WABASH NATIONAL Corp

Previous 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:

Current wording

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

Previous 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.

Current wording

For the three-month period ended September 30, 2024, we recorded net sales of $464.0 million compared to $632.8 million in the prior year period. Net sales for the three-month period ended September 30, 2024, decreased $168.8 million, or 26.7%, compared to the prior year period. New trailer shipments decreased 29.5% and new truck body shipments decreased 12.7%. The decrease in new trailer (primarily dry vans) shipments drove the overall decrease in revenue, and was partially offset by higher per unit revenue on truck bodies. Net sales within the P&S reportable segment decreased $4.1 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 12.1% in the third quarter of 2024 compared to 19.4% in the prior year period primarily driven by lower sales volumes and higher 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 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.

Current wording

For the three-month period ended September 30, 2024, selling, general and administrative expenses increased $444.3 million as compared to the same period in 2023. As a percentage of net sales, selling, general and administrative expenses were 104.8% in the third quarter of 2024 as compared to 6.6% 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 driven by the impacts of the Product Liability Matter, partially offset by a decrease of $5.8 million in employee-related costs, including benefits and incentive programs.

Previous 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):

Current wording

Net sales in the third quarter of 2024 decreased $168.8 million, or 26.7%, compared to the third 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

TS segment sales, prior to the elimination of intersegment sales, were $498.7 million for the second quarter of 2024, a decrease of $132.0 million, or 20.9%, compared to the second quarter of 2023. New trailers shipped during the second quarter of 2024 totaled 9,245 trailers compared to 11,825 trailers in the prior year period, a decrease of 21.8%, which was primarily driven by lower new trailer shipments (primarily dry vans). New truck bodies shipped during the second quarter of 2024 totaled 3,925 truck bodies compared to 4,025 truck bodies in the prior year period, a decrease of 2.5%, offset by higher per unit revenue resulting in a slight increase in truck body revenue. Overall, the decrease in new trailer shipments outpaced the increase in revenue per unit across all product lines except dry vans, driving the overall decrease in revenue.

Current wording

TS segment sales, prior to the elimination of intersegment sales, were $415.5 million for the third quarter of 2024, a decrease of $167.4 million, or 28.7%, compared to the third quarter of 2023. New trailers shipped during the third quarter of 2024 totaled 7,585 trailers compared to 10,765 trailers in the prior year period, a decrease of 29.5%, which was primarily driven by lower new trailer shipments (primarily dry vans). New truck bodies shipped during the third quarter of 2024 totaled 3,630 truck bodies compared to 4,160 truck bodies in the prior year period, a decrease of 12.7%, offset by favorable mix of higher priced units resulting in a slight increase in truck body revenue. Overall, the decrease in new trailer shipments outpaced the increase in revenue per unit in truck bodies, driving the overall decrease in revenue.

Previous 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.

Current wording

P&S segment sales, prior to the elimination of intersegment sales, were $52.3 million for the third quarter of 2024, a decrease of $4.1 million, or 7.3%, compared to the third 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 $3.0 million and $7.0 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 $4.7 million and $4.2 million, respectively.

Previous 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.

Current wording

Cost of sales was $408.0 million in the third quarter of 2024, a decrease of $101.9 million, or 20.0%, 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

TS segment cost of sales was $424.0 million in the second quarter of 2024, a decrease of $72.7 million, or 14.6%, 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 material costs of $66.1 million, or 19.1%, along with a decrease in certain other manufacturing costs.

Current wording

TS segment cost of sales was $370.6 million in the third quarter of 2024, a decrease of $104.8 million, or 22.0%, 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 material costs of $85.2 million, or 26.6%, along with a decrease in certain other manufacturing costs.

