Exhibit 99.1
![]() | Press Release | |
FOR IMMEDIATE RELEASE | ||
JLG Industries, Inc. | Contact: Greg Fries | |
1 JLG Drive | Manager — Investor Relations & Analysis | |
McConnellsburg, PA 17233-9533 | (240) 313-1817, ir@jlg.com | |
Telephone (717) 485-5161 | ||
Fax (717) 485-6417 | ||
www.jlg.com |
JLG’S SECOND QUARTER SALES UP 40 PERCENT, EARNINGS TRIPLE
Customer Demand Continues to be Strong
Customer Demand Continues to be Strong
MCCONNELLSBURG, PA, FEBRUARY 22, 2006— JLG Industries, Inc. (NYSE: JLG) today announced consolidated revenues of $494 million and earnings per share of $.52 for its fiscal second quarter ended January 29, 2006. Compared to the prior year period, revenue in the second fiscal quarter increased 40 percent led by a 43 percent increase in the United States and 31 percent internationally. The Company reported net income of $27.4 million compared with net income of $7.5 million, or $0.17 per share, in the prior year. Operating income was $49.7 million, or 10.1% of revenues, versus $17.6 million, or 5.0%, for the comparable year-ago period. The year-on-year improvement in the operating margin represents an incremental margin of 23% on the change in sales.
“Our revenues reached a new record for the quarter and, more importantly, our earnings improved dramatically compared to last year,” stated Bill Lasky, Chairman of the Board, President and Chief Executive Officer. “The continued strength in demand for our products is reflected in our order board which reached $1.0 billion at the end of the quarter, a 20% sequential increase from $849 million last quarter and over three times the $290 million level of last year. Our previous pricing actions and cost reduction activity have substantially caught up with the increases in commodities, especially steel, experienced last year. We continue to monitor pressure on product costs and work to offset the impact but remain prepared to increase pricing further if conditions warrant.
“The sale of the New Philadelphia plant, when netted against the announced reopening of our Bedford, PA and Orrville, OH facilities, and combined with the capacity investments we are making for the Caterpillar alliance and additional JLG products, will enable us to support significantly higher volume in essentially the same manufacturing footprint beginning in the fourth quarter of this fiscal year.”
year to date results
For the first half of fiscal 2006, consolidated revenues were $972 million, a 47 percent increase from the prior year period. Net income was $55.3 million, or $ 1.05 per share, versus a loss of $1.2 million, or $.03 per share last year. Last year’s results were negatively impacted by a lag in the recovery of increased cost of commodities, especially steel.
Cash and cash equivalents totaled $183 million at January 29, 2006, down $48 million sequentially due primarily to the purchase of the Caterpillar telehandler assets.
JLG Industries, Inc. — page 2
outlook
“The continuing strong demand for our products reinforces our belief that 2006 will be another good year for JLG,” said Jim Woodward, Executive Vice President and Chief Financial Officer. “Supply chain performance improvement and our own manufacturing capacity expansion will position us to better meet customer demand and optimize capacity utilization. We now expect to spend approximately $40 million in fiscal 2006 on capital additions including the capacity expansion and the Caterpillar alliance. Despite the impact of the $48 million sales volume reduction in our second half associated with the sale of the Gradall excavator product line, we project our full year revenue growth will be at the upper end of our previously announced range 20 to 25 percent over fiscal 2005. Excluding the one-time pre-tax gain on the excavator transaction of approximately $13.1 million, we now expect earnings per share to be in a range from $2.35 to $2.45, up from our previous guidance of $2.15 to $2.25.”
conference call
Management’s complete analysis of the Company’s quarterly results will be provided during a conference call on Thursday, February 23, 2006 at 2:00 p.m. Eastern Time. Within North America, access to the call is available by dialing (866) 713-8564, participant pass code 33323188. From international locations, call (617) 597-5312, 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.
aboutJLG
JLG Industries, Inc. is the world’s leading producer of access equipment (aerial work platforms and telehandlers). The Company’s diverse product portfolio encompasses leading brands such as JLG® aerial work platforms; JLG, SkyTrak®, Lull® and Gradall telehandlers; 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.
(more)
JLG Industries, Inc. — page 3
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-Q for the quarter ended October 30, 2005.
In this release, we refer to various non-GAAP measures including adjustments to reported GAAP earnings, AFS operations as if accounted for under the equity method, as well as our disclosure of free cash flow, EBITDA and net debt. We believe that these measures are useful to investors in analyzing the Company’s operating performance. For more information, visitwww.jlg.com.
NOTE: Information contained on our website is not incorporated by reference into this press release.
(Tables follow)
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 | |||||||||||||||||||||||||||||
January 29, | October 30, | Ended | July 31, | May l, | January 30, | October 31, | Ended | |||||||||||||||||||||||||
