Exhibit 99.1
Press Release
FOR IMMEDIATE RELEASE
Contact: Juna Rowland
Director – Corporate & Investor Relations
(240) 313-1816, ir@jlg.com
STRONG PRODUCT DEMAND DRIVES JLG’S REVENUES UP 55 PERCENT
Operating margin doubles in third quarter
MCCONNELLSBURG, PA, MAY 20, 2004– JLG Industries, Inc. (NYSE: JLG) announced today consolidated revenues for the third quarter ended April 30, 2004 of $318.7 million, which represented a 55 percent increase from the prior year, including revenues from OmniQuip products of $67.1 million. Revenues from traditional JLG products increased $45.9 million or 22 percent. Adjusted to eliminate the impact of integration expenses, earnings for the third quarter were $.24 per diluted share versus $0.05 in the prior year. Unadjusted reported earnings on a GAAP basis for the third quarter are $.20 per diluted share versus $.05 in the prior year.
Excluding integration costs, gross profit margin improved to 20.4 percent in the third quarter compared with 16.8 percent in the same period last year, and operating income improved to $26.5 million or 8.3 percent versus $8.6 million or 4.2 percent for the year-ago period.
YEAR-TO-DATE RESULTS
For the nine months of fiscal 2004, consolidated revenues were $768.8 million, a 49 percent increase from the prior year period, reflecting additional revenues from OmniQuip products of $170.3 million and increased revenues from traditional JLG products of $81 million. Adjusted to eliminate the impact of integration expense, year-to-date earnings are $.42 per diluted share versus $.16 for the prior year period. Unadjusted reported earnings on a GAAP basis are $.26 per diluted share year-to-date versus $.16 in the same period last year.
Before the impact of integration costs, gross profit margin improved to 19.7 percent from 17.4 percent in the comparable period last year, and operating income increased to $55.0 million from $20.9 million in the year-ago period.
“Order patterns continued to strengthen during the third quarter reflecting increased fleet refreshment and customer confidence,” stated Bill Lasky, Chairman of the Board, President and Chief Executive Officer. “Our consolidated order backlog is strong and rising. Steel shortages have impacted our production lines resulting in
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JLG Industries, Inc. – page 2
disruptions to our production schedules and higher work-in-process inventory, however, despite these challenges, we are pleased that our earnings are in line with our internal plans for the year. We continue to focus on our core access products, expanding our products and distribution strength with our recently announced acquisition of Delta Manlift in France and our intended alliance with the SAME Deutz-Fahr Group for agricultural telehandlers in Europe.”
OUTLOOK
Integration of the OmniQuip acquisition remains on track and ahead of a very aggressive schedule. With the addition of Phase 2 of the OmniQuip integration referenced in our second quarter results, our estimate of total cost for the four-year program remains constant at $47.8 million, while ongoing annual synergies are expected to be slightly higher at $45.6 million. Of the $47.8 million in costs, $27.7 million will impact the income statement and there will be $41.2 million in cash.
For fiscal 2004, we now estimate lower than previously estimated total costs of $30.8 million with relatively stable ongoing annual synergies of $24.0 million. Of the $30.8 million in costs, $17.9 million will impact the income statement and there will be $26.0 million in cash.
The North American economy continues to strengthen reflecting positive trends in construction spending, capacity utilization and consumer confidence. The European economic indicators are also trending in a positive direction, albeit lagging the North American economic recovery. Although interest rates have been stable, concerns over raw material and energy prices remain. With the continuing positive trends of the key indicators associated with the access industry and our nine-months revenues already surpassing all of fiscal 2003, barring any catastrophic event, we are optimistic about the near term.
DIVIDEND
The Board of Directors of JLG Industries, Inc. today declared its regular, quarterly cash dividend of $.005 per common share. The dividend is payable on July 9, 2004 to shareholders of record June 18, 2004.
CONFERENCE CALL
Management’s complete analysis of the Company’s quarterly results and financial condition will be provided during a conference call on Friday, May 21, 2004 at 9:00 a.m. Eastern Time. The call can be accessed via JLG’s website www.jlg.com, where it will be accompanied by a slide presentation, or by dialing (800) 884-5695. International participants should dial (617) 786-2960. Access code for both dial-in numbers is 22872341. Please dial into the conference call 10 minutes prior to the start. A replay of the conference call presentation will be available on the Company’s website.
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JLG Industries, Inc. – page 3
ABOUT JLG
JLG Industries, Inc. is the world’s leading producer of access equipment (aerial work platforms and telehandlers) and highway-speed telescopic hydraulic excavators. The Company’s diverse product portfolio encompasses leading brands such as JLG®aerial work platforms; JLG, SkyTrak®, Lull®and Gradall®telehandlers; Gradall excavators; and an array of complementary accessories that increase the versatility and efficiency of these products for end users. JLG markets its products and services through a multi-channel approach that includes a highly trained sales force, marketing, the Internet, integrated supply programs and a network of distributors. In addition, JLG offers world-class after-sales service and support for its customers in the industrial, commercial, institutional and construction markets. JLG’s manufacturing facilities are located in the United States, Belgium and France, with sales and service locations on six continents.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act 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 onForm 10-Q for the quarter ended January 31, 2004.
Adjustments to reported GAAP earnings, AFS operations as if accounted for under the equity method, as well as our disclosures of free cash flow, EBITDA and net debt are useful in analyzing operating performance, but should be used only in conjunction with financial performance reported in accordance with generally accepted accounting principles. For more information, visitwww.jlg.com. NOTE: Information contained on our website is not incorporated by reference into this press release.
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JLG Industries, Inc. — Page 4
JLG INDUSTRIES, INC.
FINANCIAL DASHBOARD
(in thousands, except per share data and as otherwise identified)
Quarter Ended | Fiscal Year | |||||||||||||||
April 30, | January 31, | October 31, | Ended | |||||||||||||
2004 | 2004 | 2003 | July 31, 2003 | |||||||||||||
REVENUES AND PROFITABILITY | ||||||||||||||||
Revenues | $ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | ||||||||
Gross profit margin | 20.0 | % | 18.4 | % | 17.9 | % | 17.9 | % | ||||||||
EBITDA (1) | 30,336 | 19,769 | 17,192 | 62,949 | ||||||||||||
Trailing twelve month EBITDA (1) | 86,678 | 71,220 | 68,885 | 62,949 | ||||||||||||
Trailing twelve month EBITDA margin (1) | 8.6 | % | 8.0 | % | 8.6 | % | 8.4 | % | ||||||||
Operating income | 23,598 | 10,663 | 9,766 | 36,321 | ||||||||||||
Operating profit margin | 7.4 | % | 4.5 | % | 4.6 | % | 4.8 | % | ||||||||
Net income margin(1) | 2.7 | % | 0.9 | % | 0.2 | % | 1.6 | % | ||||||||
Reported EPS per diluted share(1) | $ | .20 | $ | .05 | $ | .01 | $ | .29 | ||||||||
