Continued Strong Demand for Access Products Drives JLG First Quarter Revenues; Full Year Forecast Projects Impressive Year-on-Year Improvement.MCCONNELLSBURG, Pa. -- JLG JLG Joint Liaison Group JLG Jean-Louis Gassée JLG John L. Grove (JLG Industries, Inc.) JLG Joint Liability Group JLG Junior League of Greenville JLG Junior League of Greenwich JLG Junior League of Gainesville JLG Junior League of Greensboro Industries, Inc. (NYSE NYSE See: New York Stock Exchange :JLG) today announced consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues of $306.7 million for its fiscal first quarter ended October October: see month. 31, 2004, an increase of 44 percent from the same prior year period. The Company reported a net loss of $8.7 million, or $0.20 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with net income of $.5 million, or $.01 per diluted share, for the prior year period. Results for the first quarter of fiscal 2005 included estimated net unrecovered steel costs of $26.8 million ($17.4 million, after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ), and integration expense of $1.9 million ($1.2 million, after-tax). ANALYSIS "As we mentioned in our last quarterly call, we had expected the first quarter to be our most challenging of the current fiscal year," stated Jim Woodward, Executive Vice President and Chief Financial Officer. "This expectation was based on seasonally lower sales, the anticipated high price of steel and other raw materials, capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. variances carried into the quarter, continued inefficiencies resulting from capacity constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. in the supply base, and a strong order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. which was not subject to our announced September September: see month. price increase. At that time, we forecasted net unrecovered steel costs in the quarter in excess of $20 million. As the price of steel increased even further than forecast, the actual impact was $27 million. We had previously forecast weighted average steel prices for the year to be up 75 percent over the prior year. We now forecast that the increase will be over 100 percent. Component availability from suppliers remained constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. and resulted in manufacturing inefficiencies of $6 million during the quarter. "Despite the operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. , there was also good news in the results. Sales represented a new record for a first quarter. Demand continued to be strong and the backlog at quarter end was $200 million, essentially the same as the previous quarter. We reduced trade working capital by $58 million as receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed declined and inventory turns improved. Free cash flow was $27 million and net debt-to-total capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. was reduced from 49 to 47 percent sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen . Cash on hand at the end of the quarter was $66 million." Additional information is provided in the financial schedules accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. this release. OUTLOOK Commenting on the outlook, Bill Lasky Las·ky , Jesse Louis 1880-1958. American motion-picture producer who helped found Paramount studios (1933). The pictures he produced include Sergeant York (1941) and The Great Caruso (1951). , Chairman of the Board, President and Chief Executive Officer stated, "Our near term focus is on how we respond to increasing raw material costs, specifically steel, in the face of our customers' expectations of prices and how we overcome supplier constraints. Although we achieved significant cost reductions and integration synergies last year, the price increases we implemented did not cover the higher cost of steel and associated variances. Therefore, we are compelled to pass through additional price increases to our customers to offset these rising costs. We expect to achieve an effective six percent price increase in January January: see month. in the form of an increased steel surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. , base price increases and reductions in customer discounts. Every shipment after December December: see month. 31st will be subject to the new pricing, including orders currently in the backlog. "Despite the volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of steel pricing and component shortages, we maintain optimism Optimism See also Hope. Bontemps, Roger personification of cheery contentment. [Fr. Lit.: “Roger Bontemps” in Walsh Modern, 66] Candide beset by inconceivable misfortunes, hero indifferently shrugs them off. [Fr. for the year. Order patterns remain strong and our customers indicate a continued need for new equipment. Therefore, we are reaffirming our previous estimate of revenue growth of 10 to 25 percent for fiscal 2005. We are also targeting earnings per share in the range of $1.00 to $1.15 for fiscal 2005. This represents a significant improvement over fiscal 2004 and assumes stability in commodity prices and improved supplier deliveries as capacity investments are realized. "Our second quarter will continue to be challenged by these issues but will be mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by a reduced amount of capitalized variances entering the quarter and the price increases effective in January. We expect the second half of our fiscal year, our seasonally strongest, to see the full benefits of the price increases, reduced supplier shortages and therefore improved manufacturing efficiencies and the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of our current cost reduction activities." DIVIDEND The Board of Directors of JLG today declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. its regular, quarterly cash dividend of $.005 per common share. The dividend is payable on January 5, 2005 to shareholders of record December 15, 2004. CONFERENCE CALL Management's complete analysis of the Company's quarterly results will be provided during a conference call on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , November November: see month. 19, 2004 at 9:00 a.m. Eastern Time. Within North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , access to the call is available by dialing (800) 599-9795, participant Participant A party of a funding. It usually refers to the lowest rank or smallest level of funding. pass code 42116233. From international locations, call (617) 786-2905, using the same pass code. Please dial into the conference 10 minutes prior to the start. A replay of the call will be available on the website later the same day. JLG Industries, Inc. is the world's leading producer of access equipment (aerial work platforms An aerial work platform (AWP) is a mechanical device used to provide temporary access for people or equipment to inaccessible areas, usually at height. AWPs may also be known as a lift table, lift platform or cherry picker. and telehandlers) and highway-speed telescopic tel·e·scop·ic adj. 1. Of or relating to a telescope. 2. Seen or obtained by means of a telescope: telescopic data. 3. hydraulic excavators. The Company's diverse product portfolio encompasses leading brands such as JLG(R) aerial work platforms; JLG, SkyTrak(R), Lull(R) and Gradall(R) telehandlers; Gradall excavators; and an array of complementary accessories that increase the versatility Versatility Franklin, Benjamin (1706–1790) American statesman, inventor, printer, author, scientist. [Am. Hist.: Benét, 366] George and efficiency of these products for end users. JLG markets its products and services through a multi-channel See multichannel. approach that includes a highly trained sales force and utilizes a broad range of marketing techniques, integrated supply programs and a network of distributors in the industrial, commercial, institutional and construction markets. In addition, JLG offers world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. after-sales service after-sales service n (BRIT) (COMM) (for car, washing machine etc) → servicio de asistencia pos-venta after-sales service n → service m and support for its customers. JLG's manufacturing facilities are located in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. , and France, with sales and service operations on six continents Six Continents is a large retail PLC in UK which split into Six Continents Retail known as Mitchells and Butlers plc. The hotels and soft drinks business of Six Continents PLC is now known as InterContinental Hotels Group PLC. . This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements are not guarantees of future performance, and involve a number of risks and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the following: (i) general economic and market conditions, including political and economic uncertainty in areas of the world where we do business; (ii) varying and seasonal levels of demand for our products and services; (iii) limitations on customer access to credit for purchases; (iv) credit risks from our financing of customer purchases; (v) interest and foreign currency exchange rates; and (vi) costs of raw materials and energy, as well as other risks as detailed in the Company's SEC reports, including the report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended July July: see month. 31, 2004. Adjustments to reported GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). earnings, AFS A distributed file system for large, widely dispersed Unix and Windows networks from Transarc Corporation, now part of IBM. It is noted for its ease of administration and expandability and stems from Carnegie-Mellon's Andrew File System. AFS - Andrew File System operations as if accounted for under the equity method, as well as our disclosures of free cash flow, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become and net debt are useful in analyzing operating performance, but should be used only in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with financial performance reported in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . For more information, visit www.jlg.com. NOTE: Information contained on our website is not incorporated by reference into this press release.
JLG INDUSTRIES, INC.
