[GRAPHIC OMITTED]
GEHL
Gehl Company Tel: 262/334-9461
143 Water Street Fax: 262/334-6603
P.O. Box 179 http://www.gehl.com
West Bend, WI 53095-0179
USA
February 15, 2001
Dear Fellow Shareholder:
Today, Gehl Company announced results for the fourth quarter and year ended
December 31, 2000, and we are pleased to enclose your personal copy of the news
release. As the release explains, your Company's latest financial results
exceeded analysts' expectations. We urge you to give your careful attention to
the release and its discussions of the progress we have made in the year just
ended. You also will be interested in several strategic developments we expect
to see in 2001, including:
o New Product Lines Begin Shipping in the First Half;
o E-Commerce Initiative to Commence Operations in the Second Half; and
o Gehl Continues to Actively Seek Acquisition Opportunities
After seven straight years of progressively increasing earnings, the year
2000 was clearly one of transition for your Company. We've met the challenges
and remain excited and optimistic about the future of Gehl Company. We believe
the actions we are taking will enhance the value of your investment in Gehl.
Looking ahead, we will continue to keep you advised of your Company's progress.
On behalf of your Board of Directors and Management, thank you for your
continued interest and support.
Sincerely,
William D. Gehl
Chairman, President and
Chief Executive Officer
The enclosed correspondence contains "forward-looking statements" intended to
qualify for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. All statements other than statements of
historical fact are forward-looking statements. Shareholders are urged to read
the disclaimer relating to forward-looking statements contained in the enclosed
press release and are cautioned not to place undue reliance on such forward
looking-statements.
[GRAPHIC OMITTED]
GEHL
Gehl Company Tel: 262/334-9461
143 Water Street Fax: 262/334-6603
P.O. Box 179 http://www.gehl.com
West Bend, WI 53095-0179
USA
News Release Highlights
Note to Editors: Attached is Gehl Company's (NASDAQ: GEHL) 4th Quarter and
Year-end 2000 Earnings Release, of February 15, 2001. Highlights include:
GEHL COMPANY REPORTS 4TH QUARTER AND FULL YEAR RESULTS
Earnings Exceed Analysts' Expectations
Business Outlook
New Product Lines Begin Shipping
E-Commerce Initiative Commences in Second Half
Acquisition Opportunities Actively Sought
[GRAPHIC OMITTED]
GEHL
Gehl Company Tel: 262/334-9461
143 Water Street Fax: 262/334-6603
P.O. Box 179 http://www.gehl.com
CONTACT: West Bend, WI 53095-0179
Kenneth Hahn USA
Vice President of Finance and Treasurer
262-334-6632
NEWS RELEASE
FOR IMMEDIATE RELEASE
- ---------------------
GEHL COMPANY REPORTS 4TH QUARTER AND FULL YEAR RESULTS
------------------------------------------------------
Earnings Exceed Analysts' Expectations
--------------------------------------
Company Provides Forecast for 2001 and 2002
-------------------------------------------
WEST BEND, WI, February 15, 2001 -- Gehl Company (NASDAQ: GEHL), the
Wisconsin-based manufacturer of light construction and agricultural equipment,
today reported fourth quarter and year-end 2000 results that exceeded analysts'
expectations for both reporting periods ended December 31, 2000. For the fourth
quarter, Gehl reported net income of $.3 million, or $.05 per diluted share; and
$9.7 million, or $1.72 per diluted share, for the full year. Both periods
included a gain of $.5 million, or $.10 per diluted share, recognized on the
disposition of a former branch service center. Analysts had expected earnings to
range from $1.48 to $1.58 per diluted share for the full year, and from negative
$(.05) to negative $(.15) per diluted share for the fourth quarter. The fourth
quarter and full year results were decreases from the $3.8 million, or $.64 per
diluted share, reported by the Company for the fourth quarter of 1999, and the
record earnings of $20.2 million, or $3.17 per diluted share, for the full year
ended December 31, 1999.
