WABASH NATIONAL Corp

Previous wording

The following table sets forth certain operating data as a percentage of net sales for the three months ended March 31, 2024 and 2023:

Current wording

The following table sets forth certain operating data as a percentage of net sales for the three and six months ended June 30, 2024 and 2023:

Previous wording

For the three-month period ended March 31, 2024, we recorded net sales of $515.3 million compared to $621.0 million in the prior year period. Net sales for the three-month period ended March 31, 2024, decreased $105.7 million, or 17.0%, compared to the prior year period. New trailer shipments decreased 27.8% and new truck body shipments decreased 3.3%. The decrease in new trailer (primarily dry vans) shipments outpaced the increase in revenue per unit across all product lines except reefers, driving the overall decrease in revenue. Net sales within the P&S reportable segment increased $2.1 million compared to the prior year period, primarily due to an increase in sales within our Components business, as well as our Upfitting Solutions and Services business. Gross profit margin decreased to 14.8% in the first quarter of 2024 compared to 18.7% in the prior year period primarily driven by lower sales volumes and consistent fixed costs. We continue to focus on positioning ourselves to profitably capitalize on current demand while being vigilant to respond to any key changes to the industry and overall economy.

Current wording

For the three-month period ended June 30, 2024, we recorded net sales of $550.6 million compared to $686.6 million in the prior year period. Net sales for the three-month period ended June 30, 2024, decreased $136.0 million, or 19.8%, compared to the prior year period. New trailer shipments decreased 21.8% and new truck body shipments decreased 2.5%. The decrease in new trailer (primarily dry vans) shipments outpaced the increase in revenue per unit across all product lines except dry vans, driving the overall decrease in revenue. Net sales within the P&S reportable segment decreased $7.2 million compared to the prior year period, primarily due to a decrease in sales within our Process Systems and Components businesses, partially offset by an increase in sales in our Upfitting Solutions and Services and Aftermarket Parts businesses. Overall, gross profit margin decreased to 16.3% in the second quarter of 2024 compared to 22.0% in the prior year period primarily driven by lower sales volumes and consistent fixed costs. We continue to focus on positioning ourselves to profitably capitalize on current demand while being vigilant to respond to any key changes to the industry and overall economy.

Previous wording

For the three-month period ended March 31, 2024, selling, general and administrative expenses increased $0.8 million as compared to the same period in 2023. As a percentage of net sales, selling, general and administrative expenses were 8.5% in the first quarter of 2024 as compared to 6.9% in the prior year period. The overall increase in selling, general and administrative expenses in the current year period compared to the same period in the prior year was largely due to an increase in professional fees and outside services costs of $1.0 million, which is due in part to our recurring revenue and truck body initiatives. In addition, there were smaller increases of $0.3 million from maintenance and repair costs and $0.2 million from advertising and promotional expenses. The overall increase in selling, general and administrative fees was partially offset by lower employee-related costs of $1.2 million primarily due to decreased costs of employee benefits and incentive programs.

Current wording

For the three-month period ended June 30, 2024, selling, general and administrative expenses declined $2.6 million as compared to the same period in 2023. As a percentage of net sales, selling, general and administrative expenses were 7.6% in the second quarter of 2024 as compared to 6.5% in the prior year period. The overall decrease in selling, general and administrative expenses in the current year period compared to the same period in the prior year was largely driven by a decrease of $4.2 million in employee-related costs, including benefits and incentive programs partially offset by an increase of $1.6 million of advertising and promotional expenses.

Previous wording

Net sales in the first quarter of 2024 decreased $105.7 million, or 17.0%, compared to the first quarter of 2023. By business segment, prior to the elimination of intercompany sales, sales and related units sold were as follows (dollars in thousands):

Current wording

Net sales in the second quarter of 2024 decreased $136.0 million, or 19.8%, compared to the second quarter of 2023. By business segment, prior to the elimination of intercompany sales, sales and related units sold were as follows (dollars in thousands):

Previous wording

P&S segment sales, prior to the elimination of intersegment sales, were $49.2 million for the first quarter of 2024, an increase of $2.1 million, or 4.4%, compared to the first quarter of 2023. The overall increase in sales for this segment was due primarily to our Upfitting Solutions and Services business which increased approximately $1.7 million and our Composites business, which focuses on the use of DuraPlate® composite panels beyond the semi-trailer market, which increased approximately $1.2 million compared to the prior year period. The overall increase in sales was partially offset by lower sales within our Engineered Products business of approximately $2.2 million.

Current wording

P&S segment sales, prior to the elimination of intersegment sales, were $54.9 million for the second quarter of 2024, a decrease of $7.2 million, or 11.5%, compared to the second quarter of 2023. The overall decrease in sales for this segment was due primarily to lower sales in our Process Systems and Components businesses of $6.9 million and $4.7 million, respectively. The overall decrease in sales was partially offset by higher sales within our Upfitting Solutions and Services business and our Aftermarket Parts business of $2.6 million and $1.5 million, respectively.

