- Third quarter revenue of
$352M on stable shipment volumes - Completion of
$20M run-rate savings from reorganization actions deliver 13% decremental margins - Net Income turns positive with
$0.07 GAAP EPS or$0.09 adjusted non-GAAP EPS - Substantial improvement in trough financial performance speaks to more resilient business model
- Third quarter backlog increased to
$1 billion showing improved end-market sentiment for 2021
Net sales for the third quarter 2020 were steady compared with prior quarters at
“We are pleased to deliver a profitable quarter that builds upon our purposeful financial management during the first half of 2020. We successfully executed strategic cost reductions that have not only preserved our organization's strength, but have enhanced our company's culture by eliminating silos and allowed us to provide a more seamless experience for customers who purchase across our unmatched portfolio of first to final mile solutions,” said
Operating cash flow was
"Our increased backlog reflects strong underpinnings within the freight markets as rebounding freight activity has contributed to significant gains in spot and contract rates. While we're looking forward to a demand environment that looks poised to improve into 2021, we also remain focused on executing in the final quarter of 2020 completing a year that we expect will demonstrate the benefits of our Company's diversification efforts over the last decade as well as actions over the past two years to significantly strengthen the management system of the Company." continued Yeagy. "Our broadened and synergistic portfolio has resulted in considerable improvement in trough performance across an array of key financial metrics like operating income, EBITDA, and free cash flow."
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 third quarter of 2020 and 2019. 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 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
New trailers shipped | 7,975 | 13,700 | 475 | 750 | — | — | ||||||||||||||||||
Net sales | $ | 226,516 | $ | 380,344 | $ | 72,020 | $ | 93,181 | $ | 55,348 | $ | 113,504 | ||||||||||||
Gross profit | $ | 25,934 | $ | 43,960 | $ | 13,853 | $ | 18,042 | $ | 4,854 | $ | 16,763 | ||||||||||||
Gross profit margin | 11.4% | 11.6% | 19.2% | 19.4% | 8.8% | 14.8% | ||||||||||||||||||
Income (loss) from operations | $ | 19,659 | $ | 36,503 | $ | 4,188 | $ | 7,183 | $ | (4,442) | $ | 4,628 | ||||||||||||
Income (loss) from operations margin | 8.7% | 9.6% | 5.8% | 7.7% | (8.0%) | 4.1% |
Commercial Trailer Products’ net sales for the third quarter were
Diversified Products’ net sales for the third quarter were
Final Mile Products’ net sales for the third quarter totaled
Non-GAAP Measures
In addition to disclosing financial results calculated in accordance with
Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, debt issuance costs expensed within General & administrative expenses related to the closing of the New Term Loan Credit Agreement, impairment and other, net, and other non-operating income and expense (which includes loss on debt extinguishment charges). 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 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 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
Adjusted net income and adjusted earnings per diluted share each reflect adjustments for non-cash impairment and debt transactions, 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 net income (loss) per share, is beneficial to an investor’s understanding of the Company’s performance. A reconciliation of adjusted net income and adjusted earnings per diluted share to net income (loss) and net income (loss) per diluted share is included in the tables following this release.
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.
Third Quarter 2020 Conference Call
About
As the innovation leader of engineered solutions for the transportation, logistics and distribution industries,
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.
