WABASH NATIONAL Corp - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - September 8, 2017

Attached files

file filename
EX-99.3 - EXHIBIT 99.3 - WABASH NATIONAL Corpt1702524_ex99-3.htm
EX-99.2 - EXHIBIT 99.2 - WABASH NATIONAL Corpt1702524_ex99-2.htm
8-K - FORM 8-K - WABASH NATIONAL Corpt1702524_8k.htm
​
Exhibit 99.1​
Summary Wabash National Historical Consolidated and Unaudited Pro Forma Consolidated Financial Data
The following table sets forth summary consolidated historical financial data of Wabash National Corporation (“Wabash National”) (1) as of, and for the years ending, December 31, 2016, 2015, and 2014 and (2) as of and for the six months ended June 30, 2017 and 2016, and sets forth summary unaudited pro forma financial data as of and for twelve months ended June 30, 2017. This summary consolidated historical financial data has been derived from our audited consolidated financial statements and unaudited interim consolidated financial statements.
The summary unaudited pro forma consolidated financial data were derived from the unaudited pro forma consolidated financial statements.
The summary unaudited pro forma consolidated financial data should be read in conjunction with Wabash National’s unaudited pro forma consolidated financial information and related notes. The following information should also be read together with the historical audited consolidated financial statements and related notes and unaudited interim consolidated financial statements and related notes. The pro forma adjustments have been prepared as if the transactions described in the footnotes, including the acquisition of Supreme Industries, Inc. (the “Acquisition”) and the offering of  $325 million in aggregate principal amount of senior unsecured notes due 2025 (the “offering”), had taken place on June 30, 2017 in the case of the pro forma balance sheets provided. In the case of the pro forma statements of operations for the twelve months ending June 30, 2017, pro forma adjustments have been prepared as if the transactions described in the footnotes had taken place on January 1, 2016. The summary historical consolidated financial data presented may not be indicative of future performance.
​ ​ ​
Pro Forma for
Transaction
​ ​
Historical Wabash National
​
​ ​ ​
Twelve Months
Ended June 30,
​ ​
Six Months Ended June 30,
​ ​
Years Ended December 31,
​
​ ​ ​
2017(1)
 ​ ​
2017
​ ​
2016
​ ​
2016
​ ​
2015
​ ​
2014
​
​ ​ ​
(unaudited)
​ ​
(unaudited)
​ ​
(unaudited)
​ ​ ​ ​
​ ​ ​
(Dollars in thousands, except per share data)
​
Statement of Comprehensive Income Data:
 ​ ​ ​ ​ ​ ​ ​
Net sales
​ ​ ​ $ 2,020,030 ​ ​ ​ ​ $ 798,619 ​ ​ ​ ​ $ 919,114 ​ ​ ​ ​ $ 1,845,444 ​ ​ ​ ​ $ 2,027,489 ​ ​ ​ ​ $ 1,863,315 ​ ​
Cost of sales
​ ​ ​ ​ 1,676,838 ​ ​ ​ ​ ​ 671,584 ​ ​ ​ ​ ​ 748,524 ​ ​ ​ ​ ​ 1,519,910 ​ ​ ​ ​ ​ 1,724,046 ​ ​ ​ ​ ​ 1,630,681 ​ ​
Gross profit
​ ​ ​ $ 343,192 ​ ​ ​ ​ $ 127,035 ​ ​ ​ ​ $ 170,590 ​ ​ ​ ​ $ 325,534 ​ ​ ​ ​ $ 303,443 ​ ​ ​ ​ $ 232,634 ​ ​
SG&A expenses
​ ​ ​ ​ 138,309 ​ ​ ​ ​ ​ 49,506 ​ ​ ​ ​ ​ 51,893 ​ ​ ​ ​ ​ 101,399 ​ ​ ​ ​ ​ 100,728 ​ ​ ​ ​ ​ 88,370 ​ ​
Amortization of intangibles
​ ​ ​ ​ 26,159 ​ ​ ​ ​ ​ 8,597 ​ ​ ​ ​ ​ 9,978 ​ ​ ​ ​ ​ 19,940 ​ ​ ​ ​ ​ 21,259 ​ ​ ​ ​ ​ 21,878 ​ ​
Other operating expenses
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 1,663 ​ ​ ​ ​ ​ 1,663 ​ ​ ​ ​ ​ 1,087 ​ ​ ​ ​ ​ — ​ ​
Income from operations
​ ​ ​ $ 178,724 ​ ​ ​ ​ $ 68,932 ​ ​ ​ ​ $ 107,056 ​ ​ ​ ​ $ 202,532 ​ ​ ​ ​ $ 180,369 ​ ​ ​ ​ $ 122,386 ​ ​
Interest expense
​ ​ ​ ​ (32,925) ​ ​ ​ ​ ​ (5,878) ​ ​ ​ ​ ​ (8,032) ​ ​ ​ ​ ​ (15,663) ​ ​ ​ ​ ​ (19,548) ​ ​ ​ ​ ​ (22,165) ​ ​
Other income (expense), net
