Form 8-K WABASH NATIONAL CORP For: Jul 26

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):

July 26, 2016

 

Wabash National Corporation

(Exact name of registrant as specified in its charter)

 

Delaware		1-10883		52-1375208
(State or other jurisdiction		(Commission File No.)		(IRS Employer Identification No.)
of incorporation)

  

1000 Sagamore Parkway South, Lafayette, Indiana	47905
(Address of principal executive offices)	(Zip Code)

 

 

Registrant’s telephone number, including area code:
(765) 771-5300

 

 

Not applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

INFORMATION TO BE INCLUDED IN THE REPORT

 

Section 2 – Financial Information

 

Item 2.02 Results of Operations and Financial Condition.

 

On July 26, 2016, Wabash National Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2016. A copy of the Registrant’s press release is attached as Exhibit 99.1 and is incorporated herein by reference.

 

Section 9 – Financial Statements and Exhibits

 

Item 9.01 Financial Statements and Exhibits.

 

(d)      Exhibits:

 

99.1 Wabash National Corporation press release dated July 26, 2016.

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

	WABASH NATIONAL CORPORATION
Date:  July 26, 2016	By:	/s/ Jeffery L. Taylor
		Jeffery L. Taylor Senior Vice President and Chief Financial Officer

 

 

EXHIBIT INDEX

 

Exhibit No.		Description
99.1		Wabash National Corporation Press Release dated July 26, 2016

 

 

Exhibit 99.1

 

Media Contact: Dana Stelsel Corporate Communications Manager (765) 771-5766 [email protected]   Investor Relations: Mike Pettit Vice President, Finance & Investor Relations (765) 771-5581 [email protected]

 

 

 

Wabash National Corporation Announces Second Quarter 2016 Results;

Delivers Best Ever Operating Performance in Company History and Increases Full-Year Outlook

 

·

Second quarter net income per diluted share of $0.53 increases 29 percent over prior year

·

Non-GAAP earnings of $0.55 per diluted share exceeds prior year period by 67 percent

·

Record quarter of operating income totaling $58.9 million increases 40 percent over prior year

·

Record gross margin and operating income margin of 19.3 percent and 12.5 percent, respectively

·

Reports full-year earnings guidance of $1.78 - $1.88 per diluted share representing a year over year improvement of 22 percent at the midpoint of the range

·

Non-GAAP full-year adjusted earnings guidance increases to $1.80 - $1.90 per diluted share representing a year over year improvement of 24 percent at the midpoint of the range

 

LAFAYETTE, Ind. – July 26, 2016 – Wabash National Corporation (NYSE: WNC), a diversified industrial manufacturer and North America’s leading producer of semi-trailers and liquid transportation systems, today reported results for the second quarter ended June 30, 2016.

 

Net income for the second quarter of 2016 was $35.5 million, or $0.53 per diluted share, compared to the second quarter 2015 net income of $28.6 million, or $0.41 per diluted share. Second quarter 2016 non-GAAP adjusted earnings increased $13.0 million, or 55 percent, over the prior year period. Non-GAAP adjusted earnings for the second quarter of 2016 excludes a non-recurring charge of $1.7 million in connection with the Company’s segment realignment announced during the quarter and effective for reporting purposes beginning with the second quarter. Non-GAAP adjusted earnings for the second quarter of 2015 excludes $8.3 million of gains from the sale of two former branch locations and a $0.3 million charge in connection with the refinancing of the Company’s asset based lending facility.

 

Net sales for the second quarter decreased 8 percent to $471 million from $515 million in the prior year quarter while operating income increased 40 percent on improved pricing and operational execution to $58.9 million, compared to $42.1 million for the second quarter of 2015. Operating EBITDA, a non-GAAP measure that excludes the effects of certain recurring and non-recurring items, for the second quarter of 2016 was $72.8 million, an increase of $19.1 million, or 36 percent, compared to operating EBITDA for the prior year period. On a trailing twelve month basis, net sales totaled $2.0 billion, generating Operating EBITDA of $269.2 million, or 13.5 percent of net sales. The continued year-over-year improvement in operating performance is attributable to the successful execution of the Company’s growth and diversification strategies, strong demand within the Commercial Trailer Products segment and outstanding operational execution across the Company’s manufacturing facilities.

