Exhibit 99.1
![]() | Press Release FOR IMMEDIATE RELEASE |
JLG Industries, Inc. | ||
1 JLG Drive | ||
McConnellsburg, PA 17233-9533 | Contact: Juna Rowland | |
Telephone (717) 485-5161 | Vice President – Corporate & Investor Relations | |
Fax (717) 485-6417 | (240) 313-1816, ir@jlg.com | |
www.jlg.com |
CONTINUED STRONG DEMAND FOR ACCESS PRODUCTS
DRIVES JLG FIRST QUARTER REVENUES
Full Year Forecast Projects Impressive Year-on-Year Improvement
MCCONNELLSBURG, PA, NOVEMBER 18, 2004– JLG Industries, Inc. (NYSE: JLG) today announced consolidated revenues of $306.7 million for its fiscal first quarter ended October 31, 2004, an increase of 44 percent from the same prior year period. The Company reported a net loss of $8.7 million, or $0.20 per diluted share, compared with net income of $.5 million, or $.01 per diluted share, for the prior year period. Results for the first quarter of fiscal 2005 included estimated net unrecovered steel costs of $26.8 million ($17.4 million, after-tax), and integration expense of $1.9 million ($1.2 million, after-tax).
ANALYSIS
“As we mentioned in our last quarterly call, we had expected the first quarter to be our most challenging of the current fiscal year,” stated Jim Woodward, Executive Vice President and Chief Financial Officer. “This expectation was based on seasonally lower sales, the anticipated high price of steel and other raw materials, capitalized variances carried into the quarter, continued inefficiencies resulting from capacity constraints in the supply base, and a strong order backlog which was not subject to our announced September price increase. At that time, we forecasted net unrecovered steel costs in the quarter in excess of $20 million. As the price of steel increased even further than forecast, the actual impact was $27 million. We had previously forecast weighted average steel prices for the year to be up 75 percent over the prior year. We now forecast that the increase will be over 100 percent. Component availability from suppliers remained constrained and resulted in manufacturing inefficiencies of $6 million during the quarter.
“Despite the operating loss, there was also good news in the results. Sales represented a new record for a first quarter. Demand continued to be strong and the backlog at quarter end was $200 million, essentially the same as the previous quarter. We reduced trade working capital by $58 million as receivables declined and
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JLG Industries, Inc. – page 2
inventory turns improved. Free cash flow was $27 million and net debt-to-total capitalization was reduced from 49 to 47 percent sequentially. Cash on hand at the end of the quarter was $66 million.”
Additional information is provided in the financial schedules accompanying this release.
OUTLOOK
Commenting on the outlook, Bill Lasky, Chairman of the Board, President and Chief Executive Officer stated, “Our near term focus is on how we respond to increasing raw material costs, specifically steel, in the face of our customers’ expectations of prices and how we overcome supplier constraints. Although we achieved significant cost reductions and integration synergies last year, the price increases we implemented did not cover the higher cost of steel and associated variances. Therefore, we are compelled to pass through additional price increases to our customers to offset these rising costs. We expect to achieve an effective six percent price increase in January in the form of an increased steel surcharge, base price increases and reductions in customer discounts. Every shipment after December 31st will be subject to the new pricing, including orders currently in the backlog.
“Despite the volatility of steel pricing and component shortages, we maintain optimism for the year. Order patterns remain strong and our customers indicate a continued need for new equipment. Therefore, we are reaffirming our previous estimate of revenue growth of 10 to 25 percent for fiscal 2005. We are also targeting earnings per share in the range of $1.00 to $1.15 for fiscal 2005. This represents a significant improvement over fiscal 2004 and assumes stability in commodity prices and improved supplier deliveries as capacity investments are realized.
“Our second quarter will continue to be challenged by these issues but will be mitigated by a reduced amount of capitalized variances entering the quarter and the price increases effective in January. We expect the second half of our fiscal year, our seasonally strongest, to see the full benefits of the price increases, reduced supplier shortages and therefore improved manufacturing efficiencies and the favorable impact of our current cost reduction activities.”
DIVIDEND
The Board of Directors of JLG today declared its regular, quarterly cash dividend of $.005 per common share. The dividend is payable on January 5, 2005 to shareholders of record December 15, 2004.
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JLG Industries, Inc. – page 3
CONFERENCE CALL
Management’s complete analysis of the Company’s quarterly results will be provided during a conference call on Friday, November 19, 2004 at 9:00 a.m. Eastern Time. Within North America, access to the call is available by dialing (800) 599-9795, participant pass code 42116233. From international locations, call (617) 786-2905, using the same pass code. Please dial into the conference 10 minutes prior to the start. A replay of the call will be available on the website later the same day.
JLG Industries, Inc. is the world’s leading producer of access equipment (aerial work platforms 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 press 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-K for the year ended July 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, 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)
Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | |||||||||||||||||||||||||
October 31, | Ended | July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||||||||
2004 | July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | ||||||||||||||||||||||
REVENUES AND PROFITABILITY | ||||||||||||||||||||||||||||
Revenues | $ | 306,661 | $ | 1,193,962 | $ | 425,160 | $ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | ||||||||||||||
Gross profit margin | 8.4 | % | 18.9 | % | 18.8 | % | 20.0 | % | 18.4 | % | 17.9 | % | 17.9 | % | ||||||||||||||
EBITDA | 2,185 | 105,660 | 38,363 | 30,336 | 19,769 | 17,192 | 62,949 | |||||||||||||||||||||
Trailing twelve month EBITDA | 90,653 | 105,660 | 105,660 | 86,678 | 71,220 | 68,885 | 62,949 | |||||||||||||||||||||
