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Wabash National Corporation Enhances Indirect Distribution Channel with Retail Segment Realignment and Consolidation

LAFAYETTE, Ind., June 22, 2016 (GLOBE NEWSWIRE) -- Wabash National Corporation (NYSE:WNC), a diversified industrial manufacturer and North America’s leading producer of semi-trailers and liquid transportation systems, announced today it is realigning its Retail segment under Commercial Trailer Products and Diversified Products, in conjunction with transitioning a company-owned retail store to an independent dealer.

Dick Giromini, president and chief executive officer, explained, “We have made great strides in our ongoing efforts to transform Wabash National into a diversified industrial manufacturer to reduce cyclicality, improve profitability and drive higher growth. The decision to strategically realign and consolidate our retail locations and transition a company-owned store to an independent dealer will further these efforts and allow us to expand upon an already impressive network of independent dealers.”

Wabash National Trailer Centers in Ohio, Pennsylvania, Florida, Colorado and Texas will become part of the Commercial Trailer Products segment, while the Brenner Tank Services locations in Wisconsin, Illinois, Arkansas, Kentucky, Louisiana and Texas will join the Diversified Products segment.

“We believe this change in segment structure provides enhanced alignment between our business segments and their channel partners while supporting our strategic objective to grow the areas of our business that offer the most attractive margins and returns on invested capital,” added Mr. Giromini.

Mark Weber, group president of Diversified Products, commented, “This move will enable our tank trailer business to provide full service and aftermarket support to its Beall®, Brenner®, Bulk and Walker customers. The tank parts and service business model complements our existing businesses as well as delivers attractive margins in a capital-efficient manner.”

In addition to realigning the Retail segment, Wabash National has finalized an agreement with Portland-based TEC Equipment, Inc. to provide sales, parts and service for Wabash National®, Transcraft® and Benson® brand trailers in Arizona, New Mexico and portions of Idaho. During July 2016, the Wabash National Trailer Center in Phoenix, Arizona, will be transitioned to an independent dealer facility operated by TEC Equipment.

“This latest agreement with TEC Equipment is one more step in executing our strategic growth plan to further enhance the indirect distribution channel as we expand access and service in the western United States,” explained Brent Yeagy, group president of Commercial Trailer Products.

Mr. Yeagy continued, “This agreement was a natural follow-up to the successful transition of three former branch locations in Oregon and California to TEC Equipment in 2014. TEC Equipment has proven to be a best-in-class dealer that provides excellent service to our mutual customers and a business partner that represents the Wabash brand very well.”

“We have demonstrated over the past several years that we are committed to optimizing business results,” Mr. Giromini added. “We continually focus our efforts to grow margins, strengthen the balance sheet and create shareholder value.”

As a result of the realignment, the former Retail segment will no longer be reported as a separate business segment in Wabash National’s financial statements. Wabash National will begin reporting the realigned segments effective with its second quarter 2016 Form 10-Q filed with the Securities Exchange Commission. For additional information on Wabash National's reporting segments as they will be presented, see the table following this release for unaudited operating results for the three- and twelve-month periods ending December 31, 2015 and 2014, as well as the three-month period ending March 31, 2016.

