Jlg (NYSE:JLG)
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JLG Industries, Inc. (NYSE:JLG) today announced record
consolidated financial results for the fiscal fourth-quarter and
full-year ended July 31, 2006.
Financial highlights for the periods included:
-- Revenue growth of 21 percent and $48 million of net income
earned during the fourth quarter
-- Revenue growth of 32 percent and earnings improvement of 161
percent for fiscal year 2006
-- Continued strong cash flow from operations funding growth
-- Strong demand continued for access products in construction
markets
"Along with achieving new records for both quarterly and full-year
revenues and earnings, we achieved other significant milestones in
2006," stated Bill Lasky, Chairman of the Board, President and Chief
Executive Officer. "We completed our manufacturing realignment and
capacity expansion in preparation for the Caterpillar alliance and a
projected increase in demand for JLG access equipment. Shipments of
Caterpillar-branded telehandlers to European dealers began in late
July and we will begin shipping to North American dealers in November
under our exclusive 20-year private label alliance agreement. Despite
some economic uncertainty and reduced residential construction
activity, non-residential construction projections continue to be
robust into calendar 2007. Combined with increased international
activity and the new Caterpillar volume, this will continue to drive
demand for JLG access products."
Fourth-Quarter 2006 Results
During the fourth quarter, revenues were $688 million, compared to
$570 million during the same period last year. This increase of 21
percent was primarily due to sustained strong demand for access
equipment as new machine revenues rose 25 percent. Earnings for the
quarter totaled $48 million, or 45 cents per share, compared to $36
million, or 35 cents per share, during the fourth quarter of 2005.
Operating income was $78 million, or 11.4 percent of sales, compared
to $60 million, or 10.5 percent, during the same period last year.
Full-Year 2006 Results
Consolidated revenues were $2.3 billion, a 32 percent increase
when compared to $1.7 billion in 2005. Net income was $149 million, or
$1.40 per share, compared to $57 million, or 60 cents per share last
year. The 2006 results include a one time pre-tax gain of $14.6
million ($8.8 million net of tax), or 8 cents per share, from the sale
of the Gradall excavator business during the third quarter and $1.9
million ($1.2 million net of tax), or 1 cent per share of charges
associated with the early extinguishment of debt. The 2005 results
include $6.5 million ($4.0 million net of tax) or 4 cents per share of
charges associated with the early extinguishment of debt. Operating
income was $263 million, or 11.5 percent of revenues in 2006, compared
to $120 million, or 6.9 percent, in fiscal 2005.
Cash and cash equivalents were $328 million at July 31, 2006
compared to $224 million a year ago. Cash flow from operations was
$119 million.
Fiscal-Year 2007 Outlook
"Demand for our products remained strong in the fourth quarter,
continuing the pattern we have seen throughout fiscal 2006," said Jim
Woodward, Executive Vice President and Chief Financial Officer. "As a
result, our earnings quality improved significantly despite the
additional expenses associated with our Caterpillar alliance
preparations and other strategic initiatives. Excluding the gain on
the sale of the excavator business, the fiscal 2006 operating margin
improved to 10.9 percent compared to 6.9 percent in 2005. On a full
year basis, we achieved our 23-percent target for incremental
operating margin."
"We anticipate continued strong demand in fiscal 2007 and project
revenue growth to be 20 to 25 percent greater than our record fiscal
2006 level of $2.3 billion. With a substantial portion of our
manufacturing realignment and capacity expansion behind us, and the
start up of shipments under the new Caterpillar alliance, we expect
fiscal 2007 earnings per share to be in a range of $1.72 to $1.82."
Quarterly Conference Call Scheduled for 2 p.m. Today
Management's detailed analysis of the Company's quarterly results
will be provided during a conference call this afternoon at 2 p.m.
Eastern Time. The call and accompanying slide presentation can be
accessed via JLG's website at www.jlg.com, or by dialling (800)
901-5217 in the U.S. and Canada, or (617) 786-2964 from international
locations. Callers must reference participant password #14994468.
Please dial in 10 minutes prior to the start of the call. A replay of
the call will be available on the website later in the day.
About JLG Industries, Inc.
JLG Industries, Inc. is the world's leading producer of access
equipment (aerial work platforms and telehandlers). The Company's
diverse product portfolio encompasses leading brands such as JLG(R)
aerial work platforms; JLG, SkyTrak(R), Lull(R) and Gradall(R)
telehandlers; 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 approach
that includes a highly trained sales force and utilizes a broad range
of marketing techniques, integrated supply programs and a network of
distributors in the industrial, commercial, institutional and
construction markets. In addition, JLG offers world-class after-sales
service and support for its customers. JLG's manufacturing facilities
are located in the United States, Belgium, and France, with sales and
service operations on six continents.
Forward-Looking Statements
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) risks associated with acquisitions; (iv) credit
risks from our financing of customer purchases; (v) risks arising from
dependence on third-party suppliers; 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-Q for the quarter ended April
30, 2006.
In this release and accompanying tables, we refer to various
non-GAAP measures including adjustments to reported GAAP earnings, AFS
operations as if accounted for under the equity method, as well as our
disclosure of free cash flow, EBITDA and net debt. We believe that
these measures are useful to investors in analyzing the Company's
operating performance. For more information, visit www.jlg.com.
NOTE: Information contained on our website is not incorporated by
reference into this press release.
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JLG INDUSTRIES, INC.
FINANCIAL DASHBOARD
(in thousands, except per share data and as otherwise identified)
Fiscal Year Quarter Ended
Ended July April January
July 31, 31, 30, 29,
2006 2006 2006 2006
----------- --------- --------- ---------
REVENUES AND PROFITABILITY
Revenues $2,289,396 $687,632 $629,615 $494,426
Gross profit margin 19.4% 19.5% 18.8% 19.4%
EBITDA 297,930 88,234 90,952 59,400
----------------------------
Trailing twelve month EBITDA 297,930 297,930 280,799 243,633
----------------------------
Trailing twelve month EBITDA
margin 13.0% 13.0% 12.9% 11.9%
----------------------------
Operating income (loss) 262,984 78,194 84,690 49,734
Operating profit (loss)
margin 11.5% 11.4% 13.5% 10.1%
Net income (loss) margin 6.5% 7.0% 7.3% 5.5%
Reported earnings (loss) per
diluted share (1) $1.40 $0.45 $0.43 $0.26
IMPACT OF SELECTED ITEMS
ON: (2)
income (expense)
PRE-TAX INCOME
Strategic
Initiatives/Integration
(in both Cost of sales
(COS), Selling &
administrative and product
development (SA&PD)) $(22,019) $(9,848) $(7,951) $(3,375)
Restructuring and
repositioning charges (in
both COS, Restructuring) - - - -
Net expenses on early
extinguishment of debt (1,939) (492) (873) (574)
Currency effects (in
Miscellaneous-net) (2,767) 21 (2,847) (672)
Bad debt charges (in SA&PD) (6,368) (1,289) (234) (1,336)
Inventory charges (in COS) (2,074) (141) 106 (551)
Early vesting incentives
(in both COS, SA&PD) - - - -
Other Incentive pay (in
both COS, SA&PD) (25,938) (9,938) (6,266) (4,888)
Restatement expenses (in
SA&PD) - - - -
Estimated net unrecovered
steel cost (in COS) (3) (6,005) - - -
Gain related to sale of
Gradall excavator product
line 14,572 - 14,572 -
NET INCOME
Strategic
Initiatives/Integration
(in both COS and SA&PD) (13,581) (6,247) (4,789) (2,146)
Restructuring and
repositioning charges (in
both COS, Restructuring) - - - -
Net expenses on early
extinguishment of debt (1,196) (312) (526) (365)
Currency effects (in
Miscellaneous-net) (1,707) 13 (1,715) (427)
Bad debt charges (in SA&PD) (3,928) (818) (141) (850)
Inventory charges (in COS) (1,279) (89) 64 (350)
Early vesting incentives
(in both COS, SA&PD) - - - -
Other Incentive pay (in
both COS, SA&PD) (15,999) (6,304) (3,774) (3,109)
Restatement expenses (in
SA&PD) - - - -
Estimated net unrecovered
steel cost (in COS) (3) (3,704) - - -
Gain related to sale of
Gradall excavator product
line 8,988 - 8,777 -
EARNINGS PER SHARE (1)
Strategic
Initiatives/Integration
(in both COS and SA&PD) (0.13) (0.06) (0.04) (0.02)
Restructuring and
repositioning charges (in
both COS, Restructuring) - - - -
Net expenses on early
extinguishment of debt (0.01) - - -
Currency effects (in
Miscellaneous-net) (0.02) - (0.02) -
Bad debt charges (in SA&PD) (0.04) (0.01) - (0.01)
Inventory charges (in COS) (0.01) - - -
Early vesting incentives
(in both COS, SA&PD) - - - -
Other Incentive pay (in
both COS, SA&PD) (0.15) (0.06) (0.04) (0.03)
Restatement expenses (in
SA&PD) - - - -
Estimated net unrecovered
steel cost (in COS) (3) (0.03) - - -
Gain related to sale of
Gradall excavator product
line 0.08 - 0.08 -
BALANCE SHEET & LIQUIDITY
MEASURES
Cash & cash equivalents $328,096 $328,096 $304,895 $183,344
Trade accounts and finance
receivables, net 445,631 445,631 393,966 379,813
Inventories 212,864 212,864 216,901 227,957
Total balance sheet debt 239,581 239,581 252,047 273,721
Limited recourse debt from
finance receivables
monetizations 23,719 23,719 28,516 45,318
Net debt (4) (112,234) (112,234) (81,364) 45,059
----------------------------
Net debt (4) to total
capitalization - - - 7%
----------------------------
Maximum loss exposure under
loss pool agreements
related to finance
receivable monetizations 8,818 8,818 8,818 11,346
Equity 675,432 675,432 625,736 566,870
Working capital 607,460 607,460 575,593 523,417
Depreciation and
amortization 28,551 6,410 7,701 7,907
Capital expenditures, net of
retirements 32,241 15,837 9,622 3,653
Free cash flow (5) 114,330 30,870 126,423 (53,050)
----------------------------
FINANCIAL RATIOS
Days sales outstanding 51.2 51.2 46.8 62.3
Days payables outstanding 44.2 44.2 45.2 40.6
Inventory turnover
(annualized) 7.6 7.6 7.5 7.6
Quarter Fiscal Quarter
Ended Year Ended
October Ended July May
30, July 31, 31, 1,
2005 2005 2005 2005
--------- ----------- --------- ---------
REVENUES AND PROFITABILITY
Revenues $477,723 $1,735,030 $569,579 $505,356
Gross profit margin 19.9% 16.6% 19.3% 19.4%
EBITDA 59,344 154,185 71,103 53,786
----------------------------
Trailing twelve month EBITDA 211,344 154,185 154,185 121,445
----------------------------
Trailing twelve month EBITDA
margin 11.1% 8.9% 8.9% 7.6%
----------------------------
Operating income (loss) 50,366 120,261 59,722 51,267
Operating profit (loss)
margin 10.5% 6.9% 10.5% 10.1%
Net income (loss) margin 5.8% 3.3% 6.3% 4.5%
Reported earnings (loss) per
diluted share (1) $0.27 $.60 $.35 $.24
IMPACT OF SELECTED ITEMS
ON: (2)
income (expense)
PRE-TAX INCOME
Strategic
Initiatives/Integration
(in both Cost of sales
(COS), Selling &
administrative and product
development (SA&PD)) $(845) $(6,261) $(2,131) $(1,141)
Restructuring and
repositioning charges (in
both COS, Restructuring) - - - -
Net expenses on early
extinguishment of debt - (6,493) (217) (6,276)
Currency effects (in
Miscellaneous-net) 731 5,826 1,419 (961)
Bad debt charges (in SA&PD) (3,509) (6,977) (2,533) (1,364)
Inventory charges (in COS) (1,488) (4,423) (1,244) (1,279)
Early vesting incentives
(in both COS, SA&PD) - (1,658) - (227)
Other Incentive pay (in
both COS, SA&PD) (4,846) (22,194) (14,810) (7,384)
Restatement expenses (in
SA&PD) - - - -
Estimated net unrecovered
steel cost (in COS) (3) (6,005) (64,753) (8,702) (8,307)
Gain related to sale of
Gradall excavator product
line - - - -
NET INCOME
Strategic
Initiatives/Integration
(in both COS and SA&PD) (503) (3,846) (1,325) (687)
Restructuring and
repositioning charges (in
both COS, Restructuring) - - - -
Net expenses on early
extinguishment of debt - (3,988) (135) (3,778)
Currency effects (in
Miscellaneous-net) 435 3,578 882 (579)
Bad debt charges (in SA&PD) (2,088) (4,285) (1,575) (821)
Inventory charges (in COS) (885) (2,717) (774) (770)
Early vesting incentives
(in both COS, SA&PD) - (1,018) - (137)
Other Incentive pay (in
both COS, SA&PD) (2,883) (13,632) (9,209) (4,445)
Restatement expenses (in
SA&PD) - - - -
Estimated net unrecovered
steel cost (in COS) (3) (3,573) (39,771) (5,411) (5,001)
Gain related to sale of
Gradall excavator product
line - - - -
EARNINGS PER SHARE (1)
Strategic
Initiatives/Integration
(in both COS and SA&PD) - (0.04) (0.01) (0.01)
Restructuring and
repositioning charges (in
both COS, Restructuring) - - - -
Net expenses on early
extinguishment of debt - (0.04) - (0.04)
Currency effects (in
Miscellaneous-net) - 0.04 0.01 (0.01)
Bad debt charges (in SA&PD) (0.02) (0.04) (0.02) (0.01)
Inventory charges (in COS) (0.01) (0.03) (0.01) (0.01)
Early vesting incentives
(in both COS, SA&PD) - (0.01) - -
Other Incentive pay (in
both COS, SA&PD) (0.03) (0.14) (0.09) (0.05)
Restatement expenses (in
SA&PD) - - - -
Estimated net unrecovered
steel cost (in COS) (3) (0.03) (0.42) (0.05) (0.05)
Gain related to sale of
Gradall excavator product
line - - - -
BALANCE SHEET & LIQUIDITY
MEASURES
Cash & cash equivalents $230,947 $223,597 $223,597 $172,480
Trade accounts and finance
receivables, net 379,393 419,866 419,866 377,190
Inventories 218,881 169,097 169,097 185,370
Total balance sheet debt 278,877 289,351 289,351 299,075
Limited recourse debt from
finance receivables
monetizations 55,921 63,658 63,658 70,586
Net debt (4) (7,991) 2,096 2,096 59,248
----------------------------
Net debt (4) to total
capitalization - - - 12%
----------------------------
Maximum loss exposure under
loss pool agreements
related to finance
receivable monetizations 11,855 22,160 22,160 22,168
Equity 507,140 478,592 478,592 436,238
Working capital 505,787 489,187 489,187 451,660
Depreciation and
amortization 6,533 28,899 7,365 7,488
Capital expenditures, net of
retirements 3,129 13,435 8,282 490
Free cash flow (5) 10,087 267,457 57,152 226,844
----------------------------
FINANCIAL RATIOS
Days sales outstanding 62.7 57.1 57.1 55.4
Days payables outstanding 46.4 50.5 50.5 55.7
Inventory turnover
(annualized) 7.8 7.6 7.6 6.9
Quarter Ended Fiscal Year
January October Ended
30, 31, July 31,
2005 2004 2004
--------- --------- -----------
REVENUES AND PROFITABILITY
Revenues $353,434 $306,661 $1,193,962
Gross profit margin 15.3% 8.4% 18.9%
EBITDA 27,111 2,185 105,660
--------------------------------------
Trailing twelve month EBITDA 97,995 90,653 105,660
--------------------------------------
Trailing twelve month EBITDA margin 7.0% 7.0% 8.8%
--------------------------------------
Operating income (loss) 17,607 (8,335) 75,906
Operating profit (loss) margin 5.0% -2.7% 6.4%
Net income (loss) margin 2.1% -2.8% 2.2%
Reported earnings (loss) per diluted
share (1) $.08 $(.10) $.30
IMPACT OF SELECTED ITEMS ON: (2)
income (expense)
PRE-TAX INCOME
Strategic Initiatives/Integration (in
both Cost of sales (COS), Selling &
administrative and product
development (SA&PD)) $(1,093) $(1,896) $(15,975)
Restructuring and repositioning
charges (in both COS, Restructuring) - - (119)
Net expenses on early extinguishment
of debt - - -
Currency effects (in Miscellaneous-
net) 3,087 2,281 (2,309)
Bad debt charges (in SA&PD) (1,948) (1,132) (11,560)
Inventory charges (in COS) (308) (1,592) (4,519)
Early vesting incentives (in both
COS, SA&PD) (436) (995) (1,771)
Other Incentive pay (in both COS,
SA&PD) - - (16,923)
Restatement expenses (in SA&PD) - - (1,264)
Estimated net unrecovered steel cost
(in COS) (3) (20,980) (26,764) (4,695)
Gain related to sale of Gradall
excavator product line - - -
NET INCOME
Strategic Initiatives/Integration (in
both COS and SA&PD) (692) (1,191) (10,160)
Restructuring and repositioning
charges (in both COS, Restructuring) - - (76)
Net expenses on early extinguishment
of debt - - -
Currency effects (in Miscellaneous-
net) 1,954 1,432 (1,469)
Bad debt charges (in SA&PD) (1,233) (711) (7,352)
Inventory charges (in COS) (195) (1,000) (2,874)
Early vesting incentives (in both
COS, SA&PD) (276) (625) (1,126)
Other Incentive pay (in both COS,
SA&PD) - - (10,763)
Restatement expenses (in SA&PD) - - (804)
Estimated net unrecovered steel cost
(in COS) (3) (13,280) (16,808) (2,986)
Gain related to sale of Gradall
excavator product line - - -
EARNINGS PER SHARE (1)
Strategic Initiatives/Integration (in
both COS and SA&PD) (0.01) (0.01) (0.11)
Restructuring and repositioning
charges (in both COS, Restructuring) - - -
Net expenses on early extinguishment
of debt - - -
Currency effects (in Miscellaneous-
net) 0.02 0.02 (0.02)
Bad debt charges (in SA&PD) (0.01) (0.01) (0.08)
Inventory charges (in COS) - (0.01) (0.03)
Early vesting incentives (in both
COS, SA&PD) - (0.01) (0.01)
Other Incentive pay (in both COS,
SA&PD) - - (0.12)
Restatement expenses (in SA&PD) - - (0.01)
Estimated net unrecovered steel cost
(in COS) (3) (0.15) (0.19) (0.03)
Gain related to sale of Gradall
excavator product line - - -
BALANCE SHEET & LIQUIDITY MEASURES
Cash & cash equivalents $24,305 $66,498 $37,656
Trade accounts and finance
receivables, net 354,350 333,316 400,597
Inventories 182,606 170,731 154,405
Total balance sheet debt 383,534 389,609 423,534
Limited recourse debt from finance
receivables monetizations 77,601 85,733 121,794
Net debt (4) 286,092 242,381 269,553
--------------------------------------
Net debt (4) to total capitalization 50% 47% 49%
--------------------------------------
Maximum loss exposure under loss pool
agreements
related to finance receivable
monetizations 22,168 22,168 22,198
Equity 284,746 276,780 281,270
Working capital 340,786 328,671 340,552
Depreciation and amortization 6,958 7,088 25,681
Capital expenditures, net of
retirements 2,010 2,653 11,978
Free cash flow (5) (43,711) 27,172 (98,450)
--------------------------------------
FINANCIAL RATIOS
Days sales outstanding 83.7 92.0 78.4
Days payables outstanding 46.5 54.6 57.0
Inventory turnover (annualized) 6.4 5.9 5.8
(1) On March 27, 2006, we distributed a two-for-one stock split of our
then outstanding common stock. All share and per share data
included in this Financial Dashboard and the accompanying
consolidated condensed financial statements have been restated to
reflect the stock split.
