Exhibit 99.1
Press Release FOR IMMEDIATE RELEASE |
JLG Industries, Inc. 1 JLG Drive McConnellsburg, PA 17233-9533 Telephone (717) 485-5161 Fax (717) 485-6417 www.jlg.com | Contact: Juna Rowland Vice President — Corporate & Investor Relations (240) 313-1816, ir@jlg.com |
JLG REPORTS RECORD FIRST QUARTER EARNINGS
Revenues up 56 percent — Operating profit margin continues to improve
McConnellsburg, PA, November 16, 2005 — JLG Industries, Inc. (NYSE: JLG) today announced consolidated revenues of $478 million for its fiscal first quarter ended October 30, 2005, an increase of 56 percent from the same prior year period. Sales increased 49 percent in the U.S. and 81 percent internationally, year-over-year. The Company reported net income of $27.9 million, or $0.53 per diluted share, compared with a net loss of $8.7 million, or $0.20 per diluted share, for the prior year period.
“Our revenues reached a new record for the quarter, reflecting the continuing strength of demand for access products,” stated Bill Lasky, Chairman of the Board, President and Chief Executive Officer. “We’re building products at a record pace, and component deliveries from suppliers have improved dramatically. Our order board at quarter end increased to $849 million sequentially from $631 million last quarter, and is up substantially from $200 million last year. Costs associated with raw materials, particularly steel, are being managed as our pricing actions and ongoing cost reduction activities are taking effect, resulting in a return to a more normalized operating income. Despite recent reductions in the price of oil, the cost of freight and petroleum-based components are increasing, so an additional price increase of perhaps a couple of percentage points will be considered at the beginning of calendar year 2006.
“As announced on October 27, 2005, we are particularly pleased with the new alliance with Caterpillar Inc. to supply Cat-branded telehandlers. We are honored to have earned their confidence and endorsement of our manufacturing capabilities to produce high quality telehandlers reflective of the Cat brand. Our reputation for product innovation, quality, and after-sales service and support, coupled with Caterpillar’s global brand distribution expertise and component capabilities will offer Cat dealers around the world a broad product line to meet their customers’ needs.”
Cash flow from operations was $29.5 million for the current quarter compared to $35.6 million last year and trade working capital was 19 percent of sales versus 25 percent of sales. Trade receivable days sales outstanding decreased to 63 from 92 year-over-year and days payable outstanding were 46 versus 55, while
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JLG Industries, Inc. — page 2
inventory turns improved to 7.8 versus 5.9 year-over-year. Cash and cash equivalents was $231 million at October 30, 2005 versus $66.5 million in the prior period and net debt decreased by $250 million from the comparable period last year.
Outlook
Jim Woodward, Executive Vice President and Chief Financial Officer commented, “Our first quarter operating income improved significantly to $50.4 million, or 10.5 percent of revenues, compared to an operating loss of $8.3 million, or negative 2.7 percent of revenues for the prior period. This improvement represents an incremental operating margin of 34 percent reflecting realization of our previous pricing actions, cost reduction efforts, a favorable adjustment in inbound freight costs and a very favorable sales mix.
“We remain optimistic for the year. As we have previously stated, demand for our products is strong and the ability of our supply chain and facilities has been the limiting factor in our ability to take full advantage of this positive environment. Since our last update, we have been able to increase production schedules for selected models where capacity was still available, and divert planned additions to our rental fleet to sales. In addition, the investments for the recently announced Caterpillar alliance will provide additional capacity for JLG telehandlers beginning in the fourth quarter of fiscal 2006. As a result, we now project revenue growth in the 20 to 25 percent range for fiscal 2006 over 2005, up from our previous guidance of 15 to 20 percent growth.
“With this projected revenue growth, we are raising our targeted fiscal 2006 earnings per diluted share to a range of $2.15 to $2.25 from the previous guidance of $1.95 to $2.05. This projection continues to include investments in strategic initiatives of approximately $30 million, including the previously discussed $15 million for the expansion of our ServicePLUSTM operations, formation of the Commercial Solutions Group, reopening of the Bedford facility, Atlas II military telehandler development and other proprietary projects, plus the recent addition of roughly $16 million for design and capacity investments associated with our recently announced Caterpillar alliance.”
ConferenceCall
Management’s complete analysis of the Company’s quarterly results will be provided during a conference call on Thursday, November 17, 2005 at 2:00 p.m. Eastern Time. Within North America, access to the call is available by dialing (866) 362-5158, participant pass code 73492415. From international locations, call (617) 597-5397, 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.
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JLG Industries, Inc. — page 3
AboutJLG
JLG Industries, Inc. is the world’s leading producer of access equipment (aerial work platforms and telehandlers) and highway-speed telescopic hydraulic excavators. The Company’s diverse product portfolio encompasses leading brands such as JLG® aerial work platforms; JLG, SkyTrak®, Lull® and Gradall® telehandlers; Gradall excavators; and an array of complementary accessories that increase the versatility and efficiency of these products for end users. JLG markets its products and services through a multi-channel approach that includes a highly trained sales force and utilizes a broad range of marketing techniques, integrated supply programs and a network of distributors in the industrial, commercial, institutional and construction markets. In addition, JLG offers world-class after-sales service and support for its customers. JLG’s manufacturing facilities are located in the United States, Belgium, and France, with sales and service operations on six continents.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the following: (i) general economic and market conditions, including political and economic uncertainty in areas of the world where we do business; (ii) varying and seasonal levels of demand for our products and services; (iii) risks associated with acquisitions; (iv) credit risks from our financing of customer purchases; (v) risks arising from dependence on third-party suppliers; 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, 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, visitwww.jlg.com. NOTE: Information contained on our website is not incorporated by reference into this press release.
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JLG Industries, Inc. — Page 4
JLG INDUSTRIES, INC.