Previous 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):

Current wording

Gross profit was $56.0 million in the third quarter of 2024, a decrease of $66.9 million from the prior year period. Gross profit as a percentage of net sales was 12.1% for the third quarter of 2024, compared to 19.4% for the same period in 2023. Gross profit by segment was as follows (dollars in thousands):

Previous wording

TS segment gross profit was $74.7 million for the second quarter of 2024 compared to $133.9 million for the second quarter of 2023. Gross profit, prior to the elimination of intersegment sales, as a percentage of net sales, was 15.0% in the second quarter of 2024 compared to 21.2% 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 with our dry van products accounting for approximately $41.4 million of the decrease in gross profit. This was partially offset by net price favorability driven primarily by higher pricing across all product lines except dry vans.

Current wording

TS segment gross profit was $44.9 million for the third quarter of 2024 compared to $107.5 million for the third quarter of 2023. Gross profit, prior to the elimination of intersegment sales, as a percentage of net sales, was 10.8% in the third quarter of 2024 compared to 18.5% 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 with our dry van products accounting for approximately $48.5 million of the decrease in gross profit. This was partially offset by favorable product mix across product lines.

Previous wording

P&S segment gross profit was $15.0 million for the second quarter of 2024 compared to $17.1 million for the second quarter of 2023. Gross profit, prior to the elimination of intersegment sales, as a percentage of net sales, was 27.3% in the second quarter of 2024 compared to 27.5% in the 2023 period. The overall decrease in gross profit was primarily related to the decrease in sales in our Process systems and Components businesses.

Current wording

P&S segment gross profit was $11.1 million for the third quarter of 2024 compared to $15.4 million for the third quarter of 2023. Gross profit, prior to the elimination of intersegment sales, as a percentage of net sales, was 21.2% in the third quarter of 2024 compared to 27.2% in the 2023 period. The overall decrease in gross profit was primarily related to the decrease in sales in our Process Systems and Components businesses.

Previous wording

General and administrative expenses for the second quarter of 2024 decreased $3.3 million, or 9.0%, 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 $3.5 million, primarily due to decreased costs of employee benefits and incentive programs. As a percentage of net sales, general and administrative expenses were 6.2% for the second quarter of 2024 compared to 5.4% for the second quarter of 2023. The overall increase in general and administrative expenses as a percentage of net sales was primarily attributable to lower net sales in the second quarter.

Current wording

General and administrative expenses for the third quarter of 2024 increased $443.2 million, or 1236.8%, from the prior year period. The increase from the prior year period was driven by the impacts of the Product Liability Matter, partially offset by a decrease of $5.4 million in employee-related costs, including benefits and incentive programs. As a percentage of net sales, general and administrative expenses were 103.2% for the third quarter of 2024 compared to 5.7% for the third quarter of 2023. The overall increase in general and administrative expenses as a percentage of net sales was primarily attributable to the impacts of the Product Liability Matter and lower net sales in the third quarter.

Previous wording

Selling expenses were $7.9 million in the second quarter of 2024, an increase of $0.7 million, or 10.3%, compared to the prior year period. The increase was primarily attributable to higher advertising and promotional expenses of approximately $1.6 million offset partially offset by a decrease in employee costs related to benefits and incentive programs of approximately $0.7 million. As a percentage of net sales, selling expenses were 1.4% for the second quarter of 2024 compared to 1.0% for the second quarter of 2023. The increase in selling expenses as a percentage of net sales was due in part to lower overall sales and an increase in advertising and promotional expenses.

Current wording

Selling expenses were $7.1 million in the third quarter of 2024, an increase of $1.0 million, or 17.1%, compared to the prior year period. The increase was primarily attributable to higher advertising and promotional expenses of approximately $1.3 million offset partially offset by a decrease in employee costs related to benefits and incentive programs of approximately $0.4 million. As a percentage of net sales, selling expenses were 1.5% for the third quarter of 2024 compared to 1.0% for the third quarter of 2023. The increase in selling expenses as a percentage of net sales was due in part to lower overall sales and an increase in advertising and promotional expenses.

Previous wording

Amortization of intangibles was $3.0 million during the second quarter of 2024 compared to $3.2 million in the prior year period. 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.

