Exhibit 99.1 | ||
Press Release | ||
FOR IMMEDIATE RELEASE | ||
JLG Industries, Inc. | ||
1 JLG Drive | ||
McConnellsburg, PA 17233-9533 | ||
Telephone (717) 485-5161 | Contact: Juna Rowland | |
Fax (717) 485-6417 | Vice President — Corporate & Investor Relations | |
www.jlg.com | (240) 313-1816, ir@jlg.com |
JLG ACHIEVES RECORD SALES IN FOURTH QUARTER AND FULL YEAR
Continues Improvement in Operating Results
MCCONNELLSBURG, PA, SEPTEMBER 23, 2004– JLG Industries, Inc. (NYSE: JLG) announced today consolidated revenues for the fourth fiscal quarter ended July 31, 2004 of $425 million, 82 percent higher than year-ago levels, including revenues from OmniQuip products of $80 million. Excluding the favorable impact of the OmniQuip acquisition, revenues were $345 million, up 48 percent. North America and international sales were up 51 percent and 38 percent, respectively. Adjusted to eliminate the impact of integration expense, earnings for the fourth quarter were $.42 per diluted share versus $.13 in the prior year. Unadjusted reported earnings on a GAAP basis for the fourth quarter were $.35 per diluted share versus $.13 in the prior year. The favorable impact of increased demand, productivity improvements and synergy savings from the acquisition were offset in part by higher costs of raw materials, specifically steel and petroleum-based products, and component shortages attributable to supply versus demand imbalances.
Excluding integration expense, gross profit margin improved to 19.6 percent in the fourth quarter, despite higher costs of raw materials and component shortages, compared with 19.1 percent in the same period last year. Adjusted to eliminate the impact of integration expense, operating income improved to $36.9 million, or 8.7 percent, versus $15.4 million, or 6.6 percent, for the year-ago period. On a GAAP basis, unadjusted reported gross profit margin was 18.8 percent versus 19.1 percent, and operating profit margin was 7.5 percent versus 6.6 percent in the prior year fourth quarter.
YEAR-TO-DATE RESULTS
For the full year fiscal 2004, consolidated revenues were $1.2 billion, a 59 percent increase from the prior year period. Revenues from the OmniQuip acquisition were $250 million, up 17 percent, while remaining revenues were $944 million, up 26 percent. Adjusted to eliminate the impact of integration expense, fiscal year earnings were $.84 per diluted share versus $.29 for the prior year. Unadjusted reported earnings on a GAAP basis are $.61 per diluted share versus $.29 last year.
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JLG Industries, Inc. – page 2
Before the impact of integration expense, gross profit margin improved to 19.7 percent from 17.9 percent in the comparable period last year, and operating income increased to $91.9 million, or 7.7 percent, from $36.3 million, or 4.8 percent, in the year-ago period. On a GAAP basis, unadjusted reported gross profit margin was 18.9 percent versus 17.9 percent, and operating profit margin was 6.4 percent versus 4.8 percent for the prior year period.
The Company also continued to improve key operating metrics, reducing trade receivable days sales outstanding to 78 at year-end from 103 last year while improving inventory turns to 5.8 from 3.4.
Total integration costs in fiscal 2004 were $27.7 million, with $16.0 million impacting the income statement and $23.1 million in cash resulting in gross annual savings of $34.8 million. The estimate of total cost for the four-year integration program is $45.9 million, with $27.0 million to impact the income statement and $37.5 million in cash, while ongoing annual synergies are expected to be approximately $60.6 million. For fiscal 2005, the Company estimates integration costs of $15.2 million with ongoing annual synergies of $19.5 million. Of the $15.2 million in costs, $8.4 million will impact the income statement and there will be $11.4 million in cash.
OUTLOOK
“Fueled by an improved North American economy and successful integration of our OmniQuip acquisition, and absent any major economic or geopolitical issues, we are optimistic at the overall outlook for our Company in fiscal 2005, even as we keep our focus on business realities and their inherent challenges,” stated Bill Lasky, Chairman of the Board, President and Chief Executive Officer. “Our order book is strong, and we anticipate stronger demand in fiscal 2005 with global sales projected to increase by 10 to 25 percent. The biggest challenge going forward is anticipated to be the price of raw materials, especially steel and petroleum-based components. Steel prices have been most volatile and the range of forecast estimates within the industry varies widely. Our fiscal 2005 plan assumes our weighted average price of steel will exceed the prior year’s baseline by 75 percent. To hold the increase at no more than this level will require prices to begin to abate in the fall and winter, and level out into the spring and summer of next year. Our response to these conditions included initiating a steel surcharge of 2.8 percent in March, and more recently, instituting a base price increase averaging 3 percent. Even so, the adverse effect of high steel prices will be pronounced during our seasonally slower first fiscal half.
Our five-year strategic plan is designed to reach our $2 billion revenue goal. Demand for access equipment worldwide is growing, and we believe that we have the right products and services, and manufacturing flexibility to meet those demands. Despite the current challenges, we will maintain fiscal discipline and focus on what is important to our stakeholders: sales growth, quality of earnings, asset intensity and risk management.”
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JLG Industries, Inc. – page 3
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 October 15, 2004 to shareholders of record October 1, 2004.
CONFERENCE CALL
Management’s complete analysis of the Company’s quarterly results and financial condition will be provided during a conference call and webcast with accompanying presentation on Friday, September 24 at 9:00 a.m. Eastern Time accessible from www.jlg.com. Within North America, access to the call is available by dialing (800) 510-9836, participant pass code 11246817. From international locations, call (617) 614-3670, using the same pass code. A replay of the conference call presentation will be available on the Company’s website.
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 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 after-sales service and support for its customers. JLG’s manufacturing facilities are located in the United States, Belgium, and France, with sales and service operations 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 April 30, 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, visit www.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)
Fiscal Year | Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | ||||||||||||||||||||||||||||||||||||||||
Ended | July 31, | April 30, | January 31, | October 31, | Ended | July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||||||||||||||||||||
July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | 2003 | 2003 | 2003 | 2002 | July 31, 2002 | ||||||||||||||||||||||||||||||||||
