Wabash Reports Q4 Net Loss, Higher Revenue
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Wabash reported a net loss and increased revenue in the fourth quarter as the supply chain continued to struggle to support its production activity, temporarily causing acute disruptions within certain product lines.
Additionally, employee absenteeism spiked in November and December due to the omicron variant of the coronavirus.
The company also announced it unified its brands under the Wabash banner and retired its legacy brand names.
The company, formerly Wabash National Corp., will retain the WNC stock symbol on the New York Stock Exchange.
For the quarter ended Dec. 31, it reported a net loss of $25.3 million, or negative 51 cents per share, on revenue of $479.2 million.
Adjusting for debt transactions costs and non-cash impairment of trade names and trademarks, the fourth quarter posted net income was $3.7 million, or 7 cents, on a non-GAAP basis, Wabash noted. That compared with net income of $5.4 million, 10 cents, on revenue of $404 million a year earlier.
The company is adding dry van production capacity.
Yeagy
“It is key to the growth of our entire portfolio through customer cross-selling opportunities, and strategically positions Wabash for the next decade, rather than just capitalizing on strong market conditions over the next few years,” Wabash CEO Brent Yeagy said during the earnings call.
The Lafayette, Ind.-based company reported a record backlog of $2.5 billion — up 70% year-over-year and 31% from third quarter.
Its van production is fully booked for 2022.
“Our other transportation solutions segment products [including platform and tank trailers] score higher than normal backlog, which continues to indicate disruptive market-demand conditions for 2022,” Yeagy added.
He said any backlog slippage with orders from 2021 would be contained to first-quarter 2022.
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“We will continue to maintain a forward-looking posture by collaborating with customers on longer-term deals to include 2023,” he said.
New trailers shipped in the quarter rose to 11,655 compared with 10,585 a year earlier.
New truck bodies shipped dipped to 3,230 compared with 3,300 in the 2020 period.
Used trailers shipped fell to 25 compared with 170 a year earlier.
Its transportation solutions segment’s revenue for the fourth quarter was $443.1 million, an increase of 22.7% compared with a year earlier, with Wabash citing strong customer demand and improving rates of production.
Its parts and services segment’s revenue for the fourth quarter fell to $38.1 million, a decrease of 15.2% compared with the 2020 quarter, primarily due to the divestiture of Extract Technology on June 30, according to the company. At the time of that sale, Wabash reported Extract represented approximately $22 million of sales in 2020.
For the full year, net income increased to $1.1 million, 2 cents, on revenue of $1.8 billion. That compared with a net loss of $97.4 million, negative $1.84, on revenue of $1.48 billion in the 2020 period.
The company issued guidance for 2022 of $2.3 billion in sales and earnings per diluted share of at least $1.75.
“While our financial outlook assumes no improvement in supply chain conditions, other known changes including hiring activity and the initiation of pass-through pricing on commodities ensure a new level of margin stability and earnings per share certainty for Wabash in 2022,” Yeagy said. “Longer-term we remain focused on bringing new products and technologies to market, building out adjacent revenue streams and growing beyond the equipment cycle.”
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