 

  

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

 

		Three Months Ended
(Dollars in thousands, except		June 30,				September 30,				December 31,				March 31,				June 30,
per share amounts)		2015				2015				2015				2016				2016
Net Sales		$	514,831			$	531,350			$	543,711			$	447,676			$	471,438
Gross Profit Margin			14.1	%			16.2	%			16.2	%			17.8	%			19.3	%
Income from Operations		$	42,054			$	56,389			$	54,663			$	48,185			$	58,872
Income from Operations Margin			8.2	%			10.6	%			10.1	%			10.8	%			12.5	%
Net Income		$	28,649			$	31,880			$	33,286			$	27,524			$	35,531
Diluted EPS		$	0.41			$	0.47			$	0.50			$	0.42			$	0.53
Non-GAAP Measures(1):
Operating EBITDA		$	53,655			$	68,030			$	68,643			$	59,819			$	72,754
Operating EBITDA Margin			10.4	%			12.8	%			12.6	%			13.4	%			15.4	%
Adjusted Earnings		$	23,586			$	31,880			$	34,138			$	27,831			$	36,610
Adjusted Diluted EPS		$	0.33			$	0.47			$	0.51			$	0.42			$	0.55

Notes:

(1)

See “Non-GAAP Measures” below for explanation of the non-GAAP results included above.

 

Dick Giromini, president and chief executive officer, stated, “Second quarter results represent the best performance in our Company’s history as we set records for gross profit, income from operations and operating EBITDA. In addition, we established new records for gross profit margin and operating income margin of 19.3 percent and 12.5 percent, respectively, far surpassing the previous records set in the first quarter of 2016. The record financial performances of the Company over the past several quarters further demonstrate our commitment to operational excellence leveraging our long-standing expertise in lean manufacturing and process improvements, our continued strategy to favor margin over volume in the core trailer business as well as a strong demand environment within our Commercial Trailer Products segment.”

 

Mr. Giromini continued, “New trailer shipments for the second quarter were approximately 15,900, in-line with our previous guidance of 15,500 to 16,500 trailers driven by strong customer pick-ups. A healthy backlog of $860 million, overall trailer market projections well above replacement levels for the remainder of 2016 and outstanding operational execution across the business, have put us on pace to deliver another record year in 2016, our fifth consecutive year of record performance. As such, we are increasing our full-year adjusted earnings guidance to $1.80 to $1.90 per diluted share, representing a year-over-year improvement of 24 percent at the midpoint of this range.”

 

  

Second Quarter 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 second quarters of 2016 and 2015, respectively. As previously announced, the Company has realigned its reporting segments. The former Retail segment will now be reported within both Commercial Trailer Products and Diversified Products, as applicable. The decision to strategically realign the Retail segment was made to strengthen the alignment between the Company’s manufacturing businesses and its retail sales and service operations, improve profitability and capitalize on growth opportunities. Prior year periods have been restated to reflect this new segment alignment. A complete disclosure of the results by individual segment is included in the tables following this release.

 

(dollars in thousands)		Commercial				Diversified
		Trailer Products				Products
Three months ended June 30,
2016
New trailers shipped			15,350				550
Net sales		$	382,212			$	92,870
Gross profit		$	69,027			$	22,938
Gross profit margin			18.1	%			24.7	%
Income from operations		$	57,135			$	10,258
Income from operations margin			14.9	%			11.0	%
2015
New trailers shipped			16,100				800
Net sales		$	412,664			$	105,306
Gross profit		$	49,040			$	23,687
Gross profit margin			11.9	%			22.5	%
Income from operations		$	39,249			$	9,769
Income from operations margin			9.5	%			9.3	%

 

Commercial Trailer Products’ net sales decreased $30 million, or 7 percent, primarily due to a decline in new trailer shipments of 5 percent as compared to the prior year period related to the timing of customer pick-ups. Despite the lower revenues, gross profit and gross profit margin increased $20.0 million and 620 basis points, respectively, as compared to the same period last year due to continued execution of a pricing strategy committed to favoring margin over volume and operational excellence within our manufacturing facilities. Operating income increased $17.9 million, or 46 percent, from the second quarter last year to $57.1 million.

