Exhibit 99.1
PRESS RELEASE
[JLG INDUSTRIES, INC. LOGO] FOR IMMEDIATE RELEASE
JLG INDUSTRIES, INC.
1 JLG Drive CONTACT: JUNA ROWLAND
McConnellsburg, PA 17233-9533 DIRECTOR - CORPORATE & INVESTOR RELATIONS
Telephone (717) 485-5161 (240) 313-1816, ir@jlg.com
Fax (717) 485-6417
www.jlg.com
JLG'S OPERATING INCOME INCREASES 21 PERCENT
INTEGRATION OF OMNIQUIP AHEAD OF AGGRESSIVE PLAN
MCCONNELLSBURG, PA, NOVEMBER 20, 2003 - JLG Industries, Inc. (NYSE: JLG)
today announced consolidated earnings of $.01 per diluted share, after the
impact of OmniQuip integration expense of $3.9 million or $.06 per diluted
share, for its fiscal first quarter ended October 31, 2003. Consolidated
revenues of $212 million represented a 32 percent increase from the prior year,
reflecting sales from OmniQuip products of $53.4 million.
Excluding the impact of integration costs, gross profit margin improved by
100 bps to 19.1 percent compared with 18.1 percent in the comparable period last
year, and operating income of $13.3 million improved 72 percent compared with
$7.7 million for the year-ago period. Inclusive of integration costs,
consolidated operating income at $9.4 million improved by 21 percent
year-on-year. Additionally, inventories were $57 million lower year-on-year
excluding the impact of the acquisition. The consolidation of the Lull(R)
telehandler and Sky Trak(R) telehandler production with existing telehandler
manufacturing will further leverage fixed costs at the McConnellsburg facility.
OUTLOOK
In addition to realizing the expected synergies of the OmniQuip
acquisition, the Company will continue its drive to improve margins through a
continued aggressive approach to cost reductions with unrelenting focus on
efficiency and productivity improvements. In addition, new products will
continue to offer features and benefits which end-users desire while
standardizing design and streamlining the manufacturing process. Examples
include the new innovative Pro-Fit(TM) scissor lift series and the 10,000 and
12,000 pound capacity JLG telehandlers introduced during the quarter.
Rental fleets are aging and pent-up replacement demand continues to grow.
By the end of 2003, the average age of rental fleets is expected to be between
42 and 56 months. Among the top 10 rental companies, estimated aggregate rental
fleet capex spending for calendar 2004 is expected to be up significantly over
2003. The overall economic indicators in North America are encouraging. The
backlog is improving, and the Company is cautiously optimistic that spring order
patterns will continue to exhibit increased confidence
(more)
JLG Industries, Inc. - page 2
and fleet refreshment activity. Although there are pockets of positive growth,
the Company expects that a European recovery will lag North America by at least
a year, however this weakness is being offset by stronger results in Australia
and Asia-Pacific.
Management's complete analysis of the Company's quarterly results and
financial condition will be provided during a conference call on Friday,
November 21, 2003 at 9:00 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) 289-0485. International participants should dial (913) 981-5518.
Please dial into the conference call 10 minutes prior to the start. A replay of
the conference call presentation will be available on the Company's website.
JLG Industries, Inc. is the world's leading producer of access equipment
and highway-speed telescopic hydraulic excavators. The Company's diverse product
portfolio encompasses leading brands such as JLG(R) aerial work platforms; JLG,
Sky Trak(R), Lull(R) and Gradall(R) telehandlers; Gradall excavators; and an
array of complementary accessories that increase the versatility and efficiency
of these products for end users. JLG markets its products and services through a
multi-channel network that includes a highly trained and skilled direct sales
force, direct marketing, the Internet, integrated supply programs and a network
of distributors. In addition, JLG offers world-class after-sales service and
support for its customers 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; (v)
interest and foreign currency exchange rates; and (vi) 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-K for the year ended July 31, 2003.
Adjustments to reported GAAP earnings, AFS operations as if accounted for
under the equity method, as well as our disclosures of free cash flow, EBITDA
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. 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.
FINANCIAL DASHBOARD
(IN THOUSANDS, EXCEPT PER SHARE DATA AND AS OTHERWISE IDENTIFIED)
QUARTER ENDED FISCAL YEAR QUARTER ENDED
OCTOBER 31, ENDED JULY 31, APRIL 30, JANUARY 31,
2003 JULY 31, 2003 2003 2003 2003
------------- ------------- --------- --------- ---------
REVENUES AND PROFITABILITY
Revenues $ 212,195 $ 759,789 $ 242,219 $ 205,770 $ 151,313
Gross profit margin 17.8% 18.1% 19.6% 16.8% 17.2%
EBITDA(1) 16,788 65,821 22,253 14,878 17,434
- ---------
Trailing twelve month EBITDA(1) 71,353 65,821 65,821 65,709 60,118
- -------------------------------
Trailing twelve month EBITDA margin(1) 8.8% 8.7% 8.7% 8.6% 7.8%
- --------------------------------------
Operating income 9,362 39,193 18,250 8,564 4,649
Operating profit margin 4.4% 5.2% 7.5% 4.2% 3.1%
Net income margin(1) 0.1% 1.9% 3.1% 1.1% 2.8%
Reported EPS per diluted share(1) $ .01 $ .33 $ .17 $ .05 $ .10
IMPACT OF SELECTED ITEMS ON:(2)
income (expense)
PRE-TAX INCOME
Integration expenses - OmniQuip
(in both Cost of sales (COS), Selling &
administrative and product development (SA&PD)) $ (3,901) $ - $ - $ - $ -
Restructuring and repositioning charges (in both
COS, Restructuring) (63) (4,040) (859) (1,762) (1,256)
Currency effects (in Miscellaneous-net) 125 5,422 (697) 993 7,575
Bad debt charges (in SA&PD) (1,092) (7,024) (3,273) (1,318) (1,652)
Inventory charges (in COS) (1,327) (4,463) 1,905 (3,380) (1,944)
