Exhibit 99.1
[JLG Logo] PRESS RELEASE
JLG INDUSTRIES, INC. FOR IMMEDIATE RELEASE
1 JLG Drive
McConnellsburg, PA 17233-9533 CONTACT: JUNA ROWLAND
Telephone (717) 485-5161 DIRECTOR - CORPORATE & INVESTOR RELATIONS
Fax (717) 485-6417 (717) 485-6605, IR@JLG.COM
www.jlg.com
JLG IMPROVES CASH FLOW AND REDUCES DEBT IN FIRST QUARTER
EUROPEAN SHIPMENTS REMAIN STRONG
MCCONNELLSBURG, PA, NOVEMBER 15, 2001 - JLG Industries, Inc. (NYSE: JLG)
today announced results for the fiscal first quarter ended October 31, 2001,
with consolidated revenues of $156 million and diluted earnings per share of
$.06 compared to last year's record quarter of $233 million and diluted earnings
per share of $.30. Free cash flow was $57 million, an improvement of $113
million over last year's use of cash in the first quarter. Net debt was reduced
by a similar amount resulting in debt-to-total capitalization of 49 percent
compared with 53 percent at the end of the last quarter.
Bill Lasky, Chairman of the Board, President and Chief Executive Officer,
stated, "Our first quarter results reflect excellent performance in a very
difficult economy. With plans in place for managing in this environment, we
reacted swiftly to resize our production capacity including permanently closing
one facility and reducing our workforce by 32 percent since January. In addition
to the workforce reductions, which included salaried personnel, tight expense
controls have been increased and capital expenditures reduced without mortgaging
our future. We are continuing to prudently invest in strategic initiatives that
target the needs of end-users, which include expanding product applications
through the use of job-specific accessories, and bringing the European facility
in Belgium on-line this year. Even in these challenging times, there are always
business opportunities for industry leaders. Our focus is to position JLG for
the eventual upturn by continuing to evaluate the business climate closely and
acting decisively."
FIRST QUARTER FINANCIAL SUMMARY
o Free cash flow improved by $113 million over last year's first quarter.
o Net debt was reduced by $57 million and debt-to-total capitalization was 49
percent.
o Company's market position improved overall.
o North American revenues were $111 million, down 40 percent compared to last
year.
o European revenues remained strong at $39 million, up 8 percent from the
prior-year quarter.
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JLG Industries, Inc. - 2
o Sales of Gradall excavators were up 5 percent at $13 million.
o New product introductions represented 30 percent of total sales, as
compared to 28 percent a year ago.
o Selling, administrative and product development expenses were reduced 11
percent year-on-year (12 percent without Access Financial Solutions).
o Trade working capital was reduced $24 million from last year's first
quarter and $57 million on a sequential basis.
FINANCIAL OVERVIEW
Jim Woodward, Senior Vice President and Chief Financial Officer said,
"Consistent with our focus on the balance sheet, free cash flow was strong at
$57 million compared with a use of cash of $56 million last year. Including all
off-balance sheet financing, debt-to-total capitalization was reduced to 49
percent from 53 percent at last quarter. We will continue to concentrate on debt
reduction, free cash flow, accelerating cost reductions and rationalizing our
production capacity.
"Primarily reflecting lower production volumes on the decreased sales,
manufacturing profit was 19.2 percent compared to 22.6 percent a year ago.
Despite the production shutdowns across the enterprise, margin at manufacturing
cost was down only 70 basis points, reflecting our focus on permanent capacity
rationalization. The remaining decline resulted from the step-variable nature of
expenses such as warranty, product liability and inventory reserves. Operating
margin was 4.5 percent compared with 10.8 percent last year, primarily
reflecting the sales decline offset in part by an 11 percent reduction in
selling, administrative and product development expenses and the elimination of
goodwill amortization pursuant to the Company's adoption of Statement of
Financial Accounting Standards No. 142.
"As stated in our September conference call, we had expected the first
half of fiscal 2002 to be extremely challenging, which unfortunately is proving
to be true. During the first half of the prior fiscal year, we continued to
enjoy record sales and, given the then current economic outlook, had expected
shipments to be down significantly in the first half on a comparative basis.
Revenues for the final two quarters of last year however, were already down 25
percent and 17 percent from their respective record levels and therefore, we
expect the second half of this year to be less dramatically affected when
compared to the prior year on a percentage basis."