 

Diversified Products’ net sales decreased $12 million, or 12 percent, primarily the result of lower tank trailer shipments and lower sales of non-trailer truck mounted equipment which was partially offset by increased demand for process systems and composite products as compared with the previous year period. Gross profit and operating income were comparable to the prior year period while gross profit margin and operating margins improved 220 basis points and 170 basis points, respectively, as compared to the prior year as a result of continued strong operational execution and product mix.

 

  

Non-GAAP Measures

In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), the financial information included in this release contains non-GAAP financial measures, including operating EBITDA, operating EBITDA margin, adjusted earnings and adjusted earnings per diluted share.

 

These non-GAAP measures should not be considered a substitute for, or superior to, financial measures and results calculated in accordance with GAAP, including net income, and reconciliations to GAAP financial statements should be carefully evaluated.

 

Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, impairment of goodwill and other intangible assets, and other non-operating income and expense. Management believes operating EBITDA provides useful information to investors regarding the Company’s results of operations. The Company provides this measure because we believe it is useful for investors to understand the Company’s performance period to period with the exclusion of the recurring and non-recurring items identified above. Management believes the presentation of operating EBITDA, when combined with the primary GAAP presentation of operating income, is beneficial to an investor’s understanding of the Company’s operating performance. A reconciliation of operating EBITDA to net income is included in the tables following this release.

 

Adjusted earnings and adjusted earnings per diluted share for the three- and six-month periods ending June 30, 2016 and 2015 reflect adjustments for non-recurring charges incurred in connection with the impairment of goodwill and other intangible assets, losses attributable to the Company’s extinguishment of debt as well as income recognized on sale of former retail branch locations. Management believes providing adjusted measures and excluding certain items facilitates comparisons to the Company’s prior year periods and, when combined with the primary GAAP presentation of net income and diluted net income per share, is beneficial to an investor’s understanding of the Company’s performance.

 

This release also contains guidance for earnings per diluted share that is estimated in accordance with the Company’s expectations of its GAAP results, as well as adjusted earnings per diluted share that excludes non-recurring charges incurred in connection with the impairment of goodwill and other and losses attributable to the Company’s extinguishment of debt. A reconciliation of adjusted earnings and adjusted earnings per diluted share to net income and diluted net income per share, and of the earnings per share guidance for both net income per diluted share and non-GAAP adjusted earnings per diluted share is included in the tables following this release.

 

Second Quarter 2016 Conference Call

Wabash National will conduct a conference call to review and discuss its second quarter results on July 27, 2016, at 10:00 a.m. EDT.  Access to the live webcast will be available on the Company’s website at www.wabashnational.com. For those unable to participate in the live webcast, the call will be archived at www.wabashnational.com within three hours of the conclusion of the live call and will remain available through October 19, 2016. Meeting access also will be available via conference call at 888-771-4371, participant code 42901491.

 

  

About Wabash National Corporation

Headquartered in Lafayette, Indiana, Wabash National Corporation (NYSE: WNC) is a diversified industrial manufacturer and North America’s leading producer of semi-trailers and liquid transportation systems. Established in 1985, the Company manufactures a diverse range of products including: dry freight and refrigerated trailers, platform trailers, bulk tank trailers, dry and refrigerated truck bodies, truck-mounted tanks, intermodal equipment, aircraft refueling equipment, 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^(R), Beall^(R), Benson^(R), Brenner^(R) Tank, Bulk Tank International, DuraPlate^(R), Extract Technology^(R), Garsite, Progress Tank, Transcraft^(R), Walker Engineered Products, and Walker Transport. Visit www.wabashnational.com to learn more.

 

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, the Company’s adjusted earnings guidance for 2016, statements regarding the Company’s outlook for trailer shipments, backlog, expectations regarding demand levels for trailers, non-trailer equipment and our other diversified products, pricing, profitability and earnings, cash flow and liquidity, opportunity to capture higher margin sales, new product innovations, and our growth and diversification strategies. 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 the 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, risks in implementing and sustaining improvements in the Company’s manufacturing capacity and cost containment, dependence on industry trends and timing 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.