FINANCIAL DASHBOARD
(in thousands, except per share data and as otherwise identified)
Quarter
Ended Fiscal Year
October Ended Quarter Ended
31, July 31, July 31, April 30,
2004 2004 2004 2004
--------- ----------- --------- ---------
REVENUES AND PROFITABILITY
Revenues $306,661 $1,193,962 $425,160 $318,687
Gross profit margin 8.4% 18.9% 18.8% 20.0%
EBITDA 2,185 105,660 38,363 30,336
----------------------------
Trailing twelve month EBITDA 90,653 105,660 105,660 86,678
----------------------------
Trailing twelve month EBITDA
margin 7.0% 8.8% 8.8% 8.6%
----------------------------
Operating (loss) income (8,335) 75,906 31,879 23,598
Operating (loss) profit
margin -2.7% 6.4% 7.5% 7.4%
Net (loss) income margin -2.8% 2.2% 3.6% 2.7%
Reported EPS per diluted
share $(.20) $.61 $.35 $.20
IMPACT OF SELECTED ITEMS
ON:(1)
income (expense)
PRE-TAX INCOME
Integration expenses -
OmniQuip (in both Cost of
sales (COS), Selling &
administrative and product
development (SA&PD)) $(1,897) $(15,975) $(5,022) $(2,907)
Restructuring and
repositioning charges (in
both COS, Restructuring) - (119) 3 (1)
Currency effects (in
Miscellaneous-net) 2,281 (2,309) (1,171) (1,938)
Bad debt charges (in SA&PD) (1,132) (11,560) (3,819) (2,376)
Inventory charges (in COS) (1,592) (4,519) (1,374) (196)
Early vesting incentives (in
both COS, SA&PD) (995) (1,771) - (577)
Other Incentive pay (in both
COS, SA&PD) - (16,923) (12,065) (4,858)
Restatement expenses (in
SA&PD) - (1,264) (206) (1,058)
Estimated net unrecovered
steel cost (in COS)(2) (26,764) (4,695) (4,695) -
NET INCOME
Integration expenses -
OmniQuip (in both COS,
SA&PD) (1,233) (10,247) (3,264) (1,890)
Restructuring and
repositioning charges (in
both COS, Restructuring) - (75) 2 (1)
Currency effects (in
Miscellaneous-net) 1,483 (1,519) (761) (1,260)
Bad debt charges (in SA&PD) (736) (7,396) (2,482) (1,544)
Inventory charges (in COS) (1,035) (2,885) (893) (127)
Benefit from change in
effective income tax rate - - - -
Early vesting incentives (in
both COS, SA&PD) (647) (1,121) - (375)
Other Incentive pay (in both
COS, SA&PD) - (11,000) (7,842) (3,158)
Restatement expenses (in
SA&PD) - (822) (134) (688)
Estimated net unrecovered
steel cost (in COS)(2) (17,397) (3,052) (3,052) -
EARNINGS PER SHARE
Integration expenses -
OmniQuip (in both COS,
SA&PD) (0.03) (0.23) (0.07) (0.04)
Restructuring and
repositioning charges (in
both COS, Restructuring) - - - -
Currency effects (in
Miscellaneous-net) 0.03 (0.04) (0.02) (0.03)
Bad debt charges (in SA&PD) (0.02) (0.17) (0.06) (0.04)
Inventory charges (in COS) (0.02) (0.06) (0.02) -
Benefit from change in
effective income tax rate - - - -
Early vesting incentives (in
both COS, SA&PD) (0.01) (0.03) - (0.01)
Other Incentive pay (in both
COS, SA&PD) - (0.25) (0.18) (0.07)
Restatement expenses (in
SA&PD) - (0.02) - (0.02)
Estimated net unrecovered
steel cost (in COS)(2) (0.40) (0.07) (0.07) -
BALANCE SHEET & LIQUIDITY
MEASURES
Cash & cash equivalents $66,498 $37,656 $37,656 $12,945
Accounts receivable, net 299,123 362,819 362,819 372,500
Finance receivable, net 48,138 39,667 39,667 33,270
Pledged finance receivables,
net 81,470 118,417 118,417 131,878
Inventories 170,731 154,405 154,405 164,160
Total balance sheet debt 389,609 423,534 423,534 465,094
Limited recourse debt from
finance receivables
monetizations 85,733 121,794 121,794 135,453
Net debt(3) 242,381 269,553 269,553 323,186
----------------------------
Net debt(3) to total
capitalization 47% 49% 49% 55%
----------------------------
Maximum loss exposure from
finance receivables
monetizations 26,068 25,161 25,161 23,757
Equity 276,780 281,270 281,270 264,018
Working capital 328,671 340,552 340,552 353,696
Depreciation and
amortization 7,088 25,681 5,070 7,359
Capital expenditures, net of
retirements (2,653) 11,978 3,597 2,094
Free cash flow(4) 27,172 (98,450) 53,633 (19,778)
----------------------------
FINANCIAL RATIOS
Days sales outstanding 92.0 78.4 78.4 106.0
Days payables outstanding 54.6 57.0 57.0 65.1
Inventory turnover
(annualized) 5.9 5.8 5.8 5.1
Fiscal
Year
Quarter Ended Ended
January 31, October 31, July 31,
2004 2003 2003
------------ ----------- ----------
REVENUES AND PROFITABILITY
Revenues $236,530 $213,585 $751,128
Gross profit margin 18.4% 17.9% 17.9%
EBITDA 19,769 17,192 62,949
-----------------------------------
Trailing twelve month EBITDA 71,220 68,885 62,949
-----------------------------------
Trailing twelve month EBITDA margin 8.0% 8.6% 8.4%
-----------------------------------
Operating (loss) income 10,663 9,766 36,321
Operating (loss) profit margin 4.5% 4.6% 4.8%
Net (loss) income margin 0.9% 0.2% 1.6%
Reported EPS per diluted share $.05 $.01 $.29
IMPACT OF SELECTED ITEMS ON:(1)
income (expense)
PRE-TAX INCOME
Integration expenses - OmniQuip (in
both Cost of sales (COS), Selling
& administrative and product
development (SA&PD)) $(4,145) $(3,901) $-
Restructuring and repositioning
charges (in both COS,
Restructuring) (58) (63) (4,040)
Currency effects (in Miscellaneous-
net) 675 125 5,422
Bad debt charges (in SA&PD) (4,273) (1,092) (7,024)
Inventory charges (in COS) (1,622) (1,327) (4,463)
Early vesting incentives (in both
COS, SA&PD) (1,194) - -
Other Incentive pay (in both COS,
SA&PD) - - (2,605)
Restatement expenses (in SA&PD) - - -
Estimated net unrecovered steel
cost (in COS)(2) - - -
NET INCOME
Integration expenses - OmniQuip (in
both COS, SA&PD) (2,589) (2,504) -
Restructuring and repositioning
charges (in both COS,
Restructuring) (36) (40) (2,747)
Currency effects (in Miscellaneous-
net) 422 80 3,687
Bad debt charges (in SA&PD) (2,669) (701) (4,776)
Inventory charges (in COS) (1,013) (852) (3,035)
Benefit from change in effective
income tax rate - - 2,051
Early vesting incentives (in both
COS, SA&PD) (746) - -
Other Incentive pay (in both COS,
SA&PD) - - (1,771)
Restatement expenses (in SA&PD) - - -
Estimated net unrecovered steel
cost (in COS)(2) - - -
EARNINGS PER SHARE
Integration expenses - OmniQuip (in
both COS, SA&PD) (0.06) (0.06) -
Restructuring and repositioning
charges (in both COS,
Restructuring) - - (0.06)
Currency effects (in Miscellaneous-
net) 0.01 - 0.09
Bad debt charges (in SA&PD) (0.06) (0.02) (0.11)
Inventory charges (in COS) (0.02) (0.02) (0.07)
Benefit from change in effective
income tax rate - - 0.05
Early vesting incentives (in both
COS, SA&PD) (0.02) - -
Other Incentive pay (in both COS,
SA&PD) - - (0.04)
Restatement expenses (in SA&PD) - - -
Estimated net unrecovered steel
cost (in COS)(2) - - -
BALANCE SHEET & LIQUIDITY MEASURES
Cash & cash equivalents $18,125 $11,288 $132,809
Accounts receivable, net 315,304 289,729 257,519
Finance receivable, net 31,134 33,057 34,324
Pledged finance receivables, net 148,104 153,762 160,407
Inventories 150,074 153,200 122,675
Total balance sheet debt 464,609 467,422 460,570
Limited recourse debt from finance
receivables monetizations 150,283 153,541 164,940
Net debt(3) 303,408 310,498 171,103
-----------------------------------
Net debt(3) to total capitalization 55% 56% 41%
-----------------------------------
Maximum loss exposure from finance
receivables monetizations 24,460 23,380 21,708
Equity 252,252 248,911 247,714
Working capital 336,107 321,950 382,763
Depreciation and amortization 6,766 6,486 19,937
Capital expenditures, net of