Trailing twelve month EBITDA margin | 7.0 | % | 8.8 | % | 8.8 | % | 8.6 | % | 8.0 | % | 8.6 | % | 8.4 | % | ||||||||||||||
Operating (loss) income | (8,335 | ) | 75,906 | 31,879 | 23,598 | 10,663 | 9,766 | 36,321 | ||||||||||||||||||||
Operating (loss) profit margin | -2.7 | % | 6.4 | % | 7.5 | % | 7.4 | % | 4.5 | % | 4.6 | % | 4.8 | % | ||||||||||||||
Net (loss) income margin | -2.8 | % | 2.2 | % | 3.6 | % | 2.7 | % | 0.9 | % | 0.2 | % | 1.6 | % | ||||||||||||||
Reported EPS per diluted share | $ | (.20 | ) | $ | .61 | $ | .35 | $ | .20 | $ | .05 | $ | .01 | $ | .29 | |||||||||||||
IMPACT OF SELECTED ITEMS ON:(1) | ||||||||||||||||||||||||||||
income (expense) | ||||||||||||||||||||||||||||
PRE-TAX INCOME | ||||||||||||||||||||||||||||
Integration expenses - OmniQuip (in both Cost of sales (COS), Selling & administrative and product development (SA&PD)) | $ | (1,897 | ) | $ | (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 | ) | ||||||||||||||||
Currency effects (in Miscellaneous-net) | 2,281 | (2,309 | ) | (1,171 | ) | (1,938 | ) | 675 | 125 | 5,422 | ||||||||||||||||||
Bad debt charges (in SA&PD) | (1,132 | ) | (11,560 | ) | (3,819 | ) | (2,376 | ) | (4,273 | ) | (1,092 | ) | (7,024 | ) | ||||||||||||||
Inventory charges (in COS) | (1,592 | ) | (4,519 | ) | (1,374 | ) | (196 | ) | (1,622 | ) | (1,327 | ) | (4,463 | ) | ||||||||||||||
Early vesting incentives (in both COS, SA&PD) | (995 | ) | (1,771 | ) | — | (577 | ) | (1,194 | ) | — | — | |||||||||||||||||
Other Incentive pay (in both COS, SA&PD) | — | (16,923 | ) | (12,065 | ) | (4,858 | ) | — | — | (2,605 | ) | |||||||||||||||||
Restatement expenses (in SA&PD) | — | (1,264 | ) | (206 | ) | (1,058 | ) | — | — | — | ||||||||||||||||||
Estimated net unrecovered steel cost (in COS)(2) | (26,764 | ) | (4,695 | ) | (4,695 | ) | — | — | — | — | ||||||||||||||||||
NET INCOME | ||||||||||||||||||||||||||||
Integration expenses - OmniQuip (in both COS, SA&PD) | (1,233 | ) | (10,247 | ) | (3,264 | ) | (1,890 | ) | (2,589 | ) | (2,504 | ) | — | |||||||||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | — | (75 | ) | 2 | (1 | ) | (36 | ) | (40 | ) | (2,747 | ) | ||||||||||||||||
Currency effects (in Miscellaneous-net) | 1,483 | (1,519 | ) | (761 | ) | (1,260 | ) | 422 | 80 | 3,687 | ||||||||||||||||||
Bad debt charges (in SA&PD) | (736 | ) | (7,396 | ) | (2,482 | ) | (1,544 | ) | (2,669 | ) | (701 | ) | (4,776 | ) | ||||||||||||||
Inventory charges (in COS) | (1,035 | ) | (2,885 | ) | (893 | ) | (127 | ) | (1,013 | ) | (852 | ) | (3,035 | ) | ||||||||||||||
Benefit from change in effective income tax rate | — | — | — | — | — | — | 2,051 | |||||||||||||||||||||
Early vesting incentives (in both COS, SA&PD) | (647 | ) | (1,121 | ) | — | (375 | ) | (746 | ) | — | — | |||||||||||||||||
Other Incentive pay (in both COS, SA&PD) | — | (11,000 | ) | (7,842 | ) | (3,158 | ) | — | — | (1,771 | ) | |||||||||||||||||
Restatement expenses (in SA&PD) | — | (822 | ) | (134 | ) | (688 | ) | — | — | — | ||||||||||||||||||
Estimated net unrecovered steel cost (in COS)(2) | (17,397 | ) | (3,052 | ) | (3,052 | ) | — | — | — | — | ||||||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||||||||||||||
Integration expenses - OmniQuip (in both COS, SA&PD) | (0.03 | ) | (0.23 | ) | (0.07 | ) | (0.04 | ) | (0.06 | ) | (0.06 | ) | — | |||||||||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | — | — | — | — | — | — | (0.06 | ) | ||||||||||||||||||||
Currency effects (in Miscellaneous-net) | 0.03 | (0.04 | ) | (0.02 | ) | (0.03 | ) | 0.01 | — | 0.09 | ||||||||||||||||||
Bad debt charges (in SA&PD) | (0.02 | ) | (0.17 | ) | (0.06 | ) | (0.04 | ) | (0.06 | ) | (0.02 | ) | (0.11 | ) | ||||||||||||||
Inventory charges (in COS) | (0.02 | ) | (0.06 | ) | (0.02 | ) | — | (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 | ) | (0.03 | ) | — | (0.01 | ) | (0.02 | ) | — | — | |||||||||||||||||
Other Incentive pay (in both COS, SA&PD) | — | (0.25 | ) | (0.18 | ) | (0.07 | ) | — | — | (0.04 | ) | |||||||||||||||||
Restatement expenses (in SA&PD) | — | (0.02 | ) | — | (0.02 | ) | — | — | — | |||||||||||||||||||
Estimated net unrecovered steel cost (in COS)(2) | (0.40 | ) | (0.07 | ) | (0.07 | ) | — | — | — | — | ||||||||||||||||||
BALANCE SHEET & LIQUIDITY MEASURES | ||||||||||||||||||||||||||||
Cash & cash equivalents | $ | 66,498 | $ | 37,656 | $ | 37,656 | $ | 12,945 | $ | 18,125 | $ | 11,288 | $ | 132,809 | ||||||||||||||
Accounts receivable, net | 299,123 | 362,819 | 362,819 | 372,500 | 315,304 | 289,729 | 257,519 | |||||||||||||||||||||
Finance receivable, net | 48,138 | 39,667 | 39,667 | 33,270 | 31,134 | 33,057 | 34,324 | |||||||||||||||||||||
Pledged finance receivables, net | 81,470 | 118,417 | 118,417 | 131,878 | 148,104 | 153,762 | 160,407 | |||||||||||||||||||||
Inventories | 170,731 | 154,405 | 154,405 | 164,160 | 150,074 | 153,200 | 122,675 | |||||||||||||||||||||
Total balance sheet debt | 389,609 | 423,534 | 423,534 | 465,094 | 464,609 | 467,422 | 460,570 | |||||||||||||||||||||
Limited recourse debt from finance receivables monetizations | 85,733 | 121,794 | 121,794 | 135,453 | 150,283 | 153,541 | 164,940 | |||||||||||||||||||||
Net debt(3) | 242,381 | 269,553 | 269,553 | 323,186 | 303,408 | 310,498 | 171,103 | |||||||||||||||||||||
Net debt(3) to total capitalization | 47 | % | 49 | % | 49 | % | 55 | % | 55 | % | 56 | % | 41 | % | ||||||||||||||
Maximum loss exposure from finance receivables monetizations | 26,068 | 25,161 | 25,161 | 23,757 | 24,460 | 23,380 | 21,708 | |||||||||||||||||||||
Equity | 276,780 | 281,270 | 281,270 | 264,018 | 252,252 | 248,911 | 247,714 | |||||||||||||||||||||
Working capital | 328,671 | 340,552 | 340,552 | 353,696 | 336,107 | 321,950 | 382,763 | |||||||||||||||||||||
Depreciation and amortization | 7,088 | 25,681 | 5,070 | 7,359 | 6,766 | 6,486 | 19,937 | |||||||||||||||||||||
Capital expenditures, net of retirements | (2,653 | ) | 11,978 | 3,597 | 2,094 | 2,858 | 3,429 | 10,324 | ||||||||||||||||||||
Free cash flow(4) | 27,172 | (98,450 | ) | 53,633 | (19,778 | ) | 7,090 | (139,395 | ) | 27,781 | ||||||||||||||||||
FINANCIAL RATIOS | ||||||||||||||||||||||||||||
Days sales outstanding | 92.0 | 78.4 | 78.4 | 106.0 | 115.4 | 106.0 | 102.7 | |||||||||||||||||||||
Days payables outstanding | 54.6 | 57.0 | 57.0 | 65.1 | 58.6 | 54.0 | 70.8 | |||||||||||||||||||||
Inventory turnover (annualized) | 5.9 | 5.8 | 5.8 | 5.1 | 4.6 | 3.8 | 3.4 |