(2) Net of the quarter and annual effective tax rates. EPS is
calculated by dividing the net income (loss) 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 unrecovered steel cost is an estimate based upon a baseline
average of steel prices per ton for various types of steel in
fiscal 2004 compared to the impact of steel prices incurred for
various types of steel. These estimates include assumptions
regarding the steel content of and sources of our products and
their components. The steel price increases are netted against
steel surcharges invoiced to our customers.
(4) Net debt reflects total balance sheet debt plus off-balance sheet
financing, less cash and limited recourse debt from finance
receivables monetizations.
(5) Free cash flow is defined as cash flow from operating activities,
investing activities, payment of dividends, exercise of stock
options, 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.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share data)
(Quarterly data is unaudited)
Fiscal Year Quarter Ended
Ended
July 31, July 31, April 30, January October
2006 2006 2006 29, 2006 30, 2005
----------- --------- --------- --------- ---------
Revenues
Net sales $2,268,322 $682,789 $624,686 $488,411 $472,436
Financial
products 11,093 2,647 2,216 3,256 2,974
Rentals 9,981 2,196 2,713 2,759 2,313
----------- --------- --------- --------- ---------
2,289,396 687,632 629,615 494,426 477,723
Cost of sales 1,846,371 553,394 511,552 398,566 382,859
----------- --------- --------- --------- ---------
Gross profit 443,025 134,238 118,063 95,860 94,864
Gross profit
margin 19.4% 19.5% 18.8% 19.4% 19.9%
Selling and
administrative
expenses 164,362 45,975 41,025 39,301 38,061
Selling &
administrative
% 7.2% 6.7% 6.5% 7.9% 8.0%
Product
development
expenses 30,251 10,069 6,920 6,825 6,437
Product
development % 1.3% 1.5% 1.1% 1.4% 1.3%
Gain related to
sale of Gradall
excavator
product line (14,572) - (14,572) - -
Restructuring
charges - - - - -
----------- --------- --------- --------- ---------
Income (loss)
from operations 262,984 78,194 84,690 49,734 50,366
Operating profit
(loss) margin 11.5% 11.4% 13.5% 10.1% 10.5%
Other income
(deductions):
Interest
expense (net
of interest
income) (17,710) (2,526) (4,030) (6,688) (4,466)
Miscellaneous,
net (3,166) (195) (3,974) 69 934
----------- --------- --------- --------- ---------
Income (loss)
before taxes 242,108 75,473 76,686 43,115 46,834
Income tax
provision
(benefit) 92,764 27,602 30,499 15,695 18,968
----------- --------- --------- --------- ---------
Net income (loss) $149,344 $47,871 $46,187 $27,420 $27,866
=========== ========= ========= ========= =========
Return on
revenues 6.5% 7.0% 7.3% 5.5% 5.8%
Earnings (loss)
per common share $1.43 $.45 $.44 $.26 $.27
=========== ========= ========= ========= =========
Earnings (loss)
per common share
- assuming
dilution $1.40 $.45 $.43 $.26 $.27
=========== ========= ========= ========= =========
Cash Dividends per
share $.0150 $.0050 $.0050 $.0025 $.0025
=========== ========= ========= ========= =========
Average basic
shares
outstanding 104,294 105,465 105,088 104,042 102,424
=========== ========= ========= ========= =========
Average diluted
shares
outstanding 106,518 107,199 107,232 106,374 105,112
=========== ========= ========= ========= =========
Fiscal Year Quarter Ended
Ended
July 31, July 31, May 1, January October
2005 2005 2005 30, 2005 31, 2004
----------- --------- --------- --------- ---------
Revenues
Net sales $1,713,782 $563,805 $499,899 $347,947 $302,131
Financial
products 11,915 2,826 3,373 3,056 2,660
Rentals 9,333 2,948 2,084 2,431 1,870
----------- --------- --------- --------- ---------
1,735,030 569,579 505,356 353,434 306,661
Cost of sales 1,447,785 459,893 407,464 299,462 280,966
----------- --------- --------- --------- ---------
Gross profit 287,245 109,686 97,892 53,972 25,695
Gross profit
margin 16.6% 19.3% 19.4% 15.3% 8.4%
Selling and
administrative
expenses 142,383 43,927 39,524 30,810 28,122
Selling &
administrative
% 8.2% 7.7% 7.8% 8.7% 9.2%
Product
development
expenses 24,601 6,037 7,101 5,555 5,908
Product
development % 1.4% 1.1% 1.4% 1.6% 1.9%
Gain related to
sale of Gradall
excavator
product line - - - - -
Restructuring
charges - - - - -
----------- --------- --------- --------- ---------
Income (loss)
from operations 120,261 59,722 51,267 17,607 (8,335)
Operating profit
(loss) margin 6.9% 10.5% 10.1% 5.0% -2.7%
Other income
(deductions):
Interest
expense (net
of interest
income) (28,609) (4,905) (7,418) (7,852) (8,434)
Miscellaneous,
net 1,436 2,595 (6,105) 2,076 2,870
----------- --------- --------- --------- ---------
Income (loss)
before taxes 93,088 57,412 37,744 11,831 (13,899)
Income tax
provision
(benefit) 35,915 21,716 15,022 4,347 (5,170)
----------- --------- --------- --------- ---------
Net income (loss) $57,173 $35,696 $22,722 $7,484 $(8,729)
=========== ========= ========= ========= =========
Return on
revenues 3.3% 6.3% 4.5% 2.1% -2.8%
Earnings (loss)
per common share $.61 $.35 $.24 $.09 $(.10)
=========== ========= ========= ========= =========
Earnings (loss)
per common share
- assuming
dilution $.60 $.35 $.24 $.08 $(.10)
=========== ========= ========= ========= =========
Cash Dividends per
share $.0100 $.0025 $.0025 $.0025 $.0025
=========== ========= ========= ========= =========
Average basic
shares
outstanding 93,058 100,722 94,182 87,596 86,554
=========== ========= ========= ========= =========
Average diluted
shares
outstanding 95,586 103,312 96,574 89,976 86,554
=========== ========= ========= ========= =========
Fiscal Year
Ended
July 31,
2004
------------
Revenues
Net sales $1,170,186
Financial
products 15,203
Rentals 8,573
------------
1,193,962
Cost of sales 968,562
------------
Gross profit 225,400
Gross profit
margin 18.9%
Selling and
administrative
expenses 128,465
Selling &
administrative
% 10.8%
Product
development
expenses 21,002
Product
development % 1.8%
Gain related to
sale of Gradall
excavator
product line -
Restructuring
charges 27
------------
Income (loss)
from operations 75,906
Operating profit
(loss) margin 6.4%
Other income
(deductions):
Interest expense
(net of
interest
income) (35,397)
Miscellaneous,
net 1,372
------------
Income (loss)
before taxes 41,881
Income tax
provision
(benefit) 15,232
------------
Net income (loss) $26,649
============
Return on
revenues 2.2%
Earnings (loss)
per common share $.31
============
Earnings (loss)
per common share
- assuming
dilution $.30
============
Cash Dividends per
share $.0100
============
Average basic
shares
outstanding 85,720
============
Average diluted
shares
outstanding 88,064
============
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
(Quarterly data is unaudited)
July 31, April 30, January 29, October 30,
2006 2006 2006 2005
----------- ----------- ----------- -----------
ASSETS
---------------
Current assets
Cash and cash
equivalents $328,096 $304,895 $183,344 $230,947
Trade accounts
and finance
receivables,
net 445,631 393,966 379,813 379,393
Inventories 212,864 216,901 227,957 218,881
Assets held
for sale - - 49,941 -
Other current
assets 47,613 26,595 42,715 48,417
----------- ----------- ----------- -----------
Total current
assets 1,034,204 942,357 883,770 877,638
Property, plant
and equipment,
net 98,345 87,447 82,746 84,879
Equipment held
for rental,
net 21,477 21,934 36,684 38,401
Finance
receivables,
less current
portion 29,193 29,472 26,500 29,688
Pledged finance
receivables,
less current
portion 7,668 11,923 18,623 26,589
Goodwill 57,388 60,513 60,419 61,598
Intangible
assets, net 74,142 74,557 75,371 31,795
Other assets 74,872 72,197 68,379 64,675
----------- ----------- ----------- -----------
$1,397,289 $1,300,400 $1,252,492 $1,215,263
=========== =========== =========== ===========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Current
liabilities
Short-term
debt and
current
portion of
long-term
debt $8,484 $8,447 $6,515 $1,486
Current
portion of
limited
recourse debt
from finance
receivables
monetizations 16,001 16,531 26,558 29,045
Accounts
payable 233,746 221,342 187,591 200,281
Accrued
expenses 168,513 120,444 139,689 141,039
----------- ----------- ----------- -----------
Total current
liabilities 426,744 366,764 360,353 371,851
Long-term debt,
less current
portion 207,378 215,084 221,888 221,470
Limited
recourse debt
from finance
receivables
monetizations,
less current
portion 7,718 11,985 18,760 26,876
Accrued post-
retirement
benefits 25,748 25,193 31,797 31,455
Other long-term
liabilities 19,984 23,152 22,117 28,464
Provisions for
contingencies 34,285 32,486 30,707 28,007
Shareholders'
equity
Capital stock:
Authorized
shares:
200,000 at
$.20 par
value
Issued
shares:
106,751;
fiscal 2005
- 103,290;
fiscal 2004
- 87,806 21,350 21,268 21,100 20,666
Additional
paid-in
capital 209,290 206,710 193,021 165,119
Retained
earnings 458,276 410,937 365,280 338,124
Unearned
compensation - - - -
Accumulated
other
comprehensive
loss (13,484) (13,179) (12,531) (16,769)
----------- ----------- ----------- -----------
Total share-
holders'
equity 675,432 625,736 566,870 507,140
----------- ----------- ----------- -----------
$1,397,289 $1,300,400 $1,252,492 $1,215,263
=========== =========== =========== ===========
July 31, May 1, January October July 31,
2005 2005 30, 2005 31, 2004 2004
----------- ----------- --------- --------- -----------
ASSETS
---------------
Current assets
Cash and cash
equivalents $223,597 $172,480 $24,305 $66,498 $37,656
Trade accounts
and finance
receivables,
net 419,866 377,190 354,350 333,316 400,597
Inventories 169,097 185,370 182,606 170,731 154,405
Assets held
for sale - 3,500 4,300 - -
Other current
assets 56,739 55,253 43,166 45,739 41,058
----------- ----------- --------- --------- -----------
Total current
assets 869,299 793,793 608,727 616,284 633,716
Property, plant
and equipment,
net 85,855 78,270 82,387 89,443 91,504
Equipment held
for rental,
net 22,570 27,220 23,163 26,842 21,190
Finance
receivables,
less current
portion 30,354 31,836 36,992 39,002 33,747
Pledged finance
receivables,
less current
portion 33,649 40,459 50,372 56,413 86,559
Goodwill 61,641 63,134 63,165 63,017 62,885
Intangible
assets, net 32,086 33,465 33,848 34,590 35,240
Other assets 68,143 56,848 80,420 66,991 62,603
----------- ----------- --------- --------- -----------
$1,203,597 $1,125,025 $979,074 $992,582 $1,027,444
=========== =========== ========= ========= ===========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Current
liabilities
Short-term
debt and
current
portion of
long-term
debt $1,496 $1,552 $3,744 $1,788 $1,729
Current
portion of
limited
recourse debt
from finance
receivables
monetizations 29,642 29,708 26,660 26,725 32,585
Accounts
payable 200,323 194,588 139,742 150,600 139,990
Accrued
expenses 148,651 116,285 97,795 108,500 118,860
----------- ----------- --------- --------- -----------
Total current
liabilities 380,112 342,133 267,941 287,613 293,164
Long-term debt,
less current
portion 224,197 226,937 302,189 302,088 300,011
Limited
recourse debt
from finance
receivables
monetizations,
less current
portion 34,016 40,878 50,941 59,008 89,209
Accrued post-
retirement
benefits 31,113 30,801 30,423 30,211 29,666
Other long-term
liabilities 27,233 24,116 23,536 21,362 20,542
Provisions for
contingencies 28,334 23,922 19,298 15,520 13,582
Shareholders'
equity
Capital stock:
Authorized
shares:
200,000 at
$.20 par
value
Issued
shares:
106,751;
fiscal 2005
- 103,290;
fiscal 2004
- 87,806 20,658 20,390 17,880 17,814 17,562
Additional
paid-in
capital 170,367 153,779 28,147 26,204 20,790
Retained
earnings 310,516 275,077 252,579 245,319 254,268
Unearned
compensation (7,397) (2,642) (3,433) (4,019) (5,333)
Accumulated
other
comprehensive
loss (15,552) (10,366) (10,427) (8,538) (6,017)
----------- ----------- --------- --------- -----------
Total share-
holders'
equity 478,592 436,238 284,746 276,780 281,270
----------- ----------- --------- --------- -----------
$1,203,597 $1,125,025 $979,074 $992,582 $1,027,444
=========== =========== ========= ========= ===========
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(in thousands)
(Quarterly data is unaudited)
Fiscal
Year
Ended Quarter Ended
July 31, July 31, April 30, Jan. 29, Oct. 30,
2006 2006 2006 2006 2005
--------- --------- --------- --------- ---------
OPERATIONS
Net income (loss) $149,344 $47,871 $46,187 $27,420 $27,866
Adjustments to
reconcile net
income (loss) to
cash flow from
operating
activities:
Gain related to
sale of Gradall
excavator product
line (14,572) - (14,572) - -
(Gain) loss on
sale of property,
plant and
equipment (383) (359) 5 57 (86)
Gain on sale of
equipment held
for rental (13,745) (506) (7,555) (5,612) (72)
Non-cash charges
and credits:
Depreciation and
amortization 28,551 6,410 7,701 7,907 6,533
Other 24,377 971 11,238 5,137 7,031
Changes in
selected working
capital items:
Accounts
receivable (45,350) (58,188) (13,080) (13,268) 39,186
Inventories (64,712) 5,470 10,368 (30,523) (50,027)
Accounts payable 42,312 12,405 35,610 (5,669) (34)
Other operating
assets and
liabilities 33,484 29,722 9,160 (6,722) 1,324
Changes in finance
receivables (2,315) 3,394 (3,645) (3,415) 1,351
Changes in pledged
finance
receivables (627) (65) (133) (233) (196)
Changes in other
assets and
liabilities (17,613) 1,035 (11,506) (3,720) (3,422)
--------- --------- --------- --------- ---------
Cash flow from
operating
activities 118,751 48,160 69,778 (28,641) 29,454
INVESTMENTS
Purchases of
property, plant
and equipment (32,597) (16,065) (9,643) (3,744) (3,145)
Proceeds from the
sale of property,
plant and
equipment 739 587 16 34 102
Purchases of
equipment held for
rental (43,527) (4,246) (11,890) (9,270) (18,121)
Proceeds from the
sale of equipment
held for rental 50,552 3,413 32,396 14,305 438
Proceeds from the
sale of Gradall
excavator product
line 32,992 576 32,416 - -
Cash portion of
acquisitions (47,093) - (58) (47,035) -
Other 150 (204) 422 (40) (28)
--------- --------- --------- --------- ---------
Cash flow used for
investing
activities (38,784) (15,939) 43,659 (45,750) (20,754)
FINANCING
Net issuance
(repayment) of
short-term debt 52 14 26 23 (11)
Issuance of long-
term debt 10,000 - 10,000 - -
Repayment of long-
term debt (21,455) (8,584) (12,678) (96) (97)
Issuance of limited
recourse debt - - - - -
Repayment of
limited recourse
debt - - - - -
Payment of
dividends (1,584) (532) (530) (264) (258)
Net proceeds from
issuance of common
stock - - - - -
Cash proceeds
received from the
exercise of stock
options 18,494 493 4,510 13,327 164
Excess tax benefits
from stock-based
compensation 20,384 - 7,323 13,017 44
--------- --------- --------- --------- ---------
Cash flow from
financing
activities 25,891 (8,609) 8,651 26,007 (158)
CURRENCY ADJUSTMENTS
Effect of exchange
rate changes on
cash (1,359) (411) (537) 781 (1,192)
CASH AND CASH
EQUIVALENTS
Net change in cash
and cash
equivalents 104,499 23,201 121,551 (47,603) 7,350
Beginning balance 223,597 304,895 183,344 230,947 223,597
--------- --------- --------- --------- ---------
Ending balance $328,096 $328,096 $304,895 $183,344 $230,947
========= ========= ========= ========= =========
Fiscal
Year
Ended Quarter Ended
July 31, July 31, May 1, Jan. 30, Oct. 31,
2005 2005 2005 2005 2004
--------- --------- --------- --------- ---------
OPERATIONS
Net income (loss) $57,173 $35,696 $22,722 $7,484 $(8,729)
Adjustments to
reconcile net
income (loss) to
cash flow from
operating
activities:
Gain related to
sale of Gradall
excavator product
line - - - - -
(Gain) loss on
sale of property,
plant and
equipment 948 828 (22) (19) 161
Gain on sale of
equipment held
for rental (11,711) (3,791) (1,286) (5,334) (1,300)
Non-cash charges
and credits:
Depreciation and
amortization 28,899 7,365 7,488 6,958 7,088
Other 6,986 (5,953) 6,225 3,965 2,749
Changes in
selected working
capital items:
Accounts
receivable (25,948) (42,151) (16,355) (29,659) 62,217
Inventories (15,268) 16,321 (3,463) (11,758) (16,368)
Accounts payable 60,423 5,868 54,834 (10,833) 10,554
Other operating
assets and
liabilities 30,623 38,335 7,188 (2,340) (12,560)
Changes in finance
receivables 1,877 1,459 1,944 6,970 (8,496)
Changes in pledged
finance
receivables 36 (190) (248) (917) 1,391
Changes in other
assets and
liabilities 8,374 495 21,946 (12,920) (1,147)
--------- --------- --------- --------- ---------
Cash flow from
operating
activities 142,412 54,282 100,973 (48,403) 35,560
INVESTMENTS
Purchases of
property, plant
and equipment (15,443) (9,134) (1,342) (2,072) (2,895)
Proceeds from the
sale of property,
plant and
equipment 1,060 24 874 81 81
Purchases of
equipment held for
rental (31,249) (5,590) (6,719) (8,851) (10,089)
Proceeds from the
sale of equipment
held for rental 35,065 11,775 3,103 16,037 4,150
Proceeds from the
sale of Gradall
excavator product
line - - - - -
Cash portion of
acquisitions (105) - - (105) -
Other 366 (35) 503 (56) (46)
--------- --------- --------- --------- ---------
Cash flow used for
investing
activities (10,306) (2,960) (3,581) 5,034 (8,799)
FINANCING
Net issuance
(repayment) of
short-term debt (6) (58) (1,961) 1,955 58
Issuance of long-
term debt 156,018 (38) 26,002 45,038 85,016
Repayment of long-
term debt (232,666) (3,060) (99,374) (45,140) (85,092)
Issuance of limited
recourse debt - - - - -
Repayment of
limited recourse
debt - - - - -
Payment of
dividends (925) (257) (224) (224) (220)
Net proceeds from
issuance of common
stock 119,421 (113) 119,534 - -
Cash proceeds
received from the
exercise of stock
options 19,826 6,750 6,714 1,276 5,086
Excess tax benefits
from stock-based
compensation - - - - -
--------- --------- --------- --------- ---------
Cash flow from
financing
activities 61,668 3,224 50,691 2,905 4,848
CURRENCY ADJUSTMENTS
Effect of exchange
rate changes on
cash (7,833) (3,429) 92 (1,729) (2,767)
CASH AND CASH
EQUIVALENTS
Net change in cash
and cash
equivalents 185,941 51,117 148,175 (42,193) 28,842
Beginning balance 37,656 172,480 24,305 66,498 37,656
--------- --------- --------- --------- ---------
Ending balance $223,597 $223,597 $172,480 $24,305 $66,498
========= ========= ========= ========= =========
Fiscal
Year
Ended
July 31,
2004
---------
OPERATIONS
Net income (loss) $26,649
Adjustments to
reconcile net
income (loss) to
cash flow from
operating
activities:
Gain related to
sale of Gradall
excavator product
line -
(Gain) loss on
sale of property,
plant and
equipment 319
Gain on sale of
equipment held
for rental (12,451)
Non-cash charges
and credits:
Depreciation and
amortization 25,681
Other 17,006
Changes in
selected working
capital items:
Accounts
receivable (66,296)
Inventories 9,188
Accounts payable 33,207
Other operating
assets and
liabilities 13,506
Changes in finance
receivables (6,112)
Changes in pledged
finance
receivables (14,866)
Changes in other
assets and
liabilities (11,090)
---------
Cash flow from
operating
activities 14,741
INVESTMENTS
Purchases of
property, plant
and equipment (12,387)
Proceeds from the
sale of property,
plant and
equipment 90
Purchases of
equipment held for
rental (26,689)
Proceeds from the
sale of equipment
held for rental 33,269
Proceeds from the
sale of Gradall
excavator product
line -
Cash portion of
acquisitions (109,557)
Other 333
---------
Cash flow used for
investing
activities (114,941)
FINANCING
Net issuance
(repayment) of
short-term debt 27
Issuance of long-
term debt 351,999
Repayment of long-
term debt (362,506)
Issuance of limited
recourse debt 13,979
Repayment of
limited recourse
debt (253)
Payment of
dividends (871)
Net proceeds from
issuance of common
stock -
Cash proceeds
received from the
exercise of stock
options 2,414
Excess tax benefits
from stock-based
compensation -
---------
Cash flow from
financing
activities 4,789
CURRENCY ADJUSTMENTS
Effect of exchange
rate changes on
cash 258
CASH AND CASH
EQUIVALENTS
Net change in cash
and cash
equivalents (95,153)
Beginning balance 132,809
---------
Ending balance $37,656
=========
JLG INDUSTRIES, INC.