Current wording

Amortization of intangibles was $2.9 million during the third quarter of 2024 compared to $3.2 million in the prior year period. 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 intangible assets recorded upon the acquisition of Supreme in September 2017 that became fully amortized at December 31, 2023.

Previous wording

Impairment and other, net was a net loss of $1.0 million for the six month period ended June 30, 2024 compared to a nominal loss in the prior year period. Activity during the current year period primarily related to the impairment of a construction-in-progress project that was no longer expected to be completed.

Current wording

Impairment and other, net was a nominal net gain for the three month period ended September 30, 2024 compared to a loss of $0.1 million in the prior year period. Activity during the current year period primarily related to the nominal gain on the sale of land and an office building in Goshen, Indiana.

Previous 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.

Current wording

Interest expense totaled $5.0 million during the third quarter of 2024 and $4.9 million during the third quarter of 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 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.

Current wording

Other, net for the third quarter of 2024 represented income of $1.4 million as compared to income of $0.8 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 $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.

Current wording

We recognized an income tax benefit of $108.4 million in the third quarter of 2024 compared to income tax expense $18.1 million for the same period in the prior year. The effective tax rate for this period was 24.7% compared to a rate of 24.6% for the same period in the prior year. The effective tax rate for both the third quarter of 2024 and the third quarter of 2023 differs from the U.S. Federal statutory rate of 21% primarily due to the impact of state taxes.

Previous wording

Six Months Ended June 30, 2024 Compared with the Six Months Ended June 30, 2023

Current wording

Nine Months Ended September 30, 2024 Compared with the Nine Months Ended September 30, 2023

Previous wording

Net sales in the first six months of 2024 decreased $241.7 million, or 18.5%, compared to the first six months 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 first nine months of 2024 decreased $410.5 million, or 21.2%, compared to the first nine months 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

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.

Current wording

TS segment sales, prior to the elimination of intersegment sales, were $1,384.6 million for the first nine months of 2024, a decrease of $407.0 million, or 22.7%, compared to the first nine months of 2023. New trailers shipped during the first nine months of 2024 totaled 25,330 trailers compared to 34,375 trailers in the prior year period, a decrease of 26.3%, 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 nine months of 2024 totaled 11,245 truck bodies compared to 11,995 truck bodies in the prior year period, a decrease of 6.3%, despite a slight increase in truck body revenue due to higher revenue per unit.

Previous wording

P&S segment sales, prior to the elimination of intersegment sales, were $104.1 million for the first six months of 2024, a decrease of $5.1 million, or 4.6%, compared to the first six months of 2023. The overall decrease in sales for this segment was due primarily to lower sales in our Process Systems and Components businesses which decreased by $10.1 million and $2.5 million, respectively. The overall decrease in sales was partially offset by an increase in sales within our Upfitting Solutions and Services and Aftermarket Parts businesses of $4.3 million and $1.9 million, respectively.

Current wording

P&S segment sales, prior to the elimination of intersegment sales, were $156.5 million for the first nine months of 2024, a decrease of $9.2 million, or 5.5%, compared to the first nine months of 2023. The overall decrease in sales for this segment was due primarily to lower sales in our Process Systems and Components businesses which decreased by $10.5 million and $12.1 million, respectively. The overall decrease in sales was partially offset by an increase in sales within our Upfitting Solutions and Services and Aftermarket Parts businesses of $8.7 million and $3.2 million, respectively.

Previous wording

Cost of sales was $899.8 million in the first six months of 2024, a decrease of $140.7 million, or 13.5%, 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 $1,307.8 million in the first nine months of 2024, a decrease of $242.6 million, or 15.6%, 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

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.

Current wording

TS segment cost of sales was $1,201.9 million in the first nine months of 2024, a decrease of $244.6 million, or 16.9%, 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 $216.9 million, or 21.8%, along with a decrease in certain other manufacturing costs.