IMPACT OF SELECTED ITEMS ON:(2) | ||||||||||||||||
income (expense) | ||||||||||||||||
PRE-TAX INCOME | ||||||||||||||||
Integration expenses — OmniQuip (in both Cost of sales (COS), Selling & administrative and product development (SA&PD)) | $ | (2,907 | ) | $ | (4,145 | ) | $ | (3,901 | ) | $ | — | |||||
Restructuring and repositioning charges (in both COS, Restructuring) | (1 | ) | (58 | ) | (63 | ) | (4,040 | ) | ||||||||
Currency effects (in Miscellaneous-net) | (1,938 | ) | 675 | 125 | 5,422 | |||||||||||
Bad debt charges (in SA&PD) | (2,376 | ) | (4,273 | ) | (1,092 | ) | (7,024 | ) | ||||||||
Inventory charges (in COS) | (196 | ) | (1,622 | ) | (1,327 | ) | (4,463 | ) | ||||||||
Early vesting incentives (in both COS, SA&PD) | (577 | ) | (1,194 | ) | — | — | ||||||||||
Other Incentive pay (in both COS, SA&PD) | (4,858 | ) | — | — | (2,605 | ) | ||||||||||
Deferred profit on sale-leaseback (in COS) | — | — | — | — | ||||||||||||
Restatement expenses (in SA&PD) | (1,058 | ) | — | — | — | |||||||||||
NET INCOME | ||||||||||||||||
Integration expenses — OmniQuip (in both COS, SA&PD) | (1,890 | ) | (2,589 | ) | (2,504 | ) | — | |||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | (1 | ) | (36 | ) | (40 | ) | (2,747 | ) | ||||||||
Currency effects (in Miscellaneous-net) | (1,260 | ) | 422 | 80 | 3,687 | |||||||||||
Bad debt charges (in SA&PD) | (1,544 | ) | (2,669 | ) | (701 | ) | (4,776 | ) | ||||||||
Inventory charges (in COS) | (127 | ) | (1,013 | ) | (852 | ) | (3,035 | ) | ||||||||
Benefit from change in effective income tax rate | — | — | — | 2,051 | ||||||||||||
Early vesting incentives (in both COS, SA&PD) | (375 | ) | (746 | ) | — | — | ||||||||||
Other Incentive pay (in both COS, SA&PD) | (3,158 | ) | — | — | (1,771 | ) | ||||||||||
Deferred profit on sale-leaseback (in COS) | — | — | — | — | ||||||||||||
Restatement expenses (in SA&PD) | (688 | ) | — | — | — | |||||||||||
EARNINGS PER SHARE | ||||||||||||||||
Integration expenses — OmniQuip (in both COS, SA&PD) | (0.04 | ) | (0.06 | ) | (0.06 | ) | — | |||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | — | — | — | (0.06 | ) | |||||||||||
Currency effects (in Miscellaneous-net) | (0.03 | ) | 0.01 | — | 0.09 | |||||||||||
Bad debt charges (in SA&PD) | (0.04 | ) | (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) | (0.01 | ) | (0.02 | ) | — | — | ||||||||||
Other Incentive pay (in both COS, SA&PD) | (0.07 | ) | — | — | (0.04 | ) | ||||||||||
Deferred profit on sale-leaseback (in COS) | — | — | — | — | ||||||||||||
Restatement expenses (in SA&PD) | (0.02 | ) | — | — | — | |||||||||||
BALANCE SHEET & LIQUIDITY MEASURES | ||||||||||||||||
Cash & cash equivalents | $ | 12,945 | $ | 18,125 | $ | 11,288 | $ | 132,809 | ||||||||
Accounts receivable, net | 372,500 | 315,304 | 289,729 | 257,519 | ||||||||||||
Finance receivable, net | 33,270 | 31,134 | 33,057 | 34,324 | ||||||||||||
Pledged finance receivables, net | 131,878 | 148,104 | 153,762 | 160,407 | ||||||||||||
Inventories | 164,160 | 150,074 | 153,200 | 122,675 | ||||||||||||
Total balance sheet debt | 465,094 | 464,609 | 467,422 | 460,570 | ||||||||||||
Limited recourse debt from finance receivables monetizations | 135,453 | 150,283 | 153,541 | 164,940 | ||||||||||||
Net debt (3) | 323,186 | 303,408 | 310,498 | 171,103 | ||||||||||||
Net debt (3) to total capitalization | 55 | % | 55 | % | 56 | % | 41 | % | ||||||||
Maximum loss exposure from finance receivables monetizations | 23,757 | 24,460 | 23,380 | 21,708 | ||||||||||||
Equity | 264,018 | 252,252 | 248,911 | 247,714 | ||||||||||||
Working capital | 353,696 | 336,107 | 321,950 | 382,763 | ||||||||||||
Depreciation and amortization | 7,359 | 6,766 | 6,486 | 19,937 | ||||||||||||
Capital expenditures, net of retirements | 2,094 | 2,858 | 3,429 | 10,324 | ||||||||||||
Free cash flow (4) | (19,778 | ) | 7,090 | (139,395 | ) | 27,781 | ||||||||||
FINANCIAL RATIOS | ||||||||||||||||
Days sales outstanding | 130.9 | 118.8 | 113.7 | 128.7 | ||||||||||||
Days payables outstanding | 65.1 | 58.6 | 54.0 | 70.8 | ||||||||||||
Inventory turnover (annualized) | 5.1 | 4.6 | 3.8 | 3.4 |
[Continued from above table, first column repeated]
Quarter Ended | Fiscal Year | |||||||||||||||||||
July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||
2003 | 2003 | 2003 | 2002 | July 31, 2002 | ||||||||||||||||
REVENUES AND PROFITABILITY | ||||||||||||||||||||
Revenues | $ | 233,558 | $ | 205,770 | $ | 151,313 | $ | 160,487 | $ | 770,070 | ||||||||||
Gross profit margin | 19.1 | % | 16.8 | % | 17.2 | % | 18.1 | % | 17.2 | % | ||||||||||
EBITDA (1) | 19,381 | 14,878 | 17,434 | 11,256 | 56,435 | |||||||||||||||
Trailing twelve month EBITDA (1) | 62,949 | 65,709 | 60,118 | 54,726 | 56,435 | |||||||||||||||
Trailing twelve month EBITDA margin (1) | 8.4 | % | 8.6 | % | 7.8 | % | 7.1 | % | 7.3 | % | ||||||||||
Operating income | 15,378 | 8,564 | 4,649 | 7,730 | 30,717 | |||||||||||||||
Operating profit margin | 6.6 | % | 4.2 | % | 3.1 | % | 4.8 | % | 4.0 | % | ||||||||||
Net income margin(1) | 2.4 | % | 1.1 | % | 2.8 | % | 0.2 | % | 1.7 | % | ||||||||||
Reported EPS per diluted share(1) | $ | .13 | $ | .05 | $ | .10 | $ | .01 | $ | .30 | ||||||||||
IMPACT OF SELECTED ITEMS ON:(2) | ||||||||||||||||||||
income (expense) | ||||||||||||||||||||
PRE-TAX INCOME | ||||||||||||||||||||
Integration expenses — OmniQuip (in both Cost of sales (COS), Selling & administrative and product development (SA&PD)) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | (859 | ) | (1,762 | ) | (1,256 | ) | (163 | ) | (6,715 | ) | ||||||||||
Currency effects (in Miscellaneous-net) | (697 | ) | 993 | 7,575 | (2,449 | ) | 2,896 | |||||||||||||
Bad debt charges (in SA&PD) | (3,273 | ) | (1,318 | ) | (1,652 | ) | (781 | ) | (3,693 | ) | ||||||||||
Inventory charges (in COS) | 1,905 | (3,380 | ) | (1,944 | ) | (1,044 | ) | (4,670 | ) | |||||||||||
Early vesting incentives (in both COS, SA&PD) | — | — | — | — | (762 | ) | ||||||||||||||
Other Incentive pay (in both COS, SA&PD) | (876 | ) | (1,729 | ) | — | — | — | |||||||||||||
Deferred profit on sale-leaseback (in COS) | — | — | — | — | 3,069 | |||||||||||||||
Restatement expenses (in SA&PD) | — | — | — | — | — | |||||||||||||||
NET INCOME | ||||||||||||||||||||
Integration expenses — OmniQuip (in both COS, SA&PD) | — | — | — | — | — | |||||||||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | (584 | ) | (1,198 | ) | (854 | ) | (111 | ) | (4,499 | ) | ||||||||||
Currency effects (in Miscellaneous-net) | (474 | ) | 675 | 5,151 | (1,665 | ) | 1,940 | |||||||||||||
Bad debt charges (in SA&PD) | (2,226 | ) | (896 | ) | (1,123 | ) | (531 | ) | (2,474 | ) | ||||||||||
Inventory charges (in COS) | 1,295 | (2,298 | ) | (1,322 | ) | (710 | ) | (3,129 | ) | |||||||||||
Benefit from change in effective income tax rate | 2,051 | — | — | — | — | |||||||||||||||
Early vesting incentives (in both COS, SA&PD) | — | — | — | — | (511 | ) | ||||||||||||||
Other Incentive pay (in both COS, SA&PD) | (596 | ) | (1,176 | ) | — | — | — | |||||||||||||
Deferred profit on sale-leaseback (in COS) | — | — | — | — | 2,056 | |||||||||||||||
Restatement expenses (in SA&PD) | — | — | — | — | — | |||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||||||
Integration expenses — OmniQuip (in both COS, SA&PD) | — | — | — | — | — | |||||||||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | (0.01 | ) | (0.03 | ) | (0.02 | ) | — | (0.10 | ) | |||||||||||
Currency effects (in Miscellaneous-net) | (0.01 | ) | 0.02 | 0.12 | (0.04 | ) | 0.05 | |||||||||||||
Bad debt charges (in SA&PD) | (0.05 | ) | (0.02 | ) | (0.03 | ) | (0.01 | ) | (0.06 | ) | ||||||||||
Inventory charges (in COS) | 0.03 | (0.05 | ) | (0.03 | ) | (0.02 | ) | (0.07 | ) | |||||||||||
Benefit from change in effective income tax rate | 0.05 | — | — | — | — | |||||||||||||||
