Wabash National Corporation Announces Third Quarter 2013 Results

Achieves Record Quarterly Net Sales, Operating Income and Operating EBITDA; GAAP EPS of $0.23 and Non-GAAP Adjusted EPS of $0.24 per Diluted Share

Marketwired

LAFAYETTE, IN--(Marketwired - Oct 29, 2013) - Wabash National Corporation (NYSE: WNC) reported third quarter 2013 net income of $16.2 million, or $0.23 per diluted share on net sales of $440 million compared to third quarter 2012 net income of $18.4 million, or $0.27 per diluted share on net sales of $406 million. The Company's third quarter 2013 results include the impact of an early extinguishment of debt charge related to a $20 million term loan prepayment made in September 2013 as well as other non-recurring acquisition expenses, totaling $0.6 million. Excluding the impact of these items, non-GAAP adjusted earnings for the quarter ended September 30, 2013 were $16.6 million, or $0.24 per diluted share. In comparison, the non-GAAP adjusted earnings for the quarter ended September 30, 2012 were $20.9 million, or $0.30 per diluted share, which excluded the impact of non-recurring charges related to the Company's acquisition of Walker Group Holdings LLC ("Walker"), totaling $2.4 million. If the tax rate used in computing prior period results was 40.0 percent, consistent with the current period, non-GAAP earnings per share for the third quarter of 2012 would have been lower by $0.11 per diluted share.

The Company reported operating income totaling $33.8 million for the third quarter of 2013, compared to operating income of $27.2 million for the third quarter of 2012. Non-GAAP operating EBITDA, which excludes the effects of costs related to the acquisitions of Walker and certain assets of Beall, as well as other recurring and non-recurring items, for the third quarter of 2013 was $44.9 million, an improvement of $7.2 million compared to the previous year period. On a trailing twelve months basis, the Company's net sales increased to approximately $1.59 billion, generating operating EBITDA of $153.1 million, or 9.6 percent of net sales. The improvement in operating performance is attributed to the successful execution of the Company's growth strategy and disciplined approach to improving profitability, including an improved mix of higher-margin trailer orders driven by its focus on margin over volume, diversification into higher-margin opportunities through the acquisitions of Walker and certain assets of Beall as well as organic growth of the Diversified Products Group, and operational improvements in the manufacturing facilities.

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

     
    Three Months Ended

(Dollars in thousands)
  September 30,
2012
      December 31,
2012
      March 31,
2013
      June 30,
2013
      September 30,
2013
   
                                                   
Net Sales   $ 405,917       $ 415,847       $ 324,229       $ 413,126       $ 439,977    
                                                   
Gross Profit Margin     12.3 %       13.1 %       13.0 %       14.2 %       14.0 %  
                                                   
Income from Operations   $ 27,236   (1)   $ 29,231   (1)   $ 14,856   (1)   $ 30,452   (1)   $ 33,830   (1)
                                                   
Net Income   $ 18,441   (1)   $ 80,184   (1) (2)   $ 5,735   (1)   $ 14,135   (1)   $ 16,236   (1)
                                                   
Diluted EPS   $ 0.27       $ 1.16       $ 0.08       $ 0.20       $ 0.23    
                                                   
Non-GAAP Measures(3):                                                  
Operating EBITDA   $ 37,695       $ 38,834       $ 27,134       $ 42,246       $ 44,873    
                                                   
Operating EBITDA Margin     9.3 %       9.3 %       8.4 %       10.2 %       10.2 %  
                                                   
Adjusted Earnings   $ 20,887       $ 21,678       $ 6,106       $ 14,697       $ 16,616    
                                                   
Adjusted Diluted EPS   $ 0.30       $ 0.32       $ 0.09       $ 0.21       $ 0.24    
                                                   
Notes:
  (1) Quarterly Income from Operations and Net Income include charges of $2.4 million, $0.5 million, $0.6 million, $0.2 million and less than $0.1 million for the quarterly periods beginning with the third quarter of 2012 and ending with the third quarter of 2013, respectively, in connection with the Company's acquisitions of Walker and certain assets of Beall.
  (2) Net income for the fourth quarter of 2012 includes an income tax benefit of $59.0 million primarily related to the reversal of a U.S. valuation allowance against its deferred tax assets.
  (3) See "Non-GAAP Measures" below for explanation of the non-GAAP results included above.