(1) | Net of 35%, 35%, 35%, 38%, 36% and 32% effective income tax rate for the first quarter of fiscal 2005, the fourth quarter of fiscal 2004, the third quarter of fiscal 2004, the second quarter of fiscal 2004, the first quarter of fiscal 2004 and fiscal 2003, respectively. EPS is calculated by dividing the Net Income (Loss) amounts by the respective diluted shares for each period. Individual quarterly net income (loss) per diluted share may not equal the fiscal year EPS due to changes in the number of common shares outstanding during the year. Repositioning charges are reported in COS. | |||
(2) | Net unrecovered steel cost is an estimate based upon a baseline average of steel prices per ton for various types of steel at the beginning of fiscal 2004 compared to the impact of steel prices incurred for various types of steel. These estimates include assumptions regarding the steel content of and sources for our products and their components. The steel price increases are netted against steel surcharges invoiced to our customers. | |||
(3) | Net debt reflects total balance sheet debt plus off-balance sheet financing, less cash and limited recourse debt from finance receivables monetizations. | |||
(4) | Free cash flow is defined as cash flow from operating activities, investing activities, payment of dividends, exercise of stock options, and the effect of exchange rate changes on cash less changes in accounts receivable securitization, limited recourse debt from finance receivables monetizations and off-balance sheet debt. |
JLG Industries, Inc. - 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 | |||||||||||||||||||||||||
October 31, | Ended | July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||||||||
2004 | July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Net sales | $ | 302,131 | $ | 1,170,186 | $ | 418,605 | $ | 312,650 | $ | 230,539 | $ | 208,392 | $ | 724,819 | ||||||||||||||
Financial products | 2,660 | 15,203 | 4,172 | 3,913 | 3,442 | 3,676 | 19,184 | |||||||||||||||||||||
Rentals | 1,870 | 8,573 | 2,383 | 2,124 | 2,549 | 1,517 | 7,125 | |||||||||||||||||||||
306,661 | 1,193,962 | 425,160 | 318,687 | 236,530 | 213,585 | 751,128 | ||||||||||||||||||||||
Cost of sales | 280,966 | 968,562 | 345,110 | 255,050 | 193,083 | 175,319 | 616,686 | |||||||||||||||||||||
Gross profit | 25,695 | 225,400 | 80,050 | 63,637 | 43,447 | 38,266 | 134,442 | |||||||||||||||||||||
Gross profit margin | 8.4 | % | 18.9 | % | 18.8 | % | 20.0 | % | 18.4 | % | 17.9 | % | 17.9 | % | ||||||||||||||
Selling and administrative expenses | 28,122 | 128,465 | 42,348 | 34,052 | 28,349 | 23,716 | 79,225 | |||||||||||||||||||||
Selling & administrative % | 9.2 | % | 10.8 | % | 10.0 | % | 10.7 | % | 12.0 | % | 11.1 | % | 10.5 | % | ||||||||||||||
Product development expenses | 5,908 | 21,002 | 5,807 | 5,987 | 4,435 | 4,773 | 16,142 | |||||||||||||||||||||
Product development % | 1.9 | % | 1.8 | % | 1.6 | % | 1.9 | % | 1.9 | % | 2.2 | % | 2.1 | % | ||||||||||||||
Restructuring charges | — | 27 | 16 | — | — | 11 | 2,754 | |||||||||||||||||||||
(Loss) income from operations | (8,335 | ) | 75,906 | 31,879 | 23,598 | 10,663 | 9,766 | 36,321 | ||||||||||||||||||||
Operating (loss) profit margin | -2.7 | % | 6.4 | % | 7.5 | % | 7.4 | % | 4.5 | % | 4.6 | % | 4.8 | % | ||||||||||||||
Other income (deductions): | ||||||||||||||||||||||||||||
Interest expense | (8,996 | ) | (38,098 | ) | (9,274 | ) | (9,400 | ) | (9,548 | ) | (9,876 | ) | (27,985 | ) | ||||||||||||||
Miscellaneous, net | 3,432 | 4,073 | 1,414 | (621 | ) | 2,340 | 940 | 6,691 | ||||||||||||||||||||
(Loss) income before taxes | (13,899 | ) | 41,881 | 24,019 | 13,577 | 3,455 | 830 | 15,027 | ||||||||||||||||||||
Income tax (benefit) provision | (5,170 | ) | 15,232 | 8,748 | 4,890 | 1,297 | 297 | 2,635 | ||||||||||||||||||||
Net (loss) income | $ | (8,729 | ) | $ | 26,649 | $ | 15,271 | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 12,392 | |||||||||||||
Return on revenues | -2.8 | % | 2.2 | % | 3.6 | % | 2.7 | % | 0.9 | % | 0.2 | % | 1.6 | % | ||||||||||||||
(Loss) earnings per common share | $ | (.20 | ) | $ | .62 | $ | .36 | $ | .20 | $ | .05 | $ | .01 | $ | .29 | |||||||||||||
(Loss) earnings per common share - assuming dilution | $ | (.20 | ) | $ | .61 | $ | .35 | $ | .20 | $ | .05 | $ | .01 | $ | .29 | |||||||||||||
Cash Dividends per share | $ | .005 | $ | .020 | $ | .005 | $ | .005 | $ | .005 | $ | .005 | $ | .020 | ||||||||||||||
Average basic shares outstanding | 43,277 | 42,860 | 42,955 | 42,836 | 42,791 | 42,656 | 42,601 | |||||||||||||||||||||
Average diluted shares outstanding | 43,277 | 44,032 | 44,191 | 44,013 | 44,152 | 43,575 | 42,866 | |||||||||||||||||||||
JLG Industries, Inc. - Page 6
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
(Quarterly data is unaudited)
October 31, | July 31, | April 30, | January 31, | October 31, | July 31, | |||||||||||||||||||
2004 | 2004 | 2004 | 2004 | 2003 | 2003 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 66,498 | $ | 37,656 | $ | 12,945 | $ | 18,125 | $ | 11,288 | $ | 132,809 | ||||||||||||
Accounts receivable, net | 299,123 | 362,819 | 372,500 | 315,304 | 289,729 | 257,519 | ||||||||||||||||||
Finance receivables, net | 9,136 | 5,920 | 4,473 | 8,252 | 2,573 | 3,168 | ||||||||||||||||||
Pledged finance receivables, net | 25,057 | 31,858 | 36,027 | 42,189 | 39,380 | 41,334 | ||||||||||||||||||
Inventories | 170,731 | 154,405 | 164,160 | 150,074 | 153,200 | 122,675 | ||||||||||||||||||
Other current assets | 45,739 | 41,058 | 42,086 | 27,441 | 54,252 | 46,474 | ||||||||||||||||||
Total current assets | 616,284 | 633,716 | 632,191 | 561,385 | 550,422 | 603,979 | ||||||||||||||||||
Property, plant and equipment, net | 89,443 | 91,504 | 88,277 | 90,862 | 92,525 | 79,699 | ||||||||||||||||||
Equipment held for rental, net | 26,842 | 21,190 | 18,687 | 22,903 | 18,236 | 19,651 | ||||||||||||||||||
Finance receivables, less current portion | 39,002 | 33,747 | 28,797 | 22,882 | 30,484 | 31,156 | ||||||||||||||||||
Pledged finance receivables, less current portion | 56,413 | 86,559 | 95,851 | 105,915 | 114,382 | 119,073 | ||||||||||||||||||
Goodwill | 63,017 | 62,885 | 66,501 | 66,501 | 66,450 | 29,509 | ||||||||||||||||||
Intangible assets, net | 34,590 | 35,240 | 32,979 | 33,709 | 34,448 | — | ||||||||||||||||||
Other assets | 66,991 | 62,603 | 66,434 | 67,961 | 66,002 | 53,135 | ||||||||||||||||||
$ | 992,582 | $ | 1,027,444 | $ | 1,029,717 | $ | 972,118 | $ | 972,949 | $ | 936,202 | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt and current portion of long-term debt | $ | 1,788 | $ | 1,729 | $ | 14,843 | $ | 1,758 | $ | 2,278 | $ | 1,472 | ||||||||||||
Current portion of limited recourse debt from finance receivables monetizations | 26,725 | 32,585 | 37,086 | 40,824 | 40,153 | 45,279 | ||||||||||||||||||