Previous wording

P&S segment cost of sales was $75.8 million in the first six months of 2024, an decrease of $3.9 million, or 4.9%, compared to the prior period. The decrease in cost of sales was primarily driven by lower material costs of $6.3 million due in part to lower sales. This decrease was partially offset by an increase in labor and employee-related costs of approximately $2.8 million compared to the prior year period.

Current wording

P&S segment cost of sales was $117.1 million in the first nine months of 2024, a decrease of $3.7 million, or 3.1%, compared to the prior period. The decrease in cost of sales was primarily driven by lower material costs of $9.8 million due in part to lower sales. This decrease was partially offset by an increase in labor and employee-related costs of approximately $3.8 million compared to the prior year period.

Previous wording

Gross profit was $166.1 million in the first six months of 2024, a decrease of $101.0 million from the prior year period. Gross profit as a percentage of net sales was 15.6% for the six months of 2024, compared to 20.4% for the same period in 2023. Gross profit by segment was as follows (dollars in thousands):

Current wording

Gross profit was $222.1 million in the first nine months of 2024, a decrease of $167.9 million from the prior year period. Gross profit as a percentage of net sales was 14.5% for the nine months of 2024, compared to 20.1% for the same period in 2023. Gross profit by segment was as follows (dollars in thousands):

Previous 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.

Current wording

TS segment gross profit was $182.7 million for the first nine months of 2024 compared to $345.1 million for the first nine months of 2023. Gross profit, prior to the elimination of intersegment sales, as a percentage of net sales, was 13.2% in the first nine months of 2024 compared to 19.3% 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), resulting in lost sales margins and lower absorption of fixed costs. This was partially offset by decreased fixed cost spending and net price favorability driven primarily by higher pricing across all product lines except dry vans.

Previous wording

P&S segment gross profit was $28.3 million for the first six months of 2024 compared to $29.5 million for the first six months of 2023. Gross profit, prior to the elimination of intersegment sales, as a percentage of net sales, was 27.2% in the first six months of 2024 compared to 27.0% in the 2023 period. The overall decrease in gross profit was primarily related to the decrease in sales in our Process systems and Components businesses. The increase in gross profit as percentage of net sales in the first six months of 2024 compared to 2023 was primarily due to material margin improvements.

Current wording

P&S segment gross profit was $39.4 million for the first nine months of 2024 compared to $44.9 million for the first nine months of 2023. Gross profit, prior to the elimination of intersegment sales, as a percentage of net sales, was 25.2% in the first nine months of 2024 compared to 27.1% in the 2023 period. The overall decrease in gross profit was primarily related to the decrease in sales in our Process Systems and Components businesses. The increase in gross profit as percentage of net sales in the first nine months of 2024 compared to 2023 was primarily due to material margin improvements.

Previous 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.

Current wording

General and administrative expenses for the first nine months of 2024 increased $440.5 million, or 403.4%, from the prior year period. The increase from the prior year period was due driven by the impacts of the Product Liability Matter, partially offset by a decrease of $10.3 million in employee-related costs, including benefits and incentive programs. As a percentage of net sales, general and administrative expenses were 35.9% for the first nine months of 2024 compared to 5.6% for the first nine months of 2023. The overall increase in general and administrative expenses as a percentage of net sales was primarily attributable to the impacts of the Product Liability Matter and lower net sales in 2024.

Previous 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.

Current wording

Selling expenses were $22.1 million in the first nine months of 2024, an increase of $1.9 million, or 9.6%, compared to the prior year period. The increase was primarily attributable to an increase of advertising and promotional expenses of approximately $3.2 million. This was partially offset by a decrease in employee-related costs of approximately $0.9 million. As a percentage of net sales, selling expenses were 1.4% for the first nine months of 2024 compared to 1.0% for the first nine 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 $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.

Current wording

Amortization of intangibles was $9.1 million for the first nine months of 2024 compared to $9.6 million during the first nine 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 intangible assets recorded upon the acquisition of Supreme in September 2017 that became fully amortized at December 31, 2023.