retirements 2,858 3,429 10,324
Free cash flow(4) 7,090 (139,395) 27,781
-----------------------------------
FINANCIAL RATIOS
Days sales outstanding 115.4 106.0 102.7
Days payables outstanding 58.6 54.0 70.8
Inventory turnover (annualized) 4.6 3.8 3.4
(1) Net of 35%, 35%, 35%, 38%, 36% and 32% effective income tax
rate for the first quarter of fiscal 2005, the fourth quarter
of fiscal 2004, the third quarter of fiscal 2004, the second
quarter of fiscal 2004, the first quarter of fiscal 2004 and
fiscal 2003, respectively. EPS is calculated by dividing the
Net Income (Loss) amounts by the respective diluted shares for
each period. Individual quarterly net income (loss) per
diluted share may not equal the fiscal year EPS due to changes
in the number of common shares outstanding during the year.
Repositioning charges are reported in COS.
(2) Net unrecovered steel cost is an estimate based upon a
baseline average of steel prices per ton for various types of
steel at the beginning of fiscal 2004 compared to the impact
of steel prices incurred for various types of steel. These
estimates include assumptions regarding the steel content of
and sources for our products and their components. The steel
price increases are netted against steel surcharges invoiced
to our customers.
(3) Net debt reflects total balance sheet debt plus off-balance
sheet financing, less cash and limited recourse debt from
finance receivables monetizations.
(4) Free cash flow is defined as cash flow from operating
activities, investing activities, payment of dividends,
exercise of stock options, and the effect of exchange rate
changes on cash less changes in accounts receivable
securitization, limited recourse debt from finance receivables
monetizations and off-balance sheet debt.
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share data)
(Quarterly data is unaudited)
Quarter Fiscal Year
Ended Ended Quarter Ended
October 31, July 31, July 31, April 30,
2004 2004 2004 2004
----------- ----------- --------- ---------
Revenues
Net sales $302,131 $1,170,186 $418,605 $312,650
Financial products 2,660 15,203 4,172 3,913
Rentals 1,870 8,573 2,383 2,124
----------- ----------- --------- ---------
306,661 1,193,962 425,160 318,687
Cost of sales 280,966 968,562 345,110 255,050
----------- ----------- --------- ---------
Gross profit 25,695 225,400 80,050 63,637
Gross profit margin 8.4% 18.9% 18.8% 20.0%
Selling and administrative
expenses 28,122 128,465 42,348 34,052
Selling &
administrative % 9.2% 10.8% 10.0% 10.7%
Product development
expenses 5,908 21,002 5,807 5,987
Product development % 1.9% 1.8% 1.6% 1.9%
Restructuring charges - 27 16 -
----------- ----------- --------- ---------
(Loss) income from
operations (8,335) 75,906 31,879 23,598
Operating (loss) profit
margin -2.7% 6.4% 7.5% 7.4%
Other income (deductions):
Interest expense (8,996) (38,098) (9,274) (9,400)
Miscellaneous, net 3,432 4,073 1,414 (621)
----------- ----------- --------- ---------
(Loss) income before taxes (13,899) 41,881 24,019 13,577
Income tax (benefit)
provision (5,170) 15,232 8,748 4,890
----------- ----------- --------- ---------
Net (loss) income $(8,729) $26,649 $15,271 $8,687
=========== =========== ========= =========
Return on revenues -2.8% 2.2% 3.6% 2.7%
(Loss) earnings per common
share $(.20) $.62 $.36 $.20
=========== =========== ========= =========
(Loss) earnings per common
share - assuming dilution $(.20) $.61 $.35 $.20
=========== =========== ========= =========
Cash Dividends per share $.005 $.020 $.005 $.005
=========== =========== ========= =========
Average basic shares
outstanding 43,277 42,860 42,955 42,836
=========== =========== ========= =========
Average diluted shares
outstanding 43,277 44,032 44,191 44,013
=========== =========== ========= =========
Fiscal
Year
Quarter Ended Ended
January 31, October 31, July 31,
2004 2003 2003
----------- ----------- ---------
Revenues
Net sales $230,539 $208,392 $724,819
Financial products 3,442 3,676 19,184
Rentals 2,549 1,517 7,125
----------- ----------- ---------
236,530 213,585 751,128
Cost of sales 193,083 175,319 616,686
----------- ----------- ---------
Gross profit 43,447 38,266 134,442
Gross profit margin 18.4% 17.9% 17.9%
Selling and administrative expenses 28,349 23,716 79,225
Selling & administrative % 12.0% 11.1% 10.5%
Product development expenses 4,435 4,773 16,142
Product development % 1.9% 2.2% 2.1%
Restructuring charges - 11 2,754
----------- ----------- ---------
(Loss) income from operations 10,663 9,766 36,321
Operating (loss) profit margin 4.5% 4.6% 4.8%
Other income (deductions):
Interest expense (9,548) (9,876) (27,985)
Miscellaneous, net 2,340 940 6,691
----------- ----------- ---------
(Loss) income before taxes 3,455 830 15,027
Income tax (benefit) provision 1,297 297 2,635
----------- ----------- ---------
Net (loss) income $2,158 $533 $12,392
=========== =========== =========
Return on revenues 0.9% 0.2% 1.6%
(Loss) earnings per common share $.05 $.01 $.29
=========== =========== =========
(Loss) earnings per common share -
assuming dilution $.05 $.01 $.29
=========== =========== =========
Cash Dividends per share $.005 $.005 $.020
=========== =========== =========
Average basic shares outstanding 42,791 42,656 42,601
=========== =========== =========
Average diluted shares outstanding 44,152 43,575 42,866
=========== =========== =========
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
(Quarterly data is unaudited)
October 31, July 31, April 30,
2004 2004 2004
----------- ----------- -----------
ASSETS
--------
Current assets
Cash and cash equivalents $66,498 $37,656 $12,945
Accounts receivable, net 299,123 362,819 372,500
Finance receivables, net 9,136 5,920 4,473
Pledged finance receivables,
net 25,057 31,858 36,027
Inventories 170,731 154,405 164,160
Other current assets 45,739 41,058 42,086
----------- ----------- -----------
Total current assets 616,284 633,716 632,191
Property, plant and equipment, net 89,443 91,504 88,277
Equipment held for rental, net 26,842 21,190 18,687
Finance receivables, less current
portion 39,002 33,747 28,797
Pledged finance receivables, less
current portion 56,413 86,559 95,851
Goodwill 63,017 62,885 66,501
Intangible assets, net 34,590 35,240 32,979
Other assets 66,991 62,603 66,434
----------- ----------- -----------
$992,582 $1,027,444 $1,029,717
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
-------------------------------
Current liabilities
Short-term debt and current
portion of long-term debt $1,788 $1,729 $14,843
Current portion of limited
recourse debt from finance
receivables monetizations 26,725 32,585 37,086
Accounts payable 150,600 139,990 123,984
Accrued expenses 108,500 118,860 102,582
----------- ----------- -----------
Total current liabilities 287,613 293,164 278,495
Long-term debt, less current
portion 302,088 300,011 314,798
Limited recourse debt from finance
receivables monetizations, less
current portion 59,008 89,209 98,367
Accrued post-retirement benefits 30,211 29,666 28,798
Other long-term liabilities 21,362 20,542 30,501
Provisions for contingencies 15,520 13,582 14,740
Shareholders' equity
Capital stock:
Authorized shares: 100,000 at
$.20 par value
Issued shares: 44,535; fiscal
2004 - 43,903; fiscal 2003 -
43,367 8,907 8,781 8,732
Additional paid-in capital 35,111 29,571 25,883