Incentive pay (in both COS, SA&PD) - (2,605) (876) (1,729) -
Deferred profit on sale-leaseback (in COS) - - - - -
NET INCOME
Integration expenses - OmniQuip
(in both COS, SA&PD) (2,536) - - - -
Restructuring and repositioning charges (in both
COS, Restructuring) (41) (2,747) (584) (1,198) (854)
Currency effects (in Miscellaneous-net) 81 3,687 (474) 675 5,151
Bad debt charges (in SA&PD) (710) (4,776) (2,226) (896) (1,123)
Inventory charges (in COS) (863) (3,035) 1,295 (2,298) (1,322)
Benefit from change in effective income tax rate - 2,051 2,051 - -
Incentive pay (in both COS, SA&PD) - (1,771) (596) (1,176) -
Deferred profit on sale-leaseback (in COS) - - - - -
EARNINGS PER SHARE
Integration expenses - OmniQuip
(in both COS, SA&PD) (0.06) - - - -
Restructuring and repositioning charges (in both
COS, Restructuring) - (0.06) (0.01) (0.03) (0.02)
Currency effects (in Miscellaneous-net) - 0.09 (0.01) 0.02 0.12
Bad debt charges (in SA&PD) (0.02) (0.11) (0.05) (0.02) (0.03)
Inventory charges (in COS) (0.02) (0.07) 0.03 (0.05) (0.03)
Benefit from change in effective income tax rate - 0.05 0.05 - -
Incentive pay (in both COS, SA&PD) - (0.04) (0.01) (0.03) -
Deferred profit on sale-leaseback (in COS) - - - - -
BALANCE SHEET & LIQUIDITY MEASURES
Cash & cash equivalents $ 11,288 $ 132,809 $ 132,809 $ 16,529 $ 9,565
Accounts receivable, net 297,001 266,180 266,180 252,200 210,192
Finance receivable, net 33,057 34,324 34,324 28,936 79,458
Pledged finance receivables, net 153,762 160,407 160,407 167,089 113,656
Inventories 148,397 116,886 116,886 154,168 168,612
Total balance sheet debt 467,422 460,570 460,570 377,571 372,305
Limited recourse debt from finance receivables
monetizations 153,541 164,940 164,940 164,653 106,662
Net debt(3) 310,498 171,103 171,103 206,361 266,913
Net debt(3) to total capitalization 55% 41% 41% 46% 52%
Maximum loss exposure from finance receivables
monetizations 23,380 21,708 21,708 18,928 8,519
Equity 250,439 249,497 249,497 245,034 241,760
Working capital 323,478 384,546 384,546 292,498 277,431
Depreciation and amortization 6,486 19,937 4,591 4,931 5,147
Capital expenditures, net of retirements 3,429 10,324 2,662 2,942 3,076
Free cash flow(4) (139,395) 27,781 35,258 60,553 (11,286)
FINANCIAL RATIOS
Days sales outstanding 115.7 131.6 131.6 124.1 103.6
Days payables outstanding 59.1 70.8 70.8 75.8 36.0
Inventory turnover (annualized) 3.8 3.4 3.4 3.2 3.3
FISCAL YEAR
OCTOBER 31, ENDED
2002 JULY 31, 2002
----------- -------------
REVENUES AND PROFITABILITY
Revenues $ 160,487 $ 770,070
Gross profit margin 18.1% 17.2%
EBITDA(1) 11,256 56,435
Trailing twelve month EBITDA(1) 54,726 56,435
Trailing twelve month EBITDA margin(1) 7.1% 7.3%
Operating income 7,730 30,717
Operating profit margin 4.8% 4.0%
Net income margin(1) 0.2% 1.7%
Reported EPS per diluted share(1) $ .01 $ .30
IMPACT OF SELECTED ITEMS ON:(2)
income (expense)
PRE-TAX INCOME
Integration expenses - OmniQuip
(in both Cost of sales (COS), Selling &
administrative and product development (SA&PD)) $ - $ -
Restructuring and repositioning charges (in both
COS, Restructuring) (163) (6,715)
Currency effects (in Miscellaneous-net) (2,449) 2,896
Bad debt charges (in SA&PD) (781) (3,693)
Inventory charges (in COS) (1,044) (4,670)
Incentive pay (in both COS, SA&PD) - -
Deferred profit on sale-leaseback (in COS) - 3,069
NET INCOME
Integration expenses - OmniQuip
(in both COS, SA&PD) - -
Restructuring and repositioning charges (in both
COS, Restructuring) (111) (4,499)
Currency effects (in Miscellaneous-net) (1,665) 1,940
Bad debt charges (in SA&PD) (531) (2,474)
Inventory charges (in COS) (710) (3,129)
Benefit from change in effective income tax rate - -
Incentive pay (in both COS, SA&PD) - -
Deferred profit on sale-leaseback (in COS) - 2,056
EARNINGS PER SHARE
Integration expenses - OmniQuip
(in both COS, SA&PD) - -
Restructuring and repositioning charges (in both
COS, Restructuring) - (0.10)
Currency effects (in Miscellaneous-net) (0.04) 0.05
Bad debt charges (in SA&PD) (0.01) (0.06)
Inventory charges (in COS) (0.02) (0.07)
Benefit from change in effective income tax rate - -
Incentive pay (in both COS, SA&PD) - -
Deferred profit on sale-leaseback (in COS) - 0.05
BALANCE SHEET & LIQUIDITY MEASURES
Cash & cash equivalents $ 10,181 $ 6,205
Accounts receivable, net 200,329 227,722
Finance receivable, net 99,766 73,660
Pledged finance receivables, net 86,700 88,056
Inventories 178,016 165,536
Total balance sheet debt 337,126 279,329
Limited recourse debt from finance receivables
monetizations 83,188 87,571
Net debt(3) 255,627 198,884
- -----------
Net debt(3) to total capitalization 52% 46%
- -----------------------------------
Maximum loss exposure from finance receivables
monetizations 6,275 5,998
Equity 235,897 236,042
Working capital 243,593 231,203
Depreciation and amortization 5,268 20,959
Capital expenditures, net of retirements 1,644 12,390
Free cash flow(4) (56,744) 169,753
- -----------------
FINANCIAL RATIOS
Days sales outstanding 97.3 111.4
Days payables outstanding 59.2 66.5
Inventory turnover (annualized) 3.5 3.3
(1) Before cumulative effect of change in accounting principle.
(2) Net of 35%, 32% and 33% effective income tax rate for fiscal 2004, 2003 and
2002, respectively. EPS is calculated by dividing the Net Income amounts by
the respective diluted shares for each period. Individual quarterly net
income (loss) per diluted share may not equal the fiscal year EPS due to
changes in the number of common shares outstanding during the year.
Repositioning charges are reported in COS.
(3) Net debt reflects total balance sheet debt plus off-balance sheet
financing, less cash and limited recourse debt from finance receivables
monetizations.
(4) Free cash flow is defined as cash flow from operating activities, investing
activities, payment of dividends, exercise of stock options 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 receivables monetizations and off-balance sheet debt.