FINANCIAL DASHBOARD
(in thousands, except per share data and as otherwise identified)
FINANCIAL DASHBOARD
(in thousands, except per share data and as otherwise identified)
Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | |||||||||||||||||||||||||
October 30, | Ended | July 31, | May 1, | January 30, | October 31, | Ended | ||||||||||||||||||||||
2005 | July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | ||||||||||||||||||||||
REVENUES AND PROFITABILITY | ||||||||||||||||||||||||||||
Revenues | $ | 477,723 | $ | 1,735,030 | $ | 569,579 | $ | 505,356 | $ | 353,434 | $ | 306,661 | $ | 1,193,962 | ||||||||||||||
Gross profit margin | 19.9 | % | 16.6 | % | 19.3 | % | 19.4 | % | 15.3 | % | 8.4 | % | 18.9 | % | ||||||||||||||
EBITDA | 59,344 | 154,185 | 71,103 | 53,786 | 27,111 | 2,185 | 105,660 | |||||||||||||||||||||
Trailing twelve month EBITDA | 211,344 | 154,185 | 154,185 | 121,445 | 97,995 | 90,653 | 105,660 | |||||||||||||||||||||
Trailing twelve month EBITDA margin | 11.1 | % | 8.9 | % | 8.9 | % | 7.6 | % | 7.0 | % | 7.0 | % | 8.8 | % | ||||||||||||||
Operating income (loss) | 50,366 | 120,261 | 59,722 | 51,267 | 17,607 | (8,335 | ) | 75,906 | ||||||||||||||||||||
Operating profit (loss) margin | 10.5 | % | 6.9 | % | 10.5 | % | 10.1 | % | 5.0 | % | -2.7 | % | 6.4 | % | ||||||||||||||
Net income (loss) margin | 5.8 | % | 3.3 | % | 6.3 | % | 4.5 | % | 2.1 | % | -2.8 | % | 2.2 | % | ||||||||||||||
Reported earnings (loss) per diluted share | $ | 0.53 | $ | 1.20 | $ | .69 | $ | .47 | $ | .17 | $ | (.20 | ) | $ | .61 | |||||||||||||
IMPACT OF SELECTED ITEMS ON:(1) | ||||||||||||||||||||||||||||
income (expense) | ||||||||||||||||||||||||||||
PRE-TAX INCOME | ||||||||||||||||||||||||||||
Integration expenses (in both Cost of sales (COS), Selling & administrative and product development (SA&PD)) | $ | (845 | ) | $ | (6,261 | ) | $ | (2,131 | ) | $ | (1,141 | ) | $ | (1,093 | ) | $ | (1,896 | ) | $ | (15,975 | ) | |||||||
Restructuring and repositioning charges (in both COS, Restructuring) | — | — | — | — | — | — | (119 | ) | ||||||||||||||||||||
Net expenses on early extinguishment of debt | — | (6,493 | ) | (217 | ) | (6,276 | ) | — | — | — | ||||||||||||||||||
Currency effects (in Miscellaneous-net) | 731 | 5,826 | 1,419 | (961 | ) | 3,087 | 2,281 | (2,309 | ) | |||||||||||||||||||
Bad debt charges (in SA&PD) | (3,509 | ) | (6,977 | ) | (2,533 | ) | (1,364 | ) | (1,948 | ) | (1,132 | ) | (11,560 | ) | ||||||||||||||
Inventory charges (in COS) | (1,488 | ) | (4,423 | ) | (1,244 | ) | (1,279 | ) | (308 | ) | (1,592 | ) | (4,519 | ) | ||||||||||||||
Early vesting incentives (in both COS, SA&PD) | — | (1,658 | ) | — | (227 | ) | (436 | ) | (995 | ) | (1,771 | ) | ||||||||||||||||
Other Incentive pay (in both COS, SA&PD) | (4,846 | ) | (22,194 | ) | (14,810 | ) | (7,384 | ) | — | — | (16,923 | ) | ||||||||||||||||
Restatement expenses (in SA&PD) | — | — | — | — | — | — | (1,264 | ) | ||||||||||||||||||||
Estimated net unrecovered steel cost (in COS)(2) | (6,005 | ) | (64,753 | ) | (8,702 | ) | (8,307 | ) | (20,980 | ) | (26,764 | ) | (4,695 | ) | ||||||||||||||
NET INCOME | ||||||||||||||||||||||||||||
Integration expenses (in both COS, SA&PD) | (503 | ) | (3,846 | ) | (1,325 | ) | (687 | ) | (692 | ) | (1,191 | ) | (10,160 | ) | ||||||||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | — | — | — | — | — | — | (76 | ) | ||||||||||||||||||||
Net expenses on early extinguishment of debt | — | (3,988 | ) | (135 | ) | (3,778 | ) | — | — | — | ||||||||||||||||||
Currency effects (in Miscellaneous-net) | 435 | 3,578 | 882 | (579 | ) | 1,954 | 1,432 | (1,469 | ) | |||||||||||||||||||
Bad debt charges (in SA&PD) | (2,088 | ) | (4,285 | ) | (1,575 | ) | (821 | ) | (1,233 | ) | (711 | ) | (7,352 | ) | ||||||||||||||
Inventory charges (in COS) | (885 | ) | (2,717 | ) | (774 | ) | (770 | ) | (195 | ) | (1,000 | ) | (2,874 | ) | ||||||||||||||
Early vesting incentives (in both COS, SA&PD) | — | (1,018 | ) | — | (137 | ) | (276 | ) | (625 | ) | (1,126 | ) | ||||||||||||||||
Other Incentive pay (in both COS, SA&PD) | (2,883 | ) | (13,632 | ) | (9,209 | ) | (4,445 | ) | — | — | (10,763 | ) | ||||||||||||||||
Restatement expenses (in SA&PD) | — | — | — | — | — | — | (804 | ) | ||||||||||||||||||||
Estimated net unrecovered steel cost (in COS)(2) | (3,573 | ) | (39,771 | ) | (5,411 | ) | (5,001 | ) | (13,280 | ) | (16,808 | ) | (2,986 | ) | ||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||||||||||||||
Integration expenses (in both COS, SA&PD) | (0.01 | ) | (0.08 | ) | (0.03 | ) | (0.01 | ) | (0.02 | ) | (0.03 | ) | (0.23 | ) | ||||||||||||||
Restructuring and repositioning charges (in both COS, Restructuring) | — | — | — | — | — | — | — | |||||||||||||||||||||
Net expenses on early extinguishment of debt | — | (0.08 | ) | — | (0.08 | ) | — | — | — | |||||||||||||||||||
Currency effects (in Miscellaneous-net) | 0.01 | 0.07 | 0.02 | (0.01 | ) | 0.04 | 0.03 | (0.03 | ) | |||||||||||||||||||
Bad debt charges (in SA&PD) | (0.04 | ) | (0.09 | ) | (0.03 | ) | (0.02 | ) | (0.03 | ) | (0.02 | ) | (0.17 | ) | ||||||||||||||
Inventory charges (in COS) | (0.02 | ) | (0.06 | ) | (0.01 | ) | (0.02 | ) | — | (0.02 | ) | (0.07 | ) | |||||||||||||||
Early vesting incentives (in both COS, SA&PD) | — | (0.02 | ) | — | — | (0.01 | ) | (0.01 | ) | (0.03 | ) | |||||||||||||||||
Other Incentive pay (in both COS, SA&PD) | (0.05 | ) | (0.29 | ) | (0.18 | ) | (0.09 | ) | — | — | (0.24 | ) | ||||||||||||||||
Restatement expenses (in SA&PD) | — | — | — | — | — | — | (0.02 | ) | ||||||||||||||||||||
Estimated net unrecovered steel cost (in COS)(2) | (0.07 | ) | (0.83 | ) | (0.10 | ) | (0.10 | ) | (0.30 | ) | (0.39 | ) | (0.07 | ) | ||||||||||||||
BALANCE SHEET & LIQUIDITY MEASURES | ||||||||||||||||||||||||||||
Cash & cash equivalents | $ | 230,947 | $ | 223,597 | $ | 223,597 | $ | 172,480 | $ | 24,305 | $ | 66,498 | $ | 37,656 | ||||||||||||||