 

# # #

 

 

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2016				2015				2016				2015
Net sales		$	471,438			$	514,831			$	919,114			$	952,428
Cost of sales			380,374				442,426				748,524				822,825
Gross profit			91,064				72,405				170,590				129,603
General and administrative expenses			18,495				17,852				37,887				35,903
Selling expenses			7,045				7,184				14,006				13,754
Amortization of intangibles			4,989				5,315				9,978				10,629
Impairment of goodwill			1,663				-				1,663				-
Income from operations			58,872				42,054				107,056				69,317
Other income (expense):
Interest expense			(3,937	)			(4,802	)			(8,032	)			(9,975	)
Other, net			(207	)			8,069				(604	)			2,687
Income before income taxes			54,728				45,321				98,420				62,029
Income tax expense			19,197				16,672				35,365				22,907
Net income		$	35,531			$	28,649			$	63,055			$	39,122
Basic net income per share		$	0.55			$	0.42			$	0.97			$	0.57
Diluted net income per share		$	0.53			$	0.41			$	0.95			$	0.55
Comprehensive income
Net income		$	35,531			$	28,649			$	63,055			$	39,122
Foreign currency translation adjustment			(559	)			56				(656	)			(247	)
Net comprehensive income		$	34,972			$	28,705			$	62,399			$	38,875
Basic net income per share:
Net income applicable to common stockholders		$	35,531			$	28,649			$	63,055			$	39,122
Weighted average common shares outstanding			64,834				67,591				64,936				68,158
Basic net income per share		$	0.55			$	0.42			$	0.97			$	0.57
Diluted net income per share:
Net income applicable to common stockholders		$	35,531			$	28,649			$	63,055			$	39,122
Weighted average common shares outstanding			64,834				67,591				64,936				68,158
Dilutive shares from assumed conversion of convertible senior notes			1,057				2,047				529				1,888
Dilutive stock options and restricted stock			1,224				1,056				1,205				1,076
Diluted weighted average common shares outstanding			67,115				70,694				66,670				71,122
Diluted net income per share		$	0.53			$	0.41			$	0.95			$	0.55

  

 

WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Dollars in thousands)
(Unaudited)
		Commercial				Diversified				Corporate and
Three Months Ended June 30,		Trailer Products				Products				Eliminations				Consolidated
2016
New trailers shipped			15,350				550				-				15,900
Used trailers shipped			300				50				-				350
New Trailers		$	359,763			$	34,229			$	-			$	393,992
Used Trailers			3,427				1,093				-				4,520
Components, parts and service			14,869				31,958				(3,644	)			43,183
Equipment and other			4,153				25,590				-				29,743
Total net external sales		$	382,212			$	92,870			$	(3,644	)		$	471,438
Gross profit		$	69,027			$	22,938			$	(901	)		$	91,064
Income (Loss) from operations		$	57,135			$	10,258			$	(8,521	)		$	58,872
2015
New trailers shipped			16,100				800				-				16,900
Used trailers shipped			600				50				-				650
New Trailers		$	384,442			$	51,236			$	-			$	435,678
Used Trailers			9,226				1,323				-				10,549
Components, parts and service			15,616				30,723				(3,139	)			43,200
Equipment and other			3,380				22,024				-				25,404
Total net external sales		$	412,664			$	105,306			$	(3,139	)		$	514,831
Gross profit		$	49,040			$	23,687			$	(322	)		$	72,405
Income (Loss) from operations		$	39,249			$	9,769			$	(6,964	)		$	42,054
Six Months Ended June 30,
2016
New trailers shipped			29,350				1,050				-				30,400
Used trailers shipped			550				50				-				600
New Trailers		$	701,796			$	64,005			$	-			$	765,801
Used Trailers			7,279				1,994				-				9,273
Components, parts and service			29,070				59,345				(6,297	)			82,118
Equipment and other			8,107				53,815				-				61,922
Total net external sales		$	746,252			$	179,159			$	(6,297	)		$	919,114
Gross profit		$	129,423			$	43,148			$	(1,981	)		$	170,590
Income (Loss) from operations		$	107,392			$	17,247			$	(17,583	)		$	107,056
2015
New trailers shipped			29,550				1,700				-				31,250
Used trailers shipped			900				100				-				1,000
New Trailers		$	691,696			$	105,254			$	-			$	796,950
Used Trailers			13,640				2,492				-				16,132
Components, parts and service			29,619				60,917				(5,823	)			84,713
Equipment and other			6,898				47,783				(48	)			54,633
Total net external sales		$	741,853			$	216,446			$	(5,871	)		$	952,428
Gross profit		$	81,312			$	49,032			$	(741	)		$	129,603
Income (Loss) from operations		$	62,159			$	21,124			$	(13,966	)		$	69,317

