Exhibit 99.1
[JLG Logo]
JLG INDUSTRIES, INC. PRESS RELEASE
1 JLG Drive FOR IMMEDIATE RELEASE
McConnellsburg, PA 17233-9533
Telephone (717) 485-5161 CONTACT: JUNA ROWLAND
Fax (717) 485-6417 DIRECTOR - CORPORATE & INVESTOR RELATIONS
www.jlg.com (240) 313-1816, ir@jlg.com
JLG ANNOUNCES FIRST QUARTER RESULTS
MCCONNELLSBURG, PA, NOVEMBER 21, 2002 - JLG Industries, Inc. (NYSE:
JLG) today announced results for its fiscal 2003 first quarter ended October 31,
2002 with consolidated revenues of $160 million compared to prior year revenues
of $156 million. Net income was $329 thousand or $0.01 per diluted share
compared with net income for the first quarter of fiscal 2002 of $2.4 million or
$0.06 per diluted share, excluding the cumulative effect of change in accounting
principle. Selling and administrative expenses was reduced seven percent
year-on-year.
"With no strong signs of non-residential construction recovery in the
near term, our larger rental customers continue to focus on improving operations
and deferring capital spending," stated Bill Lasky, Chairman of the Board,
President and Chief Executive Officer. "In spite of this, JLG's revenues for the
quarter were comparable to last year and operating income was improved. The
Machinery segment, representing new equipment sales, showed improved
profitability, up 65 percent from last year. However, continuing soft used
equipment pricing contributed to a 32 percent reduction in profits from
Equipment Services operations. Also affecting earnings was the $1.5 million
deferred profit from a sale-leaseback transaction in the last year's first
quarter that was not repeated in the current quarter, an increase in bad debt
expense of $1.0 million, and increased foreign exchange losses."
BUSINESS OVERVIEW - CONSOLIDATED REVENUES
Three Months Ended
October 31,
PRODUCT GROUP REVENUES 2002 2001
---- ----
Aerial work platforms $ 91,313 $102,367
Telehandlers 27,602 14,104
Excavators 5,631 12,567
After-sales service and support, including parts sales, and used
and reconditioned equipment sales 29,842 21,168
Financial products 4,390 3,149
Rentals 1,709 2,807
-------- --------
$160,487 $156,162
======== ========
GEOGRAPHIC REVENUES
United States $117,350 $107,422
Europe 31,248 39,086
Other international 11,889 9,654
-------- --------
$160,487 $156,162
======== ========
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JLG Industries, Inc. - page 2
Total revenues were $160 million, up three percent above last year's
first quarter principally due to strengthening of telehandler sales in both
North America and Europe. On a geographic basis, U.S. revenues were $117
million, a nine percent improvement from the year-ago level of $107 million
mainly due to increased sales of telehandlers. European revenues were $31
million, a 20 percent decline, reflecting economic pressures in that region.
Worldwide aerial work platform revenues were $91.3 million, 11 percent
lower quarter-over-quarter, primarily due to lower sales volumes affected by
economic pressures in North America and in Europe, offset in part by stronger
sales in other international regions. Telehandler revenues at $27.6 million were
almost double year-ago levels reflecting share gains from new products,
particularly the all-wheel steer and European-design telehandler families.
After-sales service and support revenues increased 41 percent on a worldwide
basis, led by stronger parts and service revenues and increased sales of used
equipment.
Commenting on revenues for the quarter, Bill Lasky said, "We are
encouraged by the dedication of our research and development efforts that
consistently deliver a steady stream of innovative products. Over the years, JLG
products have been consistently recognized by industry-leading publications.
Most recently, JLG received Compliance Magazine's `Commitment to Worker Safety
Award' for our new fall arrest feature on the Model 740AJ boom lift. The
vertical lift Model 20DVL was named as a `Product of the Year' finalist by Plant
Engineering, and the JLG Transformer machine and Work Stations in the Sky won
Construction Equipment's `Top 100 Product Award.' These types of awards
reinforce JLG's commitment to industry-leading products.