Media Contact:
Director, Corporate Communications
(765) 771-5766
dana.stelsel@wabashnational.com
Investor Relations:
Ryan Reed
Director, Investor Relations
(765) 490-5664
ryan.reed@wabashnational.com
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - dollars in thousands)
2020 | 2019 | ||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 215,822 | $ | 140,516 | |||||
Accounts receivable, net | 104,642 | 172,737 | |||||||
Inventories, net | 201,510 | 186,914 | |||||||
Prepaid expenses and other | 44,534 | 41,222 | |||||||
Total current assets | 566,508 | 541,389 | |||||||
Property, plant, and equipment, net | 214,900 | 221,346 | |||||||
204,351 | 311,026 | ||||||||
Intangible assets, net | 173,384 | 189,898 | |||||||
Other assets | 36,939 | 40,932 | |||||||
Total assets | $ | 1,196,082 | $ | 1,304,591 | |||||
Liabilities and Stockholders’ Equity | |||||||||
Current liabilities: | |||||||||
Current portion of long-term debt | $ | 1,500 | $ | — | |||||
Current portion of finance lease obligations | 342 | 327 | |||||||
Accounts payable | 145,393 | 134,821 | |||||||
Other accrued liabilities | 132,556 | 124,230 | |||||||
Total current liabilities | 279,791 | 259,378 | |||||||
Long-term debt | 457,222 | 455,386 | |||||||
Finance lease obligations | 119 | 378 | |||||||
Deferred income taxes | 36,080 | 37,576 | |||||||
Other non-current liabilities | 25,505 | 30,885 | |||||||
Total liabilities | 798,717 | 783,603 | |||||||
Commitments and contingencies | |||||||||
Stockholders’ equity: | |||||||||
Common stock 200,000,000 shares authorized, | 753 | 750 | |||||||
Additional paid-in capital | 641,236 | 638,917 | |||||||
Retained earnings | 106,118 | 221,841 | |||||||
Accumulated other comprehensive losses | (4,135 | ) | (3,978 | ) | |||||
(346,607 | ) | (336,542 | ) | ||||||
Total stockholders' equity | 397,365 | 520,988 | |||||||
Total liabilities and stockholders’ equity | $ | 1,196,082 | $ | 1,304,591 | |||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - dollars in thousands, except per share amounts)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Net sales | $ | 351,584 | $ | 580,908 | $ | 1,077,811 | $ | 1,740,135 | |||||||||||
Cost of sales | 308,390 | 503,173 | 963,553 | 1,506,060 | |||||||||||||||
Gross profit | 43,194 | 77,735 | 114,258 | 234,075 | |||||||||||||||
General and administrative expenses | 22,749 | 25,353 | 68,574 | 82,002 | |||||||||||||||
Selling expenses | 6,510 | 8,998 | 19,394 | 25,715 | |||||||||||||||
Amortization of intangible assets | 5,496 | 5,115 | 16,484 | 15,353 | |||||||||||||||
Impairment and other, net | 31 | — | 105,455 | — | |||||||||||||||
Income (loss) from operations | 8,408 | 38,269 | (95,649 | ) | 111,005 | ||||||||||||||
Other income (expense): | |||||||||||||||||||
Interest expense | (5,749 | ) | (6,713 | ) | (17,903 | ) | (20,823 | ) | |||||||||||
Other, net | (57 | ) | 1,333 | 348 | 2,245 | ||||||||||||||
Other expense, net | (5,806 | ) | (5,380 | ) | (17,555 | ) | (18,578 | ) | |||||||||||
Income (loss) before income tax (benefit) expense | 2,602 | 32,889 | (113,204 | ) | 92,427 | ||||||||||||||
Income tax (benefit) expense | (1,285 | ) | 7,429 | (10,298 | ) | 21,227 | |||||||||||||
Net income (loss) | $ | 3,887 | $ | 25,460 | $ | (102,906 | ) | $ | 71,200 | ||||||||||
Net income (loss) per share: | |||||||||||||||||||
Basic | $ | 0.07 | $ | 0.47 | $ | (1.94 | ) | $ | 1.30 | ||||||||||
Diluted | $ | 0.07 | $ | 0.46 | $ | (1.94 | ) | $ | 1.28 | ||||||||||
Weighted average common shares outstanding (in thousands): | |||||||||||||||||||
Basic | 52,912 | 54,413 | 52,980 | 54,975 | |||||||||||||||
Diluted | 53,380 | 55,019 | 52,980 | 55,502 | |||||||||||||||
Dividends declared per share | $ | 0.08 | $ | 0.08 | $ | 0.24 | $ | 0.24 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - dollars in thousands)
Nine Months Ended | |||||||||
2020 | 2019 | ||||||||
Cash flows from operating activities | |||||||||
Net (loss) income | $ | (102,906 | ) | $ | 71,200 | ||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities | |||||||||