​ ​ ​ ​ 854 ​ ​ ​ ​ ​ 1,657 ​ ​ ​ ​ ​ (604) ​ ​ ​ ​ ​ (1,452) ​ ​ ​ ​ ​ 2,490 ​ ​ ​ ​ ​ (1,759) ​ ​
Income before income taxes
​ ​ ​ $ 146,653 ​ ​ ​ ​ $ 64,711 ​ ​ ​ ​ $ 98,420 ​ ​ ​ ​ $ 185,417 ​ ​ ​ ​ $ 163,311 ​ ​ ​ ​ $ 98,462 ​ ​
Income tax expense (benefit)
​ ​ ​ ​ 49,647 ​ ​ ​ ​ ​ 21,593 ​ ​ ​ ​ ​ 35,365 ​ ​ ​ ​ ​ 65,984 ​ ​ ​ ​ ​ 59,022 ​ ​ ​ ​ ​ 37,532 ​ ​
Net income
​ ​ ​ $ 97,006 ​ ​ ​ ​ $ 43,118 ​ ​ ​ ​ $ 63,055 ​ ​ ​ ​ $ 119,433 ​ ​ ​ ​ $ 104,289 ​ ​ ​ ​ $ 60,930 ​ ​
Other Operating Data: ​ ​ ​ ​ ​ ​ ​
Operating EBITDA(2)
 ​ ​ ​ $ 238,323 ​ ​ ​ ​ ​ 91,371 ​ ​ ​ ​ ​ 132,572 ​ ​ ​ ​ ​ 253,003 ​ ​ ​ ​ ​ 229,464 ​ ​ ​ ​ ​ 169,048 ​ ​
Operating EBITDA as % of net sales(2)
 ​ ​ ​ ​ 11.8% ​ ​ ​ ​ ​ 11.4% ​ ​ ​ ​ ​ 14.4% ​ ​ ​ ​ ​ 13.7% ​ ​ ​ ​ ​ 11.3% ​ ​ ​ ​ ​ 9.1% ​ ​
Interest expense(3)
 ​ ​ ​ $ 32,925 ​ ​ ​ ​ ​ ​ ​
Interest expense ratio(4)
 ​ ​ ​ ​ 7.2x ​ ​ ​ ​ ​ ​ ​
Total debt(5)
 ​ ​ ​ $ 560,424 ​ ​ ​ ​ ​ ​ ​
Net debt(5)
 ​ ​ ​ $ 405,546 ​ ​ ​ ​ ​ ​ ​
Total leverage ratio(6)
 ​ ​ ​ ​ 2.4x ​ ​ ​ ​ ​ ​ ​
Net leverage ratio(7)
 ​ ​ ​ ​ 1.7x ​ ​ ​ ​ ​ ​ ​
Balance Sheet Data (at period end): ​ ​ ​ ​ ​ ​ ​
Working capital(8)
 ​ ​ ​ $ 276,561 ​ ​ ​ ​ $ 274,886 ​ ​ ​ ​ $ 356,306 ​ ​ ​ ​ $ 314,791 ​ ​ ​ ​ $ 318,430 ​ ​ ​ ​ $ 298,802 ​ ​
Total assets
​ ​ ​ $ 1,341,524 ​ ​ ​ ​ $ 932,411 ​ ​ ​ ​ $ 986,593 ​ ​ ​ ​ $ 898,733 ​ ​ ​ ​ $ 949,670 ​ ​ ​ ​ $ 928,651 ​ ​
Total debt and capital leases
​ ​ ​ $ 554,157 ​ ​ ​ ​ $ 233,519 ​ ​ ​ ​ $ 282,548 ​ ​ ​ ​ $ 237,836 ​ ​ ​ ​ $ 315,633 ​ ​ ​ ​ $ 332,527 ​ ​
Stockholders’ equity
​ ​ ​ $ 471,761 ​ ​ ​ ​ $ 473,450 ​ ​ ​ ​ $ 482,240 ​ ​ ​ ​ $ 472,391 ​ ​ ​ ​ $ 439,811 ​ ​ ​ ​ $ 390,832 ​ ​
1
​
​
(1)
The financial information for Supreme Industries is based on a 52- or 53-week fiscal year ending the last Saturday in December. As a result, the historical unaudited pro forma consolidated statements of operations for the twelve months ended June 30, 2017 contained 52-weeks for the period ending July 1, 2017. The historical unaudited pro forma consolidated balance sheet as of June 30, 2017, for Supreme Industries has been prepared as of July 1, 2017.
​
(2)
The following unaudited tables set forth reconciliations of net income to Operating EBITDA for the periods presented:
​
​ ​ ​
Pro Forma for
Transaction
​ ​
Historical Wabash National
​
​ ​ ​
Twelve Months
Ended June 30
​ ​
Six Months Ended June 30,
​ ​
Years Ended December 31,
​
​ ​ ​
2017
​ ​
2017
​ ​
2016
​ ​
2016
​ ​
2015
​ ​
2014
​
​ ​ ​
(unaudited)
​ ​
(unaudited)
​ ​
(unaudited)
​ ​ ​ ​
​ ​ ​
(Dollars in thousands)
​
Net Income
​ ​ ​ $ 97,006 ​ ​ ​ ​ $ 43,118 ​ ​ ​ ​ $ 63,055 ​ ​ ​ ​ $ 119,433 ​ ​ ​ ​ $ 104,289 ​ ​ ​ ​ $ 60,930 ​ ​
Interest Expense
​ ​ ​ ​ 32,925 ​ ​ ​ ​ ​ 5,878 ​ ​ ​ ​ ​ 8,032 ​ ​ ​ ​ ​ 15,663 ​ ​ ​ ​ ​ 19,548 ​ ​ ​ ​ ​ 22,165 ​ ​
Income Tax Expense
​ ​ ​ ​ 49,647 ​ ​ ​ ​ ​ 21,593 ​ ​ ​ ​ ​ 35,365 ​ ​ ​ ​ ​ 65,984 ​ ​ ​ ​ ​ 59,022 ​ ​ ​ ​ ​ 37,532 ​ ​
Depreciation & Amortization
​ ​ ​ ​ 46,728 ​ ​ ​ ​ ​ 17,009 ​ ​ ​ ​ ​ 18,151 ​ ​ ​ ​ ​ 36,770 ​ ​ ​ ​ ​ 37,998 ​ ​ ​ ​ ​ 38,829 ​ ​
Stock Based Compensation
​ ​ ​ ​ 12,872 ​ ​ ​ ​ ​ 5,430 ​ ​ ​ ​ ​ 5,702 ​ ​ ​ ​ ​ 12,038 ​ ​ ​ ​ ​ 10,010 ​ ​ ​ ​ ​ 7,833 ​ ​
Impairment of goodwill and other
intangibles
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 1,663 ​ ​ ​ ​ ​ 1,663 ​ ​ ​ ​ ​ 1,087 ​ ​ ​ ​ ​ — ​ ​
Other Non-Operating Expenses (Income)
​ ​ ​ ​ (855) ​ ​ ​ ​ ​ (1,657) ​ ​ ​ ​ ​ 604 ​ ​ ​ ​ ​ 1,452 ​ ​ ​ ​ ​ (2,490) ​ ​ ​ ​ ​ 1,759 ​ ​
Operating EBITDA
​ ​ ​ $ 238,323 ​ ​ ​ ​ $ 91,371 ​ ​ ​ ​ $ 132,572 ​ ​ ​ ​ $ 253,003 ​ ​ ​ ​ $ 229,464 ​ ​ ​ ​ $ 169,048 ​ ​
​
(3)
Represents interest expense on a pro forma basis for the twelve months ended June 30, 2017, calculated using an assumed interest rate for the notes.