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JLG Industries, Inc. - 3
OUTLOOK
Commenting on the outlook, Bill Lasky stated, "Given the worsening
recessionary environment, and the aftermath of the tragic events of September
11th which added considerable uncertainty to already weakened credit and
financial markets, forward visibility is extremely difficult. Based on recent
reports of several leading forecasting organizations and the evaluation of
updated leading indicators, the general consensus is now that an economic
recovery will not occur until the second half of calendar 2002 rather than in
the spring or summer. Therefore, our previous guidance of sales down 20 to 25
percent in the first half, flat sales for the full fiscal year, and earnings per
share in a range of $1.13 to $1.20 no longer appears appropriate. We expect to
provide updated guidance closer to the end of our second quarter when we should
have additional visibility for spring season orders as some of our larger
customers firm up their capital plans for the coming year.
"Based on conversations with key customers and their published results,
the demand for the aerial segment of their businesses remains healthy, and JLG
continues to improve market share. The key factor will be the timing of the
fleet replacement cycle, which depends on continued satisfactory utilization,
available credit capacity and positive indicators of an economic recovery on the
horizon.
"JLG has been through economic recessions in the past. With forward
visibility severely limited, we have developed a range of specific downturn
plans and we are prepared to execute the appropriate actions should business
conditions warrant. In all of our forecast scenarios, we remain profitable for
the year with strong positive cash flow in the range of $125 to $150 million
through a continued focus on working capital reduction with a particular
emphasis on inventory reduction. Consistent with our focus on cash flow, the
Board has approved a 50 percent reduction in the dividend.
"JLG has an experienced management team, a sound balance sheet, healthy
cash flow, and a preferred position with a successful and loyal customer base
which values dependable suppliers now more than ever. We have all of the
critical resources to manage through these challenging times and not lose sight
of our goals. We will not compromise customer support, but rather, we will stay
even closer to our customer base. And, we will not stop looking for appropriate
business opportunities to further enhance shareholder value."
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JLG Industries, Inc. - 4
CONFERENCE CALL
The Company will host a conference call on Thursday, November 15, 2001 at
2:30 p.m. Eastern Time. Dial-in number is (800) 811-0667, access code: 655170 or
via the Internet at www.jlg.com under the Investors section. Please dial into
the conference 10 minutes prior to the start. A recording of this conference
call will be available at (888) 203-1112 access code 655170 until midnight on
November 30, 2001.
ABOUT JLG
JLG Industries, Inc. is the world's leading producer of mobile aerial work
platforms and a leading producer of variable-reach material handlers and
telescopic hydraulic excavators marketed under the JLG and Gradall 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.
This news release contains forward-looking statements as defined by the
Private Securities Litigation Reform Act of 1995, including but not limited to
those relating to financial projections and future financial performance,
cost-cutting and manufacturing improvement efforts, future market conditions
and trends, the growth of the Company's businesses, product demand, the
introduction of new products, and the opening of new facilities. The
forward-looking statements in this announcement may involve certain risks and
uncertainties, which could cause actual results to differ materially,
including cyclical demand, a consolidating customer base, competition,
continued innovation, product liability, availability of product components,
and other risks, as detailed in the Company's SEC reports, including the
report on Form 10-K for the year ended July 31, 2001.
For more information, visit www.jlg.com.
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JLG Industries, Inc. - 5
JLG INDUSTRIES, INC.
CONSOLIDATED SELECTED SUPPLEMENTAL INFORMATION
(in thousands)
(unaudited)
Three Months Ended
October 31,
2001 2000
---- ----
SEGMENT INFORMATION
External revenues:
Machinery $ 132,319 $ 209,691
Equipment services 20,445 23,017
Access Financial Solutions, Inc. 3,398 2
--------- ---------
$ 156,162 $ 232,710
========= =========
Segment profit (loss):
Machinery $ 4,596 $ 29,408
Equipment services 6,229 7,782
Access Financial Solutions, Inc. 1,326 (423)
General corporate expenses (6,300) (11,588)
--------- ---------
$ 5,851 $ 25,179
========= =========
PRODUCT GROUP REVENUES
Aerial work platforms $ 105,648 $ 177,325
Material handlers 14,104 20,368
Excavators 12,567 11,998
Service parts, rentals, rebuilds and
sales of rental fleet and used equipment 20,445 23,017
Financing and leasing 3,398 2
--------- ---------
$ 156,162 $ 232,710
========= =========
GEOGRAPHIC REVENUES
United States $ 107,422 $ 183,105
Europe 39,086 36,053
Other international 9,654 13,552
--------- ---------
$ 156,162 $ 232,710
========= =========
FREE CASH FLOW
Cash flow from net income plus
non-cash charges $ 9,381 $ 24,020
Accounts receivable (1) 43,434 (12,100)
Inventory 6,612 (40,057)
Lease receivables 3,468 --
Other (1,861) (25,928)
Net purchases of PP&E (3,200) (2,857)
Net change in equipment (9,298) (3,778)
held for rental
Proceeds from sale of joint venture -- 4,000
Other - off balance sheet debt (1) 8,016 286
--------- ---------
Free cash flow $ 56,552 ($ 56,414)
========= =========
(1) Includes changes in accounts receivable securitization and
off-balance sheet debt.