JLG Industries, Inc. - Page 4
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(QUARTERLY DATA IS UNAUDITED)
FISCAL YEAR FISCAL YEAR
QUARTER ENDED ENDED QUARTER ENDED ENDED
OCTOBER 31, 2003 JULY 31, JULY 31, APRIL 30, JANUARY 31, OCTOBER 31, JULY 31,
CONSOLIDATED OMNIQUIP 2003 2003 2003 2003 2002 2002
--------------------- ----------- -------- --------- ----------- ---------- -----------
Revenues
Net sales $207,002 $53,435 $733,480 $235,849 $199,282 $143,961 $154,388 $ 745,870
Financial products 3,676 - 19,184 4,806 5,152 4,836 4,390 14,227
Rentals 1,517 - 7,125 1,564 1,336 2,516 1,709 9,973
------------------ -------- -------- -------- -------- -------- ---------
212,195 53,435 759,789 242,219 205,770 151,313 160,487 770,070
Cost of sales 174,333 46,818 622,475 194,764 171,125 125,215 131,371 637,983
------------------ -------- -------- -------- -------- -------- ---------
Gross profit 37,862 6,617 137,314 47,455 34,645 26,098 29,116 132,087
Gross profit margin 17.8% 12.4% 18.1% 19.6% 16.8% 17.2% 18.1% 17.2%
Selling and administrative expenses 23,716 3,983 79,225 25,276 20,087 16,377 17,485 79,693
Selling & administrative % 11.2% 7.5% 10.4% 10.4% 9.8% 10.8% 10.9% 10.3%
Product development expenses 4,773 696 16,142 3,791 4,561 3,889 3,901 15,586
Product development % 2.2% 1.3% 2.1% 1.6% 2.2% 2.6% 2.4% 2.0%
Restructuring charges 11 - 2,754 138 1,433 1,183 - 6,091
------------------ -------- -------- -------- -------- -------- ---------
Income from operations 9,362 1,938 39,193 18,250 8,564 4,649 7,730 30,717
Operating profit margin 4.4% 3.6% 5.2% 7.5% 4.2% 3.1% 4.8% 4.0%
Other income (deductions):
Interest expense (9,876) (2,204) (27,985) (9,645) (6,764) (6,072) (5,504) (16,255)
Miscellaneous, net 940 1 6,691 (588) 1,383 7,638 (1,742) 4,759
------------------ -------- -------- -------- -------- -------- ---------
Income before taxes and
cumulative effect of change
in accouting principle 426 (265) 17,899 8,017 3,183 6,215 484 19,221
Income tax provision 149 (93) 3,724 562 1,018 1,989 155 6,343
------------------ -------- -------- -------- -------- -------- ---------
Income before cumulative effect
of change in accounting principle 277 (172) 14,175 7,455 2,165 4,226 329 12,878
Cumulative effect of change in
accounting principle (1) - - - - - - - (114,470)
------------------ -------- -------- -------- -------- -------- ---------
Net income (loss) $ 277 $ (172) $ 14,175 $ 7,455 $ 2,165 $ 4,226 $ 329 $(101,592)
================== ======== ======== ======== ======== ======== =========
Return on revenues before impairment 0.1% -0.3% 1.9% 3.1% 1.1% 2.8% 0.2% 1.7%
Earnings (loss) per common share:
Earnings per common share
before cumulative effect of change in
accounting principle $ .01 $ (.00) $ .33 $ .17 $ .05 $ .10 $ .01 $ .31
Cumulative effect of change in
accounting principle(1) - - - - - - - (2.72)
------------------ -------- -------- -------- -------- -------- ---------
Earnings (loss) per
common share $ .01 $ (.00) $ .33 $ .17 $ .05 $ .10 $ .01 $ (2.41)
================== ======== ======== ======== ======== ======== =========
Earnings (loss) per common share -
assuming dilution:
Earnings per common share - assuming
dilution before cumulative effect of
change in accounting principle $ .01 $ (.00) $ .33 $ .17 $ .05 $ .10 $ .01 $ .30
Cumulative effect of change in
accounting principle(1) - - - - - - - (2.65)
------------------ -------- -------- -------- -------- -------- ---------
Earnings (loss) per common share -
assuming dilution $ .01 $ (.00) $ .33 $ .17 $ .05 $ .10 $ .01 $ (2.35)
================== ======== ======== ======== ======== ======== =========
Cash Dividends per share $ .005 $ - $ .020 $ .005 $ .005 $ .005 $ .005 $ .025
================== ======== ======== ======== ======== ======== =========
Average basic shares outstanding 42,656 42,656 42,601 42,608 42,598 42,570 42,541 42,082
================== ======== ======== ======== ======== ======== =========
Average diluted shares outstanding 43,575 43,575 42,866 42,883 42,775 42,867 42,853 43,170
================== ======== ======== ======== ======== ======== =========
(1)Goodwill impairment.
JLG Industries, Inc. - Page 5
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(QUARTERLY DATA IS UNAUDITED)
OCTOBER 31, JULY 31, APRIL 30, JANUARY 31, OCTOBER 31, JULY 31,
2003 2003 2003 2003 2002 2002
----------- -------- --------- ----------- ----------- --------
ASSETS
- ------
Current assets
Cash and cash equivalents $ 11,288 $ 132,809 $ 16,529 $ 9,565 $ 10,181 $ 6,205
Accounts receivable, net 297,001 266,180 252,200 210,192 200,329 227,722
Finance receivables, net 2,573 3,168 1,570 18,031 18,276 28,248
Pledged finance receivables, net 39,380 41,334 50,741 39,685 35,391 34,353
Inventories 148,397 116,886 154,168 168,612 178,016 165,536
Other current assets 53,311 45,385 23,061 24,404 31,675 31,042
--------- --------- --------- --------- --------- ---------
Total current assets 551,950 605,762 498,269 470,489 473,868 493,106
Property, plant and equipment, net 92,525 79,699 80,366 81,165 82,057 84,370
Equipment held for rental, net 18,236 19,651 20,509 20,288 21,552 20,979
Finance receivables, less current portion 30,484 31,156 27,366 61,427 81,490 45,412
Pledged finance receivables, less current portion 114,382 119,073 116,348 73,971 51,309 53,703
Goodwill, net 66,450 29,509 29,509 29,509 28,791 28,791
Intangible assets, net 34,448 - - - - -
Other assets 66,002 53,135 53,396 59,231 55,870 51,880
--------- --------- --------- --------- --------- ---------
$ 974,477 $ 937,985 $ 825,763 $ 796,080 $ 794,937 $ 778,241
========= ========= ========= ========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Current liabilities
Short-term debt and current portion of long-term debt $ 2,278 $ 1,472 $ 912 $ 23,436 $ 25,375 $ 14,427
Current portion of limited recourse debt from finance
receivables monetizations 40,153 45,279 50,980 36,511 33,862 34,850
Accounts payable 68,197 83,408 83,059 70,162 96,283 129,317
Accrued expenses 117,844 91,057 70,820 62,949 74,755 83,309
--------- --------- --------- --------- --------- ---------
Total current liabilities 228,472 221,216 205,771 193,058 230,275 261,903