Retained earnings 245,319 254,268 239,215
Unearned compensation (4,019) (5,333) (2,856)
Accumulated other comprehensive
loss (8,538) (6,017) (6,956)
----------- ----------- -----------
Total shareholders' equity 276,780 281,270 264,018
----------- ----------- -----------
$992,582 $1,027,444 $1,029,717
=========== =========== ===========
January 31, October 31, July 31,
2004 2003 2003
----------- ----------- -----------
ASSETS
--------
Current assets
Cash and cash equivalents $18,125 $11,288 $132,809
Accounts receivable, net 315,304 289,729 257,519
Finance receivables, net 8,252 2,573 3,168
Pledged finance receivables,
net 42,189 39,380 41,334
Inventories 150,074 153,200 122,675
Other current assets 27,441 54,252 46,474
----------- ----------- -----------
Total current assets 561,385 550,422 603,979
Property, plant and equipment, net 90,862 92,525 79,699
Equipment held for rental, net 22,903 18,236 19,651
Finance receivables, less current
portion 22,882 30,484 31,156
Pledged finance receivables, less
current portion 105,915 114,382 119,073
Goodwill 66,501 66,450 29,509
Intangible assets, net 33,709 34,448 -
Other assets 67,961 66,002 53,135
----------- ----------- -----------
$972,118 $972,949 $936,202
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
-------------------------------
Current liabilities
Short-term debt and current
portion of long-term debt $1,758 $2,278 $1,472
Current portion of limited
recourse debt from finance
receivables monetizations 40,824 40,153 45,279
Accounts payable 92,762 68,197 83,408
Accrued expenses 89,934 117,844 91,057
----------- ----------- -----------
Total current liabilities 225,278 228,472 221,216
Long-term debt, less current
portion 312,568 311,603 294,158
Limited recourse debt from finance
receivables monetizations, less
current portion 109,459 113,388 119,661
Accrued post-retirement benefits 27,998 27,199 26,179
Other long-term liabilities 30,487 29,790 15,160
Provisions for contingencies 14,076 13,586 12,114
Shareholders' equity
Capital stock:
Authorized shares: 100,000 at
$.20 par value
Issued shares: 44,535; fiscal
2004 - 43,903; fiscal 2003 -
43,367 8,712 8,683 8,673
Additional paid-in capital 24,725 23,789 23,597
Retained earnings 230,746 228,806 228,490
Unearned compensation (3,796) (5,145) (5,428)
Accumulated other comprehensive
loss (8,135) (7,222) (7,618)
----------- ----------- -----------
Total shareholders' equity 252,252 248,911 247,714
----------- ----------- -----------
$972,118 $972,949 $936,202
=========== =========== ===========
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(in thousands)
(Quarterly data is unaudited)
Quarter Ended Fiscal Year
October 31, Ended
2004 July 31, 2004
------------ -------------
OPERATIONS
Net (loss) income $(8,729) $26,649
Adjustments to
reconcile net
(loss) income to
cash flow from
operating
activities:
(Gain) loss on sale
of property, plant
and equipment 161 319
(Gain) loss on sale
of equipment held
for rental 660 (12,451)
Non-cash charges
and credits:
Depreciation and
amortization 7,088 25,681
Other 2,749 17,006
Changes in selected
working capital
items:
Accounts
receivable 62,217 (66,296)
Inventories (16,368) 9,188
Accounts payable 10,554 33,207
Other operating
assets and
liabilities (12,560) 13,506
Changes in finance
receivables (8,496) (6,112)
Changes in pledged
finance
receivables 1,391 (14,866)
Changes in other
assets and
liabilities (1,147) (11,090)
------------ -------------
Cash flow from
operating
activities 37,520 14,741
INVESTMENTS
Purchases of
property, plant and
equipment (2,895) (12,387)
Proceeds from sale
of property, plant
and equipment 81 90
Purchases of
equipment held for
rental (12,049) (26,689)
Proceeds from sale
of equipment held
for rental 4,150 33,269
Cash portion of
acquisitions - (109,557)
Other (46) 333
------------ -------------
Cash flow from
investing
activities (10,759) (114,941)
FINANCING
Net issuance
(repayment) of
short-term debt 58 27
Issuance of long-
term debt 85,016 351,999
Repayment of long-
term debt (85,092) (362,506)
Issuance of limited
recourse debt - 13,979
Repayment of limited
recourse debt - (253)
Payment of dividends (220) (871)
Exercise of stock
options 5,086 2,414
------------ -------------
Cash flow from
financing
activities 4,848 4,789
CURRENCY ADJUSTMENTS
Effect of exchange
rate changes on
cash (2,767) 258
CASH AND CASH
EQUIVALENTS
Net change in cash
and cash
equivalents 28,842 (95,153)
Beginning balance 37,656 132,809
------------ -------------
Ending balance $66,498 $37,656
============ =============
Fiscal
Quarter Ended Year
Ended
July 31, April 30, Jan. 31, Oct. 31, July 31,
2004 2004 2004 2003 2003
--------- --------- -------- --------- ---------
OPERATIONS
Net (loss) income $15,271 $8,687 $2,158 $533 $12,392
Adjustments to
reconcile net
(loss) income to
cash flow from
operating
activities:
(Gain) loss on sale
of property, plant
and equipment 52 214 (240) 293 266
(Gain) loss on sale
of equipment held
for rental (12,568) (1,247) 44 1,320 (6,794)
Non-cash charges
and credits:
Depreciation and
amortization 5,070 7,359 6,766 6,486 19,937
Other (1,173) 5,977 8,548 3,654 7,869
Changes in selected
working capital
items:
Accounts
receivable 18,059 (57,552) (27,823) 1,020 (35,324)
Inventories 13,060 (14,053) 3,296 6,885 43,137
Accounts payable 11,982 31,428 24,751 (34,954) (46,026)
Other operating
assets and
liabilities 21,266 (3,515) (4,289) 44 (12,706)
Changes in finance
receivables (6,756) (2,181) 1,770 1,055 40,487
Changes in pledged
finance
receivables 224 1,537 (1,175) (15,452) (114,271)
Changes in other
assets and
liabilities (4,408) (1,921) (862) (3,899) (3,295)
--------- --------- -------- --------- ---------
Cash flow from
operating
activities 60,079 (25,267) 12,944 (33,015) (94,328)
INVESTMENTS
Purchases of
property, plant and
equipment (3,522) (2,435) (2,619) (3,811) (10,806)
Proceeds from sale
of property, plant
and equipment (127) 127 1 89 216
Purchases of
equipment held for
rental (10,246) (4,491) (9,743) (2,209) (16,342)
Proceeds from sale
of equipment held
for rental 20,563 8,008 3,557 1,141 19,063
Cash portion of
acquisitions (14,186) - - (95,371) -
Other (27) 507 (101) (46) (689)
--------- --------- -------- --------- ---------
Cash flow from
investing
activities (7,545) 1,716 (8,905) (100,207) (8,558)
FINANCING
Net issuance
(repayment) of
short-term debt (13,115) 13,084 (536) 594 (13,497)
Issuance of long-
term debt 181,999 71,000 77,000 22,000 404,283
Repayment of long-
term debt (196,202) (67,099) (77,119) (22,086) (279,647)
Issuance of limited
recourse debt - - 3,108 10,871 117,383
Repayment of limited
recourse debt - - - (253) (118)
Payment of dividends (219) (218) (218) (216) (859)
Exercise of stock
options 276 1,242 746 150 93
--------- --------- -------- --------- ---------
Cash flow from
financing
activities (27,261) 18,009 2,981 11,060 227,638
CURRENCY ADJUSTMENTS
Effect of exchange
rate changes on
cash (562) 362 (183) 641 1,852
CASH AND CASH
EQUIVALENTS
Net change in cash
and cash
equivalents 24,711 (5,180) 6,837 (121,521) 126,604
Beginning balance 12,945 18,125 11,288 132,809 6,205
--------- --------- -------- --------- ---------
Ending balance $37,656 $12,945 $18,125 $11,288 $132,809
========= ========= ======== ========= =========
JLG INDUSTRIES, INC.