Dick Giromini, president and chief executive officer, stated, "We are extremely pleased with the financial and operating results across all our strategic segments. The record performances achieved in the third quarter again validate the significant progress we have made in our long-term strategy to transform Wabash National into a diversified manufacturer while continuing to implement operational improvements throughout the business and further enhance our long-term margin and growth profile through the integration of strategic acquisitions. In particular, our Commercial Trailer Products segment reported another strong quarter achieving our highest levels of gross profit and profit margin since the second quarter of 2007. In addition, our Diversified Products segment, representing higher-margin specialty products, achieved near record levels for both net sales and gross profit as we continue to realize benefits from both our organic and strategic diversification efforts."

Mr. Giromini continued, "New trailer shipments for the third quarter were approximately 12,600, consistent with our previous guidance of 12,500 to 13,500 trailers. We anticipate continued strong demand for our products as well as an improvement in customer pickups during the fourth quarter with full year trailer shipments forecast to be between 46,000 and 47,000 units. As expected, our backlog decreased sequentially but remains at a seasonally healthy level of approximately $563 million as of September 30, 2013. Longer term, we believe the demand environment for trailers remains strong as fleet age, customer profitability, used trailer values, regulatory compliance and access to financing all support continued demand for new trailers."

Third 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 third quarter of 2013 and 2012, respectively. A complete disclosure of the results by individual segment is included in the tables following this release.

                   
(dollars in thousands)
 
 
 
Commercial
Trailer Products
 
 
 
 
Diversified
Products
 
 
 
 
 
Retail
 
 
Three months ended September 30,                        
  2013                        
New trailers shipped     11,700       800       800  
Net sales   $ 293,510     $ 132,131     $ 45,996  
Gross profit   $ 23,619     $ 31,314     $ 5,225  
Gross profit margin     8.0 %     23.7 %     11.4 %
Income from operations   $ 17,323     $ 18,538     $ 743  
Income from operations margin     5.9 %     14.0 %     1.6 %
                         
  2012                        
New trailers shipped     11,400       700       900  
Net sales   $ 281,131     $ 108,876     $ 47,633  
Gross profit   $ 20,342     $ 24,188     $ 5,256  
Gross profit margin     7.2 %     22.2 %     11.0 %
Income from operations   $ 14,634     $ 14,867     $ 1,400  
Income from operations margin     5.2 %     13.7 %     2.9 %
                         

Commercial Trailer Products' net sales increased $12 million or 4.4 percent, on 11,700 trailers, or 300 more trailers than the prior year period. This increase was primarily due to the increase in trailer shipments during the quarter as well as the Company's continued efforts to improve product pricing and recapture lost margins. The Company's average selling prices increased $200, or 0.9 percent compared to the prior year period. As a result, gross margin improved 80 basis points to 8.0 percent compared to the prior year period. Operating income increased to $17.3 million, or $2.7 million higher than the third quarter last year due to improved pricing and continued operational improvements.

Diversified Products' net sales increased $23 million, or 21.4 percent, driven by the continued strong demand for both our composite and Walker product offerings, as well as the acquisition of certain assets of Beall earlier this year. Gross profit improved $7.1 million compared to the prior year period, while gross margin increased 150 basis points from 22.2 percent to 23.7 percent, primarily attributed to the favorable mix of products within our composite product offerings. Operating income increased 24.7 percent, or $3.7 million, as compared to the same period last year, primarily due to increased net sales. 

Retail's net sales decreased $2 million, or 3.4 percent, primarily due to a 100 unit decrease in new trailer shipments. However, gross profit margins improved 40 basis points to 11.4 percent as a larger percentage of net sales was generated from higher margin parts and services activities. Operating income decreased $0.7 million during the third quarter of 2013 as compared to the same period last year due to lower net sales and higher selling and administrative expenses.