Trade accounts and finance receivables, net | 379,393 | 419,866 | 419,866 | 377,190 | 354,350 | 333,316 | 400,597 | |||||||||||||||||||||
Inventories | 218,881 | 169,097 | 169,097 | 185,370 | 182,606 | 170,731 | 154,405 | |||||||||||||||||||||
Total balance sheet debt | 278,877 | 289,351 | 289,351 | 299,075 | 383,534 | 389,609 | 423,534 | |||||||||||||||||||||
Limited recourse debt from finance receivables monetizations | 55,921 | 63,658 | 63,658 | 70,586 | 77,601 | 85,733 | 121,794 | |||||||||||||||||||||
Net debt(3) | (7,991 | ) | 2,096 | 2,096 | 59,248 | 286,092 | 242,381 | 269,553 | ||||||||||||||||||||
Net debt (3) to total capitalization | — | — | — | 12 | % | 50 | % | 47 | % | 49 | % | |||||||||||||||||
Maximum loss exposure under loss pool agreements related to both finance receivable monetizations and third-party financing | 18,899 | 29,713 | 29,713 | 28,179 | 27,203 | 26,068 | 25,161 | |||||||||||||||||||||
Equity | 507,140 | 478,592 | 478,592 | 436,238 | 284,746 | 276,780 | 281,270 | |||||||||||||||||||||
Working capital | 505,787 | 489,187 | 489,187 | 451,660 | 340,786 | 328,671 | 340,552 | |||||||||||||||||||||
Depreciation and amortization | 6,533 | 28,899 | 7,365 | 7,488 | 6,958 | 7,088 | 25,681 | |||||||||||||||||||||
Capital expenditures, net of retirements | 3,129 | 13,435 | 8,282 | 490 | 2,010 | 2,653 | 11,978 | |||||||||||||||||||||
Free cash flow(4) | 10,087 | 267,457 | 57,152 | 226,844 | (43,711 | ) | 27,172 | (98,450 | ) | |||||||||||||||||||
FINANCIAL RATIOS | ||||||||||||||||||||||||||||
Days sales outstanding | 62.7 | 57.1 | 57.1 | 55.4 | 83.7 | 92.0 | 78.4 | |||||||||||||||||||||
Days payables outstanding | 46.4 | 50.5 | 50.5 | 55.7 | 46.5 | 54.6 | 57.0 | |||||||||||||||||||||
Inventory turnover (annualized) | 7.8 | 7.6 | 7.6 | 6.9 | 6.4 | 5.9 | 5.8 |
(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 5
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)
Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | |||||||||||||||||||||||||
October 30, | Ended | July 31, | May 1, | January 30, | October 31, | Ended | ||||||||||||||||||||||
2005 | July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Net sales | $ | 472,436 | $ | 1,713,782 | $ | 563,805 | $ | 499,899 | $ | 347,947 | $ | 302,131 | $ | 1,170,186 | ||||||||||||||
Financial products | 2,974 | 11,915 | 2,826 | 3,373 | 3,056 | 2,660 | 15,203 | |||||||||||||||||||||
Rentals | 2,313 | 9,333 | 2,948 | 2,084 | 2,431 | 1,870 | 8,573 | |||||||||||||||||||||
477,723 | 1,735,030 | 569,579 | 505,356 | 353,434 | 306,661 | 1,193,962 | ||||||||||||||||||||||
Cost of sales | 382,859 | 1,447,785 | 459,893 | 407,464 | 299,462 | 280,966 | 968,562 | |||||||||||||||||||||
Gross profit | 94,864 | 287,245 | 109,686 | 97,892 | 53,972 | 25,695 | 225,400 | |||||||||||||||||||||
Gross profit margin | 19.9 | % | 16.6 | % | 19.3 | % | 19.4 | % | 15.3 | % | 8.4 | % | 18.9 | % | ||||||||||||||
Selling and administrative expenses | 38,061 | 142,383 | 43,927 | 39,524 | 30,810 | 28,122 | 128,465 | |||||||||||||||||||||
Selling & administrative % | 8.0 | % | 8.2 | % | 7.7 | % | 7.8 | % | 8.7 | % | 9.2 | % | 10.8 | % | ||||||||||||||
Product development expenses | 6,437 | 24,601 | 6,037 | 7,101 | 5,555 | 5,908 | 21,002 | |||||||||||||||||||||
Product development % | 1.3 | % | 1.4 | % | 1.1 | % | 1.4 | % | 1.6 | % | 1.9 | % | 1.8 | % | ||||||||||||||
Restructuring charges | — | — | — | — | — | — | 27 | |||||||||||||||||||||
Income (loss) from operations | 50,366 | 120,261 | 59,722 | 51,267 | 17,607 | (8,335 | ) | 75,906 | ||||||||||||||||||||
Operating profit (loss) margin | 10.5 | % | 6.9 | % | 10.5 | % | 10.1 | % | 5.0 | % | -2.7 | % | 6.4 | % | ||||||||||||||
Other income (deductions): | ||||||||||||||||||||||||||||
Interest expense | (5,977 | ) | (32,198 | ) | (6,326 | ) | (8,554 | ) | (8,322 | ) | (8,996 | ) | (38,098 | ) | ||||||||||||||
Miscellaneous, net | 2,445 | 5,025 | 4,016 | (4,969 | ) | 2,546 | 3,432 | 4,073 | ||||||||||||||||||||
Income (loss) before taxes | 46,834 | 93,088 | 57,412 | 37,744 | 11,831 | (13,899 | ) | 41,881 | ||||||||||||||||||||
Income tax provision (benefit) | 18,968 | 35,915 | 21,716 | 15,022 | 4,347 | (5,170 | ) | 15,232 | ||||||||||||||||||||
Net income (loss) | $ | 27,866 | $ | 57,173 | $ | 35,696 | $ | 22,722 | $ | 7,484 | $ | (8,729 | ) | $ | 26,649 | |||||||||||||
Return on revenues | 5.8 | % | 3.3 | % | 6.3 | % | 4.5 | % | 2.1 | % | -2.8 | % | 2.2 | % | ||||||||||||||
Earnings (loss) per common share | $ | .54 | $ | 1.23 | $ | .71 | $ | .48 | $ | .17 | $ | (.20 | ) | $ | .62 | |||||||||||||
Earnings (loss) per common share - assuming dilution | $ | .53 | $ | 1.20 | $ | .69 | $ | .47 | $ | .17 | $ | (.20 | ) | $ | .61 | |||||||||||||
Cash Dividends per share | $ | .005 | $ | .020 | $ | .005 | $ | .005 | $ | .005 | $ | .005 | $ | .020 | ||||||||||||||
Average basic shares outstanding | 51,212 | 46,529 | 50,361 | 47,091 | 43,798 | 43,277 | 42,860 | |||||||||||||||||||||
Average diluted shares outstanding | 52,556 | 47,793 | 51,656 | 48,287 | 44,988 | 43,277 | 44,032 | |||||||||||||||||||||
JLG Industries, Inc. — Page 6
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
(Quarterly data is unaudited)
(Quarterly data is unaudited)
October 30, | July 31, | May 1, | January 30, | October 31, | July 31, | |||||||||||||||||||
2005 | 2005 | 2005 | 2005 | 2004 | 2004 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 230,947 | $ | 223,597 | $ | 172,480 | $ | 24,305 | $ | 66,498 | $ | 37,656 | ||||||||||||
Trade accounts and finance receivables, net | 379,393 | 419,866 | 377,190 | 354,350 | 333,316 | 400,597 | ||||||||||||||||||
Inventories | 218,881 | 169,097 | 185,370 | 182,606 | 170,731 | 154,405 | ||||||||||||||||||
Other current assets | 48,417 | 56,739 | 58,753 | 47,466 | 45,739 | 41,058 | ||||||||||||||||||
Total current assets | 877,638 | 869,299 | 793,793 | 608,727 | 616,284 | 633,716 | ||||||||||||||||||
Property, plant and equipment, net | 84,879 | 85,855 | 78,270 | 82,387 | 89,443 | 91,504 | ||||||||||||||||||