Early vesting incentives (in both COS, SA&PD) | — | — | — | — | (0.01 | ) | ||||||||||||||
Other Incentive pay (in both COS, SA&PD) | (0.01 | ) | (0.03 | ) | — | — | — | |||||||||||||
Deferred profit on sale-leaseback (in COS) | — | — | — | — | 0.05 | |||||||||||||||
Restatement expenses (in SA&PD) | — | — | — | — | — | |||||||||||||||
BALANCE SHEET & LIQUIDITY MEASURES | ||||||||||||||||||||
Cash & cash equivalents | $ | 132,809 | $ | 16,529 | $ | 9,565 | $ | 10,181 | $ | 6,205 | ||||||||||
Accounts receivable, net | 257,519 | 252,200 | 210,192 | 200,329 | 227,722 | |||||||||||||||
Finance receivable, net | 34,324 | 28,936 | 79,458 | 99,766 | 73,660 | |||||||||||||||
Pledged finance receivables, net | 160,407 | 167,089 | 113,656 | 86,700 | 88,056 | |||||||||||||||
Inventories | 122,675 | 154,168 | 168,612 | 178,016 | 165,536 | |||||||||||||||
Total balance sheet debt | 460,570 | 377,571 | 372,305 | 337,126 | 279,329 | |||||||||||||||
Limited recourse debt from finance receivables monetizations | 164,940 | 164,653 | 106,662 | 83,188 | 87,571 | |||||||||||||||
Net debt (3) | 171,103 | 206,361 | 266,913 | 255,627 | 198,884 | |||||||||||||||
Net debt (3) to total capitalization | 41 | % | 46 | % | 52 | % | 52 | % | 46 | % | ||||||||||
Maximum loss exposure from finance receivables monetizations | 21,708 | 18,928 | 8,519 | 6,275 | 5,998 | |||||||||||||||
Equity | 247,714 | 245,034 | 241,760 | 235,897 | 236,042 | |||||||||||||||
Working capital | 382,763 | 292,498 | 277,431 | 243,593 | 231,203 | |||||||||||||||
Depreciation and amortization | 4,591 | 4,931 | 5,147 | 5,268 | 20,959 | |||||||||||||||
Capital expenditures, net of retirements | 2,662 | 2,942 | 3,076 | 1,644 | 12,390 | |||||||||||||||
Free cash flow (4) | 35,258 | 60,553 | (11,286 | ) | (56,744 | ) | 169,753 | |||||||||||||
FINANCIAL RATIOS | ||||||||||||||||||||
Days sales outstanding | 128.7 | 124.1 | 103.6 | 97.3 | 111.4 | |||||||||||||||
Days payables outstanding | 70.8 | 75.8 | 36.0 | 59.2 | 66.5 | |||||||||||||||
Inventory turnover (annualized) | 3.4 | 3.2 | 3.3 | 3.5 | 3.3 |
(1) | Before cumulative effect of change in accounting principle. |
(2) | Net of 35%, 38%, 36%, 32% and 33% effective income tax rate for the third quarter of fiscal 2004, the second quarter of fiscal 2004, the first quarter of fiscal 2004, 2003 and 2002, respectively. EPS is calculated by dividing the Net Income 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. |
(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 issuance of restricted awards, 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. — Page 5
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share data)
(Quarterly data is unaudited)
Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | |||||||||||||||||||||||||||||||||
April 30, | January 31, | October 31, | Ended | July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||||||||||||||
2004 | 2004 | 2003 | July 31, 2003 | 2003 | 2003 | 2003 | 2002 | July 31, 2002 | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||
Net sales | $ | 312,650 | $ | 230,539 | $ | 208,392 | $ | 724,819 | $ | 227,188 | $ | 199,282 | $ | 143,961 | $ | 154,388 | $ | 745,870 | ||||||||||||||||||
Financial products | 3,913 | 3,442 | 3,676 | 19,184 | 4,806 | 5,152 | 4,836 | 4,390 | 14,227 | |||||||||||||||||||||||||||
Rentals | 2,124 | 2,549 | 1,517 | 7,125 | 1,564 | 1,336 | 2,516 | 1,709 | 9,973 | |||||||||||||||||||||||||||
318,687 | 236,530 | 213,585 | 751,128 | 233,558 | 205,770 | 151,313 | 160,487 | 770,070 | ||||||||||||||||||||||||||||
Cost of sales | 255,050 | 193,083 | 175,319 | 616,686 | 188,975 | 171,125 | 125,215 | 131,371 | 637,983 | |||||||||||||||||||||||||||
Gross profit | 63,637 | 43,447 | 38,266 | 134,442 | 44,583 | 34,645 | 26,098 | 29,116 | 132,087 | |||||||||||||||||||||||||||
Gross profit margin | 20.0 | % | 18.4 | % | 17.9 | % | 17.9 | % | 19.1 | % | 16.8 | % | 17.2 | % | 18.1 | % | 17.2 | % | ||||||||||||||||||
Selling and administrative expenses | 34,052 | 28,349 | 23,716 | 79,225 | 25,276 | 20,087 | 16,377 | 17,485 | 79,693 | |||||||||||||||||||||||||||
Selling & administrative % | 10.7 | % | 12.0 | % | 11.1 | % | 10.5 | % | 10.8 | % | 9.8 | % | 10.8 | % | 10.9 | % | 10.3 | % | ||||||||||||||||||
Product development expenses | 5,987 | 4,435 | 4,773 | 16,142 | 3,791 | 4,561 | 3,889 | 3,901 | 15,586 | |||||||||||||||||||||||||||
Product development % | 1.9 | % | 1.9 | % | 2.2 | % | 2.1 | % | 1.6 | % | 2.2 | % | 2.6 | % | 2.4 | % | 2.0 | % | ||||||||||||||||||
Restructuring charges | — | — | 11 | 2,754 | 138 | 1,433 | 1,183 | — | 6,091 | |||||||||||||||||||||||||||
Income from operations | 23,598 | 10,663 | 9,766 | 36,321 | 15,378 | 8,564 | 4,649 | 7,730 | 30,717 | |||||||||||||||||||||||||||
Operating profit margin | 7.4 | % | 4.5 | % | 4.6 | % | 4.8 | % | 6.6 | % | 4.2 | % | 3.1 | % | 4.8 | % | 4.0 | % | ||||||||||||||||||
Other income (deductions): | ||||||||||||||||||||||||||||||||||||
Interest expense | (9,400 | ) | (9,548 | ) | (9,876 | ) | (27,985 | ) | (9,645 | ) | (6,764 | ) | (6,072 | ) | (5,504 | ) | (16,255 | ) | ||||||||||||||||||
Miscellaneous, net | (621 | ) | 2,340 | 940 | 6,691 | (588 | ) | 1,383 | 7,638 | (1,742 | ) | 4,759 | ||||||||||||||||||||||||
Income before taxes and cumulative effect of change in accounting principle | 13,577 | 3,455 | 830 | 15,027 | 5,145 | 3,183 | 6,215 | 484 | 19,221 | |||||||||||||||||||||||||||
Income tax provision | 4,890 | 1,297 | 297 | 2,635 | (527 | ) | 1,018 | 1,989 | 155 | 6,343 | ||||||||||||||||||||||||||
Income before cumulative effect of change in accounting principle | 8,687 | 2,158 | 533 | 12,392 | 5,672 | 2,165 | 4,226 | 329 | 12,878 | |||||||||||||||||||||||||||
Cumulative effect of change in accounting principle(1) | — | — | — | — | — | — | — | — | (114,470 | ) | ||||||||||||||||||||||||||
Net income (loss) | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 12,392 | $ | 5,672 | $ | 2,165 | $ | 4,226 | $ | 329 | $ | (101,592 | ) | |||||||||||||||||
Return on revenues before impairment | 2.7 | % | 0.9 | % | 0.2 | % | 1.6 | % | 2.4 | % | 1.1 | % | 2.8 | % | 0.2 | % | 1.7 | % | ||||||||||||||||||
Earnings (loss) per common share: | ||||||||||||||||||||||||||||||||||||
Earnings per common share before cumulative effect of change in accounting principle | $ | .20 | $ | .05 | $ | .01 | $ | .29 | $ | .13 | $ | .05 | $ | .10 | $ | .01 | $ | .31 | ||||||||||||||||||
Cumulative effect of change in accounting principle(1) | — | — | — | — | — | — | — | — | (2.72 | ) | ||||||||||||||||||||||||||
Earnings (loss) per common share | $ | .20 | $ | .05 | $ | .01 | $ | .29 | $ | .13 | $ | .05 | $ | .10 | $ | .01 | $ | (2.41 | ) | |||||||||||||||||
Earnings (loss) per common share - assuming dilution: | ||||||||||||||||||||||||||||||||||||
Earnings per common share — assuming dilution before cumulative effect of change in accounting principle | $ | .20 | $ | .05 | $ | .01 | $ | .29 | $ | .13 | $ | .05 | $ | .10 | $ | .01 | $ | .30 | ||||||||||||||||||
Cumulative effect of change in accounting principle(1) | — | — | — | — | — | — | — | — | (2.65 | ) | ||||||||||||||||||||||||||
Earnings (loss) per common share - assuming dilution | $ | .20 | $ | .05 | $ | .01 | $ | .29 | $ | .13 | $ | .05 | $ | .10 | $ | .01 | $ | (2.35 | ) | |||||||||||||||||
Cash Dividends per share | $ | .005 | $ | .005 | $ | .005 | $ | .020 | $ | .005 | $ | .005 | $ | .005 | $ | .005 | $ | .025 | ||||||||||||||||||
Average basic shares outstanding | 42,836 | 42,791 | 42,656 | 42,601 | 42,608 | 42,598 | 42,570 | 42,541 | 42,082 | |||||||||||||||||||||||||||
Average diluted shares outstanding | 44,013 | 44,152 | 43,575 | 42,866 | 42,883 | 42,775 | 42,867 | 42,853 | 43,170 | |||||||||||||||||||||||||||
(1) Goodwill impairment.