REVENUES AND PROFITABILITY | ||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 1,193,962 | $ | 425,160 | $ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | $ | 233,558 | $ | 205,770 | $ | 151,313 | $ | 160,487 | $ | 770,070 | ||||||||||||||||||||||
Gross profit margin | 18.9 | % | 18.8 | % | 20.0 | % | 18.4 | % | 17.9 | % | 17.9 | % | 19.1 | % | 16.8 | % | 17.2 | % | 18.1 | % | 17.2 | % | ||||||||||||||||||||||
EBITDA(1) | 105,660 | 38,363 | 30,336 | 19,769 | 17,192 | 62,949 | 19,381 | 14,878 | 17,434 | 11,256 | 56,435 | |||||||||||||||||||||||||||||||||
Trailing twelve month EBITDA(1) | 105,660 | 105,660 | 86,678 | 71,220 | 68,885 | 62,949 | 62,949 | 65,709 | 60,118 | 54,726 | 56,435 | |||||||||||||||||||||||||||||||||
Trailing twelve month EBITDA margin(1) | 8.8 | % | 8.8 | % | 8.6 | % | 8.0 | % | 8.6 | % | 8.4 | % | 8.4 | % | 8.6 | % | 7.8 | % | 7.1 | % | 7.3 | % | ||||||||||||||||||||||
Operating income | 75,906 | 31,879 | 23,598 | 10,663 | 9,766 | 36,321 | 15,378 | 8,564 | 4,649 | 7,730 | 30,717 | |||||||||||||||||||||||||||||||||
Operating profit margin | 6.4 | % | 7.5 | % | 7.4 | % | 4.5 | % | 4.6 | % | 4.8 | % | 6.6 | % | 4.2 | % | 3.1 | % | 4.8 | % | 4.0 | % | ||||||||||||||||||||||
Net income margin(1) | 2.2 | % | 3.6 | % | 2.7 | % | 0.9 | % | 0.2 | % | 1.6 | % | 2.4 | % | 1.1 | % | 2.8 | % | 0.2 | % | 1.7 | % | ||||||||||||||||||||||
Reported EPS per diluted share(1) | $ | .61 | $ | .35 | $ | .20 | $ | .05 | $ | .01 | $ | .29 | $ | .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)) | $ | (15,975 | ) | $ | (5,022 | ) | $ | (2,907 | ) | $ | (4,145 | ) | $ | (3,901 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | (119 | ) | 3 | (1 | ) | (58 | ) | (63 | ) | (4,040 | ) | (859 | ) | (1,762 | ) | (1,256 | ) | (163 | ) | (6,715 | ) | |||||||||||||||||||||||
Currency effects (in Miscellaneous-net) | (2,309 | ) | (1,171 | ) | (1,938 | ) | 675 | 125 | 5,422 | (697 | ) | 993 | 7,575 | (2,449 | ) | 2,896 | ||||||||||||||||||||||||||||
Bad debt charges (in SA&PD) | (11,560 | ) | (3,819 | ) | (2,376 | ) | (4,273 | ) | (1,092 | ) | (7,024 | ) | (3,273 | ) | (1,318 | ) | (1,652 | ) | (781 | ) | (3,693 | ) | ||||||||||||||||||||||
Inventory charges (in COS) | (4,519 | ) | (1,374 | ) | (196 | ) | (1,622 | ) | (1,327 | ) | (4,463 | ) | 1,905 | (3,380 | ) | (1,944 | ) | (1,044 | ) | (4,670 | ) | |||||||||||||||||||||||
Early vesting incentives (in both COS, SA&PD) | (1,771 | ) | — | (577 | ) | (1,194 | ) | — | — | — | — | — | — | (762 | ) | |||||||||||||||||||||||||||||
Other Incentive pay (in both COS, SA&PD) | (16,923 | ) | (12,065 | ) | (4,858 | ) | — | — | (2,605 | ) | (876 | ) | (1,729 | ) | — | — | — | |||||||||||||||||||||||||||
Deferred profit on sale-leaseback (in COS) | — | — | — | — | — | — | — | — | — | — | 3,069 | |||||||||||||||||||||||||||||||||
Restatement expenses (in SA&PD) | (1,264 | ) | (206 | ) | (1,058 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Unrecovered steel increase (in COS) | (4,695 | ) | (4,695 | ) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
NET INCOME | ||||||||||||||||||||||||||||||||||||||||||||
Integration expenses — OmniQuip (in both COS, SA&PD) | (10,247 | ) | (3,264 | ) | (1,890 | ) | (2,589 | ) | (2,504 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | (75 | ) | 2 | (1 | ) | (36 | ) | (40 | ) | (2,747 | ) | (584 | ) | (1,198 | ) | (854 | ) | (111 | ) | (4,499 | ) | |||||||||||||||||||||||
Currency effects (in Miscellaneous-net) | (1,519 | ) | (761 | ) | (1,260 | ) | 422 | 80 | 3,687 | (474 | ) | 675 | 5,151 | (1,665 | ) | 1,940 | ||||||||||||||||||||||||||||
Bad debt charges (in SA&PD) | (7,396 | ) | (2,482 | ) | (1,544 | ) | (2,669 | ) | (701 | ) | (4,776 | ) | (2,226 | ) | (896 | ) | (1,123 | ) | (531 | ) | (2,474 | ) | ||||||||||||||||||||||
Inventory charges (in COS) | (2,885 | ) | (893 | ) | (127 | ) | (1,013 | ) | (852 | ) | (3,035 | ) | 1,295 | (2,298 | ) | (1,322 | ) | (710 | ) | (3,129 | ) | |||||||||||||||||||||||
Benefit from change in effective income tax rate | — | — | — | — | 2,051 | 2,051 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Early vesting incentives (in both COS, SA&PD) | (1,121 | ) | — | (375 | ) | (746 | ) | — | — | — | — | — | — | (511 | ) | |||||||||||||||||||||||||||||
Other Incentive pay (in both COS, SA&PD) | (11,000 | ) | (7,842 | ) | (3,158 | ) | — | — | (1,771 | ) | (596 | ) | (1,176 | ) | — | — | — | |||||||||||||||||||||||||||
Deferred profit on sale-leaseback (in COS) | — | — | — | — | — | — | — | — | — | — | 2,056 | |||||||||||||||||||||||||||||||||
Restatement expenses (in SA&PD) | (822 | ) | (134 | ) | (688 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Unrecovered steel increase (in COS) | (3,052 | ) | (3,052 | ) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||||||||||||||||||||||||||||||
Integration expenses — OmniQuip (in both COS, SA&PD) | (0.23 | ) | (0.07 | ) | (0.04 | ) | (0.06 | ) | (0.06 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | — | — | — | — | — | (0.06 | ) | (0.01 | ) | (0.03 | ) | (0.02 | ) | — | (0.10 | ) | ||||||||||||||||||||||||||||
Currency effects (in Miscellaneous-net) | (0.04 | ) | (0.02 | ) | (0.03 | ) | 0.01 | — | 0.09 | (0.01 | ) | 0.02 | 0.12 | (0.04 | ) | 0.05 | ||||||||||||||||||||||||||||
Bad debt charges (in SA&PD) | (0.17 | ) | (0.06 | ) | (0.04 | ) | (0.06 | ) | (0.02 | ) | (0.11 | ) | (0.05 | ) | (0.02 | ) | (0.03 | ) | (0.01 | ) | (0.06 | ) | ||||||||||||||||||||||
Inventory charges (in COS) | (0.06 | ) | (0.02 | ) | — | (0.02 | ) | (0.02 | ) | (0.07 | ) | 0.03 | (0.05 | ) | (0.03 | ) | (0.02 | ) | (0.07 | ) | ||||||||||||||||||||||||
Benefit from change in effective income tax rate | — | — | — | — | — | 0.05 | 0.05 | — | — | — | — | |||||||||||||||||||||||||||||||||
Early vesting incentives (in both COS, SA&PD) | (0.03 | ) | — | (0.01 | ) | (0.02 | ) | — | — | — | — | — | — | (0.01 | ) | |||||||||||||||||||||||||||||
Other Incentive pay (in both COS, SA&PD) | (0.25 | ) | (0.18 | ) | (0.07 | ) | — | — | (0.04 | ) | (0.01 | ) | (0.03 | ) | — | — | — | |||||||||||||||||||||||||||
Deferred profit on sale-leaseback (in COS) | — | — | — | — | — | — | — | — | — | — | 0.05 | |||||||||||||||||||||||||||||||||
Restatement expenses (in SA&PD) | (0.02 | ) | — | (0.02 | ) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Unrecovered steel increase (in COS) | (0.07 | ) | (0.07 | ) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
BALANCE SHEET & LIQUIDITY MEASURES | ||||||||||||||||||||||||||||||||||||||||||||
Cash & cash equivalents | $ | 37,656 | $ | 37,656 | $ | 12,945 | $ | 18,125 | $ | 11,288 | $ | 132,809 | $ | 132,809 | $ | 16,529 | $ | 9,565 | $ | 10,181 | $ | 6,205 | ||||||||||||||||||||||
Accounts receivable, net | 362,819 | 362,819 | 372,500 | 315,304 | 289,729 | 257,519 | 257,519 | 252,200 | 210,192 | 200,329 | 227,722 | |||||||||||||||||||||||||||||||||
Finance receivable, net | 39,667 | 39,667 | 33,270 | 31,134 | 33,057 | 34,324 | 34,324 | 28,936 | 79,458 | 99,766 | 73,660 | |||||||||||||||||||||||||||||||||
Pledged finance receivables, net | 118,417 | 118,417 | 131,878 | 148,104 | 153,762 | 160,407 | 160,407 | 167,089 | 113,656 | 86,700 | 88,056 | |||||||||||||||||||||||||||||||||
Inventories | 154,405 | 154,405 | 164,160 | 150,074 | 153,200 | 122,675 | 122,675 | 154,168 | 168,612 | 178,016 | 165,536 | |||||||||||||||||||||||||||||||||