CONSOLIDATED SELECTED SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
(Quarterly data is unaudited)
Quarter Ended Fiscal Year
October 31, Ended
2004 July 31, 2004
------------- -------------
SEGMENT INFORMATION
REVENUES:
Machinery $252,532 $973,610
Equipment Services 51,350 204,454
Access Financial
Solutions 2,779 15,898
------------- -------------
$306,661 $1,193,962
============= =============
SEGMENT PROFIT
(LOSS):
Machinery $(13,340) $70,844
Equipment services 15,767 59,760
Access Financial
Solutions 194 1,695
General corporate
expenses (13,249) (67,308)
------------- -------------
Segment (loss)
profit (10,628) 64,991
Add: AFS' interest
expense 2,293 10,915
------------- -------------
Operating (Loss)
Income $(8,335) $75,906
============= =============
PRODUCT GROUP
REVENUES
Aerial work platforms $124,523 $562,056
Telehandlers 119,668 358,865
Excavators 8,341 52,689
After-sales service
and support,
including parts
sales, and used and
reconditioned
equipment sales 49,599 196,576
Financial products 2,660 15,203
Rentals 1,870 8,573
------------- -------------
$306,661 $1,193,962
============= =============
GEOGRAPHIC REVENUES
United States $238,733 $923,696
Europe 36,863 178,392
Other international 31,065 91,874
------------- -------------
$306,661 $1,193,962
============= =============
Fiscal
Quarter Ended Year
Ended
July 31, April 30, Jan. 31, Oct. 31, July 31,
2004 2004 2004 2003 2003
---------- --------- --------- --------- ---------
SEGMENT INFORMATION
REVENUES:
Machinery $351,123 $261,263 $192,266 $168,958 $594,484
Equipment Services 69,559 53,258 40,822 40,815 136,737
Access Financial
Solutions 4,478 4,166 3,442 3,812 19,907
--------- --------- --------- --------- ---------
$425,160 $318,687 $236,530 $213,585 $751,128
========= ========= ========= ========= =========
SEGMENT PROFIT
(LOSS):
Machinery $27,520 $25,190 $11,541 $6,593 $25,513
Equipment services 20,725 15,158 12,809 11,068 27,119
Access Financial
Solutions 990 694 (273) 284 3,990
General corporate
expenses (19,898) (20,229) (16,088) (11,093) (32,001)
--------- --------- --------- --------- ---------
Segment (loss)
profit 29,337 20,813 7,989 6,852 24,621
Add: AFS'
interest expense 2,542 2,785 2,674 2,914 11,700
--------- --------- --------- --------- ---------
Operating (Loss)
Income $31,879 $23,598 $10,663 $9,766 $36,321
========= ========= ========= ========= =========
PRODUCT GROUP
REVENUES
Aerial work
platforms $217,425 $146,017 $109,354 $89,260 $428,564
Telehandlers 117,510 99,439 69,908 72,008 117,475
Excavators 16,188 15,807 13,004 7,690 48,445
After-sales service
and support,
including parts
sales, and used and
reconditioned
equipment sales 67,482 51,387 38,273 39,434 130,335
Financial products 4,172 3,913 3,442 3,676 19,184
Rentals 2,383 2,124 2,549 1,517 7,125
--------- --------- --------- --------- ---------
$425,160 $318,687 $236,530 $213,585 $751,128
========= ========= ========= ========= =========
GEOGRAPHIC REVENUES
United States $327,498 $246,985 $177,542 $171,671 $546,494
Europe 66,076 48,079 40,286 23,951 145,038
Other international 31,586 23,623 18,702 17,963 59,596
--------- --------- --------- --------- ---------
$425,160 $318,687 $236,530 $213,585 $751,128
========= ========= ========= ========= =========
JLG INDUSTRIES, INC.
EBITDA
QUARTERLY PERIODS
(in thousands)
Oct. 31, July 31, April 30, Jan. 31, Oct. 31, July 31,
2004 2004 2004 2004 2003 2003
-------- -------- --------- -------- -------- --------
Net (loss)
income ($8,729) $15,271 $8,687 $2,158 $533 $5,672
Interest expense 8,996 9,274 9,400 9,548 9,876 9,645
Income tax
(benefit)
provision (5,170) 8,748 4,890 1,297 297 (527)
Depreciation and
amortization 7,088 5,070 7,359 6,766 6,486 4,591
-------- -------- --------- -------- -------- --------
EBITDA $2,185 $38,363 $30,336 $19,769 $17,192 $19,381
======== ======== ========= ======== ======== ========
We also monitor our EBITDA, which is a supplemental measure to GAAP
that provides additional information concerning our leverage position
and our historical ability to meet debt service and capital
expenditure and working capital requirements. EBITDA also is an
indicator of profitability, particularly in our capital-intensive
industry. EBITDA reflects our earnings (loss) before interest, taxes
and depreciation and amortization. EBITDA as presented differs (i)
from previously disclosed presentations which excluded restructuring
or repositioning charges, and (ii) from measures of EBITDA calculated
for purposes of financial covenants in our note indentures and senior
credit facilities.
JLG INDUSTRIES, INC.