Previous wording

Cost of sales was $438.8 million in the first quarter of 2024, a decrease of $66.1 million, or 13.1%, compared to the prior year period. Cost of sales is comprised of material costs, a variable expense, and other manufacturing costs, comprised of both fixed and variable expenses, including direct and indirect labor, outbound freight, overhead expenses, and depreciation.

Current wording

Cost of sales was $461.0 million in the second quarter of 2024, a decrease of $74.6 million, or 13.9%, compared to the prior year period. Cost of sales is comprised of material costs, a variable expense, and other manufacturing costs, comprised of both fixed and variable expenses, including direct and indirect labor, outbound freight, overhead expenses, and depreciation.

Previous wording

Gross profit was $76.5 million in the first quarter of 2024, a decrease of $39.6 million from the prior year period. Gross profit as a percentage of net sales was 14.8% for the first quarter of 2024, compared to 18.7% for the same period in 2023. Gross profit by segment was as follows (dollars in thousands):

Current wording

Gross profit was $89.6 million in the second quarter of 2024, a decrease of $61.4 million from the prior year period. Gross profit as a percentage of net sales was 16.3% for the second quarter of 2024, compared to 22.0% for the same period in 2023. Gross profit by segment was as follows (dollars in thousands):

Previous wording

Interest expense totaled $5.0 million during both the first quarter of 2024 and 2023. Interest expense relates to interest and non-cash accretion charges on our Senior Notes due 2028 and Revolving Credit Agreement.

Current wording

Interest expense totaled $4.9 million during both the second quarter of 2024 and 2023. Interest expense relates to interest and non-cash accretion charges on our Senior Notes due 2028 and Revolving Credit Agreement.

Previous wording

Other, net for the first quarter of 2024 represented income of $1.6 million as compared to income of $0.4 million for the prior year period. Income for the current and prior year periods primarily relate to interest income.

Current wording

Other, net for the second quarter of 2024 represented income of $1.6 million as compared to income of $0.5 million for the prior year period. Income for the current and prior year periods primarily relate to interest income.

Previous wording

We recognized income tax expense of $6.4 million in the first quarter of 2024 compared to $13.9 million for the same period in the prior year. The effective tax rate for this period was 26.0% compared to a rate of 21.3% for the same period in the prior year. For the first three months of 2024, the effective tax rate differs from the U.S. Federal statutory rate of 21% primarily due to the impact of state taxes while the effective rate of first three months of 2023 differs primarily due to state taxes net of discrete items incurred related to stock-based compensation.

Current wording

We recognized income tax expense of $9.8 million in the second quarter of 2024 compared to $24.3 million for the same period in the prior year. The effective tax rate for this period was 25.1% compared to a rate of 24.6% for the same period in the prior year. For the first six months of 2024, the effective tax rate differs from the U.S. Federal statutory rate of 21% primarily due to the impact of state taxes while the effective rate of first six months of 2023 differs primarily due to state taxes net of discrete items incurred related to stock-based compensation.

Previous wording

TS segment sales, prior to the elimination of intersegment sales, were $470.4 million for the first quarter of 2024, a decrease of $107.6 million, or 18.6%, compared to the first quarter of 2023. New trailers shipped during the first quarter of 2024 totaled 8,500 trailers compared to 11,780 trailers in the prior year period, a decrease of 27.8%, which was primarily driven by lower new trailer shipments (primarily dry vans). New truck bodies shipped during the first quarter of 2024 totaled 3,690 truck bodies compared to 3,815 truck bodies in the prior year period, a decrease of 3.3%, despite a slight increase in truck body revenue due to higher revenue per unit. The decrease in new trailer shipments outpaced the increase in revenue per new trailer unit across all trailer product lines except reefers, driving the overall decrease in revenue.

Current wording

TS segment sales, prior to the elimination of intersegment sales, were $969.1 million for the first six months of 2024, a decrease of $239.6 million, or 19.8%, compared to the first six months of 2023. New trailers shipped during the first six months of 2024 totaled 17,745 trailers compared to 23,610 trailers in the prior year period, a decrease of 24.8%, which was primarily driven by lower new trailer shipments (primarily dry vans). The decrease in new trailer shipments outpaced the increase in revenue per new trailer unit across all trailer product lines except dry vans, driving the overall decrease in revenue. New truck bodies shipped during the first six months of 2024 totaled 7,615 truck bodies compared to 7,835 truck bodies in the prior year period, a decrease of 2.8%, despite a slight increase in truck body revenue due to higher revenue per unit.

Previous wording

TS segment cost of sales was $407.3 million in the first quarter of 2024, a decrease of $67.2 million, or 14.2%, compared to the prior year period. The decrease in cost of sales, which was primarily driven by lower shipment volumes, was due to a decrease in materials costs of $65.6 million, or 20.0%, along with a decrease in certain other manufacturing costs.

Current wording

TS segment cost of sales was $831.3 million in the first six months of 2024, a decrease of $139.9 million, or 14.4%, compared to the prior year period. The decrease in cost of sales, which was primarily driven by lower shipment volumes and was due to a decrease in materials costs of $131.7 million, or 19.5%, along with a decrease in certain other manufacturing costs.

