1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended April 30, 2001
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
--------------- --------------
Commission file number: 0-8454
JLG INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 25-1199382
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1 JLG Drive, McConnellsburg, PA 17233-9533
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(7l7) 485-5161
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
The number of shares of capital stock outstanding as of June 12, 2001 was
41,923,939
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TABLE OF CONTENTS
PART 1
Item 1. Financial Information....................................... 1
Condensed Consolidated Balance Sheets....................... 1
Condensed Consolidated Statements of Income................. 2
Condensed Consolidated Statements of Cash
Flows....................................................... 3
Notes to Condensed Consolidated Financial
Statements.................................................. 4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations......................... 7
Item 3. Quantitative and Qualitative Disclosures about
Market Risk................................................. 10
Independent Accountants' Review Report................................. 11
PART II
Item 6. Exhibits and Reports on Form 8-K............................ 12
Signature ............................................................ 12
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PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JLG INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands) April 30, July 31,
2001 2000
---------- ---------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 9,728 $ 25,456
Trade receivables-net 202,303 172,511
Inventories 276,929 147,991
Other current assets 14,567 10,594
--------- ---------
Total current assets 503,527 356,552
Property, plant and equipment - net 101,347 105,879
Equipment held for rental - net 12,537 12,153
Lease receivables - net 35,689 --
Goodwill - net 141,655 145,867
Other assets 24,588 33,136
--------- ---------
$ 819,343 $ 653,587
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt $ 20,109 $ 9,184
Accounts payable 97,362 116,616
Accrued expenses 59,939 64,829
--------- ---------
Total current liabilities 177,410 190,629
Long-term debt 262,956 89,118
Accrued post-retirement benefits 23,612 22,943
Other long-term liabilities 9,987 12,623
Provisions for contingencies 17,629 14,223
Shareholders' equity
Capital stock:
Authorized shares: 100,000 at $.20 par
Issued shares: 41,924 fiscal 2000 - 43,648 8,385 8,729
Additional paid-in capital 11,879 12,514
Retained earnings 314,386 308,966
Unearned compensation (1,108) (1,474)
Accumulated other comprehensive income (5,793) (4,684)
--------- ---------
Total shareholders' equity 327,749 324,051
--------- ---------
$ 819,343 $ 653,587
========= =========
The accompanying notes are an integral part of these financial statements.
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JLG INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
April 30, April 30,
2001 2000 2001 2000
--------- --------- --------- ---------
Net sales $ 219,473 $ 291,564 $ 682,276 $ 716,427
Cost of sales 172,295 227,604 541,133 561,300
--------- --------- --------- ---------
Gross profit 47,178 63,960 141,143 155,127
Selling and administrative expenses 19,616 24,518 65,646 70,234
Product development expenses 3,904 3,842 11,924 11,444
Goodwill amortization 1,529 1,546 4,508 4,633
--------- --------- --------- ---------
Income from operations 22,129 34,054 59,065 68,816
Other income (deductions):
Interest expense (6,335) (5,891) (16,443) (14,791)
Miscellaneous, net 1,143 482 2,719 545
--------- --------- --------- ---------
Income before taxes 16,937 28,645 45,341 54,570
Income tax provision 6,276 10,517 16,776 20,109
--------- --------- --------- ---------
Net income $ 10,661 $ 18,128 $ 28,565 $ 34,461
========= ========= ========= =========
Earnings per common share $ .26 $ .41 $ .68 $ .79
========= ========= ========= =========
Earnings per common share -
assuming dilution $ .25 $ .40 $ .67 $ .76
========= ========= ========= =========
Cash dividends per share $ .01 $ .01 $ .03 $ .025
========= ========= ========= =========
The accompanying notes are an integral part of these financial statements.
