Exhibit 99.1 

  

Media Contact: Dana Stelsel Director, Corporate Communications (765) 771-5766 dana.stelsel@wabashnational.com

 

Investor Relations:

Jeff Taylor

Senior Vice President, Chief Financial Officer
(765) 771-5310
jeff.taylor@wabashnational.com

 

 

Wabash National Corporation Announces Second Quarter 2018 Results;

Achieved Record Quarterly Net Sales on Continued Strong Demand

 

·

Achieved record quarter net sales of $613 million, a 41 percent increase from prior year

·

Gross profit and operating income increased 26 percent and 19 percent, respectively, compared to the prior year

·

Second quarter GAAP and non-GAAP earnings of $0.54 and $0.49 per diluted share, respectively

·

Backlog increased 51 percent to $1.2 billion compared to the prior year

·

Company updates full-year 2018 guidance for new trailer shipments of 60,000 to 62,000 trailers and GAAP and non-GAAP earnings to $2.06 to $2.12 per diluted share and $1.94 to $2.00 per diluted share, respectively

 

LAFAYETTE, Ind. – July 31, 2018 – Wabash National Corporation (NYSE: WNC), a diversified industrial manufacturer and a leading producer of semi-trailers, truck bodies and liquid transportation systems, today reported results for the quarter ending June 30, 2018.

 

Net sales for the second quarter 2018 increased 41 percent to $613 million from $436 million in the prior year quarter. This increase reflects strong top-line growth in each of the Company’s three operating segments due to a continued healthy demand environment and the favorable impact of the inclusion of the results of Supreme Industries, Inc. (“Supreme”), acquired in the third quarter of 2017. Gross profit increased $17.6 million and profit margin decreased 160 basis points as compared to the prior year period. The decrease in the profit margin is due primarily to increased material costs, higher labor costs attributable to attracting and retaining a skilled workforce and supplier constraints for key materials leading to production inefficiencies. Operating income increased 19 percent to $46.0 million compared to operating income of $38.7 million for the second quarter 2017.

 

“We are pleased to have delivered a strong performance in the quarter, especially considering the challenging environment we faced, as we continue to execute our strategic plan to profitably grow and diversify,” stated Brent Yeagy, president and chief executive officer. “We achieved a new record for quarterly consolidated revenue at approximately $613 million, which is 13 percent higher than the previous record from the fourth quarter of 2015. This new record is directly attributable to the addition of the Supreme business and our Final Mile Products segment. Needless to say, we continue to believe our Final Mile Products business will help drive future growth for Wabash National. Overall, all three of our reporting segments continue to experience strong demand in most end markets and we expect a stronger second half of 2018.”

 

 

Mr. Yeagy continued, “Backlog totaling $1.2 billion as of June 30, 2018, remains seasonally and historically strong, increasing approximately 51 percent when compared to the prior year quarter. Trailer and truck body demand and orders have remained strong for the past several months continuing the trend from the first quarter and supporting our belief in the growing secular demand in e-commerce and home delivery. We continue to take steps to reduce the margin impact of U.S. tariff policy, raw material inflation, supply base disruptions and a very tight labor market on our business in 2018. As a result, we are updating our full-year guidance for 2018 new trailer shipments to 60,000 to 62,000 units and GAAP and non-GAAP earnings to $2.06 to $2.12 per diluted share and $1.94 to $2.00 per diluted share, respectively. With our focus on people, purpose and performance we will continue to drive ongoing productivity improvements throughout the organization and progress on our strategic initiatives.”

 

Net income for the second quarter 2018 was $31.9 million, or $0.54 per diluted share, compared to the second quarter 2017 net income of $22.9 million, or $0.36 per diluted share. Second quarter 2018 non-GAAP adjusted earnings were $29.2 million, or $0.49 per diluted share, a $6.0 million increase as compared to the prior year period. Non-GAAP adjusted earnings for the second quarter 2018 excludes net gains on sale of former facilities and acquisition and integration related activities associated with Supreme. Non-GAAP adjusted earnings for the second quarter 2017 includes charges related to the early extinguishment of debt in connection with the Company’s repurchase of a portion of its outstanding convertible senior notes, one-time executive severance costs and losses on closure of former facilities.

 

Operating EBITDA, a non-GAAP measure that excludes the effects of certain items, for the second quarter 2018 was $58.9 million, an increase of $9.4 million compared to operating EBITDA for the prior year period. On a trailing twelve month basis, net sales totaled $2.1 billion, generating operating EBITDA of $195.5 million, or 9.4 percent of net sales.

