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 (240) 313-1816, IR@JLG.COM
www.jlg.com
JLG REPORTS THIRD QUARTER RESULTS
MCCONNELLSBURG, PA, MAY 27, 2003 - JLG Industries, Inc. (NYSE: JLG) today
announced results for its fiscal 2003 third quarter ended April 30, 2003 with
consolidated revenues of $205.8 million and net income of $2.2 million, or $0.05
per diluted share. For the prior-year period, revenues were $208.7 million and
net income was $836 thousand, or $0.02 per diluted share.
Year-to-date revenues were $517.6 million with net income of $6.7 million,
or $0.16 per diluted share. For the nine-month period in fiscal 2002, revenues
were $521.2 million with income before cumulative effect of change in accounting
principle of $4.5 million, or $0.11 per diluted share.
In May 2003, the Company sold $125 million principal amount of 8 1/4
percent senior unsecured notes due 2008 and amended its $250 million revolving
credit facility and $25 million overdraft facility. The net proceeds of the
offering were used to repay outstanding debt under the Company's existing
revolving credit facility with the balance to be used for general corporate
purposes.
The Company is streamlining its quarterly earnings release to comply with
recent SEC regulations governing non-GAAP disclosures and publication of
earnings. Management's analysis of the Company's quarterly results and financial
condition will be provided during a conference call on Wednesday, May 28, 2003
at 9:00 a.m. Eastern Time. Having updated sales and earnings guidance on April
29, no additional guidance will be provided during the call. 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. International participants should
dial (913) 981-5517. Please dial into the conference call 10 minutes prior to
the start. A replay of the conference call with slides will be available on the
Investor Relations page of the Company's website. A replay of the call by
telephone will be available through June 4th at (888) 201-1112, access code
590343. International callers may dial (719) 457-0820 and use the same access
code.
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JLG Industries, Inc. - page 2
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 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; and (v)
costs of raw materials and energy, as well as other risks as detailed in the
Company's SEC reports, including the report on Form 10-Q for the quarter ended
January 31, 2003.
For more information, visit www.jlg.com.
NOTE: Information contained on our website is not incorporated
by reference into this press release.
(Tables follow)
JLG Industries, Inc. - page 3
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
April 30, April 30,
2003 2002 2003 2002
--------- --------- --------- ---------
Revenues
Net sales $ 199,282 $ 203,147 $ 497,631 $ 503,970
Financial products 5,152 3,279 14,378 9,386
Rentals 1,336 2,306 5,561 7,890
--------- --------- --------- ---------
205,770 208,732 517,570 521,246
Cost of sales 171,125 174,465 427,711 432,389
--------- --------- --------- ---------
Gross profit 34,645 34,267 89,859 88,857
Selling and administrative expenses 20,087 19,188 53,949 54,049
Product development expenses 4,561 3,736 12,351 11,403
Restructuring charges 1,433 6,091 2,616 6,091
--------- --------- --------- ---------
Income from operations 8,564 5,252 20,943 17,314
Other income (deductions):
Interest expense (6,764) (3,345) (18,340) (11,710)
Miscellaneous, net 1,383 (659) 7,279 1,167
--------- --------- --------- ---------
Income before taxes and cumulative effect
of change in accounting principle 3,183 1,248 9,882 6,771
Income tax provision 1,018 412 3,162 2,235
--------- --------- --------- ---------
Income before cumulative effect of change in
accounting principle 2,165 836 6,720 4,536
Cumulative effect of change in accounting
principle -- -- -- (114,470)
--------- --------- --------- ---------
Net income (loss) $ 2,165 $ 836 $ 6,720 $(109,934)
========= ========= ========= =========
Earnings (loss) per common share before
cumulative effect of change in accounting
principle $ .05 $ .02 $ .16 $ .11
Cumulative effect of change in accounting
principle -- -- -- (2.73)
--------- --------- --------- ---------
Earnings (loss) per common share $ .05 $ .02 $ .16 $ (2.62)
========= ========= ========= =========
Earnings (loss) per common share - assuming
dilution, before cumulative effect of change
in accounting principle $ .05 $ .02 $ .16 $ .11