​
(4)
Represents the ratio of pro forma Operating EBITDA to interest expense for the twelve months ended June 30, 2017.
​
(5)
Net debt is equal to total debt (which is calculated assuming the notes are issued at par and before discounts for initial issuance costs) less cash and cash equivalents on a pro forma basis as of June 30, 2017.
​
(6)
Represents the ratio of pro forma total debt as of June 30, 2017 to pro forma Operating EBITDA for the twelve months then ended.
​
(7)
Represents the ratio of pro forma net debt as of June 30, 2017 to pro forma Operating EBITDA for the twelve months then ended.
​
(8)
Represents the pro forma Current Assets less the pro forma Current Liabilities of Wabash National and Supreme Industries combined adjusted to reflect the impact of the Transactions. See “Unaudited Pro Forma Consolidated Financial Information” and related notes.
​
​
2
​
Summary Supreme Industries Consolidated Historical Financial Information
The following table sets forth summary consolidated historical financial information of Supreme Industries, Inc. (“Supreme Industries”) (1) as of, and for the fiscal years ending, December 31, 2016, December 26, 2015 and December 27, 2014 and (2) as of and for the six months ended July 1, 2017 and June 25, 2016. This summary consolidated historical financial information is based on a 52- or 53-week fiscal year ending the last Saturday in December and has been derived from Supreme Industries’ audited consolidated financial statements and unaudited interim consolidated financial statements filed with the SEC.
The summary historical consolidated financial data presented may not be indicative of future performance.
​ ​ ​
Six Months Ended
​ ​
Fiscal Years Ended
​
​ ​ ​
July 1, 2017
​ ​
June 25, 2016
​ ​
2016
​ ​
2015
​ ​
2014
​
​ ​ ​
(unaudited)
​ ​
(unaudited)
​ ​ ​ ​
​ ​ ​
(Dollars in thousands, except per share data)
 ​
Consolidated Statement of Continuing Operations Data: ​ ​ ​ ​
Net sales
​ ​ ​ $ 164,140 ​ ​ ​ ​ $ 162,322 ​ ​ ​ ​ $ 298,972 ​ ​ ​ ​ $ 278,425 ​ ​ ​ ​ $ 236,309 ​ ​
Income from continuing operations
​ ​ ​ ​ 8,165 ​ ​ ​ ​ ​ 12,056 ​ ​ ​ ​ ​ 19,037 ​ ​ ​ ​ ​ 12,875 ​ ​ ​ ​ ​ 8,470 ​ ​
Income from continuing operations per
share:
 ​ ​ ​ ​ ​
Basic earnings per share
​ ​ ​ ​ 0.48 ​ ​ ​ ​ ​ 0.71 ​ ​ ​ ​ ​ 1.12 ​ ​ ​ ​ ​ 0.77 ​ ​ ​ ​ ​ 0.52 ​ ​
Diluted earnings per share
​ ​ ​ ​ 0.48 ​ ​ ​ ​ ​ 0.70 ​ ​ ​ ​ ​ 1.11 ​ ​ ​ ​ ​ 0.76 ​ ​ ​ ​ ​ 0.50 ​ ​
Cash dividends paid per common
share
​ ​ ​ ​ 0.370 ​ ​ ​ ​ ​ 0.365 ​ ​ ​ ​ ​ 0.400 ​ ​ ​ ​ ​ 0.110 ​ ​ ​ ​ ​ 0.025 ​ ​
Other Operating Data: ​ ​ ​ ​
Operating EBITDA(1)
 ​ ​ ​ $ 14,140 ​ ​ ​ ​ $ 20,257 ​ ​ ​ ​ $ 32,632 ​ ​ ​ ​ $ 22,977 ​ ​ ​ ​ $ 16,432 ​ ​
Operating EBITDA as % of net sales(1)
 ​ ​ ​ ​ 8.6% ​ ​ ​ ​ ​ 12.5% ​ ​ ​ ​ ​ 10.9% ​ ​ ​ ​ ​ 8.3% ​ ​ ​ ​ ​ 7.0% ​ ​
Consolidated Balance Sheet Data (at period end): ​ ​ ​ ​
Working capital
​ ​ ​ $ 69,413 ​ ​ ​ ​ $ 62,767 ​ ​ ​ ​ $ 58,165 ​ ​ ​ ​ $ 51,903 ​ ​ ​ ​ $ 43,632 ​ ​
Total assets
​ ​ ​ ​ 139,530 ​ ​ ​ ​ ​ 132,622 ​ ​ ​ ​ ​ 133,969 ​ ​ ​ ​ ​ 121,120 ​ ​ ​ ​ ​ 108,905 ​ ​
Total Debt
​ ​ ​ ​ 7,167 ​ ​ ​ ​ ​ 8,000 ​ ​ ​ ​ ​ 7,500 ​ ​ ​ ​ ​ 8,333 ​ ​ ​ ​ ​ 9,000 ​ ​
Stockholders’ equity
​ ​ ​ ​ 108,883 ​ ​ ​ ​ ​ 99,837 ​ ​ ​ ​ ​ 101,731 ​ ​ ​ ​ ​ 88,588 ​ ​ ​ ​ ​ 81,032 ​ ​
​
(1)
The following unaudited tables set forth reconciliations of net income to Operating EBITDA for the periods presented:
​
​ ​ ​
Historical Supreme Industries
​
​ ​ ​
Six Months Ended
​ ​
Fiscal Years Ended
​
​ ​ ​
July 1, 2017
​ ​
June 25, 2016
​ ​
2016
​ ​
2015
​ ​
2014
​
​ ​ ​
(unaudited)
​ ​
(unaudited)
​ ​ ​ ​
​ ​ ​