Accounts payable | 150,600 | 139,990 | 123,984 | 92,762 | 68,197 | 83,408 | ||||||||||||||||||
Accrued expenses | 108,500 | 118,860 | 102,582 | 89,934 | 117,844 | 91,057 | ||||||||||||||||||
Total current liabilities | 287,613 | 293,164 | 278,495 | 225,278 | 228,472 | 221,216 | ||||||||||||||||||
Long-term debt, less current portion | 302,088 | 300,011 | 314,798 | 312,568 | 311,603 | 294,158 | ||||||||||||||||||
Limited recourse debt from finance receivables monetizations, less current portion | 59,008 | 89,209 | 98,367 | 109,459 | 113,388 | 119,661 | ||||||||||||||||||
Accrued post-retirement benefits | 30,211 | 29,666 | 28,798 | 27,998 | 27,199 | 26,179 | ||||||||||||||||||
Other long-term liabilities | 21,362 | 20,542 | 30,501 | 30,487 | 29,790 | 15,160 | ||||||||||||||||||
Provisions for contingencies | 15,520 | 13,582 | 14,740 | 14,076 | 13,586 | 12,114 | ||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Capital stock: | ||||||||||||||||||||||||
Authorized shares: 100,000 at $.20 par value | ||||||||||||||||||||||||
Issued shares: 44,535; fiscal 2004 - 43,903; fiscal 2003 - 43,367 | 8,907 | 8,781 | 8,732 | 8,712 | 8,683 | 8,673 | ||||||||||||||||||
Additional paid-in capital | 35,111 | 29,571 | 25,883 | 24,725 | 23,789 | 23,597 | ||||||||||||||||||
Retained earnings | 245,319 | 254,268 | 239,215 | 230,746 | 228,806 | 228,490 | ||||||||||||||||||
Unearned compensation | (4,019 | ) | (5,333 | ) | (2,856 | ) | (3,796 | ) | (5,145 | ) | (5,428 | ) | ||||||||||||
Accumulated other comprehensive loss | (8,538 | ) | (6,017 | ) | (6,956 | ) | (8,135 | ) | (7,222 | ) | (7,618 | ) | ||||||||||||
Total shareholders’ equity | 276,780 | 281,270 | 264,018 | 252,252 | 248,911 | 247,714 | ||||||||||||||||||
$ | 992,582 | $ | 1,027,444 | $ | 1,029,717 | $ | 972,118 | $ | 972,949 | $ | 936,202 | |||||||||||||
JLG Industries, Inc. - Page 7
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(in thousands)
(Quarterly data is unaudited)
Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | |||||||||||||||||||||||||
October 31, | Ended | July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||||||||
2004 | July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | ||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||
Net (loss) income | $ | (8,729 | ) | $ | 26,649 | $ | 15,271 | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 12,392 | |||||||||||||
Adjustments to reconcile net (loss) income to cash flow from operating activities: | ||||||||||||||||||||||||||||
(Gain) loss on sale of property, plant and equipment | 161 | 319 | 52 | 214 | (240 | ) | 293 | 266 | ||||||||||||||||||||
(Gain) loss on sale of equipment held for rental | 660 | (12,451 | ) | (12,568 | ) | (1,247 | ) | 44 | 1,320 | (6,794 | ) | |||||||||||||||||
Non-cash charges and credits: | ||||||||||||||||||||||||||||
Depreciation and amortization | 7,088 | 25,681 | 5,070 | 7,359 | 6,766 | 6,486 | 19,937 | |||||||||||||||||||||
Other | 2,749 | 17,006 | (1,173 | ) | 5,977 | 8,548 | 3,654 | 7,869 | ||||||||||||||||||||
Changes in selected working capital items: | ||||||||||||||||||||||||||||
Accounts receivable | 62,217 | (66,296 | ) | 18,059 | (57,552 | ) | (27,823 | ) | 1,020 | (35,324 | ) | |||||||||||||||||
Inventories | (16,368 | ) | 9,188 | 13,060 | (14,053 | ) | 3,296 | 6,885 | 43,137 | |||||||||||||||||||
Accounts payable | 10,554 | 33,207 | 11,982 | 31,428 | 24,751 | (34,954 | ) | (46,026 | ) | |||||||||||||||||||
Other operating assets and liabilities | (12,560 | ) | 13,506 | 21,266 | (3,515 | ) | (4,289 | ) | 44 | (12,706 | ) | |||||||||||||||||
Changes in finance receivables | (8,496 | ) | (6,112 | ) | (6,756 | ) | (2,181 | ) | 1,770 | 1,055 | 40,487 | |||||||||||||||||
Changes in pledged finance receivables | 1,391 | (14,866 | ) | 224 | 1,537 | (1,175 | ) | (15,452 | ) | (114,271 | ) | |||||||||||||||||
Changes in other assets and liabilities | (1,147 | ) | (11,090 | ) | (4,408 | ) | (1,921 | ) | (862 | ) | (3,899 | ) | (3,295 | ) | ||||||||||||||
Cash flow from operating activities | 37,520 | 14,741 | 60,079 | (25,267 | ) | 12,944 | (33,015 | ) | (94,328 | ) | ||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||||||||||
Purchases of property, plant and equipment | (2,895 | ) | (12,387 | ) | (3,522 | ) | (2,435 | ) | (2,619 | ) | (3,811 | ) | (10,806 | ) | ||||||||||||||
Proceeds from sale of property, plant and equipment | 81 | 90 | (127 | ) | 127 | 1 | 89 | 216 | ||||||||||||||||||||
Purchases of equipment held for rental | (12,049 | ) | (26,689 | ) | (10,246 | ) | (4,491 | ) | (9,743 | ) | (2,209 | ) | (16,342 | ) | ||||||||||||||
Proceeds from sale of equipment held for rental | 4,150 | 33,269 | 20,563 | 8,008 | 3,557 | 1,141 | 19,063 | |||||||||||||||||||||
Cash portion of acquisitions | — | (109,557 | ) | (14,186 | ) | — | — | (95,371 | ) | — | ||||||||||||||||||
Other | (46 | ) | 333 | (27 | ) | 507 | (101 | ) | (46 | ) | (689 | ) | ||||||||||||||||
Cash flow from investing activities | (10,759 | ) | (114,941 | ) | (7,545 | ) | 1,716 | (8,905 | ) | (100,207 | ) | (8,558 | ) | |||||||||||||||
FINANCING | ||||||||||||||||||||||||||||
Net issuance (repayment) of short-term debt | 58 | 27 | (13,115 | ) | 13,084 | (536 | ) | 594 | (13,497 | ) | ||||||||||||||||||
Issuance of long-term debt | 85,016 | 351,999 | 181,999 | 71,000 | 77,000 | 22,000 | 404,283 | |||||||||||||||||||||
Repayment of long-term debt | (85,092 | ) | (362,506 | ) | (196,202 | ) | (67,099 | ) | (77,119 | ) | (22,086 | ) | (279,647 | ) | ||||||||||||||
Issuance of limited recourse debt | — | 13,979 | — | — | 3,108 | 10,871 | 117,383 | |||||||||||||||||||||
Repayment of limited recourse debt | — | (253 | ) | — | — | — | (253 | ) | (118 | ) | ||||||||||||||||||
Payment of dividends | (220 | ) | (871 | ) | (219 | ) | (218 | ) | (218 | ) | (216 | ) | (859 | ) | ||||||||||||||
Exercise of stock options | 5,086 | 2,414 | 276 | 1,242 | 746 | 150 | 93 | |||||||||||||||||||||
Cash flow from financing activities | 4,848 | 4,789 | (27,261 | ) | 18,009 | 2,981 | 11,060 | 227,638 | ||||||||||||||||||||
CURRENCY ADJUSTMENTS | ||||||||||||||||||||||||||||
Effect of exchange rate changes on cash | (2,767 | ) | 258 | (562 | ) | 362 | (183 | ) | 641 | 1,852 | ||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||||||||
Net change in cash and cash equivalents | 28,842 | (95,153 | ) | 24,711 | (5,180 | ) | 6,837 | (121,521 | ) | 126,604 | ||||||||||||||||||
Beginning balance | 37,656 | 132,809 | 12,945 | 18,125 | 11,288 | 132,809 | 6,205 | |||||||||||||||||||||
Ending balance | $ | 66,498 | $ | 37,656 | $ | 37,656 | $ | 12,945 | $ | 18,125 | $ | 11,288 | $ | 132,809 | ||||||||||||||
JLG Industries, Inc. - Page 8
JLG INDUSTRIES, INC.
