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’S FOURTH QUARTER SALES UP 34 PERCENT, EARNINGS UP 134 PERCENT
Fiscal 2005 Sales up 45 Percent and Earnings Grow 115 Percent
McConnellsburg, PA, September 22, 2005— JLG Industries, Inc. (NYSE: JLG) announced today record consolidated revenues for the fourth quarter ended July 31, 2005 of $570 million, 34 percent higher than year-ago revenues of $425 million. Sales increased 33 percent in the U.S. and 36 percent internationally, year-on-year. Net income was $35.7 million, or $0.69 per diluted share, compared with net income of $15.3 million, or $0.35 per diluted share, in the prior year. Adjusted to eliminate the favorable impact of expenses associated with the OmniQuip integration, earnings for the fourth quarter were $0.72 per diluted share, versus $0.42 per diluted share in the prior year, a 71 percent increase. Net unrecovered steel costs were an estimated $9 million before-tax for the current quarter, relatively consistent with the third quarter and significantly reduced compared to the $48 million reported in the first half. Estimated net unrecovered steel costs represent the difference between estimated increases in steel and related commodity costs against fiscal 2004 baselines, offset in part by increased pricing.
“Reflecting strong customer demand in a robust market, our revenue grew significantly in each and every quarter of fiscal 2005. And, despite record quarterly shipments, our order book still increased to $631 million at year end, more than three times the $198 million at the end of 2004,” commented Bill Lasky, Chairman of the Board, President and Chief Executive Officer. “Operating efficiencies were enhanced by significant improvements in component availability from our supply chain. While the price of steel and other commodity inputs to our products remain high, with exception of energy prices, they have stabilized, and as a result of our pricing actions and design and process improvements we have recovered much of the increased costs. With the most recent increase in our surcharges, announced in May, going forward into fiscal year 2006 we expect to substantially recover these higher raw material costs.”
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JLG Industries, Inc. — page 2
Adjusted to eliminate the favorable impact of a year-on-year reduction in acquisition integration expense, operating income improved to $61.9 million, or 10.9 percent of revenues, versus $36.9 million, or 8.7 percent of revenues, for the year-ago period. This represents an incremental operating margin of 17.3 percent an improvement of 340 basis points on a sequential basis and reflects the continued net unrecovered steel costs in the fourth quarter. On a GAAP basis, operating profit was $59.7 million, or 10.5 percent of revenues, versus $31.9 million, or 7.5 percent of revenues, in the prior-year fourth quarter.
Fiscal 2005 Results
Consolidated revenues were $1.74 billion for the fiscal year ended July 31, 2005, a 45 percent increase from the prior year. Sales in the U.S. increased by 42 percent, while international sales grew 57 percent year over year. Net income was $57.2 million, or $1.20 per diluted share, compared with net income of $26.6 million, or $0.61 per diluted share, in the year-ago period. Adjusted to eliminate the impact of expenses associated with the OmniQuip integration and the early extinguishment of debt, full-year earnings were $1.36 per diluted share versus $0.84 per diluted share for the prior year, a 62 percent improvement.
Reflecting the significantly increased cost of raw materials, especially steel, and the lag in customer price increases in the first half of the year, the operating profit margin, on a GAAP basis, was 6.9 percent versus 6.4 percent for the prior year. Before the impact of integration expenses, operating income increased to $127 million, or 7.3 percent of revenues, from $91.9 million, or 7.7 percent of revenues, in the year-ago period. Net unrecovered steel costs for the year were an estimated $65 million.
Cash flow from operations was $142 million for the year compared to $14.7 million in fiscal 2004. Cash and cash equivalents at the end of the year were $224 million versus $38 million at the end of the prior year and net debt was reduced to $2 million from $270 million. The Company continued to improve key operating metrics, reducing trade receivable days sales outstanding to 57 days at year-end from 78 days last year, while improving inventory turns to 7.6 from 5.8.
During the year, the Company repurchased a total of $15 million of its 8.25 percent Senior Notes due in 2008, ($3 million during the fourth quarter and the balance in the third quarter) together with the redemption of $61.25 million of its 8.375 percent Senior Subordinated Notes due 2012, as previously announced.
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JLG Industries, Inc. — page 3
Outlook
“We delivered great results for fiscal 2005 in the face of sky-high raw material costs and significant supply chain challenges, and we are focused on building upon this success in the coming year,” stated Jim Woodward, Executive Vice President and Chief Financial Officer. “Commercial and non-residential construction and solid economic activity, the primary drivers of equipment demand, continue to be strong. Fleet age, rental rates and utilization of our type of equipment continue to drive demand as rental companies maintain their strong pace of equipment refreshment and expansion. While the macro-economic impacts of this season’s hurricanes are not yet known, we expect the short-term results to be similar to last year where equipment demand rose as a result of the clean-up and reconstruction activities following the Florida hurricanes.
“In fiscal year 2006, we will be investing in several key initiatives including an aggressive expansion of our ServicePLUSä operations, development of the next generation military ATLAS telehandlers, as well as other product development programs targeting specific market segments. We will also continue our expansion of channels to market with the Commercial Solutions Group. We have begun the negotiation process with State and local authorities concerning the potential re-opening of our Bedford, Pennsylvania facility, at the Sunnyside Road location, to accommodate the manufacturing and engineering operations for this new group as well as to increase our capacity. Many of these strategic investments will not show a corresponding short-term return in fiscal 2006 but are consistent with our five-year strategic plan to improve our quality of earnings.
“Absent any major economic shocks, we anticipate stronger demand in fiscal 2006 with global sales projected to increase by 15 to 20 percent. The stabilization of steel and component costs combined with our customer pricing actions will greatly improve the quality of our earnings. Additionally, continued improvement of component availability is helping drive operating efficiency gains. Therefore, we are anticipating fiscal 2006 earnings per diluted share in the $2.15 to $2.25 range. We believe that we have the right products and services, and manufacturing flexibility to meet the strong demand and achieve our longer-term goals. During the year, we will continue to explore opportunities to put our excess cash to work to increase shareholder value.”
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 14, 2005 to shareholders of record September 30, 2005.
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JLG Industries, Inc. — page 4
Conference Call
Management’s more detailed analysis of the Company’s results and financial condition will be provided during a conference call on Friday, September 23, 2005 at 9:00 a.m. Eastern Time. The call can be accessed via JLG’s website www.jlg.com, where it will be accompanied by a slide presentation, or by dialling (866) 314-9013. International participants should dial (617) 213-8053. Access code for both dial-in numbers is 34974534. Please dial into the conference call 10 minutes prior to the start. A replay of the conference call presentation will be available on the Company’s website.
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 JLGâ aerial work platforms; JLG, SkyTrakâ, Lullâ and Gradallâ telehandlers; Gradall excavators; and an array of complementary accessories that increase the versatility and efficiency of these products for end users. JLG markets its products and services through a multi-channel approach that includes a highly trained sales force, marketing, the Internet, integrated supply programs and a network of distributors. In addition, JLG offers world-class after-sales service and support for its customers in the industrial, commercial, institutional and construction markets. JLG’s manufacturing facilities are located in the United States, Belgium, and France with sales and service locations on six continents.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the following: (i) general economic and market conditions, including political and economic uncertainty in areas of the world where we do business; (ii) varying and seasonal levels of demand for our products and services; (iii) limitations on customer access to credit for purchases; (iv) credit risks from our financing of customer purchases; (v) interest and foreign currency exchange rates; and (vi) costs of raw materials and energy, as well as other risks as detailed in the Company’s SEC reports, including the report onForm 10-Q for the quarter ended May 1, 2005.
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 5
JLG INDUSTRIES, INC.