Term Loan Voluntary Partial Prepayment

The Company made its second voluntary term loan partial prepayment in the amount of $20 million on September 25. At current interest rate levels, these partial payments in addition to the closing of the amendment and repricing of the term loan facility in May 2013, have successfully reduced the Company's annual cash interest costs by approximately $6 million. Jeff Taylor, vice president and acting chief financial officer commented, "We are pleased with our strong financial performance and our ability to generate cash flow which provided us the flexibility to voluntarily prepay a portion of our outstanding balances on our term loan facility. As we have previously stated, managing our capital structure is a priority and the third quarter debt payment, our second $20 million voluntary prepayment of 2013, demonstrates our continued commitment to execute against our plan." 

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 contain 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, and other non-operating income and expense, as well as certain charges in connection with the Company's acquisitions of Walker and certain assets of Beall. Management believes Operating EBITDA provides useful information to investors regarding our results of operations. The Company provides this measure because we believe it is useful for investors to understand our 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 reflect adjustments for non-recurring charges related to the Company's acquisitions of Walker and certain assets of Beall, the impact of the release of the valuation allowances recorded against the Company's net deferred tax assets as well as one-time costs related to losses incurred on the early extinguishment of debt for the term loan prepayments made in May and September 2013. Management believes providing this measure and excluding the impact of the non-recurring expenses attributable to the acquisitions of Walker and certain assets of Beall, the impact of the release of the valuation allowances and early extinguishment of debt costs 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. A reconciliation of adjusted earnings and adjusted earnings per diluted share to net income and diluted net income per share is included in the tables following this release.

Third Quarter 2013 Conference Call

Wabash National will conduct a conference call to review and discuss its third quarter results on October 30, 2013, 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 January 22, 2014. Meeting access also will be available via conference call at 888-771-4371, participant code 35893120.

About Wabash National Corporation

Headquartered in Lafayette, Indiana, Wabash National Corporation (NYSE: WNC) is a diversified manufacturer and North America's leading producer of semi trailers and liquid transportation systems. Established in 1985, the Company specializes in the design and production of dry freight vans, refrigerated vans, platform trailers, intermodal equipment, liquid tank trailers, frac tanks, engineered products, and composite products. Wabash National operates three wholly-owned subsidiaries: Transcraft Corporation, Walker Group Holdings LLC, and Wabash National Trailer Centers, Inc. Its innovative products are sold under the following brand names: Wabash National®, Transcraft®, Benson®, DuraPlate®, ArcticLite®, Walker Transport, Walker Stainless Equipment, Walker Defense Group, Walker Barrier Systems, Walker Engineered Products, Brenner® Tank, Garsite, Progress Tank, TST, Bulk Tank International, Beall® and Extract Technology®. To learn more, visit www.wabashnational.com.

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, statements regarding our outlook for new trailer shipments and Operating EBITDA, backlog, expectations regarding trailer demand levels, improved profitability and earnings capacity, ability to manage the capital structure, customer pickup expectations, opportunity to capture higher margin sales, and the benefits of the acquisitions of Walker and certain assets of Beall. 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 demand expectations may not result in order increases for us, 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 our manufacturing capacity and cost containment, dependence on industry trends and timing, costs of indebtedness incurred in connection with the acquisition of Walker and the failure to achieve the benefit of the Walker acquisition and Beall asset purchase. 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
September 30,
    Nine Months Ended
September 30,
 
    2013     2012     2013     2012  
                                 
Net sales   $ 439,977     $ 405,917     $ 1,177,332     $ 1,046,007  
Cost of sales     378,480       355,843       1,014,796       936,523  
  Gross profit     61,497       50,074       162,536       109,484  
                                 
General and administrative expenses     14,559       12,548       43,208       30,870  
Selling expenses     7,628       7,134       23,029       16,112  
Amortization of intangibles     5,454       2,984       16,278       7,175  
Acquisition expenses     26       172       883       14,074  
Income from operations     33,830       27,236       79,138       41,253  
                                 
Other income (expense):                                
  Interest expense     (6,252 )     (7,760 )     (20,364 )     (13,934 )
  Loss on debt extinguishment     (605 )     -       (1,304 )     -  
  Other, net     -       211       2,604       151  
  Income before income taxes     26,973       19,687       60,074       27,470  
Income tax expense     10,737       1,246       23,968       2,023  
Net income   $ 16,236     $ 18,441     $ 36,106     $ 25,447  
Basic net income per share   $ 0.24     $ 0.27     $ 0.52     $ 0.37  
Diluted net income per share   $ 0.23     $ 0.27     $ 0.52     $ 0.37  
                                 