EBITDA AND EBITDA MARGINS
TRAILING TWELVE MONTH PERIODS
(in thousands)
October 31, July 31, April 30,
2004 2004 2004
------------- ------------ -----------
Net income $17,387 $26,649 $17,050
Interest expense 37,218 38,098 38,469
Income tax provision 9,765 15,232 5,957
Depreciation and amortization 26,283 25,681 25,202
------------- ------------ -----------
EBITDA $90,653 $105,660 $86,678
============= ============ ===========
Revenues $1,287,038 $1,193,962 $1,002,360
============= ============ ===========
EBITDA Margin 7.0% 8.8% 8.6%
============= ============ ===========
January 31, October 31, July 31,
2004 2003 2003
------------- ------------- ----------
Net income $10,528 $12,596 $12,392
Interest expense 35,833 32,357 27,985
Income tax provision 2,085 2,777 2,635
Depreciation and amortization 22,774 21,155 19,937
------------- ------------- ----------
EBITDA $71,220 $68,885 $62,949
============= ============= ==========
Revenues $889,443 $804,226 $751,128
============= ============= ==========
EBITDA Margin 8.0% 8.6% 8.4%
============= ============= ==========
We also monitor our EBITDA, which is a supplemental measure to GAAP
that provides additional information concerning our leverage position
and our historical ability to meet debt service and capital
expenditure and working capital requirements. EBITDA also is an
indicator of profitability, particularly in our capital-intensive
industry. EBITDA reflects our earnings before interest, taxes and
depreciation and amortization. EBITDA as presented differs (i) from
previously disclosed presentations which excluded restructuring or
repositioning charges, and (ii) from measures of EBITDA calculated for
purposes of financial covenants in our note indentures and senior
credit facilities.
JLG INDUSTRIES, INC.
NET DEBT
(in thousands)
October 31, July 31, April 30,
2004 2004 2004
----------- --------- ---------
Revolving credit facilities $ - $ - $ 14,000
$15 million cash management facility - - 13,129
$125 million senior notes 125,000 125,000 125,000
$175 million senior subordinated notes 175,000 175,000 175,000
Miscellaneous debt 5,219 5,236 5,321
Fair value of interest rate swaps (6,492) (8,814) (8,296)
Gain on terminated interest rate swap 5,149 5,318 5,487
----------- --------- ---------
Bank debt and notes 303,876 301,740 329,641
Limited recourse debt from finance
receivables monetizations (a) 85,733 121,794 135,453
----------- --------- ---------
Total balance sheet debt 389,609 423,534 465,094
----------- --------- ---------
Net present value of off-balance sheet
rental fleet lease 1,012 1,070 1,524
Net present value of off-balance sheet
production equipment leases 3,991 4,399 4,966
----------- --------- ---------
Total off-balance sheet financing 5,003 5,469 6,490
----------- --------- ---------
Total balance sheet debt and off-
balance sheet financing 394,612 429,003 471,584
Less: cash 66,498 37,656 12,945
Less: limited recourse debt from
finance receivables monetizations 85,733 121,794 135,453
----------- --------- ---------
Net debt $242,381 $269,553 $323,186
=========== ========= =========
(a) Maximum loss exposure from finance
receivables monetizations $26,068 $25,161 $23,757
=========== ========= =========
Shareholders' Equity $276,780 $281,270 $264,018
=========== ========= =========
Net Debt-to-Net Debt plus
Shareholders' Equity 47% 49% 55%
=========== ========= =========
Total Balance Sheet Debt-to-Total
Balance Sheet Debt plus Shareholders'
Equity 58% 60% 64%
=========== ========= =========
January 31, October 31, July 31,
2004 2003 2003
----------- ----------- ---------
Revolving credit facilities $ - $ - $ -
$15 million cash management facility - 567 -
$125 million senior notes 125,000 125,000 125,000
$175 million senior subordinated
notes 175,000 175,000 175,000
Miscellaneous debt 15,465 15,554 1,983
Fair value of interest rate swaps (6,795) (8,065) (12,347)
Gain on terminated interest rate
swap 5,656 5,825 5,994
----------- ----------- ---------
Bank debt and notes 314,326 313,881 295,630
Limited recourse debt from finance
receivables monetizations (a) 150,283 153,541 164,940
----------- ----------- ---------
Total balance sheet debt 464,609 467,422 460,570
----------- ----------- ---------
Net present value of off-balance
sheet rental fleet lease 2,026 2,341 2,341
Net present value of off-balance
sheet production equipment leases 5,181 5,564 5,941
----------- ----------- ---------
Total off-balance sheet financing 7,207 7,905 8,282
----------- ----------- ---------
Total balance sheet debt and off-
balance sheet financing 471,816 475,327 468,852
Less: cash 18,125 11,288 132,809
Less: limited recourse debt from
finance receivables monetizations 150,283 153,541 164,940
----------- ----------- ---------
Net debt $303,408 $310,498 $171,103
=========== =========== =========
(a) Maximum loss exposure from
finance receivables monetizations $24,460 $23,380 $21,708
=========== =========== =========
Shareholders' Equity $252,252 $248,911 $247,714
=========== =========== =========
Net Debt-to-Net Debt plus
Shareholders' Equity 55% 56% 41%
=========== =========== =========
Total Balance Sheet Debt-to-Total
Balance Sheet Debt plus
Shareholders' Equity 65% 65% 65%
=========== =========== =========
We also monitor our net debt, which is a supplemental measure to GAAP
that provides additional information concerning our leverage position
and our historical ability to meet debt service and capital
expenditure and working capital requirements. We define net debt as
the sum of total balance sheet debt and other off-balance sheet
financing, minus cash and limited recourse debt arising from our
monetizations of customer finance receivables.
JLG INDUSTRIES, INC.
FREE CASH FLOW
(in thousands)
Quarter Ended Fiscal Year
October 31, Ended
2004 July 31, 2004
------------- -------------
Net (loss) income ($8,729) $26,649
Adjustments to reconcile net (loss) income
to cash flow from operating activities:
Non-cash items 10,658 30,555
Accounts receivable 62,217 (66,296)
Inventories (16,368) 9,188
Other current assets (2,817) 8,780
Accounts payable 10,554 33,207
Accrued expenses (9,743) 4,726
Finance receivables (8,496) (6,112)
Other cash from operations (1,147) (11,090)
Purchases of property, plant and equipment (2,895) (12,387)
Proceeds from sale of property, plant and
equipment 81 90
Purchases of equipment held for rental (12,049) (26,689)
Proceeds from sale of equipment held for
rental 4,150 33,269
Cash portion of acquisitions - (109,557)
Other cash from investments (46) 333
Payment of dividends (220) (871)
Exercise of stock options 5,086 2,414
Effect of exchange rate changes on cash (2,767) 258
Seller financing - (10,000)
Capital lease assumed in OmniQuip
acquisition - (3,630)
Debt assumed in Delta acquisition - (103)
Other (1) (297) (1,184)
------------- -------------
Free Cash Flow $27,172 ($98,450)
============= =============
Quarter Ended Fiscal
July April January October Year
31, 30, 31, 31, Ended
2004 2004 2004 2003 July 31, 2003
-------- --------- -------- ---------- -------------
Net (loss) income $15,271 $8,687 $2,158 $533 $12,392
Adjustments to
reconcile net
(loss) income to
cash flow from
operating
activities:
Non-cash items (8,619) 12,303 15,118 11,753 21,278
Accounts
receivable 18,059 (57,552) (27,823) 1,020 (35,324)
Inventories 13,060 (14,053) 3,296 6,885 43,137
Other current
assets (158) (14,211) 26,225 (3,076) (15,960)
Accounts payable 11,982 31,428 24,751 (34,954) (46,026)
Accrued expenses 21,424 10,696 (30,514) 3,120 3,254
Finance
receivables (6,756) (2,181) 1,770 1,055 40,487
Other cash from
operations (4,408) (1,921) (862) (3,899) (3,295)
Purchases of
property, plant
and equipment (3,522) (2,435) (2,619) (3,811) (10,806)
Proceeds from
sale of
property, plant
and equipment (127) 127 1 89 216
Purchases of
equipment held
for rental (10,246) (4,491) (9,743) (2,209) (16,342)
Proceeds from
sale of
equipment held
for rental 20,563 8,008 3,557 1,141 19,063
Cash portion of
acquisitions (14,186) - - (95,371) -
Other cash from
investments (27) 507 (101) (46) (689)
Payment of
dividends (219) (218) (218) (216) (859)
Exercise of stock
options 276 1,242 746 150 93
Effect of
exchange rate
changes on cash (562) 362 (183) 641 1,852
Seller financing - - - (10,000) -
Capital lease
assumed in
OmniQuip
acquisition - - - (3,630) -
Debt assumed in
Delta
acquisition (103) - - - -
Other (1) 1,931 3,924 1,531 (8,570) 15,310
-------- --------- -------- ---------- -------------
Free Cash Flow $53,633 ($19,778) $7,090 ($139,395) $27,781
======== ========= ======== ========== =============
(1) Includes changes in other off-balance sheet debt.