FINANCIAL DASHBOARD
(in thousands, except per share data and as otherwise identified)
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, | May 1, | January 30, | October 31, | Ended | July 31, | April 25, | January 25, | October 26, | Ended | ||||||||||||||||||||||||||||||||||
July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | ||||||||||||||||||||||||||||||||||
REVENUES AND PROFITABILITY | ||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 1,735,030 | $ | 569,579 | $ | 505,356 | $ | 353,434 | $ | 306,661 | $ | 1,193,962 | $ | 425,160 | $ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | ||||||||||||||||||||||
Gross profit margin | 16.6 | % | 19.3 | % | 19.4 | % | 15.3 | % | 8.4 | % | 18.9 | % | 18.8 | % | 20.0 | % | 18.4 | % | 17.9 | % | 17.9 | % | ||||||||||||||||||||||
EBITDA | 154,185 | 71,103 | 53,786 | 27,111 | 2,185 | 105,660 | 38,363 | 30,336 | 19,769 | 17,192 | 62,949 | |||||||||||||||||||||||||||||||||
Trailing twelve month EBITDA | 154,185 | 154,185 | 121,445 | 97,995 | 90,653 | 105,660 | 105,660 | 86,678 | 71,220 | 68,885 | 62,949 | |||||||||||||||||||||||||||||||||
Trailing twelve month EBITDA margin | 8.9 | % | 8.9 | % | 7.6 | % | 7.0 | % | 7.0 | % | 8.8 | % | 8.8 | % | 8.6 | % | 8.0 | % | 8.6 | % | 8.4 | % | ||||||||||||||||||||||
Operating income (loss) | 120,261 | 59,722 | 51,267 | 17,607 | (8,335 | ) | 75,906 | 31,879 | 23,598 | 10,663 | 9,766 | 36,321 | ||||||||||||||||||||||||||||||||
Operating profit (loss) margin | 6.9 | % | 10.5 | % | 10.1 | % | 5.0 | % | -2.7 | % | 6.4 | % | 7.5 | % | 7.4 | % | 4.5 | % | 4.6 | % | 4.8 | % | ||||||||||||||||||||||
Net income (loss) margin | 3.3 | % | 6.3 | % | 4.5 | % | 2.1 | % | -2.8 | % | 2.2 | % | 3.6 | % | 2.7 | % | 0.9 | % | 0.2 | % | 1.6 | % | ||||||||||||||||||||||
Reported earnings (loss) per diluted share | $ | 1.20 | $ | .69 | $ | .47 | $ | .17 | $ | (.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)) | $ | (6,261 | ) | $ | (2,131 | ) | $ | (1,141 | ) | $ | (1,093 | ) | $ | (1,896 | ) | $ | (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 | ) | ||||||||||||||||||||||||||||
Net expenses on early extinguishment of debt | (6,493 | ) | (217 | ) | (6,276 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Currency effects (in Miscellaneous-net) | 5,826 | 1,419 | (961 | ) | 3,087 | 2,281 | (2,309 | ) | (1,171 | ) | (1,938 | ) | 675 | 125 | 5,422 | |||||||||||||||||||||||||||||
Bad debt charges (in SA&PD) | (6,977 | ) | (2,533 | ) | (1,364 | ) | (1,948 | ) | (1,132 | ) | (11,560 | ) | (3,819 | ) | (2,376 | ) | (4,273 | ) | (1,092 | ) | (7,024 | ) | ||||||||||||||||||||||
Inventory charges (in COS) | (4,423 | ) | (1,244 | ) | (1,279 | ) | (308 | ) | (1,592 | ) | (4,519 | ) | (1,374 | ) | (196 | ) | (1,622 | ) | (1,327 | ) | (4,463 | ) | ||||||||||||||||||||||
Early vesting incentives (in both COS, SA&PD) | (1,658 | ) | — | (227 | ) | (436 | ) | (995 | ) | (1,771 | ) | — | (577 | ) | (1,194 | ) | — | — | ||||||||||||||||||||||||||
Other Incentive pay (in both COS, SA&PD) | (22,194 | ) | (14,810 | ) | (7,384 | ) | — | — | (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) | (64,753 | ) | (8,702 | ) | (8,307 | ) | (20,980 | ) | (26,764 | ) | (4,695 | ) | (4,695 | ) | — | — | — | — | ||||||||||||||||||||||||||
NET INCOME | ||||||||||||||||||||||||||||||||||||||||||||
Integration expenses — OmniQuip (in both COS, SA&PD) | (3,846 | ) | (1,325 | ) | (687 | ) | (692 | ) | (1,191 | ) | (10,160 | ) | (3,194 | ) | (1,860 | ) | (2,591 | ) | (2,504 | ) | — | |||||||||||||||||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | — | — | — | — | — | (76 | ) | 2 | (1 | ) | (36 | ) | (40 | ) | (3,333 | ) | ||||||||||||||||||||||||||||
Net expenses on early extinguishment of debt | (3,988 | ) | (135 | ) | (3,778 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Currency effects (in Miscellaneous-net) | 3,578 | 882 | (579 | ) | 1,954 | 1,432 | (1,469 | ) | (745 | ) | (1,240 | ) | 422 | 80 | 4,473 | |||||||||||||||||||||||||||||
Bad debt charges (in SA&PD) | (4,285 | ) | (1,575 | ) | (821 | ) | (1,233 | ) | (711 | ) | (7,352 | ) | (2,429 | ) | (1,521 | ) | (2,671 | ) | (701 | ) | (5,795 | ) | ||||||||||||||||||||||
Inventory charges (in COS) | (2,717 | ) | (774 | ) | (770 | ) | (195 | ) | (1,000 | ) | (2,874 | ) | (874 | ) | (125 | ) | (1,014 | ) | (852 | ) | (3,682 | ) | ||||||||||||||||||||||
Benefit from change in effective income tax rate | — | — | — | — | — | — | — | — | — | — | 2,051 | |||||||||||||||||||||||||||||||||
Early vesting incentives (in both COS, SA&PD) | (1,018 | ) | — | (137 | ) | (276 | ) | (625 | ) | (1,126 | ) | — | (369 | ) | (746 | ) | — | — | ||||||||||||||||||||||||||
Other Incentive pay (in both COS, SA&PD) | (13,632 | ) | (9,209 | ) | (4,445 | ) | — | — | (10,763 | ) | (7,673 | ) | (3,109 | ) | — | — | (2,149 | ) | ||||||||||||||||||||||||||
Restatement expenses (in SA&PD) | — | — | — | — | — | (804 | ) | (131 | ) | (677 | ) | — | — | — | ||||||||||||||||||||||||||||||
Estimated net unrecovered steel cost (in COS) (2) | (39,771 | ) | (5,411 | ) | (5,001 | ) | (13,280 | ) | (16,808 | ) | (2,986 | ) | (2,986 | ) | — | — | — | — | ||||||||||||||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||||||||||||||||||||||||||||||
Integration expenses — OmniQuip (in both COS, SA&PD) | (0.08 | ) | (0.03 | ) | (0.01 | ) | (0.02 | ) | (0.03 | ) | (0.23 | ) | (0.07 | ) | (0.04 | ) | (0.06 | ) | (0.06 | ) | — | |||||||||||||||||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | — | — | — | — | — | — | — | — | — | — | (0.08 | ) | ||||||||||||||||||||||||||||||||
Net expenses on early extinguishment of debt | (0.08 | ) | — | (0.08 | ) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Currency effects (in Miscellaneous-net) | 0.07 | 0.02 | (0.01 | ) | 0.04 | 0.03 | (0.03 | ) | (0.02 | ) | (0.03 | ) | 0.01 | — | 0.10 | |||||||||||||||||||||||||||||
Bad debt charges (in SA&PD) | (0.09 | ) | (0.03 | ) | (0.02 | ) | (0.03 | ) | (0.02 | ) | (0.17 | ) | (0.05 | ) | (0.03 | ) | (0.06 | ) | (0.02 | ) | (0.14 | ) | ||||||||||||||||||||||
Inventory charges (in COS) | (0.06 | ) | (0.01 | ) | (0.02 | ) | — | (0.02 | ) | (0.07 | ) | (0.02 | ) | — | (0.02 | ) | (0.02 | ) | (0.09 | ) | ||||||||||||||||||||||||
Benefit from change in effective income tax rate | — | — | — | — | — | — | — | — | — | — | 0.05 | |||||||||||||||||||||||||||||||||
Early vesting incentives (in both COS, SA&PD) | (0.02 | ) | — | — | (0.01 | ) | (0.01 | ) | (0.03 | ) | — | (0.01 | ) | (0.02 | ) | — | — | |||||||||||||||||||||||||||
Other Incentive pay (in both COS, SA&PD) | (0.29 | ) | (0.18 | ) | (0.09 | ) | — | — | (0.24 | ) | (0.17 | ) | (0.07 | ) | — | — | (0.05 | ) | ||||||||||||||||||||||||||
Restatement expenses (in SA&PD) | — | — | — | — | — | (0.02 | ) | — | (0.02 | ) | — | — | — | |||||||||||||||||||||||||||||||
Estimated net unrecovered steel cost (in COS) (2) | (0.83 | ) | (0.10 | ) | (0.10 | ) | (0.30 | ) | (0.39 | ) | (0.07 | ) | (0.07 | ) | — | — | — | — | ||||||||||||||||||||||||||
BALANCE SHEET & LIQUIDITY MEASURES | ||||||||||||||||||||||||||||||||||||||||||||
Cash & cash equivalents | $ | 223,597 | $ | 223,597 | $ | 97,531 | $ | 24,305 | $ | 66,498 | $ | 37,656 | $ | 37,656 | $ | 12,945 | $ | 18,125 | $ | 11,288 | $ | 132,809 | ||||||||||||||||||||||
Marketable securities | — | — | 74,949 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Trade accounts and finance receivables, net | 419,866 | 419,866 | 377,190 | 354,350 | 333,316 | 400,597 | 400,597 | 413,000 | 365,745 | 331,682 | 302,021 | |||||||||||||||||||||||||||||||||
Inventories | 169,097 | 169,097 | 185,370 | 182,606 | 170,731 | 154,405 | 154,405 | 164,160 | 150,074 | 153,200 | 122,675 | |||||||||||||||||||||||||||||||||
