Net sales for the first quarter of 2003 were $223 million, compared with $162 million for the same period last year. Net income for the period was $1.4 million, compared with a net loss of $14.6 million for the same period last year, the company said.
Diluted income per share was $0.05 for the quarter compared to a loss of $0.65 per share for the 2002 quarter.
“We are very pleased to be able to report the first profitable quarter in over two years,” said William P Greubel, president and chief executive officer. “New trailer demand and production in the first quarter, while nearly double that of depressed levels of the same period last year, increased approximately 10% on a sequential basis. The improvements are consistent with our view that industry demand continues to grow albeit at a slow pace. We continue to be pleased with the progress our associates are making in improving operating effectiveness and efficiency.”
Wabash has been able to reduce annual costs by more than $50 million. In addition, the company completed the amendment of its credit facilities in April 2003. The amendment revises certain of the company’s financial covenants and adjusts downward the required monthly principal payments during 2003. The amendment provides greater flexibility from both a financial covenant standpoint and from a debt repayment standpoint.
“The company remains highly focused on continuing to reduce debt through cash flow from operations, working capital improvements and sales of non-core assets,” Greubel added. “We believe the company has substantially completed a rather dramatic turnaround in the midst of a historic industry cycle and can now focus on building a sustainable business model capable of achieving attractive returns.”