Exhibit 99.1
[JLG Logo]
JLG INDUSTRIES, INC. PRESS RELEASE
1 JLG Drive FOR IMMEDIATE RELEASE
McConnellsburg, PA 17233-9533
Telephone (717) 485-5161
Fax (717) 485-6417
www.jlg.com
CONTACT: JUNA ROWLAND
DIRECTOR - CORPORATE & INVESTOR RELATIONS
(240) 313-1816, IR@JLG.COM
JLG ANNOUNCES THIRD QUARTER RESULTS
COMPANY CONTINUES REDUCING DEBT AND INCREASING CASH FLOW
MCCONNELLSBURG, PA, MAY 28, 2002 - JLG Industries, Inc. (NYSE: JLG)
today announced results for its fiscal third quarter ended April 30, 2002 with
revenues of $209 million compared to prior year revenues of $219 million. Net
income, including one-time charges, was $836 thousand, or $.02 per diluted share
compared to $10.7 million, or $.25 cents per diluted share a year ago. During
the third quarter, the Company recorded a $6.6 million pre-tax repositioning
charge reducing earnings by $.10 per diluted share. This charge reflected the
previously announced closure of the Orrville, OH assembly facility and
relocation of production to the JLG facility in McConnellsburg, PA. Net income,
excluding this charge, was $5.3 million, or $.12 per diluted share. Non-cash
charges were $4.3 million out of the $6.6 million. Free cash flow, including
limited recourse portfolio syndications by Access Financial Solutions (AFS), was
$61 million, an improvement of $115 million over last year's use of cash of $54
million.
Year-to-date, sales were $521 million compared to $682 million in the
same period last year, which included fiscal 2001's record first six months. Net
income, including one-time charges, was $4.5 million, or $.11 per diluted share,
compared with $28.6 million, or $.67 per diluted share a year ago. Net income,
excluding the repositioning charge, was $9.0 million, or $.21 per diluted share.
Free cash flow was $147 million through the first nine months of fiscal year.
"While continuing to successfully manage for the short-term economic
situation by focusing on cash, we have not sacrificed a solid foundation for the
future," stated Bill Lasky, Chairman of the Board, President and Chief Executive
Officer. "We have seen some encouraging signs that the recession affecting our
industry may have reached the bottom but a question remains as to whether we are
looking at a "V" shaped or a more extended "U" shaped recovery period. Our
customers remain rightfully cautious, preferring to see hard signals that the
economy is on the mend before committing to more aggressive fleet replacement
plans; however, we remain cautiously optimistic. We continue to implement
ongoing cost savings and cash positive initiatives, invest in new product
innovations and in our European infrastructure such as our new Belgium assembly
facility. By continuing to execute these key strategic imperatives, JLG is well
positioned for the eventual upturn in the economy and continued growth."
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JLG Industries, Inc. - page 2
THIRD QUARTER FINANCIAL SUMMARY
o North American revenues were $161 million, 6 percent lower than last
year, but up 40 percent sequentially.
o European revenues were $38 million, down 3 percent from the prior-year,
but up 11 percent sequentially.
o Aerial work platform sales were $128 million, down 14 percent, but up
36 percent sequentially.
o Telehandler sales were $21 million, 13 percent lower year-on-year, but
up 11 percent on a sequential basis.
o Excavator sales were $17 million, comparatively equal to last year, but
up 16 percent sequentially.
o Selling, administrative and product development expenses were reduced 3
percent year-on-year.
o Free cash flow was $61 million (including AFS limited recourse
syndications), an improvement of $115 million over last year's use of
cash of $54 million.
YEAR-TO-DATE FINANCIAL SUMMARY
o Free cash flow was $147 million (including AFS limited recourse
syndications), an improvement of $334 million over last year's use of
cash of $187 million.
o Excluding the AFS limited recourse liability, total debt was reduced by
$148 million.
o North American revenues were $388 million, down 27 percent.
o European revenues were $111 million, down 11 percent.
o Trade working capital was reduced by $104 million.
FINANCIAL OVERVIEW
According to Jim Woodward, Senior Vice President and Chief Financial
Officer, "While total revenues were less than five percent below last year's
third quarter, the manufacturing profit was off by 27 percent, reflecting two
primary issues: volume related production costs, and an increase in product
liability expense. Margin reductions were partially offset by a favorable
product mix, due mainly to sales of new products, continuing profitability of
Access Financial Solutions and the elimination of goodwill amortization.