Long-term debt, less current portion 311,603 294,158 212,006 242,207 228,563 177,331
Limited recourse debt from finance receivables
monetizations, less current portion 113,388 119,661 113,673 70,151 49,326 52,721
Accrued post-retirement benefits 27,199 26,179 26,255 25,833 25,411 24,989
Other long-term liabilities 29,790 15,160 11,118 11,317 11,150 10,807
Provisions for contingencies 13,586 12,114 11,906 11,754 14,315 14,448
Shareholders' equity
Capital stock:
Authorized shares: 100,000 at $.20 par value
Issued shares: fiscal 2004 - 43,416;
fiscal 2003 - 43,367; fiscal 2002 - 42,728 8,683 8,673 8,601 8,594 8,594 8,546
Additional paid-in capital 23,789 23,597 20,514 20,508 20,594 18,846
Retained earnings 230,334 230,273 223,033 221,083 217,072 216,957
Unearned compensation (5,145) (5,428) (2,749) (2,938) (3,157) (1,649)
Accumulated other comprehensive loss (7,222) (7,618) (4,365) (5,487) (7,206) (6,658)
--------- --------- --------- --------- --------- ---------
Total shareholders' equity 250,439 249,497 245,034 241,760 235,897 236,042
--------- --------- --------- --------- --------- ---------
$ 974,477 $ 937,985 $ 825,763 $ 796,080 $ 794,937 $ 778,241
========= ========= ========= ========= ========= =========
JLG Industries, Inc. - Page 6
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(IN THOUSANDS)
(QUARTERLY DATA IS UNAUDITED)
QUARTER ENDED FISCAL YEAR
OCTOBER 31, ENDED JULY 31,
2003 JULY 31, 2003 2003
------------- ------------- ---------
OPERATIONS
Net income (loss) $ 277 $ 14,175 $ 7,455
Adjustments to reconcile net income to cash
flow from operating activities:
(Gain) loss on sale of property, plant and equipment 293 266 149
(Gain) loss on sale of equipment held for rental 1,320 (6,794) (1,091)
Non-cash charges and credits:
Cumulative effect of change in accounitng principle - - -
Depreciation and amortization 6,486 19,937 4,591
Other 3,171 8,124 (4,475)
Changes in selected working capital items:
Accounts receivable(1) 2,409 (43,985) (17,651)
Inventories 5,900 48,926 37,953
Accounts payable (34,954) (46,026) 621
Other operating assets and liabilities 44 (12,706) (2,052)
Changes in finance receivables 1,055 40,487 (2,644)
Changes in pledged finance receivables (15,452) (114,271) (14,627)
Changes in other assets and liabilities (3,899) (3,295) (3,392)
--------- --------- ---------
Cash flow from operating activities (33,350) (95,162) 4,837
INVESTMENTS
Purchases of property, plant and equipment (3,811) (10,806) (2,811)
Proceeds from sale of property, plant and equipment 89 216 -
Purchases of equipment held for rental (2,209) (16,342) (1,991)
Proceeds from sale of equipment held for rental 1,141 19,063 2,882
Cash portion of OmniQuip acquisition (95,371) - -
Other (46) (689) (25)
--------- --------- ---------
Cash flow from investing activities (100,207) (8,558) (1,945)
FINANCING
Net issuance (repayment) of short-term debt 594 (13,497) 568
Issuance of long-term debt 22,000 404,283 126,995
Repayment of long-term debt (22,086) (279,647) (32,336)
Issuance of limited recourse debt 10,871 117,383 18,940
Repayment of limited recourse debt (253) (118) -
Payment of dividends (216) (859) (215)
Exercise of stock options and issuance of restricted awards 485 927 189
--------- --------- ---------
Cash flow from financing activities 11,395 228,472 114,141
CURRENCY ADJUSTMENTS
Effect of exchange rate changes on cash 641 1,852 (753)
CASH
Net change in cash and cash equivalents (121,521) 126,604 116,280
Beginning balance 132,809 6,205 16,529
--------- --------- ---------
Ending balance $ 11,288 $ 132,809 $ 132,809
========= ========= =========
QUARTER ENDED FISCAL YEAR
APRIL 30, JANUARY 31, OCTOBER 31, ENDED
2003 2003 2002 JULY 31, 2002
--------- ----------- ----------- -------------
OPERATIONS
Net income (loss) $ 2,165 $ 4,226 $ 329 $(101,592)
Adjustments to reconcile net income to cash
flow from operating activities:
(Gain) loss on sale of property, plant and equipment 25 89 3 392
(Gain) loss on sale of equipment held for rental (1,852) (3,154) (697) (8,049)
Non-cash charges and credits:
Cumulative effect of change in accounitng principle - - - 114,470
Depreciation and amortization 4,931 5,147 5,268 20,959
Other 4,317 5,683 2,599 6,997
Changes in selected working capital items:
Accounts receivable(1) (41,663) (11,945) 27,274 (40,110)
Inventories 14,544 8,695 (12,266) 24,462
Accounts payable 12,832 (26,469) (33,010) 52,685
Other operating assets and liabilities 7,434 (8,396) (9,692) 15,194
Changes in finance receivables 50,239 20,244 (27,352) 57,154
Changes in pledged finance receivables (64,299) (32,950) (2,395) (91,331)
Changes in other assets and liabilities 3,970 (281) (3,592) (28,136)
--------- --------- --------- ---------
Cash flow from operating activities (7,357) (39,111) (53,531) 23,095
INVESTMENTS
Purchases of property, plant and equipment (3,059) (3,286) (1,650) (12,954)
Proceeds from sale of property, plant and equipment 92 121 3 172
Purchases of equipment held for rental (3,014) (7,713) (3,624) (26,429)
Proceeds from sale of equipment held for rental 3,577 10,099 2,505 28,924
Cash portion of OmniQuip acquisition - - - -
Other 529 (1,136) (57) 405
--------- --------- --------- ---------
Cash flow from investing activities (1,875) (1,915) (2,823) (9,882)
FINANCING
Net issuance (repayment) of short-term debt (23,114) (1,975) 11,024 (7,771)
Issuance of long-term debt 57,288 127,000 93,000 617,000
Repayment of long-term debt (88,050) (116,059) (43,202) (717,572)
Issuance of limited recourse debt 68,975 29,468 - 90,214
Repayment of limited recourse debt (118) - - -
Payment of dividends (215) (215) (214) (1,058)
Exercise of stock options and issuance of restricted awards 260 203 275 3,732
--------- --------- --------- ---------
Cash flow from financing activities 15,026 38,422 60,883 (15,455)
CURRENCY ADJUSTMENTS
Effect of exchange rate changes on cash 1,170 1,988 (553) (807)
CASH
Net change in cash and cash equivalents 6,964 (616) 3,976 (3,049)
Beginning balance 9,565 10,181 6,205 9,254
--------- --------- --------- ---------
Ending balance $ 16,529 $ 9,565 $ 10,181 $ 6,205
========= ========= ========= =========
(1) Net of change in accounts receivable securitiation of $50,600 for the
period ended July 31, 2002.