JLG Industries, Inc. — Page 6
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
(Quarterly data is unaudited)
April 30, | January 31, | October 31, | July 31, | April 30, | January 31, | October 31, | July 31, | |||||||||||||||||||||||||
2004 | 2004 | 2003 | 2003 | 2003 | 2003 | 2002 | 2002 | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 12,945 | $ | 18,125 | $ | 11,288 | $ | 132,809 | $ | 16,529 | $ | 9,565 | $ | 10,181 | $ | 6,205 | ||||||||||||||||
Accounts receivable, net | 372,500 | 315,304 | 289,729 | 257,519 | 252,200 | 210,192 | 200,329 | 227,722 | ||||||||||||||||||||||||
Finance receivables, net | 4,473 | 8,252 | 2,573 | 3,168 | 1,570 | 18,031 | 18,276 | 28,248 | ||||||||||||||||||||||||
Pledged finance receivables, net | 36,027 | 42,189 | 39,380 | 41,334 | 50,741 | 39,685 | 35,391 | 34,353 | ||||||||||||||||||||||||
Inventories | 164,160 | 150,074 | 153,200 | 122,675 | 154,168 | 168,612 | 178,016 | 165,536 | ||||||||||||||||||||||||
Other current assets | 42,086 | 27,441 | 54,252 | 46,474 | 23,061 | 24,404 | 31,675 | 31,042 | ||||||||||||||||||||||||
Total current assets | 632,191 | 561,385 | 550,422 | 603,979 | 498,269 | 470,489 | 473,868 | 493,106 | ||||||||||||||||||||||||
Property, plant and equipment, net | 88,277 | 90,862 | 92,525 | 79,699 | 80,366 | 81,165 | 82,057 | 84,370 | ||||||||||||||||||||||||
Equipment held for rental, net | 18,687 | 22,903 | 18,236 | 19,651 | 20,509 | 20,288 | 21,552 | 20,979 | ||||||||||||||||||||||||
Finance receivables, less current portion | 28,797 | 22,882 | 30,484 | 31,156 | 27,366 | 61,427 | 81,490 | 45,412 | ||||||||||||||||||||||||
Pledged finance receivables, less current portion | 95,851 | 105,915 | 114,382 | 119,073 | 116,348 | 73,971 | 51,309 | 53,703 | ||||||||||||||||||||||||
Goodwill, net | 66,501 | 66,501 | 66,450 | 29,509 | 29,509 | 29,509 | 28,791 | 28,791 | ||||||||||||||||||||||||
Intangible assets, net | 32,979 | 33,709 | 34,448 | — | — | — | — | — | ||||||||||||||||||||||||
Other assets | 66,434 | 67,961 | 66,002 | 53,135 | 53,396 | 59,231 | 55,870 | 51,880 | ||||||||||||||||||||||||
$ | 1,029,717 | $ | 972,118 | $ | 972,949 | $ | 936,202 | $ | 825,763 | $ | 796,080 | $ | 794,937 | $ | 778,241 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||||||
Short-term debt and current portion of long-term debt | $ | 14,843 | $ | 1,758 | $ | 2,278 | $ | 1,472 | $ | 912 | $ | 23,436 | $ | 25,375 | $ | 14,427 | ||||||||||||||||
Current portion of limited recourse debt from finance receivables monetizations | 37,086 | 40,824 | 40,153 | 45,279 | 50,980 | 36,511 | 33,862 | 34,850 | ||||||||||||||||||||||||
Accounts payable | 123,984 | 92,762 | 68,197 | 83,408 | 83,059 | 70,162 | 96,283 | 129,317 | ||||||||||||||||||||||||
Accrued expenses | 102,582 | 89,934 | 117,844 | 91,057 | 70,820 | 62,949 | 74,755 | 83,309 | ||||||||||||||||||||||||
Total current liabilities | 278,495 | 225,278 | 228,472 | 221,216 | 205,771 | 193,058 | 230,275 | 261,903 | ||||||||||||||||||||||||
Long-term debt, less current portion | 314,798 | 312,568 | 311,603 | 294,158 | 212,006 | 242,207 | 228,563 | 177,331 | ||||||||||||||||||||||||
Limited recourse debt from finance receivables monetizations, less current portion | 98,367 | 109,459 | 113,388 | 119,661 | 113,673 | 70,151 | 49,326 | 52,721 | ||||||||||||||||||||||||
Accrued post-retirement benefits | 28,798 | 27,998 | 27,199 | 26,179 | 26,255 | 25,833 | 25,411 | 24,989 | ||||||||||||||||||||||||
Other long-term liabilities | 30,501 | 30,487 | 29,790 | 15,160 | 11,118 | 11,317 | 11,150 | 10,807 | ||||||||||||||||||||||||
Provisions for contingencies | 14,740 | 14,076 | 13,586 | 12,114 | 11,906 | 11,754 | 14,315 | 14,448 | ||||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||||||||||
Capital stock: | ||||||||||||||||||||||||||||||||
Authorized shares: 100,000 at $.20 par value | ||||||||||||||||||||||||||||||||
Issued shares: fiscal 2004 - 43,659; fiscal 2003 - 43,367; fiscal 2002 - 42,728 | 8,732 | 8,712 | 8,683 | 8,673 | 8,601 | 8,594 | 8,594 | 8,546 | ||||||||||||||||||||||||
Additional paid-in capital | 25,883 | 24,725 | 23,789 | 23,597 | 20,514 | 20,508 | 20,594 | 18,846 | ||||||||||||||||||||||||
Retained earnings | 239,215 | 230,746 | 228,806 | 228,490 | 223,033 | 221,083 | 217,072 | 216,957 | ||||||||||||||||||||||||
Unearned compensation | (2,856 | ) | (3,796 | ) | (5,145 | ) | (5,428 | ) | (2,749 | ) | (2,938 | ) | (3,157 | ) | (1,649 | ) | ||||||||||||||||
Accumulated other comprehensive loss | (6,956 | ) | (8,135 | ) | (7,222 | ) | (7,618 | ) | (4,365 | ) | (5,487 | ) | (7,206 | ) | (6,658 | ) | ||||||||||||||||
Total shareholders’ equity | 264,018 | 252,252 | 248,911 | 247,714 | 245,034 | 241,760 | 235,897 | 236,042 | ||||||||||||||||||||||||
$ | 1,029,717 | $ | 972,118 | $ | 972,949 | $ | 936,202 | $ | 825,763 | $ | 796,080 | $ | 794,937 | $ | 778,241 | |||||||||||||||||
JLG Industries, Inc. — Page 7
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(in thousands)
(Quarterly data is unaudited)
Quarter Ended | Fiscal Year | |||||||||||||||
April 30, | January 31, | October 31, | Ended | |||||||||||||
2004 | 2004 | 2003 | July 31, 2003 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net income (loss) | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 12,392 | ||||||||
Adjustments to reconcile net income to cash flow from operating activities: | ||||||||||||||||
(Gain) loss on sale of property, plant and equipment | 214 | (240 | ) | 293 | 266 | |||||||||||
(Gain) loss on sale of equipment held for rental | (1,247 | ) | 44 | 1,320 | (6,794 | ) | ||||||||||
Non-cash charges and credits: | ||||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | — | ||||||||||||
Depreciation and amortization | 7,359 | 6,766 | 6,486 | 19,937 | ||||||||||||
Other | 5,101 | 6,980 | 3,319 | 7,035 | ||||||||||||
Changes in selected working capital items: | ||||||||||||||||
Accounts receivable(1) | (57,552 | ) | (27,823 | ) | 1,020 | (35,324 | ) | |||||||||
Inventories | (14,053 | ) | 3,296 | 6,885 | 43,137 | |||||||||||
Accounts payable | 31,428 | 24,751 | (34,954 | ) | (46,026 | ) | ||||||||||
Other operating assets and liabilities | (3,515 | ) | (4,289 | ) | 44 | (12,706 | ) | |||||||||
Changes in finance receivables | (2,181 | ) | 1,770 | 1,055 | 40,487 | |||||||||||
Changes in pledged finance receivables | 1,537 | (1,175 | ) | (15,452 | ) | (114,271 | ) | |||||||||
Changes in other assets and liabilities | (1,921 | ) | (862 | ) | (3,899 | ) | (3,295 | ) | ||||||||
Cash flow from operating activities | (26,143 | ) | 11,376 | (33,350 | ) | (95,162 | ) | |||||||||
INVESTMENTS | ||||||||||||||||
Purchases of property, plant and equipment | (2,435 | ) | (2,619 | ) | (3,811 | ) | (10,806 | ) | ||||||||
Proceeds from sale of property, plant and equipment | 127 | 1 | 89 | 216 | ||||||||||||
Purchases of equipment held for rental | (4,491 | ) | (9,743 | ) | (2,209 | ) | (16,342 | ) | ||||||||
Proceeds from sale of equipment held for rental | 8,008 | 3,557 | 1,141 | 19,063 | ||||||||||||
Cash portion of OmniQuip acquisition | — | — | (95,371 | ) | — | |||||||||||
Other | 507 | (101 | ) | (46 | ) | (689 | ) | |||||||||
Cash flow from investing activities | 1,716 | (8,905 | ) | (100,207 | ) | (8,558 | ) | |||||||||
FINANCING | ||||||||||||||||
Net issuance (repayment) of short-term debt | 13,084 | (536 | ) | 594 | (13,497 | ) | ||||||||||
Issuance of long-term debt | 71,000 | 77,000 | 22,000 | 404,283 | ||||||||||||
Repayment of long-term debt | (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 | (218 | ) | (218 | ) | (216 | ) | (859 | ) | ||||||||
Exercise of stock options and issuance of restricted awards | 2,118 | 2,314 | 485 | 927 | ||||||||||||
Cash flow from financing activities | 18,885 | 4,549 | 11,395 | 228,472 | ||||||||||||
CURRENCY ADJUSTMENTS | ||||||||||||||||
Effect of exchange rate changes on cash | 362 | (183 | ) | 641 | 1,852 | |||||||||||
CASH | ||||||||||||||||
Net change in cash and cash equivalents | (5,180 | ) | 6,837 | (121,521 | ) | 126,604 | ||||||||||
Beginning balance | 18,125 | 11,288 | 132,809 | 6,205 | ||||||||||||
Ending balance | $ | 12,945 | $ | 18,125 | $ | 11,288 | $ | 132,809 | ||||||||
[Continued from above table, first column repeated]
Quarter Ended | Fiscal Year | |||||||||||||||||||
July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||