Fourth quarter 2000 net sales of $52.1 million were 19% lower than the
$64.4 million in net sales recorded for the fourth quarter of 1999. Net sales
for the full year ended December 31, 2000 of $258.1 million, in line with the
Company's forecast, were 11.5% below the record sales of $291.4 million for the
full year ended December 31,
(M O R E)
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 2
1999. Sales were lower due primarily to the slowing U.S. economy and the weak
Euro abroad, coupled with the effects of increased interest rates on domestic
housing starts and in the agricultural sector the lowest milk prices in the last
23 years.
William D. Gehl, Chairman, President and CEO, stated "We have just
completed a challenging year for the Company after seven consecutive years of
progressively increasing sales and earnings. During those years, the Company's
net sales and earnings per share grew at compounded annual growth rates of 13%
and 107%, respectively. However, as the U.S. economy began to slow in the second
half of the year, our business, like others in our cyclical industry, was
negatively impacted. While we are pleased to report earnings that exceeded the
market's expectations, we are not satisfied with these results. Gehl's
management team continues to adjust to the rapidly changing economic environment
by reducing headcount and decreasing production levels to meet lowered demand.
We also continue to position the Company and make the necessary investments for
long-term growth, all as part of our ongoing efforts to enhance shareholder
value."
CONSTRUCTION EQUIPMENT SALES
----------------------------
Sales of construction equipment in the fourth quarter of 2000 were
$27.7 million versus $38.2 million recorded in the fourth quarter of 1999, a
decrease of 27%. Construction equipment sales for the full year ended December
31, 2000 were $151.1 million, 13% below the $173.6 million for the full year
ended December 31, 1999. Reductions from the 1999 levels reflect lower shipments
and retail sales of telescopic handlers, consistent with an industry-wide
reduced demand for telescopic handler equipment. Industry-wide retail sales of
telescopic handlers in North America in 2000 were reported to be 15% to 20%
below 1999's levels. In addition, a reduction in overseas demand for skid
loaders, resulting in part from the continued weakness of the Euro, further
contributed to the decrease from 1999 sales levels.
(M O R E)
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 3
Offsetting these negative demand factors, the Company realized a
positive contribution, in the fourth quarter and full year periods of 2000, from
shipments of new equipment, including compact excavators and mini-loaders,
introduced within the past eighteen months.
AGRICULTURAL EQUIPMENT SALES
----------------------------
Despite record low milk prices, sales of agricultural equipment in the
fourth quarter of 2000 of $24.4 million were only slightly below the $26.2
million recorded in the fourth quarter of 1999. Agricultural equipment sales for
the full year ended December 31, 2000 were $107.0 million, 9% lower than the
$117.8 million recorded for the full year ended December 31, 1999. The
reductions from 1999's sales levels were due primarily to the continuation of
record low milk prices throughout 2000, and the effect of higher interest rates
and fuel costs.
GROSS MARGINS AND OPERATING EXPENSES
------------------------------------
For the fourth quarter of 2000, the Company's gross margin was 24.5%,
versus 26.3% for the fourth quarter of 1999. For the full year ended December
31, 2000, total gross margin was 26.4% vs. 27.6% for 1999. Gross margin for
construction equipment was 22.3% and 24.3% for the three month and full year
periods, respectively, both ended December 31, 2000, compared to 25.5% and
26.8%, respectively, for the comparable periods of 1999. The reductions in
construction equipment gross margins were generally the result of competitive
market conditions, a less favorable mix of product shipments and reduced
production levels; and were partially offset by improvements in manufacturing
efficiencies. Gross margin for agricultural equipment was 27.0% and 29.2%, for
the three month and full year periods, respectively, both ended December 31,
2000, compared to the 27.3% and 28.9% margins realized for the comparable
periods of 1999.
(M O R E)
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 4
Operating expense levels in the fourth quarter of 2000 increased to
21.1% of net sales, from 15.6% in the fourth quarter of 1999, and for the full
year 2000 increased to 17.8% of net sales, from 15.6% for the full year 1999. In
order to support long-term growth, Gehl continues to make significant
investments in projects such as e-commerce, improved parts distribution, new
product development and enterprise resource planning (ERP) systems. Such
investments have impacted operating expenses as a percent of net sales.