 

 

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

 

		Three Months Ended
(Dollars in thousands, except per share amounts)		June 30,				September 30,				December 31,				March 31,				June 30,
		2017				2017				2017				2018				2018
Net Sales		$	435,903			$	425,098			$	543,444			$	491,319			$	612,690
Gross Profit Margin			15.5	%			14.3	%			13.4	%			13.1	%			13.9	%
Income from Operations		$	38,668			$	26,591			$	35,293			$	25,656			$	46,041
Income from Operations Margin			8.9	%			6.3	%			6.5	%			5.2	%			7.5	%
Net Income		$	22,945			$	18,947			$	49,356			$	21,272			$	31,902
Diluted EPS		$	0.36			$	0.30			$	0.80			$	0.35			$	0.54
Non-GAAP Measures(1):
Operating EBITDA		$	49,450			$	46,561			$	51,062			$	38,984			$	58,881
Operating EBITDA Margin			11.3	%			11.0	%			9.4	%			7.9	%			9.6	%
Adjusted Earnings		$	23,189			$	21,214			$	22,250			$	16,857			$	29,186
Adjusted Diluted EPS		$	0.37			$	0.34			$	0.36			$	0.28			$	0.49

  

Notes:

(1)

See “Non-GAAP Measures” below for explanation of the non-GAAP results included above.

  

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 second quarter of 2018 and 2017. Final Mile Products segment did not exist as a separate segment in the second quarter of 2017; therefore, only 2018 highlights are shown. 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								Final Mile Products
Three months ended June 30
			2018				2017				2018				2017				2018
New trailers shipped			15,650				13,600				650				550				-
Net sales		$	402,507			$	348,140			$	94,085			$	90,827			$	121,209
Gross profit		$	47,513			$	50,882			$	16,692			$	17,149			$	20,923
Gross profit margin			11.8	%			14.6	%			17.7	%			18.9	%			17.3	%
Income from operations		$	40,784			$	42,155			$	4,395			$	5,061			$	10,258
Income from operations margin			10.1	%			12.1	%			4.7	%			5.6	%			8.5	%

  

Commercial Trailer Products’ net sales for the second quarter were $403 million, an increase of $54 million, or 16 percent, as compared to the prior year. Gross profit margin for the second quarter decreased 280 basis points as compared to the prior year period primarily due to increases in material costs due to tariff related inflation, short term labor costs required to meet current demand and supplier induced production interruptions. Operating income decreased $1.4 million, or 3 percent, from the second quarter last year to $40.8 million, or 10.1 percent of net sales.

 

 

Diversified Products’ net sales for the second quarter were $94 million, an increase of $3 million, or 4 percent, as compared to the prior year, due primarily to the increased demand for liquid tank trailers as compared to the previous year period. Gross profit and profit margins as compared to the prior year period decreased $0.5 million and 120 basis points, respectively, primarily due to increased material costs and short-term labor inefficiencies, including higher overtime levels in order to meet strong demand requirements. Operating income for the second quarter 2018 was $4.4 million, or 4.7 percent of net sales, a decrease of $0.7 million compared to the prior year.

 

Final Mile Products’ net sales for the second quarter totaled $121 million. This is the highest revenue quarter in Supreme’s history and is the result of a strong demand market in the truck body industry. Gross profit and gross profit margin for the second quarter were $20.9 million and 17.3 percent, respectively. Operating income for the second quarter 2018 totaled $10.3 million, or 8.5 percent of net sales.

 

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 contains 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, charges incurred in connection with the acquisition and integration of Supreme, and other non-operating income and expense. Management believes providing operating EBITDA is useful for investors to understand the Company’s performance and results of operations period to period with the exclusion of the items identified above. Management believes the presentation of operating EBITDA, when combined with the GAAP presentations of operating income and net 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 for the three- and six-month periods ending June 30, 2018 and 2017 reflect adjustments for charges incurred in connection with acquisition and integration of Supreme, the losses attributable to the Company’s extinguishment of debt, executive severance costs and income or losses recognized on sale of former branch locations. Prior periods would also include adjustments related to tax benefits associated with the adjustment of the Company’s net deferred income tax liability as a result of the Tax Cuts and Jobs Act of 2017 and reversal of reserves for uncertain tax positions. Management believes providing adjusted measures and excluding certain items facilitates comparisons to the Company’s prior year periods and, when combined with the 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 net income per diluted share is included in the tables following this release.

 

 

Second Quarter 2018 Conference Call

Wabash National will conduct a conference call to review and discuss its second quarter results on August 1, 2018 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 October 24, 2018. Meeting access also will be available via conference call at 800-708-4539, participant code 47275547.