Total balance sheet debt | 423,534 | 423,534 | 465,094 | 464,609 | 467,422 | 460,570 | 460,570 | 377,571 | 372,305 | 337,126 | 279,329 | |||||||||||||||||||||||||||||||||
Limited recourse debt from finance receivables monetizations | 121,794 | 121,794 | 135,453 | 150,283 | 153,541 | 164,940 | 164,940 | 164,653 | 106,662 | 83,188 | 87,571 | |||||||||||||||||||||||||||||||||
Net debt(3) | 269,553 | 269,553 | 323,186 | 303,408 | 310,498 | 171,103 | 171,103 | 206,361 | 266,913 | 255,627 | 198,884 | |||||||||||||||||||||||||||||||||
Net debt(3) to total capitalization | 49 | % | 49 | % | 55 | % | 55 | % | 56 | % | 41 | % | 41 | % | 46 | % | 52 | % | 52 | % | 46 | % | ||||||||||||||||||||||
Maximum loss exposure from finance receivables monetizations | 25,161 | 25,161 | 23,757 | 24,460 | 23,380 | 21,708 | 21,708 | 18,928 | 8,519 | 6,275 | 5,998 | |||||||||||||||||||||||||||||||||
Equity | 281,270 | 281,270 | 264,018 | 252,252 | 248,911 | 247,714 | 247,714 | 245,034 | 241,760 | 235,897 | 236,042 | |||||||||||||||||||||||||||||||||
Working capital | 340,552 | 340,552 | 353,696 | 336,107 | 321,950 | 382,763 | 382,763 | 292,498 | 277,431 | 243,593 | 231,203 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 25,681 | 5,070 | 7,359 | 6,766 | 6,486 | 19,937 | 4,591 | 4,931 | 5,147 | 5,268 | 20,959 | |||||||||||||||||||||||||||||||||
Capital expenditures, net of retirements | 11,978 | 3,597 | 2,094 | 2,858 | 3,429 | 10,324 | 2,662 | 2,942 | 3,076 | 1,644 | 12,390 | |||||||||||||||||||||||||||||||||
Free cash flow(4) | (98,450 | ) | 53,633 | (19,778 | ) | 7,090 | (139,395 | ) | 27,781 | 35,258 | 60,553 | (11,286 | ) | (56,744 | ) | 169,753 | ||||||||||||||||||||||||||||
FINANCIAL RATIOS | ||||||||||||||||||||||||||||||||||||||||||||
Days sales outstanding | 78.4 | 78.4 | 106.0 | 115.4 | 106.0 | 102.7 | 102.7 | 109.6 | 114.0 | 98.7 | 85.7 | |||||||||||||||||||||||||||||||||
Days payables outstanding | 57.0 | 57.0 | 65.1 | 58.6 | 54.0 | 70.8 | 70.8 | 75.8 | 36.0 | 59.2 | 66.5 | |||||||||||||||||||||||||||||||||
Inventory turnover (annualized) | 5.8 | 5.8 | 5.1 | 4.6 | 3.8 | 3.4 | 3.4 | 3.2 | 3.3 | 3.5 | 3.3 |
(1) | Before cumulative effect of change in accounting principle. | |||
(2) | Net of 35%, 35%, 38%, 36%, 32% and 33% effective income tax rate for the fourth quarter of fiscal 2004, 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)
Fiscal Year | Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | ||||||||||||||||||||||||||||||||||||||||
Ended | July 31, | April 30, | January 31, | October 31, | Ended | July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||||||||||||||||||||
July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | 2003 | 2003 | 2003 | 2002 | July 31, 2002 | ||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,170,186 | $ | 418,605 | $ | 312,650 | $ | 230,539 | $ | 208,392 | $ | 724,819 | $ | 227,188 | $ | 199,282 | $ | 143,961 | $ | 154,388 | $ | 745,870 | ||||||||||||||||||||||
Financial products | 15,203 | 4,172 | 3,913 | 3,442 | 3,676 | 19,184 | 4,806 | 5,152 | 4,836 | 4,390 | 14,227 | |||||||||||||||||||||||||||||||||
Rentals | 8,573 | 2,383 | 2,124 | 2,549 | 1,517 | 7,125 | 1,564 | 1,336 | 2,516 | 1,709 | 9,973 | |||||||||||||||||||||||||||||||||
1,193,962 | 425,160 | 318,687 | 236,530 | 213,585 | 751,128 | 233,558 | 205,770 | 151,313 | 160,487 | 770,070 | ||||||||||||||||||||||||||||||||||
Cost of sales | 968,562 | 345,110 | 255,050 | 193,083 | 175,319 | 616,686 | 188,975 | 171,125 | 125,215 | 131,371 | 637,983 | |||||||||||||||||||||||||||||||||
Gross profit | 225,400 | 80,050 | 63,637 | 43,447 | 38,266 | 134,442 | 44,583 | 34,645 | 26,098 | 29,116 | 132,087 | |||||||||||||||||||||||||||||||||
Gross profit margin | 18.9 | % | 18.8 | % | 20.0 | % | 18.4 | % | 17.9 | % | 17.9 | % | 19.1 | % | 16.8 | % | 17.2 | % | 18.1 | % | 17.2 | % | ||||||||||||||||||||||
Selling and administrative expenses | 128,465 | 42,348 | 34,052 | 28,349 | 23,716 | 79,225 | 25,276 | 20,087 | 16,377 | 17,485 | 79,693 | |||||||||||||||||||||||||||||||||
Selling & administrative % | 10.8 | % | 10.0 | % | 10.7 | % | 12.0 | % | 11.1 | % | 10.5 | % | 10.8 | % | 9.8 | % | 10.8 | % | 10.9 | % | 10.3 | % | ||||||||||||||||||||||
Product development expenses | 21,002 | 5,807 | 5,987 | 4,435 | 4,773 | 16,142 | 3,791 | 4,561 | 3,889 | 3,901 | 15,586 | |||||||||||||||||||||||||||||||||
Product development % | 1.8 | % | 1.6 | % | 1.9 | % | 1.9 | % | 2.2 | % | 2.1 | % | 1.6 | % | 2.2 | % | 2.6 | % | 2.4 | % | 2.0 | % | ||||||||||||||||||||||
Restructuring charges | 27 | 16 | — | — | 11 | 2,754 | 138 | 1,433 | 1,183 | — | 6,091 | |||||||||||||||||||||||||||||||||
Income from operations | 75,906 | 31,879 | 23,598 | 10,663 | 9,766 | 36,321 | 15,378 | 8,564 | 4,649 | 7,730 | 30,717 | |||||||||||||||||||||||||||||||||
Operating profit margin | 6.4 | % | 7.5 | % | 7.4 | % | 4.5 | % | 4.6 | % | 4.8 | % | 6.6 | % | 4.2 | % | 3.1 | % | 4.8 | % | 4.0 | % | ||||||||||||||||||||||
Other income (deductions): | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (38,098 | ) | (9,274 | ) | (9,400 | ) | (9,548 | ) | (9,876 | ) | (27,985 | ) | (9,645 | ) | (6,764 | ) | (6,072 | ) | (5,504 | ) | (16,255 | ) | ||||||||||||||||||||||
Miscellaneous, net | 4,073 | 1,414 | (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 | 41,881 | 24,019 | 13,577 | 3,455 | 830 | 15,027 | 5,145 | 3,183 | 6,215 | 484 | 19,221 | |||||||||||||||||||||||||||||||||
Income tax provision | 15,232 | 8,748 | 4,890 | 1,297 | 297 | 2,635 | (527 | ) | 1,018 | 1,989 | 155 | 6,343 | ||||||||||||||||||||||||||||||||
Income before cumulative effect of change in accounting principle | 26,649 | 15,271 | 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) | $ | 26,649 | $ | 15,271 | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 12,392 | $ | 5,672 | $ | 2,165 | $ | 4,226 | $ | 329 | $ | (101,592 | ) | |||||||||||||||||||||
Return on revenues before impairment | 2.2 | % | 3.6 | % | 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 | $ | .62 | $ | .36 | $ | .20 | $ | .05 | $ | .01 | $ | .29 | $ | .13 | $ | .05 | $ | .10 | $ | .01 | $ | .31 | ||||||||||||||||||||||
Cumulative effect of change in accounting principle(1) | — | — | — | — | — | — | — | — | — | — | (2.72 | ) | ||||||||||||||||||||||||||||||||
Earnings (loss) per common share | $ | .62 | $ | .36 | $ | .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 | $ | .61 | $ | .35 | $ | .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 | $ | .61 | $ | .35 | $ | .20 | $ | .05 | $ | .01 | $ | .29 | $ | .13 | $ | .05 | $ | .10 | $ | .01 | $ | (2.35 | ) | |||||||||||||||||||||
Cash Dividends per share | $ | .020 | $ | .005 | $ | .005 | $ | .005 | $ | .005 | $ | .020 | $ | .005 | $ | .005 | $ | .005 | $ | .005 | $ | .025 | ||||||||||||||||||||||
Average basic shares outstanding | 42,860 | 42,955 | 42,836 | 42,791 | 42,656 | 42,601 | 42,608 | 42,598 | 42,570 | 42,541 | 42,082 | |||||||||||||||||||||||||||||||||
Average diluted shares outstanding | 44,032 | 44,191 | 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)
July 31, | April 30, | January 31, | October 31, | July 31, | April 30, | January 31, | October 31, | July 31, | ||||||||||||||||||||||||||||
2004 | 2004 | 2004 | 2003 | 2003 | 2003 | 2003 | 2002 | 2002 | ||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 37,656 | $ | 12,945 | $ | 18,125 | $ | 11,288 | $ | 132,809 | $ | 16,529 | $ | 9,565 | $ | 10,181 | $ | 6,205 | ||||||||||||||||||