Comprehensive income                                
  Net income   $ 16,236     $ 18,441     $ 36,106     $ 25,447  
  Foreign currency translation adjustment     191       207       (152 )     313  
Net comprehensive income   $ 16,427     $ 18,648     $ 35,954     $ 25,760  
                                 
                                 
Basic net income per share:                                
  Net income applicable to common stockholders   $ 16,236     $ 18,441     $ 36,106     $ 25,447  
  Undistributed earnings allocated to participating securities     (117 )     (166 )     (293 )     (218 )
  Net income applicable to common stockholders excluding amounts applicable to participating securities   $ 16,119     $ 18,275     $ 35,813     $ 25,229  
  Weighted average common shares outstanding     68,487       68,357       68,442       68,308  
  Basic net income per share   $ 0.24     $ 0.27     $ 0.52     $ 0.37  
                                 
Diluted net income per share:                                
  Net income applicable to common stockholders   $ 16,236     $ 18,441     $ 36,106     $ 25,447  
  Undistributed earnings allocated to participating securities     (117 )     (166 )     (293 )     (218 )
  Net income applicable to common stockholders excluding amounts applicable to participating securities   $ 16,119     $ 18,275     $ 35,813     $ 25,229  
                                   
  Weighted average common shares outstanding     68,487       68,357       68,442       68,308  
  Dilutive stock options and restricted stock     524       159       458       234  
  Diluted weighted average common shares outstanding     69,011       68,516       68,900       68,542  
  Diluted net income per share   $ 0.23     $ 0.27     $ 0.52     $ 0.37  
                                 
                                 
                                 
WABASH NATIONAL CORPORATION
SEGMENTS AND RELATED INFORMATION
(Dollars in thousands)
(Unaudited)
                       
                       
Three Months Ended September 30,   Commercial Trailer Products   Diversified Products   Retail   Corporate and Eliminations     Consolidated
  2013                                
New trailers shipped     11,700     800     800     (700 )     12,600
Used trailers shipped     1,000     -     400     -       1,400
                                 
New Trailers   $ 280,006   $ 55,997   $ 20,899   $ (16,988 )   $ 339,914
Used Trailers     9,092     792     3,442     -       13,326
Components, parts and service     1,186     30,212     20,674     (4,148 )     47,924
Equipment and other     3,226     45,130     981     (10,524 )     38,813
  Total net external sales   $ 293,510   $ 132,131   $ 45,996   $ (31,660 )   $ 439,977
                                 
Gross profit   $ 23,619   $ 31,314   $ 5,225   $ 1,339     $ 61,497
Income (Loss) from operations   $ 17,323   $ 18,538   $ 743   $ (2,774 )   $ 33,830
                                 
  2012                                
New trailers shipped     11,400     700     900     (900 )     12,100
Used trailers shipped     1,000     -     400     -       1,400
                                 
New Trailers   $ 270,871   $ 51,546   $ 23,925   $ (21,044 )   $ 325,298
Used Trailers     7,644     1,007     3,903     -       12,554
Components, parts and service     990     17,755     18,737     (4,002 )     33,480
Equipment and other     1,626     38,568     1,068     (6,677 )     34,585
  Total net external sales   $ 281,131   $ 108,876   $ 47,633   $ (31,723 )   $ 405,917
                                 
Gross profit   $ 20,342   $ 24,188   $ 5,256   $ 288     $ 50,074
Income (Loss) from operations   $ 14,634   $ 14,867   $ 1,400   $ (3,665 )   $ 27,236
                                 
Nine Months Ended September 30,                                
  2013                                
New trailers shipped     30,400     2,200     2,300     (2,300 )     32,600
Used trailers shipped     2,400     100     1,000     -       3,500
                                 