OUTLOOK
-------
Markets
- -------
The Company believes that, in general, the overall economics of its
markets will continue to be soft, especially through the first half of 2001.
Additionally, the Company expects that the general economic environment, for at
least the first half of 2001, will not differ substantially from that of the
second half of 2000, due to the interest rate increases experienced from
mid-1999 through 2000, relatively high fuel costs and an upward trend in
unemployment. Although the Company anticipates that the current interest rate
environment should assist in stimulating economic growth, the Company does not
foresee significant improvement occurring in the construction equipment or
agricultural equipment markets until the second half of 2001, at the earliest.
o In the North American construction equipment sector, the Company
expects the skid loader market, which has enjoyed double-digit growth
in recent years, to continue to grow in 2001 - but at a slower pace.
The Company expects the telescopic handler market to decline for the
second straight year, perhaps in the range of 10% to 15%, due
primarily to the continued downturn in residential and non-residential
construction markets as the result of high interest rates in 1999 and
2000. The North American compact excavator market, the growth of which
the Company believes remains substantially
(M O R E)
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 5
behind the similar European market, shows prospects of increasing by
10% to 15% in 2001.
o In the North American agricultural equipment market, the industry
faces an estimated 3% to 5% reduction in the number of dairy farms, as
well as a continuation of low milk prices for a substantial portion of
2001.
o Internationally, the Company expects business in 2001 to remain at
levels similar to those achieved in 2000. The Company believes an
opportunity exists for skid steer loader sales in Europe to increase,
if the Euro continues to strengthen against the U.S. dollar.
Strategic Direction
- -------------------
As part of its ongoing commitment to maximize long-term shareholder
value, the Company has re-doubled its efforts to overcome the twin challenges of
competitive markets and adverse economic conditions. The Company's Board of
Directors and management team have commenced certain strategic initiatives which
the Company believes will have a significant positive impact on the Company in
the years ahead. The strategic focus for 2001 and 2002 includes the following:
1. Strategic Growth in the Compact Equipment Market - The Company will
continue to focus primarily on broadening its market coverage and
expanding its product offerings to sustain sales growth in the compact
construction equipment and compact agricultural equipment marketplaces
through continuing research and development projects on skid loaders
and telescopic handlers, strategic acquisitions and new distribution
relationships.
2. Begin Shipping Significant New Product Lines - The Company has
significantly expanded its product lines. In the first half of 2001,
the Company will begin shipping eight new skid loader models, under
the Gehl and
(M O R E)
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 6
Mustang brands, in both the construction and agricultural segments.
With the addition of these new models the Company now offers the
broadest range of skid loaders in the industry, including two models
with an operating load capacity of 3600 lbs. and lift height of 142",
surpassing all other skid loader brands currently in the market. In
January, 2001, Gehl began shipping an entirely new line of round
balers into the agricultural market. In November, 2000, the Company
introduced the first North American manufactured telescopic handler
designed exclusively for the agricultural market. Offered with a full
line of versatile attachments, the Company expects this new product to
be popular with the large farm operations which increasingly dominate
agricultural production in the U.S. today. Later this month the
Company will also introduce a new 12 ton excavator, adding to its
already extensive range of compact excavation equipment. The Company
has also extended its range of attachments and accessories to further
enhance the versatility of its Gehl and Mustang branded compact
equipment.
3. Expanding Distribution and Leveraging Multiple Distribution Channels -
The Company intends to expand distribution and leverage its multiple
distribution channels to grow sales revenue in 2001 and 2002. The
Company's 2001 objectives include adding dealer coverage in key market
areas, increasing sales to independently owned rental operations and
adding telescopic handlers, compact excavators and mini-loaders to the
lines of compact equipment currently offered to rural equipment
dealers. The Company intends to further leverage its existing
distribution channel by offering additional compact equipment to
geographic markets not currently served by Gehl construction equipment
dealers and to market telescopic handlers and mini-loaders, products
currently marketed under only the Gehl brand name, under the Mustang
brand name. Dan Keyes, the Company's new Vice President of Sales and
Marketing, who comes to Gehl from CNH Global N.V. (formerly Case
Corporation), will have full responsibility for sales and marketing,
including distribution development, in both the construction and
agricultural equipment businesses.