2003 | 2003 | 2003 | 2002 | July 31, 2002 | ||||||||||||||||
OPERATIONS | ||||||||||||||||||||
Net income (loss) | $ | 5,672 | $ | 2,165 | $ | 4,226 | $ | 329 | $ | (101,592 | ) | |||||||||
Adjustments to reconcile net income to cash flow from operating activities: | ||||||||||||||||||||
(Gain) loss on sale of property, plant and equipment | 149 | 25 | 89 | 3 | 392 | |||||||||||||||
(Gain) loss on sale of equipment held for rental | (1,091 | ) | (1,852 | ) | (3,154 | ) | (697 | ) | (8,049 | ) | ||||||||||
Non-cash charges and credits: | ||||||||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | — | 114,470 | |||||||||||||||
Depreciation and amortization | 4,591 | 4,931 | 5,147 | 5,268 | 20,959 | |||||||||||||||
Other | (5,564 | ) | 4,317 | 5,683 | 2,599 | 6,997 | ||||||||||||||
Changes in selected working capital items: | ||||||||||||||||||||
Accounts receivable(1) | (8,990 | ) | (41,663 | ) | (11,945 | ) | 27,274 | (40,110 | ) | |||||||||||
Inventories | 32,164 | 14,544 | 8,695 | (12,266 | ) | 24,462 | ||||||||||||||
Accounts payable | 621 | 12,832 | (26,469 | ) | (33,010 | ) | 52,685 | |||||||||||||
Other operating assets and liabilities | (2,052 | ) | 7,434 | (8,396 | ) | (9,692 | ) | 15,194 | ||||||||||||
Changes in finance receivables | (2,644 | ) | 50,239 | 20,244 | (27,352 | ) | 57,154 | |||||||||||||
Changes in pledged finance receivables | (14,627 | ) | (64,299 | ) | (32,950 | ) | (2,395 | ) | (91,331 | ) | ||||||||||
Changes in other assets and liabilities | (3,392 | ) | 3,970 | (281 | ) | (3,592 | ) | (28,136 | ) | |||||||||||
Cash flow from operating activities | 4,837 | (7,357 | ) | (39,111 | ) | (53,531 | ) | 23,095 | ||||||||||||
INVESTMENTS | ||||||||||||||||||||
Purchases of property, plant and equipment | (2,811 | ) | (3,059 | ) | (3,286 | ) | (1,650 | ) | (12,954 | ) | ||||||||||
Proceeds from sale of property, plant and equipment | — | 92 | 121 | 3 | 172 | |||||||||||||||
Purchases of equipment held for rental | (1,991 | ) | (3,014 | ) | (7,713 | ) | (3,624 | ) | (26,429 | ) | ||||||||||
Proceeds from sale of equipment held for rental | 2,882 | 3,577 | 10,099 | 2,505 | 28,924 | |||||||||||||||
Cash portion of OmniQuip acquisition | — | — | — | — | — | |||||||||||||||
Other | (25 | ) | 529 | (1,136 | ) | (57 | ) | 405 | ||||||||||||
Cash flow from investing activities | (1,945 | ) | (1,875 | ) | (1,915 | ) | (2,823 | ) | (9,882 | ) | ||||||||||
FINANCING | ||||||||||||||||||||
Net issuance (repayment) of short-term debt | 568 | (23,114 | ) | (1,975 | ) | 11,024 | (7,771 | ) | ||||||||||||
Issuance of long-term debt | 126,995 | 57,288 | 127,000 | 93,000 | 617,000 | |||||||||||||||
Repayment of long-term debt | (32,336 | ) | (88,050 | ) | (116,059 | ) | (43,202 | ) | (717,572 | ) | ||||||||||
Issuance of limited recourse debt | 18,940 | 68,975 | 29,468 | — | 90,214 | |||||||||||||||
Repayment of limited recourse debt | — | (118 | ) | — | — | — | ||||||||||||||
Payment of dividends | (215 | ) | (215 | ) | (215 | ) | (214 | ) | (1,058 | ) | ||||||||||
Exercise of stock options and issuance of restricted awards | 189 | 260 | 203 | 275 | 3,732 | |||||||||||||||
Cash flow from financing activities | 114,141 | 15,026 | 38,422 | 60,883 | (15,455 | ) | ||||||||||||||
CURRENCY ADJUSTMENTS | ||||||||||||||||||||
Effect of exchange rate changes on cash | (753 | ) | 1,170 | 1,988 | (553 | ) | �� | (807 | ) | |||||||||||
CASH | ||||||||||||||||||||
Net change in cash and cash equivalents | 116,280 | 6,964 | (616 | ) | 3,976 | (3,049 | ) | |||||||||||||
Beginning balance | 16,529 | 9,565 | 10,181 | 6,205 | 9,254 | |||||||||||||||
Ending balance | $ | 132,809 | $ | 16,529 | $ | 9,565 | $ | 10,181 | $ | 6,205 | ||||||||||
(1) Net of change in accounts receivable securitiation of $50,600 for the period ended July 31, 2002.
JLG Industries, Inc. — Page 8
JLG INDUSTRIES, INC.
CONSOLIDATED SELECTED SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
(Quarterly data is unaudited)
Quarter Ended | Fiscal Year | |||||||||||||||
April 30, | January 31, | October 31, | Ended | |||||||||||||
2004 | 2004 | 2003 | July 31, 2003 | |||||||||||||
SEGMENT INFORMATION | ||||||||||||||||
REVENUES: | ||||||||||||||||
Machinery | $ | 261,263 | $ | 192,266 | $ | 168,958 | $ | 594,484 | ||||||||
Equipment Services | 53,258 | 40,822 | 40,815 | 136,737 | ||||||||||||
Access Financial Solutions | 4,166 | 3,442 | 3,812 | 19,907 | ||||||||||||
$ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | |||||||||
SEGMENT PROFIT (LOSS): | ||||||||||||||||
Machinery | $ | 25,190 | $ | 11,541 | $ | 6,593 | $ | 25,513 | ||||||||
Equipment services | 15,158 | 12,809 | 11,068 | 27,119 | ||||||||||||
Access Financial Solutions | 694 | (273 | ) | 284 | 3,990 | |||||||||||
General corporate expenses | (20,229 | ) | (16,088 | ) | (11,093 | ) | (32,001 | ) | ||||||||
Segment profit | 20,813 | 7,989 | 6,852 | 24,621 | ||||||||||||
Add: AFS’ interest expense | 2,785 | 2,674 | 2,914 | 11,700 | ||||||||||||
Operating Income | $ | 23,598 | $ | 10,663 | $ | 9,766 | $ | 36,321 | ||||||||
PRODUCT GROUP REVENUES | ||||||||||||||||
Aerial work platforms | $ | 146,017 | $ | 109,354 | $ | 89,260 | $ | 428,564 | ||||||||
Telehandlers | 99,439 | 69,908 | 72,008 | 117,475 | ||||||||||||
Excavators | 15,807 | 13,004 | 7,690 | 48,445 | ||||||||||||
After-sales service and support, including parts sales, and used and reconditioned equipment sales | 51,387 | 38,273 | 39,434 | 130,335 | ||||||||||||
Financial products | 3,913 | 3,442 | 3,676 | 19,184 | ||||||||||||
Rentals | 2,124 | 2,549 | 1,517 | 7,125 | ||||||||||||
$ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | |||||||||
GEOGRAPHIC REVENUES | ||||||||||||||||
United States | $ | 246,985 | $ | 177,542 | $ | 171,671 | $ | 546,494 | ||||||||
Europe | 48,079 | 40,286 | 23,951 | 145,038 | ||||||||||||
Other international | 23,623 | 18,702 | 17,963 | 59,596 | ||||||||||||
$ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | |||||||||
[Continued from above table, first column repeated]
Quarter Ended | Fiscal Year | |||||||||||||||||||
July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||
2003 | 2003 | 2003 | 2002 | July 31, 2002 | ||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||||
REVENUES: | ||||||||||||||||||||
Machinery | $ | 192,758 | $ | 167,630 | $ | 109,550 | $ | 124,546 | $ | 621,283 | ||||||||||
Equipment Services | 35,855 | 32,835 | 36,676 | 31,371 | 133,058 | |||||||||||||||
Access Financial Solutions | 4,945 | 5,305 | 5,087 | 4,570 | 15,729 | |||||||||||||||
$ | 233,558 | $ | 205,770 | $ | 151,313 | $ | 160,487 | $ | 770,070 | |||||||||||
SEGMENT PROFIT (LOSS): | ||||||||||||||||||||
Machinery | $ | 13,701 | $ | 6,665 | $ | 168 | $ | 4,979 | $ | 29,039 | ||||||||||
Equipment services | 8,235 | 6,998 | 6,632 | 5,254 | 24,686 | |||||||||||||||
Access Financial Solutions | 295 | 716 | 1,881 | 1,098 | 5,288 | |||||||||||||||
General corporate expenses | (10,356 | ) | (9,434 | ) | (6,475 | ) | (5,736 | ) | (33,347 | ) | ||||||||||
Segment profit | 11,875 | 4,945 | 2,206 | 5,595 | 25,666 | |||||||||||||||
Add: AFS’ interest expense | 3,503 | 3,619 | 2,443 | 2,135 | 5,051 | |||||||||||||||
Operating Income | $ | 15,378 | $ | 8,564 | $ | 4,649 | $ | 7,730 | $ | 30,717 | ||||||||||
PRODUCT GROUP REVENUES | ||||||||||||||||||||
Aerial work platforms | $ | 141,544 | $ | 116,092 | $ | 79,615 | $ | 91,313 | $ | 475,241 | ||||||||||
Telehandlers | 35,613 | 34,843 | 19,417 | 27,602 | 87,443 | |||||||||||||||
Excavators | 15,601 | 16,695 | 10,518 | 5,631 | 58,599 | |||||||||||||||
After-sales service and support, including parts sales, and used and reconditioned equipment sales | 34,430 | 31,652 | 34,411 | 29,842 | 124,587 | |||||||||||||||
Financial products | 4,806 | 5,152 | 4,836 | 4,390 | 14,227 | |||||||||||||||
Rentals | 1,564 | 1,336 | 2,516 | 1,709 | 9,973 | |||||||||||||||
$ | 233,558 | $ | 205,770 | $ | 151,313 | $ | 160,487 | $ | 770,070 | |||||||||||
GEOGRAPHIC REVENUES | ||||||||||||||||||||
United States | $ | 165,372 | $ | 155,852 | $ | 107,920 | $ | 117,350 | $ | 556,252 | ||||||||||
Europe | 47,144 | 33,830 | 32,816 | 31,248 | 167,940 | |||||||||||||||
Other international | 21,042 | 16,088 | 10,577 | 11,889 | 45,878 | |||||||||||||||
$ | 233,558 | $ | 205,770 | $ | 151,313 | $ | 160,487 | $ | 770,070 | |||||||||||
JLG Industries, Inc. — Page 9
JLG INDUSTRIES, INC.