  

 

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
		June 30,				December 31,
		2016				2015
		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents		$	187,600			$	178,853
Accounts receivable			131,951				152,824
Inventories			213,016				166,982
Deferred income taxes			-				22,431
Prepaid expenses and other			25,328				8,417
Total current assets		$	557,895			$	529,507
Property, plant and equipment			137,722				140,438
Deferred income taxes			20,500				1,358
Goodwill			148,229				149,718
Intangible assets			104,541				114,616
Other assets			17,706				14,033
		$	986,593			$	949,670
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt		$	2,457			$	37,611
Current portion of capital lease obligations			629				806
Accounts payable			109,388				79,618
Other accrued liabilities			89,115				93,042
Total current liabilities		$	201,589			$	211,077
Long-term debt			277,853				274,885
Capital lease obligations			1,609				1,875
Deferred income taxes			583				1,497
Other noncurrent liabilities			22,719				20,525
Commitments and contingencies			-				-
Stockholders' equity			482,240				439,811
		$	986,593			$	949,670

 

 

WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
		Six Months Ended June 30,
		2016				2015
Cash flows from operating activities
Net income		$	63,055			$	39,122
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation			8,173				8,305
Amortization of intangibles			9,978				10,629
Net loss/(gain) on the sale of assets			17				(8,326	)
Deferred income taxes			1,770				(218	)
Excess tax benefits from stock-based compensation			(605	)			-
Loss on debt extinguishment			487				5,620
Stock-based compensation			5,702				4,539
Impairment of goodwill			1,663				-
Non-cash interest expense			1,830				2,262
Changes in operating assets and liabilities
Accounts receivable			20,873				(7,106	)
Inventories			(46,034	)			(66,756	)
Prepaid expenses and other			(16,911	)			(3,593	)
Accounts payable and accrued liabilities			25,154				57,362
Other, net			1,113				619
Net cash provided by operating activities		$	76,265			$	42,459
Cash flows from investing activities
Capital expenditures			(8,115	)			(5,350	)
Proceeds from the sale of property, plant and equipment			17				13,168
Other, net			-				(10,000	)
Net cash used in investing activities		$	(8,098	)		$	(2,182	)
Cash flows from financing activities
Proceeds from exercise of stock options			1,397				1,847
Excess tax benefits from stock-based compensation			605				-
Borrowings under revolving credit facilities			316				416
Payments under revolving credit facilities			(316	)			(416	)
Principal payments under capital lease obligations			(443	)			(746	)
Proceeds from issuance of term loan credit facility			-				192,845
Principal payments under term loan credit facility			(964	)			(193,327	)
Principal payments under industrial revenue bond			(256	)			(246	)
Debt issuance costs paid			-				(2,467	)
Stock repurchase			(17,698	)			(41,653	)
Convertible senior notes repurchase			(42,061	)			-
Other, net			-				(3,079	)
Net cash used in financing activities		$	(59,420	)		$	(46,826	)
Net increase (decrease) in cash and cash equivalents		$	8,747			$	(6,549	)
Cash and cash equivalents at beginning of period			178,853				146,113
Cash and cash equivalents at end of period		$	187,600			$	139,564

 

 