Accounts receivable, net | 362,819 | 372,500 | 315,304 | 289,729 | 257,519 | 252,200 | 210,192 | 200,329 | 227,722 | |||||||||||||||||||||||||||
Finance receivables, net | 5,920 | 4,473 | 8,252 | 2,573 | 3,168 | 1,570 | 18,031 | 18,276 | 28,248 | |||||||||||||||||||||||||||
Pledged finance receivables, net | 31,858 | 36,027 | 42,189 | 39,380 | 41,334 | 50,741 | 39,685 | 35,391 | 34,353 | |||||||||||||||||||||||||||
Inventories | 154,405 | 164,160 | 150,074 | 153,200 | 122,675 | 154,168 | 168,612 | 178,016 | 165,536 | |||||||||||||||||||||||||||
Other current assets | 41,058 | 42,086 | 27,441 | 54,252 | 46,474 | 23,061 | 24,404 | 31,675 | 31,042 | |||||||||||||||||||||||||||
Total current assets | 633,716 | 632,191 | 561,385 | 550,422 | 603,979 | 498,269 | 470,489 | 473,868 | 493,106 | |||||||||||||||||||||||||||
Property, plant and equipment, net | 91,504 | 88,277 | 90,862 | 92,525 | 79,699 | 80,366 | 81,165 | 82,057 | 84,370 | |||||||||||||||||||||||||||
Equipment held for rental, net | 21,190 | 18,687 | 22,903 | 18,236 | 19,651 | 20,509 | 20,288 | 21,552 | 20,979 | |||||||||||||||||||||||||||
Finance receivables, less current portion | 33,747 | 28,797 | 22,882 | 30,484 | 31,156 | 27,366 | 61,427 | 81,490 | 45,412 | |||||||||||||||||||||||||||
Pledged finance receivables, less current portion | 86,559 | 95,851 | 105,915 | 114,382 | 119,073 | 116,348 | 73,971 | 51,309 | 53,703 | |||||||||||||||||||||||||||
Goodwill | 62,885 | 66,501 | 66,501 | 66,450 | 29,509 | 29,509 | 29,509 | 28,791 | 28,791 | |||||||||||||||||||||||||||
Intangible assets, net | 35,240 | 32,979 | 33,709 | 34,448 | — | — | — | — | — | |||||||||||||||||||||||||||
Other assets | 62,603 | 66,434 | 67,961 | 66,002 | 53,135 | 53,396 | 59,231 | 55,870 | 51,880 | |||||||||||||||||||||||||||
$ | 1,027,444 | $ | 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 | $ | 1,729 | $ | 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 | 32,585 | 37,086 | 40,824 | 40,153 | 45,279 | 50,980 | 36,511 | 33,862 | 34,850 | |||||||||||||||||||||||||||
Accounts payable | 139,990 | 123,984 | 92,762 | 68,197 | 83,408 | 83,059 | 70,162 | 96,283 | 129,317 | |||||||||||||||||||||||||||
Accrued expenses | 118,860 | 102,582 | 89,934 | 117,844 | 91,057 | 70,820 | 62,949 | 74,755 | 83,309 | |||||||||||||||||||||||||||
Total current liabilities | 293,164 | 278,495 | 225,278 | 228,472 | 221,216 | 205,771 | 193,058 | 230,275 | 261,903 | |||||||||||||||||||||||||||
Long-term debt, less current portion | 300,011 | 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 | 89,209 | 98,367 | 109,459 | 113,388 | 119,661 | 113,673 | 70,151 | 49,326 | 52,721 | |||||||||||||||||||||||||||
Accrued post-retirement benefits | 29,666 | 28,798 | 27,998 | 27,199 | 26,179 | 26,255 | 25,833 | 25,411 | 24,989 | |||||||||||||||||||||||||||
Other long-term liabilities | 20,542 | 30,501 | 30,487 | 29,790 | 15,160 | 11,118 | 11,317 | 11,150 | 10,807 | |||||||||||||||||||||||||||
Provisions for contingencies | 13,582 | 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 - 43,903; fiscal 2003 - 43,367; fiscal 2002 - 42,728 | 8,781 | 8,732 | 8,712 | 8,683 | 8,673 | 8,601 | 8,594 | 8,594 | 8,546 | |||||||||||||||||||||||||||
Additional paid-in capital | 29,571 | 25,883 | 24,725 | 23,789 | 23,597 | 20,514 | 20,508 | 20,594 | 18,846 | |||||||||||||||||||||||||||
Retained earnings | 254,268 | 239,215 | 230,746 | 228,806 | 228,490 | 223,033 | 221,083 | 217,072 | 216,957 | |||||||||||||||||||||||||||
Unearned compensation | (5,333 | ) | (2,856 | ) | (3,796 | ) | (5,145 | ) | (5,428 | ) | (2,749 | ) | (2,938 | ) | (3,157 | ) | (1,649 | ) | ||||||||||||||||||
Accumulated other comprehensive loss | (6,017 | ) | (6,956 | ) | (8,135 | ) | (7,222 | ) | (7,618 | ) | (4,365 | ) | (5,487 | ) | (7,206 | ) | (6,658 | ) | ||||||||||||||||||
Total shareholders’ equity | 281,270 | 264,018 | 252,252 | 248,911 | 247,714 | 245,034 | 241,760 | 235,897 | 236,042 | |||||||||||||||||||||||||||
$ | 1,027,444 | $ | 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)
Fiscal Year | Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | ||||||||||||||||||||||||||||||||||||||||
Ended | July 31, | April 30, | January 31, | October 31, | Ended | July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||||||||||||||||||||
July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | 2003 | 2003 | 2003 | 2002 | July 31, 2002 | ||||||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 26,649 | $ | 15,271 | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 12,392 | $ | 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 | 319 | 52 | 214 | (240 | ) | 293 | 266 | 149 | 25 | 89 | 3 | 392 | ||||||||||||||||||||||||||||||||
(Gain) loss on sale of equipment held for rental | (12,451 | ) | (12,568 | ) | (1,247 | ) | 44 | 1,320 | (6,794 | ) | (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 | 25,681 | 5,070 | 7,359 | 6,766 | 6,486 | 19,937 | 4,591 | 4,931 | 5,147 | 5,268 | 20,959 | |||||||||||||||||||||||||||||||||
Other | 13,948 | (1,452 | ) | 5,101 | 6,980 | 3,319 | 7,035 | (5,564 | ) | 4,317 | 5,683 | 2,599 | 6,997 | |||||||||||||||||||||||||||||||
Changes in selected working capital items: | ||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable(1) | (66,296 | ) | 18,059 | (57,552 | ) | (27,823 | ) | 1,020 | (35,324 | ) | (8,990 | ) | (41,663 | ) | (11,945 | ) | 27,274 | (40,110 | ) | |||||||||||||||||||||||||
Inventories | 9,188 | 13,060 | (14,053 | ) | 3,296 | 6,885 | 43,137 | 32,164 | 14,544 | 8,695 | (12,266 | ) | 24,462 | |||||||||||||||||||||||||||||||
Accounts payable | 33,207 | 11,982 | 31,428 | 24,751 | (34,954 | ) | (46,026 | ) | 621 | 12,832 | (26,469 | ) | (33,010 | ) | 52,685 | |||||||||||||||||||||||||||||
Other operating assets and liabilities | 13,506 | 21,266 | (3,515 | ) | (4,289 | ) | 44 | (12,706 | ) | (2,052 | ) | 7,434 | (8,396 | ) | (9,692 | ) | 15,194 | |||||||||||||||||||||||||||
Changes in finance receivables | (6,112 | ) | (6,756 | ) | (2,181 | ) | 1,770 | 1,055 | 40,487 | (2,644 | ) | 50,239 | 20,244 | (27,352 | ) | 57,154 | ||||||||||||||||||||||||||||
Changes in pledged finance receivables | (14,866 | ) | 224 | 1,537 | (1,175 | ) | (15,452 | ) | (114,271 | ) | (14,627 | ) | (64,299 | ) | (32,950 | ) | (2,395 | ) | (91,331 | ) | ||||||||||||||||||||||||
Changes in other assets and liabilities | (11,090 | ) | (4,408 | ) | (1,921 | ) | (862 | ) | (3,899 | ) | (3,295 | ) | (3,392 | ) | 3,970 | (281 | ) | (3,592 | ) | (28,136 | ) | |||||||||||||||||||||||
Cash flow from operating activities | 11,683 | 59,800 | (26,143 | ) | 11,376 | (33,350 | ) | (95,162 | ) | 4,837 | (7,357 | ) | (39,111 | ) | (53,531 | ) | 23,095 | |||||||||||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||
Purchases of property, plant and equipment | (12,387 | ) | (3,522 | ) | (2,435 | ) | (2,619 | ) | (3,811 | ) | (10,806 | ) | (2,811 | ) | (3,059 | ) | (3,286 | ) | (1,650 | ) | (12,954 | ) | ||||||||||||||||||||||
Proceeds from sale of property, plant and equipment | 90 | (127 | ) | 127 | 1 | 89 | 216 | — | 92 | 121 | 3 | 172 | ||||||||||||||||||||||||||||||||
Purchases of equipment held for rental | (26,689 | ) | (10,246 | ) | (4,491 | ) | (9,743 | ) | (2,209 | ) | (16,342 | ) | (1,991 | ) | (3,014 | ) | (7,713 | ) | (3,624 | ) | (26,429 | ) | ||||||||||||||||||||||
