Wabash National (WNC) Misses Q4 EPS by 1c, Revenues Miss

Wabash National (NYSE: WNC) reported Q4 EPS of ($0.04), $0.01 worse than the analyst estimate of ($0.03). Revenue for the quarter came in at $387.07 million versus the consensus estimate of $418.46 million.

• First Quarter GAAP Earnings Per Share of $(2.01) or non-GAAP Adjusted Earnings Per Share of $(0.04)
• First Quarter Backlog of $1.0 billion shows relative stability
• Strong liquidity position, patient debt structure with no financial covenants at present borrowing levels
• Capital allocation focused on liquidity, maintaining dividend and debt reduction
• Strategy deployment being accelerated during pandemic, new organizational structure takes shape

Net sales for the first quarter 2020 were $387 million as customer pickups of equipment trailed expectations. Operating loss was $110 million principally driven by goodwill impairment of $107 million during the quarter, while non-GAAP adjusted operating loss was $2.9 million resulting from lower revenue and previously anticipated manufacturing inefficiencies in the company's Final Mile segment compounded by the initial impact of COVID-19. GAAP earnings per share was $(2.01) while non-GAAP earnings per share was $(0.04) for the quarter.

Total Company backlog ending March 2020 was approximately $1.0 billion compared to backlog of $1.1 billion ending December 2019.

“While the environment we encountered during the first quarter began as expected, the end of the quarter did not align to anyone's plans. Our primary objective has been the safety and well-being of our employees. Thanks to their dedication and rapid adaptation to working under social distancing protocols, we have continued to support our customers' equipment needs as they facilitate the movement of essential goods throughout our nation's economy. The COVID-19 pandemic is sure to have a significant impact on the economy in 2020, though we have been encouraged by the relative stability of our backlog through this time,” explained Brent Yeagy, president and chief executive officer.

Liquidity as of the end of the first quarter was $277 million with cash of $155 million and available borrowings of $122 million. The company's nearest debt maturity, amounting to $135 million, is in March of 2022. Additionally, the Company's debt carries no financial covenants at present borrowing levels.

"Over the last several years we have been preparing the company for an eventual downturn in our end markets and have taken steps to fortify our balance sheet by building cash, repaying debt and ensuring credit availability. These steps have positioned us well to successfully navigate this extraordinary time, while the continued execution of our strategic plan during this period will allow us to emerge stronger," continued Yeagy. "While we are diligently managing our cash position, the resilience we are seeing in our business allows us to maintain our dividend and evaluate opportunities for further debt reduction."

For earnings history and earnings-related data on Wabash National (WNC) click here.

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