Total balance sheet debt | 289,351 | 289,351 | 299,075 | 383,534 | 389,609 | 423,534 | 423,534 | 465,094 | 464,609 | 467,422 | 460,570 | |||||||||||||||||||||||||||||||||
Limited recourse debt from finance receivables monetizations | 63,658 | 63,658 | 70,586 | 77,601 | 85,733 | 121,794 | 121,794 | 135,453 | 150,283 | 153,541 | 164,940 | |||||||||||||||||||||||||||||||||
Net debt (3) | 2,096 | 2,096 | 59,248 | 286,092 | 242,381 | 269,553 | 269,553 | 323,186 | 303,408 | 310,498 | 171,103 | |||||||||||||||||||||||||||||||||
Net debt (3) to total capitalization | 0 | % | 0 | % | 12 | % | 50 | % | 47 | % | 49 | % | 49 | % | 55 | % | 55 | % | 56 | % | 41 | % | ||||||||||||||||||||||
Maximum loss exposure under loss pool agreements related to both finance receivable monetizations and third-party financing | 29,713 | 29,713 | 28,179 | 27,203 | 26,068 | 25,161 | 25,161 | 23,757 | 24,460 | 23,380 | 21,708 | |||||||||||||||||||||||||||||||||
Equity | 478,592 | 478,592 | 436,238 | 284,746 | 276,780 | 281,270 | 281,270 | 264,018 | 252,252 | 248,911 | 247,714 | |||||||||||||||||||||||||||||||||
Working capital | 489,187 | 489,187 | 451,660 | 340,786 | 328,671 | 340,552 | 340,552 | 353,696 | 336,107 | 321,950 | 382,763 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 28,899 | 7,365 | 7,488 | 6,958 | 7,088 | 25,681 | 5,070 | 7,359 | 6,766 | 6,486 | 19,937 | |||||||||||||||||||||||||||||||||
Capital expenditures, net of retirements | 13,435 | 8,282 | 490 | 2,010 | 2,653 | 11,978 | 3,597 | 2,094 | 2,858 | 3,429 | 10,324 | |||||||||||||||||||||||||||||||||
Free cash flow (4) | 267,457 | 57,152 | 226,844 | (43,711 | ) | 27,172 | (98,450 | ) | 53,633 | (19,778 | ) | 7,090 | (139,395 | ) | 27,781 | |||||||||||||||||||||||||||||
FINANCIAL RATIOS | ||||||||||||||||||||||||||||||||||||||||||||
Days sales outstanding | 57.1 | 57.1 | 55.4 | 83.7 | 92.0 | 78.4 | 78.4 | 106.0 | 115.4 | 106.0 | 102.7 | |||||||||||||||||||||||||||||||||
Days payables outstanding | 50.5 | 50.5 | 55.7 | 46.5 | 54.6 | 57.0 | 57.0 | 65.1 | 58.6 | 54.0 | 70.8 | |||||||||||||||||||||||||||||||||
Inventory turnover (annualized) | 7.6 | 7.6 | 6.9 | 6.4 | 5.9 | 5.8 | 5.8 | 5.1 | 4.6 | 3.8 | 3.4 |
(1) | Net of the quarter and annual effective tax rates. 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 in 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 of 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 6
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share data)
(Quarterly data is unaudited)
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, | May 1, | January 30, | October 31, | Ended | July 31, | April 25, | January 25, | October 26, | Ended | ||||||||||||||||||||||||||||||||||
July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | ||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,713,782 | $ | 563,805 | $ | 499,899 | $ | 347,947 | $ | 302,131 | $ | 1,170,186 | $ | 418,605 | $ | 312,650 | $ | 230,539 | $ | 208,392 | $ | 724,819 | ||||||||||||||||||||||
Financial products | 11,915 | 2,826 | 3,373 | 3,056 | 2,660 | 15,203 | 4,172 | 3,913 | 3,442 | 3,676 | 19,184 | |||||||||||||||||||||||||||||||||
Rentals | 9,333 | 2,948 | 2,084 | 2,431 | 1,870 | 8,573 | 2,383 | 2,124 | 2,549 | 1,517 | 7,125 | |||||||||||||||||||||||||||||||||
1,735,030 | 569,579 | 505,356 | 353,434 | 306,661 | 1,193,962 | 425,160 | 318,687 | 236,530 | 213,585 | 751,128 | ||||||||||||||||||||||||||||||||||
Cost of sales | 1,447,785 | 459,893 | 407,464 | 299,462 | 280,966 | 968,562 | 345,110 | 255,050 | 193,083 | 175,319 | 616,686 | |||||||||||||||||||||||||||||||||
Gross profit | 287,245 | 109,686 | 97,892 | 53,972 | 25,695 | 225,400 | 80,050 | 63,637 | 43,447 | 38,266 | 134,442 | |||||||||||||||||||||||||||||||||
Gross profit margin | 16.6 | % | 19.3 | % | 19.4 | % | 15.3 | % | 8.4 | % | 18.9 | % | 18.8 | % | 20.0 | % | 18.4 | % | 17.9 | % | 17.9 | % | ||||||||||||||||||||||
Selling and administrative expenses | 142,383 | 43,927 | 39,524 | 30,810 | 28,122 | 128,465 | 42,348 | 34,052 | 28,349 | 23,716 | 79,225 | |||||||||||||||||||||||||||||||||
Selling & administrative % | 8.2 | % | 7.7 | % | 7.8 | % | 8.7 | % | 9.2 | % | 10.8 | % | 10.0 | % | 10.7 | % | 12.0 | % | 11.1 | % | 10.5 | % | ||||||||||||||||||||||
Product development expenses | 24,601 | 6,037 | 7,101 | 5,555 | 5,908 | 21,002 | 5,807 | 5,987 | 4,435 | 4,773 | 16,142 | |||||||||||||||||||||||||||||||||
Product development % | 1.4 | % | 1.1 | % | 1.4 | % | 1.6 | % | 1.9 | % | 1.8 | % | 1.4 | % | 1.9 | % | 1.9 | % | 2.2 | % | 2.1 | % | ||||||||||||||||||||||
Restructuring charges | — | — | — | — | — | 27 | 16 | — | — | 11 | 2,754 | |||||||||||||||||||||||||||||||||
Income (loss) from operations | 120,261 | 59,722 | 51,267 | 17,607 | (8,335 | ) | 75,906 | 31,879 | 23,598 | 10,663 | 9,766 | 36,321 | ||||||||||||||||||||||||||||||||
Operating profit (loss) margin | 6.9 | % | 10.5 | % | 10.1 | % | 5.0 | % | -2.7 | % | 6.4 | % | 7.5 | % | 7.4 | % | 4.5 | % | 4.6 | % | 4.8 | % | ||||||||||||||||||||||
Other income (deductions): | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (32,198 | ) | (6,326 | ) | (8,554 | ) | (8,322 | ) | (8,996 | ) | (38,098 | ) | (9,274 | ) | (9,400 | ) | (9,548 | ) | (9,876 | ) | (27,985 | ) | ||||||||||||||||||||||
Miscellaneous, net | 5,025 | 4,016 | (4,969 | ) | 2,546 | 3,432 | 4,073 | 1,414 | (621 | ) | 2,340 | 940 | 6,691 | |||||||||||||||||||||||||||||||
Income (loss) before taxes | 93,088 | 57,412 | 37,744 | 11,831 | (13,899 | ) | 41,881 | 24,019 | 13,577 | 3,455 | 830 | 15,027 | ||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 35,915 | 21,716 | 15,022 | 4,347 | (5,170 | ) | 15,232 | 8,748 | 4,890 | 1,297 | 297 | 2,635 | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | 57,173 | $ | 35,696 | $ | 22,722 | $ | 7,484 | $ | (8,729 | ) | $ | 26,649 | $ | 15,271 | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 12,392 | |||||||||||||||||||||
- | ||||||||||||||||||||||||||||||||||||||||||||
Return on revenues | 3.3 | % | 6.3 | % | 4.5 | % | 2.1 | % | -2.8 | % | 2.2 | % | 3.6 | % | 2.7 | % | 0.9 | % | 0.2 | % | 1.6 | % | ||||||||||||||||||||||
Earnings (loss) per common share | $ | 1.23 | $ | .71 | $ | .48 | $ | .17 | $ | (.20 | ) | $ | .62 | $ | .36 | $ | .20 | $ | .05 | $ | .01 | $ | .29 | |||||||||||||||||||||
- | ||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) per common share — assuming dilution | $ | 1.20 | $ | .69 | $ | .47 | $ | .17 | $ | (.20 | ) | $ | .61 | $ | .35 | $ | .20 | $ | .05 | $ | .01 | $ | .29 | |||||||||||||||||||||
- | ||||||||||||||||||||||||||||||||||||||||||||
Cash Dividends per share | $ | .020 | $ | .005 | $ | .005 | $ | .005 | $ | .005 | $ | .020 | $ | .005 | $ | .005 | $ | .005 | $ | .005 | $ | .020 | ||||||||||||||||||||||
- | ||||||||||||||||||||||||||||||||||||||||||||
Average basic shares outstanding | 46,529 | 50,361 | 47,091 | 43,798 | 43,277 | 42,860 | 42,955 | 42,836 | 42,791 | 42,656 | 42,601 | |||||||||||||||||||||||||||||||||
- | ||||||||||||||||||||||||||||||||||||||||||||
Average diluted shares outstanding | 47,793 | 51,656 | 48,287 | 44,988 | 43,277 | 44,032 | 44,191 | 44,013 | 44,152 | 43,575 | 42,866 | |||||||||||||||||||||||||||||||||
- |
JLG Industries, Inc. — Page 7
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
(Quarterly data is unaudited)
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
(Quarterly data is unaudited)
July 31, | May 1, | January 30, | October 31, | July 31, | April 25, | January 25, | October 26, | July 31, | ||||||||||||||||||||||||||||
2005 | 2005 | 2005 | 2004 | 2004 | 2004 | 2004 | 2003 | 2003 | ||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 223,597 | $ | 97,531 | $ | 24,305 | $ | 66,498 | $ | 37,656 | $ | 12,945 | $ | 18,125 | $ | 11,288 | $ | 132,809 | ||||||||||||||||||