Proceeds from sale of equipment held for rental | 33,269 | 20,563 | 8,008 | 3,557 | 1,141 | 19,063 | 2,882 | 3,577 | 10,099 | 2,505 | 28,924 | |||||||||||||||||||||||||||||||||
Cash portion of acquisitions | (109,557 | ) | (14,186 | ) | — | — | (95,371 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Other | 333 | (27 | ) | 507 | (101 | ) | (46 | ) | (689 | ) | (25 | ) | 529 | (1,136 | ) | (57 | ) | 405 | ||||||||||||||||||||||||||
Cash flow from investing activities | (114,941 | ) | (7,545 | ) | 1,716 | (8,905 | ) | (100,207 | ) | (8,558 | ) | (1,945 | ) | (1,875 | ) | (1,915 | ) | (2,823 | ) | (9,882 | ) | |||||||||||||||||||||||
FINANCING | ||||||||||||||||||||||||||||||||||||||||||||
Net issuance (repayment) of short-term debt | 27 | (13,115 | ) | 13,084 | (536 | ) | 594 | (13,497 | ) | 568 | (23,114 | ) | (1,975 | ) | 11,024 | (7,771 | ) | |||||||||||||||||||||||||||
Issuance of long-term debt | 351,999 | 181,999 | 71,000 | 77,000 | 22,000 | 404,283 | 126,995 | 57,288 | 127,000 | 93,000 | 617,000 | |||||||||||||||||||||||||||||||||
Repayment of long-term debt | (362,506 | ) | (196,202 | ) | (67,099 | ) | (77,119 | ) | (22,086 | ) | (279,647 | ) | (32,336 | ) | (88,050 | ) | (116,059 | ) | (43,202 | ) | (717,572 | ) | ||||||||||||||||||||||
Issuance of limited recourse debt | 13,979 | — | — | 3,108 | 10,871 | 117,383 | 18,940 | 68,975 | 29,468 | — | 90,214 | |||||||||||||||||||||||||||||||||
Repayment of limited recourse debt | (253 | ) | — | — | — | (253 | ) | (118 | ) | — | (118 | ) | — | — | — | |||||||||||||||||||||||||||||
Payment of dividends | (871 | ) | (219 | ) | (218 | ) | (218 | ) | (216 | ) | (859 | ) | (215 | ) | (215 | ) | (215 | ) | (214 | ) | (1,058 | ) | ||||||||||||||||||||||
Exercise of stock options and issuance of restricted awards | 5,472 | 555 | 2,118 | 2,314 | 485 | 927 | 189 | 260 | 203 | 275 | 3,732 | |||||||||||||||||||||||||||||||||
Cash flow from financing activities | 7,847 | (26,982 | ) | 18,885 | 4,549 | 11,395 | 228,472 | 114,141 | 15,026 | 38,422 | 60,883 | (15,455 | ) | |||||||||||||||||||||||||||||||
CURRENCY ADJUSTMENTS | ||||||||||||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash | 258 | (562 | ) | 362 | (183 | ) | 641 | 1,852 | (753 | ) | 1,170 | 1,988 | (553 | ) | (807 | ) | ||||||||||||||||||||||||||||
CASH | ||||||||||||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents | (95,153 | ) | 24,711 | (5,180 | ) | 6,837 | (121,521 | ) | 126,604 | 116,280 | 6,964 | (616 | ) | 3,976 | (3,049 | ) | ||||||||||||||||||||||||||||
Beginning balance | 132,809 | 12,945 | 18,125 | 11,288 | 132,809 | 6,205 | 16,529 | 9,565 | 10,181 | 6,205 | 9,254 | |||||||||||||||||||||||||||||||||
Ending balance | $ | 37,656 | $ | 37,656 | $ | 12,945 | $ | 18,125 | $ | 11,288 | $ | 132,809 | $ | 132,809 | $ | 16,529 | $ | 9,565 | $ | 10,181 | $ | 6,205 | ||||||||||||||||||||||
(1) | Net of change in accounts receivable securitization 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)
Fiscal Year | Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | ||||||||||||||||||||||||||||||||||||||||
Ended | July 31, | April 30, | January 31, | October 31, | Ended | July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||||||||||||||||||||
July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | 2003 | 2003 | 2003 | 2002 | July 31, 2002 | ||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||||||||||||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||||||||||||||||||||||
Machinery | $ | 973,610 | $ | 351,123 | $ | 261,263 | $ | 192,266 | $ | 168,958 | $ | 594,484 | $ | 192,758 | $ | 167,630 | $ | 109,550 | $ | 124,546 | $ | 621,283 | ||||||||||||||||||||||
Equipment Services | 204,454 | 69,559 | 53,258 | 40,822 | 40,815 | 136,737 | 35,855 | 32,835 | 36,676 | 31,371 | 133,058 | |||||||||||||||||||||||||||||||||
Access Financial Solutions | 15,898 | 4,478 | 4,166 | 3,442 | 3,812 | 19,907 | 4,945 | 5,305 | 5,087 | 4,570 | 15,729 | |||||||||||||||||||||||||||||||||
$ | 1,193,962 | $ | 425,160 | $ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | $ | 233,558 | $ | 205,770 | $ | 151,313 | $ | 160,487 | $ | 770,070 | |||||||||||||||||||||||
SEGMENT PROFIT (LOSS): | ||||||||||||||||||||||||||||||||||||||||||||
Machinery | $ | 70,844 | $ | 27,520 | $ | 25,190 | $ | 11,541 | $ | 6,593 | $ | 25,513 | $ | 13,701 | $ | 6,665 | $ | 168 | $ | 4,979 | $ | 29,039 | ||||||||||||||||||||||
Equipment services | 59,760 | 20,725 | 15,158 | 12,809 | 11,068 | 27,119 | 8,235 | 6,998 | 6,632 | 5,254 | 24,686 | |||||||||||||||||||||||||||||||||
Access Financial Solutions | 1,695 | 990 | 694 | (273 | ) | 284 | 3,990 | 295 | 716 | 1,881 | 1,098 | 5,288 | ||||||||||||||||||||||||||||||||
General corporate expenses | (67,308 | ) | (19,898 | ) | (20,229 | ) | (16,088 | ) | (11,093 | ) | (32,001 | ) | (10,356 | ) | (9,434 | ) | (6,475 | ) | (5,736 | ) | (33,347 | ) | ||||||||||||||||||||||
Segment profit | 64,991 | 29,337 | 20,813 | 7,989 | 6,852 | 24,621 | 11,875 | 4,945 | 2,206 | 5,595 | 25,666 | |||||||||||||||||||||||||||||||||
Add: AFS’ interest expense | 10,915 | 2,542 | 2,785 | 2,674 | 2,914 | 11,700 | 3,503 | 3,619 | 2,443 | 2,135 | 5,051 | |||||||||||||||||||||||||||||||||
Operating Income | $ | 75,906 | $ | 31,879 | $ | 23,598 | $ | 10,663 | $ | 9,766 | $ | 36,321 | $ | 15,378 | $ | 8,564 | $ | 4,649 | $ | 7,730 | $ | 30,717 | ||||||||||||||||||||||
PRODUCT GROUP REVENUES | ||||||||||||||||||||||||||||||||||||||||||||
Aerial work platforms | $ | 562,056 | $ | 217,425 | $ | 146,017 | $ | 109,354 | $ | 89,260 | $ | 428,564 | $ | 141,544 | $ | 116,092 | $ | 79,615 | $ | 91,313 | $ | 475,241 | ||||||||||||||||||||||
Telehandlers | 358,865 | 117,510 | 99,439 | 69,908 | 72,008 | 117,475 | 35,613 | 34,843 | 19,417 | 27,602 | 87,443 | |||||||||||||||||||||||||||||||||
Excavators | 52,689 | 16,188 | 15,807 | 13,004 | 7,690 | 48,445 | 15,601 | 16,695 | 10,518 | 5,631 | 58,599 | |||||||||||||||||||||||||||||||||
After-sales service and support, including parts sales, and used and reconditioned equipment sales | 196,576 | 67,482 | 51,387 | 38,273 | 39,434 | 130,335 | 34,430 | 31,652 | 34,411 | 29,842 | 124,587 | |||||||||||||||||||||||||||||||||
Financial products | 15,203 | 4,172 | 3,913 | 3,442 | 3,676 | 19,184 | 4,806 | 5,152 | 4,836 | 4,390 | 14,227 | |||||||||||||||||||||||||||||||||
Rentals | 8,573 | 2,383 | 2,124 | 2,549 | 1,517 | 7,125 | 1,564 | 1,336 | 2,516 | 1,709 | 9,973 | |||||||||||||||||||||||||||||||||
$ | 1,193,962 | $ | 425,160 | $ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | $ | 233,558 | $ | 205,770 | $ | 151,313 | $ | 160,487 | $ | 770,070 | |||||||||||||||||||||||
GEOGRAPHIC REVENUES | ||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 923,696 | $ | 327,498 | $ | 246,985 | $ | 177,542 | $ | 171,671 | $ | 546,494 | $ | 165,372 | $ | 155,852 | $ | 107,920 | $ | 117,350 | $ | 556,252 | ||||||||||||||||||||||
Europe | 178,392 | 66,076 | 48,079 | 40,286 | 23,951 | 145,038 | 47,144 | 33,830 | 32,816 | 31,248 | 167,940 | |||||||||||||||||||||||||||||||||
Other international | 91,874 | 31,586 | 23,623 | 18,702 | 17,963 | 59,596 | 21,042 | 16,088 | 10,577 | 11,889 | 45,878 | |||||||||||||||||||||||||||||||||
$ | 1,193,962 | $ | 425,160 | $ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | $ | 233,558 | $ | 205,770 | $ | 151,313 | $ | 160,487 | $ | 770,070 | |||||||||||||||||||||||
JLG Industries, Inc. — Page 9
JLG INDUSTRIES, INC.