Equipment held for rental, net | 38,401 | 22,570 | 27,220 | 23,163 | 26,842 | 21,190 | ||||||||||||||||||
Finance receivables, less current portion | 29,688 | 30,354 | 31,836 | 36,992 | 39,002 | 33,747 | ||||||||||||||||||
Pledged finance receivables, less current portion | 26,589 | 33,649 | 40,459 | 50,372 | 56,413 | 86,559 | ||||||||||||||||||
Goodwill | 61,598 | 61,641 | 63,134 | 63,165 | 63,017 | 62,885 | ||||||||||||||||||
Intangible assets, net | 31,795 | 32,086 | 33,465 | 33,848 | 34,590 | 35,240 | ||||||||||||||||||
Other assets | 64,675 | 68,143 | 56,848 | 80,420 | 66,991 | 62,603 | ||||||||||||||||||
$ | 1,215,263 | $ | 1,203,597 | $ | 1,125,025 | $ | 979,074 | $ | 992,582 | $ | 1,027,444 | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt and current portion of long-term debt | $ | 1,486 | $ | 1,496 | $ | 1,552 | $ | 3,744 | $ | 1,788 | $ | 1,729 | ||||||||||||
Current portion of limited recourse debt from finance receivables monetizations | 29,045 | 29,642 | 29,708 | 26,660 | 26,725 | 32,585 | ||||||||||||||||||
Accounts payable | 200,281 | 200,323 | 194,588 | 139,742 | 150,600 | 139,990 | ||||||||||||||||||
Accrued expenses | 141,039 | 148,651 | 116,285 | 97,795 | 108,500 | 118,860 | ||||||||||||||||||
Total current liabilities | 371,851 | 380,112 | 342,133 | 267,941 | 287,613 | 293,164 | ||||||||||||||||||
Long-term debt, less current portion | 221,470 | 224,197 | 226,937 | 302,189 | 302,088 | 300,011 | ||||||||||||||||||
Limited recourse debt from finance receivables monetizations, less current portion | 26,876 | 34,016 | 40,878 | 50,941 | 59,008 | 89,209 | ||||||||||||||||||
Accrued post-retirement benefits | 31,455 | 31,113 | 30,801 | 30,423 | 30,211 | 29,666 | ||||||||||||||||||
Other long-term liabilities | 28,464 | 27,233 | 24,116 | 23,536 | 21,362 | 20,542 | ||||||||||||||||||
Provisions for contingencies | 28,007 | 28,334 | 23,922 | 19,298 | 15,520 | 13,582 | ||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Capital stock: | ||||||||||||||||||||||||
Authorized shares: 100,000 at $.20 par value | ||||||||||||||||||||||||
Issued shares: 51,667; fiscal 2005 — 51,645; fiscal 2004 — 43,903 | 10,333 | 10,329 | 10,195 | 8,940 | 8,907 | 8,781 | ||||||||||||||||||
Additional paid-in capital | 175,452 | 180,696 | 163,974 | 37,087 | 35,111 | 29,571 | ||||||||||||||||||
Retained earnings | 338,124 | 310,516 | 275,077 | 252,579 | 245,319 | 254,268 | ||||||||||||||||||
Unearned compensation | — | (7,397 | ) | (2,642 | ) | (3,433 | ) | (4,019 | ) | (5,333 | ) | |||||||||||||
Accumulated other comprehensive loss | (16,769 | ) | (15,552 | ) | (10,366 | ) | (10,427 | ) | (8,538 | ) | (6,017 | ) | ||||||||||||
Total shareholders’ equity | 507,140 | 478,592 | 436,238 | 284,746 | 276,780 | 281,270 | ||||||||||||||||||
$ | 1,215,263 | $ | 1,203,597 | $ | 1,125,025 | $ | 979,074 | $ | 992,582 | $ | 1,027,444 | |||||||||||||
JLG Industries, Inc. — Page 7
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)
Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | |||||||||||||||||||||||||
October 30, | Ended | July 31, | May 1, | January 30, | October 31, | Ended | ||||||||||||||||||||||
2005 | July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | ||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||
Net income (loss) | $ | 27,866 | $ | 57,173 | $ | 35,696 | $ | 22,722 | $ | 7,484 | $ | (8,729 | ) | $ | 26,649 | |||||||||||||
Adjustments to reconcile net income (loss) to cash flow from operating activities: | ||||||||||||||||||||||||||||
(Gain) loss on sale of property, plant and equipment | (86 | ) | 948 | 828 | (22 | ) | (19 | ) | 161 | 319 | ||||||||||||||||||
(Gain) loss on sale of equipment held for rental | (72 | ) | (11,711 | ) | (3,791 | ) | (1,286 | ) | (5,334 | ) | (1,300 | ) | (12,451 | ) | ||||||||||||||
Non-cash charges and credits: | ||||||||||||||||||||||||||||
Depreciation and amortization | 6,533 | 28,899 | 7,365 | 7,488 | 6,958 | 7,088 | 25,681 | |||||||||||||||||||||
Other | 7,031 | 6,986 | (5,953 | ) | 6,225 | 3,965 | 2,749 | 17,006 | ||||||||||||||||||||
Changes in selected working capital items: | ||||||||||||||||||||||||||||
Accounts receivable | 39,186 | (25,948 | ) | (42,151 | ) | (16,355 | ) | (29,659 | ) | 62,217 | (66,296 | ) | ||||||||||||||||
Inventories | (50,027 | ) | (15,268 | ) | 16,321 | (3,463 | ) | (11,758 | ) | (16,368 | ) | 9,188 | ||||||||||||||||
Accounts payable | (34 | ) | 60,423 | 5,868 | 54,834 | (10,833 | ) | 10,554 | 33,207 | |||||||||||||||||||
Other operating assets and liabilities | 1,324 | 30,623 | 38,335 | 7,188 | (2,340 | ) | (12,560 | ) | 13,506 | |||||||||||||||||||
Changes in finance receivables | 1,351 | 1,877 | 1,459 | 1,944 | 6,970 | (8,496 | ) | (6,112 | ) | |||||||||||||||||||
Changes in pledged finance receivables | (196 | ) | 36 | (190 | ) | (248 | ) | (917 | ) | 1,391 | (14,866 | ) | ||||||||||||||||
Changes in other assets and liabilities | (3,422 | ) | 8,374 | 495 | 21,946 | (12,920 | ) | (1,147 | ) | (11,090 | ) | |||||||||||||||||
Cash flow from operating activities | 29,454 | 142,412 | 54,282 | 100,973 | (48,403 | ) | 35,560 | 14,741 | ||||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||||||||||
Purchases of property, plant and equipment | (3,145 | ) | (15,443 | ) | (9,134 | ) | (1,342 | ) | (2,072 | ) | (2,895 | ) | (12,387 | ) | ||||||||||||||
Proceeds from sale of property, plant and equipment | 102 | 1,060 | 24 | 874 | 81 | 81 | 90 | |||||||||||||||||||||
Purchases of equipment held for rental | (18,121 | ) | (31,249 | ) | (5,590 | ) | (6,719 | ) | (8,851 | ) | (10,089 | ) | (26,689 | ) | ||||||||||||||
Proceeds from sale of equipment held for rental | 438 | 35,065 | 11,775 | 3,103 | 16,037 | 4,150 | 33,269 | |||||||||||||||||||||
Cash portion of acquisitions | — | (105 | ) | — | — | (105 | ) | — | (109,557 | ) | ||||||||||||||||||
Other | (28 | ) | 366 | (35 | ) | 503 | (56 | ) | (46 | ) | 333 | |||||||||||||||||