"Additionally, we have successfully introduced JLG brand products into
both the all-wheel steer telehandler market segment in North America and the
larger telehandler market in Europe. Although we continue to gain market share,
the aerial work platform business remains affected by economic pressures in
North America and in Europe. In other international regions, notably the
Asia/Pacific Rim area, aerial sales improved 23 percent."
Excavator revenues were $5.6 million, 55 percent lower than the
year-ago quarter due to softness in the U.S. construction market and reduced
state and municipal budgets.
BUSINESS OVERVIEW - JLG EQUIPMENT OPERATIONS WITH ACCESS FINANCIAL SOLUTIONS
ON AN EQUITY BASIS
Adjusted for last year's deferred profit of $1.5 million on a
sale-leaseback transaction of rental fleet machines, manufacturing profit margin
was 15.9 percent versus 16.5 percent for the prior year period. Contributing to
the decline were: higher sales of used equipment, primarily trade-ins of older
non-JLG brand
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JLG Industries, Inc. - page 3
machines, resulting in a $1.9 million impact versus last year; $3 million in
increased product costs as a result of production variances generated in last
year's fourth quarter and amortized in the current quarter, consisting of
under-absorbed overhead and higher labor costs associated with the start-up of
the Belgium facility and transfer of the telehandler line to our McConnellsburg
facility. These are partly offset by a $1.8 million favourable product mix
mainly as a result of new product introductions.
Operating margin improved to 2.9 percent compared to 1.9 percent last
year, again as adjusted for the prior year deferred profit on a sale-leaseback
transaction. This primarily reflects a $2.6 million reduction in selling and
administrative expenses quarter-over-quarter, partly offset by a $0.7 million
increase in bad debt expense.
Interest expense was roughly comparable to last year, reflecting
increased rates on the senior subordinated debt offset by lower debt levels and
short-term rates. The net impact of currency was a negative $1.5 million,
primarily attributable to the strengthening of the U.S. dollar against the Euro
and Australian dollar. This includes the net effect of currency on sales and
exchange gains or losses reported in the miscellaneous net category.
BUSINESS OVERVIEW - ACCESS FINANCIAL SOLUTIONS OPERATIONS
Access Financial Solutions continues to contribute solidly to the
overall profitability of JLG Industries. Revenues from financial products were
$4.4 million, a 39 percent increase from the year-ago quarter principally due to
income received on pledged finance receivables and passed on to syndication
partners in the form of interest expense on limited recourse debt. The
non-monetized finance receivable portfolio at quarter end was $99.8 million, a
decrease of 22 percent from last year's $128 million. Administrative and other
expenses increased $0.2 million due primarily to an increase in bad debt
expense. No monetization transactions were completed during the first quarter,
however, these activities continue to be on track for completion in subsequent
quarters.
BUSINESS OVERVIEW - CONSOLIDATED BALANCE SHEET
Trade working capital, at $282 million, was $14 million lower than a
year ago, but $17 million higher on a sequential quarter basis. Finance
receivables increased resulting in a $28 million use of cash during the quarter.
Accounts receivable days sales outstanding remained relatively constant
year-over-year and decreased by 14 days on a sequential quarter basis.
Inventories were $5.3 million lower year-over-year but $12.5 million
above fiscal 2002 year-end levels resulting in annualized inventory turns of 3.5
versus 3.0 for the year-ago period. Domestic finished goods and used equipment
inventories decreased in the first quarter compared to the same period last
year. International finished goods increased due to lower than expected sales
volume. Raw materials and work-in-process increased year over year reflecting
the introduction of new products in Europe and North America and the transfer of
telehandler production to McConnellsburg.
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JLG Industries, Inc. - page 4
Trade accounts payable of $96 million increased by $12 million from the
prior year quarter and decreased $33 million from year-end reflecting timing of
payments at quarter-ends. Days payable outstanding at 59 days was down from 67
days at the end of fiscal 2002 and down slightly from the year-ago quarter level
of 60 days.