Depreciation | 18,656 | 16,258 | |||||||
Amortization of intangibles | 16,484 | 15,353 | |||||||
Net (gain) loss on sale of property, plant and equipment | (1,669 | ) | (40 | ) | |||||
Loss on debt extinguishment | 219 | 104 | |||||||
Deferred income taxes | (753 | ) | (2,451 | ) | |||||
Stock-based compensation | 2,278 | 7,362 | |||||||
Impairment | 107,114 | — | |||||||
Non-cash interest expense | 807 | 783 | |||||||
Accounts receivable | 68,095 | 9,671 | |||||||
Inventories | (14,596 | ) | (89,869 | ) | |||||
Prepaid expenses and other | (3,086 | ) | (2,368 | ) | |||||
Accounts payable and accrued liabilities | 20,128 | 57,750 | |||||||
Other, net | (3,672 | ) | (7,535 | ) | |||||
Net cash provided by operating activities | $ | 107,099 | $ | 76,218 | |||||
Cash flows from investing activities | |||||||||
Capital expenditures | (13,719 | ) | (22,244 | ) | |||||
Proceeds from the sale of property, plant, and equipment | 2,726 | 785 | |||||||
Net cash used in investing activities | $ | (10,993 | ) | $ | (21,459 | ) | |||
Cash flows from financing activities | |||||||||
Proceeds from exercise of stock options | 44 | 361 | |||||||
Dividends paid | (13,015 | ) | (13,443 | ) | |||||
Borrowings under revolving credit facilities | 45,584 | 446 | |||||||
Payments under revolving credit facilities | (45,584 | ) | (446 | ) | |||||
Principal payments under finance lease obligations | (244 | ) | (230 | ) | |||||
Borrowings under term loan credit facility, net of original issuance discount | 148,500 | — | |||||||
Principal payments under term loan credit facility | (135,228 | ) | (30,470 | ) | |||||
Principal payments against senior notes | (10,000 | ) | — | ||||||
Debt issuance costs paid | (792 | ) | (142 | ) | |||||
Stock repurchases | (10,065 | ) | (22,652 | ) | |||||
Net cash used in financing activities | $ | (20,800 | ) | $ | (66,576 | ) | |||
Cash and cash equivalents: | |||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | $ | 75,306 | $ | (11,817 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 140,516 | 132,690 | |||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 215,822 | $ | 120,873 | |||||
SEGMENTS AND RELATED INFORMATION
(Unaudited - dollars in thousands)
Three Months Ended | Commercial Trailer Products | Diversified Products | Final Mile Products | Corporate and Eliminations | Consolidated | |||||||||||||||||
2020 | ||||||||||||||||||||||
New trailers shipped | 7,975 | 475 | — | — | 8,450 | |||||||||||||||||
Used trailers shipped | 100 | 40 | — | — | 140 | |||||||||||||||||
New Trailers | $ | 215,609 | $ | 37,455 | $ | — | $ | — | $ | 253,064 | ||||||||||||
Used Trailers | 522 | 1,439 | — | — | 1,961 | |||||||||||||||||
Components, parts and service | 9,371 | 16,607 | 3,103 | (2,300 | ) | 26,781 | ||||||||||||||||
Equipment and other | 1,014 | 16,519 | 52,245 | — | 69,778 | |||||||||||||||||
Total net external sales | $ | 226,516 | $ | 72,020 | $ | 55,348 | $ | (2,300 | ) | $ | 351,584 | |||||||||||
Gross profit | $ | 25,934 | $ | 13,853 | $ | 4,854 | $ | (1,447 | ) | $ | 43,194 | |||||||||||
Income (loss) from operations | $ | 19,659 | $ | 4,188 | $ | (4,442 | ) | $ | (10,997 | ) | $ | 8,408 | ||||||||||
2019 | ||||||||||||||||||||||
New trailers shipped | 13,700 | 750 | — | — | 14,450 | |||||||||||||||||
Used trailers shipped | 25 | 10 | — | — | 35 | |||||||||||||||||
New Trailers | $ | 366,938 | $ | 51,697 | $ | — | $ | — | $ | 418,635 | ||||||||||||
Used Trailers | 86 | 417 | — | — | 503 | |||||||||||||||||
Components, parts and service | 10,039 | 23,790 | 4,302 | (5,960 | ) | 32,171 | ||||||||||||||||
Equipment and other | 3,281 | 17,277 | 109,202 | (161 | ) | 129,599 | ||||||||||||||||
Total net external sales | $ | 380,344 | $ | 93,181 | $ | 113,504 | $ | (6,121 | ) | $ | 580,908 | |||||||||||
Gross profit | $ | 43,960 | $ | 18,042 | $ | 16,763 | $ | (1,030 | ) | $ | 77,735 | |||||||||||
Income (loss) from operations | $ | 36,503 | $ | 7,183 | $ | 4,628 | $ | (10,045 | ) | $ | 38,269 |