Cash flow from investing activities | (20,754 | ) | (10,306 | ) | (2,960 | ) | (3,581 | ) | 5,034 | (8,799 | ) | (114,941 | ) | |||||||||||||||
FINANCING | ||||||||||||||||||||||||||||
Net (repayment) issuance of short-term debt | (11 | ) | (6 | ) | (58 | ) | (1,961 | ) | 1,955 | 58 | 27 | |||||||||||||||||
Issuance of long-term debt | — | 156,018 | (38 | ) | 26,002 | 45,038 | 85,016 | 351,999 | ||||||||||||||||||||
Repayment of long-term debt | (97 | ) | (232,666 | ) | (3,060 | ) | (99,374 | ) | (45,140 | ) | (85,092 | ) | (362,506 | ) | ||||||||||||||
Issuance of limited recourse debt | — | — | — | — | — | — | 13,979 | |||||||||||||||||||||
Repayment of limited recourse debt | — | — | — | — | — | — | (253 | ) | ||||||||||||||||||||
Payment of dividends | (258 | ) | (925 | ) | (257 | ) | (224 | ) | (224 | ) | (220 | ) | (871 | ) | ||||||||||||||
Net proceeds from issuance of common stock | — | 119,421 | (113 | ) | 119,534 | — | — | — | ||||||||||||||||||||
Exercise of stock options | 164 | 19,826 | 6,750 | 6,714 | 1,276 | 5,086 | 2,414 | |||||||||||||||||||||
Excess tax benefits from stock-based compensation | 44 | — | — | — | — | — | — | |||||||||||||||||||||
Cash flow from financing activities | (158 | ) | 61,668 | 3,224 | 50,691 | 2,905 | 4,848 | 4,789 | ||||||||||||||||||||
CURRENCY ADJUSTMENTS | ||||||||||||||||||||||||||||
Effect of exchange rate changes on cash | (1,192 | ) | (7,833 | ) | (3,429 | ) | 92 | (1,729 | ) | (2,767 | ) | 258 | ||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||||||||
Net change in cash and cash equivalents | 7,350 | 185,941 | 51,117 | 148,175 | (42,193 | ) | 28,842 | (95,153 | ) | |||||||||||||||||||
Beginning balance | 223,597 | 37,656 | 172,480 | 24,305 | 66,498 | 37,656 | 132,809 | |||||||||||||||||||||
Ending balance | $ | 230,947 | $ | 223,597 | $ | 223,597 | $ | 172,480 | $ | 24,305 | $ | 66,498 | $ | 37,656 | ||||||||||||||
JLG Industries, Inc. — Page 8
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)
Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | |||||||||||||||||||||||||
October 30, | Ended | July 31, | May 1, | January 30, | October 31, | Ended | ||||||||||||||||||||||
2005 | July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | ||||||||||||||||||||||
SEGMENT INFORMATION REVENUES: | ||||||||||||||||||||||||||||
Machinery | $ | 411,008 | $ | 1,461,401 | $ | 490,054 | $ | 437,595 | $ | 281,220 | $ | 252,532 | $ | 973,610 | ||||||||||||||
Equipment Services | 63,654 | 259,878 | 75,145 | 64,313 | 69,070 | 51,350 | 204,454 | |||||||||||||||||||||
Access Financial Solutions | 3,061 | 13,751 | 4,380 | 3,448 | 3,144 | 2,779 | 15,898 | |||||||||||||||||||||
$ | 477,723 | $ | 1,735,030 | $ | 569,579 | $ | 505,356 | $ | 353,434 | $ | 306,661 | $ | 1,193,962 | |||||||||||||||
SEGMENT PROFIT (LOSS): | ||||||||||||||||||||||||||||
Machinery | $ | 47,940 | $ | 111,974 | $ | 63,786 | $ | 51,995 | $ | 9,533 | $ | (13,340 | ) | $ | 70,844 | |||||||||||||
Equipment services | 23,205 | 72,878 | 19,533 | 17,867 | 19,711 | 15,767 | 59,760 | |||||||||||||||||||||
Access Financial Solutions | 1,088 | 4,420 | 2,303 | 1,211 | 712 | 194 | 1,695 | |||||||||||||||||||||
General corporate expenses | (22,928 | ) | (75,407 | ) | (27,103 | ) | (21,254 | ) | (13,801 | ) | (13,249 | ) | (67,308 | ) | ||||||||||||||
Segment profit (loss) | 49,305 | 113,865 | 58,519 | 49,819 | 16,155 | (10,628 | ) | 64,991 | ||||||||||||||||||||
Add: AFS’ interest expense | 1,061 | 6,396 | 1,203 | 1,448 | 1,452 | 2,293 | 10,915 | |||||||||||||||||||||
Operating Income (Loss) | $ | 50,366 | $ | 120,261 | $ | 59,722 | $ | 51,267 | $ | 17,607 | $ | (8,335 | ) | $ | 75,906 | |||||||||||||
PRODUCT GROUP REVENUES | ||||||||||||||||||||||||||||
Aerial work platforms | $ | 243,874 | $ | 888,073 | $ | 313,962 | $ | 278,071 | $ | 171,517 | $ | 124,523 | $ | 562,056 | ||||||||||||||
Telehandlers | 158,103 | 511,766 | 157,948 | 141,660 | 92,490 | 119,668 | 358,865 | |||||||||||||||||||||
Excavators | 9,031 | 61,562 | 18,144 | 17,864 | 17,213 | 8,341 | 52,689 | |||||||||||||||||||||
After-sales service and support, including parts sales, and used and reconditioned equipment sales | 61,428 | 252,381 | 73,751 | 62,304 | 66,727 | 49,599 | 196,576 | |||||||||||||||||||||
Financial products | 2,974 | 11,915 | 2,826 | 3,373 | 3,056 | 2,660 | 15,203 | |||||||||||||||||||||
Rentals | 2,313 | 9,333 | 2,948 | 2,084 | 2,431 | 1,870 | 8,573 | |||||||||||||||||||||
$ | 477,723 | $ | 1,735,030 | $ | 569,579 | $ | 505,356 | $ | 353,434 | $ | 306,661 | $ | 1,193,962 | |||||||||||||||
GEOGRAPHIC REVENUES | ||||||||||||||||||||||||||||
United States | $ | 354,913 | $ | 1,311,450 | $ | 437,066 | $ | 379,624 | $ | 256,027 | $ | 238,733 | $ | 923,696 | ||||||||||||||
Europe | 62,533 | 264,032 | 84,126 | 86,224 | 56,819 | 36,863 | 178,392 | |||||||||||||||||||||
Other international | 60,277 | 159,548 | 48,387 | 39,508 | 40,588 | 31,065 | 91,874 | |||||||||||||||||||||
$ | 477,723 | $ | 1,735,030 | $ | 569,579 | $ | 505,356 | $ | 353,434 | $ | 306,661 | $ | 1,193,962 | |||||||||||||||
JLG Industries, Inc. — Page 9
JLG INDUSTRIES, INC.
EBITDA
QUARTERLY PERIODS
(in thousands)
EBITDA
QUARTERLY PERIODS
(in thousands)
October 30, | July 31, | May 1, | January 30, | October 31, | July 31, | |||||||||||||||||||
2005 | 2005 | 2005 | 2005 | 2004 | 2004 | |||||||||||||||||||
Net income (loss) | $ | 27,866 | $ | 35,696 | $ | 22,722 | $ | 7,484 | ($ | 8,729 | ) | $ | 15,271 | |||||||||||
Interest expense | 5,977 | 6,326 | 8,554 | 8,322 | 8,996 | 9,274 | ||||||||||||||||||
Income tax provision (benefit) | 18,968 | 21,716 | 15,022 | 4,347 | (5,170 | ) | 8,748 | |||||||||||||||||
Depreciation and amortization | 6,533 | 7,365 | 7,488 | 6,958 | 7,088 | 5,070 | ||||||||||||||||||
EBITDA | $ | 59,344 | $ | 71,103 | $ | 53,786 | $ | 27,111 | $ | 2,185 | $ | 38,363 | ||||||||||||
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 10
JLG INDUSTRIES, INC.