Three Months Ended
October 31,
FREE CASH FLOW (IN THOUSANDS) 2002 2001
- --------------------------------------------------------------------------------------------
Cash flow from net income plus non-cash charges $ 10,011 $ 7,954
Accounts receivable (1) 27,274 43,434
Inventory (12,266) 6,612
Finance receivables (2) (31,735) 3,468
Accounts payable (33,010) 6,832
Other assets and liabilities (13,284) (8,693)
Purchases of PP&E (1,650) (3,293)
Proceeds from sale of PP&E 3 111
Purchases of equipment held for rental (3,624) (10,402)
Proceeds from sales of equipment held for rental 2,505 2,513
Other (1) 1,404 8,016
- --------------------------------------------------------------------------------------------
Free cash flow $(54,372) $56,552
============================================================================================
(1) Includes changes in accounts receivable securitization and other
off-balance sheet debt.
(2) Excludes pledged receivable monetization.
NET DEBT COMPARISON (IN MILLIONS)
First
October July October Annual Quarter
2002 2002 2001 Change Change
- ----------------------------------------------------------------------------------------------------------------
Bank debt/senior subordinated notes $253.9 $191.7 $255.2 $ (1.3) $ 62.2
AFS limited recourse debt 83.2 87.6 -- 83.2 (4.4)
Accounts receivable securitization * -- -- 45.8 (45.8) --
Rental fleet lease * 4.5 5.6 11.2 (6.7) (1.1)
Equipment leases * 7.4 7.8 8.9 (1.5) (0.4)
- ----------------------------------------------------------------------------------------------------------------
Gross debt 349.0 292.7 321.1 27.9 56.3
Less cash 10.2 6.2 9.2 (1.0) (4.0)
Less AFS limited recourse debt 83.2 87.6 -- (83.2) 4.4
- ----------------------------------------------------------------------------------------------------------------
Net debt $255.6 $198.9 $311.9 $(56.3) $ 56.7
================================================================================================================
* Off-balance sheet financing.
The Company continues to consider off-balance sheet financing as part
of its net debt calculation including the rental fleet lease, a sale-leaseback
transaction completed in fiscal 2001 and certain equipment leases, representing
various leases for equipment primarily in its Shippensburg, Pennsylvania
facility. Debt-to-total capitalization ratio, including the effect of the
goodwill write-off, of 53 percent compared to 49 percent for last
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JLG Industries, Inc. - page 5
year's first quarter-end and 46 percent at year-end. Excluding the goodwill
write-off, debt-to-total capitalization was 43 percent for the first quarter
versus 37 percent for the fourth quarter of fiscal 2002.
"Our debt-to-total capitalization remains within our target range of 35
to 45 percent, if you add the goodwill write-off back into the calculation,"
commented Jim Woodward, Executive Vice President and Chief Financial Officer.
"We believe that this is a testament to our strong leadership and focus on
operating efficiency.
"Consistent with our longer term strategy, we continue to evaluate our
capacity requirements. As we continue to improve manufacturing process
efficiencies that by their very nature create additional capacity, we are
implementing a program of production shutdowns through the first half of the
fiscal year. Shutdowns allow us to maintain our trained and valued workforce
while sharing the burden. Adjusting the schedule in this manner will enable us
to schedule our production run rate to correlate more closely with customer
orders. As we enter the weakest quarter of our fiscal year, we continue to focus
our efforts to reduce order-to-delivery lead times and demand variability, both
of which are important components of our manufacturing model. In the meantime,
we continue to monitor expenses and exercise tight fiscal discipline."
OUTLOOK
U.S. economic activity in the manufacturing sector declined in October
for the second consecutive month, as the overall economy grew for the twelfth
consecutive month. Low manufacturing capacity utilizations, weak corporate
profits and continued economic uncertainty suggest that a full economic recovery
in capital spending will take time to materialize. Terrorism and potential
military action continue to add to economic uncertainty. The September data for
non-residential construction spending remains negative and declined almost 17
percent from year-ago levels. Additionally, the U.S. economic climate continues
to impact demand in other geographic regions, primarily in Europe. Several major
global economies lack domestic momentum and are themselves waiting on a U.S.-led
recovery to fuel demand.
"With few positive signs of recovery on the horizon, we now expect full
year sales to be similar to last year," noted Lasky. "Overall, we expect weaker
aerial work platform sales offset by higher sales of telehandler products,
service and support, and used equipment.