EBITDA
QUARTERLY PERIODS
(in thousands)
July 31, | April 30, | January 31, | October 31, | July 31, | April 30, | January 31, | October 31, | |||||||||||||||||||||||||
2004 | 2004 | 2004 | 2003 | 2003 | 2003 | 2003 | 2002 | |||||||||||||||||||||||||
Income before cumulative effect of change in accounting principle | $ | 15,271 | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 5,672 | $ | 2,165 | $ | 4,226 | $ | 329 | ||||||||||||||||
Interest expense | 9,274 | 9,400 | 9,548 | 9,876 | 9,645 | 6,764 | 6,072 | 5,504 | ||||||||||||||||||||||||
Income tax provision | 8,748 | 4,890 | 1,297 | 297 | (527 | ) | 1,018 | 1,989 | 155 | |||||||||||||||||||||||
Depreciation and amortization | 5,070 | 7,359 | 6,766 | 6,486 | 4,591 | 4,931 | 5,147 | 5,268 | ||||||||||||||||||||||||
EBITDA | $ | 38,363 | $ | 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)
July 31, | April 30, | January 31, | October 31, | July 31, | April 30, | January 31, | October 31, | July 31, | ||||||||||||||||||||||||||||
2004 | 2004 | 2004 | 2003 | 2003 | 2003 | 2003 | 2002 | 2002 | ||||||||||||||||||||||||||||
Income before cumulative effect of change in accounting principle | $ | 26,649 | $ | 17,050 | $ | 10,528 | $ | 12,596 | $ | 12,392 | $ | 15,062 | $ | 13,733 | $ | 10,841 | $ | 12,878 | ||||||||||||||||||
Interest expense | 38,098 | 38,469 | 35,833 | 32,357 | 27,985 | 22,885 | 19,466 | 17,421 | 16,255 | |||||||||||||||||||||||||||
Income tax provision | 15,232 | 5,957 | 2,085 | 2,777 | 2,635 | 7,270 | 6,664 | 5,333 | 6,343 | |||||||||||||||||||||||||||
Depreciation and amortization | 25,681 | 25,202 | 22,774 | 21,155 | 19,937 | 20,492 | 20,255 | 21,131 | 20,959 | |||||||||||||||||||||||||||
EBITDA | $ | 105,660 | $ | 86,678 | $ | 71,220 | $ | 68,885 | $ | 62,949 | $ | 65,709 | $ | 60,118 | $ | 54,726 | $ | 56,435 | ||||||||||||||||||
Revenues | $ | 1,193,962 | $ | 1,002,360 | $ | 889,443 | $ | 804,226 | $ | 751,128 | $ | 766,394 | $ | 769,356 | $ | 774,395 | $ | 770,070 | ||||||||||||||||||
EBITDA Margin | 8.8 | % | 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)
July 31, | April 30, | January 31, | October 31, | July 31, | April 30, | January 31, | October 31, | July 31, | ||||||||||||||||||||||||||||
2004 | 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 | 125,000 | — | — | — | — | |||||||||||||||||||||||||||
$175 million senior subordinated notes | 175,000 | 175,000 | 175,000 | 175,000 | 175,000 | 175,000 | 175,000 | 175,000 | 175,000 | |||||||||||||||||||||||||||
Miscellaneous debt | �� | 5,236 | 5,321 | 15,465 | 15,554 | 1,983 | 1,468 | 1,573 | 1,665 | 1,909 | ||||||||||||||||||||||||||
Fair value of interest rate swaps | (8,814 | ) | (8,296 | ) | (6,795 | ) | (8,065 | ) | (12,347 | ) | — | 5,012 | 2,273 | 914 | ||||||||||||||||||||||
Gain on terminated interest rate swap | 5,318 | 5,487 | 5,656 | 5,825 | 5,994 | 6,162 | — | — | — | |||||||||||||||||||||||||||
Bank debt and notes | 301,740 | 329,641 | 314,326 | 313,881 | 295,630 | 212,918 | 265,643 | 253,938 | 191,758 | |||||||||||||||||||||||||||
Limited recourse debt from finance receivables monetizations * | 121,794 | 135,453 | 150,283 | 153,541 | 164,940 | 164,653 | 106,662 | 83,188 | 87,571 | |||||||||||||||||||||||||||
Total balance sheet debt | 423,534 | 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 | 1,070 | 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 | 4,399 | 4,966 | 5,181 | 5,564 | 5,941 | 6,590 | 6,977 | 7,364 | 7,749 | |||||||||||||||||||||||||||
Total off-balance sheet financing | 5,469 | 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 | 429,003 | 471,584 | 471,816 | 475,327 | 468,852 | 387,543 | 383,140 | 348,996 | 292,660 | |||||||||||||||||||||||||||
Less: cash | 37,656 | 12,945 | 18,125 | 11,288 | 132,809 | 16,529 | 9,565 | 10,181 | 6,205 | |||||||||||||||||||||||||||
Less: limited recourse debt from finance receivables monetizations | 121,794 | 135,453 | 150,283 | 153,541 | 164,940 | 164,653 | 106,662 | 83,188 | 87,571 | |||||||||||||||||||||||||||
Net debt | $ | 269,553 | $ | 323,186 | $ | 303,408 | $ | 310,498 | $ | 171,103 | $ | 206,361 | $ | 266,913 | $ | 255,627 | $ | 198,884 | ||||||||||||||||||
* Maximum loss exposure from finance receivables monetizations | $ | 25,161 | $ | 23,757 | $ | 24,460 | $ | 23,380 | $ | 21,708 | $ | 18,928 | $ | 8,519 | $ | 6,275 | $ | 5,998 | ||||||||||||||||||
Shareholders’ Equity | $ | 281,270 | $ | 264,018 | $ | 252,252 | $ | 248,911 | $ | 247,714 | $ | 245,034 | $ | 241,760 | $ | 235,897 | $ | 236,042 | ||||||||||||||||||
Net Debt-to-Net Debt plus Shareholders’ Equity | 49 | % | 55 | % | 55 | % | 56 | % | 41 | % | 46 | % | 52 | % | 52 | % | 46 | % | ||||||||||||||||||
Total Balance Sheet Debt-to-Total Balance Sheet Debt plus Shareholders’ Equity | 60 | % | 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)
Fiscal Year | Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | ||||||||||||||||||||||||||||||||||||||||
Ended | July 31, | April 30, | January 31, | October 31, | Ended | July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||||||||||||||||||||
July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | 2003 | 2003 | 2003 | 2002 | July 31, 2002 | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 26,649 | $ | 15,271 | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 12,392 | $ | 5,672 | $ | 2,165 | $ | 4,226 | $ | 329 | ($101,592 | ) | ||||||||||||||||||||||
Adjustments to reconcile net income to cash flow from operating activities: | ||||||||||||||||||||||||||||||||||||||||||||
Non-cash items | 27,497 | (8,898 | ) | 11,427 | 13,550 | 11,418 | 20,444 | (1,915 | ) | 7,421 | 7,765 | 7,173 | 134,769 | |||||||||||||||||||||||||||||||