EBITDA AND EBITDA MARGINS
TRAILING TWELVE MONTH PERIODS
(in thousands)
EBITDA AND EBITDA MARGINS
TRAILING TWELVE MONTH PERIODS
(in thousands)
October 30, | July 31, | May 1, | January 30, | October 31, | July 31, | |||||||||||||||||||
2005 | 2005 | 2005 | 2005 | 2004 | 2004 | |||||||||||||||||||
Net income | $ | 93,768 | $ | 57,173 | $ | 36,748 | $ | 22,713 | $ | 17,387 | $ | 26,649 | ||||||||||||
Interest expense | 29,179 | 32,198 | 35,146 | 35,992 | 37,218 | 38,098 | ||||||||||||||||||
Income tax provision | 60,053 | 35,915 | 22,947 | 12,815 | 9,765 | 15,232 | ||||||||||||||||||
Depreciation and amortization | 28,344 | 28,899 | 26,604 | 26,475 | 26,283 | 25,681 | ||||||||||||||||||
EBITDA | $ | 211,344 | $ | 154,185 | $ | 121,445 | $ | 97,995 | $ | 90,653 | $ | 105,660 | ||||||||||||
Revenues | $ | 1,906,092 | $ | 1,735,030 | $ | 1,590,611 | $ | 1,403,942 | $ | 1,287,038 | $ | 1,193,962 | ||||||||||||
EBITDA Margin | 11.1 | % | 8.9 | % | 7.6 | % | 7.0 | % | 7.0 | % | 8.8 | % | ||||||||||||
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 11
JLG INDUSTRIES, INC.
NET DEBT
(in thousands)
NET DEBT
(in thousands)
October 30, | July 31, | May 1, | January 30, | October 31, | July 31, | |||||||||||||||||||
2005 | 2005 | 2005 | 2005 | 2004 | 2004 | |||||||||||||||||||
Revolving credit facilities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
$15 million cash management facility | — | — | — | 1,944 | — | — | ||||||||||||||||||
$125 million senior notes | 109,975 | 109,975 | 112,975 | 125,000 | 125,000 | 125,000 | ||||||||||||||||||
$175 million senior subordinated notes | 113,750 | 113,750 | 113,750 | 175,000 | 175,000 | 175,000 | ||||||||||||||||||
Miscellaneous debt | 4,751 | 4,859 | 5,014 | 5,128 | 5,219 | 5,236 | ||||||||||||||||||
Fair value of interest rate swaps | (8,428 | ) | (5,909 | ) | (6,378 | ) | (6,120 | ) | (6,492 | ) | (8,814 | ) | ||||||||||||
Gain on terminated interest rate swap | 2,908 | 3,018 | 3,128 | 4,981 | 5,149 | 5,318 | ||||||||||||||||||
Bank debt and notes | 222,956 | 225,693 | 228,489 | 305,933 | 303,876 | 301,740 | ||||||||||||||||||
Limited recourse debt from finance receivables monetizations * | 55,921 | 63,658 | 70,586 | 77,601 | 85,733 | 121,794 | ||||||||||||||||||
Total balance sheet debt | 278,877 | 289,351 | 299,075 | 383,534 | 389,609 | 423,534 | ||||||||||||||||||
Net present value of off-balance sheet rental fleet lease | — | — | 656 | 755 | 1,012 | 1,070 | ||||||||||||||||||
Net present value of off-balance sheet production equipment leases | — | — | 2,583 | 3,709 | 3,991 | 4,399 | ||||||||||||||||||
Total off-balance sheet financing | — | — | 3,239 | 4,464 | 5,003 | 5,469 | ||||||||||||||||||
Total balance sheet debt and off-balance sheet financing | 278,877 | 289,351 | 302,314 | 387,998 | 394,612 | 429,003 | ||||||||||||||||||
Less: cash and cash equivalents | 230,947 | 223,597 | 172,480 | 24,305 | 66,498 | 37,656 | ||||||||||||||||||
Less: limited recourse debt from finance receivables monetizations | 55,921 | 63,658 | 70,586 | 77,601 | 85,733 | 121,794 | ||||||||||||||||||
Net debt | $ | (7,991 | ) | $ | 2,096 | $ | 59,248 | $ | 286,092 | $ | 242,381 | $ | 269,553 | |||||||||||
Shareholders’ Equity | $ | 507,140 | $ | 478,592 | $ | 436,238 | $ | 284,746 | $ | 276,780 | $ | 281,270 | ||||||||||||
Net Debt-to-Net Debt plus Shareholders’ Equity | — | — | 12 | % | 50 | % | 47 | % | 49 | % | ||||||||||||||
Total Balance Sheet Debt-to-Total Balance Sheet Debt plus Shareholders’ Equity | 35 | % | 38 | % | 41 | % | 57 | % | 58 | % | 60 | % | ||||||||||||
* Maximum loss exposure under loss pool agreements related to finance receivable monetizations | $ | 11,855 | $ | 22,160 | $ | 22,168 | $ | 22,168 | $ | 22,168 | $ | 22,198 | ||||||||||||
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 12
JLG INDUSTRIES, INC.
FREE CASH FLOW
(in thousands)
FREE CASH FLOW
(in thousands)
Fiscal Year | Quarter Ended | Fiscal Year | ||||||||||||||||||||||||||
October 30, | Ended | July 31, | May 1, | January 30, | October 31, | Ended | ||||||||||||||||||||||
2005 | July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | ||||||||||||||||||||||
Net income (loss) | $ | 27,866 | $ | 57,173 | $ | 35,696 | $ | 22,722 | $ | 7,484 | ($ | 8,729 | ) | $ | 26,649 | |||||||||||||
Adjustments to reconcile net income (loss) to cash flow from operating activities: | ||||||||||||||||||||||||||||
Non-cash items | 13,406 | 25,122 | (1,551 | ) | 12,405 | 5,570 | 8,698 | 30,555 | ||||||||||||||||||||
Accounts receivable | 39,186 | (25,948 | ) | (42,151 | ) | (16,355 | ) | (29,659 | ) | 62,217 | (66,296 | ) | ||||||||||||||||
Inventories | (50,027 | ) | (15,268 | ) | 16,321 | (3,463 | ) | (11,758 | ) | (16,368 | ) | 9,188 | ||||||||||||||||
Other current assets | 9,535 | (12,553 | ) | 899 | (14,132 | ) | 3,497 | (2,817 | ) | 8,780 | ||||||||||||||||||
Accounts payable | (34 | ) | 60,423 | 5,868 | 54,834 | (10,833 | ) | 10,554 | 33,207 | |||||||||||||||||||
Accrued expenses | (8,211 | ) | 43,176 | 37,436 | 21,320 | (5,837 | ) | (9,743 | ) | 4,726 | ||||||||||||||||||
Finance receivables | 1,351 | 1,877 | 1,459 | 1,944 | 6,970 | (8,496 | ) | (6,112 | ) | |||||||||||||||||||
Other cash from operations | (3,422 | ) | 8,374 | 495 | 21,946 | (12,920 | ) | (1,147 | ) | (11,090 | ) | |||||||||||||||||
Purchases of property, plant and equipment | (3,145 | ) | (15,443 | ) | (9,134 | ) | (1,342 | ) | (2,072 | ) | (2,895 | ) | (12,387 | ) | ||||||||||||||
Proceeds from sale of property, plant and equipment | 102 | 1,060 | 24 | 874 | 81 | 81 | 90 | |||||||||||||||||||||
Purchases of equipment held for rental | (18,121 | ) | (31,249 | ) | (5,590 | ) | (6,719 | ) | (8,851 | ) | (10,089 | ) | (26,689 | ) | ||||||||||||||
Proceeds from sale of equipment held for rental | 438 | 35,065 | 11,775 | 3,103 | 16,037 | 4,150 | 33,269 | |||||||||||||||||||||