2006 | 2005 | July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | |||||||||||||||||||||||||
REVENUES AND PROFITABILITY | ||||||||||||||||||||||||||||||||
Revenues | $ | 494,426 | $ | 477,723 | $ | 1,735,030 | $ | 569,579 | $ | 505,356 | $ | 353,434 | $ | 306,661 | $ | 1,193,962 | ||||||||||||||||
Gross profit margin | 19.4 | % | 19.9 | % | 16.6 | % | 19.3 | % | 19.4 | % | 15.3 | % | 8.4 | % | 18.9 | % | ||||||||||||||||
EBITDA | 59,400 | 59,344 | 154,185 | 71,103 | 53,786 | 27,111 | 2,185 | 105,660 | ||||||||||||||||||||||||
Trailing twelve month EBITDA | 243,633 | 211,344 | 154,185 | 154,185 | 121,445 | 97,995 | 90,653 | 105,660 | ||||||||||||||||||||||||
Trailing twelve month EBITDA margin | 11.9 | % | 11.1 | % | 8.9 | % | 8.9 | % | 7.6 | % | 7.0 | % | 7.0 | % | 8.8 | % | ||||||||||||||||
Operating income (loss) | 49,734 | 50,366 | 120,261 | 59,722 | 51,267 | 17,607 | (8,335 | ) | 75,906 | |||||||||||||||||||||||
Operating profit (loss) margin | 10.1 | % | 10.5 | % | 6.9 | % | 10.5 | % | 10.1 | % | 5.0 | % | -2.7 | % | 6.4 | % | ||||||||||||||||
Net income (loss) margin | 5.5 | % | 5.8 | % | 3.3 | % | 6.3 | % | 4.5 | % | 2.1 | % | -2.8 | % | 2.2 | % | ||||||||||||||||
Reported earnings (loss) per diluted share | $ | 0.52 | $ | 0.53 | $ | 1.20 | $ | .69 | $ | .47 | $ | .17 | $ | (.20 | ) | $ | .61 | |||||||||||||||
IMPACT OF SELECTED ITEMS ON:(1) income (expense) | ||||||||||||||||||||||||||||||||
PRE-TAX INCOME | ||||||||||||||||||||||||||||||||
Strategic Initiatives (in both Cost of sales (COS), Selling & administrative and product development (SA&PD)) | $ | (3,375 | ) | $ | (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 | (574 | ) | — | (6,493 | ) | (217 | ) | (6,276 | ) | — | — | — | ||||||||||||||||||||
Currency effects (in Miscellaneous-net) | (672 | ) | 731 | 5,826 | 1,419 | (961 | ) | 3,087 | 2,281 | (2,309 | ) | |||||||||||||||||||||
Bad debt charges (in SA&PD) | (1,336 | ) | (3,509 | ) | (6,977 | ) | (2,533 | ) | (1,364 | ) | (1,948 | ) | (1,132 | ) | (11,560 | ) | ||||||||||||||||
Inventory charges (in COS) | (2,039 | ) | (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) | (4,888 | ) | (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 | ||||||||||||||||||||||||||||||||
Strategic Initiatives (in both COS and SA&PD) | (2,146 | ) | (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 | (365 | ) | — | (3,988 | ) | (135 | ) | (3,778 | ) | — | — | — | ||||||||||||||||||||
Currency effects (in Miscellaneous-net) | (427 | ) | 435 | 3,578 | 882 | (579 | ) | 1,954 | 1,432 | (1,469 | ) | |||||||||||||||||||||
Bad debt charges (in SA&PD) | (850 | ) | (2,088 | ) | (4,285 | ) | (1,575 | ) | (821 | ) | (1,233 | ) | (711 | ) | (7,352 | ) | ||||||||||||||||
Inventory charges (in COS) | (1,297 | ) | (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) | (3,109 | ) | (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 | ||||||||||||||||||||||||||||||||
Strategic Initiatives (in both COS and SA&PD) | (0.04 | ) | (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 | (0.01 | ) | — | (0.08 | ) | — | (0.08 | ) | — | — | — | |||||||||||||||||||||
Currency effects (in Miscellaneous-net) | (0.01 | ) | 0.01 | 0.07 | 0.02 | (0.01 | ) | 0.04 | 0.03 | (0.03 | ) | |||||||||||||||||||||
Bad debt charges (in SA&PD) | (0.02 | ) | (0.04 | ) | (0.09 | ) | (0.03 | ) | (0.02 | ) | (0.03 | ) | (0.02 | ) | (0.17 | ) | ||||||||||||||||
Inventory charges (in COS) | (0.02 | ) | (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) | (0.06 | ) | (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 | $ | 183,344 | $ | 230,947 | $ | 223,597 | $ | 223,597 | $ | 172,480 | $ | 24,305 | $ | 66,498 | $ | 37,656 | ||||||||||||||||
Trade accounts and finance receivables, net | 379,813 | 379,393 | 419,866 | 419,866 | 377,190 | 354,350 | 333,316 | 400,597 | ||||||||||||||||||||||||
Inventories | 227,957 | 218,881 | 169,097 | 169,097 | 185,370 | 182,606 | 170,731 | 154,405 | ||||||||||||||||||||||||
Total balance sheet debt | 273,721 | 278,877 | 289,351 | 289,351 | 299,075 | 383,534 | 389,609 | 423,534 | ||||||||||||||||||||||||
Limited recourse debt from finance receivables monetizations | 45,318 | 55,921 | 63,658 | 63,658 | 70,586 | 77,601 | 85,733 | 121,794 | ||||||||||||||||||||||||
Net debt (3) | 45,059 | (7,991 | ) | 2,096 | 2,096 | 59,248 | 286,092 | 242,381 | 269,553 | |||||||||||||||||||||||
Net debt (3) to total capitalization | 7 | % | — | — | — | 12 | % | 50 | % | 47 | % | 49 | % | |||||||||||||||||||
Maximum loss exposure under loss pool agreements related to finance receivable monetizations | 11,346 | 11,855 | 22,160 | 22,160 | 22,168 | 22,168 | 22,168 | 22,198 | ||||||||||||||||||||||||
Equity | 566,870 | 507,140 | 478,592 | 478,592 | 436,238 | 284,746 | 276,780 | 281,270 | ||||||||||||||||||||||||
Working capital | 523,417 | 505,787 | 489,187 | 489,187 | 451,660 | 340,786 | 328,671 | 340,552 | ||||||||||||||||||||||||
Depreciation and amortization | 7,907 | 6,533 | 28,899 | 7,365 | 7,488 | 6,958 | 7,088 | 25,681 | ||||||||||||||||||||||||
Capital expenditures, net of retirements | 3,653 | 3,129 | 13,435 | 8,282 | 490 | 2,010 | 2,653 | 11,978 | ||||||||||||||||||||||||
Free cash flow (4) | (53,050 | ) | 10,087 | 267,457 | 57,152 | 226,844 | (43,711 | ) | 27,172 | (98,450 | ) | |||||||||||||||||||||
FINANCIAL RATIOS | ||||||||||||||||||||||||||||||||
Days sales outstanding | 62.3 | 62.7 | 57.1 | 57.1 | 55.4 | 83.7 | 92.0 | 78.4 | ||||||||||||||||||||||||