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JLG INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited) Nine Months Ended
April 30,
2001 2000
--------- ---------
Operations
Net income $ 28,565 $ 34,461
Adjustments to reconcile net income to
cash flow from operating activities:
Gain on sale of joint venture (1,008) --
Non-cash charges and credits:
Depreciation and amortization 19,885 20,104
Other 6,477 3,672
Changes in selected working capital items:
Trade receivables (29,903) (83,919)
Inventories (128,929) (64,166)
Other operating assets and liabilities (28,001) (4,280)
Lease receivables (35,689) --
Changes in other assets and liabilities (16) (307)
--------- ---------
Cash flow from operating activities (168,619) (94,435)
Investments
Net purchases of property, plant and equipment (8,737) (16,723)
Additions to equipment held for rental (19,904) (24,293)
Retirements of equipment held for rental 17,402 26,526
Proceeds from sale of joint venture 4,000 --
--------- ---------
Cash flow from investing activities (7,239) (14,490)
Financing
Net increase in short-term debt 10,923 4,675
Issuance of long-term debt 417,287 283,087
Repayment of long-term debt (243,446) (186,289)
Payment of dividends (1,279) (1,106)
Purchase of common stock (22,201) (6,789)
Exercise of stock options and issuance of restricted awards (529) 1,435
--------- ---------
Cash flow from financing activities 160,755 95,013
Currency Adjustments
Effect of exchange rate changes on cash (625) (590)
--------- ---------
Cash
Net change in cash and cash equivalents (15,728) (14,502)
Beginning balance 25,456 19,033
--------- ---------
Ending balance $ 9,728 $ 4,531
========= =========
The accompanying notes are an integral part of these financial statements.
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JLG INDUSTRIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS APRIL 30, 2001 (in
thousands, except per share data)
(Unaudited)
BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all information and notes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included.
Interim results for the nine month period ended April 30, 2001 are not
necessarily indicative of the results that may be expected for the fiscal year
as a whole. For further information, refer to consolidated financial statements
and notes thereto included in the Company's annual report on Form 10-K for the
fiscal year ended July 31, 2000.
INVENTORIES AND COST OF SALES
A precise inventory valuation under the LIFO (last-in, first-out) method can
only be made at the end of each fiscal year; therefore, interim LIFO inventory
valuation determinations, including the determination at April 30, 2001, must
necessarily be based on management's estimate of expected fiscal year-end
inventory levels and costs.
Inventories consist of the following:
April 30, July 31,
2001 2000
-------- --------
Finished goods $214,927 $ 97,858
Raw materials and work in process 63,517 52,775
-------- --------
278,444 150,633
Less LIFO provision 1,515 2,642
-------- --------
$276,929 $147,991
======== ========
REPURCHASE OF CAPITAL STOCK
During the nine months ended April 30, 2001, the Company repurchased 1.7 million
shares of its capital stock at an aggregate cost of $22.2 million. At April 30,
2001, the Company had Board authorization to repurchase an additional 2.5
million shares of its capital stock.
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BASIC AND DILUTED EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per
share for each of the periods ended April 30:
Three Months Ended Nine Months Ended
April 30, April 30,
2001 2000 2001 2000
------- ------- ------- -------
Net income $10,661 $18,128 $28,565 $34,461
======= ======= ======= =======
Denominator for basic earnings per share --
weighted average shares 41,699 43,701 42,271 43,897
Effect of dilutive securities - employee stock
options and unvested restricted shares 572 1,986 531 1,746
------- ------- ------- -------
Denominator for diluted earnings per share --
weighted average shares adjusted for
dilutive securities 42,271 45,687 42,802 45,643
======= ======= ======= =======
Earnings per common share $ .26 $ .41 $ .68 $ .79
======= ======= ======= =======
Earnings per common share -
assuming dilution $ .25 $ .40 $ .67 $ .76
======= ======= ======= =======
During the quarter ended April 30, 2001, options to purchase 1.1 million shares
of capital stock with exercise prices ranging from $13.69 to $21.94 were not
included in the computation of diluted earnings per share because the exercise
prices were greater than the average market price of the capital stock.