EBITDA
QUARTERLY PERIODS
(in thousands)
April 30, | January 31, | October 31, | July 31, | April 30, | January 31, | October 31, | ||||||||||||||||||||||
2004 | 2004 | 2003 | 2003 | 2003 | 2003 | 2002 | ||||||||||||||||||||||
Income before cumulative effect of change in accounting principle | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 5,672 | $ | 2,165 | $ | 4,226 | $ | 329 | ||||||||||||||
Interest expense | 9,400 | 9,548 | 9,876 | 9,645 | 6,764 | 6,072 | 5,504 | |||||||||||||||||||||
Income tax provision | 4,890 | 1,297 | 297 | (527 | ) | 1,018 | 1,989 | 155 | ||||||||||||||||||||
Depreciation and amortization | 7,359 | 6,766 | 6,486 | 4,591 | 4,931 | 5,147 | 5,268 | |||||||||||||||||||||
EBITDA | $ | 30,336 | $ | 19,769 | $ | 17,192 | $ | 19,381 | $ | 14,878 | $ | 17,434 | $ | 11,256 | ||||||||||||||
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. — Page 10
JLG INDUSTRIES, INC.
EBITDA AND EBITDA MARGINS
TRAILING TWELVE MONTH PERIODS
(in thousands)
April 30, | January 31, | October 31, | July 31, | April 30, | January 31, | October 31, | July 31, | |||||||||||||||||||||||||
2004 | 2004 | 2003 | 2003 | 2003 | 2003 | 2002 | 2002 | |||||||||||||||||||||||||
Income before cumulative effect of change in accounting principle | $ | 17,050 | $ | 10,528 | $ | 12,596 | $ | 12,392 | $ | 15,062 | $ | 13,733 | $ | 10,841 | $ | 12,878 | ||||||||||||||||
Interest expense | 38,469 | 35,833 | 32,357 | 27,985 | 22,885 | 19,466 | 17,421 | 16,255 | ||||||||||||||||||||||||
Income tax provision | 5,957 | 2,085 | 2,777 | 2,635 | 7,270 | 6,664 | 5,333 | 6,343 | ||||||||||||||||||||||||
Depreciation and amortization | 25,202 | 22,774 | 21,155 | 19,937 | 20,492 | 20,255 | 21,131 | 20,959 | ||||||||||||||||||||||||
EBITDA | $ | 86,678 | $ | 71,220 | $ | 68,885 | $ | 62,949 | $ | 65,709 | $ | 60,118 | $ | 54,726 | $ | 56,435 | ||||||||||||||||
Revenues | $ | 1,002,360 | $ | 889,443 | $ | 804,226 | $ | 751,128 | $ | 766,394 | $ | 769,356 | $ | 774,395 | $ | 770,070 | ||||||||||||||||
EBITDA Margin | 8.6 | % | 8.0 | % | 8.6 | % | 8.4 | % | 8.6 | % | 7.8 | % | 7.1 | % | 7.3 | % | ||||||||||||||||
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. — Page 11
JLG INDUSTRIES, INC.
NET DEBT
(in thousands)
April 30, | January 31, | October 31, | July 31, | April 30, | January 31, | October 31, | July 31, | |||||||||||||||||||||||||
2004 | 2004 | 2003 | 2003 | 2003 | 2003 | 2002 | 2002 | |||||||||||||||||||||||||
Revolving credit facilities | $ | 14,000 | $ | — | $ | — | $ | — | $ | 30,288 | $ | 61,000 | $ | 50,000 | $ | — | ||||||||||||||||
$15 million cash management facility | 13,129 | — | 567 | — | — | — | — | — | ||||||||||||||||||||||||
$25 million overdraft credit facility | — | — | — | — | — | 23,058 | 25,000 | 13,935 | ||||||||||||||||||||||||
$125 million senior notes | 125,000 | 125,000 | 125,000 | 125,000 | — | — | — | — | ||||||||||||||||||||||||
$175 million senior subordinated notes | 175,000 | 175,000 | 175,000 | 175,000 | 175,000 | 175,000 | 175,000 | 175,000 | ||||||||||||||||||||||||
Miscellaneous debt | 5,321 | 15,465 | 15,554 | 1,983 | 1,468 | 1,573 | 1,665 | 1,909 | ||||||||||||||||||||||||
Fair value of interest rate swaps | (8,296 | ) | (6,795 | ) | (8,065 | ) | (12,347 | ) | — | 5,012 | 2,273 | 914 | ||||||||||||||||||||
Gain on terminated interest rate swap | 5,487 | 5,656 | 5,825 | 5,994 | 6,162 | — | — | — | ||||||||||||||||||||||||
Bank debt and notes | 329,641 | 314,326 | 313,881 | 295,630 | 212,918 | 265,643 | 253,938 | 191,758 | ||||||||||||||||||||||||
Limited recourse debt from finance receivables monetizations * | 135,453 | 150,283 | 153,541 | 164,940 | 164,653 | 106,662 | 83,188 | 87,571 | ||||||||||||||||||||||||
Total balance sheet debt | 465,094 | 464,609 | 467,422 | 460,570 | 377,571 | 372,305 | 337,126 | 279,329 | ||||||||||||||||||||||||
Net present value of off-balance sheet rental fleet lease | 1,524 | 2,026 | 2,341 | 2,341 | 3,382 | 3,858 | 4,506 | 5,582 | ||||||||||||||||||||||||
Net present value of off-balance sheet production equipment leases | 4,966 | 5,181 | 5,564 | 5,941 | 6,590 | 6,977 | 7,364 | 7,749 | ||||||||||||||||||||||||
Total off-balance sheet financing | 6,490 | 7,207 | 7,905 | 8,282 | 9,972 | 10,835 | 11,870 | 13,331 | ||||||||||||||||||||||||
Total balance sheet debt and off-balance sheet financing | 471,584 | 471,816 | 475,327 | 468,852 | 387,543 | 383,140 | 348,996 | 292,660 | ||||||||||||||||||||||||
Less: cash | 12,945 | 18,125 | 11,288 | 132,809 | 16,529 | 9,565 | 10,181 | 6,205 | ||||||||||||||||||||||||
Less: limited recourse debt from finance receivables monetizations | 135,453 | 150,283 | 153,541 | 164,940 | 164,653 | 106,662 | 83,188 | 87,571 | ||||||||||||||||||||||||
Net debt | $ | 323,186 | $ | 303,408 | �� | $ | 310,498 | $ | 171,103 | $ | 206,361 | $ | 266,913 | $ | 255,627 | $ | 198,884 | |||||||||||||||
* Maximum loss exposure from finance receivables monetizations | $ | 23,757 | $ | 24,460 | $ | 23,380 | $ | 21,708 | $ | 18,928 | $ | 8,519 | $ | 6,275 | $ | 5,998 | ||||||||||||||||
Shareholders’ Equity | $ | 264,018 | $ | 252,252 | $ | 248,911 | $ | 247,714 | $ | 245,034 | $ | 241,760 | $ | 235,897 | $ | 236,042 | ||||||||||||||||
Net Debt-to-Net Debt plus Shareholders’ Equity | 55 | % | 55 | % | 56 | % | 41 | % | 46 | % | 52 | % | 52 | % | 46 | % | ||||||||||||||||
Total Balance Sheet Debt-to-Total Balance Sheet Debt plus Shareholders’ Equity | 64 | % | 65 | % | 65 | % | 65 | % | 61 | % | 61 | % | 59 | % | 54 | % | ||||||||||||||||
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. — Page 12
JLG INDUSTRIES, INC.