CONSOLIDATED SELECTED SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
(Quarterly data is unaudited)
Fiscal Year
Ended Quarter Ended
July 31, July 31, April 30, Jan. 29, Oct. 30,
2006 2006 2006 2006 2005
----------- --------- --------- --------- ---------
SEGMENT
INFORMATION
REVENUES:
North American
Distribution $1,704,030 $509,653 $462,772 $369,725 $361,880
European
Distribution 407,143 137,233 124,521 83,062 62,327
Rest of World
Distribution 166,820 37,985 40,051 38,329 50,455
Access Financial
Solutions 11,403 2,761 2,271 3,310 3,061
----------- --------- --------- --------- ---------
$2,289,396 $687,632 $629,615 $494,426 $477,723
=========== ========= ========= ========= =========
SEGMENT PROFIT
(LOSS):
North American
Distribution $254,167 $79,554 $75,997 $47,903 $50,713
European
Distribution 38,969 14,082 16,032 6,659 2,196
Rest of World
Distribution 39,411 7,966 8,304 9,001 14,140
Access Financial
Solutions 4,937 1,544 1,139 1,166 1,088
Corporate
expense (77,585) (25,419) (17,443) (15,891) (18,832)
----------- --------- --------- --------- ---------
Segment profit
(loss) 259,899 77,727 84,029 48,838 49,305
Add: AFS'
interest
expense 3,085 467 661 896 1,061
----------- --------- --------- --------- ---------
Operating Income
(Loss) $262,984 $78,194 $84,690 $49,734 $50,366
=========== ========= ========= ========= =========
PRODUCT GROUP
REVENUES
Aerial work
platforms $1,159,778 $360,367 $320,827 $234,710 $243,874
Telehandlers 776,001 254,546 202,637 160,715 158,103
Excavators 26,798 - 865 16,902 9,031
After-sales
service and
support,
including
parts sales, and
used and
reconditioned
equipment sales 305,745 67,876 100,357 76,084 61,428
Financial products 11,093 2,647 2,216 3,256 2,974
Rentals 9,981 2,196 2,713 2,759 2,313
----------- --------- --------- --------- ---------
$2,289,396 $687,632 $629,615 $494,426 $477,723
=========== ========= ========= ========= =========
GEOGRAPHIC
REVENUES
United States $1,678,674 $500,788 $456,630 $366,343 $354,913
Europe 408,513 138,010 124,621 83,349 62,533
Other
international 202,209 48,834 48,364 44,734 60,277
----------- --------- --------- --------- ---------
$2,289,396 $687,632 $629,615 $494,426 $477,723
=========== ========= ========= ========= =========
Fiscal Year
Ended Quarter Ended
July 31, July 31, May 1, Jan. 30, Oct. 31,
2005 2005 2005 2005 2004
----------- --------- --------- --------- ---------
SEGMENT
INFORMATION
REVENUES:
North American
Distribution $1,329,682 $444,383 $387,442 $258,793 $239,064
European
Distribution 261,602 82,426 85,960 56,631 36,585
Rest of World
Distribution 129,995 38,390 28,506 34,866 28,233
Access Financial
Solutions 13,751 4,380 3,448 3,144 2,779
----------- --------- --------- --------- ---------
$1,735,030 $569,579 $505,356 $353,434 $306,661
=========== ========= ========= ========= =========
SEGMENT PROFIT
(LOSS):
North American
Distribution $114,255 $64,422 $48,275 $12,113 $(10,555)
European
Distribution 21,489 4,564 8,630 5,878 2,417
Rest of World
Distribution 32,475 10,084 7,047 8,218 7,126
Access Financial
Solutions 4,420 2,303 1,211 712 194
Corporate
expense (58,774) (22,854) (15,344) (10,766) (9,810)
----------- --------- --------- --------- ---------
Segment profit
(loss) 113,865 58,519 49,819 16,155 (10,628)
Add: AFS'
interest
expense 6,396 1,203 1,448 1,452 2,293
----------- --------- --------- --------- ---------
Operating Income
(Loss) $120,261 $59,722 $51,267 $17,607 $(8,335)
=========== ========= ========= ========= =========
PRODUCT GROUP
REVENUES
Aerial work
platforms $888,073 $313,962 $278,071 $171,517 $124,523
Telehandlers 511,766 157,948 141,660 92,490 119,668
Excavators 61,562 18,144 17,864 17,213 8,341
After-sales
service and
support,
including
parts sales, and
used and
reconditioned
equipment sales 252,381 73,751 62,304 66,727 49,599
Financial products 11,915 2,826 3,373 3,056 2,660
Rentals 9,333 2,948 2,084 2,431 1,870
----------- --------- --------- --------- ---------
$1,735,030 $569,579 $505,356 $353,434 $306,661
=========== ========= ========= ========= =========
GEOGRAPHIC
REVENUES
United States $1,311,450 $437,066 $379,624 $256,027 $238,733
Europe 264,032 84,126 86,224 56,819 36,863
Other
international 159,548 48,387 39,508 40,588 31,065
----------- --------- --------- --------- ---------
$1,735,030 $569,579 $505,356 $353,434 $306,661
=========== ========= ========= ========= =========
Fiscal Year
Ended
July 31,
2004
-----------
SEGMENT
INFORMATION
REVENUES:
North American
Distribution $930,802
European
Distribution 177,392
Rest of World
Distribution 69,870
Access Financial
Solutions 15,898
-----------
$1,193,962
===========
SEGMENT PROFIT
(LOSS):
North American
Distribution $92,512
European
Distribution 3,765
Rest of World
Distribution 15,293
Access Financial
Solutions 1,695
Corporate
expense (48,274)
-----------
Segment profit
(loss) 64,991
Add: AFS'
interest
expense 10,915
-----------
Operating Income
(Loss) $75,906
===========
PRODUCT GROUP
REVENUES
Aerial work
platforms $562,056
Telehandlers 358,865
Excavators 52,689
After-sales
service and
support,
including
parts sales, and
used and
reconditioned
equipment sales 196,576
Financial products 15,203
Rentals 8,573
-----------
$1,193,962
===========
GEOGRAPHIC
REVENUES
United States $923,696
Europe 178,392
Other
international 91,874
-----------
$1,193,962
===========
JLG INDUSTRIES, INC.
EBITDA
QUARTERLY PERIODS
(in thousands)
July 31, April 30, January 29, October 30, July 31,
2006 2006 (1) 2006 2005 2005
-------- --------- ----------- ----------- --------
Net income (loss) $47,871 $46,187 $27,420 $27,866 $35,696
Interest expense 6,351 6,565 8,378 5,977 6,326
Income tax
provision
(benefit) 27,602 30,499 15,695 18,968 21,716
Depreciation and
amortization 6,410 7,701 7,907 6,533 7,365
-------- --------- ----------- ----------- --------
EBITDA $88,234 $90,952 $59,400 $59,344 $71,103
======== ========= =========== =========== ========
May 1, January 30, October 31, July 31,
2005 2005 2004 2004
-------- ----------- ----------- --------
Net income (loss) $22,722 $7,484 ($8,729) $15,271
Interest expense 8,554 8,322 8,996 9,274
Income tax
provision
(benefit) 15,022 4,347 (5,170) 8,748
Depreciation and
amortization 7,488 6,958 7,088 5,070
-------- ----------- ----------- --------
EBITDA $53,786 $27,111 $2,185 $38,363
======== =========== =========== ========
(1) Includes gain on the sale of the Gradall excavator product line.
We 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 (loss) before interest, taxes and depreciation
and amortization. EBITDA as presented differs from measures of EBITDA
calculated for purposes of financial covenants in our note indentures
and senior credit facilities.
JLG INDUSTRIES, INC.
EBITDA AND EBITDA MARGINS
TRAILING TWELVE MONTH PERIODS
(in thousands)
July 31, April 30, January 29,
2006 (1) 2006 (1) 2006
----------- ----------- -----------
Net income $149,344 $137,169 $113,704
Interest expense 27,271 27,246 29,235
Income tax provision 92,764 86,878 71,401
Depreciation and amortization 28,551 29,506 29,293
----------- ----------- -----------
EBITDA $297,930 $280,799 $243,633
=========== =========== ===========
Revenues $2,289,396 $2,171,343 $2,047,084
=========== =========== ===========
EBITDA Margin 13.0% 12.9% 11.9%
=========== =========== ===========
October 30, July 31, May 1,
2005 2005 2005
----------- ----------- -----------
Net income $93,768 $57,173 $36,748
Interest expense 29,179 32,198 35,146
Income tax provision 60,053 35,915 22,947
Depreciation and amortization 28,344 28,899 26,604
----------- ----------- -----------
EBITDA $211,344 $154,185 $121,445
=========== =========== ===========
Revenues $1,906,092 $1,735,030 $1,590,611
=========== =========== ===========
EBITDA Margin 11.1% 8.9% 7.6%
=========== =========== ===========
January 30, October 31, July 31,
2005 2004 2004
----------- ----------- -----------
Net income $22,713 $17,387 $26,649
Interest expense 35,992 37,218 38,098
Income tax provision 12,815 9,765 15,232
Depreciation and amortization 26,475 26,283 25,681
----------- ----------- -----------
EBITDA $97,995 $90,653 $105,660
=========== =========== ===========
Revenues $1,403,942 $1,287,038 $1,193,962
=========== =========== ===========
EBITDA Margin 7.0% 7.0% 8.8%
=========== =========== ===========
(1) Includes gain on the sale of the Gradall excavator product line.
We 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 from measures of EBITDA
calculated for purposes of financial covenants in our note indentures
and senior credit facilities.
JLG INDUSTRIES, INC.
NET DEBT
(in thousands)
July 31, April 30, January October July 31,
2006 2006 29, 2006 30, 2005 2005
---------- --------- ------------------- ---------
Revolving credit
facilities $- $- $- $- $-
Cash management
facilities - - - - -
$125 million senior
notes 89,545 97,545 109,975 109,975 109,975
$175 million senior
subordinated notes 113,750 113,750 113,750 113,750 113,750
Miscellaneous debt 18,886 19,455 9,678 4,751 4,859
Fair value of
interest rate swaps (8,898) (9,908) (7,799) (8,428) (5,909)
Gain on terminated
interest rate swap 2,579 2,689 2,799 2,908 3,018
---------- --------- --------- --------- ---------
Bank debt and
notes 215,862 223,531 228,403 222,956 225,693
Limited recourse
debt from finance
receivables
monetizations * 23,719 28,516 45,318 55,921 63,658
---------- --------- --------- --------- ---------
Total balance
sheet debt 239,581 252,047 273,721 278,877 289,351
---------- --------- --------- --------- ---------
Net present value of
off-balance sheet
rental fleet lease - - - - -
Net present value of
off-balance sheet
production
equipment leases - - - - -
---------- --------- --------- --------- ---------
Total off-
balance sheet
financing - - - - -
---------- --------- --------- --------- ---------
Total balance
sheet debt and
off-balance
sheet
financing 239,581 252,047 273,721 278,877 289,351
Less: cash and cash
equivalents 328,096 304,895 183,344 230,947 223,597
Less: limited
recourse debt from
finance receivables
monetizations 23,719 28,516 45,318 55,921 63,658
---------- --------- --------- --------- ---------
Net debt ($112,234) $(81,364) $45,059 $(7,991) $2,096
========== ========= ========= ========= =========
Shareholders' Equity $675,432 $625,736 $566,870 $507,140 $478,592
========== ========= ========= ========= =========
Net Debt-to-Net Debt
plus Shareholders'
Equity - - 7% - -
========== ========= ========= ========= =========
Total Balance Sheet
Debt-to-Total
Balance Sheet Debt
plus Shareholders'
Equity 26% 29% 33% 35% 38%
========== ========= ========= ========= =========
* Maximum loss
exposure under loss
pool agreements
related to finance
receivable
monetizations $8,818 $8,818 $11,346 $11,855 $22,160
========== ========= ========= ========= =========
May 1, January October July 31,
2005 30, 2005 31, 2004 2004
---------- ---------- --------- ---------
Revolving credit
facilities $- $- $- $-
Cash management
facilities - 1,944 - -
$125 million senior
notes 112,975 125,000 125,000 125,000
$175 million senior
subordinated notes 113,750 175,000 175,000 175,000
Miscellaneous debt 5,014 5,128 5,219 5,236
Fair value of
interest rate swaps (6,378) (6,120) (6,492) (8,814)
Gain on terminated
interest rate swap 3,128 4,981 5,149 5,318
---------- ---------- --------- ---------
Bank debt and
notes 228,489 305,933 303,876 301,740
Limited recourse
debt from finance
receivables
monetizations * 70,586 77,601 85,733 121,794
---------- ---------- --------- ---------
Total balance
sheet debt 299,075 383,534 389,609 423,534
---------- ---------- --------- ---------
Net present value of
off-balance sheet
rental fleet lease 656 755 1,012 1,070
Net present value of
off-balance sheet
production
equipment leases 2,583 3,709 3,991 4,399
---------- ---------- --------- ---------
Total off-
balance sheet
financing 3,239 4,464 5,003 5,469
---------- ---------- --------- ---------
Total balance
sheet debt and
off-balance
sheet
financing 302,314 387,998 394,612 429,003
Less: cash and cash
equivalents 172,480 24,305 66,498 37,656
Less: limited
recourse debt from
finance receivables
monetizations 70,586 77,601 85,733 121,794
---------- ---------- --------- ---------
Net debt $59,248 $286,092 $242,381 $269,553
========== ========== ========= =========
Shareholders' Equity $436,238 $284,746 $276,780 $281,270
========== ========== ========= =========
Net Debt-to-Net Debt
plus Shareholders'
Equity 12% 50% 47% 49%
========== ========== ========= =========
Total Balance Sheet
Debt-to-Total
Balance Sheet Debt
plus Shareholders'
Equity 41% 57% 58% 60%
========== ========== ========= =========
* Maximum loss
exposure under loss
pool agreements
related to finance
receivable
monetizations $22,168 $22,168 $22,168 $22,198
========== ========== ========= =========
We 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 monetizations of
customer finance receivables.
JLG INDUSTRIES, INC.