In addition to measuring our cash flow generation and usage based upon
the Statements of Cash Flows, we also measure our free cash flow. We
define free cash flow as cash flow from operating activities,
investing activities, payment of dividends, exercise of stock options,
and the effect of exchange rate changes on cash less changes in
accounts receivable securitization, limited recourse debt from finance
receivables monetizations and off-balance sheet debt. Our measure of
free cash flow may not be comparable to similarly titled measures
being disclosed by other companies and is not a measure of financial
performance that is in accordance with GAAP. We utilize free cash flow
to explain the change in our net debt position from the prior period.
JLG INDUSTRIES, INC.
STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
CONSOLIDATED EQUIPMENT OPERATIONS
JLG Industries, Inc. JLG Industries, Inc.
and Consolidated with Access
Subsidiaries Financial Solutions
on the Equity Basis
--------------------- ---------------------
Three Months Ended Three Months Ended
October 31, October 31,
2004 2003 2004 2003
---------- ---------- ---------- ----------
Revenues
Net sales $302,131 $208,392 $302,131 $208,392
Financial products 2,660 3,676 - -
Rentals 1,870 1,517 1,751 1,381
---------- ---------- ---------- ----------
306,661 213,585 303,882 209,773
Cost of sales 280,966 175,319 280,772 175,161
---------- ---------- ---------- ----------
Gross profit 25,695 38,266 23,110 34,612
Selling and administrative
expenses 28,122 23,716 28,024 23,260
Product development
expenses 5,908 4,773 5,908 4,773
Restructuring charges - 11 - 11
---------- ---------- ---------- ----------
(Loss) income from
operations (8,335) 9,766 (10,822) 6,568
Other income (deductions):
Interest expense (8,996) (9,876) (6,703) (6,962)
Miscellaneous, net 3,432 940 3,432 940
---------- ---------- ---------- ----------
(Loss) income before taxes (13,899) 830 (14,093) 546
Income tax (benefit)
provision (5,170) 297 (5,242) 195
Equity in income of Access
Financial Solutions - - 122 182
---------- ---------- ---------- ----------
Net (loss) income $(8,729) $533 $(8,729) $533
========== ========== ========== ==========
(Loss) earnings per common
share $(.20) $.01
========== ==========
(Loss) earnings per common
share - assuming dilution $(.20) $.01
Cash dividends per share $.005 $.005
========== ==========
Weighted average shares
outstanding 43,277 42,656
========== ==========
Weighted average shares
outstanding - assuming
dilution 43,277 43,575
FINANCIAL SERVICES
Access Financial
Solutions
---------------------
Three Months Ended
October 31,
2004 2003
---------- ----------
Revenues
Net sales $- $-
Financial products 2,660 3,676
Rentals 119 136
---------- ----------
2,779 3,812
Cost of sales 194 158
---------- ----------
Gross profit 2,585 3,654
Selling and administrative
expenses 98 456
Product development
expenses - -
Restructuring charges - -
---------- ----------
(Loss) income from
operations 2,487 3,198
Other income (deductions):
Interest expense (2,293) (2,914)
Miscellaneous, net - -
---------- ----------
(Loss) income before taxes 194 284
Income tax (benefit)
provision 72 102
Equity in income of Access
Financial Solutions - -
---------- ----------
Net (loss) income $122 $182
========== ==========
(Loss) earnings per common
share
(Loss) earnings per common
share - assuming dilution
Cash dividends per share
Weighted average shares
outstanding
Weighted average shares
outstanding - assuming
dilution
JLG INDUSTRIES, INC.
BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
CONSOLIDATED EQUIPMENT OPERATIONS
JLG Industries, Inc. JLG Industries, Inc.
and Consolidated with Access
Subsidiaries Financial Solutions on
the Equity Basis
----------------------- ----------------------
October 31, July 31, October 31, July 31,
2004 2004 2004 2004
----------- ----------- ----------- ----------
ASSETS
-----------------------
Current assets
Cash and cash
equivalents $66,498 $37,656 $66,498 $37,656
Accounts receivable -
net 299,123 362,819 295,304 332,154
Finance receivables -
net 9,136 5,920 - -
Pledged receivables -
net 25,057 31,858 - -
Inventories 170,731 154,405 170,731 154,405
Other current assets 45,739 41,058 45,739 41,058
----------- ----------- ----------- ----------
Total current
assets 616,284 633,716 578,272 565,273
Property, plant and
equipment - net 89,443 91,504 89,443 91,504
Equipment held for
rental - net 26,842 21,190 25,222 19,404
Finance receivables,
less current portion 39,002 33,747 - -
Pledged receivables,
less current portion 56,413 86,559 - -
Goodwill 63,017 62,885 63,017 62,885
Intangible assets - net 34,590 35,240 34,590 35,240
Investment in Access
Financial Solutions - - 37,893 37,771
Receivable from Access
Financial Solutions - - 11,309 31,398
Other assets 66,991 62,603 66,927 61,955
----------- ----------- ----------- ----------
$992,582 $1,027,444 $906,673 $905,430
=========== =========== =========== ==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
-----------------------
Current liabilities
Short-term debt and
current portion of
long-term debt $1,788 $1,729 $1,788 $1,729
Current portion of
limited recourse
debt from finance
receivables
monetizations 26,725 32,585 - -
Accounts payable 150,600 139,990 150,600 139,990
Accrued expenses 108,500 118,860 108,324 118,652
----------- ----------- ----------- ----------
Total current
liabilities 287,613 293,164 260,712 260,371
Long-term debt, less
current portion 302,088 300,011 302,088 300,011
Limited recourse debt
from finance
receivables
monetizations, less
current portion 59,008 89,209 - -
Payable to JLG
Industries, Inc. - - - -
Accrued post-retirement
benefits 30,211 29,666 30,211 29,666
Other long-term
liabilities 21,362 20,542 21,362 20,542
Provisions for
contingencies 15,520 13,582 15,520 13,570
Shareholders' equity
Capital stock:
Authorized shares:
100,000 at $.20
par value
Issued and
outstanding
shares: 44,535
shares;
fiscal 2004 -
43,903 shares 8,907 8,781 8,907 8,781
Additional paid-in
capital 35,111 29,571 35,111 29,571
Retained earnings 245,319 254,268 245,319 254,268
Unearned compensation (4,019) (5,333) (4,019) (5,333)
Accumulated other
comprehensive loss (8,538) (6,017) (8,538) (6,017)
----------- ----------- ----------- ----------
Total shareholders'
equity 276,780 281,270 276,780 281,270
----------- ----------- ----------- ----------
$992,582 $1,027,444 $906,673 $905,430
=========== =========== =========== ==========
FINANCIAL SERVICES
Access Financial
Solutions
----------------------
October 31, July 31,
2004 2004