Accounts receivable | (66,296 | ) | 18,059 | (57,552 | ) | (27,823 | ) | 1,020 | (35,324 | ) | (8,990 | ) | (41,663 | ) | (11,945 | ) | 27,274 | (40,110 | ) | |||||||||||||||||||||||||
Inventories | 9,188 | 13,060 | (14,053 | ) | 3,296 | 6,885 | 43,137 | 32,164 | 14,544 | 8,695 | (12,266 | ) | 24,462 | |||||||||||||||||||||||||||||||
Other current assets | 8,780 | (158 | ) | (14,211 | ) | 26,225 | (3,076 | ) | (15,960 | ) | (18,109 | ) | 191 | 2,721 | (763 | ) | 3,110 | |||||||||||||||||||||||||||
Accounts payable | 33,207 | 11,982 | 31,428 | 24,751 | (34,954 | ) | (46,026 | ) | 621 | 12,832 | (26,469 | ) | (33,010 | ) | 52,685 | |||||||||||||||||||||||||||||
Accrued expenses | 4,726 | 21,424 | 10,696 | (30,514 | ) | 3,120 | 3,254 | 16,057 | 7,243 | (11,117 | ) | (8,929 | ) | 12,084 | ||||||||||||||||||||||||||||||
Finance receivables | (6,112 | ) | (6,756 | ) | (2,181 | ) | 1,770 | 1,055 | 40,487 | (2,644 | ) | 50,239 | 20,244 | (27,352 | ) | 57,154 | ||||||||||||||||||||||||||||
Other cash from operations | (11,090 | ) | (4,408 | ) | (1,921 | ) | (862 | ) | (3,899 | ) | (3,295 | ) | (3,392 | ) | 3,970 | (281 | ) | (3,592 | ) | (28,136 | ) | |||||||||||||||||||||||
Purchases of property, plant and equipment | (12,387 | ) | (3,522 | ) | (2,435 | ) | (2,619 | ) | (3,811 | ) | (10,806 | ) | (2,811 | ) | (3,059 | ) | (3,286 | ) | (1,650 | ) | (12,954 | ) | ||||||||||||||||||||||
Proceeds from sale of property, plant and equipment | 90 | (127 | ) | 127 | 1 | 89 | 216 | — | 92 | 121 | 3 | 172 | ||||||||||||||||||||||||||||||||
Purchases of equipment held for rental | (26,689 | ) | (10,246 | ) | (4,491 | ) | (9,743 | ) | (2,209 | ) | (16,342 | ) | (1,991 | ) | (3,014 | ) | (7,713 | ) | (3,624 | ) | (26,429 | ) | ||||||||||||||||||||||
Proceeds from sale of equipment held for rental | 33,269 | 20,563 | 8,008 | 3,557 | 1,141 | 19,063 | 2,882 | 3,577 | 10,099 | 2,505 | 28,924 | |||||||||||||||||||||||||||||||||
Cash portion of acquisitions | (109,557 | ) | (14,186 | ) | — | — | (95,371 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Other cash from investments | 333 | (27 | ) | 507 | (101 | ) | (46 | ) | (689 | ) | (25 | ) | 529 | (1,136 | ) | (57 | ) | 405 | ||||||||||||||||||||||||||
Payment of dividends | (871 | ) | (219 | ) | (218 | ) | (218 | ) | (216 | ) | (859 | ) | (215 | ) | (215 | ) | (215 | ) | (214 | ) | (1,058 | ) | ||||||||||||||||||||||
Exercise of stock options and issuance of restricted awards | 5,472 | 555 | 2,118 | 2,314 | 485 | 927 | 189 | 260 | 203 | 275 | 3,732 | |||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash | 258 | (562 | ) | 362 | (183 | ) | 641 | 1,852 | (753 | ) | 1,170 | 1,988 | (553 | ) | (807 | ) | ||||||||||||||||||||||||||||
Seller financing | (10,000 | ) | — | — | — | (10,000 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capital lease assumed in OmniQuip acquisition | (3,630 | ) | — | — | — | (3,630 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Debt assumed in Delta acquisition | (103 | ) | (103 | ) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other(1) | (1,184 | ) | 1,931 | 3,924 | 1,531 | (8,570 | ) | 15,310 | 18,518 | 4,271 | (5,186 | ) | (2,293 | ) | 63,342 | |||||||||||||||||||||||||||||
Free Cash Flow | ($98,450 | ) | $ | 53,633 | ($19,778 | ) | $ | 7,090 | ($139,395 | ) | $ | 27,781 | $ | 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 | ||||||||||||||||||||||
Fiscal Year Ended July 31, | Fiscal Year Ended July 31, | Fiscal Year Ended July 31, | ||||||||||||||||||||||
2004 | 2003 | 2004 | 2003 | 2004 | 2003 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Net sales | $ | 1,170,186 | $ | 724,819 | $ | 1,170,186 | $ | 724,819 | $ | — | $ | — | ||||||||||||
Financial products | 15,203 | 19,184 | — | — | 15,203 | 19,184 | ||||||||||||||||||
Rentals | 8,573 | 7,125 | 7,878 | 6,402 | 695 | 723 | ||||||||||||||||||
1,193,962 | 751,128 | 1,178,064 | 731,221 | 15,898 | 19,907 | |||||||||||||||||||
Cost of sales | 968,562 | 616,686 | 967,903 | 616,055 | 659 | 631 | ||||||||||||||||||
Gross profit | 225,400 | 134,442 | 210,161 | 115,166 | 15,239 | 19,276 | ||||||||||||||||||
Selling and administrative expenses | 128,465 | 79,225 | 125,836 | 75,639 | 2,629 | 3,586 | ||||||||||||||||||
Product development expenses | 21,002 | 16,142 | 21,002 | 16,142 | — | — | ||||||||||||||||||
Restructuring charges | 27 | 2,754 | 27 | 2,754 | — | — | ||||||||||||||||||
Income from operations | 75,906 | 36,321 | 63,296 | 20,631 | 12,610 | 15,690 | ||||||||||||||||||
Other income (deductions): | ||||||||||||||||||||||||
Interest expense | (38,098 | ) | (27,985 | ) | (27,183 | ) | (16,285 | ) | (10,915 | ) | (11,700 | ) | ||||||||||||
Miscellaneous, net | 4,073 | 6,691 | 4,073 | 6,691 | — | — | ||||||||||||||||||
Income before taxes | 41,881 | 15,027 | 40,186 | 11,037 | 1,695 | 3,990 | ||||||||||||||||||
Income tax provision | 15,232 | 2,635 | 14,615 | 1,935 | 617 | 700 | ||||||||||||||||||
Equity in income of Access Financial Solutions | — | — | 1,078 | 3,290 | — | — | ||||||||||||||||||
Net income | $ | 26,649 | $ | 12,392 | $ | 26,649 | $ | 12,392 | $ | 1,078 | $ | 3,290 | ||||||||||||
Earnings per common share | $ | .62 | $ | .29 | ||||||||||||||||||||
Earnings per common share — assuming dilution | $ | .61 | $ | .29 | ||||||||||||||||||||
Cash dividends per share | $ | .020 | $ | .020 | ||||||||||||||||||||
Weighted average shares outstanding | 42,860 | 42,601 | ||||||||||||||||||||||
Weighted average shares outstanding — assuming dilution | 44,032 | 42,866 | ||||||||||||||||||||||
JLG Industries, Inc. — Page 14
JLG INDUSTRIES, INC.
BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
EQUIPMENT OPERATIONS | ||||||||||||||||||||||||
CONSOLIDATED | JLG Industries, Inc. with | FINANCIAL SERVICES | ||||||||||||||||||||||
JLG Industries, Inc. and | Access Financial Solutions | |||||||||||||||||||||||
Consolidated Subsidiaries | on the Equity Basis | Access Financial Solutions | ||||||||||||||||||||||
July 31, | July 31, | July 31, | ||||||||||||||||||||||
2004 | 2003 | 2004 | 2003 | 2004 | 2003 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 37,656 | $ | 132,809 | $ | 37,656 | $ | 132,809 | $ | — | $ | — | ||||||||||||
Accounts receivable — net | 362,819 | 257,519 | 332,154 | 217,521 | 30,665 | 39,998 | ||||||||||||||||||
Finance receivables — net | 5,920 | 3,168 | — | — | 5,920 | 3,168 | ||||||||||||||||||
Pledged receivables — net | 31,858 | 41,334 | — | — | 31,858 | 41,334 | ||||||||||||||||||
Inventories | 154,405 | 122,675 | 154,405 | 122,675 | — | — | ||||||||||||||||||
Other current assets | 41,058 | 46,474 | 41,058 | 46,474 | — | — | ||||||||||||||||||
Total current assets | 633,716 | 603,979 | 565,273 | 519,479 | 68,443 | 84,500 | ||||||||||||||||||
Property, plant and equipment — net | 91,504 | 79,699 | 91,504 | 79,699 | — | — | ||||||||||||||||||
Equipment held for rental — net | 21,190 | 19,651 | 19,404 | 17,455 | 1,786 | 2,196 | ||||||||||||||||||
Finance receivables, less current portion | 33,747 | 31,156 | — | — | 33,747 | 31,156 | ||||||||||||||||||
Pledged receivables, less current portion | 86,559 | 119,073 | — | — | 86,559 | 119,073 | ||||||||||||||||||
Goodwill | 62,885 | 29,509 | 62,885 | 29,509 | — | — | ||||||||||||||||||
Intangible assets — net | 35,240 | — | 35,240 | — | — | — | ||||||||||||||||||
Investment in Access Financial Solutions | — | — | 37,771 | 36,693 | — | — | ||||||||||||||||||
Receivable from Access Financial Solutions | — | — | 31,398 | 35,662 | — | — | ||||||||||||||||||
Other assets | 62,603 | 53,135 | 61,955 | 52,428 | 648 | 707 | ||||||||||||||||||
$ | 1,027,444 | $ | 936,202 | $ | 905,430 | $ | 770,925 | $ | 191,183 | $ | 237,632 | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt and current portion of long-term debt | $ | 1,729 | $ | 1,472 | $ | 1,729 | $ | 1,472 | $ | — | $ | — | ||||||||||||
Current portion of limited recourse debt from finance receivables monetizations | 32,585 | 45,279 | — | — | 32,585 | 45,279 | ||||||||||||||||||
Accounts payable | 139,990 | 83,408 | 139,990 | 83,408 | — | — | ||||||||||||||||||
Accrued expenses | 118,860 | 91,057 | 118,652 | 90,720 | 208 | 337 | ||||||||||||||||||
Total current liabilities | 293,164 | 221,216 | 260,371 | 175,600 | 32,793 | 45,616 | ||||||||||||||||||
Long-term debt, less current portion | 300,011 | 294,158 | 300,011 | 294,158 | — | — | ||||||||||||||||||
Limited recourse debt from finance receivables monetizations, less current portion | 89,209 | 119,661 | — | — | 89,209 | 119,661 | ||||||||||||||||||
Payable to JLG Industries, Inc. | — | — | — | — | 31,398 | 35,662 | ||||||||||||||||||
Accrued post-retirement benefits | 29,666 | 26,179 | 29,666 | 26,179 | — | — | ||||||||||||||||||
Other long-term liabilities | 20,542 | 15,160 | 20,542 | 15,160 | — | — | ||||||||||||||||||
Provisions for contingencies | 13,582 | 12,114 | 13,570 | 12,114 | 12 | — | ||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Capital stock: | ||||||||||||||||||||||||
Authorized shares: 100,000 at $.20 par value | ||||||||||||||||||||||||
Issued and outstanding shares: 43,903 shares; fiscal 2003 — 43,367 shares | 8,781 | 8,673 | 8,781 | 8,673 | 30,000 | 30,000 | ||||||||||||||||||
Additional paid-in capital | 29,571 | 23,597 | 29,571 | 23,597 | — | — | ||||||||||||||||||
Retained earnings | 254,268 | 228,490 | 254,268 | 228,490 | 7,771 | 6,693 | ||||||||||||||||||
Unearned compensation | (5,333 | ) | (5,428 | ) | (5,333 | ) | (5,428 | ) | — | — | ||||||||||||||
Accumulated other comprehensive loss | (6,017 | ) | (7,618 | ) | (6,017 | ) | (7,618 | ) | — | — | ||||||||||||||
Total shareholders’ equity | 281,270 | 247,714 | 281,270 | 247,714 | 37,771 | 36,693 | ||||||||||||||||||
$ | 1,027,444 | $ | 936,202 | $ | 905,430 | $ | 770,925 | $ | 191,183 | $ | 237,632 | |||||||||||||
JLG Industries, Inc. — Page 15
JLG INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
EQUIPMENT OPERATIONS | ||||||||||||||||||||||||
CONSOLIDATED | JLG Industries, Inc. with | FINANCIAL SERVICES | ||||||||||||||||||||||
JLG Industries, Inc. and | Access Financial Solutions | |||||||||||||||||||||||
Consolidated Subsidiaries | on the Equity Basis | Access Financial Solutions | ||||||||||||||||||||||
Fiscal Year Ended July 31, | Fiscal Year Ended July 31, | Fiscal Year Ended July 31, | ||||||||||||||||||||||
2004 | 2003 | 2004 | 2003 | 2004 | 2003 | |||||||||||||||||||
Operations | ||||||||||||||||||||||||
Net income | $ | 26,649 | $ | 12,392 | $ | 26,649 | $ | 12,392 | $ | 1,078 | $ | 3,290 | ||||||||||||
Adjustments to reconcile net income to cash flow from operating activities: | ||||||||||||||||||||||||
(Gain) loss on sale of property, plant and equipment | 319 | 266 | 319 | 266 | — | — | ||||||||||||||||||
(Gain) loss on sale of equipment held for rental | (12,451 | ) | (6,794 | ) | (12,454 | ) | (7,154 | ) | 3 | 360 | ||||||||||||||
Non-cash charges and credits: | ||||||||||||||||||||||||
Depreciation and amortization | 25,681 | 19,937 | 25,022 | 19,246 | 659 | 691 | ||||||||||||||||||
Other | 13,948 | 7,035 | 13,367 | 5,896 | 581 | 1,139 | ||||||||||||||||||
Changes in selected working capital items: | ||||||||||||||||||||||||
Accounts receivable | (66,296 | ) | (35,324 | ) | (75,950 | ) | (18,004 | ) | 9,654 | (17,320 | ) | |||||||||||||
Inventories | 9,188 | 43,137 | 9,188 | 43,137 | — | — | ||||||||||||||||||
Accounts payable | 33,207 | (46,026 | ) | 33,207 | (46,026 | ) | — | — | ||||||||||||||||
Other operating assets and liabilities | 13,506 | (12,706 | ) | 13,635 | (10,970 | ) | (129 | ) | (1,736 | ) | ||||||||||||||
Changes in finance receivables | (6,112 | ) | 40,487 | — | — | (6,112 | ) | 40,487 | ||||||||||||||||
Changes in pledged finance receivables | (14,866 | ) | (114,271 | ) | — | — | (14,866 | ) | (114,271 | ) | ||||||||||||||
Changes in other assets and liabilities | (11,090 | ) | (3,295 | ) | (11,161 | ) | (2,413 | ) | 71 | (882 | ) | |||||||||||||
Cash flow from operating activities | 11,683 | (95,162 | ) | 21,822 | (3,630 | ) | (9,061 | ) | (88,242 | ) | ||||||||||||||
Investments | ||||||||||||||||||||||||
Purchases of property, plant and equipment | (12,387 | ) | (10,806 | ) | (12,387 | ) | (10,806 | ) | — | — | ||||||||||||||
Proceeds from the sale of property, plant and equipment | 90 | 216 | 90 | 216 | — | — | ||||||||||||||||||
Purchases of equipment held for rental | (26,689 | ) | (16,342 | ) | (26,437 | ) | (15,763 | ) | (252 | ) | (579 | ) | ||||||||||||
Proceeds from the sale of equipment held for rental | 33,269 | 19,063 | 33,269 | 19,063 | — | — | ||||||||||||||||||
Cash portion of acquisitions | (109,557 | ) | — | (109,557 | ) | — | — | — | ||||||||||||||||
Investment in income of Access Financial Solutions | — | — | (1,078 | ) | (3,290 | ) | — | — | ||||||||||||||||
Other | 333 | (689 | ) | 333 | (689 | ) | — | — | ||||||||||||||||
Cash flow from investing activities | (114,941 | ) | (8,558 | ) | (115,767 | ) | (11,269 | ) | (252 | ) | (579 | ) | ||||||||||||
Financing | ||||||||||||||||||||||||
Net increase (decrease) in short-term debt | 27 | (13,497 | ) | 27 | (13,497 | ) | — | — | ||||||||||||||||
Issuance of long-term debt | 351,999 | 404,283 | 351,999 | 404,283 | — | — | ||||||||||||||||||
Repayment of long-term debt | (362,506 | ) | (279,647 | ) | (362,506 | ) | (279,647 | ) | — | — | ||||||||||||||
Issuance of limited recourse debt | 13,979 | 117,383 | — | — | 13,979 | 117,383 | ||||||||||||||||||
Repayment of limited recourse debt | (253 | ) | (118 | ) | — | — | (253 | ) | (118 | ) | ||||||||||||||
Change in receivable from Access Financial Solutions | — | — | 4,264 | 28,444 | — | — | ||||||||||||||||||
Change in payable to JLG Industries, Inc. | — | — | — | — | (4,264 | ) | (28,444 | ) | ||||||||||||||||
Payment of dividends | (871 | ) | (859 | ) | (871 | ) | (859 | ) | — | — | ||||||||||||||
Exercise of stock options and issuance of restricted awards | 5,472 | 927 | 5,472 | 927 | — | — | ||||||||||||||||||
Cash flow from financing activities | 7,847 | 228,472 | (1,615 | ) | 139,651 | 9,462 | 88,821 | |||||||||||||||||
Currency Adjustments | ||||||||||||||||||||||||
Effect of exchange rate changes on cash | 258 | 1,852 | 407 | 1,852 | (149 | ) | — | |||||||||||||||||
Cash | ||||||||||||||||||||||||
Net change in cash and cash equivalents | (95,153 | ) | 126,604 | (95,153 | ) | 126,604 | — | — | ||||||||||||||||
Beginning balance | 132,809 | 6,205 | 132,809 | 6,205 | — | — | ||||||||||||||||||
Ending balance | $ | 37,656 | $ | 132,809 | $ | 37,656 | $ | 132,809 | $ | — | $ | — | ||||||||||||