Days payables outstanding | 40.6 | 46.4 | 50.5 | 50.5 | 55.7 | 46.5 | 54.6 | 57.0 | ||||||||||||||||||||||||
Inventory turnover (annualized) | 7.6 | 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 | |||||||||||||||||||||||||||||
January 29, | October 30, | Ended | July 31, | May 1, | January 30, | October 31, | Ended | |||||||||||||||||||||||||
2006 | 2005 | July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | |||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Net sales | $ | 488,411 | $ | 472,436 | $ | 1,713,782 | $ | 563,805 | $ | 499,899 | $ | 347,947 | $ | 302,131 | $ | 1,170,186 | ||||||||||||||||
Financial products | 3,256 | 2,974 | 11,915 | 2,826 | 3,373 | 3,056 | 2,660 | 15,203 | ||||||||||||||||||||||||
Rentals | 2,759 | 2,313 | 9,333 | 2,948 | 2,084 | 2,431 | 1,870 | 8,573 | ||||||||||||||||||||||||
494,426 | 477,723 | 1,735,030 | 569,579 | 505,356 | 353,434 | 306,661 | 1,193,962 | |||||||||||||||||||||||||
Cost of sales | 398,566 | 382,859 | 1,447,785 | 459,893 | 407,464 | 299,462 | 280,966 | 968,562 | ||||||||||||||||||||||||
Gross profit | 95,860 | 94,864 | 287,245 | 109,686 | 97,892 | 53,972 | 25,695 | 225,400 | ||||||||||||||||||||||||
Gross profit margin | 19.4 | % | 19.9 | % | 16.6 | % | 19.3 | % | 19.4 | % | 15.3 | % | 8.4 | % | 18.9 | % | ||||||||||||||||
Selling and administrative expenses | 39,301 | 38,061 | 142,383 | 43,927 | 39,524 | 30,810 | 28,122 | 128,465 | ||||||||||||||||||||||||
Selling & administrative % | 7.9 | % | 8.0 | % | 8.2 | % | 7.7 | % | 7.8 | % | 8.7 | % | 9.2 | % | 10.8 | % | ||||||||||||||||
Product development expenses | 6,825 | 6,437 | 24,601 | 6,037 | 7,101 | 5,555 | 5,908 | 21,002 | ||||||||||||||||||||||||
Product development % | 1.4 | % | 1.3 | % | 1.4 | % | 1.1 | % | 1.4 | % | 1.6 | % | 1.9 | % | 1.8 | % | ||||||||||||||||
Restructuring charges | — | — | — | — | — | — | — | 27 | ||||||||||||||||||||||||
Income (loss) from operations | 49,734 | 50,366 | 120,261 | 59,722 | 51,267 | 17,607 | (8,335 | ) | 75,906 | |||||||||||||||||||||||
Operating profit (loss) margin | 10.1 | % | 10.5 | % | 6.9 | % | 10.5 | % | 10.1 | % | 5.0 | % | -2.7 | % | 6.4 | % | ||||||||||||||||
Other income (deductions): | ||||||||||||||||||||||||||||||||
Interest expense (net of interest income) | (6,688 | ) | (4,466 | ) | (28,609 | ) | (4,905 | ) | (7,418 | ) | (7,852 | ) | (8,434 | ) | (35,397 | ) | ||||||||||||||||
Miscellaneous, net | 69 | 934 | 1,436 | 2,595 | (6,105 | ) | 2,076 | 2,870 | 1,372 | |||||||||||||||||||||||
Income (loss) before taxes | 43,115 | 46,834 | 93,088 | 57,412 | 37,744 | 11,831 | (13,899 | ) | 41,881 | |||||||||||||||||||||||
Income tax provision (benefit) | 15,695 | 18,968 | 35,915 | 21,716 | 15,022 | 4,347 | (5,170 | ) | 15,232 | |||||||||||||||||||||||
Net income (loss) | $ | 27,420 | $ | 27,866 | $ | 57,173 | $ | 35,696 | $ | 22,722 | $ | 7,484 | $ | (8,729 | ) | $ | 26,649 | |||||||||||||||
Return on revenues | 5.5 | % | 5.8 | % | 3.3 | % | 6.3 | % | 4.5 | % | 2.1 | % | -2.8 | % | 2.2 | % | ||||||||||||||||
Earnings (loss) per common share | $ | .53 | $ | .54 | $ | 1.23 | $ | .71 | $ | .48 | $ | .17 | $ | (.20 | ) | $ | .62 | |||||||||||||||
Earnings (loss) per common share - assuming dilution | $ | .52 | $ | .53 | $ | 1.20 | $ | .69 | $ | .47 | $ | .17 | $ | (.20 | ) | $ | .61 | |||||||||||||||
Cash Dividends per share | $ | .005 | $ | .005 | $ | .020 | $ | .005 | $ | .005 | $ | .005 | $ | .005 | $ | .020 | ||||||||||||||||
Average basic shares outstanding | 52,021 | 51,212 | 46,529 | 50,361 | 47,091 | 43,798 | 43,277 | 42,860 | ||||||||||||||||||||||||
Average diluted shares outstanding | 53,187 | 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)
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
(Quarterly data is unaudited)
January 29, | October 30, | July 31, | May 1, | January 30, | October 31, | July 31, | ||||||||||||||||||||||
2006 | 2005 | 2005 | 2005 | 2005 | 2004 | 2004 | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 183,344 | $ | 230,947 | $ | 223,597 | $ | 172,480 | $ | 24,305 | $ | 66,498 | $ | 37,656 | ||||||||||||||
Trade accounts and finance receivables, net | 379,813 | 379,393 | 419,866 | 377,190 | 354,350 | 333,316 | 400,597 | |||||||||||||||||||||
Inventories | 227,957 | 218,881 | 169,097 | 185,370 | 182,606 | 170,731 | 154,405 | |||||||||||||||||||||
Assets held for sale | 49,941 | — | — | 3,500 | 4,300 | — | — | |||||||||||||||||||||
Other current assets | 42,715 | 48,417 | 56,739 | 55,253 | 43,166 | 45,739 | 41,058 | |||||||||||||||||||||
Total current assets | 883,770 | 877,638 | 869,299 | 793,793 | 608,727 | 616,284 | 633,716 | |||||||||||||||||||||
Property, plant and equipment, net | 82,746 | 84,879 | 85,855 | 78,270 | 82,387 | 89,443 | 91,504 | |||||||||||||||||||||
Equipment held for rental, net | 36,684 | 38,401 | 22,570 | 27,220 | 23,163 | 26,842 | 21,190 | |||||||||||||||||||||
Finance receivables, less current portion | 26,500 | 29,688 | 30,354 | 31,836 | 36,992 | 39,002 | 33,747 | |||||||||||||||||||||
Pledged finance receivables, less current portion | 18,623 | 26,589 | 33,649 | 40,459 | 50,372 | 56,413 | 86,559 | |||||||||||||||||||||
Goodwill | 60,419 | 61,598 | 61,641 | 63,134 | 63,165 | 63,017 | 62,885 | |||||||||||||||||||||
Intangible assets, net | 75,371 | 31,795 | 32,086 | 33,465 | 33,848 | 34,590 | 35,240 | |||||||||||||||||||||
Other assets | 68,379 | 64,675 | 68,143 | 56,848 | 80,420 | 66,991 | 62,603 | |||||||||||||||||||||