(Dollars in thousands)
​
Net Income from Continuing Operations
​ ​ ​ $ 8,165 ​ ​ ​ ​ $ 12,056 ​ ​ ​ ​ $ 19,037 ​ ​ ​ ​ $ 12,875 ​ ​ ​ ​ $ 8,470 ​ ​
Interest Expense (Income)
​ ​ ​ ​ 479 ​ ​ ​ ​ ​ 146 ​ ​ ​ ​ ​ 459 ​ ​ ​ ​ ​ 89 ​ ​ ​ ​ ​ 526 ​ ​
Income Tax Expense
​ ​ ​ ​ 3,339 ​ ​ ​ ​ ​ 6,056 ​ ​ ​ ​ ​ 9,407 ​ ​ ​ ​ ​ 6,319 ​ ​ ​ ​ ​ 4,001 ​ ​
Depreciation & Amortization
​ ​ ​ ​ 1,526 ​ ​ ​ ​ ​ 1,583 ​ ​ ​ ​ ​ 3,124 ​ ​ ​ ​ ​ 3,284 ​ ​ ​ ​ ​ 3,441 ​ ​
Stock Based Compensation
​ ​ ​ ​ 641 ​ ​ ​ ​ ​ 473 ​ ​ ​ ​ ​ 939 ​ ​ ​ ​ ​ 778 ​ ​ ​ ​ ​ 488 ​ ​
Impairment of goodwill and other intangibles
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Other Non-Operating Expenses (Income)
​ ​ ​ ​ (10) ​ ​ ​ ​ ​ (57) ​ ​ ​ ​ ​ (334) ​ ​ ​ ​ ​ (368) ​ ​ ​ ​ ​ (494) ​ ​
Operating EBITDA
​ ​ ​ $ 14,140 ​ ​ ​ ​ $ 20,257 ​ ​ ​ ​ $ 32,632 ​ ​ ​ ​ $ 22,977 ​ ​ ​ ​ $ 16,432 ​ ​
​
3
​
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
Wabash National announced its intent to acquire Supreme Industries for total cash consideration of approximately $360.4 million on August 8, 2017. Wabash National intends to finance the Acquisition by issuing $325.0 million principal amount of notes offered hereby and available cash and cash equivalents.
The following unaudited pro forma consolidated financial statements are based on Wabash National’s historical consolidated financial statements and Supreme Industries historical consolidated financial statements as adjusted to give effect to the Acquisition and the offering. The unaudited pro forma consolidated statements of operations for the six months and twelve ended June 30, 2017 and the twelve months ended December 31, 2016 have been prepared as if the transaction had taken place on January 1, 2016. The unaudited pro forma consolidated balance sheet as of June 30, 2017 has been prepared as if the transaction had taken place on June 30, 2017.
The financial information for Supreme Industries is based on a 52- or 53-week fiscal year ending the last Saturday in December. As a result, the fiscal year ended December 31, 2016 contained 53 weeks and the historical unaudited pro forma consolidated statements of operations for the six and twelve months ended June 30, 2017 contains 26-weeks and 52-weeks, respectively, for the period ending July 1, 2017. The historical unaudited pro forma consolidated balance sheet as of June 30, 2017 for Supreme Industries has been prepared as of July 1, 2017.
Assumptions and estimates underlying the pro forma adjustments are described in the notes below, which should be read in conjunction with the unaudited pro forma consolidated financial statements. Because the pro forma financial statements have been prepared based upon preliminary estimates and assumptions, the final amounts recorded may differ materially from the information presented in the notes below. These estimates and assumptions are subject to change pending further review of the assets to be acquired and liabilities to be assumed, and as additional information becomes available. The final purchase price allocation will be determined after the Acquisition is completed.
The unaudited pro forma consolidated balance sheet and unaudited pro forma consolidated statement of operations reflect the following transactions as if they occurred at the dates noted above:
•
the Acquisition for a cash purchase price of  $360.4 million and the repayment of Supreme Industries’ outstanding indebtedness;
​
•
the issuance of  $325.0 million principal amount of notes offered hereby; and
​
•
the payment of estimated costs of issuances of the notes.