 

About Wabash National Corporation

Headquartered in Lafayette, Indiana, Wabash National Corporation (NYSE: WNC) is a diversified industrial manufacturer and a leading producer of semi-trailers, truck bodies 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, Supreme^®, Transcraft^®, Walker Engineered Products, and Walker Transport. Learn more at 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, all statements regarding the Company’s outlook for trailer and truck body shipments, backlog, expectations regarding demand levels for trailers, truck bodies, non-trailer equipment and our other diversified product offerings, pricing, profitability and earnings, cash flow and liquidity, opportunity to capture higher margin sales, new product innovations, our growth and diversification strategies, our expectations for improved financial performance during the course of the year and our expectations with regards to capital allocation. 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 continued integration of Supreme into the Company’s business, adverse reactions to the transaction by customers, suppliers or strategic partners, 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 including the impact of tariffs or other international trade developments, risks in implementing and sustaining improvements in the Company’s manufacturing operations and cost containment, dependence on industry trends and timing, customer acceptance of and reactions to pricing changes 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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share amounts)

(Unaudited)

 

 

		Three Months Ended June 30,								Six Months Ended June 30,
		2018				2017				2018				2017
Net sales		$	612,690			$	435,903			$	1,104,009			$	798,619
Cost of sales			527,375				368,225				954,576				671,584
Gross profit			85,315				67,678				149,433				127,035
General and administrative expenses			25,778				19,018				50,887				37,436
Selling expenses			8,556				5,897				16,901				12,070
Amortization of intangibles			4,940				4,095				9,881				8,597
Acquisition expenses			-				-				68				-
Income from operations			46,041				38,668				71,696				68,932
Other income (expense):
Interest expense			(7,151	)			(2,888	)			(14,605	)			(5,878	)
Other, net			4,037				325				11,953				1,657
Income before income taxes			42,927				36,105				69,044				64,711
Income tax expense			11,025				13,160				15,870				21,593
Net income		$	31,902			$	22,945			$	53,174			$	43,118
Dividends declared per share		$	0.075			$	0.06			$	0.15			$	0.12
Basic net income per share		$	0.55			$	0.38			$	0.92			$	0.72
Diluted net income per share		$	0.54			$	0.36			$	0.89			$	0.68
Comprehensive income (loss):
Net income		$	31,902			$	22,945			$	53,174			$	43,118
Foreign currency translation adjustment			(600	)			294				(127	)			772
Unrealized holding loss on investments			(44	)			-				(109	)			-
Net comprehensive income		$	31,258			$	23,239			$	52,938			$	43,890
Basic net income per share:
Net income applicable to common stockholders		$	31,902			$	22,945			$	53,174			$	43,118
Weighted average common shares outstanding			57,879				59,902				57,836				60,022
Basic net income per share		$	0.55			$	0.38			$	0.92			$	0.72
Diluted net income per share:
Net income applicable to common stockholders		$	31,902			$	22,945			$	53,174			$	43,118
Weighted average common shares outstanding			57,879				59,902				57,836				60,022
Dilutive shares from assumed conversion of convertible senior notes			435				1,831				1,073				1,762
Dilutive stock options and restricted stock			960				1,474				1,114				1,519
Diluted weighted average common shares outstanding			59,274				63,207				60,023				63,303
Diluted net income per share		$	0.54			$	0.36			$	0.89			$	0.68

 

 

 

 

WABASH NATIONAL CORPORATION

SEGMENTS AND RELATED INFORMATION

(Dollars in thousands)

(Unaudited)

  