$ | 1,252,492 | $ | 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 | $ | 6,515 | $ | 1,486 | $ | 1,496 | $ | 1,552 | $ | 3,744 | $ | 1,788 | $ | 1,729 | ||||||||||||||
Current portion of limited recourse debt from finance receivables monetizations | 26,558 | 29,045 | 29,642 | 29,708 | 26,660 | 26,725 | 32,585 | |||||||||||||||||||||
Accounts payable | 187,591 | 200,281 | 200,323 | 194,588 | 139,742 | 150,600 | 139,990 | |||||||||||||||||||||
Accrued expenses | 139,689 | 141,039 | 148,651 | 116,285 | 97,795 | 108,500 | 118,860 | |||||||||||||||||||||
Total current liabilities | 360,353 | 371,851 | 380,112 | 342,133 | 267,941 | 287,613 | 293,164 | |||||||||||||||||||||
Long-term debt, less current portion | 221,888 | 221,470 | 224,197 | 226,937 | 302,189 | 302,088 | 300,011 | |||||||||||||||||||||
Limited recourse debt from finance receivables monetizations, less current portion | 18,760 | 26,876 | 34,016 | 40,878 | 50,941 | 59,008 | 89,209 | |||||||||||||||||||||
Accrued post-retirement benefits | 31,797 | 31,455 | 31,113 | 30,801 | 30,423 | 30,211 | 29,666 | |||||||||||||||||||||
Other long-term liabilities | 22,117 | 28,464 | 27,233 | 24,116 | 23,536 | 21,362 | 20,542 | |||||||||||||||||||||
Provisions for contingencies | 30,707 | 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: 52,752; fiscal 2005 — 51,645; fiscal 2004 — 43,903 | 10,550 | 10,333 | 10,329 | 10,195 | 8,940 | 8,907 | 8,781 | |||||||||||||||||||||
Additional paid-in capital | 203,571 | 175,452 | 180,696 | 163,974 | 37,087 | 35,111 | 29,571 | |||||||||||||||||||||
Retained earnings | 365,280 | 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 | (12,531 | ) | (16,769 | ) | (15,552 | ) | (10,366 | ) | (10,427 | ) | (8,538 | ) | (6,017 | ) | ||||||||||||||
Total shareholders’ equity | 566,870 | 507,140 | 478,592 | 436,238 | 284,746 | 276,780 | 281,270 | |||||||||||||||||||||
$ | 1,252,492 | $ | 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 | |||||||||||||||||||||||||||||
January 29, | October 30, | Ended | July 31, | May 1, | January 30, | October 31, | Ended | |||||||||||||||||||||||||
2006 | 2005 | July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | |||||||||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | 27,420 | $ | 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: | ||||||||||||||||||||||||||||||||
Loss (gain) on sale of property, plant and equipment | 57 | (86 | ) | 948 | 828 | (22 | ) | (19 | ) | 161 | 319 | |||||||||||||||||||||
Gain on sale of equipment held for rental | (5,612 | ) | (72 | ) | (11,711 | ) | (3,791 | ) | (1,286 | ) | (5,334 | ) | (1,300 | ) | (12,451 | ) | ||||||||||||||||
Non-cash charges and credits: | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 7,907 | 6,533 | 28,899 | 7,365 | 7,488 | 6,958 | 7,088 | 25,681 | ||||||||||||||||||||||||
Other | 5,137 | 7,031 | 6,986 | (5,953 | ) | 6,225 | 3,965 | 2,749 | 17,006 | |||||||||||||||||||||||
Changes in selected working capital items: | ||||||||||||||||||||||||||||||||
Accounts receivable | (13,268 | ) | 39,186 | (25,948 | ) | (42,151 | ) | (16,355 | ) | (29,659 | ) | 62,217 | (66,296 | ) | ||||||||||||||||||
Inventories | (30,523 | ) | (50,027 | ) | (15,268 | ) | 16,321 | (3,463 | ) | (11,758 | ) | (16,368 | ) | 9,188 | ||||||||||||||||||
Accounts payable | (5,669 | ) | (34 | ) | 60,423 | 5,868 | 54,834 | (10,833 | ) | 10,554 | 33,207 | |||||||||||||||||||||
Other operating assets and liabilities | (6,722 | ) | 1,324 | 30,623 | 38,335 | 7,188 | (2,340 | ) | (12,560 | ) | 13,506 | |||||||||||||||||||||
Changes in finance receivables | (3,415 | ) | 1,351 | 1,877 | 1,459 | 1,944 | 6,970 | (8,496 | ) | (6,112 | ) | |||||||||||||||||||||
Changes in pledged finance receivables | (233 | ) | (196 | ) | 36 | (190 | ) | (248 | ) | (917 | ) | 1,391 | (14,866 | ) | ||||||||||||||||||
Changes in other assets and liabilities | (3,720 | ) | (3,422 | ) | 8,374 | 495 | 21,946 | (12,920 | ) | (1,147 | ) | (11,090 | ) | |||||||||||||||||||
Cash flow from operating activities | (28,641 | ) | 29,454 | 142,412 | 54,282 | 100,973 | (48,403 | ) | 35,560 | 14,741 | ||||||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||||||||||||||
Purchases of property, plant and equipment | (3,744 | ) | (3,145 | ) | (15,443 | ) | (9,134 | ) | (1,342 | ) | (2,072 | ) | (2,895 | ) | (12,387 | ) | ||||||||||||||||
Proceeds from sale of property, plant and equipment | 34 | 102 | 1,060 | 24 | 874 | 81 | 81 | 90 | ||||||||||||||||||||||||
Purchases of equipment held for rental | (9,270 | ) | (18,121 | ) | (31,249 | ) | (5,590 | ) | (6,719 | ) | (8,851 | ) | (10,089 | ) | (26,689 | ) | ||||||||||||||||
Proceeds from sale of equipment held for rental | 14,305 | 438 | 35,065 | 11,775 | 3,103 | 16,037 | 4,150 | 33,269 | ||||||||||||||||||||||||
Cash portion of acquisitions | (47,035 | ) | — | (105 | ) | — | — | (105 | ) | — | (109,557 | ) | ||||||||||||||||||||
Other | (40 | ) | (28 | ) | 366 | (35 | ) | 503 | (56 | ) | (46 | ) | 333 | |||||||||||||||||||
Cash flow used for investing activities | (45,750 | ) | (20,754 | ) | (10,306 | ) | (2,960 | ) | (3,581 | ) | 5,034 | (8,799 | ) | (114,941 | ) | |||||||||||||||||
FINANCING | ||||||||||||||||||||||||||||||||
Net issuance (repayment) of short-term debt | 23 | (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 | (96 | ) | (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 | (264 | ) | (258 | ) | (925 | ) | (257 | ) | (224 | ) | (224 | ) | (220 | ) | (871 | ) | ||||||||||||||||
Net proceeds from issuance of common stock | — | — | 119,421 | (113 | ) | 119,534 | — | — | — | |||||||||||||||||||||||
