-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, V+Y8G0GtgGjwMMG0qKcyt7+0zjJ1J7G4aXiid37tqRITW18yTiX3i8OmC9jlTikm 84I6H+CsyJs/ZDqVshevEQ== 0001017136-99-000004.txt : 19990504 0001017136-99-000004.hdr.sgml : 19990504 ACCESSION NUMBER: 0001017136-99-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990503 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GRADALL INDUSTRIES INC CENTRAL INDEX KEY: 0001017136 STANDARD INDUSTRIAL CLASSIFICATION: CONSTRUCTION MACHINERY & EQUIP [3531] IRS NUMBER: 363381606 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-12049 FILM NUMBER: 99608552 BUSINESS ADDRESS: STREET 1: 406 MILL AVE SW CITY: NEW PHILADELPHIA STATE: OH ZIP: 44663 BUSINESS PHONE: 3303392211 MAIL ADDRESS: STREET 1: 406 MILL AVE SW CITY: NEW PHILADELPHIA STATE: OH ZIP: 44663 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [ X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1999 -------------- [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from To -------- -------- Commission file number 001-12049 --------- Gradall Industries, Inc. ------------------------ (Exact name of registrant as specified in its charter) Delaware 36-3381606 -------- ---------- (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 406 Mill Avenue S. W., New Philadelphia, OH 44663 ------------------------------------------------- (Address of principal executive offices) (330) 339-2211 --------------- (Registrant's telephone number, including area code) Not applicable -------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ---------- ---------- Number of shares outstanding at March 31, 1999 Common Stock, $.001 par value: 9,515,460
GRADALL INDUSTRIES, INC. FORM 10-Q QUARTER ENDED MARCH 31, 1999 Index ----- Page ---- PART I FINANCIAL INFORMATION Item 1 -- Condensed Consolidated Financial Statements 1 Item 2 -- Management's Discussion and Analysis of Results of Operations and Financial Condition 6 Item 3 -- Quantitative and Qualitative Disclosures About Market Risk 11 PART II OTHER INFORMATION Item 6 -- Exhibits and Reports on Form 8-K 12 Signatures 12
PART I - FINANCIAL INFORMATION ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
GRADALL INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Dollars in Thousands, Except Per Share Data) Three Months Ended ------------------- March 31, 1999 March 31, 1998 -------------- -------------- Net sales . . . . . . . . . . . . $ 50,532 $ 41,541 Cost of sales . . . . . . . . . . 38,617 31,990 -------------- -------------- Gross profit. . . . . . . . . . . 11,915 9,551 Operating expenses: Research, development and product engineering costs . . . 1,346 1,054 Selling, general and administrative expenses . . . . 4,191 3,263 -------------- -------------- Operating income. . . . . . . . . 6,378 5,234 Interest, net . . . . . . . . . . 173 218 Other, net. . . . . . . . . . . . 34 5 -------------- -------------- Income before provision for taxes 6,171 5,011 Income tax provision. . . . . . . 2,410 1,957 -------------- -------------- Net income. . . . . . . . . . . . $ 3,761 $ 3,054 ============== ============== Earnings per common share: Basic: Weighted average Shares outstanding . . . . . . 9,512,408 8,940,194 Earnings per common share:. . . . $ 0.40 $ 0.34 Diluted: Weighted average Shares outstanding . . . . . . 9,605,028 9,023,295 Earnings per common share:. . . . $ 0.39 $ 0.34 The accompanying notes are an integral part of these condensed consolidated financial statements.