(M O R E)
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 7
4. Actively Seeking European and Domestic Acquisitions - The Company
continues, as it has over the last two years, to work with several
investment banking firms that are actively assisting management and
the Board of Directors in identifying and evaluating potential
business combinations in Europe and the U.S. Gehl's strategic
objectives are twofold: (1) to expand its compact equipment product
offerings in U.S. markets; and (2) to enhance its distribution
capabilities in Europe and elsewhere. Significant marketing and
manufacturing synergies would be created for the Company by gaining
access to European manufacturers of compact equipment seeking to
expand their presence in North America.
5. Introducing Gehl Company's E-Commerce Initiative - The Company is
actively developing a separate, proprietary, web-enabled business to
market its own brand of products. Gehl expects the e-commerce business
to commence operating by the third quarter of 2001. The Company
expects this business to grow significantly in the years ahead.
Financial Guidance to the Investment Community
- ----------------------------------------------
Gehl Company is forecasting net sales to reach between $272 million
and $280 million in 2001, an increase of approximately 5% to 8% over 2000 net
sales levels. Diluted earnings per share (EPS) for 2001 is forecast to be in the
$1.52 to $1.62 range. In general, the Company does not foresee any significant
improvement in the overall economic environment until the second half of 2001,
at the earliest. It is anticipated that a general improvement in economic
conditions will assist in bolstering the sales of new products introduced in
2001 and second half shipments in general. However, the Company anticipates the
full impact of its strategic actions will not be fully realized until 2002, and
beyond, due to the anticipated timing of the improvement in the economy
(M O R E)
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 8
and the natural time lag associated with implementation of the strategic
initiatives described above.
In the construction equipment segment, the Company is forecasting 2001
net sales to be between $156 million and $160 million, an increase of
approximately 3% to 6% over the net sales levels realized in 2000. The increase
is anticipated to occur primarily as the result of new model skid loader
shipments, e-commerce initiatives and increased shipments of compact excavators
and mini-loaders. Offsetting these developments, the Company expects a decrease
in its telescopic handler shipments in similar proportion to the anticipated
overall market decline.
In the agricultural equipment segment, the Company is forecasting 2001
net sales to be between $116 million and $120 million, an increase of
approximately 8% to 12% over the 2000 net sales levels. The increase is
anticipated to occur primarily as the result of the new model round baler and
skid loader shipments, and an increase in shipments of compact equipment
(telescopic handlers, compact excavator and mini-loader products) to rural
equipment dealers which serve areas not currently covered by Gehl construction
dealers.
Consolidated gross profit margin for 2001 is forecasted in the range
of 26.1% to 26.6%, compared to the 2000 consolidated gross margin percentage of
26.4%. The primary factors that could adversely affect margin include: 1)
anticipated limited price increases as a result of competitive market
conditions; 2) a decrease in the percentage of shipments comprised of telescopic
handlers, typically a higher gross margin product; 3) increased shipment levels
of compact excavators and mini-loaders, which have lower than average gross
margins due to the purchased finished goods nature of the product; and 4)
reduced production levels at a number of construction equipment manufacturing
facilities in 2001 versus 2000. Offsetting these items are anticipated increased
agricultural equipment production levels (primarily round balers), and improved
efficiencies expected at a number of Company manufacturing facilities.
(M O R E)
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 9
Operating expenses are expected to rise slightly, as a percentage of
net sales, to the range of 18.0% to 18.4% for 2001. Certain ongoing spending in
support of revenue enhancing projects, including e-commerce, distribution and
product development, service and parts consolidations, and the implementation of
enterprise resource planning (ERP) systems, are expected to continue. In
addition, the very competitive market forces in both segments are expected to
result in higher requirements for certain sales-related expenses.