JLG Industries, Inc. - Page 7
JLG INDUSTRIES, INC.
CONSOLIDATED SELECTED SUPPLEMENTAL FINANCIAL INFORMATION
(IN THOUSANDS)
(QUARTERLY DATA IS UNAUDITED)
QUARTER FISCAL YEAR FISCAL YEAR
ENDED ENDED QUARTER ENDED ENDED
OCTOBER 31, JULY 31, JULY 31, APRIL 30, JANUARY 31, OCTOBER 31, JULY 31,
2003 2003 2003 2003 2003 2002 2002
--------- --------- --------- --------- --------- ---------- -----------
SEGMENT INFORMATION
REVENUES:
Machinery $ 167,568 $ 603,145 $ 201,419 $ 167,630 $ 109,550 $ 124,546 $ 621,283
Equipment Services 40,815 136,737 35,855 32,835 36,676 31,371 133,058
Access Financial Solutions 3,812 19,907 4,945 5,305 5,087 4,570 15,729
--------- --------- --------- --------- --------- --------- ---------
$ 212,195 $ 759,789 $ 242,219 $ 205,770 $ 151,313 $ 160,487 $ 770,070
========= ========= ========= ========= ========= ========= =========
SEGMENT PROFIT (LOSS):
Machinery $ 6,189 $ 28,385 $ 16,573 $ 6,665 $ 168 $ 4,979 $ 29,039
Equipment services 11,068 27,119 8,235 6,998 6,632 5,254 24,686
Access Financial Solutions 284 3,990 295 716 1,881 1,098 5,288
General corporate expenses (11,093) (32,001) (10,356) (9,434) (6,475) (5,736) (33,347)
--------- --------- --------- --------- --------- --------- ---------
Segment profit 6,448 27,493 14,747 4,945 2,206 5,595 25,666
Add: AFS' interest expense 2,914 11,700 3,503 3,619 2,443 2,135 5,051
--------- --------- --------- --------- --------- --------- ---------
Operating Income $ 9,362 $ 39,193 $ 18,250 $ 8,564 $ 4,649 $ 7,730 $ 30,717
========= ========= ========= ========= ========= ========= =========
PRODUCT GROUP REVENUES
Aerial work platforms $ 89,090 $ 435,164 $ 148,144 $ 116,092 $ 79,615 $ 91,313 $ 475,241
Telehandlers 70,788 119,536 37,674 34,843 19,417 27,602 87,443
Excavators 7,690 48,445 15,601 16,695 10,518 5,631 58,599
After-sales service and support, including
parts sales, and used and reconditioned
equipment sales 39,434 130,335 34,430 31,652 34,411 29,842 124,587
Financial products 3,676 19,184 4,806 5,152 4,836 4,390 14,227
Rentals 1,517 7,125 1,564 1,336 2,516 1,709 9,973
--------- --------- --------- --------- --------- --------- ---------
$ 212,195 $ 759,789 $ 242,219 $ 205,770 $ 151,313 $ 160,487 $ 770,070
========= ========= ========= ========= ========= ========= =========
GEOGRAPHIC REVENUES
United States $ 170,281 $ 555,155 $ 174,033 $ 155,852 $ 107,920 $ 117,350 $ 556,252
Europe 23,951 145,038 47,144 33,830 32,816 31,248 167,940
Other international 17,963 59,596 21,042 16,088 10,577 11,889 45,878
--------- --------- --------- --------- --------- --------- ---------
$ 212,195 $ 759,789 $ 242,219 $ 205,770 $ 151,313 $ 160,487 $ 770,070
========= ========= ========= ========= ========= ========= =========
JLG Industries, Inc. - Page 8
JLG INDUSTRIES, INC.
EBITDA
QUARTERLY PERIODS
(IN THOUSANDS)
OCTOBER 31, JULY 31, APRIL 30, JANUARY 31, OCTOBER 31,
2003 2003 2003 2003 2002
----------- -------- --------- ----------- -----------
Income before cumulative effect of
change in accounting principle $ 277 $ 7,455 $ 2,165 $ 4,226 $ 329
Interest expense 9,876 9,645 6,764 6,072 5,504
Income tax provision 149 562 1,018 1,989 155
Depreciation and amortization 6,486 4,591 4,931 5,147 5,268
------- ------- ------- ------- -------
EBITDA $16,788 $22,253 $14,878 $17,434 $11,256
======= ======= ======= ======= =======
We also monitor our EBITDA, which is a supplemental measure to GAAP that
provides 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. EBITDA reflects our earnings before interest,
taxes and depreciation and amortization. EBITDA as presented 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.
JLG Industries, Inc. - Page 9
JLG INDUSTRIES, INC.
EBITDA AND EBITDA MARGINS
TRAILING TWELVE MONTH PERIODS
(IN THOUSANDS)
OCTOBER 31, JULY 31, APRIL 30, JANUARY 31, OCTOBER 31, JULY 31,
2003 2003 2003 2003 2002 2002
----------- -------- --------- ----------- ----------- --------
Income before cumulative effect of
change in accounting principle $ 14,123 $ 14,175 $ 15,062 $ 13,733 $ 10,841 $ 12,878
Interest expense 32,357 27,985 22,885 19,466 17,421 16,255
Income tax provision 3,718 3,724 7,270 6,664 5,333 6,343
Depreciation and amortization 21,155 19,937 20,492 20,255 21,131 20,959
-------- -------- -------- -------- -------- --------
EBITDA $ 71,353 $ 65,821 $ 65,709 $ 60,118 $ 54,726 $ 56,435
======== ======== ======== ======== ======== ========
Revenues $811,497 $759,789 $766,394 $769,356 $774,395 $770,070
======== ======== ======== ======== ======== ========
EBITDA Margin 8.8% 8.7% 8.6% 7.8% 7.1% 7.3%
======== ======== ======== ======== ======== ========
We also monitor our EBITDA, which is a supplemental measure to GAAP that
provides 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. EBITDA reflects our earnings before interest,
taxes and depreciation and amortization. EBITDA as presented 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.
JLG Industries, Inc. - Page 10
JLG INDUSTRIES, INC.