1
GRADALL INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) UNAUDITED AUDITED -------------- ----------------- MARCH 31, 1999 DECEMBER 31, 1998 -------------- ----------------- ASSETS ---------- Current assets: Cash. . . . . . . . . . . . . . . . . $ 730 $ 2,457 Accounts receivable - trade, net of allowance for Doubtful accounts. . 34,237 26,983 Inventories . . . . . . . . . . . . . 36,857 32,872 Prepaid expenses and deferred charges 1,834 2,510 Deferred income taxes . . . . . . . . 985 985 --------------- ----------------- Total current assets . . . . . . . 74,643 65,807 Deferred income taxes . . . . .. . . . 6,060 5,985 Property, plant and equipment, net. . . 25,925 25,838 Other assets. . . . . . . . . . . . . . 1,205 1,357 --------------- ----------------- Total assets . . . . . . . . . . . $ 107,833 $ 98,987 =============== ================= LIABILITIES & STOCKHOLDERS' EQUITY - ------------------------------------ Current liabilities: Current portion long term debt. . . . $ 11,034 $ 7,226 Accounts payable - trade. . . . . . . 17,569 16,288 Accrued other expenses. . . . . . . . 14,303 14,451 --------------- ----------------- Total current liabilities . . . . 42,906 37,965 --------------- ----------------- Long term obligations: Long-term debt, net of current portion 332 405 Accrued post-retirement benefit cost. 16,748 16,554 Other long term liabilities . . . . . 1,688 1,688 --------------- ----------------- Total long term obligations . . . . 18,768 18,647 --------------- ----------------- Total liabilities . . . . . . . . . 61,674 56,612 --------------- ----------------- Stockholders' equity: Common stock, $.001 par value; 18,000,000 shares.authorized; 9,515,460 and 9,508,231 issued and outstanding on March 31, 1999 and December 31, 1998, respectively 10 10 Additional paid-in capital. . . . . . 45,828 45,805 Retained earnings (accumulated deficit) 1,028 (2,733) Accumulated other comprehensive loss. (707) (707) --------------- ---------------- Total stockholders' equity. . . . . 46,159 42,375 --------------- ---------------- Total liabilities and stockholders' Equity. . . . . . . . . . . . . . $ 107,833 $ 98,987 =============== ================= The accompanying notes are an integral part of these condensed consolidated financial statements.
2
GRADALL INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in Thousands) Three Months Ended ------------------ March 31, 1999 March 31, 1998 -------------- -------------- Operating Activities: Net income. . . . . . . . . . . . . . . . . . $ 3,761 $ 3,054 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Post-retirement benefit transition obligation. . . . . . . . . . . . . . . . 194 350 Depreciation and amortization . . . . . . . 1,000 575 Deferred income taxes . . . . . . . . . . . (75) (137) Gain on sale of property, plant & equipment - (26) Increase in accounts receivable . . . . . . (7,254) (1,000) Increase in inventories . . . . . . . . . . (3,985) (270) Decrease in prepaid expenses. . . . . . . . 676 1,161 Increase (decrease) in accounts payable and accrued expenses. . . . . . . . . . . . . 1,133 (3,482) -------------- -------------- Net cash (used in) provided by operating Activities. . . . . . . . . . . . . . . (4,550) 225 -------------- -------------- Investing Activities: Proceeds from sale of property, plant & Equipment . . . . . . . . . . . . . . . . - 66 Purchase of property, plant and equipment . (935) (985) -------------- -------------- Net cash used in investing activities . . . (935) (919) -------------- -------------- Financing Activities: Issuance of 7,229 shares common stock . . . 23 - Net borrowing under lines of credit . . . . 3,839 1,261 Repayments on capital leases. . . . . . . . (104) (68) -------------- -------------- Net cash provided by financing activities 3,758 1,193 -------------- -------------- Net (decrease) increase in cash . . . . . (1,727) 499 -------------- -------------- Cash at beginning of year . . . . . . . . . . . 2,457 1,605 -------------- -------------- Cash at end of period . . . . . . . . . . . . . $ 730 $ 2,104 ============== ============== The accompanying notes are an integral part of these condensed consolidated financial statements.