Nine Months Ended | Commercial Trailer Products | Diversified Products | Final Mile Products | Corporate and Eliminations | Consolidated | |||||||||||||||||
2020 | ||||||||||||||||||||||
New trailers shipped | 24,500 | 1,525 | — | — | 26,025 | |||||||||||||||||
Used trailers shipped | 320 | 110 | — | — | 430 | |||||||||||||||||
New Trailers | $ | 672,263 | $ | 108,943 | $ | — | $ | — | $ | 781,206 | ||||||||||||
Used Trailers | 3,113 | 3,972 | — | — | 7,085 | |||||||||||||||||
Components, parts and service | 28,214 | 64,855 | 9,278 | (17,284 | ) | 85,063 | ||||||||||||||||
Equipment and other | 6,155 | 41,159 | 157,172 | (29 | ) | 204,457 | ||||||||||||||||
Total net external sales | $ | 709,745 | $ | 218,929 | $ | 166,450 | $ | (17,313 | ) | $ | 1,077,811 | |||||||||||
Gross profit | $ | 72,169 | $ | 39,755 | $ | 6,573 | $ | (4,239 | ) | $ | 114,258 | |||||||||||
Income (loss) from operations | $ | 54,129 | $ | 360 | $ | (119,052 | ) | $ | (31,086 | ) | $ | (95,649 | ) | |||||||||
2019 | ||||||||||||||||||||||
New trailers shipped | 40,350 | 2,200 | — | — | 42,550 | |||||||||||||||||
Used trailers shipped | 50 | 60 | — | — | 110 | |||||||||||||||||
New Trailers | $ | 1,078,599 | $ | 146,821 | $ | — | $ | — | $ | 1,225,420 | ||||||||||||
Used Trailers | 236 | 1,743 | — | — | 1,979 | |||||||||||||||||
Components, parts and service | 30,994 | 88,681 | 12,165 | (20,455 | ) | 111,385 | ||||||||||||||||
Equipment and other | 12,424 | 52,610 | 337,005 | (688 | ) | 401,351 | ||||||||||||||||
Total net external sales | $ | 1,122,253 | $ | 289,855 | $ | 349,170 | $ | (21,143 | ) | $ | 1,740,135 | |||||||||||
Gross profit | $ | 126,806 | $ | 58,264 | $ | 51,576 | $ | (2,571 | ) | $ | 234,075 | |||||||||||
Income (loss) from operations | $ | 102,742 | $ | 24,138 | $ | 15,718 | $ | (31,593 | ) | $ | 111,005 |
SEGMENT AND COMPANY FINANCIAL INFORMATION
(Unaudited - dollars in thousands)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Commercial Trailer Products | |||||||||||||||||||
Income from operations | $ | 19,659 | $ | 36,503 | $ | 54,129 | $ | 102,742 | |||||||||||
Adjustments: | |||||||||||||||||||
Impairment | — | — | 377 | — | |||||||||||||||
Adjusted operating income | $ | 19,659 | $ | 36,503 | $ | 54,506 | $ | 102,742 | |||||||||||
Diversified Products | |||||||||||||||||||
Income from operations | 4,188 | 7,183 | 360 | 24,138 | |||||||||||||||
Adjustments: | |||||||||||||||||||
Impairment | — | — | 10,971 | — | |||||||||||||||
Adjusted operating income | 4,188 | 7,183 | 11,331 | 24,138 | |||||||||||||||
Final Mile Products | |||||||||||||||||||
(Loss) income from operations | (4,442 | ) | 4,628 | (119,052 | ) | 15,718 | |||||||||||||
Adjustments: | |||||||||||||||||||
Impairment | — | — | 95,766 | — | |||||||||||||||
Adjusted operating (loss) income | (4,442 | ) | 4,628 | (23,286 | ) | 15,718 | |||||||||||||
Corporate | |||||||||||||||||||
Loss from operations | (10,997 | ) | (10,045 | ) | (31,086 | ) | (31,593 | ) | |||||||||||
Adjustments: | |||||||||||||||||||
Debt transactions | 1,156 | — | 1,156 | — | |||||||||||||||
Adjusted operating loss | (9,841 | ) | (10,045 | ) | (29,930 | ) | (31,593 | ) | |||||||||||
Consolidated | |||||||||||||||||||
Income (loss) from operations | 8,408 | 38,269 | (95,649 | ) | 111,005 | ||||||||||||||
Adjustments: | |||||||||||||||||||
Impairment | — | — | 107,114 | — | |||||||||||||||
Debt transactions | 1,156 | — | 1,156 | — | |||||||||||||||
Adjusted operating income | $ | 9,564 | $ | 38,269 | $ | 12,621 | $ | 111,005 | |||||||||||
RECONCILIATION OF GAAP FINANCIAL MEASURES TO
NON-GAAP FINANCIAL MEASURES
(Unaudited - dollars in thousands, except per share amounts)
Operating EBITDA1: | Three Months Ended | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Net income (loss) | $ | 3,887 | $ | 25,460 | $ | (102,906 | ) | $ | 71,200 | ||||||||
Income tax (benefit) expense | (1,285 | ) | 7,429 | (10,298 | ) | 21,227 | |||||||||||
Interest expense | 5,749 | 6,713 | 17,903 | 20,823 | |||||||||||||
Depreciation and amortization | 12,495 | 10,416 | 35,140 | 31,611 | |||||||||||||
