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Wabash Reports $17.9 Million Loss in 2Q

August 6, 2009

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Wabash National lost $17.9 million, or 59 cents a share, during the second quarter
, versus a net loss of $3.2 million, or 11 cents a share, during the same 2008 quarter.

The company's net sales amounted to $86 million, or 3,200 units, a 60 percent drop from the second quarter of 2008.

"Following the quarter end, as previously announced, we completed the steps to strengthen our balance sheet and liquidity position, which provides us with additional financial flexibility to navigate the current environment," said Dick Giromini, president and CEO. "In addition, we reported a significantly reduced operating loss this quarter as compared to the prior two quarters despite the continuing depressed level of trailer demand, reflecting the flow through benefit of our cost reduction efforts."

Operating losses were $16.7 million, $27.3 million and $87.2 million for the second, first and fourth quarters, respectively.

In July, Wabash announced it would receive a $35 million investment from Trailer Investments, which was formed for this purpose by Lincolnshire Equity Fund III, a private equity investment fund managed by Lincolnshire Management.

The company also amended its loan and security agreement, providing for borrowings of up to $100 million. Wabash's lenders have also agreed to waive specified defaults previously incurred by the company.

"While we will continue to prudently manage the business in the near term, we remain committed to our long-term transformation initiatives and are now well-positioned for profitable growth as the economy recovers," Giromini said.

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