FREE CASH FLOW
(in thousands)
Fiscal
Year Quarter Ended
Ended July April January October
July 31, 31, 30, 29, 30,
2006 2006 2006 2006 2005
--------- -------- --------- --------- --------
Net income (loss) $149,344 $47,871 $46,187 $27,420 $27,866
Adjustments to
reconcile net income
(loss) to cash flow
from operating
activities:
Non-cash items 24,228 6,516 (3,183) 7,489 13,406
Accounts receivable (45,350) (58,188) (13,080) (13,268) 39,186
Inventories (64,712) 5,470 10,368 (30,523) (50,027)
Other current assets 17,653 (7,860) 11,633 4,345 9,535
Accounts payable 42,312 12,405 35,610 (5,669) (34)
Accrued expenses 15,831 37,582 (2,473) (11,067) (8,211)
Finance receivables (2,315) 3,394 (3,645) (3,415) 1,351
Other cash from
operations (17,613) 1,035 (11,506) (3,720) (3,422)
Purchases of property,
plant and equipment (32,597) (16,065) (9,643) (3,744) (3,145)
Proceeds from the sale
of property, plant
and equipment 739 587 16 34 102
Purchases of equipment
held for rental (43,527) (4,246) (11,890) (9,270) (18,121)
Proceeds from the sale
of equipment held for
rental 50,552 3,413 32,396 14,305 438
Proceeds from the sale
of Gradall excavator
product line 32,992 576 32,416 - -
Cash portion of
acquisitions (47,093) - (58) (47,035) -
Other cash from
investments 150 (204) 422 (40) (28)
Payment of dividends (1,584) (532) (530) (264) (258)
Net proceeds from
issuance of common
stock - - - - -
Cash proceeds received
from the exercise of
stock options 18,494 493 4,510 13,327 164
Excess tax benefits
from stock-based
compensation 20,384 - 7,323 13,017 44
Effect of exchange
rate changes on cash (1,359) (411) (537) 781 (1,192)
Seller financing (5,000) - - (5,000) -
Capital lease assumed
in OmniQuip
acquisition - - - - -
Debt assumed in Delta
acquisition - - - - -
Other (1) 2,801 (966) 2,087 (753) 2,433
--------- -------- --------- --------- --------
Free Cash Flow $114,330 $30,870 $126,423 $(53,050) $10,087
========= ======== ========= ========= ========
Fiscal
Year Quarter Ended
Ended July May January October
July 31, 31, 1, 30, 31,
2005 2005 2005 2005 2004
--------- -------- --------- --------- --------
Net income (loss) $57,173 $35,696 $22,722 $7,484 ($8,729)
Adjustments to
reconcile net income
(loss) to cash flow
from operating
activities:
Non-cash items 25,122 (1,551) 12,405 5,570 8,698
Accounts receivable (25,948) (42,151) (16,355) (29,659) 62,217
Inventories (15,268) 16,321 (3,463) (11,758) (16,368)
Other current assets (12,553) 899 (14,132) 3,497 (2,817)
Accounts payable 60,423 5,868 54,834 (10,833) 10,554
Accrued expenses 43,176 37,436 21,320 (5,837) (9,743)
Finance receivables 1,877 1,459 1,944 6,970 (8,496)
Other cash from
operations 8,374 495 21,946 (12,920) (1,147)
Purchases of property,
plant and equipment (15,443) (9,134) (1,342) (2,072) (2,895)
Proceeds from the sale
of property, plant
and equipment 1,060 24 874 81 81
Purchases of equipment
held for rental (31,249) (5,590) (6,719) (8,851) (10,089)
Proceeds from the sale
of equipment held for
rental 35,065 11,775 3,103 16,037 4,150
Proceeds from the sale
of Gradall excavator
product line - - - - -
Cash portion of
acquisitions (105) - - (105) -
Other cash from
investments 366 (35) 503 (56) (46)
Payment of dividends (925) (257) (224) (224) (220)
Net proceeds from
issuance of common
stock 119,421 (113) 119,534 - -
Cash proceeds received
from the exercise of
stock options 19,826 6,750 6,714 1,276 5,086
Excess tax benefits
from stock-based
compensation - - - - -
Effect of exchange
rate changes on cash (7,833) (3,429) 92 (1,729) (2,767)
Seller financing - - - - -
Capital lease assumed
in OmniQuip
acquisition - - - - -
Debt assumed in Delta
acquisition - - - - -
Other (1) 4,898 2,689 3,088 (582) (297)
--------- -------- --------- --------- --------
Free Cash Flow $267,457 $57,152 $226,844 ($43,711) $27,172
========= ======== ========= ========= ========
Fiscal
Year
Ended
July
31,
2004
---------
Net income (loss) $26,649
Adjustments to
reconcile net income
(loss) to cash flow
from operating
activities:
Non-cash items 30,555
Accounts receivable (66,296)
Inventories 9,188
Other current assets 8,780
Accounts payable 33,207
Accrued expenses 4,726
Finance receivables (6,112)
Other cash from
operations (11,090)
Purchases of property,
plant and equipment (12,387)
Proceeds from the sale
of property, plant
and equipment 90
Purchases of equipment
held for rental (26,689)
Proceeds from the sale
of equipment held for
rental 33,269
Proceeds from the sale
of Gradall excavator
product line -
Cash portion of
acquisitions (109,557)
Other cash from
investments 333
Payment of dividends (871)
Net proceeds from
issuance of common
stock -
Cash proceeds received
from the exercise of
stock options 2,414
Excess tax benefits
from stock-based
compensation -
Effect of exchange
rate changes on cash 258
Seller financing (10,000)
Capital lease assumed
in OmniQuip
acquisition (3,630)
Debt assumed in Delta
acquisition (103)
Other (1) (1,184)
---------
Free Cash Flow ($98,450)
=========
(1) Includes changes in 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, cash proceeds received
from the exercise of stock options, excess tax benefits from
stock-based compensation 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.
STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
CONSOLIDATED
JLG Industries, Inc. and
Consolidated Subsidiaries
--------------------------
Fiscal Year Ended July 31,
2006 2005
------------ ------------
Revenues
Net sales $2,268,322 $1,713,782
Financial products 11,093 11,915
Rentals 9,981 9,333
------------ ------------
2,289,396 1,735,030
Cost of sales 1,846,371 1,447,785
------------ ------------
Gross profit 443,025 287,245
Selling and administrative expenses 164,362 142,383
Product development expenses 30,251 24,601
Gain related to sale of Gradall excavator
product line (14,572) -
------------ ------------
Income from operations 262,984 120,261
Other income (deductions):
Interest expense, net of interest income (17,710) (28,609)
Miscellaneous, net (3,166) 1,436
------------ ------------
Income before taxes 242,108 93,088
Income tax provision 92,764 35,915
Equity in income of Access Financial
Solutions - -
------------ ------------
Net income $149,344 $57,173
============ ============
Earnings per common share $1.43 $.61
============ ============
Earnings per common share -
assuming dilution $1.40 $.60
============ ============
Cash dividends per share $.015 $.01
============ ============
Weighted average shares outstanding 104,294 93,058
============ ============
Weighted average shares outstanding -
assuming dilution 106,518 95,586
============ ============
EQUIPMENT OPERATIONS
JLG Industries, Inc. with
Access
Financial Solutions on the
Equity Basis
--------------------------
Fiscal Year Ended July 31,
2006 2005
------------ ------------
Revenues
Net sales $2,268,322 $1,713,782
Financial products - -
Rentals 9,671 7,497
------------ ------------
2,277,993 1,721,279
Cost of sales 1,846,200 1,446,935
------------ ------------
Gross profit 431,793 274,344
Selling and administrative expenses 161,152 140,298
Product development expenses 30,251 24,601
Gain related to sale of Gradall excavator
product line (14,572) -
------------ ------------
Income from operations 254,962 109,445
Other income (deductions):
Interest expense, net of interest income (14,625) (22,213)
Miscellaneous, net (3,166) 1,436
------------ ------------
Income before taxes 237,171 88,668
Income tax provision 90,872 34,209
Equity in income of Access Financial
Solutions 3,045 2,714
------------ ------------
Net income $149,344 $57,173
============ ============
Earnings per common share
Earnings per common share -
assuming dilution
Cash dividends per share
Weighted average shares outstanding
Weighted average shares outstanding -
assuming dilution
FINANCIAL SERVICES
Access Financial Solutions
--------------------------
Fiscal Year Ended July 31,
2006 2005
------------ ------------
Revenues
Net sales $- $-
Financial products 11,093 11,915
Rentals 310 1,836
------------ ------------
11,403 13,751
Cost of sales 171 850
------------ ------------
Gross profit 11,232 12,901
Selling and administrative expenses 3,210 2,085
Product development expenses - -
Gain related to sale of Gradall excavator
product line - -
------------ ------------
Income from operations 8,022 10,816
Other income (deductions):
Interest expense, net of interest income (3,085) (6,396)
Miscellaneous, net - -
------------ ------------
Income before taxes 4,937 4,420
Income tax provision 1,892 1,706
Equity in income of Access Financial
Solutions - -
------------ ------------
Net income $3,045 $2,714
============ ============
Earnings per common share
Earnings per common share -
assuming dilution
Cash dividends per share
Weighted average shares outstanding
Weighted average shares outstanding -
assuming dilution
JLG INDUSTRIES, INC.
BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
CONSOLIDATED
JLG Industries, Inc. and
Consolidated Subsidiaries
---------------------------------------
July 31,
2006 2005
------------------- -------------------
ASSETS
-------------------------------
Current assets
Cash and cash equivalents $328,096 $223,597
Trade accounts and finance
receivables - net 445,631 419,866
Inventories 212,864 169,097
Other current assets 47,613 56,739
------------------- -------------------
Total current assets 1,034,204 869,299
Property, plant and equipment -
net 98,345 85,855
Equipment held for rental - net 21,477 22,570
Finance receivables, less
current portion 29,193 30,354
Pledged receivables, less
current portion 7,668 33,649
Goodwill 57,388 61,641
Intangible assets - net 74,142 32,086
Investment in Access Financial
Solutions - -
Receivable from Access
Financial Solutions - -
Other assets 74,872 68,143
------------------- -------------------
$1,397,289 $1,203,597
=================== ===================
LIABILITIES AND SHAREHOLDERS'
EQUITY
-------------------------------
Current liabilities
Short-term debt and current
portion of long-term debt $8,484 $1,496
Current portion of limited
recourse debt from finance
receivables monetizations 16,001 29,642
Accounts payable 233,746 200,323
Accrued expenses 168,513 148,651
------------------- -------------------
Total current liabilities 426,744 380,112
Long-term debt, less current
portion 207,378 224,197
Limited recourse debt from
finance receivables
monetizations, less current
portion 7,718 34,016
Payable to JLG Industries, Inc. - -
Accrued post-retirement
benefits 25,748 31,113
Other long-term liabilities 19,984 27,233
Provisions for contingencies 34,285 28,334
Shareholders' equity
Capital stock:
Authorized shares: 200,000
at $.20 par value
Issued and outstanding
shares: 106,751 shares;
fiscal 2005 - 103,290
shares 21,350 20,658
Additional paid-in capital 209,290 170,367
Retained earnings 458,276 310,516
Unearned compensation - (7,397)
Accumulated other
comprehensive loss (13,484) (15,552)
------------------- -------------------
Total shareholders' equity 675,432 478,592
------------------- -------------------
$1,397,289 $1,203,597
=================== ===================
EQUIPMENT OPERATIONS
JLG Industries, Inc. with Access
Financial Solutions on the Equity Basis
---------------------------------------
July 31,
2006 2005
------------------- -------------------
ASSETS
-------------------------------
Current assets
Cash and cash equivalents $328,096 $223,597
Trade accounts and finance
receivables - net 405,003 373,417
Inventories 212,864 169,097
Other current assets 47,613 56,739
------------------- -------------------
Total current assets 993,576 822,850
Property, plant and equipment -
net 98,253 85,698
Equipment held for rental - net 21,384 22,259
Finance receivables, less
current portion - -
Pledged receivables, less
current portion - -
Goodwill 57,388 61,641
Intangible assets - net 74,142 32,086
Investment in Access Financial
Solutions 43,530 40,485
Receivable from Access
Financial Solutions 8,403 5,868
Other assets 74,899 68,009
------------------- -------------------
$1,371,575 $1,138,896
=================== ===================
LIABILITIES AND SHAREHOLDERS'
EQUITY
-------------------------------
Current liabilities
Short-term debt and current
portion of long-term debt $8,484 $1,496
Current portion of limited
recourse debt from finance
receivables monetizations - -
Accounts payable 233,746 200,323
Accrued expenses 168,458 148,615
------------------- -------------------
Total current liabilities 410,688 350,434
Long-term debt, less current
portion 207,378 224,197
Limited recourse debt from
finance receivables
monetizations, less current
portion - -
Payable to JLG Industries, Inc. - -
Accrued post-retirement
benefits 25,748 31,113
Other long-term liabilities 19,984 27,233
Provisions for contingencies 32,345 27,327
Shareholders' equity
Capital stock:
Authorized shares: 200,000
at $.20 par value
Issued and outstanding
shares: 106,751 shares;
fiscal 2005 - 103,290
shares 21,350 20,658
Additional paid-in capital 209,290 170,367
Retained earnings 458,276 310,516
Unearned compensation - (7,397)
Accumulated other
comprehensive loss (13,484) (15,552)
------------------- -------------------
Total shareholders' equity 675,432 478,592
------------------- -------------------
$1,371,575 $1,138,896
=================== ===================
FINANCIAL SERVICES
Access Financial Solutions
---------------------------------------
July 31,
2006 2005
------------------- -------------------
ASSETS
-------------------------------
Current assets
Cash and cash equivalents $- $-
Trade accounts and finance
receivables - net 40,628 46,449
Inventories - -
Other current assets - -
------------------- -------------------
Total current assets 40,628 46,449
Property, plant and equipment -
net 92 157
Equipment held for rental - net 93 311
Finance receivables, less
current portion 29,193 30,354
Pledged receivables, less
current portion 7,668 33,649
Goodwill - -
Intangible assets - net - -
Investment in Access Financial
Solutions - -
Receivable from Access
Financial Solutions - -
Other assets (27) 134
------------------- -------------------
$77,647 $111,054
=================== ===================
LIABILITIES AND SHAREHOLDERS'
EQUITY
-------------------------------
Current liabilities
Short-term debt and current
portion of long-term debt $- $-
Current portion of limited
recourse debt from finance
receivables monetizations 16,001 29,642
Accounts payable - -
Accrued expenses 55 36
------------------- -------------------
Total current liabilities 16,056 29,678
Long-term debt, less current
portion - -
Limited recourse debt from
finance receivables
monetizations, less current
portion 7,718 34,016
Payable to JLG Industries, Inc. 8,403 5,868
Accrued post-retirement
benefits - -
Other long-term liabilities - -
Provisions for contingencies 1,940 1,007
Shareholders' equity
Capital stock:
Authorized shares: 200,000
at $.20 par value
Issued and outstanding
shares: 106,751 shares;
fiscal 2005 - 103,290
shares 30,000 30,000
Additional paid-in capital - -
Retained earnings 13,530 10,485
Unearned compensation - -
Accumulated other
comprehensive loss - -
------------------- -------------------
Total shareholders' equity 43,530 40,485
------------------- -------------------
$77,647 $111,054
=================== ===================
JLG INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
CONSOLIDATED
JLG Industries, Inc. and
Consolidated Subsidiaries
---------------------------------------
Fiscal Year Ended July 31,
2006 2005
------------------- -------------------
Operations
Net income $149,344 $57,173
Adjustments to reconcile net
income to cash flow from
operating activities:
Gain related to sale of
Gradall excavator
product line (14,572) -
(Gain) loss on sale of
property, plant and
equipment (383) 948
(Gain) loss on sale of
equipment held for
rental (13,745) (11,711)
Non-cash charges and
credits:
Depreciation and
amortization 28,551 28,899
Other 24,377 6,986
Changes in selected
working capital items:
Accounts receivable (45,350) (25,948)
Inventories (64,712) (15,268)
Accounts payable 42,312 60,423
Other operating assets
and liabilities 33,484 30,623
Changes in finance
receivables (2,315) 1,877
Changes in pledged
finance receivables (627) 36
Changes in other assets
and liabilities (17,613) 8,374
------------------- -------------------
Cash flow from operating
activities 118,751 142,412
Investments
Purchases of property, plant
and equipment (32,597) (15,443)
Proceeds from the sale of
property, plant and
equipment 739 1,060
Purchases of equipment held
for rental (43,527) (31,249)
Proceeds from the sale of
equipment held for rental 50,552 35,065
Proceeds from the sale of
excavator product line 32,992 -
Cash portion of acquisitions (47,093) (105)
Investment in income of
Access Financial Solutions - -
Other 150 366
------------------- -------------------
Cash flow used for
investing activities (38,784) (10,306)
Financing
Net increase in short-term
debt 52 (6)
Issuance of long-term debt 10,000 156,018
Repayment of long-term debt (21,455) (232,666)
Change in receivable from
Access Financial Solutions - -
Change in payable to JLG
Industries, Inc. - -
Payment of dividends (1,584) (925)
Net proceeds from issuance of
common stock - 119,421
Cash proceeds received from
the exercise of stock
options 18,494 19,826
Excess tax benefits from
stock-based compensation 20,384 -
------------------- -------------------
Cash flow from financing
activities 25,891 61,668
Currency Adjustments
Effect of exchange rate
changes on cash (1,359) (7,833)
------------------- -------------------
Cash and Cash Equivalents
Net change in cash and cash
equivalents 104,499 185,941
Beginning balance 223,597 37,656
------------------- -------------------
Ending balance $328,096 $223,597
=================== ===================
EQUIPMENT OPERATIONS
JLG Industries, Inc. with Access
Financial Solutions on the Equity Basis
---------------------------------------
Fiscal Year Ended July 31,
2006 2005
------------------- -------------------
Operations
Net income $149,344 $57,173
Adjustments to reconcile net
income to cash flow from
operating activities:
Gain related to sale of
Gradall excavator
product line (14,572) -
(Gain) loss on sale of
property, plant and
equipment (383) 948
(Gain) loss on sale of
equipment held for
rental (13,745) (11,711)
Non-cash charges and
credits:
Depreciation and
amortization 28,281 28,011
Other 23,339 7,503
Changes in selected
working capital items:
Accounts receivable (41,143) (45,612)
Inventories (64,712) (15,268)
Accounts payable 42,312 60,423
Other operating assets
and liabilities 33,465 30,795
Changes in finance
receivables - -
Changes in pledged
finance receivables - -
Changes in other assets
and liabilities (17,870) 7,129
------------------- -------------------
Cash flow from operating
activities 124,316 119,391
Investments
Purchases of property, plant
and equipment (32,597) (15,248)
Proceeds from the sale of
property, plant and
equipment 739 1,060
Purchases of equipment held
for rental (43,527) (31,236)
Proceeds from the sale of
equipment held for rental 50,552 35,065
Proceeds from the sale of
excavator product line 32,992 -
Cash portion of acquisitions (47,093) (105)
Investment in income of
Access Financial Solutions (3,045) (2,714)
Other 150 366
------------------- -------------------
Cash flow used for
investing activities (41,829) (12,812)
Financing
Net increase in short-term
debt 52 (6)
Issuance of long-term debt 10,000 156,018
Repayment of long-term debt (21,455) (232,666)
Change in receivable from
Access Financial Solutions (2,535) 25,530
Change in payable to JLG
Industries, Inc. - -
Payment of dividends (1,584) (925)
Net proceeds from issuance of
common stock - 119,421
Cash proceeds received from
the exercise of stock
options 18,494 19,826
Excess tax benefits from
stock-based compensation 20,384 -
------------------- -------------------
Cash flow from financing
activities 23,356 87,198
Currency Adjustments
Effect of exchange rate
changes on cash (1,344) (7,836)
------------------- -------------------
Cash and Cash Equivalents
Net change in cash and cash
equivalents 104,499 185,941
Beginning balance 223,597 37,656
------------------- -------------------
Ending balance $328,096 $223,597
=================== ===================
FINANCIAL SERVICES
Access Financial Solutions
---------------------------------------
Fiscal Year Ended July 31,
2006 2005
------------------- -------------------
Operations
Net income $3,045 $2,714
Adjustments to reconcile net
income to cash flow from
operating activities:
Gain related to sale of
Gradall excavator
product line - -
(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 270 888
Other 1,038 (517)
Changes in selected
working capital items:
Accounts receivable (4,207) 19,664
Inventories - -
Accounts payable - -
Other operating assets
and liabilities 19 (172)
Changes in finance
receivables (2,315) 1,877
Changes in pledged
finance receivables (627) 36
Changes in other assets
and liabilities 257 1,245
------------------- -------------------
Cash flow from operating
activities (2,520) 25,735
Investments
Purchases of property, plant
and equipment - (195)
Proceeds from the sale of
property, plant and
equipment - -
Purchases of equipment held
for rental - (13)
Proceeds from the sale of
equipment held for rental - -
Proceeds from the sale of
excavator product line - -
Cash portion of acquisitions - -
Investment in income of
Access Financial Solutions - -
Other - -
------------------- -------------------
Cash flow used for
investing activities - (208)
Financing
Net increase in short-term
debt - -
Issuance of long-term debt - -
Repayment of long-term debt - -
Change in receivable from
Access Financial Solutions - -
Change in payable to JLG
Industries, Inc. 2,535 (25,530)
Payment of dividends - -
Net proceeds from issuance of
common stock - -
Cash proceeds received from
the exercise of stock
options - -
Excess tax benefits from
stock-based compensation - -
------------------- -------------------
Cash flow from financing
activities 2,535 (25,530)
Currency Adjustments
Effect of exchange rate
changes on cash (15) 3
------------------- -------------------
Cash and Cash Equivalents
Net change in cash and cash
equivalents - -
Beginning balance - -
------------------- -------------------
Ending balance $- $-
=================== ===================
*T
JLG Industries, Inc. (NYSE:JLG) today announced record consolidated
financial results for the fiscal fourth-quarter and full-year ended July
31, 2006.