Marketable securities | — | 74,949 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Trade accounts and finance receivables, net | 419,866 | 377,190 | 354,350 | 333,316 | 400,597 | 413,000 | 365,745 | 331,682 | 302,021 | |||||||||||||||||||||||||||
Inventories | 169,097 | 185,370 | 182,606 | 170,731 | 154,405 | 164,160 | 150,074 | 153,200 | 122,675 | |||||||||||||||||||||||||||
Other current assets | 56,739 | 58,753 | 47,466 | 45,739 | 41,058 | 42,086 | 27,441 | 54,252 | 46,474 | |||||||||||||||||||||||||||
Total current assets | 869,299 | 793,793 | 608,727 | 616,284 | 633,716 | 632,191 | 561,385 | 550,422 | 603,979 | |||||||||||||||||||||||||||
Property, plant and equipment, net | 85,855 | 78,270 | 82,387 | 89,443 | 91,504 | 88,277 | 90,862 | 92,525 | 79,699 | |||||||||||||||||||||||||||
Equipment held for rental, net | 22,570 | 27,220 | 23,163 | 26,842 | 21,190 | 18,687 | 22,903 | 18,236 | 19,651 | |||||||||||||||||||||||||||
Finance receivables, less current portion | 30,354 | 31,836 | 36,992 | 39,002 | 33,747 | 28,797 | 22,882 | 30,484 | 31,156 | |||||||||||||||||||||||||||
Pledged finance receivables, less current portion | 33,649 | 40,459 | 50,372 | 56,413 | 86,559 | 95,851 | 105,915 | 114,382 | 119,073 | |||||||||||||||||||||||||||
Goodwill | 61,641 | 63,134 | 63,165 | 63,017 | 62,885 | 66,501 | 66,501 | 66,450 | 29,509 | |||||||||||||||||||||||||||
Intangible assets, net | 32,086 | 33,465 | 33,848 | 34,590 | 35,240 | 32,979 | 33,709 | 34,448 | — | |||||||||||||||||||||||||||
Other assets | 68,143 | 56,848 | 80,420 | 66,991 | 62,603 | 66,434 | 67,961 | 66,002 | 53,135 | |||||||||||||||||||||||||||
$ | 1,203,597 | $ | 1,125,025 | $ | 979,074 | $ | 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 | $ | 1,496 | $ | 1,552 | $ | 3,744 | $ | 1,788 | $ | 1,729 | $ | 14,843 | $ | 1,758 | $ | 2,278 | $ | 1,472 | ||||||||||||||||||
Current portion of limited recourse debt from finance receivables monetizations | 29,642 | 29,708 | 26,660 | 26,725 | 32,585 | 37,086 | 40,824 | 40,153 | 45,279 | |||||||||||||||||||||||||||
Accounts payable | 200,323 | 194,588 | 139,742 | 150,600 | 139,990 | 123,984 | 92,762 | 68,197 | 83,408 | |||||||||||||||||||||||||||
Accrued expenses | 148,651 | 116,285 | 97,795 | 108,500 | 118,860 | 102,582 | 89,934 | 117,844 | 91,057 | |||||||||||||||||||||||||||
Total current liabilities | 380,112 | 342,133 | 267,941 | 287,613 | 293,164 | 278,495 | 225,278 | 228,472 | 221,216 | |||||||||||||||||||||||||||
Long-term debt, less current portion | 224,197 | 226,937 | 302,189 | 302,088 | 300,011 | 314,798 | 312,568 | 311,603 | 294,158 | |||||||||||||||||||||||||||
Limited recourse debt from finance receivables monetizations, less current portion | 34,016 | 40,878 | 50,941 | 59,008 | 89,209 | 98,367 | 109,459 | 113,388 | 119,661 | |||||||||||||||||||||||||||
Accrued post-retirement benefits | 31,113 | 30,801 | 30,423 | 30,211 | 29,666 | 28,798 | 27,998 | 27,199 | 26,179 | |||||||||||||||||||||||||||
Other long-term liabilities | 27,233 | 24,116 | 23,536 | 21,362 | 20,542 | 30,501 | 30,487 | 29,790 | 15,160 | |||||||||||||||||||||||||||
Provisions for contingencies | 28,334 | 23,922 | 19,298 | 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: 51,645; fiscal 2004 - 43,903; fiscal 2003 - 43,367 | 10,329 | 10,195 | 8,940 | 8,907 | 8,781 | 8,732 | 8,712 | 8,683 | 8,673 | |||||||||||||||||||||||||||
Additional paid-in capital | 180,696 | 163,974 | 37,087 | 35,111 | 29,571 | 25,883 | 24,725 | 23,789 | 23,597 | |||||||||||||||||||||||||||
Retained earnings | 310,516 | 275,077 | 252,579 | 245,319 | 254,268 | 239,215 | 230,746 | 228,806 | 228,490 | |||||||||||||||||||||||||||
Unearned compensation | (7,397 | ) | (2,642 | ) | (3,433 | ) | (4,019 | ) | (5,333 | ) | (2,856 | ) | (3,796 | ) | (5,145 | ) | (5,428 | ) | ||||||||||||||||||
Accumulated other comprehensive loss | (15,552 | ) | (10,366 | ) | (10,427 | ) | (8,538 | ) | (6,017 | ) | (6,956 | ) | (8,135 | ) | (7,222 | ) | (7,618 | ) | ||||||||||||||||||
Total shareholders’ equity | 478,592 | 436,238 | 284,746 | 276,780 | 281,270 | 264,018 | 252,252 | 248,911 | 247,714 | |||||||||||||||||||||||||||
$ | 1,203,597 | $ | 1,125,025 | $ | 979,074 | $ | 992,582 | $ | 1,027,444 | $ | 1,029,717 | $ | 972,118 | $ | 972,949 | $ | 936,202 | |||||||||||||||||||
JLG Industries, Inc. — Page 8
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(in thousands)
(Quarterly data is unaudited)
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, | May 1, | January 30, | October 31, | Ended | July 31, | April 25, | January 25, | October 26, | Ended | ||||||||||||||||||||||||||||||||||
July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | ||||||||||||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 57,173 | $ | 35,696 | $ | 22,722 | $ | 7,484 | $ | (8,729 | ) | $ | 26,649 | $ | 15,271 | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 12,392 | |||||||||||||||||||||
Adjustments to reconcile net income (loss) to cash flow from operating activities: | ||||||||||||||||||||||||||||||||||||||||||||
(Gain) loss on sale of property, plant and equipment | 948 | 828 | (22 | ) | (19 | ) | 161 | 319 | 52 | 214 | (240 | ) | 293 | 266 | ||||||||||||||||||||||||||||||
(Gain) loss on sale of equipment held for rental | (11,711 | ) | (3,791 | ) | (1,286 | ) | (5,334 | ) | (1,300 | ) | (12,451 | ) | (12,568 | ) | (1,247 | ) | 44 | 1,320 | (6,794 | ) | ||||||||||||||||||||||||
Non-cash charges and credits: | ||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 28,899 | 7,365 | 7,488 | 6,958 | 7,088 | 25,681 | 5,070 | 7,359 | 6,766 | 6,486 | 19,937 | |||||||||||||||||||||||||||||||||
Other | 6,986 | (5,953 | ) | 6,225 | 3,965 | 2,749 | 17,006 | (1,173 | ) | 5,977 | 8,548 | 3,654 | 7,869 | |||||||||||||||||||||||||||||||
Changes in selected working capital items: | ||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable | (25,948 | ) | (42,151 | ) | (16,355 | ) | (29,659 | ) | 62,217 | (66,296 | ) | 18,059 | (57,552 | ) | (27,823 | ) | 1,020 | (35,324 | ) | |||||||||||||||||||||||||
Inventories | (15,268 | ) | 16,321 | (3,463 | ) | (11,758 | ) | (16,368 | ) | 9,188 | 13,060 | (14,053 | ) | 3,296 | 6,885 | 43,137 | ||||||||||||||||||||||||||||
Accounts payable | 60,423 | 5,868 | 54,834 | (10,833 | ) | 10,554 | 33,207 | 11,982 | 31,428 | 24,751 | (34,954 | ) | (46,026 | ) | ||||||||||||||||||||||||||||||
Other operating assets and liabilities | 30,623 | 38,335 | 7,188 | (2,340 | ) | (12,560 | ) | 13,506 | 21,266 | (3,515 | ) | (4,289 | ) | 44 | (12,706 | ) | ||||||||||||||||||||||||||||
Changes in finance receivables | 1,877 | 1,459 | 1,944 | 6,970 | (8,496 | ) | (6,112 | ) | (6,756 | ) | (2,181 | ) | 1,770 | 1,055 | 40,487 | |||||||||||||||||||||||||||||
Changes in pledged finance receivables | 36 | (190 | ) | (248 | ) | (917 | ) | 1,391 | (14,866 | ) | 224 | 1,537 | (1,175 | ) | (15,452 | ) | (114,271 | ) | ||||||||||||||||||||||||||
Changes in other assets and liabilities | 8,374 | 495 | 21,946 | (12,920 | ) | (1,147 | ) | (11,090 | ) | (4,408 | ) | (1,921 | ) | (862 | ) | (3,899 | ) | (3,295 | ) | |||||||||||||||||||||||||
Cash flow from operating activities | 142,412 | 54,282 | 100,973 | (48,403 | ) | 35,560 | 14,741 | 60,079 | (25,267 | ) | 12,944 | (33,015 | ) | (94,328 | ) | |||||||||||||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||
Purchases of property, plant and equipment | (15,443 | ) | (9,134 | ) | (1,342 | ) | (2,072 | ) | (2,895 | ) | (12,387 | ) | (3,522 | ) | (2,435 | ) | (2,619 | ) | (3,811 | ) | (10,806 | ) | ||||||||||||||||||||||