"End-user demand for access equipment continues to be strong. Rental
companies report that access equipment utilization rates are trending at
seasonally normal levels, but with low rental rates due to the reduced level of
non-residential construction. As we continue to position JLG for the eventual
upturn in the industry, our key strategic initiatives are to improve operations,
to capitalize on growth opportunities, and to manage for cash. We are continuing
to focus on improving manufacturing margins by aggressive reductions in product
cost to offset competitive pricing pressures.
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JLG Industries, Inc. - page 6
"As the first quarter results show, with our expanded product lines
telehandlers offer a strong growth opportunity for JLG, both in North America
and in Europe. And, as the average age of aerial equipment in rental fleets
rises, so too does the opportunity for fleet refreshment. We will continue to
look for opportunistic acquisitions to grow or complement our access products or
to divest non-core JLG products.
"JLG continues to be the global leader in the access industry.
Innovation continues to fuel our growth, and as we introduce new products
throughout the year, we will leverage our engineering expertise to permanently
lower manufacturing costs and provide end-users with the tools of the trade they
require to be successful. Additionally, should the economic recovery fail to
materialize, we are developing contingency plans to address that eventuality.
Meanwhile, we are committed to continue driving down our breakeven point by
reducing fixed costs to further strengthen our leadership position."
CONFERENCE CALL
The Company will host a conference call tomorrow, Friday, November 22,
2002 at 8:00 a.m. Eastern Time. The call can be accessed via JLG's website
www.jlg.com, where it will be accompanied by a slide presentation, or by dialing
(800) 289-0468, access code 721611. International participants should dial (913)
981-5517. Please dial into the conference 10 minutes prior to the start. A
recording of this conference call will be available through December 13, 2002 at
(888) 203-1112, access code 721611, or (719) 457-0820 for international callers.
ABOUT JLG
JLG Industries, Inc. is the world's leading producer of mobile aerial
work platforms and a leading producer of telehandlers and telescopic hydraulic
excavators marketed under the JLG(R) and Gradall(R) trademarks. Sales are made
principally to rental companies and distributors that rent and sell the
Company's products to a diverse customer base, which include users in the
industrial, commercial, institutional and construction markets. JLG's
manufacturing facilities are located in the United States and Belgium, with
sales and service locations on six continents. For more information, visit
www.jlg.com.
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are not guarantees of future performance, and involve a number of
risks and uncertainties that could cause actual results to differ materially
from those indicated by the forward-looking statements. Important factors that
could cause actual results to differ materially from those suggested by the
forward-looking statements include, but are not limited to, the following: (i)
general economic and market conditions, including political and economic
uncertainty in areas of the world where we do business; (ii) varying and
seasonal levels of demand for our products and services; (iii) limitations on
customer access to credit for purchases; (iv) credit risks from our financing of
customer purchases; (v) interest and foreign currency exchange rates; (vi) costs
of raw materials and energy; and (vii) our ability to securitize or otherwise
monetize assets, including customer finance receivables, as well as other risks
as detailed in the Company's SEC reports, including the report on Form 10-K for
the year ended July 31, 2002.
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JLG Industries, Inc. - page 7
Results before cumulative effect of change in accounting principle, AFS
operations as if accounted for under the equity method, as well as our
determinations of free cash flow and net debt are useful in analyzing operating
performance, but should be used only in conjunction with financial performance
reported in accordance with generally accepted accounting principles.
The selected supplemental consolidated data depicting AFS operations as
if accounted for under the equity method and submitted with our consolidated
financial statements is presented for the sole purpose of facilitating the
analysis of the results of our Equipment Operations and Financial Services
businesses as included in the consolidated financial statements. These two
operations are engaged in fundamentally different businesses and cannot be
easily analyzed on a consolidated basis. Equipment Operations includes the
operations of our Machinery and Equipment Services segments with Financial
Services reflected on an equity basis. Access Financial Solutions consists of
our financial services businesses.
(Tables follow)
JLG Industries, Inc. - page 8
JLG INDUSTRIES, INC.