Cumulative effect of change in accounting
principle -- -- -- (2.67)
--------- --------- --------- ---------
Earnings (loss) per common share - assuming
dilution $ .05 $ .02 $ .16 $ (2.56)
========= ========= ========= =========
Cash dividends per share $ .005 $ .005 $ .015 $ .02
========= ========= ========= =========
Weighted average shares outstanding 42,598 42,107 42,587 41,931
========= ========= ========= =========
Weighted average shares outstanding -
assuming dilution 42,775 43,816 42,849 42,896
========= ========= ========= =========
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JLG Industries, Inc. - page 4
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
April 30, July 31,
2003 2002
----------- ---------
ASSETS (unaudited)
- ------
Current assets
Cash and cash equivalents $ 16,529 $ 6,205
Accounts receivable 252,200 227,809
Finance receivables 1,570 27,529
Pledged finance receivables 50,741 34,985
Inventories 154,168 165,536
Other current assets 23,061 31,042
--------- ---------
Total current assets 498,269 493,106
Property, plant and equipment 80,366 84,370
Equipment held for rental 20,509 20,979
Finance receivables, less current portion 27,366 45,412
Pledged finance receivables, less current portion 116,348 53,703
Goodwill 29,509 28,791
Other assets 53,396 51,880
--------- ---------
$ 825,763 $ 778,241
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Current liabilities
Short-term debt and current portion of long-term debt $ 912 $ 14,427
Current portion of limited recourse debt 50,980 34,850
Accounts payable 83,059 129,317
Accrued expenses 70,820 83,309
--------- ---------
Total current liabilities 205,771 261,903
Long-term debt, less current portion 212,006 177,331
Limited recourse debt, less current portion 113,673 52,721
Accrued post-retirement benefits 26,255 24,989
Other long-term liabilities 11,118 10,807
Provisions for contingencies 11,906 14,448
Shareholders' equity
Capital stock:
Authorized shares: 100,000 at $.20 par value
Outstanding shares: 43,007; fiscal 2002 - 42,728 8,601 8,546
Additional paid-in capital 20,514 18,846
Retained earnings 223,033 216,957
Unearned compensation (2,749) (1,649)
Accumulated other comprehensive income (4,365) (6,658)
--------- ---------
Total shareholders' equity 245,034 236,042
--------- ---------
$ 825,763 $ 778,241
========= =========
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JLG Industries, Inc. - page 5
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended
April 30
2003 2002
--------- ---------
OPERATIONS
Net income (loss) $ 6,720 $(109,934)
Adjustments to reconcile net income to
cash flow from operating activities:
Loss on sale of property, plant and equipment 117 372
Gain on sale of equipment held for rental (5,703) (7,475)
Non-cash charges and credits:
Cumulative effect of change in accounting principle -- 114,470
Depreciation and amortization 15,346 15,813
Other 12,599 6,753
Changes in selected working capital items:
Accounts receivable (1) (26,334) (16,994)
Inventories 10,973 26,455
Accounts payable (46,647) 45,759
Other operating assets and liabilities (10,654) (7,689)
Changes in finance receivables 43,131 27,216
Changes in pledged finance receivables (99,644) (42,114)
Changes in other assets and liabilities 97 3
--------- ---------
Cash flow from operating activities (99,999) 52,635
INVESTMENTS
Purchases of property, plant and equipment (7,995) (10,246)
Proceeds from sale of property, plant and equipment 216 150
Purchases of equipment held for rental (14,351) (20,777)
Proceeds from sale of equipment held for rental 16,181 21,214
Other (664) --
--------- ---------
Cash flow from investing activities (6,613) (9,659)
FINANCING
Net decrease in short-term debt (14,065) (7,087)
Issuance of long-term debt 277,288 333,954
Repayment of long-term debt (247,311) (419,446)
Issuance of limited recourse debt 98,443 42,114
Repayment of limited recourse debt (118) --
Payment of dividends (644) (843)
Exercise of stock option and issuance of restricted awards 738 3,276
--------- ---------
Cash flow from financing activities 114,331 (48,032)
CURRENCY ADJUSTMENTS
Effect of exchange rate changes on cash 2,605 (907)
--------- ---------
CASH
Net change in cash and cash equivalents 10,324 (5,963)
Beginning balance 6,205 9,254
--------- ---------
Ending balance $ 16,529 $ 3,291
========= =========
(1) Net of change in accounts receivable securitization of $0 for the period
ended April 30, 2003 and $50,600 for the period ended April 30, 2002.
