories appear to be bottoming and both tonnage and net trailer orders are incrementally increasing. While the operating environment will likely remain challenging for the near-term, we believe the worst is now behind us."

Financial Results

The Company reported a net loss of $66.4 million, or $2.23 per diluted share, for the third quarter of 2009 on net sales of $88 million. For the same quarter last year, the Company reported a net loss of $4.3 million, or $0.15 per diluted share. Third quarter new trailer sales totaled 3,600 units, which represents a 63% decline from the prior year period. For the nine months ended September 30, 2009, the net loss totaled $112.6 million or $3.77 per diluted share on sales of $252 million. For the comparable period of 2008, the net loss totaled $13.9 million, or $0.47 per diluted share, on sales of $605 million.

Three and nine month results for 2009 include a non-cash charge of $54.0 million related to an increase in the fair value of the warrant issued to Trailer Investments as a part of the Securities Purchase Agreement entered into on July 17, 2009. The increase in the fair value of the warrant was driven by the increase in the Company's stock price during the quarter.

Non-GAAP Measures

In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), the financial information regarding the results of the three and nine month periods ended September 30, 2009 contain the non-GAAP financial measure Operating EBITDA that excludes, among other things, charges incurred in the third quarter of 2009 as a result of the fair value accounting of the Company's outstanding stock warrants of approximately $54 million. The charge associated with these stock warrants are presented separately within Other Income and Expense on the Company's Condensed Consolidated Statements of Operations for the three and nine month periods ended September 30, 2009.

Operating EBITDA should not be considered a substitute for, or superior to, financial measures and results calculated in accordance with GAAP, including net loss, and reconciliations to GAAP financial statements should be carefully evaluated.

Operating EBITDA is defined as earnings before interest, taxes, preferred stock dividends, depreciation, amortization, stock based compensation, and other non-operating income and expense; as well as, any other non-cash special charges (asset impairments). Management believes Operating EBITDA provides useful information to investors regarding our results of operations because it helps us and our investors evaluate the ongoing operating performance of the Company. Management uses Operating EBITDA to evaluate consolidated as well as individual business segment results. Management uses Operating EBITDA when evaluating Company performance because we believe that the exclusion of the recurring and non-recurring items identified above provides management with a basis for assessing Company performance period to period. We also use Operating EBITDA because we believe that it provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Operating EBITDA, when combined with the primary GAAP presentation of operating income, is beneficial to an investor's complete understanding of our operating performance. A reconciliation of Operating EBITDA to net loss is included in the tables following this release.

About Wabash National Corporation

Headquartered in Lafayette, Indiana, Wabash National® Corporation (NYSE: WNC) is one of the leading manufacturers of semi trailers in North America. Established in 1985, the Company specializes in the design and production of dry freight vans, refrigerated vans, flatbed trailers, drop deck trailers, dump trailers, truck bodies and intermodal equipment. Its innovative core products are sold under the DuraPlate®, ArcticLite®, FreightPro™, Eagle®, and Benson™ brand names. The Company operates two wholly owned subsidiaries: Transcraft® Corporation, a manufacturer of flatbed, drop deck and dump trailers as well as truck bodies; and Wabash National Trailer Centers, trailer service centers and retail distributors of new and used trailers and aftermarket parts throughout the U.S.

Source: Wabash national Corporation