CONSOLIDATED SELECTED SUPPLEMENTAL INFORMATION
(in thousands)
(unaudited)
Three Months Ended
October 31,
SEGMENT INFORMATION 2002 2001
---- ----
External revenues:
Machinery $ 124,546 $ 129,038
Equipment Services 31,371 23,467
Access Financial Solutions 4,570 3,657
--------- ---------
$ 160,487 $ 156,162
========= =========
Segment profit (loss):
Machinery $ 4,979 $ 3,021
Equipment Services 5,254 7,710
Access Financial Solutions 1,098 1,420
General corporate expenses (5,736) (6,300)
--------- ---------
$ 5,595 $ 5,851
========= =========
PRODUCT GROUP REVENUES
Aerial work platforms $ 91,313 $ 102,367
Telehandlers 27,602 14,104
Excavators 5,631 12,567
After-sales service and support, including parts sales, and used
and reconditioned equipment sales 29,842 21,168
Financial products 4,390 3,149
Rentals 1,709 2,807
--------- ---------
$ 160,487 $ 156,162
========= =========
GEOGRAPHIC REVENUES
United States $ 117,350 $ 107,422
Europe 31,248 39,086
Other international 11,889 9,654
--------- ---------
$ 160,487 $ 156,162
========= =========
FREE CASH FLOW
Cash flow from net income plus non-cash charges $ 10,011 $ 7,954
Accounts receivable (1) 27,274 43,434
Inventory (12,266) 6,612
Finance receivables (2) (31,735) 3,468
Accounts payable (33,010) 6,832
Other assets and liabilities (13,284) (8,693)
Purchases of PP&E (1,650) (3,293)
Proceeds from sale of PP&E 3 111
Purchases of equipment held for rental (3,624) (10,402)
Proceeds from sales of equipment held for rental 2,505 2,513
Other (1) 1,404 8,016
--------- ---------
Free cash flow $ (54,372) $ 56,552
========= =========
(1) Includes changes in accounts receivable securitization and other
off-balance sheet debt.
(2) Excludes pledged receivable monetization.
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JLG Industries, Inc. - page 9
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended
October 31,
2002 2001
---- ----
Revenues
Net sales $ 154,388 $ 150,206
Financial products 4,390 3,149
Rentals 1,709 2,807
--------- ---------
160,487 156,162
Cost of sales 131,371 126,102
--------- ---------
Gross profit 29,116 30,060
Selling and administrative expenses 17,485 19,105
Product development expenses 3,901 4,003
--------- ---------
Income from operations 7,730 6,952
Interest expense (5,504) (4,338)
Miscellaneous, net (1,742) 917
--------- ---------
Income before taxes and cumulative effect of
change in accounting principle 484 3,531
Income tax provision 155 1,165
--------- ---------
Income before cumulative effect of change in
accounting principle 329 2,366
Cumulative effect of change in accounting
principle -- (114,470)
--------- ---------
Net income (loss) $ 329 $(112,104)
========= =========
Earnings (loss) per common share:
Earnings per common share before cumulative
effect of change in accounting principle $ .01 $ .06
Cumulative effect of change in accounting
principle -- (2.74)
--------- ---------
Earnings (loss) per common share $ .01 $ (2.68)
========= =========
Earnings (loss) per common share - assuming dilution:
Earnings per common share before
cumulative effect of change in accounting
principle $ .01 $ .06
Cumulative effect of change in accounting
principle -- (2.70)
--------- ---------
Earnings (loss) per common share - assuming
dilution $ .01 $ (2.64)
========= =========
Cash dividends per share $ .005 $ .01
========= =========
Weighted average shares outstanding 42,541 41,814
========= =========
Weighted average shares outstanding -
assuming dilution 42,853 42,413
========= =========
</Table>
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JLG Industries, Inc. - page 10
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
October 31, July 31,
2002 2002
---------- ---------
ASSETS (unaudited)
Current assets
Cash and cash equivalents $ 10,181 $ 6,205
Accounts receivable, net 200,329 227,809
Finance receivables, net 18,276 27,529
Pledged finance receivables 35,391 34,985
Inventories 178,016 165,536
Other current assets 31,675 31,042
--------- ---------
Total current assets 473,868 493,106
Property, plant and equipment 82,057 84,370
Equipment held for rental 21,552 20,979
Finance receivables, less current portion 81,490 45,412
Pledged finance receivables, less current portion 51,309 53,703