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JLG Industries, Inc. - page 6
JLG INDUSTRIES, INC.
CONSOLIDATED SELECTED SUPPLEMENTAL INFORMATION
(in thousands) Three Months Ended Nine Months Ended
April 30, April 30,
SEGMENT INFORMATION 2003 2002 2003 2002
--------- --------- --------- ---------
External revenues:
Machinery $ 167,630 $ 162,054 $ 401,726 $ 414,017
Equipment services 32,835 43,164 100,882 96,594
Access Financial Solutions 5,305 3,514 14,962 10,635
--------- --------- --------- ---------
$ 205,770 $ 208,732 $ 517,570 $ 521,246
========= ========= ========= =========
Segment profit (loss):
Machinery $ 6,665 $ 4,708 $ 11,812 $ 8,194
Equipment services 6,998 6,656 18,884 22,718
Access Financial Solutions 716 877 3,695 3,472
General corporate expenses (9,434) (8,059) (21,645) (20,248)
--------- --------- --------- ---------
4,945 4,182 12,746 14,136
Add Access Financial Solutions
interest expense 3,619 1,070 8,197 3,178
--------- --------- --------- ---------
Operating income $ 8,564 $ 5,252 $ 20,943 $ 17,314
========= ========= ========= =========
PRODUCT GROUP REVENUES
Aerial work platforms $ 116,092 $ 124,514 $ 287,020 $ 316,574
Telehandlers 34,843 20,600 81,862 53,328
Excavators 16,695 16,940 32,844 44,115
After-sales service and support, including
parts sales, and used & reconditioned
equipment sales 31,652 41,093 95,905 89,953
Financial products 5,152 3,279 14,378 9,386
Rentals 1,336 2,306 5,561 7,890
--------- --------- --------- ---------
$ 205,770 $ 208,732 $ 517,570 $ 521,246
========= ========= ========= =========
GEOGRAPHIC REVENUES
United States $ 155,852 $ 158,153 $ 381,122 $ 378,218
Europe 33,830 37,521 97,894 110,530
Other international 16,088 13,058 38,554 32,498
--------- --------- --------- ---------
$ 205,770 $ 208,732 $ 517,570 $ 521,246
========= ========= ========= =========
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JLG Industries, Inc. - page 7
JLG INDUSTRIES, INC.
RECONCILIATION OF NON-GAAP MEASURES TO GAAP
In addition to measuring our cash flow generation and usage based upon the
Consolidated Condensed Statements of Cash Flows, we also measure our free cash
flow. We define free cash flow as cash flow from operating, investing
activities, payment of dividends, exercise of stock option and issuance of
restricted awards, and the effect of exchange rate changes on cash less changes
in accounts receivable securitization, limited recourse debt from finance
receivable monetizations and off-balance sheet debt. Our measure of free cash
flow may not be comparable to similarly titled measures being disclosed by other
companies and is not a measure of financial performance that is in accordance
with GAAP. We utilize free cash flow to explain the change in our net debt
position from the prior period.
FREE CASH FLOW Three Months Ended Nine Months Ended
(in thousands) April 30, April 30,
2003 2002 2003 2002
- -----------------------------------------------------------------------------------------------------------------
Net income (loss) $ 2,165 $ 836 $ 6,720 $(109,934)
Adjustments to reconcile net income to cash flow
from operating activities 7,421 792 22,359 129,933
Accounts receivable (41,663) (65,224) (26,334) (16,994)
Inventories 14,544 (13,465) 10,973 26,455
Other current assets 191 2,815 2,149 1,848
Accounts payable 12,832 68,708 (46,647) 45,759
Accrued expenses 7,243 6,358 (12,803) (9,537)
Finance receivables 50,239 34,878 43,131 27,216
Other cash from operations 3,970 (1,389) 97 3
Purchases of PP&E (3,059) (3,749) (7,995) (10,246)
Proceeds from sale of PP&E 92 150 216 150
Purchases of equipment held for rental (3,014) (10,634) (14,351) (20,777)
Proceeds from sales of equipment held for rental 3,577 21,214 16,181 21,214
Other cash from investments 529 -- (664) --
Payment of dividends (215) (212) (644) (843)
Exercise of stock option & issuance of restricted awards 260 2,706 738 3,276
Effect of exchange rate changes on cash 1,170 (1,368) 2,605 (907)
Other(1) 4,271 18,469 (3,208) 61,354
- -----------------------------------------------------------------------------------------------------------------
Free cash flow $ 60,553 $ 60,885 $ (7,477) $ 147,970
=================================================================================================================
(1) Includes changes in accounts receivable securitization and other off-balance sheet debt.