Previous wording

Impairment and other, net was a net loss of $1.0 million for the three month period ended June 30, 2024 compared to a nominal loss in the prior year period. Activity during the current year period primarily related to the impairment of a construction-in-progress project that was no longer expected to be completed.

Current wording

Impairment and other, net was a net loss of $1.0 million for the nine month period ended September 30, 2024 compared to a nominal loss in the prior year period. Activity during the current year period primarily related to a second quarter impairment of a construction-in-progress project that is no longer expected to be completed.

Previous wording

Interest expense totaled $9.9 million during the first six months of 2024 compared to $10.0 million in the prior year period. 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 $14.9 million during the first nine months of 2024 compared to $14.9 million in the prior year period. 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 six months of 2024 represented income of $3.2 million as compared to income of $0.9 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 first nine months of 2024 represented income of $4.6 million as compared to income of $1.7 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 $16.2 million in the first six months of 2024 compared to income tax expense of $38.2 million for the same period in the prior year. The effective tax rate for this period was 25.4% compared to a rate of 23.3% 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.

Current wording

We recognized an income tax benefit of $92.2 million in the first nine months of 2024 compared to income tax expense of $56.3 million for the same period in the prior year. The effective tax rate for this period was 24.6% compared to a rate of 23.7% for the same period in the prior year. For the first nine 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 nine months of 2023 differs primarily due to state taxes net of discrete items incurred related to stock-based compensation.

Previous wording

Our capital structure is comprised of a mix of debt and equity. As of June 30, 2024, our debt-to-equity ratio was approximately 0.7:1.0. Our long-term objective is to generate operating cash flows sufficient to support the growth within our businesses and increase shareholder value. This objective will be achieved through a balanced capital allocation strategy of sustaining strong liquidity, maintaining healthy leverage ratios, investing in the business, both organically and strategically, and returning capital to our shareholders. The Board of Directors has designated a Finance Committee for the primary purpose of assisting the Board in its oversight of the Company’s capital structure, financing, investment, and other financial matters of importance to the Company.

Current wording

Our capital structure is comprised of a mix of debt and equity. As of September 30, 2024, our debt-to-equity ratio was approximately 2.0:1.0. Our long-term objective is to generate operating cash flows sufficient to support the growth within our businesses and increase shareholder value. This objective will be achieved through a balanced capital allocation strategy of sustaining strong liquidity, maintaining healthy leverage ratios, investing in the business, both organically and strategically, and returning capital to our shareholders. The Board of Directors has designated a Finance Committee for the primary purpose of assisting the Board in its oversight of the Company’s capital structure, financing, investment, and other financial matters of importance to the Company.

Previous 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.

Current wording

During the first nine months of 2024, in keeping with this balanced approach, we paid dividends of approximately $11.3 million and repurchased shares under our Board approved share repurchase program totaling $55.7 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 September 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 $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.

Current wording

Our liquidity position, defined as cash on hand and available borrowing capacity under the Revolving Credit Agreement, amounted to $404.9 million as of September 30, 2024, a decrease of 9% compared to $447.0 million as of September 30, 2023 and a decrease of 22% from $516.1 million as of December 31, 2023. The decrease as of September 30, 2024 compared to September 30, 2023 was primarily attributable to a lower available capacity on the Revolving Credit Agreement and a lower cash balance as of September 30, 2024. The decrease as of September 30, 2024 compared to December 31, 2023 was primarily attributable to a lower cash balance as of September 30, 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.

Previous 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.

Current wording

Contractual coupon interest expense and accretion of fees for the Senior Notes for each three- and nine-month period ended September 30, 2024 was $4.5 million and $0.2 million, and $13.5 million and $0.5 million, respectively. Contractual coupon interest expense and accretion of fees for the Senior Notes for each three- and nine-month period ended September 30, 2023 was $4.5 million and $0.2 million, and $13.5 million and $0.5 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 $380.9 million as of June 30, 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 $404.9 million as of September 30, 2024 and $516.1 million as of December 31, 2023.