Cash portion of acquisitions | — | (105 | ) | — | — | (105 | ) | — | (109,557 | ) | ||||||||||||||||||
Other cash from investments | (28 | ) | 366 | (35 | ) | 503 | (56 | ) | (46 | ) | 333 | |||||||||||||||||
Payment of dividends | (258 | ) | (925 | ) | (257 | ) | (224 | ) | (224 | ) | (220 | ) | (871 | ) | ||||||||||||||
Net proceeds from issuance of common stock | — | 119,421 | (113 | ) | 119,534 | — | — | — | ||||||||||||||||||||
Exercise of stock options | 164 | 19,826 | 6,750 | 6,714 | 1,276 | 5,086 | 2,414 | |||||||||||||||||||||
Excess tax benefits from stock-based compensation | 44 | — | — | — | — | — | — | |||||||||||||||||||||
Effect of exchange rate changes on cash | (1,192 | ) | (7,833 | ) | (3,429 | ) | 92 | (1,729 | ) | (2,767 | ) | 258 | ||||||||||||||||
Seller financing | — | — | — | — | — | — | (10,000 | ) | ||||||||||||||||||||
Capital lease assumed in OmniQuip acquisition | — | — | — | — | — | — | (3,630 | ) | ||||||||||||||||||||
Debt assumed in Delta acquisition | — | — | — | — | — | — | (103 | ) | ||||||||||||||||||||
Other(1) | 2,433 | 4,898 | 2,689 | 3,088 | (582 | ) | (297 | ) | (1,184 | ) | ||||||||||||||||||
Free Cash Flow | $ | 10,087 | $ | 267,457 | $ | 57,152 | $ | 226,844 | ($ | 43,711 | ) | $ | 27,172 | ($ | 98,450 | ) | ||||||||||||
(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)
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 | Three Months Ended | Three Months Ended | ||||||||||||||||||||||
October 30, | October 31, | October 30, | October 31, | October 30, | October31, | |||||||||||||||||||
2005 | 2004 | 2005 | 2004 | 2005 | 2004 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Net sales | $ | 472,436 | $ | 302,131 | $ | 472,436 | $ | 302,131 | $ | — | $ | — | ||||||||||||
Financial products | 2,974 | 2,660 | — | — | 2,974 | 2,660 | ||||||||||||||||||
Rentals | 2,313 | 1,870 | 2,226 | 1,751 | 87 | 119 | ||||||||||||||||||
477,723 | 306,661 | 474,662 | 303,882 | 3,061 | 2,779 | |||||||||||||||||||
Cost of sales | 382,859 | 280,966 | 382,793 | 280,772 | 66 | 194 | ||||||||||||||||||
Gross profit | 94,864 | 25,695 | 91,869 | 23,110 | 2,995 | 2,585 | ||||||||||||||||||
Selling and administrative expenses | 38,061 | 28,122 | 37,215 | 28,024 | 846 | 98 | ||||||||||||||||||
Product development expenses | 6,437 | 5,908 | 6,437 | 5,908 | — | — | ||||||||||||||||||
Income (loss) from operations | 50,366 | (8,335 | ) | 48,217 | (10,822 | ) | 2,149 | 2,487 | ||||||||||||||||
Other income (deductions): | ||||||||||||||||||||||||
Interest expense | (5,977 | ) | (8,996 | ) | (4,916 | ) | (6,703 | ) | (1,061 | ) | (2,293 | ) | ||||||||||||
Miscellaneous, net | 2,445 | 3,432 | 2,445 | 3,432 | — | — | ||||||||||||||||||
Income (loss) before taxes | 46,834 | (13,899 | ) | 45,746 | (14,093 | ) | 1,088 | 194 | ||||||||||||||||
Income tax provision (benefit) | 18,968 | (5,170 | ) | 18,527 | (5,242 | ) | 441 | 72 | ||||||||||||||||
Equity in income of Access Financial Solutions | — | — | 647 | 122 | — | — | ||||||||||||||||||
Net income (loss) | $ | 27,866 | $ | (8,729 | ) | $ | 27,866 | $ | (8,729 | ) | $ | 647 | $ | 122 | ||||||||||
Earnings (loss) per common share | $ | .54 | $ | (.20 | ) | |||||||||||||||||||
Earnings (loss) per common share — assuming dilution | $ | .53 | $ | (.20 | ) | |||||||||||||||||||
Cash dividends per share | $ | .005 | $ | .005 | ||||||||||||||||||||
Weighted average shares outstanding | 51,212 | 43,277 | ||||||||||||||||||||||
Weighted average shares outstanding — assuming dilution | 52,556 | 43,277 | ||||||||||||||||||||||
JLG Industries, Inc. — Page 14
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 | ||||||||||||||||||||||
October 30, | July 31, | October 30, | July 31, | October 30, | July 31, | |||||||||||||||||||
2005 | 2005 | 2005 | 2005 | 2005 | 2005 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 230,947 | $ | 223,597 | $ | 230,947 | $ | 223,597 | $ | — | $ | — | ||||||||||||
Trade accounts and finance receivables — net | 379,393 | 419,866 | 325,249 | 373,417 | 54,144 | 46,449 | ||||||||||||||||||
Inventories | 218,881 | 169,097 | 218,881 | 169,097 | — | — | ||||||||||||||||||
Other current assets | 48,417 | 56,739 | 48,417 | 56,739 | — | — | ||||||||||||||||||
Total current assets | 877,638 | 869,299 | 823,494 | 822,850 | 54,144 | 46,449 | ||||||||||||||||||
Property, plant and equipment — net | 84,879 | 85,855 | 84,738 | 85,698 | 141 | 157 | ||||||||||||||||||
Equipment held for rental — net | 38,401 | 22,570 | 38,153 | 22,259 | 248 | 311 | ||||||||||||||||||
Finance receivables, less current portion | 29,688 | 30,354 | — | — | 29,688 | 30,354 | ||||||||||||||||||
Pledged receivables, less current portion | 26,589 | 33,649 | — | — | 26,589 | 33,649 | ||||||||||||||||||
Goodwill | 61,598 | 61,641 | 61,598 | 61,641 | — | — | ||||||||||||||||||
Intangible assets — net | 31,795 | 32,086 | 31,795 | 32,086 | — | — | ||||||||||||||||||
Investment in Access Financial Solutions | — | — | 41,132 | 40,485 | — | — | ||||||||||||||||||
Receivable from Access Financial Solutions | — | — | 12,833 | 5,868 | — | — | ||||||||||||||||||
Other assets | 64,675 | 68,143 | 64,521 | 68,009 | 154 | 134 | ||||||||||||||||||
$ | 1,215,263 | $ | 1,203,597 | $ | 1,158,264 | $ | 1,138,896 | $ | 110,964 | $ | 111,054 | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt and current portion of long-term debt | $ | 1,486 | $ | 1,496 | $ | 1,486 | $ | 1,496 | $ | — | $ | — | ||||||||||||
Current portion of limited recourse debt from finance receivables monetizations | 29,045 | 29,642 | — | — | 29,045 | 29,642 | ||||||||||||||||||
Accounts payable | 200,281 | 200,323 | 200,281 | 200,323 | — | — | ||||||||||||||||||
Accrued expenses | 141,039 | 148,651 | 140,964 | 148,615 | 75 | 36 | ||||||||||||||||||
Total current liabilities | 371,851 | 380,112 | 342,731 | 350,434 | 29,120 | 29,678 | ||||||||||||||||||
Long-term debt, less current portion | 221,470 | 224,197 | 221,470 | 224,197 | — | — | ||||||||||||||||||
