Our innovation, product development and manufacturing capabilities from across all businesses are overseen by 1 centralized team which enables our talent to focus on solving the most pressing needs for our customers, focusing on deployment of resources, while driving the highest levels of innovation within our markets.
These changes have not only enabled a better customer experience but also allowed Wabash to be more productive as evidenced by our $20 million of structural cost efficiencies achieved during 2020.
And as a result, we have adjusted 3 noncore businesses: Garsite, Beall and Extract.
Given we now have 1 face to the customer for our first to final mile portfolio of equipment, we will now have 2 reportable segments.
The first new segment, Transportation Solutions comprises of vans, platforms, tank trailers and truck bodies and accounts for about 90% of our year-to-date sales.
Additionally, incremental demand for dry van trailers is being generated by customers that did not consume trailer supply to 10 years ago.
As 1 example, our management team has spent time with our supply partners at Hydro, a global leader in aluminum extrusions which have historically been in high demand during times of elevated trailer industry build rates.
We now have over 25 million miles logged to date and we are excited to scale this opportunity as we move into full commercialization of this product technology.
Finally, we believe long-term investors will be rewarded in the near term by our dry van capacity project as our converted traditional refrigerated van facility will produce 10,000 units post conversion which is twice as many dry vans as compared to the reefers that were previously manufactured.
All told, we expect to realize $0.15 to $0.20 of annual earnings per share accretion in 2023 and beyond as a result of this near-term capacity move.
The strength within our customer businesses from First to Final Mile has been well reflected in our backlog which increased by $600 million sequentially in Q3 to a total of $1.9 billion.
This represents an 87% increase versus the same period last year.
$1.9 billion in backlog also establishes a new record for our order book which is a testament to our new commercial structure and market strength as well as changing dynamics of how the market utilizes trailers.
The strength in our backlog creates the visibility necessary to offer an initial earnings per share outlook for 2022 $1.70, assuming no improvement in supply chain conditions.
Following our strategic, organizational and capacity update, today's company branding and segmentation refreshes are the culmination of work that has been going on behind the scenes for the last 2 years.
Consolidated third quarter revenue was $483 million with new trailer and truck body shipments of approximately 12,455 units and 3,780 units, respectively.
Gross margin was 10.6% of sales during the quarter, while operating margin came in at 3.8%.
Operating EBITDA for the third quarter was $33 million or 6.8% of sales.
Finally, for the quarter, net income was $11 million or $0.22 per diluted share.
From a segment perspective, Transportation Solutions generated revenue of $443 million and operating income of $26 million.
Parts and Service generated revenue of $42 million and operating income of $4.1 million.
Year-to-date operating cash flow was negative $74 million.
Our current target for 2021 capital spending is approximately $50 million which is higher than normal as we catch up on projects that were deferred during COVID and prepared for our strategic capacity expansion and the conversion of our Laveya-base south plant from reefer capacity to drive an capacity.
With regard to our balance sheet, our liquidity or cash plus available borrowings as of September 30 was $259 million with $49 million of cash and cash equivalents and approximately $220 million of availability on our revolving credit facility.
In late September and early October, we upsized our revolving credit facility by $50 million to $225 million and closed an issuance of $400 million in senior notes, respectively.
After repaying our previous senior notes and term loan, our improved debt structure will result in $3 million of annual interest expense savings and more importantly, create a reasonably priced patient debt structure that allows us to invest in our business and enhances our opportunities to create value with a lower cost of capital.
With regard to capital allocation during the third quarter, we utilized $14 million to repurchase shares and our quarterly dividend of $4 million and invested $9 million in capital projects.
Thinking about the next 3 to 5 years, I expect our capital allocation to continue to support our internal opportunities for organic growth.
We expect revenue in the range of $490 million to $520 million and earnings per share of $0.10 to $0.15 for the quarter.
As Brent mentioned, our record backlog allows us to offer an initial outlook for 2022 of $1.70 per share.
Pricing recovery from commodity headwinds experienced in 2021 have been effective and we expect average selling prices for trailers to increase in the range of $5,000 to $6,000 year-over-year.
This would represent a $0.60 tailwind in the bridge from our anticipated $0.52 of earnings per share in 2021 to our guide of $1.70 in 2022.
We're also assuming over $0.90 from improved build rates which are based on the ramp in factory floor associate count we've been able to achieve to date.
We expect to gain a total of $0.10 from the combination of reduced year-over-year share count as well as lower interest expense.
Operating margins are expected to be approximately 6% at the midpoint and we are well on our way to achieving our 8% operating margin target by 2023.
In conclusion, the announcements we've made today are the culmination of work that has been going on behind the scenes for the last 3 years.

Summary:
Finally, for the quarter, net income was $11 million or $0.22 per diluted share.
This would represent a $0.60 tailwind in the bridge from our anticipated $0.52 of earnings per share in 2021 to our guide of $1.70 in 2022.