		Commercial				Diversified				Final Mile				Corporate and
Three Months Ended June 30,		Trailer Products				Products				Products				Eliminations				Consolidated
2018
New trailers shipped			15,650				650				—				—				16,300
Used trailers shipped			250				50				—				—				300
New Trailers		$	385,131			$	37,602			$	—			$	—			$	422,733
Used Trailers			2,499				628			$	—				—				3,127
Components, parts and service			9,042				31,926			$	2,623				(5,091	)			38,500
Equipment and other			5,835				23,929			$	118,586				(20	)			148,330
Total net external sales		$	402,507			$	94,085			$	121,209			$	(5,111	)		$	612,690
Gross profit		$	47,513			$	16,692			$	20,923			$	187			$	85,315
Income (Loss) from operations		$	40,784			$	4,395			$	10,258			$	(9,396	)		$	46,041
2017
New trailers shipped			13,600				550				—				—				14,150
Used trailers shipped			50				50				—				—				100
New Trailers		$	329,405			$	33,290			$	—			$	—			$	362,695
Used Trailers			1,236				637			$	—				—				1,873
Components, parts and service			13,102				32,194			$	—				(3,064	)			42,232
Equipment and other			4,398				24,705			$	—				—				29,103
Total net external sales		$	348,140			$	90,827			$	—			$	(3,064	)		$	435,903
Gross profit		$	50,882			$	17,149			$	—			$	(352	)		$	67,678
Income (Loss) from operations		$	42,154			$	5,062			$	—			$	(8,548	)		$	38,668
Six Months Ended June 30,
2018
New trailers shipped			28,300				1,200				—				—				29,500
Used trailers shipped			750				50				—				—				800
New Trailers		$	695,449			$	71,441			$	—			$	—			$	766,890
Used Trailers			6,906				1,714			$	—				—				8,620
Components, parts and service			17,690				65,894			$	5,036				(11,853	)			76,767
Equipment and other			9,884				50,239			$	191,632				(23	)			251,732
Total net external sales		$	729,929			$	189,288			$	196,668			$	(11,876	)		$	1,104,009
Gross profit		$	84,036			$	33,990			$	32,455			$	(1,047	)		$	149,434
Income (Loss) from operations		$	70,265			$	9,423			$	10,867			$	(18,859	)		$	71,696
2017
New trailers shipped			24,000				1,050				—				—				25,050
Used trailers shipped			150				50				—				—				200
New Trailers		$	586,595			$	63,985			$	—			$	—			$	650,580
Used Trailers			2,123				1,856			$	—				—				3,979
Components, parts and service			25,845				65,869			$	—				(5,047	)			86,667
Equipment and other			8,367				49,026			$	—				—				57,393
Total net external sales		$	622,929			$	180,737			$	—			$	(5,047	)		$	798,619
Gross profit		$	93,008			$	34,742			$	—			$	(715	)		$	127,035
Income (Loss) from operations		$	75,546			$	9,666			$	—			$	(16,280	)		$	68,932

 

 

WABASH NATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

  

		June 30,				December 31,
		2018				2017
		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents		$	119,215			$	191,521
Accounts receivable			193,450				146,836
Inventories			234,122				180,735
Prepaid expenses and other			57,343				57,299
Total current assets		$	604,130			$	576,391
Property, plant and equipment			195,546				195,363
Goodwill			315,977				317,464
Intangible assets			226,618				237,030
Other assets			26,860				25,265
		$	1,369,131			$	1,351,513
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt		$	1,880			$	46,020
Current portion of capital lease obligations			281				290
Accounts payable			183,966				108,448
Other accrued liabilities			122,552				128,910
Total current liabilities		$	308,679			$	283,668
Long-term debt			503,576				504,091
Capital lease obligations			879				1,012
Deferred income taxes			36,808				36,955
Other noncurrent liabilities			19,974				19,724
Stockholders' equity		$	499,215				506,063
		$	1,369,131			$	1,351,513

 

 

WABASH NATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

 

		Six Months Ended June 30,
		2018				2017
Cash flows from operating activities
Net income		$	53,174			$	43,118
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation			10,330				8,412
Amortization of intangibles			9,881				8,597
Net gain on the sale of assets			(9,743	)			(2,502	)
Deferred income taxes			(81	)			45
Loss on debt extinguishment			174				764
Stock-based compensation			5,390				5,430
Non-cash interest expense			1,110				1,042
Changes in operating assets and liabilities
Accounts receivable			(46,564	)			30,656
Inventories			(56,057	)			(60,748	)
Prepaid expenses and other			1,756				3,998
Accounts payable and accrued liabilities			72,792				35,285
Other, net			(1,691	)			1,147
Net cash provided by operating activities		$	40,471			$	75,244
Cash flows from investing activities
Capital expenditures			(11,117	)			(10,856	)
Proceeds from the sale of property, plant, and equipment			16,426				3,736
Other, net			3,060				1,220
Net cash provided by (used in) investing activities		$	8,369			$	(5,900	)
Cash flows from financing activities
Proceeds from exercise of stock options			910				5,630
Dividends paid			(9,271	)			(7,767	)
Borrowings under revolving credit facilities			423				371
Payments under revolving credit facilities			(423	)			(371	)
Principal payments under capital lease obligations			(143	)			(303	)
Proceeds from issuance of term loan credit facility			—				189,470
Principal payments under term loan credit facility			(940	)			(190,418	)
Principal payments under industrial revenue bond			(92	)			(311	)
Debt issuance costs paid			—				(354	)
Stock repurchase			(21,413	)			(42,794	)
Convertible senior notes repurchase			(80,200	)			(7,331	)
Net cash used in financing activities		$	(111,149	)		$	(54,178	)
Net (decrease) increase in cash, cash equivalents, and restricted cash		$	(62,309	)		$	15,166
Cash, cash equivalents, and restricted cash at beginning of period			191,521				163,467
Cash, cash equivalents, and restricted cash at end of period		$	129,212			$	178,633