3 GRADALL INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. BASIS OF PRESENTATION: The unaudited interim financial information as of March 31, 1999 and for the three months ended March 31, 1999 and 1998 has been prepared on the same basis as the audited financial statements. In the opinion of management such unaudited information includes all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the interim information. Operating results for the three months ended March 31, 1999 are not necessarily indicative of the results that may be expected for the entire year ending December 31, 1999. These financial statements and the notes thereto should be read in conjunction with the Company's audited financial statements included in its Annual Report or Form 10-K for the fiscal year ended December 31, 1998. 2. OTHER COMPREHENSIVE INCOME: The Company has no significant items of other comprehensive income. 3. NEW ACCOUNTING STANDARDS: In March 1998 the Accounting Standards Executive Committee issued Statement of Position ("SOP") 98-1, "Accounting for the Costs of Computer Software Developed or Obtained for Internal Use," which is effective for financial years beginning after December 15, 1998. The Company adopted the provisions of this SOP beginning January 1, 1999, which had no significant effect on the Company's consolidated financial statements. 4. INVENTORIES: Inventories were comprised of:
Mar. 31, 1999 Dec. 31, 1998 --------------- --------------- Raw materials . . $ 1,292 $ 1,401 Work in process . 24,475 24,501 Finished goods. . 17,178 13,058 --------------- --------------- 42,945 38,960 LIFO reserve. . . (6,088) (6,088) Total inventories $ 36,857 $ 32,872 =============== ===============
4 GRADALL INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 5. EARNINGS PER COMMON SHARE: The computation of the earnings per common share are as follows:
March 31, 1999 March 31, 1998 -------------- -------------- Common shares: Weighted average common shares outstanding - Basic . . . . . . 9,512,408 8,940,194 Additional common shares issuable for stock options . . . . . . . 92,620 83,101 -------------- -------------- Common shares - Diluted . . . . . 9,605,028 9,023,295 ============== ==============
6. FINANCING: In January 1999 the Company's Loan and Security Agreement with Heller Financial, Inc. was paid in full and terminated. A new revolving line of credit for $17 million was established with KeyBank National Association (the "Lender") with an unsecured demand promissory note. At March 31, 1999, borrowing under the new revolving credit facility totaled $10.8 million, and $4.2 million was available under the facility. On April 21, 1999 the revolving line of credit with KeyBank was increased to $22 million,. The note bears interest at either LIBOR plus .80% or prime minus 1.40%. The note renews annually and terminates at the earlier of the Lender's demand or the Company's decision to terminate by written or oral communication to the Lender. 7. CONTINGENCIES: The Company is involved in certain claims and litigation related to its operations. Based upon the facts known at this time, management is of the opinion that the ultimate outcome of all such claims and litigation will not have a material adverse effect on the financial condition, results of operations or cash flows of the Company. 8. NEW COMPANY: On October 13, 1998, a new company, The Gradall Orrville Company, was formed as a wholly owned subsidiary of Gradall Industries, Inc., to purchase a new production plant at Orrville, Ohio. The new facility, formerly the Volvo Truck Assembly plant, contains 330,000 square feet and will provide additional production space for the material handler product. 5 ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION GENERAL Gradall Industries, Inc. ("the Company" or "Gradall") is a leading manufacturer of wheeled hydraulic excavators and rough-terrain variable reach material handlers as well as related service parts. The Company's products are marketed under the widely respected Gradall trademark and are distinguished by their telescopic boom technology, versatility, productivity and reliability. Gradall products serve many markets within the construction and mining industries as well as special applications. Gradall excavators are typically used by general contractors and government agencies for ditching, sloping, finish grading, general maintenance and infrastructure projects. Gradall rough-terrain variable reach material handlers are typically used by residential, non-residential and institutional building contractors for lifting, transporting and placing a wide variety of materials at their point of use or storage. The Company's products and service parts are sold through independent distributors and national rental companies. Excavator contractor sales activity increased in the latter part of the first quarter of 1999 as contractors continued to experience a supportive economy and as a result of the passage of the Transportation Equity Act (TEA-21). This federal highway bill guarantees a minimum of $175 billion in spending for the highway program for fiscal years 1998-2003 and represents a 40% increase over the 1991 