​
​
4
​
Wabash National Corporation
Unaudited Pro Forma Consolidated Balance Sheet
(Dollars in thousands)
​ ​ ​
As of June 30, 2017
​
​ ​ ​
Wabash
Historical
​ ​
Supreme
Historical
​ ​
Adjustments
​ ​
Pro forma
​ ​
Cash and cash equivalents
​ ​ ​ $ 178,633 ​ ​ ​ ​ $ 24,828 ​ ​ ​ ​ $ 320,638(a) ​ ​ ​ ​ $ 154,878 ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (369,221)(b) ​ ​ ​ ​ ​ ​ ​ ​ ​
Investments
​ ​ ​ ​ — ​ ​ ​ ​ ​ 4,152 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 4,152 ​ ​ ​
Accounts receivable
​ ​ ​ ​ 122,978 ​ ​ ​ ​ ​ 33,446 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 156,424 ​ ​ ​
Inventories
​ ​ ​ ​ 199,276 ​ ​ ​ ​ ​ 30,692 ​ ​ ​ ​ ​ 1,296(c) ​ ​ ​ ​ ​ 231,264 ​ ​ ​
Prepaid expenses & other
​ ​ ​ ​ 19,198 ​ ​ ​ ​ ​ 4,931 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 24,129 ​ ​ ​
Total current assets
 ​ ​ ​ $ 520,085 ​ ​ ​ ​ $ 98,049 ​ ​ ​ ​ $ (47,287) ​ ​ ​ ​ $ 570,847 ​ ​ ​
Property, plant and equipment
​ ​ ​ ​ 136,299 ​ ​ ​ ​ ​ 41,481 ​ ​ ​ ​ ​ 8,519(d) ​ ​ ​ ​ ​ 186,299 ​ ​ ​
Deferred income taxes
​ ​ ​ ​ 20,285 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 20,285 ​ ​ ​
Goodwill
​ ​ ​ ​ 148,268 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 208,351(f) ​ ​ ​ ​ ​ 356,619 ​ ​ ​
Intangible assets
​ ​ ​ ​ 85,909 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 100,000(e) ​ ​ ​ ​ ​ 185,909 ​ ​ ​
Other assets
​ ​ ​ ​ 21,565 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 21,565 ​ ​ ​
Total assets
 ​ ​ ​ $ 932,411 ​ ​ ​ ​ $ 139,530 ​ ​ ​ ​ $ 269,583 ​ ​ ​ ​ $ 1,341,524 ​ ​ ​
Current portion of long-term debt
​ ​ ​ ​ 45,822 ​ ​ ​ ​ ​ 7,014 ​ ​ ​ ​ ​ (7,014)(b) ​ ​ ​ ​ ​ 45,822 ​ ​ ​
Current portion of capital lease obligations
​ ​ ​ ​ 427 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 427 ​ ​ ​
Accounts payable
​ ​ ​ ​ 109,595 ​ ​ ​ ​ ​ 10,937 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 120,532 ​ ​ ​
Other accrued liabilities
​ ​ ​ ​ 89,355 ​ ​ ​ ​ ​ 10,685 ​ ​ ​ ​ ​ 27,465(g) ​ ​ ​ ​ ​ 127,505 ​ ​ ​
Total current liabilities
 ​ ​ ​ $ 245,199 ​ ​ ​ ​ $ 28,636 ​ ​ ​ ​ $ 20,451 ​ ​ ​ ​ $ 294,286 ​ ​ ​
Long-term debt
​ ​ ​ ​ 186,098 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 320,638(a) ​ ​ ​ ​ ​ 506,736 ​ ​ ​
Capital lease obligations
​ ​ ​ ​ 1,172 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 1,172 ​ ​ ​
Deferred income taxes
​ ​ ​ ​ 486 ​ ​ ​ ​ ​ 2,011 ​ ​ ​ ​ ​ 39,067(h) ​ ​ ​ ​ ​ 41,564 ​ ​ ​
Other noncurrent liabilities
​ ​ ​ ​ 26,006 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 26,006 ​ ​ ​
Common stock
​ ​ ​ ​ 737 ​ ​ ​ ​ ​ 1,874 ​ ​ ​ ​ ​ (1,874)(i) ​ ​ ​ ​ ​ 737 ​ ​ ​
Additional paid-in capital
​ ​ ​ ​ 648,614 ​ ​ ​ ​ ​ 75,647 ​ ​ ​ ​ ​ (75,647)(i) ​ ​ ​ ​ ​ 648,614 ​ ​ ​
Retained earnings
​ ​ ​ ​ 38,930 ​ ​ ​ ​ ​ 46,917 ​ ​ ​ ​ ​ (46,917)(i) ​ ​ ​ ​ ​ 37,241 ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1,689)(b) ​ ​ ​ ​ ​ ​ ​ ​ ​
Accumulated other comprehensive loss
​ ​ ​ ​ (2,076) ​ ​ ​ ​ ​ (62) ​ ​ ​ ​ ​ 62(i) ​ ​ ​ ​ ​ (2,076) ​ ​ ​
Treasury stock
​ ​ ​ ​ (212,755) ​ ​ ​ ​ ​ (15,493) ​ ​ ​ ​ ​ 15,493(i) ​ ​ ​ ​ ​ (212,755) ​ ​ ​
Total Stockholders equity
 ​ ​ ​ $ 473,450 ​ ​ ​ ​ $ 108,883 ​ ​ ​ ​ $ (110,572) ​ ​ ​ ​ $ 471,761 ​ ​ ​
Total liabilities and stockholders equity
 ​ ​ ​ $ 932,411 ​ ​ ​ ​ $ 139,530 ​ ​ ​ ​ $ 269,583 ​ ​ ​ ​ $ 1,341,524 ​ ​ ​
​
See accompanying notes to the Unaudited Pro Forma Consolidated Financial Statements
5
​
Wabash National Corporation
Unaudited Pro Forma Consolidated Statements of Operations
(Dollars in thousands, except per share)
​ ​ ​
Twelve months ended December 31, 2016
​
​ ​ ​
WNC
Historical
​ ​
STS
Historical
​ ​
Adjustments
​ ​
Pro Forma
​
Net sales
​ ​ ​ $ 1,845,444 ​ ​ ​ ​ $ 298,972 ​ ​ ​ ​ $ (5,012)(l) ​ ​ ​ ​ $ 2,139,404 ​ ​
Cost of sales
​ ​ ​ ​ 1,519,910 ​ ​ ​ ​ ​ 231,860 ​ ​ ​ ​ ​ (5,012)(l) ​ ​ ​ ​ ​ 1,747,183 ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 425(d) ​ ​ ​ ​ ​ ​ ​ ​
Gross profit
​ ​ ​ $ 325,534 ​ ​ ​ ​ $ 67,112 ​ ​ ​ ​ $ (425) ​ ​ ​ ​ $ 392,221 ​ ​
General and administrative expenses
​ ​ ​ ​ 74,129 ​ ​ ​ ​ ​ 26,438 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 100,567 ​ ​
Selling expenses
​ ​ ​ ​ 27,270 ​ ​ ​ ​ ​ 12,105 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 39,375 ​ ​
Amortization of intangibles
​ ​ ​ ​ 19,940 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 7,600(j) ​ ​ ​ ​ ​ 27,540 ​ ​