Proceeds from sale of property, plant and equipment | 1,060 | 24 | 874 | 81 | 81 | 90 | (127 | ) | 127 | 1 | 89 | 216 | ||||||||||||||||||||||||||||||||
Purchases of equipment held for rental | (31,249 | ) | (5,590 | ) | (6,719 | ) | (8,851 | ) | (10,089 | ) | (26,689 | ) | (10,246 | ) | (4,491 | ) | (9,743 | ) | (2,209 | ) | (16,342 | ) | ||||||||||||||||||||||
Proceeds from sale of equipment held for rental | 35,065 | 11,775 | 3,103 | 16,037 | 4,150 | 33,269 | 20,563 | 8,008 | 3,557 | 1,141 | 19,063 | |||||||||||||||||||||||||||||||||
Purchases of held-to-maturity securities | (224,987 | ) | — | (224,987 | ) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Maturities of held-to-maturity securities | 224,987 | 74,949 | 150,038 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Cash portion of acquisitions | (105 | ) | — | — | (105 | ) | — | (109,557 | ) | (14,186 | ) | — | — | (95,371 | ) | — | ||||||||||||||||||||||||||||
Other | 366 | (35 | ) | 503 | (56 | ) | (46 | ) | 333 | (27 | ) | 507 | (101 | ) | (46 | ) | (689 | ) | ||||||||||||||||||||||||||
Cash flow from investing activities | (10,306 | ) | 71,989 | (78,530 | ) | 5,034 | (8,799 | ) | (114,941 | ) | (7,545 | ) | 1,716 | (8,905 | ) | (100,207 | ) | (8,558 | ) | |||||||||||||||||||||||||
FINANCING | ||||||||||||||||||||||||||||||||||||||||||||
Net issuance (repayment) of short-term debt | (6 | ) | (58 | ) | (1,961 | ) | 1,955 | 58 | 27 | (13,115 | ) | 13,084 | (536 | ) | 594 | (13,497 | ) | |||||||||||||||||||||||||||
Issuance of long-term debt | 156,018 | (38 | ) | 26,002 | 45,038 | 85,016 | 351,999 | 181,999 | 71,000 | 77,000 | 22,000 | 404,283 | ||||||||||||||||||||||||||||||||
Repayment of long-term debt | (232,666 | ) | (3,060 | ) | (99,374 | ) | (45,140 | ) | (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 | (925 | ) | (257 | ) | (224 | ) | (224 | ) | (220 | ) | (871 | ) | (219 | ) | (218 | ) | (218 | ) | (216 | ) | (859 | ) | ||||||||||||||||||||||
Net proceeds from issuance of common stock | 119,421 | (113 | ) | 119,534 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Exercise of stock options | 19,826 | 6,750 | 6,714 | 1,276 | 5,086 | 2,414 | 276 | 1,242 | 746 | 150 | 93 | |||||||||||||||||||||||||||||||||
Cash flow from financing activities | 61,668 | 3,224 | 50,691 | 2,905 | 4,848 | 4,789 | (27,261 | ) | 18,009 | 2,981 | 11,060 | 227,638 | ||||||||||||||||||||||||||||||||
CURRENCY ADJUSTMENTS | ||||||||||||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash | (7,833 | ) | (3,429 | ) | 92 | (1,729 | ) | (2,767 | ) | 258 | (562 | ) | 362 | (183 | ) | 641 | 1,852 | |||||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents | 185,941 | 126,066 | 73,226 | (42,193 | ) | 28,842 | (95,153 | ) | 24,711 | (5,180 | ) | 6,837 | (121,521 | ) | 126,604 | |||||||||||||||||||||||||||||
Beginning balance | 37,656 | 97,531 | 24,305 | 66,498 | 37,656 | 132,809 | 12,945 | 18,125 | 11,288 | 132,809 | 6,205 | |||||||||||||||||||||||||||||||||
Ending balance | $ | 223,597 | $ | 223,597 | $ | 97,531 | $ | 24,305 | $ | 66,498 | $ | 37,656 | $ | 37,656 | $ | 12,945 | $ | 18,125 | $ | 11,288 | $ | 132,809 | ||||||||||||||||||||||
JLG Industries, Inc. — Page 9
JLG INDUSTRIES, INC.
CONSOLIDATED SELECTED SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
(Quarterly data is unaudited)
CONSOLIDATED SELECTED SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
(Quarterly data is unaudited)
Fiscal Year | Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | ||||||||||||||||||||||||||||||||||||||||
Ended | July 31, | May 1, | January 30, | October 31, | Ended | July 31, | April 25, | January 25, | October 26, | Ended | ||||||||||||||||||||||||||||||||||
July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | ||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION REVENUES: | ||||||||||||||||||||||||||||||||||||||||||||
Machinery | $ | 1,461,401 | $ | 490,054 | $ | 437,595 | $ | 281,220 | $ | 252,532 | $ | 973,610 | $ | 351,123 | $ | 261,263 | $ | 192,266 | $ | 168,958 | $ | 594,484 | ||||||||||||||||||||||
Equipment Services | 259,878 | 75,145 | 64,313 | 69,070 | 51,350 | 204,454 | 69,559 | 53,258 | 40,822 | 40,815 | 136,737 | |||||||||||||||||||||||||||||||||
Access Financial Solutions | 13,751 | 4,380 | 3,448 | 3,144 | 2,779 | 15,898 | 4,478 | 4,166 | 3,442 | 3,812 | 19,907 | |||||||||||||||||||||||||||||||||
$ | 1,735,030 | $ | 569,579 | $ | 505,356 | $ | 353,434 | $ | 306,661 | $ | 1,193,962 | $ | 425,160 | $ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | |||||||||||||||||||||||
SEGMENT PROFIT (LOSS): | ||||||||||||||||||||||||||||||||||||||||||||
Machinery | $ | 111,974 | $ | 63,786 | $ | 51,995 | $ | 9,533 | $ | (13,340 | ) | $ | 70,844 | $ | 27,520 | $ | 25,190 | $ | 11,541 | $ | 6,593 | $ | 25,513 | |||||||||||||||||||||
Equipment services | 72,878 | 19,533 | 17,867 | 19,711 | 15,767 | 59,760 | 20,725 | 15,158 | 12,809 | 11,068 | 27,119 | |||||||||||||||||||||||||||||||||
Access Financial Solutions | 4,420 | 2,303 | 1,211 | 712 | 194 | 1,695 | 990 | 694 | (273 | ) | 284 | 3,990 | ||||||||||||||||||||||||||||||||
General corporate expenses | (75,407 | ) | (27,103 | ) | (21,254 | ) | (13,801 | ) | (13,249 | ) | (67,308 | ) | (19,898 | ) | (20,229 | ) | (16,088 | ) | (11,093 | ) | (32,001 | ) | ||||||||||||||||||||||
Segment profit (loss) | 113,865 | 58,519 | 49,819 | 16,155 | (10,628 | ) | 64,991 | 29,337 | 20,813 | 7,989 | 6,852 | 24,621 | ||||||||||||||||||||||||||||||||
Add: AFS’ interest expense | 6,396 | 1,203 | 1,448 | 1,452 | 2,293 | 10,915 | 2,542 | 2,785 | 2,674 | 2,914 | 11,700 | |||||||||||||||||||||||||||||||||
Operating Income (Loss) | $ | 120,261 | $ | 59,722 | $ | 51,267 | $ | 17,607 | $ | (8,335 | ) | $ | 75,906 | $ | 31,879 | $ | 23,598 | $ | 10,663 | $ | 9,766 | $ | 36,321 | |||||||||||||||||||||
PRODUCT GROUP REVENUES | ||||||||||||||||||||||||||||||||||||||||||||
Aerial work platforms | $ | 888,073 | $ | 313,962 | $ | 278,071 | $ | 171,517 | $ | 124,523 | $ | 562,056 | $ | 217,425 | $ | 146,017 | $ | 109,354 | $ | 89,260 | $ | 428,564 | ||||||||||||||||||||||
Telehandlers | 511,766 | 157,948 | 141,660 | 92,490 | 119,668 | 358,865 | 117,510 | 99,439 | 69,908 | 72,008 | 117,475 | |||||||||||||||||||||||||||||||||
Excavators | 61,562 | 18,144 | 17,864 | 17,213 | 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 | 252,381 | 73,751 | 62,304 | 66,727 | 49,599 | 196,576 | 67,482 | 51,387 | 38,273 | 39,434 | 130,335 | |||||||||||||||||||||||||||||||||
Financial products | 11,915 | 2,826 | 3,373 | 3,056 | 2,660 | 15,203 | 4,172 | 3,913 | 3,442 | 3,676 | 19,184 | |||||||||||||||||||||||||||||||||
Rentals | 9,333 | 2,948 | 2,084 | 2,431 | 1,870 | 8,573 | 2,383 | 2,124 | 2,549 | 1,517 | 7,125 | |||||||||||||||||||||||||||||||||
$ | 1,735,030 | $ | 569,579 | $ | 505,356 | $ | 353,434 | $ | 306,661 | $ | 1,193,962 | $ | 425,160 | $ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | |||||||||||||||||||||||
GEOGRAPHIC REVENUES | ||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 1,311,450 | $ | 437,066 | $ | 379,624 | $ | 256,027 | $ | 238,733 | $ | 923,696 | $ | 327,498 | $ | 246,985 | $ | 177,542 | $ | 171,671 | $ | 546,494 | ||||||||||||||||||||||
Europe | 264,032 | 84,126 | 86,224 | 56,819 | 36,863 | 178,392 | 66,076 | 48,079 | 40,286 | 23,951 | 145,038 | |||||||||||||||||||||||||||||||||
Other international | 159,548 | 48,387 | 39,508 | 40,588 | 31,065 | 91,874 | 31,586 | 23,623 | 18,702 | 17,963 | 59,596 | |||||||||||||||||||||||||||||||||
$ | 1,735,030 | $ | 569,579 | $ | 505,356 | $ | 353,434 | $ | 306,661 | $ | 1,193,962 | $ | 425,160 | $ | 318,687 | $ | 236,530 | $ | 213,585 | $ | 751,128 | |||||||||||||||||||||||
JLG Industries, Inc. — Page 10
JLG INDUSTRIES, INC.