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®, Beall®, Benson®, Brenner® Tank, Bulk Tank International, DuraPlate®, Extract Technology®, Garsite, Progress Tank, Transcraft®, 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, statements about ongoing efforts to transform Wabash National into a diversified industrial manufacturer to reduce cyclicality, improve profitability and drive higher growth, statements regarding the effect of the segment realignment to enable our tank trailer business to provide full service and aftermarket support to its Beall®, Brenner®, Bulk and Walker customers and our other statements about 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
SUPPLEMENTAL SEGMENT DISCLOSURES
(Dollars in thousands)
(Unaudited)
2014 2015 2016
Twelve Months Ended December 31, 2014 Twelve Months Ended December 31, 2015 Three Months Ended March 31, 2016
Commercial Trailer
Products
Diversified Products Corporate & Eliminations Consolidated Commercial Trailer
Products
Diversified Products Corporate & Eliminations Consolidated Commercial Trailer
Products
Diversified Products Corporate & Eliminations Consolidated
New Trailer Shipments 53,800 3,550 - 57,350 61,300 3,400 - 64,700 14,000 500 - 14,500
Used Trailer Shipments 4,700 150 - 4,850 1,900 150 - 2,050 250 50 - 300
.
Net Sales $1,380,623 $494,992 $(12,300) $1,863,315 $1,582,240 $456,927 $(11,679) $2,027,489 $364,040 $86,431 $(2,795) $447,676
Gross Profit 117,734 111,298 3,601 232,634 197,777 107,023 (1,356) 303,443 60,396 20,210 (1,080) 79,526
Gross Profit % 8.5% 22.5% 12.5% 12.5% 23.4% 15.0% 16.6% 23.4% 17.8%
Income (Loss) from Operations 82,290 57,635 (17,539) 122,386 159,385 51,079 (30,094) 180,369 50,257 6,990 (9,062) 48,185
Operating Margin 6.0% 11.6% 6.6% 10.1% 11.2% 8.9% 13.8% 8.1% 10.8%
Three Months Ended March 31, 2014 Three Months Ended March 31, 2015 Three Months Ended March 31, 2016
Commercial Trailer
Products
Diversified Products Corporate & Eliminations Consolidated Commercial Trailer
Products
Diversified Products Corporate & Eliminations Consolidated Commercial Trailer
Products
Diversified Products Corporate & Eliminations Consolidated
New Trailer Shipments 9,150 800 - 9,950 13,500 850 - 14,350 14,000 500 - 14,500
Used Trailer Shipments 2,100 50 - 2,150 300 50 - 350 250 50 - 300
Net Sales $245,534 $115,084 $(2,498) $358,120 $329,189 $111,140 $(2,732) $437,597 $364,040 $86,431 $(2,795) $447,676
Gross Profit 18,266 27,692 714 46,672 32,272 25,345 (420) 57,197 60,396 20,210 (1,080) 79,526
Gross Profit % 7.4% 24.1% 13.0% 9.8% 22.8% 13.1% 16.6% 23.4% 17.8%
Income (Loss) from Operations 8,965 14,069 (3,570) 19,465 22,910 11,355 (7,002) 27,263 50,257 6,990 (9,062) 48,185
Operating Margin 3.7% 12.2% 5.4% 7.0% 10.2% 6.2% 13.8% 8.1% 10.8%
Three Months Ended June 30, 2014 Three Months Ended June 30, 2015
Commercial Trailer
Products
Diversified Products Corporate & Eliminations Consolidated Commercial Trailer
Products
Diversified Products Corporate & Eliminations Consolidated
New Trailer Shipments 14,100 850 - 14,950 16,100 800 - 16,900
Used Trailer Shipments 1,700 50 - 1,750 600 50 - 650
Net Sales $363,105 $126,801 $(3,885) $486,021 $412,664 $105,306 $(3,139) $514,831
Gross Profit 31,809 28,443 1,361 61,613 49,040 23,687 (323) 72,405
Gross Profit % 8.8% 22.4% 12.7% 11.9% 22.5% 14.1%
Income (Loss) from Operations 22,669 14,972 (3,785) 33,855 39,249 9,769 (6,964) 42,054
Operating Margin 6.2% 11.8% 7.0% 9.5% 9.3% 8.2%
Three Months Ended September 30, 2014 Three Months Ended September 30, 2015
Commercial Trailer
Products
Diversified Products Corporate & Eliminations Consolidated Commercial Trailer
Products
Diversified Products Corporate & Eliminations Consolidated
New Trailer Shipments 14,750 850 - 15,600 15,500 1,000 - 16,500
Used Trailer Shipments 550 50 - 600 450 50 - 500
Net Sales $371,582 $123,189 $(3,073) $491,697 $406,409 $127,787 $(2,847) $531,350
Gross Profit 33,812 26,715 1,101 61,628 55,355 30,978 (311) 86,022
Gross Profit % 9.1% 21.7% 12.5% 13.6% 24.2% 16.2%
Income (Loss) from Operations 25,249 13,791 (4,111) 34,929 45,789 17,601 (7,001) 56,389
Operating Margin 6.8% 11.2% 7.1% 11.3% 13.8% 10.6%
Three Months Ended December 31, 2014 Three Months Ended December 31, 2015
Commercial Trailer
Products
Diversified Products Corporate & Eliminations Consolidated Commercial Trailer
Products
Diversified Products Corporate & Eliminations Consolidated
New Trailer Shipments 15,800 1,050 - 16,850 16,200 750 - 16,950
Used Trailer Shipments 350 50 - 400 550 - - 550
Net Sales $400,402 $129,918 $(2,844) $527,477 $433,977 $112,694 $(2,961) $543,711
Gross Profit 33,846 28,449 426 62,721 61,110 27,013 (303) 87,819
Gross Profit % 8.5% 21.9% 11.9% 14.1% 24.0% 16.2%
Income (Loss) from Operations 25,407 14,803 (6,072) 34,137 51,438 12,354 (9,128) 54,663
Operating Margin 6.3% 11.4% 6.5% 11.9% 11.0% 10.1%
Note: The sum of shipments by quarter may not equal full year shipments due to rounding.

Media Contact: Dana Stelsel Corporate Communications Manager (765) 771-5766 dana.stelsel@wabashnational.com Investor Relations: Mike Pettit Vice President – Finance and Investor Relations (765) 771-5581 michael.pettit@wabashnational.com

Source:Wabash National Corporation

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