NET DEBT
(IN THOUSANDS)
OCTOBER 31, JULY 31, APRIL 30,
2003 2003 2003
----------- --------- ---------
Revolving credit facilities $ - $ - $ 30,288
$15 million cash management facility 567 - -
$25 million overdraft credit facility - - -
$125 million senior notes 125,000 125,000 -
$175 million senior subordinated notes 175,000 175,000 175,000
Miscellaneous debt 15,554 1,983 1,468
Fair value of interest rate swap (8,065) (12,347) -
Gain on terminated interest rate swap 5,825 5,994 6,162
--------- --------- ---------
Bank debt and notes 313,881 295,630 212,918
Limited recourse debt from finance receivables monetizations (*) 153,541 164,940 164,653
--------- --------- ---------
Total balance sheet debt 467,422 460,570 377,571
--------- --------- ---------
Net present value of off-balance sheet rental fleet lease 2,341 2,341 3,382
Net present value of off-balance sheet production equipment leases 5,564 5,941 6,590
--------- --------- ---------
Total off-balance sheet financing 7,905 8,282 9,972
--------- --------- ---------
Total balance sheet debt and off-balance sheet financing 475,327 468,852 387,543
Less: cash 11,288 132,809 16,529
Less: limited recourse debt from finance receivables monetizations 153,541 164,940 164,653
--------- --------- ---------
Net debt $ 310,498 $ 171,103 $ 206,361
========= ========= =========
(*) Maximum loss exposure from finance receivables monetizations $ 23,380 $ 21,708 $ 18,928
========= ========= =========
Shareholders' Equity $ 250,439 $ 249,497 $ 245,034
========= ========= =========
Net Debt-to-Net Debt plus Shareholders' Equity 55% 41% 46%
========= ========= =========
Total Balance Sheet Debt-to-Total Balance Sheet Debt plus
Shareholders' Equity 65% 65% 61%
========= ========= =========
JANUARY 31, OCTOBER 31, JULY 31,
2003 2002 2002
----------- ----------- ---------
Revolving credit facilities $ 61,000 $ 50,000 $ -
$15 million cash management facility - - -
$25 million overdraft credit facility 23,058 25,000 13,935
$125 million senior notes - - -
$175 million senior subordinated notes 175,000 175,000 175,000
Miscellaneous debt 1,573 1,665 1,909
Fair value of interest rate swap 5,012 2,273 914
Gain on terminated interest rate swap - - -
--------- --------- ---------
Bank debt and notes 265,643 253,938 191,758
Limited recourse debt from finance receivables monetizations (*) 106,662 83,188 87,571
--------- --------- ---------
Total balance sheet debt 372,305 337,126 279,329
--------- --------- ---------
Net present value of off-balance sheet rental fleet lease 3,858 4,506 5,582
Net present value of off-balance sheet production equipment leases 6,977 7,364 7,749
--------- --------- ---------
Total off-balance sheet financing 10,835 11,870 13,331
--------- --------- ---------
Total balance sheet debt and off-balance sheet financing 383,140 348,996 292,660
Less: cash 9,565 10,181 6,205
Less: limited recourse debt from finance receivables monetizations 106,662 83,188 87,571
--------- --------- ---------
Net debt $ 266,913 $ 255,627 $ 198,884
========= ========= =========
(*) Maximum loss exposure from finance receivables monetizations $ 8,519 $ 6,275 $ 5,998
========= ========= =========
Shareholders' Equity $ 241,760 $ 235,897 $ 236,042
========= ========= =========
Net Debt-to-Net Debt plus Shareholders' Equity 52% 52% 46%
========= ========= =========
Total Balance Sheet Debt-to-Total Balance Sheet Debt plus
Shareholders' Equity 61% 59% 54%
========= ========= =========
We also monitor our net debt, which is a supplemental measure to GAAP that
provides additional information concerning our leverage position and our
historical ability to meet debt service and capital expenditure and working
capital requirements. We define net debt as the sum of total balance sheet debt
and other off-balance sheet financing, minus cash and limited recourse debt
arising from our monetization of customer finance receivables.
JLG Industries, Inc. - Page 11
JLG INDUSTRIES, INC.
FREE CASH FLOW
(IN THOUSANDS)
QUARTER ENDED FISCAL YEAR
OCTOBER 31, ENDED JULY 31,
2003 JULY 31, 2003 2003
------------ ------------- ---------
Net income (loss) $ 277 $ 14,175 $ 7,455
Adjustments to reconcile net income to
cash flow from operating activities 11,270 21,533 (826)
Accounts receivable 2,409 (43,985) (17,651)
Inventories 5,900 48,926 37,953
Other current assets (3,076) (15,960) (18,109)
Accounts payable (34,954) (46,026) 621
Accrued expenses 3,120 3,254 16,057
Finance receivables 1,055 40,487 (2,644)
Other cash from operations (3,899) (3,295) (3,392)
Purchases of property, plant and equipment (3,811) (10,806) (2,811)
Proceeds from sale of property, plant and 89 216 -
Purchases of equipment held for rental (2,209) (16,342) (1,991)
Proceeds from sale of equipment held for rental 1,141 19,063 2,882
Cash portion of OmniQuip acquisition (95,371) - -
Other cash from investments (46) (689) (25)
Payment of dividends (216) (859) (215)
Exercise of stock option and issuance of restricted 485 927 189
Effect of exchange rate changes on cash 641 1,852 (753)
Seller financing (10,000) - -
Capital lease assumed in OmniQuip acquisition (3,630) - -
Other(1) (8,570) 15,310 18,518
--------- --------- ---------
Free Cash Flow ($139,395) $ 27,781 $ 35,258
========= ========= =========
QUARTER ENDED FISCAL YEAR
APRIL 30, JANUARY 31, OCTOBER 31, ENDED
2003 2003 2002 JULY 31, 2002
--------- ----------- ----------- -------------
Net income (loss) $ 2,165 $ 4,226 $ 329 ($101,592)
Adjustments to reconcile net income to
cash flow from operating activities 7,421 7,765 7,173 134,769
Accounts receivable (41,663) (11,945) 27,274 (40,110)
Inventories 14,544 8,695 (12,266) 24,462
Other current assets 191 2,721 (763) 3,110
Accounts payable 12,832 (26,469) (33,010) 52,685
Accrued expenses 7,243 (11,117) (8,929) 12,084
Finance receivables 50,239 20,244 (27,352) 57,154
Other cash from operations 3,970 (281) (3,592) (28,136)
Purchases of property, plant and equipment (3,059) (3,286) (1,650) (12,954)
Proceeds from sale of property, plant and 92 121 3 172
Purchases of equipment held for rental (3,014) (7,713) (3,624) (26,429)
Proceeds from sale of equipment held for rental 3,577 10,099 2,505 28,924
Cash portion of OmniQuip acquisition - - - -
Other cash from investments 529 (1,136) (57) 405
Payment of dividends (215) (215) (214) (1,058)
Exercise of stock option and issuance of restricted 260 203 275 3,732
Effect of exchange rate changes on cash 1,170 1,988 (553) (807)
Seller financing - - - -
Capital lease assumed in OmniQuip acquisition - - - -
Other(1) 4,271 (5,186) (2,293) 63,342
--------- --------- --------- ---------
Free Cash Flow $ 60,553 ($ 11,286) ($ 56,744) $ 169,753
========= ========= ========= =========
(1) Includes changes in accounts receivable securitization and other
off-balance sheet debt.