EBITDA
QUARTERLY PERIODS
(in thousands)
EBITDA
QUARTERLY PERIODS
(in thousands)
July 31, | May 1, | January 30, | October 31, | July 31, | April 25, | January 25, | October 26, | July 31, | ||||||||||||||||||||||||||||
2005 | 2005 | 2005 | 2004 | 2004 | 2004 | 2004 | 2003 | 2003 | ||||||||||||||||||||||||||||
Net income (loss) | $ | 35,696 | $ | 22,722 | $ | 7,484 | ($ | 8,729 | ) | $ | 15,271 | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 5,672 | |||||||||||||||||
Interest expense | 6,326 | 8,554 | 8,322 | 8,996 | 9,274 | 9,400 | 9,548 | 9,876 | 9,645 | |||||||||||||||||||||||||||
Income tax provision (benefit) | 21,716 | 15,022 | 4,347 | (5,170 | ) | 8,748 | 4,890 | 1,297 | 297 | (527 | ) | |||||||||||||||||||||||||
Depreciation and amortization | 7,365 | 7,488 | 6,958 | 7,088 | 5,070 | 7,359 | 6,766 | 6,486 | 4,591 | |||||||||||||||||||||||||||
EBITDA | $ | 71,103 | $ | 53,786 | $ | 27,111 | $ | 2,185 | $ | 38,363 | $ | 30,336 | $ | 19,769 | $ | 17,192 | $ | 19,381 | ||||||||||||||||||
We 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 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.
EBITDA AND EBITDA MARGINS
TRAILING TWELVE MONTH PERIODS
(in thousands)
EBITDA AND EBITDA MARGINS
TRAILING TWELVE MONTH PERIODS
(in thousands)
July 31, | May 1, | January 30, | October 31, | July 31, | April 25, | January 25, | October 26, | July 31, | ||||||||||||||||||||||||||||
2005 | 2005 | 2005 | 2004 | 2004 | 2004 | 2004 | 2003 | 2003 | ||||||||||||||||||||||||||||
Net income | $ | 57,173 | $ | 36,748 | $ | 22,713 | $ | 17,387 | $ | 26,649 | $ | 17,050 | $ | 10,528 | $ | 12,596 | $ | 12,392 | ||||||||||||||||||
Interest expense | 32,198 | 35,146 | 35,992 | 37,218 | 38,098 | 38,469 | 35,833 | 32,357 | 27,985 | |||||||||||||||||||||||||||
Income tax provision | 35,915 | 22,947 | 12,815 | 9,765 | 15,232 | 5,957 | 2,085 | 2,777 | 2,635 | |||||||||||||||||||||||||||
Depreciation and amortization | 28,899 | 26,604 | 26,475 | 26,283 | 25,681 | 25,202 | 22,774 | 21,155 | 19,937 | |||||||||||||||||||||||||||
EBITDA | $ | 154,185 | $ | 121,445 | $ | 97,995 | $ | 90,653 | $ | 105,660 | $ | 86,678 | $ | 71,220 | $ | 68,885 | $ | 62,949 | ||||||||||||||||||
Revenues | $ | 1,735,030 | $ | 1,590,611 | $ | 1,403,942 | $ | 1,287,038 | $ | 1,193,962 | $ | 1,002,360 | $ | 889,443 | $ | 804,226 | $ | 751,128 | ||||||||||||||||||
EBITDA Margin | 8.9 | % | 7.6 | % | 7.0 | % | 7.0 | % | 8.8 | % | 8.6 | % | 8.0 | % | 8.6 | % | 8.4 | % | ||||||||||||||||||
We 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 from measures of EBITDA calculated for purposes of financial covenants in our note indentures and senior credit facilities.
JLG Industries, Inc. — Page 12
JLG INDUSTRIES, INC.
NET DEBT
(in thousands)
NET DEBT
(in thousands)
July 31, | May 1, | January 30, | October 31, | July 31, | April 25, | January 25, | October 26, | July 31, | ||||||||||||||||||||||||||||
2005 | 2005 | 2005 | 2004 | 2004 | 2004 | 2004 | 2003 | 2003 | ||||||||||||||||||||||||||||
Revolving credit facilities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 14,000 | $ | — | $ | — | $ | — | ||||||||||||||||||
$15 million cash management facility | — | — | 1,944 | — | — | 13,129 | — | 567 | — | |||||||||||||||||||||||||||
$125 million senior notes | 109,975 | 112,975 | 125,000 | 125,000 | 125,000 | 125,000 | 125,000 | 125,000 | 125,000 | |||||||||||||||||||||||||||
$175 million senior subordinated notes | 113,750 | 113,750 | 175,000 | 175,000 | 175,000 | 175,000 | 175,000 | 175,000 | 175,000 | |||||||||||||||||||||||||||
Miscellaneous debt | 4,859 | 5,014 | 5,128 | 5,219 | 5,236 | 5,321 | 15,465 | 15,554 | 1,983 | |||||||||||||||||||||||||||
Fair value of interest rate swaps | (5,909 | ) | (6,378 | ) | (6,120 | ) | (6,492 | ) | (8,814 | ) | (8,296 | ) | (6,795 | ) | (8,065 | ) | (12,347 | ) | ||||||||||||||||||
Gain on terminated interest rate swap | 3,018 | 3,128 | 4,981 | 5,149 | 5,318 | 5,487 | 5,656 | 5,825 | 5,994 | |||||||||||||||||||||||||||
Bank debt and notes | 225,693 | 228,489 | 305,933 | 303,876 | 301,740 | 329,641 | 314,326 | 313,881 | 295,630 | |||||||||||||||||||||||||||
Limited recourse debt from finance receivables monetizations * | 63,658 | 70,586 | 77,601 | 85,733 | 121,794 | 135,453 | 150,283 | 153,541 | 164,940 | |||||||||||||||||||||||||||
Total balance sheet debt | 289,351 | 299,075 | 383,534 | 389,609 | 423,534 | 465,094 | 464,609 | 467,422 | 460,570 | |||||||||||||||||||||||||||
Net present value of off-balance sheet rental fleet lease | — | 656 | 755 | 1,012 | 1,070 | 1,524 | 2,026 | 2,341 | 2,341 | |||||||||||||||||||||||||||
Net present value of off-balance sheet production equipment leases | — | 2,583 | 3,709 | 3,991 | 4,399 | 4,966 | 5,181 | 5,564 | 5,941 | |||||||||||||||||||||||||||
Total off-balance sheet financing | — | 3,239 | 4,464 | 5,003 | 5,469 | 6,490 | 7,207 | 7,905 | 8,282 | |||||||||||||||||||||||||||
Total balance sheet debt and off-balance sheet financing | 289,351 | 302,314 | 387,998 | 394,612 | 429,003 | 471,584 | 471,816 | 475,327 | 468,852 | |||||||||||||||||||||||||||
Less: cash, cash equivalents and marketable securities | 223,597 | 172,480 | 24,305 | 66,498 | 37,656 | 12,945 | 18,125 | 11,288 | 132,809 | |||||||||||||||||||||||||||
Less: limited recourse debt from finance receivables monetizations | 63,658 | 70,586 | 77,601 | 85,733 | 121,794 | 135,453 | 150,283 | 153,541 | 164,940 | |||||||||||||||||||||||||||
Net debt | $ | 2,096 | $ | 59,248 | $ | 286,092 | $ | 242,381 | $ | 269,553 | $ | 323,186 | $ | 303,408 | $ | 310,498 | $ | 171,103 | ||||||||||||||||||
Shareholders’ Equity | $ | 478,592 | $ | 436,238 | $ | 284,746 | $ | 276,780 | $ | 281,270 | $ | 264,018 | $ | 252,252 | $ | 248,911 | $ | 247,714 | ||||||||||||||||||
Net Debt-to-Net Debt plus Shareholders’ Equity | 0 | % | 12 | % | 50 | % | 47 | % | 49 | % | 55 | % | 55 | % | 56 | % | 41 | % | ||||||||||||||||||
Total Balance Sheet Debt-to-Total Balance Sheet Debt plus Shareholders’ Equity | 38 | % | 41 | % | 57 | % | 58 | % | 60 | % | 64 | % | 65 | % | 65 | % | 65 | % | ||||||||||||||||||
* Maximum loss exposure under loss pool agreements related to both finance receivable monetizations and third-party financing | $ | 29,713 | $ | 28,179 | $ | 27,203 | $ | 26,068 | $ | 25,161 | $ | 23,757 | $ | 24,460 | $ | 23,380 | $ | 21,708 | ||||||||||||||||||
We 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 13
JLG INDUSTRIES, INC.