Exercise of stock options | 13,327 | 164 | 19,826 | 6,750 | 6,714 | 1,276 | 5,086 | 2,414 | ||||||||||||||||||||||||
Excess tax benefits from stock-based compensation | 13,017 | 44 | — | — | — | — | — | — | ||||||||||||||||||||||||
Cash flow from financing activities | 26,007 | (158 | ) | 61,668 | 3,224 | 50,691 | 2,905 | 4,848 | 4,789 | |||||||||||||||||||||||
CURRENCY ADJUSTMENTS | ||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash | 781 | (1,192 | ) | (7,833 | ) | (3,429 | ) | 92 | (1,729 | ) | (2,767 | ) | 258 | |||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents | (47,603 | ) | 7,350 | 185,941 | 51,117 | 148,175 | (42,193 | ) | 28,842 | (95,153 | ) | |||||||||||||||||||||
Beginning balance | 230,947 | 223,597 | 37,656 | 172,480 | 24,305 | 66,498 | 37,656 | 132,809 | ||||||||||||||||||||||||
Ending balance | $ | 183,344 | $ | 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 | |||||||||||||||||||||||||||||
January 29, | October 30, | Ended | July 31, | May 1, | January 30, | October 31, | Ended | |||||||||||||||||||||||||
2006 | 2005 | July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | |||||||||||||||||||||||||
SEGMENT INFORMATION REVENUES: | ||||||||||||||||||||||||||||||||
Machinery | $ | 412,327 | $ | 411,008 | $ | 1,461,401 | $ | 490,054 | $ | 437,595 | $ | 281,220 | $ | 252,532 | $ | 973,610 | ||||||||||||||||
Equipment Services | 78,789 | 63,654 | 259,878 | 75,145 | 64,313 | 69,070 | 51,350 | 204,454 | ||||||||||||||||||||||||
Access Financial Solutions | 3,310 | 3,061 | 13,751 | 4,380 | 3,448 | 3,144 | 2,779 | 15,898 | ||||||||||||||||||||||||
$ | 494,426 | $ | 477,723 | $ | 1,735,030 | $ | 569,579 | $ | 505,356 | $ | 353,434 | $ | 306,661 | $ | 1,193,962 | |||||||||||||||||
SEGMENT PROFIT (LOSS): | ||||||||||||||||||||||||||||||||
Machinery | $ | 44,587 | $ | 47,940 | $ | 111,974 | $ | 63,786 | $ | 51,995 | $ | 9,533 | $ | (13,340 | ) | $ | 70,844 | |||||||||||||||
Equipment services | 24,497 | 23,205 | 72,878 | 19,533 | 17,867 | 19,711 | 15,767 | 59,760 | ||||||||||||||||||||||||
Access Financial Solutions | 1,166 | 1,088 | 4,420 | 2,303 | 1,211 | 712 | 194 | 1,695 | ||||||||||||||||||||||||
Corporate expense | (21,412 | ) | (22,928 | ) | (75,407 | ) | (27,103 | ) | (21,254 | ) | (13,801 | ) | (13,249 | ) | (67,308 | ) | ||||||||||||||||
Segment profit (loss) | 48,838 | 49,305 | 113,865 | 58,519 | 49,819 | 16,155 | (10,628 | ) | 64,991 | |||||||||||||||||||||||
Add: AFS’ interest expense | 896 | 1,061 | 6,396 | 1,203 | 1,448 | 1,452 | 2,293 | 10,915 | ||||||||||||||||||||||||
Operating Income (Loss) | $ | 49,734 | $ | 50,366 | $ | 120,261 | $ | 59,722 | $ | 51,267 | $ | 17,607 | $ | (8,335 | ) | $ | 75,906 | |||||||||||||||
PRODUCT GROUP REVENUES | ||||||||||||||||||||||||||||||||
Aerial work platforms | $ | 234,710 | $ | 243,874 | $ | 888,073 | $ | 313,962 | $ | 278,071 | $ | 171,517 | $ | 124,523 | $ | 562,056 | ||||||||||||||||
Telehandlers | 160,715 | 158,103 | 511,766 | 157,948 | 141,660 | 92,490 | 119,668 | 358,865 | ||||||||||||||||||||||||
Excavators | 16,902 | 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 | 76,084 | 61,428 | 252,381 | 73,751 | 62,304 | 66,727 | 49,599 | 196,576 | ||||||||||||||||||||||||
Financial products | 3,256 | 2,974 | 11,915 | 2,826 | 3,373 | 3,056 | 2,660 | 15,203 | ||||||||||||||||||||||||
Rentals | 2,759 | 2,313 | 9,333 | 2,948 | 2,084 | 2,431 | 1,870 | 8,573 | ||||||||||||||||||||||||
$ | 494,426 | $ | 477,723 | $ | 1,735,030 | $ | 569,579 | $ | 505,356 | $ | 353,434 | $ | 306,661 | $ | 1,193,962 | |||||||||||||||||
GEOGRAPHIC REVENUES | ||||||||||||||||||||||||||||||||
United States | $ | 366,343 | $ | 354,913 | $ | 1,311,450 | $ | 437,066 | $ | 379,624 | $ | 256,027 | $ | 238,733 | $ | 923,696 | ||||||||||||||||
Europe | 83,349 | 62,533 | 264,032 | 84,126 | 86,224 | 56,819 | 36,863 | 178,392 | ||||||||||||||||||||||||
Other international | 44,734 | 60,277 | 159,548 | 48,387 | 39,508 | 40,588 | 31,065 | 91,874 | ||||||||||||||||||||||||
$ | 494,426 | $ | 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)
January 29, | October 30, | July 31, | May 1, | January 30, | October 31, | July 31, | ||||||||||||||||||||||
2006 | 2005 | 2005 | 2005 | 2005 | 2004 | 2004 | ||||||||||||||||||||||
Net income (loss) | $ | 27,420 | $ | 27,866 | $ | 35,696 | $ | 22,722 | $ | 7,484 | ( | $ | 8,729 | ) | $ | 15,271 | ||||||||||||
Interest expense | 8,378 | 5,977 | 6,326 | 8,554 | 8,322 | 8,996 | 9,274 | |||||||||||||||||||||
Income tax provision (benefit) | 15,695 | 18,968 | 21,716 | 15,022 | 4,347 | (5,170 | ) | 8,748 | ||||||||||||||||||||
Depreciation and amortization | 7,907 | 6,533 | 7,365 | 7,488 | 6,958 | 7,088 | 5,070 | |||||||||||||||||||||
EBITDA | $ | 59,400 | $ | 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)
January 29, | October 30, | July 31, | May 1, | January 30, | October 31, | July 31, | ||||||||||||||||||||||
2006 | 2005 | 2005 | 2005 | 2005 | 2004 | 2004 | ||||||||||||||||||||||
Net income | $ | 113,704 | $ | 93,768 | $ | 57,173 | $ | 36,748 | $ | 22,713 | $ | 17,387 | $ | 26,649 | ||||||||||||||
Interest expense | 29,235 | 29,179 | 32,198 | 35,146 | 35,992 | 37,218 | 38,098 | |||||||||||||||||||||
Income tax provision | 71,401 | 60,053 | 35,915 | 22,947 | 12,815 | 9,765 | 15,232 | |||||||||||||||||||||
Depreciation and amortization | 29,293 | 28,344 | 28,899 | 26,604 | 26,475 | 26,283 | 25,681 | |||||||||||||||||||||
