Item 2.06 Material Impairments.
On January 10, 2022, the management of Wabash National Corporation (the
"Company") completed its review and approval of the Company's plan for
rebranding as "Wabash." As part of the planning process, the Company assessed
its usage of trade names and brand names in connection with the Company's
long-term growth strategy as One Wabash. Under the plan as approved, the Company
no longer plans to use certain trade names or brand names, and will
predominantly use Wabash (or variations thereof) to refer to the Company. The
decision will result in non-cash impairment charges of approximately $28 million
in the Company's fourth quarter 2021 results related to trade name and trademark
intangible assets associated with the Company's non-Wabash trade names or brand
names. Going forward, the Company anticipates a reduction in related
amortization expense in fiscal year 2022 results of operations of approximately
$2.5 million, which is expected to increase fiscal year 2022 diluted earnings
per share by approximately $0.04 per share. The Company does not expect any
material future cash expenditures related to these impairments.
Forward-Looking Statements
This Current Report on Form 8-K ("Current Report") 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
Current Report other than statements of historical fact are forward-looking
statements. These forward-looking statements include, among other things, all
statements regarding the Company's plan to no longer use certain trade names or
brand names, impairment charges related to trade name and trademark intangible
assets, and the Company's expectation for related material future cash
expenditures. 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 Current Report and in the Company's reports to its
stockholders and periodic reports on Forms 10-K and 10-Q.
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