COMPREHENSIVE INCOME
On an annual basis, comprehensive income is disclosed in the Statement of
Shareholders' Equity. This statement is not presented on a quarterly basis. The
following table sets forth the components of comprehensive income for each of
the periods ended April 30:
Three Months Ended Nine Months Ended
April 30, April 30,
2001 2000 2001 2000
------- ------- ------- -------
Net income $10,661 $18,128 $28,565 $34,461
Aggregate currency translation adjustment (456) 572 368 600
------- ------- ------- -------
$10,205 $18,700 $28,933 $35,061
======= ======= ======= =======
SEGMENT INFORMATION
The Company has organized its business into two segments consisting of
manufactured products and services. The Machinery segment contains the design,
manufacture and sale of new equipment, and the Equipment Services segment
contains financing and leasing activities and after-sales service and support,
including parts sales, equipment rentals, used equipment sales and rebuilt
equipment. The Company evaluates performance and allocates resources based on
operating profit before interest, miscellaneous income/expense and income
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taxes. Intersegment sales and transfers are not significant. The accounting
policies of the reportable segments are the same as those described in the
summary of significant accounting policies.
Business segment information consisted of the following for each of the periods
ended April 30:
Three Months Ended Nine Months Ended
April 30, April 30,
2001 2000 2001 2000
--------- --------- --------- ---------
External sales:
Machinery $ 189,636 $ 260,953 $ 590,929 $ 620,870
Equipment services 29,837 30,611 91,347 95,557
--------- --------- --------- ---------
$ 219,473 $ 291,564 $ 682,276 $ 716,427
========= ========= ========= =========
Segment profit (loss):
Machinery $ 25,617 $ 35,528 $ 71,674 $ 74,070
Equipment services 3,585 10,168 15,907 29,346
General corporate (7,073) (11,642) (28,516) (34,600)
--------- --------- --------- ---------
$ 22,129 $ 34,054 $ 59,065 $ 68,816
========= ========= ========= =========
The Company manufactures its products in the United States and sells these
products globally, but principally in North America, Europe, Australia and South
America. No single foreign country is significant to the consolidated
operations. Sales by geographic area were as follows for each of the periods
ended April 30:
Three Months Ended Nine Months Ended
April 30, April 30,
2001 2000 2001 2000
-------- -------- -------- --------
United States $168,775 $227,156 $520,681 $538,994
Europe 38,487 49,431 124,409 131,948
Other 12,211 14,977 37,186 45,485
-------- -------- -------- --------
$219,473 $291,564 $682,276 $716,427
======== ======== ======== ========
COMMITMENTS AND CONTINGENCIES
The Company is a party to personal injury and property damage litigation arising
out of incidents involving the use of its products. The Company's insurance
program for fiscal year 2001 is comprised of a self-insured retention of $7
million for domestic claims, insurance coverage of $2 million for international
claims and catastrophic coverage for domestic and international claims of $75
million in excess of the retention and international primary coverage. The
Company contracts with an independent firm to provide claims handling and
adjustment services. The Company's estimates with respect to claims are based on
internal evaluations of the merits of individual claims and the reserves
assigned by the Company's independent firm. The methods of making such estimates
and establishing the resulting accrued liability are reviewed frequently, and
any adjustments resulting therefrom are reflected in current earnings. Claims
are paid over varying periods, which generally do not exceed five years. Accrued
liabilities for future claims are not discounted.
With respect to all product liability claims of which the Company is aware,
accrued liabilities of $17.3 million and $16.1 million were established at April
30, 2001 and July 31, 2000, respectively. While the Company's ultimate liability
may exceed or be less than the amounts accrued, the Company believes that it is
unlikely that it would experience losses that are materially in excess of such
reserve amounts. As of April 30, 2001 and July 31, 2000, there were no insurance
recoverables or offset implications and there were no claims by the Company
being contested by insurers.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS FOR THE THIRD QUARTERS OF FISCAL 2001 AND 2000
Sales for the third quarter of fiscal 2001 were $219.5 million, a decrease of
25% over the $291.6 million in the comparable year-ago period. Machinery sales
for the current quarter were $189.6 million, a decrease of $71.4 million, or
27%, from the $261.0 million for the comparable prior year quarter. The decrease
is principally attributable to lower aerial work platform and material handler
sales. Equipment Services sales for the current year quarter were $29.8 million,
a slight decrease from the $30.6 million for the comparable prior year quarter.
Domestic sales for the third quarter of fiscal 2001 were $168.8 million, down
26% from the comparable year-ago period sales of $227.2 million. International
sales for the third quarter of fiscal 2001 were $50.7 million, a decrease of 21%
from the corresponding quarter of the previous year.