Previous wording

TS segment gross profit was $63.1 million for the first quarter of 2024 compared to $103.6 million for the first quarter of 2023. Gross profit, prior to the elimination of intersegment sales, as a percentage of net sales, was 13.4% in the first quarter of 2024 compared to 17.9% in the comparative 2023 period. The overall decrease in gross profit from the prior year period was primarily driven by a decrease in new trailer shipments (primarily our dry van products) of approximately $34.8 million, partially offset by net price favorability driven primarily by higher pricing across all product lines except reefers.

Current wording

TS segment gross profit was $137.8 million for the first six months of 2024 compared to $237.5 million for the first six months of 2023. Gross profit, prior to the elimination of intersegment sales, as a percentage of net sales, was 14.2% in the first six months of 2024 compared to 19.7% in the comparative 2023 period. The overall decrease in gross profit from the prior year period was primarily driven by a decrease in new trailer shipments (primarily our dry van products), partially offset by net price favorability driven primarily by higher pricing across all product lines except dry vans.

Previous wording

General and administrative expenses for the first quarter of 2024 increased $0.6 million, or 1.8%, from the prior year period. The increase from the prior year period was due in part to an increase in professional fees and outside services costs of approximately $1.1 million due in part to our recurring revenue and truck body initiatives. In addition, travel related costs increase $0.4 million and maintenance and repair costs increased $0.3 million compared to the prior year. The overall increase in general and administrative expenses was partially offset by a decrease in employee-related costs of approximately $1.4 million, primarily due to decreased costs of employee benefits and incentive programs. As a percentage of net sales, general and administrative expenses were 7.1% for the first quarter of 2024 compared to 5.8% for the first quarter of 2023. The overall increase in general and administrative expenses as a percentage of net sales was primarily attributable to the increase in professional fees and outside services costs.

Current wording

General and administrative expenses for the first six months of 2024 decreased $2.7 million, or 3.7%, from the prior year period. The decrease from the prior year period was due in part to a decrease in employee-related costs of approximately $4.9 million, primarily due to decreased costs of employee benefits and incentive programs. This decrease was partially offset by an increase in professional fees and outside services costs of approximately $0.8 million and an increase in maintenance and repair costs of $0.7 million compared to the prior year. As a percentage of net sales, general and administrative expenses were 6.6% for the first six months of 2024 compared to 5.6% for the first six months of 2023. The overall increase in general and administrative expenses as a percentage of net sales was primarily attributable to fixed costs on lower net sales in 2024.

Previous wording

Selling expenses were $7.0 million in the first quarter of 2024, an increase of $0.2 million, or 2.3%, compared to the prior year period. The increase was primarily attributable to higher advertising and promotional expenses of approximately $0.2 million. There was also a decrease in travel related costs of approximately $0.2 million offset by an increase in sales employee-related costs of approximately $0.2 million. As a percentage of net sales, selling expenses were 1.4% for the first quarter of 2024 compared to 1.1% for the first quarter of 2023. The increase in selling expenses as a percentage of net sales was due in part to the increase in advertising and promotional expenses.

Current wording

Selling expenses were $15.0 million in the first six months of 2024, an increase of $0.9 million, or 6.4%, compared to the prior year period. The increase was primarily attributable to an increase of advertising and promotional expenses of approximately $1.9 million. This was partially offset by a decrease in employee-related costs of approximately $0.5 million. As a percentage of net sales, selling expenses were 1.4% for the first six months of 2024 compared to 1.1% for the first six months of 2023. The increase in selling expenses as a percentage of net sales was due in part to the increase in advertising and promotional expenses.

Previous wording

Amortization of intangibles was $3.2 million during both the first quarter of 2024 and 2023. Amortization of intangibles was the result of expenses recognized for intangible assets recorded from previous acquisitions.

Current wording

Amortization of intangibles was $6.1 million for the first six months of 2024 compared to $6.4 million during the first six months of 2023. Amortization of intangibles was the result of expenses recognized for intangible assets recorded from previous acquisitions. The decrease from the prior year period is related to certain of the intangible assets recorded upon the acquisition of Supreme in September 2017 that became fully amortized at December 31, 2023.

Previous wording

During the first three months of 2024, in keeping with this balanced approach, we paid dividends of approximately $4.2 million and repurchased shares under our Board approved share repurchase program totaling $15.6 million (inclusive of excise tax). Our Revolving Credit Agreement has total revolving commitments of $350.0 million and a maturity date of September 2027, which is the nearest maturity date of our long-term debt. As of March 31, 2024, there were no amounts outstanding under the Revolving Credit Agreement. Collectively, these actions demonstrate our confidence in the financial outlook of the Company and our ability to generate cash flow, both near and long term, and reinforce our overall commitment to deliver shareholder value while maintaining the flexibility to continue to execute our strategic plan for profitable growth and diversification.

Current wording

During the first six months of 2024, in keeping with this balanced approach, we paid dividends of approximately $7.8 million and repurchased shares under our Board approved share repurchase program totaling $21.7 million (inclusive of excise tax). Our Revolving Credit Agreement has total revolving commitments of $350.0 million and a maturity date of September 2027, which is the nearest maturity date of our long-term debt. As of June 30, 2024, there were no amounts outstanding under the Revolving Credit Agreement. Collectively, these actions demonstrate our confidence in the financial outlook of the Company and our ability to generate cash flow, both near and long term, and reinforce our overall commitment to deliver shareholder value while maintaining the flexibility to continue to execute our strategic plan for profitable growth and diversification.