"Our ongoing fiscal discipline resulted in a continuing reduction in
selling, administrative and product development expenses, down 16 percent on a
year-to-date basis. As announced in February, we are in the process of closing
the Orrville, Ohio facility with an associated one-time pre-tax charge of $7.7
million, of which $6.6 million was recorded in the third quarter, with $6.1
million classified as a restructuring charge and $504 thousand in cost of sales.
Interest expense is also significantly below last year due to lower average debt
levels and reduced rates.
"Including off-balance sheet operating leases, but excluding the AFS
limited recourse liabilities, total debt was reduced by an additional $61
million in the quarter resulting in a debt-to-total capitalization of 40 percent
compared with 46 percent at the end of the previous quarter and 53 percent at
the end of fiscal 2001. Year to date,
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JLG Industries, Inc. - page 3
total debt has been reduced by $148 million reflecting our continued focus on
the balance sheet.
"In its first year of operations, Access Financial Solutions
strengthened its profitability and moved toward becoming a self-funding business
unit offering specialized equipment acquisition options for our customers. AFS
achieves this goal by bringing traditional third-party lenders into a
transaction, or via lease origination and the subsequent monetization of the
portfolio in secondary financial markets. Year-to-date, AFS has successfully
monetized $56.5 million through syndication transactions and arranged for
another $41.3 million through third party financings for our customers. The $42
million in pledged finance receivables and offsetting limited recourse
liabilities reflects some of the results of these monetization activities. The
finance receivables of AFS represent secured financing, collateralized by the
underlying value of JLG equipment. In combination with JLG Equipment Services,
which remanufactures and remarkets used and off-lease equipment, AFS is an
attractive partner for traditional equipment lenders. Beginning this quarter,
AFS has been reported as a separate JLG business segment."
OUTLOOK
Commenting on the remainder of the year, Lasky noted, "We are prudently
managing our business. We remain the industry leader and, despite the current
economic climate, we are succeeding where others are not. Of key importance to
our ongoing success are the 23 new products and accessories unveiled at the
CON-EXPO trade show in March, including our 135-foot boom lift, the
Transformer(TM) machine, the all-wheel-steer telehandler product lines and the
Workstation in the Sky(TM) accessory packages. Our customers at the show
received these products enthusiastically, and we are particularly encouraged by
the acceptance of our new European telehandler product family.
"We remain committed to free cash flow, cost containment, global supply
chain management, and selected investments for our future. We are intently
focused on maximizing shareholder value by our ongoing commitment to innovative
new products, superior customer service and the long-term growth of our current
business, both organically and via strategic acquisitions. Most importantly, we
remain dedicated to give our customers, and ultimately the end-users, the
products and services they need to be successful.
"As we stated at the end of last quarter, we still expect sales for the
second half to be approximately equal to the same period last year. While full
year earnings per share are now expected to be in the range of $.60 to $.65,
excluding the repositioning charges and goodwill impairment, free cash flow of
approximately $175 million will be better than our previous estimate."
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JLG Industries, Inc. - page 4
CONFERENCE CALL
The Company will host a conference call on Wednesday, May 29, 2002 at 9:00
a.m. Eastern Time. Dial-in number is (800) 289-0468, access code: 573879 or via
the Internet at www.jlg.com under the Investors section. An accompanying slide
presentation will also be available via the Internet at www.jlg.com. 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 573879 until
midnight on June 11, 2002.
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.
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-Q for the
quarter ended January 31, 2002.
For more information, visit www.jlg.com.
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JLG Industries, Inc. - page 5
JLG INDUSTRIES, INC.