The Company's sales by product (in thousands) consisted of the following for the
third quarter ended April 30:
2001 2000
-------- --------
Aerial work platforms $149,250 $204,448
Material handlers 23,660 40,409
Excavators 16,726 16,096
Financing and leasing activities and after-sales service
and support, including parts sales, equipment rentals,
used equipment sales and rebuilt equipment 29,837 30,611
-------- --------
$219,473 $291,564
======== ========
Gross profit margin was 21.5% for the third quarter of fiscal 2001 compared to
the prior year quarter's 21.9%. The principal contributors to this reduction
were the effect of a sale-leaseback of rental fleet assets; the lower sales
volume and the fixed nature of certain manufacturing costs; and the
strengthening of the U. S. dollar against foreign currencies, particularly the
Euro, British pound and Australian dollar. These reductions were partially
offset by ongoing cost savings initiatives and improved pricing.
Selling, administrative and product development expenses as a percent of sales
were 10.7% for the current year third quarter compared to 9.7% for the prior
year third quarter. In terms of dollars, these expenses were $4.8 million lower
for the current quarter principally resulting from lower advertising, bonus and
legal costs. The current quarter also includes the effect of the capitalization
of software costs. In addition, the comparable year ago period included higher
retirement plan charges resulting from early retirements and consulting costs.
The effective tax rate was 37% for the current and prior year quarters.
RESULTS FOR THE FIRST NINE MONTHS OF FISCAL 2001 AND 2000
Sales for the first nine months of fiscal 2001 were $682.3 million, down 5% over
the $716.4 million in the comparable year-ago period. Machinery sales for the
first nine months of fiscal 2001 were $590.9 million, a decrease of $30.0
million or 5% from the $620.9 million for the comparable prior year period. The
decrease is principally attributable to lower aerial work platform and material
handler sales. Equipment Services sales for the current year nine months were
$91.3 million, a decrease of $4.2 million or 4% from the $95.6 million for the
comparable prior year period. The first nine months of fiscal 2001 included the
sale-leaseback of rental fleet assets in which the profit is deferred and
amortized over the lease terms, while the same period of fiscal 2000 benefited
from several large sales.
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Domestic sales for the first nine months of fiscal 2001 were $520.7 million,
down 3% from the comparable year-ago period sales of $539.0 million.
International sales for the first nine months of fiscal 2001 were $161.6
million, down 9% from the corresponding period of the previous year.
The Company's sales by product (in thousands) consisted of the following for the
nine months ended April 30:
2001 2000
-------- --------
Aerial work platforms $485,484 $496,858
Material handlers 60,651 78,899
Excavators 44,794 45,113
Financing and leasing activities and after-sales service
and support, including parts sales, equipment rentals,
used equipment sales and rebuilt equipment 91,347 95,557
-------- --------
$682,276 $716,427
======== ========
Gross profit margin was 20.7% for the first nine months of fiscal 2001 compared
to the prior year period's 21.7%. The principal contributors to this reduction
were the strengthening of the U. S. dollar against foreign currencies,
particularly the Euro, British pound and Australian dollar, competitive pricing
pressures and the effect of the rental fleet sale-leaseback transactions. These
reductions were partially offset by ongoing cost savings initiatives.
Selling, administrative and product development expenses as a percent of sales
were 11.4% for the first nine months of fiscal 2001 and 2000. In terms of
dollars, these expenses were $4.1 million lower for the current quarter
principally resulting from lower advertising, bonus and legal costs during the
current year nine months. The current year period also includes the effect of
the capitalization of software costs. Partially offsetting these decreases were
higher consulting costs and pension charges resulting from early retirements in
the comparable year ago period.
The increase in interest charges of $1.7 million for the first nine months of
fiscal 2001 compared to the same period of last year was principally due to
increased investment in inventories and receivables.
Miscellaneous expense included currency losses of $519 thousand in the first
nine months of fiscal 2001 compared to $1.8 million in the corresponding prior
year period. The current year period also benefited from a $1.0 million gain on
the sale of the Company's interest in its Brazilian joint venture.
The effective tax rate was 37% for the current and prior year periods.