CONSOLIDATED SELECTED SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
(Quarterly data is unaudited)
Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | |||||||||||||||||||||||||
October 31, | Ended | July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||||||||
2004 | July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | ||||||||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||||||
Machinery | $ | 252,532 | $ | 973,610 | $ | 351,123 | $ | 261,263 | $ | 192,266 | $ | 168,958 | $ | 594,484 | ||||||||||||||
Equipment Services | 51,350 | 204,454 | 69,559 | 53,258 | 40,822 | 40,815 | 136,737 | |||||||||||||||||||||
Access Financial Solutions | 2,779 | 15,898 | 4,478 | 4,166 | 3,442 | 3,812 | 19,907 | |||||||||||||||||||||
$ | 306,661 | $ | 1,193,962 | $ | 425,160 | $ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | |||||||||||||||
SEGMENT PROFIT (LOSS): | ||||||||||||||||||||||||||||
Machinery | $ | (13,340 | ) | $ | 70,844 | $ | 27,520 | $ | 25,190 | $ | 11,541 | $ | 6,593 | $ | 25,513 | |||||||||||||
Equipment services | 15,767 | 59,760 | 20,725 | 15,158 | 12,809 | 11,068 | 27,119 | |||||||||||||||||||||
Access Financial Solutions | 194 | 1,695 | 990 | 694 | (273 | ) | 284 | 3,990 | ||||||||||||||||||||
General corporate expenses | (13,249 | ) | (67,308 | ) | (19,898 | ) | (20,229 | ) | (16,088 | ) | (11,093 | ) | (32,001 | ) | ||||||||||||||
Segment (loss) profit | (10,628 | ) | 64,991 | 29,337 | 20,813 | 7,989 | 6,852 | 24,621 | ||||||||||||||||||||
Add: AFS’ interest expense | 2,293 | 10,915 | 2,542 | 2,785 | 2,674 | 2,914 | 11,700 | |||||||||||||||||||||
Operating (Loss) Income | $ | (8,335 | ) | $ | 75,906 | $ | 31,879 | $ | 23,598 | $ | 10,663 | $ | 9,766 | $ | 36,321 | |||||||||||||
PRODUCT GROUP REVENUES | ||||||||||||||||||||||||||||
Aerial work platforms | $ | 124,523 | $ | 562,056 | $ | 217,425 | $ | 146,017 | $ | 109,354 | $ | 89,260 | $ | 428,564 | ||||||||||||||
Telehandlers | 119,668 | 358,865 | 117,510 | 99,439 | 69,908 | 72,008 | 117,475 | |||||||||||||||||||||
Excavators | 8,341 | 52,689 | 16,188 | 15,807 | 13,004 | 7,690 | 48,445 | |||||||||||||||||||||
After-sales service and support, including parts sales, and used and reconditioned equipment sales | 49,599 | 196,576 | 67,482 | 51,387 | 38,273 | 39,434 | 130,335 | |||||||||||||||||||||
Financial products | 2,660 | 15,203 | 4,172 | 3,913 | 3,442 | 3,676 | 19,184 | |||||||||||||||||||||
Rentals | 1,870 | 8,573 | 2,383 | 2,124 | 2,549 | 1,517 | 7,125 | |||||||||||||||||||||
$ | 306,661 | $ | 1,193,962 | $ | 425,160 | $ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | |||||||||||||||
GEOGRAPHIC REVENUES | ||||||||||||||||||||||||||||
United States | $ | 238,733 | $ | 923,696 | $ | 327,498 | $ | 246,985 | $ | 177,542 | $ | 171,671 | $ | 546,494 | ||||||||||||||
Europe | 36,863 | 178,392 | 66,076 | 48,079 | 40,286 | 23,951 | 145,038 | |||||||||||||||||||||
Other international | 31,065 | 91,874 | 31,586 | 23,623 | 18,702 | 17,963 | 59,596 | |||||||||||||||||||||
$ | 306,661 | $ | 1,193,962 | $ | 425,160 | $ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | |||||||||||||||
JLG Industries, Inc. - Page 9
JLG INDUSTRIES, INC.
EBITDA
QUARTERLY PERIODS
(in thousands)
October 31, | July 31, | April 30, | January 31, | October 31, | July 31, | |||||||||||||||||||
2004 | 2004 | 2004 | 2004 | 2003 | 2003 | |||||||||||||||||||
Net (loss) income | ($ | 8,729 | ) | $ | 15,271 | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 5,672 | |||||||||||
Interest expense | 8,996 | 9,274 | 9,400 | 9,548 | 9,876 | 9,645 | ||||||||||||||||||
Income tax (benefit) provision | (5,170 | ) | 8,748 | 4,890 | 1,297 | 297 | (527 | ) | ||||||||||||||||
Depreciation and amortization | 7,088 | 5,070 | 7,359 | 6,766 | 6,486 | 4,591 | ||||||||||||||||||
EBITDA | $ | 2,185 | $ | 38,363 | $ | 30,336 | $ | 19,769 | $ | 17,192 | $ | 19,381 | ||||||||||||
We also monitor our EBITDA, which is a supplemental measure to GAAP that provides additional information concerning our leverage position and our historical ability to meet debt service and capital expenditure and working capital requirements. EBITDA also is an indicator of profitability, particularly in our capital-intensive industry. EBITDA reflects our earnings (loss) before interest, taxes and depreciation and amortization. EBITDA as presented differs (i) from previously disclosed presentations which excluded restructuring or repositioning charges, and (ii) from measures of EBITDA calculated for purposes of financial covenants in our note indentures and senior credit facilities.
JLG Industries, Inc. - Page 10
JLG INDUSTRIES, INC.