The Company expects that a higher proportion of dealers and end-users
utilizing low retail finance rate programs to be offered in 2001 may result in
other expenses increasing by approximately $1 million. The Company's
expectations are that the average level of borrowings outstanding under the
credit revolver will remain reasonably constant in 2001 as compared with 2000.
On a quarterly basis, 2001 will trend differently than 2000, as a
result of changing market dynamics, and the expected contributions of new
products offered, as well as existing products offered through additional
channels of Gehl's distribution network. For further guidance, please refer to
the addendum that follows the financial statements, which provides quarterly
guidance for 2001 and an initial full year forecast for 2002.
Regarding 2002, Gehl Company expects continued economic improvement
and continued rewards for the strategic initiatives implemented throughout 2001.
Specifically, the Company is expecting:
o Improved North American skid loader and telescopic handler markets;
o Better European markets for the skid loader product line;
o Continued acceptance, and full year impact, of products introduced
during 2001;
o Continued success of rural equipment dealers and Mustang dealers in
selling compact equipment first available to these distribution
channels in 2001;
(M O R E)
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 10
o Continued growth of the compact excavator market at above average
growth rates;
o Continued growth in sales of attachments; and
o Expanded web-based e-commerce business.
As noted in the addendum following the financial statements, the
Company expects slightly improved gross margins and a lower percentage of
operating expenses to net sales for 2002, which should result in EPS ranging
from $2.10 to $2.30 per diluted share.
Gehl Company (Nasdaq: GEHL) is a leading manufacturer of equipment
used worldwide in construction and agricultural markets. Founded in 1859, the
Company is headquartered in West Bend, WI, with manufacturing facilities in West
Bend, WI; Lebanon, PA; Madison and Yankton, SD; and Owatonna, MN. Mustang (R)
product information is available on the Mustang Manufacturing Website
(www.mustangmfg.com). Gehl Company information is available on the Gehl (R)
Website (www.gehl.com) or contact Gehl Company, 143 Water Street, West Bend, WI
53095 (telephone: 262/334-9461).
The Company intends that certain matters discussed in this press
release are "forward-looking statements" intended to qualify for the safe harbor
from liability established by the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact, including
statements regarding the Company's future financial position, business strategy,
targets, projected sales, costs, earnings and capital spending, and the plans
and objectives of management for future operations, are forward-looking
statements. When used in this press release, words such as the Company
"believes," "anticipates," "expects" or "estimates" or words of similar meaning
are generally intended to identify forward-looking statements. These
forward-looking statements are not guarantees of future performance and are
subject to certain risks, uncertainties, assumptions and other factors, some of
which are beyond the Company's control, that could cause actual results to
differ materially from those anticipated as of the date of this press release.
Factors that could cause such a variance include, but are not limited to,
unanticipated changes in general economic and capital market conditions, the
Company's ability to implement successfully the strategic initiatives described
above, market acceptance of newly introduced products, the cyclical nature of
the Company's business, the Company's and its customers' access to credit,
(M O R E)
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 11
competitive pricing, product initiatives and other actions taken by competitors,
disruptions in production capacity, excess inventory levels, the effect of
changes in laws and regulations (including government subsidies and
international trade regulations), technological difficulties, changes in
environmental laws, the impact of any acquisition effected by the Company, and
employee and labor relations. Shareholders, potential investors, and other
readers are urged to consider these factors in evaluating the forward-looking
statements and are cautioned not to place undue reliance on such forward-looking
statements. The forward-looking statements included in this release are only
made as of the date of this release, and the Company undertakes no obligation to
publicly update such forward-looking statements to reflect subsequent events or
circumstances. In addition, the Company's expectations for fiscal years 2001 and
2002 are based in part on certain assumptions made by the Company, including
those relating to commodities prices, which are strongly affected by weather and
other factors and can fluctuate significantly, housing starts and other
construction activities, which are sensitive to, among other things, interest
rates and government spending, and the performance of the U.S. economy
generally. The accuracy of these or other assumptions could have a material
effect on the Company's ability to achieve its expectations.