Financial highlights for the periods included:
Revenue growth of 21 percent and $48 million of net income earned
during the fourth quarter
Revenue growth of 32 percent and earnings improvement of 161 percent
for fiscal year 2006
Continued strong cash flow from operations funding growth
Strong demand continued for access products in construction markets
"Along with achieving new records for both quarterly and full-year
revenues and earnings, we achieved other significant milestones in
2006," stated Bill Lasky, Chairman of the Board, President and Chief
Executive Officer. "We completed our manufacturing realignment and
capacity expansion in preparation for the Caterpillar alliance and a
projected increase in demand for JLG access equipment. Shipments of
Caterpillar-branded telehandlers to European dealers began in late July
and we will begin shipping to North American dealers in November under
our exclusive 20-year private label alliance agreement. Despite some
economic uncertainty and reduced residential construction activity,
non-residential construction projections continue to be robust into
calendar 2007. Combined with increased international activity and the
new Caterpillar volume, this will continue to drive demand for JLG
access products."
Fourth-Quarter 2006 Results
During the fourth quarter, revenues were $688 million, compared to $570
million during the same period last year. This increase of 21 percent
was primarily due to sustained strong demand for access equipment as new
machine revenues rose 25 percent. Earnings for the quarter totaled $48
million, or 45 cents per share, compared to $36 million, or 35 cents per
share, during the fourth quarter of 2005. Operating income was $78
million, or 11.4 percent of sales, compared to $60 million, or 10.5
percent, during the same period last year.
Full-Year 2006 Results
Consolidated revenues were $2.3 billion, a 32 percent increase when
compared to $1.7 billion in 2005. Net income was $149 million, or $1.40
per share, compared to $57 million, or 60 cents per share last year. The
2006 results include a one time pre-tax gain of $14.6 million ($8.8
million net of tax), or 8 cents per share, from the sale of the Gradall
excavator business during the third quarter and $1.9 million ($1.2
million net of tax), or 1 cent per share of charges associated with the
early extinguishment of debt. The 2005 results include $6.5 million
($4.0 million net of tax) or 4 cents per share of charges associated
with the early extinguishment of debt. Operating income was $263
million, or 11.5 percent of revenues in 2006, compared to $120 million,
or 6.9 percent, in fiscal 2005.
Cash and cash equivalents were $328 million at July 31, 2006 compared to
$224 million a year ago. Cash flow from operations was $119 million.
Fiscal-Year 2007 Outlook
"Demand for our products remained strong in the fourth quarter,
continuing the pattern we have seen throughout fiscal 2006," said Jim
Woodward, Executive Vice President and Chief Financial Officer. "As a
result, our earnings quality improved significantly despite the
additional expenses associated with our Caterpillar alliance
preparations and other strategic initiatives. Excluding the gain on the
sale of the excavator business, the fiscal 2006 operating margin
improved to 10.9 percent compared to 6.9 percent in 2005. On a full year
basis, we achieved our 23-percent target for incremental operating
margin."
"We anticipate continued strong demand in fiscal 2007 and project
revenue growth to be 20 to 25 percent greater than our record fiscal
2006 level of $2.3 billion. With a substantial portion of our
manufacturing realignment and capacity expansion behind us, and the
start up of shipments under the new Caterpillar alliance, we expect
fiscal 2007 earnings per share to be in a range of $1.72 to $1.82."
Quarterly Conference Call Scheduled for 2 p.m. Today
Management's detailed analysis of the Company's quarterly results will
be provided during a conference call this afternoon at 2 p.m. Eastern
Time. The call and accompanying slide presentation can be accessed via
JLG's website at www.jlg.com, or by dialling
(800) 901-5217 in the U.S. and Canada, or (617) 786-2964 from
international locations. Callers must reference participant password
#14994468. Please dial in 10 minutes prior to the start of the call. A
replay of the call will be available on the website later in the day.
About JLG Industries, Inc.
JLG Industries, Inc. is the world's leading producer of access equipment
(aerial work platforms and telehandlers). The Company's diverse product
portfolio encompasses leading brands such as JLG(R) aerial work
platforms; JLG, SkyTrak(R), Lull(R) and Gradall(R) telehandlers; 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 approach that includes a highly trained
sales force and utilizes a broad range of marketing techniques,
integrated supply programs and a network of distributors in the
industrial, commercial, institutional and construction markets. In
addition, JLG offers world-class after-sales service and support for its
customers. JLG's manufacturing facilities are located in the United
States, Belgium, and France, with sales and service operations on six
continents.
Forward-Looking Statements
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) risks associated with acquisitions;
(iv) credit risks from our financing of customer purchases; (v) risks
arising from dependence on third-party suppliers; 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-Q for the quarter
ended April 30, 2006.
In this release and accompanying tables, we refer to various non-GAAP
measures including adjustments to reported GAAP earnings, AFS operations
as if accounted for under the equity method, as well as our disclosure
of free cash flow, EBITDA and net debt. We believe that these measures
are useful to investors in analyzing the Company's operating
performance. For more information, visit www.jlg.com.
NOTE: Information contained on our website is not incorporated by
reference into this press release.
JLG INDUSTRIES, INC.
FINANCIAL DASHBOARD
(in thousands, except per share data and as otherwise identified)
Fiscal Year Quarter Ended
Ended July April January
July 31, 31, 30, 29,
2006 2006 2006 2006
----------- --------- --------- ---------
REVENUES AND PROFITABILITY
Revenues $2,289,396 $687,632 $629,615 $494,426
Gross profit margin 19.4% 19.5% 18.8% 19.4%
EBITDA 297,930 88,234 90,952 59,400
----------------------------
Trailing twelve month EBITDA 297,930 297,930 280,799 243,633
----------------------------
Trailing twelve month EBITDA
margin 13.0% 13.0% 12.9% 11.9%
----------------------------
Operating income (loss) 262,984 78,194 84,690 49,734
Operating profit (loss)
margin 11.5% 11.4% 13.5% 10.1%
Net income (loss) margin 6.5% 7.0% 7.3% 5.5%
Reported earnings (loss) per
diluted share (1) $1.40 $0.45 $0.43 $0.26
IMPACT OF SELECTED ITEMS
ON: (2)
income (expense)
PRE-TAX INCOME
Strategic
Initiatives/Integration
(in both Cost of sales
(COS), Selling &
administrative and product
development (SA&PD)) $(22,019) $(9,848) $(7,951) $(3,375)
Restructuring and
repositioning charges (in
both COS, Restructuring) - - - -
Net expenses on early
extinguishment of debt (1,939) (492) (873) (574)
Currency effects (in
Miscellaneous-net) (2,767) 21 (2,847) (672)
Bad debt charges (in SA&PD) (6,368) (1,289) (234) (1,336)
Inventory charges (in COS) (2,074) (141) 106 (551)
Early vesting incentives
(in both COS, SA&PD) - - - -
Other Incentive pay (in
both COS, SA&PD) (25,938) (9,938) (6,266) (4,888)
Restatement expenses (in
SA&PD) - - - -
Estimated net unrecovered
steel cost (in COS) (3) (6,005) - - -
Gain related to sale of
Gradall excavator product
line 14,572 - 14,572 -
NET INCOME
Strategic
Initiatives/Integration
(in both COS and SA&PD) (13,581) (6,247) (4,789) (2,146)
Restructuring and
repositioning charges (in
both COS, Restructuring) - - - -
Net expenses on early
extinguishment of debt (1,196) (312) (526) (365)
Currency effects (in
Miscellaneous-net) (1,707) 13 (1,715) (427)
Bad debt charges (in SA&PD) (3,928) (818) (141) (850)
Inventory charges (in COS) (1,279) (89) 64 (350)
Early vesting incentives
(in both COS, SA&PD) - - - -
Other Incentive pay (in
both COS, SA&PD) (15,999) (6,304) (3,774) (3,109)
Restatement expenses (in
SA&PD) - - - -
Estimated net unrecovered
steel cost (in COS) (3) (3,704) - - -
Gain related to sale of
Gradall excavator product
line 8,988 - 8,777 -
EARNINGS PER SHARE (1)
Strategic
Initiatives/Integration
(in both COS and SA&PD) (0.13) (0.06) (0.04) (0.02)
Restructuring and
repositioning charges (in
both COS, Restructuring) - - - -
Net expenses on early
extinguishment of debt (0.01) - - -
Currency effects (in
Miscellaneous-net) (0.02) - (0.02) -
Bad debt charges (in SA&PD) (0.04) (0.01) - (0.01)
Inventory charges (in COS) (0.01) - - -
Early vesting incentives
(in both COS, SA&PD) - - - -
Other Incentive pay (in
both COS, SA&PD) (0.15) (0.06) (0.04) (0.03)
Restatement expenses (in
SA&PD) - - - -
Estimated net unrecovered
steel cost (in COS) (3) (0.03) - - -
Gain related to sale of
Gradall excavator product
line 0.08 - 0.08 -
BALANCE SHEET & LIQUIDITY
MEASURES
Cash & cash equivalents $328,096 $328,096 $304,895 $183,344
Trade accounts and finance
receivables, net 445,631 445,631 393,966 379,813
Inventories 212,864 212,864 216,901 227,957
Total balance sheet debt 239,581 239,581 252,047 273,721
Limited recourse debt from
finance receivables
monetizations 23,719 23,719 28,516 45,318
Net debt (4) (112,234) (112,234) (81,364) 45,059
----------------------------
Net debt (4) to total
capitalization - - - 7%
----------------------------
Maximum loss exposure under
loss pool agreements
related to finance
receivable monetizations 8,818 8,818 8,818 11,346
Equity 675,432 675,432 625,736 566,870
Working capital 607,460 607,460 575,593 523,417
Depreciation and
amortization 28,551 6,410 7,701 7,907
Capital expenditures, net of
retirements 32,241 15,837 9,622 3,653
Free cash flow (5) 114,330 30,870 126,423 (53,050)
----------------------------
FINANCIAL RATIOS
Days sales outstanding 51.2 51.2 46.8 62.3
Days payables outstanding 44.2 44.2 45.2 40.6
Inventory turnover
(annualized) 7.6 7.6 7.5 7.6
Quarter Fiscal Quarter
Ended Year Ended
October Ended July May
30, July 31, 31, 1,
2005 2005 2005 2005
--------- ----------- --------- ---------
REVENUES AND PROFITABILITY
Revenues $477,723 $1,735,030 $569,579 $505,356
Gross profit margin 19.9% 16.6% 19.3% 19.4%
EBITDA 59,344 154,185 71,103 53,786
----------------------------
Trailing twelve month EBITDA 211,344 154,185 154,185 121,445
----------------------------
Trailing twelve month EBITDA
margin 11.1% 8.9% 8.9% 7.6%
----------------------------
Operating income (loss) 50,366 120,261 59,722 51,267
Operating profit (loss)
margin 10.5% 6.9% 10.5% 10.1%
Net income (loss) margin 5.8% 3.3% 6.3% 4.5%
Reported earnings (loss) per
diluted share (1) $0.27 $.60 $.35 $.24
IMPACT OF SELECTED ITEMS
ON: (2)
income (expense)
PRE-TAX INCOME
Strategic
Initiatives/Integration
(in both Cost of sales
(COS), Selling &
administrative and product
development (SA&PD)) $(845) $(6,261) $(2,131) $(1,141)
Restructuring and
repositioning charges (in
both COS, Restructuring) - - - -
Net expenses on early
extinguishment of debt - (6,493) (217) (6,276)
Currency effects (in
Miscellaneous-net) 731 5,826 1,419 (961)
Bad debt charges (in SA&PD) (3,509) (6,977) (2,533) (1,364)
Inventory charges (in COS) (1,488) (4,423) (1,244) (1,279)
Early vesting incentives
(in both COS, SA&PD) - (1,658) - (227)
Other Incentive pay (in
both COS, SA&PD) (4,846) (22,194) (14,810) (7,384)
Restatement expenses (in
SA&PD) - - - -
Estimated net unrecovered
steel cost (in COS) (3) (6,005) (64,753) (8,702) (8,307)
Gain related to sale of
Gradall excavator product
line - - - -
NET INCOME
Strategic
Initiatives/Integration
(in both COS and SA&PD) (503) (3,846) (1,325) (687)
Restructuring and
repositioning charges (in
both COS, Restructuring) - - - -
Net expenses on early
extinguishment of debt - (3,988) (135) (3,778)
Currency effects (in
Miscellaneous-net) 435 3,578 882 (579)
Bad debt charges (in SA&PD) (2,088) (4,285) (1,575) (821)
Inventory charges (in COS) (885) (2,717) (774) (770)
Early vesting incentives
(in both COS, SA&PD) - (1,018) - (137)
Other Incentive pay (in
both COS, SA&PD) (2,883) (13,632) (9,209) (4,445)
Restatement expenses (in
SA&PD) - - - -
Estimated net unrecovered
steel cost (in COS) (3) (3,573) (39,771) (5,411) (5,001)
Gain related to sale of
Gradall excavator product
line - - - -
EARNINGS PER SHARE (1)
Strategic
Initiatives/Integration
(in both COS and SA&PD) - (0.04) (0.01) (0.01)
Restructuring and
repositioning charges (in
both COS, Restructuring) - - - -
Net expenses on early
extinguishment of debt - (0.04) - (0.04)
Currency effects (in
Miscellaneous-net) - 0.04 0.01 (0.01)
Bad debt charges (in SA&PD) (0.02) (0.04) (0.02) (0.01)
Inventory charges (in COS) (0.01) (0.03) (0.01) (0.01)
Early vesting incentives
(in both COS, SA&PD) - (0.01) - -
Other Incentive pay (in
both COS, SA&PD) (0.03) (0.14) (0.09) (0.05)
Restatement expenses (in
SA&PD) - - - -
Estimated net unrecovered
steel cost (in COS) (3) (0.03) (0.42) (0.05) (0.05)
Gain related to sale of
Gradall excavator product
line - - - -
BALANCE SHEET & LIQUIDITY
MEASURES
Cash & cash equivalents $230,947 $223,597 $223,597 $172,480
Trade accounts and finance
receivables, net 379,393 419,866 419,866 377,190
Inventories 218,881 169,097 169,097 185,370
Total balance sheet debt 278,877 289,351 289,351 299,075
Limited recourse debt from
finance receivables
monetizations 55,921 63,658 63,658 70,586
Net debt (4) (7,991) 2,096 2,096 59,248
----------------------------
Net debt (4) to total
capitalization - - - 12%
----------------------------
Maximum loss exposure under
loss pool agreements
related to finance
receivable monetizations 11,855 22,160 22,160 22,168
Equity 507,140 478,592 478,592 436,238
Working capital 505,787 489,187 489,187 451,660
Depreciation and
amortization 6,533 28,899 7,365 7,488
Capital expenditures, net of
retirements 3,129 13,435 8,282 490
Free cash flow (5) 10,087 267,457 57,152 226,844
----------------------------
FINANCIAL RATIOS
Days sales outstanding 62.7 57.1 57.1 55.4
Days payables outstanding 46.4 50.5 50.5 55.7
Inventory turnover
(annualized) 7.8 7.6 7.6 6.9
Quarter Ended Fiscal Year
January October Ended
30, 31, July 31,
2005 2004 2004
--------- --------- -----------
REVENUES AND PROFITABILITY
Revenues $353,434 $306,661 $1,193,962
Gross profit margin 15.3% 8.4% 18.9%
EBITDA 27,111 2,185 105,660
--------------------------------------
Trailing twelve month EBITDA 97,995 90,653 105,660
--------------------------------------
Trailing twelve month EBITDA margin 7.0% 7.0% 8.8%
--------------------------------------
Operating income (loss) 17,607 (8,335) 75,906
Operating profit (loss) margin 5.0% -2.7% 6.4%
Net income (loss) margin 2.1% -2.8% 2.2%
Reported earnings (loss) per diluted
share (1) $.08 $(.10) $.30
IMPACT OF SELECTED ITEMS ON: (2)
income (expense)
PRE-TAX INCOME
Strategic Initiatives/Integration (in
both Cost of sales (COS), Selling &
administrative and product
development (SA&PD)) $(1,093) $(1,896) $(15,975)
Restructuring and repositioning
charges (in both COS, Restructuring) - - (119)
Net expenses on early extinguishment
of debt - - -
Currency effects (in Miscellaneous-
net) 3,087 2,281 (2,309)
Bad debt charges (in SA&PD) (1,948) (1,132) (11,560)
Inventory charges (in COS) (308) (1,592) (4,519)
Early vesting incentives (in both
COS, SA&PD) (436) (995) (1,771)
Other Incentive pay (in both COS,
SA&PD) - - (16,923)
Restatement expenses (in SA&PD) - - (1,264)
Estimated net unrecovered steel cost
(in COS) (3) (20,980) (26,764) (4,695)
Gain related to sale of Gradall
excavator product line - - -
NET INCOME
Strategic Initiatives/Integration (in
both COS and SA&PD) (692) (1,191) (10,160)
Restructuring and repositioning
charges (in both COS, Restructuring) - - (76)
Net expenses on early extinguishment
of debt - - -
Currency effects (in Miscellaneous-
net) 1,954 1,432 (1,469)
Bad debt charges (in SA&PD) (1,233) (711) (7,352)
Inventory charges (in COS) (195) (1,000) (2,874)
Early vesting incentives (in both
COS, SA&PD) (276) (625) (1,126)
Other Incentive pay (in both COS,
SA&PD) - - (10,763)
Restatement expenses (in SA&PD) - - (804)
Estimated net unrecovered steel cost
(in COS) (3) (13,280) (16,808) (2,986)
Gain related to sale of Gradall
excavator product line - - -
EARNINGS PER SHARE (1)
Strategic Initiatives/Integration (in
both COS and SA&PD) (0.01) (0.01) (0.11)
Restructuring and repositioning
charges (in both COS, Restructuring) - - -
Net expenses on early extinguishment
of debt - - -
Currency effects (in Miscellaneous-
net) 0.02 0.02 (0.02)
Bad debt charges (in SA&PD) (0.01) (0.01) (0.08)
Inventory charges (in COS) - (0.01) (0.03)
Early vesting incentives (in both
COS, SA&PD) - (0.01) (0.01)
Other Incentive pay (in both COS,
SA&PD) - - (0.12)
Restatement expenses (in SA&PD) - - (0.01)
Estimated net unrecovered steel cost
(in COS) (3) (0.15) (0.19) (0.03)
Gain related to sale of Gradall
excavator product line - - -
BALANCE SHEET & LIQUIDITY MEASURES
Cash & cash equivalents $24,305 $66,498 $37,656
Trade accounts and finance
receivables, net 354,350 333,316 400,597
Inventories 182,606 170,731 154,405
Total balance sheet debt 383,534 389,609 423,534
Limited recourse debt from finance
receivables monetizations 77,601 85,733 121,794
Net debt (4) 286,092 242,381 269,553
--------------------------------------
Net debt (4) to total capitalization 50% 47% 49%
--------------------------------------
Maximum loss exposure under loss pool
agreements
related to finance receivable
monetizations 22,168 22,168 22,198
Equity 284,746 276,780 281,270
Working capital 340,786 328,671 340,552
Depreciation and amortization 6,958 7,088 25,681
Capital expenditures, net of
retirements 2,010 2,653 11,978
Free cash flow (5) (43,711) 27,172 (98,450)
--------------------------------------
FINANCIAL RATIOS
Days sales outstanding 83.7 92.0 78.4
Days payables outstanding 46.5 54.6 57.0
Inventory turnover (annualized) 6.4 5.9 5.8
(1) On March 27, 2006, we distributed a two-for-one stock split of our
then outstanding common stock. All share and per share data
included in this Financial Dashboard and the accompanying
consolidated condensed financial statements have been restated to
reflect the stock split.
