Wabash National Corporation (NYSE: WNC) reported 2012 net income of $105.6 million, or $1.53 per diluted share, on net sales of $1.46 billion, compared to net income of $15 million, or $0.22 per diluted share, on net sales of $1.19 billion in 2011.
Results for 2012 included one-time charges of $18.2 million, or $0.27 per diluted share, related to the acquisitions of Walker and certain assets of Beall as well as the income tax benefit from the reversal of the company’s valuation allowance against its net deferred tax assets. Excluding the impact of these items, non-GAAP adjusted earnings for 2012 were $64.8 million, or $0.95 per diluted share. Results for 2011 included a one-time charge of $0.7 million, or $0.01 per diluted share, related to the early extinguishment of the company’s prior revolving credit facility.
Net income in the fourth quarter of 2012 was $80.2 million, or $1.16 per diluted share, on net sales of $416 million. The fourth-quarter results included a $59 million, or $0.86 per diluted share, income tax benefit primarily related to the reversal of the company’s valuation allowance against its net deferred tax assets. Excluding the income tax benefit and other one-time charges of $0.5 million related to the acquisitions of Walker Group Holdings on May 8, 2012 and certain assets of Beall Corporation on February 4, 2013, non-GAAP adjusted earnings were $21.7 million, or $0.32 per diluted share for the quarter as compared to $7.5 million, or $0.11 per diluted share, on net sales of $342 million for the fourth quarter of 2011.
For the second consecutive quarter, the company reported a record level of income from operations totaling $29.2 million for the fourth quarter of 2012, compared to income from operations of $8.4 million for the fourth quarter of 2011.
On a non-GAAP basis, the company’s Operating EBITDA, which excludes the effects of certain costs related to the Walker acquisition and Beall asset purchase, improved to $38.8 million in the fourth quarter of 2012 compared to $13.7 million in the prior year period. Full year 2012 Operating EBITDA of $118.5 million represents an increase of $79.7 million, or 206%, compared to 2011 while new trailer shipments decreased approximately 2,000 units.
The year-over-year increase in Operating EBITDA is a result of the company’s efforts to improve pricing and margins in the Commercial Trailer Products segment and a result of the efforts to diversify the company into more stable, higher margin product lines in our Diversified Products segment.
“The execution of our long-term strategy, which is focused on profitable growth, margin improvement through operational excellence initiatives, reducing the volatility of our operating results through diversification initiatives as well as improved balance sheet strength, continues to result in considerable momentum throughout our business,” said Dick Giromini, president and chief executive officer.
“It was a tremendous year of transformation for Wabash National, which is highlighted in the year-over-year improvement in our financial results, including both top and bottom-line expansion, and the achievement of record or near-record highs in several key financial metrics. Specifically, 2012 net sales of $1.5 billion set a company record, while gross margin of 11.2% represents the highest level since 2004 and a year-over-year improvement of 560 basis points or double last year’s performance.
“New Trailer shipments of 45,600 for the year were slightly below our prior guidance of 46,000 to 48,000 units which was partially mitigated by the continued strong demand for our non-trailer products during the quarter. As we look forward to 2013 with a healthy backlog of orders totaling $666 million, a trailer demand forecast above replacement levels for the second consecutive year driven by key drivers such as fleet age and size, customer profitability, used trailer values and regulatory compliance, a full year of Walker in the portfolio as well as our continued efforts to optimize our manufacturing processes while also remaining selective in our order acceptance, we believe 2013 has the potential to be another record year for Wabash National.”