(TABLES TO FOLLOW)
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 12
GEHL COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
For the Fourth Quarter Ended For the Year Ended
(unaudited) (audited)
---------------------------------------- ------------------------------------
Dec. 31, 2000 Dec. 31, 1999 Dec. 31, 2000 Dec. 31, 1999
--------------- ------------------ -------------- ---------------
NET SALES (1) $ 52,147 $ 64,358 $ 258,118 $ 291,398
Cost of goods sold (1) 39,369 47,464 190,093 210,851
--------------- ------------------ -------------- ---------------
GROSS PROFIT 12,778 16,894 68,025 80,547
Selling, general
& administrative expenses (1) 11,011 10,023 46,040 45,490
--------------- ------------------ -------------- ---------------
INCOME FROM OPERATIONS 1,767 6,871 21,985 35,057
Interest expense (1,272) (740) (4,741) (3,083)
Interest income 483 265 1,760 1,555
Other (expense) income, net (562) (493) (4,148) (2,235)
--------------- ------------------ -------------- ---------------
INCOME BEFORE INCOME TAXES 416 5,903 14,856 31,294
Income tax provision 146 2,095 5,200 11,109
--------------- ------------------ -------------- ---------------
NET INCOME $ 270 $ 3,808 $ 9,656 $ 20,185
=============== ================== ============== ===============
EARNINGS PER SHARE
Diluted $ .05 $ .64 $ 1.72 $ 3.17
Weighted average number of common
shares and common stock equivalents 5,412 5,925 5,607 6,359
Basic $ .05 $ .67 $ 1.76 $ 3.29
Weighted average number of common
shares 5,343 5,726 5,475 6,126
(1) During the fourth quarter of 2000, the Company adopted the provisions of the
Emerging Issues Task Force ("EITF") Issue No. 00-10 "Accounting for Shipping and
Handling Fees and Costs". In accordance with the provisions of EITF 00-10,
certain shipping and handling fees and costs which the Company had previously
recorded on a net basis as a component of selling, general, and administrative
expenses will be reflected in net sales and cost of goods sold, as appropriate.
As a result of adopting EITF 00-10, the Company has restated previous quarters
of 2000 and previous year's financial information to reflect comparable
reporting of such shipping and handling fees.
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 13
GEHL COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands - audited)
December 31, 2000 December 31, 1999
-------------------- ----------------------
ASSETS
Cash $ 2,590 $ 1,010
Accounts receivable - net 69,546 68,551
Inventories 45,598 35,206
Prepaid income taxes 8,078 8,431
Finance contracts receivable - net 16,549 12,074
Other current assets 636 511
-------------------- ----------------------
Total current assets 142,997 125,783
Property, plant and equipment - net 46,172 37,028
Intangible assets 13,086 15,706
Other assets 20,463 15,643
-------------------- ----------------------
TOTAL ASSETS $ 222,718 $ 194,160
==================== ======================
LIABILITIES AND SHAREHOLDERS' EQUITY
Total current liabilities $ 50,027 $ 56,299
Long-term debt obligations 60,885 31,097
Deferred income taxes 5,096 3,949
Other long-term obligations 3,692 5,391
Total shareholders' equity 103,018 97,424
-------------------- ----------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 222,718 $ 194,160
==================== ======================
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 14
GEHL COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Year Ended
(audited)
----------------------------------------------------
Dec. 31, 2000 Dec. 31, 1999
-------------------- ----------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 9,656 $ 20,185
Adjustments to reconcile net income to net cash (used for)
provided by operating activities:
Depreciation 4,885 4,329
Amortization 849 782
Gain on sale of property, plant and equipment (863) (46)
Cost of sales of finance contracts 4,990 2,911
Deferred income taxes 121 (1,421)
Increase in finance contracts receivable (105,606) (80,834)
Proceeds from sales of finance contracts 93,485 74,128
Net changes in remaining working capital items (14,649) 4,930
-------------------- ----------------------
Net cash (used for) provided by operating activities (7,132) 24,964