(2) Net of the quarter and annual effective tax rates. EPS is
calculated by dividing the net income (loss) 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 unrecovered steel cost is an estimate based upon a baseline
average of steel prices per ton for various types of steel in
fiscal 2004 compared to the impact of steel prices incurred for
various types of steel. These estimates include assumptions
regarding the steel content of and sources of our products and
their components. The steel price increases are netted against
steel surcharges invoiced to our customers.
(4) Net debt reflects total balance sheet debt plus off-balance sheet
financing, less cash and limited recourse debt from finance
receivables monetizations.
(5) Free cash flow is defined as cash flow from operating activities,
investing activities, payment of dividends, exercise of stock
options, 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.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share data)
(Quarterly data is unaudited)
Fiscal Year Quarter Ended
Ended
July 31, July 31, April 30, January October
2006 2006 2006 29, 2006 30, 2005
----------- --------- --------- --------- ---------
Revenues
Net sales $2,268,322 $682,789 $624,686 $488,411 $472,436
Financial
products 11,093 2,647 2,216 3,256 2,974
Rentals 9,981 2,196 2,713 2,759 2,313
----------- --------- --------- --------- ---------
2,289,396 687,632 629,615 494,426 477,723
Cost of sales 1,846,371 553,394 511,552 398,566 382,859
----------- --------- --------- --------- ---------
Gross profit 443,025 134,238 118,063 95,860 94,864
Gross profit
margin 19.4% 19.5% 18.8% 19.4% 19.9%
Selling and
administrative
expenses 164,362 45,975 41,025 39,301 38,061
Selling &
administrative
% 7.2% 6.7% 6.5% 7.9% 8.0%
Product
development
expenses 30,251 10,069 6,920 6,825 6,437
Product
development % 1.3% 1.5% 1.1% 1.4% 1.3%
Gain related to
sale of Gradall
excavator
product line (14,572) - (14,572) - -
Restructuring
charges - - - - -
----------- --------- --------- --------- ---------
Income (loss)
from operations 262,984 78,194 84,690 49,734 50,366
Operating profit
(loss) margin 11.5% 11.4% 13.5% 10.1% 10.5%
Other income
(deductions):
Interest
expense (net
of interest
income) (17,710) (2,526) (4,030) (6,688) (4,466)
Miscellaneous,
net (3,166) (195) (3,974) 69 934
----------- --------- --------- --------- ---------
Income (loss)
before taxes 242,108 75,473 76,686 43,115 46,834
Income tax
provision
(benefit) 92,764 27,602 30,499 15,695 18,968
----------- --------- --------- --------- ---------
Net income (loss) $149,344 $47,871 $46,187 $27,420 $27,866
=========== ========= ========= ========= =========
Return on
revenues 6.5% 7.0% 7.3% 5.5% 5.8%
Earnings (loss)
per common share $1.43 $.45 $.44 $.26 $.27
=========== ========= ========= ========= =========
Earnings (loss)
per common share
- assuming
dilution $1.40 $.45 $.43 $.26 $.27
=========== ========= ========= ========= =========
Cash Dividends per
share $.0150 $.0050 $.0050 $.0025 $.0025
=========== ========= ========= ========= =========
Average basic
shares
outstanding 104,294 105,465 105,088 104,042 102,424
=========== ========= ========= ========= =========
Average diluted
shares
outstanding 106,518 107,199 107,232 106,374 105,112
=========== ========= ========= ========= =========
Fiscal Year Quarter Ended
Ended
July 31, July 31, May 1, January October
2005 2005 2005 30, 2005 31, 2004
----------- --------- --------- --------- ---------
Revenues
Net sales $1,713,782 $563,805 $499,899 $347,947 $302,131
Financial
products 11,915 2,826 3,373 3,056 2,660
Rentals 9,333 2,948 2,084 2,431 1,870
----------- --------- --------- --------- ---------
1,735,030 569,579 505,356 353,434 306,661
Cost of sales 1,447,785 459,893 407,464 299,462 280,966
----------- --------- --------- --------- ---------
Gross profit 287,245 109,686 97,892 53,972 25,695
Gross profit
margin 16.6% 19.3% 19.4% 15.3% 8.4%
Selling and
administrative
expenses 142,383 43,927 39,524 30,810 28,122
Selling &
administrative
% 8.2% 7.7% 7.8% 8.7% 9.2%
Product
development
expenses 24,601 6,037 7,101 5,555 5,908
Product
development % 1.4% 1.1% 1.4% 1.6% 1.9%
Gain related to
sale of Gradall
excavator
product line - - - - -
Restructuring
charges - - - - -
----------- --------- --------- --------- ---------
Income (loss)
from operations 120,261 59,722 51,267 17,607 (8,335)
Operating profit
(loss) margin 6.9% 10.5% 10.1% 5.0% -2.7%
Other income
(deductions):
Interest
expense (net
of interest
income) (28,609) (4,905) (7,418) (7,852) (8,434)
Miscellaneous,
net 1,436 2,595 (6,105) 2,076 2,870
----------- --------- --------- --------- ---------
Income (loss)
before taxes 93,088 57,412 37,744 11,831 (13,899)
Income tax
provision
(benefit) 35,915 21,716 15,022 4,347 (5,170)
----------- --------- --------- --------- ---------
Net income (loss) $57,173 $35,696 $22,722 $7,484 $(8,729)
=========== ========= ========= ========= =========
Return on
revenues 3.3% 6.3% 4.5% 2.1% -2.8%
Earnings (loss)
per common share $.61 $.35 $.24 $.09 $(.10)
=========== ========= ========= ========= =========
Earnings (loss)
per common share
- assuming
dilution $.60 $.35 $.24 $.08 $(.10)
=========== ========= ========= ========= =========
Cash Dividends per
share $.0100 $.0025 $.0025 $.0025 $.0025
=========== ========= ========= ========= =========
Average basic
shares
outstanding 93,058 100,722 94,182 87,596 86,554
=========== ========= ========= ========= =========
Average diluted
shares
outstanding 95,586 103,312 96,574 89,976 86,554
=========== ========= ========= ========= =========
Fiscal Year
Ended
July 31,
2004
------------
Revenues
Net sales $1,170,186
Financial
products 15,203
Rentals 8,573
------------
1,193,962
Cost of sales 968,562
------------
Gross profit 225,400
Gross profit
margin 18.9%
Selling and
administrative
expenses 128,465
Selling &
administrative
% 10.8%
Product
development
expenses 21,002
Product
development % 1.8%
Gain related to
sale of Gradall
excavator
product line -
Restructuring
charges 27
------------
Income (loss)
from operations 75,906
Operating profit
(loss) margin 6.4%
Other income
(deductions):
Interest expense
(net of
interest
income) (35,397)
Miscellaneous,
net 1,372
------------
Income (loss)
before taxes 41,881
Income tax
provision
(benefit) 15,232
------------
Net income (loss) $26,649
============
Return on
revenues 2.2%
Earnings (loss)
per common share $.31
============
Earnings (loss)
per common share
- assuming
dilution $.30
============
Cash Dividends per
share $.0100
============
Average basic
shares
outstanding 85,720
============
Average diluted
shares
outstanding 88,064
============
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
(Quarterly data is unaudited)
July 31, April 30, January 29, October 30,
2006 2006 2006 2005
----------- ----------- ----------- -----------
ASSETS
---------------
Current assets
Cash and cash
equivalents $328,096 $304,895 $183,344 $230,947
Trade accounts
and finance
receivables,
net 445,631 393,966 379,813 379,393
Inventories 212,864 216,901 227,957 218,881
Assets held
for sale - - 49,941 -
Other current
assets 47,613 26,595 42,715 48,417
----------- ----------- ----------- -----------
Total current
assets 1,034,204 942,357 883,770 877,638
Property, plant
and equipment,
net 98,345 87,447 82,746 84,879
Equipment held
for rental,
net 21,477 21,934 36,684 38,401
Finance
receivables,
less current
portion 29,193 29,472 26,500 29,688
Pledged finance
receivables,
less current
portion 7,668 11,923 18,623 26,589
Goodwill 57,388 60,513 60,419 61,598
Intangible
assets, net 74,142 74,557 75,371 31,795
Other assets 74,872 72,197 68,379 64,675
----------- ----------- ----------- -----------
$1,397,289 $1,300,400 $1,252,492 $1,215,263
=========== =========== =========== ===========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Current
liabilities
Short-term
debt and
current
portion of
long-term
debt $8,484 $8,447 $6,515 $1,486
Current
portion of
limited
recourse debt
from finance
receivables
monetizations 16,001 16,531 26,558 29,045
Accounts
payable 233,746 221,342 187,591 200,281
Accrued
expenses 168,513 120,444 139,689 141,039
----------- ----------- ----------- -----------
Total current
liabilities 426,744 366,764 360,353 371,851
Long-term debt,
less current
portion 207,378 215,084 221,888 221,470
Limited
recourse debt
from finance
receivables
monetizations,
less current
portion 7,718 11,985 18,760 26,876
Accrued post-
retirement
benefits 25,748 25,193 31,797 31,455
Other long-term
liabilities 19,984 23,152 22,117 28,464
Provisions for
contingencies 34,285 32,486 30,707 28,007
Shareholders'
equity
Capital stock:
Authorized
shares:
200,000 at
$.20 par
value
Issued
shares:
106,751;
fiscal 2005
- 103,290;
fiscal 2004
- 87,806 21,350 21,268 21,100 20,666
Additional
paid-in
capital 209,290 206,710 193,021 165,119
Retained
earnings 458,276 410,937 365,280 338,124
Unearned
compensation - - - -
Accumulated
other
comprehensive
loss (13,484) (13,179) (12,531) (16,769)
----------- ----------- ----------- -----------
Total share-
holders'
equity 675,432 625,736 566,870 507,140
----------- ----------- ----------- -----------
$1,397,289 $1,300,400 $1,252,492 $1,215,263
=========== =========== =========== ===========
July 31, May 1, January October July 31,
2005 2005 30, 2005 31, 2004 2004
----------- ----------- --------- --------- -----------
ASSETS
---------------
Current assets
Cash and cash
equivalents $223,597 $172,480 $24,305 $66,498 $37,656
Trade accounts
and finance
receivables,
net 419,866 377,190 354,350 333,316 400,597
Inventories 169,097 185,370 182,606 170,731 154,405
Assets held
for sale - 3,500 4,300 - -
Other current
assets 56,739 55,253 43,166 45,739 41,058
----------- ----------- --------- --------- -----------
Total current
assets 869,299 793,793 608,727 616,284 633,716
Property, plant
and equipment,
net 85,855 78,270 82,387 89,443 91,504
Equipment held
for rental,
net 22,570 27,220 23,163 26,842 21,190
Finance
receivables,
less current
portion 30,354 31,836 36,992 39,002 33,747
Pledged finance
receivables,
less current
portion 33,649 40,459 50,372 56,413 86,559
Goodwill 61,641 63,134 63,165 63,017 62,885
Intangible
assets, net 32,086 33,465 33,848 34,590 35,240
Other assets 68,143 56,848 80,420 66,991 62,603
----------- ----------- --------- --------- -----------
$1,203,597 $1,125,025 $979,074 $992,582 $1,027,444
=========== =========== ========= ========= ===========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
---------------
Current
liabilities
Short-term
debt and
current
portion of
long-term
debt $1,496 $1,552 $3,744 $1,788 $1,729
Current
portion of
limited
recourse debt
from finance
receivables
monetizations 29,642 29,708 26,660 26,725 32,585
Accounts
payable 200,323 194,588 139,742 150,600 139,990
Accrued
expenses 148,651 116,285 97,795 108,500 118,860
----------- ----------- --------- --------- -----------
Total current
liabilities 380,112 342,133 267,941 287,613 293,164
Long-term debt,
less current
portion 224,197 226,937 302,189 302,088 300,011
Limited
recourse debt
from finance
receivables
monetizations,
less current
portion 34,016 40,878 50,941 59,008 89,209
Accrued post-
retirement
benefits 31,113 30,801 30,423 30,211 29,666
Other long-term
liabilities 27,233 24,116 23,536 21,362 20,542
Provisions for
contingencies 28,334 23,922 19,298 15,520 13,582
Shareholders'
equity
Capital stock:
Authorized
shares:
200,000 at
$.20 par
value
Issued
shares:
106,751;
fiscal 2005
- 103,290;
fiscal 2004
- 87,806 20,658 20,390 17,880 17,814 17,562
Additional
paid-in
capital 170,367 153,779 28,147 26,204 20,790
Retained
earnings 310,516 275,077 252,579 245,319 254,268
Unearned
compensation (7,397) (2,642) (3,433) (4,019) (5,333)
Accumulated
other
comprehensive
loss (15,552) (10,366) (10,427) (8,538) (6,017)
----------- ----------- --------- --------- -----------
Total share-
holders'
equity 478,592 436,238 284,746 276,780 281,270
----------- ----------- --------- --------- -----------
$1,203,597 $1,125,025 $979,074 $992,582 $1,027,444
=========== =========== ========= ========= ===========
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(in thousands)
(Quarterly data is unaudited)
Fiscal
Year
Ended Quarter Ended
July 31, July 31, April 30, Jan. 29, Oct. 30,
2006 2006 2006 2006 2005
--------- --------- --------- --------- ---------
OPERATIONS
Net income (loss) $149,344 $47,871 $46,187 $27,420 $27,866
Adjustments to
reconcile net
income (loss) to
cash flow from
operating
activities:
Gain related to
sale of Gradall
excavator product
line (14,572) - (14,572) - -
(Gain) loss on
sale of property,
plant and
equipment (383) (359) 5 57 (86)
Gain on sale of
equipment held
for rental (13,745) (506) (7,555) (5,612) (72)
Non-cash charges
and credits:
Depreciation and
amortization 28,551 6,410 7,701 7,907 6,533
Other 24,377 971 11,238 5,137 7,031
Changes in
selected working
capital items:
Accounts
receivable (45,350) (58,188) (13,080) (13,268) 39,186
Inventories (64,712) 5,470 10,368 (30,523) (50,027)
Accounts payable 42,312 12,405 35,610 (5,669) (34)
Other operating
assets and
liabilities 33,484 29,722 9,160 (6,722) 1,324
Changes in finance
receivables (2,315) 3,394 (3,645) (3,415) 1,351
Changes in pledged
finance
receivables (627) (65) (133) (233) (196)
Changes in other
assets and
liabilities (17,613) 1,035 (11,506) (3,720) (3,422)
--------- --------- --------- --------- ---------
Cash flow from
operating
activities 118,751 48,160 69,778 (28,641) 29,454
INVESTMENTS
Purchases of
property, plant
and equipment (32,597) (16,065) (9,643) (3,744) (3,145)
Proceeds from the
sale of property,
plant and
equipment 739 587 16 34 102
Purchases of
equipment held for
rental (43,527) (4,246) (11,890) (9,270) (18,121)
Proceeds from the
sale of equipment
held for rental 50,552 3,413 32,396 14,305 438
Proceeds from the
sale of Gradall
excavator product
line 32,992 576 32,416 - -
Cash portion of
acquisitions (47,093) - (58) (47,035) -
Other 150 (204) 422 (40) (28)
--------- --------- --------- --------- ---------
Cash flow used for
investing
activities (38,784) (15,939) 43,659 (45,750) (20,754)
FINANCING
Net issuance
(repayment) of
short-term debt 52 14 26 23 (11)
Issuance of long-
term debt 10,000 - 10,000 - -
Repayment of long-
term debt (21,455) (8,584) (12,678) (96) (97)
Issuance of limited
recourse debt - - - - -
Repayment of
limited recourse
debt - - - - -
Payment of
dividends (1,584) (532) (530) (264) (258)
Net proceeds from
issuance of common
stock - - - - -
Cash proceeds
received from the
exercise of stock
options 18,494 493 4,510 13,327 164
Excess tax benefits
from stock-based
compensation 20,384 - 7,323 13,017 44
--------- --------- --------- --------- ---------
Cash flow from
financing
activities 25,891 (8,609) 8,651 26,007 (158)
CURRENCY ADJUSTMENTS
Effect of exchange
rate changes on
cash (1,359) (411) (537) 781 (1,192)
CASH AND CASH
EQUIVALENTS
Net change in cash
and cash
equivalents 104,499 23,201 121,551 (47,603) 7,350
Beginning balance 223,597 304,895 183,344 230,947 223,597
--------- --------- --------- --------- ---------
Ending balance $328,096 $328,096 $304,895 $183,344 $230,947
========= ========= ========= ========= =========
Fiscal
Year
Ended Quarter Ended
July 31, July 31, May 1, Jan. 30, Oct. 31,
2005 2005 2005 2005 2004
--------- --------- --------- --------- ---------
OPERATIONS
Net income (loss) $57,173 $35,696 $22,722 $7,484 $(8,729)
Adjustments to
reconcile net
income (loss) to
cash flow from
operating
activities:
Gain related to
sale of Gradall
excavator product
line - - - - -
(Gain) loss on
sale of property,
plant and
equipment 948 828 (22) (19) 161
Gain on sale of
equipment held
for rental (11,711) (3,791) (1,286) (5,334) (1,300)
Non-cash charges
and credits:
Depreciation and
amortization 28,899 7,365 7,488 6,958 7,088
Other 6,986 (5,953) 6,225 3,965 2,749
Changes in
selected working
capital items:
Accounts
receivable (25,948) (42,151) (16,355) (29,659) 62,217
Inventories (15,268) 16,321 (3,463) (11,758) (16,368)
Accounts payable 60,423 5,868 54,834 (10,833) 10,554
Other operating
assets and
liabilities 30,623 38,335 7,188 (2,340) (12,560)
Changes in finance
receivables 1,877 1,459 1,944 6,970 (8,496)
Changes in pledged
finance
receivables 36 (190) (248) (917) 1,391
Changes in other
assets and
liabilities 8,374 495 21,946 (12,920) (1,147)
--------- --------- --------- --------- ---------
Cash flow from
operating
activities 142,412 54,282 100,973 (48,403) 35,560
INVESTMENTS
Purchases of
property, plant
and equipment (15,443) (9,134) (1,342) (2,072) (2,895)
Proceeds from the
sale of property,
plant and
equipment 1,060 24 874 81 81
Purchases of
equipment held for
rental (31,249) (5,590) (6,719) (8,851) (10,089)
Proceeds from the
sale of equipment
held for rental 35,065 11,775 3,103 16,037 4,150
Proceeds from the
sale of Gradall
excavator product
line - - - - -
Cash portion of
acquisitions (105) - - (105) -
Other 366 (35) 503 (56) (46)
--------- --------- --------- --------- ---------
Cash flow used for
investing
activities (10,306) (2,960) (3,581) 5,034 (8,799)
FINANCING
Net issuance
(repayment) of
short-term debt (6) (58) (1,961) 1,955 58
Issuance of long-
term debt 156,018 (38) 26,002 45,038 85,016
Repayment of long-
term debt (232,666) (3,060) (99,374) (45,140) (85,092)
Issuance of limited
recourse debt - - - - -
Repayment of
limited recourse
debt - - - - -
Payment of
dividends (925) (257) (224) (224) (220)
Net proceeds from
issuance of common
stock 119,421 (113) 119,534 - -
Cash proceeds
received from the
exercise of stock
options 19,826 6,750 6,714 1,276 5,086
Excess tax benefits
from stock-based
compensation - - - - -
--------- --------- --------- --------- ---------
Cash flow from
financing
activities 61,668 3,224 50,691 2,905 4,848
CURRENCY ADJUSTMENTS
Effect of exchange
rate changes on
cash (7,833) (3,429) 92 (1,729) (2,767)
CASH AND CASH
EQUIVALENTS
Net change in cash
and cash
equivalents 185,941 51,117 148,175 (42,193) 28,842
Beginning balance 37,656 172,480 24,305 66,498 37,656
--------- --------- --------- --------- ---------
Ending balance $223,597 $223,597 $172,480 $24,305 $66,498
========= ========= ========= ========= =========
Fiscal
Year
Ended
July 31,
2004
---------
OPERATIONS
Net income (loss) $26,649
Adjustments to
reconcile net
income (loss) to
cash flow from
operating
activities:
Gain related to
sale of Gradall
excavator product
line -
(Gain) loss on
sale of property,
plant and
equipment 319
Gain on sale of
equipment held
for rental (12,451)
Non-cash charges
and credits:
Depreciation and
amortization 25,681
Other 17,006
Changes in
selected working
capital items:
Accounts
receivable (66,296)
Inventories 9,188
Accounts payable 33,207
Other operating
assets and
liabilities 13,506
Changes in finance
receivables (6,112)
Changes in pledged
finance
receivables (14,866)
Changes in other
assets and
liabilities (11,090)
---------
Cash flow from
operating
activities 14,741
INVESTMENTS
Purchases of
property, plant
and equipment (12,387)
Proceeds from the
sale of property,
plant and
equipment 90
Purchases of
equipment held for
rental (26,689)
Proceeds from the
sale of equipment
held for rental 33,269
Proceeds from the
sale of Gradall
excavator product
line -
Cash portion of
acquisitions (109,557)
Other 333
---------
Cash flow used for
investing
activities (114,941)
FINANCING
Net issuance
(repayment) of
short-term debt 27
Issuance of long-
term debt 351,999
Repayment of long-
term debt (362,506)
Issuance of limited
recourse debt 13,979
Repayment of
limited recourse
debt (253)
Payment of
dividends (871)
Net proceeds from
issuance of common
stock -
Cash proceeds
received from the
exercise of stock
options 2,414
Excess tax benefits
from stock-based
compensation -
---------
Cash flow from
financing
activities 4,789
CURRENCY ADJUSTMENTS
Effect of exchange
rate changes on
cash 258
CASH AND CASH
EQUIVALENTS
Net change in cash
and cash
equivalents (95,153)
Beginning balance 132,809
---------
Ending balance $37,656
=========
JLG INDUSTRIES, INC.