Goodwill 28,791 28,791
Other assets 55,870 51,880
--------- ---------
$ 794,937 $ 778,241
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt $ 25,375 $ 14,427
Current portion of limited recourse debt 33,862 34,850
Accounts payable 96,283 129,317
Accrued expenses 74,755 83,309
--------- ---------
Total current liabilities 230,275 261,903
Long-term debt, less current portion 228,563 177,331
Limited recourse debt, less current portion 49,326 52,721
Accrued post-retirement benefits 25,411 24,989
Other long-term liabilities 11,150 10,807
Provisions for contingencies 14,315 14,448
Shareholders' equity
Capital stock:
Authorized shares: 100,000 at $.20 par value
Outstanding shares: 2003 - 42,971; 2002 - 42,728 8,594 8,546
Additional paid-in capital 20,594 18,846
Retained earnings 217,072 216,957
Unearned compensation (3,157) (1,649)
Accumulated other comprehensive income (7,206) (6,658)
--------- ---------
Total shareholders' equity 235,897 236,042
--------- ---------
$ 794,937 $ 778,241
========= =========
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JLG Industries, Inc. - page 11
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
October 31,
2002 2001
---- ----
OPERATIONS
Net income (loss) $ 329 $(112,104)
Adjustments to reconcile net income to
cash flow from operating activities:
Loss (gain) on sale of property, plant and equipment 3 (18)
Gain on sale of equipment held for rental (697) (1,409)
Non-cash charges and credits:
Cumulative effect of change in accounting principle -- 114,470
Depreciation and amortization 5,268 5,096
Other 2,599 1,871
Changes in selected working capital items:
Accounts receivable (1) 27,274 38,634
Inventories (12,266) 6,612
Accounts payable (33,010) 6,832
Other operating assets and liabilities (9,692) (7,583)
Changes in finance receivables (27,352) 3,468
Changes in pledged finance receivables (2,395) --
Changes in other assets and liabilities (3,592) (1,110)
--------- ---------
Cash flow from operating activities (53,531) 54,759
INVESTMENTS
Purchases of property, plant and equipment (1,650) (3,293)
Proceeds from sale of property, plant and equipment 3 111
Purchases of equipment held for rental (3,624) (10,402)
Proceeds from sale of equipment held for rental 2,505 2,513
Other (57) --
--------- ---------
Cash flow from investing activities (2,823) (11,071)
FINANCING
Net increase (decrease) in short-term debt 11,024 (20,374)
Issuance of long-term debt 93,000 110,000
Repayment of long-term debt (43,202) (133,578)
Payment of dividends (214) (421)
Exercise of stock options and issuance of restricted awards 275 249
--------- ---------
Cash flow from financing activities 60,883 (44,124)
CURRENCY ADJUSTMENTS
Effect of exchange rate changes on cash (553) 391
--------- ---------
CASH
Net change in cash and cash equivalents 3,976 (45)
Beginning balance 6,205 9,254
--------- ---------
Ending balance $ 10,181 $ 9,209
========= =========
(1) Net of change in accounts receivable securitization of $0 for the period
ended October 31, 2002 and $4,800 for the period ended October 31, 2001.
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JLG Industries, Inc. - page 12
JLG INDUSTRIES, INC.
SELECTED SUPPLEMENTAL INFORMATION
CONDENSED STATEMENTS OF INCOME
EQUIPMENT OPERATIONS WITH ACCESS FINANCIAL SOLUTIONS ON THE EQUITY BASIS
(in thousands)
(unaudited)
Three Months Ended
October 31,
2002 2001
---- ----
Revenues
Net sales $ 154,388 $ 150,206
Rentals 1,529 2,299
--------- ---------
155,917 152,505
Cost of sales 131,194 125,839
--------- ---------
Gross profit 24,723 26,666
Selling and administrative expenses 16,324 18,232
Product development expenses 3,901 4,003
--------- ---------
Income from operations 4,498 4,431
Interest expense (3,370) (3,237)
Miscellaneous, net (1,742) 917
--------- ---------
(Loss) income before taxes and cumulative effect of
change in accounting principle (614) 2,111
Income tax provision 196 (696)
Equity in income of Access Financial Solutions 747 951
--------- ---------
Income before cumulative effect of change in
accounting principle 329 2,366
Cumulative effect of change in accounting principle -- (114,470)
--------- ---------
Net income (loss) $ 329 $(112,104)
========= =========
JLG INDUSTRIES, INC.