Other operating expenses (income)
​ ​ ​ ​ 1,663 ​ ​ ​ ​ ​ (334) ​ ​ ​ ​ ​ 334(o) ​ ​ ​ ​ ​ 1,663 ​ ​
Income from operations
​ ​ ​ $ 202,532 ​ ​ ​ ​ $ 28,903 ​ ​ ​ ​ $ (8,359) ​ ​ ​ ​ $ 223,076 ​ ​
Other income (expense) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Interest expense
​ ​ ​ ​ (15,663) ​ ​ ​ ​ ​ (459) ​ ​ ​ ​ ​ (18,623)(k) ​ ​ ​ ​ ​ (34,745) ​ ​
Other, net
​ ​ ​ ​ (1,452) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (157)(m) ​ ​ ​ ​ ​ (1,275) ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 334(o) ​ ​ ​ ​ ​ ​ ​ ​
Income before income taxes
​ ​ ​ $ 185,417 ​ ​ ​ ​ $ 28,444 ​ ​ ​ ​ $ (26,805) ​ ​ ​ ​ $ 187,056 ​ ​
Income tax expense
​ ​ ​ ​ 65,984 ​ ​ ​ ​ ​ 9,407 ​ ​ ​ ​ ​ (9,543)(n) ​ ​ ​ ​ ​ 65,848 ​ ​
Net income
​ ​ ​ $ 119,433 ​ ​ ​ ​ $ 19,037 ​ ​ ​ ​ $ (17,262) ​ ​ ​ ​ $ 121,208 ​ ​
Net income per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Basic
​ ​ ​ $ 1.87 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1.90 ​ ​
Diluted
​ ​ ​ $ 1.82 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1.84 ​ ​
​
See accompanying notes to the Unaudited Pro Forma Consolidated Financial Statements
6
​
Wabash National Corporation
Unaudited Pro Forma Consolidated Statements of Operations
(Dollars in thousands, except per share)
​ ​ ​
Six months ended June 30, 2017
​
​ ​ ​
WNC
Historical
​ ​
STS
Historical
​ ​
Adjustments
​ ​
Pro Forma
​
Net sales
​ ​ ​ $ 798,619 ​ ​ ​ ​ $ 164,140 ​ ​ ​ ​ $ (4,921)(l) ​ ​ ​ ​ $ 957,838 ​ ​
Cost of sales
​ ​ ​ ​ 671,584 ​ ​ ​ ​ ​ 132,041 ​ ​ ​ ​ ​ (4,921)(l) ​ ​ ​ ​ ​ 798,917 ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 213(d) ​ ​ ​ ​ ​ ​ ​ ​
Gross profit
​ ​ ​ $ 127,035 ​ ​ ​ ​ $ 32,099 ​ ​ ​ ​ $ (213) ​ ​ ​ ​ $ 158,921 ​ ​
General and administrative expenses
​ ​ ​ ​ 37,436 ​ ​ ​ ​ ​ 13,630 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 51,066 ​ ​
Selling expenses
​ ​ ​ ​ 12,070 ​ ​ ​ ​ ​ 6,497 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 18,567 ​ ​
Amortization of intangibles
​ ​ ​ ​ 8,597 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 3,800(j) ​ ​ ​ ​ ​ 12,397 ​ ​
Other operating expenses (income)
​ ​ ​ ​ — ​ ​ ​ ​ ​ (10) ​ ​ ​ ​ ​ 10(o) ​ ​ ​ ​ ​ — ​ ​
Income from operations
​ ​ ​ $ 68,932 ​ ​ ​ ​ $ 11,982 ​ ​ ​ ​ $ (4,023) ​ ​ ​ ​ $ 76,891 ​ ​
Other income (expense) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Interest expense
​ ​ ​ ​ (5,878) ​ ​ ​ ​ ​ (478) ​ ​ ​ ​ ​ (9,314)(k) ​ ​ ​ ​ ​ (15,670) ​ ​
Other, net
​ ​ ​ ​ 1,657 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (164)(m) ​ ​ ​ ​ ​ 1,503 ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 10(o) ​ ​ ​ ​ ​ ​ ​ ​
Income before income taxes
​ ​ ​ $ 64,711 ​ ​ ​ ​ $ 11,504 ​ ​ ​ ​ $ (13,491) ​ ​ ​ ​ $ 62,724 ​ ​
Income tax expense
​ ​ ​ ​ 21,593 ​ ​ ​ ​ ​ 3,339 ​ ​ ​ ​ ​ (4,502)(n) ​ ​ ​ ​ ​ 20,430 ​ ​
Net income
​ ​ ​ $ 43,118 ​ ​ ​ ​ $ 8,165 ​ ​ ​ ​ $ (8,989) ​ ​ ​ ​ $ 42,294 ​ ​
Net income per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Basic
​ ​ ​ $ 0.72 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 0.70 ​ ​
Diluted
​ ​ ​ $ 0.68 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 0.67 ​ ​
​
See accompanying notes to the Unaudited Pro Forma Consolidated Financial Statements
7
​
Wabash National Corporation
Unaudited Pro Forma Consolidated Statements of Operations
(Dollars in thousands, except per share)
​ ​ ​
Last Twelve Months ended June 30, 2017
​
​ ​ ​
WNC
Historical
​ ​
STS
Historical
​ ​
Adjustments
​ ​
Pro Forma
​
Net sales
​ ​ ​ $ 1,724,949 ​ ​ ​ ​ $ 300,790 ​ ​ ​ ​ $ (5,709)(l) ​ ​ ​ ​ $ 2,020,030 ​ ​
Cost of sales
​ ​ ​ ​ 1,442,970 ​ ​ ​ ​ ​ 239,152 ​ ​ ​ ​ ​ (5,709)(l) ​ ​ ​ ​ ​ 1,676,838 ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 425(d) ​ ​ ​ ​ ​ ​ ​ ​
Gross profit
​ ​ ​ $ 281,979 ​ ​ ​ ​ $ 61,638 ​ ​ ​ ​ $ (425) ​ ​ ​ ​ $ 343,192 ​ ​
General and administrative expenses
​ ​ ​ ​ 73,678 ​ ​ ​ ​ ​ 26,691 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 100,369 ​ ​
Selling expenses
​ ​ ​ ​ 25,334 ​ ​ ​ ​ ​ 12,606 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 37,940 ​ ​
Amortization of intangibles
​ ​ ​ ​ 18,559 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 7,600(j) ​ ​ ​ ​ ​ 26,159 ​ ​
Other operating expenses (income)
​ ​ ​ ​ — ​ ​ ​ ​ ​ (287) ​ ​ ​ ​ ​ 287(o) ​ ​ ​ ​ ​ — ​ ​
Income from operations
​ ​ ​ $ 164,408 ​ ​ ​ ​ $ 22,628 ​ ​ ​ ​ $ (8,312) ​ ​ ​ ​ $ 178,724 ​ ​