EBITDA AND EBITDA MARGINS
TRAILING TWELVE MONTH PERIODS
(in thousands)
October 31, | July 31, | April 30, | January 31, | October 31, | July 31, | |||||||||||||||||||
2004 | 2004 | 2004 | 2004 | 2003 | 2003 | |||||||||||||||||||
Net income | $ | 17,387 | $ | 26,649 | $ | 17,050 | $ | 10,528 | $ | 12,596 | $ | 12,392 | ||||||||||||
Interest expense | 37,218 | 38,098 | 38,469 | 35,833 | 32,357 | 27,985 | ||||||||||||||||||
Income tax provision | 9,765 | 15,232 | 5,957 | 2,085 | 2,777 | 2,635 | ||||||||||||||||||
Depreciation and amortization | 26,283 | 25,681 | 25,202 | 22,774 | 21,155 | 19,937 | ||||||||||||||||||
EBITDA | $ | 90,653 | $ | 105,660 | $ | 86,678 | $ | 71,220 | $ | 68,885 | $ | 62,949 | ||||||||||||
Revenues | $ | 1,287,038 | $ | 1,193,962 | $ | 1,002,360 | $ | 889,443 | $ | 804,226 | $ | 751,128 | ||||||||||||
EBITDA Margin | 7.0 | % | 8.8 | % | 8.6 | % | 8.0 | % | 8.6 | % | 8.4 | % | ||||||||||||
We also monitor our EBITDA, which is a supplemental measure to GAAP that provides additional information concerning our leverage position and our historical ability to meet debt service and capital expenditure and working capital requirements. EBITDA also is an indicator of profitability, particularly in our capital-intensive industry. EBITDA reflects our earnings before interest, taxes and depreciation and amortization. EBITDA as presented differs (i) from previously disclosed presentations which excluded restructuring or repositioning charges, and (ii) from measures of EBITDA calculated for purposes of financial covenants in our note indentures and senior credit facilities.
JLG Industries, Inc. - Page 11
JLG INDUSTRIES, INC.
NET DEBT
(in thousands)
October 31, | July 31, | April 30, | January 31, | October 31, | July 31, | |||||||||||||||||||
2004 | 2004 | 2004 | 2004 | 2003 | 2003 | |||||||||||||||||||
Revolving credit facilities | $ | — | $ | — | $ | 14,000 | $ | — | $ | — | $ | — | ||||||||||||
$15 million cash management facility | — | — | 13,129 | — | 567 | — | ||||||||||||||||||
$125 million senior notes | 125,000 | 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 | ||||||||||||||||||
Miscellaneous debt | 5,219 | 5,236 | 5,321 | 15,465 | 15,554 | 1,983 | ||||||||||||||||||
Fair value of interest rate swaps | (6,492 | ) | (8,814 | ) | (8,296 | ) | (6,795 | ) | (8,065 | ) | (12,347 | ) | ||||||||||||
Gain on terminated interest rate swap | 5,149 | 5,318 | 5,487 | 5,656 | 5,825 | 5,994 | ||||||||||||||||||
Bank debt and notes | 303,876 | 301,740 | 329,641 | 314,326 | 313,881 | 295,630 | ||||||||||||||||||
Limited recourse debt from finance receivables monetizations * | 85,733 | 121,794 | 135,453 | 150,283 | 153,541 | 164,940 | ||||||||||||||||||
Total balance sheet debt | 389,609 | 423,534 | 465,094 | 464,609 | 467,422 | 460,570 | ||||||||||||||||||
Net present value of off-balance sheet rental fleet lease | 1,012 | 1,070 | 1,524 | 2,026 | 2,341 | 2,341 | ||||||||||||||||||
Net present value of off-balance sheet production equipment leases | 3,991 | 4,399 | 4,966 | 5,181 | 5,564 | 5,941 | ||||||||||||||||||
Total off-balance sheet financing | 5,003 | 5,469 | 6,490 | 7,207 | 7,905 | 8,282 | ||||||||||||||||||
Total balance sheet debt and off-balance sheet financing | 394,612 | 429,003 | 471,584 | 471,816 | 475,327 | 468,852 | ||||||||||||||||||
Less: cash | 66,498 | 37,656 | 12,945 | 18,125 | 11,288 | 132,809 | ||||||||||||||||||
Less: limited recourse debt from finance receivables monetizations | 85,733 | 121,794 | 135,453 | 150,283 | 153,541 | 164,940 | ||||||||||||||||||
Net debt | $ | 242,381 | $ | 269,553 | $ | 323,186 | $ | 303,408 | $ | 310,498 | $ | 171,103 | ||||||||||||
* Maximum loss exposure from finance receivables monetizations | $ | 26,068 | $ | 25,161 | $ | 23,757 | $ | 24,460 | $ | 23,380 | $ | 21,708 | ||||||||||||
Shareholders’ Equity | $ | 276,780 | $ | 281,270 | $ | 264,018 | $ | 252,252 | $ | 248,911 | $ | 247,714 | ||||||||||||
Net Debt-to-Net Debt plus Shareholders’ Equity | 47 | % | 49 | % | 55 | % | 55 | % | 56 | % | 41 | % | ||||||||||||
Total Balance Sheet Debt-to-Total Balance Sheet Debt plus Shareholders’ Equity | 58 | % | 60 | % | 64 | % | 65 | % | 65 | % | 65 | % | ||||||||||||
We also monitor our net debt, which is a supplemental measure to GAAP that provides additional information concerning our leverage position and our historical ability to meet debt service and capital expenditure and working capital requirements. We define net debt as the sum of total balance sheet debt and other off-balance sheet financing, minus cash and limited recourse debt arising from our monetizations of customer finance receivables.
JLG Industries, Inc. - Page 12
JLG INDUSTRIES, INC.
FREE CASH FLOW
(in thousands)
Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | |||||||||||||||||||||||||
October 31, | Ended | July 31, | April 30, | January 31, | October 31, | Ended | ||||||||||||||||||||||
2004 | July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | ||||||||||||||||||||||
Net (loss) income | ($8,729 | ) | $ | 26,649 | $ | 15,271 | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 12,392 | ||||||||||||||
Adjustments to reconcile net (loss) income to cash flow from operating activities: | ||||||||||||||||||||||||||||
Non-cash items | 10,658 | 30,555 | (8,619 | ) | 12,303 | 15,118 | 11,753 | 21,278 | ||||||||||||||||||||
Accounts receivable | 62,217 | (66,296 | ) | 18,059 | (57,552 | ) | (27,823 | ) | 1,020 | (35,324 | ) | |||||||||||||||||
Inventories | (16,368 | ) | 9,188 | 13,060 | (14,053 | ) | 3,296 | 6,885 | 43,137 | |||||||||||||||||||
Other current assets | (2,817 | ) | 8,780 | (158 | ) | (14,211 | ) | 26,225 | (3,076 | ) | (15,960 | ) | ||||||||||||||||
Accounts payable | 10,554 | 33,207 | 11,982 | 31,428 | 24,751 | (34,954 | ) | (46,026 | ) | |||||||||||||||||||
Accrued expenses | (9,743 | ) | 4,726 | 21,424 | 10,696 | (30,514 | ) | 3,120 | 3,254 | |||||||||||||||||||
Finance receivables | (8,496 | ) | (6,112 | ) | (6,756 | ) | (2,181 | ) | 1,770 | 1,055 | 40,487 | |||||||||||||||||
Other cash from operations | (1,147 | ) | (11,090 | ) | (4,408 | ) | (1,921 | ) | (862 | ) | (3,899 | ) | (3,295 | ) | ||||||||||||||
Purchases of property, plant and equipment | (2,895 | ) | (12,387 | ) | (3,522 | ) | (2,435 | ) | (2,619 | ) | (3,811 | ) | (10,806 | ) | ||||||||||||||
Proceeds from sale of property, plant and equipment | 81 | 90 | (127 | ) | 127 | 1 | 89 | 216 | ||||||||||||||||||||
Purchases of equipment held for rental | (12,049 | ) | (26,689 | ) | (10,246 | ) | (4,491 | ) | (9,743 | ) | (2,209 | ) | (16,342 | ) | ||||||||||||||
Proceeds from sale of equipment held for rental | 4,150 | 33,269 | 20,563 | 8,008 | 3,557 | 1,141 | 19,063 | |||||||||||||||||||||
Cash portion of acquisitions | — | (109,557 | ) | (14,186 | ) | — | — | (95,371 | ) | — | ||||||||||||||||||
Other cash from investments | (46 | ) | 333 | (27 | ) | 507 | (101 | ) | (46 | ) | (689 | ) | ||||||||||||||||
Payment of dividends | (220 | ) | (871 | ) | (219 | ) | (218 | ) | (218 | ) | (216 | ) | (859 | ) | ||||||||||||||
Exercise of stock options | 5,086 | 2,414 | 276 | 1,242 | 746 | 150 | 93 | |||||||||||||||||||||
Effect of exchange rate changes on cash | (2,767 | ) | 258 | (562 | ) | 362 | (183 | ) | 641 | 1,852 | ||||||||||||||||||
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) | (297 | ) | (1,184 | ) | 1,931 | 3,924 | 1,531 | (8,570 | ) | 15,310 | ||||||||||||||||||
Free Cash Flow | $ | 27,172 | ($98,450 | ) | $ | 53,633 | ($19,778 | ) | $ | 7,090 | ($139,395 | ) | $ | 27,781 | ||||||||||||||
(1) Includes changes in other off-balance sheet debt.