----------- ----------
ASSETS
-----------------------
Current assets
Cash and cash
equivalents $- $-
Accounts receivable -
net 3,819 30,665
Finance receivables -
net 9,136 5,920
Pledged receivables -
net 25,057 31,858
Inventories - -
Other current assets - -
----------- ----------
Total current
assets 38,012 68,443
Property, plant and
equipment - net - -
Equipment held for
rental - net 1,620 1,786
Finance receivables,
less current portion 39,002 33,747
Pledged receivables,
less current portion 56,413 86,559
Goodwill - -
Intangible assets - net - -
Investment in Access
Financial Solutions - -
Receivable from Access
Financial Solutions - -
Other assets 64 648
----------- ----------
$135,111 $191,183
=========== ==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
-----------------------
Current liabilities
Short-term debt and
current portion of
long-term debt $- $-
Current portion of
limited recourse
debt from finance
receivables
monetizations 26,725 32,585
Accounts payable - -
Accrued expenses 176 208
----------- ----------
Total current
liabilities 26,901 32,793
Long-term debt, less
current portion - -
Limited recourse debt
from finance
receivables
monetizations, less
current portion 59,008 89,209
Payable to JLG
Industries, Inc. 11,309 31,398
Accrued post-retirement
benefits - -
Other long-term
liabilities - -
Provisions for
contingencies - 12
Shareholders' equity
Capital stock:
Authorized shares:
100,000 at $.20
par value
Issued and
outstanding
shares: 44,535
shares;
fiscal 2004 -
43,903 shares 30,000 30,000
Additional paid-in
capital - -
Retained earnings 7,893 7,771
Unearned compensation - -
Accumulated other
comprehensive loss - -
----------- ----------
Total shareholders'
equity 37,893 37,771
----------- ----------
$135,111 $191,183
=========== ==========
JLG INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
CONSOLIDATED EQUIPMENT OPERATIONS
JLG Industries, Inc. JLG Industries, Inc.
and Consolidated with Access
Subsidiaries Financial Solutions
on the Equity Basis
--------------------- ---------------------
Three Months Ended Three Months Ended
October 31, October 31,
2004 2003 2004 2003
---------- ---------- ---------- ----------
Operations
Net (loss) income $(8,729) $533 $(8,729) $533
Adjustments to reconcile
net (loss) income to
cash flow from
operating activities:
(Gain) loss on sale
of property, plant
and equipment 161 293 161 293
(Gain) loss on sale
of equipment held
for rental 660 1,320 660 1,320
Non-cash charges and
credits:
Depreciation and
amortization 7,088 6,486 6,894 6,332
Other 2,749 3,654 3,267 3,746
Changes in selected
working capital
items:
Accounts
receivable 62,217 1,020 35,355 (21,304)
Inventories (16,368) 6,885 (16,368) 6,885
Accounts payable 10,554 (34,954) 10,554 (34,954)
Other operating
assets and
liabilities (12,560) 44 (12,528) 20
Changes in finance
receivables (8,496) 1,055 - -
Changes in pledged
finance receivables 1,391 (15,452) - -
Changes in other
assets and
liabilities (1,147) (3,899) (1,719) (3,573)
---------- ---------- ---------- ----------
Cash flow from
operating activities 37,520 (33,015) 17,547 (40,702)
Investments
Purchases of property,
plant and equipment (2,895) (3,811) (2,895) (3,811)
Proceeds from the sale
of property, plant and
equipment 81 89 81 89
Purchases of equipment
held for rental (12,049) (2,209) (12,021) (2,100)
Proceeds from the sale
of equipment held for
rental 4,150 1,141 4,150 1,141
Cash portion of
acquisitions - (95,371) - (95,371)
Investment in income of
Access Financial
Solutions - - (122) (182)
Other (46) (46) (46) (46)
---------- ---------- ---------- ----------
Cash flow from
investing activities (10,759) (100,207) (10,853) (100,280)
Financing
Net increase in short-
term debt 58 594 58 594
Issuance of long-term
debt 85,016 22,000 85,016 22,000
Repayment of long-term
debt (85,092) (22,086) (85,092) (22,086)
Issuance of limited
recourse debt - 10,871 - -
Repayment of limited
recourse debt (253) - -
Change in receivable
from Access Financial
Solutions - - 20,089 18,378
Change in payable to JLG
Industries, Inc. - - - -
Payment of dividends (220) (216) (220) (216)
Exercise of stock
options 5,086 150 5,086 150
---------- ---------- ---------- ----------
Cash flow from
financing activities 4,848 11,060 24,937 18,820
Currency Adjustments
Effect of exchange rate
changes on cash (2,767) 641 (2,789) 641
Cash and Cash Equivalents
Net change in cash and
cash equivalents 28,842 (121,521) 28,842 (121,521)
Beginning balance 37,656 132,809 37,656 132,809
---------- ---------- ---------- ----------
Ending balance $66,498 $11,288 $66,498 $11,288
========== ========== ========== ==========
FINANCIAL SERVICES
Access Financial
Solutions
---------------------
Three Months Ended
October 31,
2004 2003
---------- ----------
Operations
Net (loss) income $122 $182
Adjustments to reconcile
net (loss) income to
cash flow from
operating activities:
(Gain) loss on sale
of property, plant
and equipment - -
(Gain) loss on sale
of equipment held
for rental - -
Non-cash charges and
credits:
Depreciation and
amortization 194 154
Other (518) (92)
Changes in selected
working capital
items:
Accounts
receivable 26,862 22,324
Inventories - -
Accounts payable - -
Other operating
assets and
liabilities (32) 24
Changes in finance
receivables (8,496) 1,055
Changes in pledged
finance receivables 1,391 (15,452)
Changes in other
assets and
liabilities 572 (326)
---------- ----------
Cash flow from
operating activities 20,095 7,869
Investments
Purchases of property,
plant and equipment - -
Proceeds from the sale
of property, plant and
equipment - -
Purchases of equipment
held for rental (28) (109)
Proceeds from the sale
of equipment held for
rental - -
Cash portion of
acquisitions - -
Investment in income of
Access Financial
Solutions - -
Other - -
---------- ----------
Cash flow from
investing activities (28) (109)
Financing
Net increase in short-
term debt - -
Issuance of long-term
debt - -
Repayment of long-term
debt - -
Issuance of limited
recourse debt - 10,871
Repayment of limited
recourse debt - (253)
Change in receivable
from Access Financial
Solutions - -
Change in payable to JLG
Industries, Inc. (20,089) (18,378)
Payment of dividends - -
Exercise of stock
options - -
---------- ----------
Cash flow from
financing activities (20,089) (7,760)
Currency Adjustments
Effect of exchange rate
changes on cash 22 -
Cash and Cash Equivalents
Net change in cash and
cash equivalents - -
Beginning balance - -
---------- ----------
Ending balance $- $-
========== ==========
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