Other income (expense) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Interest expense
​ ​ ​ ​ (13,509) ​ ​ ​ ​ ​ (791) ​ ​ ​ ​ ​ (18,625)(k) ​ ​ ​ ​ ​ (32,925) ​ ​
Other, net
​ ​ ​ ​ 809 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (242)(m) ​ ​ ​ ​ ​ 854 ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 287(o) ​ ​ ​ ​ ​ ​ ​ ​
Income before income taxes
​ ​ ​ $ 151,708 ​ ​ ​ ​ $ 21,837 ​ ​ ​ ​ $ (26,892) ​ ​ ​ ​ $ 146,653 ​ ​
Income tax expense
​ ​ ​ ​ 52,212 ​ ​ ​ ​ ​ 6,690 ​ ​ ​ ​ ​ (9,255)(n) ​ ​ ​ ​ ​ 49,647 ​ ​
Net income
​ ​ ​ $ 99,496 ​ ​ ​ ​ $ 15,147 ​ ​ ​ ​ $ (17,637) ​ ​ ​ ​ $ 97,006 ​ ​
Net income per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Basic
​ ​ ​ $ 1.62 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1.58 ​ ​
Diluted
​ ​ ​ $ 1.55 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1.51 ​ ​
​
See accompanying notes to the Unaudited Pro Forma Consolidated Financial Statements
8
​
Note 1. Basis of Presentation and Financing Transaction
The historical consolidated financial statements have been adjusted in the unaudited pro forma consolidated financial statements to give effect to the pro forma events that are (1) directly attributable to the business combination, (2) factually supportable and (3) with respect to the pro forma consolidated statements of operations, expected to have a continuing impact to the combined results following the business combination.
The business combination was accounted for under the acquisition method of accounting in accordance with Accounting Standards Codification Topic 805, Business Combinations. As the acquirer for accounting purposes, Wabash National has estimated the fair value of Supreme Industries’ assets acquired and liabilities assumed. The pro forma combined financial statements do not necessarily reflect what the combined company’s financial condition or results of operations would have been had the acquisition occurred on the dates indicated. They also may not be useful in predicting the future financial condition and results of operations of the combined company. The actual financial position and results of operations may differ significantly from the unaudited pro forma amounts reflected herein due to a variety of factors. The combined pro forma financial information does not reflect the realization of any expected cost savings or other synergies from the Acquisition.
The unaudited pro forma consolidated balance sheet and unaudited pro forma consolidated statement of operations reflect the following transactions as if they occurred at the dates noted above:
•
the Acquisition for a cash purchase price of  $360.4 million and the repayment of Supreme Industries’ outstanding indebtedness;
​
•
the issuance of  $325.0 million principal amount notes offered hereby; and
​
•
the payment of estimated costs of issuances of the notes.
​
Note 2. Pro Forma Adjustments and Assumptions
The unaudited pro forma adjustments described below are based on assumptions and estimates, which should be read in conjunction with the unaudited pro forma consolidated financial statements. Since the pro forma financial statements have been prepared based upon preliminary estimates and assumptions, the final amounts recorded may differ materially from the information presented. These estimates and assumptions are subject to change pending further review of the assets to be acquired and liabilities to be assumed, and as additional information becomes available. The final purchase price allocation will be determined after the acquisition is completed and could differ materially from the preliminary allocations used in the unaudited pro forma consolidated financial statements. The final allocation may include (1) changes to fair value of property, plant and equipment, (2) changes in allocations to intangible assets such as trade names, customer and supplier relationships and backlog as well as goodwill and (3) other changes to assets acquired and liabilities assumed.
The following adjustments have been reflected in the unaudited pro forma consolidated financial information:
(a)
Reflects the assumed net proceeds to Wabash National of  $320.6 million from the issuance of $325.0 million principal amount of notes after deducting issuance costs of approximately $4.4 million. These costs will be capitalized and amortized through interest expense over the life of the notes using the effective interest method.