federal highway bill. Municipal bidding and demonstration activity also increased in the first quarter as a significant number of states prepare to receive new annual budget funds. Future Gradall excavator revenues will benefit from TEA-21 as more federal and state construction contracts are awarded. Commencement of XL2300 shipments in the second quarter of 1999 and future shipments of the XL3200 introduced at the Las Vegas March 1999 ConAg-ConExpo will also contribute to the 1999 excavator revenues. Strength in the Company's material handler sales for the first quarter of 1999 was the direct result of stronger than expected activity in the industrial sector and in residential and non-residential construction. Rental fleets continued to grow in size and continue near full utilization while rental rates remained constant. Favorable interest rates, low inflation and high employment levels along with continued growth and consolidation of national rental companies contributed to significant year over year first quarter growth in material handler revenue. Service parts sales remained high throughout the first quarter of 1999 as construction activity, supported by favorable weather conditions in many geographic regions, continued strong. Service parts sales are expected to benefit in the future from the product support reorganization which will provide increased distributor product knowledge training and customer service, and from the March 1999 introduction to the distribution network of the new Gradall Plus CD-ROM system for improved dealer product inquiry information. 6 The significant sales growth of material handlers in recent years has created a need to increase production capacity. The board of directors has approved a capacity expansion program which will require a $30 to $50 million investment over the next three to five years. An important step in this plan was the purchase of an additional 330,000 sq. ft. facility in October 1998. Formerly the Volvo Truck Assembly plant, the facility is located in Orrville, Ohio, and will be used to produce material handler products. Start-up of this plant began in March 1999. RESULTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 1999 COMPARED TO THREE MONTHS ENDED MARCH 31, 1998. Net Sales. Net sales for the three months ended March 31, 1999, were $50.5 - ---------- million, an increase of $9.0 million or 21.6% compared to $41.5 million for the three months ended March 31, 1998. The increase in net sales included a significant increase in material handler unit volume and a small increase in excavator units. High rental utilization and retail sales along with growth in the rental fleets have driven the high material handler demand. Service parts shipments were up slightly compared to the prior year quarter. Gross Profit. Gross profit for the three months ended March 31, 1999, was $11.9 - ------------ million, an increase of $2.4 million or 24.8%, compared to $9.6 million for the three months ended March 31, 1998. Gross profit as a percentage of net sales increased to 23.6% for the three months ended March 31, 1999, from 23.0% for the three months ended March 31, 1998, attributable to lower production costs from raw material procurement. Research, Development and Product Engineering Costs. Research, development and - ---------------------------------------------------- product engineering costs for the three months ended March 31, 1999, was $1.3 million, an increase of $0.3 million or 27.7% compared to $1.1 million for the three months ended March 31, 1998. Spending in the research and development function was higher in the first quarter 1999 than the same quarter in the prior year from additional design costs associated with the military project. Selling, General and Administrative Expenses. Selling, general and - ------------------------------------------------ administrative expense for the three months ended March 31, 1999 was $4.2 million, an increase of $0.9 million or 28.4 % compared to $3.3 million for the three months ended March 31, 1998. The increase is attributable to the March Las Vegas ConExpo trade show and the addition of field marketing personnel. Interest, Net. Interest income for the three months ended March 31, 1999 was - -------------- $0.2 million, unchanged from $0.2 million for the three months ended March 31, 1998. In actual dollars there was a slight decrease in interest expense from lower borrowing rates with the new bank facility set up in January 1999. Income Tax Provision. Income tax expense for the three months ended March 31, - ---------------------- 1999 was $2.4 million, an increase of $0.5 million or 23.1% compared to $2.0 million for the three months ended March 31, 1998 and represents an effective tax rate for both periods of 39.1%. 