CONSOLIDATED SELECTED SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
(Quarterly data is unaudited)
Fiscal Year
Ended Quarter Ended
July 31, July 31, April 30, Jan. 29, Oct. 30,
2006 2006 2006 2006 2005
----------- --------- --------- --------- ---------
SEGMENT
INFORMATION
REVENUES:
North American
Distribution $1,704,030 $509,653 $462,772 $369,725 $361,880
European
Distribution 407,143 137,233 124,521 83,062 62,327
Rest of World
Distribution 166,820 37,985 40,051 38,329 50,455
Access Financial
Solutions 11,403 2,761 2,271 3,310 3,061
----------- --------- --------- --------- ---------
$2,289,396 $687,632 $629,615 $494,426 $477,723
=========== ========= ========= ========= =========
SEGMENT PROFIT
(LOSS):
North American
Distribution $254,167 $79,554 $75,997 $47,903 $50,713
European
Distribution 38,969 14,082 16,032 6,659 2,196
Rest of World
Distribution 39,411 7,966 8,304 9,001 14,140
Access Financial
Solutions 4,937 1,544 1,139 1,166 1,088
Corporate
expense (77,585) (25,419) (17,443) (15,891) (18,832)
----------- --------- --------- --------- ---------
Segment profit
(loss) 259,899 77,727 84,029 48,838 49,305
Add: AFS'
interest
expense 3,085 467 661 896 1,061
----------- --------- --------- --------- ---------
Operating Income
(Loss) $262,984 $78,194 $84,690 $49,734 $50,366
=========== ========= ========= ========= =========
PRODUCT GROUP
REVENUES
Aerial work
platforms $1,159,778 $360,367 $320,827 $234,710 $243,874
Telehandlers 776,001 254,546 202,637 160,715 158,103
Excavators 26,798 - 865 16,902 9,031
After-sales
service and
support,
including
parts sales, and
used and
reconditioned
equipment sales 305,745 67,876 100,357 76,084 61,428
Financial products 11,093 2,647 2,216 3,256 2,974
Rentals 9,981 2,196 2,713 2,759 2,313
----------- --------- --------- --------- ---------
$2,289,396 $687,632 $629,615 $494,426 $477,723
=========== ========= ========= ========= =========
GEOGRAPHIC
REVENUES
United States $1,678,674 $500,788 $456,630 $366,343 $354,913
Europe 408,513 138,010 124,621 83,349 62,533
Other
international 202,209 48,834 48,364 44,734 60,277
----------- --------- --------- --------- ---------
$2,289,396 $687,632 $629,615 $494,426 $477,723
=========== ========= ========= ========= =========
Fiscal Year
Ended Quarter Ended
July 31, July 31, May 1, Jan. 30, Oct. 31,
2005 2005 2005 2005 2004
----------- --------- --------- --------- ---------
SEGMENT
INFORMATION
REVENUES:
North American
Distribution $1,329,682 $444,383 $387,442 $258,793 $239,064
European
Distribution 261,602 82,426 85,960 56,631 36,585
Rest of World
Distribution 129,995 38,390 28,506 34,866 28,233
Access Financial
Solutions 13,751 4,380 3,448 3,144 2,779
----------- --------- --------- --------- ---------
$1,735,030 $569,579 $505,356 $353,434 $306,661
=========== ========= ========= ========= =========
SEGMENT PROFIT
(LOSS):
North American
Distribution $114,255 $64,422 $48,275 $12,113 $(10,555)
European
Distribution 21,489 4,564 8,630 5,878 2,417
Rest of World
Distribution 32,475 10,084 7,047 8,218 7,126
Access Financial
Solutions 4,420 2,303 1,211 712 194
Corporate
expense (58,774) (22,854) (15,344) (10,766) (9,810)
----------- --------- --------- --------- ---------
Segment profit
(loss) 113,865 58,519 49,819 16,155 (10,628)
Add: AFS'
interest
expense 6,396 1,203 1,448 1,452 2,293
----------- --------- --------- --------- ---------
Operating Income
(Loss) $120,261 $59,722 $51,267 $17,607 $(8,335)
=========== ========= ========= ========= =========
PRODUCT GROUP
REVENUES
Aerial work
platforms $888,073 $313,962 $278,071 $171,517 $124,523
Telehandlers 511,766 157,948 141,660 92,490 119,668
Excavators 61,562 18,144 17,864 17,213 8,341
After-sales
service and
support,
including
parts sales, and
used and
reconditioned
equipment sales 252,381 73,751 62,304 66,727 49,599
Financial products 11,915 2,826 3,373 3,056 2,660
Rentals 9,333 2,948 2,084 2,431 1,870
----------- --------- --------- --------- ---------
$1,735,030 $569,579 $505,356 $353,434 $306,661
=========== ========= ========= ========= =========
GEOGRAPHIC
REVENUES
United States $1,311,450 $437,066 $379,624 $256,027 $238,733
Europe 264,032 84,126 86,224 56,819 36,863
Other
international 159,548 48,387 39,508 40,588 31,065
----------- --------- --------- --------- ---------
$1,735,030 $569,579 $505,356 $353,434 $306,661
=========== ========= ========= ========= =========
Fiscal Year
Ended
July 31,
2004
-----------
SEGMENT
INFORMATION
REVENUES:
North American
Distribution $930,802
European
Distribution 177,392
Rest of World
Distribution 69,870
Access Financial
Solutions 15,898
-----------
$1,193,962
===========
SEGMENT PROFIT
(LOSS):
North American
Distribution $92,512
European
Distribution 3,765
Rest of World
Distribution 15,293
Access Financial
Solutions 1,695
Corporate
expense (48,274)
-----------
Segment profit
(loss) 64,991
Add: AFS'
interest
expense 10,915
-----------
Operating Income
(Loss) $75,906
===========
PRODUCT GROUP
REVENUES
Aerial work
platforms $562,056
Telehandlers 358,865
Excavators 52,689
After-sales
service and
support,
including
parts sales, and
used and
reconditioned
equipment sales 196,576
Financial products 15,203
Rentals 8,573
-----------
$1,193,962
===========
GEOGRAPHIC
REVENUES
United States $923,696
Europe 178,392
Other
international 91,874
-----------
$1,193,962
===========
JLG INDUSTRIES, INC.
EBITDA
QUARTERLY PERIODS
(in thousands)
July 31, April 30, January 29, October 30, July 31,
2006 2006 (1) 2006 2005 2005
-------- --------- ----------- ----------- --------
Net income (loss) $47,871 $46,187 $27,420 $27,866 $35,696
Interest expense 6,351 6,565 8,378 5,977 6,326
Income tax
provision
(benefit) 27,602 30,499 15,695 18,968 21,716
Depreciation and
amortization 6,410 7,701 7,907 6,533 7,365
-------- --------- ----------- ----------- --------
EBITDA $88,234 $90,952 $59,400 $59,344 $71,103
======== ========= =========== =========== ========
May 1, January 30, October 31, July 31,
2005 2005 2004 2004
-------- ----------- ----------- --------
Net income (loss) $22,722 $7,484 ($8,729) $15,271
Interest expense 8,554 8,322 8,996 9,274
Income tax
provision
(benefit) 15,022 4,347 (5,170) 8,748
Depreciation and
amortization 7,488 6,958 7,088 5,070
-------- ----------- ----------- --------
EBITDA $53,786 $27,111 $2,185 $38,363
======== =========== =========== ========
(1) Includes gain on the sale of the Gradall excavator product line.
We 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 (loss) before interest, taxes and depreciation
and amortization. EBITDA as presented differs from measures of EBITDA
calculated for purposes of financial covenants in our note indentures
and senior credit facilities.
JLG INDUSTRIES, INC.
EBITDA AND EBITDA MARGINS
TRAILING TWELVE MONTH PERIODS
(in thousands)
July 31, April 30, January 29,
2006 (1) 2006 (1) 2006
----------- ----------- -----------
Net income $149,344 $137,169 $113,704
Interest expense 27,271 27,246 29,235
Income tax provision 92,764 86,878 71,401
Depreciation and amortization 28,551 29,506 29,293
----------- ----------- -----------
EBITDA $297,930 $280,799 $243,633
=========== =========== ===========
Revenues $2,289,396 $2,171,343 $2,047,084
=========== =========== ===========
EBITDA Margin 13.0% 12.9% 11.9%
=========== =========== ===========
October 30, July 31, May 1,
2005 2005 2005
----------- ----------- -----------
Net income $93,768 $57,173 $36,748
Interest expense 29,179 32,198 35,146
Income tax provision 60,053 35,915 22,947
Depreciation and amortization 28,344 28,899 26,604
----------- ----------- -----------
EBITDA $211,344 $154,185 $121,445
=========== =========== ===========
Revenues $1,906,092 $1,735,030 $1,590,611
=========== =========== ===========
EBITDA Margin 11.1% 8.9% 7.6%
=========== =========== ===========
January 30, October 31, July 31,
2005 2004 2004
----------- ----------- -----------
Net income $22,713 $17,387 $26,649
Interest expense 35,992 37,218 38,098
Income tax provision 12,815 9,765 15,232
Depreciation and amortization 26,475 26,283 25,681
----------- ----------- -----------
EBITDA $97,995 $90,653 $105,660
=========== =========== ===========
Revenues $1,403,942 $1,287,038 $1,193,962
=========== =========== ===========
EBITDA Margin 7.0% 7.0% 8.8%
=========== =========== ===========
(1) Includes gain on the sale of the Gradall excavator product line.
We 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 from measures of EBITDA
calculated for purposes of financial covenants in our note indentures
and senior credit facilities.
JLG INDUSTRIES, INC.
NET DEBT
(in thousands)
July 31, April 30, January October July 31,
2006 2006 29, 2006 30, 2005 2005
---------- --------- ------------------- ---------
Revolving credit
facilities $- $- $- $- $-
Cash management
facilities - - - - -
$125 million senior
notes 89,545 97,545 109,975 109,975 109,975
$175 million senior
subordinated notes 113,750 113,750 113,750 113,750 113,750
Miscellaneous debt 18,886 19,455 9,678 4,751 4,859
Fair value of
interest rate swaps (8,898) (9,908) (7,799) (8,428) (5,909)
Gain on terminated
interest rate swap 2,579 2,689 2,799 2,908 3,018
---------- --------- --------- --------- ---------
Bank debt and
notes 215,862 223,531 228,403 222,956 225,693
Limited recourse
debt from finance
receivables
monetizations * 23,719 28,516 45,318 55,921 63,658
---------- --------- --------- --------- ---------
Total balance
sheet debt 239,581 252,047 273,721 278,877 289,351
---------- --------- --------- --------- ---------
Net present value of
off-balance sheet
rental fleet lease - - - - -
Net present value of
off-balance sheet
production
equipment leases - - - - -
---------- --------- --------- --------- ---------
Total off-
balance sheet
financing - - - - -
---------- --------- --------- --------- ---------
Total balance
sheet debt and
off-balance
sheet
financing 239,581 252,047 273,721 278,877 289,351
Less: cash and cash
equivalents 328,096 304,895 183,344 230,947 223,597
Less: limited
recourse debt from
finance receivables
monetizations 23,719 28,516 45,318 55,921 63,658
---------- --------- --------- --------- ---------
Net debt ($112,234) $(81,364) $45,059 $(7,991) $2,096
========== ========= ========= ========= =========
Shareholders' Equity $675,432 $625,736 $566,870 $507,140 $478,592
========== ========= ========= ========= =========
Net Debt-to-Net Debt
plus Shareholders'
Equity - - 7% - -
========== ========= ========= ========= =========
Total Balance Sheet
Debt-to-Total
Balance Sheet Debt
plus Shareholders'
Equity 26% 29% 33% 35% 38%
========== ========= ========= ========= =========
* Maximum loss
exposure under loss
pool agreements
related to finance
receivable
monetizations $8,818 $8,818 $11,346 $11,855 $22,160
========== ========= ========= ========= =========
May 1, January October July 31,
2005 30, 2005 31, 2004 2004
---------- ---------- --------- ---------
Revolving credit
facilities $- $- $- $-
Cash management
facilities - 1,944 - -
$125 million senior
notes 112,975 125,000 125,000 125,000
$175 million senior
subordinated notes 113,750 175,000 175,000 175,000
Miscellaneous debt 5,014 5,128 5,219 5,236
Fair value of
interest rate swaps (6,378) (6,120) (6,492) (8,814)
Gain on terminated
interest rate swap 3,128 4,981 5,149 5,318
---------- ---------- --------- ---------
Bank debt and
notes 228,489 305,933 303,876 301,740
Limited recourse
debt from finance
receivables
monetizations * 70,586 77,601 85,733 121,794
---------- ---------- --------- ---------
Total balance
sheet debt 299,075 383,534 389,609 423,534
---------- ---------- --------- ---------
Net present value of
off-balance sheet
rental fleet lease 656 755 1,012 1,070
Net present value of
off-balance sheet
production
equipment leases 2,583 3,709 3,991 4,399
---------- ---------- --------- ---------
Total off-
balance sheet
financing 3,239 4,464 5,003 5,469
---------- ---------- --------- ---------
Total balance
sheet debt and
off-balance
sheet
financing 302,314 387,998 394,612 429,003
Less: cash and cash
equivalents 172,480 24,305 66,498 37,656
Less: limited
recourse debt from
finance receivables
monetizations 70,586 77,601 85,733 121,794
---------- ---------- --------- ---------
Net debt $59,248 $286,092 $242,381 $269,553
========== ========== ========= =========
Shareholders' Equity $436,238 $284,746 $276,780 $281,270
========== ========== ========= =========
Net Debt-to-Net Debt
plus Shareholders'
Equity 12% 50% 47% 49%
========== ========== ========= =========
Total Balance Sheet
Debt-to-Total
Balance Sheet Debt
plus Shareholders'
Equity 41% 57% 58% 60%
========== ========== ========= =========
* Maximum loss
exposure under loss
pool agreements
related to finance
receivable
monetizations $22,168 $22,168 $22,168 $22,198
========== ========== ========= =========
We 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 monetizations of
customer finance receivables.
JLG INDUSTRIES, INC.