​
(b)
Reflects the estimated purchase price of Supreme Industries of  $360.4 million, and other acquisition costs of  $1.7 million, inclusive of bridge commitment financing fees, and does not reflect a use of cash to make approximately $27.5 million in change in control payments further described in note (g) of the Notes to the Unaudited Pro Forma Consolidated Financial Statements which are expected to be settled in cash following the closing of the Acquisition. Adjustments also reflect the repayment of Supreme Industries’ outstanding debt of  $7.2 million. Does not reflect cash to be used to pay expected fees and expenses associated with the Acquisition of approximately $10 million.
​
​
   
9
​
(c)
Reflects an adjustment to record Supreme Industries inventory at fair value. The estimated fair value of Supreme Industries’ inventory was $32.0 million at July 1, 2017 compared to a carrying value of  $30.7 million resulting in a total increase to inventory of  $1.3 million.
​
(d)
Reflects the adjustment to increase Supreme Industries’ assets held for sale and property, plant and equipment to fair value, based on preliminary estimates, with the corresponding impact on depreciation expense based on estimated depreciable life of assets.
​
(e)
Reflects an adjustment to record intangible assets, based on a preliminary appraisal, related to Supreme Industries at fair value consisting of the following (in millions):
​
​ ​ ​
June 30, 2017
​
Trade names & trade marks (20 years)
​ ​ ​ $ 36.0 ​ ​
Order backlog (less than 1 year)
​ ​ ​ ​ 6.0 ​ ​
Customer and supplier relationships (10 years)
​ ​ ​ ​ 58.0 ​ ​
Total
​ ​ ​ $ 100.0 ​ ​
​
(f)
Reflects the goodwill arising from the transaction. Goodwill was determined as follows (in millions):
​
​ ​ ​
June 30, 2017
​
Estimated purchase price of Supreme
​ ​ ​ $ 360.4 ​ ​
Fair value of liabilities assumed
​ ​ ​ ​ 58.3 ​ ​
Estimated deferred tax liability assumed
​ ​ ​ ​ 39.1 ​ ​
Fair value of assets acquired
​ ​ ​ ​ (249.3) ​ ​
Goodwill arising from the transaction
​ ​ ​ $ 208.4 ​ ​
​
(g)
Reflects additional liabilities assumed by Wabash National as a result of the transaction and change of control provisions for management of Supreme Industries including Supreme Industries’ Ownership Transaction Incentive Plan, severance agreements and other cash incentives.
​
(h)
Reflects the realization of  $39.1 million of deferred tax liabilities generated by the preliminary allocation of the purchase price to identifiable tangible and intangible assets.
​
(i)
Reflects elimination of Supreme Industries’ historical equity balances.
​
(j)
Reflects the adjustments for amortization of the intangible assets described in note (e) of the Notes to the Unaudited Pro Forma Consolidated Financial Statements.
​
(k)
Reflects net change in interest expense as a result of the issuance of the notes using an assumed interest rate. After the consummation of the transactions (as described in Note 1), Wabash National’s outstanding indebtedness on a pro forma basis as of June 30, 2017 will consist of (i) outstanding letters of credit of  $5.4 million on the amended $175.0 million senior secured revolving credit facility that bears interest at LIBOR plus a spread of 150 to 200 basis points, (ii) $188.5 million of borrowings under the senior secured first lien term loan facility that bears interest at LIBOR plus 325 basis points, (iii) $44.9 million of borrowings under the convertible senior notes that bear interest at 3.375% and (iv) $325.0 million of borrowings under the notes offered hereby bearing an assumed interest rate. The individual components of the net change in interest expense are as follows (in millions):
​
​
   
10
​
​ ​ ​
Twelve months
ending
December 31, 2016
​ ​
Six months
ending
June 30, 2017
​ ​
Twelve months
ending
June 30, 2017
​
Historical interest expense as reported by Wabash
 ​ ​ ​ $ 15.7 ​ ​ ​ ​ $ 5.9 ​ ​ ​ ​ $ 13.5 ​ ​
Historical interest expense as reported by Supreme
 ​ ​ ​ ​ 0.5 ​ ​ ​ ​ ​ 0.5 ​ ​ ​ ​ ​ 0.8 ​ ​
Total historical interest expense as reported
​ ​ ​ $ 16.1 ​ ​ ​ ​ $ 6.4 ​ ​ ​ ​ $ 14.3 ​ ​
Less: Removal of Supreme interest expense associated with term loan paid in full at Acquisition
​ ​ ​ ​ (0.6) ​ ​ ​ ​ ​ (0.3) ​ ​ ​ ​ ​ (0.6) ​ ​
Pro forma interest expense
​ ​ ​ ​ 19.2 ​ ​ ​ ​ ​ 9.6 ​ ​ ​ ​ ​ 19.2 ​ ​
Pro forma adjusted interest expense
​ ​ ​ $ 34.7 ​ ​ ​ ​ $ 15.7 ​ ​ ​ ​ $ 32.9 ​ ​
Pro forma adjustment
​ ​ ​ $ 18.6 ​ ​ ​ ​ $ 9.3 ​ ​ ​ ​ $ 18.6 ​ ​
​
(l)
Reflects the elimination of sales from Wabash National to Supreme Industries as well as the related cost of sales. No estimated impact to working capital or gross profit on the pro forma consolidated financial statements.
​
(m)
Reflects net change in interest income as a result of the cash used for the transaction.
​
(n)
Reflects the adjustments to record income tax expense for the income before income taxes on the pro forma adjustments at an effective tax rate of 35.6% for the twelve month period ending December 31, 2016, 33.4% for the six month period ending June 30, 2017 and 34.4% for the twelve month period ending June 30, 2017.
​
(o)
Certain reclassifications have been made in the historical Supreme Industries financial statements to conform to Wabash National’s financial statement presentation. These reclassifications have no impact on net income or stockholders’ equity.
​
​
   
11

WABASH NATIONAL Corp Reports