Wabash National Corporation Announces First Quarter 2021 Results
Wabash National Corporation, the innovation leader of engineered solutions for the transportation, logistics and distribution industries, reported results for the quarter ended March 31, 2021.
–Revenue of $392.0 million, which is within prior guidance range
–Operating income of $11.2 million and operating margin of 2.9% both show sequential improvement
–Net Income of $3.2 million or earnings per share of $0.06
–Backlog of $1.5 billion up 57% YoY; outperforms normal sequential seasonality
–2021 EPS outlook maintained at $0.75 per diluted share; range of $0.70 to $0.80
Net sales for the first quarter 2021 of $392.0 million increased 1.3% versus the prior year quarter as the Company continued to scale its ability to serve strong customer demand. Consolidated gross profit was $47.2 million, or 12.0% of sales. Operating income was $11.2 million, or 2.9% of sales. Earnings per share was $0.06.
Total Company backlog as of March 31, 2021 was approximately $1.5 billion as new order activity slightly outpaced shipments despite seasonal trends showing a sequential softening in first quarter backlog three of the past five years. Backlog rose 4% compared to December 2020 and was 57% above March 2020.
“During the first quarter, the Wabash team executed well to navigate the unprecedented labor and supply-chain challenges that have impacted our industry in addition to all U.S. manufacturing sectors,” explained Brent Yeagy, president and chief executive officer. “Freight activity in the United States remains exceptionally strong and we are focused on adding the system capacity to support our customers’ demand for equipment now and into the future.”
For the full year ending December 31, 2021, the company increased its sales guidance to $1.95 billion to $2.05 billion and maintained its earnings per diluted share midpoint of $0.75 with a range of $0.70 to $0.80.
“We remain focused on executing on solid demand conditions this year while simultaneously working to secure adequate labor and supply stability in order to achieve strong exit run rates by the end of 2021. We expect to be well positioned to maximize our factory capacity and achieve further operating margin expansion in 2022, particularly as we anniversary strong material cost headwinds in the current year. Our One Wabash approach has our businesses coming together in new and interesting ways and has accelerated conversations with key customers seeking strategic partners for solutions to support transportation, logistics and distribution.”
Business Segment Highlights
The table below is a summary of select segment operating and financial results prior to the elimination of intersegment sales for the first quarter of 2021 and 2020. A complete disclosure of the results by individual segment is included in the tables following this release.
|Diversified Products||Final Mile Products|
|Three Months Ended March 31,||2021||2020||2021||2020||2021||2020|
|(dollars in thousands)|
|New trailers shipped||9,250||8,525||420||625||—||—|
|Gross profit margin||11.0%||9.5%||20.4%||18.3%||8.4%||(0.4)%|
|Income (loss) from operations||$||20,865||$||15,871||$||6,089||$||(6,070)||$||(3,947)||$||(108,041)|
|Income (loss) from operations margin||8.4%||6.3%||8.2%||(7.3)%||(5.1)%||(179.3)%|
|Adjusted income (loss) from operations||$||20,865||$||16,248||$||6,089||$||4,901||$||(3,947)||$||(12,275)|
|Adjusted income (loss) from operations margin||8.4%||6.5%||8.2%||5.9%||(5.1)%||(20.4)%|
Commercial Trailer Products’ net sales for the first quarter were $247.7 million, a decrease of 1.3% as compared to the prior year quarter, as operations scale to meet improved customer demand. Operating income was $20.9 million or 8.4% of sales during the quarter.
Diversified Products’ net sales for the first quarter were $74.0 million, a decrease of 10.8% as compared to the prior year, as operations work to ramp up. Additionally, the revenue decline was influenced by a divestiture completed in the prior year. Operating income was $6.1 million, or 8.2% of sales during the quarter.
Final Mile Products’ net sales for the first quarter totaled $77.1 million, an increase of 27.9% as compared to the prior year, as operations scale to be able to satisfy stronger market demand. Operating loss was $3.9 million during the quarter.
For the complete press release, click here.
About Wabash National Corporation
As the innovation leader of engineered solutions for the transportation, logistics and distribution industries, Wabash National Corporation (NYSE: WNC) is Changing How the World Reaches You™. Headquartered in Lafayette, Indiana, the company’s mission is to enable customers to succeed with breakthrough ideas and solutions that help them move everything from first to final mile. Wabash National designs and manufactures a diverse range of products, including: dry freight and refrigerated trailers, platform trailers, liquid tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade and pharmaceutical equipment. Its innovative products are sold under the following brand names: Wabash National®, Benson®, Brenner® Tank, Bulk Tank International, DuraPlate®, Extract Technology®, Supreme®, Transcraft®, Walker Engineered Products, and Walker Transport. Learn more at www.wabashnational.com.
Dana Stelsel – Director, Corporate Communications – email@example.com – (765) 771-5766
Source: Wabash National Corporation