FREE CASH FLOW
(in thousands)
FREE CASH FLOW
(in thousands)
Fiscal Year | Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | ||||||||||||||||||||||||||||||||||||||||
Ended | July 31, | May 1, | January 30, | October 31, | Ended | July 31, | April 25, | January 25, | October 26, | Ended | ||||||||||||||||||||||||||||||||||
July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | 2004 | 2004 | 2004 | 2003 | July 31, 2003 | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 57,173 | $ | 35,696 | $ | 22,722 | $ | 7,484 | ($8,729 | ) | $ | 26,649 | $ | 15,271 | $ | 8,687 | $ | 2,158 | $ | 533 | $ | 12,392 | ||||||||||||||||||||||
Adjustments to reconcile net income (loss) to cash flow from operating activities: | ||||||||||||||||||||||||||||||||||||||||||||
Non-cash items | 25,122 | (1,551 | ) | 12,405 | 5,570 | 8,698 | 30,555 | (8,619 | ) | 12,303 | 15,118 | 11,753 | 21,278 | |||||||||||||||||||||||||||||||
Accounts receivable | (25,948 | ) | (42,151 | ) | (16,355 | ) | (29,659 | ) | 62,217 | (66,296 | ) | 18,059 | (57,552 | ) | (27,823 | ) | 1,020 | (35,324 | ) | |||||||||||||||||||||||||
Inventories | (15,268 | ) | 16,321 | (3,463 | ) | (11,758 | ) | (16,368 | ) | 9,188 | 13,060 | (14,053 | ) | 3,296 | 6,885 | 43,137 | ||||||||||||||||||||||||||||
Other current assets | (12,553 | ) | 899 | (14,132 | ) | 3,497 | (2,817 | ) | 8,780 | (158 | ) | (14,211 | ) | 26,225 | (3,076 | ) | (15,960 | ) | ||||||||||||||||||||||||||
Accounts payable | 60,423 | 5,868 | 54,834 | (10,833 | ) | 10,554 | 33,207 | 11,982 | 31,428 | 24,751 | (34,954 | ) | (46,026 | ) | ||||||||||||||||||||||||||||||
Accrued expenses | 43,176 | 37,436 | 21,320 | (5,837 | ) | (9,743 | ) | 4,726 | 21,424 | 10,696 | (30,514 | ) | 3,120 | 3,254 | ||||||||||||||||||||||||||||||
Finance receivables | 1,877 | 1,459 | 1,944 | 6,970 | (8,496 | ) | (6,112 | ) | (6,756 | ) | (2,181 | ) | 1,770 | 1,055 | 40,487 | |||||||||||||||||||||||||||||
Other cash from operations | 8,374 | 495 | 21,946 | (12,920 | ) | (1,147 | ) | (11,090 | ) | (4,408 | ) | (1,921 | ) | (862 | ) | (3,899 | ) | (3,295 | ) | |||||||||||||||||||||||||
Purchases of property, plant and equipment | (15,443 | ) | (9,134 | ) | (1,342 | ) | (2,072 | ) | (2,895 | ) | (12,387 | ) | (3,522 | ) | (2,435 | ) | (2,619 | ) | (3,811 | ) | (10,806 | ) | ||||||||||||||||||||||
Proceeds from sale of property, plant and equipment | 1,060 | 24 | 874 | 81 | 81 | 90 | (127 | ) | 127 | 1 | 89 | 216 | ||||||||||||||||||||||||||||||||
Purchases of equipment held for rental | (31,249 | ) | (5,590 | ) | (6,719 | ) | (8,851 | ) | (10,089 | ) | (26,689 | ) | (10,246 | ) | (4,491 | ) | (9,743 | ) | (2,209 | ) | (16,342 | ) | ||||||||||||||||||||||
Proceeds from sale of equipment held for rental | 35,065 | 11,775 | 3,103 | 16,037 | 4,150 | 33,269 | 20,563 | 8,008 | 3,557 | 1,141 | 19,063 | |||||||||||||||||||||||||||||||||
Cash portion of acquisitions | (105 | ) | — | — | (105 | ) | — | (109,557 | ) | (14,186 | ) | — | — | (95,371 | ) | — | ||||||||||||||||||||||||||||
Other cash from investments | 366 | (35 | ) | 503 | (56 | ) | (46 | ) | 333 | (27 | ) | 507 | (101 | ) | (46 | ) | (689 | ) | ||||||||||||||||||||||||||
Payment of dividends | (925 | ) | (257 | ) | (224 | ) | (224 | ) | (220 | ) | (871 | ) | (219 | ) | (218 | ) | (218 | ) | (216 | ) | (859 | ) | ||||||||||||||||||||||
Net proceeds from issuance of common stock | 119,421 | (113 | ) | 119,534 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Exercise of stock options | 19,826 | 6,750 | 6,714 | 1,276 | 5,086 | 2,414 | 276 | 1,242 | 746 | 150 | 93 | |||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash | (7,833 | ) | (3,429 | ) | 92 | (1,729 | ) | (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) | 4,898 | 2,689 | 3,088 | (582 | ) | (297 | ) | (1,184 | ) | 1,931 | 3,924 | 1,531 | (8,570 | ) | 15,310 | |||||||||||||||||||||||||||||
Free Cash Flow | $ | 267,457 | $ | 57,152 | $ | 226,844 | ($43,711 | ) | $ | 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 14
JLG INDUSTRIES, INC.
STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
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, | ||||||||||||||||||||||
2005 | 2004 | 2005 | 2004 | 2005 | 2004 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Net sales | $ | 1,713,782 | $ | 1,170,186 | $ | 1,713,782 | $ | 1,170,186 | $ | — | $ | — | ||||||||||||
Financial products | 11,915 | 15,203 | — | — | 11,915 | 15,203 | ||||||||||||||||||
Rentals | 9,333 | 8,573 | 7,497 | 7,878 | 1,836 | 695 | ||||||||||||||||||
1,735,030 | 1,193,962 | 1,721,279 | 1,178,064 | 13,751 | 15,898 | |||||||||||||||||||
Cost of sales | 1,447,785 | 968,562 | 1,446,935 | 967,903 | 850 | 659 | ||||||||||||||||||
Gross profit | 287,245 | 225,400 | 274,344 | 210,161 | 12,901 | 15,239 | ||||||||||||||||||
Selling and administrative expenses | 142,383 | 128,465 | 140,298 | 125,836 | 2,085 | 2,629 | ||||||||||||||||||
Product development expenses | 24,601 | 21,002 | 24,601 | 21,002 | — | — | ||||||||||||||||||
Restructuring charges | — | 27 | — | 27 | — | — | ||||||||||||||||||
Income from operations | 120,261 | 75,906 | 109,445 | 63,296 | 10,816 | 12,610 | ||||||||||||||||||
Other income (deductions): | ||||||||||||||||||||||||
Interest expense | (32,198 | ) | (38,098 | ) | (25,802 | ) | (27,183 | ) | (6,396 | ) | (10,915 | ) | ||||||||||||
Miscellaneous, net | 5,025 | 4,073 | 5,025 | 4,073 | — | — | ||||||||||||||||||
Income before taxes | 93,088 | 41,881 | 88,668 | 40,186 | 4,420 | 1,695 | ||||||||||||||||||
Income tax provision | 35,915 | 15,232 | 34,209 | 14,615 | 1,706 | 617 | ||||||||||||||||||
Equity in income of Access Financial Solutions | — | — | 2,714 | 1,078 | — | — | ||||||||||||||||||
Net income | $ | 57,173 | $ | 26,649 | $ | 57,173 | $ | 26,649 | $ | 2,714 | $ | 1,078 | ||||||||||||
Earnings per common share | $ | 1.23 | $ | .62 | ||||||||||||||||||||
Earnings per common share — assuming dilution | $ | 1.20 | $ | .61 | ||||||||||||||||||||
Cash dividends per share | $ | .02 | $ | .02 | ||||||||||||||||||||
Weighted average shares outstanding | 46,529 | 42,860 | ||||||||||||||||||||||
Weighted average shares outstanding — assuming dilution | 47,793 | 44,032 | ||||||||||||||||||||||
JLG Industries, Inc. — Page 15
JLG INDUSTRIES, INC.
BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
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 | ||||||||||||||||||||||
July 31, | July 31, | July 31, | ||||||||||||||||||||||
2005 | 2004 | 2005 | 2004 | 2005 | 2004 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 223,597 | $ | 37,656 | $ | 223,597 | $ | 37,656 | $ | — | $ | — | ||||||||||||
Trade accounts and finance receivables — net | 419,866 | 400,597 | 373,417 | 332,154 | 46,449 | 68,443 | ||||||||||||||||||
Inventories | 169,097 | 154,405 | 169,097 | 154,405 | — | — | ||||||||||||||||||
Other current assets | 56,739 | 41,058 | 56,739 | 41,058 | — | — | ||||||||||||||||||
Total current assets | 869,299 | 633,716 | 822,850 | 565,273 | 46,449 | 68,443 | ||||||||||||||||||
Property, plant and equipment — net | 85,855 | 91,504 | 85,698 | 91,504 | 157 | — | ||||||||||||||||||
Equipment held for rental — net | 22,570 | 21,190 | 22,259 | 19,404 | 311 | 1,786 | ||||||||||||||||||
Finance receivables, less current portion | 30,354 | 33,747 | — | — | 30,354 | 33,747 | ||||||||||||||||||
Pledged receivables, less current portion | 33,649 | 86,559 | — | — | 33,649 | 86,559 | ||||||||||||||||||
Goodwill | 61,641 | 62,885 | 61,641 | 62,885 | — | — | ||||||||||||||||||
Intangible assets — net | 32,086 | 35,240 | 32,086 | 35,240 | — | — | ||||||||||||||||||
Investment in Access Financial Solutions | — | — | 40,485 | 37,771 | — | — | ||||||||||||||||||
Receivable from Access Financial Solutions | — | — | 5,868 | 31,398 | — | — | ||||||||||||||||||
Other assets | 68,143 | 62,603 | 68,009 | 61,955 | 134 | 648 | ||||||||||||||||||
$ | 1,203,597 | $ | 1,027,444 | $ | 1,138,896 | $ | 905,430 | $ | 111,054 | $ | 191,183 | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt and current portion of long-term debt | $ | 1,496 | $ | 1,729 | $ | 1,496 | $ | 1,729 | $ | — | $ | — | ||||||||||||
Current portion of limited recourse debt from finance receivables monetizations | 29,642 | 32,585 | — | — | 29,642 | 32,585 | ||||||||||||||||||
Accounts payable | 200,323 | 139,990 | 200,323 | 139,990 | — | — | ||||||||||||||||||
Accrued expenses | 148,651 | 118,860 | 148,615 | 118,652 | 36 | 208 | ||||||||||||||||||
Total current liabilities | 380,112 | 293,164 | 350,434 | 260,371 | 29,678 | 32,793 | ||||||||||||||||||
Long-term debt, less current portion | 224,197 | 300,011 | 224,197 | 300,011 | — | — | ||||||||||||||||||
Limited recourse debt from finance receivables monetizations, less current portion | 34,016 | 89,209 | — | — | 34,016 | 89,209 | ||||||||||||||||||
Payable to JLG Industries, Inc. | — | — | — | — | 5,868 | 31,398 | ||||||||||||||||||
Accrued post-retirement benefits | 31,113 | 29,666 | 31,113 | 29,666 | — | — | ||||||||||||||||||
Other long-term liabilities | 27,223 | 20,542 | 27,223 | 20,542 | — | — | ||||||||||||||||||
Provisions for contingencies | 28,334 | 13,582 | 27,327 | 13,570 | 1,007 | 12 | ||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Capital stock: | ||||||||||||||||||||||||
Authorized shares: 100,000 at $.20 par value Issued and outstanding shares: 51,645 shares; fiscal 2004 — 43,903 shares | 10,329 | 8,781 | 10,329 | 8,781 | 30,000 | 30,000 | ||||||||||||||||||
Additional paid-in capital | 180,696 | 29,571 | 180,696 | 29,571 | — | — | ||||||||||||||||||
Retained earnings | 310,516 | 254,268 | 310,516 | 254,268 | 10,485 | 7,771 | ||||||||||||||||||
Unearned compensation | (7,397 | ) | (5,333 | ) | (7,397 | ) | (5,333 | ) | — | — | ||||||||||||||
Accumulated other comprehensive loss | (15,552 | ) | (6,017 | ) | (15,552 | ) | (6,017 | ) | — | — | ||||||||||||||
Total shareholders’ equity | 478,592 | 281,270 | 478,592 | 281,270 | 40,485 | 37,771 | ||||||||||||||||||
$ | 1,203,587 | $ | 1,027,444 | $ | 1,138,886 | $ | 905,430 | $ | 111,054 | $ | 191,183 | |||||||||||||
JLG Industries, Inc. — Page 16
JLG INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
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 | ||||||||||||||||||||||
Fiscal Year Ended July 31, | Fiscal Year Ended July 31, | Fiscal Year Ended July 31, | ||||||||||||||||||||||
2005 | 2004 | 2005 | 2004 | 2005 | 2004 | |||||||||||||||||||
Operations | ||||||||||||||||||||||||
Net income | $ | 57,173 | $ | 26,649 | $ | 57,173 | $ | 26,649 | $ | 2,714 | $ | 1,078 | ||||||||||||
Adjustments to reconcile net income to cash flow from operating activities: | ||||||||||||||||||||||||
(Gain) loss on sale of property, plant and equipment | 948 | 319 | 948 | 319 | — | — | ||||||||||||||||||
(Gain) loss on sale of equipment held for rental | (11,711 | ) | (12,451 | ) | (11,711 | ) | (12,454 | ) | — | 3 | ||||||||||||||
Non-cash charges and credits: | ||||||||||||||||||||||||
Depreciation and amortization | 28,899 | 25,681 | 28,011 | 25,022 | 888 | 659 | ||||||||||||||||||
Other | 6,986 | 17,006 | 7,503 | 16,425 | (517 | ) | 581 | |||||||||||||||||
Changes in selected working capital items: | ||||||||||||||||||||||||
Accounts receivable | (25,948 | ) | (66,296 | ) | (45,612 | ) | (75,950 | ) | 19,664 | 9,654 | ||||||||||||||
Inventories | (15,268 | ) | 9,188 | (15,268 | ) | 9,188 | — | — | ||||||||||||||||
Accounts payable | 60,423 | 33,207 | 60,423 | 33,207 | — | — | ||||||||||||||||||
Other operating assets and liabilities | 30,623 | 13,506 | 30,795 | 13,635 | (172 | ) | (129 | ) | ||||||||||||||||
Changes in finance receivables | 1,877 | (6,112 | ) | — | — | 1,877 | (6,112 | ) | ||||||||||||||||
Changes in pledged finance receivables | 36 | (14,866 | ) | — | — | 36 | (14,866 | ) | ||||||||||||||||
Changes in other assets and liabilities | 8,374 | (11,090 | ) | 7,129 | (11,161 | ) | 1,245 | 71 | ||||||||||||||||
Cash flow from operating activities | 142,412 | 14,741 | 119,391 | 24,880 | 25,735 | (9,061 | ) | |||||||||||||||||
Investments | ||||||||||||||||||||||||
Purchases of property, plant and equipment | (15,443 | ) | (12,387 | ) | (15,248 | ) | (12,387 | ) | (195 | ) | — | |||||||||||||
Proceeds from the sale of property, plant and equipment | 1,060 | 90 | 1,060 | 90 | — | — | ||||||||||||||||||
Purchases of equipment held for rental | (31,249 | ) | (26,689 | ) | (31,236 | ) | (26,437 | ) | (13 | ) | (252 | ) | ||||||||||||
Proceeds from the sale of equipment held for rental | 35,065 | 33,269 | 35,065 | 33,269 | — | — | ||||||||||||||||||
Purchases of held-to-maturity securities | (224,987 | ) | — | (224,987 | ) | — | — | — | ||||||||||||||||
Maturities of held-to-maturity securities | 224,987 | — | 224,987 | — | — | — | ||||||||||||||||||
Cash portion of acquisitions | (105 | ) | (109,557 | ) | (105 | ) | (109,557 | ) | — | — | ||||||||||||||
Investment in income of Access Financial Solutions | — | — | (2,714 | ) | (1,078 | ) | — | — | ||||||||||||||||
Other | 366 | 333 | 366 | 333 | — | — | ||||||||||||||||||
Cash flow from investing activities | (10,306 | ) | (114,941 | ) | (12,812 | ) | (115,767 | ) | (208 | ) | (252 | ) | ||||||||||||
Financing | ||||||||||||||||||||||||
Net (decrease) increase in short-term debt | (6 | ) | 27 | (6 | ) | 27 | — | — | ||||||||||||||||
Issuance of long-term debt | 156,018 | 351,999 | 156,018 | 351,999 | — | — | ||||||||||||||||||
Repayment of long-term debt | (232,666 | ) | (362,506 | ) | (232,666 | ) | (362,506 | ) | — | — | ||||||||||||||
Issuance of limited recourse debt | — | 13,979 | — | — | — | 13,979 | ||||||||||||||||||
Repayment of limited recourse debt | — | (253 | ) | — | — | — | (253 | ) | ||||||||||||||||
Change in receivable from Access Financial Solutions | — | — | 25,530 | 4,264 | — | — | ||||||||||||||||||
Change in payable to JLG Industries, Inc. | — | — | — | — | (25,530 | ) | (4,264 | ) | ||||||||||||||||
Net proceeds from issuance of common stock | 119,421 | — | 119,421 | — | — | — | ||||||||||||||||||
Payment of dividends | (925 | ) | (871 | ) | (925 | ) | (871 | ) | — | — | ||||||||||||||
Exercise of stock options | 19,826 | 2,414 | 19,826 | 2,414 | — | — | ||||||||||||||||||
Cash flow from financing activities | 61,668 | 4,789 | 87,198 | (4,673 | ) | (25,530 | ) | 9,462 | ||||||||||||||||
Currency Adjustments | ||||||||||||||||||||||||
Effect of exchange rate changes on cash | (7,833 | ) | 258 | (7,836 | ) | 407 | 3 | (149 | ) | |||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||||||||
Net change in cash and cash equivalents | 185,941 | (95,153 | ) | 185,941 | (95,153 | ) | — | — | ||||||||||||||||
Beginning balance | 37,656 | 132,809 | 37,656 | 132,809 | — | — | ||||||||||||||||||
Ending balance | $ | 223,597 | $ | 37,656 | $ | 223,597 | $ | 37,656 | $ | — | $ | — | ||||||||||||
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