Wabash Posts Higher Q3 Financials, Announces Name Change
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Wabash, formerly known as Wabash National Corp., notched higher net income and revenue in the third quarter, citing increased shipments of new trailers, while its all-time high $1.9 billion backlog of orders rose 87% compared with a year earlier.
Net income for the period ended Sept. 30 was $11 million, or 22 cents per diluted share, compared with $3.8 million, 7 cents, a year earlier.
“Generating earnings per share exceeding our prior outlook speaks to our employees’ agile performance and this management team’s ability to provide credible guidance,” Wabash CEO Brent Yeagy said.
Yeagy
In the earnings call, Yeagy announced the name change, and the company will use it to market its products going forward. Its stock symbol on the New York Stock Exchange will remain WNC.
“The decision to drop ‘National’ from our name on the surface may seem insignificant, is in fact a powerful change and symbolic of key changes we have made as one Wabash and will continue to make on our growth journey,” Yeagy said during the earnings call.
Revenue reached $482.5 million compared with $351.5 million in the 2020 period, the Lafayette, Ind.-based trailer maker reported.
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Its transportation solutions segment had net income of $442.6 million, an increase of 44% compared with a year earlier, as operations scaled to meet customer demand, the company noted.
The segment shipped 12,455 trailers compared with 8,485 a year earlier, and 3,780 truck bodies compared with 3,600 in the 2020 period.
Revenue in its parts and service was $41.9 million, a decrease of 11.3% compared with the 2020 period, primarily due to the divestiture of Extract Technology on June 30.
Wabash sold the business to Lausanne, Switzerland-based Dietrich Engineering Consultants. Extract Technology, based in Huddersfield, United Kingdom, is a leading worldwide supplier of containment and aseptic systems for the pharmaceutical, health care, biotech and chemical markets.
Extract Technology joined Wabash National in 2012 as part of the Walker Group Holdings acquisition. Extract Technology represented approximately $22 million of sales in 2020 and was reported within Wabash National’s diversified products segment.
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At the time of the sale, Wabash Chief Financial Officer Mike Pettit said, “With the sale of Extract Technology, which comes on the heels of divesting Beall tank trailers and our last remaining Wabash National Trailer Center retail branch, we are confident our portfolio of businesses is well-structured to support our strategic growth initiatives in the areas of home delivery, cold chain and upfitting, and parts and services,” Pettit added.
Yeagy said during the call that Wabash forecast an initial EPS outlook of $1.70 for all of 2022.
He said that was dependent on “little change in labor and supply chain conditions, the combination of a stronger jumping off point in build rates and a hard reset on pricing within our 2022 order book.”
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