EBITDA | $ | 243,633 | $ | 211,344 | $ | 154,185 | $ | 121,445 | $ | 97,995 | $ | 90,653 | $ | 105,660 | ||||||||||||||
Revenues | $ | 2,047,084 | $ | 1,906,092 | $ | 1,735,030 | $ | 1,590,611 | $ | 1,403,942 | $ | 1,287,038 | $ | 1,193,962 | ||||||||||||||
EBITDA Margin | 11.9 | % | 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)
January 29, | October 30, | July 31, | May 1, | January 30, | October 31, | July 31, | ||||||||||||||||||||||
2006 | 2005 | 2005 | 2005 | 2005 | 2004 | 2004 | ||||||||||||||||||||||
Revolving credit facilities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
$5 million cash management facility | — | — | — | — | 1,944 | — | — | |||||||||||||||||||||
$125 million senior notes | 109,975 | �� | 109,975 | 109,975 | 112,975 | 125,000 | 125,000 | 125,000 | ||||||||||||||||||||
$175 million senior subordinated notes | 113,750 | 113,750 | 113,750 | 113,750 | 175,000 | 175,000 | 175,000 | |||||||||||||||||||||
Miscellaneous debt | 9,678 | 4,751 | 4,859 | 5,014 | 5,128 | 5,219 | 5,236 | |||||||||||||||||||||
Fair value of interest rate swaps | (7,799 | ) | (8,428 | ) | (5,909 | ) | (6,378 | ) | (6,120 | ) | (6,492 | ) | (8,814 | ) | ||||||||||||||
Gain on terminated interest rate swap | 2,799 | 2,908 | 3,018 | 3,128 | 4,981 | 5,149 | 5,318 | |||||||||||||||||||||
Bank debt and notes | 228,403 | 222,956 | 225,693 | 228,489 | 305,933 | 303,876 | 301,740 | |||||||||||||||||||||
Limited recourse debt from finance receivables monetizations * | 45,318 | 55,921 | 63,658 | 70,586 | 77,601 | 85,733 | 121,794 | |||||||||||||||||||||
Total balance sheet debt | 273,721 | 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 | 273,721 | 278,877 | 289,351 | 302,314 | 387,998 | 394,612 | 429,003 | |||||||||||||||||||||
Less: cash and cash equivalents | 183,344 | 230,947 | 223,597 | 172,480 | 24,305 | 66,498 | 37,656 | |||||||||||||||||||||
Less: limited recourse debt from finance receivables monetizations | 45,318 | 55,921 | 63,658 | 70,586 | 77,601 | 85,733 | 121,794 | |||||||||||||||||||||
Net debt | $ | 45,059 | $ | (7,991 | ) | $ | 2,096 | $ | 59,248 | $ | 286,092 | $ | 242,381 | $ | 269,553 | |||||||||||||
Shareholders’ Equity | $ | 566,870 | $ | 507,140 | $ | 478,592 | $ | 436,238 | $ | 284,746 | $ | 276,780 | $ | 281,270 | ||||||||||||||
Net Debt-to-Net Debt plus Shareholders’ Equity | 7 | % | — | — | 12 | % | 50 | % | 47 | % | 49 | % | ||||||||||||||||
Total Balance Sheet Debt-to-Total Balance Sheet Debt plus Shareholders’ Equity | 33 | % | 35 | % | 38 | % | 41 | % | 57 | % | 58 | % | 60 | % | ||||||||||||||
* Maximum loss exposure under loss pool agreements related to finance receivable monetizations | $ | 11,346 | $ | 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)
Quarter Ended | Fiscal Year | Quarter Ended | Fiscal Year | |||||||||||||||||||||||||||||
January 29, | October 30, | Ended | July 31, | May 1, | January 30, | October 31, | Ended | |||||||||||||||||||||||||
2006 | 2005 | July 31, 2005 | 2005 | 2005 | 2005 | 2004 | July 31, 2004 | |||||||||||||||||||||||||
Net income (loss) | $ | 27,420 | $ | 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 | 7,489 | 13,406 | 25,122 | (1,551 | ) | 12,405 | 5,570 | 8,698 | 30,555 | |||||||||||||||||||||||
Accounts receivable | (13,268 | ) | 39,186 | (25,948 | ) | (42,151 | ) | (16,355 | ) | (29,659 | ) | 62,217 | (66,296 | ) | ||||||||||||||||||
Inventories | (30,523 | ) | (50,027 | ) | (15,268 | ) | 16,321 | (3,463 | ) | (11,758 | ) | (16,368 | ) | 9,188 | ||||||||||||||||||
Other current assets | 4,345 | 9,535 | (12,553 | ) | 899 | (14,132 | ) | 3,497 | (2,817 | ) | 8,780 | |||||||||||||||||||||
Accounts payable | (5,669 | ) | (34 | ) | 60,423 | 5,868 | 54,834 | (10,833 | ) | 10,554 | 33,207 | |||||||||||||||||||||
Accrued expenses | (11,067 | ) | (8,211 | ) | 43,176 | 37,436 | 21,320 | (5,837 | ) | (9,743 | ) | 4,726 | ||||||||||||||||||||
Finance receivables | (3,415 | ) | 1,351 | 1,877 | 1,459 | 1,944 | 6,970 | (8,496 | ) | (6,112 | ) | |||||||||||||||||||||
Other cash from operations | (3,720 | ) | (3,422 | ) | 8,374 | 495 | 21,946 | (12,920 | ) | (1,147 | ) | (11,090 | ) | |||||||||||||||||||
Purchases of property, plant and equipment | (3,744 | ) | (3,145 | ) | (15,443 | ) | (9,134 | ) | (1,342 | ) | (2,072 | ) | (2,895 | ) | (12,387 | ) | ||||||||||||||||
Proceeds from sale of property, plant and equipment | 34 | 102 | 1,060 | 24 | 874 | 81 | 81 | 90 | ||||||||||||||||||||||||
Purchases of equipment held for rental | (9,270 | ) | (18,121 | ) | (31,249 | ) | (5,590 | ) | (6,719 | ) | (8,851 | ) | (10,089 | ) | (26,689 | ) | ||||||||||||||||
Proceeds from sale of equipment held for rental | 14,305 | 438 | 35,065 | 11,775 | 3,103 | 16,037 | 4,150 | 33,269 | ||||||||||||||||||||||||
Cash portion of acquisitions | (47,035 | ) | — | (105 | ) | — | — | (105 | ) | — | (109,557 | ) | ||||||||||||||||||||
Other cash from investments | (40 | ) | (28 | ) | 366 | (35 | ) | 503 | (56 | ) | (46 | ) | 333 | |||||||||||||||||||
Payment of dividends | (264 | ) | (258 | ) | (925 | ) | (257 | ) | (224 | ) | (224 | ) | (220 | ) | (871 | ) | ||||||||||||||||
Net proceeds from issuance of common stock | — | — | 119,421 | (113 | ) | 119,534 | — | — | — | |||||||||||||||||||||||
Exercise of stock options | 13,327 | 164 | 19,826 | 6,750 | 6,714 | 1,276 | 5,086 | 2,414 | ||||||||||||||||||||||||
Excess tax benefits from stock-based compensation | 13,017 | 44 | — | — | — | — | — | — | ||||||||||||||||||||||||