In addition to measuring our cash flow generation and usage based upon the
Statements of Cash Flows, we also measure our free cash flow.
We define free cash flow as cash flow from operating activities, investing
activities, payment of dividends, exercise of stock options 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
receivables 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.
JLG Industries, Inc. - Page 12
JLG INDUSTRIES, INC.
STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
CONSOLIDATED EQUIPMENT OPERATIONS
JLG INDUSTRIES, INC. AND JLG INDUSTRIES, INC. WITH ACCESS
CONSOLIDATED SUBSIDIARIES FINANCIAL SOLUTIONS ON THE EQUITY BASIS
------------------------------ ---------------------------------------
THREE MONTHS ENDED OCTOBER 31, THREE MONTHS ENDED OCTOBER 31,
2003 2002 2003 2002
---- ---- ---- ----
Revenues
Net sales $ 207,002 $ 154,388 $ 207,002 $ 154,388
Financial products 3,676 4,390 - -
Rentals 1,517 1,709 1,381 1,529
--------- --------- --------- ---------
212,195 160,487 208,383 155,917
Cost of sales 174,333 131,371 174,175 131,194
--------- --------- --------- ---------
Gross profit 37,862 29,116 34,208 24,723
Selling and administrative expenses 23,716 17,485 23,260 16,325
Product development expenses 4,773 3,901 4,773 3,901
Restructuring charges 11 - 11 -
--------- --------- --------- ---------
Income from operations 9,362 7,730 6,164 4,497
Other income (deductions):
Interest expense (9,876) (5,504) (6,962) (3,369)
Miscellaneous, net 940 (1,742) 940 (1,742)
--------- --------- --------- ---------
Income before taxes 426 484 142 (614)
Income tax provision 149 155 50 (196)
Equity in income of Access Financial Solutions - - 185 747
--------- --------- --------- ---------
Net income $ 277 $ 329 $ 277 $ 329
========= ========= ========= =========
Earnings per common share $ .01 $ .01
========= =========
Earnings per common share -
assuming dilution $ .01 $ .01
========= =========
Cash dividends per share $ .005 $ .005
========= =========
Weighted average shares outstanding 42,656 42,541
========= =========
Weighted average shares outstanding -
assuming dilution 43,575 42,853
========= =========
FINANCIAL SERVICES
ACCESS FINANCIAL SOLUTIONS
-------------------------------------
THREE MONTHS ENDED OCTOBER 31,
2003 2002
---- ----
Revenues
Net sales $ - $ -
Financial products 3,676 4,390
Rentals 136 180
--------- ---------
3,812 4,570
Cost of sales 158 177
--------- ---------
Gross profit 3,654 4,393
Selling and administrative expenses 456 1,160
Product development expenses - -
Restructuring charges - -
--------- ---------
Income from operations 3,198 3,233
Other income (deductions):
Interest expense (2,914) (2,135)
Miscellaneous, net - -
--------- ---------
Income before taxes 284 1,098
Income tax provision 99 351
Equity in income of Access Financial Solutions - -
--------- ---------
Net income $ 185 $ 747
========= =========
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.
JLG Industries, Inc. - Page 13
JLG INDUSTRIES, INC.
BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
CONSOLIDATED EQUIPMENT OPERATIONS
JLG INDUSTRIES, INC. AND JLG INDUSTRIES, INC. WITH ACCESS
CONSOLIDATED SUBSIDIARIES FINANCIAL SOLUTIONS ON THE EQUITY BASIS
--------------------------- ---------------------------------------
OCTOBER 31, JULY 31, OCTOBER 31, JULY 31,
2003 2003 2003 2003
---- ---- ---- ----
ASSETS
- ------
Current assets
Cash and cash equivalents $ 11,288 $ 132,809 $ 11,288 $ 132,809
Accounts receivable - net 297,001 266,180 278,943 226,182
Finance receivables - net 2,573 3,168 - -
Pledged receivables - net 39,380 41,334 - -
Inventories 148,397 116,886 148,397 116,886
Other current assets 53,311 45,385 53,311 45,385
--------- --------- --------- ---------
Total current assets 551,950 605,762 491,939 521,262
Property, plant and equipment - net 92,525 79,699 92,525 79,699
Equipment held for rental - net 18,236 19,651 16,085 17,455
Finance receivables, less current portion 30,484 31,156 - -
Pledged receivables, less current portion 114,382 119,073 - -
Goodwill - net 66,450 29,509 66,450 29,509
Intangible assets - net 34,448 - 34,448 -
Investment in Access Financial Solutions - - 36,748 36,563
Receivable from Access Financial Solutions - - 17,411 35,792
Other assets 66,002 53,135 64,969 52,428
--------- --------- --------- ---------
$ 974,477 $ 937,985 $ 820,575 $ 772,708
========= ========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Current liabilities
Short-term debt $ 2,278 $ 1,472 $ 2,278 $ 1,472
Current portion of limited recourse debt from finance
receivables monetizations 40,153 45,279 - -
Accounts payable 68,197 83,408 68,197 83,408
Accrued expenses 117,844 91,057 117,483 90,720
--------- --------- --------- ---------
Total current liabilities 228,472 221,216 187,958 175,600
Long-term debt, less current portion 311,603 294,158 311,603 294,158
Limited recourse debt from finance receivables
monetizations, less current portion 113,388 119,661 - -
Payable to JLG Industries, Inc. - - - -
Accrued post-retirement benefits 27,199 26,179 27,199 26,179
Other long-term liabilities 29,790 15,160 29,790 15,160
Provisions for contingencies 13,586 12,114 13,586 12,114
Shareholders' equity
Capital stock:
Authorized shares: 100,000 at $.20 par value
Issued and outstanding shares: 43,416 shares;
fiscal 2003 - 43,367 shares 8,683 8,673 8,683 8,673
Additional paid-in capital 23,789 23,597 23,789 23,597
Retained earnings 230,334 230,273 230,334 230,273
Unearned compensation (5,145) (5,428) (5,145) (5,428)
Accumulated other comprehensive loss (7,222) (7,618) (7,222) (7,618)
--------- --------- --------- ---------
Total shareholders' equity 250,439 249,497 250,439 249,497
--------- --------- --------- ---------
$ 974,477 $ 937,985 $ 820,575 $ 772,708
========= ========= ========= =========
FINANCIAL SERVICES
ACCESS FINANCIAL SOLUTIONS
--------------------------
OCTOBER 31, JULY 31,
2003 2003
---- ----
ASSETS
- ------
Current assets
Cash and cash equivalents $ - $ -
Accounts receivable - net 18,058 39,998
Finance receivables - net 2,573 3,168
Pledged receivables - net 39,380 41,334
Inventories - -
Other current assets - -
--------- ---------
Total current assets 60,011 84,500
Property, plant and equipment - net - -
Equipment held for rental - net 2,151 2,196