Previous wording

Our liquidity position, defined as cash on hand and available borrowing capacity under the Revolving Credit Agreement, amounted to $389.0 million as of March 31, 2024, a decrease of 5% compared to $410.4 million as of March 31, 2023 and a decrease of 25% from $516.1 million as of December 31, 2023. The decrease as of March 31, 2024 compared to March 31, 2023 was primarily attributable to a reduced borrowing capacity on the Revolving Credit Agreement due to lower 2023 year-end accounts receivable and inventory balances. This decrease was partially offset by a higher cash balance at March 31, 2024. The decrease as of March 31, 2024 compared to December 31, 2023 was primarily attributable to lower available capacity on the Revolving Credit Agreement and a lower cash balance as of March 31, 2024. For the remainder of 2024, we expect to continue our commitment to fund our working capital requirements, capital expenditures, and our Trailers as a Service (TAAS)SM initiative from operations or available borrowing capacity under the Revolving Credit Agreement (as needed). We will continue to maintain our assets to react to any economic and/or industry changes, while also responsibly returning capital to our shareholders. We will continue to move rapidly to adjust to the current environment, including to the softening of demand for certain of our products, to preserve the strength of our balance sheet, while prioritizing the safety of our employees and ensuring the liquidity and financial well-being of the Company.

Current wording

Our liquidity position, defined as cash on hand and available borrowing capacity under the Revolving Credit Agreement, amounted to $380.9 million as of June 30, 2024, a decrease of 14% compared to $441.1 million as of June 30, 2023 and a decrease of 26% from $516.1 million as of December 31, 2023. The decrease as of June 30, 2024 compared to June 30, 2023 was primarily attributable to a lower available capacity on the Revolving Credit Agreement and a lower cash balance as of June 30, 2024. The decrease as of June 30, 2024 compared to December 31, 2023 was primarily attributable to a reduced borrowing capacity on the Revolving Credit Agreement due to lower 2023 year-end accounts receivable and inventory balances. In addition, there was a lower cash balance as of June 30, 2024 as compared to December 31, 2023. For the remainder of 2024, we expect to continue our commitment to fund our working capital requirements, capital expenditures, and our Trailers as a Service (TAAS)SM initiative from operations or available borrowing capacity under the Revolving Credit Agreement (as needed). We will continue to maintain our assets to react to any economic and/or industry changes, while also responsibly returning capital to our shareholders. We will continue to move rapidly to adjust to the current environment, including to the softening of demand for certain of our products, to preserve the strength of our balance sheet, while prioritizing the safety of our employees and ensuring the liquidity and financial well-being of the Company.

Previous wording

Contractual coupon interest expense and accretion of fees for the Senior Notes for each three-month period ended March 31, 2024 and 2023 were $4.5 million and $0.2 million, respectively. Contractual coupon interest expense and accretion of fees for the Senior Notes are included in Interest expensein our Condensed Consolidated Statements of Operations.

Current wording

Contractual coupon interest expense and accretion of fees for the Senior Notes for each three- and six-month period ended June 30, 2024 was $4.5 million and $0.2 million, and $9.0 million and $0.3 million, respectively. Contractual coupon interest expense and accretion of fees for the Senior Notes for each three- and six-month period ended June 30, 2023 was $4.5 million and $0.2 million, and $9.0 million and $0.3 million, respectively. Contractual coupon interest expense and accretion of fees for the Senior Notes are included in Interest expensein our Condensed Consolidated Statements of Operations.

Previous wording

Our liquidity position, defined as cash on hand and available borrowing capacity on the Revolving Credit Agreement, amounted to $389.0 million as of March 31, 2024 and $516.1 million as of December 31, 2023.

Current wording

Our liquidity position, defined as cash on hand and available borrowing capacity on the Revolving Credit Agreement, amounted to $380.9 million as of June 30, 2024 and $516.1 million as of December 31, 2023.

Previous wording

During the three-month period ended March 31, 2024, we had payments of principal totaling $0.2 million and borrowings of principal totaling $0.2 million. As of March 31, 2024, there were no amounts outstanding under the Revolving Credit Agreement.

Current wording

During the three-month period ended June 30, 2024, we had payments of principal totaling $0.2 million and borrowings of principal totaling $0.2 million. During the six-month period ended June 30, 2024, we had payments of principal totaling $0.4 million and borrowings of principal totaling $0.4 million. As of June 30, 2024, there were no amounts outstanding under the Revolving Credit Agreement.

Previous wording

During the three-month period ended March 31, 2023, we had payments of principal totaling $43.0 million and borrowings of principal totaling $43.0 million. As of March 31, 2023, there were no amounts outstanding under the Revolving Credit Agreement.