CONSOLIDATED SELECTED SUPPLEMENTAL INFORMATION
(in thousands) (unaudited)
Three Months Ended Nine Months Ended
April 30, April 30,
SEGMENT INFORMATION 2002 2001 2002 2001
---- ---- ---- ----
External revenues:
Machinery $ 165,857 $ 189,371 $ 425,352 $ 590,352
Equipment Services 39,361 28,239 85,259 89,251
Access Financial Solutions 3,514 1,863 10,635 2,673
--------- --------- --------- ---------
$ 208,732 $ 219,473 $ 521,246 $ 682,276
========= ========= ========= =========
Segment profit (loss):
Machinery $ 3,283 $ 21,014 $ 11,101 $ 63,842
Equipment Services 8,021 5,915 19,717 19,914
Access Financial Solutions 937 (71) 3,566 (1,437)
General corporate expenses (8,059) (5,615) (20,248) (24,140)
--------- --------- --------- ---------
$ 4,182 $ 21,243 $ 14,136 $ 58,179
========= ========= ========= =========
PRODUCT GROUP REVENUES
Aerial work platforms $ 128,317 $ 148,985 $ 327,909 $ 484,858
Material handlers 20,600 23,660 53,328 60,651
Excavators 16,940 16,726 44,115 44,794
After-sales service and support, including
parts sales, and used and reconditioned
equipment sales 37,538 26,526 78,618 85,169
Rentals 2,306 2,128 7,890 4,909
Financial products 3,031 1,448 9,386 1,895
--------- --------- --------- ---------
$ 208,732 $ 219,473 $ 521,246 $ 682,276
========= ========= ========= =========
GEOGRAPHIC REVENUES
United States $ 158,153 $ 168,775 $ 378,218 $ 520,681
Europe 37,521 38,487 110,530 124,409
Other international 13,058 12,211 32,498 37,186
--------- --------- --------- ---------
$ 208,732 $ 219,473 $ 521,246 $ 682,276
========= ========= ========= =========
FREE CASH FLOW
Cash flow from net income plus
non-cash charges $ 2,939 $ 23,851 $ 20,400 $ 56,127
Accounts receivable (1) (47,124) (21,117) 33,606 (19,743)
Inventory (13,465) (38,470) 26,455 (128,929)
Finance receivables (2) 34,878 13,029 27,216 (39,395)
Other assets and liabilities 76,492 (23,174) 38,073 (34,928)
Purchases of PP&E (3,675) (5,318) (10,246) (10,450)
Proceeds from sale of PP&E 13 (26) 150 123
Purchases of equipment held for rental (4,896) (5,429) (20,777) (21,015)
Proceeds from sales of equipment
held for rental 15,374 6,149 21,214 27,629
Proceeds from sale of joint venture -- -- -- 4,000
Other (1) 369 (3,147) 10,754 (20,422)
--------- --------- --------- ---------
Free cash flow $ 60,905 ($ 53,652) $ 146,845 ($187,003)
========= ========= ========= =========
(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 6
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended
April 30,
2002 2002 2001
---- ---- ----
As reported As adjusted (1)
Revenues
Net sales $ 203,395 $ 203,395 $ 215,897
Rentals 2,306 2,306 2,128
Financial products 3,031 3,031 1,448
--------- --------- ---------
208,732 208,732 219,473
Cost of sales 174,465 173,961 172,295
--------- --------- ---------
Manufacturing profit 34,267 34,771 47,178
Selling and administrative expenses 19,188 19,188 19,616
Product development expenses 3,736 3,736 3,904
Goodwill amortization -- -- 1,529
Restructuring 6,091 -- --
--------- --------- ---------
Income from operations 5,252 11,847 22,129
Other income (deductions):
Interest expense (3,345) (3,345) (6,335)
Miscellaneous, net (659) (659) 1,143
--------- --------- ---------
Income before taxes 1,248 7,843 16,937
Income tax provision 412 2,588 6,276
--------- --------- ---------
Net income 836 5,255 $ 10,661
========= ========= =========
Earnings per common share $ .02 $ .12 $ .26
========= ========= =========
Earnings per common share -
assuming dilution $ .02 $ .12 $ .25
========= ========= =========
Cash dividends per share $ .005 $ .005 $ .01
========= ========= =========
Weighted average shares outstanding 42,107 42,107 41,699
========= ========= =========
Weighted average shares outstanding -
assuming dilution 43,816 43,816 42,271
========= ========= =========
(1) The "As adjusted" column excludes the $6,091 restructuring and $504
associated charges.
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JLG Industries, Inc. - page 7
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Nine Months Ended
April 30,
2002 2002 2001
---- ---- ----
As reported As adjusted (1)
Revenues
Net sales $ 503,970 $ 503,970 $ 675,472
Rentals 7,890 7,890 4,909
Financial products 9,386 9,386 1,895
--------- --------- ---------
521,246 521,246 682,276
Cost of sales 432,389 431,885 541,133
--------- --------- ---------
Manufacturing profit 88,857 89,361 141,143
Selling and administrative expenses 54,049 54,049 65,646
Product development expenses 11,403 11,403 11,924
Goodwill amortization -- -- 4,508
Restructuring 6,091 -- --
--------- --------- ---------
Income from operations 17,314 23,909 59,065
Other income (deductions):
Interest expense (11,710) (11,710) (16,443)
Miscellaneous, net 1,167 1,167 2,719
--------- --------- ---------
Income before taxes 6,771 13,366 45,341
Income tax provision 2,235 4,411 16,776
--------- --------- ---------
Net income $ 4,536 $ 8,955 $ 28,565
========= ========= =========
Earnings per common share $ .11 $ .21 $ .68
========= ========= =========
Earnings per common share -
assuming dilution $ .11 $ .21 $ .67
========= ========= =========
Cash dividends per share $ .02 $ .02 $ .03
========= ========= =========
Weighted average shares outstanding 41,931 41,931 42,271
========= ========= =========
Weighted average shares outstanding -
assuming dilution 42,896 42,896 42,802
========= ========= =========
(1) The "As adjusted" column excludes the $6,091 restructuring and $504
associated charges.