FINANCIAL CONDITION
Cash flow used in operating activities was $168.6 million for the first nine
months of fiscal 2001 versus $94.4 million in the comparable period of fiscal
2000. The increase in cash usage was primarily driven by increased investment in
receivables and inventories. Receivables reflect higher financing activities and
extended payment terms which were partially offset by $48.5 million in
securitization. The Company has implemented production adjustments to
significantly reduce inventories by the end of its fiscal year.
Investing activities during the first nine months of fiscal 2001 used $7.2
million of cash compared to $14.5 million for last year's comparable period. The
improvement in cash used by investing activities for the first nine months of
fiscal 2001 resulted principally from lower capital expenditures compared to the
prior year period.
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Financing activities provided cash of $160.8 million for the first nine months
of fiscal 2001 compared to $95.0 million for the first nine months of fiscal
2000. The increase in cash provided from financing activities largely resulted
from higher borrowings under the Company's credit facilities due to the working
capital investments discussed above. Pursuant to the Company's share repurchase
program, the first nine months of fiscal 2001 included the repurchase of 1.7
million shares at an aggregate cost of $22.2 million.
At April 30, 2001, the Company had unused credit lines totaling $91.3 million.
In order to meet its future cash requirements, the Company intends to use
internally generated funds and to borrow under its credit facilities. Based on
its forecasting process, the Company believes that these resources will be
sufficient to meet its cash requirements over the next 12 months, including
$8.6 million in capital expenditures and start-up costs related to commencing
aerial work platform assembly in Europe.
In addition to measuring its cash flow generation and usage based upon the
operating, investing, and financing classifications included in the Consolidated
Statements of Cash Flows, the Company also measures its free cash flow. Free
cash flow, a measure commonly employed by the financial community, is defined by
the Company as cash flow from operating activities less capital expenditures
including equipment held for rental, plus proceeds from the disposal of assets
and unrealized currency gains or losses. During the first nine months of fiscal
2001, the Company had negative free cash flow of $175.5 million compared to
negative free cash flow of $108.0 million for the corresponding period in fiscal
2000.
The Company's exposure to product liability claims is discussed in the note
entitled Commitments and Contingencies of the Notes to Condensed Consolidated
Financial Statements of this report. Future results of operations, financial
condition and liquidity may be affected to the extent that the Company's
ultimate exposure with respect to product liability varies from current
estimates.
OUTLOOK
This Outlook section and other parts of this Management's Discussion and
Analysis contain forward-looking information and involve certain risks and
uncertainties that could significantly impact expected results. Certain
important factors that, in some cases have affected, and in the future could
affect, the Company's results of operations and that could cause such future
results of operations to differ are described in "Cautionary Statements Pursuant
to the Securities Litigation Reform Act" which is an exhibit to this report.
Economic factors affecting demand for the Company's products remain mixed.
Nonetheless, management's expectations for the fourth quarter and beginning of
fiscal 2002 compared to the prior periods are that North American demand for
aerial work platforms and telescopic material handlers will decline and that
sources of financing for North America and European customers to purchase the
Company's equipment will continue to be more limited.
Accordingly, following a managed reduction of production levels during the first
half of the quarter, on June 14, 2001, the Company announced a broader plan to
reposition its operations to more appropriately align its costs with its
business and further enhance the Company's competitive advantage. The plan
includes the permanent closure of one of two facilities in Bedford,
Pennsylvania, during the first quarter of fiscal 2002. Operations at this
75,000-square-foot facility will relocate to other Company plants where improved
manufacturing processes have increased capacity and flexibility. The closing
will result in a reduction of approximately 265 people over the course of the
next two months. In addition, aligning the workforce with current economic
conditions at other facilities will result in a further reduction of
approximately 370 people during the fourth quarter for a total of 635 people.
The broad plan involves an estimated one-time pre-tax charge of $16 million to
be taken in the fiscal fourth quarter. Of the $16 million, approximately $5
million is associated with the personnel reductions and plant closing, $9
million reflects current period charges due to idle facilities associated with
the fourth quarter production shutdowns and a revaluation of used equipment
inventory, primarily non-JLG branded units. The
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remaining $2 million includes costs relating to restructuring of existing
distribution relationships in Europe and the Pacific Rim regions. Finished goods
inventories are unaffected by the charge, but will be significantly reduced by
fourth quarter-end due to lower production levels and projected sales. Cash
charges total $6 million out of the $16 million. The estimated impact on fourth
quarter earnings will be $.24 per diluted share.