Current wording

During the three-month period ended June 30, 2023, we had payments of principal totaling $60.4 million and borrowings of principal totaling $60.4 million. During the six-month period ended June 30, 2023, we had payments of principal totaling $103.7 million and borrowings of principal totaling $103.7 million. As of June 30, 2023, there were no amounts outstanding under the Revolving Credit Agreement.

Previous wording

Interest expense under the Revolving Credit Agreement for each three-month period ended March 31, 2024 and 2023 was approximately $0.2 million. Interest expense under the Revolving Credit Agreement is included in Interest expensein our Condensed Consolidated Statements of Operations.

Current wording

Interest expense under the Revolving Credit Agreement for the three- and six-month periods ended June 30, 2024 was approximately $0.2 million and $0.4 million, respectively. During the three- and six-month periods ended June 30, 2023, interest expense under the Revolving Credit Agreement was approximately $0.3 million and $0.5 million, respectively. Interest expense under the Revolving Credit Agreement is included in Interest expensein our Condensed Consolidated Statements of Operations.

Previous wording

Cash used in operating activities for the first three months of 2024 totaled $17.4 million, compared to providing $69.5 million during the same period in 2023. Cash used in operations during the current year period was the result of net income adjusted for various non-cash activities including depreciation, amortization, deferred taxes, stock-based compensation, equity in an unconsolidated entity, and a $52.6 million increase in working capital. Changes in key working capital accounts for 2024 and 2023 are summarized below (in thousands):

Current wording

Cash used in operating activities for the first six months of 2024 totaled $6.4 million, compared to providing $146.3 million during the same period in 2023. Cash used in operations during the current year period was the result of net income adjusted for various non-cash activities including depreciation, amortization, deferred taxes, stock-based compensation, equity in loss of unconsolidated entity, and a $89.8 million increase in working capital. Changes in key working capital accounts for 2024 and 2023 are summarized below (in thousands):

Previous wording

Accounts receivable increased $64.7 million in the first three months of 2024 as compared to a $1.0 million increase in the prior year period. Days sales outstanding, a measure of working capital efficiency that measures the amount of time a receivable is outstanding, was 43 days and 37 days for the three months ended March 31, 2024 and 2023, respectively. The increase in accounts receivable during the first three months of 2024 compared to 2023 was primarily due to the timing of shipments and receipt of customer payments. Inventory increased by $10.9 million during the first three months of 2024 as compared to an increase of $71.8 million in the 2023 period. Our inventory turns, a commonly used measure of working capital efficiency that measures how quickly inventory turns per year, was approximately 7 times in each of the 2024 and 2023 periods. The increase in inventory for the 2024 period was primarily attributable to higher finished goods inventory. Accounts payable and accrued liabilities increased by $22.2 million during the first three months of 2024 compared to an increase of $81.7 million for the same period in 2023. Days payable outstanding, a measure of working capital efficiency that measures the amount of time a payable is outstanding, was 43 days for the three months ended March 31, 2024 compared to 45 days for the three months ended March 31, 2023.

Current wording

Accounts receivable increased $60.3 million in the first six months of 2024 as compared to a $23.8 million decrease in the prior year period. Days sales outstanding, a measure of working capital efficiency that measures the amount of time a receivable is outstanding, was 40 days and 31 days for the three months ended June 30, 2024 and 2023, respectively. The increase in accounts receivable during the first six months of 2024 compared to 2023 was primarily due to the timing of shipments and receipt of customer payments. Inventory increased by $5.3 million during the first six months of 2024 as compared to an increase of $98.6 million in the 2023 period. Our inventory turns, a commonly used measure of working capital efficiency that measures how quickly inventory turns per year, was approximately 6 times in each of the 2024 and 2023 periods. The increase in inventory for the 2024 period was primarily attributable to higher finished goods inventory partially offset by a reduction in raw materials. Accounts payable and accrued liabilities decreased by $25.3 million during the first six months of 2024 compared to an increase of $69.8 million for the same period in 2023. Days payable outstanding, a measure of working capital efficiency that measures the amount of time a payable is outstanding, was 34 days for the three months ended June 30, 2024 compared to 39 days for the three months ended June 30, 2023.

Previous wording

Investing activities used $19.2 million during the first three months of 2024, as compared to using $31.4 million during the same period in 2023. Investing activities for the first three months of 2024 related to capital expenditures for property, plant, and equipment to support growth and improvement initiatives as well as maintain current operations. For the first three months of both 2024 and 2023, investing activities included no proceeds from the sale of assets.

Current wording

Investing activities used $43.4 million during the first six months of 2024, as compared to using $59.1 million during the same period in 2023. Investing activities for the first six months of 2024 related to capital expenditures for property, plant, and equipment of $36.3 million and an additional $7.1 million of investments into unconsolidated entities. Investing activities for the first six months of 2023 related to capital expenditures for property, plant, and equipment of $55.8 million and $3.2 million of expenditures for revenue generating assets. For the first six months of both 2024 and 2023, investing activities included no proceeds from the sale of assets.