FREE CASH FLOW
(in thousands)
Fiscal
Year Quarter Ended
Ended July April January October
July 31, 31, 30, 29, 30,
2006 2006 2006 2006 2005
--------- -------- --------- --------- --------
Net income (loss) $149,344 $47,871 $46,187 $27,420 $27,866
Adjustments to
reconcile net income
(loss) to cash flow
from operating
activities:
Non-cash items 24,228 6,516 (3,183) 7,489 13,406
Accounts receivable (45,350) (58,188) (13,080) (13,268) 39,186
Inventories (64,712) 5,470 10,368 (30,523) (50,027)
Other current assets 17,653 (7,860) 11,633 4,345 9,535
Accounts payable 42,312 12,405 35,610 (5,669) (34)
Accrued expenses 15,831 37,582 (2,473) (11,067) (8,211)
Finance receivables (2,315) 3,394 (3,645) (3,415) 1,351
Other cash from
operations (17,613) 1,035 (11,506) (3,720) (3,422)
Purchases of property,
plant and equipment (32,597) (16,065) (9,643) (3,744) (3,145)
Proceeds from the sale
of property, plant
and equipment 739 587 16 34 102
Purchases of equipment
held for rental (43,527) (4,246) (11,890) (9,270) (18,121)
Proceeds from the sale
of equipment held for
rental 50,552 3,413 32,396 14,305 438
Proceeds from the sale
of Gradall excavator
product line 32,992 576 32,416 - -
Cash portion of
acquisitions (47,093) - (58) (47,035) -
Other cash from
investments 150 (204) 422 (40) (28)
Payment of dividends (1,584) (532) (530) (264) (258)
Net proceeds from
issuance of common
stock - - - - -
Cash proceeds received
from the exercise of
stock options 18,494 493 4,510 13,327 164
Excess tax benefits
from stock-based
compensation 20,384 - 7,323 13,017 44
Effect of exchange
rate changes on cash (1,359) (411) (537) 781 (1,192)
Seller financing (5,000) - - (5,000) -
Capital lease assumed
in OmniQuip
acquisition - - - - -
Debt assumed in Delta
acquisition - - - - -
Other (1) 2,801 (966) 2,087 (753) 2,433
--------- -------- --------- --------- --------
Free Cash Flow $114,330 $30,870 $126,423 $(53,050) $10,087
========= ======== ========= ========= ========
Fiscal
Year Quarter Ended
Ended July May January October
July 31, 31, 1, 30, 31,
2005 2005 2005 2005 2004
--------- -------- --------- --------- --------
Net income (loss) $57,173 $35,696 $22,722 $7,484 ($8,729)
Adjustments to
reconcile net income
(loss) to cash flow
from operating
activities:
Non-cash items 25,122 (1,551) 12,405 5,570 8,698
Accounts receivable (25,948) (42,151) (16,355) (29,659) 62,217
Inventories (15,268) 16,321 (3,463) (11,758) (16,368)
Other current assets (12,553) 899 (14,132) 3,497 (2,817)
Accounts payable 60,423 5,868 54,834 (10,833) 10,554
Accrued expenses 43,176 37,436 21,320 (5,837) (9,743)
Finance receivables 1,877 1,459 1,944 6,970 (8,496)
Other cash from
operations 8,374 495 21,946 (12,920) (1,147)
Purchases of property,
plant and equipment (15,443) (9,134) (1,342) (2,072) (2,895)
Proceeds from the sale
of property, plant
and equipment 1,060 24 874 81 81
Purchases of equipment
held for rental (31,249) (5,590) (6,719) (8,851) (10,089)
Proceeds from the sale
of equipment held for
rental 35,065 11,775 3,103 16,037 4,150
Proceeds from the sale
of Gradall excavator
product line - - - - -
Cash portion of
acquisitions (105) - - (105) -
Other cash from
investments 366 (35) 503 (56) (46)
Payment of dividends (925) (257) (224) (224) (220)
Net proceeds from
issuance of common
stock 119,421 (113) 119,534 - -
Cash proceeds received
from the exercise of
stock options 19,826 6,750 6,714 1,276 5,086
Excess tax benefits
from stock-based
compensation - - - - -
Effect of exchange
rate changes on cash (7,833) (3,429) 92 (1,729) (2,767)
Seller financing - - - - -
Capital lease assumed
in OmniQuip
acquisition - - - - -
Debt assumed in Delta
acquisition - - - - -
Other (1) 4,898 2,689 3,088 (582) (297)
--------- -------- --------- --------- --------
Free Cash Flow $267,457 $57,152 $226,844 ($43,711) $27,172
========= ======== ========= ========= ========
Fiscal
Year
Ended
July
31,
2004
---------
Net income (loss) $26,649
Adjustments to
reconcile net income
(loss) to cash flow
from operating
activities:
Non-cash items 30,555
Accounts receivable (66,296)
Inventories 9,188
Other current assets 8,780
Accounts payable 33,207
Accrued expenses 4,726
Finance receivables (6,112)
Other cash from
operations (11,090)
Purchases of property,
plant and equipment (12,387)
Proceeds from the sale
of property, plant
and equipment 90
Purchases of equipment
held for rental (26,689)
Proceeds from the sale
of equipment held for
rental 33,269
Proceeds from the sale
of Gradall excavator
product line -
Cash portion of
acquisitions (109,557)
Other cash from
investments 333
Payment of dividends (871)
Net proceeds from
issuance of common
stock -
Cash proceeds received
from the exercise of
stock options 2,414
Excess tax benefits
from stock-based
compensation -
Effect of exchange
rate changes on cash 258
Seller financing (10,000)
Capital lease assumed
in OmniQuip
acquisition (3,630)
Debt assumed in Delta
acquisition (103)
Other (1) (1,184)
---------
Free Cash Flow ($98,450)
=========
(1) Includes changes in 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, cash proceeds received
from the exercise of stock options, excess tax benefits from
stock-based compensation 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.
STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
CONSOLIDATED
JLG Industries, Inc. and
Consolidated Subsidiaries
--------------------------
Fiscal Year Ended July 31,
2006 2005
------------ ------------
Revenues
Net sales $2,268,322 $1,713,782
Financial products 11,093 11,915
Rentals 9,981 9,333
------------ ------------
2,289,396 1,735,030
Cost of sales 1,846,371 1,447,785
------------ ------------
Gross profit 443,025 287,245
Selling and administrative expenses 164,362 142,383
Product development expenses 30,251 24,601
Gain related to sale of Gradall excavator
product line (14,572) -
------------ ------------
Income from operations 262,984 120,261
Other income (deductions):
Interest expense, net of interest income (17,710) (28,609)
Miscellaneous, net (3,166) 1,436
------------ ------------
Income before taxes 242,108 93,088
Income tax provision 92,764 35,915
Equity in income of Access Financial
Solutions - -
------------ ------------
Net income $149,344 $57,173
============ ============
Earnings per common share $1.43 $.61
============ ============
Earnings per common share -
assuming dilution $1.40 $.60
============ ============
Cash dividends per share $.015 $.01
============ ============
Weighted average shares outstanding 104,294 93,058
============ ============
Weighted average shares outstanding -
assuming dilution 106,518 95,586
============ ============
EQUIPMENT OPERATIONS
JLG Industries, Inc. with
Access
Financial Solutions on the
Equity Basis
--------------------------
Fiscal Year Ended July 31,
2006 2005
------------ ------------
Revenues
Net sales $2,268,322 $1,713,782
Financial products - -
Rentals 9,671 7,497
------------ ------------
2,277,993 1,721,279
Cost of sales 1,846,200 1,446,935
------------ ------------
Gross profit 431,793 274,344
Selling and administrative expenses 161,152 140,298
Product development expenses 30,251 24,601
Gain related to sale of Gradall excavator
product line (14,572) -
------------ ------------
Income from operations 254,962 109,445
Other income (deductions):
Interest expense, net of interest income (14,625) (22,213)
Miscellaneous, net (3,166) 1,436
------------ ------------
Income before taxes 237,171 88,668
Income tax provision 90,872 34,209
Equity in income of Access Financial
Solutions 3,045 2,714
------------ ------------
Net income $149,344 $57,173
============ ============
Earnings per common share
Earnings per common share -
assuming dilution
Cash dividends per share
Weighted average shares outstanding
Weighted average shares outstanding -
assuming dilution
FINANCIAL SERVICES
Access Financial Solutions
--------------------------
Fiscal Year Ended July 31,
2006 2005
------------ ------------
Revenues
Net sales $- $-
Financial products 11,093 11,915
Rentals 310 1,836
------------ ------------
11,403 13,751
Cost of sales 171 850
------------ ------------
Gross profit 11,232 12,901
Selling and administrative expenses 3,210 2,085
Product development expenses - -
Gain related to sale of Gradall excavator
product line - -
------------ ------------
Income from operations 8,022 10,816
Other income (deductions):
Interest expense, net of interest income (3,085) (6,396)
Miscellaneous, net - -
------------ ------------
Income before taxes 4,937 4,420
Income tax provision 1,892 1,706
Equity in income of Access Financial
Solutions - -
------------ ------------
Net income $3,045 $2,714
============ ============
Earnings per common share
Earnings per common share -
assuming dilution
Cash dividends per share
Weighted average shares outstanding
Weighted average shares outstanding -
assuming dilution
JLG INDUSTRIES, INC.
BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
CONSOLIDATED
JLG Industries, Inc. and
Consolidated Subsidiaries
---------------------------------------
July 31,
2006 2005
------------------- -------------------
ASSETS
-------------------------------
Current assets
Cash and cash equivalents $328,096 $223,597
Trade accounts and finance
receivables - net 445,631 419,866
Inventories 212,864 169,097
Other current assets 47,613 56,739
------------------- -------------------
Total current assets 1,034,204 869,299
Property, plant and equipment -
net 98,345 85,855
Equipment held for rental - net 21,477 22,570
Finance receivables, less
current portion 29,193 30,354
Pledged receivables, less
current portion 7,668 33,649
Goodwill 57,388 61,641
Intangible assets - net 74,142 32,086
Investment in Access Financial
Solutions - -
Receivable from Access
Financial Solutions - -
Other assets 74,872 68,143
------------------- -------------------
$1,397,289 $1,203,597
=================== ===================
LIABILITIES AND SHAREHOLDERS'
EQUITY
-------------------------------
Current liabilities
Short-term debt and current
portion of long-term debt $8,484 $1,496
Current portion of limited
recourse debt from finance
receivables monetizations 16,001 29,642
Accounts payable 233,746 200,323
Accrued expenses 168,513 148,651
------------------- -------------------
Total current liabilities 426,744 380,112
Long-term debt, less current
portion 207,378 224,197
Limited recourse debt from
finance receivables
monetizations, less current
portion 7,718 34,016
Payable to JLG Industries, Inc. - -
Accrued post-retirement
benefits 25,748 31,113
Other long-term liabilities 19,984 27,233
Provisions for contingencies 34,285 28,334
Shareholders' equity
Capital stock:
Authorized shares: 200,000
at $.20 par value
Issued and outstanding
shares: 106,751 shares;
fiscal 2005 - 103,290
shares 21,350 20,658
Additional paid-in capital 209,290 170,367
Retained earnings 458,276 310,516
Unearned compensation - (7,397)
Accumulated other
comprehensive loss (13,484) (15,552)
------------------- -------------------
Total shareholders' equity 675,432 478,592
------------------- -------------------
$1,397,289 $1,203,597
=================== ===================
EQUIPMENT OPERATIONS
JLG Industries, Inc. with Access
Financial Solutions on the Equity Basis
---------------------------------------
July 31,
2006 2005
------------------- -------------------
ASSETS
-------------------------------
Current assets
Cash and cash equivalents $328,096 $223,597
Trade accounts and finance
receivables - net 405,003 373,417
Inventories 212,864 169,097
Other current assets 47,613 56,739
------------------- -------------------
Total current assets 993,576 822,850
Property, plant and equipment -
net 98,253 85,698
Equipment held for rental - net 21,384 22,259
Finance receivables, less
current portion - -
Pledged receivables, less
current portion - -
Goodwill 57,388 61,641
Intangible assets - net 74,142 32,086
Investment in Access Financial
Solutions 43,530 40,485
Receivable from Access
Financial Solutions 8,403 5,868
Other assets 74,899 68,009
------------------- -------------------
$1,371,575 $1,138,896
=================== ===================
LIABILITIES AND SHAREHOLDERS'
EQUITY
-------------------------------
Current liabilities
Short-term debt and current
portion of long-term debt $8,484 $1,496
Current portion of limited
recourse debt from finance
receivables monetizations - -
Accounts payable 233,746 200,323
Accrued expenses 168,458 148,615
------------------- -------------------
Total current liabilities 410,688 350,434
Long-term debt, less current
portion 207,378 224,197
Limited recourse debt from
finance receivables
monetizations, less current
portion - -
Payable to JLG Industries, Inc. - -
Accrued post-retirement
benefits 25,748 31,113
Other long-term liabilities 19,984 27,233
Provisions for contingencies 32,345 27,327
Shareholders' equity
Capital stock:
Authorized shares: 200,000
at $.20 par value
Issued and outstanding
shares: 106,751 shares;
fiscal 2005 - 103,290
shares 21,350 20,658
Additional paid-in capital 209,290 170,367
Retained earnings 458,276 310,516
Unearned compensation - (7,397)
Accumulated other
comprehensive loss (13,484) (15,552)
------------------- -------------------
Total shareholders' equity 675,432 478,592
------------------- -------------------
$1,371,575 $1,138,896
=================== ===================
FINANCIAL SERVICES
Access Financial Solutions
---------------------------------------
July 31,
2006 2005
------------------- -------------------
ASSETS
-------------------------------
Current assets
Cash and cash equivalents $- $-
Trade accounts and finance
receivables - net 40,628 46,449
Inventories - -
Other current assets - -
------------------- -------------------
Total current assets 40,628 46,449
Property, plant and equipment -
net 92 157
Equipment held for rental - net 93 311
Finance receivables, less
current portion 29,193 30,354
Pledged receivables, less
current portion 7,668 33,649
Goodwill - -
Intangible assets - net - -
Investment in Access Financial
Solutions - -
Receivable from Access
Financial Solutions - -
Other assets (27) 134
------------------- -------------------
$77,647 $111,054
=================== ===================
LIABILITIES AND SHAREHOLDERS'
EQUITY
-------------------------------
Current liabilities
Short-term debt and current
portion of long-term debt $- $-
Current portion of limited
recourse debt from finance
receivables monetizations 16,001 29,642
Accounts payable - -
Accrued expenses 55 36
------------------- -------------------
Total current liabilities 16,056 29,678
Long-term debt, less current
portion - -
Limited recourse debt from
finance receivables
monetizations, less current
portion 7,718 34,016
Payable to JLG Industries, Inc. 8,403 5,868
Accrued post-retirement
benefits - -
Other long-term liabilities - -
Provisions for contingencies 1,940 1,007
Shareholders' equity
Capital stock:
Authorized shares: 200,000
at $.20 par value
Issued and outstanding
shares: 106,751 shares;
fiscal 2005 - 103,290
shares 30,000 30,000
Additional paid-in capital - -
Retained earnings 13,530 10,485
Unearned compensation - -
Accumulated other
comprehensive loss - -
------------------- -------------------
Total shareholders' equity 43,530 40,485
------------------- -------------------
$77,647 $111,054
=================== ===================
JLG INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
CONSOLIDATED
JLG Industries, Inc. and
Consolidated Subsidiaries
---------------------------------------
Fiscal Year Ended July 31,
2006 2005
------------------- -------------------
Operations
Net income $149,344 $57,173
Adjustments to reconcile net
income to cash flow from
operating activities:
Gain related to sale of
Gradall excavator
product line (14,572) -
(Gain) loss on sale of
property, plant and
equipment (383) 948
(Gain) loss on sale of
equipment held for
rental (13,745) (11,711)
Non-cash charges and
credits:
Depreciation and
amortization 28,551 28,899
Other 24,377 6,986
Changes in selected
working capital items:
Accounts receivable (45,350) (25,948)
Inventories (64,712) (15,268)
Accounts payable 42,312 60,423
Other operating assets
and liabilities 33,484 30,623
Changes in finance
receivables (2,315) 1,877
Changes in pledged
finance receivables (627) 36
Changes in other assets
and liabilities (17,613) 8,374
------------------- -------------------
Cash flow from operating
activities 118,751 142,412
Investments
Purchases of property, plant
and equipment (32,597) (15,443)
Proceeds from the sale of
property, plant and
equipment 739 1,060
Purchases of equipment held
for rental (43,527) (31,249)
Proceeds from the sale of
equipment held for rental 50,552 35,065
Proceeds from the sale of
excavator product line 32,992 -
Cash portion of acquisitions (47,093) (105)
Investment in income of
Access Financial Solutions - -
Other 150 366
------------------- -------------------
Cash flow used for
investing activities (38,784) (10,306)
Financing
Net increase in short-term
debt 52 (6)
Issuance of long-term debt 10,000 156,018
Repayment of long-term debt (21,455) (232,666)
Change in receivable from
Access Financial Solutions - -
Change in payable to JLG
Industries, Inc. - -
Payment of dividends (1,584) (925)
Net proceeds from issuance of
common stock - 119,421
Cash proceeds received from
the exercise of stock
options 18,494 19,826
Excess tax benefits from
stock-based compensation 20,384 -
------------------- -------------------
Cash flow from financing
activities 25,891 61,668
Currency Adjustments
Effect of exchange rate
changes on cash (1,359) (7,833)
------------------- -------------------
Cash and Cash Equivalents
Net change in cash and cash
equivalents 104,499 185,941
Beginning balance 223,597 37,656
------------------- -------------------
Ending balance $328,096 $223,597
=================== ===================
EQUIPMENT OPERATIONS
JLG Industries, Inc. with Access
Financial Solutions on the Equity Basis
---------------------------------------
Fiscal Year Ended July 31,
2006 2005
------------------- -------------------
Operations
Net income $149,344 $57,173
Adjustments to reconcile net
income to cash flow from
operating activities:
Gain related to sale of
Gradall excavator
product line (14,572) -
(Gain) loss on sale of
property, plant and
equipment (383) 948
(Gain) loss on sale of
equipment held for
rental (13,745) (11,711)
Non-cash charges and
credits:
Depreciation and
amortization 28,281 28,011
Other 23,339 7,503
Changes in selected
working capital items:
Accounts receivable (41,143) (45,612)
Inventories (64,712) (15,268)
Accounts payable 42,312 60,423
Other operating assets
and liabilities 33,465 30,795
Changes in finance
receivables - -
Changes in pledged
finance receivables - -
Changes in other assets
and liabilities (17,870) 7,129
------------------- -------------------
Cash flow from operating
activities 124,316 119,391
Investments
Purchases of property, plant
and equipment (32,597) (15,248)
Proceeds from the sale of
property, plant and
equipment 739 1,060
Purchases of equipment held
for rental (43,527) (31,236)
Proceeds from the sale of
equipment held for rental 50,552 35,065
Proceeds from the sale of
excavator product line 32,992 -
Cash portion of acquisitions (47,093) (105)
Investment in income of
Access Financial Solutions (3,045) (2,714)
Other 150 366
------------------- -------------------
Cash flow used for
investing activities (41,829) (12,812)
Financing
Net increase in short-term
debt 52 (6)
Issuance of long-term debt 10,000 156,018
Repayment of long-term debt (21,455) (232,666)
Change in receivable from
Access Financial Solutions (2,535) 25,530
Change in payable to JLG
Industries, Inc. - -
Payment of dividends (1,584) (925)
Net proceeds from issuance of
common stock - 119,421
Cash proceeds received from
the exercise of stock
options 18,494 19,826
Excess tax benefits from
stock-based compensation 20,384 -
------------------- -------------------
Cash flow from financing
activities 23,356 87,198
Currency Adjustments
Effect of exchange rate
changes on cash (1,344) (7,836)
------------------- -------------------
Cash and Cash Equivalents
Net change in cash and cash
equivalents 104,499 185,941
Beginning balance 223,597 37,656
------------------- -------------------
Ending balance $328,096 $223,597
=================== ===================
FINANCIAL SERVICES
Access Financial Solutions
---------------------------------------
Fiscal Year Ended July 31,
2006 2005
------------------- -------------------
Operations
Net income $3,045 $2,714
Adjustments to reconcile net
income to cash flow from
operating activities:
Gain related to sale of
Gradall excavator
product line - -
(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 270 888
Other 1,038 (517)
Changes in selected
working capital items:
Accounts receivable (4,207) 19,664
Inventories - -
Accounts payable - -
Other operating assets
and liabilities 19 (172)
Changes in finance
receivables (2,315) 1,877
Changes in pledged
finance receivables (627) 36
Changes in other assets
and liabilities 257 1,245
------------------- -------------------
Cash flow from operating
activities (2,520) 25,735
Investments
Purchases of property, plant
and equipment - (195)
Proceeds from the sale of
property, plant and
equipment - -
Purchases of equipment held
for rental - (13)
Proceeds from the sale of
equipment held for rental - -
Proceeds from the sale of
excavator product line - -
Cash portion of acquisitions - -
Investment in income of
Access Financial Solutions - -
Other - -
------------------- -------------------
Cash flow used for
investing activities - (208)
Financing
Net increase in short-term
debt - -
Issuance of long-term debt - -
Repayment of long-term debt - -
Change in receivable from
Access Financial Solutions - -
Change in payable to JLG
Industries, Inc. 2,535 (25,530)
Payment of dividends - -
Net proceeds from issuance of
common stock - -
Cash proceeds received from
the exercise of stock
options - -
Excess tax benefits from
stock-based compensation - -
------------------- -------------------
Cash flow from financing
activities 2,535 (25,530)
Currency Adjustments
Effect of exchange rate
changes on cash (15) 3
------------------- -------------------
Cash and Cash Equivalents
Net change in cash and cash
equivalents - -
Beginning balance - -
------------------- -------------------
Ending balance $- $-
=================== ===================