CONDENSED STATEMENTS OF INCOME
ACCESS FINANCIAL SOLUTIONS
(in thousands)
(unaudited)
Three Months Ended
October 31,
2002 2001
---- ----
Revenues
Financial products $4,390 $3,149
Rentals 180 508
------ ------
4,570 3,657
Operating expenses
Administrative and other expenses 1,338 1,136
Interest expense 2,134 1,101
------ ------
Total operating expenses 3,472 2,237
------ ------
Income from operations 1,098 1,420
Income tax provision 351 469
------ ------
Net income $ 747 $ 951
====== ======
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JLG Industries, Inc. - page 13
JLG INDUSTRIES, INC.
SELECTED SUPPLEMENTAL INFORMATION
CONDENSED BALANCE SHEETS
(in thousands)
(unaudited)
Equipment Operations with Access
Financial Solutions on the
Equity Basis Access Financial Solutions
-------------------------------- --------------------------
October 31, July 31, October 31, July 31,
2002 2002 2002 2002
---- ---- ---- ----
ASSETS
Current assets
Cash and cash equivalents $ 10,181 $ 6,205 $ -- $ --
Accounts receivable, net 173,166 204,779 27,163 23,030
Finance receivables, net -- -- 18,276 27,529
Pledged finance receivables -- -- 35,391 34,985
Inventories 178,016 165,536 -- --
Other current assets 31,675 31,042 -- --
-------- -------- -------- --------
Total current assets 393,038 407,562 80,830 85,544
Property, plant and equipment 82,052 84,354 5 16
Finance receivables, less current portion -- -- 81,490 45,412
Pledged finance receivables, less current portion -- -- 51,309 53,703
Goodwill 28,791 28,791 -- --
Investment in Access Financial Solutions 34,150 33,403 -- --
Receivable from Access Financial Solutions 97,698 64,106 -- --
Other assets 74,232 70,381 3,190 2,478
-------- -------- -------- --------
$709,961 $688,597 $216,824 $187,153
======== ======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt $ 25,375 $ 14,427 $ -- $ --
Current portion of limited recourse debt -- -- 33,862 34,850
Accounts payable 96,283 129,317 -- --
Accrued expenses 72,967 81,236 1,788 2,073
-------- -------- -------- --------
Total current liabilities 194,625 224,980 35,650 36,923
Long-term debt, less current portion 228,563 177,331 -- --
Limited recourse debt, less current portion -- -- 49,326 52,721
Accrued post-retirement benefits 25,411 24,989 -- --
Other long-term liabilities 11,150 10,807 -- --
Provisions for contingencies 14,315 14,448 -- --
Payable to JLG Industries, Inc. -- -- 97,698 64,106
Shareholders' equity 235,897 236,042 34,150 33,403
-------- -------- -------- --------
$709,961 $688,597 $216,824 $187,153
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JLG Industries, Inc. - page 14
JLG INDUSTRIES, INC.
SELECTED SUPPLEMENTAL INFORMATION
CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Equipment Operations with Access
Financial Solutions on the
Equity Basis Access Financial Solutions
-------------------------------- --------------------------
Three Months Ended Three Months Ended
October 31, October 31,
2002 2001 2002 2001
---- ---- ---- ----
Cash flow from operating activities $(19,201) $ 57,291 $(33,583) $ (1,581)
Cash flow from investing activities (3,561) (10,779) (9) (1,243)
Cash flow from financing activities 27,291 (46,948) 33,592 2,824
Effect of exchange rate changes on cash (553) 391 -- --
-------- -------- -------- --------
Net change in cash and cash equivalents 3,976 (45) -- --
Beginning balance 6,205 9,254 -- --
-------- -------- -------- --------
Ending balance $ 10,181 $ 9,209 $ -- $ --
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