Previous wording

Financing activities used $26.9 million during the first three months of 2024 as compared to using $28.1 million during the same period in 2023. Net cash used by financing activities during the current year period primarily relates to common stock repurchases and withholdings of $22.1 million and cash dividend payments of $4.2 million. Borrowings under our Revolving Credit Agreement totaled $0.2 million, which were fully offset by principal, interest, and unused fee payments made under our Revolving Credit Agreement totaling $0.2 million. Net cash used by financing activities during the first three months of 2023 primarily related to common stock repurchases and withholdings of $23.6 million and cash dividend payments to our shareholders of $4.6 million. In addition, borrowings under our Credit Agreement totaled $43.3 million, fully offset by principal, interest, and unused fee payments made under our Credit Agreement of $43.3 million.

Current wording

Financing activities used $52.2 million during the first six months of 2024 as compared to using $46.7 million during the same period in 2023. Net cash used by financing activities during the current year period primarily relates to common stock repurchases and withholdings of $43.8 million and cash dividend payments of $7.8 million. Borrowings under our Revolving Credit Agreement totaled $0.4 million, which were fully offset by principal, interest, and unused fee payments made under our Revolving Credit Agreement totaling $0.4 million. Net cash used by financing activities during the first six months of 2023 primarily related to common stock repurchases and withholdings of $37.9 million and cash dividend payments to our shareholders of $8.4 million. In addition, borrowings under our Credit Agreement totaled $103.7 million, fully offset by principal, interest, and unused fee payments made under our Credit Agreement of $103.7 million.

Previous wording

As of March 31, 2024, our liquidity position, defined as cash on hand and available borrowing capacity under our Revolving Credit Agreement, amounted to $389.0 million, representing a decrease of $21.4 million (or 5%) compared to March 31, 2023 and a decrease of $127.1 million (or 25%) compared to December 31, 2023. The decrease as of March 31, 2024 compared to March 31, 2023 was primarily attributable to a lower borrowing capacity on the Revolving Credit Agreement due to lower 2023 year-end accounts receivable and inventory balances. This decrease was partially offset by a higher cash balance as of March 31, 2024. The decrease as of March 31, 2024 compared to December 31, 2023 was primarily attributable to lower available capacity on the Revolving Credit Agreement and a lower cash balance as of March 31, 2024. Total debt obligations amounted to $400.0 million as of March 31, 2024.

Current wording

As of June 30, 2024, our liquidity position, defined as cash on hand and available borrowing capacity under our Revolving Credit Agreement, amounted to $380.9 million, representing a decrease of $60.2 million (or 14%) compared to June 30, 2023 and a decrease of $135.2 million (or 26%) compared to December 31, 2023. The decrease as of June 30, 2024 compared to June 30, 2023 was primarily attributable to a lower available capacity on the Revolving Credit Agreement and a lower cash balance as of June 30, 2024. The decrease as of June 30, 2024 compared to December 31, 2023 was primarily attributable to a reduced borrowing capacity on the Revolving Credit Agreement due to lower 2023 year-end accounts receivable and inventory balances. In addition, there was a lower cash balance as of June 30, 2024. Total debt obligations amounted to $400.0 million as of June 30, 2024.

Previous wording

Capital spending related to property, plant, and equipment amounted to approximately $19.2 million for the first three months of 2024. In addition, there were no expenditures for revenue generating assets for the first three months of 2024.

Current wording

Capital spending related to property, plant, and equipment amounted to approximately $36.3 million for the first six months of 2024. In addition, there were no expenditures for revenue generating assets for the first six months of 2024.

Previous wording

We believe our capital expenditures for 2024 related to property, plant, and equipment will be in the range of $75 to $85 million, while capital expenditures supporting our Trailers as a Service (TAAS)SM growth initiative with revenue generating assets are expected to be in the range of $40 to $50 million. Capital spending for 2024 is expected to be utilized to support our growth strategies (including TAAS) as well as our maintenance and productivity improvement initiatives within our facilities.

Current wording

We believe our capital expenditures for 2024 related to property, plant, and equipment will be in the range of $75 to $85 million, while capital expenditures supporting our Trailers as a Service (TAAS)SM growth initiative with revenue generating assets are expected to be in the range of $10 to $20 million. Capital spending for 2024 is expected to be utilized to support our growth strategies (including TAAS) as well as our maintenance and productivity improvement initiatives within our facilities.

Previous wording

We considered whether there were any indicators of impairment during the three months ended March 31, 2024 and concluded there were none.

Current wording

We considered whether there were any indicators of impairment during the three and six months ended June 30, 2024 and concluded there were none.

Previous wording

Borrowings under the Revolving Credit Agreement bear interest at a variable rate based on the Secured Overnight Financing Rate (“SOFR”) or a base rate determined by the lender’s prime rate plus an applicable margin, as defined in the agreement. Any outstanding borrowings under the Revolving Credit Agreement bear interest at a rate, at our election, equal to (i) adjusted term SOFR plus a margin ranging from 1.25% to 1.75% or (ii) a base rate plus a margin ranging from 0.25% to 0.75%, in each case depending upon the monthly average excess availability under the Revolving Credit Agreement. We are required to pay a monthly unused line fee equal to 0.20% times the average daily unused availability along with other customary fees and expenses of our agent and lenders. During the three-month period ended March 31, 2024, we had borrowings of principal and payments of principal totaling $0.2 million under the Revolving Credit Agreement. As of March 31, 2024, there were no amounts outstanding under the Revolving Credit Agreement.