7 RESULTS OF OPERATIONS (CONTINUED) Net Income. Net income for the three months ended March 31, 1999 was $3.8 - ----------- million, an increase of $0.7 million or 23.1%, compared to $3.1 million for the three months ended March 31, 1998. This increase was primarily attributable to the increased sales volume of the material handler product line. Earnings Per Common Share. Basic earnings per common share for the three months - ------------------------- ended March 31, 1999 were $0.40, an increase of $0.06 or 17.6% per basic share from the three months ended March 31, 1998. Diluted earnings per common share for the three months ended March 31, 1999 were $0.39, an increase of $0.05 or 14.7% per diluted share from the three months ended March 31, 1998. LIQUIDITY AND CAPITAL RESOURCES The Company used net cash from operating activities of $4.5 million during the first three months of 1999. Use of net cash from operating activities resulted from the sum of $3.8 million of net income, $1.0 million of depreciation and amortization and $0.1 million from post-retirement benefit transition obligation, net of deferred taxes, reduced by $9.4 million of net cash used by changes in operating assets and liabilities, primarily an increase in accounts receivable and inventory. For the first three months of 1999 the Company's purchases of new equipment and permanent tooling was $0.9 million. Management plans to invest approximately $10.5 million in plant and equipment in 1999. On October 13, 1998 the Company purchased a 330,000 sq. ft. facility in Orrville, Ohio to serve as additional space for production. This acquisition is part of a board-approved five year plan to invest $30 to $50 million to raise capacity and improve production efficiencies. For the first three months of 1999 net cash provided by financing activities was $3.7 million, needed to fund the increases in accounts receivable and inventory. Borrowing under the Company's line of credit was $3.8 million reduced by $0.1 million of capital lease payments. A substantial amount of the Company's working capital consists of accounts receivable and inventories. The Company periodically reviews accounts receivable for noncollectibility and inventories for obsolescence and establishes allowances it believes are appropriate. 8 RESULTS OF OPERATIONS (CONTINUED) In January 1999 the Company's Loan and Security Agreement with Heller Financial, Inc. was paid in full and terminated. A new revolving line of credit for $17 million was established with KeyBank National Association (the "Lender") with an unsecured demand promissory note. At March 31, 1999, borrowing under the new revolving credit facility totaled $10.8 million, and $4.2 million was available under the facility. On April 21, 1999 the revolving line of credit with KeyBank was increased to $22 million,. The note bears interest at either LIBOR plus .80% or prime minus 1.40%. The note renews annually and terminates at the earlier of the Lender's demand or the Company's decision to terminate by written or oral communication to the Lender. The Company believes that cash flows from operations, excess cash and funds available under its revolving credit facility are adequate to fund its working capital and capital expenditure requirements for the foreseeable future. IMPACT OF THE "YEAR 2000 ISSUE" The year 2000 issue is the result of computer programs having been written using two digits rather than four to define the applicable year. Any of the Company's computers, computer programs, manufacturing and administration equipment or products that have date-sensitive software may recognize a date using "00" as the year 1900 rather than the year 2000. If any of the Company's systems or equipment that have date-sensitive software use only two digits, system failures or miscalculations may result causing disruptions of operations, including among other things, a temporary inability to process transactions or send and receive electronic data with third parties or engage in similar normal business activities. Significant uncertainty exists concerning the scope and magnitude of problems associated with the year 2000 change. The Company recognizes the need to ensure its operations will not be adversely impacted by year 2000 software failures and has established a project team to address year 2000 risks. The project team has coordinated the identification of and will coordinate the implementation of changes to computer hardware and software applications that will attempt to ensure availability and integrity of the Company's information systems and the reliability of its operational systems and manufacturing processes. The Company believes that it has identified substantially all of the major computers, software applications and related equipment used in connection with its internal operations that must be modified, upgraded or replaced to minimize the possibility of a material disruption to its business. The Company has commenced the process of modifying, upgrading and replacing major systems that have been identified as adversely affected and expects to complete this process by the end of September 1999. In addition to computers, photocopiers, telephone switches, security systems and other common devices may be affected by the year 2000 problem. 