FREE CASH FLOW
(in thousands)
Quarter Ended | Fiscal Year | |||||||||||||||
April 30, | January 31, | October 31, | Ended | |||||||||||||
2004 | 2004 | 2003 | July 31, 2003 | |||||||||||||
Net income (loss) | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 12,392 | ||||||||
Adjustments to reconcile net income to cash flow from operating activities: | ||||||||||||||||
Non-cash items | 11,427 | 13,550 | 11,418 | 20,444 | ||||||||||||
Accounts receivable | (57,552 | ) | (27,823 | ) | 1,020 | (35,324 | ) | |||||||||
Inventories | (14,053 | ) | 3,296 | 6,885 | 43,137 | |||||||||||
Other current assets | (14,211 | ) | 26,225 | (3,076 | ) | (15,960 | ) | |||||||||
Accounts payable | 31,428 | 24,751 | (34,954 | ) | (46,026 | ) | ||||||||||
Accrued expenses | 10,696 | (30,514 | ) | 3,120 | 3,254 | |||||||||||
Finance receivables | (2,181 | ) | 1,770 | 1,055 | 40,487 | |||||||||||
Other cash from operations | (1,921 | ) | (862 | ) | (3,899 | ) | (3,295 | ) | ||||||||
Purchases of property, plant and equipment | (2,435 | ) | (2,619 | ) | (3,811 | ) | (10,806 | ) | ||||||||
Proceeds from sale of property, plant and equipment | 127 | 1 | 89 | 216 | ||||||||||||
Purchases of equipment held for rental | (4,491 | ) | (9,743 | ) | (2,209 | ) | (16,342 | ) | ||||||||
Proceeds from sale of equipment held for rental | 8,008 | 3,557 | 1,141 | 19,063 | ||||||||||||
Cash portion of OmniQuip acquisition | — | — | (95,371 | ) | — | |||||||||||
Other cash from investments | 507 | (101 | ) | (46 | ) | (689 | ) | |||||||||
Payment of dividends | (218 | ) | (218 | ) | (216 | ) | (859 | ) | ||||||||
Exercise of stock options and issuance of restricted awards | 2,118 | 2,314 | 485 | 927 | ||||||||||||
Effect of exchange rate changes on cash | 362 | (183 | ) | 641 | 1,852 | |||||||||||
Seller financing | — | — | (10,000 | ) | — | |||||||||||
Capital lease assumed in OmniQuip acquisition | — | — | (3,630 | ) | — | |||||||||||
Other(1) | 3,924 | 1,531 | (8,570 | ) | 15,310 | |||||||||||
Free Cash Flow | $ | (19,778 | ) | $ | 7,090 | $ | (139,395 | ) | $ | 27,781 | ||||||
[Continued from above table, first column repeated]
Quarter Ended | Fiscal Year | |||||||||||||||||||
July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||
2003 | 2003 | 2003 | 2002 | July 31, 2002 | ||||||||||||||||
Net income (loss) | $ | 5,672 | $ | 2,165 | $ | 4,226 | $ | 329 | $ | (101,592 | ) | |||||||||
Adjustments to reconcile net income to cash flow from operating activities: | ||||||||||||||||||||
Non-cash items | (1,915 | ) | 7,421 | 7,765 | 7,173 | 134,769 | ||||||||||||||
Accounts receivable | (8,990 | ) | (41,663 | ) | (11,945 | ) | 27,274 | (40,110 | ) | |||||||||||
Inventories | 32,164 | 14,544 | 8,695 | (12,266 | ) | 24,462 | ||||||||||||||
Other current assets | (18,109 | ) | 191 | 2,721 | (763 | ) | 3,110 | |||||||||||||
Accounts payable | 621 | 12,832 | (26,469 | ) | (33,010 | ) | 52,685 | |||||||||||||
Accrued expenses | 16,057 | 7,243 | (11,117 | ) | (8,929 | ) | 12,084 | |||||||||||||
Finance receivables | (2,644 | ) | 50,239 | 20,244 | (27,352 | ) | 57,154 | |||||||||||||
Other cash from operations | (3,392 | ) | 3,970 | (281 | ) | (3,592 | ) | (28,136 | ) | |||||||||||
Purchases of property, plant and equipment | (2,811 | ) | (3,059 | ) | (3,286 | ) | (1,650 | ) | (12,954 | ) | ||||||||||
Proceeds from sale of property, plant and equipment | — | 92 | 121 | 3 | 172 | |||||||||||||||
Purchases of equipment held for rental | (1,991 | ) | (3,014 | ) | (7,713 | ) | (3,624 | ) | (26,429 | ) | ||||||||||
Proceeds from sale of equipment held for rental | 2,882 | 3,577 | 10,099 | 2,505 | 28,924 | |||||||||||||||
Cash portion of OmniQuip acquisition | — | — | — | — | — | |||||||||||||||
Other cash from investments | (25 | ) | 529 | (1,136 | ) | (57 | ) | 405 | ||||||||||||
Payment of dividends | (215 | ) | (215 | ) | (215 | ) | (214 | ) | (1,058 | ) | ||||||||||
Exercise of stock options and issuance of restricted awards | 189 | 260 | 203 | 275 | 3,732 | |||||||||||||||
Effect of exchange rate changes on cash | (753 | ) | 1,170 | 1,988 | (553 | ) | (807 | ) | ||||||||||||
Seller financing | — | — | — | — | — | |||||||||||||||
Capital lease assumed in OmniQuip acquisition | — | — | — | — | — | |||||||||||||||
Other(1) | 18,518 | 4,271 | (5,186 | ) | (2,293 | ) | 63,342 | |||||||||||||
Free Cash Flow | $ | 35,258 | $ | 60,553 | $ | (11,286 | ) | $ | (56,744 | ) | $ | 169,753 | ||||||||
(1)Includes changes in accounts receivable securitization and 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 issuance of restricted awards, 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. — Page 13
JLG INDUSTRIES, INC.
STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
CONSOLIDATED | EQUIPMENT OPERATIONS | FINANCIAL SERVICES | ||||||||||||||||||||||
JLG Industries, Inc. and | JLG Industries, Inc. with Access | |||||||||||||||||||||||
Consolidated Subsidiaries | Financial Solutions on the Equity Basis | Access Financial Solutions | ||||||||||||||||||||||
Nine Months Ended April 30, | Nine Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||||||||
2004 | 2003 | 2004 | 2003 | 2004 | 2003 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Net sales | $ | 751,581 | $ | 497,631 | $ | 751,581 | $ | 497,631 | $ | — | $ | — | ||||||||||||
Financial products | 11,031 | 14,378 | — | — | 11,031 | 14,378 | ||||||||||||||||||
Rentals | 6,190 | 5,561 | 5,801 | 4,977 | 389 | 584 | ||||||||||||||||||
768,802 | 517,570 | 757,382 | 502,608 | 11,420 | 14,962 | |||||||||||||||||||
Cost of sales | 623,452 | 427,711 | 623,013 | 427,229 | 439 | 482 | ||||||||||||||||||
Gross profit | 145,350 | 89,859 | 134,369 | 75,379 | 10,981 | 14,480 | ||||||||||||||||||
Selling and administrative expenses | 86,117 | 53,949 | 84,214 | 51,361 | 1,903 | 2,588 | ||||||||||||||||||
Product development expenses | 15,195 | 12,351 | 15,195 | 12,351 | — | — | ||||||||||||||||||
Restructuring charges | 11 | 2,616 | 11 | 2,616 | — | — | ||||||||||||||||||
Income from operations | 44,027 | 20,943 | 34,949 | 9,051 | 9,078 | 11,892 | ||||||||||||||||||
Other income (deductions): | ||||||||||||||||||||||||
Interest expense | (28,824 | ) | (18,340 | ) | (20,451 | ) | (10,143 | ) | (8,373 | ) | (8,197 | ) | ||||||||||||
Miscellaneous, net | 2,659 | 7,279 | 2,659 | 7,279 | — | — | ||||||||||||||||||
Income before taxes | 17,862 | 9,882 | 17,157 | 6,187 | 705 | 3,695 | ||||||||||||||||||
Income tax provision | 6,484 | 3,162 | 6,228 | 1,980 | 256 | 1,182 | ||||||||||||||||||
Equity in income of Access Financial Solutions | — | — | 449 | 2,513 | — | — | ||||||||||||||||||
Net income | $ | 11,378 | $ | 6,720 | $ | 11,378 | $ | 6,720 | $ | 449 | $ | 2,513 | ||||||||||||
Earnings per common share | $ | .27 | $ | .16 | ||||||||||||||||||||
Earnings per common share - assuming dilution | $ | .26 | $ | .16 | ||||||||||||||||||||
Cash dividends per share | $ | .015 | $ | .015 | ||||||||||||||||||||
Weighted average shares outstanding | 42,821 | 42,587 | ||||||||||||||||||||||
Weighted average shares outstanding - assuming dilution | 43,973 | 42,849 | ||||||||||||||||||||||
JLG Industries, Inc. — Page 14
JLG INDUSTRIES, INC.
BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
CONSOLIDATED | EQUIPMENT OPERATIONS | FINANCIAL SERVICES | ||||||||||||||||||||||
JLG Industries, Inc. and | JLG Industries, Inc. with Access | |||||||||||||||||||||||
Consolidated Subsidiaries | Financial Solutions on the Equity Basis | Access Financial Solutions | ||||||||||||||||||||||
April 30, | July 31, | April 30, | July 31, | April 30, | July 31, | |||||||||||||||||||
2004 | 2003 | 2004 | 2003 | 2004 | 2003 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 12,945 | $ | 132,809 | $ | 12,945 | $ | 132,809 | $ | — | $ | — | ||||||||||||
Accounts receivable — net | 372,500 | 257,519 | 335,938 | 217,521 | 36,562 | 39,998 | ||||||||||||||||||
Finance receivables — net | 4,473 | 3,168 | — | — | 4,473 | 3,168 | ||||||||||||||||||
Pledged receivables — net | 36,027 | 41,334 | — | — | 36,027 | 41,334 | ||||||||||||||||||
Inventories | 164,160 | 122,675 | 164,160 | 122,675 | — | — | ||||||||||||||||||
Other current assets | 42,086 | 46,474 | 42,086 | 46,474 | — | — | ||||||||||||||||||
Total current assets | 632,191 | 603,979 | 555,129 | 519,479 | 77,062 | 84,500 | ||||||||||||||||||
Property, plant and equipment — net | 88,277 | 79,699 | 88,277 | 79,699 | — | — | ||||||||||||||||||
Equipment held for rental — net | 18,687 | 19,651 | 16,717 | 17,455 | 1,970 | 2,196 | ||||||||||||||||||
Finance receivables, less current portion | 28,797 | 31,156 | — | — | 28,797 | 31,156 | ||||||||||||||||||
Pledged receivables, less current portion | 95,851 | 119,073 | — | — | 95,851 | 119,073 | ||||||||||||||||||
Goodwill — net | 66,501 | 29,509 | 66,501 | 29,509 | — | — | ||||||||||||||||||
Intangible assets — net | 32,979 | — | 32,979 | — | — | — | ||||||||||||||||||
Investment in Access Financial Solutions | — | — | 37,142 | 36,693 | — | — | ||||||||||||||||||
Receivable from Access Financial Solutions | — | — | 31,836 | 35,662 | — | — | ||||||||||||||||||
Other assets | 66,434 | 53,135 | 65,367 | 52,428 | 1,067 | 707 | ||||||||||||||||||
$ | 1,029,717 | $ | 936,202 | $ | 893,948 | $ | 770,925 | $ | 204,747 | $ | 237,632 | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt and current portion of long-term debt | $ | 14,843 | $ | 1,472 | $ | 14,843 | $ | 1,472 | $ | — | $ | — | ||||||||||||
Current portion of limited recourse debt from finance receivables monetizations | 37,086 | 45,279 | — | — | 37,086 | 45,279 | ||||||||||||||||||
Accounts payable | 123,984 | 83,408 | 123,984 | 83,408 | — | — | ||||||||||||||||||
Accrued expenses | 102,582 | 91,057 | 102,266 | 90,720 | 316 | 337 | ||||||||||||||||||
Total current liabilities | 278,495 | 221,216 | 241,093 | 175,600 | 37,402 | 45,616 | ||||||||||||||||||
Long-term debt, less current portion | 314,798 | 294,158 | 314,798 | 294,158 | — | — | ||||||||||||||||||
Limited recourse debt from finance receivables monetizations, less current portion | 98,367 | 119,661 | — | — | 98,367 | 119,661 | ||||||||||||||||||
Payable to JLG Industries, Inc. | — | — | — | — | 31,836 | 35,662 | ||||||||||||||||||
Accrued post-retirement benefits | 28,798 | 26,179 | 28,798 | 26,179 | — | — | ||||||||||||||||||
Other long-term liabilities | 30,501 | 15,160 | 30,501 | 15,160 | — | — | ||||||||||||||||||
Provisions for contingencies | 14,740 | 12,114 | 14,740 | 12,114 | — | — | ||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Capital stock: | ||||||||||||||||||||||||
Authorized shares: 100,000 at $.20 par value | ||||||||||||||||||||||||
Issued and outstanding shares: 43,659 shares; fiscal 2003 – 43,367 shares | 8,732 | 8,673 | 8,732 | 8,673 | 30,000 | 30,000 | ||||||||||||||||||
Additional paid-in capital | 25,883 | 23,597 | 25,883 | 23,597 | — | — | ||||||||||||||||||
Retained earnings | 239,215 | 228,490 | 239,215 | 228,490 | 7,142 | 6,693 | ||||||||||||||||||
Unearned compensation | (2,856 | ) | (5,428 | ) | (2,856 | ) | (5,428 | ) | — | — | ||||||||||||||
Accumulated other comprehensive income | (6,956 | ) | (7,618 | ) | (6,956 | ) | (7,618 | ) | — | — | ||||||||||||||
Total shareholders’ equity | 264,018 | 247,714 | 264,018 | 247,714 | 37,142 | 36,693 | ||||||||||||||||||
$ | 1,029,717 | $ | 936,202 | $ | 893,948 | $ | 770,925 | $ | 204,747 | $ | 237,632 | |||||||||||||
JLG Industries, Inc. — Page 15
JLG INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
CONSOLIDATED | EQUIPMENT OPERATIONS | FINANCIAL SERVICES | ||||||||||||||||||||||
JLG Industries, Inc. and | JLG Industries, Inc. with Access | |||||||||||||||||||||||
Consolidated Subsidiaries | Financial Solutions on the Equity Basis | Access Financial Solutions | ||||||||||||||||||||||
Nine Months Ended April 30, | Nine Months Ended April 30, | Nine Months Ended April 30, | ||||||||||||||||||||||
2004 | 2003 | 2004 | 2003 | 2004 | 2003 | |||||||||||||||||||
Operations | ||||||||||||||||||||||||
Net income | $ | 11,378 | $ | 6,720 | $ | 11,378 | $ | 6,720 | $ | 449 | $ | 2,513 | ||||||||||||
Adjustments to reconcile net income to cash flow from operating activities: | ||||||||||||||||||||||||
(Gain) loss on sale of property, plant and equipment | 267 | 117 | 267 | 117 | — | — | ||||||||||||||||||
(Gain) loss on sale of equipment held for rental | 117 | (5,703 | ) | 114 | (6,047 | ) | 3 | 344 | ||||||||||||||||
Non-cash charges and credits: | ||||||||||||||||||||||||
Depreciation and amortization | 20,611 | 15,346 | 20,182 | 14,803 | 429 | 543 | ||||||||||||||||||
Other | 15,400 | 12,599 | 14,998 | 11,725 | 402 | 874 | ||||||||||||||||||
Changes in selected working capital items: | ||||||||||||||||||||||||
Accounts receivable | (84,355 | ) | (26,334 | ) | (88,260 | ) | 10,074 | 3,905 | (36,408 | ) | ||||||||||||||
Inventories | (3,872 | ) | 10,973 | (3,872 | ) | 10,973 | — | — | ||||||||||||||||
Accounts payable | 21,225 | (46,647 | ) | 21,225 | (46,647 | ) | — | — | ||||||||||||||||
Other operating assets and liabilities | (7,760 | ) | (10,654 | ) | (7,739 | ) | (10,667 | ) | (21 | ) | 13 | |||||||||||||
Changes in finance receivables | 644 | 43,131 | — | — | 644 | 43,131 | ||||||||||||||||||
Changes in pledged finance receivables | (15,090 | ) | (99,644 | ) | — | — | (15,090 | ) | (99,644 | ) | ||||||||||||||
Changes in other assets and liabilities | (6,682 | ) | 97 | (6,322 | ) | 743 | (360 | ) | (646 | ) | ||||||||||||||
Cash flow from operating activities | (48,117 | ) | (99,999 | ) | (38,029 | ) | (8,206 | ) | (9,639 | ) | (89,280 | ) | ||||||||||||
Investments | ||||||||||||||||||||||||
Purchases of property, plant and equipment | (8,865 | ) | (7,995 | ) | (8,865 | ) | (7,995 | ) | — | — | ||||||||||||||
Proceeds from the sale of property, plant and equipment | 217 | 216 | 217 | 216 | — | — | ||||||||||||||||||
Purchases of equipment held for rental | (16,443 | ) | (14,351 | ) | (16,182 | ) | (13,812 | ) | (261 | ) | (539 | ) | ||||||||||||
Proceeds from the sale of equipment held for rental | 12,706 | 16,181 | 12,706 | 16,181 | — | — | ||||||||||||||||||
Cash portion of OmniQuip acquisition | (95,371 | ) | — | (95,371 | ) | — | — | — | ||||||||||||||||
Investment in income Access Financial Solutions | — | — | (449 | ) | (2,513 | ) | — | — | ||||||||||||||||
Other | 360 | (664 | ) | 360 | (664 | ) | — | — | ||||||||||||||||
Cash flow from investing activities | (107,396 | ) | (6,613 | ) | (107,584 | ) | (8,587 | ) | (261 | ) | (539 | ) | ||||||||||||
Financing | ||||||||||||||||||||||||
Net increase (decrease) in short-term debt | 13,142 | (14,065 | ) | 13,142 | (14,065 | ) | — | — | ||||||||||||||||
Issuance of long-term debt | 170,000 | 277,288 | 170,000 | 277,288 | — | — | ||||||||||||||||||
Repayment of long-term debt | (166,304 | ) | (247,311 | ) | (166,304 | ) | (247,311 | ) | — | — | ||||||||||||||
Issuance of limited recourse debt | 13,979 | 98,443 | — | — | 13,979 | 98,443 | ||||||||||||||||||
Repayment of limited recourse debt | (253 | ) | (118 | ) | — | — | (253 | ) | (118 | ) | ||||||||||||||
Change in receivable from Access Financial Solutions | — | — | 3,826 | 8,506 | — | — | ||||||||||||||||||
Change in payable to JLG Industries, Inc. | — | — | — | — | (3,826 | ) | (8,506 | ) | ||||||||||||||||
Payment of dividends | (652 | ) | (644 | ) | (652 | ) | (644 | ) | — | — | ||||||||||||||
Exercise of stock options and issuance of restricted awards | 4,917 | 738 | 4,917 | 738 | — | — | ||||||||||||||||||
Cash flow from financing activities | 34,829 | 114,331 | 24,929 | 24,512 | 9,900 | 89,819 | ||||||||||||||||||
Currency Adjustments | ||||||||||||||||||||||||
Effect of exchange rate changes on cash | 820 | 2,605 | 820 | 2,605 | — | — | ||||||||||||||||||
Cash | ||||||||||||||||||||||||
Net change in cash and cash equivalents | (119,864 | ) | 10,324 | (119,864 | ) | 10,324 | — | — | ||||||||||||||||
Beginning balance | 132,809 | 6,205 | 132,809 | 6,205 | — | — | ||||||||||||||||||
Ending balance | $ | 12,945 | $ | 16,529 | $ | 12,945 | $ | 16,529 | $ | — | $ | — | ||||||||||||
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