In addition to measuring our cash flow generation and usage based upon the Statements of Cash Flows, we also measure our free cash flow. We define free cash flow as cash flow from operating activities, investing activities, payment of dividends, exercise of stock options, and the effect of exchange rate changes on cash less changes in accounts receivable securitization, limited recourse debt from finance receivables monetizations and off-balance sheet debt. Our measure of free cash flow may not be comparable to similarly titled measures being disclosed by other companies and is not a measure of financial performance that is in accordance with GAAP. We utilize free cash flow to explain the change in our net debt position from the prior period.
JLG Industries, Inc. - 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 | ||||||||||||||||||||||
Three Months Ended October 31, | Three Months Ended October 31, | Three Months Ended October 31, | ||||||||||||||||||||||
2004 | 2003 | 2004 | 2003 | 2004 | 2003 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Net sales | $ | 302,131 | $ | 208,392 | $ | 302,131 | $ | 208,392 | $ | — | $ | — | ||||||||||||
Financial products | 2,660 | 3,676 | — | — | 2,660 | 3,676 | ||||||||||||||||||
Rentals | 1,870 | 1,517 | 1,751 | 1,381 | 119 | 136 | ||||||||||||||||||
306,661 | 213,585 | 303,882 | 209,773 | 2,779 | 3,812 | |||||||||||||||||||
Cost of sales | 280,966 | 175,319 | 280,772 | 175,161 | 194 | 158 | ||||||||||||||||||
Gross profit | 25,695 | 38,266 | 23,110 | 34,612 | 2,585 | 3,654 | ||||||||||||||||||
Selling and administrative expenses | 28,122 | 23,716 | 28,024 | 23,260 | 98 | 456 | ||||||||||||||||||
Product development expenses | 5,908 | 4,773 | 5,908 | 4,773 | — | — | ||||||||||||||||||
Restructuring charges | — | 11 | — | 11 | — | — | ||||||||||||||||||
(Loss) income from operations | (8,335 | ) | 9,766 | (10,822 | ) | 6,568 | 2,487 | 3,198 | ||||||||||||||||
Other income (deductions): | ||||||||||||||||||||||||
Interest expense | (8,996 | ) | (9,876 | ) | (6,703 | ) | (6,962 | ) | (2,293 | ) | (2,914 | ) | ||||||||||||
Miscellaneous, net | 3,432 | 940 | 3,432 | 940 | — | — | ||||||||||||||||||
(Loss) income before taxes | (13,899 | ) | 830 | (14,093 | ) | 546 | 194 | 284 | ||||||||||||||||
Income tax (benefit) provision | (5,170 | ) | 297 | (5,242 | ) | 195 | 72 | 102 | ||||||||||||||||
Equity in income of Access Financial Solutions | — | — | 122 | 182 | — | — | ||||||||||||||||||
Net (loss) income | $ | (8,729 | ) | $ | 533 | $ | (8,729 | ) | $ | 533 | $ | 122 | $ | 182 | ||||||||||
(Loss) earnings per common share | $ | (.20 | ) | $ | .01 | |||||||||||||||||||
(Loss) earnings per common share - assuming dilution | $ | (.20 | ) | $ | .01 | |||||||||||||||||||
Cash dividends per share | $ | .005 | $ | .005 | ||||||||||||||||||||
Weighted average shares outstanding | 43,277 | 42,656 | ||||||||||||||||||||||
Weighted average shares outstanding - assuming dilution | 43,277 | 43,575 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||
October 31, | July 31, | October 31, | July 31, | October 31, | July 31, | |||||||||||||||||||
2004 | 2004 | 2004 | 2004 | 2004 | 2004 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 66,498 | $ | 37,656 | $ | 66,498 | $ | 37,656 | $ | — | $ | — | ||||||||||||
Accounts receivable — net | 299,123 | 362,819 | 295,304 | 332,154 | 3,819 | 30,665 | ||||||||||||||||||
Finance receivables — net | 9,136 | 5,920 | — | — | 9,136 | 5,920 | ||||||||||||||||||
Pledged receivables — net | 25,057 | 31,858 | — | — | 25,057 | 31,858 | ||||||||||||||||||
Inventories | 170,731 | 154,405 | 170,731 | 154,405 | — | — | ||||||||||||||||||
Other current assets | 45,739 | 41,058 | 45,739 | 41,058 | — | — | ||||||||||||||||||
Total current assets | 616,284 | 633,716 | 578,272 | 565,273 | 38,012 | 68,443 | ||||||||||||||||||
Property, plant and equipment — net | 89,443 | 91,504 | 89,443 | 91,504 | — | — | ||||||||||||||||||
Equipment held for rental — net | 26,842 | 21,190 | 25,222 | 19,404 | 1,620 | 1,786 | ||||||||||||||||||
Finance receivables, less current portion | 39,002 | 33,747 | — | — | 39,002 | 33,747 | ||||||||||||||||||
Pledged receivables, less current portion | 56,413 | 86,559 | — | — | 56,413 | 86,559 | ||||||||||||||||||
Goodwill | 63,017 | 62,885 | 63,017 | 62,885 | — | — | ||||||||||||||||||
Intangible assets — net | 34,590 | 35,240 | 34,590 | 35,240 | — | — | ||||||||||||||||||
Investment in Access Financial Solutions | — | — | 37,893 | 37,771 | — | — | ||||||||||||||||||
Receivable from Access Financial Solutions | — | — | 11,309 | 31,398 | — | — | ||||||||||||||||||
Other assets | 66,991 | 62,603 | 66,927 | 61,955 | 64 | 648 | ||||||||||||||||||
$ | 992,582 | $ | 1,027,444 | $ | 906,673 | $ | 905,430 | $ | 135,111 | $ | 191,183 | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt and current portion of long-term debt | $ | 1,788 | $ | 1,729 | $ | 1,788 | $ | 1,729 | $ | — | $ | — | ||||||||||||
Current portion of limited recourse debt from finance receivables monetizations | 26,725 | 32,585 | — | — | 26,725 | 32,585 | ||||||||||||||||||
Accounts payable | 150,600 | 139,990 | 150,600 | 139,990 | — | — | ||||||||||||||||||
Accrued expenses | 108,500 | 118,860 | 108,324 | 118,652 | 176 | 208 | ||||||||||||||||||
�� | ||||||||||||||||||||||||
Total current liabilities | 287,613 | 293,164 | 260,712 | 260,371 | 26,901 | 32,793 | ||||||||||||||||||
Long-term debt, less current portion | 302,088 | 300,011 | 302,088 | 300,011 | — | — | ||||||||||||||||||
Limited recourse debt from finance receivables monetizations, less current portion | 59,008 | 89,209 | — | — | 59,008 | 89,209 | ||||||||||||||||||