Stock-based compensation | 1,862 | 1,985 | 2,278 | 7,362 | |||||||||||||
Debt issuance costs expensed | 1,156 | — | 1,156 | — | |||||||||||||
Impairment and other, net | 31 | — | 105,455 | — | |||||||||||||
Other, net | 57 | (1,333 | ) | (348 | ) | (2,245 | ) | ||||||||||
Operating EBITDA | $ | 23,952 | $ | 50,670 | $ | 48,380 | $ | 149,978 | |||||||||
Adjusted Net Income2: | Three Months Ended | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Net income (loss) | $ | 3,887 | $ | 25,460 | $ | (102,906 | ) | $ | 71,200 | ||||||||
Adjustments: | |||||||||||||||||
Debt transactions3 | 1,375 | — | 1,375 | — | |||||||||||||
Impairment | — | — | 107,114 | — | |||||||||||||
Tax effect of aforementioned items | (564 | ) | — | (3,350 | ) | — | |||||||||||
Adjusted net income | $ | 4,698 | $ | 25,460 | $ | 2,233 | $ | 71,200 | |||||||||
Adjusted Diluted Earnings Per Share2: | Three Months Ended | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Diluted earnings per share | $ | 0.07 | $ | 0.46 | $ | (1.94 | ) | $ | 1.28 | ||||||||
Adjustments: | |||||||||||||||||
Debt transactions3 | 0.03 | — | 0.03 | — | |||||||||||||
Impairment | — | — | 2.02 | — | |||||||||||||
Tax effect of aforementioned items | (0.01 | ) | — | (0.06 | ) | — | |||||||||||
Adjusted diluted earnings per share | $ | 0.09 | $ | 0.46 | $ | 0.04 | $ | 1.28 | |||||||||
Weighted average diluted shares outstanding (in thousands) | 53,380 | 55,019 | 52,980 | 55,502 | |||||||||||||
1Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, debt issuance costs expensed within General & administrative expenses related to the closing of the New Term Loan Credit Agreement, impairment and other, net, and other non-operating income and expense (which includes loss on debt extinguishment charges).
2Adjusted net income and adjusted diluted earnings per share reflect adjustments for non-cash impairment and debt transactions, and the related tax effects of these adjustments.
3Debt transactions include debt issuance costs within General & administrative expenses related to the closing of the New Term Loan Credit Agreement and loss on debt extinguishment charges included in Other, net.
RECONCILIATION OF FREE CASH FLOW1
(Unaudited - dollars in thousands)
Nine Months Ended | |||||||||
2020 | 2019 | ||||||||
Net cash provided by operating activities | $ | 107,099 | $ | 76,218 | |||||
Capital expenditures | (13,719 | ) | (22,244 | ) | |||||
Free cash flow1 | $ | 93,380 | $ | 53,974 | |||||
1 Free cash flow is defined as net cash provided by operating activities minus capital expenditures.
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 2020 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Income (loss) from operations | $ | 19,659 | $ | 36,503 | $ | 4,188 | $ | 7,183 | $ | (4,442 | ) | $ | 4,628 | ||||||||||||
Depreciation and amortization | 2,858 | 2,701 | 4,828 | 4,462 | 3,850 | 2,861 | |||||||||||||||||||
Impairment and other, net | (168 | ) | — | 18 | — | 182 | — | ||||||||||||||||||
Adjusted segment EBITDA | $ | 22,349 | $ | 39,204 | $ | 9,034 | $ | 11,645 | $ | (410 | ) | $ | 7,489 | ||||||||||||
Adjusted segment EBITDA margin | 9.9 | % | 10.3 | % | 12.5 | % | 12.5 | % | (0.7 | ) | % | 6.6 | % |
Commercial Trailer Products | Diversified Products | Final Mile Products | |||||||||||||||||||||||
Nine Months Ended | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Income (loss) from operations | $ | 54,129 | $ | 102,742 | $ | 360 | $ | 24,138 | $ | (119,052 | ) | $ | 15,718 | ||||||||||||
Depreciation and amortization | 8,536 | 7,917 | 13,942 | 14,095 | 10,982 | 8,474 | |||||||||||||||||||
Impairment and other, net | (1,558 | ) | — | 10,989 | — | 96,028 | — | ||||||||||||||||||
Adjusted segment EBITDA | $ | 61,107 | $ | 110,659 | $ | 25,291 | $ | 38,233 | $ | (12,042 | ) | $ | 24,192 | ||||||||||||
Adjusted segment EBITDA margin | 8.6 | % | 9.9 | % | 11.6 | % | 13.2 | % | (7.2 | ) | % | 6.9 | % |
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.
Source:
2020 GlobeNewswire, Inc., source