Updating its previously announced plans for European sourcing and
manufacturing, the Company also announced that it intends to open a European
aerial work platform assembly facility in Belgium during the first quarter of
fiscal year 2002. Management believes this initiative will enable the Company
to enhance its manufacturing, customer service and support by the establishment
of a European based manufacturing and procurement capability and to potentially
obtain other cost reductions through local incentive programs. Management
anticipates a reduction in the Company's freight costs and lead times as well
as better insight and increased responsiveness to the Company's customer base
in Europe. In addition, management expects that local sourcing of components
will provide a natural hedge to fluctuations in selling prices resulting from
currency swings.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is exposed to market risk from changes in interest rates and foreign
currency exchange rates, which could affect its future results of operations and
financial condition. The Company manages exposure to these risks principally
through its regular operating and financing activities.
While the Company is exposed to changes in interest rates as a result of its
outstanding debt, the Company does not currently utilize any derivative
financial instruments related to its interest rate exposure. Total interest
bearing liabilities at April 30, 2001 consisted of $279 million in variable rate
borrowing, $49 million in accounts receivable securitization and $4 million in
fixed rate borrowing. At the current level of variable rate borrowing, a
hypothetical 10% increase in interest rates would decrease pre-tax current year
earnings by approximately $2.0 million on an annual basis. A hypothetical 10%
change in interest rates would not result in a material change in the fair value
of the Company's fixed rate debt.
The Company does not have a material exposure to financial risk from using
derivative financial instruments to manage its foreign currency exposures. For
additional information, reference is made to Item 7 in the Company's annual
report on Form 10-K for the fiscal year ended July 31, 2000.
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INDEPENDENT ACCOUNTANTS' REVIEW REPORT
The Board of Directors
JLG Industries, Inc.
We have reviewed the accompanying condensed consolidated balance sheet of JLG
Industries, Inc. as of April 30, 2001, and the related condensed consolidated
statements of income for the three month and nine-month periods ended April 30,
2001 and 2000 and the condensed consolidated statements of cash flows for the
nine-month periods ended April 30, 2001 and 2000. These financial statements are
the responsibility of the Company's management.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data, and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with auditing standards generally accepted in the United States,
which will be performed for the full year with the objective of expressing an
opinion regarding the financial statements taken as a whole. Accordingly, we do
not express such an opinion.
Based on our reviews, we are not aware of any material modifications that should
be made to the accompanying condensed consolidated financial statements referred
to above for them to be in conformity with accounting principles generally
accepted in the United States.
We have previously audited, in accordance with auditing standards generally
accepted in the United States, the consolidated balance sheet of JLG Industries,
Inc. as of July 31, 2000, and the related consolidated statements of income,
shareholders' equity, and cash flows for the year then ended (not presented
herein), and in our report dated September 6, 2000, we expressed an unqualified
opinion on those consolidated financial statements. In our opinion, the
information set forth in the accompanying condensed consolidated balance sheet
as of July 31, 2000, is fairly stated, in all material respects, in relation to
the consolidated balance sheet from which it has been derived.
/s/ Ernst & Young LLP
Baltimore, Maryland
May 14, 2001
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PART II OTHER INFORMATION
ITEMS 1 - 5
None/not applicable.
ITEM 6 -- EXHIBITS AND REPORTS ON FORM 8-K
(a) The following exhibits are included herein:
10.1 JLG Industries, Inc. Supplemental Executive Retirement Plan
Effective September 6, 2000
10.2 JLG Industries, Inc. Stock Incentive Plan, amended and
restated as of May 23, 2001
15 Letter re: Unaudited Interim Financial Information
99 Cautionary Statements Pursuant to the Securities Litigation
Reform Act
(b) The Company was not required to file Form 8-K pursuant to requirements of
such form for any of the three months ended April 30, 2001.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized who is also signing in his capacity as
principal financial officer.
JLG INDUSTRIES, INC.
(Registrant)
/s/ James H. Woodward, Jr.
---------------------------
James H. Woodward, Jr.
Senior Vice President and
Chief Financial Officer
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