Finance receivables, less current portion 30,484 31,156
Pledged receivables, less current portion 114,382 119,073
Goodwill - net - -
Intangible assets - net - -
Investment in Access Financial Solutions - -
Receivable from Access Financial Solutions - -
Other assets 1,033 707
--------- ---------
$ 208,061 $ 237,632
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Current liabilities
Short-term debt $ - $ -
Current portion of limited recourse debt from finance
receivables monetizations 40,153 45,279
Accounts payable - -
Accrued expenses 361 337
--------- ---------
Total current liabilities 40,514 45,616
Long-term debt, less current portion - -
Limited recourse debt from finance receivables
monetizations, less current portion 113,388 119,661
Payable to JLG Industries, Inc. 17,411 35,792
Accrued post-retirement benefits - -
Other long-term liabilities - -
Provisions for contingencies - -
Shareholders' equity
Capital stock:
Authorized shares: 100,000 at $.20 par value
Issued and outstanding shares: 43,416 shares;
fiscal 2003 - 43,367 shares 30,000 30,000
Additional paid-in capital - -
Retained earnings 6,748 6,563
Unearned compensation - -
Accumulated other comprehensive loss - -
--------- ---------
Total shareholders' equity 36,748 36,563
--------- ---------
$ 208,061 $ 237,632
========= =========
JLG Industries, Inc. - Page 14
JLG INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
CONSOLIDATED EQUIPMENT OPERATIONS
JLG INDUSTRIES, INC. AND JLG INDUSTRIES, INC. WITH ACCESS
CONSOLIDATED SUBSIDIARIES FINANCIAL SOLUTIONS ON THE EQUITY BASIS
------------------------------ ---------------------------------------
THREE MONTHS ENDED OCTOBER 31, THREE MONTHS ENDED OCTOBER 31,
2003 2002 2003 2002
---- ---- ---- ----
Operations
Net income $ 277 $ 329 $ 277 $ 329
Adjustments to reconcile net income to
cash flow from operating activities:
(Gain) loss on sale of property, plant and equipment 293 3 293 3
(Gain) loss on sale of equipment held for rental 1,320 (697) 1,320 (697)
Non-cash charges and credits:
Depreciation and amortization 6,486 5,268 6,332 5,062
Other 3,171 2,599 3,263 2,072
Changes in selected working capital items:
Accounts receivable 2,409 27,274 (19,915) 31,407
Inventories 5,900 (12,266) 5,900 (12,266)
Accounts payable (34,954) (33,010) (34,954) (33,010)
Other operating assets and liabilities 44 (9,692) 20 (9,407)
Changes in finance receivables 1,055 (27,352) - -
Changes in pledged finance receivables (15,452) (2,395) - -
Changes in other assets and liabilities (3,899) (3,592) (3,573) (2,694)
--------- --------- --------- ---------
Cash flow from operating activities (33,350) (53,531) (41,037) (19,201)
Investments
Purchases of property, plant and equipment (3,811) (1,650) (3,811) (1,650)
Proceeds from the sale of property, plant and equipment 89 3 89 3
Purchases of equipment held for rental (2,209) (3,624) (2,100) (3,615)
Proceeds from the sale of equipment held for rental 1,141 2,505 1,141 2,505
Cash portion of OmniQuip acquisition (95,371) - (95,371) -
Investment in income of Access Financial Solutions - - (185) (747)
Other (46) (57) (46) (57)
--------- --------- --------- ---------
Cash flow from investing activities (100,207) (2,823) (100,283) (3,561)
Financing
Net increase in short-term debt 594 11,024 594 11,024
Issuance of long-term debt 22,000 93,000 22,000 93,000
Repayment of long-term debt (22,086) (43,202) (22,086) (43,202)
Issuance of limited recourse debt 10,871 - - -
Repayment of limited recourse debt (253) - - -
Change in receivable from Access Financial Solutions - - 18,381 (33,592)
Change in payable to JLG Industries, Inc. - - - -
Payment of dividends (216) (214) (216) (214)
Exercise of stock options and issuance
of restricted awards 485 275 485 275
--------- --------- --------- ---------
Cash flow from financing activities 11,395 60,883 19,158 27,291
Currency Adjustments
Effect of exchange rate changes on cash 641 (553) 641 (553)
Cash
Net change in cash and cash equivalents (121,521) 3,976 (121,521) 3,976
Beginning balance 132,809 6,205 132,809 6,205
--------- --------- --------- ---------
Ending balance $ 11,288 $ 10,181 $ 11,288 $ 10,181
========= ========= ========= =========
FINANCIAL SERVICES
ACCESS FINANCIAL SOLUTIONS
------------------------------
THREE MONTHS ENDED OCTOBER 31,
2003 2002
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Operations
Net income $ 185 $ 747
Adjustments to reconcile net income to
cash flow from operating activities:
(Gain) loss on sale of property, plant and equipment - -
(Gain) loss on sale of equipment held for rental - -
Non-cash charges and credits:
Depreciation and amortization 154 206
Other (92) 527
Changes in selected working capital items:
Accounts receivable 22,324 (4,133)
Inventories - -
Accounts payable - -
Other operating assets and liabilities 24 (285)
Changes in finance receivables 1,055 (27,352)
Changes in pledged finance receivables (15,452) (2,395)
Changes in other assets and liabilities (326) (898)
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Cash flow from operating activities 7,872 (33,583)
Investments
Purchases of property, plant and equipment - -
Proceeds from the sale of property, plant and equipment - -
Purchases of equipment held for rental (109) (9)
Proceeds from the sale of equipment held for rental - -
Cash portion of OmniQuip acquisition - -
Investment in income of Access Financial Solutions - -
Other - -
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Cash flow from investing activities (109) (9)
Financing
Net increase in short-term debt - -
Issuance of long-term debt - -
Repayment of long-term debt - -
Issuance of limited recourse debt 10,871 -
Repayment of limited recourse debt (253) -
Change in receivable from Access Financial Solutions
Change in payable to JLG Industries, Inc. (18,381) 33,592
Payment of dividends - -
Exercise of stock options and issuance
of restricted awards - -
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Cash flow from financing activities (7,763) 33,592
Currency Adjustments
Effect of exchange rate changes on cash - -
Cash
Net change in cash and cash equivalents - -
Beginning balance - -
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Ending balance $ - $ -
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