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JLG Industries, Inc. - page 8
We also monitor our net debt and our EBITDA, which are two other non-GAAP
measures that provide additional information concerning our leverage position
and our historical ability to meet debt service and capital expenditure and
working capital requirements. EBITDA also is an indicator of profitability,
particularly in our capital-intensive industry.
We define net debt as the sum of total debt and other off-balance sheet
financing, minus cash and limited recourse debt arising from our monetization of
customer finance receivables. During the quarter, we reduced our net debt by $61
million primarily by cash generated through Access Financial Solutions ("AFS")
portfolio monetizations.
EBITDA reflects our earnings before interest, taxes and depreciation and
amortization. EBITDA as presented below differs (i) from previously disclosed
presentations which excluded restructuring or repositioning charges, and (ii)
from measures of EBITDA calculated for purposes of financial covenants in our
note indentures and senior credit facilities. The components of net debt and
EBITDA are included in the following tables.
NET DEBT COMPARISON April 30, January 31, October 31, July 31, April 30,
(in millions) 2003 2003 2002 2002 2002
--------- ----------- ----------- -------- ---------
$250 million revolving credit facility $ 30.3 $ 61.0 $ 50.0 -- $ 190.0
$25 million overdraft credit facility -- 23.0 25.0 13.9 14.5
$175 million senior subordinated notes 175.0 175.0 175.0 175.0 --
Miscellaneous bank debt 1.4 1.6 1.7 1.9 2.1
Fair value of interest rate swap -- 5.0 2.3 .9 --
Gain on terminated interest rate swap 6.2 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Bank debt/senior subordinated notes 212.9 265.6 254.0 191.7 206.6
Limited recourse debt from finance
receivables monetizations * 164.7 106.7 83.2 87.6 42.1
- ---------------------------------------------------------------------------------------------------------------------
Total Balance Sheet Debt 377.6 372.3 337.2 279.3 248.7
Net present value of off balance sheet rental
fleet lease 3.4 3.9 4.5 5.6 9.1
Net present value of off balance sheet production
equipment leases 6.6 7.0 7.4 7.8 8.3
- ---------------------------------------------------------------------------------------------------------------------
Total off-balance sheet financing 10.0 10.9 11.9 13.4 17.4
- ---------------------------------------------------------------------------------------------------------------------
Total off-balance sheet financing and
balance sheet debt 387.6 383.2 349.1 292.7 266.1
Less cash 16.5 9.6 10.2 6.2 3.3
Less Limited recourse debt 164.7 106.7 83.2 87.6 42.1
- ---------------------------------------------------------------------------------------------------------------------
Net debt $ 206.4 $ 266.9 $ 255.7 $ 198.9 $ 220.7
================== ================================================================================================
* Maximum loss exposure from finance
receivables monetizations $ 18.9 $ 8.5 $ 6.3 $ 6.0 $ 3.4
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JLG Industries, Inc. - page 9
April 30, January 31, October 31, July 31, April 30,
(in millions) 2003 2003 2002 2002 2002
--------- ----------- ----------- -------- ---------
Shareholders' Equity $245.0 $241.8 $235.9 $236.0 $224.7
Net Debt-to-Net Debt plus
Shareholders' Equity (percent) 46 53 52 46 50
Total Balance Sheet Debt-to-Total Balance
Sheet Debt plus Shareholders' Equity (percent) 61 61 59 54 53
EBITDA COMPONENTS Three Months Ended Trailing 12 Months Ended
(in millions) April 30, April 30, January 31, October 31,
2003 2002 2003 2003 2002
---- ---- ---- ---- ----
Income before cumulative effect of change in
accounting principle $2.2 $0.8 $15.1 $13.7 $10.8
Interest expense 6.8 3.4 22.8 19.5 17.4
Income tax provision 1.0 0.4 7.3 6.7 5.3
Depreciation and amortization 4.9 4.7 20.5 20.2 21.2
- ----------------------------------------------------------------------------------------------------------------------------------
EBITDA $14.9 $9.3 $65.7 $60.1 $54.7
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