9 RESULTS OF OPERATIONS (CONTINUED) The Company also faces risk to the extent that suppliers of products, services and systems purchased by the Company and others with whom the Company transacts business on a worldwide basis do not comply with year 2000 requirements. The Company has initiated formal communications with significant suppliers and customers to determine the extent to which the Company is vulnerable to the failure of such third parties to remediate their own year 2000 issues. In the event any such third parties cannot provide the Company with products, services or systems that meet the year 2000 requirements on a timely basis or in the event year 2000 issues prevent such third parties from timely delivery of products or services required by the Company, the Company's results of operations could be materially adversely affected. To the extent year 2000 issues cause significant delays in supplier shipments, the sourcing of alternative suppliers or increasing inventory levels, the Company's business, results of operations and financial position could be materially adversely affected. The Company's research and supplier response indicate that all of the Company's products manufactured to date and all future designs are year 2000 compliant. External and internal costs specifically associated with modifying internal use software for year 2000 compliance are expensed as incurred. To date the Company has spent an estimated $0.3 million on this project. Cost to be incurred in 1999 to fix year 2000 problems are estimated at approximately $0.5 million. Such costs do not include normal system upgrades and replacements. The Company does not expect the costs relating to year 2000 remediation to have a material adverse effect on its results of operations, cash flows or financial condition. As part of Gradall's contingency planning, the Company is developing business continuity plans for those areas that are critical to Gradall's business. These business continuity plans will be designed to mitigate serious disruptions to the business flow beyond the end of 1999. Significant progress has been made in developing contingency plans with the expectation that the Company will have plans in place by the end of the second quarter of 1999. The failure to correct a material year 2000 problem could result in an interruption in or a failure of certain normal business activities or operations. Such failures could materially and adversely affect the Company's results of operations, liquidity and financial condition. Due to the general uncertainty inherent in the year 2000 readiness of critical suppliers and customers, the Company is unable to determine at this time whether the consequences of year 2000 failures will have a material impact on the Company's results of operations, liquidity or financial condition. The year 2000 project is expected to significantly reduce the Company's level of uncertainty about the year 2000 problem and in particular about the year 2000 compliance and readiness of its critical suppliers and customers. The Company believes that, with the implementation of new business systems and completion of the project scheduled, the possibility of significant interruptions of normal operations should be reduced. 10 RESULTS OF OPERATIONS (CONTINUED) The estimates and conclusions herein contain forward-looking statements and are based on management's best estimates of future events. Risks to completing the plan include the ability to retain human resources, our ability to discover and correct the potential year 2000 sensitive problems which could have a serious impact on operations, and the ability of suppliers and customers to bring their systems into year 2000 compliance. NEW ACCOUNTING STANDARDS In March 1998 the Accounting Standards Executive Committee issued Statement of Position ("SOP") 98-1, "Accounting for the Costs of Computer Software Developed or Obtained for Internal Use," which is effective for financial years beginning after December 15, 1998. The Company adopted the provisions of this SOP beginning January 1, 1999, which had no significant effect on the Company's consolidated financial statements. CAUTIONARY STATEMENT Statements included in this Form 10-Q which are not historical in nature are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements regarding the Company's future performance and financial results are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. The Company's Quarterly Report on Form 10-Q contains certain detailed factors that could cause the Company's actual results to materially differ from forward-looking statements made by the Company. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The Company does not have any market risk sensitive instruments at March 31, 1999. 11 PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibits: None b) Reports on Form 8-K filed for the three months ended March 31, 1999: None SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Gradall Industries, Inc. Date: April 30, 1999 By: /s/ Barry L. Phillips ------------------------ Barry L. Phillips President and Chief Executive Officer Date: April 30, 1999 By: /s/ Bruce A. Jonker ---------------------- Bruce A. Jonker Chief Financial Officer 12 EX-27 2
5 1,000
6-MOS DEC-31-1999 MAR-31-1999 730 0 34,237 0 36,857 74,643 25,925 0 107,833 42,906 0 0 0 10 46,149 107,833 50,532 50,532 38,617 38,617 0 0 173 6,171 2,410 3,761 0 0 0 3,761 .40 .39
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