New Trailers   $ 723,659   $ 150,750   $ 60,706   $ (52,790 )   $ 882,325
Used Trailers     20,407     2,412     9,752     (5 )     32,566
Components, parts and service     6,603     85,035     60,862     (10,387 )     142,113
Equipment and other     6,751     141,417     3,655     (31,495 )     120,328
  Total net external sales   $ 757,420   $ 379,614   $ 134,975   $ (94,677 )   $ 1,177,332
                                 
Gross profit   $ 56,376   $ 88,986   $ 15,624   $ 1,550     $ 162,536
Income (Loss) from operations   $ 37,197   $ 51,320   $ 2,877   $ (12,256 )   $ 79,138
                                 
  2012                                
New trailers shipped     33,500     1,200     1,900     (2,100 )     34,500
Used trailers shipped     2,300     100     1,200     -       3,600
                                 
New Trailers   $ 778,611   $ 72,554   $ 50,329   $ (47,942 )   $ 853,552
Used Trailers     16,617     1,300     11,634     -       29,551
Components, parts and service     2,665     57,604     46,876     (9,637 )     97,508
Equipment and other     7,347     81,129     2,086     (25,166 )     65,396
  Total net external sales   $ 805,240   $ 212,587   $ 110,925   $ (82,745 )   $ 1,046,007
                                 
Gross profit   $ 50,919   $ 47,194   $ 11,868   $ (497 )   $ 109,484
Income (Loss) from operations   $ 34,557   $ 29,335   $ 2,554   $ (25,193 )   $ 41,253
                                 
                                 
                                 
WABASH NATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
         
    September 30,   December 31,
    2013   2012
    (Unaudited)    
ASSETS
Current assets            
  Cash   $ 65,880   $ 81,449
  Accounts receivable     130,086     96,590
  Inventories     239,606     189,487
  Deferred income taxes     36,979     42,330
  Prepaid expenses and other     3,951     8,239
    Total current assets   $ 476,502   $ 418,095
             
Property, plant and equipment     139,735     132,146
             
Deferred income taxes     4,614     21,894
             
Goodwill     150,277     146,444
             
Intangible assets     164,559     171,990
             
Other assets     10,141     12,057
    $ 945,828   $ 902,626
             
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities            
  Current portion of long-term debt   $ 3,240   $ 3,381
  Current portion of capital lease obligations     1,706     1,140
  Accounts payable     138,009     87,299
  Other accrued liabilities     88,733     104,873
    Total current liabilities   $ 231,688   $ 196,693
             
Long-term debt     378,037     416,849
             
Capital lease obligations     7,064     3,781
             
Deferred income taxes     1,993     1,065
             
Other noncurrent liabilities     17,086     15,511
             
Commitments and contingencies            
             
Stockholders' equity     309,960     268,727
    $ 945,828   $ 902,626
             
             
             
WABASH NATIONAL CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
(Dollars in thousands)  
(Unaudited)  
   
    Nine Months Ended September 30,  
    2013     2012  
                 
Cash flows from operating activities                
  Net income   $ 36,106     $ 25,447  
  Adjustments to reconcile net income to net cash provided by operating activities                
    Depreciation     12,429       10,660  
    Amortization of intangibles     16,278       7,175  
    Loss on debt extinguishment     1,304       -  
    Deferred income taxes     23,559       1,666  
    Stock-based compensation     5,525       3,611  
    Accretion of debt discount     3,455       1,865  
    Changes in operating assets and liabilities                
      Accounts receivable     (33,419 )     (551 )
      Inventories     (49,173 )     (1,097 )
      Prepaid expenses and other     1,788       170  
      Accounts payable and accrued liabilities     33,315       (20,558 )
      Other, net     2,593       (855 )
        Net cash provided by operating activities   $ 53,760     $ 27,533  
                 
Cash flows from investing activities                
  Capital expenditures     (11,566 )     (9,013 )
  Acquisition, net of cash acquired     (15,985 )     (364,012 )
  Other     2,500       -  
        Net cash used in investing activities   $ (25,051 )   $ (373,025 )
                 