-------------------- ----------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment additions (12,577) (7,281)
Other (3,247) (2,601)
-------------------- ----------------------
Net cash used for investing activities (15,824) (9,882)
-------------------- ----------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from line of credit facility 29,570 2,679
Purchase of treasury stock (5,924) (18,523)
Proceeds from issuance of common stock 526 1,070
Other 364 (185)
-------------------- ----------------------
Net cash provided by (used for) financing activities 24,536 (14,959)
-------------------- ----------------------
Net increase in cash 1,580 123
Cash, beginning of period 1,010 887
-------------------- ----------------------
Cash, end of period $ 2,590 $ 1,010
==================== ======================
Gehl Company
Gehl Company Reports 4th Quarter and Full Year Results
February 15, 2001
page 15
Addendum to the Financial Results
Gehl Company Guidance to the Investment Community
February 15, 2001
2001 Full Year
----------------------------------------------------------------------------
Q1 Q2 Q3 Q4 Full Year 2002
--------------------------------------------------------------------------------------------
Agriculture Net Sales ($ millions) 29.5 - 30.5 31.5 - 32.5 32 - 33 23 - 24 116 - 120
Construction Net Sales ($ millions) 32 - 33 47 - 48 42.5 - 43.5 34.5 - 35.5 156 - 160
--------------------------------------------------------------------------------------------
Total Net Sales ($millions) 61.5 - 63.5 78.5 - 80.5 74.5 - 76.5 57.5 - 59.5 272 - 280 298 - 308
+9.6 - 10.0%
Gross Margin (%) 25.8 - 26.3 26.4 - 26.9 26.9 - 27.4 25.0 - 25.5 26.1 - 26.6 26.5 - 27.0
Selling, General & Admin. Expenses (%) 19.9 - 20.1 16.4 - 16.6 16.9 - 17.1 19.8 - 20.0 18.0 - 18.4 17.0 - 17.5
Income from Operations (%) 5.7 - 6.4 10.0 - 10.5 10.0 - 10.5 5.1 - 5.7 8.0 - 8.4 9.0 - 9.4
Diluted EPS $.15 - .21 $.61 - .67 $.59 - .65 $.11 - .17 $1.52 - 1.62 $2.10 - 2.30
Safe Harbor for Guidance Addendum:
This table consists solely of forward-looking information intended to qualify
for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. This forward-looking information is not a
guarantee of future performance and is subject to certain risks, uncertainties,
assumptions and other factors, some of which are beyond the Company's control,
that could cause actual results to differ materially from those anticipated on
the date hereof. Factors that could cause such a variance include, but are not
limited to, unanticipated changes in general economic and capital market
conditions, the Company's ability to implement successfully its strategic
initiatives, market acceptance of newly introduced products, the cyclical nature
of the Company's business, the Company's and its customers' access to credit,
competitive pricing, product initiatives and other actions taken by competitors,
disruptions in production capacity, excess inventory levels, the effect of
changes in laws and regulations (including government subsidies and
international trade regulations), technological difficulties, changes in
environmental laws, the impact of any acquisition effected by the Company, and
employee and labor relations. Shareholders, potential investors, and other
readers are urged to consider these factors in evaluating the forward-looking
information and are cautioned not to place undue reliance on such
forward-looking information. The forward-looking information included in this
addendum is only as of the date of this addendum, and the Company undertakes no
obligation to publicly update such forward-looking information to reflect
subsequent events or circumstances. In addition, the Company's expectations for
fiscal years 2001 and 2002 are based in part on certain assumptions made by the
Company, including those relating to commodities prices, which are strongly
affected by weather and other factors and can fluctuate significantly, housing
starts and other construction activities, which are sensitive to, among other
things, interest rates and government spending, and the performance of the U.S.
economy generally. The accuracy of these or other assumptions could have a
material effect on the Company's ability to achieve its expectations.
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