Current wording

Borrowings under the Revolving Credit Agreement bear interest at a variable rate based on the Secured Overnight Financing Rate (“SOFR”) or a base rate determined by the lender’s prime rate plus an applicable margin, as defined in the agreement. Any outstanding borrowings under the Revolving Credit Agreement bear interest at a rate, at our election, equal to (i) adjusted term SOFR plus a margin ranging from 1.25% to 1.75% or (ii) a base rate plus a margin ranging from 0.25% to 0.75%, in each case depending upon the monthly average excess availability under the Revolving Credit Agreement. We are required to pay a monthly unused line fee equal to 0.20% times the average daily unused availability along with other customary fees and expenses of our agent and lenders. During the three-month period ended June 30, 2024, we had borrowings of principal and payments of principal totaling $0.4 million under the Revolving Credit Agreement. As of June 30, 2024, there were no amounts outstanding under the Revolving Credit Agreement.

Previous wording

We have $43.4 million in purchase commitments through December 2024 for various raw material commodities, including aluminum, steel, polyethylene and nickel as well as other raw material components which are within normal production requirements.

Current wording

We have $36.7 million in purchase commitments through December 2024 for various raw material commodities, including aluminum, steel, polyethylene and nickel as well as other raw material components which are within normal production requirements.

Previous wording

We obtain vehicle chassis for our specialized vehicle products directly from the chassis manufacturers under converter pool agreements. Chassis are obtained from the manufacturers based on orders from customers, and to a lesser extent, for unallocated orders. Although each manufacturer’s agreement has different terms and conditions, the agreements generally state that the manufacturer will provide a supply of chassis to be maintained from time to time at our various facilities with the condition that we will store such chassis and will not move, sell, or otherwise dispose of such chassis except under the terms of the agreement. The manufacturer transfers the chassis to us on a “restricted basis,” retaining the sole authority to authorize commencement of work on the chassis and to make certain other decisions with respect to the chassis including the terms and pricing of sales of the chassis to the manufacturer’s dealers. The manufacturer also does not transfer the certificate of origin to us nor permit us to sell or transfer the chassis to anyone other than the manufacturer (for ultimate resale to a dealer). Although we are party to related finance agreements with manufacturers, we have not historically settled, nor expect to in the future settle, any related obligations in cash. Instead, the obligation is settled by the manufacturer upon reassignment of the chassis to an accepted dealer, and the dealer is invoiced for the chassis by the manufacturer. Accordingly, as of March 31, 2024 our outstanding chassis converter pool with the manufacturer totaled $22.4 million and we have included this financing agreement on our Condensed Consolidated Balance Sheets within Prepaid expenses and otherand Other accrued liabilities. All other chassis programs are handled as consigned inventory belonging to the manufacturer and totaled approximately $0.2 million. Under these agreements, if the chassis is not delivered to a customer within a specified time frame, we are required to pay a finance or storage charge on the chassis. Additionally, we receive finance support funds from manufacturers when the chassis are assigned into our chassis pool. Typically, chassis are converted and delivered to customers within 90 days of our receipt of the chassis.

Current wording

We obtain vehicle chassis for our specialized vehicle products directly from the chassis manufacturers under converter pool agreements. Chassis are obtained from the manufacturers based on orders from customers, and to a lesser extent, for unallocated orders. Although each manufacturer’s agreement has different terms and conditions, the agreements generally state that the manufacturer will provide a supply of chassis to be maintained from time to time at our various facilities with the condition that we will store such chassis and will not move, sell, or otherwise dispose of such chassis except under the terms of the agreement. The manufacturer transfers the chassis to us on a “restricted basis,” retaining the sole authority to authorize commencement of work on the chassis and to make certain other decisions with respect to the chassis including the terms and pricing of sales of the chassis to the manufacturer’s dealers. The manufacturer also does not transfer the certificate of origin to us nor permit us to sell or transfer the chassis to anyone other than the manufacturer (for ultimate resale to a dealer). Although we are party to related finance agreements with manufacturers, we have not historically settled, nor expect to in the future settle, any related obligations in cash. Instead, the obligation is settled by the manufacturer upon reassignment of the chassis to an accepted dealer, and the dealer is invoiced for the chassis by the manufacturer. Accordingly, as of June 30, 2024 our outstanding chassis converter pool with the manufacturer totaled $28.0 million and we have included this financing agreement on our Condensed Consolidated Balance Sheets within Prepaid expenses and otherand Other accrued liabilities. All other chassis programs are handled as consigned inventory belonging to the manufacturer and totaled approximately $1.6 million. Under these agreements, if the chassis is not delivered to a customer within a specified time frame, we are required to pay a finance or storage charge on the chassis. Additionally, we receive finance support funds from manufacturers when the chassis are assigned into our chassis pool. Typically, chassis are converted and delivered to customers within 90 days of our receipt of the chassis.