Limited recourse debt from finance receivables monetizations, less current portion | 26,876 | 34,016 | — | — | 26,876 | 34,016 | ||||||||||||||||||
Payable to JLG Industries, Inc. | — | — | — | — | 12,833 | 5,868 | ||||||||||||||||||
Accrued post-retirement benefits | 31,455 | 31,113 | 31,455 | 31,113 | — | — | ||||||||||||||||||
Other long-term liabilities | 28,464 | 27,233 | 28,464 | 27,233 | — | — | ||||||||||||||||||
Provisions for contingencies | 28,007 | 28,334 | 27,004 | 27,327 | 1,003 | 1,007 | ||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Capital stock: | ||||||||||||||||||||||||
Authorized shares: 100,000 at $.20 par value | ||||||||||||||||||||||||
Issued and outstanding shares: 51,667 shares; fiscal 2005 – 51,645 shares | 10,333 | 10,329 | 10,333 | 10,329 | 30,000 | 30,000 | ||||||||||||||||||
Additional paid-in capital | 175,452 | 180,696 | 175,452 | 180,696 | — | — | ||||||||||||||||||
Retained earnings | 338,124 | 310,516 | 338,124 | 310,516 | 11,132 | 10,485 | ||||||||||||||||||
Unearned compensation | — | (7,397 | ) | — | (7,397 | ) | — | — | ||||||||||||||||
Accumulated other comprehensive loss | (16,769 | ) | (15,552 | ) | (16,769 | ) | (15,552 | ) | — | — | ||||||||||||||
Total shareholders’ equity | 507,140 | 478,592 | 507,140 | 478,592 | 41,132 | 40,485 | ||||||||||||||||||
$ | 1,215,263 | $ | 1,203,597 | $ | 1,158,264 | $ | 1,138,896 | $ | 110,964 | $ | 111,054 | |||||||||||||
JLG Industries, Inc. — Page 15
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 | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||
October 30, | October 31, | October 30, | October 31, | October 30, | October 31, | |||||||||||||||||||
2005 | 2004 | 2005 | 2004 | 2005 | 2004 | |||||||||||||||||||
Operations | ||||||||||||||||||||||||
Net income (loss) | $ | 27,866 | $ | (8,729 | ) | $ | 27,866 | $ | (8,729 | ) | $ | 647 | $ | 122 | ||||||||||
Adjustments to reconcile net income (loss) to cash flow from operating activities: | ||||||||||||||||||||||||
(Gain) loss on sale of property, plant and equipment | (86 | ) | 161 | (86 | ) | 161 | — | — | ||||||||||||||||
(Gain) loss on sale of equipment held for rental | (72 | ) | (1,300 | ) | (72 | ) | (1,300 | ) | — | — | ||||||||||||||
Non-cash charges and credits: | ||||||||||||||||||||||||
Depreciation and amortization | 6,533 | 7,088 | 6,451 | 6,894 | 82 | 194 | ||||||||||||||||||
Other | 7,031 | 2,749 | 6,733 | 3,267 | 298 | (518 | ) | |||||||||||||||||
Changes in selected working capital items: | ||||||||||||||||||||||||
Accounts receivable | 39,186 | 62,217 | 48,344 | 35,355 | (9,158 | ) | 26,862 | |||||||||||||||||
Inventories | (50,027 | ) | (16,368 | ) | (50,027 | ) | (16,368 | ) | — | — | ||||||||||||||
Accounts payable | (34 | ) | 10,554 | (34 | ) | 10,554 | — | — | ||||||||||||||||
Other operating assets and liabilities | 1,324 | (12,560 | ) | 1,285 | (12,528 | ) | 39 | (32 | ) | |||||||||||||||
Changes in finance receivables | 1,351 | (8,496 | ) | — | — | 1,351 | (8,496 | ) | ||||||||||||||||
Changes in pledged finance receivables | (196 | ) | 1,391 | — | — | (196 | ) | 1,391 | ||||||||||||||||
Changes in other assets and liabilities | (3,422 | ) | (1,147 | ) | (3,395 | ) | (1,719 | ) | (27 | ) | 572 | |||||||||||||
Cash flow from operating activities | 29,454 | 35,560 | 37,065 | 15,587 | (6,964 | ) | 20,095 | |||||||||||||||||
Investments | ||||||||||||||||||||||||
Purchases of property, plant and equipment | (3,145 | ) | (2,895 | ) | (3,145 | ) | (2,895 | ) | — | — | ||||||||||||||
Proceeds from the sale of property, plant and equipment | 102 | 81 | 102 | 81 | — | — | ||||||||||||||||||
Purchases of equipment held for rental | (18,121 | ) | (10,089 | ) | (18,121 | ) | (10,061 | ) | — | (28 | ) | |||||||||||||
Proceeds from the sale of equipment held for rental | 438 | 4,150 | 438 | 4,150 | — | — | ||||||||||||||||||
Cash portion of acquisitions | — | — | — | — | — | — | ||||||||||||||||||
Investment in income of Access Financial Solutions | — | — | (647 | ) | (122 | ) | — | — | ||||||||||||||||
Other | (28 | ) | (46 | ) | (28 | ) | (46 | ) | — | — | ||||||||||||||
Cash flow from investing activities | (20,754 | ) | (8,799 | ) | (21,401 | ) | (8,893 | ) | — | (28 | ) | |||||||||||||
Financing | ||||||||||||||||||||||||
Net (decrease) increase in short-term debt | (11 | ) | 58 | (11 | ) | 58 | — | — | ||||||||||||||||
Issuance of long-term debt | — | 85,016 | — | 85,016 | — | — | ||||||||||||||||||
Repayment of long-term debt | (97 | ) | (85,092 | ) | (97 | ) | (85,092 | ) | — | — | ||||||||||||||
Issuance of limited recourse debt | — | — | — | — | — | — | ||||||||||||||||||
Repayment of limited recourse debt | — | — | — | — | — | — | ||||||||||||||||||
Change in receivable from Access Financial Solutions | — | — | (6,965 | ) | 20,089 | — | — | |||||||||||||||||
Change in payable to JLG Industries, Inc. | — | — | — | — | 6,965 | (20,089 | ) | |||||||||||||||||
Payment of dividends | (258 | ) | (220 | ) | (258 | ) | (220 | ) | — | — | ||||||||||||||
Exercise of stock options | 164 | 5,086 | 164 | 5,086 | — | — | ||||||||||||||||||
Excess tax benefits from stock-based compensation | 44 | — | 44 | — | — | — | ||||||||||||||||||
Cash flow from financing activities | (158 | ) | 4,848 | (7,123 | ) | 24,937 | 6,965 | (20,089 | ) | |||||||||||||||
Currency Adjustments | ||||||||||||||||||||||||
Effect of exchange rate changes on cash | (1,192 | ) | (2,767 | ) | (1,191 | ) | (2,789 | ) | (1 | ) | 22 | |||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||||||||
Net change in cash and cash equivalents | 7,350 | 28,842 | 7,350 | 28,842 | — | — | ||||||||||||||||||
Beginning balance | 223,597 | 37,656 | 223,597 | 37,656 | — | — | ||||||||||||||||||
Ending balance | $ | 230,947 | $ | 66,498 | $ | 230,947 | $ | 66,498 | $ | — | $ | — | ||||||||||||
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