Payable to JLG Industries, Inc. | — | — | — | — | 11,309 | 31,398 | ||||||||||||||||||
Accrued post-retirement benefits | 30,211 | 29,666 | 30,211 | 29,666 | — | — | ||||||||||||||||||
Other long-term liabilities | 21,362 | 20,542 | 21,362 | 20,542 | — | — | ||||||||||||||||||
Provisions for contingencies | 15,520 | 13,582 | 15,520 | 13,570 | — | 12 | ||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Capital stock: | ||||||||||||||||||||||||
Authorized shares: 100,000 at $.20 par value | ||||||||||||||||||||||||
Issued and outstanding shares: 44,535 shares; fiscal 2004 – 43,903 shares | 8,907 | 8,781 | 8,907 | 8,781 | 30,000 | 30,000 | ||||||||||||||||||
Additional paid-in capital | 35,111 | 29,571 | 35,111 | 29,571 | — | — | ||||||||||||||||||
Retained earnings | 245,319 | 254,268 | 245,319 | 254,268 | 7,893 | 7,771 | ||||||||||||||||||
Unearned compensation | (4,019 | ) | (5,333 | ) | (4,019 | ) | (5,333 | ) | — | — | ||||||||||||||
Accumulated other comprehensive loss | (8,538 | ) | (6,017 | ) | (8,538 | ) | (6,017 | ) | — | — | ||||||||||||||
Total shareholders’ equity | 276,780 | 281,270 | 276,780 | 281,270 | 37,893 | 37,771 | ||||||||||||||||||
$ | 992,582 | $ | 1,027,444 | $ | 906,673 | $ | 905,430 | $ | 135,111 | $ | 191,183 | |||||||||||||
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 | ||||||||||||||||||||||
Three Months Ended October 31, | Three Months Ended October 31, | Three Months Ended October 31, | ||||||||||||||||||||||
2004 | 2003 | 2004 | 2003 | 2004 | 2003 | |||||||||||||||||||
Operations | ||||||||||||||||||||||||
Net (loss) income | $ | (8,729 | ) | $ | 533 | $ | (8,729 | ) | $ | 533 | $ | 122 | $ | 182 | ||||||||||
Adjustments to reconcile net (loss) income to cash flow from operating activities: | ||||||||||||||||||||||||
(Gain) loss on sale of property, plant and equipment | 161 | 293 | 161 | 293 | — | — | ||||||||||||||||||
(Gain) loss on sale of equipment held for rental | 660 | 1,320 | 660 | 1,320 | — | — | ||||||||||||||||||
Non-cash charges and credits: | ||||||||||||||||||||||||
Depreciation and amortization | 7,088 | 6,486 | 6,894 | 6,332 | 194 | 154 | ||||||||||||||||||
Other | 2,749 | 3,654 | 3,267 | 3,746 | (518 | ) | (92 | ) | ||||||||||||||||
Changes in selected working capital items: | ||||||||||||||||||||||||
Accounts receivable | 62,217 | 1,020 | 35,355 | (21,304 | ) | 26,862 | 22,324 | |||||||||||||||||
Inventories | (16,368 | ) | 6,885 | (16,368 | ) | 6,885 | — | — | ||||||||||||||||
Accounts payable | 10,554 | (34,954 | ) | 10,554 | (34,954 | ) | — | — | ||||||||||||||||
Other operating assets and liabilities | (12,560 | ) | 44 | (12,528 | ) | 20 | (32 | ) | 24 | |||||||||||||||
Changes in finance receivables | (8,496 | ) | 1,055 | — | — | (8,496 | ) | 1,055 | ||||||||||||||||
Changes in pledged finance receivables | 1,391 | (15,452 | ) | — | — | 1,391 | (15,452 | ) | ||||||||||||||||
Changes in other assets and liabilities | (1,147 | ) | (3,899 | ) | (1,719 | ) | (3,573 | ) | 572 | (326 | ) | |||||||||||||
Cash flow from operating activities | 37,520 | (33,015 | ) | 17,547 | (40,702 | ) | 20,095 | 7,869 | ||||||||||||||||
Investments | ||||||||||||||||||||||||
Purchases of property, plant and equipment | (2,895 | ) | (3,811 | ) | (2,895 | ) | (3,811 | ) | — | — | ||||||||||||||
Proceeds from the sale of property, plant and equipment | 81 | 89 | 81 | 89 | — | — | ||||||||||||||||||
Purchases of equipment held for rental | (12,049 | ) | (2,209 | ) | (12,021 | ) | (2,100 | ) | (28 | ) | (109 | ) | ||||||||||||
Proceeds from the sale of equipment held for rental | 4,150 | 1,141 | 4,150 | 1,141 | — | — | ||||||||||||||||||
Cash portion of acquisitions | — | (95,371 | ) | — | (95,371 | ) | — | — | ||||||||||||||||
Investment in income of Access Financial Solutions | — | — | (122 | ) | (182 | ) | — | — | ||||||||||||||||
Other | (46 | ) | (46 | ) | (46 | ) | (46 | ) | — | — | ||||||||||||||
Cash flow from investing activities | (10,759 | ) | (100,207 | ) | (10,853 | ) | (100,280 | ) | (28 | ) | (109 | ) | ||||||||||||
Financing | ||||||||||||||||||||||||
Net increase in short-term debt | 58 | 594 | 58 | 594 | — | — | ||||||||||||||||||
Issuance of long-term debt | 85,016 | 22,000 | 85,016 | 22,000 | — | — | ||||||||||||||||||
Repayment of long-term debt | (85,092 | ) | (22,086 | ) | (85,092 | ) | (22,086 | ) | — | — | ||||||||||||||
Issuance of limited recourse debt | — | 10,871 | — | — | — | 10,871 | ||||||||||||||||||
Repayment of limited recourse debt | (253 | ) | — | — | — | (253 | ) | |||||||||||||||||
Change in receivable from Access Financial Solutions | — | — | 20,089 | 18,378 | — | — | ||||||||||||||||||
Change in payable to JLG Industries, Inc. | — | — | — | — | (20,089 | ) | (18,378 | ) | ||||||||||||||||
Payment of dividends | (220 | ) | (216 | ) | (220 | ) | (216 | ) | — | — | ||||||||||||||
Exercise of stock options | 5,086 | 150 | 5,086 | 150 | — | — | ||||||||||||||||||
Cash flow from financing activities | 4,848 | 11,060 | 24,937 | 18,820 | (20,089 | ) | (7,760 | ) | ||||||||||||||||
Currency Adjustments | ||||||||||||||||||||||||
Effect of exchange rate changes on cash | (2,767 | ) | 641 | (2,789 | ) | 641 | 22 | — | ||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||||||||
Net change in cash and cash equivalents | 28,842 | (121,521 | ) | 28,842 | (121,521 | ) | — | — | ||||||||||||||||
Beginning balance | 37,656 | 132,809 | 37,656 | 132,809 | — | — | ||||||||||||||||||
Ending balance | $ | 66,498 | $ | 11,288 | $ | 66,498 | $ | 11,288 | $ | — | $ | — | ||||||||||||
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