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JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended
October 31,
2001 2000
---- ----
Revenues
Net sales $ 150,206 $ 231,466
Rentals 2,807 1,242
Financial products 3,149 2
--------- ---------
156,162 232,710
Cost of sales 126,102 180,220
--------- ---------
Manufacturing profit 30,060 52,490
Selling and administrative expenses 19,850 21,904
Product development expenses 3,258 3,915
Goodwill amortization -- 1,492
--------- ---------
Income from operations 6,952 25,179
Other income (deductions):
Interest expense (4,338) (4,056)
Miscellaneous, net 917 (476)
--------- ---------
Income before taxes 3,531 20,647
Income tax provision 1,165 7,639
--------- ---------
Net income $ 2,366 $ 13,008
========= =========
Earnings per common share $ .06 $ .30
========= =========
Earnings per common share -
assuming dilution $ .06 $ .30
========= =========
Cash dividends per share $ .01 $ .01
========= =========
Weighted average shares outstanding 41,814 43,185
========= =========
Weighted average shares outstanding -
assuming dilution 42,413 43,500
========= =========
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JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
October 31, July 31,
2001 2001
----------- ---------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 9,209 $ 9,254
Accounts receivable (1) 151,578 189,913
Finance receivables 21,643 16,760
Inventories 183,262 189,841
Other current assets 23,521 18,787
--------- ---------
Total current assets 389,213 424,555
Property, plant and equipment 97,254 98,403
Equipment held for rental 28,543 20,002
Finance receivables 106,470 115,071
Goodwill 140,164 140,164
Other assets 27,754 27,394
--------- ---------
$ 789,398 $ 825,589
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt $ 1,820 $ 22,193
Accounts payable 83,564 76,723
Accrued expenses 67,856 70,887
--------- ---------
Total current liabilities 153,240 169,803
Long-term debt, less current portion 253,414 276,994
Accrued post-retirement benefits 24,048 23,757
Other long-term liabilities 9,952 9,601
Provisions for contingencies 12,981 11,993
Shareholders' equity
Capital stock:
Authorized shares: 100,000 at $.20 par value
Outstanding shares: 42,142; fiscal 2000 - 42,144 8,428 8,429
Additional paid-in capital 14,263 14,256
Retained earnings 321,552 319,607
Unearned compensation (3,102) (3,377)
Accumulated other comprehensive income (5,378) (5,474)
--------- ---------
Total shareholders' equity 335,763 333,441
--------- ---------
$ 789,398 $ 825,589
========= =========
</Table>
(1) Net of accounts receivable securitization of $45,800 at October 31, 2001
and $50,600 at July 31, 2001.
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JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
October 31
2001 2000
---- ----
OPERATIONS
Net income $ 2,366 $ 13,008
Adjustments to reconcile net income to
cash flow from operating activities:
Gain from sale of joint venture -- (1,008)
Non-cash charges and credits:
Depreciation and amortization 5,096 7,338
Other 1,871 2,968
Changes in selected working capital items:
Accounts receivable (1) 38,634 (15,700)
Inventories 6,612 (40,057)
Other operating assets and liabilities (751) (19,278)
Changes in lease receivables 3,468 --
Changes in other assets and liabilities (1,110) (6,650)
--------- ---------
Cash flow from operating activities 56,186 (59,379)
INVESTMENTS
Net purchases of property, plant and equipment (3,200) (2,857)
Net change in equipment held for rental (9,298) (3,778)
Proceeds from sale of joint venture -- 4,000
--------- ---------
Cash flow from investing activities (12,498) (2,635)
FINANCING
Net (decrease) increase in short-term debt (20,374) 12,017
Issuance of long-term debt 110,000 110,400
Repayment of long-term debt (133,578) (61,152)
Payment of dividends (421) (437)
Purchase of common stock -- (9,444)
Exercise of stock options and issuance of restricted awards 249 180
--------- ---------
Cash flow from financing activities (44,124) 51,564
CURRENCY ADJUSTMENTS
Effect of exchange rate changes on cash 391 (903)
--------- ---------
CASH
Net change in cash and cash equivalents (45) (11,353)
Beginning balance 9,254 25,456
--------- ---------
Ending balance $ 9,209 $ 14,103
========= =========
(1) Net of accounts receivable securitization of $45,800 at October 31, 2001 and
$53,800 at October 31, 2000.
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