Effect of exchange rate changes on cash | 781 | (1,192 | ) | (7,833 | ) | (3,429 | ) | 92 | (1,729 | ) | (2,767 | ) | 258 | |||||||||||||||||||
Seller financing | (5,000 | ) | — | — | — | — | — | — | (10,000 | ) | ||||||||||||||||||||||
Capital lease assumed in OmniQuip acquisition | — | — | — | — | — | — | — | (3,630 | ) | |||||||||||||||||||||||
Debt assumed in Delta acquisition | — | — | — | — | — | — | — | (103 | ) | |||||||||||||||||||||||
Other(1) | (753 | ) | 2,433 | 4,898 | 2,689 | 3,088 | (582 | ) | (297 | ) | (1,184 | ) | ||||||||||||||||||||
Free Cash Flow | $ | (53,050 | ) | $ | 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 | ||||||||||||||||||||||
Six Months Ended | Six Months Ended | Six Months Ended | ||||||||||||||||||||||
January 29, | January 30, | January 29, | January 30, | January 29, | January 30, | |||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Net sales | $ | 960,847 | $ | 650,078 | $ | 960,847 | $ | 650,078 | $ | — | $ | — | ||||||||||||
Financial products | 6,230 | 5,716 | — | — | 6,230 | 5,716 | ||||||||||||||||||
Rentals | 5,072 | 4,301 | 4,931 | 4,094 | 141 | 207 | ||||||||||||||||||
972,149 | 660,095 | 965,778 | 654,172 | 6,371 | 5,923 | |||||||||||||||||||
Cost of sales | 781,425 | 580,428 | 781,316 | 580,030 | 109 | 398 | ||||||||||||||||||
Gross profit | 190,724 | 79,667 | 184,462 | 74,142 | 6,262 | 5,525 | ||||||||||||||||||
Selling and administrative expenses | 77,362 | 58,932 | 75,311 | 58,058 | 2,051 | 874 | ||||||||||||||||||
Product development expenses | 13,262 | 11,463 | 13,262 | 11,463 | — | — | ||||||||||||||||||
Income from operations | 100,100 | 9,272 | 95,889 | 4,621 | 4,211 | 4,651 | ||||||||||||||||||
Other income (deductions): | ||||||||||||||||||||||||
Interest expense (net of interest income) | (11,154 | ) | (16,286 | ) | (9,197 | ) | (12,541 | ) | (1,957 | ) | (3,745 | ) | ||||||||||||
Miscellaneous, net | 1,003 | 4,946 | 1,003 | 4,946 | — | — | ||||||||||||||||||
Income (loss) before taxes | 89,949 | (2,068 | ) | 87,695 | (2,974 | ) | 2,254 | 906 | ||||||||||||||||
Income tax provision (benefit) | 34,663 | (823 | ) | 33,794 | (1,184 | ) | 869 | 361 | ||||||||||||||||
Equity in income of Access Financial Solut | — | — | 1,385 | 545 | — | — | ||||||||||||||||||
Net income (loss) | $ | 55,286 | $ | (1,245 | ) | $ | 55,286 | $ | (1,245 | ) | $ | 1,385 | $ | 545 | ||||||||||
Earnings (loss) per common share | $ | 1.07 | $ | (.03 | ) | |||||||||||||||||||
Earnings (loss) per common share — assuming dilution | $ | 1.05 | $ | (.03 | ) | |||||||||||||||||||
Cash dividends per share | $ | .01 | $ | .01 | ||||||||||||||||||||
Weighted average shares outstanding | 51,621 | 43,762 | ||||||||||||||||||||||
Weighted average shares outstanding — assuming dilution | 52,876 | 43,762 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||
January 29, | July 31, | January 29, | July 31, | January 29, | July 31, | |||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 183,344 | $ | 223,597 | $ | 183,344 | $ | 223,597 | $ | — | $ | — | ||||||||||||
Trade accounts and finance receivables — net | 379,813 | 419,866 | 324,171 | 373,417 | 55,642 | 46,449 | ||||||||||||||||||
Inventories | 227,957 | 169,097 | 227,957 | 169,097 | — | — | ||||||||||||||||||
Assets held for sale | 49,941 | — | 49,941 | — | — | — | ||||||||||||||||||
Other current assets | 42,715 | 56,739 | 42,715 | 56,739 | — | — | ||||||||||||||||||
Total current assets | 883,770 | 869,299 | 828,128 | 822,850 | 55,642 | 46,449 | ||||||||||||||||||
Property, plant and equipment — net | 82,746 | 85,855 | 82,621 | 85,698 | 125 | 157 | ||||||||||||||||||
Equipment held for rental — net | 36,684 | 22,570 | 36,480 | 22,259 | 204 | 311 | ||||||||||||||||||
Finance receivables, less current portion | 26,500 | 30,354 | — | — | 26,500 | 30,354 | ||||||||||||||||||
Pledged receivables, less current portion | 18,623 | 33,649 | — | — | 18,623 | 33,649 | ||||||||||||||||||
Goodwill | 60,419 | 61,641 | 60,419 | 61,641 | — | — | ||||||||||||||||||
Intangible assets — net | 75,371 | 32,086 | 75,371 | 32,086 | — | — | ||||||||||||||||||
Investment in Access Financial Solutions | — | — | 41,870 | 40,485 | — | — | ||||||||||||||||||
Receivable from Access Financial Solutions | — | — | 12,416 | 5,868 | — | — | ||||||||||||||||||
Other assets | 68,379 | 68,143 | 68,237 | 68,009 | 142 | 134 | ||||||||||||||||||
$ | 1,252,492 | $ | 1,203,597 | $ | 1,205,542 | $ | 1,138,896 | $ | 101,236 | $ | 111,054 | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Short-term debt and current portion of long-term | $ | 6,515 | $ | 1,496 | $ | 6,515 | $ | 1,496 | $ | — | $ | — | ||||||||||||
Current portion of limited recourse debt from finance receivables monetizations | 26,558 | 29,642 | — | — | 26,558 | 29,642 | ||||||||||||||||||
Accounts payable | 187,591 | 200,323 | 187,591 | 200,323 | — | — | ||||||||||||||||||
Accrued expenses | 139,689 | 148,651 | 139,626 | 148,615 | 63 | 36 | ||||||||||||||||||
Total current liabilities | 360,353 | 380,112 | 333,732 | 350,434 | 26,621 | 29,678 | ||||||||||||||||||
Long-term debt, less current portion | 221,888 | 224,197 | 221,888 | 224,197 | — | — | ||||||||||||||||||
Limited recourse debt from finance receivables monetizations, less current portion | 18,760 | 34,016 | — | — | 18,760 | 34,016 | ||||||||||||||||||
Payable to JLG Industries, Inc. | — | — | — | — | 12,416 | 5,868 | ||||||||||||||||||
Accrued post-retirement benefits | 31,797 | 31,113 | 31,797 | 31,113 | — | — | ||||||||||||||||||