Cash flows from financing activities                
  Proceeds from exercise of stock options     447       340  
  Borrowings under revolving credit facilities     910       205,786  
  Payments under revolving credit facilities     (910 )     (270,786 )
  Principal payments under capital lease obligations     (1,309 )     (1,388 )
  Proceeds from issuance of convertible senior notes     -       145,500  
  Proceeds from issuance of term loan credit facility, net of issuance costs     -       292,500  
  Principal payments under term loan credit facility     (42,135 )     (1,500 )
  Principal payments under industrial revenue bond     (265 )     -  
  Debt issuance costs paid     (981 )     (5,065 )
  Stock repurchase     (35 )     (564 )
        Net cash (used in) provided by financing activities   $ (44,278 )   $ 364,823  
                 
Net (decrease) increase in cash   $ (15,569 )   $ 19,331  
Cash at beginning of period     81,449       19,976  
Cash at end of period   $ 65,880     $ 39,307  
                 
                 
                 
WABASH NATIONAL CORPORATION
RECONCILIATION OF GAAP FINANCIAL MEASURES TO
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share amounts)
(Unaudited)
                             
Operating EBITDA:                            
                          Twelve  
    Three Months Ended     Nine Months Ended     Months Ended  
    September 30,     September 30,     September 30,  
    2013   2012     2013     2012     2013  
Net income   $ 16,236   $ 18,441     $ 36,106     $ 25,447     $ 116,290  
Income tax expense (benefit)     10,737     1,246       23,968       2,023       (35,023 )
Interest expense     6,252     7,760       20,364       13,934       28,154  
Depreciation and amortization     9,400     7,003       28,707       17,835       36,437  
Stock-based compensation     1,617     1,460       5,525       3,611       7,063  
Acquisition expenses and related charges     26     1,996       883       16,974       1,218  
Other non-operating expense (income)     605     (211 )     (1,300 )     (151 )     (1,052 )
Operating EBITDA   $ 44,873   $ 37,695     $ 114,253     $ 79,673     $ 153,087  
                                       
    Three Months Ended    
    December 31,     March 31,     June 30,    
    2012     2013     2013    
Net income   $ 80,184     $ 5,735     $ 14,135    
Income tax (benefit) expense     (58,991 )     3,824       9,407    
Interest expense     7,790       7,535       6,577    
Depreciation and amortization     7,730       9,776       9,531    
Stock-based compensation     1,538       1,884       2,024    
Acquisition expenses and related charges     335       618       239    
Other non-operating expense (income)     248       (2,238 )     333    
Operating EBITDA   $ 38,834     $ 27,134     $ 42,246    
Adjusted Earnings:                              
  Three Months Ended September 30,   Nine Months Ended September 30,
  2013   2012   2013   2012
  $   Per Share   $   Per Share   $   Per Share   $   Per Share
                                               
Net Income $ 16,236   $ 0.24   $ 18,441   $ 0.27   $ 36,106   $ 0.52   $ 25,447   $ 0.37
                                               
Adjustments:                                              
  Loss on debt extinguishment, net of taxes   364     0.01     -     -     784     0.01     -     -
  Acquisition expenses, net of taxes   16     -     172     -     531     0.01     14,074     0.21
  Impact of acquired profit in inventories and short term intangible amortization   -     -     2,274     0.03     -     -     3,650     0.05
                                               
Adjusted earnings $ 16,616   $ 0.24   $ 20,887   $ 0.30   $ 37,421   $ 0.54   $ 43,171   $ 0.63
                                               
  Three Months Ended
  December 31, 2012     March 31, 2013   June 30, 2013
  $     Per Share     $   Per Share   $   Per Share
                                       
Net Income $ 80,184     $ 1.17     $ 5,735   $ 0.08   $ 14,135   $ 0.21
                                       
Adjustments:                                      
  Income tax benefit   (58,991 )     (0.86 )     -     -     -     -
  Loss on debt extinguishment, net of taxes   -       -       -     -     419     0.01
  Acquisition expenses, net of taxes   335       -       371     0.01     143     -
  Impact of acquired profit in inventories and short term intangible amortization   150       -       -     -     -     -
                                       
Adjusted earnings $ 21,678     $ 0.32     $ 6,106   $ 0.09   $ 14,697   $ 0.21
                                       
Contact:
Press
Dana Stelsel
Corporate Communications Manager
(765) 771-5766

Investor Relations:
Jeff Taylor
Vice President, Acting CFO & Treasurer
(765) 771-5310

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