WABASH NATIONAL CORPORATION
RECONCILIATION OF GAAP FINANCIAL MEASURES TO
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share amounts)
(Unaudited)
Operating EBITDA1:
		Three Months Ended June 30,								Six Months Ended June 30,
		2016				2015				2016				2015
Net income		$	35,531			$	28,649			$	63,055			$	39,122
Income tax expense			19,197				16,672				35,365				22,907
Interest expense			3,937				4,802				8,032				9,975
Depreciation and amortization			8,987				9,482				18,151				18,934
Stock-based compensation			3,232				2,119				5,702				4,539
Impairment of goodwill			1,663				-				1,663				-
Other non-operating (income) expense			207				(8,069	)			604				(2,687	)
Operating EBITDA		$	72,754			$	53,655			$	132,572			$	92,790
			Three Months Ended																Trailing Twelve Months
			September 30, 2015				December 31, 2015				March 31, 2016				June 30, 2016				June 30, 2016
Net income		$	31,880			$	33,286			$	27,524			$	35,531			$	128,221
Income tax expense			19,538				16,578				16,168				19,197				71,481
Interest expense			4,784				4,789				4,095				3,937				17,605
Depreciation and amortization			9,525				9,538				9,164				8,987				37,214
Stock-based compensation			2,116				3,355				2,470				3,232				11,173
Impairment of goodwill			-				-				-				1,663				1,663
Impairment of intangibles			-				1,087				-				-				1,087
Other non-operating (income) expense			187				10				398				207				802
Operating EBITDA		$	68,030			$	68,643			$	59,819			$	72,754			$	269,246
Adjusted Earnings2:
			Three Months Ended June 30,																Six Months Ended June 30,
			2016								2015								2016								2015
			$				Per Share				$				Per Share				$				Per Share				$				Per Share
Net Income		$	35,531			$	0.53			$	28,649			$	0.41			$	63,055			$	0.95			$	39,122			$	0.55
Adjustments:
Branch transactions, net of taxes			-				-				(5,274	)			(0.07	)			-				-				(5,274	)			(0.07	)
Loss on debt extinguishment, net of taxes			-				-				211				-				307				-				3,525				0.05
Impairment of goodwill, net of taxes			1,079				0.02				-				-				1,079				0.02				-				-
Adjusted earnings		$	36,610			$	0.55			$	23,586			$	0.33			$	64,441			$	0.97			$	37,373			$	0.53
Weighted Average # of Diluted Shares O/S			67,115								70,694								66,670								71,122
			Three Months Ended
			September 30, 2015								December 31, 2015								March 31, 2016
			$				Per Share				$				Per Share				$				Per Share
Net Income		$	31,880			$	0.47			$	33,286			$	0.50			$	27,524			$	0.42
Adjustments:
Loss on debt extinguishment, net of taxes			-				-				126				-				307				-
Impairment of goodwill, net of taxes			-				-				-				-				-				-
Impairment of intangibles, net of taxes			-				-				726				0.01				-				-
Branch transactions, net of taxes			-				-				-				-				-				-
Adjusted earnings		$	31,880			$	0.47			$	34,138			$	0.51			$	27,831			$	0.42
Weighted Average # of Diluted Shares O/S			68,042								67,218								66,224
Full Year Earnings Guidance3:
			Range
			Low Estimate				High Estimate
Estimated Full-Year Net Income per Diluted Share			1.78				1.88
Adjustments:
Loss on debt extinguishment, net of taxes			-				-
Impairment of goodwill, net of taxes			0.02				0.02
Estimated Full-Year Adjusted Earnings per Diluted Share		$	1.80			$	1.90

 

¹Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, other operating income and expense and other non-operating income and expense.  

 

²Adjusted earnings and adjusted earnings per diluted share reflect adjustments for non-recurring charges related to losses incurred in connection with the Company’s impairment of goodwill.  Historically, we have also excluded income recognized on the sale of former retail branch locations, as well as charges incurred for extinguishment of debt and impairment of intangible assets.  

 

³Forward-looking estimates of net income per diluted share does not reflect certain future charges and/or credits that are inherently difficult to predict and estimate due to their uncertainty in timing and amount.  This would include but not be limited to losses incurred for extinguishment of debt, sale or impairment of Company assets, gains or losses on transition of branch activities as well as other unknown items at the time of this release.    

 

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