Previous wording

The decrease in rolling 12-month backlog and total backlog from December 31, 2023 is primarily attributable to the fulfillment of orders during the first three months of 2024 outpacing new orders . The decrease in rolling 12-month backlog and total backlog from March 31, 2023 is primarily related to the softened new trailer and truck body demand stemming from uncertainty in the 2024 markets.

Current wording

The decrease in rolling 12-month backlog and total backlog from December 31, 2023 is primarily attributable to the fulfillment of orders during the first six months of 2024 outpacing new orders. The decrease in rolling 12-month backlog and total backlog from June 30, 2023 is primarily related to the softened new trailer and truck body demand stemming from uncertainty in the 2024 markets.

Previous wording

The trailer industry generally follows the transportation industry’s cycles. According to ACT Research Company (“ACT”), total United States trailer production in 2023 was approximately 318,000 trailers, a 3.2% increase from 2022. While there remains uncertainty in the industry, including but not limited to overall economic conditions and softening of demand for certain of our products, current estimates from ACT and FTR Associations (“FTR”) for 2024 United States trailer production are 252,000 and 240,000, respectively, representing a 20.9% and 25.0% decline, respectively compared to 2023.

Current wording

The trailer industry generally follows the transportation industry’s cycles. According to ACT Research Company (“ACT”), total United States trailer production in 2023 was approximately 318,000 trailers, a 3.2% increase from 2022. While there remains uncertainty in the industry, including but not limited to overall economic conditions and softening of demand for certain of our products, current estimates from ACT and FTR Associations (“FTR”) for 2024 United States trailer production are 242,000 and 237,000, respectively, representing a 23.8% and 24.6% decline, respectively compared to 2023.

Previous wording

ACT is forecasting annual new trailer production levels for 2025, 2026, 2027, 2028, and 2029 of approximately 279,000, 291,000, 304,000, 300,000, and 297,000, respectively. In addition, FTR is forecasting annual new trailer production levels of 275,000 and 295,000 for 2025 and 2026, respectively. These estimates are generally more consistent with historical trailer industry production levels. However, overall economic uncertainty and softening demand in the industry for certain of our products could continue to impact these estimates. This uncertainty and softening are evident in the ACT and FTR forecasts, particularly for 2024 production. However, we believe that our strategic plan and actions taken over the last several years have positioned us to remain well-suited to adapt to changes in the industry and demand environment due to our strong balance sheet, liquidity profile, and diversification.

Current wording

ACT is forecasting annual new trailer production levels for 2025, 2026, 2027, 2028, and 2029 of approximately 244,000, 280,000, 300,000, 298,000, and 294,000, respectively. In addition, FTR is forecasting annual new trailer production levels of 270,000 and 295,000 for 2025 and 2026, respectively. These estimates are generally consistent with historical trailer industry production levels. However, overall economic uncertainty and softening demand in the industry for certain of our products could continue to impact these estimates. This uncertainty and softening are evident in the ACT and FTR forecasts, particularly for 2024 production. However, we believe that our strategic plan and actions taken over the last several years have positioned us to remain well-suited to adapt to changes in the industry and demand environment due to our strong balance sheet, liquidity profile, and diversification.

Previous wording

Other potential risks we face for the remainder of 2024 primarily relate to our ability to effectively manage our manufacturing operations, including economic uncertainty, and our overall business. In addition, the cost of raw materials, commodities, and components are also potential risks. Significant increases in the cost of certain commodities, raw materials or components have had, and may continue to have, an adverse effect on our results of operations. As has been our practice, we will endeavor to pass raw material and component price increases to our customers in addition to continuing our cost management and hedging activities in an effort to minimize the risk that changes in material costs could have on our operating results. In addition, we rely on a limited number of suppliers for certain key components and raw materials in the manufacturing of our products, including tires, landing gear, axles, suspensions, aluminum extrusions, chassis and specialty steel coil. While we have taken actions to mitigate certain of these risks, which include our previously announced supply agreements with Hydro, Ryerson, and Rockland Flooring, at the current and expected demand levels, there may be additional or increased shortages of supplies of raw materials or components which would have an adverse impact on our ability to meet demand for our products. Despite these risks, we believe we are well positioned to capitalize on overall demand when it returns to normalized levels.

Current wording

Other potential risks we face for the remainder of 2024 primarily relate to our ability to effectively manage our manufacturing operations, including economic uncertainty, and our overall business. In addition, the cost of raw materials, commodities, and components are also potential risks. Significant increases in the cost of certain commodities, raw materials or components have had, and may continue to have, an adverse effect on our results of operations. As has been our practice, we will endeavor to pass raw material and component price increases to our customers in addition to continuing our cost management and hedging activities in an effort to minimize the risk that changes in material costs could have on our operating results. In addition, we rely on a limited number of suppliers for certain key components and raw materials in the manufacturing of our products, including tires, landing gear, axles, suspensions, aluminum extrusions, chassis and specialty steel coil. While we have taken actions to mitigate certain of these risks, which include our previously announced supply agreements at the current and expected demand levels, there may be additional or increased shortages of supplies of raw materials or components which would have an adverse impact on our ability to meet demand for our products. Despite these risks, we believe we are well positioned to capitalize on overall demand when it returns to normalized levels.