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JLG Industries, Inc. - page 8
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
April 30, July 31,
2002 2001
--------- ---------
ASSETS (unaudited)
Current assets
Cash and cash equivalents $ 3,291 $ 9,254
Accounts receivable (1) 208,308 189,913
Finance receivables 23,199 16,760
Pledged finance receivables 6,281 --
Inventories 163,379 189,841
Other current assets 27,289 18,787
--------- ---------
Total current assets 431,747 424,555
Property, plant and equipment 85,439 98,403
Equipment held for rental 23,599 20,002
Finance receivables, less current portion 79,942 115,071
Pledged finance receivables, less current portion 35,833 --
Goodwill 140,164 140,164
Other assets 19,938 27,394
--------- ---------
$ 816,662 $ 825,589
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term debt $ 15,109 $ 22,193
Current portion of limited recourse liability 7,939 --
Accounts payable 122,463 76,723
Accrued expenses 59,734 70,887
--------- ---------
Total current liabilities 205,245 169,803
Long-term debt, less current portion 191,498 276,994
Limited recourse liability, less current portion 34,175 --
Accrued post-retirement benefits 24,629 23,757
Other long-term liabilities 9,968 9,601
Provisions for contingencies 11,992 11,993
Shareholders' equity
Capital stock:
Authorized shares: 100,000 at $.20 par value
Outstanding shares: 42,723; fiscal 2001 - 42,144 8,545 8,429
Additional paid-in capital 16,470 14,256
Retained earnings 323,299 319,607
Unearned compensation (2,412) (3,377)
Accumulated other comprehensive income (6,747) (5,474)
--------- ---------
Total shareholders' equity 339,155 333,441
--------- ---------
$ 816,662 $ 825,589
========= =========
(1) Net of accounts receivable securitization of $0 at April 30, 2002 and
$50,600 at July 31, 2001.
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JLG Industries, Inc. - page 9
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended
April 30
2002 2001
--------- ---------
OPERATIONS
Net income $ 4,536 $ 28,565
Adjustments to reconcile net income to
cash flow from operating activities:
Gain from sale of joint venture -- (1,008)
Loss on sale of property, plant and equipment 372 1,590
Gain on sale of equipment held for rental (7,475) (2,205)
Non-cash charges and credits:
Depreciation and amortization 15,813 19,885
Other 6,753 8,899
Changes in selected working capital items:
Accounts receivable (1) (16,994) (28,619)
Inventories 26,455 (128,929)
Accounts payable 45,759 (19,254)
Other operating assets and liabilities (7,689) (15,658)
Changes in finance receivables (14,898) (39,395)
Changes in other assets and liabilities 3 (16)
--------- ---------
Cash flow from operating activities 52,635 (176,145)
INVESTMENTS
Purchases of property, plant and equipment (10,246) (10,450)
Proceeds from sale of property, plant and equipment 150 123
Purchases of equipment held for rental (20,777) (21,015)
Proceeds from sale of equipment held for rental 21,214 27,629
Proceeds from sale of joint venture -- 4,000
--------- ---------
Cash flow from investing activities (9,659) 287
FINANCING
Net increase in short-term debt (7,087) 10,923
Issuance of long-term debt 333,954 417,287
Repayment of long-term debt (419,446) (243,446)
Issuance of limited recourse liability 42,114 --
Payment of dividends (843) (1,279)
Purchase of common stock -- (22,201)
Exercise of stock options and issuance of restricted awards 3,276 (529)
--------- ---------
Cash flow from financing activities (48,032) 160,755
CURRENCY ADJUSTMENTS
Effect of exchange rate changes on cash (907) (625)
--------- ---------
CASH
Net change in cash and cash equivalents (5,963) (15,728)
Beginning balance 9,254 25,456
--------- ---------
Ending balance $ 3,291 $ 9,728
========= =========
(1) Net of change in accounts receivable securitization of $50,600 for the
period ending April 30, 2002 and $8,876 for the period at April 30, 2001.
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