Other long-term liabilities | 22,117 | 27,233 | 22,117 | 27,233 | — | — | ||||||||||||||||||
Provisions for contingencies | 30,707 | 28,334 | 29,138 | 27,327 | 1,569 | 1,007 | ||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||
Capital stock: | ||||||||||||||||||||||||
Authorized shares: 100,000 at $.20 par value Issued and outstanding shares: 52,752 shares; fiscal 2005 — 51,645 shares | 10,550 | 10,329 | 10,550 | 10,329 | 30,000 | 30,000 | ||||||||||||||||||
Additional paid-in capital | 203,571 | 180,696 | 203,571 | 180,696 | — | — | ||||||||||||||||||
Retained earnings | 365,280 | 310,516 | 365,280 | 310,516 | 11,870 | 10,485 | ||||||||||||||||||
Unearned compensation | — | (7,397 | ) | — | (7,397 | ) | — | — | ||||||||||||||||
Accumulated other comprehensive loss | (12,531 | ) | (15,552 | ) | (12,531 | ) | (15,552 | ) | — | — | ||||||||||||||
Total shareholders’ equity | 566,870 | 478,592 | 566,870 | 478,592 | 41,870 | 40,485 | ||||||||||||||||||
$ | 1,252,492 | $ | 1,203,597 | $ | 1,205,542 | $ | 1,138,896 | $ | 101,236 | $ | 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 | ||||||||||||||||||||||
Six Months Ended | Six Months Ended | Six Months Ended | ||||||||||||||||||||||
January 29, | January 30, | January 29, | January 30, | January 29, | January 30, | |||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||||
Operations | ||||||||||||||||||||||||
Net income (loss) | $ | 55,286 | $ | (1,245 | ) | $ | 55,286 | $ | (1,245 | ) | $ | 1,385 | $ | 545 | ||||||||||
Adjustments to reconcile net income (loss) to cash flow from operating activities: | ||||||||||||||||||||||||
(Gain) loss on sale of property, plant and equipment | (29 | ) | 142 | (29 | ) | 142 | — | — | ||||||||||||||||
(Gain) loss on sale of equipment held for rental | (5,684 | ) | (6,634 | ) | (5,684 | ) | (6,634 | ) | — | — | ||||||||||||||
Non-cash charges and credits: | ||||||||||||||||||||||||
Depreciation and amortization | 14,440 | 14,046 | 14,297 | 13,648 | 143 | 398 | ||||||||||||||||||
Other | 12,168 | 6,714 | 11,201 | 7,115 | 967 | (401 | ) | |||||||||||||||||
Changes in selected working capital items: | ||||||||||||||||||||||||
Accounts receivable | 25,918 | 32,558 | 33,044 | 4,124 | (6,588 | ) | 28,434 | |||||||||||||||||
Inventories | (80,550 | ) | (28,126 | ) | (80,550 | ) | (28,126 | ) | — | — | ||||||||||||||
Accounts payable | (5,703 | ) | (279 | ) | (5,703 | ) | (279 | ) | — | — | ||||||||||||||
Other operating assets and liabilities | (5,398 | ) | (14,900 | ) | (5,425 | ) | (14,854 | ) | 27 | (46 | ) | |||||||||||||
Changes in finance receivables | (2,064 | ) | (1,526 | ) | — | — | (2,064 | ) | (1,526 | ) | ||||||||||||||
Changes in pledged finance receivables | (429 | ) | 474 | — | — | (429 | ) | 474 | ||||||||||||||||
Changes in other assets and liabilities | (7,142 | ) | (14,067 | ) | (7,692 | ) | (14,564 | ) | 12 | 497 | ||||||||||||||
Cash flow from operating activities | 813 | (12,843 | ) | 8,745 | (40,673 | ) | (6,547 | ) | 28,375 | |||||||||||||||
Investments | ||||||||||||||||||||||||
Purchases of property, plant and equipment | (6,889 | ) | (4,967 | ) | (6,889 | ) | (4,967 | ) | — | — | ||||||||||||||
Proceeds from the sale of property, plant and equipment | 136 | 162 | 136 | 162 | — | — | ||||||||||||||||||
Purchases of equipment held for rental | (27,391 | ) | (18,940 | ) | (27,391 | ) | (18,876 | ) | — | (64 | ) | |||||||||||||
Proceeds from the sale of equipment held for rental | 14,743 | 20,187 | 14,743 | 20,187 | — | — | ||||||||||||||||||
Cash portion of acquisitions | (47,035 | ) | (105 | ) | (47,035 | ) | (105 | ) | — | — | ||||||||||||||
Investment in income of Access Financial Solutions | — | — | (1,385 | ) | (545 | ) | — | — | ||||||||||||||||
Other | (68 | ) | (102 | ) | (68 | ) | (102 | ) | — | — | ||||||||||||||
Cash flow used for investing activities | (66,504 | ) | (3,765 | ) | (67,889 | ) | (4,246 | ) | — | (64 | ) | |||||||||||||
Financing | ||||||||||||||||||||||||
Net increase in short-term debt | 12 | 2,013 | 12 | 2,013 | — | — | ||||||||||||||||||
Issuance of long-term debt | — | 130,054 | — | 130,054 | — | — | ||||||||||||||||||
Repayment of long-term debt | (193 | ) | (130,232 | ) | (193 | ) | (130,232 | ) | — | — | ||||||||||||||
Issuance of limited recourse debt | — | — | — | — | — | — | ||||||||||||||||||
Repayment of limited recourse debt | — | — | — | — | — | — | ||||||||||||||||||
Change in receivable from Access Financial Solutions | — | — | (6,548 | ) | 28,317 | — | — | |||||||||||||||||
Change in payable to JLG Industries, Inc. | — | — | — | — | 6,548 | (28,317 | ) | |||||||||||||||||
Payment of dividends | (522 | ) | (444 | ) | (522 | ) | (444 | ) | — | — | ||||||||||||||
Exercise of stock options | 13,491 | 6,362 | 13,491 | 6,362 | — | — | ||||||||||||||||||
Excess tax benefits from stock-based compensation | 13,061 | — | 13,061 | — | — | — | ||||||||||||||||||
Cash flow from financing activities | 25,849 | 7,753 | 19,301 | 36,070 | 6,548 | (28,317 | ) | |||||||||||||||||
Currency Adjustments | ||||||||||||||||||||||||
Effect of exchange rate changes on cash | (411 | ) | (4,496 | ) | (410 | ) | (4,502 | ) | (1 | ) | 6 | |||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||||||||
Net change in cash and cash equivalents | (40,253 | ) | (13,351 | ) | (40,253 | ) | (13,351 | ) | — | — | ||||||||||||||
Beginning balance | 223,597 | 37,656 | 223,597 | 37,656 | — | — | ||||||||||||||||||
Ending balance | $ | 183,344 | $ | 24,305 | $ | 183,344 | $ | 24,305 | $ | — | $ | — | ||||||||||||