 

 

 

WABASH NATIONAL CORPORATION

RECONCILIATION OF GAAP FINANCIAL MEASURES TO

NON-GAAP FINANCIAL MEASURES

(Dollars in thousands, except per share amounts)

(Unaudited)

 

Operating EBITDA1:
		Three Months Ended June 30,								Six Months Ended June 30,
		2018				2017				2018				2017
Net income		$	31,902			$	22,945			$	53,174			$	43,118
Income tax expense			11,025				13,160				15,870				21,593
Interest expense			7,151				2,888				14,605				5,878
Depreciation and amortization			10,107				8,315				20,211				17,009
Stock-based compensation			2,733				2,467				5,390				5,430
Acquisition expenses			-				-				68				-
Other non-operating income			(4,037	)			(325	)			(11,953	)			(1,657	)
Operating EBITDA		$	58,881			$	49,450			$	97,365			$	91,371

 

		Three Months Ended																Trailing Twelve Months
		September 30, 2017				December 31, 2017				March 31, 2018				June 30, 2018				June 30, 2018
Net income		$	18,947			$	49,356			$	21,272			$	31,902			$	121,477
Income tax expense			10,728				(21,204	)			4,846				11,025				5,395
Interest expense			3,187				7,335				7,454				7,151				25,127
Depreciation and amortization			8,386				9,651				10,104				10,107				38,248
Stock-based compensation			2,881				2,117				2,657				2,733				10,388
Acquisition expenses			8,704				4,002				567				-
Other non-operating income			(6,271	)			(194	)			(7,916	)			(4,037	)			(18,418	)
Operating EBITDA		$	46,561			$	51,062			$	38,984			$	58,881			$	195,488

 

Adjusted Earnings2:
		Three Months Ended June 30,																Six Months Ended June 30,
		2018								2017								2018								2017
		$				Per Share				$				Per Share				$				Per Share				$				Per Share
Net Income		$	31,902			$	0.54			$	22,945			$	0.36			$	53,174			$	0.89			$	43,118			$	0.68
Adjustments:
Facility transactions3			(3,506	)			(0.06	)			18				-				(10,629	)			(0.18	)			(1,655	)			(0.03	)
Loss on debt extinguishment			-				-				125				-				174				-				765				0.01
Acquisition expenses and related charges			(164	)			-				-				-				819				0.01				-				-
Executive severance expense			-				-				238				-				-				-				238				-
Tax effect of aforementioned items			954				0.02				(137	)			-				2,505				0.04				235				-
Adjusted earnings		$	29,186			$	0.49			$	23,189			$	0.37			$	46,043			$	0.77			$	42,701			$	0.67
Weighted Average # of Diluted Shares O/S			59,274								63,207								60,023								63,303

 

		Three Months Ended
		September 30, 2017								December 31, 2017								March 31, 2018
		$				Per Share				$				Per Share				$				Per Share
Net Income		$	18,947			$	0.30			$	49,356			$	0.80			$	21,272			$	0.35
Adjustments:
Facility transactions3			(5,165	)			(0.08	)			274				-				(7,123	)			(0.12	)
Loss on debt extinguishment			3				-				32				-				174				-
Acquisition expenses and related charges			8,704				0.14				6,308				0.10				983				0.02
Tax effect of aforementioned items			(1,275	)			(0.02	)			(2,381	)			(0.04	)			1,551				0.03
Tax reform and other discrete tax adjustments			-				-				(31,339	)			(0.51	)			-				-
Adjusted earnings		$	21,214			$	0.34			$	22,250			$	0.36			$	16,857			$	0.28
Weighted Average # of Diluted Shares O/S			62,236								61,567								60,850

 

1Operating EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, acquisition expenses and related charges, and other non-operating income and expense.

2Adjusted earnings and adjusted earnings per diluted share reflect adjustments for charges incurred in connection with acquisition expense and related costs, the losses attributable to the Company's extinguishment of debt, income or losses recognized on the sale and/or closure of former Company locations, and one-time executive severance costs.

3Facility transactions in 2017 and 2018 relate to gains and/or losses incurred for the sale or closure of former Company locations.